The Future Looks Green
There was no mistaking the takeaway from
“A retail store’s biggest impact on the environment is the use of energy,” said John Fojut, VP sustainability, Kohl’s Department Stores, during a presentation at G4R on the chain’s use of renewable energy.
The real beauty of energy efficiency for retailers, of course, is that it is a gift that keeps on giving—particularly with regard to a chain’s profitability. Robert Canipe, senior VP corporate development and corporate responsibility, Food Lion, brought the point home at G4R.
“Since 2002, we have reduced our energy consumption by more than 19%, for a bottom-line benefit of more than $50 million,” he told attendees.
Looking ahead, industry experts agree that the focus on energy conservation will only intensify as the push to reduce greenhouse-gas (GHG) emissions grows. (Commercial and industrial buildings contribute 45% of U.S. GHG emissions, according to the EPA.)
“There is renewed Federal interest in climate change, with executive/legislative action expected,” said Blaine Collison, director, EPA’s Green Power Partnership. “Energy and the climate are both large-scale eco-wide issues and will remain in play for some time.”
Indeed, the EPA is already moving forward with two key climate-change regulatory proposals, including one to establish a mandatory GHG reporting system for companies in a wide spectrum of industries.
“There has been an acceleration in the pace and number of measures to control GHG emissions and a world-wide focus on GHG reduction measures,” said Roger Holt, attorney, Greenberg Glusker, Los Angeles. “The bottom line: Pressure is going to grow to regulate retailers’ GHG emissions.”
Some retailers, of course, have already committed to reducing GHGs. Through the Carbon Disclosure Project, for example, Wal-Mart announced its GHG footprint of 20.2 million metric tons of CO2 equivalent, including 16.2 million tons in the United States. For the filing, it determined that its top sources of GHCs were refrigerants, mobile emissions, purchased electricity and on-site combustion. The chain subsequently announced a comprehensive GHG strategy that includes a long-term goal of being supplied 100% by renewable energy. As the Wal-Mart example shows, tracking the amount of greenhouse gasses a company emits is the first step to reduction.
Holt told attendees at G4R that they could expect to see closer tracking of energy use and emissions across all industries. California, long a bellwether in environmental regulations, has already taken action. A law requiring annual energy-use reporting for all California’s nonresidential buildings went into effect in January 2009. Beginning in 2010, owners of commercial buildings must disclose their energy use and Energy Star rating to potential buyers, leasers and financiers.
Other cities and/or states are likely to follow suit. Washington, D.C., is now requiring private building owners to benchmark their buildings using the Energy Star Portfolio Manager tool and to submit performance data to the city, which will then publish it for the public.
Any way you look at it, the future looks green. And for the majority of retailers, green translates into smarter and better use of energy going forward. For video highlights of the speakers at G4r, go to chainstoreage.com/morevideosG4R.aspx .