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Sustainability = Profitability
What Is Happening In Your Local Market? Climate Wise Climate Wise is a voluntary, city-run program that is dedicated to helping local business and the environment. Through environmental assessments and creative solutions,  the City of Fort Collins Climate Wise Team helps businesses tackle modern-day business challenges that impact bottom lines  and the quality of life in Fort Collins. Read on to learn how your business can be part of the more than  70 elite local companies  that have joined the Fort Collins Climate Wise program. greenprint denver The City and County of Denver's official  Climate Action Plan specifies ten priority strategies and actions to be taken by individuals, businesses, and city government  to meet a short-term 2012 climate goal of total annual emissions reductions of 1.8 million metric tons of CO2 equivalents, decreasing Denver's per capita greenhouse gas footprint by more than 10 percent relative to 1990 levels:   Introduction PACE  staff worked with Boulder County restaurants to develop an assistance and certification program specific to the restaurant industry.?  The program is designed to provide information to restaurants that will help them improve their operations, reduce waste and energy use, and continue meeting food service quality standards. ? Restaurants that are committed to waste reduction and recycling will now receive recognition for their efforts.? PACE will recognize business that meet the  certification criteria  through direct mail, periodic ads, press releases identifying newly certified businesses, a framed certificate, and a window decal. ?? Restaurants and Food Service
What is a sustainability? Sustainability is making choices today that preserve the options and opportunities for future generations.
What is the difference between green and sustainable? Green implies protecting people¡¯s health and well-being through the use of natural products, safer procedures, and the like. (e.g. improved indoor air quality and the use of non-toxic cleaners)   Sustainable implies to reducing the environmental impact from the manufacture and use of products. (e.g., forest protection and reducing energy consumption)
The practice of making a false or misleading claim about the environmental benefits of a product, service, technology or company practice. What is Greenwashing?
Sustainable Balance It is important to realize that no individual or organization can be perfectly sustainable.  Eventually you will end up contradicting yourself if you do not allow for any flexibility in your sustainable beliefs.  So your goal is to find a balance that meets your organizational needs.
Does sustainability matter to every customer? In a financial sense, the answer is yes.  Every company must be financially sustainable to survive.  So your goal, as a leader, is to help your organizations understand how they can be more profitable by improving their environmental focus.
What Is Happening With the Costs Of Doing Business? In almost every business sector in the U.S.,  the fundamental costs of doing business are rising.   Increasing costs for energy and water are threatening profits and dampening the outlook for the industry.
Increasing Electrical Costs Utilities are another cost category experiencing growth.  As shown in Figure 2,  electricity costs alone rose nearly 1.41 cents per kilowatt hour ¨C almost 20 % ¨C  in the period from 1999 to 2005. (1) National Restaurant Association, ¡°Regular upkeep, efficient equipment can help restaurants control energy costs: As the cost of energy rises, restaurants take steps to cushion the impact of energy on the bottom line¡± (January 11 2005)
Increasing Natural Gas Costs As shown in Figure3,  natural gas prices rose at an average of 8% per year over the last 40 years, and a staggering 16% per year between 2003 and 2006.
Increasing Water Costs / Water Shortages Water is also a major concern for foodservice operators.  Around the U.S., water costs rose an average of 39% from 2002 to 2007.   Did you know that on average  Dishmachines consume 30-50% of all the water used in your kitchen (2). (2) Ecolab Inc proprietary 12-month study of full service restaurant cost factors (2004)
Why is water so important? Because you are charged three times for it.  You are charged to transport it in, you are charged to heat it up (gas or electric) and you are charged to dispose of it. The point is, if you can reduce you water usage, you will in turn reduce your gas and electric as well.
When considering your utilities, its not about how much your bill was, but rather what was your usage.  That¡¯s what is really important. If they can¡¯t control the pricing, then they must control the usage.
Think in terms of profit margins, this is something every manager can relate to. Lets say you can find a way to save $37.50 per month in utility costs. That would yield $450.00 in annual savings
While $450 might not sound like much at first, it¡¯s huge when you think in terms of your profit margin.  Consider this: if your facility operates with a profit margin of around 5 percent, you¡¯ll need about $9,000 worth of sales to earn $450.
Guidelines for Energy Management Overview
Organizations seeing the financial returns from superior energy management continuously strive to improve their energy performance. Their success is based on regularly assessing energy performance and implementing steps to increase energy efficiency. No matter the size or type of organization, the common element of successful energy management is commitment. STEP 1- Commit to Continues Improvement
STEP 1.2 - Create a Dedicated Team Appoint an Energy Director  - Sets goals, tracks progress, and promotes the energy management program. Establish an Energy Team  - Executes energy management activities across different parts of the organization and ensures integration of best practices. Institute an Energy Policy  - Provides the foundation for setting performance goals and integrating energy management into an organization¡¯s culture and operations.
STEP 2: Assess Performance Gather and track data  - Collect energy use information and document data over time. Establish baselines  - Determine the starting point from which to measure progress. Benchmark  - Compare the energy performance of your facilities to each other, peers and competitors, and over time to prioritize which facilities to focus on for improvements. Analyze  - Understand your energy use patterns and trends. Technical assessments and audits  - Evaluate the operating performance of facility systems and equipment to determine improvement potential.
STEP 3: Set Goals Determine scope  - Identify organizational and time parameters for goals. Estimate potential for improvement  - Review baselines, benchmark to determine the potential and order of upgrades, and conduct technical assessments and audits. Establish Goals  - Create and express clear, measurable goals, with target dates, for the entire organization, facilities, and other units.
STEP 4: Create Action Plan Creating an inclusive strategy that establishes roles and actions throughout the organization can help to integrate good energy management practices.  Get buy-in from management and all organizational areas affected by the action plan before finalizing it. Work with the Energy Team to communicate the action plan to all areas of the organization.
STEP 5: Implement Action Plan Create a communication plan  - Develop targeted information for key audiences about your energy management program. Raise awareness  - Build support all levels of your organization for energy management initiatives and goals. Build capacity  - Through training and transfer of successful practices, you can expand the capacity of your staff.   Motivate  - Create incentives that encourage staff to improve energy performance to achieve goals. Track and monitor  - Using the tracking system developed as part of the action plan, track and monitor progress regularly.
STEP 6: Evaluate Progress Measure results  - Compare current performance to established goals. Review action plan  - Understand what worked well and what didn't in order to identify best practices.
STEP 7: Recognize Achievements Provide internal recognition  - To individuals, teams, and facilities within your organization. Seek external recognition  - From government agencies, the media, and other third party organizations that reward achievement.
Key takeaways Waste is profitability in the wrong direction You cannot manage what you can¡¯t measure If you cannot control your pricing, then you must control your usage Labor is something you must economize If you apply focus to a specific area of your business, you will see improvement in that area
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Fact:  The average OSI concept spends approximately $8,500 in utilities per month.  Can it be managed better?
$1,845.31 $1.240.54 $740.48 Total monthly utilities = $3,681.00
When we started working with Bimbamboo, they were averaging around 125 covers served per day, but were washing 132 racks per day.  Through  ongoing monthly tracking, reporting and training  we were able to reduce the numbers of racks washed per day by an average of 36 racks.  Without the proper tracking and training, Bimbamboo might not have been able to accurately asses their operations.  We have helped to saved Bimbamboo an average of $100-$200 a month in associated warewashing costs. Water Savings Perspective TSC Energy Star dishmachine uses 1.7 gal/h20 per rack 36 racks x 1.7 gal/h20 = 61.2 gal/h20 per day 61.2 gal/h20 x 30 days = 1,836 gal/h20 per month 1,836 gal/h20 x 12 months =  22,032 gal/h20 per year
Before Apex, Outback was averaging 210,000 gal per month w/ an increasing trend. After Apex, Outback was averaging 160,000 gal per month w/ an decreasing  trend. Outback started the Ecolab Apex Program in September 2008. A savings of  $383.82  from this time last year. Cost of water = $6.52 Cost of water = $8.37
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Sustainability Presentation

  • 2. What Is Happening In Your Local Market? Climate Wise Climate Wise is a voluntary, city-run program that is dedicated to helping local business and the environment. Through environmental assessments and creative solutions, the City of Fort Collins Climate Wise Team helps businesses tackle modern-day business challenges that impact bottom lines and the quality of life in Fort Collins. Read on to learn how your business can be part of the more than 70 elite local companies that have joined the Fort Collins Climate Wise program. greenprint denver The City and County of Denver's official Climate Action Plan specifies ten priority strategies and actions to be taken by individuals, businesses, and city government to meet a short-term 2012 climate goal of total annual emissions reductions of 1.8 million metric tons of CO2 equivalents, decreasing Denver's per capita greenhouse gas footprint by more than 10 percent relative to 1990 levels: Introduction PACE staff worked with Boulder County restaurants to develop an assistance and certification program specific to the restaurant industry.? The program is designed to provide information to restaurants that will help them improve their operations, reduce waste and energy use, and continue meeting food service quality standards. ? Restaurants that are committed to waste reduction and recycling will now receive recognition for their efforts.? PACE will recognize business that meet the certification criteria through direct mail, periodic ads, press releases identifying newly certified businesses, a framed certificate, and a window decal. ?? Restaurants and Food Service
  • 3. What is a sustainability? Sustainability is making choices today that preserve the options and opportunities for future generations.
  • 4. What is the difference between green and sustainable? Green implies protecting people¡¯s health and well-being through the use of natural products, safer procedures, and the like. (e.g. improved indoor air quality and the use of non-toxic cleaners) Sustainable implies to reducing the environmental impact from the manufacture and use of products. (e.g., forest protection and reducing energy consumption)
  • 5. The practice of making a false or misleading claim about the environmental benefits of a product, service, technology or company practice. What is Greenwashing?
  • 6. Sustainable Balance It is important to realize that no individual or organization can be perfectly sustainable. Eventually you will end up contradicting yourself if you do not allow for any flexibility in your sustainable beliefs. So your goal is to find a balance that meets your organizational needs.
  • 7. Does sustainability matter to every customer? In a financial sense, the answer is yes. Every company must be financially sustainable to survive. So your goal, as a leader, is to help your organizations understand how they can be more profitable by improving their environmental focus.
  • 8. What Is Happening With the Costs Of Doing Business? In almost every business sector in the U.S., the fundamental costs of doing business are rising. Increasing costs for energy and water are threatening profits and dampening the outlook for the industry.
  • 9. Increasing Electrical Costs Utilities are another cost category experiencing growth. As shown in Figure 2, electricity costs alone rose nearly 1.41 cents per kilowatt hour ¨C almost 20 % ¨C in the period from 1999 to 2005. (1) National Restaurant Association, ¡°Regular upkeep, efficient equipment can help restaurants control energy costs: As the cost of energy rises, restaurants take steps to cushion the impact of energy on the bottom line¡± (January 11 2005)
  • 10. Increasing Natural Gas Costs As shown in Figure3, natural gas prices rose at an average of 8% per year over the last 40 years, and a staggering 16% per year between 2003 and 2006.
  • 11. Increasing Water Costs / Water Shortages Water is also a major concern for foodservice operators. Around the U.S., water costs rose an average of 39% from 2002 to 2007. Did you know that on average Dishmachines consume 30-50% of all the water used in your kitchen (2). (2) Ecolab Inc proprietary 12-month study of full service restaurant cost factors (2004)
  • 12. Why is water so important? Because you are charged three times for it. You are charged to transport it in, you are charged to heat it up (gas or electric) and you are charged to dispose of it. The point is, if you can reduce you water usage, you will in turn reduce your gas and electric as well.
  • 13. When considering your utilities, its not about how much your bill was, but rather what was your usage. That¡¯s what is really important. If they can¡¯t control the pricing, then they must control the usage.
  • 14. Think in terms of profit margins, this is something every manager can relate to. Lets say you can find a way to save $37.50 per month in utility costs. That would yield $450.00 in annual savings
  • 15. While $450 might not sound like much at first, it¡¯s huge when you think in terms of your profit margin. Consider this: if your facility operates with a profit margin of around 5 percent, you¡¯ll need about $9,000 worth of sales to earn $450.
  • 16. Guidelines for Energy Management Overview
  • 17. Organizations seeing the financial returns from superior energy management continuously strive to improve their energy performance. Their success is based on regularly assessing energy performance and implementing steps to increase energy efficiency. No matter the size or type of organization, the common element of successful energy management is commitment. STEP 1- Commit to Continues Improvement
  • 18. STEP 1.2 - Create a Dedicated Team Appoint an Energy Director - Sets goals, tracks progress, and promotes the energy management program. Establish an Energy Team - Executes energy management activities across different parts of the organization and ensures integration of best practices. Institute an Energy Policy - Provides the foundation for setting performance goals and integrating energy management into an organization¡¯s culture and operations.
  • 19. STEP 2: Assess Performance Gather and track data - Collect energy use information and document data over time. Establish baselines - Determine the starting point from which to measure progress. Benchmark - Compare the energy performance of your facilities to each other, peers and competitors, and over time to prioritize which facilities to focus on for improvements. Analyze - Understand your energy use patterns and trends. Technical assessments and audits - Evaluate the operating performance of facility systems and equipment to determine improvement potential.
  • 20. STEP 3: Set Goals Determine scope - Identify organizational and time parameters for goals. Estimate potential for improvement - Review baselines, benchmark to determine the potential and order of upgrades, and conduct technical assessments and audits. Establish Goals - Create and express clear, measurable goals, with target dates, for the entire organization, facilities, and other units.
  • 21. STEP 4: Create Action Plan Creating an inclusive strategy that establishes roles and actions throughout the organization can help to integrate good energy management practices. Get buy-in from management and all organizational areas affected by the action plan before finalizing it. Work with the Energy Team to communicate the action plan to all areas of the organization.
  • 22. STEP 5: Implement Action Plan Create a communication plan - Develop targeted information for key audiences about your energy management program. Raise awareness - Build support all levels of your organization for energy management initiatives and goals. Build capacity - Through training and transfer of successful practices, you can expand the capacity of your staff. Motivate - Create incentives that encourage staff to improve energy performance to achieve goals. Track and monitor - Using the tracking system developed as part of the action plan, track and monitor progress regularly.
  • 23. STEP 6: Evaluate Progress Measure results - Compare current performance to established goals. Review action plan - Understand what worked well and what didn't in order to identify best practices.
  • 24. STEP 7: Recognize Achievements Provide internal recognition - To individuals, teams, and facilities within your organization. Seek external recognition - From government agencies, the media, and other third party organizations that reward achievement.
  • 25. Key takeaways Waste is profitability in the wrong direction You cannot manage what you can¡¯t measure If you cannot control your pricing, then you must control your usage Labor is something you must economize If you apply focus to a specific area of your business, you will see improvement in that area
  • 26. ?
  • 27. ?
  • 28. Fact: The average OSI concept spends approximately $8,500 in utilities per month. Can it be managed better?
  • 29. $1,845.31 $1.240.54 $740.48 Total monthly utilities = $3,681.00
  • 30. When we started working with Bimbamboo, they were averaging around 125 covers served per day, but were washing 132 racks per day. Through ongoing monthly tracking, reporting and training we were able to reduce the numbers of racks washed per day by an average of 36 racks. Without the proper tracking and training, Bimbamboo might not have been able to accurately asses their operations. We have helped to saved Bimbamboo an average of $100-$200 a month in associated warewashing costs. Water Savings Perspective TSC Energy Star dishmachine uses 1.7 gal/h20 per rack 36 racks x 1.7 gal/h20 = 61.2 gal/h20 per day 61.2 gal/h20 x 30 days = 1,836 gal/h20 per month 1,836 gal/h20 x 12 months = 22,032 gal/h20 per year
  • 31. Before Apex, Outback was averaging 210,000 gal per month w/ an increasing trend. After Apex, Outback was averaging 160,000 gal per month w/ an decreasing trend. Outback started the Ecolab Apex Program in September 2008. A savings of $383.82 from this time last year. Cost of water = $6.52 Cost of water = $8.37