Greening Solutions:  Decrease Your Company's Energy Use

ShopTalk, October 2008

Energy Efficiency was a major topic at the Mid-Year Conference. Unfortunately, the truth is that most companies' Energy Efficiency efforts are more about reducing operating costs and contributing to the bottom-line than about corporate environmental stewardship. While environmental sustainability can be a cause for operating more energy efficient facilities, reducing stores' operating costs are the true driver for most retailers' business decisions to focus on it. In the current financial climate, expecting our companies to invest in GREEN initiatives without a payback may not be realistic. But showing the financial benefits to the company's bottom line will get you approval to move forward with an Energy Management Program that has environmental sustainability as a byproduct.

Decreasing your company's energy use by 10 percent will increase your company's net profit by 1.5 percent. That kind of number will impact your company's stock price. Deliver that message, along with a base strategy of how to achieve it to the Board of Directors, and you'll get the approval to take the actions needed to initiate a new, or improve on an existing Corporate Energy Management Program.

When presenting the case for an aggressive Energy Management Program - and to hit that 10 percent reduction number, aggressive action will be required - you must insure that Corporate Environmental Stewardship and Sustainability are highlighted as a justification equal to the cost savings.

The Energy Management Program presentation is the most effective and best opportunity you will have to promote your company into making environmental sustainability an authentic part of its mission statement and corporate culture and, to that end, leading the company to take a part of the financial savings gained through the Energy Management Program to make the company more GREEN in other areas - in areas that might not have a financial ROI for the company.

A smart and strategic company will use their Energy Management Program as part of their marketing efforts, and including the company's other GREEN sustainability efforts as part of that marketing will further enhance the customer's relationship with the brand.

Additional GREENing may include switching to all GREEN cleaning products and procedures, retrofitting the chain with low-flow faucets with on-off sensors and dual flush toilets (which reduces water costs, and lesson the burden on the environment), using only low-VOC paints and adhesives, retrofitting with recycled carpet or sustainable flooring materials during their replacement cycle, or insuring that 100 percent recycled paper products are used throughout the organization. The list is endless.

Being GREEN is a social responsibility, one that we have a significant opportunity to impact. If we do some Trojan-horse promotion of GREEN's value inside of the "cost efficiency" conversation, is that a bad thing?

Take-Aways from the PRSM Mid-Year Conference

• Our PRSM organization continues to build solid GREEN relationships with the United States Green Building Council (USGBC), the United States Environmental Agency (EPA), including the Energy Star program, and other government agencies in support of our GREEN initiatives. A representative from this group spoke at the conference, and your PRSM team is committed to providing Environmental Sustainability education, options and support structures to our members.
  
• The New Jersey Utility Company urged all retailers to take advantage of the millions of dollars in cash rebates available for energy efficient design and installations. Many state and local utility companies have this type of money available, and they have streamlined the process for obtaining these funds.
  
• Ann G. Shinners of Dollar Tree Stores, Inc. has done a terrific job and implemented numerous Energy Management Programs for their fleet of stores, significantly contributing to their financial success.
  
• Managing your stores' energy use, costs and statistics, monitoring potential efficiency issues, and forecasting future cost trends are best supported in partnership with an energy management consultant...the financial savings will pay for their services, and having their team focused 24/7 on your energy operations and industry trends are invaluable.
  
• Having the opportunity to meet directly with the service providers that currently work for us is invaluable. Just a short meeting on the Market Place floor to acknowledge their contributions to our success or to clarify our future expectations in the conference environment generates an immediate impact to furthering an effective relationship.
  
• More and more companies are creating dedicated "Energy Management" positions in their organizations.
  
• Ana Mendez of United Retail Incorporated's Avenue concept spoke of replacing some of their oldest HVAC units (depending on the store's remaining lease term, etc.) with high-efficiency ones rather than spending any more money keeping inefficient units on life-support. They have minimized the Preventative Maintenance (PM) efforts on old units which fit the future replacement profile while increasing the PM investments on the new ones. A wise investment. Plus, they religiously file for "efficiency" rebates when they make these replacements.
  
• There were two exceptional sessions on improving personal management skills. These were great opportunities to study how to keep balance between our personal lives and professional responsibilities, and how making the former the priority best supports the latter.
  
• While there are superstars in our industry making extraordinary commitments to Environmental Sustainability - JCPenney, Best Buy, Home Depot and Kohl's to name a few - there are many retailers that have not begun going GREEN with their new store construction or existing facility management...What are they waiting for?

There will be many greening management sessions and initiatives presented at PRSM2009!  Don't miss the opportunity to learn from your peers and experts in the industry.

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