High energy costs: One of the most important effects of low energy efficiency in commercial buildings is high energy costs. The US Department of Energy estimates that 20% of the country’s energy is used by commercial buildings, which results in annual energy costs of over $190 billion. A company’s bottom line may be significantly impacted by these high energy expenses, which can lower profitability and restrict an organization’s capacity to invest in other aspects of the business. Energy costs are also unpredictable and challenging to control since energy prices are unstable and subject to market swings. Energy costs may increase even more for businesses that do not emphasize energy efficiency as energy prices continue to climb, which will further hurt their profitability. So, spending money on energy-efficient technology and procedures may benefit a company by lowering its energy costs, boosting its bottom line, and ensuring its long-term financial viability.

Reduce Employee productivity: Low energy efficiency can significantly impact employee productivity in commercial buildings. Employees may experience discomfort, fatigue, or distraction in dimly lit or insufficiently ventilated environments, which affects their productivity. For instance, heat stress brought on by high temperatures might result in weariness or even heat exhaustion. On the other side, poor indoor air quality can result in headaches, allergies, and respiratory issues, which can reduce productivity and induce absenteeism. According to studies, increasing a building’s energy efficiency may increase worker productivity, which in turn fosters greater job satisfaction, enhanced cognitive function, and better health results.

Increased compliance costs: Low energy efficiency in commercial buildings also has a substantial effect on increased regulatory and compliance expenses. As a means of reducing the negative environmental effects of commercial buildings, governments are progressively regulating energy use and emissions. Companies that don’t comply with these requirements risk fines, penalties, and other sanctions, which raises the cost of compliance. Specific energy efficiency criteria are mandated by building regulations in some areas, and they may call for substantial capital expenditures to be met. However, some governments provide grants, tax credits, or refunds to businesses that make investments in energy-efficient structures, which can help defray some of the initial expenditures. A company’s brand identity and public image may suffer if it does not adhere to energy legislation and standards due to potential legal and reputational issues.