Is Your Business Ready? The Revealing Impact of New Benchmarking Laws

Is Your Business Ready? The Revealing Impact of New Benchmarking Laws
7 min read


In recent years, the push toward a more sustainable and energy-efficient future has become not just a priority for environmental advocates but a strategic consideration for businesses across the globe. As part of this initiative, new Energy Benchmarking Laws have emerged, promising to redefine the landscape in which businesses operate. These laws aim to shed light on the energy performance of buildings and encourage improvements in efficiency, but they also raise important questions: Is your business ready for the shift? And what impacts, both positive and negative, can you expect? 

Understanding these laws and their implications is key to not only ensuring compliance but also to positioning your business advantageously in a market that increasingly values sustainability. In this comprehensive analysis, we will delve into the specifics of energy benchmarking initiatives and provide actionable insights for businesses looking to navigate this new territory successfully. 

Definition of Benchmarking and Benchmarking Laws

Before unpacking the regulations, it's critical to grasp the concept of benchmarking. In a business setting, benchmarking involves comparing a company's existing energy consumption against an established standard or the average performance of peers in the industry. This process is instrumental in setting goals, driving improvements, and fostering a culture of efficiency and responsibility. 

Energy Benchmarking Laws build on this idea, formalizing the process through legislative mandates. They require businesses to measure, report, and often publicly disclose their energy use, which can be a powerful motivator for improving energy performance. By codifying these practices into law, governments are holding businesses to a higher standard of environmental stewardship and energy transparency. 

Recent Changes in Benchmarking Laws

The regulatory landscape for energy benchmarking is evolving rapidly. In the past few years alone, we've seen significant developments as governments worldwide have introduced or updated their laws to reflect new environmental targets and technological capabilities. For example, in the European Union, the Energy Performance of Buildings Directive (EPBD) has been revised to strengthen the energy performance requirements for new and existing buildings. The U.S. has seen similar advancements at the state and city level, with places like New York City implementing Local Law 97, which sets stringent energy efficiency requirements for buildings. 

The global shift toward more robust energy benchmarking regulations signifies an international consensus on the importance of addressing climate change and resource scarcity. Businesses now face a more intricate web of legal obligations that extend beyond their local jurisdictions, emphasizing the need for a versatile approach to compliance. 

Impact of New Benchmarking Laws on Businesses 

The implementation of new Energy Benchmarking Laws comes with a host of potential impacts for businesses. On the favorable side, organizations that embrace these changes can see substantial benefits. Improved energy efficiency leads to cost savings on utility bills, reduced greenhouse gas emissions, and enhanced brand reputation as customers increasingly support socially responsible companies. Furthermore, insights gained through benchmarking can inform more strategic operational decisions, leading to greater innovation and competitiveness in the market. 

However, these laws do not come without challenges. For many businesses, the initial cost of upgrading systems to meet new standards and the ongoing expense of meticulous energy tracking can be significant. Moreover, non-compliance can result in hefty fines and damage to a company's public image—a risk that no business can afford to ignore. 

Case studies from various industries illustrate the dual nature of these impacts. A multinational retail chain, for instance, after embracing benchmarking laws, was able to reduce energy consumption across its stores by 20% resulting in millions of dollars in savings. In contrast, a manufacturing enterprise faced public backlash and legal repercussions for failing to meet the set benchmarks, underscoring the importance of proactive measures. 

Signs Your Business Might Not Be Ready

It's crucial to recognize the telltale signs indicating your business may not be adequately prepared for the current energy benchmarking laws. These can include a lack of systematic energy usage tracking, insufficient knowledge of regulatory requirements, or a reactive rather than a strategic approach to compliance. Ignoring these warning signs can lead to operational and financial difficulties, as evident in the case of a technology firm that was penalized for failing to report its energy data accurately, resulting in lost investor confidence and a tarnished reputation. 


Preparing Your Business for New Benchmarking Laws

Preparation is key to turning potential challenges into opportunities. Conducting an energy audit is an essential first step, as it helps identify where and how energy is being used and wasted. Investing in energy management software can streamline the data collection and reporting process, ensuring accuracy and timeliness. Educating employees about the importance of energy efficiency and keeping abreast of local and international regulations will also form the backbone of a successful benchmarking strategy. 

It's equally important to engage with resources beyond your organization. Government energy departments, such as the U.S. Department of Energy, often provide guidelines and support programs to assist businesses in meeting their benchmarking obligations. Professional consultations with energy experts can offer a tailored approach to compliance and optimization. 


The increasing rigor of Energy Benchmarking Laws is transforming the business environment, demanding a higher degree of accountability and foresight from companies. Understanding and complying with these laws is no longer optional but a necessity for operational success and corporate responsibility. By staying informed and adapting to these regulatory shifts, businesses can not only avoid the pitfalls of non-compliance but also seize the opportunity to lead in the new energy-efficient era. 

VertPro serves as a resourceful platform for property owners and managers seeking to enhance their buildings' energy efficiency. The site offers a range of services, including Commercial Energy Audits, Benchmark Compliance consultancy, and a Construction Marketplace. At the heart of VertPro® is a suite of SaaS technology-based solutions designed to assist in navigating the complexities of Energy Benchmarking and Energy Audits/RCx Plus, while ensuring adherence to over 60 Energy Benchmarking and Energy Efficiency Laws across the country.     

For those looking to improve their property's energy usage and operational value, provides a diverse array of tools and information. The site aims to facilitate a better understanding of energy efficiency practices and legislation, helping building owners and property managers make informed decisions about their energy strategies while complying with all energy ordinances and laws. 

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