Posts filed under ‘Climate Change’
Meet the NAEM Board of Directors: What are the EHS and sustainability trends to watch in 2012?
As part of NAEM’s 2012 Member Appreciation Week celebration, we sat down with members of the NAEM Board of Directors to talk about the EHS and sustainability trends to watch in 2012. Featuring Michael Miller of Dean Foods; David Newman; Mark Hause of DuPont; and Verne Shortel of NRG Energy.
Emerging Leaders Series: How WESCO Turned on the Savings with LEDs
Billy Grayson
For the past few months, I’ve had LEDs (light-emitting diodes) on the brain.
At WESCO, we sell a LOT of lighting, and have seen tremendous sales growth in more energy-efficient fluorescent bulbs, ballasts and fixtures.
There are a lot of factors driving this growth in fluorescent sales: Companies are looking to cut energy costs, and even without incentives an upgrade to T5 or T8 lighting from T12 or metal halide [1] often has a payback of three years or less. Companies are also looking to take advantage of state and federal incentives. In some areas, this can reduce the payback on a lighting upgrade from three to five years to 18 months.
Federal regulation is driving investment as well. In July 2012, most T12 technology will no longer be available (even if Congress does stop the 100-watt incandescent phaseout). Companies that do not upgrade their lighting may not be able to buy new bulbs by the end of the year.
So the business case for a fluorescent lighting upgrade is compelling, but with stories like Wired’s August 2011 cover feature on LED bulbs, stories like Wal-Mart, Denny’s and Starbucks investment in LEDs, and even some recent big WESCO LED projects (including streetlighting with Pacific Gas & Electric Co.), there are many wondering if they should make the jump to LEDs now, rather than make a short-term investment in a better fluorescent technology.
There really is no “right” answer in the debate over LEDs vs. high-efficiency fluorescents: The choice depends on a number of factors. Below are some of the things that are making LEDs look more and more attractive:
- The price of LEDs is coming down: Over the past two years, the price of many types of LEDs has come down significantly, more than 50 percent in many applications.
- LEDs are becoming more flexible: New entries to the market include LEDs that plug into existing ballasts, LEDs that provide easy upgrades as chip technology matures and LEDs that are “smarter,” with dimming and occupancy capabilities well beyond the traditional electronic ballast fluorescent.
- The price of fluorescents is going up: With recent spikes in the price of rare earth metals, the price of fluorescent bulbs rose more than 30 percent in 2011. Although the price has recently come down a little, it is possible that challenges in obtaining these materials could spike the price again.
- LEDs save a LOT: LED’s use less energy, last longer and require less maintenance than fluorescents.
- LEDs have a lighter footprint: Even outside of energy savings, LEDs are arguably better for the environment, as they require less materials to manufacture, ship and install, and they do not have the challenges associated with mercury disposal that fluorescents do.
- LEDs are much “cooler”: There’s a lot of new lighting options available with LEDs, and many of them are arguably more aesthetically pleasing than traditional fluorescents.
With all the arguments for LEDs, why would anyone make the shift from T12 to T8?
For WESCO’s internal lighting upgrades, it all came down to dollars and cents. For our portfolio, a switch to 25 and 28-watt T8s had an average payback after incentives of 1.9 years and a five-year return on investment (ROI) of 225 percent. For warehouse lighting, LED payback was slightly longer than five years.
What’s right for WESCO is not necessarily what’s best for other companies. We’ve recently completed LED lighting upgrades for companies ranging from utilities to food distributors to retail food chains. For these customers, the payback on LEDs was more compelling than a short-term move to fluorescents. Some of the factors for these customers included:
- Running their lights all the time: For companies ranging from food distributors to 24-hour mini-marts, LED investments can pay back faster than flourescents. Where a 40-hour-a-week facility may save $1,000 a year with fluorescents and $2,000 a year with LEDs, a 24/7 facility would save more than four times as much in annual electricity costs.
- Pricey power: WESCO’s LED business is strongest across the board in Hawaii. Why? $.25-$.40/kWh. When you pay that much for power, the deeper the energy savings the more compelling the business case.
- Long-term commitment: The federal government has become a strong customer for LEDs. With a 10-20-year investment horizon, LEDs make great business sense – even now most LED investments will outperform efficient fluorescents over periods longer than 10 years.
- Companies for whom image means a lot: A number of companies are willing to forego the short-term ROI of a fluorescent upgrade for the aesthetic and reputational benefits from a big LED investment. As I mentioned before, positive public relations and prettier store and restaurant lighting may trump straight payback and ROI calculations for some companies.
At WESCO, we’ve decided for the time being to put most of our investment in a fluorescent upgrade. But even in our portfolio there are places where LEDs make sense. We are upgrading parking lot lighting in a number of facilities to LED this year (the lifetime ROI on these investments beat our metal halide and HPS). We are also setting up some conference room and warehouse LED demonstration projects in Charlotte, North Carolina; Chicago; Los Angeles and Pittsburgh, Pa., artly to provide a showroom for our customers, and partly to act as “guinea pigs” for some of the cutting-edge technology being brought to market by Philips, CREE, and others.
Billy Grayson is the Director of Corporate Sustainability for WESCO Distribution, where works with both the marketing and operations teams to help the company “Go Green” – a program to reduce energy consumption and improve environmental performance and communicating WESCO’s energy and environmental achievements to customers, suppliers, and other stakeholders. Before joining WESCO, Mr. Grayson was a Senior Associate at ICF International, working with public and private sector clients on greenhouse gas mitigation, energy efficiency, and other environmental mitigation projects.
[1] For those not familiar with common lighting types, Philips has a good calculator to help you get started at http://applications.nam.lighting.philips.com/ecocalculator/
Life in the Fast Lane: Electric Vehicle Observations
Bruce Klafter
Recently I had the opportunity to use a Nissan Leaf™ for several full days, a much more interesting exercise than a simple test drive. As someone working in the sustainability area, as a co-chair of the California Clean Cars campaign and as a likely car buyer in 2012 (my current vehicle has over 230,000 miles on it) I am very interested in the electric vehicle (EV) market.
Nissan’s Leaf™ is among the handful of low emission cars that are presently authorized to carry a Clean Air Vehicle Sticker, entitling a single occupant to use the carpool lanes during rush hours – a very nice side benefit to EV ownership that helped speed my commute this week.
My general impression of EV driving is very favorable. This particular model is roomy, it has all the bells and whistles (bluetooth, navigation, backup camera, etc.) and most importantly, it really drives well. Acceleration, handling and power are all indistinguishable from a gas powered vehicle.
The only issue I’ve had this week is the one that continues to slow down growth in the EV market, namely range anxiety and ease of recharging. I have been charging the vehicle at home and at work using conventional 120v outlets and while the process is simple and easy, it certainly takes a while, e.g. 11 hours to get a full charge last night.
When I left my home the range indicator read “100 miles”, but 35 miles of highway driving depleted that amount to 42. In other words, at 60+ miles per hour, a 35 mile trip used up 58 miles of driving range. Keep in mind, I tried to use the EV just like I use my current one, driving as fast as usual as opposed to crawling along in the slow lane just to conserve the charge. With the indicator staring at you the entire time, you also start thinking about all of the devices that consume electricity in the car, such as the lights, the radio, and the seat warmers and so on. Since I want a fully functional vehicle, the notion of driving around in a dark, cold vehicle is not a selling point.
My conclusions: I love just about everything in the EV experience other than the limitations on range. If the car had a 200-mile range, I would be placing an order tomorrow. Until batteries are improved, however, fast charging 240v stations are essential and the buyers for whom EVs work perfectly may be limited. By the way, Applied Materials is among the companies working to address some of the battery issues. It will also be exciting to see a whole slew of new EVs and plug-in hybrids (PHEVs) in 2012.
Bruce Klafter is head of Corporate Responsibility and Sustainability at Applied Materials, Inc. and leads the effort to fulfill the company’s commitment to sustainability in the design and implementation of business strategies and worldwide operations.
Conviction Alone Doesn’t Compel Change
Kimberly Wallis
This month in our ‘Emerging Leaders’ series, we introduce you to Kimberly Wallis, a master’s candidate at Duke University’s Nicholas School of the Environment, and a student member of NAEM. This summer she worked on energy issues as an intern with the Union of Concerned Scientists.
These days, a job in the hand is definitely worth more than two in the bush. No elected official is going to even consider a move that might cost their constituents jobs. So, convincing legislators in Ohio to invest in renewable energy, rather than in coal, one of their main industries, seems like a hard sell. Vague statements about ‘the green economy’ and ‘green collar jobs’ aren’t going to cut it with the legislators or with their constituents. “Maybe I would get better pay at a wind farm,” thinks the technician. “But I don’t know where these jobs would come from, or how many they would be. I’m better off just sticking at my old job.”
How many, where, and how much? Those are the questions the Union of Concerned Scientists (UCS) tried to answer regarding clean energy jobs in the Midwest states, including Ohio. It’s hard to convince people to give up the status quo for uncertainty, even if evidence shows that the change will be beneficial, so UCS put resources into erasing some of that uncertainty. As an intern there this summer, I helped paint a picture for Ohioans of what a different future might look like.
How would the change affect a household’s monthly energy bills? What would the net jobs increase be, not countrywide but in Ohio? In short, how would investment in renewable energy and energy efficiency impact the daily life of an Ohioan, and is it worth giving up the certainty of the status quo?
It’s not enough to tell people what not to do. It’s not even enough to tell them what to do instead. “Better the devil you know” – and uncertainty is always a devil. Painting a picture of what the future could look like gives people something to strive for, whether they are in your community or in your company. It’s the difference between a mission statement and a vision statement – and as the vision becomes more specific and tangible, it becomes more persuasive.
A call to “decrease waste!” or to “reduce GHG emissions!” isn’t going to convince anyone to give up the security of the status quo. What are you offering them instead, is the question.
When it comes to making the case for new EHS and sustainability programs, what tactics have you found to be most effective?
Kimberly Wallis is a graduate student in environmental management at the Nicholas School of the Environment at Duke University, where she focuses on energy issues and effective communication. She is particularly interested in how individuals and organizations change.
Community Engagement is Key in Climate Action
Mark Posson
In helping my local municipality develop a Climate Action Plan, I reviewed several articles discussing the barriers to individuals and households making behavioral changes to reduce greenhouse gas emissions. An estimated 38 percent of the United States’ overall carbon emissions comes from household energy usage, which means significant changes in household behavior are necessary for our country to meet its greenhouse gas emission reduction goals.
Government regulations are driving technology changes, such as higher appliance-efficiency standards, but efficiency improvements alone are not going to do it. Individuals must make better energy usage choices in their daily activities to achieve needed usage reductions. Passing regulations is easy; changing decision-making and behavior is not.
Do I carpool or drive alone? Do I weatherize my home? Do I replace my incandescent bulbs—with CFL or LED? Do I need that light on? How and where do I set my thermostat?
There are multiple barriers to behavioral change and there is no silver bullet. The specific methods of intervention are best tailored to the specific change and outcome desired. There are, however, some common elements to making lasting change:
- Make it easy: Free community programs for energy audits and retrofits both educate and make immediate changes with only a phone call.
- Make it financially attractive: Show people the payback so they see what’s in it for them. Communicate the cost of leaving a light, power strips and electronics on when not in use; and the ease of turning them off. Rebates and credits may be needed to get some to act or to balance the financial equation.
- Make sure it works: Poor quality of a service or product will create only headwinds for implementation. Go with what works and shoot for the best.
- Provide timely gratification: A lower utility bill next month or an instant rebate is superior to a tax credit next April.
- Take a multi-pronged approach: Don’t rely on just one method. Easy, financially attractive, well-understood changes have a better chance of being adopted and maintained.
Reduction of greenhouse gases is only one of the many environmental improvements we are trying to tackle. As environmental leaders, we need to further integrate social science with the environmental science to achieve better use of our natural resources. The next increments of improvement will be the hardest as we are will need to address the individual behavior of the earth’s residents.
What methods are you using to change the behavior of your organization and community to make better environmentally-sensitive decisions?
Mark Posson is the former Director of Environment, Safety and Health at Lockheed Martin Space Systems Company and the current Chair of the city of Pleasanton’s Energy and Environment Committee. Mark enjoys fishing, hiking, biking, racquetball, time with the family and public service.
Cultivating a culture of green: An interview with Andrew Winston
Each year the keynote speakers at the NAEM Forum inspire attendees with their mix of practical insights and leading-edge thinking. This week Forum committee chairman Steve Walker spoke to Andrew Winston, author of “Green Recovery” and the opening keynote at this year’s conference, about how companies can cultivate a culture of green.
Andrew Winston
SW: What does this recession mean for the greening movement? Do companies still need to think about going green?
AW: Many companies slowed their green initiatives in the downturn; this was a big mistake. It’s a common misperception that green equals cost. Combine that with a recession that has slashed everyone’s spending and budgets, and you get a seeming logic to stop all environmental activities. But going green doesn’t raise costs, it lowers them. Seeing your business through an environmental lens drives innovation as well. But on top of that, nearly all of the driving forces behind the green wave of pressure on companies have not slowed down. The greening of the supply chain has accelerated, with companies like Wal-Mart taking the lead. Consumers have continued to evolve and grow more ‘conflicted’ about purchases. Weather/climate-related events have exacerbated an already short supply of almost all basic commodities. The cost of doing business is rising. In short, this is an amazing opportunity to go green NOW: It will save money (if done right) and prepare a company for a much more resource-constrained, environmentally concerned future.
SW: What are the five areas where a business can get lean and save money fast?
AW: In recent years, it’s become the norm for companies to deal with tight times by laying off people first. In the fourth quarter of 2008, before the recession hit a lot of companies directly, we saw massive layoffs, nearly guaranteeing the recession. But in most industries, we’re discovering that we have enormous opportunities to get lean on energy, waste and water. In a shrinking economy, you can’t save every job, but some people could be re-purposed to pursue sustainability goals and find ways to get leaner.
In Green Recovery, I focus on five areas of the business where companies find very quick paybacks:
- Facilities (heating, cooling, lighting)
- Information Technology (IT) systems
- Distribution and
- Fleet, waste, and telework/communications (the upside of more IT)
The examples in each are rampant:
- Hotel chain IHG changed 250,000 bulbs and saved $1.2MM in energy, a 4 month payback.
- Many of the big IT companies are tackling the heat buildup in data centers by simply venting hot air instead of expensive energy-intensive cooling schemes.
- Trucking and shipping companies like Conway or Maersk have discovered that slowing down a bit can save big on fuel.
In all these areas, companies can meet internal hurdle rates easily. These quick wins can help drive buy-in by showing that green pays, and they can help fund the larger, longer-term investments in innovation and green energy that we need.
SW: How can businesses systematize their green innovation?
AW: Innovation can come in many forms, the most radical of which is what I call ‘heretical innovation’. This is a way of thinking that challenges the fundamental nature of the business or process. Imagine asking whether you can operate without fossil fuels, or in the case of car companies, whether cars can be sold as a service rather than a product only.
In terms of creating a culture of green innovation, there are a number of approaches companies can take to make it a normal part of the business process. First, making it someone’s job and sole focus can help (and ideally this is someone in research and development, not sustainability). Companies also can set aside time for green innovation, much like 3M and Google do, when they ask employees to spend about 20 percent of their time on whatever they want. Additionally, setting big goals for innovation or revenue from green products can help. GE’s ecomagination targets are a good example.
Andrew Winston advises some of the world’s leading companies on how to profit from environmental thinking. He is a globally recognized expert and speaker on the business benefits of going green. Andrew is the author of “Green Recovery“ and co-author of the international best-selling “Green to Gold”. He will be the opening keynote presenter at this fall’s 19th annual EHS Management Forum in Tucson, Ariz.
Steve Walker is the Manager of Environmental Sustainability at Burt’s Bees Inc. and chair of the 19th annual EHS Management Forum. For more information about the Forum or to register, please visit http://ehsforum2011.naem.org/.
A delicious way to green your diet
Take a bite out of your carbon footprint with today’s “at home” tip from NAEM’s Green Tips Guide, an employee engagement handbook:
http://www.youtube.com/NAEMorgTV#p/u/28/Oc0QzAyshvk
How to green your ride…safely
Cut your carbon footprint with today’s transportation tip from NAEM’s Green Tips Guide, an employee engagement handbook:
http://www.youtube.com/NAEMorgTV#p/u/29/kYmh1hNnf0A
Progressing beyond the current ESG reporting system
Sandy Nessing
“Survey season” is here and environmental, health and safety (EHS) and sustainability leaders are already finding new rules for reporting on sustainability progress. This week, we caught up with Sandy Nessing, Managing Director of Sustainability & ESH Strategy & Design for American Electric Power Co. to learn more about some of the challenges and opportunities for public environmental, social and governance (ESG) reporting.
GT: What are some of the challenges of reporting sustainability metrics?
SN: One of the biggest challenges is not having standard industry metrics. For example, in the electric utility industry there is no universal metric (yet) for measuring environmental performance. Now we measure it based on internal metrics that include numbers of significant environmental enforcement actions, compliance with National Pollutant Discharge Elimination System permits, opacity and oil and chemical spills at our power plants. These are internal metrics that are tied to compensation but there is no way to compare our performance to our industry peers because no two companies have the same metrics. How can you get to best in class when there’s no standard you can compare yourself to?
The Global Reporting Initiative (GRI) covers some of this, but because not all companies use this framework or report on the Electric Utility Sector Supplement, there is still a void on comparability.
GT: What do you think could be improved about the current reporting system?
SN: Two things. First, more companies need to report their sustainability performance and put it into context with their financial performance. That is the future of reporting, but I’m afraid it will take a while to get there. There are still so many companies that are not reporting at all. However, once we achieve a higher level of transparency and integrated reporting, the investment and financial communities will have no choice but to start paying greater attention to the linkages when rating companies or weighing credit-worthiness or investment potential.
While there is an International Integrated Reporting Committee (IIRC) working on this, it is not expected to have a framework in place for some time. GRI is just beginning to develop G4, which should be a bridge to the IIRC’s work. For companies like mine, that have already started down this path it’s a challenge. This year, South Africa began mandating that any public company listed on the Johannesburg Stock Exchange must produce an integrated report – or explain why not. They put together a framework for doing it and it’s a great guide for any company intending to head down this path.
Second, we have to find a better way for research firms to analyze and rank sustainability performance other than sending companies surveys every year. There should be standard agreement that such firms first search out the information on the company’s website first and populate the surveys as best they can before requesting additional data. These surveys are valuable but they consume enormous resources within companies. There has to be a better approach.
What role could stakeholder dialogue have in improving the current system?
Having the right people at the table and a willingness to have a candid discussion about the challenges and benefits of the rankings would be very useful. We need a forum to listen and learn from each other and, hopefully, come away with a better understanding of expectations and ideas to help us manage the process more efficiently.
Sandy Nessing will be speaking about sustainability reporting as part of NAEM’s “Measuring Corporate Sustainability: Understanding the Metrics that Matter” event on May 4 in Fort Lauderdale, Fla.
