How Managed Air Services Can Help Manufacturers Meet ESG Goals

In the past, investors focused on one goal — how large will the return be?

Today, investors are more discerning, recognizing that their investment can do more than just deliver a return and make more money. Well-informed investments can influence positive changes in a society ready and hungry for them. When evaluating a company for investment, a money manager can look at social accountability and the promotion of responsible environmental stewardship as well as business growth.

In fact, many investors have come to realize that sustainable business practices are a key indicator of better business performance. Some studies show that even initial ESG practices can mean a boost to the bottom line and a bigger ROI.

As manufacturers look to grow and attract new investors, they need to be aware that money managers have new criteria for evaluating potential investments.

What Are Environmental, Social, and Corporate Governance (ESG)?

Environmental, social, and corporate governance, or ESG as they are collectively known, are standards for business operations that many investors use when evaluating a company for a potential investment.

Environmental criteria appraise how operations act as stewards for nature, and if operations address sustainability in production.

Social criteria consider if a company treats employees, suppliers, communities, and their customers with respect. They evaluate how the business manages relationships to the betterment of all involved.

Corporate governance evaluates leadership at the company. It considers executive pay, shareholder rights, the manner in which audits are conducted, and if there are internal controls in place.

Taken together, ESG criteria help potential investors avoid high-risk companies, or companies in which their business practices put them at risk for disruption. They’re also a way of ensuring that investments align with the values of the investors.

Today, mutual fund companies and brokerage firms often assess companies by ESG criteria. Robo-advisors like Betterment and Vanguard Digital Advisor will prioritize companies that score well for ESG. Businesses, including manufacturers, that are looking for investment need to set goals that align with ESG standards. They need to show that resources have been applied toward those goals, and have data to show the results of those efforts.

As well as providing additional benefits, managed services for critical utilities like compressed air can help manufacturers in meeting ESG goals.

What Are Managed Air Services?

With managed services, a business will work with a Managed Service Provider (MSP) to deliver and manage a service. The provider could deliver network services, security, or an application. The service could be delivered offsite through a third party, or with ongoing administration at the business itself.

Companies that leverage managed services will see benefits — predictable spend for the service, for example. The provider will deliver the service for a fixed cost, eliminating front-loaded capital spend and ensuring a reliable and consistent operational cost. Reducing stress on internal resources and allowing employees to focus on higher priorities is another advantage of managed services.

For manufacturers adopting ESG standards, there are also benefits to utilizing managed services for compressed air.

Invest Wisely with a Managed Air Solution from OTC

With OTC’s DIRECTAIR® managed service, you and your company work with our team of compressed air experts to evaluate your compressed air needs. The team develops a strategy for your facility, incorporating your ESG goals, and then implements and manages the strategy for you.

This provides several benefits in meeting ESG standards:

Reduced Energy Usage and Costs

Reducing waste is critical for companies adopting ESG standards. For manufacturers, inefficient and outdated air compressor systems are a major source of wasted energy. Not only do old compressors waste energy and contribute to the carbon footprint of the facility, but they can also lead to downtime, quality problems caused by inadequate air pressure, and reduced productivity. DIRECTAIR® will identify the problems causing those issues and implement a manufacturing solution that addresses them and reduces energy usage and production costs. In fact, most manufacturers will enjoy 25% to 50% energy savings with OTC.

Predictable Operating Expense and Investment

For business leadership, an ESG strategy can often feel like a money pit. Investment is made in meeting the criteria and adopting more responsible operational standards, but it’s never enough money. There’s no clear idea of the return for the investment. With a managed service, you have that predictable spend and no initial capital expenditure. You set your goals, and then have assurance of the expected return.

Reliable Compressed Air Operations

With DIRECTAIR® services, there’s no doubt about the positive impact of adopting ESG standards. You will see improved uptime and reliable service even as you reduce energy usage and lower your energy costs. The DIRECTAIR® team conducts a thorough air audit of your operations, and then leverages the latest compressor technology. It matches your needs and requirements with the right solution. The system is continually monitored with scheduled maintenance and repairs to ensure optimal operations and uptime.

Comprehensive Operational Data

Investors evaluating a business want to see more than promises. They want to see the data, the proof, that backs up your commitment to ESG standards. DIRECTAIR® uses our MANAGAIR^® system for continuous monitoring of the DIRECTAIR® system at your facility. With the data provided, you can see how well your investment in clean and reliable air is working, and reduce energy usage. You’ll have the data necessary to illustrate your ESG commitment.

Reduce Downtime and Energy Usage with OTC

Adopting an ESG policy and making a commitment to responsible business operations can be scary. At first, it can seem like you’re being asked to make an investment in time, money, and effort with no sure return.

Our DIRECTAIR® managed service can remove the doubt from at least part of that commitment, while delivering increased uptime, reduced costs, and higher productivity.

OTC makes it easy to get started with DIRECTAIR® at our ecommerce site (https://otcindustrial.com/). Visit the site to look at everything OTC has to offer, including our DIRECTAIR® services and our team of engineers and experts in compressed air. Register to quickly make an account and enjoy even more benefits.

Let us know if you have questions.