Your choice: Efficiency or a BP moment

Last year’s devastating BP oil spill in the Gulf of Mexico was caused by corporate decisions that valued time and money savings over safety and good business practices, according to the government commission investigating the disaster.

That finding holds a greater lesson for businesses in general, not just those in the oil and gas industry: short-term thinking carries a steep long-term cost. Especially in a weak economy facing rising energy prices, increasing resource constraints and greater limits on carbon emissions, that means the most sustainable companies will be the ones that can maximise their efficiency and minimise their footprints as much as possible without sacrificing quality or safety.

Study after study — by government agencies and businesses alike — prove that the right energy efficiency investments can more than pay for themselves over a relatively short period and then generate ongoing, long-term savings. For example, building improvements like better insulation, along with more efficient lighting, heating and appliances, generate far more benefits than they cost in terms of carbon emissions reductions, Siemens reported in its London-focused study on sustainable urban infrastructure. And as far as financial payback, the smartest purchase is a programmable thermostat, with a 156.5 per cent return on investment, says GreenandSave.com.

Clearly, efficiency-improving decisions are a far better option for businesses (and individuals as well) than cost-cutting measures that could jeopardise an organisation’s employees, customers and reputation. Take it from the National  Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling:

“Whether purposeful or not, many of the decisions that BP, Halliburton and Transocean made that increased the risk of the Macondo blowout clearly saved those companies significant time (and money),” notes an advance chapter from the final report by the commission.

So which will your company choose? A bit of upfront cost that will save you far more money — and insulate your business against future risks — over time, or short-sighted budget cuts that could lead to your organisation being the next one to experience a BP moment?