Sustainability Partners, Inc

Doing More With Less Is Success

kschrank — Thu, 26 Apr 2012 23:15:30 +0000

I’ve just finished reading Dr. Bruce Piasecki’s optimistic book Doing More With Less and recommend it to business people who want to compete effectively during the 21st century amidst the unique challenges of our time. Piasecki compares our “inherited beliefs about superabundance, entitlement, and destiny on Earth” against evidence of the 21st century challenges: increasing urbanization, globalization, less farm land, water scarcity, climate change, aging populations, decreasing fossil fuel reserves and … nearly 7 billion people living on Earth, 70% of whom live in urban centers. There is no other time in history where people lived so densely and used so much energy and natural resources.

So how does Dr. Piasecki manage to be optimistic with these profound challenges? He has studied and implemented Benjamin Franklin’s life philosophy which promoted frugality, innovation and diplomacy as foundational principles for sustainable wealth in life and in business. Benjamin Franklin understood that scarce times breed inventiveness. He also understood that scarce times are soothed through diplomacy instead of war-like attitudes. For 30 years, Piasecki has been implementing these principles at his own firm and consulted with many Fortune 500 companies who have successfully done the same. In other words, he has something to say that we can all learn from.

Doing More With Less provides facts like 300 of the top multinational corporations now control about 33 percent of the world’s assets. And, 44 percent of world trade takes place among these organizations. This trend of corporate control of world assets is expected to deepen as it appears to correlate with population movement towards so-called “megacities”. As Piasecki says, mega companies have “sculpted” megacities. Now, there are 19 global cities that with populations over 10 million. By 2025, experts predict that 26 such mega cities will exist on the planet.

With this kind of people density amid scarce resources, Piasecki states emphatically that “to achieve peace and prosperity – to reach that next golden age – we must develop and disseminate the art of frugality. The next golden age will be about a frugal prosperity for a growing number of people.” For inspiration, Dr. Piasecki provides many examples of businesses that are already addressing societal challenges through their core business. These businesses have corporate sustainability strategies that are based upon principles of frugality which have resulted in increased market share, customer loyalty, reduced risks, and financial security.

Piasecki’s predicts that these types of businesses will survive the 21st century, and that the best businesses will greatly influence the growth and development of the megacities where they are located. His core advice for businesses is to take note of the relationship between financial scarcity issues, energy and carbon usage patterns, and the voluntary movement of businesses to sustainability strategies, and adjust your business strategy accordingly. For a video overview of Doing More With Less, click here.

NICOR Gas Has Rebates For Businesses That Improve Energy Efficiency

kschrank — Fri, 20 Apr 2012 15:59:06 +0000

There are funding mechanisms in Illinois law which require large privately held gas and electric utility companies, like NICOR Gas (and ComEd and other large utilities), to provide consumers with information, rebates and incentives to help that them reduce energy consumption. NICOR Gas, which serves northern Illinois customers, has one of the most robust programs. Energy efficiency upgrades save money, save energy and make indoor space more comfortable. A NICOR representative told me that business customers find the application process simple and the rebate turnaround time fast, typically two weeks after a project is complete. Here are a few links to help you determine whether NICOR has energy efficiency rebates that are right for your business.

1. Business Energy Efficiency Rebate Program. This program applies to all NICOR Gas business customers. It provides cash rebates for qualifying high efficiency upgrades for indoor space and water heating. Some rebates encourage maintenance through rebates for boiler tune-ups and re-commissioning, while others are industry specific. For example, NICOR has prescribed rebates for the food service and hospitality, commercial, private health care, private education, manufacturing and industrial sectors. Click here or call 877-886-4239 to learn more.

2. Small Business Energy Savings Program. This powerful program applies to business customers that are jointly served by both ComEd and NICOR. Under this program, a small business can receive a free energy audit which includes the installation of some free energy efficiency products such as compact fluorescent light bulbs. A small business is one whose peak demand is 100 kW or less, and annual demand is 60,000 therms or less. Once the assessment is complete, the energy auditor may recommend energy efficiency improvements for which rebates and incentives representing about 60% of the costs may be available. In addition, NICOR will help you find a qualified independent contractor to perform the work. Click here for more information, or call 888-806-2273 to learn more.

3. Business Custom Incentive Program. Projects that fall outside the programs above may qualify for a customized incentive. Currently, projects that are installed between June 1, 2011 and May 31, 2014 are eligible for incentives up to $100,000. All projects for custom rebates must be pre-approved by NICOR Gas, and it is imperative to keep NICOR involved in the project until final inspection. Applications for rebates need to be submitted and approved by NICOR. By getting NICOR involved at the beginning, NICOR can estimate the rebate amount for a project. Participants in the program feel that their times was well spent in terms of the financial incentive, energy savings, and the process was streamlined. Click here or call 312-755-9020, ext 3012 to learn more.

Two Stories of Naperville Businesses Deepening Their Commitment to Sustainable Operations

kschrank — Mon, 02 Apr 2012 19:18:26 +0000

Over the past few months, the Green Leadership Council (GLC) of the Naperville Area Chamber of Commerce has worked to connect Naperville businesses with community resources that are able to help them address energy usage and recycling issues.

First, the GLC introduced the City of Naperville to a community organization known as SCARCE (School and Community Assistance for Recycling and Composting Education). SCARCE has expertise on recycling and composting issues for organizations of all sizes, whether profit or nonprofit. SCARCE was able to conduct a waste audit of the City of Naperville’s downtown recycling operation at no cost to the City because of an education grant SCARCE received from the County of DuPage.

Lessons learned

• After slightly more than one year of operation, the approximately 30 Naperville businesses that use the downtown recycling operations are doing a great job recycling cardboard, and are ready for next steps.

Next steps

• Businesses are ready to ramp up their recycling efforts to include more paper products and possibly plastic and glass and metal containers.

• The recycling corral is big enough to add about ten (10) 65 gallon wheeled carts (toters) for the collection of aluminum cans & foil, steel cans, glass bottles and jars, plastic bottles and appropriate plastic containers.

• SCARCE is working to coordinate next steps and education outreach with the City of Naperville.

Second, the GLC helped spread the word about a meeting hosted by Lou Malnati’s Pizza of Naperville, and organized by SCARCE and NICOR. The meeting was for Naperville restaurant owners and managers who want to learn about recycling, food composting, and energy efficiency initiatives for commercial restaurants.

Lessons learned

• Naperville restaurants are excited about beginning food scrap composting. SCARCE continues to work with Lou Malnatis and five other downtown Naperville restaurants to get composting capabilities that are conveniently located.

• NICOR, which serves northern Illinois gas consumers, has significant funds to implement energy efficiency programs for business and residential building owners and operators.

• NICOR has energy efficiency initiatives specifically for commercial restaurants because they are known gas guzzlers. Some of the incentives apply to new ovens, boilers, pasta cookers and pre-rinse spray valves. For example, installing a low flow pre-rinse spray valve is estimated to save Naperville restaurants about $300 to $500 in the first year in reduced gas and water bills, after applying the NICOR rebate.

Next steps

• DuPage County has arranged for the GLC to tour North Central College’s food scrap composting operation. Contact the County at 630-407-6771 if you want to participate in planning compost routes in Naperville.

• SCARCE continues to work with downtown Naperville restaurants to develop a food compost scrap route. >.

• To get help with energy efficiency initiatives for commercial restaurants, call NICOR representative Kristen Van Kley at 312-755-9020, or click here.

Grappling with Materiality Issues, GRI Sustainability Guidelines, and CSR Reports

kschrank — Tue, 14 Feb 2012 20:14:06 +0000

The Global Reporting Initiative (GRI) is an international non-profit that promotes economic, environmental and social sustainability among organizations of all types. The third edition of GRI sustainability reporting and performance metrics is currently widely used by organizations around the world, especially among global companies. The GRI is moving towards a fourth edition (GRI4) of standards and metrics, and recently sought public comment on those topics. Sustainability Partners Inc. contributed comments to the GRI, based upon interviews with senior sustainability professionals who work for several major corporations based in the Chicago area. We’ve also held followup conversations with these companies to discuss the results of the public comments received. We understand that GRI is working to release the GRI4 in May 2013, so there is still time to be involved in their development. Check this link if you want to be part of this ongoing effort.

The companies interviewed by Sustainability Partners Inc. are global companies with significant experience in CSR reporting. What was most interesting is how frequently the topic of ”materiality” came up when it comes to CSR reporting. For example, companies are frustrated about spending resources trying to provide a thorough response for key performance indicators (KPIs) for standard disclosures, many of which are immaterial to the organization. Trying to respond thoroughly for each KPI puts organizations in the position of over reporting on issues that are not material or significant to the company or its stakeholders. From a stakeholders perspective, this approach is potentially wasteful and not very strategic, but can also lead to important priorities getting lost in the detail.

Publicly traded companies question how “materiality” thresholds under GRI reporting intersects with SEC reporting requirements that require disclosure of material environmental risk, including material risks related to climate change. At least one organization interviewed said that corporate risks related to climate change do not rise to the level of ”material” from a SEC reporting perspective, but the company spends significant resources to provide information for GRI key performance indicators related to its carbon footprint. This raises a question of whether stakeholders are really driving the CSR strategy. And, if a company releases a CSR report without a basic understanding of its carbon footprint, the common perception is that its CSR report is immature and such a report may be downgraded for lack of thoroughness.

A third question that involves ”materiality” is whether main-stream investors have been adequately consulted when it comes to setting priorities for the non-financial metrics contained in a typical CSR report. Do mainstream investors find CSR reports helpful? If CSR reports were to become integrated with financial reports, what would mainstream investors determine to be a “material” for reporting purposes? Companies do not want to spend time and resources providing information that is not important to their stakeholders.

It seems that continued guidance from GRI could be helpful here – guidance that acknowledges that companies are best positioned to determine what issues are material to their organization. Guidance can also influence organizations to include all primarily stakeholders in the CSR process. For most organizations, the primary stakeholders are going to be the customers or client, investors and employees. By ranking the CSR risks and opportunities identified by an organizations’ primary stakeholders, organizations can focus CSR strategic action With this type of direction, CSR report may mature into a shorter, more relevant report which is easier to digest.

Tomorrow is the Eat & Learn for Naperville Restaurants at Lou Malnati’s Pizza

kschrank — Tue, 31 Jan 2012 15:33:07 +0000

Naperville restaurants are invited to Lou Malnati’s Pizza in downtown Naperville on Wednesday, February 1st at 2 p.m. for pizza and an eco-workshop. NICOR and SCARCE will be on hand with practical ways to save energy and compost food scraps! Click here for details!

Summary of Energy Efficiency Programs for Illinois Building Owners

kschrank — Fri, 13 Jan 2012 16:47:24 +0000

Did you know that American homes use about 25% of all energy consumed in the United States? Did you know that commercial buildings use about 19% of all energy consumed in the United States? These statistics are provided by the American Council for an Energy Efficient Economy (ACEEE), a nationally recognized organization that promotes energy efficiency.

The ACEEE has recognized the State of Illinois as a national leader for implementing energy efficiency policies that result in real change. Because of Illinois’ energy policies, there is now a $150 million annual budget for state-wide energy efficiency initiatives for homes and commercial buildings. This is in addition to a one-time $25 million federal grant to an Illinois coalition know as Energy Impact Illinois whose purpose is to jumpstart energy efficiency upgrades in the Chicago seven county and Rockford areas, and help facilitate a long-term market.

Understanding that American buildings are responsible for so much of the national energy demand, Illinois lawmakers passed laws and funding mechanisms for programs that empower consumers with information that helps them reduce energy consumption. Illinois organizations – from electric and gas utilities, to non-profits and universities – are helping in various outreach efforts to inform Illinois building owners about options to reduce a building’s energy usage while maintaining comfort and convenience.

There are two drivers which determine how much energy is used at any given building: (1) the age and operation of electronic products from hair dryers and computers to appliances, furnaces and lighting; and (2) the age and operation of a building, its condition and construction.

Electronic Products. Currently available technologies and products provide the comfort and convenience people are used to, but use far less energy than older products. So when it comes time to replace any electronic product, home and building owners can save money and energy by choosing energy efficient products. One of the best ways to be sure that a product is energy efficient is to look for the Energy Star label on products.

There are rebates and other financial incentives to make the purchase of Energy Star products easier. The electric and gas utility providers listed below each have their own residential and commercial energy saving programs which include appliance and lighting purchase and recycling rebates, energy audits, retro-commissioning, and financing options that make large energy efficient upgrades possible. In some cases, utilities also offer training to contractors to perform the upgrades. Here are website links to energy efficiency programs offered by the major electric and gas utility providers in Illinois.

Building Condition. While the use and operation of electronic products contribute to a building’s energy load, so does a building’s age, condition and construction, and operation. Every building is unique, so an energy audit is the best way to understand what unique energy issues exist for a specific home or commercial building. A building energy audit can be as simple as an on-line interactive energy audit or the physical examination of a building with sophisticated equipment to pinpoint energy usage and loss issues.

Single Family Homes. When it comes to home energy audits, there are two terrific websites that help people understand how much energy is being used at home. Energy Impact Illinois provides outreach on energy efficiency programs in the Rockford and seven county Chicago areas. The website has an interactive home energy audit tool called Home EQ which calculates energy usage for a specific home address and compares it with similar homes in the neighborhood. One energy usage is calculated, Home EQ provides recommendations to reduce energy usage and identifies pre-qualified contractors who can provide the recommended service. Home EQ also identifies financial resources that can help pay for energy efficient improvements.

The Illinois Home Performance website has an on-line home energy audit tool that can be used for every home in the State. This energy tool also compares a specific home’s energy usage with neighboring homes, and it provides recommendations and identifies contractors to improve energy usage, as well as financial resources. In addition, Illinois Home Performance is implementing the Energy Star Home Certification Program for the State, which provides a process for homes to undergo a whole house energy upgrade and earn a Silver of Gold Energy Star Certification. Illinois joins the majority of other states that have implemented Energy Star Certification programs. According to Illinois Home Performance, this certification will soon serve as a third-party verification that identifies green homes in the Chicago-area Multiple Listing Service.

Commercial Buildings. It is worth repeating that commercial building owners should check the websites of their local electric and gas providers for energy efficiency programs and incentives. In addition, for building owners in Northern Illinois, Energy Impact Illinois is a website to watch. There are several important links on the website that identify opportunities for (1) owners of multi-family buildings, (2) non-profit and public building owners , and (3) owners of large commercial buildings . Energy Impact Illinois promises even more energy efficiency content for commercial buildings in 2012.

Finally, the Smart Energy Design Assistance Center (SEDAC), managed by the School of Architecture at the University of Illinois at Urbana-Champaign, provides energy assessment services and funding for public and private building owners who are customers of Amren, ComEd, Nicor Gas, North Shore Gas, and Peoples Gas. SEDAC also provides retro-commissioning training to the public building sector. Retro-commissioning is like giving a building’s mechanical operations a big tune-up. It is common for the cost of a retro-commissioning project to pay for itself in less than a year. To learn more about SEDAC, click here.

I originally wrote this article for the Illinois Environmental Council and it is reposted here with permission.

Overview of Naperville Smart Grid Project For Naperville Business Owners

kschrank — Mon, 02 Jan 2012 20:04:54 +0000

Please feel free to contact either Kate Schrank (kate@sustainabilitypartnersinc.org) or John Krummen (Jkrummen06@comcast.net) who co-wrote this article and are members of the Naperville Chamber of Commerce and are Ambassadors for the NSGI project.

This article provides an overview to the Naperville business community and members of the Naperville Area Chamber of Commerce about the City of Naperville’s (City) plan to modernize its $360 million electric utility network with a $22 million project to implement smart grid technology. As with any large project there is much more information available than can be offered here. The Naperville Smart Grid Initiative (NSGI) website operates as a hub of information for this project. Included on that website is the schedule for 14 open houses being held throughout the electric service area to help people learn about smart grid technology and its benefits.

Project Context

There are currently 27 million smart meters installed in homes and buildings across the U.S., with current deployment plans for another 65 million by 2015. In the State of Illinois, Naperville is the first municipally owned utility to implement smart grid technology, but ComEd (an investor owned utility) who serves 70% of the State of Illinois’ population, recently won approval from the Illinois Legislature to install smart meters for its 3.8 million customer base. So the City’s project is part of a much larger effort across the country to modernize the delivery of electrical service.

Project Parameters

The public electric utility of Naperville has undertaken a $22 million dollar capital investment project to upgrade the $360 million dollar utility’s distribution network. Of the $22 million, $11 million is from a 2009 federal grant from the U.S. Department of Energy. The remaining $11 million is from the City’s capital improvement fund. The City states on its website that none of the funding came out of property tax dollars.

This project will result in many heavy equipment upgrades to electric substations. For electric customers, the most visible upgrade will be the replacement of 57,343 analog electric meters with new digital meters. The main benefit of replacing the analog meters with digital meters is to build a closed loop, two-way communication capability between the electric utility and its customers. Current, one-way communication requires the utility to deliver electricity to customers based upon a best estimate of the amount of energy needed at any given time. This results in the utility overestimating supply needs because to underestimate would result in brown outs which are not acceptable to customers. As business people know, a strategy of oversupply is an expensive way to maintain service, for both the utility and its customers.

The new digital or smart meter will enable two-way, closed loop communication between the electric customer (demand side) and the utility (supply side). The two-way communication is based on Radio Frequency (RF-Cell phone) technology. The NSGI website contains the findings of multiple studies that show RF from a common microwave is 10,000 greater than that of a smart meter and orders of magnitude less than a cell phone.

Once the meter is installed, the meter will measure a customer’s energy demand or use and store that data in 15 minute intervals. The data is actually transferred to the utility about every 4 to 6 hours, with transmission taking just fractions of a second. This smart meter will enable the utility to better estimate electrical supply needs leading to reduced costs to supply electricity to customers. In addition, when power outages do occur, the utility will be able to pinpoint the location of the problem through technology, resulting in faster response. Also the smart meters will automate the billing process leading to reduced administrative costs.

Benefits
The City of Naperville understands that this is not only a green energy or a cost reduction project. It is also an economic development project. Most notable industries experts predict that commodity prices will increase over the next few years if not for the next few decades. Global demand for raw materials, water, and energy will outpace global supply, resulting in rising prices and shortages. Business will look for innovative ways to reduce costs via reduced energy usage. Business will not only look for internal process improvements, but will locate facilities where electrical power is cost competitive.

Multiple studies show that when businesses have information about energy usage, they begin to manage it. This usually results in at least a 5% to 10% reduction in energy usage and in many cases closer to 40%. The larger community of Naperville benefits because businesses, homeowners, and educators will have practical tools to teach and learn about energy consumption and conservation, and gain first-hand experience with emerging technologies and future careers.

Consumers’ Bill of Rights
The City of Naperville has adopted into its municipal code a Consumers Bill of Rights with respect to smart grid technology to address concerns that have been raised during the planning process for this project. The Consumer Bill of Rights is posted on the NGSI website and details the consumers rights to (1) be informed; (2) keep energy usage private; (3) choose from electric service options; and (4) data security.

Large Commercial Building Continues To Reduce Energy After LEED Certification

kschrank — Fri, 16 Dec 2011 20:30:13 +0000

This blog has been updated from my original posting that can be found on the Illinois Environmental Council’s website. Be sure to watch the YouTube video below to hear how the Merchandise Mart in Chicago has made significant energy usage reductions.

In 2005, the Merchandise Mart – one of the world’s largest commercial buildings – decided to find ways to improve energy usage in its massive 4.2 million square foot, circa 1930 complex of office, retail, showroom and trade show space. The “Mart” hired an independent contractor to conduct an energy audit of the complex to provide an independent perspective, and provide real benchmarks to determine success. The energy audit helped the Mart prioritize which measures to take in the short-term, which led to the Mart being LEED certified in 2007.

The Mart was a pioneer in LEED energy retrofit work when its project began. Since then, the Mart continues to find ways to reduce energy usage at its complex, while ensuring that occupants are comfortable and the aesthetics pleasing. The Mart’s energy audit continues to provide a roadmap for continuous energy improvements at the Mart today. The Mart’s most recent performance data shows that it has reduced overall building energy usage by 12%, and energy usage in the common areas has been reduced by 25%.

When it comes to conducting energy audits, each building is unique so a good energy audit is designed to account for the age, condition and quality of building construction, occupant behavior and processes, and local climate. The level of detail in an audit will be driven by the building owner’s goals, which can range from wanting to know how a specific building is performing to comparable buildings based on historic utility usage data, to comprehensive engineering analyses of a specific building’s performance. The Mart’s energy audit was the latter type.

Comprehensive analyses will include a study of the building envelope, which is the outside structure of a building (walls, ceilings, doors, windows and floors). Envelope studies include putting a building under negative pressure to allow additional tests to be performed that verify airflow and identify where insulation or other holes in the building envelope exist. For example, infrared cameras are often used to visually pinpoint where leaks and holes exist in a building envelope. Building systems, such as HVAC, appliances, lighting, and water heating and usage, are inspected and assessed. As with the Mart, supplementary metering can be done to focus on specific energy-consuming systems. Occupant behavior can really drive energy consumption in a building, so a comprehensive analysis will include inquiry sufficient to identify consumption patterns. The data are analyzed and included in a report, which can also include financial analyses for specific energy priorities. Building owners can expect to be required to provide return on investment (ROI) estimates in order to qualify for special financing for energy retrofit work.

The Mart found that incentives and rebates offered by local gas and electric utility providers provided real value for reducing the cost of energy projects. Illinois energy policies have resulted in utilities providing $150 million annually for state-wide energy efficiency programs for homes and commercial buildings. So be sure to check first with your local gas or electric utility provider to see how programs can help you get started with your own energy reduction project.

If your business is located in the Chicago-Rockford region, you should also visit www.energyimpactillinois.org. This new website was funded by a one-time $25 million federal grant to an Illinois coalition for the purpose of jump starting energy efficiency projects in the Chicago seven county area and Rockford. There are several important links on that website that apply to owners of multi-family buildings, non-profit and public buildings, and large commercial buildings.

Finally, the Smart Energy Design Assistance Center (SEDAC), managed by the School of Architecture at the University of Illinois at Urbana-Champaign, provides energy assessment services and funding for public and private building owner who are customers of Amren, ComEd, Nicor, North Shore Gas, and Peoples Gas.

Have global insurance companies concluded that climate change is real?

kschrank — Wed, 08 Sep 2010 15:37:49 +0000
I’m not an expert on insurance. I have the basic coverage many people have – life, property, health and car insurance. Like most people, I have insurance for real life scenarios that could happen and, if they did so, could cause significant hardship – scenarious such as car accidents, health issues, flood and storm protection. Think about how you use insurance in your own life when you read the attached article published by Environmental Leader. It explains that global insurance companies are advising the U.N. on risk management techniques related to the effects of climate change in developing countries. The article reports that 85% of all deaths related to natural disasters happen in developing countries, because developing countries are least prepared to protect against such events. http://bit.ly/a8LJcD Do you think this development suggests consensus among insurance companies that climate change is real?

Americans Seriously Misunderstand Home Life Energy Usage

kschrank — Thu, 02 Sep 2010 16:24:22 +0000
We need more surveys like this one sponsored by Columbia University’s Earth Institute, which will help educators, communicators, environmental groups and policy makers understand where individuals are lacking information to make informed choices about reducing home life energy usage. http://www.earth.columbia.edu/articles/view/2717 Adults in 34 states were quizzed about home energy reduction behaviors. The survey showed that adults seriously underestimate the value of their buying decisions to reduce home energy savings, such as purchasing new appliances and fuel efficient cars, and weatherizing our homes. Conversely, they overestimate the value of shutting off the lights when you leave a room. Ms Shahzeen Attari, lead author of the survey results, said people show a willingness to take one or two actions to address a perceived problem, but after that, their attention starts to fade. Behavior researchers call this the “single-action bias.” This survey, and more like them, can guide public outreach by all stakeholders looking to effect energy reduction in the U.S. If people will do only one or two things to reduce their own energy footprint, let’s make sure that people understand which actions benefit energy reduction most. .