Sustainability: Mandatory or Voluntary

With awareness at an all-time high (the Energy Star® brand is recognized by 89% of consumers) and competition ramping up for those trying to receive Energy Star® certification (76% of business decision-makers say "We have to reduce energy consumption if we want to stay competitive from an image perspective") how can we in the industry reach a wider range participants? Some states use mandatory benchmarking and energy disclosure policies to increase Energy Star® involvement, but is this more effective than the voluntary approach? It reaches a wider range of applicants, but does that correlate to increased sustainability? Here we explore the merits of each approach to the program and whether mandatory benchmarking is harmful or beneficial.The two approaches to engaging the public and industry with Energy Star® unsurprisingly yield different results. When cities and states enact policies that require involvement, Energy Star® reaches a wider audience. Policies like AB1103 and Title 24 have changed the playing field for businesses in California. Forced energy use reduction and disclosure of energy footprints have changed the way businesses operate. Mandated energy efficiency policies undoubtedly increase participatory numbers and indeed it shows. Five of the top twenty cities with the most Energy Star® certified buildings in 2014 were in California.Unfortunately, mandatory policies also establish a floor. Those who would go above and beyond standards likely would without the requirement policies in place, while those who would not have become involved are now possibly begrudging participants unlikely to progress past the standards set for them. Mandating disclosure and benchmarking policies does increase awareness of energy efficiency in general, and compels individuals and companies that otherwise would not have given these programs a second glance to become involved.On the other hand, the voluntary approach has many positive aspects as well. While the number of participants may be fewer, enthusiasm is often much higher. Voluntary Energy Star® participation programs create an atmosphere where leaders in industry set the course, and this motivates others to get involved in order to stay competitive. Companies are more likely to go above and beyond requirements when they are making the decision themselves rather than having it mandated by state and local governments. If leaders in energy conservation can educate their peers on the incentives and many benefits of Energy Star® certification then an environment is created where striving for energy efficiency is the norm not the exception.

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