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Why Energy Efficiency Is Key for ESG

These days, ESG should be a key consideration for businesses of all sizes and across industries. ESG stands for Environmental, Social and Governance, and it refers to the ethical practices of a business. Of course, it’s important to do business responsibly. However, there are tangible benefits to doing so, as an effective ESG strategy attracts customers, employees, and investors, reduces operational costs, and lowers risk. McKinsey research has found that executing ESG can affect operating profits by as much as 60%

ESG factors are also playing a crucial role in shaping public policy and regulations, which means that businesses that fail to prioritize ESG may face legal and reputational risks. 

The E of ESG is vital. Running a business of any size can have an impact on the environment, and incorporating sustainability measures helps mitigate any negative effects by reducing waste and lowering carbon emissions to combat climate change. Luckily, implementing sustainability doesn’t have to be a business sacrifice, as it can have a clear return-on-investment and help businesses spend less money. Plus, as consumers care more about the environmental impact of the companies they support, investing in sustainability can help a business build a loyal customer base.  

Whether you’re looking to build out a full ESG strategy for your business, or just want a way to improve your sustainability, one of the best first steps to take is simply to become more energy efficient.  

Countless businesses and corporations of all sizes have had immense success through improving their energy efficiency. Allstate Corporation set and achieved a target of reducing the energy consumption at their facilities by 20% by installing LED lights and optimizing energy use for heating and cooling. FedEx has achieved most of its carbon emissions reductions simply through more efficient aircraft and flight operations—while also saving hundreds of millions of dollars. Smaller businesses, like restaurant franchise locations, have benefitted as well through lower energy bills that help their tight margins.   

Energy efficiency is one of the most popular ways businesses improve their sustainability quickly and meaningfully. Here are the top reasons why. 


Energy efficiency helps your bottom line. 

Giving your business an energy-efficient upgrade is the easiest way to lessen your impact on the environment—and to do so in a way that has clear business value. Replacing building equipment with LED fixtures, high-efficiency heating, air conditioning, and ventilation (HVAC) units, and more can quickly cut the amount of energy you’re consuming and significantly reduce your carbon footprint.  

Using less energy is good for the planet, but it is also smart for business. Especially as energy prices continually grow across the U.S., decreasing your consumption can help keep your monthly utility bills low and boost your bottom line. 

Upgraded equipment also helps minimize business risk. Outdated equipment can be hazardous and is more likely to fail, which can negatively affect operations and even cost you in downtime and lost business. When you upgrade to more modern and efficient equipment, your business environment is safer, operations are improved, and breakdowns are less likely. 


Aid transparency through measurable results. 

Translating ESG into concrete data can sometimes be tricky, but energy efficiency is an exception. When you improve efficiency, you can measure precisely how your energy consumption is decreasing and demonstrate how your carbon emissions have been reduced. This can even be put into easy-to-understand conversions, like a business may reduce its emissions by the equivalent amount of taking ten cars off the road for a year. 

This shows how your efforts are having a real effect, which is important as consumers, employees, and other stakeholders are increasingly savvy about greenwashing. Saying your business is committed to helping the environment is no longer sufficient, and it’s crucial you can back up such statements with proof. Lowering your emissions through energy efficiency is a simple and impactful way to do so. 

Partnering with an energy efficiency as a service (EEaaS) provider makes measuring and interpreting these results even easier. At Budderfly, for example, our customers get a secure dashboard where they can see their energy savings and carbon emissions reductions over time. Businesses can also track their progress to meet their reporting requirements for Scope 1 and 2 emissions. Working with an EEaaS can also give you deep insights into where you're saving energy and identify opportunities for even further reduction.  


Energy efficiency is the easiest first step for ESG.  

ESG can take commitment and time to ensure your business is doing its part. It can also often require financial resources to invest in bettering your operations. Luckily, with energy efficiency, this doesn’t have to be the case. 

Energy efficient equipment upgrades cost money, but when you partner with an EEaaS like Budderfly, you don’t have to spend your own capital. Instead, you can get new high-efficiency LED lighting, HVAC, refrigeration controls and more at your business with no upfront cost required.  

Plus, our experts take care of installation, meaning you won’t have to invest the time or resources into hiring and managing contractors. Once installed, these upgrades will immediately reduce your energy usage and have a measurable impact on reducing your business’s carbon emissions.  

Want to learn more about energy efficiency and how Budderfly can help your business make measurable sustainability improvements with no upfront cost? Contact one of our experts today.  


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