2010 Results for South/Southeast Companies
Fellow: Anne Marie Pippin, Terry College of Business, University of Georgia
Highlight: Identified savings of 498,000 pounds of CO2 emissions per year; created toolkit for identifying green remediation opportunities
Details: Anne Marie Pippin spent her summer at Bank of America, the nation's largest financial institution. Pippin, a joint law/business student at the University of Georgia, worked within Bank of America's Corporate Workplace division on the Environmental Risk and Sustainability team. This team is responsible for ensuring that compliance and sustainability procedures are integrated into the bank's corporate real estate practices at every level.
Pippin was asked to evaluate and recommend green, sustainable options for sites needing remediation within Bank of America's real estate portfolio. She evaluated various strategies involving use of alternative fuels for onsite work and transport, engine idle reductions, soil recycling, and energy generation in an effort to make the remediation process more sustainable and efficient.
Pippin spent most of her summer analyzing one property, and identified opportunities at the site that could reduce project energy costs by approximately $15,500, and avoid 498,000 pounds of CO2 emissions. Pippin also created a toolkit for use in identifying green remediation opportunities at other sites impacted by contamination in the portfolio.
Fellow: Mandy Martin, Moore School of Business, University of South Carolina
Highlight: Proposed projects that could avoid thousands of metric tons of CO2 emissions per year
Details: Mandy Martin spent her summer inspecting the Miami headquarters of Carnival Cruise Lines, a global cruise company and one of the largest vacation companies in the world. An IMBA student at the University of South Carolina, Martin investigated energy efficiency projects related to HVAC, lighting, information systems, and operations.
A large part of her project portfolio focused on lighting: installing additional occupancy sensors, decreasing wattage in overlit areas, and altering lighting schedules. Martin also facilitated proof of technology tests, such as the installation of window film in select offices, which could accurately compare vendors and ensure tailored results.
Another suggestion was to fine-tune the power management settings to Carnival's 2,600 head office computers.
Overall, Martin's proposals could avoid thousands of metric tons of CO2 and decrease electricity usage substantially per year. In addition, these projects could save Carnival considerable annual operational costs over project lifetimes.
Carnival intends to investigate these opportunities to further understand their technical and economic implications for implementation. To enjoy exponential savings, some projects may be considered for Carnival's other shore side facilities and even for its fleet of ships.
Fellow: Matthew Coleman, Darden School of Business Administration, University of Virginia
Highlight: Identified savings of 810 metric tons of CO2 emissions per year
Details: D. Matthew Coleman, an MBA student at the University of Virginia's Darden School of Business, spent the summer of 2010 working for CSX Transportation. CSX operates a 21,000-mile railroad network that serves every major population center east of the Mississippi River. CSX supports the network with 4,000+ office and rail yard facilities.
Coleman's task was to analyze electricity use across all facilities, as well as the energy efficiency of five specific facilities located in the southeastern U.S. Coleman found that electricity costs constitute the majority of CSX's annual utility expenditure.
With the goal of reducing this expenditure, Coleman also identified and valued five capital investment projects that could simultaneously save money and reduce electricity use and emissions. The projects ranged from updating lighting and HVAC systems to removing late fees from energy bills.
Coleman met routinely with facilities managers to understand the lighting and cooling needs of each site and customize his proposals to increase energy efficiency. In total, Coleman found that the projects could annually save $200,000, 1.3 million kWh of electricity (enough to power 115 homes), and 810 metric tons of CO2 (equivalent of removing 135 SUVs from the road).
Fellow: Judd Eder, Carlson School of Management, University of Minnesota
Highlight: Identified savings of 5,300 metric tons of CO2 emissions per year
Details: Judd Eder spent his summer at Eaton Corporation, a diversified power management company that operates in the vehicle, aerospace, hydraulics, and electrical industries. As a key player in many energy-related industries, Eaton is committed to championing energy efficiency both internally and in the product solutions it provides to customers.
Eder is a full time MBA student at the University of Minnesota's Carlson School of Management and holds a bachelor's degree in chemical engineering from Iowa State University.
Equipped with his engineering and management knowledge, Eder aligned with Eaton's internal energy and greenhouse gas reduction strategy to make the business case for numerous projects, process, and benchmarking tools. Eder worked with Eaton's existing electrical services and solutions team and preferred supplier base to generate project scopes and schedules for HVAC, lighting, energy generation, and other unique energy solutions in facilities across the globe.
One example is an air circulation improvement in a North Carolina vehicle sector plant that projects annual HVAC electricity reduction of 2.5 million kWh. Another example is a strategic rollout of lighting optimization resources over fifteen electrical sector facilities that could potentially reduce electricity usage by over five million kWh.
The project packages compiled by Eder identified a total of $830,000 in utility savings, 9.3 million kWh of electricity, and 5,300 metric tons of CO2 emissions on a yearly basis.
In terms of overall value, the net present value of identified projects was $2.6 million.
Fellows: Ryan Campbell, Tennessee State University; Megan Chavez, Owen Graduate School of Management, Vanderbilt University
Highlight: Overcame existing communications barriers to develop standards and processes that could be implemented across all data center facilities
Details: During summer 2010, Memphis-based FedEx hosted two EDF Climate Corps fellows – Megan Chavez, an MBA candidate at Owen Graduate School of Management, Vanderbilt University, and Ryan Campbell of Tennessee State University.
The fellows collaborated with FedEx team members to identify energy efficiency opportunities at the company's data centers. These fellows utilized their business backgrounds to conduct in-depth investigations of existing practices, identify potential energy opportunities, conduct financial analyses, and communicate proposed solutions among key stakeholders to achieve buy-in to an energy management strategy.
Initially, the team identified communications barriers and lack of decision documentation as key challenges for the two primary stakeholders in the data center space. Although the stakeholders were responsible for and operated in the same building, they often had different approaches to managing the space. And with limited formal communication about decisions, these decisions often created energy inefficiencies.
The Climate Corps fellows interviewed team members from different groups to identify the energy goals shared among all stakeholders. Based on these goals, the fellows proposed a shared vision and strategy for implementing energy management across all FedEx data centers.
After developing standards and processes that could be implemented across all data center facilities, the fellows recommended that a local implementation team be organized to design and implement a guiding policy for each individual data center.
In addition to recommending a set of best practices, the fellows also analyzed two potential retrofits for improving temperature control and air flow.
The analyses of these two solutions not only provided potential operational improvements, they also could generate long-term energy savings for FedEx.
Fellow: Rob Powell, Owen Graduate School of Management, Vanderbilt University
Highlight: Identified savings of more than 20,000 metric tons of CO2 emissions
Details: Rob Powell spent his summer at Gaylord Entertainment, the owner and operator of four multi-million square foot resort and convention centers. These properties are among the largest non-gaming hospitality complexes in North America.
An MBA student at Vanderbilt University's Owen Graduate School of Management, Powell was charged with finding financially sound projects for reducing energy consumption. Gaylord's energy efficiency efforts were suddenly and rapidly accelerated at their flagship location, Opryland, after the devastated flooding that hit Middle Tennessee in early May 2010.
The subsequent rebuild projects have allowed Gaylord to dramatically improve efficiency by investing in energy infrastructure. An overall target for reducing energy consumption was set between 10 to 20%. The associated savings for the company will net millions of dollars over the lifetime of the equipment.
Projects of note include 1200+ ton chillers, lighting upgrades in all flood affected areas, high efficiency, industrial laundry equipment, and remediation of their combined heat and power (CHP) natural gas turbine.
Additional energy efficiency opportunities were identified at the Gaylord Texan Resort. Lighting retrofits were recommended, representing the largest savings and quickest payback periods. The combined total of proposed initiatives will curtail over 20,000 metric tons of CO2 emissions.
Fellow: Nick Fassler, Erb Institute, University of Michigan
Highlight: Identified savings of more than 52,000 metric tons of CO2 emissions per year
Details: Nick Fassler, a joint MBA/MS student at the University of Michigan's Erb Institute, spent his summer evaluating hospital energy efficiency projects for HCA Inc, one of the nation's largest healthcare providers.
While HCA has already initiated energy efficiency projects as part of the KKR and EDF Green Portfolio partnership program, Fassler was able to identify a major energy efficient lighting retrofit project that offered significant financial and energy savings.
After analyzing the results of lighting audits conducted at a handful of HCA hospitals, Fassler developed best practices utilizing energy efficient lighting technology and occupancy sensors that could reduce the energy used from lighting by 30%.
Fassler's financial analysis showed that if the lighting retrofits are rolled out to most of HCA's more than 160 hospitals, the company could cut 82 million kilowatt hours of electricity per year, saving $7.8 million in electricity costs and 52,000 metric tons of CO2 emissions annually.
Over the lifetime of the project, this could save the company $14.7 million in net operating costs.
Fellows: Akshay Honnatti, Olin Business School, Washington University; Curt Prudden, Marshall School of Business, University of Southern California
Highlight: Identified savings of 4,632 metric tons of CO2 emissions per year
Details: Akshay Honnatti and Curt Prudden spent their summer as Climate Corps fellows analyzing energy efficiency projects and shaping corporate energy strategy for Ingersoll Rand Corporation (IR), headquartered in Davidson, North Carolina.
Ingersoll Rand is an innovative global diversified industrial company providing products, services and solutions to enhance the quality and comfort in homes and buildings, transport and protect food and perishables, secure homes and commercial properties and enhance industrial productivity and efficiency.
Honnatti, an MBA student at Olin Business School, Washington University in Saint Louis, and Prudden, an MBA student at the Marshall School of Business, University of Southern California, traveled to five manufacturing sites to conduct energy audits and identify opportunities to improve energy efficiency. The company operates more than 90 manufacturing sites around the globe and has a goal to reduce energy use by 25% over the next ten years as part of the Department of Energy's Save Energy Now corporate partnership program.
Ingersoll Rand is shaping its corporate energy strategy in accordance with this goal through the newly formed Center for Energy Efficiency and Sustainability (CEES) along with the Corporate EHS team.
During the energy audits, Honnatti and Prudden visited multiple product manufacturing lines at five different sites. They identified a variety of energy efficiency projects, from efficient lighting upgrades and building heating/cooling improvements, to cultural modifications and manufacturing process changes that will contribute to the company reducing its energy consumption.
In addition, the two helped develop the company's evolving energy reduction strategy by defining tools and standards that will be used by the manufacturing sites to reduce energy use. These improvements, in conjunction with the company's cultural shift toward sustainability, could lead to energy cost savings of $1.2 million and reduced greenhouse gas emissions of 4,632 tons of CO2 per year.
Chevy Chase, Md.
Fellows: Graham Brown, Erb Institute, University of Michigan; Lyle Morton, Stern School of Business, New York University
Highlight: identified more than $275,000 in potential energy savings
Details: The JBG Companies hosted two Climate Corps fellows, Graham Brown of the Erb Institute, University of Michigan and Lyle Morton of the Stern School of Business, New York University, to identify energy savings and strategic energy management opportunities in its new development and commercial asset management divisions.
The fellows worked alongside senior development team leaders and asset managers to identify, analyze and prioritize investments in energy saving technologies in new developments and in existing assets under management.
Working with senior engineers, development teams, vendors and energy services companies, the fellows identified over $275,000 in potential energy savings through the application of new lighting control technologies, mechanical controls, solar energy production and efficient lighting design, among others.
The fellows also provided recommendations for energy monitoring and management practices across the commercial asset management portfolio.
In addition to the specific recommendations for energy saving investments, the fellows worked with JBG senior management to define a strategic approach to managing and development for enhanced energy performance.
Fellow: Yih-Wei Chien, Erb Institute, University of Michigan
Highlight: Identified savings of nearly 6,000 metric tons of CO2 emissions by the end of 2015
Details: In May 2010, J. C. Penney Company, Inc. (JCP), one of America's leading retailers, issued a press release detailing its commitment to reducing energy consumption 20% by 2015. To help meet this goal, JCP worked with EDF's Climate Corps program to bring in Yih-Wei Chien, a MBA/MS candidate at the University of Michigan's Erb Institute.
Since cost-effective facilities upgrades in an already 90 Energy Star rated, LEED Gold certified building are few and far between, Chien was tasked with developing a strategic plan to engage JCP's Home Office associates in strengthening their energy awareness and conservation.
Chien took JCP's existing retail store energy awareness program (EMPowered) and adapted it to fit the culture of JCP's Home Office building. He began by researching the successes of and barriers to EMPowered through store visits in California and Texas.
Chien also familiarized himself with Home Office culture through two means: (1) Walk the Home Office building before, during, and after normal work hours to understand associate energy usage, and (2) Conduct an extensive market segmentation project through a series of informational interviews throughout the Home Office.
The end result is not only a campaign designed to bolster JCP's culture of energy conservation, but also a program that could produce considerable financial and environmental benefits.
Chien estimates a potential cost savings in excess of $880,000 and energy savings of over 8.3 million kWh of electricity by the end of 2015. These figures equate to nearly 6,000 metric tons of CO2 abated over the same time frame.
Fellow: Thomas Malatesta, Freeman School of Business, Tulane University
Highlight: Identified savings of 2,300 metric tons of CO2 emissions per year
Details: Thomas W. Malatesta spent his summer as a Climate Corp fellow with The Mosaic Company's Florida and Louisiana based phosphate operations. Headquartered in Plymouth, Minnesota, Mosaic is a leader in the global production and marketing of concentrated phosphate and potash, two of the primary crop nutrients.
Malatesta, an MBA student focusing on finance and energy at Tulane University's A.B. Freeman School of Business, worked with Mosaic engineers and Operations staff to identify energy savings at their Bartow and New Wales concentrates facilities.
Several energy efficiency opportunities were identified including the installation of high efficiency warehouse/office lighting, outdoor plant lighting controls, parking lighting controls and occupancy sensors. In total, the identified projects could save Mosaic a total of $1.1 million over the life of the projects, reduce annual energy costs by $225,000, cut approximately 2.8 million kWh of electricity and avoid 2,300 tons of CO2 emissions.
Malatesta also created a comprehensive software application that will assist Mosaic in identifying and implementing similar energy efficiency savings throughout the company's nine additional Florida based fertilizer facilities.
In addition, over $7,000 in unclaimed utility rebates were identified that are immediately available for energy efficiency projects that were previously completed by Mosaic.
Fellow: Peter Petropoulos, Booth School of Business, University of Chicago
Highlight: Identified savings of 1,200 metric tons of CO2 emissions per year
Details: Peter Petropoulos spent his summer immersed in the LEED rating system as a Climate Corps fellow at PepsiCo in its ‘business information solutions' headquarters in Plano, Texas.
Petropoulos, an MBA student at The University of Chicago's Booth School of Business, performed a gap analysis between the facility and LEED certification. Energy intensity, measured by the buildings Energy Star rating, was a critical hurdle to overcome during the analysis. This hurdle represented opportunity for PepsiCo to invest in energy efficiency and get a return on its LEED investment.
After speaking with experts in HVAC, Petropoulos found the building was designed to house a call center that would operate around the clock. As PepsiCo does not use it for this purpose, Petropoulos found energy savings in a new operating sequence for the buildings various systems that could be implemented with little cost.
This and other projects identified could result in a total reduction in annual energy consumption by approximately 1.9 million kWh, reduce operating costs by $195,000, and avoid 1,200 metric tons of CO2 emissions. These investments have a net present value of $1.2 million of their respective lifetimes.
During the ten-week period, Petropoulos also managed to uncover gaps and opportunities and chart a roadmap for the rest of the LEED rating system. This expansive system includes water use efficiencies, landfill waste diversion, air quality improvement, and a range of other critical areas of facility management.
Fellow: Jeremy Dommu, GW School of Business, George Washington University
Highlight: Identified savings of 1,594 metric tons of CO2 emissions per year
Details: Jeremy Dommu spent his summer at PHH Arval, a premier fleet management services provider in the United States and Canada. Dommu, an MBA student at the GW School of Business, George Washington University, worked with PHH Arval to identify several promising opportunities for energy efficiency improvements and created financial models to demonstrate the value that these investments would have for the company.
Dommu helped analyze and recommend several lighting projects, including the installation of occupancy sensors, the reduction in the number of hours per week that lights are on, and the installation of a daylight harvest system.
He also worked with the IT department to reduce the energy consumption in data centers and personal computers in four PHH offices by increasing the temperature set point of computer room air conditioning units, installing computer power management software, and upgrading computer monitors to Energy Star equipment.
Dommu calculated that once PHH implements all the projects that he analyzed, the company would reduce annual energy costs by approximately $374,000 per year, cut more than 3 million kWh of electricity annually, and reduce greenhouse gas emissions by 1,594 metric tons per year.
At a total cost of about $284,000, these investments would be paid back in only 9 months and provide a return of investment of 131%.
Fellow: Dylan Hedrick, Jones Graduate School of Business, Rice University
Highlight: Identified savings of 4,800 metric tons of CO2 emissions per year
Details: Dylan Hedrick spent the summer in Memphis with ServiceMaster, a leading provider of home and business services focused on lawn care, pest control, home service contracts, landscaping, home cleaning, and disaster restoration.
Hedrick, an MBA student at Rice University in Houston, worked closely with ServiceMaster's Vice President of Environmental Stewardship, Director of Fleet Engineering & Technical Support, and facility managers to develop strategies and recommendations to reduce both energy usage within facilities and fuel usage of ServiceMaster's 16,000-vehicle fleet.
Hedrick identified several energy efficiency opportunities including retrofitting fluorescent lighting, installing computer power management software, and applying window tint to building windows. He also developed a business case for purchasing 10 hybrid-electric vehicles through California's Hybrid Truck and Bus Voucher Incentive Project (HVIP).
Hedrick concluded that if all recommendations were implemented, ServiceMaster could achieve an estimated annual savings of $495,000 in utility expenses, reduce electricity use by 7.8 million kilowatt hours, and avoid 4,800 metric tons of CO2 emissions.
“Our EDF Climate Corps fellow brought subject matter expertise and realistic perspective to our energy management efforts, identifying many low cost or no cost opportunities with immediate returns and reinforcing the importance of having an overall energy management strategy in place to drive lasting, long term results.”
- Mike Rogers, Director of Health, Safety, Environmental, CBRE (AIG Account)