Case Studies
The Co-operative Group
Energy Efficiency Programme: Proving Commercial and Environmental Success is Achievable
Critical Reason: Reduce Energy Costs by £1.2M Per Year (£4K Per Day)
The Co-operative have engaged ADAM to deliver their critical Energy Efficiency Programme: with the single goal of reducing energy consumption across 300 sites by 8% on an energy bill of £15M - growing to a 20% saving by 2012.
Capabilities: Night and Day Saving; Run Rate; and Risk Sharing
The Co-operative wanted a way to ensure that stores were not wasting energy (Lighting and HVAC) throughout the day, to work with a partner who would share the risk of achieving their 8% goal; and could build a programme of 100 installations per month. ADAM and The Co-operative committed to the following programme:
- 300 Installations - controlling Lighting (Int. & Ext.)
- 8% Guaranteed Energy Saving (no saving - no payment)
- £1.8M - £2.3M Capital Investment (8% - 15% saving); and
- Support Costs of £160K Year 2/3/4/5
Result: 0.9 Year Payback
After two months, ADAM have delivered a broad and compelling business case:
Achieving 18% Saving - Forward to 2012: ADAM have been able to remotely identify, integrate, and eradicate store abuse and support The Co-operative management to change operational behaviour. Through this process - ADAM have 'optimised' stores and generated a combined electricity and gas saving of 18% saving.
£180K Annualised Reduction in Unplanned Site Maintenance Visits: ADAM received circa 100 inbound and outbound calls throughout month 2. Without ADAM, 12% of the phone calls would have resulted in an unplanned callout to problems such as unresponsive boilers. At an estimated cost of £250 Per Day callout - ADAM pass on immediate cost savings to The Co-operative of £180K (300 sites annualised).
100 Installations Per Month: Due to the unquestionable success of the programme, ADAM have appointed a National Building Maintenance partner, Integral (T/O £150M; 1200 Staff), to lead the programme, post initial 50 trial.
Risk: ADAM have only invoiced and received payment on sites where an 8% saving is achieved.
The Energy Partners
The Co-operative Group
The Co-operative is a multi-billion pound business employing around 68,000 people and have more than 3,000 high street outlets. In 2005 our operating profit was £365.9 million.
The Co-operative and Sustainability: 'The Co-operative values of honesty and openness find modern expression in our sustainability reporting. In line with these values, a 'warts and all' approach has been taken to reporting on the Group's social, ethical and environmental performance, which means facing up to areas of performance that need improvement.'
ADAM International
ADAM solve the problem of defining, extrapolating and maintaining best practice estate management. By solving the problem ADAM
- Reduce Energy Consumption by up to 15%;
- Reduce Unplanned Maintenance Call Out Costs by 10%; and
- Reduce Capital Investment required for expanding retailers.
“Working with The Co-operative and Nigel Holden's energy team has been a fantastic experience for ADAM: their commitment to energy programmes is unparalleled in the UK - and Europe. Their embrace of paradigm shifting technologies differentiates them as a leading retailer with vision. We look forward to 2012” James Hammersley, ADAM International