Sustainability Solutions for Business - What to Look For

Teams that are looking at sustainability face the same basic questions. Which solution is right for you? What will it really cost? What works for others? What don’t you know? HydroPoint can help you keep your head above water (literally). Sustainability isn’t one-size-fits-all. Here’s how to plan the right sustainability solution for you.

What to Consider When Evaluating Sustainability Solutions:

1. Sustainability Metrics

When you have sustainability goals and deadlines… Gather your sustainability metrics in one place. Then gather your monthly energy bills in the same place. Now, you can start to review the volume of energy used, and the total cost. Next, gather your wins – maybe the LED light builds you adopted two years ago were successful. What metrics did the LED light bulbs help you with? Whether it was saving money, using less energy, complying with new regulations, or all of the above, understand which measures are bringing you closer to your goals, and how exactly they’ve impacted you.

When you don’t have sustainability goals and deadlines… You’ll need to establish your own. Start by benchmarking your current usage of electricity, natural gas, fuel, water, and any other energy expenditures. As you pinpoint problematic areas, test drive new technologies without making long-term investments. Review and research tools and tech that other organizations have successfully adopted.

The bottom line… Whether you’re building out your corporate sustainability metrics or creating them from scratch, take a holistic view. Sustainability metrics go beyond LED light-bulbs or monthly energy bills. You must build awareness of your sustainability foundation, so you have a clear answer to the question, “What does success look like?”

2. ROI/IRR

ROI – The most common way to evaluate a solution is the Return On Investment. How long does it take to achieve cost-savings that equal the initial investment cost. Certain sustainability initiatives with short ROI allow companies to reinvest cost savings elsewhere. Carrie McAllen, Director of Business Development at the Doubletree hotel, “With our water efficiency measures alone, we are able to re-invest cost savings into projects that delight our guests and drive revenue.”

IRR – The Internal Rate of Return is another common way to evaluate a solution. It considers when the net present value of all cash flows (negative and positive) from the project equal zero. It’s calculated in a percentage, and expresses the rate of return on a project over the entirety of its lifespan. A good benchmark for IRR is i the IRR is greater than the required rate of return on a project, it’s a good investment. If you’re a property owner or an asset manager, the IRR can be a good measure to use because it expresses in percentage form the required cost of capital, and allows for easy comparisons.

The bottom line… Ask your provider for savings projections. Your ideal solution is a project with a complete ROI in under five years. The right solution could give you a full return on investment in less than one year.

3. KPIs

You can’t manage what you’re not measuring. Your Key Performance Indicators aren’t just about energy in vs. energy out. A holistic sustainability framework considers a variety of factors:

• Financial – profit, ROI, cost of implementation
• Social – labor, community impact, consumer impact
• Organizational – supply chain miles, data collection points, data integrity, number of shareholder sustainability resolutions
• Regulatory – compliance score, regulatory assessment scores, regulatory upgrade opportunities
• Environmental – waste output, greenhouse emissions, water footprint, waste reduction rate, energy consumption, product recycling rates
• Troubleshooting – issue response times, emergency alerts issued, help tickets opened and closed

The bottom line… You’ll need a basket of sustainability metrics that are measurable and industry-specific. What’s important for your sustainability framework depends on what’s important to your industry. Understand what that is, and you’re well on your way to developing a proper set of metrics.

4. Data Collection Methodologies

Understand every touchpoint between your data and its integration into your existing Building Automation System or other analytics dashboard. Do you get email/text alerts if something is out of the norm, or do you need to wait until your next billing cycle to discover usage abnormalities?

The bottom line…From real-time feedback to information collected from monthly water and electric bills, plot all the stops on your data journey.

5. Risks

Sustainability risks are business risks (i.e., future increases in energy and water costs). Look for solutions with warranties that cover you for future integrations, material risks, and support. What’s your worst-case scenario? You don’t want a solutions provider who is just replacing one set of problems with another. In addition, look for a company with a long history and a solid track record. A brand new startup may carry a larger risk, as they haven’t yet proven their longevity, and if they close up shop, your support system ends immediately.

The bottom line… Look for technology that won’t cause new problems three years down the line. Your solutions provider should be your partner for the long-haul.

6. Implementation

Evaluate the initial impact of implementation. How easy is the product to install? Is there a complicated startup protocol? Look for a reputable company that makes starting up feel like a breeze. Ideally, all options are plug-and-play in the box, ready to install.

After installing HydroPoint in the Davis School District in Utah, grounds manager Mark Hurd told us: “After we installed smart irrigation controllers, it was as if we hired a couple of new employees to help out.” Implementation and continued use should make your life easier.

The bottom line… It’s crucial to evaluate the impact of implementation on every team under your roof. Then, look for a reputable company who can assist with technology, training, and implementation from the ground up.

7. Training

Once the product is installed – now what? Look for solutions that will train you to onboard new team members in the future. Specifically, look for:

• Extensive training from the manufacturer on implementation
• Technical guides that use layman’s terms
• Classes and guides on using specific aspects of the product
• Hands-on, dedicated personnel who can provide ongoing support
• Onboarding protocols for future new team members

The bottom line… A great litmus test for adequate training is, “Could I successfully onboard new employees in a year to use this product?”

8. Secondary Benefits

There can be secondary benefits that aren’t calculated in the original product ROI, although they may translate into actual dollar savings. As an example for a water conservation initiative – saving water through remote systems management has all sorts of benefits, like reducing the number of truck rolls a landscape technician makes, saving overtime employee costs and potential greenhouse gas emissions.

Joseph Jackson, Head of Water Management Solutions at the Sprinkler Supply Company told us: “With HydroPoint’s remote systems management, we know what the problem is and where it is, before having to step foot onto a site. This is immensely beneficial for landscape maintenance staff – saving precious time and reducing their number of site visits, which results in significant cost savings.”

The bottom line… From fewer site visits to reduced water runoff, look for the secondary benefits that ripple from an initial investment in sustainability.

HydroPoint develops smart water management solutions to reduce water waste and save time and money. See how some of our customers have benefitted from our solutions.