Energy management report points to huge economic and environmental savings

MILWAUKEE, April 22, 2002 — While debate continues about what type of national energy policy to adopt, one report suggests that good energy management may be the solution to meeting future energy needs.

Commercial and industrial buildings have a huge impact on the natural environment because they represent as much as 40 percent of all energy used and are responsible for 30 to 40 percent of all atmospheric emissions.

A report by the Leonardo Academy, a nonprofit environmental organization, indicates that Johnson Controls, Inc., and its thousands of non-residential customers have significantly reduced energy usage through building system and operational improvements. In fact, some customers realized savings as high as 30 percent.

The report goes on to state that the improvements implemented between 1990 and 2000 will cumulatively result in $16.7 billion in energy savings, with electricity reductions accounting for approximately 64 percent of that total and natural gas reductions accounting for 36 percent of the savings.

All building projects, including K-12 schools, universities, health care institutions, commercial and industrial buildings, retail stores, local and federal government, that Johnson Controls implemented between 1990 and 2000 will cumulatively reduce the amount of electricity they use by 166 million mWh during the life of their contracts. To put that into perspective, that translates into enough electrical power to run every household in California, with nearly 40 million residents, for more than two years.

There is an important environmental side to these energy reductions, as well. Since these companies and institutions are reducing their energy usage, they are having a positive effect on greenhouse gas emissions generated by electricity power plants. The Leonardo Academy estimates the decrease in carbon dioxide emissions of all Johnson Controls projects implemented between 1990 and 2000 will be 217 million tons, which is the equivalent of planting 650 million trees or removing the emissions of 42 million mid-sized automobiles.

According to the Energy Information Administration (EIA), the United States spent more than $253 billion on the 3.8 billion mWh of electricity generated in 2000, and demand is expected to increase substantially. Currently, nearly 70 percent of electricity comes from utilities using fossil fuels — coal, natural gas or petroleum — for energy generation. Those utility companies release more than a 1.5 billion metric tons of greenhouse gas emissions (mostly carbon dioxide) into the atmosphere. Any increase in energy usage could be devastating to the environment, making the Johnson Controls reductions that much more important.

“Johnson Controls provides businesses with consultative expertise on how to make their facilities into more productive assets by reducing energy demands and therefore helping customers realize the tremendous savings identified in this report, while positively impacting the future of our environment,” explains Michael Arny, president of the Leonardo Academy.

There are more than 4.5 million commercial buildings in the United States. With the kinds of economic and environmental savings realized by the Johnson Controls contracts, the impact on the energy crisis and the environment would be huge if every building became more efficient.

According to the Leonardo Academy report, if there were 25 companies helping their customers capture as much energy savings as Johnson Controls is doing, the national energy crisis would not even exist and the U.S. would easily meet energy and emission reductions set by the Kyoto accords.

“While the Leonardo Academy report focuses on Johnson Controls, the true credit belongs to our customers,” explains Brian Stark, president of the Controls Group of Johnson Controls. “We serve as the facility consultants and implementers, however our customers are the ones demanding more energy efficient systems, services and operational procedures. Subsequently, they are the ones who are helping to reduce emissions and benefiting from the billions of dollars in savings.”

While great strides have been made in energy awareness, Americans must continue to reflect on how to skillfully balance the need to sustain economic growth with the need to reduce our dependence on oil, to maintain and renew our commitment to a safer, cleaner environment, and to use energy efficiently. Increased energy efficiency in buildings plays a key role in environmental improvement, energy security, improved indoor environments and reduced energy costs.

The Leonardo Academy, Inc. is an independent non-profit organization, which runs the national Cleaner and GreenerSM Environment Program funded by grants from foundations, government contracts and private donations. Leonardo Academy’s mission is to put the competitive market to work on improving the environment. The Academy provides independent analysis and recognition for companies and their customers who implement energy efficiency improvements.

The Academy helps businesses and organizations equate energy savings to equivalent emission reductions in an effort to promote the development of markets and financial rewards for the emission reductions. For more information about The Leonardo Academy or the Cleaner and Greener Environment Program visit their website at

Johnson Controls Inc. is a global market participant in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating and interior systems, and batteries.

For nonresidential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. Johnson Controls (NYSE: JCI), founded in 1885, has headquarters in Milwaukee, WI. Its sales for 2001 totaled $18.4 billion. For more information, visit the company’s Web site at

Previous articleFERC acceptance allows CMS Energy to close $300 million electric transmission system sale
Next articleWilliams announces first-quarter recurring earnings of 51 cents per share

No posts to display