Marc Karell
One interesting area that makes sustainability unique is its necessary integration of business concepts as it addresses environmental issues. While in science we look at a wastewater discharge or an air emission by its characteristics, in sustainability we have the opportunity to take a more holistic approach to material and energy usage and look for alternatives to raise efficiency or reduce impacts. A life cycle analysis (LCA) from cradle to grave lets a company see how resources are spent, allowing them to focus funds on the exact steps to get the most bang (i.e., reduced GHG emissions, water use) for the buck. ISO standards now exist to provide standard methodology for an LCA.
This seems like a complex “blackboard” exercise. But an LCA can be simple and offer real-life lessons for companies. For example, I recently performed an energy audit for a high school, and as I was walking down a hall I saw a group of vending machines for beverages, snacks, etc. I noticed that some of the machines had the Energy Star Label prominently displayed, while others did not (presumably not in the program). I explained to the Building Manager that these labeled vending machine have been shown to use 15-25% less electricity than comparable models. He was not impressed. I then asked whether the school makes money from vending machine sales. He laughed and said of course, yes, but did not know how much. Then I said whatever it is, what’s the use if that revenue is eaten away by higher electricity costs. He got it. The school contracted out with various companies to supply food in part to make a few dollars, important in these tough times. But the sales revenue earned can be lost in the added expenses of operating the machines. I told this story to the school’s financial officer who agreed and is considering a purchasing policy that all future purchases (printers, PCs, etc.) have the Energy Star label to minimize costs. While many focus on revenue, this school got it and focused on overall financial gain and, reducing their carbon footprint, too.
LCA can also be discussed in terms of time. I did an energy audit elsewhere and explained that the ROI of a potential project was 3 years. The client said that would be unacceptable to his upper management; the payback was too long. I asked whether they would like a return of 33%. That was great, the client said. Who gets a 33% return on an investment these days? I said a 33% return is a 3 year payback. Given a likely 15 year lifetime, the company has another 12 years to gain profit (avoided costs) for the energy conservation measure. Instead of focusing on short-term “affordable” projects, a long-term, life cycle approach will achieve more financial benefits for your company.
CCES technical experts can perform LCAs for the energy usage, GHG emissions, or water usage of your products using accepted ISO methods, and can develop cost-effective strategies to address sustainability and demonstrate overall financial benefits.
