The Ecova Blueprint - Total Energy and Sustainabiliity Management
Upcoming SlideShare
Loading in...5
×
 

The Ecova Blueprint - Total Energy and Sustainabiliity Management

on

  • 173 views

A blueprint to creating and mapping your company's total energy and sustainability management strategy.

A blueprint to creating and mapping your company's total energy and sustainability management strategy.

Statistics

Views

Total Views
173
Views on SlideShare
173
Embed Views
0

Actions

Likes
0
Downloads
4
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

The Ecova Blueprint - Total Energy and Sustainabiliity Management The Ecova Blueprint - Total Energy and Sustainabiliity Management Document Transcript

  • THE ECOVA BLUEPRINT : WHITEPAPER ™ Your guide to developing a proactive, strategic and actionable Total Energy & Sustainability Management (TESM) plan. Ecova, Inc. February 2013
  • THE ECOVA BLUEPRINT: WHITEPAPER TABLE OF CONTENTS CONTENTS THE ECOVA BLUEPRINT ™ : WHITEPAPER 1 DRIVERS OF TOTAL ENERGY & SUSTAINABILITY MANAGEMENT INVESTMENT 2 1. COST MANAGEMENT 2 2. RESOURCE SCARCITY 3 3. BRAND PERCEPTION 5 4. INVESTOR EXPECTATIONS 6 6. PHYSICAL RISK 7 THE DRIVERS OF TOTAL ENERGY & SUSTAINABILITY MANAGEMENT (TESM) ARE REAL: WHAT DO YOU DO? THE BLUEPRINT KEYSTONES: A DEEPER DIVE INTO THE DETAILS 8 9 KEYSTONE ONE: DATA 9 KEYSTONE T WO: PEOPLE 11 KEYSTONE THREE: INFRASTRUCTURE 13 KEYSTONE FOUR: MARKETING/REPORTING 15 ESTABLISHING BLUEPRINT SUCCESS 17 THE BLUEPRINT IS FOR EVERYONE 18 THE BLUEPRINT JOURNEY INFOGRAPHIC 20 THE BLUEPRINT FRAMEWORK INFOGRAPHIC 21
  • THE ECOVA BLUEPRINT: WHITEPAPER THE ECOVA BLUEPRINT ™: WHITEPAPER Your guide to developing a proactive, strategic and actionable Total Energy & Sustainability Management (TESM) plan. The corporate appetite for the establishment of sustainable business practices over the past several decades can be best described as a journey. Sustainability programs and solutions investments made a strong showing during the late 1990s and early 2000s before the worst of the economic meltdown forced companies to reevaluate. As a result, some altogether dropped the “green” effort, some chose to focus exclusively on the lowest-hanging fruit to drive immediate efficiency gains, and some remained “all in,” cementing green as core to their brand and competitive differentiation strategy. When the bottom fell out, businesses in virtually every industry were forced to grapple with hard questions about necessity, and necessity was dictated by topline sales and profits. Some executives began questioning the legitimacy of the effort toward “greening” their businesses, writing it off as a fad, a marketing and PR mirage that had no roots to hold it down in the flood of the recession. In hindsight, there’s a lot of irony in that reactionary mindset. Those companies that doubled down on efficiency investments in recent years have enjoyed the rewards of reduced operational costs, an investment strategy that proved important to surviving a drawn-out dismal economy. As businesses dig their way out of trenches built to provide cover from the economic storm, they’re quickly returning to the fundamentals of sustainability, albeit in some cases with entirely new motivation. It’s increasingly clear that green isn’t a fad or a luxury that feeds good fodder to the marketing and PR departments; it’s a must have. Drivers of Corporate Energy Management & Sustainability Initiatives 1. Cost Management 2. Resource Scarcity 3. Brand Perception 4. Investor Expectation 5. Regulatory Changes 6. Physical Risks To understand why that is, it’s first necessary to gather a holistic understanding of the drivers of sustainability and how those drivers affect business. When those drivers are understood, it becomes abundantly clear that the development of a holistic strategy toward energy and sustainability management establishes a direct route to measurable business—and social—benefits. In this paper, we’ll explore the drivers of corporate energy management and sustainability initiatives, using current data that establishes a clear case for investment. We’ll then present the THE ECOVA BLUEPRINT—a tool designed to guide the approach to Total Energy and Sustainability Management (TESM) in any business—based on more than a decade of financial, energy, environmental, and organizational metrics and analysis at Ecova. Let’s start by looking at the fundamental drivers of corporate energy management and sustainability initiatives in today’s business environment. PAGE 1 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER DRIVERS OF TOTAL ENERGY & SUSTAINABILITY MANAGEMENT INVESTMENT 1. COST MANAGEMENT While there’s an altruistic bent to the terms “green,” “sustainability,” and “energy management,” they also—and perhaps more importantly—enable clearly defined and substantial financial benefits. In a business environment where investment decisions are made almost exclusively on their promised ROI, the low- and no-cost opportunities to save energy, water, and waste costs via sustainability initiatives present businesses with very low-hanging fruit that, when picked, create significant opportunity for measurable COST savings. Some of these steps are sufficiently simple that they rarely require capital MANAGE MENT resources beyond that which is already budgeted; steps that combat fluctuating and inevitably rising resource costs. For example: ■■ Installation of programmable thermostats; when temperature settings are adjusted appropriately for just 8 hours a day, a business facility can save as much as 10% on its annual heating and cooling bills (see the Programmable Thermostat Savings Calculator at www.energystar.gov). ■■ Replacement of standard fluorescent and incandescent light bulbs with next-generation CFL (compact fluorescent), LED (light emitting diode) and improved halogen bulbs. Depending on the size and scope of the business, according to energystar.gov, more than 35% of commercial electricity expenses go toward lighting; CFL bulbs are up to 75% more energy efficient than traditional incandescent lighting. 20-30% Most businesses can expect total utility savings of 20-30% from intelligent TESM investments. While the end value of taking initial steps like these is industry specific and market dependent, most businesses can expect total utility savings of 20% to 30% from intelligent TESM investments. Considering that utility costs typically fall somewhere among the top three corporate operating expenses for any business, these savings are substantial, running into the millions of dollars for some companies. That said, the real beauty of energy management savings is that they’re virtually infinite through ongoing refinement when made part of a dedicated TESM strategy. The initial steps illustrated above mark the beginning of a long-term process of project identification, prioritization, and investment. PAGE 2 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER It’s important to note here that change management becomes central to savings sustainment and a key driver of continuous gain. For example: EXAMPLES OF EFFECTIVE ACTION IN SUPPORT OF CHANGE MANAGEMENT MANAGMENT ACTION OUTCOME Staff education and updates to operating protocols Help ensure that new infrastructure and operational techniques are deployed effectively and consistently across an organization, maximizing efficiency gains Soliciting input and ideas for resource savings from front-line employees Yields new savings opportunities grounded in the reality of day-to-day operations routines. Allows the organization to assess project impact and more Performing measurement and verification knowledgeably evaluate future investment opportunities and of completed projects deployment strategies. As new facilities come online, these simple measures and refined approaches to resource efficiency—combined with the addition of new technologies that are in constant development—create continuous opportunity and more dynamic value for TESM. The adoption of a holistic TESM strategy, achieved through the THE ECOVA BLUEPRINT illustrated below, provides a FRAMEWORK for businesses to capitalize on these opportunities, and as we’ll outline in the next section, proactive management of energy and resources has become an absolute strategic necessity for 21st century businesses. 2. RESOURCE SCARCITY A recent, comprehensive report from the McKinsey Global Institute illustrates the unprecedented natural Global water prices in 2011 were up 200% resource tipping point we face and pragmatically year-over-year. At the same time, the pace defines the business cost of resource scarcity. When of development in emerging markets placed in the context of history, it becomes clear that the resource crisis businesses are faced with is not has created a 600%-2,000% increase in a dilemma we’ll face in the future, but a challenge demand for natural resources. we’re already struggling with. According to its report Resource Revolution: Meeting the world’s energy, materials, food, and water needs, the cost of natural resources such as energy, food, water, and manufacturing materials all fell or remained flat throughout the 20th century, albeit not without periods of volatility (i.e. energy market volatility in the 1970s). This cost consistency supported economic growth in the process. Over the course of the past ten years, however, all those price declines that occurred in the previous century were eliminated. Consider that on average, global water prices in 2011 were up 200% year-over-year. At the same time, the pace of development in emerging markets has created a 600% to 2,000% increase in demand for natural resources. The implications for businesses are simple and clear; fewer resources—coupled with a rapidly growing global appetite for them—results in unprecedented competition for commodity resources that will further drive up their costs. PAGE 3 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER The McKinsey Global Institute report authors express the business impact of resource allocation restrictions in no uncertain terms and implore private enterprise to respond as follows: For much of the 20th century, private-sector companies have been able to plan their strategies and business models on the (often implicit) assumption that the implications for real costs of resource prices would be constant or fall. As a result, they have tended to focus on raising labor and capital productivity, given the increasing cost of labor and competition for capital. However, companies now need to increase their strategic and operational focus on resource productivity. Companies that succeed in improving their resource productivity are likely to develop a structural cost advantage; improve their ability to capture new growth opportunities, especially in resource-scarce, rapidly growing developing markets; and reduce their exposure both to resource- and environment-related interruptions to their business and to resource price risk. Increased resource productivity would clearly benefit customerfacing companies including those in the consumer goods, consumer electronics, and retail sectors. Higher resource prices may not translate automatically into higher profits for resource-supply companies through the cycle—but higher prices are almost certain to lead to increased regulatory action from governments and the upstream taxation of resources. The strategic implications of resource-related trends are likely to vary from sector to sector, of course. Nevertheless, all companies are likely to benefit from adopting a more systematic approach toward understanding how resources might shape their profits, produce new growth opportunities and technological discontinuities, and generate new stresses on their management of risk and regulation (Exhibit E7). Industry leaders could usefully go one step further and strive to shape industry standards in a way that generates greater transparency throughout the supply chain about resource productivity and the end-to-end measurement of that industry’s environmental footprint. -McKinsey Global Institute, Resource Revolution: Meeting the world’s energy, materials, food, and water needs, 2011 Exhibit E7: Exhibit E7 THERE ARE SEVERAL RESOURCE-RELATED VALUE-CREATION LEVERS FOR BUSINESSES There are several resource-related value-creation levers for businesses Guide investment/ divestment decisions at portfolio level based on resource trends Develop resource productivity products and technologies to fill needs of customers and company (R&D function) Composition of business portfolio Mitigate risks and capture opportunities from regulation Innovation and new products Build a better understanding of resource-related opportunities in new market segments and geographies and develop strategies to capture them New markets Growth Regulatory management Reduce reputation risks and get credit for your actions (e.g., through proper stakeholder management) Manage risk of operation disruptions (from resource scarcity, climate change impacts, or community risks) Green sales and marketing Risk management Reputation management Operational risk management SOURCE: McKinsey analysis PAGE 4 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED. Return on capital Sustainable operations Sustainable value chains Improve revenue through increased share and/or price premiums by marketing resource-efficiency attributes Improve resource management and reduce environmental impact across value chain to reduce costs and improve products’ value propositions Reduce operating costs through improved internal resource management (e.g., water, waste, energy, carbon, hazardous material)
  • THE ECOVA BLUEPRINT: WHITEPAPER For some time now, the impending scarcity of resources has been a problem that we’ve collectively—and blindly— billed forward for future generations to deal with, like social security funding or national debt. But, as the data from McKinsey suggests, resource scarcity has been exposed and quantified and it can be billed forward no more. We’re wrestling with the issue right now, and it’s impacting our bottom lines. Working continuously toward reducing energy consumption and proactively managing resources are obvious and measurable steps toward creating business benefit for sustainability efforts. This leads us to other drivers that are equally influential in the pressing need for development of a TESM strategy. One of them is the new global expectation of corporate responsibility, which we’ll discuss next. 3. BRAND PERCEPTION In the pre-recession, initial heyday of corporate sustainability, a few brands and products reaped the benefits of rabid customer loyalty due to their vocal and YOU R B R AND demonstrated commitments to environmental and social concerns. Back then, due HERE to clear market and demographic segmentation, achieving the measured sales and loyalty benefits of touting a company’s “greenness” was easier for some brands than it was for others. For instance, it took considerable time and concerted demonstration of Walmart’s sustainability efforts to convince the general public that the “greening” going on in Bentonville was more than a pubic relations ruse, and that the corporate giant was putting real and effective resources into its sustainability plans. For niche food manufacturers, electric car builders, tech startups, and even large companies in the IT sector, on the other hand, demonstration of corporate responsibility has been much more inherent; they’re organic, they reduce emissions, they’re paperless, they’re digitized. Now, on the heels of the well-documented, dedicated sustainability efforts of companies like Interface, Patagonia, Staples, Timberland, and Whole Foods (see any number of green business rankings from Newsweek, Forbes, and other media outlets), there’s a new “normal” in public and corporate expectations in terms of sustainability and corporate citizenship. Our new civil society has high and clearly defined expectations of what a good corporate citizen is. These new expectations include greater sensitivity to not just environmental responsibility, but attention to social concerns, all of which is rooted in corporate transparency. Of course, building environmental and social responsibility into the DNA of a brand is not just about taking steps to move the needle of public perception. An organization’s public brand perception and its corporate culture are inextricably linked. Changing the “green” perception of the brand is therefore an effort staged on two fronts; changing what customers know about the company from the outside as well as gauging and improving on the corporate brand and culture perception among associates on the inside. It’s critical that employees become a cornerstone of the effort. We’ll provide specifics on how employee interest and engagement is best accomplished when we present the keystones of THE ECOVA BLUEPRINT later in this paper. There’s a new “normal” in public and corporate expectations in terms of sustainability and corporate citizenship. Civil society has high and clearly defined expectations of what a good corporate citizen is. As illustrated by the first two drivers, cost is still king in business decision-making. But, as brands and manufacturers continually develop more environmentally and socially responsible business practices, and as they expose their successes to the public through corporate transparency, the new normal will continue to propagate. It will soon become unacceptable for public companies to withhold such data as greenhouse gas emissions and foreign labor statistics. Inaction and a lack of transparency will become tell tale signs of irresponsibility, negatively impacting both brand perception and investor expectations. No competitive brand can afford to be left behind. PAGE 5 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER 4. INVESTOR EXPECTATIONS Even in segments and markets where government and energy/resource management regulations are not keeping pace with risk, investment stakeholders are increasingly demanding transparency. The CDP (Carbon Disclosure Project; www.cdproject.net) is a prime example. The CDP works to transform business practices to prevent dangerous climate change and protect natural resources. But, it’s not an organization led by environmental INVESTOR advocates; rather, it’s led by an investment community—backed by $79 trillion EXPECTATIONS in funding—that’s acutely aware of the business performance implications of social irresponsibility and opacity. As 79 TRILLION such the CDP holds the largest global collection of self-reported climate change data, designed to arm investors Meet expectations of $79 trillion in investor assets that back the and governments with granular, corporation-specific sustainability data to help them mitigate risk, capitalize Carbon Disclosure Project’s request for transparent carbon reporting. on opportunities, and make investment decisions that drive a more sustainable world. The global investment community clearly understands that this is a material risk, and investors are increasingly unwilling to take any investment risk in the form of financing without understanding such factors as long-term carbon emissions, water consumption, and supply chain vulnerability concerns. GRI (Global Reporting Initiative), a non-profit organization that promotes economic, environmental and social sustainability, provides another example of how serious businesses must take the “new norm” of good corporate citizenship. GRI seeks to provide any company or organization with a comprehensive global sustainability reporting framework with which to measure and report their sustainability performance. Outside the realm of voluntary participation in these projects and initiatives, public finance and commerce exchanges are requiring increased transparency as well, going so far as to consider the integration of CDP and GRI-type scores and data in an effort to formalize and combine the reporting of all economic, social, and environmental impacts in one legal filing. But integration of company-specific sustainability reporting into the public trading arena is just one step we’re seeing toward real regulation of sustainability efforts. The pace of federal, state, and local governmental regulation of corporate responsibility is on the upswing as well. Investors are increasingly unwilling to take any investment risk in the form of financing without understanding such factors as long-term carbon emissions, water consumption, and supply chain vulnerability concerns. 5. REGULATORY CHANGES While some of the market facing “buzz” around sustainability initiatives may have slowed at the hands of the recession and competitive political forces, governmental sustainability regulatory discussions haven’t stopped. During 2008 and 2009, there were no fewer than 25 different pieces of competing legislation floating the House and Senate floors. Today, the activity has simply shifted venues; where they’re not as prevalent on the legislative agenda, sustainability initiatives have ramped up considerably among federal regulatory agencies and regional advocacy groups. The EPA, for instance, is pushing RE GUL ATORY C H A NGES regulated management of greenhouse gas emissions through active and proposed amendments to the 40-year-old Clean Air Act. While international agreement and federal legislation action on carbon emissions have faced their share of political hang-ups, the EPA actively began flexing its regulatory muscle to regulate big business’ carbon emissions in 2012. The efforts of the EPA are underscored by state and local governmental regulations such as the functioning cap-and-trade program to regulate greenhouse gases in California. PAGE 6 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER New legislation and subsequent governmental regulation of supply chains, consumption of resources such as water, and CPG (consumer packaged goods) packaging are already in play, concurrently with greenhouse gas emissions regulation. Increasingly, local jurisdictions are enacting laws pertaining to waste and recycling of plastics, glass, batteries, and electronics. Some have barred food service establishments from serving food and beverages in Styrofoam cups and take-out containers. These regulations, designed to create a measurable positive impact on the environment, also create significant financial and management implications for businesses; the regulations impact supply chain and sourcing decisions and costs, and they create a multi-site management challenge for regional and national operators. To navigate the growing regulatory forces that will impact the business community, long-range TESM planning is requisite. Regulations, designed to create a measurable positive impact on the environment, also create significant financial and management implications for businesses; the regulations impact supply chain and sourcing decisions and costs, and they create a multi-site management challenge for regional and national operators. 6. PHYSICAL RISK To fully explore the benefits of a TESM strategy, it would be ignorant to dismiss the physical threats and financial repercussions associated with droughts and climate change. Yes, it’s difficult to directly tie individual storms and severe weather patterns to climate change, but we are seeing an overall trend of increased physical infrastructure and financial (sales) loss, as well as supply chain disruption, due to increased weather severity, and this is squarely in line with climate modeling. PHYSI C AL While scientific and political debates about climate change continue in the U.S., the insurance industry gives us RISK a very real, fact-based litmus test by which we can gauge the financial impact of climate change. The insurance industry has followed the science of climate change and associated severe weather events more closely than most industries; in terms of finances, they have the most to lose from another Katrina or Sandy. U.S. insurers alone paid out $65 billion due to natural disasters in 2012, with Hurricane Sandy accounting for $25 billion of the total. As such, insurance actuaries are changing the way they insure businesses and consumers alike based on climate modeling. Insurance actuaries are changing the way they insure businesses and consumers alike based on climate modeling. In business, climate change also forces resource cost increases; a Midwest drought, for instance, drives up the scarcity—and therefore the cost—of fuel, food, and most certainly water. The ensuing supply chain disruption adds incrementally to the business expense and exacerbates the increased cost to consumers. TESM facilitates a long-term analysis of risks and opportunities for businesses, helping them plan for and mitigate the risks of energy and resource costs, scarcity, brand perception, investor relations, regulations, and physical risk. PAGE 7 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER THE DRIVERS OF TOTAL ENERGY & SUSTAINABILITY MANAGEMENT (TESM) ARE REAL: WHAT DO YOU DO? The drivers of corporate energy and sustainability management initiatives in a post-recession business environment are not just decidedly real; they’re more relevant than at any other juncture in history. Establishment of a TESM strategy is a holistic and strategic means of meeting the ongoing challenges businesses will encounter in the face of corporate sustainability expectations and pressures. That said, TESM management is more a JOURNEY than it is a plug-and-play proposition. The TESM management challenge is fundamentally a change management challenge. It’s a continuous process that includes: ■■ Educating the whole organization on the positive bottom-line business impacts of sustainability and good corporate citizenship. ■■ Provisioning the visibility into the key performance indicators (KPIs) that create clear understanding of the cultural and corporate sustainability direction the company is taking. ■■ Providing stakeholders and associates the resources and tools they’ll need to take action. ■■ Actively pushing for increased innovation and bolder action by the board and executive team. The change management challenge presented by a TESM initiative is uniquely difficult because the topic is inherently broad. It includes establishing baselines; creating and communicating policies on topics as diverse as energy usage, water consumption, waste reduction, carbon emissions, and supply chain efficiency; and then measuring performance, all under one, integrated platform. The single platform is key; managing TESM as a holistic effort across the enterprise is critical to long-term success, largely because the interrelationships between resource areas it addresses requires single-source visibility to establish correlations, develop baselines, identify opportunities for improvement, measure successes, and efficiently report to internal and external stakeholders. Establishing a TESM strategy is critical to breaking down this complexity in a way that facilitates leadership and action when and where it’s needed most. PAGE 8 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER WHERE STRATEGY BECOMES PLAN: THE BLUEPRINT DATA P E O PL E Communicating accurately and effectively with customers, shareholders, and other C stakeholders maximizes your energy & sustainability efforts by enhancing brand image s and increasing transparency. a CO N TI N UAL I M PR O V E M E N T DATA I Infrastructure and operations innovations are speeding up, creating new opportunities to create organizational value through investments in efficiency, renewable energy, t and closed-loop material flows. a MA R KE TI N G & R E PO RTI N G MARKETING & REPORTING Leadership, communication and employee engagement are critical to the success L of any change initiative that relies on sustained organizational commitment and o continual improvement to drive long-term success. c I N F R AS TR UC TUR E CONTINUAL IMPROVEMENT D Data empowers intelligent decision-making, which helps organizations focus resources on high-impact areas and provides quantitative feedback critical for r making adaptive management decisions. m G Given daily advances in the drivers and techniques for Total Energy & Sustainability M Management, enduring success will be predicated on organizations’ adoption of c continual improvement process management. PEOPLE INFRASTRUCTURE THE ECOVA BLUEPRINT is your guide to structuring the chaos and organizational complexity of a TESM strategy, and to making the strategic execution of sustainability efforts both actionable and controllable. Built using Ecova’s Keystone approach—five categories that structure the complexity of energy and sustainability management into mission-critical, actionable, and results-oriented tasks—THE ECOVA BLUEPRINT will help your organization develop a strategic path on a topic that increasingly demands the attention of business leaders across the globe. It was developed over the course of more than a decade of client work on TESM issues, using a data based approach that clearly establishes what works and what does not. THE ECOVA BLUEPRINT brings management of each area of TESM—energy, water, waste, carbon, and supply chain—together in one place, addressing the challenges outlined in each of the five drivers covered above. THE BLUEPRINT KEYSTONES: A DEEPER DIVE INTO THE DETAILS With a solid conceptual view of THE ECOVA BLUEPRINT established, we can go into some depth on each Keystone to illustrate TESM in practice. Here, we’ll highlight a few key points of each Keystone to frame up the case for TESM. KEYSTONE ONE: DATA Data empowers intelligent decision-making, which helps organizations focus resources on high-impact areas and provides quantitative feedback critical for making adaptive management decisions. Let’s look at some key points of data capture and management that contribute to THE ECOVA BLUEPRINT. PAGE 9 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER COMPLETE UTILITY BILL DATA CAPTURE While Smart Grid technologies and the real time data they enable are quickly gaining traction, the reality is that utility bill data will remain a foundation for TESM data visibility and reporting in the immediate future. It will be some time until companies have the majority of their facilities and assets connected to the Smart Grid, and it will take time beyond that for the collective industry to get good at managing it. Meanwhile, becoming efficient with the collection and management of utility bill information is foundational to corporate-wide resource analysis, planning and reporting. SMART METER AND SUBMETER DEPLOYMENT Smart meters and submeters are prerequisite to the Smart Grid of the future, and they enable more granular and efficient data collection in the present. Companies need to begin deploying smart meters and submeters at the speed most cost effective for their individual businesses. Quicker access to more granular data facilitates better management when the systems are in place to turn that data into meaningful management decisions. They also hold the potential, when working with the right vendor, to enable remote monitoring and control to address issues before they even happen. KEY POINTS: DATA ■■ Complete Utility Bill Data Capture ■■ Smart Meter and Submeter Deployment ■■ Additional Resource/Emissions Data Capture ■■ Multipoint Variable Normalization ■■ Internal and External Benchmarking ■■ Supply Chain Information Requests ■■ Single Platform Data Storage, Calculation, and Reporting ■■ Reporting Cadence and Review Responsibilities ADDITIONAL RESOURCE/EMISSIONS DATA CAPTURE To create complete TESM data sets, companies need to get good at capturing metrics that fall outside normal data systems. Fleet information, employee travel, refrigerant usage and other business inputs and emissions are great examples. Developing a proactive and efficient data capture system for these datasets, which often exist in different databases or outside the boundaries of your organization altogether, will facilitate complete analysis and reporting processes. MULTIPOINT VARIABLE NORMALIZATION Once data is collected, it’s much more valuable for analysis after it’s normalized. Statistical normalization allows businesses to reduce the “noise” generated by an overwhelming volume of data, enabling a focus on the materially relevant trends and changes that drive actionable decisions. Common variables to use when conducting normalization exercises include unit-cost variance, weather, and business-specific metrics that tie to organizational productivity or service delivery. INTERNAL AND EXTERNAL BENCHMARKING Once a company is gathering and analyzing its own data, the information can be put to good use. Internal benchmarking enables the identification of outliers—those facilities or operations that are performing above or below the baseline. This insight enables the establishment of best practices gleaned from over performers, knowledge that can be transferred to address the challenges faced by under performers. Benchmarking also opens the possibility of comparing an entire portfolio or operation against the industry averages of its peers. This analysis, using competitive data perspectives, further drives decision-making; those companies that find themselves in front of the curve can continually refine, while those falling behind can identify where relative inefficiencies are resulting in business costs that their peers don’t face. PAGE 10 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER SUPPLY CHAIN INFORMATION REQUESTS While more difficult to gather, information from supply chain partners is increasingly being requested, especially in consumer-facing sectors such as restaurants and retail. In those sectors, more than 75% of total energy and sustainability (TES) impacts may not come from issues within a company’s direct controllable operations but from their supply chain. Keeping pace with changing expectations around supply chain transparency and engaging vendors is key to developing good data sharing practices. SINGLE PLATFORM DATA STORAGE, CALCULATION, AND REPORTING All of the data we’re discussing can be unwieldy to manage, especially when it’s located in disparate departments, spreadsheets, and software programs across the enterprise. To get true and meaningful visibility into TESM data, it’s imperative to pull all this data into a single, integrated reporting platform. If this doesn’t happen, data management and reporting is so cumbersome it’s sure to become an onerous proposition. Data needs to be empowering, not a manual, time-consuming, and loathed chore. Only when data collection is as automated as possible and aggregated on a single platform can an organization truly “own” it. REPORTING CADENCE AND REVIEW RESPONSIBILITIES Data is the foundation for insight, but can be actionable only when best practices are in place for its timely review by the proper stakeholders. THE ECOVA BLUEPRINT highlights the need for plans to be in place for the appropriate dissemination of reports to the stakeholders who require them, as well as the need to establish expectations around what they do with that information. Deploying utility expense and data management, energy supply management, and facility optimization and sustainability tools from a trusted provider enables the seamless, single-source access to data that’s imperative to achieving quantifiable improvement. KEYSTONE T WO: PEOPLE Leadership, communication, and employee engagement are critical to the success of any change initiative that relies on sustained organizational commitment and continual improvement to drive long-term success. Let’s explore how people impact the success of a TESM initiative. RISK & OPPORTUNITY BRIEFING Before presuming leaders can be effective drivers for sustainability transformation, we need to ensure that everyone has a good baseline understanding of the issues and drivers that make TESM an issue. These factors can be unique to a company based on factors such as the industry in which it plays or its geography. We can’t assume that all leaders have an equal starting point in their understanding of these topics, so it’s important to establish a level playing field where a shared understanding of TESM issues can be expected. PAGE 11 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED. KEY POINTS: PEOPLE ■■ Risk & Opportunity Briefing ■■ Leadership Commitment ■■ Cross-Functional Team Development ■■ Policy Development ■■ Job Description Modifications & Incentives Development ■■ Position-Specific Training ■■ Ongoing Outreach / Engagement Campaign
  • THE ECOVA BLUEPRINT: WHITEPAPER LEADERSHIP COMMITMENT Sweeping organizational change—which TESM demands—starts at the top. In practice, sustainability change is equal parts top-down and bottom-up, but without top-down support efforts will continually fall flat. Business leaders need to express deep understanding of the topics, how they affect the core business, and what they expect managers and employees to do to help address the risks and opportunities we’ve covered here. While policy statements and press releases are important, they must be continually reinforced through ongoing communication integrated with core business priority messaging. CROSS-FUNCTIONAL TEAM DEVELOPMENT Once leaders have established their commitment, the heavy lifting begins. TESM demands a multi-disciplinary team of individuals with decision-making authority and the budgetary discretion necessary to identify priority projects and execute on them. Too often, “green” teams are comprised of “champions” with great desire but no power to affect real change. Serious sustainability initiatives display executive sponsorship of a team of decision makers who will get things—both big and little—done, illustrating in practice that the executive decree is not in word only. POLICY DEVELOPMENT As referenced above, establishment of an official, formal policy is important. The policy serves as a reference point that keeps the organization honest and enforces the sharing of data with external stakeholders. Policies are only effective in how they are executed in the organization, but the ideological statement must be codified if for no other reason than to deliver a clear, overarching decree across the enterprise. JOB DESCRIPTION MODIFICATIONS & INCENTIVES DEVELOPMENT Sustainability is about doing things differently, making the different behavior of the people across the company incumbent to its success. As such, job descriptions must be reviewed and modified in a manner that supports the new responsibilities of the individuals held accountable for the company’s TESM priorities. Accompanying new job descriptions are the systems of incentives and disincentives that accompany workplace expectations. Companies embarking on, or seeking to enhance their sustainability journey must define how they will incite the specific changes they wish to see, and they must continually manage that incentive. POSITION-SPECIFIC TRAINING Setting new and clear expectations is important, and that’s leadership’s prerogative. Equally important is empowering employees to meet the new expectations they’ve been given. Understanding and accommodating the education and training that associates need to be successful in executing organizational sustainability priorities is a critical step toward building a culture of champions. ONGOING OUTREACH / ENGAGEMENT CAMPAIGN In the effort toward company-wide TESM literacy, it’s important to focus on ongoing education and outreach to every employee in the organization. While the specifics of such outreach are dependent on the company and the industry it serves, it can be useful to mirror successful communications and engagement efforts deployed for other important internal change initiatives. Change management is almost always difficult. Therefore, consultancy and ongoing material support is key to ensuring long-term follow-through on strategies and objectives that, when achieved, result in significant bottom-line benefit. PAGE 12 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER KEYSTONE THREE: INFRASTRUCTURE Infrastructure and operations innovations are speeding up, creating new opportunities to build organizational value through investments in efficiency, renewable energy, and closed-loop material flows. Here, we’ll dive into the infrastructure requirements necessary for TESM success. ENERGY AND WASTE PROCUREMENT KEY POINTS: INFASTRUCTURE ■■ Energyand Waste Procurement ■■ Facility Outlier Identification ■■ Facility and Operation Audits ■■ Project Evaluation and Prioritization ■■ Capital Improvement Plan Active resource management begins long before the meter turns or the trucks roll. For energy, in deregulated markets savings and source control are made possible by establishing active management of procurement contracts, which facilitate real cost mitigation and the opportunity for sourcing renewable energy. For waste, active management of vendor contracts and service levels—often an ignored discipline or outsourced to vendors who may have incentives poorly aligned to those of their client—can result in major savings and help you execute on recycling and compost initiatives. Development ■■ Operation Protocol Modifications ■■ Remote Monitoring and Response ■■ Project Monitoring and Verification ■■ New Construction Guidelines FACILITY OUTLIER IDENTIFICATION With a full slate of sustainability data available to the organization, outlier identification becomes elementary. As earlier referenced, outlier identification allows organizations to determine why the best are the best, as well as what issues create challenges for the under performers. This is true across all resource areas including energy, water, and waste management. THE ECOVA BLUEPRINT helps organizations put the mechanisms in place to establish this visibility and to correct the problems identified through data analysis. FACILITY AND OPERATION AUDITS While there is much to be revealed by data, change is still most affected by “boots on the ground.” Conducting thorough engineering-level analysis of both successes and causes of inefficiency is a critical component of developing confidence in capital investments designed to reduce costs and mitigate environmental impacts. While it’s perhaps inefficient to get this granular at every site, auditing a representative sampling of facilities and operations provides invaluable insight into what’s actually happening on the ground. PROJECT EVALUATION AND PRIORITIZATION With data and audit information in hand, organizations can evaluate and prioritize the best opportunities for new project development. Some of these will likely be no-cost/low cost “no brainer” operational decisions, while others will have capital budget requirements. This is where diligent analysis of each opportunity is necessary, including the full range of parameters most important to your specific organization (i.e. capital cost, ROI, environmental benefit, and communication/outreach potential). PAGE 13 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER CAPITAL IMPROVEMENT PLAN DEVELOPMENT Not all projects identified on THE ECOVA BLUEPRINT: JOURNEY will fit into the no-cost/low cost category. At some point, the CFO will be heavily involved in consideration of capital-intensive projects. This involvement requires the analysis of ROI in today’s hard dollars, as well as consideration of the likelihood of cost escalation and the softer project costs and benefits dealing with utility incentives, employee education, customer brand enhancement, and environmental impact. OPERATION PROTOCOL MODIFICATIONS In addition to capital investments, there will likely be necessary changes to how associates are interacting with the infrastructure that’s critical to TESM success. It’s important to give operational behavior as much attention as that given to physical systems, leading back to the documentation and training necessary to enforce new TESM protocol. REMOTE MONITORING AND RESPONSE Whenever and wherever possible, companies should deploy the remote monitoring and controls capabilities that will allow for automated or proactive management responses to its TESM infrastructure-dependent systems. PROJECT MONITORING AND VERIFICATION Of course, when the CFO is involved, the return on money spent implementing and executing must be quantified. Each project on THE JOURNEY should have an associated measurement and validation plan that illustrates field-level successes, or failure, across the organization. This objective look-back at project execution is invaluable when planning for future initiatives. NEW CONSTRUCTION GUIDELINES Imediately on THE JOURNEY, there will be much emphasis on existing infrastructure. That said, early benefits of successful TESM will surely contribute to planned growth and expansion. THE ECOVA BLUEPRINT helps companies transfer sustainability successes and established best practices to new facilities as they come online. From fixing that which was broken, organizations are better equipped to build efficient and standardized new facilities from the ground up. Benchmarking, monitoring, and management of TESM efforts are dependent on the bricks-and-mortar infrastructure necessary for the efficient aggregation and analysis of the data that drives continuous innovation. Successful sustainability initiatives exhibit the plant-level physical infrastructures necessary to enable ongoing improvement. PAGE 14 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER KEYSTONE FOUR: MARKETING/REPORTING Communicating accurately and effectively with customers, shareholders, and other stakeholders maximizes your energy and sustainability efforts by enhancing brand image and increasing transparency. Let’s explore how THE ECOVA BLUEPRINT helps companies share both their successes and opportunities for improvement. EXTERNAL BRANDING/MESSAGING CREATION In business, success breeds more success. That axiom is best exploited when success is proactively communicated across the enterprise and the industry. It’s therefore important to develop a plan for the communication of TESM achievement, which helps establish sustainability as core to the corporate culture and the brand. A communication plan that’s based on the demand for transparency creates a virtual venue for the celebration of measurable, fact-based success and the sharing of forward-looking TESM plans. REPORTING STRATEGY & PROTOCOL SELECTION (GRI, CDP, ENERGY STAR) KEY POINTS: MARKETING/REPORTING ■■ External Branding/Messaging Creation ■■ Reporting Strategy & Protocol Selection (GRI, CDP, ENERGY STAR) ■■ Third Party Data Verification ■■ Annual Third Party Report Submissions Consumers and the investment community alike have developed distaste for “greenwashing,” the term that describes a company’s ■■ Corporate Sustainability efforts to “spin” its green stature beyond hard facts. Instead, they’re Report Development increasingly seeking hard and fast data that’s tied back to any number of third-party protocols (i.e. the aforementioned CDP, GRI and other “green score” methods). THE ECOVA BLUEPRINT will help organizations determine which reporting structure makes the most sense for their particular place on the sustainability continuum, provide guidance on the reporting format, and help them commit to a yearly reporting practice. This goes a long way toward building credibility for internal and external communication efforts. THIRD PARTY DATA VERIFICATION While data produced from trusted brands is generally held credible, the earlier referenced “greenwashing” phenomenon has resulted in skepticism on the part of the consumer and investment communities. Data is best accepted when given a third-party stamp of approval, akin to third-party validation of corporate financial disclosures. This will become as standard a practice in sustainability reporting as it has in the financial arena. ANNUAL THIRD PARTY REPORT SUBMISSIONS Once a particular reporting protocol is determined, ongoing commitment to it is key. With guidance from THE ECOVA BLUEPRINT, these reporting processes will get easier by the year as it becomes clear what data is required and from which systems to gather it. Annual third-party reporting consistency also illustrates commitment to ongoing transparency in good times and bad. CORPORATE SUSTAINABILITY REPORT DEVELOPMENT Optimizing the benefit of TESM communication requires telling the story in the context of the specific brand culture of the business. The story best resonates with employees and consumers when it’s told in a transparent, honest tone that’s authentic to the brand. The companies with the most successful sustainability initiatives are those that establish corporate responsibility as core to both the private corporate culture and the public-facing brand. Successful sustainability is concrete and reportable, requiring nothing in the way of so-called “greenwashing” or PR “spin.” PAGE 15 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER KEYSTONE FIVE: CONTINUAL IMPROVEMENT Given daily advances in the drivers and techniques for TESM, enduring success will be predicated on organizations’ adoption of continual improvement process management. Here, we’ll explore how THE ECOVA BLUEPRINT helps guide the benefits of ongoing sustainability. INTERNAL READINESS-TO-CHANGE ASSESSMENT Before embarking on the process of continual improvement critical to TESM success over the long haul, it’s important for a company to define its position on the sustainability continuum. Do employees understand the issues? Do they care? Are they equipped to leverage the existing infrastructure in a manner that will achieve the desired outcome? What will it take to get there? Engaging a third party can help ensure clear visibility of the organization’s collective starting point on THE JOURNEY. KEY POINTS OF CONTINUAL IMPROVEMENT ■■ Internal Readiness-to-Change Assessment ■■ Industry Trends/Competitive Assessment ■■ Company-Specific Risk/Opportunity Assessment ■■ Goal Development INDUSTRY TRENDS/COMPETITIVE ASSESSMENT Establishing a starting point for internal assessment is important, and so is understanding how the competitive set stacks up. Knowing the leaders and the laggards in the industry and marking the company’s place on that scale helps with the establishment of goals and the prioritization of projects. It’s particularly important for executive stakeholders to gain this perspective in order to understand their broader position in the market and create benchmarks for achievement. ■■ KPI and Baseline Development ■■ Opportunity Evaluation Methodology ■■ Funding Mechanisms ■■ Strategic Plan Implementation COMPANY-SPECIFIC RISK/OPPORTUNITY ASSESSMENT With a general understanding of internal and external positioning from the start, business leaders can more accurately assess their own specific risks and opportunities. Competitive advantage and business benefit are best achieved when there’s a focus on company-specific opportunities. Only through assessment and planning will TESM become a true source of competitive differentiation tied to broader business strategies. GOAL DEVELOPMENT Goals are critical to measured success and the business benefits that come with it. When setting goals, consider that they must be relevant to the challenge at hand if they’re going to inspire change. For instance, reducing greenhouse gas emissions .5% over a 10-year period indexed to revenue does nothing to address global greenhouse gas emissions in a way that reflects an understanding of the scope and timing of the problem. At the same time, goals must be attainable. Setting too big a goal with too short a timeframe to achieve it will result in disenchanted associates and stakeholders. Goals that are too small will thwart innovation. THE ECOVA BLUEPRINT helps organizations establish fitting goals by helping them find the balance between underwhelming and overzealous. KPI AND BASELINE DEVELOPMENT Data and progress must be measured from a starting point. Selecting an organizational baseline and being clear on which metrics will become the KPIs that measure objective success or failure is critical to creating the feedback that will establish and continually refine a course of action. PAGE 16 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER OPPORTUNITY EVALUATION METHODOLOGY To drive continual improvement, organizations need a transparent process by which to evaluate and compare their projects. THE ECOVA BLUEPRINT supports the development of company-specific methodologies necessary to keep the entire organization informed on what’s being done, what’s next on the agenda, and what opportunities are being shelved—and why. FUNDING MECHANISMS A mandate is a policy without legs if left unfunded. With executive oversight, the CFO must be brought fully in to the fold and be prepared to support investments in TESM when and where it makes sense for the established course of the organization. STRATEGIC PLAN IMPLEMENTATION Continual process improvement is an art and science worthy of its own field of study, and organizations embarking on THE JOURNEY will need to become proficient at it. THE ECOVA BLUEPRINT is designed to help companies learn how to set goals, create an environment that supports and rewards innovation, empower employees to make the changes that drive goal attainment, and provide visibility into metrics in a consistent and timely manner. THE ECOVA BLUEPRINT helps companies get good at change, because change is constant and it drives ongoing opportunities for TESM. Where the first four keystones are established and results are monitored, companies develop dedicated expertise and genuine enthusiasm for the expense-saving and sustainability benefits of the program. Continuous improvement is cultivated where this expertise and enthusiasm meet. Of course, any resource-intensive business initiative demands a positive outcome. With TESM, that outcome is not only positive and measured in true dollar savings and efficiency gains, it’s continual. ESTABLISHING BLUEPRINT SUCCESS As with any significant organizational change that is, at its core, based on a process of continual improvement, the work of TESM within your organization will not be done any time soon. In fact, as technology advances and resource and commodity markets evolve, TESM is never really finished. Managed correctly, the outcomes of TESM are essentially the same as the drivers—always in play and forever evolving—but with a happy ending that satisfies all stakeholders, from the finance office to consumers to the investment and exchange communities. That said, the initial benefits of executing on THE ECOVA BLUEPRINT are profound, measurable, and almost immediate. It’s not at all uncommon for businesses to experience: ■■ The realization of 20% to 30% percent reductions in utility costs ■■ The ability to speak confidently and effectively to the 72% of U.S. consumers who believe it is important to buy from responsible companies ■■ Satisfaction in keeping good company with the 63% of S&P 500 businesses that account for and disclose their greenhouse gas impacts ■■ The ability to preemptively plan for likely regulatory changes regarding issues such as carbon, waste management, and supply chain accountability ■■ Assurance that they’re prepared for foreseeable future risks such as supply chain and physical infrastructure disruptions. PAGE 17 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT: WHITEPAPER Our economy is rapidly shifting away from non-renewable resource consumption and the take-make-waste supply chains of the past. The world is decarbonizing and competitive businesses are practicing radical efficiency. This ongoing economic transformation will rival the scale of the industrial revolution, creating great disparity between winners and losers in the marketplace. THE BLUEPRINT IS FOR EVERYONE Setting the historical drama of the situation we face aside for a moment, it’s important to note that this isn’t a “sky is falling” (a-la Chicken Little) scenario. There is not—and there never will be—a solution, system, or application that results in “green panacea.” As we established earlier in this paper, TESM is about responding to a changing marketplace. It’s about companies establishing a position on the sustainability continuum and within each market segment—regardless of current “green” standing—then developing the strategy that differentiates the company’s efforts within each driver. Establishing THE ECOVA BLUEPRINT will prove to effectively direct a company’s efforts accordingly, maximizing the impact of TESM initiatives. THE BLUEPRINT is about responding to a changing marketplace. It’s about companies establishing a position on the sustainability continuum and within each market segment—regardless of current “green” standing—then developing the strategy that differentiates the company’s efforts within each driver. As the drivers covered in this paper illustrate, there is one undisputed absolute when it comes to corporate sustainability: If you haven’t already, now is the time to establish a dedicated practice of TESM. And if you’re already engaged, now is the time to accelerate your efforts. The immediate future promises the inevitability of quickly changing marketplaces in response to our new reality. Learn more and explore THE ECOVA BLUEPRINT Resources: THE VIDEO THE FRAMEWORK BLUEPRINT VIDEO THE JOURNEY BLUEPRINT FRAMEWORK INFOGRAPHIC PDF THE TOOLKIT PAGE 18 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED. D RA ND BR AN R B UR Y OU H E R E YO U BLUEPRINT JOURNEY INFOGRAPHIC PDF REQUEST THE FULL ECOVA BLUEPRINT TOOLKIT
  • THE ECOVA BLUEPRINT: WHITEPAPER ABOUT ECOVA Ecova is the total energy and sustainability management company whose sole purpose is to see more, save more and sustain more for our clients. Using insights based on consumption, cost and carbon footprint data spanning thousands of utilities, hundreds of thousands of business sites and millions of households, we provide fully managed, technology-optimized solutions for saving resources, which in turn increase returns, lower risks, and enhance reputations. Ecova is the largest non-regulated subsidiary of Avista Corp (NYSE: AVA and avistacorp.com). For more information, visit the company’s website at ecova.com, on LinkedIn at linkd.in/ecovainc, or follow Ecova on Twitter at @ecovainc. CONTACT US TODAY Let us demonstrate what we can do for you. 800 791 7564 info@ecova.com PAGE 19 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED. ecova.com
  • THE ECOVA BLUEPRINT ™ Your guide to developing a proactive, strategic and actionable Total Energy & Sustainability Management (TESM) plan. As society and marketplaces change – as they always have and always will – companies will lead, keep pace or be left behind. It is a story as old as commerce itself. The companies best primed to succeed are those that clearly see the changing business landscape, prepare their organization effectively for a long and difficult journey, and actively lead their people around constantly changing obstacles to arrive at their intended destination. FRAMEWORK D ATA Infrastructure and operations innovations are speeding up, creating new opportunities to create organizational value through investments in efficiency, renewable energy, and closed-loop material flows. Communicating accurately and effectively with customers, shareholders, and other stakeholders maximizes your energy & sustainability efforts by enhancing brand image and increasing transparency. C ONTINUAL IMPROVEM ENT DATA Leadership, communication and employee engagement are critical to the success of any change initiative that relies on sustained organizational commitment and continual improvement to drive long-term success. MARK ETING & REPORTING MARKETING & REPORTING P EOPLE INFRASTRUCTURE CONTINUAL IMPROVEMENT Data empowers intelligent decision-making, which helps organizations focus resources on high-impact areas and provides quantitative feedback critical for making adaptive management decisions. Given daily advances in the drivers and techniques for Total Energy & Sustainability Management, enduring success will be predicated on organizations’ adoption of continual improvement process management. PEOPLE INFRASTRUCTURE JOURNEY Total Energy & Sustainability Management is a core competency of forward-looking companies, spanning a full range of business-critical inputs and outputs. The risk of inaction grows daily, as do the opportunities to make energy and sustainability management a defining part of your strategy for success in the marketplace of the future. YO U R B R AND HERE 72% Reach the 72% of consumers who support responsible companies. STARTING OUT You are now ready to start your journey of opportunity maximization and risk avoidance. C OS T MA NAGEM ENT 30% Realize a 30% reduction in utility costs. BRAND RE LE VANC E INV ES TOR EX P EC TATIONS SUCCESS! 78 TRILLION Meet expectations of $78 trillion in investor assets that back the Carbon Disclosure Project’s request for transparent carbon reporting. THE NEXT JOURNEY Every endpoint is the start for a new adventure. Let’s keep growing together. PHYS I CAL RIS K 20% Avoid supply chain disruption that can negatively affect company share price by as much as 20%. REGU L ATORY C H A NGES 80% Plan for an 80% reduction in GHG emissions, a potential target of proposed carbon legislation. © 2013 Ecova, Inc. All Rights Reserved. PAGE 20 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED.
  • THE ECOVA BLUEPRINT ™: FRAMEWORK Welcome to the Blueprint Framework – your planning guide for Total Energy & Sustainability Management success. CONTINUAL IMPROVEMENT The Framework will help your organization develop a strategic approach to a management priority that increasingly demands the attention of business leaders across the globe. The Framework was built using 5 categories that structure the complexity of energy and sustainability management into mission-critical, actionable and results-oriented tasks. MARKETING & REPORTING DATA PEOPLE Put the Framework to use today and start maximizing the short and long-term business value of proactive and strategic Total Energy & Sustainability Management. INFRASTRUCTURE D ATA Portfolio/ Asset Data Management PE OPLE Risk & Opportunity Briefing INFRASTRUCTURE Energy & Waste Procurement MARKE TING Complete Utility Bill Data Capture External Branding/ Messaging Creation Leadership Commitment Regulated Rate Plan Analysis & REPORTI NG CONTI NUAL IMPROVE MENT Smart Meter & Submeter Deployment Internal Readiness-to-Change Assessment Cross-Functional Team Development Budgeting & Accruals Policy Development Facility Outlier Analysis Reporting Strategy & Protocol Selection (GRI, CDP, ENERGY STAR) Industry Trends/Competitive Assessment Company Specific Risk/Opportunity Assessment Multipoint Variable Normalization Additional Resource/ Emissions Data Capture SEC Disclosure Evaluation Goal Development Internal Initiative Branding & Launch Facility & Operation Audits Job Description Modifications & Incentives Development Project Evaluation & Prioritization Position-Specific Training Capital Improvement Plan Development 3rd Party Data Verification KPI & Baseline Development Supply Chain Information Requests Internal & External Benchmarking Operation Protocol Modifications Annual 3rd Party Report Submissions Trending, Forecast & Scenario Analysis Opportunity Evaluation Methodology Single Platform Data Storage, Calculation & Reporting Competition & Gamification Best Practice & Story Sharing Remote Monitoring & Response Project Monitoring & Verification Corporate Sustainability Report Development Strategic Plan Development Reporting Cadence & Review Responsibilities Ongoing Outreach/ Engagement Campaign New Construction Guidelines Consumer Outreach Campaign Funding Mechanism Creation Strategic Plan Implementation MANAGING INPUTS & OUTPUTS Total Energy & Sustainability Management spans a broad array of business inputs and outputs, each accompanied by unique opportunities and risks. Great management approaches clearly see and plan for the close interrelationships between these categories. One plan + one platform = maximum value. PAGE 21 | © 2013 ECOVA, INC. ALL RIGHTS RESERVED. © 2013 Ecova, Inc. All Rights Reserved.