Stefan Schwab, CEO of Enlighted, a part of Building Robotics, Inc., a Siemens company, reflects on key economic lessons from the past to help achieve sustainability goals today. He points to the 1970s energy crisis, where demand reduction measures effectively lowered energy consumption. Conversely, supply-side economics, as championed by David Stockman in the 1980s, did not produce the desired results. Schwab believes these lessons can guide modern businesses towards achieving sustainability.
While the current focus of many businesses is on increasing energy supply through alternative means like solar and wind, Schwab argues that reducing energy demand is equally important. With the rise of artificial intelligence creating a higher demand for energy, it is crucial for companies to recognize the impact of reducing consumption. By addressing energy demand, businesses can work towards sustainability goals, cut operating costs, and make a positive impact on society.
Sara Vad Sørensen of Danfoss highlights the significance of energy efficiency in curbing global emissions. She points out that simple measures to monitor and control energy usage in buildings can significantly reduce waste. Through the adoption of smart building technologies, such as IoT connectivity and sensor-enabled systems, companies can reduce energy consumption, optimize space utilization, and lower carbon footprints.
Smart building technologies, including sensor-enabled lighting and motion monitoring, have enabled businesses to achieve up to a 90% reduction in energy consumption. By leveraging AI algorithms to analyze complex data sets, building operators can gain valuable insights into energy usage and costs. This allows for the identification of opportunities for increased efficiency, improved occupant comfort, and overall building optimization.
Schwab advocates for a focus on demand reduction as the most effective path to meeting sustainability goals. With the rapid increase in energy demand and limited supply-side solutions, lowering demand can provide significant benefits for companies and society. By leveraging data-rich buildings and smart technologies, businesses can achieve greater energy efficiency and contribute to reducing CO2 emissions.
In conclusion, Schwab emphasizes the importance of incorporating economic lessons from the past to guide modern sustainability efforts. By recognizing the impact of demand reduction and leveraging smart building technologies, businesses can work towards achieving their sustainability goals while also reducing operating costs and making a positive environmental impact. Through a focus on energy efficiency and the adoption of AI-driven solutions, companies can pave the way for a more sustainable future.
