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| From Shop Floor to Top Floor: Best Business Practices in Energy Efficiency |
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| Written by William R. Prindle | |||||
| Wednesday, 30 June 2010 12:18 | |||||
Page 1 of 3 (This is the Table of Contents, Executive Summary, and Introduction to From Shop Floor to Top Floor: Best Business Practices in Energy Efficiency, available from the PEW Center on Global Climate Change) From Shop Floor to Top Floor: Best Business Practices in Energy Efficiencyby Foreword Eileen Claussen, President, Pew Center on Global Climate Change Driven by rising energy prices and growing concerns about greenhouse gas emissions, companies are implementing aggressive, corporate-wide energy efficiency strategies. Leading companies are not only setting ambitious energy savings targets, they are reaching out to suppliers and customers, and engaging employees at all levels of the organization to advance an ethic of energy efficiency. The results are impressive. Some companies reported billions of dollars of cost savings and millions of tons of avoided greenhouse gas emissions from their efficiency efforts. These businesses are leading the way in demonstrating that the climate challenge can be met in a way that allows for continued, robust economic growth. The companies that have achieved these successes share several key attributes. In this Pew Center report, author William R. Prindle of ICF International, catalogues and describes these attributes, which include:
The Pew Center would like to thank Dr. Marilyn Brown, Matthew Cox, Adam Hinge, and Christopher Russell for their comments on an earlier draft of the report, and the many member companies of our Business Environmental Leadership Council that provided comments and guidance throughout the research process. ContentsForeword iii
Acknowledgements iv
Executive Summary v
I. Introduction 1 A. Background 1
B. Purpose of the Report 2
C. Overview and Organization of the Report 3
II. Making the Case For Corporate Energy Efficiency 6 A. The Policy Environment 6
B. Shifting Out of the Boiler Room Paradigm 9
C. Forces Driving the Paradigm Shift 10
D. Boiling Down the Business Case 12 III. Pew Center Energy Efficiency Survey Findings 16 A. Efficiency Goals, Timelines, and Benchmarks 17
B. Leadership, Staffing, and Accountability 19
C. Financing and Risk Management 21
D. Challenges, Surprises, and Future Needs 22 IV. The Seven Habits of Highly Efficient Companies 25 1. Efficiency is a Core Strategy 25
2. Leadership and Organizational Support is Real and Sustained 25
3. The Company Has SMART Energy Efficiency Goals 28
4. The Strategy Relies on a Robust Tracking and Performance Measurement System 28
5. The Organization Puts Substantial and Sustained Resources Into Efficiency 31
6. The Energy Efficiency Strategy Shows Demonstrated Results 32
7. The Company Communicates Energy Efficiency Results as Part of the Core “Stories” It Tells 33
V. Best Practices: Internal Operations, Supply Chains, and Products and Services 34 A. Internal Operations 34
(i) Energy Team Organization and Relationships to Other Parts of the Company 34
(ii) Overcoming Organizational Barriers 35
(iii) Data Collection and Reporting 38
(iv) Financial and Risk Management Assessment of Efficiency Investments
(v) Leveraging Culture Change 45
B. Supply Chains 47
(i) Key Business Drivers for Supply Chain Efficiency Strategies 48
(ii) Mapping the Supply Chain Energy Footprint 50
(iii) Examples of Company Supply Chain Initiatives 51
(iv) Recommended Practices for Supply Chain Efficiency Strategies 53
C. Products and Services 56
(i) Business Opportunities in Energy Efficient Products and Services 57
(ii) Key Drivers Behind the Push to Develop and Sell More Efficient Products and Services 58
(iii) Residential Products and Services Issues 59
(iv) Energy Efficiency and the Smart Grid 60
(v) Commercial/Industrial Products and Services Issues 60
(vi) The Supply Chain Connection 61
(vii) Recommended Practices for Products and Services 62
VI. Getting Started: Creating a Corporate Energy Efficiency Strategy and Program 64
VII. Conclusions and Future Considerations 67 VII. Case Studies 71 Dow Chemical Company 72
United Technologies Corporation 85
IBM 99
Toyota Motor Engineering & Manufacturing North America, Inc. 117
PepsiCo 127
Best Buy 144
IX. Endnotes 157
X. Appendices 160 Appendix A: Pew Center Survey Methodology 160
Appendix B: Energy Savings Goals—Averaging Methods and Caveats 162
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