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04/22/2022

Bergdorf Goodman gets eco-friendly makeover with new chillers

Marianne Wilson
Editor-in-Chief
Marianne Wilson profile picture

Neiman Marcus Group is working toward reducing greenhouse gas emissions and transitioning to 100% renewable energy by 2030.

As part of its commitment, the luxury retailer is collaborating with Trane Technologies to decarbonize its footprint through capital and operating investments in four key areas: renewable energy, electrification, energy efficiency and refrigerant management.

The two companies recently marked a major milestone in NMG’s decarbonization plans at the retailer’s Bergdorf Goodman women’s store in New York City.

The 94-year-old historic landmark received an environmentally friendly makeover, replacing its outdated HVAC equipment with two highly efficient chillers from Trane. The chillers use next-generation, low global warming potential refrigerant, resulting in the site’s elimination of natural gas use (effective Earth Day, April 22, 2022). The building has also been upgraded with Trane controls, optimizing the on-site chiller plant to better manage the system’s run time.

The installation of these chillers will result in an annual reduction of 642 metric tons of carbonand nearly $61,000 in annual energy cost savings. Also, with natural gas pricing on the rise, the elimination of its use in the building will increase savings for NMG even more significantly while mitigating its price risk. (In April 2021 the NYMEX natural gas price was $2.854/MMBtu, compared to $5.336/MMBtu in April 2022.)

The move will contribute to New York City’s goal of reaching net-zero greenhouse gas emissions by 2050 while keeping shoppers cool and comfortable.

“Our partnership with Trane represents the significant investment we are making across the organization to achieve these goals and decarbonize our operations,” said Chris Demuth, senior VP of people services, ESG, & Belonging, Neiman Marcus Group. “This electrification project has enabled us to improve the energy efficiency of this landmark building and transition it to renewable energy so that we can do our part to move New York City and the fashion industry toward a net-zero future by 2050.”

Companywide improvements
Leveraging recommendations from Trane’s customized energy decarbonization roadmap, NMG is implementing significant change through major climate commitments and upgrades at stores across the country. The retailer and Trane, which have worked together for years, are now expanding their collaboration to achieve emissions reductions in line with NMG sustainability goals, beginning with a quantitative portfolio-wide analysis to strategically identify the facilities and initiatives that will deliver the most impactful outcomes for the company, shoppers and shareholders.

Through its comprehensive decarbonization program, Trane is also completing decarbonization assessments at select Neiman Marcus stores, along with energy-efficient improvements and upgrades to building automation systems, rooftop units, LED lighting, energy-conserving fixtures, and indoor air quality technology at Neiman Marcus stores in Dallas; Austin; San Francisco; Troy, Michigan; Pinnacle Point, Texas; Sunrise, Florida; and more.

“Helping businesses achieve their sustainability and operational goals is what we do best,” said Donny Simmons, president, commercial HVAC Americas, Trane Technologies. “We’re proud to play an important role in Neiman Marcus Group’s journey to reduce greenhouse gas emissions and transition to 100% renewable energy by 2030. This is decarbonization in action, and we applaud Neiman Marcus and Bergdorf Goodman for taking bold steps to ensure a more sustainable world.”