From Shop Floor to Top Floor: Best Business Practices in Energy Efficiency PDF Print E-mail
Written by William R. Prindle   
Wednesday, 30 June 2010 12:18
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From Shop Floor to Top Floor: Best Business Practices in Energy Efficiency
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(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 Efficiency

William R. Prindle
ICF InternatIonal

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:

  • A commitment to energy efficiency must start at the top. Strong leadership from senior managers, including the CEO, is essential to getting an energy efficiency strategy started and sustaining it over time.
  • Data management matters a great deal. Today’s best efficiency programs strike a delicate balance: they collect voluminous data, without inundating decision makers with an overwhelming volume of information.
  • Results can be maximized by expanding efficiency efforts to suppliers and customers. Many companies have found that much of their energy use and greenhouse gas emissions occur outside of their own direct operations. As a result, companies are reaching out across their value chain to tap into even larger energy savings opportunities.
  • An emphasis on energy efficiency can lead to broader innovation and process improvements within a company. As companies in this study have found, the benefits of energy efficiency go beyond dollars saved and carbon emissions reduced; it can also lead to product quality and productivity improvements.

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.


Foreword 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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