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Archive for the ‘Energy Efficiency’ Category


By Lillias MacIntyre, Program Associate, Corporate Partnerships

Mcoachingmillions.comenefit is an essential characteristic of a successful relationship. At EDF – and especially within Corporate Partnerships – we continue to merge and strengthen the relationships within our networks to form alliances that work.

In May, I wrote about the increasing synergies between our Green Returns and EDF Climate Corps projects.  Both initiatives tap into important networks that make the business case for improving environmental management. To boot, in 2011, nine of the 49 companies participating in the EDF Climate Corps program were owned by private equity (PE) firms:

  • Booz Allen Hamilton (Carlyle)
  • Dunkin’ Brands (Carlyle)
  • Diversey (CD&R)
  • ServiceMaster (CD&R)
  • QTS (General Atlantic)
  • HCA (KKR)
  • SunGard (KKR)
  • Dave & Buster’s (Oak Hill)
  • ViaWest (Oak Hill)

Below are some examples of potential savings and reductions from projects identified by EDF Climate Corps fellows at PE owned companies:

Dunkin’ Brands – Tasked with identifying store-level energy efficiency projects and analyzing their financial potential, the fellow determined that a 15% reduction in electricity usage at 2,700 free-standing stores could result in collective savings of 80 million kWh, $12 million in energy costs and 47,000 MT in associated CO2 emissions annually.

Diversey – Four primary infrastructure improvements were proposed: on-demand hot water heaters, direct-fire space heaters, lighting sensors/controls, and a new compressed air system that could generate savings greater than $200,000 and 900 MT of CO2 annually over the life of each project.

Service Master – The fellow built on work from the previous year and found ways to reduce fleet fuel consumption and corporate electricity use by developing business cases for hybrid and electric vehicles in addition to identifying lighting upgrades.  These projects could reduce CO2 emissions by 143 MT, cut 114,000 kWh of electricity and save $15,500 in electricity costs annually.

QTS – With energy initiatives already in place, the fellow validated and improved those practices.  The company was enrolled in demand response programs, greenfleetmagazine.comalternate energy solutions were implemented, and recycling and e-cycling plans were developed.  If rolled out to a few facilities, these programs could cut 60 million kWh of electricity, 40,000 MT of CO2 emissions and 15 million gallons of water use annually – saving QTS $4.3 million in net operating costs over project lifetimes.  QTS plans to invest $10 million to implement the identified projects – a solid indication the company understands the value these initiative will add to its operations.

HCA – HCA participated in the program in 2010 and is also part of the KKR/EDF Green Portfolio Program, but despite this, the 2011 fellow was able to identify and evaluate two project ideas: the installation of Variable Refrigerant Volume (VRV) heating and cooling systems and modular boiler systems.  Both projects could yield reductions of 2.3 million kWh of electricity and 81.5 million kWh of natural gas, saving $2.3M in energy costs and more than 16,000 MT of CO2 emissions annually.  This could potentially save the company $16M in net operating costs over the 20 year project lifetime.

SunGard – In addition to being a part of the KKR/EDF Green Portfolio Program, this company participated in the EDF Climate Corps program last summer.  To build on current initiatives, the fellow developed a framework for establishing office Green Teams and Energy Treasure Hunt campaigns to identify additional opportunities.

ViaWest – The fellow focused on recycling, water efficiency, employee engagement and energy efficiency.  Recommended projects included corporate-wide electronic and cardboard recycling, PUE (Power Usage Effectiveness) reduction targets, energy efficiency financing and lighting maintenance projects.  These projects could help ViaWest recycle approximately 75 MT of computers and cardboards and save 7 million kWh in annual energy use – cutting roughly 4,400 MT of CO2 emissions and generating$500,000 in cost savings.

ecoinstitution.comThe entire group of 2011 EDF Climate Corps fellows (including those placed at cities and universities) identified $650M in potential net operating cost savings; potential reductions in energy use equivalent to what 38,000 homes use per year; and opportunities to avoid CO2 emissions equivalent to the emissions of 87,000 passenger vehicles annually.  (Complete results and highlights can be found on our website.)

Host companies pay fellows $1,250/week for 10-12 weeks and reimburse for travel expenses to the EDF Climate Corps training and end of summer network event.  With an 86% implementation rate for energy savings over the first three years, the IRR of an EDF Climate Corps fellow can be greater than a top quartile PE fund.  Furthermore, by hiring a fellow, firms can jumpstart their environmental management programs and generate momentum for implementing the program throughout their holdings.

After this year’s results, we expect to have even more PE firms and portfolio companies involved in 2012.  Companies are signing up now as the February 23rd deadline approaches, so I encourage you to visit our website and learn more!

EDF Climate Corps places specially-trained MBA and MPA students in companies, cities and universities to develop practical, actionable energy efficiency plans. Sign up to receive emails about EDF Climate Corps, including regular blog posts by our fellows. You can also visit ourFacebook page or follow us on Twitter to get regular updates about this project.

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By Lillias MacIntyre, Program Associate, Corporate Partnerships

OK – so you’re part of the ever increasing group of environmentally conscious global citizens trying to make a difference.  I’m sure you’ve found yourself browsing a retailer’s shelves or clicking through Amazon.com in search of a product more sustainable than the one sitting on your shelf at home…But you couldn’t remember if you should avoid PBDE, PFOA or NPEs!  Now, undeterred and armed with your smart phone, you launch the GoodGuide mobile app, and learn you should try and avoid all three chemicals.

GoodGuide helps consumers make better purchasing decisions by ranking product performance on a relative scale using an array of environmental, health and social impact metrics.  And with the recent launch of its “Transparency Toolbar” you can now browse products on Amazon.com and see how they stack up to the competition in areas of interest to you.  Naturally, the moment I learned about these tools I decided to give them a try.

The mobile app allows you to scan or manually input barcodes for product information and is a fun and convenient tool when it works.  With a database of about 120,000 products, you can opt to browse GoodGuide or simply use the scanner when shopping.  Conveniently, when browsing product categories, you’re given a list of “ingredients to watch for.”

The Toolbar is supported on Chrome and Firefox, currently works with Amazon, and will soon be supported by Walmart,SOAPTarget and Google Products.  While helpful when it finds a product from the database, this too has its inconsistencies.  For example, a search for “Avalon Organics Biotin B-Complex Thickening Shampoo” on GoodGuide.com, Amazon.com, and the mobile application produced an overall product rating of 6.2 on the first; a non product-specific 5.2 on the toolbar; and a 6.2 overall rating on the app.  Additionally, when clicking through for the “Full Rating” from the Toolbar, I was taken to a page with partial data and no overall rating.  It seems that in this case, the first Toolbar rating of 5.2 draws on overall company data (Avalon Natural Products).

Information on GoodGuide’s ratings and methodologies can be found on the website, but in general, data is acquired from many sources including scientific institutions, government agencies, NGOs, media outlets and corporations themselves.

That said, the next time you’re wandering the isles of your favorite retailer or searching for a great deal on Amazon.com, keep these tools in mind, because despite their kinks – you’re on a more enlightened path with GoodGuide.

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By Namrita Kapur

Here’s a quick pop quiz to test your knowledge on financing energy efficiency. True or False:

1. Energy efficiency financing provides risk-adjusted returns in the mid-to-high “teens.”

Answer: True

2. Energy efficiency is the hot, new asset class with massive amounts of investment capital catalyzing upgrades in building stocks and industrial facilities across the country to realize significant greenhouse gas reductions in the near-term.

Answer: False

As crazy as it may seem, this paradox exists today.  The Conference Board and McKinsey & Co. predict that energy efficiency is a $170 billion per year investment opportunity that can provide an average 17 percent rate of return. At Environmental Defense Fund(EDF) we’ve demonstrated the potential return through our work with leading business partners.  Our EDF Climate Corps program has identified investments to date that can create a whopping $439 million of savings in net operating costs. Another example – our work with Kohlberg Kravis Roberts & Co. (KKR) has yielded over $160 million in energy efficiency savings across seven of KKR’s portfolio companies since the Green Portfolio Program began in 2008. Despite all of the promising research and results, we are currently seeing only a fraction of investment capital needed to realize these benefits.

Investing in energy efficiency is important to our goals at EDF to clean up the air we breathe and stabilize our climate, and we set out to better understand how we can catalyze this marketplace.  We reviewed the literature; spoke with investors from firms Sustainable Development Capital LLP, Hudson Clean Energy Partners and GE Capital; and captured lessons learned from our work with leading business partners like KKR and programs like EDF Climate Corps.  We’ve consolidated the results of our research into a new report, “Show Me the Money: Energy Efficiency Financing Opportunities and Barriers,” which explores how organizations can overcome the challenges to energy efficiency financing and maximize the opportunities that are available for business and our planet.  We hope you will utilize the research we’ve collected and join  us in stimulating this marketplace.  Heck, we would be happy even if you by-passed us altogether and went straight to taking advantage of this lucrative asset class.

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by Andrew Winston

As a car, the all-electric Nissan Leaf has received mostly great reviews. But as a positioning statement, Nissan has, in many marketers’ eyes, missed the boat. After some missteps, Nissan may now be on the right path. An ad I pulled from Fast Company recently hits all the right marks.

The debate — or more accurately criticism — began last year with a now infamous ad showing a polar bear lugging himself from the Arctic to some guy’s suburban driveway to hug him for buying a Leaf. The ad was gorgeous, no doubt, and the YouTube version has been viewed 1.3 million times, which isn’t bad. But some green marketing leaders, such as Jacquie Ottman, found it a bit heavy-handed and way too focused on the hyper-green benefits vs. driving experience.

But even before getting to ads, some have pointed out that the name itself is a problem. A “Leaf” doesn’t exactly speak to the same part of the male brain that car ads usally target — the caveman lobe that asks, “How will this car make me sexy and powerful?”.

As one ad agency exec with a specialty in green marketing told me, “What guy is going to the pub and saying, ‘Hey, I test drove a Leaf’?” As she pointed out, the print ads have focused on images like seals and kelp — it’s basically the worst of green marketing, “like it’s packaged in burlap.”

Instead, experts suggest that the Leaf should be positioned in a much more exciting way, as the first electric car for the masses and a true innovation. This, Nissan could trumpet, is a new era of mobility!

So skip to the latest print ad, in which Nissan does something new. A fascinating, colorful graphic shows different cars on a spectrum of fuel efficiency. The axis is not, however, miles per gallon, but “miles traveled for one dollar.” As the ad says in small print: “comparing miles per gallon is suddenly irrelevant.”

Nissan%20Leaf%20Ad%2C%20Green%20Marketing%20%28May%202011%29.jpg

The traditional mpg metric has always been really odd: who thinks that way? And the government has had a devil of a time plugging (forgive me) electric cars into their normal rating system. What the heck does miles per gallon mean if you use no gallons?

But showing how far I can go for each dollar I spend? Now that’s dead on. This is brilliant marketing, in tight economic times or at any time. Nissan has declared a new metric for a completely new model of transportation. Bravo.

(This post first appeared at Harvard Business Online.)

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