© 2010 Hara / Confidential / Page 1

Michel GelobterChief Green Officer, Hara

Energy IT: The Fastest Path to Change?

Source: McKinsey & Co.

Market failures Behavioral IssuesExternalities:Usage; R&D

Low salience of energy issues ???

Principal/Agent Problems Principal/Agent Problems

Poor Information about Prices and Energy Use

Poor Information about Prices and Energy Use

Incomplete markets for energy efficiency

Managerial Priorities

Systems Issues (E.g. Chicken & Egg)

Lack of Energy-Related Information Systems

Distortionary regulatory and fiscal policies

Cognitive Skills

Source: Prof. Jim Sweeney, Precourt Energy Efficiency Center, Stanford University

Market Failures and Behavioral Issues

Market Failures and Behavioral IssuesMarket failures Behavioral IssuesExternalities:Usage; R&D

Low salience of energy issues ???

Principal/Agent Problems Principal/Agent Problems

Poor Information about Prices and Energy Use

Poor Information about Prices and Energy Use

Incomplete markets for energy efficiency

Managerial Priorities

Systems Issues (E.g. Chicken & Egg)

Lack of Energy-Related Information Systems

Distortionary regulatory and fiscal policies

Cognitive Skills

Source: Prof. Jim Sweeney, Precourt Energy Efficiency Center, Stanford University

Behavioral Challenges

Fragmented Environmental & Energy Information

Disconnected Business Processes

Lack of Transparency

Siloed Best Practices & Lessons LearnedMisaligned Stakeholders,

Poor Collaboration Multiple, Complex Reporting Requirements

Uninformed Investment Decisions

Data quality, accuracy,

auditability, scalability challenges

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Organization

Products Financials

Supply Chain 

Customers Employees

20th Century Drivers of Value

© 2010 Hara / Confidential / Page 6

Your Company

Share/Stake

holder

Value

Environment and Energy 

Customers Employees

Next Strategic Driver of Value

Supply Chain 

Products Financials

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Organizational Metabolism

Fossil Fuels

Other Energy

Raw Materials

Water

Inputs

GHG Emissions

Solid Waste

Water Waste

Outputs

Company

Geography

Region

Site

Building

Asset

© 2010 Hara / Confidential / Page 8

Profitably Meeting Reduction Goals

2005 2006 2007 2008 2009 2010 2011 2012

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CO2eWasteWater

FacilitiesRenewablesLightingSmart GridTransportationTravelWater & WasteOffsetsEnergy ProductionPolicies

Discover(Environmental

Inventory)

Act(Executing Initiatives)

Innovate

Plan(Reduction Strategies)

Why Environment & Energy

ImproveEfficiency

MaximizeValue

ManageRisk

Cost Savings

Company Brand/Image

Customer Requirements

GHG Regulation

Investor Pressure

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Example 1:

Situation Before Hara:Manual GHG inventory Data in multiple inconsistent spreadsheets Energy costs not allocated to BUClimate Action Plan with Goals but no implementation

Goals:Meet GHG reduction goals Manage & track Climate Action PlansCut energy & materials costsInclude stakeholders in climate change

Challenges:Unify and transform data managementLimited resourcesTransform the organization

Hara EEM SolutionAuditable GHG InventoryStrategic business planning for CAPTrack departmental carbon budgetsAssess costs and benefits of actionsUploads utility data from meters & City SAP system

Operational EfficiencyCost savings of $550K first yearYear 1 - 8% reduction in electricity, 25% natural gas, 22% solid wasteGHG reduction of 12% (goal was 5%)

Example StrategiesElectricity UsageBuilding EfficienciesWater UsageTransportation

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Example 2: News Corporation

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Business Drivers

• Move beyond spreadsheets towards comprehensive measurement and strategic management

• “0 by 2010”– Goal of carbon neutrality by 2010• Maintain leadership in industry (e.g. voluntary

reporter, home to first carbon neutral TV show “24”)

Hara Solution

• Central platform to manage energy & environmental information, report against multiple global protocols, find cost savings opportunities, track progress and share best practices across worldwide operations

Why Hara?

• Intuitive nature of application• Breadth and depth of solution• Plan and implement energy reduction strategies

“After evaluating numerous solutions, we selected Hara due to the intuitive nature as

well as the breadth and depth of the Hara solution – which

we expect will take us far beyond carbon accounting and

help us plan and implement energy reduction strategies

while reducing carbon emissions.”

Vijay Sudan, Manager of Energy Initiative.

Example 3: Akamai

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Business Drivers

• Top down call for sustainability implementation from CEO

• Multiple global reporting requirements• Complexity of gathering consistent data

HaraSolution

• Covers 1,300 data centers • Granular sustainability focus– solution measures

down to server level

Why Hara?

• Comprehensiveness and flexibility of solution• Considered Hara to be a business differentiator

in brand equity when selling Akamai services

“After evaluating offers across the market, it became clear to us that Hara could provide the

most comprehensive and versatile solution that would

enable us to model the complexity of our network but could also scale with us over

time. Furthermore the flexibility of Hara’s service enables us to analyze the data in a way that is meaningful to our business not just for carbon emissions

reporting.”

-Nicole Peill-Moelter, Director of Environmental

Sustainability

Customer Example: Safeway

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Business Drivers

• Long history of excellence in reducing energy costs via energy efficiency and supply chain

• Partnerships with CCX, CCAR, and EPA to reduce footprint

HaraSolution

• 1,800 facilities nationwide• Consolidation of data ranging from stores and

manufacturing distribution centers to fuel stations.

Why Hara?• Establishes a single environmental record• Automation of utility data • Capable of a company-wide consolidated view of

utility spending.

“Hara adds value by giving us not only reliable insight into the size and makeup of our energy usage and carbon footprint, but

also a solid roadmap for achieving further cost

reductions and better carbon management.”

- Joe Pettus, Senior Vice President of Fuel and Energy

Engaging Employees

Showcase Internal Initiatives

Public/Lobby dashboards

Deepen employee engagement with employee-driven initiatives

Employee

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Your organization Partner organization

Your facilityX

Supplier Facility B

FacilityB

InterOrgunit relationship

Inter-organization relationship

Supplier Facility X

Partner Enters Activity DataElectricity for 2009 = 100 KWH

Partner attributes 25% to you – 25 KWH

Partner Facility footprint as your scope 3 = 25 KWH

Gets rolled up into your scope 3 footprint

- Full traceability, auditability

EEM Environment Supplier’s EEM Environment

Quantitative Supply Chain Relationships:

Fire

wal

l

Supply Chain Best Practices

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Change the World…

Content Providers

End User Devices

Data Centers

Efficient Devices + New Service Models = A Radically Smaller Footprint