MATURITY MATRIX RILA S 2014 RETAIL ENERGY MANAGEMENT PROGRAM. Strategy & Commitment. Energy Consuming Systems. Resource investment.
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1 RILA S 2014 RETAIL ENERGY MANAGEMENT PROGRAM MATURITY MATRIX RILA s Retail Energy Management Maturity Matrix is a roadmap to help retail energy managers optimize their energy programs. Retailers can use it first to baseline the maturity of their program and then to identify the highest leverage opportunities for improvement. The 2014 Retail Energy Management Maturity Matrix was developed with retailer input as well as review of existing tools like ISO and EPA s Energy Management Guidelines. It underwent three rounds of reviews by retailers, the U.S. Department of Energy (DOE) and U.S. Environmental Protection Agency (EPA) employees and contractors, and vendors. The Matrix is organized according to the Virtuous Cycle of Strategic Energy Management, a resource pioneered by MIT and Environmental Defense Fund, as well as the specific energy consuming systems in the typical retail facility. In an optimized organization, all components of the virtuous cycle function at full capacity and will run smoothly to improve the performance of the energy consuming systems, generating maximum financial and environmental returns. Visibility Projects & data Strategy & Commitment Energy Consuming Systems Resource investment People & tools Program Sponsor: Analytics Partner: Visit to learn more about RILA s Retail Energy Management Program. 1
2 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 Starting Standard Excelling Leading Next Practice STRATEGY & COMMITMENT 1 Reduction strategy and goals Ad hoc efforts, no formal program Annual goals based on cost saving Defined energy management roadmap with short and long-term energy or greenhouse gas (GHG) reduction goals Benchmark against peer efforts Use standard metrics for measuring energy performance Reporting publicly to third-parties such as Carbon Disclosure Project (CDP) and pursuing recognition such as ENERGY STAR Set public goal that is a relative energy or GHG emissions reduction target Setting a goal to improve ENERGY STAR score across full portfolio Comprehensive and aggressive Scope I, II, and III GHG reduction goals Use a balanced scorecard (people, planet, and profit) system for reviewing energy strategies and projects Net zero store operations goal GHG emissions reduction & elimination plan Extending GHG emissions goals to supply chain/value chain 2 Corporate employee and vendor engagement No efforts to engage strategicallyrelevant corporate employees and vendors One time or limited training of relevant corporate employees and vendors on using good judgment to identify energy reduction opportunities within their own roles Soliciting office energy reduction suggestions from corporate employees Hosting events for corporate employees to learn about energy reduction in their retail roles and in their homes Following internal communications plan to periodically update and engage corporate employees and vendors Hosting annual Energy Summit with all vendors that impact energy consumption Integrate energy management training into onboarding and continuing education for all employees and vendors Encourage vendors to improve energy efficiency of their products Hold corporate office cross-departmental energy reduction competitions Relevant departments test and actively partner with research groups or vendors to design next generation equipment 3 Executive Engagement No stated corporate commitment to energy management 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 Energy performance shared by Executives in quarterly leadership updates to company 2
3 RESOURCE INVESTMENT 4 Energy team Either no designated energy team or one person or small team responsible for energy management part-time No explicit internal instructions to coordinate and fund energy investments across the organization Energy manager (or team) with specific function to advance and implement ongoing energy projects Energy tasks and deliverables incorporated into employee work plans Hire external consultants or service providers to help implement energy projects Multi-person energy team with targeted functions Accessing energy training and other educational resources to boost team s capabilities Documented process to identify, design, select, and execute energy use reduction projects into existing stores A cross-functional team that meets periodically to identify and execute on energy management issues, and identify energy improvement opportunities Hire or leverage Energy Service Companies (ESCO) to help implement energy projects Building design is approached as a system Work with MBA or engineering program to supplement energy management resources with additional expertise 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 Developing working relationships with Public Utility Commissions Implementing an energy procurement strategy that capitalizes on marketspecific timing & opportunity Partnering with utilities to develop retail-specific energy efficiency incentive programs or procurement offerings 6 Engaging landlords (primarily applicable to retailers in malls) No engagement on energy reduction programs Educating relevant internal stakeholders (i.e. real estate, legal) about the impact of energy usage on operational cost of leasing Exploring submetering and proof of use billing to verify need for lease provisions that promote energy efficiency (and lower operational costs) Developing and piloting green lease with relevant internal stakeholders to improve energy efficiency (and lower operational costs) Introducing green lease provisions in lease negotiations Periodically discussing energy opportunities (i.e. lighting, HVAC, solar, electric vehicles, etc.) with key landlords for existing and new leases Working with landlords to obtain common area energy data Members of collaborations that are acting to educate the retail real estate sector on the benefits of green leasing Energy reduction measures in base lease 3
4 PEOPLE AND TOOLS 7 Internal Energy Management System (EMS) Basic alert and analytic capabilities Measuring and tracking energy on a store by store basis at the utility billing level Periodically reviewing some control set-points, lighting control timers, etc. in stores, corporate offices, data centers, and DCs Basic measures are available but no real time measures EMS implemented at all stores, corporate offices, data centers, and DCs Sophisticated EMS with 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 Vertical integration of data from EMS 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 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 emissions Tracking all relevant properties in ENERGY STAR Portfolio Manager and having data automatically uploaded via web services Tracking co-benefits to improved energy performance (like brand value, environmental performance, employee morale) Measuring and tracking Scope III GHG emissions Using enterprise energy management software to perform automated benchmarking, bill/rate analysis, measurement & verification (M&V), and advanced analytics Employing energy modeling to clearly and accurately define the energy use in a space Working with ENERGY STAR to improve platform and recruit other members Integrating sales data, comp sales, foot traffic, etc. with energy data 9 Aligning incentives for energy performance Energy costs not considered in procurement decisions Store incentives and P&L statements tied to store energy use (controllable expense) Some departments can recuperate some of the cost savings from energy projects Identifying synergies between internal partners to consistently consider lifecycle costs including facilities, maintenance, real estate, store operations, construction, etc. Awards/recognition for biggest contributions to energy conservation Departments can capture the majority or all of cost savings and reinvest in new projects or are provided dedicated long-term funding District/regional managers and department heads bonuses recognize energy performance Corporate bonuses recognize energy performance and/or peer rankings ROI of projects considers total cost of ownership as well as non-financial value of project implementation 10 Front line employee engagement Educating through basic environmentalawareness signage in stores Developing store green team(s) or energy advocates to monitor on-site performance, reduction opportunities, and provide feedback to corporate energy management team Posting store energy consumption for all store associates to compare their store to other similar stores Online platform for employees to review store consumption and submit ideas to reduce use as well as be active participants in energy management programs by inputting quantitative information Energy awareness campaign throughout stores, including signage, orientations, periodic trainings, competitions, in-store green teams, store meetings, scorecards, newsletters, etc. Collaborative best practices forum to provide platform for high-initiative employees to receive recognition while sharing best practices with colleagues Training employees to educate customers about company s energy/ecoawareness efforts 4
5 PROJECTS & DATA 11 Financial management Limited interaction with finance team (e.g. only for project approval) Energy project approval not a high priority for the finance team 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 Energy reduction projects are considered as part of annual capital planning Energy reduction is communicated in terms of the bottom line Identified projects receive a high priority Strong working relationship with finance team Together with finance team, develop a process to pilot new projects in ways that identify scalable energy reduction strategies Tracking all investments in energy projects and associated cost-savings after implementation Allowing use of external financing (e.g. loans from banks, service providers, etc.) to fund projects Integrating finance team into energy management decisions Energy innovation fund to periodically test new energy reduction strategies/ technologies Considering ROI, internal rate of return (IRR), hurdle rate, net present value, energy price growth expectations in energy strategy and projects Developing new financing models like the PPA for efficiency projects 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 ownership in procurement decisions and negotiations Teams that procure energy consuming equipment consider total cost of ownership and it often influences purchase decisions Procuring ENERGY STAR Certified for all qualified products Energy costs considered an integral component of vendor and initiative valuation Procurement business rules require net reduction in GHG emissions 13 Building auditing and re-tuning No comprehensive building re-tuning strategy in place; only re-tuning buildings as issues arise Walk-through energy audits on ad hoc basis Strategy in place to periodically audit and re-tune stores, corporate offices, data centers, and DCs to identify and act on reduction opportunities Implementing portfolio wide re-tuning and replacement strategy Continuously re-tuning building systems Working with landlords to ensure common areas are periodically re-tuned 5
6 VISIBILITY 14 Reporting & communicating Reporting internally to relevant stakeholders Reporting externally to CDP or other formal channels 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 Success stories are framed 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 Developing annual public CSR or Sustainability Report Acting on benchmarking data to target energy performance improvements where most needed Commission third-party verification of energy savings/ghg reduction Hosting a company newsletter, blog, and/or social media dedicated exclusively to energy Developing annual integrated financial and sustainability reports 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 and/or products for sale 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 case studies, supporting peer companies Partnership with NGO to identify improvement opportunities Identify opportunities for and actively develop new collaborations 6
7 ENERGY CONSUMING SYSTEMS 17 Lighting Periodically reviewing lighting options Using T8 fluorescents for interior lighting New construction uses LED 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 High performance lighting implemented throughout stores, corporate offices, data centers, DCs, and parking lots where appropriate Daylight harvesting strategy in place where practicable 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 Highest efficiency HVAC installed throughout corporate offices, stores, data centers, and DCs Implementing an active HVAC asset performance tracking program and efficient operational practices Periodic review of newest technologies Working with vendors to define next generation specifications for integrated HVAC-lighting-controls systems 19 Plug loads Identifying and inventory the in-store devices that consume plug energy (i.e. vending machines, store displays) Installing monitoring and controlling devices for plug-in devices (i.e. vending misers) Tracking device energy usage across stores to benchmark devices and identify alerts Requesting energy saving devices from vendors 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 some renewable energy credits to offset electricity purchases Implementing a demand response program Testing solar, wind, biogas, or geothermal at corporate offices, store, data centers or DCs. Developing portfolio-wide onsite renewable generation strategy including a financial plan and prioritization of opportunities by state/region Renewable Energy Credit (REC) procurement policy Implementing onsite renewable generation strategy and maximizing renewable energy across portfolio Testing fuel cells, geothermal, battery storage, phase change materials, or other storage and generation systems Developing renewable energy purchasing cooperatives with landlords and other retailers 7
8 ENERGY CONSUMING SYSTEMS (continued) 21 Refrigeration Aware of refrigerant types in portfolio & associated energy factors Purchase only base model efficiency refrigeration Doors are used on 80% of all low temp cases Chooses some refrigerant types in portfolio based on associated energy factors ENERGY STAR procurement policy for all qualified products Routine cleaning of compressors and other components that can impact efficiency Doors are used on 100% of low temp cases Currently use doors on 50% or more of medium-temperature refrigerated display cases (excluding fresh bulk produce) All compressors are remotely located outside the store to avoid waste heat issues (or waste heat is somehow vented/piped outside) Control of anti-sweat heaters in new cases Currently use doors on 80% or more of medium-temperature refrigerated display cases (excluding fresh bulk produce) Anti-sweat control in all cases Piloting stores using natural refrigerants or alternative approaches to dramatically lower the climate impacts associated with direct emissions of refrigerants 22 Food Service Some attention paid to operational procedures, like ensuring walk-in doors don t remain open Starting to focus on operational procedures Installed at least one piece of highefficiency (e.g., ENERGY STAR) equipment Official guideline to operational procedures A number of high-efficiency (e.g., ENERGY STAR) equipment purchases Plans for continual improvement through retrofits or replacements Built 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 Testing next gen food service efficiency technologies with vendors Actively using energy information from benchmarking or EMS to analyze continuous opportunities to reduce energy 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 Adopt and use third-party standards like LEED for Retail, LEED Volume, LEED for Commercial Interiors, BREEM, etc. Using weather stripping and double pane windows where applicable Use of the ENERGY STAR by Design tool The building design is approached as a system and energy points are maximized achieving 20% or better than ASHRAE code by design Building and construction processes use an enhanced commissioning process on every building Commissioning data is integrated with the EMS program to provide performance and startup data tracking (for incorporation into benchmarking programs) 8
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