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The Cost (and Payback) of Going Green

November 9th, 2006 · by Tim Minahan · 2 Comments · enviro/social sustainability, supply management

A recent Fortune Magazine article highlighted how Adobe Systems has become the first company to receive a platinum award from the non-profit U.S. Green Building Council. What’s impressive is that the software maker achieved this honor by retrofitting existing offices at its San Jose headquarters by installing everything from fluorescent lights to motion sensors to waterless urinals.

(Gross side note: I was amazed to learn that each water-controlled urinal installed at Microsoft’s headquarters saves more than 40,000 gallons of water annually. I have profiled the green approaches of Microsoft and Google in a previous post.)

Adobe has invested $1.1 million in 45 energy efficiency projects to date, yielding nearly $1 million in annual savings. For you math majors, that’s full payback on its initial investment every 13 months.

Many of Adobe’s tactics are simple for other companies to emulate and could provide an easy means for supply managers to chip away at their year-over-year cost savings goals. Examples of Adobe’s green initiatives include:

  • Replacing incandescent bulbs with energy-saving compact fluorescent lights cost Adobe $11,000. The swap will reduce the company’s lighting and energy bill by $105,000 annually.
  • Adding Internet-based controls to adjust the flow of the company’s irrigation systems according to weather patterns cost the company $3,610. The move will cut Adobe’s water bills by $10,000 per year.
  • Introducing timed outages reduces the operating hours of garage exhaust fans and outdoor lighting cost only $150 to implement. Adobe estimates that the simple move is shaving $68,000 off its annual power bill.

Results like that beg one question: What’s holding you back?

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2 responses so far ↓

  • 1 Supply Excellence » Sustainable Supply: There’s No Denying It // Jan 24, 2007 at 2:11 pm

    [...] I have chronicled on Supply Excellecne how companies like Hewlett-Packard, Toyota, Adobe Software, Microsoft, Google, Wal-Mart, and others have used sustainable supply strategies for a competitive advantage. I have even shown how supply management organizations, like HP and Airbus, are beginning to use environmental and social responsibility as part of their supplier selection and performance measures. [...]

  • 2 Supply Excellence » Welcome Aboard the Sustainability Bandwagon // Feb 13, 2008 at 10:32 am

    [...] Energy conservation: Adobe Systems is saving millions of dollars each year by retrofitting its existing buildings with energy efficient incandescent lights and power-control systems. Sun Microsystems has taken aim at power-sucking IT equipment. “IT on average spends 25% of their budget on power,” said Ken Leinweber, Strategic Sourcing Manager, Procurement and Operations Strategy at Sun. “Innovating products and solutions that use less power is critical to the environment [and our operating budget].” [...]

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