Earth Day was celebrated around the world on April 22nd. However, every day of the year, many companies realizing cost savings by reducing waste. Although energy efficiency is a hot topic right now, waste can be reduced in a number of areas. Furthermore, it is employees who are often in the best position to identify how to go about doing so.
Where can savings be achieved? The Environmental Protection Agency says “Depending on the type of company, WasteWise partners have found the greatest cost savings in the following areas: shipping and receiving (reducing transport packaging), office operations (reducing paper that is mailed or used internally), and manufacturing (reducing process waste or the amount of material used in a product). Remember that the greatest waste prevention savings often accrue from avoided purchasing costs.”
Employees who use materials and energy in their day to day work can be engaged to find innovative ways to cut costs. Andrew L. Shapiro, founder and president of consulting firm GreenOrder, advises organizations to “involve employees” and “tap the expertise of your existing managers.” Shapiro also suggests that companies reach for solutions that go beyond the “lowest-hanging fruit” and understand that full benefits are often not achieved since, “efficiency gains are too often "one-offs," which don't get converted into programs that can be replicated, scaled, and made part of the culture of an enterprise.”
Companies that are achieving significant cost savings by reducing waste include:
Interface—the carpet manufacturer--reports their “cumulative avoided costs from waste elimination activities since 1995 are calculated to be over $405 million.”
Dell Computers is saving customers money by making computers that are energy efficient.
Sun Microsystems opened an “energy-efficient datacenter in Broomfield, Colo., that's expected to save $1 million” this year.
Kettle Foods claims their “(LEED certified) factory has seen annual energy savings of 20 percent, equivalent to an estimated cost reduction of $110,000 on natural gas and $51, 000 on electricity” in 2008.
Erik Greb notes that “Since the inception of Wyeth’s corporate energy program in 1998, the company has saved $120 million in energy costs” and “ Pfizer’s cumulative cost reductions resulting from conservation efforts during the past five years amounted to more than $115 million.”
Although resources, such as Green Gain “A program of the Portland Development Commission and Zero Waste Alliance" and The Energy Star Guide (information on selecting cost efficient appliances and other purchases) are available to support organizations, the key to success is a commitment on behalf of employees and management to uncover potential savings, reduce waste and make the appropriate changes.
References:
Dell. “Driving Cost Savings for Customers” [www.dell.com]. Obtained April 23, 2009.
Dell. “Driving Cost Savings for Businesses and Organizations” [www.dell.com]. Obtained April 23, 2009.
Environmental Leader. “Kettle Foods LEED Gold Plant Sees 20% in Energy Savings” Environmental Leader [www.environmentalleader.com]. September 18, 2008.
Environmental Protection Agency. “Where are the Biggest Cost Savings?” U.S. Environmental Protection Agency Wastes-Partnership-WasteWise Program [www.epa.gov]. October 7, 2008.
Greb, Erik. “Efficiency Improvements Save Money and the Environment” PharmTech.com [www.pharmtech.findpharma.com]. April 15, 2009.
Interface Inc. “Global EcoMetrics” [www.interfaceglobal.com]. Interface, 2008.
Shapiro, Andrew. “Take Eco-Efficiency to a Higher Level” [www.blogs.harvardbusiness.org]. Harvard Business Publishing Leading Green, March 3, 2009.
Sustainable Life Media. “Sun's New Green Datacenter to Save $1 Million a Year” Sustainable Life Media [www.sustainablelifemedia.com]. January 28, 2009.
United States Environmental Protection Agency. “Putting Energy Into Profits: Energy Star® Guide for Small Business” [www.energystar.gov]. September 2007.
