2016 RETAIL ENERGY MANAGEMENT LEADERSHIP MODEL

2016 RETAIL ENERGY MANAGEMENT LEADERSHIP MODEL About RILA’s Retail Energy Management Leadership Model RILA’s Retail Energy Management Leadership Model...
Author: Meghan Waters
4 downloads 2 Views 2MB Size
2016 RETAIL ENERGY MANAGEMENT LEADERSHIP MODEL About RILA’s Retail Energy Management Leadership Model RILA’s Retail Energy Management Leadership Model is a roadmap to help retail energy managers optimize their energy programs.

Program Sponsors:

Strategy & Commitment

The Model is divided into six sections, as illustrated by the diagram to the right. It is intended to identify possible pathways to strong energy management programs in retail. The leading practices are currently only performed by a few companies at most, and not every company can/will achieve every leading practice.

How to Use the Model

Visibility

The Model is a tool that can be used for individual company and industrywide purposes. Retail companies can use the Model to: n Baseline

the maturity of their programs (contact [email protected] to receive a custom benchmarking report)

n Identify

the dimensions offer the highest leverage opportunities for improvement

Projects & data

Energy Consuming Systems

Resource investment

People & tools

n Refer

to RILA’s Retail Energy Management Resource Library for corresponding tools, case studies, and further opportunities for each dimension = program dimensions that were identified as “floodgate opportunities” where industry progress will also enable advancement in all other dimensions. These are also the Program’s 3-year focus areas.

Process to Develop the Model The Retail Energy Management Leadership Model was originally developed in 2014 with retailer input as well as review of existing tools like ISO 50001 and EPA’s ENERGY STAR Guidelines for Energy Management. The Model undergoes annual reviews by retailers, the U.S. Department of Energy (DOE) and U.S. Environmental Protection Agency (EPA) staff and contractors, and other energy experts. The Model is organized according to the Virtuous Cycle of Strategic Energy Management, a resource pioneered by MIT and Environmental Defense Fund. In an optimized organization, all components of the “virtuous cycle” function at full capacity to improve the performance of the energy consuming systems, generating maximum financial and environmental returns. Visit www.RILA.org/energy to learn more about RILA’s Retail Energy Management Program.

1

COMPANY’S ENERGY MANAGEMENT MATURITY

Note: These dimensions are solely intended to be possible pathways to energy optimization; the leading practice is currently only performed by a few companies at most; and not every company can/will achieve every leading practice. Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

• Setting aggressive Scope I, II, and III GHG reduction goals • Net zero store operations goal • Extending GHG emissions goals to supply chain/value chain • Goal to be supplied by 100% renewable energy

STRATEGY & COMMITMENT

1

Reduction strategy and goals

• Ad hoc efforts, no formal program • Annual internal goals based only on cost reduction

• Defined energy management roadmap with internal energy or greenhouse gas (GHG) reduction goals • Benchmarking against peer activities • Using standard metrics for measuring energy performance

• Executing on a public goal that is a relative energy or GHG emissions reduction target • Reporting to third-parties such as Carbon Disclosure Project (CDP) and pursuing recognition opportunities • Setting a goal to improve ENERGY STAR or other third party sustainability measurement score across full portfolio

• Comprehensive Scope I, II, and III GHG reduction goals • Using a balanced scorecard (people, planet, and profit) system for reviewing energy strategies and projects • Integrating supply chain/value chain into reduction strategy • Collaborating with industry peers to establish sector goals and initiatives

2

Corporate employee and vendor engagement

• No efforts to engage strategicallyrelevant corporate employees and vendors

• Training (one time or limited) relevant corporate employees and vendors with energy reduction opportunities within their own roles • Soliciting office energy reduction suggestions from corporate employees • Providing support for personal employee energy savings efforts (i.e. biking/public transit incentives, etc.)

• Hosting events for corporate employees to learn about energy reduction in their retail roles and in their home • Following internal communications plan to periodically update and engage corporate employees and vendors • Encouraging vendors to improve energy performance of their operations

• Hosting annual “Energy Summit” with all • Testing and actively partnering with vendors that impact energy consumption research groups or vendors to design • Integrating energy management next generation equipment training into onboarding and continuing • Energy performance evaluation education for all employees and vendors included in vendor selection • Collecting vendor energy performance data through internal questionnaires or a third party (ex. CDP Supply Chain) • Hold corporate office cross-departmental energy reduction competitions

3

Executive Engagement

• No stated corporate commitment to energy management

• Sharing energy success stories with Executive Team on an ad-hoc basis • EPA ENERGY STAR Partner and/or DOE Better Buildings Alliance member

• Sharing energy success stories with Executive Team on a quarterly basis • Executives reiterate corporate energy reduction goals directly to stakeholders

• Regular access to and visibility of Executives on energy management efforts • Executives refer to energy successes in some external communications • DOE Better Buildings Challenge member

• Energy performance shared by Executives in quarterly leadership updates to company • Some C-suite and board level incentives tied to environmental goals

2

Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

RESOURCE INVESTMENT

4

Energy team

• Either no designated energy team or • Energy manager (or team) with specific one person or small team responsible function to advance energy projects for energy management • Hiring external consultants or service • No explicit internal instructions to providers to help implement energy coordinate and fund energy investments projects or expansion of internal energy across the organization team to implement additional energy projects

• Multi-person energy team with division • Cross-functional team meeting • Working with universities, non-profits, of responsibilities periodically to identify and execute on etc. to supplement energy management • Accessing energy training and other energy management strategy resources with additional expertise educational resources to boost team’s • Hiring or leveraging Energy Service capabilities Companies (ESCO) to help implement • Documenting process to identify, design, energy projects select, and execute energy use reduction • Building design is approached as a system projects into existing stores

5

Engaging utilities

• No engagement

• Participating in utility-related events like EEI’s National Accounts meetings • Using some utility energy efficiency incentives • Identifying optimal rate schedules

• Developing working relationships with utilities • Proactively maximizing appropriate energy efficiency incentives

6

Leased store management (primarily applicable to retailers in malls)

• No internal (i.e. real estate, construction, legal) or landlord engagement on energy reduction programs

• Educating relevant internal • Developing and piloting energy stakeholders about the impact of energy efficiency-enabling “green lease” usage on operational costs provisions with relevant internal • Using stores with submetering and stakeholders consumption-based billing to prove • Working with construction to improve need for energy transparency and lease efficiency of standard build out spec language revisions design

• Developing working relationships with Public Utility Commissions • Implementing an energy procurement strategy that capitalizes on marketspecific timing & opportunity and renewables

• Partnering with utilities to develop retail-specific energy efficiency and renewables incentive programs or procurement offerings

• Coordinating and collaborating with landlords to deliver high efficiency box shell options in new stores to maximize efficiency of tenant fit out • Using lease adjustments to correct for split-incentives and/or installing submeters in all new stores • Periodically discussing energy opportunities (i.e. lighting, HVAC, solar, electric vehicles, etc.) with key landlords for all leases • Working with landlords to obtain common area energy data

• Member of collaborations acting to educate the retail real estate sector on the benefits of “green leasing” (ex. Green Lease Leaders) • Incorporating energy reduction measures and submeter installation in all new and existing lease agreements • Highly efficient standard build out spec design

3

Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

PEOPLE AND TOOLS

7

Energy Management Information System (EMIS)

• Basic alert, control, and analytic capabilities • Measuring and tracking energy on a store by store basis at the utility billing level

• EMIS included in new stores • Developing plans to deploy EMIS in stores, corporate offices, data centers, and DCs • Periodically reviewing some control setpoints, lighting control timers, etc. • Basic measures are available but not real time measures

• Implementing EMIS at all facilities • EMIS includes controls, remote monitoring and tracking for realtime usage, advanced alerts, analytic capabilities, and demand response

• Incorporating a decision tool to identify opportunities for energy reduction across full portfolio • ISO certified 50001 • Implementing a proactive maintenance program based on EMIS data to reduce energy waste • Automated Demand Response 2.0 capable

• Vertical integration of data from EMIS at operational level to enterprise reporting, benchmarking, and analytics

8

Measuring, tracking, and benchmarking

• No systematic measurement, tracking, or benchmarking program in place

• Using utility bill pay system and/or EPA’s ENERGY STAR Portfolio Manager to benchmark energy performance and identify anomalies • Using energy data to identify and analyze best and worst performing stores

• Measuring and tracking Scope I & II GHG • Measuring and tracking Scope III GHG emissions emissions, including vendor emissions • Tracking all possible properties in EPA’s • Using enterprise energy management ENERGY STAR Portfolio Manager and having software to perform automated data automatically uploaded via web services benchmarking, bill/rate analysis, • Tracking co-benefits to improved energy measurement & verification (M&V), and performance (like brand value, environmental advanced analytics performance, employee morale) • Employing energy modeling to clearly and accurately define the energy use in a space • Using EMIS submetering to measure, track, and benchmark asset-level energy performance

• Working with ENERGY STAR to improve platform and recruit/mentor other members • Integrating sales data, comp sales, foot traffic, etc. with energy data

9

Aligning incentives for energy performance

• Energy costs not considered in relevant business decisions

• Identifying alignment with internal partners to consider lifecycle costs including facilities, maintenance, real estate, store operations, construction, etc. • Awards/recognition for biggest contributions to energy conservation

• Store incentives and P&L statements • Departments can capture the majority tied to store energy use (as a of cost savings and reinvest in new controllable expense) projects or are provided dedicated long• Some departments can recuperate some term funding of the cost savings from energy projects • District/regional managers and • Some employee incentives tied to department heads’ bonuses recognize energy performance energy performance

• Corporate bonuses recognize energy performance and/or peer rankings • Evaluation of projects considers total cost of ownership as well as non-financial benefits of project implementation

10

Front line employee engagement

• Educating through basic environmental- • Developing store green team(s) or awareness signage in stores energy advocates to monitor on-site performance, reduction opportunities, and provide feedback to corporate energy management team • Including store managers and associates in energy audits

• Posting store energy consumption for • Energy awareness campaign throughout all store associates to compare their stores, including signage, orientations, store to other similar stores periodic trainings, competitions, • Leveraging online platform for in-store green teams, store meetings, employees to review store consumption scorecards, newsletters, etc. and submit ideas to reduce use • Providing collaborative best practices • Providing support for personal employee platform for high-initiative employees energy savings efforts (i.e. biking/public to receive recognition while sharing transit incentives, etc.) best practices with colleagues

• Training employees to educate customers about company’s energy/ sustainability efforts

4

Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

PROJECTS & DATA

11

Financial management

• Limited interaction with finance team (e.g. only for project approval) • Simple ROI used to evaluate potential projects • Energy projects held to stricter payback requirements than other projects

• Allow use of utility & government rebates and incentives for capital improvement projects • Considering energy reduction projects as part of annual capital planning • Communicating energy reduction in terms of the bottom line • Project proposals that meet minimum internal finance requirements are likely to be funded

• M&V designed to track all financial benefits and strengthen future business cases • Considering ROI, internal rate of return, hurdle rate, net present value, energy price growth expectations in energy strategy and projects • Strong working relationship with finance team; present energy efficiency projects as investments

• Formally integrating finance team into energy management decisions • Special fund to periodically test new energy reduction strategies/ technologies • Developing a process with the finance team to quickly scale technologies once proven in successful in pilots • Evaluating alternative internal and external financing models (beyond rebates & incentives)

• Deploying innovative internal and/or external financing models • Considering environmental key performance indicators (KPIs) like GHG emissions • Projects which exceed the internal ROI are funded through incremental debt financing

12

Systems procurement

• Operational costs/energy costs not considered in procurement decisions

• Some consideration of total cost of • Teams that procure energy consuming ownership in procurement decisions and equipment consider total cost of negotiations ownership and it often influences purchase decisions • Procuring ENERGY STAR Certified for all qualified products

• Considering energy costs as an integral component of vendor and initiative valuation

• Procurement business rules require net reduction in GHG emissions

13

Building auditing, re-tuning, and retrocommissioning

• No comprehensive building re-tuning strategy in place; only re-tuning buildings as issues arise

• Walk-through energy audits on ad hoc basis • Include utility-performed energy audits as part of routine business reviews with national account reps.

• Implementing portfolio wide re-tuning and replacement strategy • Performing regular retrocommissioning on buildings and using results to judge and motivate GC/ developer/ builder performance

• Continuously re-tuning building systems • Working with landlords to ensure common areas are periodically re-tuned

• Strategy in place to periodically audit and re-tune stores, corporate offices, data centers, and DCs to identify and act on reduction opportunities

5

Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

VISIBILITY

14

Reporting & communicating

• Reporting internally to relevant stakeholders

• Energy content in public CSR or Sustainability Report • Ad hoc reporting to field and corporate staff on energy strategies and successes • Sharing lessons learned and success stories with other organizations at sustainability or energy conferences • Promoting third party recognitions (e.g. DOE or EPA awards, Platt Global Energy Awards, inclusion in Dow Jones Sustainability Index, etc.)

• Reporting externally to CDP or other formal channels • Framing success stories in terms of profits generated, costs saved, risks reduced, and/or competitive advantages created • Generating energy scorecards to compare buildings • Creating and using an executive energy dashboard

• Acting on benchmarking data to target energy performance improvements where most needed • Commissioning third-party verification of energy savings/GHG reduction • Hosting a company newsletter, blog, and/or social media dedicated exclusively to energy • Comprehensive energy communications strategy

• Developing annual integrated financial and sustainability reports • Using SASB standards when preparing annual 10-K filings

15

Consumertargeted education

• No consumer facing energy messaging

• Messaging on website and Sustainability or CSR Report

• Basic in-store signage about company’s energy management efforts • Social media used to occasionally share energy success stories and tips

• In-store signage and other channels to promote company’s efforts (in-store intercom announcements, circulars, website, etc.) • Educating store associates to articulate energy/environmental strategy to consumers

• Messaging to help consumers reduce their energy usage • Promoting/providing alternative transportation to stores

16

Collaborative involvement

• No involvement in collaborations

• Joining results-oriented groups like RILA’s Retail Energy Management program or DOE’s Better Building Alliance

• Actively sharing practices, developing • Partnering with NGO(s) to identify case studies, supporting peer companies improvement opportunities

• Identifying opportunities for and actively develop new collaborations

6

Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

ENERGY CONSUMING SYSTEMS

17

Lighting

• Periodically reviewing lighting options

• Using T8 fluorescents for interior lighting • Using LEDs in new construction for all exterior and sign lighting • Occupancy sensors where appropriate in new construction • Testing in-store high performance lighting and developing rollout plans • Implementing centralized control and monitoring

• Implementing portfolio-wide high performance lighting rollout where appropriate • Merchandising and energy team coordination in lighting design • Retrofitting site and sign lighting with LEDs • Retrofitting with occupancy sensors • Eligible for EPAct tax deductions due to level of light power density

• Implementing high performance lighting throughout stores, corporate offices, data centers, DCs, and parking lots • Daylight harvesting strategy in place • Building and space designs are optimized to reduce lighting use and follow Illuminating Engineering Society (IES) recommended practices

• Piloting next gen systems that integrate the lighting with other energy consuming systems • Working with vendors of other in-store energy-consuming devices (e.g. vending machines) to reduce lighting load of their systems

18

Heating, Ventilation, and Air Conditioning (HVAC)

• Periodically proactively review higher efficiency HVAC options

• Testing new higher-efficiency HVAC units, O&M practices, and Variable Frequency Drive (VFD) retrofits • Implementing a quality maintenance program following ASHRAE/ACCA Standard 180

• Developing roll-out strategy for highest efficiency replacement and retrofit options • Right sizing of HVAC tonnage based on heat loss/heat gain calculations • Economizers, CO2 sensors, and RH sensors to inform runtimes and set points • Performing duct sealing projects to minimize air leakages and accompanying energy waste.

• Highest efficiency HVAC installed throughout corporate offices, stores, data centers, and DCs • Implementing an active HVAC asset performance tracking program and efficient operational practices • Periodically reviewing newest technologies

• Working with vendors to define next generation specifications for integrated HVAC-lighting-controls systems

19

Plug loads

• Inventorying the in-store devices that consume plug energy (e.g. vending machines, store displays)

• Installing monitoring and controlling • Tracking device energy usage across devices for plug-in devices (e.g. vending stores to benchmark devices and misers) identify alerts

• Requesting energy saving devices from vendors • Using a mobile application to remotely turn on/off plug loads

• Working with device vendors to develop technologies that consume minimal energy necessary for functionality, or to completely eliminate the need for energy

20

Energy storage, generation, and demand response

• No energy storage, generation, or demand response programs in place

• Purchasing renewable energy credits to offset a portion of electricity purchases • Installing a few onsite solar installations using Power Purchase Agreements (PPAs) • Implementing a demand response program

• Testing a variety of onsite renewable • Implementing onsite and offsite energy technologies at all facilities renewable generation strategy and • Developing a renewables strategy, including maximizing renewable energy procured a financial plan and prioritization of to progress towards 100% renewable opportunities by state/region, participation energy supply in community solar, remote net metering, • Testing fuel cells, geothermal, battery and virtual net metering storage, phase change materials, or • Renewable Energy Credit (REC) other storage and generation systems procurement policy • Maximizing use of demand response

• Developing renewable energy purchasing cooperatives with landlords and other retailers • Making large renewable energy purchases • Exceeding 100% of energy supplied by renewables

7

Dimensions

Initiating

Progressing

Excelling

Leading

Transforming

ENERGY CONSUMING SYSTEMS (continued)

21

Refrigeration

• Aware of refrigerant types in portfolio & associated energy factors • Purchasing only base model efficiency refrigeration

• Doors are used on 80% of all low temp cases • Choosing some refrigerant types in portfolio based on associated energy factors • ENERGY STAR procurement policy for all qualified products • Routinely cleaning compressors and other components that can impact efficiency

• Doors are used on 100% of low temp • Using doors on 80% or more of medium- • Piloting stores using natural cases temperature refrigerated display cases refrigerants or alternative approaches to • Using doors on 50% or more of medium(excluding fresh bulk produce) dramatically lower the climate impacts temperature refrigerated display cases • Anti-sweat control in all cases associated with direct emissions of (excluding fresh bulk produce) • Utilizing demand control kitchen refrigerants • All compressors are remotely located ventilation (DCKV) outside the store to avoid waste heat issues (or waste heat is vented/piped outside) • Controlling anti-sweat heaters in new cases

22

Food Service

• Some attention paid to operational procedures, like ensuring walk-in doors don’t remain open

• Starting to focus on operational procedures • Installing at least one piece of high-efficiency (e.g., ENERGY STAR) equipment • Official guideline to operational procedures

• A number of high-efficiency (e.g., ENERGY STAR) equipment purchases • Planning for continual improvement through retrofits or replacements

• Build out specs require nearly all equipment to be of highest-available efficiency • Benchmarking energy metrics are extended to deli/food service areas and energy efficiency measures are identified, approved and adopted

23

Architectural and shell program

• Have a standard build out document with energy specs • Meets local, state, and federal codes

• Build-out specs includes efficiency requirements for HVAC, lighting, etc.

• Energy team is a decision making partner on new store construction • Using third-party standards such as LEED for Retail, LEED Volume, LEED for Commercial Interiors, BREEM, etc. • Using weather stripping and double pane windows where applicable • Using ENERGY STAR by Design tool

• Building design is approached as • Building design is approached as a system and energy is maximized a system and energy points are achieving 20% or better than ASHRAE maximized achieving 50% or better code by design than ASHRAE code by design • Building and construction processes use • Commissioning data is integrated an enhanced commissioning process on with the EMS program to provide every building performance and startup data tracking (for incorporation into benchmarking programs)

• Testing next gen food service efficiency technologies with vendors • Actively using energy information from benchmarking or EMIS to analyze continuous opportunities to reduce energy

8