Building a business case for sustainability is easier if the numbers speak for themselves.
Since 2001, Intel has invested more than $45 million in 1,500 projects, including new controls and systems that resulted in annual savings in energy costs of 790 million kilowatt hours, equal to about $23 million a year, Suzanne Fallender, director of corporate social responsibility for the semiconductor producer, said in a recent interview with the MIT Sloan Management Review.
Intel ranks first among 79 Fortune 500 Partners in the U.S. Environmental Protection Agency’s Green Power Partnership, which ranks green power usage on a quarterly basis. In the
July 2012 rankings, Intel purchased 2.79 billion kilowatt hours of green power, equal to 89 percent of the company’s total electricity use.
Intel pays a premium for all that good green power, but likely long-term benefits include spurring market demand for renewables.
“Just because you can’t measure or monetize it, doesn’t mean you can’t talk about the strategic value it creates,” Fallender said.
One of Intel’s current goals is to extend sustainability efforts throughout its global supply chain. To do so, it needs the help of its carrier and third-party logistics partners. Cost and capabilities are the main criteria in the provider selection process, but for Intel and a growing number of companies, sustainability has become a critical capability. Providers must be able to support Intel’s sustainability goals and have their own programs in place.
“We are looking for 3PLs with sustainability programs that include baseline improvement areas and short- and long-term goals,” said Judi Barker, safety, risk and controls manager for Intel’s Customer Planning and Logistics Group.
Intel’s highly automated supply chain has helped the company achieve a 65 percent reduction in order fulfillment lead times, a 50 percent reduction in order-to-delivery times, a 32 percent reduction in inventory and a 50 percent reduction in the time it takes to ramp up new manufacturing processes.