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About RILAThe Retail Industry Leaders Association (RILA) is the trade association for the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.
About RILA’s Retail Sustainability InitiativeRILA’s Retail Sustainability Initiative (RSI) engages retail sustainability executives to share leading practices, develop new processes, and communicate their efforts to the industry’s stakeholders. RILA uses its annual conference, benchmark studies, collaborative partnerships, and research on behalf of retail sustainability interests to help our members learn and develop their programs.
About RILA’s Retail Energy Management ProgramRetailers have a significant opportunity to reduce the energy consumption and associated greenhouse gas emissions of their vast portfolio of locations, to the benefit of both companies and the environment. RILA is committed to helping its members overcome barriers to enhanced energy performance across their building portfolio through its Retail Energy Management program.
Program WorkstreamsRILA and its program members are working to develop implementation models, educate the industry, and spur adoption of implementation models with a focus on three key areas:
• Financial management, by exploring how to “speak finance,” improve project proposal and piloting processes, create innovation funds, and utilize external financing.
• Leased store management, by engaging landlords and internal real estate, construction, and store associate teams to overcome the additional energy management challenges faced in leased store locations. Learn more at www.landlordtenantenergypartnership.org.
• Renewable energy, by partnering with existing renewable energy organizations to educate energy managers on the landscape of renewable energy procurement options.
Learn more and access the program’s resources at www.rila.org/energy
About the Retail Industry Leaders Association (RILA)
Find more at www.rila.org/energy 2
Report Contents
About the Retail Industry Leaders Association 2
Letter from the Retail Industry Leaders Association 4
About this Report 5
A View from Partners 6
Energy Teams and Operations 7
Dimensions of Energy Management 11
Conclusion 43
Find more at www.rila.org/energy 3
2
The Retail Industry Leaders Association (RILA) is proud to
present RILA’s fourth Retail Energy Management Report. For
the past ten years, RILA has provided resources to empower,
enhance, and accelerate sustainability activities in the retail
industry. At the beginning of 2014, RILA launched a new,
targeted retail energy management program to help transform
how the industry manages energy. In 2015, we honed the
project's focus to two key areas that hold major opportunities for
energy programs: financial management and leased store
management. In 2016, we added renewable energy as a third
and final key focus area. In each area, RILA and its program
members are working to develop "leading practice"
implementation models, educate the industry, and spur adoption
of those implementation models.
Research like this report is a cornerstone of our efforts, and is
intended to help companies benchmark how they compare to
others in the industry, where there are opportunities for
improvement, and what resources can help them achieve even
more benefits.
The objective of this report is to act as a snapshot of the
industry’s energy management practices. Please use this report
to understand the core components of a retail energy
management program, benchmark against other retailers, and
find resources to help improve your own energy program.
We look forward to continuing to assist the industry in its pursuit
of leading energy management practices.
From the RetailIndustry Leaders Association
Find more at www.rila.org/energy 4
The Retail Energy Management Report portrays a high level view of the industry’s adoption of various energy management practices. Specifically, we asked large retail companies about their teams and operations as well as the level of maturity at which their companies operate for twenty-three energy dimensions.
Our first set of questions asked retailers about their energy teams and budgets to get a better context for what “energy management” really means at a national retail company.
Retailers were then asked to consider their company’s progress in twenty-three dimensions of energy management.
The twenty-three dimensions and corresponding maturity stages come from RILA’s Energy Management Leadership Model (www.rila.org/energy). The Leadership Model is a standalone roadmap to help retail energy managers optimize their programs. Retailers can use the matrix to first to baseline the maturity of their program and then to identify the highest leverage opportunities for improvement.
In the survey, retailers were asked to select the maturity stage that most closely represents their current state and then the maturity stage that most closely reflects where they plan to build their program over the next two years. There is no prescribed progression; the activities documented for each maturity stage are meant to detail some of the typical activities as programs develop.
Average and leader responses were determined by assigning each stage a number (1 through 5). The leader response is the highest maturity level reported by any respondent for that dimension.
About this ReportRespondents generally fell into four categories, based on most comparable energy load profiles and operations:
1. Large format with grocery (7 retail respondents) Ex. Grocery stores, mass retail
2. Large format without grocery (13) Ex. Department stores, home improvement, pet stores
3. Small format based in malls (14)Ex. Apparel, cosmetic stores
4. Small format not based in malls (10)Ex. Drug/pharmacy, dollar stores
We will continue to update the report over time to see how the industry progresses in the coming years. Will the industry’s efforts continue to accelerate? Will energy management stay housed in the same departments? Will the scope of energy programs continue to grow, or will companies focus their attention on a few particular areas? This report will allow us to answer these questions over time.
This report was developed through an online survey disseminated in March of 2017; 44 retail companies responded, representing more than 100,000 locations and $900 billion in revenue.
Readers should note that the respondent group vary slightly each year, impacting the direct comparability of year over year results.
Find more at www.rila.org/energy 5
A View from PartnersSchneider Electric has seen dramatic changes in Energy Storage, Generation, and Demand Response within the retail industry. By the end of 2017, around 68% of retailers aim to be excelling, leading, and/or implementing best practice programs. Programs that were once built solely on the foundation of environmental attributes such as RECs have grown to include onsite/distributed generation and offsite generation.
Almost unheard of as recently as 2012, corporate offsite Power Purchase Agreements (PPAs) accounted for more than 3 GW of additional renewable capacity in 2015, surpassing new utility capacity. Virtual PPAs have surged into the corporate space as an effective tool to achieve ambitious goals as they address the convergence of energy issues – simultaneously pursuing a solution that ensures supply security, sustainability, and profitability.
And despite federal political uncertainty around energy policy, clean technologies are expected to see significant growth in 2017 and in the years ahead. While Democrats and Republicans don’t often find common ground, Congress extended the investment tax credit (ITC) and production tax credit (PTC) through 2020 with substantial bipartisan support, which maintains the incentive to build new wind, solar, and other renewable energy projects in the near future. Along with rapidly declining capital requirements, renewables will remain an attractive investment in US markets and across the globe.
- Mike FraserVice President, Global Sustainability ServicesSchneider Electric
Edison Energy sees retailers continuing to make strides in two leadership model dimensions critical to sustainability: goal setting and renewable energy generation.
The 2017 Power Forward 3.0 report from WWF, Ceres, Calvert Investments and CDP notes that 48% of the Fortune 500 have now set greenhouse gas, energy efficiency, and/or renewable energy goals, up 5% since 2014.
Meanwhile 10 Fortune 500 companies have set science-based greenhouse gas targets (goals in line with the reductions required to keep global temperatures below 2 degrees C), with an additional 82 reporting they plan to set them in the next two years. Apple, Dell and Walmart are among this group.
Fifty-three of the Fortune 500 have set renewable energy goals, up from 42 in 2014. A select few have pushed much further, with retailers such as Apple, H&M, IKEA, Nike, Starbucks, VF Corp and Walmart are among the 96 companies that by mid-2017 have set targets to purchase 100% renewable energy through the RE100 campaign.
Edison Energy sees this trend continuing to accelerate in the coming years both within retailers own operations and even through the supply chain. For instance, Walmart recently announced their Project Gigaton, which aims to reduce one gigaton (1 billion tons) of greenhouse gas emissions throughout their supply chain. These initiatives are succeeding because retail leaders understand the benefits to both the bottom line, reputation, and the environment.
- Timothy JulianiDirector, Corporate Engagement & SustainabilityEdison Energy
Find more at www.rila.org/energy 6
Energy Teams and Operations
Team StructuresThe first set of questions asked respondents about their energy teams including backgrounds, responsibilities, and relationships to determine how programs at national retail companies are typically staffed and roles are defined.
The average respondent has between two and three executives dedicated to energy full-time, with 16 percent with five or more on the team. Thirty-six percent of respondents have at least one person working on energy part-time, and in four cases, the entire energy team is part-time.
The majority of senior-most energy executive are Managers or higher with increasingly mature programs, with 36 percent of energy roles now having existed for 8 years or more.
ResourcesWe also asked about capital investment thresholds, budgets, and goals to better understand the opportunities and constraints surrounding these roles.
Of the 37 respondents with dedicated energy budgets, 81 percent saw budgets remain the same or increase for 2017 projects that are subject to paybacks of 3 years or shorter for 61 percent of all respondents.
For companies with sustainability departments, only 53 percent feel aligned and mutually supportive. This suggests an opportunity for highly co-dependent departments to form a stronger relationship around energy efforts – particularly since 48 percent of energy teams have, at most, ad hoc meetings with senior executives.
Find more at www.rila.org/energy 7
Age of Current Energy Manager Position Energy Manager Facility Responsibilities Energy Manager Responsibilities
Staff Devoted to Energy Management Title of Senior-Most Energy Manager Energy Manager Professional Backgrounds
Energy Department TeamsRespondents answered a range of questions characterizing retail energy management team size, seniority, background, and responsibilities.
0% 25% 50% 75% 100%
0
1
2-3
4-5
6-9
10+
% of Respondents
Team
Siz
e
Full time
Part time
0% 25% 50% 75% 100%
MarketingPolicy
CommunicationsField
Real EstatePurchasing
OtherOperations
ConstructionFinance
Environmental ScienceBusinessFacilities
Engineering
% of Respondents
1-3
4-8
9-15
16+
0% 25% 50% 75% 100%
Year
s o
f C
urr
ent
Po
siti
on
% of Respondents
0% 25% 50% 75% 100%
Retail Facilities
Offices
Distribution Centers
Data Centers
Manufacturing
% of Respondents
N/A Another Person Energy Manager
0% 25% 50% 75% 100%
Waste/Recycling
Sustainability
External Goal-setting
Water
Energy Procurement
Renewable Energy
Rebates & Incentives
Internal Goal-setting
Energy Efficiency
% of RespondentsEnergy managerAnother departmentOutsourced to a third party
0% 25% 50% 75% 100%
Other
No full time energy…
Analyst or Specialist
Senior Manager or…
Senior Director or…
Vice President
% of Respondents
Find more at www.rila.org/energy 8
Energy Team Reporting Structure Energy Management Department Partners
Capital Investment Payback Requirement Budget for Energy Reduction in 2017
Energy Management Partners & ResourcesRespondents also reported on their energy management team goals, renewable energy strategy, financial hurdles for projects, and budgets.
0% 25% 50% 75% 100%
MerchandisingMaintenance
LegalEnvironmental Affairs
FinanceOther
Store OperationsSustainability / CSR
Property DevelopmentProcurement
Real EstateConstruction & Design
Facilities
% of Respondents
0% 25% 50% 75% 100%
MerchandisingMarketing
Property DevelopmentEnvironmental Affairs
MaintenanceLegal
ProcurementReal Estate
Store OperationsFacilitiesFinance
Construction & DesignSustainability / CSR
% of RespondentsHas voiced support for an energy project
Has shared energy project workload/expenses
0% 25% 50% 75% 100%
N/A – no dedicated budget
Decreased for 2016
Remained the samefor 2016
Increased for 2016
% of Respondents
0% 25% 50% 75% 100%
Less than a year
1-2 years
2-3 years
3-5 years
More than 5 years
No minimum required
It depends
% of Respondents
Find more at www.rila.org/energy 9
Relationship with Sustainability/CSR Relationship with Senior Executives
Corporate Energy Reduction Goals Renewable Energy Policy Engagement
Energy Management Relationships & EngagementFinally, respondents described their relationships with other departments and senior executives, as well as goals and policy engagement.
0% 25% 50% 75% 100%
Needs Improvement
Same team
Sust. sets energy goals
No sustainability team
Good & Improving
Supportive & Aligned
Close relationship
% of Respondents
0% 25% 50% 75% 100%
Less than annual mtgs
Annual meetings
Good & Improving
Needs Improvement
Updates the Board
Monthly meetings
Quarterly meetings
Supportive & Aligned
Ad hoc meetings
% of Respondents
0% 25% 50% 75% 100%
Energy reduction
GHG emissions reduction
Cost reduction
% of Respondents
PrivatePublic 0% 25% 50% 75% 100%
Other
Federal engagement
State engagement
No interest
Minimal interest
Considering engaging
Stay informed only
% of Respondents
Find more at www.rila.org/energy 10
Respondents were also asked to consider their company’s progress in 23 dimensions that define an effective retail energy management program. On the following pages, we track 2014 through 2017 data of the industry’s energy programs. After showing changes in average responses over time, each page documents one of the 23 dimensions by overlaying the industry’s 2014, 2017 and desired 2019 average maturity. Also noted is the maturity of the current industry leader and the industry leader's desired maturity two years from now. These “flags” are placed over the description of the corresponding maturity stage.
Those dimensions, and corresponding maturity stages, were initially described in RILA’s Energy Management Leadership Model. The Leadership Model as a standalone document is a roadmap to help retail energy managers optimize their energy
programs. Retailers can use it first to baseline the maturity of their program and then to identify the highest leverage opportunities for improvement.
In the survey, retailers were asked to select the maturity stage that is best represents their current status and then the maturity stage that most closely reflects where they plan to build their program in the next two years. Having those two data points allowed us to plot the industry’s current average and the highest performing “leader,” as well as their ambitions for development over the next two years.
Further, each dimension was linked to a range of existing resources, case studies, and existing working groups catalogued in RILA’s Energy Management Resource Library.
You can view the complete Leadership Model and the Resource Library at www.rila.org/energy.
Dimensions of Energy Management
Find more at www.rila.org/energy 11
Dimensions of Energy Management
13 Maturity Comparison Across All Dimensions
14 Strategy & Commitment15 Reduction Strategy and Goals
16 Corporate Employee and Vendor Engagement
17 Executive Engagement
18 Resource Investment19 Energy Team
20 Engaging Utilities
21 Leased Store Management
22 People & Tools23 Energy Management Information Systems (EMIS)
24 Measuring, Tracking, and Benchmarking
25 Aligning Incentives for Energy Performance
26 Front Line Employee Engagement
27 Projects & Data28 Financial Management
29 Systems Procurement
30 Building Auditing and Re-Tuning
31 Visibility32 Reporting and Communicating
33Consumer-Targeted Education
34 Collaborative Involvement
35 Energy Consuming Systems36 Lighting
37 Heating, Ventilation, and Air-Conditioning (HVAC)
38 Plug Loads
39 Energy Storage, Generation, and Demand Response
40 Refrigeration
41 Food Service
42 Architecture and Shell Program
Find more at www.rila.org/energy 12
Average Maturity Comparison Across All Dimensions
Leading
Excelling
Progressing
Initiating
Transforming
1)
Re
du
ctio
n S
trat
egy
an
d G
oal
s
2)
Co
rpo
rate
Em
plo
yee
and
Ve
nd
or
Enga
gem
ent
3)
Exec
uti
ve E
nga
gem
ent
4)
Ener
gy T
eam
5)
Enga
gin
g U
tilit
ies
6)
Leas
ed s
tore
man
age
men
t (
pri
mar
ily a
pp
licab
leto
ret
aile
rs in
sh
op
pin
g ce
nte
rs)
7)
Ener
gy M
anag
eme
nt
Info
rmat
ion
Sys
tem
(EM
IS)
8)
Mea
suri
ng,
Tra
ckin
g, a
nd
Ben
chm
arki
ng
9)
Alig
nin
g In
cen
tive
s fo
r En
erg
y P
erfo
rman
ce
10
) Fr
on
t Li
ne
Emp
loye
e En
gage
men
t
11
) Fi
nan
cial
Man
agem
ent
12
) Sy
stem
s P
rocu
rem
ent
13
) B
uild
ing
Au
dit
ing
and
Re-
tun
ing
14
) R
ep
ort
ing
& C
om
mu
nic
atin
g
15
) C
on
sum
er-
targ
ete
d E
du
cati
on
16
) C
olla
bo
rati
ve In
volv
eme
nt
17
) Li
ghti
ng
18
) H
eat
ing,
Ven
tila
tio
n a
nd
Air
Co
nd
itio
nin
g(H
VA
C)
19
) P
lug
Load
s
20
) En
ergy
Sto
rage
, Ge
ner
atio
n, a
nd
De
man
dR
esp
on
se
21
) R
efr
ige
rati
on
22
) Fo
od
Ser
vice
23
) A
rch
itec
tura
l an
d S
he
ll P
rogr
am
2014 Peer Average 2015 Peer Average 2016 Peer Average 2017 Peer Average 2019 Peer Estimates
Find more at www.rila.org/energy 13
The first critical steps toward successfully achieving the desired outcomes of any business program is a strategy that reflects the company's priorities, operating environment, assets, and challenges; as well as strong senior executive commitment.
In this section:
Dimension 1 | Reduction Strategy and Goals
Dimension 2 | Corporate Employee and Vendor Engagement
Dimension 3 | Executive Engagement
Strategy & Commitment
Find more at www.rila.org/energy 14
Overview
The industry's maturity
Example resources to improve
Robust business programs are built on management strategies and goals. Defined energy program strategies enable holistic planning, accountability, and cross-
department alignment by setting achievement benchmarks.
• One of the top 5 dimensions where retailers plan to make the biggest gains in maturity in 2 years
• One of the 5 dimensions with the least difference between the industry average and leaders' maturity
2014 Average
2019 Leader2017 Leader
2019 Prediction
Dimension 1 | Reduction Strategy and Goals
2017 Average
1017 17
3 15
2014
501
717 17
2
2014 Maturity 2017 Maturity
Advanced Energy Retrofit Guide for Retail Buildings (DOE PNNL Report)
Sears Environmental Policy Statement (EPA ENERGY STAR)
Improving the Energy Efficiency of Commercial Buildings (DOE Engagement Opportunity)
Guidelines for Energy Management (EPA ENERGY STAR)
Strategic Energy Planning (Schneider Electric Online Course)
Target Finder Calculator (EPA ENERGY STAR)
Walgreens Evanston Net Zero Energy Retail Store (DOE BBA)
Sprint's Corporate Goal is a Catalyst for Custom Efficiency Strategies for Office, Retail and Data Assets (DOE BBA)
ISO 50001 Energy Management Standard (International Organization for Standardization)
Key Findings:
• Ad hoc efforts, no formal program
• No internal goals or annual internal goals based only on cost reduction
• Defined energy management roadmap with internal energy or greenhouse gas (GHG) reduction goals
• Benchmarking activities with peers through RILA, EEI, PRSM, DOE and/or another program
• Using standard metrics for measuring energy performance
• Public energy efficiency or GHG goal
• Reporting to third-parties such as Carbon Disclosure Project (CDP) and pursuing recognition opportunities
• Setting a goal to improve ENERGY STAR or other third party sustainability measurement score across full portfolio
• Public renewable energy or GHG goal addressing Scope(s) of emissions (I, II, III)
• Using a balanced scorecard (people, planet, and profit) system for reviewing energy strategies and projects
• Integrating supply chain/value chain into energy/GHG reduction strategy
• Collaborating with industry peers to establish sector goals and initiatives
• Setting or set science-based Scope I, II, and III GHG reduction goals
• Net zero store operations goal • Goal to be supplied by 100%
renewable energy by 2050 • Online public dashboard updated
regularly with goal progress and challenges
Find more at www.rila.org/energy 15
Overview
The industry's maturity
Example resources to improve
Both employees and vendors need to be aware of and aligned with a company’s energy management strategy to achieve potential savings. Because all aspects of the
business consume energy, there are universal opportunities to reduce consumption and costs.
• One of the 5 dimensions with the least improved maturity from 2014 to 2017
• One of the top 5 dimensions where retailers plan to make the biggest gains in maturity in 2 years
2014 Average
2019 Leader 2017 Leader2019 Prediction
Dimension 2 | Corporate Employee and Vendor Engagement
2017 Average
7
2311
5 214 17
111 10
16 1711
0
2014 Maturity 2017 Maturity 2019 Predictions
Communications Toolkit (EPA ENERGY STAR)
Energy Efficiency Competition Guide (EPA ENERGY STAR Workbook)
Legrand and City of El Paso Intra-organization Energy Efficiency Competitions (DOE BBA Webinar - Nov. 5, 2013) Toolkit (EPA ENERGY STAR)
• Ad hoc engagement of corporate office employees and vendors
• Training (one-time or limited) relevant corporate office employees and vendors with energy reduction opportunities within their own roles
• Soliciting office energy reduction suggestions from corporate office employees
• Providing support for personal employee energy savings efforts (i.e., biking/public transit incentives, etc.)
• Hosting events for corporate office employees to learn about energy reduction in their retail roles and in their home
• Following internal communications plan to periodically update and engage corporate office employees and vendors
• Encouraging vendors to improve energy performance of their operations
• Hosting annual “Energy Summit” with all vendors that impact energy consumption
• Integrating energy management training into onboarding and continuing education for all corporate office employees and vendors
• Collecting vendor energy performance data through internal questionnaires or a third party (e.g., CDP Supply Chain)
• Holding corporate office cross-departmental energy reduction competitions
• Testing and actively partnering with research groups or vendors to design next generation equipment
• Energy performance evaluation included in vendor selection
Key Findings:
Find more at www.rila.org/energy 16
Overview
The industry's maturity
Example resources to improve
For any business program, the engagement of senior management is crucial. Energy management is no different. Proper executive buy-in requires demonstrating the
business value of energy management and helps ensure that resources are allocated for a complete energy program.
• One of the 5 dimensions with the least improved maturity from 2014 to 2017
• 83% of companies leading or transforming in this dimension meet with senior executives at least quarterly
2014 Average
2017 Leader2019 Prediction
Dimension 3 | Executive Engagement
2017 Average
158
165 45
2211
4 219 14 17
3
2014 Maturity 2017 Maturity 2019 Predictions
USAA Building Upgrade Value Calculator (DOE BBA) Kohl's Speaking the CFO Language: Building the Case for Energy Efficiency with Financial Decision-makers (DOE BBA Webinar - Oct. 1, 2013)
• No stated corporate commitment to energy management from senior executives
• Sharing energy success stories with executive team on an ad hoc basis
• EPA ENERGY STAR Partner
• Sharing energy success stories with executive team on a quarterly basis
• Executives reiterate corporate energy reduction goals directly to stakeholders
• Contributing to public case studies
• Regular access to and visibility of executives on energy management efforts
• Executives refer to energy successes in some external communications
• DOE Better Buildings Challenge partner
• Energy performance shared by executives in quarterly leadership updates to company
• Some C-suite and board level incentives tied to environmental goals
Key Findings:
Find more at www.rila.org/energy 17
Any successful business program requires strong engagement of both internal teams and relevant external stakeholders. In the case of energy management, utilities and shopping center landlord relationships can either enable or inhibit cost reduction.
In this section:
Dimension 4 | Energy Team
Dimension 5 | Engaging Utilities
Dimension 6 | Leased Store Management
Resource Investment
Find more at www.rila.org/energy 18
Overview
The industry's maturity
Example resources to improve
A team devoted to energy management is a crucial component of an effective strategy. A team carries the capacity to review performance, recommend and manage
projects, and communicate results.
• One of the top 5 dimensions where retailers are currently most mature
• One of the 5 dimensions with the least difference between the industry average and leaders' maturity
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 4 | Energy Team
2017 Average
11 12 159
1515 11 13
009 9
23
3
2014 Maturity 2017 Maturity 2019 Predictions
University Of Pittsburgh Medical Center Centralized Energy Management and Capital Set-Aside Fund (DOE BBA Case Study)
• Either no designated energy team or one person or small team responsible for energy management
• No explicit internal instructions to coordinate and fund energy investments across the organization beyond procurement
• Energy manager (or team) with specific function to advance energy projects
• Hiring external consultants or service providers to help implement energy projects or expansion of internal energy team to implement additional energy projects
• Multi-person energy team with division of responsibilities
• Accessing energy training and other educational resources to boost team’s capabilities
• Documenting process to identify, design, select, and execute energy use reduction projects into existing stores
• Periodic cross-functional team meetings to identify and execute on energy management strategy
implement energy projects • Internal champions in key
departments like sustainability, facilities, construction, etc.
• Building design and operation is approached as a system
• Working with universities, non-profits, government laboratories, etc. to supplement energy management resources with additional expertise and research
Role of an Energy Manager - Simplot (DOE BBA Case Study)
Key Findings:
Find more at www.rila.org/energy 19
Overview
The industry's maturity
Example resources to improve
Forming relationships with the energy utilities has a wealth of benefits, from procuring energy at a negotiated rate, to identifying new technologies, and using financial
incentives for energy efficiency upgrades.
• One of the top 5 dimensions where retailers are currently most mature
• One of the 5 dimensions with the least improved maturity from 2014 to 2017
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 5 | Engaging Utilities
2017 Average
313
208 44
1224
4 01 4
18 18
3
2014 Maturity 2017 Maturity 2019 Predictions
Database of State Incentive for Renewables & Efficiency (DSIRE) (DOE)
Making Utility Funds Work for You (DOE BBA Webinar - December 2, 2014)
Technical Solutions Teams (BBA Engagement Opportunity)
Rebate & Solutions Provider Finder (Green Per Square Foot Planning Tool)
EEI Utility Customer Advisory Group
• No engagement beyond setting up utilities for facilities
• Participating in utility-related events like EEI’s National Accounts meetings
• Using some utility energy efficiency incentives
• Identifying optimal rate schedules and procurement agreements
• Developing strong relationships with utility account representatives who share new or custom offerings
• Proactively maximizing appropriate energy efficiency incentives by regularly reviewing programs
• Full-time staff person or external consultant tracking incentive programs
• Developing working relationships with Public Utility Commissions (PUCs) and occasionally testifying on key issues
• Implementing an energy procurement strategy that capitalizes on market-specific timing and opportunity and renewables
• Member of Corporate Renewable Energy Buyers Principles
• Partnering with utilities to develop retail-specific energy efficiency and renewables incentive programs or procurement offerings
• Regularly testify to PUCs on key efficiency and renewables issues
Key Findings:
Find more at www.rila.org/energy 20
Overview
The industry's maturity
Example resources to improve
Having a strong point of contact for landlords (at the corporate and local levels) enables mutually beneficial energy savings opportunities and ensures each party’s energy
reduction efforts are supported by the other.
• One of the top 5 dimensions with the most improved maturity from 2014 to 2017
• On average, retailers that are most mature in this dimension have 12 year-old sustainability programs
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 6 | Leased Store Management
2017 Average
21 19
5 2 0
14 164 7
0413 13 8 3
2014 Maturity 2017 Maturity 2019 Predictions
Energy Aligned Clause (PLANYC Lease Clause) Success in Sustainability Landlords and Tenants Team Up to Improve Energy Efficiency (EPA ENERGY STAR)Green Lease Library (IMT Resource Library)
Green Lease Primer (RILA-IMT Primer) Tower Companies Leveraging Green Leases to Reduce Energy and Water Use (DOE BBA)
IMT Green Lease Guidance & Sample Language for Retailers (IMT Guide)
Green Lease Leaders Program (IMT DOE BBA Recognition Opportunity)
Landlord-Tenant Energy Partnership (RILA, ICSC, IMT)
• No internal (i.e., real estate, construction, legal) or landlord engagement on energy reduction programs
• Educating internal stakeholders about the impact of leased store challenges on operational expenses
• Using stores with submetering and consumption-based billing to extrapolate benchmarks and prove need for energy transparency and lease language revisions
• Member of RILA-ICSC Landlord-Tenant Energy Partnership
• Developing and piloting revised lease language, Letters of Intent, premises questionnaires and other leasing documents to overcome energy management challenges
• Working with construction to increase minimum efficiency of standard build-out spec design
• Coordinating and collaborating with landlords to deliver high efficiency box shell options in new stores to maximize efficiency of tenant fit-out
• Using lease adjustments to correct for split-incentives and/or installing submeters in all new stores
• Periodically discussing energy opportunities (i.e., lighting, HVAC, solar, electric vehicles, etc.) with key landlords for all leases
• Working with landlords to obtain common area energy data
• Recognized by Green Lease Leaders or another program
• Incorporating energy reduction measures and submeter installation in all new and existing lease agreements
• Highly efficient standard build-out spec design
Key Findings:
Find more at www.rila.org/energy 21
Energy consumption is tied to systems and behavior. Key technologies like EMIS systems can automate HVAC and lighting controls so that store associates do not have to manually control units, and produce data to track usage, but incentives and training are key to employee engagement.
In this section:
Dimension 7 | Energy Management Information Systems (EMIS)
Dimension 8 | Measuring, Tracking, and Benchmarking
Dimension 9 | Aligning Incentives for Energy Performance
Dimension 10 | Front Line Employee Engagement
People & Tools
Find more at www.rila.org/energy 22
Overview
The industry's maturity
Example resources to improve
Energy management systems can be used to track consumption and provide a means to automate systems like lighting and HVAC. Automation reduces the burden on
employees to change settings, and energy use monitoring allows for measurement and verification of project outcomes.
• One of the top 5 dimensions where retailers are currently most mature
• One of the top 5 dimensions where retailers plan to make the biggest gains in maturity in 2 years
2014 Average
2017 Leader2019 Prediction
Dimension 7 | Energy Management Information System (EMIS)
2017 Average
816 21
2 17 10
196 21 5
14 186
2014 Maturity 2017 Maturity 2019 Predictions
• USAA Building Upgrade Value Calculator (DOE)
Managing Sustainability & Energy Performance Software – From Spreadsheets to Performance (Schneider Electric Video)
Smart Energy Analytics Campaign(DOE BBA Engagement Opportunity)
Sustainability & Energy Management Software -Which Platform is Best for You? (Schneider Electric Video)
EMIS for Retail, Food Service & Grocery (DOE BBA Webinar - December 9, 2014)
ISO 50001 Energy Management Standard (International Organization for Standardization)
• Basic alert, control, and analytic capabilities
• Measuring and tracking energy on a store-by-store basis at the utility billing level
• EMIS included in new stores • Developing plans to deploy EMIS
in stores, corporate offices, data centers, and DCs
• Periodically reviewing some control set-points, lighting control timers, etc.
• Basic measures are available but not real-time measures
• Implementing EMIS at all facilities • EMIS includes controls, remote
monitoring and tracking for real-time usage, advanced alerts, analytic capabilities, and demand response
• Incorporating a decision tool to identify opportunities for energy reduction across full portfolio
• ISO certified 50001 • Implementing a proactive
maintenance program based on EMIS data to reduce energy waste
• Automated Demand Response 2.0 capable
• Recipient of a DOE Smart Energy Analytics Campaign or other third party award
• Vertical integration of data from EMIS at operational level to enterprise reporting, benchmarking, and analytics
Key Findings:
Find more at www.rila.org/energy 23
Overview
The industry's maturity
Example resources to improve
Gathering and analyzing energy usage data can be done using a combination of data gathering technologies paired with analytics tools. This analysis, when combined with
other data like a store’s operational hours, climate zone, and equipment, can reveal actionable information about energy systems and store performance.
• One of the top 5 dimensions with the most improved maturity from 2014 to 2017
• One of the top 5 dimensions where retailers plan to be the most mature in 2 years
2014 Average
2017 Leader2019 Prediction
Dimension 8 | Measuring, Tracking, and Benchmarking
2017 Average
7
2514
2 05
1912
5 309 13 17
5
2014 Maturity 2017 Maturity 2019 Predictions
Deriving Maximum Value from Meter Data (Wipro Article)
Portfolio Manager (EPA ENERGY STAR Benchmarking Tool)
Submeter Deployment (Legrand Guide)
Kohl's ENERGY STAR Success Story (EPA ENERGY STAR)
Macy's Real-Time Energy Monitoring and Weekly Engagement with Field Staff (DOE BBA)
Schneider Electric Uniform Methodology to Measure Energy Efficiency Improvement (DOE BBA)
• No systematic measurement, tracking, or benchmarking program in place
• Using utility bill pay system and/or EPA’s ENERGY STAR Portfolio Manager to benchmark energy performance and identify anomalies
• Using energy data to identify and analyze best and worst performing stores
• Benchmarking project outcomes with peers through RILA, EEI, DOE or another program
• Measuring and tracking Scope I & II GHG emissions
• Tracking all possible properties in EPA’s ENERGY STAR Portfolio Manager or equivalent software platform and automatically uploading data via web services
• Tracking co-benefits to improved energy performance (like brand value, environmental performance, employee morale)
• Measuring and tracking Scope III GHG emissions, including vendor emissions
• Using enterprise software to perform automated benchmarking, bill/rate analysis, measurement & verification (M&V), and advanced analytics
• Employing energy modeling • Using EMIS and submetering to
measure, track, and benchmark asset-level energy performance
• Working with ENERGY STAR to improve platform and recruit/mentor other members
• Integrating sales data, comp sales, foot traffic, etc. with energy data
Key Findings:
Find more at www.rila.org/energy 24
Overview
The industry's maturity
Example resources to improve
Mechanisms like job descriptions, evaluations, and P&Ls drive departmental performance. However, sometimes these internal incentives inhibit enterprise-wide
performance. For example, it is occasionally the case that one department pays for energy usage while another invests in efficiency upgrades, or a “split incentive.”
• One of the top 5 dimensions with the most improved maturity from 2016 to 2017
• On average, retailers that are most mature in this dimension have 15 year-old sustainability programs
2014 Average
2019 Leader2017 Leader
2019 Prediction
Dimension 9 | Aligning Incentives for Energy Performance
2017 Average
1623
81 0
922
9 4 0114
207 2
2014 Maturity 2017 Maturity 2019 Predictions
Alcoa, HEI Hotels, and TIAA-CREF Tying Energy Efficiency to Compensation & Performance Review (DOE BBA Webinar - Sept. 3, 2013)
• Energy costs not considered in relevant business decisions
• Identifying alignment with internal partners to consider lifecycle costs including facilities, maintenance, real estate, store operations, construction, etc.
• Awards/recognition for biggest contributions to energy conservation
• Store incentives and P&L statements tied to store energy use (as a controllable expense)
• Some departments can recuperate some of the cost savings from energy projects
• Some employee incentives tied to energy performance
• Departments can capture the majority of cost savings and reinvest in new projects or dedicated long-term funding
• District/regional managers and department heads’ bonuses recognize energy performance
• Corporate bonuses recognize energy performance and/or peer rankings
• Evaluation of projects considers total cost of ownership as well as non-financial benefits of project implementation
Best Buy portfolio-wide lighting retrofits using maintenance funds rather than capital budget (DOE BBA Case Study)
Key Findings:
Find more at www.rila.org/energy 25
Overview
The industry's maturity
Example resources to improve
National retailers operate a large number of stores, which are managed by thousands or even hundreds of thousands of associates. Simple behavioral changes, like
managing the heating and cooling loads, are no- or low-cost energy savings opportunities.
• One of the 5 dimensions with the lowest overall industry maturity
• One of the top 5 dimensions where retailers plan to make the biggest gains in maturity in 2 years
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 10 | Front Line Employee Engagement
2017 Average
31
9 6 2 0
2316
2 3 00
2512
6 1
2014 Maturity 2017 Maturity 2019 Predictions
Communications Toolkit (EPA ENERGY STAR Toolkit)
Portfolio Manager (EPA ENERGY STAR Benchmarking Tool)
Kohl's ENERGY STAR Success Story (EPA ENERGY STAR)
Macy's Real-Time Energy Monitoring and Weekly Engagement with Field Staff (DOE BBA)
• No engagement, or education through basic environmental-awareness signage in stores
• Creating guide for store teams ranking behavioral changes by respective opportunity for increased store profitability
• Developing store green team(s) or energy advocates to monitor on-site performance, reduction opportunities, and provide feedback to corporate energy management team
• Including store managers and associates in energy audits
• Posting store energy consumption for all store associates to compare their store to other similar stores
• Leveraging online platform for employees to review store consumption and submit ideas to reduce use
• Providing support for personal employee energy savings efforts (i.e., biking/public transit incentives, etc.)
• Energy awareness campaign throughout stores, including signage, orientations, periodic trainings, competitions, in-store green teams, store meetings, scorecards, newsletters, etc.
• Providing collaborative best practices platform for high-initiative employees to receive recognition while sharing best practices with colleagues
• Training employees to educate customers about company’s energy/ sustainability efforts
Key Findings:
Find more at www.rila.org/energy 26
Defining a project is only the first step towards implementation. Energy managers need financial literacy to gain capital for projects as well as a strong case to procure energy-saving systems. Maintaining and re-tuning those systems after implementation are key to ensuring they continue to run efficiently.
In this section:
Dimension 11 | Financial Management
Dimension 12 | Systems Procurement
Dimension 13 | Building Auditing and Re-Tuning
Projects & Data
Find more at www.rila.org/energy 27
Overview
The industry's maturity
Example resources to improve
Because energy projects face the same financial approval requirements as any other project, it is critical that the finance team has strong energy literacy and the energy
team has strong finance literacy.
• One of the top 5 dimensions where retailers are currently most mature
• One of the top 5 dimensions with the most improved maturity from 2014 to 2017
2014 Average
2017 Leader2019 Prediction
Dimension 11 | Financial Management
2017 Average
12 1710 9
0414 18
6 20 515
21
3
2014 Maturity 2017 Maturity 2019 Predictions
Cash Flow Opportunity Calculator (EPA ENERGY Kohl's Energy Finance Strategy (DOE BBA) Retail Financial Management (RILA)
Energy Project Evaluation Tool (Legrand)
Financial Analysis of Energy Efficiency Projects (Schneider Electric Online Course)
The Transformation of Total Cost of Ownership (Siemens Whitepaper)
Best Buy Maintenance Funds for LED Upgrades
Adidas GreenENERGY Fund (RILA)
Belk Executive Engagement for LED Upgrades (RILA)
Funding & Financing for Energy Projects (DOE BBA)
• Limited interaction with finance team (e.g., only for project approval)
• Simple ROI used to evaluate potential projects
• Energy projects held to stricter payback requirements than other projects
• Allow use of utility and government rebates and incentives for capital improvement projects
• Considering energy reduction projects as part of annual capital planning
• Communicating energy reduction in terms of the bottom line
• Project proposals that meet minimum internal finance requirements are likely to be funded
• Measurement & verification (M&V) designed to track all financial benefits and strengthen future business cases
• Considering ROI, internal rate of return, hurdle rate, net present value, and energy price growth expectations in energy strategy and projects
• Strong working relationship with finance team; present energy efficiency projects as investments
• Maintain list of “shovel-ready” projects if excess capital becomes available
• Formally integrating finance team into energy management decisions
• Finance team often allocates excess capital to energy projects
• Special fund to periodically test new energy reduction strategies/ technologies
• Developing a process with the finance team to quickly scale technologies once proven in successful in pilots
• Evaluating alternative internal and external financing models (beyond rebates and incentives)
• Deploying innovative internal and/or external financing models
• Using environmental key performance indicators (KPIs) like GHG emissions
• Projects that exceed the internal ROI are funded through incremental debt financing
Key Findings:
Find more at www.rila.org/energy 28
Overview
The industry's maturity
Example resources to improve
By instituting efficiency requirements for procuring energy consuming systems, retailers can ensure that their new equipment is as efficient as possible. This saves costs
relative to retrofitting equipment after it is already installed.
• All retailers leading or transforming in this dimension have team members with engineering and/or facilities backgrounds
2014 Average
2017 Leader2019 Prediction
Dimension 12 | Systems Procurement
2017 Average
8
2211 7
04
2310 6 10
6
2214
2
2014 Maturity 2017 Maturity 2019 Predictions
3 Steps to Reduce Energy Supply Costs (Schneider Electric Video)
Energy Procurement & Energy Rate Structures (Schneider Electric Online Course)
Energy Supplier Tactics (Schneider Electric Video)
Technology Performance Exchange (TPEx) (DOE NREL Database)
• Operational costs/energy costs not considered in procurement decisions
• Some consideration of total cost of ownership in procurement decisions and negotiations
• Teams that procure energy- consuming equipment consider total cost of ownership in purchase decisions
• Procuring ENERGY STAR Certified for all qualified products
• Considering energy costs as an integral component of vendor and initiative valuation
• Procurement business rules require net reduction in GHG emissions
Key Findings:
Find more at www.rila.org/energy 29
Overview
The industry's maturity
Example resources to improve
Building systems always require maintenance. Proactively addressing maintenance, through auditing and re-tuning, ensures that energy consuming systems are
functioning at the most optimal efficiency -- and that they will last longer.
• One of the top 5 dimensions where retailers plan to make the biggest gains in maturity in 2 years
• One of the 5 dimensions with the biggest gap between leaders and the industry average
2014 Average
2017 Leader2019 Prediction
Dimension 13 | Building Auditing and Re-Tuning
2017 Average
2110 10 5 2
15 11 152 11
1119
121
2014 Maturity 2017 Maturity 2019 Predictions
• USAA Building Upgrade Value Calculator (DOE)
eco Treasure Hunt Checklist (GE) Staples Fulfillment Center retrofit (DOE BBA) Building Re-Tuning Training (DOE PNNL)
Energy Audits (Schneider Electric Online Course) Building Re-Tuning to Reduce Energy Waste (DOE BBA Webinar - September 2, 2014)
• No comprehensive building re-tuning strategy in place; only re-tuning buildings as issues arise
• Walk-through energy audits on ad hoc basis
• Include utility-performed energy audits as part of routine business reviews with national account reps.
• Strategy in place to periodically audit and re-tune stores, corporate offices, data centers, and DCs to identify and act on reduction opportunities
• Implementing portfolio-wide re-tuning and replacement strategy
• Performing regular retrocommissioning on buildings and using results to judge and motivate GC/ developer/ builder performance
• Re-tuning building systems on a regular schedule
• Working with landlords to ensure common areas are periodically re-tuned
Key Findings:
Find more at www.rila.org/energy 30
Energy projects are often worth pursuit by virtue of their energy savings, but that is not always apparent to internal or external stakeholders. Therefore it is critical to tell success stories, whether through formal reporting or other means.
In this section:
Dimension 14 | Reporting and Communicating
Dimension 15 | Consumer-Targeted Education
Dimension 16 | Collaborative Involvement
Visibility
Find more at www.rila.org/energy 31
Overview
The industry's maturity
Example resources to improve
Both internal and external audiences value reports that highlight energy management goals, strategies, and achievements. Reporting increases awareness, and effective
communications can articulate the value of energy efficiency to a company.
• One of the 5 dimensions with the lowest overall industry maturity
• One of the 5 dimensions with the biggest gap between leaders and the industry average
2014 Average
2017 Leader2019 Prediction
Dimension 14 | Reporting and Communicating
2017 Average
1421
112 0
17 12 113 13
14 14 121
2014 Maturity 2017 Maturity 2019 Predictions
Greenhouse Gas Calculators (Greenhouse Gas Protocol)
Kohl's ENERGY STAR Success Story (EPA ENERGY STAR)
ENERGY STAR Portfolio Manager Benchmarking (EPA ENERGY STAR Engagement Opportunities)
• Internal reporting only to relevant stakeholders
• Private CSR or Sustainability Report
• Energy efforts in public CSR or Sustainability Report or on public website
• Ad hoc reporting to field and corporate staff on energy strategies and successes
• Sharing leading practices and success stories with other organizations at sustainability or energy conferences
• Promoting third party recognitions (e.g., DOE or EPA awards, Platt Global Energy Awards, inclusion in Dow Jones Sustainability Index, etc.)
• Reporting externally to CDP or other formal channels
• Framing success stories in terms of profits generated, costs saved, risks reduced, and/or competitive advantages created
• Generating energy scorecards to compare buildings
• Creating and using an executive energy dashboard
• Acting on benchmarking data to target energy performance improvements where most needed
• Commissioning third-party verification of energy savings/GHG reduction
• Publishing a company newsletter, blog, and/or social media dedicated exclusively to energy
• Comprehensive energy communications strategy
• Developing annual integrated financial and sustainability reports
• Using SASB standards when preparing annual 10-K filings
Key Findings:
Find more at www.rila.org/energy 32
Overview
The industry's maturity
Example resources to improve
Energy reduction is one aspect of a comprehensive sustainability program that can enhance the public image of a company and resonate with consumers, ultimately driving
sales and brand loyalty. Moreover, customers may appreciate learning energy-saving techniques to use in their own homes.
• 86% of retailers leading or above in this dimension have partnered with Sustainability/CSR on a project
• 71% of retailers leading or above in this dimension have a public energy goal
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 15 | Consumer-Targeted Education
2017 Average
18 21
5 3 114 17
6 703
1118
111
2014 Maturity 2017 Maturity 2019 Predictions
Verizon Wireless Communications Success Story (EPA ENERGY STAR Case Study)
• No consumer-facing energy messaging
• Messaging on website and Sustainability or CSR Report
• Basic in-store signage about company’s energy management efforts
• Social media used to occasionally share energy success stories and tips
• Ad hoc product marketing or promotional campaigns to communicate corporate energy efforts
• In-store signage and other channels to promote company’s efforts (in-store intercom announcements, circulars, website, etc.)
• Regular alignment of corporate energy efforts with product marketing or promotions
• Store associates are educated on energy/environmental strategy and communicating message to customers
• Messaging to help consumers reduce their home energy usage
• Promoting/providing alternative transportation to stores
Key Findings:
Find more at www.rila.org/energy 33
Overview
The industry's maturity
Example resources to improve
Engagement through industry groups and with peers builds the visibility of an energy program, and provides a platform for peers to learn, share, and collaborate.
• One of the 5 dimensions with the fewest companies "Leading" or "Transforming"
• On average, retailers that are most mature in this dimension have 10 year-old sustainability programs
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 16 | Collaborative Involvement
2017 Average
8
2613
0 14
2216
2 019
23
8 3
2014 Maturity 2017 Maturity 2019 Predictions
• USAA Building Upgrade Value Calculator (DOE)
The Collaboration Imperative (HBR Article) Adidas, Apple, AT&T, Belk, JC Penney, Office Depot, Outerwall, REI, Sprint, Staples, Target, Tiffany & Co., Verizon, Walmart, Williams-Sonoma Climate Corps Findings (EDF)
Retail Energy Management Program (RILA Engagement Opportunity)
• No involvement in collaborations • Joining results-oriented groups like RILA’s Retail Energy Management Program or DOE’s Better Building Alliance
• Actively sharing practices, developing case studies, supporting peer companies
• Partnering with NGO(s) to identify improvement opportunities
• Identifying opportunities to develop new collaborations with government, NGOs, peers, etc.
Key Findings:
Find more at www.rila.org/energy 34
The energy load profile of a retail store is typically the result of just a few energy consuming systems, namely lighting, HVAC, plug loads, and refrigeration; the efficiency of which is often dictated by the building's shell. Food service is increasingly relevant, as more retailers are offering prepared meals. And the more sophisticated retailers are also using in-store energy storage, generation, and demand response mechanisms.
In this section:
Dimension 17 | Lighting
Dimension 18 | Heating, Ventilation, and Air Conditioning (HVAC)
Dimension 19 | Plug Loads
Dimension 20 | Energy Storage, Generation, and Demand Response
Dimension 21 | Refrigeration
Dimension 22 | Food Service
Dimension 23 | Architecture and Shell Program
Energy Consuming Systems
Find more at www.rila.org/energy 35
Overview
The industry's maturity
Example resources to improve
Lighting can be a major energy expense for retail and subsequently represents one of the best reduction opportunities. Moreover, bulbs and lighting management
technologies are constantly improving as costs decrease and efficiency increases. Assessing the lifetime costs of lighting is becoming industry practice.
• One of the top 5 dimensions with the most improved maturity from 2014 to 2017
• One of the 5 dimensions where retailers plan to mature least in 2 years
2014 Average
2017 Leader2019 Prediction
Dimension 17 | Lighting
2017 Average
3
17 207
1010
26
6 20 0
2215
7
2014 Maturity 2017 Maturity 2019 Predictions
• USAA Building Upgrade Value Calculator (DOE)
CALiPER Report 21.3: Cost Effectiveness of Linear (T8) LED Lamps (DOE PNNL Report)
Macy's Washington, D.C. LED Lighting Retrofit (DOE BBA)
Lighting Energy Efficiency in Parking (LEEP) Campaign (DOE BBA)
Lighting & Electrical Technology Solutions Team (DOE BBA)
Walmart Demonstrates LEDs in the Parking Lot(DOE BBA)
Lighting Upgrades (Schneider Electric Online Course)
Interior Lighting Campaign (ILC) (DOE BBA)
• Periodically review lighting options
• Using T8 fluorescents or similar efficiency equipment for interior lighting
• Using LEDs in new construction for all exterior and sign lighting
• Occupancy sensors where appropriate in new construction
• Testing in-store high performance lighting and developing rollout plans
• Implementing centralized control and monitoring
• Implementing portfolio-wide high performance lighting rollout where appropriate
• Merchandising and energy team coordination in lighting design
• Retrofitting site and sign lighting with LEDs
• Retrofitting with occupancy sensors
• Eligible for EPAct tax deductions due to level of light power density
• Implementing high-performance lighting throughout stores, corporate offices, data centers, DCs, and parking lots
• Daylight harvesting strategy in place
• Building and space designs are optimized to reduce lighting use and follow Illuminating Engineering Society (IES) recommended practices
• Recipient of a DOE Interior Lighting Campaign, USGBC LEEP Campaign, or other third party award
• Piloting next generation systems that integrate lighting with other energy consuming systems
• Working with vendors of other in-store energy-consuming devices (e.g., vending machines) to reduce lighting load of their systems
Key Findings:
Find more at www.rila.org/energy 36
Overview
The industry's maturity
Example resources to improve
Heating, ventilation, and air-conditioning (HVAC) are typically the largest energy expenses for retailers that do not have refrigeration systems. Operating efficiently while
ensuring customer and employee comfort can be achieved by using efficiency-certified units, maintaining them properly, and leveraging automated or centralized controls.
• One of the 5 dimensions with the least difference between the industry average and leaders' maturity
• On average, retailers that are most mature in this dimension have teams of four full time energy professionals
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 18 | Heating, Ventilation, and Air-Conditioning (HVAC)
2017 Average
13 13 175 0
714 16
700
6
20 153
2014 Maturity 2017 Maturity 2019 Predictions
• USAA Building Upgrade Value Calculator (DOE)
Energy Implications of Retrofitting Retail Sector Rooftop Units with Stepped-Speed and Variable-Speed Functionality (DOE NREL Report)
Advanced Rooftop Unit Campaign Replacements (DOE Case Studies)
Advanced Rooftop Unit Campaign (DOE BBA)
HVAC Efficiency and Equipment Optimization (Schneider Electric Online Course)
RTU Specifications: Procurement, Installation, Maintenance, and More (DOE BBA Webinar - November 18, 2014)
Utility Barriers and Solutions to RTU Controllers Incentives (DOE BBA Webinar - March 23, 2015)
• Periodically review higher efficiency HVAC options
• Testing new higher-efficiency HVAC units, O&M practices, and Variable Frequency Drive (VFD) retrofits
• Implementing a quality maintenance program following ASHRAE/ACCA Standard 180
• Developing roll-out strategy for highest efficiency replacement and retrofit options
• Rightsizing of HVAC tonnage based on heat loss/heat gain calculations
• Economizers, CO2 sensors, and RH sensors to inform runtimes and set points
• Performing duct sealing projects to minimize air leakages and accompanying energy waste.
• Highest efficiency HVAC installed throughout corporate offices, stores, data centers, and DCs
• Implementing an active HVAC asset performance tracking program and efficient operational practices
• Periodically reviewing newest technologies
• Recipient of a DOE Advanced Rooftop-unit Campaign (ARC) campaign or other third party award
• Working with vendors to define next generation specifications for integrated HVAC, lighting, and control systems
Key Findings:
Find more at www.rila.org/energy 37
Overview
The industry's maturity
Example resources to improve
Equipment like monitors, vending machines, digital displays, and service products all draw power – typically from outlet plugs. There is opportunity to reduce the energy use
of these devices by procuring efficiency-certified models or working with the vendors to improve the devices’ efficiency.
• One of the 5 dimensions with the lowest overall industry maturity
• One of the 5 dimensions where retailers plan to mature least in 2 years
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 19 | Plug Loads
2017 Average
27
103 0 0
25
8 90 0
11 15 10 60
2014 Maturity 2017 Maturity 2019 Predictions
Assessing and Reducing Plug and Process Loads in Retail Buildings (DOE NREL Guide)
Plug and Process Loads Technology Team (BBA DOE Engagement Opportunity)
• Inventorying the in-store devices that consume plug energy (e.g., vending machines, store displays)
• Installing basic monitoring and controlling devices for plug-in devices (e.g., vending misers)
• Submetering device energy usage across stores to benchmark devices and identify alerts
• Performing research and pilots with DOE’s Plug & Process Loads Technology Solutions Team
• Installing energy-saving devices from vendors
• Using a mobile application to remotely and/or automatically turn on/off plug loads
• Working with device vendors to develop technologies that consume minimal energy necessary for functionality, or to completely eliminate the need for energy
Key Findings:
Find more at www.rila.org/energy 38
Overview
The industry's maturity
Example resources to improve
Supply-side strategies like storage, generation, and demand response can reduce expenses and hedge against future cost increases. These encompass technologies like
onsite and offsite solar, load control devices, battery storage, and phase changers, as well as utility programs and control devices.
• One of the top 5 dimensions with the most improved maturity from 2016 to 2017
• One of the 5 dimensions with the biggest gap between leaders and the industry average
2014 Average
2017 Leader2019 Prediction
Dimension 20 | Energy Storage, Generation, and Demand Response
2017 Average
15 20
5 3 517 12 9 5 1
9 816
92
2014 Maturity 2017 Maturity 2019 Predictions
Demand Responsive Lighting: A Scoping Study (DOE LBNL)
jcpenney Using On-site Renewable Energy (EPA ENERGY STAR)
Green Power Partnership (EPA Recognition Opportunity)
Purchasing Green Power (EPA Guide)Walgreens Evanston Net Zero Energy Retail Store (DOE BBA)
Introduction To Commercial Building Control Strategies And Techniques For Demand Response (DOE LBNL Report)
Screening Sites for Solar PV Potential (EPA Decision Tree)
Whole Foods Market Showcase Project (DOE BBA)
The Business Case for Fuel Cells (Breakthrough Technologies Institute [BRT] Report)
• No energy storage, generation, or demand response programs in place
• Purchasing Renewable Energy Credits (RECs) to offset a portion of electricity purchases
• Installing a few onsite solar installations using Power Purchase Agreements (PPAs)
• Implementing a demand response program
• Researching energy storage
• Testing a variety of onsite renewable energy technologies across facility types
• Developing a renewables strategy, including a financial plan and prioritization of opportunities by state/region, participation in community solar, remote net metering, and virtual net metering
• REC procurement policy • Demand response participation in
most viable markets • Energy storage installed in some
viable markets
• Implementing strategic utility, onsite, and offsite procurement strategy
• Testing new fuel cells, geothermal, battery storage, phase change materials, or other storage and generation technologies
• Maximizing use of demand response
• Developing renewable energy purchasing cooperatives with landlords and other retailers
• Making large offsite renewable energy purchases
• Working with utilities to develop green power offerings
• Meeting or exceeding 100% of energy supplied by renewables
• Procurement subject to additionality requirement
Key Findings:
Find more at www.rila.org/energy 39
Overview
The industry's maturity
Example resources to improve
Refrigeration represents the largest energy expense for retailers that sell grocery products in their stores. Because of their high energy demand, efficiency-certified
refrigeration systems, relatively minor retrofits, or even design changes can yield substantial returns.
• One of the 5 dimensions with the least improved maturity from 2016 to 2017
• One of the 5 dimensions where retailers plan to mature least in 2 years
2014 Average
2017 Leader2019 Prediction
Dimension 21 | Refrigeration
2017 Average
3 4
1
42
68
4 3 22
8 7
24
2014 Maturity 2017 Maturity 2019 Predictions
Advanced Retrofit Guide for Grocery Stores (DOE NREL Guide)
Fresh & Easy Reduces Gas and Electricity Expenditures by Retrofitting Open Refrigeration Display Cases with Doors (DOE BBA)
Refrigeration Technology Team (DOE BBA Engagement Opportunity)
Refrigeration Commissioning Guide (ASHRAE Guide)
Whole Foods Market Showcase Project (DOE BBA)
• Aware of refrigerant types in portfolio & associated energy factors
• Purchasing only base model efficiency refrigeration
• Doors are used on 80% of all low temp cases
• Choosing some refrigerant types in portfolio based on associated energy factors
• ENERGY STAR procurement policy for all qualified products
• Routinely cleaning compressors and other components that can impact efficiency
• Doors are used on 100% of low temp cases
• Using doors on 50% or more of medium-temperature refrigerated display cases (excluding fresh bulk produce)
• All compressors are remotely located outside the store to avoid waste heat issues (or waste heat is vented/piped outside)
• Controlling anti-sweat heaters in new cases
• Using doors on 80% or more of medium-temperature refrigerated display cases (excluding fresh bulk produce)
• Anti-sweat control in all cases • Utilizing demand control kitchen
ventilation (DCKV)
• Piloting stores using natural refrigerants or alternative approaches to dramatically lower the climate impacts associated with direct emissions of refrigerants
Key Findings:
Find more at www.rila.org/energy 40
Overview
The industry's maturity
Example resources to improve
Food preparation and presentation equipment, generally found in grocery stores, can consume a significant amount of energy. Efficiency-certified models and improved
operational procedures can reduce energy consumption and the associated costs.
• One of the 5 dimensions with the least improved maturity from 2016 to 2017
• One of the 5 dimensions where retailers plan to mature least in 2 years
2014 Average
2017 Leader2019 Prediction
Dimension 22 | Food Service
2017 Average
20
3
0 1
5 5 5
0 1
4
1
9
1 2
2014 Maturity 2017 Maturity 2019 Predictions
Technical Support Document: 50% Energy Savings for Quick-Serve Restaurants (DOE PNNL)
Food Service Technology Center
• Some attention paid to operational procedures, like ensuring walk-in doors don’t remain open
• Establishing guidelines for efficient operational procedures
• Installing high-efficiency (e.g., ENERGY STAR) equipment in some stores
• Installing high-efficiency (e.g., ENERGY STAR) equipment in all new stores
• Planning for continual improvement through retrofits or replacements
• Build-out specs require nearly all equipment to be of highest-available efficiency
• Benchmarking energy metrics are extended to deli/food service areas and energy efficiency measures are identified, approved, and adopted
• Testing next generation food service efficiency technologies with vendors
• Actively using energy information from benchmarking or EMIS to analyze continuous opportunities to reduce energy
Key Findings:
Find more at www.rila.org/energy 41
Overview
The industry's maturity
Example resources to improve
Design and construction, including the building envelope, dictate a significant portion of lifecycle energy usage in a building by impacting lighting, heating, and cooling
systems. Examining build-out specifications can identify opportunities to reduce energy consumption from the onset.
• One of the 5 dimensions with the lowest overall industry maturity
• One of the 5 dimensions with the least improved maturity from 2014 to 2017
2014 Average
2019 Leader2017 Leader2019 Prediction
Dimension 23 | Architecture and Shell Program
2017 Average
1115 15
4 3
14 1710
30
3
13 17
9
2
2014 Maturity 2017 Maturity 2019 Predictions
The Home Depot Upgrades its Corporate Building Prototype (DOE BBA)
EnergyPlus Energy Simulation Software (DOE Software)
Advanced Energy Design Guide for Small Retail Buildings (ASHRAE)
Advanced Energy Design Guide for Medium to Large Retail (ASHRAE)
• Have a standard build-out document with energy specs
• Meets local, state, and federal codes
• Build-out specs include efficiency requirements for most energy intensive systems like refrigeration, HVAC, lighting, etc.
• Energy team is a decision-making partner on new store construction
• Using third-party or equivalent standards such as LEED for Retail, LEED Volume, LEED for Commercial Interiors, BREEM, etc.
• Using weather stripping and double pane windows where applicable
• Using ENERGY STAR by Design tool
• Building design is approached as a system, and achieving 20% or better than ASHRAE code by design
• Building and construction processes use an enhanced commissioning process on every building
• Building design is approached as a system, and energy points are maximized by achieving 50% or better than ASHRAE code by design
• Commissioning data is integrated with the EMIS program to provide performance and startup data tracking (for incorporation into benchmarking programs)
Key Findings:
Find more at www.rila.org/energy 42
Energy management continues to be a cornerstone of sustainability programs and facilities expense management for obvious reasons. Relative to other expenses or impact areas, energy consumption is highly quantifiable, making projects easier to measure and verify. And as low-hanging fruit is addressed, opportunities in stakeholder engagement - stores, landlords, utilities - become more important.
Renewable is one of the most notable areas where new opportunities continue to present themselves. Even as sustainability programs expandto management of all resources and explore new concepts, energy has moved back into prominence. More companies recognize compelling business cases
in new renewable energy sourcing models to support public goals - so much so that some companies are getting increasingly involved in state-level policy converations to ensure a competitive market for these procurement options.
What is next for RILAAs new approaches - for both technological and stakeholder engagement - evolve, so will retailer management strategies and opportunities for research and leading practice sharing. We look forward to continuing to help retail energy executives leverage their collective learnings.
Conclusion
Find more at www.rila.org/energy 43
