EDF Climate Corps Continues to Drive Results for Private Equity Firms

The results are in. As my colleague Victoria Mills wrote recently, this year’s cohort of EDF Climate Corps fellows found $130 million in potential energy savings across 102 organizations.

Among the engagements, 12 fellows worked with private equity firms and portfolio companies on a diverse set of projects. Each engagement offers its own story, but we’d like to showcase a few examples demonstrating the value the Climate Corps program can bring to firms of all sizes and at all stages of understanding of energy management.

Energy audits and retrofits for a major manufacturing company

amiHellman & Friedman’s portfolio company Associated Materials, which specializes in exterior building products, hosted two fellows this past summer, its first year with the EDF Climate Corps program.

Fellow Karunakaren Muthumani Hariharan audited two of the firm’s 11 manufacturing locations to identify opportunities for energy efficiency, including lighting upgrades, process equipment upgrades and manufacturing process modifications. He suggested improvements with potential net present value savings greater than $1.4 million and reductions of greenhouse gas emissions by approximately 2,700 tons per year. Hariharan also proposed funding the energy efficiency projects through a new Green Energy and Sustainability Fund.

Krishna Chaitanya Vinnakota analyzed Associated Materials’ total expenditure on energy, over $15 million, and focused on energy saving opportunities in the company’s supply centers, including an approach that could result in energy expenditure savings of 20 to 50 percent in some supply centers. He also suggested strip doors as a simple but effective way of conserving energy during winter. It’s a project that could save the approximately half a million dollars per year if rolled out across the company’s 125 supply centers and 11 manufacturing plants. Read more

EDF Climate Corps Fellows Finding Gold in the Value Chain

Energy efficiency is a goldmine, but not everyone has the time or resources to dig. That’s why for the past seven years, over three hundred organizations have turned to EDF Climate Corps for hands-on help to cut costs and carbon pollution through better energy management. And every year, the program delivers results: this year’s class of fellows found $130 million in potential energy savings across 102 organizations.

But this year we also saw something new. In addition to mining efficiencies in companies’ internal operations, the fellows were sent farther afield – to suppliers’ factories, distribution systems and franchisee networks. What they discovered demonstrated that there is plenty of gold to be found across entire value chains, if companies take the time to mine it.

Here are three places where EDF Climate Corps fellows struck gold: Read more

From the inside-out: Warburg Pincus and EDF Climate Corps’ recipe for replication

Since 2008, EDF has worked with private equity firms to integrate environmental, social and governance (ESG) management into their practices. Leveraging our EDF Climate Corps program is a key strategy for replicating our work and we have now placed 44 EDF Climate Corps fellows among private equity firms and portfolio companies, to date. To learn more about how a particular firm has benefitted, I recently spoke with representatives at Warburg Pincus to hear how the EDF Climate Corps program has enhanced their continued efforts to share ESG-related best practices with Warburg Pincus' portfolio companies.

warburg1

This summer, Warburg Pincus hosted an EDF Climate Corps fellow for the second year in a row, and again chose to place the fellow at the firm level, rather than with a single portfolio company. “Running this process from the center allowed us to identify different opportunities, across our portfolio and coordinate work on each of them,” Warburg Pincus Vice President Michael Frain told me.

From speaking further with Frain and Daphne Patterson, Warburg Pincus’ first EDF Climate Corps fellow and newly minted associate, four key themes emerged:

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The First U.S. City to Run Out of Water?

by Rachel Finan, student at the Johns Hopkins University School of Advanced International Studies

Experts predict that by 2025 Sana’a, Yemen will become the first capital city to run out of water. They predict that by 2030 India will need to double its water-generation capacity or face the same fate, and water supplies in Istanbul, one of the world’s largest cities, is at just 28 percent. Yet before any of those cities run dry (in far off developing countries that most people in the United States associate with water scarcity issues), it could be a U.S. city that runs out of water. And it’s not just the usual suspects in the Southwest who face increasingly serious water concerns. Miami, FL is the second-most vulnerable U.S. city in a drought according to a University of Florida Environmental Hydrology Laboratory study. Cities such as Cleveland, OH; Chicago, IL; and New York, NY follow not far behind.

Rachel FinanJust last February, California state officials announced that 17 communities and water districts could run out of water in as little as 100 days. In Texas, that number more than doubles. Earlier this year state officials reported 48 communities were within 90 days of water interruptions; as of August 20th, there are 27 communities on that list. One small town in TX reportedly already has run dry.

This begs an obvious question; what are we doing about it? Additionally, what should we be doing about it – not just as a temporary fix, but as a long-term, strategic response? What would you do if water stopped coming out of your tap? Imagine if your town was one of the California or Texas communities with only 90 days of water left. As an EDF Climate Corps fellow, I’ve spent the last several weeks contemplating these questions and identifying opportunities for Texas-based institutions to not only conserve water, but to save money while doing so. I’ve been inspired by many examples throughout the state.

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Corporate Buyers Demonstrate Demand for Renewables. Now it’s Time for the Market to Catch Up.

Last month, twelve major corporations announced a combined goal of buying 8.4 million megawatt hours of renewable energy each year and called for market changes to make these large-scale purchases possible. Their commitment shows that demand for renewables has reached the big time.

We're proud that eight of the twelve are EDF Climate Corps host organizations:  BloombergFacebookGeneral MotorsHewlett PackardProctor & GambleREISprint and Walmart. The coalition, brought together by the World Wildlife Fund and World Resources Institute, is demanding enough renewable energy to power 800,000 homes a year. And while it's great to see these big names in the headlines, they're not alone in calling for clean energy: 60 percent of the largest U.S. businesses have set public goals to increase their use of renewables, cut carbon pollution or both.

Companies want renewable energy because it makes good business sense:  it’s clean, diversifies their energy supply, helps them hedge against fuel price volatility and furthers their greenhouse gas reduction goals. Renewables are now the fastest-growing power generation sector, and by 2018, they’re expected to make up almost a quarter of the global power mix. Prices of solar panels have dropped 75 percent since 2008, and in some parts of the country, wind is already cost-competitive with coal and gas.

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Four Lessons in Corporate Water Efficiency

by Susannah Harris, 2014 Climate Corps Fellow

I received quizzical looks from family and friends when I told them I was working on water efficiency projects at Verizon this summer. They paused, racking their brains about where water is used within the telecommunications industry. “Like in the bathrooms?” they’d ask.

Susannah Harris pictured here on site at Verizon headquarters in Basking Ridge, NJ

Susannah Harris pictured here on site at Verizon headquarters in Basking Ridge, NJ

The reality is that domestic telecom companies rely on billions of gallons of water per year to cool, clean and maintain the buildings and equipment that support their expansive networks. And because customers require networks to operate 24 hours a day, 365 days a year, much of that equipment is running around the clock. From cooling tower adjustments to grey water recycling, there are a number of water-saving opportunities available for the telecommunications industry. Implementing these practices – thereby reducing municipal water, sewer and energy bills – can also make a noticeable impact on the company's bottom line.

As an EDF Climate Corps fellow, my job was to chart a path forward for Verizon’s water efficiency efforts. The company has already made significant strides to reduce its carbon intensity – by 37 percent through 2012 over a 2009 baseline. “Verizon is taking a deeper dive into water efficiency to save critical resources for future generations,” says James Gowen, Chief Sustainability Officer and vice president of supply chain at Verizon. “Reducing our utility bills and increasing the effectiveness of our assets is a win-win for our business and the environment.”

Here are some lessons learned from my time at Verizon, which I hope will help other professionals developing corporate water strategies. The key is to gain a better understanding of how and where your company uses water – a critical building block for an effective program:

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Can a Climate Change Film Be As Memorable As TERMINATOR?

by Alex Duff, Corporate Affairs Manager, Kingfisher – Net Positive

Can you tell a story about climate change that’s as memorable as Terminator, Aliens, The Abyss, True Lies, Titanic or Avatar?  James Cameron, the acclaimed director of all of those blockbusters, clearly thinks it’s worth a shot given his involvement in a nine part docu-series that had its premier screening in London this week.  He’s not alone – a long list of movie stars, movie makers and many others have joined him in creating "Years of Living Dangerously" which has already been launched to critical acclaim in the USA.

Hollywood glamour

Whilst we weren’t at the Leicester Square Odeon, there was no red carpet and not a Hollywood movie star in sight, for those of us in sustainability more familiar with finding our stories knee-deep in a peat bog or skip-diving, the London premier held at the Soho Hotel certainly provided more than a glimpse of Hollywood glamour.  Perhaps more importantly though, it served as a powerful reminder of how clever interventions and effective storytelling can reach an audience beyond (excuse the pun) "The Usual Suspects."

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Private Equity Interest in EDF Climate Corps at All-Time High

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CC 2012 fellow Sarah Stern presents her work to CD&R's Daniel Jacobs, left, and Thomas Franco, right

Summer at EDF is always an exciting time as EDF Climate Corps fellows fan out and begin their placements at organizations across the country. This year we're thrilled to see a dozen fellows working with private equity firms and their portfolio companies, the highest number of such placements in a single summer. In total, EDF has now placed 44 EDF Climate Corps fellows in the private equity sector to date.

Managing investment dollars equivalent to roughly 8 percent of U.S. GDP, the private equity sector is critical to sharing, replicating and advancing corporate environmental best practices, so it's gratifying to see the level of activity continue to build. New hosts this year include portfolio companies Associated Materials, Avaya, Floor & Décor, Philadelphia Energy Solutions and Taylor Morrison. Private equity firms KKR and Warburg Pincus are also hosting fellows this year, as they have previously.

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Big Ideas on Display with Verizon Ventures

At the invitation of Alan Scott, Verizon’s leader of energy and sustainability, I was thrilled to participate in the Verizon Ventures Powerful Answers Award Dinner two weeks ago, a gathering of entrepreneurs, sustainability executives from large corporations, and nonprofit leaders.

Verizon Powerful Answers Award

The dinner was part of the run-up to Verizon's multi-million dollar global competition for creative solutions to the world's problems in the areas of education, healthcare, sustainability and transportation. The competition, for which the entry deadline is June 30th, rewards innovators for finding more efficient, sustainable, and accessible solutions that lead to better outcomes.

It was fascinating to hear the variety of conversations in the room, which appropriately was held at Foreign Cinema restaurant, a San Francisco Bay Area restaurant known for its sustainable practices. Across the evening, two key themes resonated with me: cross-learning and networks.

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EDF Climate Corps fellows – right where they need to be

EDF Climate Corps on Years of Living Dangerously

Watch the episode featuring
EDF Climate Corps
Monday May 26th at 8 pm on Showtime

When the producers of Years of Living Dangerously – Showtime’s groundbreaking new series about climate change – were looking for a story of hope, they turned to EDF Climate Corps. The series, which brings the reality of climate change into your living room every Monday night, does not spare the viewer the devastating impact on people of wildfires, superstorms and droughts. But it also shows how people can be part of the solution to climate change. The three EDF Climate Corps fellows featured in this Monday’s (5/26) episode are protagonists in that story of hope. They show how saving energy benefits both the environment (by cutting carbon emissions) and the bottom line.

One exchange that Showtime caught on camera goes something like this:

Jessica Alba:  “Can you can walk into any organization and tell them how to save energy and money?”

Climate Corps fellow:  “Yes.”

EDF Climate Corps fellows are turning up in all kinds of interesting places this year. In January, Tyrone Davis joined the first lady to watch the State of the Union address. This month, fellows will appear on television to give people hope about solutions to climate change. And this week, we announced the 2014 class of Climate Corps fellows – 117 top grad students chosen from close to 700 applications – all going to where the biggest opportunities are to save energy.

EDF Climate Corps Working in Key Geographies

This year, we’ll have six Climate Corps fellows in China, now the world’s biggest emitter of greenhouse gas. About two-thirds of our 117 engagements will be in the nine U.S. states that consume over 50% of the nation’s energy. And 16 of those will be in Chicago accelerating progress toward the city’s 20% energy reduction goal.

EDF Climate Corps Helping Key Sectors 

Climate Corps fellows continue to work in large commercial buildings like the Merchandise Mart in Chicago. But we’ve also expanded the sectors in which we work to include manufacturing (with Legrand, Lockheed Martin and Owens Corning), cities (Baltimore, Boston and Los Angeles) universities (Clark Atlanta and the University of Texas Southwest Medical Center), data centers (RBS Citizens and Comcast), utilities (Pacific Gas & Electric), and even military bases (US Army at Fort Bragg).

EDF Climate Corps Tackling Diverse Projects

The 2014 class of Climate Corps fellows are working on a wider range of projects than ever before. About half will be working on building energy efficiency. The rest of the projects include:

  • Energy strategy, data management and employee engagement
  • Water efficiency – implementing the unique toolkit that EDF developed with AT&T
  • Supply chain logistics – integrating our expertise in green freight and operating more efficient warehouses

EDF Climate Corps is recruiting, training and deploying the sustainability leaders of tomorrow; a viral solution that gives us hope that we can bend the curve on carbon emissions and avoid the worst impacts of a warming world. But don’t just take my word for it. Tune into “Years of Living Dangerously” on Monday May 26th at 8pm on Showtime. See for yourselves how our fellows helped Caesars Entertainment Corporation, Texas Southern University and Office Depot scale their energy management efforts.

 

Also of interest:

Years of Living Dangerously: Two producers, coffee and a vision for climate action

Behind the Showtime cameras with EDF Climate Corps fellows

EDF Climate Corps, creating a new generation of leaders