2010 Results for Northeast Companies
Fellow: Elizabeth Turnbull, Yale School of Management and Yale School of Forestry & Environmental Studies, Yale University
Highlight: Identified savings of 2,360 metric tons of CO2 emissions per year
Details: Elizabeth Turnbull spent her summer working for the adidas Group, a leading global sports, footwear and apparel company based in Herzogenaurach, Germany. Her fellowship encompassed the assessment of two buildings: The Reebok World Headquarters in Canton, Mass., and the adidas Group distribution facility in Spartanburg, S.C.
Elizabeth is a joint MBA/Masters of Environmental Management student at Yale University. While some of her projects involved capital expenditures, Elizabeth identified many energy savings that could be captured through managing existing systems with no up-front cost.
Overall, her project portfolio could save adidas $336,300 annually and represents over $1.5M in net-present value. Combined, the projects pay back in less than 1 year. This represents avoiding 4.8M kWh and 2,360 MT CO2 annually.
Fellow: Shruthi Rao, Thunderbird School of Global Management
Highlight: Identified savings of 1,200 metric tons of CO2 emissions over three years
Details: Shruthi Rao, an MBA from Thunderbird School of Global Management, spent her summer at Akamai Technologies, Inc. Akamai provides market-leading, cloud-based services for optimizing Web and mobile content and applications, online HD video, and secure e-commerce.
Akamai's global platform consists of a network of over 70,000 servers in more than one thousand co-location data centers is a major operational cost and source of carbon emissions. Fixed-power contracts at these co-location facilities currently provide Akamai no financial incentive to reduce off-peak power consumption of its servers.
In order to overcome this barrier to greater energy efficiency, Rao pursued a three-pronged approach: (a) analyzing the trade-offs between co-location vendor fixed and metered power contracts, (b) analyzing the energy efficiency potential of implementing server power management, and (c) assessing potential cost savings to build a compelling business case for implementing server power management.
Rao strategized on how Akamai should proceed by comparing existing contracts with alternatives offered by the vendors, and estimating cost savings if it switched to metered power. By applying identified off-peak server efficiencies and using a metered model on a sample datacenter, she calculated that Akamai could reduce its electricity consumption by approximately 20%, translating to similar cost savings and a reduction in carbon emissions by approximately 1,200 metric tons over a three year time span.
In addition, she recommended adding sustainability requirements to vendor RFPs, such as requiring them to have certain PUE levels based on seasonal and geographical variations, which could also result in significant cost savings and reductions in carbon emissions.
If this model is applied to its most cost-intensive co-location facilities, Akamai could save millions of dollars and reduce its carbon footprint substantially over the same three year time span.
New Providence, N.J.
Fellow: Nirupam Khanna, Kelley School of Business, Indiana University
Highlight: Identified savings of 2,060 metric tons of CO2 emissions per year
Details: Nirupam Khanna spent his summer at Alcatel-Lucent, a worldwide leader in the communications industry delivering voice, data and video communication services to end users. An MBA student at the Kelley School of Business, Indiana University, Khanna was tasked with determining the best protocol and strategies to manage the energy consumption for the company's North American headquarters.
Working with the facilities team and the sustainability department, he identified several energy efficiency opportunities encompassing areas like lighting retrofits, variable frequency drives and solar filming of windows along with viable projects for implementation across its different facilities worldwide.
In total, Khanna identified opportunities that could reduce annual energy costs by approximately $440,000, cut approximately 4,407,000 kWh of electricity usage and avoid around 2,060 metric tons of green house gas emissions.
New York, N.Y.
Fellow: Brian Hartmann, Erb Institute, University of Michigan
Highlight: Identified savings of 2,300 metric tons of CO2 emissions per year
Details: Brian Hartmann, a joint MBA/MS student at the Erb Institute, University of Michigan, spent the summer as a Climate Corps fellow at Bloomberg LP, a worldwide media, news, data and analytics company headquartered in New York City.
Before Hartmann started his Climate Corps fellowship, Bloomberg had already identified and implemented numerous energy efficiency projects around the world. However, Hartmann discovered various opportunities for even greater efficiency. He analyzed illumination in different office areas and compared his findings with OSHA standards. This allowed him to determine areas where Bloomberg could modify its current lighting situation, based on recommended light levels, using dimmers and sensors.
Hartmann also worked with an international team to identify energy efficiency opportunities in Hong Kong. This recommendation focused on switching to lower energy use light bulbs in some office spaces. In the New York Headquarters, he recommended sealing an inefficient duct system, raising chilled water temperatures and implementing a demand controlled ventilation system.
In total, Brian identified and analyzed projects with the potential to save Bloomberg over $1.2 million per year while lowering total energy consumption over 6.2 million kWh per year and reducing CO2 emissions by over 2,300 metric tons per year.
Fellow: Rama Murugan, Smeal College of Business, Pennsylvania State University
Highlight: Identified savings of 1,710.5 metric tons of CO2 emissions per year
Details: Rama Murugan enjoyed her summer looking for energy efficiency at CA Technologies (formerly Computer Associates), headquartered in Islandia, NY. CA Technologies is a Fortune 500 IT management software and solutions company with expertise across all IT environments.
Murugan is a business student and graduate assistant at Penn State University – Smeal College of Business. She helped identify several energy efficiency opportunities that would make a positive impact on the bottom line of the company. Overall, Murugan helped identify projects that would have a net reduction of 1710.5 metric tons of carbon emissions.
Murugan worked on many sustainability initiatives in the summer and the major energy efficiency projects includes a virtualization and relocation project and many lighting projects. The virtualization and relocation project is something CA Technologies was already thinking about when she collaborated with different business units to build a stronger business. This project has a projected annual savings of $1.24 million and a payback period of less than one year.
The various lighting projects are all low cost/no cost projects which would save $150,000 annually for the company.
Fellow: Stuart DeCew, Yale School of Management and Yale School of Forestry & Environmental Studies, Yale University
Highlight: Identified savings of more than 2,500 metric tons of CO2 emissions per year
Details: Stuart DeCew spent this summer as an EDF Climate Corps fellow with RBS Citizens Financial Group and was based in the RBS Americas headquarter building. Citizens Financial Group, Inc. is a $140 billion commercial bank holding company with more than 1,500 branches in 12 states.
A joint MBA/MEM student at Yale University, DeCew identified a number of interesting opportunities to reduce operating costs and energy consumption throughout the company's portfolio of properties during the course of his fellowship. Throughout the summer, DeCew focused his attention on identifying and analyzing a variety of energy efficiency projects at seven facilities that account for almost 20% of the company's total energy use in the US.
With the support and guidance of RBS Citizens employees at these seven facilities, DeCew developed a comprehensive business case for significant financial investments in a number of energy efficiency initiatives. These initiatives have the potential to save the bank over $620,000 in annual energy and operating costs, reduce energy consumption by over 4,670,000 kWh and eliminate an estimated 2,338 metric tons of CO2 – the equivalent of removing almost 390 SUVs from the road.
In addition to these larger projects, DeCew worked with facilities managers, building engineers, maintenance technicians and with the environment and sustainability team at RBS Citizens to investigate a number of additional initiatives. These efforts could save an estimated $75,000 annually in energy costs, almost 550,000 kWh of energy use and eliminate 220 metric tons of CO2.
Finally, DeCew targeted a number of other properties for future energy efficiency audits, identified incentive programs to cover the cost of those audits and collaborated with RBS Citizens employees to supervise the audits on-site. These audits could lead to the discovery of energy efficiency investments in the future for the next EDF Climate Corps fellow to evaluate.
Fellow: Eva Zlotnicka, Yale School of Management and Yale School of Forestry & Environmental Studies, Yale University
Highlight: Developed strategies and tools to centralize and systematize energy efficiency initiatives
Details: Eva Zlotnicka spent her Climate Corps fellowship with Genzyme, a leading global biotechnology company dedicated to making a major positive impact on the lives of people with serious diseases. Zlotnicka, a joint MBA/MESc candidate at Yale University, focused her time on strategies and tools that would centralize and systematize energy efficiency initiatives across Genzyme’s global portfolio.
Based upon interviews with a variety of stakeholders, Zlotnicka codified the requirements for a global decision tool to be used for identification, selection and tracking of energy efficiency projects. She also discovered the hidden value of such a standardized platform of information: the transfer of best practices among sites as well as enhanced communication between the site and corporate levels of management.
Together, this could empower individual managers to participate in reaching the company’s greenhouse gas emissions target of a 25% reduction, normalized to revenue, from 2007 to 2012.
Alongside her recommended software solution, Zlotnicka designed an implementation plan for the supporting people, processes and policies needed to ensure adoption and integration of the tool and the execution of its results.
Zlotnicka also explored specific opportunities to reduce energy use at a selection of Genzyme’s buildings in the Boston area. She recommended projects bringing thousands of dollars in potential annual electricity savings through removing excess equipment and installing improved appliance and building controls, which would require minimal upfront costs and limited business interruption.
Fellow: Marty Griffith, McDonough School of Business, Georgetown University
Highlight: Identified savings of 127 metric tons of CO2 emissions per year
Details: Marty Griffith identified projects totaling $22,566 in yearly energy savings during his fellowship at New Jersey Resources. An MBA candidate at McDonough School of Business, Georgetown University, his projects included recommendations for lighting improvements, installation of occupancy sensors on vending machines, “right-sizing” of fleet vehicles, and installation of window film on skylights.
If all projects are implemented, they will result in a cumulative yearly greenhouse gas (GHG) reduction of 127 metric tons.
In addition to the traditional Climate Corps scope of work, Griffith also made significant improvements to the company's GHG accounting system to better track emissions and allow the company to normalize them in order to account for future growth. These changes will allow NJR to accomplish its goal of a 20 percent reduction in emissions by 2020 on a per unit basis rather than on an absolute basis.
Griffith also researched pending EPA legislation regarding mandatory GHG reporting. This led to several discoveries that may change the measurement methods for GHG emissions along the company's system of natural gas distribution pipes. Griffith was able to recommend several possible ways to reduce these emissions including reducing pipeline heater use.
Although no concrete projects arose from this research, Griffith feels that the conversations that started as a result of his research will have an impact on company policy going forward.
New York, N.Y.
Fellow: Jonathan Stone, Stern School of Business, New York University
Highlight: Identified savings of 942 metric tons of CO2 emissions per year
Details: Jonathan Stone spent the summer of 2010 with News Corporation, a leading media and entertainment company with business units in five continents around the globe.
Stone, an MBA student in the Class of 2011 at the Stern School of Business, New York University, spent a portion of his time working with News Corporation's Global Energy Initiative on corporate sustainability strategy such as the creation of employee engagement programs.
The majority of his summer was spent at Dow Jones' Bronx Printing Plant where he worked to identify and implement energy efficiency projects that would decrease the company's carbon footprint and increase its bottom line. His main project in this regard was the spearheading of a $230,000 lighting retrofit that could improve the plant's lighting quality and worker productivity while simultaneously decreasing their energy costs and associated carbon footprint.
In total, Stone identified projects that could reduce annual energy costs by approximately $179,524, saving 899,903 kilowatt hours of energy per year and reducing 942 metric tons of greenhouse gas emissions.
Fellow: Thomas Fisher, Presidio School of Management
Highlight: Identified savings of 2,038 metric tons of CO2 emissions per year
Details: Thomas Fisher spent his summer immersed in data centers as a Climate Corps fellow at Staples in Framingham, Mass. Currently pursuing his MBA in sustainable management at Presidio Graduate School, Pepperdine University in San Francisco, the Staples project was a fantastic opportunity for Fisher to help identify cost and energy efficiency solutions that would affect the triple bottom line.
Overall, Fisher conducted a gap analysis under Staples’ VP of Environmental Affairs determining short and long-term energy efficiency and strategic opportunities for two data centers in the Boston-metro area. Short-term recommendations included optimization strategies and proposals for capital improvements to facilities to create significant savings in kWh, operating budget and carbon footprint.
Qualitative recommendations for improvements that would further push along energy efficiency initiatives with increased funding, reduce energy use, increase interdepartmental collaboration and create frameworks to empower employees to make informed decisions within the existing facilities were also given.
Long-term strategies included two scenario planning recommendations around shuttering existing operations in one of the facilities and pursuing solutions that currently rank as best-in-class in the industry for energy efficiency.
Fisher concluded that, should all of the proposed recommendations be implemented, Staples could cut annual energy costs by approximately $395,870, reduce 2,839,467 kWh of electricity and eliminate 2,038 metric tons of corresponding CO2 emissions.
New York, N.Y.
Fellow: Richard Tesler, Steinhardt School, New York University
Highlight: Identified savings of 340 metric tons of CO2 emissions
Details: Rich Tesler spent 12 weeks during the summer of 2010 at SunGard. SunGard is a Fortune 500 software and technology services company that provides software and processing solutions for financial services, higher education and the public sector.
Tesler, an MBA and CFA, is currently working towards a second Masters degree at New York University's Steinhardt School in Environmental Conservation Education. The 12-week work plan encompassed a broad range of projects in support of SunGard's sustainability initiatives.
In addition to a focus on identifying specific energy efficiency projects, Tesler also worked on strategic projects including criteria for prioritizing offices for energy efficiency, supporting the company’s continued drive to track energy across a larger portion of its footprint, and creating tools and primers for finance and facility managers on the subject of energy efficiency.
Tesler's energy efficiency projects were focused on two facilities: an office facility in New York City and a data center in Wayne, Penn. At the New York office facility, Tesler identified three no-cost projects that could save 7% of the annual energy bill. At the Pennsylvania data center, projects identified could save 33% of the energy bill and pay back the initial investment in less than two years.
The aggregate results of these eight projects have a $750,000 net present value, saving 690,000 kWh and avoiding 340 metric tons of CO2.
Basking Ridge, N.J.
Fellow: Ryan Mallett, Smeal College of Business, Pennsylvania State University
Highlight: Identified savings of 8,700 metric tons of CO2 emissions per year
Details: Ryan Mallett spent his summer dialing up energy savings at Verizon -- the global communications leader that provides Internet, TV, and wireless services and is responsible for more than 100 million customer connections daily. At the company's Basking Ridge, N.J. facility, Mallett analyzed a range of energy efficiency improvements in some of Verizon's largest data centers, thermal ice storage systems, lighting retrofits, and PC power management.
An MBA student at Penn State, Mallett identified several promising opportunities that could save the company $9.16 million over the project's lifetimes and 16.7 million kWh in annual energy savings, while avoiding over 8,700 metric tons of CO2 emissions.
As one of the hottest summers on record in the Northeast pushed HVAC systems and the grid to the limit, Mallett made significant contributions to projects the company had been considering including the installation of a thermal ice storage system at Verizon's headquarters located in lower Manhattan. The thermal storage system shifts production of chilled water into the nighttime hours when energy is less expensive.
During the day, this stored cooling capacity can help meet the variable cooling loads of the building and delivering estimated annual savings of $420,000 as the result of reduced peak demand charges and improved efficiency of existing pumps and HVAC equipment.
In Verizon's data centers, Mallett analyzed the installation of variable frequency drive fans that dynamically respond to changes in air temperature and allow facility managers to shut down excess cooling equipment without sacrificing reliability, a hallmark of the network company.
Along with other airflow measures, the project can deliver annual savings of $475,000 and is eligible for rebates that could significantly reduce the upfront capital cost. Finally, Mallett evaluated lighting retrofits at Verizon's corporate headquarters and a network data center that have the potential to save $126,000 annually.
New York, N.Y.
Fellow: Tracy Liu, Graziadio School of Business and Management, Pepperdine University
Highlight: Identified savings of 293 metric tons of CO2 emissions per year
Details: Tracy Liu spent her summer at VivaKi, a division of Publicis Groupe -- the world's third largest communications group, world's second largest media counsel and buying group, and global leader in digital and healthcare communications.
An MBA student at the Graziadio School of Business, Pepperdine University, Liu identified and made the business case for several energy efficiency projects at one office location in New York City. The goal was not only to suggest project implementation at that location, but to create an energy efficiency standard for the Groupe going forward.
The projects identified included a comprehensive lighting retrofit project, PC and monitor power management, purchase of energy star equipment, and installation of cooler energy management systems. Liu also looked into additional rebate programs, identified opportunities for employee engagement, and offered suggestions for overcoming organizational barriers to energy efficiency.
Overall, the projects could help VivaKi (Publicis Groupe) reduce annual energy costs by more than $132,000, cut approximately 793,000 kWh in annual energy use, and avoid 293 metric tons of CO2 emissions in that one location alone.
Fellow: Dave Rengel, Ross School of Business, University of Michigan
Highlight: Identified savings of 249 metric tons of CO2 emissions per year
Details: David Rengel spent his summer at Xerox Corporation, a global enterprise in the business process and document management space with over 130,000 employees worldwide in 160 countries.
An MBA candidate from the University of Michigan Stephen M. Ross School of Business, David joined the Site and Facilities Services Energy Team at Xerox's campus as a Climate Corps fellow tasked with evaluating retrocommissioning as a means to reduce energy consumption of the campus.
Retrocommissioning, also known as existing buildings commissioning, is an engineering process to analyze building systems and equipment and return them to design or a more efficient condition based on current building use.
As part of the process to evaluate the costs and benefits of retrocommissioning for Xerox, David implemented a pilot project for a small complex of four buildings with the objective of reducing energy use of the buildings. The pilot project will serve as a demonstration of how to proceed with expanding the scope to include the entire campus.
Preliminary results from the retrocommissioning study found 36 building deficiencies that, when corrected, would reduce energy use. Total identified energy savings amounts to electricity reductions of over 500,000 kWh/year, over 15,000 therms of natural gas per year, CO2 emissions reductions of 249 metric tons, and over $66,000/year savings.
The pilot successfully demonstrated the cost effectiveness of retrocommissioning, and significantly greater energy and cost savings are possible with full campus retrocommissioning.
“Our EDF Climate Corps fellow helped us take our sustainability program to the next level. This program will result in considerable savings and have a positive environmental impact.”
-Paul Gusmini, Director of Sustainability & Capital Planning – Federal Reserve Bank of Boston