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RMI - Rocky Mountain Institute

It’s the IRA’s First Birthday. Here Are Five Areas Where Progress Is Piling Up.

The Inflation Reduction Act promised an unprecedented wave of clean energy investment. One year in, here’s where we’re seeing progress.

Originally published on August 16, 2023 at RMI.org: https://rmi.org/its-the-iras-first-birthday-here-are-five-areas-where-progress-is-piling-up/

By  Hannah Perkins,  Adam Aston,  Vindhya Tripathi

“Unprecedented.”  “A landmark.” “The Super Bowl of clean energy.”

Those are just a few of the superlatives that hit the headlines when the Inflation Reduction Act (IRA) was signed into law on August 16, 2022.

The act’s passage came as a surprise both politically — emphasizing lower energy costs helped the bill clear years of oppositional brinksmanship — and for its unprecedented scale. Toward the goal of shifting the US grid to 80 percent clean electricity and cutting climate pollution by 40 percent by 2030, the act mobilized an estimated $370 billion in federal incentives.

A year in, the early fanfare has resolved into unprecedented progress. Twelve months after passage, the IRA’s impact — in industrial investment, new jobs, and other economic activity — already exceeds early estimates. To date, we have seen:

  • $278 billion announced in new private clean energy investments.
  • Projects announced accounting for 170,000 new jobs.
  • The availability of $70 billion was announced in grants, rebates, and other non-loan funding.

And while politics could yet alter its trajectory, the impact to date has been weighted towards traditionally Republican-leaning regions, a bias which may ensure its longevity in years to come. Given the rapid uptake, Goldman Sachs earlier this year upped their estimate of public IRA investment over the next decade to more than $1 trillion, with private sector spending potentially a multiple of that.

By design, incentives are drawing this investment widely across the United States, with a focus on disadvantaged, low-income, and energy communities. RMI estimates that, if they take full advantage of the IRA and adopt clean energy at the pace and scale needed to meet national climate targets, by 2030, each state could see:

  • Cumulative investment of from $1 billion (for smaller states) up to $130 billion (for the largest beneficiaries).
  • Per capita new investment of $1,500 to $12,000.
  • The creation of 2,000 to 100,000 new jobs.
  • Lower healthcare costs and impacts by avoiding 4,000 to 300,000 negative health outcomes avoided.

On the ground, IRA incentives have already translated into a rush of announcements and projects spanning regions and industries, including both legacy and cleantech sectors. On the advent of the IRA’s first birthday, here’s a rundown highlighting the breadth of this progress.

Manufacturing boom

Nourished by the IRA, manufacturing announcements have mushroomed across the country. While heavy on electric vehicles (EVs) and batteries, the greenfield factories and upgrades also include wind and solar sites, along with semiconductors, electronics, and others. The new capacity promises to boost US energy security and independence by reshoring key supply chains and strengthening US competitiveness as global leader in clean energy technologies. To date, 272 new clean energy projects have been announced, including:

  • 91 new battery manufacturing sites.
  • 65 new or expanded EV manufacturing facilities.
  • 84 wind and solar manufacturing announcements.
Electrifying transportation

Globally, sales of internal combustion vehicles peaked in 2017, and are now in long-term decline, according to Bloomberg NEF. As older cars and trucks are retired, the world’s combustion vehicle fleet will start to shrink after 2025. In the United States, the IRA is supercharging this shift, with incentives that span from electric school buses to battery factories and new charging infrastructure:

  • For consumers, the IRA offers rebates on new and used electric vehicles, peaking at $7,500. Juiced by this incentive, US sales of new EV passenger cars are expected to surge by 50 percent in 2023 to over 1.5 million, the White House estimates. The incentives will help heavier vehicle classes electrify more quickly too. By 2032, RMI estimates that the share of EV sales using IRA credits will be close to 100 percent for Class 1–3 commercial fleets, and 84 percent for medium- and heavy-duty trucks.
  • To supply incentive-amped demand, global automakers such as GM and Ford and their battery partners are leveraging the act’s $45-per-kilowatt battery production tax credit to turbocharge construction of new plants across a “battery belt,” stretching from Michigan to Georgia (see map, in above section). Increased output of US-made batteries is, in turn, helping carmakers boost output of popular EVs, such as Ford’s F-150 Lighting electric pickup (image, top of page).
  • IRA also provides funding for the federal government to lead by example. The US Postal Service(USPS) received $3 billion for clean vehicles. And starting in 2026 the post office will buy only EVs.
  • RMI analysis shows IRA credits will help electric passenger cars and light-duty trucks achieve total cost of ownership (TCO) parity with ICE vehicles between 2023 and 2025. Without the IRA credits, EVs would have reached TCO parity with ICE vehicles between 2024 and 2027.
Total Cost of Ownership parity for EVs and ICE passenger cars chart
Greening buildings

Buildings account for around a third of US emissions, making it one of our largest, most complex sectors to decarbonize given the age, diversity, and costs to retrofit America’s stock of millions of buildings. The IRA is tackling this challenge on multiple fronts:

  • Guidance on funding for the Home Energy Rebate programs is being rolled out and has generous carve-outs for low-income households. States are currently designing programs based on this guidance to help consumers save money and live more comfortably. The first state programs could be rolled out as early as the end of this year.
  • Appliance efficiency standard programs like CEE and ENERGY STAR, which some IRA incentive programs rely upon, continue to align with decarbonization efforts that ensure the most efficient HVAC systems and appliances are installed in homes across the country.
  • New HUD programs prioritize healthy, efficient, electrified retrofits for affordable housing HVAC and appliances; more than $800 million is available and funding from these programs can’t go towards in-unit fossil fuel appliances.
  • The General Services Administration (GSA) — which oversees the federal government’s vast portfolio of buildings and properties — is using $1 billion of IRA funding to shift federal facilities towards electrification, with near-term plans to electrify over 100 buildings, including one of their largest, the Ronald Reagan Building in DC.
Decarbonizing electricity

Clean electricity is essential to decarbonize the wider US economy, whether to charge EVs and power greening buildings (see above), or to decarbonize industry (below). The shift is advancing steadily. In the first five months of 2023, wind and solar produced more power than coal, a first for the US. The IRA is continuing this shift:

  • Commercial solar is on pace to grow by 12 percent in 2023, and over the next seven years, we expect twice as much wind, solar, and battery deployment as there would have been absent the IRA.
  • The IRA-linked credits reinforce renewable powers’ long-standing price edge over gas- and coal-fired generation, an advantage which endures despite some demand-led inflation in the price for new solar and wind.
  • With IRA funding, USDA is making the largest investment in rural electrification since the New Deal — nearly $11 billion for rural electric co-ops. In particular, the Empowering Rural America (New ERA) program gives rural electric cooperatives an unprecedented opportunity to modernize aging grid infrastructure to maintain reliability, lowering costs for members and reduce emissions.
  • Michigan’s largest investor-owned utility, DTE, filed the first resource plan in the country that attempts to demonstrate the IRA’s intended changes to the economics of clean energy, projecting $500 million in savings for customers over 20 years. The proposal includes building 15 gigawatts (GW) of new solar and wind, improving DTE’s exploration of battery pilots, and moving up the retirement of the Monroe Power Plant – the fourth largest coal plant in the US.
  • Energy Infrastructure Reinvestment announced funding for solar and storage in Puerto Rico, replacing a retired coal power plant.
Transforming industry

Steel, cement, petrochemicals, and other hard-to-abate heavy industries pose a special challenge to decarbonize. For now, many rely on raw materials and/or high temperatures that only fossil fuels can affordably deliver at scale. The IRA aims to scale up affordable alternatives — such as hydrogen which, if implemented cleanly, offers a clean alternative — along with greener raw materials and recycling options:

  • Incentives for industry and hydrogen have had a big impact on economic analyses. Many projects have been announced, focused on advancing US global competitiveness. Policies are meant to drive applications and interest in first-of-a-kind projects and hubs demonstrating industrial decarbonization opportunities.
  • From the IRA and Bipartisan Infrastructure Law, the Office of Clean Energy Demonstrations (OCED) has been allocated $6.3 billion for Industrial Demo Grants. OCED funds will de-risk technologies that are not yet demonstrated on a commercial scale.
  • A range of tax credits is being clarified that will spark investment. For hydrogen, guidance on the Hydrogen Production Tax Credit (45V) is forthcoming. And the  Advanced Manufacturing Production Credit (45X) will unlock a major buildout of the lithium-ion battery supply chain, stationary storage manufacturing, and solar and wind supply chains.
  • Likewise, guidance has been released and the first round of applications reviewed for the Advanced Energy Project Credit (48C), which offers $4 billion for projects that expand clean energy manufacturing and recycling, expand critical minerals refining, processing, and recycling, and reduce emissions at industrial facilities. The U.S. Energy Department’s roster of funding opportunities, among other things, prioritizes heat pump manufacturing, signaling a clear shift towards supporting beneficial electrification.
Finance

The act has also unlocked financing via the reform of tax credits and innovative financing that prioritizes climate-friendly investment in historically disadvantaged communities:

  • For the first time, the IRA widens access to investment and production tax credits (ITCs and PTCs) for non-taxable entities, such as states, local governments, coops, and non-profits that in the past had little or no way to use the credits to finance new renewables. Historically, constrained demand for tax credits has limited the scale of ITC and PTC financing. For instance, RMI analysis of 2019 financial disclosures found that US investor-owned utilities had aggregate tax liabilities sufficient to build less than 4 GW of new solar and storage per year, barely enough capacity to replace one or two coal plants. Later this year, Treasury will release final guidance for organizations to tap into these direct pay and transferability options.
  • The Notices of Funding Opportunity (NOFOR) for the Greenhouse Gas Reduction Fund’s three grant competitions are now live, with deadlines in September and October. These grants will be disbursed in 2024, capitalizing a national network of clean energy financiers who will be focused on mobilizing private capital at scale to fund emissions-reducing projects, especially in low-income and historically disadvantaged communities.
Looking ahead

The IRA is not only the most ambitious climate bill in US history. It is one of the most ambitious and complex efforts at economic and industrial reinvestment ever. By these standards, the progress the act has already made is enormous, but years of work — and meaningful obstacles — remain to fully deploy the IRA at the pace and scale needed to reach climate targets.

Chief among these obstacles is permitting. As project timelines stretch into the years — whether to connect renewables projects onto the grid, or site new critical mining and industrial facilities — streamlining the thicket of overlapping regulatory and administrative approvals is emerging as a make-or-break challenge for the US energy transition.

Despite challenges in implementation, the hundreds of announced projects and hundreds of billions of dollars in investment show the energy transition is out of the starting gate and gaining speed.

The challenge is increasingly shifting to subnational players — such as states and cities as well as businesses and non-profits — to mobilize the funding the IRA has unlocked. Ultimately, the IRA’s full potential will be limited only by our own ambition to realize a clean energy future.

GreenBiz

The challenges of building electrification — or, the parable of flameless wok hei | GreenBiz

By Adam Aston

Consider the humble wok. Little more than a wide metal bowl, a good wok can transmute high heat and simple ingredients into sublime flavors. Peek in the back of your favorite Chinese hole-in-the-wall and you may spy a chef calmly working the mix as flames engulf the wok and powerful jet burners roar below. A chef can spend years perfecting this fusion of fire and heat, oil and spice — or wok hei, the “breath of the wok.” 

Elemental as they may be to Chinese cuisine, gas-fired woks are wildly inefficient. More of their heat is wasted than is used. Harmful combustion byproducts, such as carbon monoxide, can spike to levels far higher than allowed by safety codes. And much of the excess cooking heat radiates beyond the kitchen, boosting costs to cool and vent neighboring spaces.

The tension between gas-fired woks’ unique capabilities and the challenge of finding a good substitute given their outsize climate footprint is evocative of the wider challenges to decarbonize commercial buildings. And the urgency to find workable solutions is rising. 

More regions are advancing plans to curtail natural gas, a powerful greenhouse gas. Since 2019, when Berkeley, California, became the first U.S. city to pass a ban to discourage the use of natural gas in new homes and buildings, big cities including Denver, New York, Seattle and San Francisco either have introduced or approved similar rules. 

Homes and businesses account for about 13 percent of U.S. greenhouse gas emissions, with a large share of that coming directly from the combustion of natural gas to cook food, fire furnaces and heat water, as well as to wash and dry laundry. Methane — the main ingredient in natural gas which frequently leaks — traps 80 times more heat than carbon dioxide in the atmosphere. Curtailing the installation of new natural gas capacity, let alone retrofitting the millions of buildings that rely on it today, amounts to a monumental challenge. 

But the consensus view from a group of building professionals who gathered virtually for VERGE Electrify last month reflected progress for electrification. Efforts are advancing, whether for new construction (easier), retrofits (harder) or even restaurant electrification (among the hardest) — including, yes, those woks. Here are some highlights:

Bigger, taller, better buildings. Just five or 10 years ago, green building pros frequently faced fundamental doubts about electrification, those “Can it be done?” sorts of questions. “We’ve passed that,” said Shawn Hesse, business development director at the International Living Future Institute (ILFI), a nonprofit that established the Living Building Challenge in 2007. “Today we get questions about scale and complexity.” From tens of thousands of square feet a few years ago, “We’re seeing projects come through that are a million square feet or more today.” 

Advancing ambitions. In that earlier era, advanced buildings often were at the bleeding edge of technology. Milestone net-zero energy projects helped to prove viability, refine learning and inspire further advances. “We’re not being guinea pigs anymore,” said Calina Ferraro, a principal at Integral Group’s San Diego office, “we’re building taller and more challenging facilities.” At one pioneering project, Seattle’s self-powered Bullitt Center, “Our main goal was to be a replicable model,” so others could follow in its footsteps, said Jim Hanford, a principal at Miller Hull, which designed the building. To boost its solar potential in cloudy Seattle, the center’s distinctive solar canopy cantilevers out beyond the building’s edges. 

Integration drives innovation. Early successes opened the door to more ambitious building system integration and higher overall performance goals, said John Elliott, chief sustainability officer at Lawrence Berkeley National Laboratory (LBNL). By setting whole-building performance targets — instead of just trying to beat energy codes — LBNL’s newest high-performance building achieves deep efficiency, using a little less than a third of the energy of the facility it replaced. “We integrate the building to a campus-wide operating system and build applications on top of that,” Elliott said. “We’re seeing a drastic increase in our ability to scale energy management and be much more innovative.”

Good enough can still be great. Keep in mind that not every project can hit the high bar of complete electrification — and that’s OK. Whether to score certification or hit a standard, a “kind of tunnel vision” can take over on some projects, Ferraro noted. “Some feel that if we can’t hit that, then we’re going to scrap it.” Such perfectionism can derail good-enough approaches that take a step in the right direction and set the stage for greater impact later. For example, quicker upgrades that reduce demand — such as lighting improvements — cut overall building demand load, making electrification easier when it happens.

Incrementalism accelerates retrofits. In fact, step-by-step incrementalism is often the only way existing facilities can be electrified. At San Francisco International Airport (SFO), the challenge of financing upfront conversion costs, questions about technology maturity and the staggered timeline of tenant lease renewals are just a few variables influencing the rollout of the airport’s complex electrification plans across a campus of 103 buildings, according to Amy Nagengast, energy program manager at SFO. 

An audit of its menagerie of hangers, mechanical facilities and passenger spaces is giving SFO a deeper understanding of the challenge ahead. Most of the airport’s energy (56 percent) already comes from electricity; natural gas supplies 44 percent. And of all the buildings using natural gas, four-fifths are tenant-occupied. “We’re really trying to figure out what equipment uses that natural gas,” said Nagengast, along with where it’s located, what electric alternatives are available and how best to finance a conversion. The audit is helping SFO sequence a conversion plan for both its own facilities and those occupied by tenants.

Electrifying restaurants is getting easier. SFO found that among its food and beverage tenants, natural gas consumption was concentrated in a short list of kitchen equipment: deep fryers, ovens and ranges. Swaying those restaurants to electrify is as much about education as it is about picking the best alternative gear. 

Once chefs start using electric induction ranges, they tend to like them, said Christopher Galarza, a pro chef who has electrified commercial kitchens and now runs Forward Dining Solutions. But preconceived beliefs can make conversion tough: “Chefs are, by nature, stubborn. We don’t like change.” Some of those doubts are founded on past experience, from underpowered ’50s-era electric coil stoves to vendors that can’t yet support the latest induction cooktops. 

But today, commercial kitchen suppliers have rolled out a full range of like-sized electric induction gear, which by many measures are better than their gas counterparts. Since electric induction cooktops are so efficient, much less energy is wasted. Food can cook more quickly and more consistently, thanks to more precise temperature control. And because kitchens are cooler overall, staff are less stressed and diners can be brought in closer to the cooking experience. Even skeptical kitchen vets are often “blown away by how this equipment can improve the restaurant experience,” Galarza said.

A CookTek commercial induction range. Via Cooktek.com.

About those woks

For all the advantages electric induction offers, development of new cooking equipment has followed a familiar arc. Early commercial induction stovetops and ovens arrived at high prices, beset with occasional performance glitches. Increasing scale is helping suppliers to work out those kinks, improve reliability and drive down costs.

Today, you’ll still find more natural gas cookers in supplier catalogs, but electric induction options are multiplying as prices fall and more chefs and restaurant managers discover their sometimes surprising advantages. Electric induction deep fryers, for example, use about half the oil of gas-heated versions, and the oil can last days longer. 

Woks have been trickier to convert but are tracing a similar path. When placed on a flat induction surface, too little of the wok heats up. The solution? A design that nestles the wok in a concave induction cavity delivers all of the heat — if none of the flame — using a fraction of the energy.

A quick scan of commercial kitchen supply houses shows induction woks remain costly but the price tags are coming down — lately to around $2,000 per station, about twice the price of a conventional pro rig. 

What’s next?

Don’t worry — your favorite stir fry isn’t going away. The parable of the wok illuminates an uneven path ahead for wider electrification. Change is hard and will take time, but it is underway. The technology is increasingly ready, but it will be pricey at first, which can make convincing skeptical stakeholders — from wok hei masters to big property developers — that much tougher. 

For their part, property developers are finding that as the barriers to electrification shrink, priorities are changing. “I would frame it as: What’s the cost of not electrifying?” said Becca Rushin, vice president of sustainability and social responsibility at Jamestown, a global real estate investment and management company. “In the grand scheme, the increased costs of electrification ends up being incremental. And you’re insulating yourself from the transition risk of being unprepared when legislation is passed.”

Published at GreenBiz.com on June 7, 2021. See the original here: https://www.greenbiz.com/article/challenges-building-electrification-or-parable-flameless-wok-hei

GreenBiz

How tenants continue to press for greener commercial buildings, despite COVID-19 | GreenBiz

Manhattan’s once incandescent skyline is still dimmed, its office buildings emptied of workers. And Silicon Valley’s corporate campuses remain islanded, surrounded by seas of empty parking lots, as a nation of commuters continues to log in from home. 

The COVID-19 pandemic has altered office life — and the commercial building sector — in ways few could have dreamt of just a year ago. Yet as companies begin to map out tentative plans for a post-pandemic return to cubicles, the emphasis on greening those buildings hasn’t receded.

If anything, industry leaders say, COVID-19 has intensified the urgency of making buildings more energy efficient and healthy for workers. 

For Workday, with some 12,300 employees worldwide, decisions are still being made of how and when to return to its mix of owned and leased office spaces. But this hasn’t diminished the software company’s plans to add onsite solar panels and battery storage at its headquarters in the Bay Area in California.COVID-19 has intensified the urgency of making buildings more energy efficient and healthy for workers.

“Our focus on sustainability in our office buildings has remained strong. Leadership agreed we should be making this a priority and gave us their full support to make our buildings more environmentally friendly,” said Erik Hansen, Workday’s director of sustainability at a breakout session during GreenBiz Group’s clean economy conference last week, VERGE 20.

Landlords are seeing similar trends. “My tenants are very concerned about the erosion of environmental gains because of COVID,” said Sara Neff, senior vice president of sustainability at Kilroy Realty Corp., a Los Angeles-based landlord and developer with properties in San Diego, Los Angeles, the San Francisco Bay Area and the Pacific Northwest. 

It’s not just renewable energy anymore

Tenant concerns go well beyond energy issues. “Tenants are worried about things like, ‘What happens to our scope 3 emissions when nobody takes public transit? What happens to building energy consumption if we are constantly running the ventilation systems? What happens when our waste diversion numbers tank because we’re throwing away so much PPE and are back to single-use plastics in our kitchens?’” Neff added, referring to recent client conversations. 

“But nobody has backed off,” she added. “We’ve had [tenant] companies make new commitments since COVID began.”

As more companies engage in this process, they’re learning that making green upgrades can be more complicated when they lease, rather than own. Historically, inflexible, standard lease terms can make it difficult for a tenant to influence green building factors such as the kind of energy their landlord taps into, or even accessing detailed data on resource consumption. Workday has found that when setting up offices in multi-tenant buildings, negotiating technical lease terms early offers the best opportunity for success.

Workday has found that when setting up offices in multi-tenant buildings, negotiating technical lease terms early offers the best opportunity for success. “It’s best to have a dialogue with the landlord early on — while the lease is being negotiated — so that key language about procuring renewable energy can make it into the contract,” said Hansen.

The more tenants push, the more landlords can begin to drive change. “When a tenant asks about [things such as renewable energy or energy performance data] that’s when landlords start hiring people to run sustainability programs. Investments start getting made,” said Neff. “I can’t emphasize enough the importance of asking these questions and getting key terms into the lease.”

Rising expectations

Sure enough, tenants are beginning to do so. Momentum for change has been building since before COVID-19. “Starting 12 or 18 months ago, we started to see tenants really push us, and to collaborate on environmental projects, which has been great,” said Neff. 

As she sees it, tenants’ expectations have increased as more companies staff up to support their sustainability commitments. “Some of our big tenants are just now starting to hire heads of sustainability, so their sophistication is rising. Tenants who have been on the sidelines are now in the game,” she explained.

With tenants such as Workday and landlords such as Kilroy getting smarter about green building upgrades, gains can compound as trust deepens. “There tends to be more transparency and collaboration with landlord-tenant green building transactions,” said Rob Federighi, vice president of sales at Edison Energy, a global energy advisor based in Newport Beach, California. 

In practice, to make green building investments succeed, landlords need the right tenant, and vice versa. Tenant commitment can help landlords finance the investment necessary for major upgrades, such as solar plus storage. Tenants, meanwhile, need landlord support to achieve the sorts of zero-carbon energy goals more and more are committing to, Federighi added. 

Resources to help you green your lease

For both tenants and landlords exploring greener leases, libraries of standard lease terms have been developed and refined to help avoid common pitfalls. “There’s no need to reinvent the wheel,” said Neff. The panelists recommended these resources: 

And as more players steer into this space, Neff emphasizes that climate urgency dictates pragmatism. For instance, green project developers should not shy away from offsite renewables. There can be a bias towards doing as much onsite efficiency investment as possible, followed by as much onsite renewable as possible, but off-site renewable energy is sometimes regarded as less impactful.

“We have nine years to solve climate change,” Neff said. “Let’s first get fossil fuels off the grid.’”

View the original story at Greenbiz.com here.

Corporate Knights

Ford Motor Company looks high and low to save water | Corporate Knights

In the race to go green, it’s fair to say that Ford has looked high and low – literally – to help its automotive plants cut their impact on the environment.

One of Ford’s highest profile eco-efforts can best be seen by looking down on the roof of its River Rouge factory in Dearborn, Michigan. Originally constructed starting in 1917 by Henry Ford, the complex debuted as an industrial pioneer, among the first fully-integrated industrial complexes, where steel mills, glass works and chemical plants were built side by side to speed the flow of raw materials into Ford’s burgeoning Model T plants.

It was there in 2000 that company chairman William Clay “Bill” Ford Jr., the founder’s great-grandson, unveiled another pioneering effort, of a greener hue. He announced plans to build the largest “living” roof ever installed on an industrial building, comprising 10 acres of hearty, green sedum plants.

Green roofs have since become a favourite of building designers. But at the time, Ford’s plan, part of a broader $2-billion site renovation, ran counter to energy-guzzling conventions in the auto biz. U.S. auto sales hit an all-time high that same year, buoyed by record sales of high-margin SUVs and sub-$2 per gallon gas.

Against this backdrop, and even though the roof was estimated to cost about the same as a conventional design, critics carped that Ford was risking money on greenwashing efforts. Yet when the roof was completed in 2002, Bill Ford stood firm. “This is not environmental philanthropy,” he said at the time. “It is sound business.”

Since then, much has changed. Gas prices have nearly doubled, endangering SUVs, and Ford’s green roof gamble continues to pay back by passively lowering the factory’s energy use for cooling, displacing electric illumination with skylights and reducing costs to filter stormwater runoff.

Elsewhere throughout Ford’s global operations, eco-roof features pioneered at River Rouge – such as day-lighting, rain water capture and cool-white materials that reflect sunlight – have become standard design features. Though the most visible, the River Rouge roof wasn’t the only water-focused effort Ford rolled out in 2002. That same year, the company began a long process to radically reduce the amount of water, energy and other resources used in its manufacturing operations.

From the start, metal-cutting machines were a top target. These computer-controlled devices shape hunks of steel and aluminum into precision auto parts, everything from big engine blocks to fine-toothed gears.

The problem? “It can be a messy process,” explains Sue Rokosz, principal environmental engineer at Ford.

Flood machining, as the conventional process is known, uses a steady stream of oil and water to cool cutting tools. This slurps up huge inflows of fresh water, requiring a lot of energy and plumbing infrastructure to keep flowing. And at the back end, it yields a slurry of oil, water and metal particles that are costly to dispose of and difficult to recycle.

As a fix, Ford turned to a process known as near-dry machining, or minimum quantity lubrication (MQL). The process replaces the stream of oily water with micro-spritzes of atomized oil delivered via articulated arms or hollow drill bits to precisely the point of contact where friction and heat build up.

It’s a small improvement that delivers outsized benefits. By making the switch, a typical manufacturing line – capable of machining roughly half a million parts every year – can lower annual water use by about 280,000 gallons and avoid the consumption of more than 28,000 gallons of lubricants.

What’s more, oily wastewater is all but eliminated and the metal shavings are relatively dry and clean, ensuring a higher share is recycled. Line workers benefit too, with drier, safer work areas, says Rokosz.

Though dry-machining systems cost slightly more upfront, their overall lifetime costs pencil out at 17 per cent less than old-style wet machines, according to Ford data.

While the technology has become Ford’s de facto standard, it can be set up only as fast as new manufacturing lines are built or old ones are replaced. So far, it’s been installed in more than a third of Ford’s 28 powertrain plants, with more on deck to make the switch.

Drop by drop, Ford’s water-savings efforts are adding up. According to its sustainability report, Ford has cut water consumption, per vehicle produced, by about half in the past decade. It is on track to cut per-vehicle consumption to around 900 gallons by 2015, compared with over 2,500 gallons in 2000. That’s roughly equivalent to taking 100 fewer five-minutes showers.

~

Check out the original story online, here:
http://www.corporateknights.com/article/tech-savvy-ford-motor-company

 

GreenBiz

Making cities sustainability centerpieces | GreenBiz

At the heart of GreenBiz’s VERGE initiative is the thesis that the coming together of economic and technological factors is driving innovation. During a lunch session as part of the VERGE DC event, we focused on how cities are emerging as hothouses where these dynamics are unfolding most quickly.

Increasingly, the 21st century is likely to be dominated by cities, with dense gatherings of capital, technology and skills where public and private players can collaborate at high speeds. In a physical sense, cities are where technologies—energy, information, building, and transportation—are hybridizing most quickly and most productively, driving economic growth, creating jobs, and spurring competitiveness.

To spark this roundtable discussion, we looked to a recent report exploring these trends. Titled “Citystates: How cities are vital to the future of sustainability,” and produced by SustainAbility in partnership with GreenBiz and sponsored by Ford Motor Company, the report lays out seven characteristics, or states, that drive growth-nurturing synergies between cities and business. Click here for a PDF of the report.

As an overview of its analysis, SustainAbility shared a video:

Citystates from SustainAbility on Vimeo.

The Seven States

The report defines seven characteristics that SustainAbility concludes can help cities and business thrive symbiotically. Here’s how co-authors, Chris Guenther and Mohammed Al-Shawaf describe these “citystates” and the opportunities they open to businesses:

1. The Connected City: Growing technological sophistication and traditional social connectivity provide opportunities for greater awareness, trust and collaboration among stakeholders. How can business both bolster and create value from this essential connectivity?
2. The Decisive City: Cities often have the urgency and accountability to act decisively. For example, cities lead state and national efforts in the areas of climate change mitigation and adaptation. How might companies improve their own decisiveness, and/or leverage that of cities, to drive sustainability?
3. The Adaptive City: Cities are among the most adaptable structures in society. How can business grow more adaptive while collaborating with cities on their mutual survival?
4. The Collaborative/Competitive City: The healthy tension between peer-to-peer collaboration and economic and brand competition among cities has potential to drive precompetitive sustainable innovation and rapid diffusion of solutions. How might industries exploit this tension in their own parallel drive for sustainability and competitiveness?
5. The Visceral City: Urban living is shaped by numerous real and potential feedback loops. As urbanization progresses and its impacts become more pressing. How can companies beneficially tap into these feedbacks to drive both value creation and sustainable development?
6. The Personal City. The influence of shared identity and values — in cities and elsewhere — is a particularly powerful driver of individual and collective action. How can businesses connect with citizen-consumers’ values to drive demand for more sustainable products and services?
7. The Experimental City: Cities are inherently creative, experimental social systems. This opens up links between R&D and low barriers to entry for nontraditional actors. How can business embrace the growing democratization of innovation and leverage cities as laboratories to test and scale sustainability solutions?

In the discussion that followed this presentation, it became clear that companies and cities face an increasingly co-dependent future. Businesses are agile, quick to innovate and develop sustainability technologies. Cities meanwhile, face pressing needs to improve urban environments, and to boost the efficiency and sophistication of city services.

Given the right mix of markets, public policy, and economic potential, businesses can help cities tackle problems ranging from transportation congestion to water treatment, and from energy efficiency to building and infrastructure upgrades.

Compelling as this vision is, participants shared many examples of the fundamental limitations that slow down city programs, or that stymie public-private interaction—budget, manpower, politics, and the like.

Here are some key ideas that caught my attention. We covered more in the 90-minute session than I’ve captured below, so I hope participants will weigh in below, via comments, to share other ideas and reactions, as well as expand the discussion.

Racing to beat election cycles. The long-term, multidecadal nature of many city sustainability plans can be stymied by the relatively short-term tenures of elected officials. City leaders face pressure to institutionalize programs before elected leaders move on. The private sector can help by helping to cement successful practices into city operations.

Private-sector’s bully pulpit. City leaders emphasized that private-sector leadership on sustainability and climate issues can help sway politicians and bureaucracies who remain shy or averse to tackling these topics. Indeed, where “environmentalism” can be a politically tainted phrase in some circles, “sustainability” has positive connotations that can catalyze change. “I consider urban sustainability the third wave of the environmental movement,” said a city leader, adding: “Our future is one of Manifest Density.”

Open-source efficiency. Nonprivate, noncopyrighted software projects, such as those pioneered by Code for America, can be more cost-effective laboratories to develop, test and trial software services. By sharing code between cities, services can evolve faster and deliver effective solutions for a tiny fraction of the cost of using conventional contracting methods. The lower cost and quicker deployment, in turn, makes it easier to experiment with a greater variety of ideas, and to explore even small-scale initiatives.

Sensing cities. The falling cost of hardware, especially the growing smarts of sensor networks, promise substantial gains. Lost-cost monitoring of public infrastructure such as storm water systems can help identify problems and lower damage, by sending repair crews to the right place, sooner.

Un-silo information and expertise. It’s a problem within any large organization: siloed expertise and misaligned interests can stymie public-private interactions too. For example, moving a Zip Car a block close to highly-trafficked area might benefit the city, commuters and the company. But getting all the parties involved—company execs, transportation department managers, and property owners—can make otherwise easy fixes hard to execute.

Tour de Sustainability? Just as cities have developed walking tours of historical sites, they should also offer sustainability walks: paths that could take residents, visitors, and students on a journey to see green buildings, storm water features, grid infrastructure, white roofs, and the like. Given that sustainability can be an abstract idea for non-experts, such tours could normalize sustainability, inspire and educate.

Cultivating failure. The private sector has developed a tolerance for failure, some even appreciate the lessons unsuccessful efforts can teach. Yet in the public sector and especially among elected leaders, failure is deeply feared. This can lead to bad projects being pushed past failure, at great cost. Is it possible to cultivate a more experimental, failure-tolerant culture in the public sector?

Image courtesy of RATOCA via Shutterstock.

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Check out the original post here: http://www.greenbiz.com/blog/2012/03/22/why-cities-are-hotbeds-innovation

GreenBiz

HOW GREENER cities are leading the way | GreenBiz

Convergence is often be intangible. The technologies of data, communications, buildings and transportation are rapidly merging, steadily enhancing one another in subtle ways. But convergence can also be tangibly real. For instance, humanity is inexorably concentrating in cities, enabled by many of those invisible technologies.

Discussions of the interplay of these trends — invisible technology and visible cities — took center stage Wednesday at GreenBiz’s VERGE conference in Washington, D.C. Private and public sector leaders mapped out the scale of these dynamics, offering examples of how technologies are evolving to serve the ongoing conglomeration of we humans.

Starting a few years ago, homo sapiens officially become an urban species. Home to over half the world’s population, cities are scaling so fast that by 2050, roughly 70 percent of the global head count will live in urban areas. Compared with the developed West, where most of the population is already urbanized, practically all the growth in the coming decade will happen in the developing world, especially in China and Africa, explained Manish Bapna, Interim President of the World Resources Institute.

Bigger cities are only half the story, though. Urbanization is inextricably linked to income growth, Bapna explained. So while there are roughly 1.8 billion people in the middle class worldwide today, another three billion will join their ranks in the next 20 years. “The pressure this places on resources — water, electricity, food, fuel, and so on — will be unprecedented,” he said.

The scale of these needs, as well as the size of urban markets, are driving corporate strategy to focus new services and products offerings on cities, explained Daryl Dulaney, President and CEO of Siemens Industry. Last March, to tap this potential, Siemens reorganized key operations, totaling $23 billion in revenues, into a new unit called Infrastructure & Cities.

Cities are dense ecosystems that foster innovation and connectedness, and do so with great efficiency, Dulaney said. Pointing to ambitious urban sustainability programs in Philadelphia, New York and Chicago, he said, “I like working with cities. Mayors are focused on getting things done. Politics comes second.”

It’s a similar story in China. Despite Beijing’s reputation for powerful central leadership, WRI found that city mayors were more responsive to efforts to upgrade energy and environmental practices. “The demographic pressure is front and center. Plus, mayors have a lot of authority in China, and they care about seeing their cities succeed,” said Bapna.

By that measure, the mayors of Tsingtao, China, and Philadelphia have much in common. Both see greening their cities as a competitive imperative. Tsingtao’s mayor wants the city to be the most economically attractive in China, and he knows that means he has to attract the best. To do so, he wants to be the greenest city possible.

Philadelphia is rebounding from an era when the City of Brotherly Love had a larger population than today. That’s left the city with amble infrastructure, but a challenge to maintain and optimize it. Green programs can do so, while also making the city more livable, said Alex Dews, Policy and Program Manager in the Mayor’s Office of Sustainability of the City of Philadelphia.

Public-private partnerships are playing a crucial roll in the effort, Dews explained. The city is working with The Dow Chemical Co. on an initiative to test the advantages of installing white roofs on homes.

During hot summer months, bright white roofs are substantially cooler that conventional black tar roofs. The Coolest Block program is re-coating roofs using Dow products and tracking the long-term performance of the converted homes to tally up the benefit. “We look for solutions that are beneficial to government, the public and business,” said Dews.

In another example, Philadelphia has seen recycling rates more than triple in neighborhoods where it rolled out Recycling Rewards, a collaboration with RecycleBank. Philadelphia’s program tracks household recycling by weight, using a system of barcoded bins.

Households earn rewards based on the overall performance of their neighborhoods — the more everyone in a neighborhood recycles, the more each house in that area is awarded at an online account. Credits can be redeemed through RecycleBanks’s network of affiliated brands, ranging from T-Mobile to Subway.

Getting the messaging right took time, Dews explained. Initially there was an epidemic of bin theft. Residents believed that credit was being awarded house-by-house, rather than as a neighborhood average. The city benefits by lowering the volume of waste it sends to dumps.

Looking ahead, cities will remain hotbeds of sustainability innovation. Rising affluence and growing populations will only boost the need for greener ways to house, feed, and care for urban populations.

For cities that are pioneering green programs, the challenge is maturing green efforts, Dews said. The next priority is to deepen pilot environmental programs so that they are institutionalized in city policy.

While much of Philadelphia’s sustainability work has been linked to Mayor Michael Nutter, said Dews, the next step is to make those shifts permanent, so that practices carry over to future administrations, as well as other cities.

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View the original article here: http://www.greenbiz.com/blog/2012/03/15/why-cities-are-leading-way-green-efforts

GreenBiz

Are green buildings safer? | GreenBiz

Are green buildings safer? Everyone knows that green buildings use less energy to operate. And studies show they’re healthier for occupants, which makes for happier residents and more productive workers.

But safer and more durable? Seems so. A study released this week suggests that greener construction can advance building resiliency.

To me, this link seems intuitive: green buildings are generally designed and built more carefully, with better materials and tighter finishes. It turns out that efficiency-focused features may also help green buildings and their occupants ride out long-term climate shifts — such as droughts or heat waves – and even give an edge in short-term disasters, by staying dry in floods and well sealed during high winds.

The report, produced jointly by the U.S. Green Building Council (USGBC) and the University of Michigan’s Taubman College of Architecture and Urban Planning, outlines ways to extend the inherent resiliency of green buildings. Titled “Green Building and Climate Resilience: Understanding Impacts and Preparing for Changing Conditions,” it sets out adaptive strategies that green building pros can deploy. It follows that, like higher efficiency and health benefits, improved durability could boost the market appeal of green structures.

The enhanced quality of a newly built green home or office can be a visceral experience. Doors and windows shut tightly, with an audible “thunk,” like an insulated fridge door. These tight seals are a huge plus for energy insulation: little heat leaks out during the winter, while cool stays in during the summer.

Better sealed, less drafty buildings are a big plus in wind storms too. When tornadoes or hurricanes rake a community, some of the most costly, serious damage is done when wind and water infiltrate a building, sending water deep into hidden cavities. A small opening — whether a missing shingle or a poorly sealed window –can set off a domino effect of damage.

This analysis reminded me of how devastating the impacts of poorly sealed, shoddy construction can be. In 1993, The Miami Herald won a Pulitzer Prize for a Hurricane Andrew-related investigative series, which revealed that some homebuilders had systematically ignored building code to save money. On roofs, for instance, a builder used fewer nails than required by code to attach shingles to plywood or to connect roof beams to walls. The cheat saved pennies but cost billions. During Hurricane Andrew, the builders’ homes were disproportionately devastated when the roofs gave way, leaking disastrously or lifting off completely.

Water is another realm where green design can both protect buildings and enhance the environment. Permeable surfaces that let rain water soak into urban surfaces can dramatically lower the incidence of flash flooding, or overflowing from the storm water system when heavy rains overwhelm sewer systems. In drought-stricken areas, green buildings can capture rainfall, conserve fresh water and reuse grey water.

“In the wake of last year’s disaster activity, with tornadoes across the southwest, flooding from Hurricane Irene and even an earthquake on the East Coast, it is important that we develop and enforce safe and sustainable building codes to make our communities more resilient, and to protect lives and property in times of disaster,” Craig Fugate, administrator of the Federal Emergency Management Agency, said at the National Leadership Speaker Series on resiliency and national security this week.

He called on leaders from major corporations, government, academia, the scientific community and civil society to help advance green building as a complementary strategy to address pre- and post-emergency-management situations, ultimately forging more resilient communities, he said at the event.

Today’s building codes are designed to meet specific regional weather conditions, including the hottest summer days, the coldest winter nights, the highest wind speeds and the risk of floods. “Climate change has the potential to undermine some of these assumptions and potentially increase risks to people and property,” Chris Pyke, vice president at USBGC said in a statement. “There are practical steps we can take to understand and prepare for the consequences of changing environmental conditions and reduce potential impacts.”

You can download a free copy of the report at USGBC. The main body of analysis is only about 40 pages long; the report also includes another 200 pages of reference work on the impacts of climate change in different US region.

Image courtesy of Iakov Kalinin via Shutterstock.

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View the original story here: http://www.greenbiz.com/blog/2012/03/02/green-buildings-could-be-safer-regular-buildings

GreenBiz

Why the Big Apple Can Be the World’s First VERGE City | GreenBiz

Why the Big Apple Can Be the World's First VERGE CityAs if recent football results weren’t enough to heat up the rivalry between New York, Boston, and San Francisco, add to the contest the quest for title of “greenest city.”

At the GreenBiz Forum 12 in New York City today, this rivalry took the form of a panel question: Can the Big Apple be the first VERGE city in the U.S., or maybe even the world?

Of course, New York has a long history of leadership in finance, media, and fashion. But green? Why not Masdar, or one of the new built-from-the-ground-up green utopias, asked session moderator Andrew Shapiro, co-founder of GreenOrder.

The city’s strength is partly its age, size and complexity. “The reality is that the majority of cities aren’t green field opportunities,” said panelist David Bartlett, IBM’s vice-president of industry solutions during the session. “Old infrastructures are where the opportunity for innovation lies. I think that makes New York the best candidate,” he added.

The city’s aged infrastructure is more opportunity than obstacle, said panelist Steve Cohen, Director and CEO of the Earth Institute at Columbia University, pointing out that it’s better for a city like New York to have an aged subway, in need of repair, than to have to build a new system from scratch, at nearly insurmountable costs.

“It’d be nice to have a computer controlled subway system, but I’d rather have what we’ve got, than to dig up the whole city today,” said Cohen. That said, the city has a track record of committing to billion-dollar scale green infrastructure, from the 3rd Water Tunnel, to the 2nd Ave Subway line. “This city is used to spending billions on capital. We’re not going to go through the anti-tax disinvestment cycle,” that has taken hold in other areas of the country, said Cohen.

In New York, the political leadership starts with Mayor Michael Bloomberg, who has led a sweeping effort to ready the city for the stresses of climate change and an additional million residents expected by 2030. The resulting blueprint, PlaNYC (pronounced plan-why-see) points the way to increased building efficiency, higher levels of renewable energy, less waste, cleaner air and water.

The technology tools that will make possible this smarter, more efficient future are entering service today. “There’s a huge proliferation of smart sensor technology where we can see — with much better x-ray vision — what’s happening with our building, with our transport system, with our energy networks,” said Bartlett. “Visibility, control, and automation, they’re the heart of smart.”

“No one is listening holistically to buildings,” said Bartlett. There’s automation device by device, or system by system, but no one is watching the sum of the systems, and doing do can deliver savings of 40 percent or more. “It’s a concept I call ‘the building whisperer,'” he said.

The city’s competitive edge also includes its “brain base”. “Boston is known as a college town,” said Cohen. “But we have more students in New York City than there are people in Boston,” said Cohen, implying perhaps this may be a reason the Giants will have an edge over the Patriots in Super Bowl XLVI.

The city is deepening its considerable R&D resources. Cornell University recently beat out Stanford University, winning a beauty contest to build a cutting-edge green campus for a new engineering school on Roosevelt Island.

Uptown, Columbia University is building a new satellite campus in northern Manhattan, which will be home to a brain and behavior research science center, along with additional capacity for engineering, business and continuing education. “The west side of Manhattan used to be full of factories and stevedores,” said Cohen, “And now those stretches are filled with brain workers.”

In many ways, cities offer more fertile ground for VERGE technologies to flourish than national or regional efforts. City mayors are “among the least ideological people around because the do real things: making sure the garbage gets picked up,” Cohen said. “The best minds in the world want to be here,” and even if they don’t want to live here, “It’s never hard to have a meeting here,” he added.

The challenges facing cities mirror the larger test facing the nation. At the national level, pragmatism is painfully absent, and has led to the polarization of energy debates into debilitating over simplifications, most recently with the Keystone XL pipeline, about which Cohen writes at his blog at Huffington Post.

The issue we need to address is America’s role in a sustainable global economy. How do we compete and protect the planet that sustains us? How do we ensure that other nations join us in an effort to achieve global sustainability?

“We’re talking about a post-industrial way of living. It will require innovation and creativity,” said Cohen today. “This is a little bit like arguing about landlines for telephones 20 years ago.” Energy technologies now on the blackboard may make debates about pipelines quaintly obsolete in the near future.

The rivalry for greenest city continues next week, as the GreenBiz Forum 12 heads to San Francisco on January 30 to ask a similar question: Can San Francisco be America’s first VERGE city?

My friend and GreenBiz impresario Joel Makower suggested the Bay Area may be the natural leader of the greenest city race, at least until the final minutes of the contest, when it fumbles away its lead to lose by a hair to New York.

No hard feelings from here in Giants land: At least in the green race, both cities can be winners.

Manhattan photo via Shutterstock.

Check out the original story at GreenBiz.com, here: http://www.greenbiz.com/blog/2012/01/24/why-big-apple-can-be-worlds-first-verge-city

GreenBiz

Avon’s CSR Report Gives Its Paper, Water & Energy Use a Makeover | GreenBiz

Avon's CSR Report Gives Its Paper, Water & Energy Use a Makeover

Makeup is sometimes used to conceal embarrassing flaws. Today, with the release of its latest corporate responsibility report, cosmetics giant Avon opted to reveal more about its sustainability and philanthropic work than in the past. Titled “The Beauty of Doing Good” and available online-only atresponsibility.avoncompany.com, the self-assessment covers 2009-2010 and is the third such evaluation in the company’s 125 year history.

Avon wanted to increase transparency across the “three pillars” of its corporate responsibility missions: empowering women, sustainability and philanthropy. “Presenting the report online, in an interactive format, saves paper, but also lets us update the data more frequently,” said Susan Arnot Heaney, Avon’s Global Director of Corporate Responsibility. She added that Avon plans to publish a full report every odd year, with continuous updates of new developments, performance data, news and achievements as they happen.

Produced in accordance with the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines, Avon’s corporate responsibility report aims for GRI Level B standards, a notch higher than the Level C achieved in Avon’s last self-assessment. The update includes a GRI Content Index listing of all standard disclosures covered in the report.

As with all such efforts, the details tell all the good stuff. Little familiar with Avon’s sustainability story until now, I was expecting to find a focus on organically sourced beauty care products. That’s in here, in the form of Avon’s policy to promote sustainable palm oil practices. I also anticipated an update on Avon’s support of breast cancer research (about to celebrate its 20th anniversary), and prevention of violence against women (founded 2004), both of which are touched on here too.

What surprised me is how much Avon has in common with the Fords and Fedexes of the world: Like big manufacturing and distribution companies, Avon is trying to drive up its energy efficiency, improve resource optimization, and chop down its waste. On those topics, here are a handful of achievements highlighted by Heaney when we chatted:

• Paper. By volume, Avon’s paper consumption leaves a larger footprint on the planet than do its cosmetics ingredients, Heaney explained. Surprised? Turns out that Avon is one of the largest commercial printers in North America. Famous for a direct-sales model embodied by “the Avon lady,” Avon has no retail outlets. Instead the company relies on “brochures” that agents pass on directly to customers every two weeks.

For instance, the current holiday edition of the North American version of this small-sized catalog was bigger than usual, but suggests the huge amount of printing Avon does: The publication numbered over 200 pages, with upwards of 15 million copies printed.

To formalize its effort to cut the impact of this river of ink and paper, Avon last year launched Hello Green Tomorrow, a broader green agenda that included the Avon Paper Promise: a comprehensive policy for promoting responsible use and protection of forest resources, and developed with input from World Wildlife Fund (WWF) and several other environmental NGOs. In October 2010, Avon joined (by invitation) the Global Forest & Trade Network (GFTN), WWF’s initiative to eliminate illegal logging and drive improvements in the world’s most valuable and threatened forests.

As part of this pledge, Avon has set a target to buy 100 percent of its paper from certified and/or post-consumer recycled content sources by 2020 with a certification preference of Forest Stewardship Council (FSC). As of 2011, 74 percent of Avon’s brochure paper met the Avon Paper Promise commitments, and approximately 25 percent of paper used in Avon’s product brochures is sourced from FSC certified forests.

• Reforestation. In 2010, as part of Hello Green Tomorrow, Avon contributed $2.1 million to a Nature Conservancy Program to help restore 5,000 acres in the Atlantic Rainforest in South America. Latin America is increasingly important to Avon, accounting for $4.6 billion of Avon’s $10.9 billion in 2010, making it Avon’s largest global market. In 2011, Hello Green Tomorrow expanded its support for reforestation efforts to Indonesia.

• Green buildings. Avon launched its Green Building Promise worldwide in 2010 as well, formalizing a long-held commitment to design and build all new major buildings and renovations in accordance with LEED (or local equivalent) certification standards.

The company achieved Gold in Zanesville, Ohio (U.S.), Sao Paolo, Brazil, and Guarne, Colombia; Platinum certification in Shanghai, China; BREEAM Very Good in Northampton, U.K. At its new U.S. Headquarters in New York City, Avon is aiming for LEED Gold for Interiors, awaiting final certification.

• GHG emissions reductions. At its manufacturing operations, Avon exceeded their initial goal of 25 percent GHG emissions reduction, on a 2002 base, four years early with a 31% reduction reached by 2008. The company has committed to a further 20 percent reduction by 2020. Overall, this would cut GHG emissions by 40 percent from 2002 levels.

• Material use & waste reduction. In 2010, Avon increased by seven percentage points to 76 percent the share of waste that was reused at its global manufacturing sites. In its distribution centers, the rate rose to 80 percent.

• Water use reduction. In 2010, Avon reduced overall water usage by 10 percent in manufacturing operations, both in absolute and per unit terms, and by 23 percent throughout administrative facilities and distribution centers in absolute terms. Avon’s long-term goal is to reduce water intensity by 40 percent by 2020.

There’s plenty more in the report. And if you simply must read it in print, you can build your own version of the report and generate a custom PDF through their site.

GreenBiz

Building Efficiency, Batteries Drive Johnson Controls’ Record Growth | Global CCS Institute

Green is proving to be a good bet for Johnson Controls, Inc. Despite the anemic condition of its two key markets — automotive and construction — JCI recently announced record sales and profits for 2011. And the record run will continue next year, too, company executives predicted at an analysts meeting in New York this week, with green technologies providing much of the lift.

With overall GDP growth inching along at close to one percent and talk of a double dip recession echoing widely, Johnson’s rapid resurgence and bullish guidance came as a surprise. Based on preliminary figures, JCI’s revenues hit a record $40.7 billion, growing by 19 percent as net income climbed by 24 percent, to $1.7 billion, in its 2011 fiscal year ending Sept. 30.

Looking out to next year CEO Steve Roell predicted revenue would expand by another nine percent to $44 billion, while earnings per share would surge by some 20 percent. Long term, Roell anticipates 10 to 15 percent annual sales growth, a pace that if realized, could double JCI’s size in five years.

How is JCI growing so quickly when the overall economy is stuck in neutral? There’s a hint in the breakdown of where JCI expects growth next year.

Sales will expand by about 10 percent next year in its Building Efficiency unit, spurred by accelerating spending on retrofits and efficiency upgrades. Likely to expand faster still is the Power Solutions unit, where revenues will rise by around 12 percent, stoked in part by rising demand for batteries for hybrids and electric vehicles.

The company’s largest unit, Automotive Experience, will grow by 6 percent, supplying interior components and subsystems to auto makers — think seats, dashboards and doors.

Roell made the case that while broad pessimism was probably overstated — there’s a risk that the market will “talk itself” back into a recession, he said — JCI’s green focus is part of the reason it’s well positioned to grow in emerging markets and to grab share in slower-growth developed markets.

“Our market strength, product technology, and global distribution make us uniquely positioned to take advantage of the global mega-trends of energy efficiency and sustainability, and growth in emerging markets,” said Roell.

The green tint to these rosy results stems from JCI’s growing bets on building efficiency and electric vehicles. While VC-backed start-ups, and exotic new technology tend to attract the spotlight in discussions about the potential of clean tech, JCI’s outlook offers evidence of how methodically developed green offerings, coupled with strong execution, can mine huge growth from both established and emerging markets.

Panoptix and Bending Company Culture to the Cloud

Consider JCI’s last building efficiency initiative. Long a market leader in building control hardware, earlier this month JCI announced plans to push into the software services space. At Greenbuild, on Oct. 4 JCI unveiled Panoptix, a suite of cloud-hosted applications that promise to improve the collection and management of building performance data.

Building management software is complex challenge that has attracted, and spat out, quite a few players, such as Cisco, as I was reminded by Dave Myers, JCI’s president of building efficiency after the meeting. It’s a tricky space for pure IT experts to understand, so while they may “get” the challenge of connecting varied building systems, they often lack a deep fluency in the insular world of building control technology and practices, a world where Johnson Controls is a 125-year veteran.

“We have the presence in the market, the intelligence to operate buildings, and our gap was more of the connectivity,” Myers said.

To fill that gap, Johnson Controls built an in-house software development lab, importing coders from outside the building industry, specifically to cultivate a very open sensibility about standards. Doing so also meant bending corporate culture that the system must be open to communicate with competitors’ offerings. “It’s essential that Panoptix be able to talk with building control systems, including our competitors,” said Myers.

JCI’s entry into this space comes at a time when building owners are pressing harder for verification that investments in green technologies and retrofits deliver a payback. As critics of the USGBC’s LEED green building standard have emphasized, design standards don’t guarantee more efficient performance.

Better building performance data, Myers added, will not only spur programs like LEED, but should make it easier to finance retrofits too, by giving lenders clear data about improved operating costs.

The second green growth area that JCI emphasized was batteries — but not, to my surprise, the lithium-ion type that rule the roost in most advanced electric vehicles (EVs). Rather JCI sees big promise in old-school lead acid batteries, the sort cars have relied on for a century or so to start, for lighting and ongoing ignition.

In an era of space-age EVs packed with thousands of exotic li-ion power packs, where do lead-acid batteries fit in? JCI’s answer: start-stop systems for conventional cars.

While maybe not as sexy as Chevy’s Volt or Nissan’s Leaf, these lower-cost systems can stop a car’s engine when at idle, then fire it back up when the gas is pressed. At a premium that pays for itself in a year or 18 months, car makers can deliver 5 percent to 7 percent fuel savings.

Those mileage gains may be modest, but Alex Molinaroli, JCI’s president of power solutions explains, given its affordability, start-stop systems will have a deeper impact on the industry, and overall mileage, far sooner than advanced EVs. In the coming decade, Molinaroli said, advanced electrified vehicles — from plug-in hybrids to pure battery EVs — will make up only a few percent of sales. In the interim, the true “mass market” approach to EVs will come from start-stop systems added to conventional cars.

“It’s the math. Let’s say EVs mean 5 percent of cars improve their mileage by 100 percent,” said Molinaroli. “You have more impact improving the mileage of 100 percent of cars by 5 or 10 percent.” Already widely adopted in Europe, start-stop systems will make their way into the majority of U.S. models in coming years, Molinaroli added, as automakers begin the push to hit new federal 54.5 mpg standards by 2025.

In parallel, li-ion batteries will grow continue to grow, as well, and JCI rationalized its control of its advanced battery operations. On Sept. 30, JCI completed the $145-million buyout of its joint venture with France’s Saft, gaining ownership of Li-ion battery technology, rights to licenses and a recently completed plant in Holland, Mich.

JCI currently supplies Li-ion batteries to Azure (which makes electric trucks for FedEx and others), BMW, Daimler, Ford, China’s Geely, Jaguar/Land Rover, Odyne (another truck maker) and VW.

Lead acid batteries were recently at the center of a dust-up at JCI’s plant near Shanghai. Built by and acquired from Delco, JCI had to shutter its lead-acid battery plant in Pudong New Area last month when authorities requested the factory halt operations after exceeding its quota of lead emissions.

Molinaroli said the closing came despite the fact, in the past, JCI has been solicited by Chinese authorities to transfer practices to help local plants lower their lead emissions. The Shanghai plant, Molinaroli emphasized, operates at the same standard as JCI’s facilities in Europe and the Americas. JCI has the right to resume operations at the plant on Jan. 1, and is developing four additional facilities elsewhere in China.