New Case Studies in Energy Management Show the Path from 'Why' to 'How'

Business leaders have long agreed on the “why” of environmental management: seeing the value in increased profits, reduced waste and a smaller carbon footprint. But the “how” has often been the stumbling block.

Two case studies released today from adidas Group and the Housing Authority of the City and County of Denver (DHA) help to answer that question, detailing energy management strategies that deliver tremendous value and are great examples for other organizations to follow.

Material Handling Equipment at adidas Group

The adidas Group tackled the dual challenge of improving efficiency in existing distribution centers as well as when specifying material handling equipment in new facilities. Recognizing that only reducing upfront costs during design won’t optimize efficiency over the long term, the adidas Group is now analyzing the lifecycle cost of conveyer belts and other equipment. See the full case study here.

Meanwhile, DHA tackled the challenge of expanding renewable energy resources despite limited capital funds. The solution: an innovative power purchase agreement that enabled the installation of a 2.5 megawatt solar project with minimal upfront costs and a stream of lease payments to benefit DHA. If the 3,300 housing authorities in the U.S. duplicated Denver’s success, their rooftops could produce enough solar energy to power more than 1 million homes. See the full case study here.

Solar installation at DHA

Today’s announcement comes on the heels of the recently released case studies of JLL and Urban Innovations, which have risen to the City of Chicago’s challenge to reduce commercial building energy consumption by 20 percent in the next five years. By focusing on education, automation and data, JLL and Urban Innovations each took leaps forward in energy efficiency.

EDF is thrilled to share these case studies as scalable solutions that companies across a wide range of industry sectors can adopt. Together, they show the diversity of organizations that benefit from EDF Climate Corps, and whet our appetite for the projects on tap for the summer of 2015, including Verizon, Shorenstein Properties and Hill+Knowlton Strategies.

We are seeing the dawn of a new era for EDF Climate Corps, as our eight years of partnerships bear new and interesting fruit, with the potential to save energy in hundreds – or even thousands – of organizations. We are eager to hear how you are making the transition from “why” to “how” in energy management, and how EDF can help. Contact us at info@edfclimatecorps.org.

2015: A Year of Business and Policy Action on Climate

Tom Murray, VP Corporate Partnerships, EDFFor most of us, New Year’s marks the time when we set annual resolutions (personal and professional) and get to work on tackling the priorities for the year ahead. In my hometown of Washington, DC a new year also means that Congress comes back into session, lawmakers and speechwriters ready their agendas and proposals, and the president delivers the State of the Union address.

From what we heard last night and in recent announcements, 2015 could be a big year for action on climate – from government and the private sector alike. But big results will take leadership on all fronts.

Leadership from our government…

Addressing climate change is supported by the vast majority of Americans and the Obama administration is taking bold steps to curb the United States’ contribution to climate change. Last night, we saw President Obama tell the nation “no challenge – no challenge – poses a greater threat to future generations than climate change” in his State of the Union address. The President also strongly reiterated his commitment to work to ensure “American leadership drives international action” on climate change.

It is clear that climate change is an urgent national priority. Fortunately, the Administration is carrying out its promises under the Climate Action Plan, and steps taken and soon-to-be-taken have helped put us on the right path. From the proposal to reduce carbon pollution from power plants, expected fuel economy standards for medium- and heavy-duty trucks, to last week’s announcement of steps to address methane emissions from the oil and gas sector, we have seen a lot of progress to address climate change since the last State of the Union. Further, the November announcement of a joint China-U.S. agreement to address climate change on a global scale underscores how crucial U.S. leadership is at this juncture in achieving a binding worldwide climate deal. Much more work remains and leadership at all levels will be necessary to meet our climate goals. Read more

Methane Mitigation Sector: EPA Actions Good for Industry, Will Curb Waste and Protect Communities

sean_wright_287x377A rising chorus of companies in the oil & gas services sector are adding their voices to the majority of Americans who think it’s a smart idea to limit vast waste of methane taking place every day in the nation’s the oil and gas operations. These companies in the methane mitigation industry are experts in finding and fixing methane waste. They issued statements welcoming the EPA’s announcement of planned rules aimed at reducing methane emissions from the oil and gas value chain.

As the ones who are working overtime to provide technologies and services to minimize release of methane and other pollutants throughout the natural gas value chain, these companies see limiting methane emissions as smart business for the oil and gas industry.

Consider their remarks:

  • “Rebellion Photonics welcomes today’s announcement from the EPA regarding its methane plan. It is a positive step towards ensuring we minimize emissions of methane, a short-term climate forcer, from the US oil and gas value chain. America’s shale revolution holds vast potential to both power our economy and drive environmental gains. Limiting the amount of methane that leaks from natural gas equipment ensures that we will maximize the environmental benefits of America’s plentiful natural gas resources,” said Rebellion Photonics, a manufacturer of specialized cameras that detect methane leaks.
  • “The FSA and its members are committed to doing its part to address climate change. The FSA is well equipped to work with our partners in the oil and gas sector, the EPA and the Obama Administration in finding solutions and being a technical resource to curtail methane emissions,” said the Fluid Sealing Association, which represents major US manufacturers of sealing technology that helps limit emissions of methane.
  • “Apogee Scientific, Inc. looks forward to working closely with the EPA and the Oil and Gas sector to reduce the environmental and health impacts of oil and natural gas development in the United States. As a company based in Colorado, a state with the country’s strongest methane rules, we have seen first-hand how good, comprehensive policy can drive environmental, economic, and local community benefits. The EPA should look at Colorado as the model of how good methane policy can benefit all stakeholders involved,” said Apogee Scientific, a Colorado-based maker of leak detection equipment.

These statements express the clear private-sector support for smart, common sense limits on methane emissions that will level the playing field for operators nationwide and drive down emissions. Read more

The Green Freight Journey: Raise the Bar

The Green Freight Journey is a five-step framework for freight optimization projects. In this blog series, EDF is taking a brief look at each step of the Journey.

We’ve all heard the saying, “Life’s a journey, not the destination.” Your Green Freight efforts are no exception.

The Green Freight Journey is about setting long-term goals and continuously learning.  Each time you reach a “destination,” remember to celebrate your success and share your learnings broadly within your organization and network.

Once you’ve acknowledged your success, challenge your department to take on new and more complex projects. As emissions from global goods movement continue to increase, the changes you make will make a difference and influence others to do the same.

To learn more about the Green Freight Journey, watch our recorded webinar, where we go into more detail about the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

During the webinar, participants will:

  • Be introduced to the steps of a Green Freight Journey and receive tips for success on each;
  • Hear real-world examples of companies that have cut emissions and costs by optimizing freight moves;
  • Review existing tools, including a green freight benchmarking survey and the EDF Green Freight Handbook; and
  • Learn how an EDF Climate Corps fellow helped Ocean Spray Cranberries identify new green freight opportunities

Steps on the Green Freight Journey:

Be a Green Freight Superhero

Also, watch our EDF Supply Chain Heroes video to learn how logistics managers can channel their "superpowers" to drive their companies' sustainability efforts. The choices they make, such as moving cargo via rail or participating in a truckload consolidation network, have the power to slash costs and cut greenhouse gas emissions. Become a green freight superhero at your organization today!

The Green Freight Journey: Declare a Goal

The Green Freight Journey is a five-step framework for freight optimization projects. In this blog series, EDF is taking a brief look at each step of the Journey.

Green Freight Journey

These first three steps of the Green Freight Journey are fundamentally about getting “up to speed” on your journey. You start with your objective and metrics; launch a pilot or two; and then embrace the approach with wider adoption and a formal recognition. Now it’s time to invest in progress over the long term.

Companies set themselves up for longer-term success and spur innovation by declaring a goal, which is step 4 of the journey.

To do this, companies need to:

  • Assess long-term opportunities – More than just looking at what they can move forward on today, companies need to be thinking along the lines of what  they can build towards over the next 3-5 years.
  • Focus on continuous improvement – The metrics-driven approach we discuss throughout the Green Freight Journey will be key here. A long-term goal backed by objective metrics inoculates your effort from the threat of “big shiny object” projects – for example, that pet project of an executive that might be great for a press release, but won’t move the needle forward on the metrics.
  • Choose an actionable timeframe – The goal should be far enough on the horizon that you will be able to make some significant network changes over the time frame. It should be close enough, though, to be actionable.
  • Set specific targets – Your goal should be framed clearly so that all team members will understand when the project can be deemed a success.

Many companies are already setting goals for their freight operations; here are some examples to get you thinking:

To learn more about the Green Freight Journey, watch our recorded webinar, where we go into more detail about the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

Steps on the Green Freight Journey:

The Green Freight Journey: Accelerate Performance

The Green Freight Journey is a five-step framework for freight optimization projects. Leading up to our January 14th webinar, EDF is taking a brief look at each step of the Journey.

Once you have completed your green freight pilot project(s), it’s time to start applying your learnings at scale. Build off the success of your pilot—from one or two projects, can you now expand your program to five or ten? Below are some useful tips to help your company take the next step in the Green Freight Journey.

  • Formalize the team  It’s critical that your company’s Green Freight efforts are given a clear structure. Recognize team members for their sustainability efforts as part of the evaluation process. Put in place procedures for sharing results and bringing forward new ideas.
  • Scale successful pilots – Make sure you get the most return for your effort. Scope out opportunities where you can scale up your impact and look for additional lanes where you can deploy your learnings.
  • Identify new opportunities – Be on the lookout for new challenges to take on. Are there slightly higher-hanging fruit to reach for? What projects have a bit more complexity but could deliver significant return? For ideas, be sure to check out the Green Freight Handbook.

CycleThis is the stage where you really start to leverage the power of EDF’s Virtuous Cycle of Strategic Energy Management. It is a model of change we've discovered that applies to energy performance  including in freight applications – across even radically different organizations with five powerful, interdependent components.

  1. Executive Engagement
  2. Resource Investment
  3. People
  4. Identification, Implementation and Results Measurement and Verification (M&V)
  5. Stories and Sharing

The five components of this machine affect one another, for better or for worse. If the performance of one improves, it often improves the performance of all in a "virtuous cycle" of positive feedback. When all components function at full capacity, the cycle will run smoothly to improve energy performance, maximizing financial and environmental returns.

Join me on January 14 at 12PM ET for a webinar that will introduce you to the full Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

Register here today for this informative webinar.

Steps on the Green Freight Journey:

Is Water the New Bottom Line for Companies?

On December 11th, the U.S. Chamber of Commerce Foundation (USCCF) Corporate Citizenship Center will host The Energy-Water-Food Nexus: Risks and Opportunities for the Private Sector, the second in a series of roundtables based on a report released earlier this year. The USCCF’s report and surrounding events are highlighting success stories, and more importantly, opportunities for the business community to address the energy–water nexus: the idea that energy and water use are Source-flickr-neilsingapore-300x228fundamentally intertwined. In order to accurately address water risks across operations and supply chains, businesses must take a more holistic look at their water and power usage.

The business world is quickly beginning to understand the intersection of these two sectors and the significant impact that they have on business operations.

Business and the energy-water nexus

In the commercial, industrial, and institutional sectors, energy efficiency and other measures could save as much as 15-30 percent of water use without reducing operations. This is particularly important as businesses consider how they manage water risks in areas where they operate. The 2014 Carbon Disclosure Project Water Disclosure Global Report, conducted on behalf of 573 investors with assets of $60 trillion, reported that 68 percent of responding companies say water is a substantial risk to their businesses, but only 42 percent have publicly demonstrated a commitment to water efficiency. Interestingly, 43 percent of reporting businesses said that water stress and/or scarcity was a top risk driver versus 16 percent that said drought was a top risk driver. This indicates that companies are more focused on longer-term risk management, as opposed to reacting primarily to drought conditions and concerns about short-term profits. Read more

Start Your Green Freight Journey with EDF

Many leading companies are creating business value today by cutting carbon emissions from freight moves. These companies, such as Walmart, Ikea, Unilever and Ocean Spray, are following a similar path, one we at EDF are calling the Green Freight Journey, a five-step framework for freight optimization projects.

Sign up to learn more about the Journey.

Define the path. Then take a step. Then take another.

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Companies start by taking the nebulous concept of sustainability and making it mean something specific and material to their company, for example, “we are going to use fuel more efficiently." They create specific metrics to track this objective, such as product moved per gallon of fuel consumed, or emissions per ton-mile.

Next, these companies develop pilot green freight projects to test out that objective, using the metrics they chose to evaluate the projects’ efficacy. The projects that deliver financial and environmental returns are scaled up and those that don't are redesigned or scrapped.

Leaders have a critical role to play in this process as well: they create long-term improvement goals for their company’s key metrics. This enables them to focus day-to-day on continuous improvement, and it inoculates them against the siren call of “big shiny object” projects – ones that might be good for a press release but won’t move the needle on their metrics.

By taking these steps, companies advance along their Green Freight Journey, and along the way, cut costs and emissions.

Now it’s your turn.

Every company that uses the freight system to move products to market has opportunities to reduce operating costs and greenhouse gas emissions by taking a Green Freight Journey. Join me on January 14 at 12PM ET for a webinar that will introduce you to the Green Freight Journey framework, review real-world case examples and highlight tools EDF is making available to help companies progress on their journey.

During the webinar, participants will:

  • Be introduced to the steps of a Green Freight Journey and receive tips for success on each;
  • Hear real-world examples of companies that have cut emissions and costs by optimizing freight moves;
  • Review existing tools, including a green freight benchmarking survey and the EDF Green Freight Handbook; and
  • Learn how an EDF Climate Corps fellow helped Ocean Spray Cranberries identify new green freight opportunities.

Register here today for this informative webinar.

Oak Hill Capital Continues to Chart the ESG Course for Middle-Market Private Equity Firms

Last year, Oak Hill Capital Partners released its inaugural environmental, social, and governance (ESG) performance report. While you may have read about similar reports from private equity firms like KKR and The Carlyle Group on this blog, Oak Hill Capital’s report was significant because it were first among U.S. middle-market private equity firms to publicly release an ESG performance report. In doing so, the firm increased transparency and offered other mid-market firms a blueprint to follow. Last week, it issued its second annual report, offering an inside look at the firm’s progress to date.

Oak Hill Capital Partners logoA comprehensive approach

In its new report, Oak Hill Capital outlines its approach to ESG management, measuring progress in integration, results and leadership: three of the key building blocks for a successful ESG management program that are included in our ESG Management Tool for private equity.

For Oak Hill Capital, integration refers to the ways it embeds ESG management practices across the firm’s operations to ensure it can best deliver results at portfolio companies. Key examples from the report include its responsible investment policy, incorporation of ESG in due diligence, and its recently becoming a signatory of the United Nations Principles for Responsible Investment (UNPRI). Management of environmental performance is also woven into the management of the firm, through its ESG Committee, which is made up of senior executives and chaired by Oak Hill Capital’s general counsel.

Results speak to how the firm evaluates the ESG performance of potential new investments and how it tracks and supports the sustainability efforts of portfolio companies. This year’s report includes how the firm considered ESG factors in the due diligence process of three new investments and how existing portfolio companies have benefited from the firm’s expertise in ESG issues. One example is an energy efficiency project Oak Hill Capital initiated at its portfolio company, Dave and Buster’s, with Entouch Controls, a leading energy management solution for restaurants and schools.

Lastly, Oak Hill Capital takes a broad approach to leadership, both within the industry and in the communities in which it operates: promoting lessons learned among similarly-sized firms, as well as engaging employees in business-focused mentorship opportunities.

A diverse portfolio of sustainability initiatives Read more

General Mills selects United Suppliers to increase fertilizer efficiency in the field

SUSTAIN-logo_circle_4c-300x300Isn’t it nice when somebody steps forward boldly to do the right thing and is rewarded for doing so? General Mills did just that for United Suppliers and the SUSTAIN platform, which will help farmers improve nitrogen use efficiency and productivity.
In July, General Mills put out a call for proposals to help the company meet increased production needs in ways that contribute to cleaner air and water.

It was almost like a future posting in sustainability want ads: “General Mills, a 17+ billion dollar food company, has the following need: Seeking best practices in nitrogen fertilization (nitrogen optimization) technologies for sustainable agriculture.”

The company recognized the pressing need to limit nutrient losses while also helping farmers produce more of the wheat, corn, soybeans and other crops it needs to make the products we buy.

And the winners are….

United Suppliers got the nod with its SUSTAIN platform. As I blogged earlier this fall, United Suppliers has really stepped out front with this platform, recognizing the growing  sustainability demands from retailers and food companies as a real business opportunity. They knew they were taking a risk when they reached out to Environmental Defense Fund last spring for help in developing a program to meet the changing needs of the supply chain.

If they built this program, would anyone care? Would their owner retailers sign up to implement the program? Would food companies want to use it?

Well, we still have a long way to go. But the signs are good, and this success with General Mills is a big step forward. General Mills saw the huge value in SUSTAIN, which includes nutrient use efficiency and soil health technologies, practices  and products, as well as the extensive training and implementation infrastructure needed to take it to scale.

The other winner of the General Mills competition was Adapt-N, a breakthrough nitrogen use efficiency platform that is also included in SUSTAIN.

Ramping up

This winter will be very busy with grower meetings and trainings for the agronomists and owners of participating ag retailers and cooperatives, as well as deployment of the robust data platform needed to maximize value back to the ag retailers and growers and aggregate data for supply chain reporting.

We are very excited to see SUSTAIN become part of General Mills’ work to meet its goal of being 100 percent sustainably sourced by 2020 for its 10 priority ingredients. These ingredients – corn, oats, wheat, dairy, fiber packaging, cocoa, vanilla, palm oil, sugar cane and sugar beets – represent half of the company’s total raw material purchases.

The commitment builds on the company’s sustainability mission to conserve and protect the resources upon which its business depends. Currently, General Mills has five regional sustainability engagements for commodity crops using the Field to Market continuous improvement framework , and it will deploy SUSTAIN and Adapt-N across these regions.  These programs will support General Mills’ primary purpose in advancing agriculture sustainability and grower profitability.

This post was originally published on EDF's Growing Returns blog.