How California Companies Can Save Money by Reducing Warming Pollution

Published on: August 30, 2006

What’s a ball of yarn got to do with solving global warming? The owner of Bentley Prince Street, California’s largest carpet manufacturer, will tell you it’s got everything to do with taking simple steps to cut back on energy consumption, reduce global warming pollution and, in so doing, save the company money.

"Reducing waste has saved us so much money, it has enabled us to invest in new and innovative projects," says Judy Pike, Director of Sustainability for Bentley Prince Street, California’s largest carpet manufacturer. "Being leaders in solving global warming has also made our company more competitive and better able to withstand rising energy costs."

Across the state, cutting global warming pollution can be good for California businesses, according to a new report by Environment California Research & Policy Center entitled, Greening the Bottom Line: California Companies Save Money by Reducing Global Warming Pollution. The report profiles a dozen businesses and institutions that have collectively reduced their global warming pollution by more than 100 million pounds per year while saving $13 million each year in operating costs.

"Solving global warming is more than about saving the polar bears; it is also about saving businesses money," said Bernadette Del Chiaro, Global Warming Advocate with Environment California Research & Policy Center and co-author of the Greening the Bottom Line report. "The experience of California companies flies in the face of claims that solving global warming will be bad for business."

The businesses studied in the report vary in size, operate within different sectors of the economy, are located throughout the state and have employed various strategies for reducing their global warming pollution.

"The global warming crisis is not just an issue facing the people of California, it’s an issue that touches every person around the globe – for generations to come," said Speaker of the California State Assembly, Fabian Nunez. "This report clearly spells out that the solution to the crisis that we face has a silver lining. We have the opportunity to build an entirely new sector of our economy in California, creating tens of thousands of new, good paying green jobs."

"We owe it to future generations to combat this pressing issue," said Assemblymember Fran Pavley. "By investing in renewable energy technologies and learning to become more energy efficient, California businesses can be on the forefront in battling global warming while saving money."

Highlights of the study include:

HIGH TECH: Adobe Systems Inc. has implemented 45 energy efficiency and conservation projects at its San Jose headquarters. They invested $1.1 million; reduced operating costs by just over $1 million per year; cut emissions by 16% (more than 11 million lbs) while increasing the number of employees.

RETAIL: Westfield Corp. has upgraded lighting sys­tems at its shopping centers with efficient technology and is expanding efforts nationwide. They expect to reduce energy costs by $2.6 million per year nationwide, paying off investments in less than 24 months while reducing global warming pollution by 40 million lbs per year nationwide.

FARMING: P-R Farms installed one of the largest privately-owned solar sys­tems on the roof of its packing house near Fresno. The project cost $3.2 million after rebates and credits, reduced monthly electricity bills by up to 80% and will reach full payback in 10 years. Prevents 1.6 million lbs of pollution annually.

COMMUTERS: San Diego Assoc. of Governments (SANDAG) assisted employers and commuters with alternative transportation to and from work. As a result, they prevented nearly 2 million commuting trips, saved more than $50 million in fuel, and the reduced vehicle travel avoided 125 million lbs of pollution.

MANUFACTURING: Bentley Prince Street improved lighting efficiency and installed solar panels at their City of Industry carpet production facility. They reduced the cost of manufacturing a unit of carpet by 48% since 1994, saving $3.8 million in 2005 while reducing global warming pollution by 75% in the last decade.

MEDICAL: Children’s Hospital Central California upgrad­ed lighting and mechanical efficiency at their Madera facility. The project saves the hospital more than $400,000 per year on energy costs; many projects paid for themselves in less than 1-2 years. Cut emissions by more than 5 million lbs annually.

BUILDER: Clarum Homes constructed the country’s largest community of zero-energy homes and apartments, Vista Montaña, in Watsonville. Homeowners save an average of 67% on their electricity bills, or over $1,200 per year while preventing roughly 2 million lbs of pollution annually.

Greening the Bottom Line highlights the simplicity of pollution, demonstrating that when companies think about their energy use and global warming impacts, they find opportunities to use less energy, more efficiently, and generate it from renewable sources. At the same time, these actions can help companies achieve greater financial success.

"This report demonstrates the kinds of gains that can be had across California, and across the country, from an organized effort to reduce the state’s global warming pollution," said Bernadette Del Chiaro.

Legislation to mandate cuts in global warming pollution, AB 32, is pending before the California State Legislature. In addition, California Congressman Henry Waxman has introduced legislation to set similar mandate at the national level.

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