7 Ways To Improve Corporate Sustainability While Cutting Costs
7 Ways To Improve Corporate Sustainability While Cutting Costs
7 Ways To Improve Corporate Sustainability While Cutting Costs
7 Ways to
Improve Corporate Sustainability Analyst Insight
while Cutting Costs Aberdeens Insights provide the
analyst perspective of the
Cost-cutting and working toward corporate sustainability top the list of
research as drawn from an
pressures for many organizations. Understanding that these two goals need aggregated view of the research
not be in opposition to each other can help organizations on both fronts. surveys, interviews, and data
The touted concept of the triple bottom line - actions that have better analysis
results for people, the planet and profitability - can become reality when
organizations know where to begin. One big area organizations often find
easy ways to improve is in its buildings / facilities / real estate management.
Based on recent Aberdeen sustainability research, Best-in-Class companies
are 72% more likely to list rising facilities costs as one of their top three
pressures than all other companies.
According to the United States Green Building Council, buildings account
for a significant percentage of environmental impact. Buildings are Best-in-Class Definition
responsible for: The Aberdeen Competitive
Framework defines enterprises
72% of electricity consumption as falling into one of the
39% of energy use following three levels of
practices and performance:
38% of all carbon dioxide (CO2) emissions
Best-in-Class (20%)
40% of raw materials use Practices that are the best
currently being employed and
30% of waste output (136 million tons annually)
are significantly superior to the
14% of potable water consumption Industry Average, and result in
the top industry performance.
Source: United States Green Building Council
Industry Average (50%)
Cutting consumption translates into cost savings and helps the environment Practices that represent the
at the same time. Reducing your overall square footage reduces your average or norm, and result in
electrical consumption and your carbon emissions. Here's how you can get average industry performance.
started.
Laggards (30%) Practices
that are significantly behind the
1. Know what you've got and what you're consuming average of the industry, and
Reducing a footprint - be it carbon, energy, water or space - requires result in below average
knowing what you have so you can determine how to improve it. In fact, performance.
Best-in-Class companies are 164% more likely to be currently tracking
carbon footprint and 84% more likely to be currently tracking water
footprint. Overall, Best-in-Class companies are four times as likely to have
visibility into their facility efficiency than all other companies.
This data clearly shows that top performing companies have made
controlling their facilities expenses a priority. In order to achieve Best-in-
Class performance here's what you need to know:
The actual square footage of your buildings
The percentage of occupancy Best-in-Class Performance
The number of occupants Carbon and cost emerged as
the top two metrics that
Hours of occupancy mattered most for companies
Energy consumption looking to measure the success
of their sustainability initiatives.
Services consumed Therefore, Aberdeen used
three key performance criteria
The distance traveled by employees
that significantly impact both
The LEED or BREEAM certification of your buildings (if you have it) corporate carbon emissions
and operating expenses to
distinguish Best-in-Class
2. Determine how you can reduce space companies. The Best-in-Class
In reducing the amount of space you use, you reduce the amount of energy achieved:
needed to heat it, cool it, and light it. You likely reduce the amount of water An 11% decrease in paper
and services you consume. In determining how you can reduce space, costs
consider how you are using your space and how that can change. Here are
areas to consider: A 10% decrease in overall
facilities costs
30%
Best-in-Class
24% Average
25% 23%
22% Laggard
Percent of Respondents
21%
20%
17%
15% 14%
10%
7% 7%
5% 3%
0%
Rising energy costs Rising cost of Rising cost of
facilities/operations waste/disposal
28%
Environmental management software 23%
7%
24%
Facility management solution 18%
Best-in-Class
18%
Average
24% Laggard
Product traceability software
20%
5%
17%
ERP system sustainability module 14%
11%
74%
Formalized Sustainability Policy
58%
63%
Formalized Paper Reduction Policy
43%
city's customer service: "We can organize relationships with clients much
easier and better than before. It helps with client friendliness."
Key Takeaways
Top performing companies understand that cost savings initiatives and
sustainability initiatives go hand in hand. To achieve Best-in-Class
performance, firms must both focus on reducing consumption and gaining
efficiencies. Integrated workplace management systems can be used as a
foundation to sustainability programs and cost-savings programs. With the
right systems in place, organizations can:
Cut costs through reduction of energy consumption - Top
performing companies were over twice as likely to use energy and
fuel calculators and were 55% more likely to use energy
management software.
Extend the efficiency and lifespan of facilities assets through planned
maintenance - As a complement to planned maintenance, top
companies are four times as likely to have full visibility to facility
related efficiency.
Reduce their carbon footprint - While many strategies can effect
your company's carbon footprint, 21% of top performing companies
using carbon modeling techniques compared to just 6% of all other
firms.
Manage energy supply and costs - Top performing companies are
12% more likely to have a formalized energy reduction policy.
Comply with organizational and federal environmental mandates -
Top companies were more than twice as likely to use a third party
verification provider to check compliance.
Track LEED or BREEAM certification status across an entire real
estate portfolio.
To reach Best-in-Class performance results from sustainability initiatives
requires an investment in base-line technological infrastructure. An IWMS
that becomes central to real-estate and facilities management can help
organizations deliver on their sustainability commitments and reduce their
costs and consumption at the same time.
Related Research
The ROI of Sustainability May 2009
Sustainability Matters The Corporate Executives Agenda:; March 2009
Related Research
Authors:
Carol Baroudi, Research Director, Green IT and Sustainability,
[email protected]
Bill Lesieur, Research Director, Green IT and Sustainability
[email protected]
Kevin Permenter, Research Associate, Green IT and Sustainability,
[email protected]
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