A Little Help For The Planet, Along The Way…

Almost four years ago, just as Clean Air – Cool Planet was beginning to develop its business outreach program, we heard a presentation by a representative of one of New England’s best known retailers. Kathy Loftus, at that time the Energy and Regulatory Affairs Manager for Shaw’s Supermarkets, spoke to a Maine audience about their efforts to cut costs and help the environment. Sensing in Kathy someone who understood the connection between economics and corporate action on climate change, we soon began a dialogue that led to the signing of our first major corporate partnership in November 2000. The combination of solid experience in the energy management field, her commitment to the environment and a shot of humility makes Kathy Loftus our latest choice for Climate Champion in the Northeast.

First some facts: Shaw’s Supermarkets is the region’s second-largest grocery chain, currently operating more than 200 stores across the six New England states. In addition, the company maintains two distribution centers and a number of office buildings in an around its headquarters of West Bridgewater, MA. Energy expenses for an operation as large as Shaw’s are, not surprisingly, considerable. While serving four-million-plus weekly customers, it pays out an annual electric bill of more than $35 million. And in getting fresh produce, meats and canned goods to its facilities, Shaw’s truck fleet racks up 17-million miles every year (meaning any increase in prices at the pump are felt immediately).

The responsibility for cutting those expenses (i.e., raising profits) fell on an individual with a solid background. Prior to this position Kathy Loftus worked on a variety of demand-management projects for Eastern Utilities Associates. In her new role with Shaw’s, she maintained responsibility for all energy functions including procurement, management and training of store personnel, energy efficiency project implementation, metering/billing/reporting, and evaluation of alternative energy sources. In addition Loftus, a 1986 graduate of Worcester Polytechnic Institute with a Bachelor of Science degree in Mechanical Engineering, monitored legislative and regulatory energy issues for the New England States. With more than 13 years’ experience in the field of energy engineering, she easily recognized that there was a range of opportunities for energy-, cost-, and climate-savings.

It all started with a top-to-bottom review of every dollar spent on energy, from electricity to natural gas and diesel fuel. Kathy encouraged Shaw’s to undertake a series of lighting retrofits at the store level, converting ceiling fixtures to newer, more efficient florescent lighting, and motors and compressors in the refrigerated cases, paid for in some instances through power company rebates. Next she helped with the implementation of a computerized system that allows energy patterns of major circuits to be monitored remotely. After tackling the low-hanging fruit (projects with a short term payback), Shaw’s began looking at more significant investments, including improvements in the large refrigeration systems behind the scenes that keep dairy products chilled and ice cream frozen.

In her management role, Kathy helped convince others on the management team that customers would react favorably to the company’s energy-saving efforts. Several years ago Shaw’s, was one of number of corporations, offered reductions in rates from their utilities, who began shutting down unnecessary lights and equipment during those times when the region’s power grid was most taxed (summer heat waves, for example). Even without continued utility incentives, many stores in the chain still cut lights while posting an explanatory sign for shoppers. According to Kathy, this small gesture goes a long way in building and retaining customer loyalty in states like Maine and New Hampshire, where there is strong public support for environmental efforts

As well as providing these “goodwill” opportunities, Shaw’s energy efforts have had an immediate bottom-line impact. The projects show an average payback of approximately 27 months, which translates to a return on investment of 44%, including utility rebates and incentives. The supermarket saved more than $ 3.7 million last year in reduced electricity usage, which is significant: it would have taken $ 150 million in sales of groceries to equal that amount.

During the summer of 2001, Kathy encouraged the company to participate in a public service campaign, jointly funded by the Energy, and the David & Lucille Packard Foundations which ran in the Wall Street Journal and New York Times; the ads heralded corporate leaders in energy efficiency. Her efforts on behalf of the company were recognized last year during CA-CP’s Climate Solutions for the Northeast conference in Hartford, Connecticut when Shaw’s received one of three climate change action awards.

Energy efficiency pays off at Shaw’s.	Kathy Loftus accepting Shaw’s Climate Champions award in May 2003 from CA-CP Chair Michael J. Bradley.

While some energy managers would have been happy to rest on their laurels, Kathy Loftus was pushing for more. As the current Chairperson of Food Marketing Institute’s Energy and Technical Services Committee she realized that these projects were significant within her industry, and worthy of national recognition. Under her guidance, and persistence, in 2001 Shaw’s East Boston location became the first grocery store in the nation to win the Energy Star designation, an event that immediately caught the eye of management since the bronze plaque was awarded by then-Secretary of the United States Environmental Protection Agency, Christie Todd Whitman. Through this initiative, Shaw’s went on to be named the Energy Star Partner of the Year, and today a total of six stores, one in each of the states in which the supermarket operates, proudly display the bronze plaque, a testament to the determination of the corporate energy manager.

Accepting EPA award from
Christie Todd Whitman.

Next up was an effort to help support the growing market for renewable power. Kathy, now promoted to the position of Director of Energy & Environmental Management helped evaluate several proposals to shift a portion of Shaw’s power load from electricity generated from traditional fossil fuels towards green energy from solar, wind and landfill methane projects. After considering a range of alternatives, last summer she helped kick- off a unique promotion with CA-CP partner SunPower Electric at three stores in Rhode Island offering customers an opportunity to purchase green tags, to offset the carbon emissions from their homes and small businesses. Under the program, those same stores also committed to purchase a percentage of their power from renewable sources.

Community involvement on those issues near and dear to her heart is important to this Climate Champion. Kathy serves on the board of The Energy Consortium and Waste Cap of Massachusetts; is appointed to the Massachusetts Renewable Energy Trust Advisory Committee; and participates on the United States Green Buildings Council’s LEED Program Retail Advisory Committee, which is working to help develop national standards for big-box stores that will have less impact on their natural environment.

Under the partnership with Clean Air – Cool Planet, Kathy has evaluated more than 30 proposals, covering a range of projects from lowering truck fleet emissions through the installation of catalytic converters, demand management analysis of distribution centers and options for designing the model for a green supermarket. Under her stewardship the climate change message has been delivered to 30,000 associates in the region, and to the millions of customers who shop at Shaw’s every week or visit the corporate website.

In 2003 Kathy played a starring role in CA-CP’s Solutions DVD, alongside
President & CEO Paul Gannon (center), explaining why energy and the environment
is important to Shaw’s.

Through her tireless efforts Kathy Loftus has helped raised public awareness on climate change, encouraging a leading regional business to consider the benefits of early action, and along the way helped set the bar for US retailers a little higher when it comes to environmental stewardship. With her own style and grace Kathy has helped spread the word that solutions to reduce greenhouse gas emissions can have a positive impact on the corporate - as well as environmental – bottom line.

—Bob Sheppard, CA-CP Deputy Director, May 2004