The Business Case for an Energy Efficiency Program

In 2009, Skanska was among the first companies to sign the EEB Manifesto and the company introduced its definition of green – the Skanska Color Palette™ from Vanilla to Deep Green the same year. Building on the Color Palette in 2011, Skanska issued a set of 10 Color Palette Segment Cards – each explaining the trends and drivers of specific industry segments, benefits of green, examples of green solutions, and recent Skanska project examples. The segment cards were handed out to Skanska’s top 600+ managers at the company’s global management meeting in 2011 to support their Green market-making efforts. At the Skanska Management Meeting in 2012 two sessions on the business case for greening the company’s own offices were held, using Business Unit examples, which were supported by a set of 6 green snapshots. Two excerpts from the Skanska Snapshot on Skanska´s Own Offices can be found below:

The powerful business case at one of Skanska’s manufacturing facilities in the USA:
“Reducing exposure to rising energy costs, while future-proofing the investment in premises, led Skanska Koch to install an 86,000sq. ft. (8,000sq. m) solar farm on their New Jersey manufacturing plant. Two years on, the move to renewable energy has cut the utility bill by 65% and generated almost 1GWh of electricity. The decision to move towards complete energy self-sufficiency was supported by strong financial benefits including Federal Government tax credits and the Solar Renewable Energy Credits (SREC) that apply to certain states. By taking advantage of these, we were able to sell our SRECs on the futures market, thereby hedging our $2m investment in the solar energy project; an excellent example of combining environmental responsibility with sound financial business decisions.”
The benefits of Skanska’s Empire State Building Office Refurbishment:
“The Empire State Building fit out is a landmark project for many reasons. In a country where carbon and climate change are not high on the agenda, providing customers with hard facts about commercial and competitive advantage is vital. The new office has saved 57% in electricity costs – USD 650,000 (SEK 4.3m) over 15 years. In the first two years of occupancy, Skanska reported a reduction of 15-18% in absenteeism. Monitoring and measuring everything from water consumption to recycling of materials and making data publicly available has ensured that the commercial and financial benefits of the Journey to Deep Green™ are more widely understood.”i

Confirm the business case and gain management approval for selected EEMs

“A detailed report is prepared for projects confirming energy saving targets, planned interventions, construction program, disruption control if the building remains occupied, and any associated costs. The report also considered ROI for the overall project and each intervention individually, and is used as the formal project appraisal / confirmation. In addition, measurement and verification reporting is confirmed at this stage.

Skanska’s Bentley Works regional manufacturing and servicing hub in Doncaster, UK, was redeveloped into a zero primary energy site that provides a good return on investment for the company through reduced energy costs. Skanska used lifecycle optioneering to identify the most optimal EEMs that provide the best long-term value for money and environmental efficiencies throughout the lifecycle of the buildings. The additional cost of the various EEMs incorporated into the project has a total payback period of 11 years. This includes a biomass boiler with an estimated 3.8 year payback period and the photovoltaic system with a 7.4 year payback, which were both supported by Government incentive schemes.

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