The Alliance believes that improving the sustainability of members' own supply chain operations is essential if the Alliance is to successfully promote standards for other electric utilities and suppliers to the industry. The Alliance has established the EUISSCA Energy Use Index Reporting Guidelines to establish a consistent framework for measuring and reporting its progress. "Supply chain operations" refer to the processes owned by the supply chain organizations in our member companies. Generally, these processes include sourcing, inventory management, warehousing and materials management, transportation and logistics, and materials recovery.

The Alliance will focus on improving the energy efficiency of its supply chain operations as the highest-priority means of reducing GHG emissions in supply chain operations. Energy use in supply chain operations includes the consumption of electricity, natural gas, and mobile fuels and is concentrated in three areas:

• The supply chain distribution network
• Facility lighting and heating, ventilation, and air conditioning
• Supply chain transportation and logistics

Results

The Alliance reduced supply chain operations energy use by 7.1% from 2008 through 2011.

Based on performance through the end of 2011 and projections for further improvements, the Alliance is on track to achieve its goal to reduce energy use 10% by 2015 relative to the 2008 baseline. It should be noted that the past two years have shown that members' scope changes can impact the results and affect progress to the goal.

Reporting Adjustment

Significant changes in 2011 led to an adjustment in the baseline energy use as reported last year. The baseline adjustment was deemed necessary to ensure a more direct comparison of participating 2011 members with their associated 2008 performance and is consistent with the established reporting guidelines. Three members who reported energy use in the past chose not to participate and two new members chose to partake. Two other members had changes that necessitated an adjustment in their data — one increased the number of sites that they inhabited and another had organizational changes and data corrections.

Member Actions

Highlights of member activities that have been implemented that resulted in reduced energy use include:

• "Right-sized" fleet vehicles by using more fuel efficient vehicles when possible
• Introduced alternative fueled vehicles (electric, hybrid, and natural gas) to reduce fuel use
• Added a Combustion Catalyst System to fleet trucks resulting in improved fuel efficiency
• Utilized battery powered large service vehicles which allow auxiliary equipment, such as bucket lifts, cranes, heating and A/C, to operate without the engine idling thus reducing fuel consumption
• Designed and constructed of facilities that meet EnergyStar and LEED requirements to reduce both electricity and fuel consumption
• Educate employees about driving habits, such as reducing idling, to reduce fuel consumption
• Installed GPS systems on fleet vehicles that sends out notifications if speed limits are exceeded or if idling time exceeds 30 minutes
• Installed energy efficient building mechanical systems and advanced building automation systems to reduce facility energy consumption
• Implemented higher efficiency lighting upgrades in warehouses to reduce electricity consumption along with motion sensors and timers to turn off lights when not in use