ISO 14000 and Environmental Management
Case Studies

Honeywell Inc.

Honeywell has been aggressive in their efforts to improve environmental performance.  These efforts include the following areas:

The Green Lights program reported an annual savings of $1,591,738 as of 10/96.  The total amount of energy saved under this program since 1991 is 16 million Kilowatt-hours. The Energy Star Buildings program reported an annual savings of $2,664,236 as of 10/96.

Honeywell reports both the costs and the benefits of the Energy Star Buildings program at a summary level and for individual sites. The following table is a part of their summary:

Annual Cost Savings Through 1996 $2,979,221
Annual Cost Savings Upon Completion $4,602,957
Total Cost of Upgrades $29,399,823
Total Cost of Upgrades to date $23,492,105
1997 Forecast Upgrade Costs $1,611,260
Tons of Pollution Prevented 37,000

The annual savings of $4.6 million at a cost of $29.4 million have a payback of 6.3 years (not adjusted for the time value of money).  While this may be a longer payback period than would be desired from an investment, it does show that environmental management can provide a positive return over time.

Honeywell also reports statistics by facility.  The following is an example:

Facility Name: Commercial Aviation Hanger

Stage Costs through current year Costs to complete Est. annual cost savings - current Est. annual cost savings - at completion
Green Lights $15,284 $2,000 $3,500 $4,000
Building Tune-Up $3,000 $8,000 $0 $1,000
HVAC Load Reductions $0 $12,000 $0 $2,000
Fan Systems $0 $33,000 $0 $5,000
HVAC Plant Improvements $0 $10,000 $0 $2,000
TOTALS $18,284 $65,000 $3,500 $14,000

Benefits were also achieved from changing processes and materials. For example, toluene was replaced by a non-VOC chemical and a new manufacturing process.   Coating was accomplished in one pass instead of two. This enabled manufacturing engineering to reduce cycle time and the cost of the product.  In another application, freon was replaced with liquid nitrogen for testing circuit boards in extreme cold.  This was found to be a more cost effective way to test.

Frequently the reason for changing processes or materials was to achieve environmental compliance. Often this led to cost savings as well.

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