The Green Initiative

Brought to you by the United States

Environmental Protection Agency

April 11th, 2012

Prepared by: Heather Reade Jeremy Rohrer Meagan Harkness

Environmental Protection Agency

1200 Pennsylvania Avenue Northwest, Washington, DC 20460 (202) 272-0167 www.epa.gov

April 3, 2012 Board Members The Yoshi Company 234 East Washington Avenue Phoenix, AZ 82049 Dear Board Members: In the following document, we will inform you of the beneficial impacts that going green would have for your ever-growing company. We have assembled some of the most cost effective and productive ways in which your company can implement environmentally friendly practices. Here at the Environmental Protections Agency, we are confident that this report will provide valuable insight on how long-term sustainable practices align with your companys business goals of reducing costs and increasing profitability. This analytical report was designed to show the three main areas in which your company can improve its environmental practices: Becoming more energy efficient in everyday business and long-term costs. Providing a carbon offset initiative that will help decrease the overall carbon footprint. Creating an effective waste management program that will utilize recycling and reusable products. Research includes utilizing the many resources of our EPA website and other respectable environmental agencies. We will also be providing you with examples of other corporations major accomplishments in the green movement for insight into how going green can really work into a successful business plan. By analyzing large companies, such as Wal-Mart and Safeway, The Yoshi Company can create its name as a leader of environmentally friendly grocers. We would be pleased to discuss the contents of this report and any further questions with you at your request. Thank you for your interest in creating a more environmentally friendly company, and we are pleased to assist your endeavors in any way possible. Sincerely,

Heather Reade Head of EPA Outreach Program

Attachment

Contents
Executive Summary...................................................................................................................................1 Energy Efficiency.......................................................................................................................................2 Solar Energy....................................................................................................................................2 Reducing Energy Usage..................................................................................................................3 Conclusion......................................................................................................................................4

Waste Management and Recycling............................................................................................................4 Packaging........................................................................................................................................4 Recycling........................................................................................................................................6 Reusable Bags.................................................................................................................................7 Conclusion......................................................................................................................................7 Carbon Offset.............................................................................................................................................8 Biofuel.............................................................................................................................................8 Forestry Fund..................................................................................................................................9 Conclusion....................................................................................................................................10 Conclusion...............................................................................................................................................10 Works Cited..............................................................................................................................................11

List of Illustrations
Figure 1.1 Color of Rooftops...................................................................................................................................3 Figure 2.1 Updated Great Value yogurt containers..................................................................................................5 Figure 2.2 Plastic Recycling Chart..........................................................................................................................6 Figure 2.3 Blue Lots reusable produce and bulk food bags.....................................................................................7 Figure 3.1 FreshDirect biodiesel..............................................................................................................................8 Figure 3.2 CCB Standards.......................................................................................................................................9

Executive Summary
The Yoshi Company can benefit from adopting the U. S. Environmental Protection Agencys Green Initiative Program. This program incorporates the best and most effective environmentally friendly practices. Not only can going green be profitable for the company, but a positive public image can also be gained. A study of the accomplishments of other grocers, such as Wal-Mart, as well as different program ideas, gives evidence of how being environmentally friendly is an attainable goal. The Environmental Protection Agency firmly believes that by implementing the Green Initiative, The Yoshi Company can save energy and reduce its carbon footprint in a cost effective way. Our conclusion that The Yoshi Company will benefit from The Green Initiative is based on EPA research findings, articles from various business journals, and from the successes of other grocery corporations environmental programs. Review of conducted research reveals the three main aspects of The Green Initiative: Energy Efficiency. By incorporating various energy efficient technologies and practices, The Yoshi Company can expect to save thousands of dollars in energy bills. Such adaptations include solar panels, increased insulation, automated lighting and air-conditioning systems, Energy Star compliant computers, virtualized servers, turning off servers at night, more efficient HVAC units and refrigeration systems. Waste Management. By utilizing a cost effective waste management program, The Yoshi Company has the opportunity to eliminate waste and save money. Converting waste into resources can lessen the costs of packaging and supplies, and producing less overall waste can lessen the cost of waste removal, thus increasing company profits. Carbon Offset. By effectively cutting down on overall carbon footprint, The Yoshi Company can increase its revenue in the long run, while also creating a reputation of being environmentally friendly with its customers and competitors . From converting to biofuels, to creating carbon offset programs, these changes will allow The Yoshi Company to decrease its carbon footprint and gain a valuable reputation for it environmentally friendly business practices. With these guidelines outlined in The Green Initiative Program, it is recommended that The Yoshi Company consider implementing the aforementioned practices. By doing so, your company can increase profits, aid the environment, and create a better future for generations to come 1

Introduction
In the following proposal created by the United State Environmental Protection Agency, environmentally friendly practices are outlined to inform The Yoshi Company of how to effectively implement The Green Initiative. By following through with the initiative, The Yoshi Company has the opportunity to become a leader in the green movement while saving money and increasing its profits. Energy efficiency, waste management and recycling, and reducing its carbon footprint are the three objectives for The Green Initiative.

Energy Efficiency
As energy costs continue to rise, companies may find that they can no longer afford to waste money. By implementing various energy efficient practices and technologies, companies can significantly reduce its costs. Just by using Energy Star equipment, the Army and Air Force Exchange Service is expected to reduce its costs by more than 32% (Elan, 2007). University of Minnesota expects an annual savings of more than $1.4 million after establishing a policy of turning off its IT devices at night (Greengard, 2009). It has already been seen by a myriad of different companies, the green route is good for business (Nelson, 2010).

Solar Energy
Harnessing energy from the sun is one of the most reliable and cost effective investments a company can make; the sun is constant and free! One of the easiest ways to utilize the sun is through daylighting. By strategically placing skylights, entire buildings can be illuminated with sunlight during the day, saving tons of money that would otherwise be spent on electric lighting. While directly replacing the need for lighting, using sunlight also makes workers more efficient (Nelson, 2010).

A better-known method of using solar energy is with solar panels. Every year, solar panel technology is becoming more and more efficient, and therefore more cost effective. It used to be that businesses would have to wait 8-12 years to see a return on investing in solar panels; today it is only 4 years. Using traditional energy resources, companies can expect an annual 5% increase in its energy costs. When using solar panels, companies get virtually free energy for the duration of the life of the solar panel, that usually being 20 to 25 years (Nelson, 2010).

Even simple measures like increasing insulation and changing the color of rooftops can help utilize solar energy. White rooftops help reduce energy costs by collecting less heat than a black rooftop would; less money would have to be spent cooling the building down (Grimaldi, 2005). Insulation helps to keep the indoor temperature more stable throughout the day, decreasing the energy spent regulating the temperature (Powell, 2002).
Figure 1.1: Since black is the absorption of all color wavelengths, a black rooftop will trap more heat inside; therefore, a white roof will keep the building cooler, because white is the reflection of all colors (Chao, 2010)

Reducing Energy Usage

While getting more energy for the same cost reduces energy costs,

there is a far simpler way: use less energy! IT departments waste tons of money by running everything 24/7, but it often isnt necessary. In the mindset of a supermarket, the energy costs of keeping certain foods cold is astronomical, yet they can be reduced by recycling the cold air within the refrigeration unit. Automated streetlights and temperature control systems help to reduce wasted energy. As one might notice, there is a myriad of solutions to reducing energy consumption. It is obvious to anyone that the IT department uses a lot of energy, but just how much? Xasax found that it used to cost them $2400 annually to power, cool, and to host each physical server; after using more energy efficient practices, it only cost them $240 per server. How did they reduce its costs? They saw that they didnt need to use as many servers at night, and turned them off. Updating its technology allowed for more processing speed with lower energy usage. Adopting virtualization, hosting several virtual servers on one physical server, utilized more of the existing servers capabilities and reduced the number of physical servers needed (Greengard, 2009).

Wal-Mart has recently been recognized for its overhaul of inefficient energy systems for more efficient practices. By adopting more efficient HVAC units and lighting systems, they are expected to save $75,000 annually in energy costs in just one of its stores. They use larger HVAC units with more output variability to adjust how much air conditioning they use at different times of day. The electricity they use in the store is also used as a space heater, using less energy to regulate the stores temperature. Shaws Supermarkets have 3

linked its refrigeration units and air conditioning systems together to save energy. As refrigeration units use more energy, the heat produced is drawn away to power the air conditioning system, therefore reducing the heat in the refrigeration areas, and reducing the energy needed for air conditioning (Cutting Costs, 1996).

Conclusion
The Yoshi Company could potentially save thousands of dollars by investing in more energy efficient practices and technologies. From simple changes like changing the color of the rooftop, to implementing automated lighting systems, The Yoshi Company can go green while saving green.

Waste Management and Recycling

When thinking about the Go Green movement, waste management and recycling are often the first things that come to mind. The Environmental Protection Agency website states that, recycling turns materials that would otherwise become waste into valuable resources("Recycling," 2012). As a grocery retailer, The Yoshi Company has an opportunity to create a new waste management and recycling initiative to eliminate waste and create resources. By analyzing Wal-Marts programs and other possible routes to obtaining a waste-free company, a waste management plan for The Yoshi Company is outlined in the following section of The Green Initiative proposal. Packaging The first step of reducing the amount of waste that The Yoshi Company produces is to lessen the amount of disposable product and packaging used by the company. Partnership with manufacturers will be required to obtain these goals. Wal-Mart is a leading contender in the green movement for grocers. Its plan for reducing packaging is one that can be mirrored in order to lessen The Yoshi Companys packaging waste. Around the globe, Wal-Mart has been working with its manufacturers to develop sustainable solutions to product
packaging ("Walmart.com," 2010). In order to test its suppliers environmentally friendliness, is has developed a sustainable packaging scorecard.

According to Wal-Marts corporate website, the scorecard:

allows suppliers to measure how their product packaging helps reduce energy, eliminate waste and sell more sustainable products;

currently contains information for more than 627,000 items for sale in our stores and clubs, which is an increase of 90 percent over 2009;

evaluates many environmental attributes of packaging, including greenhouse gas reductions, substrate material choices and chemical composition;

gathers information to look at these factors through a cradle-to-gate approach ("Walmart.com," 2010).

By utilizing a scorecard for manufacturers, The Yoshi Company can test its suppliers and hold them more accountable for environmentally friendly practices. Creating a scorecard and distributing it will not cost more than the hourly wage of The Yoshi Company Marketing Director, and the benefits of cutting the cost of packaging will exceed the money paid to do so. Wal-Mart has already seen the effects of using its scorecard. Its three main accomplishments include:
1. Reshaping Great Value yogurt containers from single-serve to four-packs. By doing so it has cut shipping costs and removed nearly 1,700 tons of packaging from the supply chain each year, the equivalent of 48 garbage truck loads. 2. Introducing a carton-less ASDA brand toothpaste, a 50 percent reduction in packaging. 3. Testing of a refillable container for fabric conditioner, a product that can be reused up to 10 times, uses 96 percent less packaging, and saves customers $5.80 over the life of the product. ("Walmart.com," 2010)
Figure 2.1: Updated Great Value yogurt containers ("Walmart.com," 2010).

The Yoshi Company can too save money on packaging costs while obtaining more environmentally friendly practices.

Recycling The second step of reducing waste is to start an effective recycling program. Wal-Marts recycling initiative has tried to go beyond simply selling bundles of waste to recycling centers, and began a closed-looped recycling program. Currently, Wal-Mart sells its collected waste paper to packaged goods company GeorgiaPacific Corp. The waste is then converted into the Wal-Mart private label paper towels and facial tissues (Zimmerman, 2006).

By implementing a closed-looped recycling program, The Yoshi Company has the ability to make money off of its waste paper and provide recycled products to its customers. This will lessen the cost from purchasing those goods, such as paper towels, tissues and napkins, thus increase profits when sold. Also, people tend to be more willing to spend a little more money on a recycled product in order to be more environmentally friendly, so paying less for the product and higher demand for it can also increase profits.

Another possibility for a closed-looped recycling program, other than waste papers, is to recycle plastics. According to the Plastic Recycling Chart, written by Brian Clark Howard for The Daily Green, the seven types of plastics can be recycled into many different things, but the main two that The Yoshi Company could create a closed-looped recycling program with are high-density polyethylene(HDPE) and lowdensity polyethylene(LDPE).
Figure 2.2: (Howard, n.d.)

High-density polyethylene can be recycled into

laundry detergent bottles, oil bottles, pens, and recycling containers. Low-density polyethylene can be recycled into trash can liners and cans, compost bins, and shipping envelopes (Howard, n.d.). By selling such plastic waste to a manufacturer, like the paper waste to Georgia-Pacific Corp., The Yoshi Company can create a closedlooped recycling program utilizing its plastic wastes and converting into products that can be sold to its customers.

Reusable Bags Not only does the packaging from products end up in landfills, but the plastic bags from produce and checkout counters do as well. Retailers selling reusable bags to customers have been on the rise since the green movement began. Blue Lotus, a California-based company, offers reusable grocery tote bags, as well as the less prominent reusable produce and bulk food bags ("Blue lotus," 2010).

The bags offered by the Blue Lotus company will not only cut back the amount of plastic bags dispersed at checkout, but also those that customers use for their produce and bulk food items. This concept is a compliment of the ever growing popularity of reusable grocery totes. Each bag is machine-washable and is perfect for containing the food pictured on the outside of it. The produce bags can be moistened to keep vegetables fresh in the fridge and the mesh bags mimic the size of rip-off-the-roll disposable plastic bags, making them useful for fruits and vegetables that customers want to bundle together but that don't need to be kept cool (Bond, 2011).

The Yoshi Company can place the Blue Lotus produce bags next to the disposable plastic ones with a promotional sign about how making the reusable investment will help keep plastic bags out of [the] oceans, streets and landfills (Bond, 2011). By selling these to customers it will be creating profits from a market that was not a part of its business before and reduce its plastic waste.

Figure 2.3: Blue Lotus reusable produce and bulk food bags ("Reusable produce and," 2010).

Conclusion The cost-effective methods of reducing packaging, closed-looped recycling programs, and the sale of reusable bags will benefit The Yoshi Company. By following through with the waste management and recycling programs outlined, costs can be cut and profits can be increased. The environment will also greatly benefit when The Yoshi Company adopts these environmental practices of managing plastic waste through lessening packaging and selling reusable bags, and recycling both paper and plastic waste into sellable products. 7

Carbon Offsets
The final stage on how The Yoshi Company can improve upon becoming a more environmentally friendly corporation would be by decreasing its overall carbon footprint. In order to decrease your carbon footprint, it will involve you having to increase your carbon-offset programs. Two programs that would be most valuable in attaining this overall decrease in carbon emissions would be biofuels and forestry funds. The transformation of your entire shipping fleet to biofuels and creating a carbon-offset program through forestry will prove valuable in the long run. By increasing your effort in these carbon-offset programs, you will create a smaller footprint for your company, while also gaining a valuable public image. This increase in public image for, going green, will not only create larger profits for The Yoshi Company, but it will also provide a valuable marketing tool to the public to show how you are an environmentally friendly company that cares for the overall good of the planet.

Biofuel The first major investment that The Yoshi Company can make into becoming a very sustainable and clean company would be the transformation of there shipping truck fleet to biofuels. At the EPA we believe it is in the best interest of the environment to point out ways in which some of the larger grocery store chains have made this transformation. Safeway and FreshDirect have each shown great pride in helping the environment by switching to cleaner burning biofuel. Senior Vice President of FreshDirect, Adrian Williams says, "Bio-diesel does not require retro-fitting our equipment and enables us to reduce emissions without complicated delays" (Gallagher, 2008). Using a cleaner and more efficient fuel source than that of normal fossil fuels, biofuel alternatives will provide your fleet of transportation trucks with the piece of mind that you are truly doing your part in creating a cleaner world. The decision by Safeway will help reduce carbon dioxide emissions by 75 million pounds annually, the equivalent of taking nearly 7,500 passenger vehicles off the road each year (Anonymous, 2008). With
Figure 3.1: FreshDirect biodiesel (Gallagher, 2008).

one of the largest grocery store chains switching to biofuel alternatives, it would also be in the best case of The Yoshi Company to switch. As Safeway has proven to be one of the largest and most

successful corporations in the world, it would be very knowledgeable to mimic its business practices. Not only will the transformation to biofuel help the environment, in the long run your company will save money. As 8

you purchase less non-renewable fossil fuels and increase your fleets fuel efficiency with biofuels, you will begin to see a revenue increase. With an increase in revenue and the knowledge that you are helping the environment in the process, what other option is there to consider?

Forestry Fund The second way that we believe The Yoshi Company could improve on its overall carbon footprint would be to set up an organization, such as a forestry fund. This fund would be a good way to eliminate any extra emissions your company may have that could not be eliminated through a renewable energy source. This fund would also provide your customers the chance to take part in this good deed by giving them the option on donating whenever they checkout at one of your many locations. One trusted foundation that we insist you begin working with is the Hardwood Forestry Fund. Since 1990 they have been taking public land and replanting trees in an effort to increase forestry in different areas of the United States. However, you must be careful with your donations. You should follow the Climate, Community, and Biodiversity Standards. These standards are: Identify high-quality projects that will generate credible and robust carbon offsets, while supporting local communities and conserving biodiversity Mitigate project risk and maximize value for investors Help developers design good projects and secure additional funding sources Enable governments and land-use planners to prioritize activities across the landscape to optimize multiple benefits (Lane, 2008).

Figure 3.2: (2005)

Following these guidelines will help reduce your companys risk on where your money is actually going and what these programs are doing to offset your overall carbon footprint. With a foundation like this, we can get our customers involved in the action of reducing our carbon footprint. Its involvement may even be an influence for them to start their own foundations or to donate in any possible way.

Conclusion Aldo Leopold once said, We abuse land because we regard it as a commodity belonging to us. When we see land as a community to which we belong, we may begin to use it with love and respect. This quote personifies what we are trying to demonstrate here at the EPA. Instead of taking the easy way out and using the readily available non-renewable resources, we encourage you too spend a little bit more to help improve your companies footprint and overall well being of the planet. These extra costs you may incur in the beginning, will be well worth it in the end, as you will actually see increased revenue due to the higher efficiency in your companies procedures. These steps will help the planet and also demonstrate a good value to your customers. By following the advice of the EPA, The Yoshi Company can become the gold standard for environmentally friendly corporations. It is truly your decision, but when making that decision, make sure to think about the future generations that will be affected by the carbon emissions produced by your grocery store chain.

Conclusion

In The Green Initiative provided to The Yoshi Company by the United States Environmental Agency, the best environmentally friendly practices for a retailer are outlined. The implementation of part, even every part, of this initiative will lessen energy costs and boost profits for your company. By becoming more energy efficient, instating a waste management and recycling program, and lessening its carbon footprint, The Yoshi Company will benefits to its business and its environmental impact. The actions that must be taken are:

contact a solar panel installation company to install solar panels, partner with manufacturers and distributers to make product packaging more efficient, convert to biofuels to lessen companys emissions, and start a forestry fund to boost public image.

The EPA believes that The Yoshi Company has a great opportunity to become a leader in the green movement within grocers. It can coax other companies to follow its lead by proving that green can boost profits and aid a business in all of its goals.

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Works Cited
Blue lotus. (2010). Retrieved from http://bluelotusgoods.com/

Bond, P. (2011, Grocery. Natural Foods Merchandiser, 32(8), 26-26. http://login.ezproxy1.lib.asu.edu/ login?url=http://search.proquest.com/docview/922348707?accountid=4485 Chao, J. (2010). Global Model Confirms: Cool Roofs Can Offset Carbon Dioxide Emissions and Mitigate Global Warming. Berkeley Lab Lawrence Berkeley National Laboratory. Retrieved on April 9th, 2012, from http://newscenter.lbl.gov/news-releases/2010/07/19/cool-roofs-offset-carbon-dioxide-emissions/ Cutting costs with energy-efficient HVAC. (1996). Chain Store Age, 72(2), 53-53. http:// login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/docview/222032237?accountid=4485

Elan, E. (2007). Army & air force exchange service saves a little green by employing energy-efficient equipment. Nations Restaurant News, 41(17), 14-14,50. http://login.ezproxy1.lib.asu.edu/login? url=http://search.proquest.com/docview/229362186?accountid=4485

Gallagher, K. (2008). FreshDirect switches to biodiesel. Gourmet News, 73(2), 13-14. http:// login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/docview/224791735?accountid=4485 Greengard, S. (2009). BEYOND GREEN: Building an energy-efficient IT infrastructure. Baseline, (93), 16-18,20-21. http://login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/docview/ 213423984?accountid=4485

Grimaldi, P. (2005, Nov 19). Shaws goes green with energy efficient store. McClatchy - Tribune Business News, pp. 1-1. http://login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/docview/ 463321751?accountid=4485

Harwood Forestry Fund. (2012). Retrieved from http://www.hardwoodforestryfund.org/?page_id=17

Howard, B. C. (n.d.). Plastic recycling chart. Retrieved from http://www.32oz.com/mirror/plastic/ 11

Lane, C. L. (2008, August 06). All About Forest Carbon Offsets. Retrieved from http://www.conservation.org/ FMG/Articles/Pages/dell_forest_carbon_offsets_madagascar.aspx

Nelson, J. L. (2010, The green route is good for business. New Jersey Business, 56(6), 34-34. http://login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/docview/748723337? accountid=4485

Powell, P. (2002). More ways to curb supermarket energy costs. Air Conditioning, Heating & Refrigeration News, 217(6), 16-19. http://login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/ docview/196461881?accountid=4485

Recycling. (2012, March 03). Retrieved from http://www.epa.gov/osw/conserve/rrr/recycle.htm

Reusable produce and bulk food bags. (2010). [Web Graphic]. Retrieved from http://bluelotusgoods.com/catalog/-c-1.html

Safeway Inc.; Safeways California and U.S. truck fleet goes green. (2008). Global Warming Focus, 10. http:// login.ezproxy1.lib.asu.edu/login?url=http://search.proquest.com/docview/204642630?accountid=4485

Walmart.com. (2010). Retrieved from http://walmartstores.com/sustainability/

Zimmerman, A. (2006, Aug 21). Wal-mart sees profit in green; some recycling initiatives are helping retailers bottom line. Wall Street Journal, pp. B.3-B.3. http:// login.ezproxy1.lib.asu.edu/login?url=http:// search.proquest.com/docview/399036730?accountid=4485

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