Energy Management Then and Now: What You Need to Know About the Latest Trends

Liz Delaney, Program Director, EDF Climate Corps

In 2008, EDF launched Climate Corps, an innovative graduate fellowship program committed to jump-starting investment in corporate energy efficiency.

Now, after almost a decade of embedding over 700 fellows inside large organizations across all sectors—public, private and non-profit—we’ve taken a step back to survey the broader landscape.

What did we find? Energy management today looks very different than when we started out. As large organizations have shifted to take on more sophisticated approaches, significant advancements in management strategies have emerged.

And for those of you toiling away on a daily basis in the complicated world of energy management, we’re pleased to offer you a mile-high view of how your efforts fit into a larger picture of progress.

In our new report, Scaling Success: Recent Trends in Organizational Energy Management, we examine the efforts of more than 350 large organizations over eight years. Through careful analysis of over 3,000 energy project recommendations, we have identified five key trends:

  1. Energy efficiency was just the beginning. Companies have become more strategic and sophisticated about energy management over the years. Equipment upgrades and retrofits have paved the way for higher-level energy analyses and plans, integration of clean energy technologies and more.
  1. Organizations are turning one win into many. By scaling up energy efficiency projects to be multi-site and multi-facility, companies have clearly moved past the “pilot” or “one-off” stage and are now deploying efficiency measures at scale.
  1. Companies face front-loaded costs, but are realizing greater ROIs on energy projects. The days of the low-cost/no-cost energy efficiency improvement may be over. Projects now require substantial upfront capital investments, but these projects deliver more value.
  1. Energy projects now pack more environmental bang for the buck. As technologies have improved and companies have become more strategic about how they direct spending, investments in energy efficiency are providing significantly more greenhouse gas reductions per dollar spent than they did eight years ago.
  1. Strategic energy management is still hard work. Despite progress made over the years, corporations, municipalities and other large institutions still face significant barriers to project implementation.

To distill it down even further: strategic energy management has evolved from a one-off initiative into an organizational imperative. Despite the barriers, companies are scaling up their efficiency efforts, integrating clean energy more regularly and using data to drive their smart energy strategies.

If you’ve been a part of this evolution (or revolution?), congratulations! If you haven’t, now is the time to take advantage of all these lessons learned and get on board.

Either way, we invite you to learn more about our key takeaways, read our full report and keep moving forward on accelerating your clean energy projects.

Walking the Walk: Companies Lead the Call for New Clean Truck Standards

A number of America’s most iconic brands helped pave the way for the new Clean Truck standards announced August 16th by the U.S. EPA and DOT. Nearly 400 companies, large and small, publicly urged strong, final fuel efficiency and greenhouse gas standards for heavy trucks.

Through their action, these companies have reaffirmed a basic truth of business today: to be a “leader”, companies must align their sustainability goals and strategies with their external engagement on policy.

Tom Murray, VP, Corporate Partnerships Program

Tom Murray, VP, Corporate Partnerships Program

While there are many differences as to how these 400 companies intersect with heavy trucks—manufacturers make the trucks, fleet owners drive the trucks, brands hire the trucks to move their goods to market—they are all unified by one resounding theme: cleaner trucks are better for their business, better for our health and better for the planet.

Indeed, common-sense efforts to cut climate pollution have gone mainstream in business. Earlier this year Microsoft, Google, Amazon, Apple and others raised the bar on corporate climate leadership by standing up for the clean power plan. Colgate-Palmolive, Hewlett Packard Enterprise, Nike, Starbucks and over 100 other companies built on this trend by urging “the swift implementation of the Clean Power Plan and other related low-carbon policies so that we may meet or exceed our promised national commitment and increase our future ambition.”

But this corporate support of the clean truck standards goes even further: it’s another step in the evolution of corporate climate leadership. This is beyond simply supporting good policy; a number of these companies are actively shaping it to deliver significant sustainability benefits. Among the companies that distinguished themselves in this effort are:

  • PepsiCo: the largest private fleet in the U.S. led the way in demonstrating the alignment between its sustainability objectives and its policy advocacy through an op-ed, and expert testimony.
  • Walmart, the 3rd largest private fleet in the U.S., was highly proactive and constructive in its engagement on the clean truck phase two program, supporting it with public statements, and expert commentary.
  • Cummins, FedEx, Eaton, Wabash National, Conway, and Waste Management joined PepsiCo in the Heavy Duty Leadership group that urged the EPA and DOT to: “Achieve Significant Environmental, Economic and Energy Security Benefits.”
  • Honeywell, Achates Power and a number of other innovators made clear that they were ready to meet the challenge of building more fuel efficient trucks.

There were hundreds more examples like these—each one of them a proactive leadership action that demonstrates the new frontier for corporate leadership.

Securing these protections was a real team effort.  The Pew Charitable Trusts organized a letter of support for strong standards signed by IKEA, Campbell’s Soup, and many others. Ceres brought forward a strong statement from General Mills, Patagonia and more. The Union of Concerned Scientists articulated how strong rules would benefit leading fleets, including UPS, Coca-Cola and Walmart. Together, these efforts marshalled an unprecedented level of corporate support for a critical piece of climate policy.

So, if your company is among the now hundreds of companies actively advocating for strong climate protection measures, thank you. We look forward to your continued leadership and engagement on other critical advances, including implementation of the Clean Power Plan and moving forward with reductions in methane emissions. We want to work with you to shape protective policies that also make business sense.

If, however, your company is still stuck at talking the talk, it’s time to start walking the walk when it comes to supporting common sense measures like the Clean Trucks program.

You’re falling behind the leadership pack in the one of the world’s most important races.

New Clean Trucks program: Business, Consumers and the Planet all Win

Across America, companies have reason today to celebrate an important step to drive cost and emissions out of their supply chain. The U.S. EPA and U.S. Department of Transportation unveiled new fuel efficiency and greenhouse gas standards for heavy trucks. Once fully implemented, the new standards will cut over a billion tons of climate pollution and save hundreds of millions of dollars by 2035.

Jason Mathers, Senior Manager, Supply Chain Logistics

Jason Mathers, Director, Supply Chain

Every business in America stands to benefit.

Why? Because every business in America relies, in some form, on trucking services. Product manufacturers need trucks to get goods to market. Service and knowledge companies depend on trucks to deliver equipment and supplies. Retailers utilize trucks in distribution.

Retailers and consumer brands are among the top winners of strong fuel efficiency standards, as these companies account for a lot of freight movement. Companies that have undertaken detailed carbon footprint analysis often find, as Ben & Jerry’s did, that freight transportation can account for upwards of 17% of their total impact.

The new fuel standard means continued progress in tackling this significant source of emissions. This progress will reveal itself in lower carbon footprints for every product brought to market. It will be apparent through lower freight and fuel surcharge fees – saving large consumer brands millions annually. Read more

Clean Trucks: Much Needed and Ready to Deliver

There was some good news from the U.S. Energy Information Agency recently. It found that the Clean Trucks program, which is expected to be jointly finalized this summer by the Environmental Protection Agency (EPA) and the Department of Transportation (DOT), will deliver huge carbon emission reductions.

"Kenworth truck" by Lisa M. Macias, U.S. Air Force via Wikipedia

The Clean Trucks program is designed to improve fuel efficiency and reduce greenhouse gas pollution from the freight trucks that transport the products we buy every day, as well as buses, heavy-duty pickup trucks and vans, and garbage trucks. The program’s first performance standards went into effect in 2014. The EPA and DOT are currently developing a second phase of performance standards. Strong standards can help keep Americans safe from climate change and from unhealthy air pollution, reduce our country’s reliance on imported oil, and save money for both truckers and consumers. Read more

Why Investments in Agricultural Carbon Markets Make Good Business Sense

sarasnider-287x377Over the past decade, private investment in conservation has more than doubled, with sustainable forestry and agriculture investments as the main drivers of growth. This unprecedented expansion in “impact investing” or “conservation finance” has occurred as investors seek ROI that can also benefit the environment.  According to Credit Suisse, sustainable agriculture is particularly appealing to investors as it offers a wider array of risk mitigation approaches than sectors such as energy and transportation.

Yet despite this boom, there has been very little investment from private capital in emerging ecosystems markets, especially in the agricultural sector.

We’ve blogged before about the benefits growers – and the environment – realize from participating in agricultural carbon markets or habitat exchanges. But here’s why the private sector, food companies and retailers should invest in agricultural carbon markets. Read more

Three Ways Methane Standards Can Help the Oil and Gas Sector Rebuild

A massive wave of market and societal forces is changing the oil and gas industry. Low commodity prices are driving out weaker players with excessive debt, and forcing those that remain to become leaner and more efficient. As climate change effects worsen and countries move to fulfill their commitments from the Paris climate agreement, public scrutiny of oil and natural gas and their impacts only intensifies.

The question is not will industry change to meet these challenges — it’s how. It’s about what opportunities can propel industry to come back stronger out of the depths of the commodity slide, as a leaner, cleaner industry standing on firm ground that it can play a meaningful role as societies work to transition to lower-carbon economies.

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While natural gas remains a fact of life, and switching from coal to natural gas has helped reduce greenhouse gas emissions, scientific research has demonstrated that potent methane emissions from the oil and gas system are undermining that climate benefit. The latest U.S. inventory shows over 9 million metric tons of oil and gas methane emissions, packing the same climate impact over a 20 year timeframe as over 200 coal-fired power plants. That’s a lot of methane no matter how you slice it.

Methane standards like the rule announced today by EPA can aid industry, for three reasons: Read more

3 Ways NGOs Can Help Sustainable Supply Chains Grow

Maggie headshotEarlier this week, a former sustainability executive with McDonald’s delivered a wake-up call for environmental groups, listing “5 ways that NGOs stunt sustainability.” In this article, Bob Langert explains the ways that nonprofits are failing to help companies turn sustainability commitments into on-the-ground results. In the context of sustainable palm oil, he notes:

“You can’t just go after big brands and expect them to manage a supply chain that has them seven stages removed, starting with the smallholders, to mills, then plantations, to storage facilities, refineries, ingredient manufacturers and then product manufacturers, then into a final product a retailer sells, such as ice cream, a granola bar or shampoo — with palm as a minute ingredient.”

He’s right – sustainability in supply chains, especially in agriculture, is incredibly complex.

So how can environmental groups effectively champion sustainability progress throughout global supply chains, from the C-suite to crop fields?  Here are three ideas EDF has learned from deep, on-the-ground partnerships with leading brands. Read more

The Bar for Corporate Leadership on Climate Has Been Raised

Tom Murray, VP Corporate Partnerships, EDFAs the legal briefings pile up over the Clean Power Plan (CPP), I’m inspired by the growing number of companies and business organizations standing up for the most significant step in U.S. history toward reducing climate pollution.

The bar continues to rise for companies that want to lead on sustainability, and it’s great to see companies aligning their corporate sustainability strategy and policy advocacy. Today’s corporate-led amicus briefs in support of the Clean Power Plan and smart climate policy are the latest example.

IKEA, Mars, Blue Cross Blue Shield MA and Adobe (collectively called Amici Companies) praised the EPA’s Clean Power Plan as a viable solution that will create market certainty and directly benefit their organizations. “It is important to the Amici Companies that they reduce their carbon footprints by procuring their electricity from zero- and low-emitting greenhouse gas (GHG) sources, not only to be good stewards of the environment, but to also because it preserves their economic interests.”

Tech industry leaders Google, Apple, Amazon and Microsoft (collectively called Tech Amici) also threw their weight behind the plan, saying, “delaying action on climate change will be costly in economic and human terms, while accelerating the transition to a low-carbon economy will produce multiple benefits with regard to sustainable economic growth, public health, resilience to natural disasters, and the health of the global environment.”

These leading companies represent half a trillion dollars in revenue, demonstrating robust business sector support for the Clean Power Plan. Their filings continue the important momentum started in July 2015 by 365 companies and investors that sent letters to governors across the U.S. stating their support as being “firmly grounded in economic reality.” Read more

Three Ways to Step Up Corporate Sustainability Leadership

Tom Murray, VP Corporate Partnerships, EDFAt COP21, the governments of almost 200 nations spoke with one voice to fight climate change. Global corporations played a critical role in making this breakthrough moment possible. Now it’s more important than ever that US business leaders continue to lead, sending a powerful message to the world about our commitment to a thriving, clean energy future.

So what can forward-thinking companies do to show leadership on climate and position their firms to succeed in the low-carbon future? Here are three ways that corporate leaders can step up their sustainability efforts in 2016:

1. Set public, science-based emission reduction goals that extend beyond your operations and into your supply chains

business leverageCompanies around the world are increasing their climate leadership and ambition. Announcing big numbers is no longer enough. Greenhouse gas (GHG) targets must be based on what science tells us is required to limit warming and stabilize the climate.

One major corporation that has actively engaged its supply chain is Walmart. Working closely with Environmental Defense Fund (EDF), the world’s largest retailer exceeded its 5-year goal and reduced 28 million metric tons of GHG from its global supply chain and product life cycles. EDF was on the ground, providing the science and uncovering the GHG hotspots in Walmart’s supply chain. By sending the right demand signals, Walmart was able to engage its vast network of suppliers to unlock innovation and drive emission reductions, proving that big goals drive big innovation.

In addition, Kellogg has announced it plans to cut GHG emissions by 65% across its own operations, and for the first time, work with suppliers to cut supply chain emissions by 50% by 2050.

Leading companies recognise that today’s environmental challenges are too big to tackle on their own. Taking a systems-approach means looking beyond the four walls of your company, collaborating with key supply chain partners, and sending a clear demand signal for sustainable products and practices across your supply chain. Read more

Coming Soon: Solutions for Finding Methane Leaks Faster

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Infrared footage of the leak from the Aliso Canyon gas storage facility

After more than four months of spewing potent methane pollution, the massive Aliso Canyon gas leak has finally been plugged. But now the state of California and the utility that owns the site, SoCalGas, are left with the responsibility of ensuring a disaster like this doesn’t happen again.

While Aliso Canyon has captured the attention of the nation, it’s important to remember that there are smaller—and far more prevalent—leaks happening throughout the country’s oil and gas supply chain every day. In fact, those emissions add up to more than 7 million metric tons of methane pollution every year.  That equals over $1 billion worth of wasted natural gas at 2015 prices.

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Map of leaks around the Porter Ranch area

Methane leaks aren’t just wasteful—they have real impacts on communities. In Wyoming, for example, oil and gas pollution has driven up respiratory illness and smog levels to rival those in famously polluted Los Angeles. In California, residents living near the Aliso Canyon leak have already experienced headaches and vomiting; the long-term health impacts of their exposure to these leaks are a big unknown.

While solutions to detect leaks—like the infrared cameras that made the Aliso Canyon geyser visible to the world—are readily available today, a group of technology developers and oil and gas companies are collaborating with EDF to develop even more cost-effective–and automated–technologies to dramatically speed up leak detection. Read more