Energy / Climate Change

March 15, 2014


Peak Shaving Behavior Proves Most Effective at Enhancing the Company Brand Value

Keywords: Eco-business / Social Venture Energy Conservation Manufacturing industry Non-manufacturing industry 

Graph: How Installing Equipment for Energy Conservation Contribute to The Company Brand Value
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A study conducted by the Brand Strategy Institute (BSI: a general incorporated association) and Prof. Keisuke Suyama, Faculty of Commerce in Kansai University, revealed that, among several company efforts towards environmental protection and energy-saving issues, installing energy conservation equipment is most effective to maximize the company brand value. The study was conducted from August to November 2013 to see the correlation between company energy conservation and peak-shaving efforts and their brand value. The results showed that installing equipment for energy conservation and peak shaving particularly contributes to brand value.

According to this study, the company brand value consists of five values in the long term, economic, environmental, social, customer and employee values. BSI carried out interviews with companies that are actively working on energy conservation and peak shaving, followed by quantitative analysis on how different business sizes, levels of involvement and knowledge affect their environmental protection and energy-saving behavior, and then contribute to the company brand value.

The study showed that installing facilities that conserve energy is most effective for the environmental protection and energy-saving measure that a company can undertake in order to enhance its business value. Although full-fledged installation of new equipment entails a substantial cost burden in the short run, it is found to contribute not only to the company's environmental value, but also all other values including economic and social values in the long-run, driving the company overall brand value upwards.

Leading companies with better involvement and knowledge of energy-saving and peak shaving have been actively introducing gas-fired air conditioners, in-house power generation, and gas cogeneration. And the study further showed that these measures contribute greatly to the company brand value, boosting economic value by 40%, environmental value by 60% and social value by 81%.