tuhsd june 14, 2011 making sustainability work jonathan schwartz manager, asset optimization kris...
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TUHSDJune 14, 2011
Making Sustainability Work
Jonathan SchwartzManager, Asset Optimization
Kris Waters, CMIRInvestment Recovery Manager
Cox Conserves Commitment
• Reduce our annual companywide carbon footprint, or greenhouse gas emissions, by 20% by 2017
• Save 172,000 tons of greenhouse gas emissions annually - equivalent to the pollution produced by providing power to 26,000 homes
Sustainability
Three pillars of truly sustainable privatesector initiatives:
• Social: Community growth, non-profit support, job creation, education
• Economic: Financial return, cost savings, revenue generation,
return on investment, long term financial viability, risk management/mitigation, financial impact of climate change
• Environmental: Minimizing or offsetting waste, reducing carbon dioxide emissions, reducing non-renewable resource consumption
Private Sector Sustainability Drivers
• Primary business-driven motivators:– Reduce Risk– Reduce Costs– Increase or Preserve Revenue– Build Brand Value– Impact Local Markets– Increase Employee Engagement
Local Cox Conserves InitiativesSolar parking structures
• Currently installed at six Arizona facilities.
Sustainable facilities initiatives
• Reduce water, energy, and
natural resource consumption– Lighting– HVAC– Water fixtures– Print services
Fleet optimization • Home start• Vehicle size reduction
Sustainable Sourcing
• Sustainable business practices a consideration in sourcing events.
Telecommuting / Home Start
• Call center program where employees work from home.• Field program where employees start from home to reduce unneeded carbon impact
Investment Recovery • An end-of-life asset management program dedicated to reuse, resale, and recycling to optimize assets’ return on investment
• Redeploy or sell assets for reuse wherever possible• Sustainably recycle unusable assets to recover material value• Highlights asset’s value throughout its life cycle
Local Cox Conserves Initiatives: Investment Recovery
Local Cox Conserves Initiatives
• Office and field operations waste recycling– Paper– Plastic– Cardboard– Coaxial cable
• Reduced waste disposal costs• Proceeds reinvested in K-12 education
programs through Cox Charities
Sustainable Private Sector Jobs
• Facilities Management• Supply Chain Management• Investment Recovery Management• Network Operations / Engineering• Information Technology• Business Analysis• Finance
Digital Ballasts in Call Center
• Installed 800 new digital ballasts in our call center building• Enhanced dimming capabilities and “smart technology”
- Integration of occupancy and lighting schedules • Saves maintenance costs due to increased lifespan of lamps and ballasts
Business Case Analysis: Call Center Ballasts
Purchase and Installation Costs $140,000
Annual Savings 200,000 KwH ($0.11 / KwH)
APS Rebate $25,000
Annual savings in maintenance / replacement
costs$10,000
Project Timeline 10 Years
Business Case Analysis: Call Center Ballasts
Business Case Analysis: Call Center Ballasts
Simple Payback 3+ yrs
NPV (8% Discount Rate) $99K
IRR 34%
Additional Considerations
• Employee comfort
• Reduced carbon footprint
• Promote development and manufacturing of energy-saving technologies
10 Year Investment Analysis
ANALYSIS SUPPORTS A SUSTAINABLE STRATEGY!
Activity – Solar Power Purchase Agreements
Activity – SPPA
Project Timeline 20 Years
Annual Production 520,000 KwH
Power Cost Increase $0.06 per KwH
Rebates $0 (PPA provider retains)
Maintenance Savings $2,000 annually
Future Energy Cost Savings
$5,000 with 1% annual growth
Discount Rate 8%
Activity – SPPA
• With no extra revenue or benefit, what is the cumulative cash flow? What is the Net Present Value (NPV) at an 8% discount rate? – Formula:
• t - the time of the cash flow• i - the discount rate• Rt - the net cash flow at time t.
• How much revenue or benefit is needed to have a positive NPV?
• If a positive NPV is not achievable, what other considerations must be taken into account?
Activity – Solar PPA
Cumulative Cash Flow • ($474K)
Net Present Value (NPV) • ($234K)
Project Payback • No Payback
Environmental Considerations • Reduced carbon footprint
Social Considerations • Example to other private businesses
Non-Quantifiable Economic Considerations
• Public relations• Builds brand value• Local job creation
1. Sustainable practices often make business sense2. Don’t have to work in a traditional “green job” to
make a career of sustainability3. The field of sustainability is rapidly evolving4. Every waste stream has some level of value5. Creativity is critical to success in the sustainability
arena
Environmental, social, and economic sustainabilityis optimized by aligning personal values andbusiness drivers.
Curriculum Recommendations
?Questions?
Jonathan SchwartzManager, Asset Optimization623.328.3281 – [email protected]
Kris Waters, CMIRInvestment Recovery Manager623.328.3274 – [email protected]