Herman Miller Nets 32 Percent ROI from Energy Efficiency Investments

October 30th, 2008

Office furniture manufacturer Herman Miller’s investments in areas such as energy efficiency have resulted in a 32 percent rate of return, according to a case study recently published by Forrester Research.

According to the study, Herman Miller has reduced landfill waste by 80 percent, hazardous waste by 91 percent, overall emissions by 87 percent and water usage by 67 percent. During the same period, sales doubled to more than $2 billion.

Herman Miller has maintained sustainable business practices for more than 50 years. It has been known for its audacious environmental goals and for transforming its organization, design, manufacturing processes, marketing materials and customer relationships.

The company uses techniques such as lean manufacturing and the Cradle to Cradle Design Protocol to reduce costs and improve overall manufacturing efficiency. It is aiming to be carbon-neutral by 2020.

Herman Miller’s CEO Brian Walker recommends that companies wanting to green their supply chains should design products with sustainability as a core principle, put the goals on paper and embrace transparency and meaningful metrics that can be efficiently measured and communicated to stakeholders and investors.

This is an example of how companies can leverage EHS management to improve performance and generate measurable benefits. In this case, Herman Miller identified process improvements that enabled the company to meet its sustainability goals, increase operational efficiency and earn a solid return on investment. It’s a reminder that EHS management is no longer just about compliance.

Tags: cradle to cradle design protocol emissions energy efficiency investments forrester research herman miller lean manufacturing

Entry Filed under: Operational Risk Management, Sustainability, Greenhouse Gas Emissions, Governance, Risk and Compliance (GRC), Energy Efficiency