A standard incandescent bulb will use almost five times the energy of an LED bulb, a German study concludes. On its face this hardly seems significant since it’s well known that an LED is about five times as efficient as an incandescent bulb from a use standpoint. However this study, conducted by Osram, looks at energy efficiency from a life cycle standpoint. This is important since it refutes the notion that the efficiency of LED bulbs is compromised by an energy intensive production process. In fact, the study finds that the primary energy used in the manufacture in an LED is less than 2% of the total energy consumed over the life of the bulb. Compelling stuff. Even mainstream media such as the NYT has been quick to publish the results.
However a closer examination of the study is revealing. While 2% may sound impressive and further the study highlights how the energy consumed in manufacture is actually less than that of an incandescent, it’s important to understand the assumptions. While it may be true to say an LED is 35% more efficient to manufacture than an incandescent, this calculation is based upon a 25,000 hour versus a 1,000 hour expected life. That a factor of 25.
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Southwest Airlines (Ticker: LUV) is implementing measures that will not only further its positioning on sustainability but will improve its efficiency and therefore its profitability.
Weight is a critical element in any aircraft and corresponds directly to flight performance, including fuel efficiency. Over the past two years Southwest has been experimenting with a “green plane” where numerous small improvements in the design and materials used in the seats and the cabin have been tested. The result is a lighter aircraft (by about 472 pounds) that burns less fuel (9,500 gallons less fuel per year). Multiply this approach over Southwest’s fleet and the savings really add up.
“Considering that Southwest flies more than 3,300 flights a day an average distance of 635 miles per flight, the savings would be dramatic. Southwest calculated that it could save 90.6 million gallons of fuel and reduce carbon dioxide emissions by 1.9 billion pounds a year.”
Extrapolate those figures to the aviation industry nationwide, fuel consumption could be cut by 760 million gallons and carbon dioxide emissions by 16 billion pounds a year.
It’s easy to be cynical about the aviation industry from a sustainability standpoint. Planes consume lots of fuel and generate large amounts of carbon dioxide. However we at Caledonia are always excited to see sustainability and profitability complement each other. As Southwest claims, it makes good business sense. Expect other carriers to follow.
In this second article highlighting the work PepsiCo is undertaking to promote sustainability, we take a look at a few of the cultural, social and management practices that have been successfully implemented within their corporate structure. For Part 1 click here.
Workplace Policy
A critical component in evaluating companies from a financial and investment perspective is the inextricable link to the employee workforce. Whenever we look forward at the future prospects of a firm, examining the corporate culture becomes a key indicator in what we may foresee with regard to the success or failure of a company. An employee base fostered by upper management to add value and creativity, and motivated around a framework providing exceptional support and career options is indicative of a healthy working environment. PepsiCo expands its social influence both inside and outside its corporate walls through a number of initiatives that positively support this trend. Read more…
It is always with some hesitation that I look at large corporations to investigate sustainability initiatives and programs they are implementing within their corporate cultures. Green and Eco-marketing has now become such an essential part of a business plan that you are sure to lose out on some market share if you don’t have a green initiative in your operations. Separating the green-washing from practices that are genuinely implemented by firms to truly benefit communities, employees, and the environment has always been a tricky task. It traditionally takes a lot of effort, time and energy on behalf of the company to be able to break through the first wave of skepticism in order to get the message across.
One such firm that has taken noteworthy steps is PepsiCo. One of the world’s largest food and beverage firms, with over $39 billion in revenues and employing over 185,000 people world wide, PepsiCo has the size to effect a substantial difference not only in how it runs its operations and manages its corporate responsibility, but also as a role model for other multi-national companies facing the challenge of changing their internal controls.
Here, in part 1 I will take a look at the environmental focus PepsiCo is taking with many of its initiatives; in Part 2 examine some of the social and community based projects the company is tackling. Read more…
