As Earth Day approaches, businesses can reflect on their environmental impact and take actionable steps toward corporate sustainability. One of the most effective ways to do this is by improving energy efficiency. Not only does this help the planet, but it also leads to commercial energy savings that can strengthen the bottom line.

Why is energy efficiency so crucial? Energy use contributes to over three-quarters of global greenhouse gas emissions, with building operations alone accounting for up to half of that. In addition to environmental concerns, energy is also a top three operating expense for about one-third of small businesses. By focusing on energy efficiency, businesses can lower these costs while supporting a healthier planet — a true win-win for Earth Day for businesses.

Simple actions can have significant impacts. Turning off lights and electronics at the end of each workday, installing smart technology like smart thermostats and using motion sensors for lighting are small but powerful ways to save energy. Replacing traditional lightbulbs with LED options can cut lighting costs dramatically, as LEDs use up to 90% less energy and last far longer. Upgrading to ENERGY STAR appliances, which use between 10% and 50% less energy than standard models, is another smart move.

For those businesses ready to make larger investments, weatherizing buildings with improved insulation, storm windows, and better door seals can greatly enhance energy performance. Not only do these changes reduce energy waste, but they also improve comfort for employees and customers alike. Even something as simple as using window shades strategically to block or welcome sunlight depending on the season can reduce HVAC needs and lower energy consumption.

The first step for any business is to get an energy audit. Many utility companies offer free or low-cost energy audits to help identify opportunities for improvement. These audits can show you exactly where your building or operations are wasting energy and help prioritize changes that will make the biggest difference.

If you lease your business space, don’t assume you’re powerless to make a change. Sub-metering equipment can help track and manage energy usage. You can also collaborate with landlords on building-wide improvements that increase efficiency, making the property more appealing to current and future tenants.

While some projects require upfront investment, the financial payoff comes from lower utility bills and potential tax incentives. Financial incentives are available for companies to help offset the initial cost of the projects. Rebates are available through local programs in your state, city or utility provider, plus the federal government.

On Earth Day, for businesses, making energy-efficient choices is more than just good environmental practice — it’s a smart business strategy. Reduced costs, an improved reputation with consumers who care about corporate sustainability, and stronger recruitment potential are just a few of the benefits. With 84% of global consumers looking for sustainable brands and 69% of workers preferring environmentally responsible employers, energy efficiency gives businesses an additional edge in a competitive market.

Click here to read the full article, originally published December 3, 2024, by Bank of America.