2010 Results for Midwest Companies
Fellow: Jen Snook, Fuqua School of Business and Nicholas School of the Environment, Duke University
Highlight: Identified 80% savings in electricity via installation of occupancy sensors
Details: Jen Snook spent her summer as a Climate Corp Fellow at AT&T, a leading U.S. communications company. In 2009, AT&T joined the U.S. Department of Energy's Save Energy Now LEADER initiative, pledging to reduce its energy intensity by 25% by 2019. Snook, a MBA/MEM student at Duke University, worked closely with the Director of Energy at AT&T to evaluate the lighting use in roughly half of AT&T's real estate portfolio.
Besides counting light bulbs, the challenge was to quantify just how often the lights were left on unnecessarily. In the local Chicago area, Snook conducted a pilot of light loggers that record lighting use and occupancy patterns of a given space.
The study indicated that some people were good about turning the lights off and other times the lights remain on when no one was working in a given space. On average, though, the lights were on roughly half of the time, while the spaces were occupied less than ten percent of time.
A little simple math and you quickly realize that installing occupancy sensors could represent an 80% savings in lighting system energy use! Imagine applying that math to more than 100 million square feet of space. The company could save hundreds of millions of kWh annually through the installation of occupancy sensors.
Fellow: Margaret Rudolph, Mason School of Business, College of William & Mary
Highlight: Identified savings of 144 metric tons of CO2 emissions per year
Details: Margaret Rudolph spent her summer at Cummins, a manufacturer of large diesel and natural gas engines as well as related components headquartered in Columbus, Indiana.
Rudolph, an MBA student at the Mason School of Business, College of William & Mary, looked at ways to expand the reach of the existing energy efficiency program in the 36,000 employee company. The existing program had already created annual savings of more than $10 million in utility costs and more than 200,000 tons of greenhouse gas emissions from a variety of sites.
Rudolph worked with a team of facility and environmental leaders to create an energy efficiency guidebook and to prepare case studies of successful implementations of energy efficiency solutions. The guidebook will serve as a tool to educate employees and managers across the company on the potentials of actively participating in the energy efficiency program. Case studies show the benefits of implementing energy efficiency, serve as a depository of ideas to evaluate at each site and provide a basis to leverage best practices.
Cummins projects continue to save 10 percent of energy costs at each site that implements an active energy efficiency program with a projected program expansion at a rate of 20 sites per year. Estimated savings generated by engaging more sites add up to a potential saving of 144 metric tons of CO2 emissions per year.
Fellow: Rachel Bourne, Weatherhead School of Management, Case Western Reserve University and M. Global Management Candidate at Thunderbird
Highlight: Developed Cummins Global Building Program and Business Case
Details: Rachel Bourne spent her summer as a Climate Corps Fellow at Cummins, a global power leader, in their Central Indiana headquarters. Cummins is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies.
As a dual degree MBA candidate at Weatherhead School of Management, Case Western Reserve University and M. Global Management Candidate at Thunderbird, Bourne's primary responsibility was to work with numerous cross-functional teams and external consultants to develop the Cummins Global Building Program and Business Case.
The Global Building Program consists of an energy efficient and high performing building policy with architecture and engineering discipline-specific standards that were high-priority for Cummins' development plans. The Program was developed concurrently with the Business Case to determine if those standards pay for themselves in direct, quantifiable ways.
It was clear to Cummins that the Building Program would provide immediate, positive impacts in terms of their corporate values of creating good working environments and sustainability, but the company wanted the project teams responsible for developing new Cummins facilities to see the financial yield that comes with embracing the standards.
The Global Building Program is designed to become an integral part of Cummins' new project process and will leave a legacy of increased energy efficiency and reduced environmental impact.
Fellow: Adam Ostaszewski, Olin School of Business, Babson College
Highlight: Developed tools to help Diversey decide how to best direct its energy and sustainability investments
Details: Adam Ostaszewski spent his summer working as a Climate Corps fellow at Diversey, Inc. which is headquartered in Sturtevant, Wisconsin. Diversey is one of the world's largest manufacturers of commercial cleaning, sanitation and hygiene solutions with distribution channels in over 165 different countries.
In 2008, Diversey made a firm commitment to reduce its total carbon emissions on an absolute basis by 25 percent by 2013, and has since invested in a portfolio of energy-saving projects that will ultimately achieve this goal while saving the company millions of dollars annually.
Ostaszewski, a MBA candidate at Babson College, leveraged his finance background to develop several data-driven tools and systems which will help Diversey executives make well-informed decisions around how to best direct their future energy and sustainability investments across the global enterprise, and ensure that the expected savings from these projects are being captured and retained.
Tools that Ostaszewski helped to develop include a tool for identifying the biggest opportunities for energy savings and carbon reductions given regional differences in energy prices and carbon emissions rates, a system for prioritizing potential energy-saving projects using an integrated set of objectives and a portfolio management approach, a framework for evaluating capital purchases based on total cost of ownership (including the cost of energy to operate the asset) and a tool for estimating the total direct and indirect costs of inter-company travel while highlighting the available alternatives.
By implementing systems that are data-driven and promote better transparency and accountability, Diversey hopes to institutionalize some of the strategies that have enabled it to successfully incorporate sustainability into its operations – and in the process, create a model for other companies to replicate.
Fellow: Koji Kitazume, Fuqua School of Business and Nicholas School of the Environment, Duke University
Highlight: Developed tool to quantify energy efficiency efforts; identified savings of 1,799 metric tons of CO2 emissions per year
Details: Koji Kitazume spent his summer as an EDF Climate Corps fellow at McDonald's Corporation in Chicago. The leading global foodservice retailer serves on average 60 million customers a day through more than 32,000 local restaurants in nearly 120 countries.
Kitazume, an MBA/Master of Environmental Management joint degree student at Duke University's Fuqua School of Business and Nicholas School of the Environment, worked with the McDonald's worldwide energy director to develop a tool that quantifies financial and environmental impact of the company's energy efficiency efforts and investments for prioritization.
In addition, while participating in a restaurant training program, Kitazume identified potential energy saving opportunities in McDonald's restaurant buildings, while running customer orders, toasting muffins and cooking burgers.
Using the very tool that he developed, Kitazume calculated that the company could cut approximately 2,993,000 kWh of electricity usage and avoid 1,799 metric tons of CO2 emissions annually if it were to install occupancy sensors for lighting control in non-dining and non-kitchen areas in 775 company-owned restaurants in the U.S.
Approximately 20 percent of McDonald's restaurants worldwide are company-owned and 80 percent franchised.
Fellow: Julia Li, Foster School of Business, University of Washington
Highlight: Identified savings of 17,500 metric tons of CO2 emissions per year
Details: Julia Li spent her summer at Procter & Gamble, a prominent Fortune 500 multinational corporation that strives to provide consumer products of superior quality and value. Li is a LEED accredited professional with a Master's degree in Architecture. She is currently an MBA student at the Foster School of Business, University of Washington.
The focus of Li's work at P&G was on the Pringles plant in Jackson, Tennessee. The plant, which manufactures Pringles for all of North America, is one of the plants with the highest levels of energy consumption at P&G.
Working with the plant's construction and facilities technical engineer manager, Li determined areas of low-hanging fruit as well as future opportunities. She identified potential savings in HVAC by coating the roof with a high reflectivity product and electricity reductions through lighting retrofits and vending misers. Amongst many big picture savings ideas, she explored areas such as biomass boilers and variable frequency drives.
In total, Li found opportunities at the Jackson plant that could cut approximately 18 million kWh of electricity and avoid 17,500 tons of CO2 emissions. P&G looks to explore these potentials in earnest.
In addition, she discovered and implemented a state administered incentive program new to the Jackson plant. The plant will receive $100 per kW reduced during peak demand periods for future sustainability projects.
Fellow: Jamie Mikkelsen, Erb Institute, University of Michigan
Highlight: Identified more than 30 projects that will lead to comprehensive energy efficiency program
Details: Jamie Mikkelsen, an MBA / MS student at the Erb Institute, University of Michigan, spent her summer at Target, the Minneapolis-based, upscale discounter. In addition to retail locations, Target owns and operates over 50 million square feet of distribution and warehouse space.
As a Climate Corps fellow, Mikkelsen provided strategic insights and recommendations for the development of an ongoing energy efficiency program in Target's network of 38 distribution centers.
Mikkelsen tackled the strategic project by benchmarking facility energy consumption, interviewing key internal and external partners, conducting site visits, and compiling a list of potential energy efficiency opportunities. In total, over 30 projects were identified.
Mikkelsen investigated select examples to highlight to senior leadership, including opportunities that addressed both the major and minor building systems and the drivers of variation in consumption across the portfolio of facilities. These sample projects provided strategic insights to support the development of a comprehensive energy efficiency program for the distribution centers.
“Our fellow had the ability to introduce us to some of the tools available to us that we weren’t aware of – tools that help us think about how we go about our work, how we think about energy and reducing energy usage for our restaurants.”
-- Jerry Sus, Senior Director of Development & Strategic Technology, McDonald's