As we become more conscious of our impact on the planet, businesses in many industries are adopting more environmentally friendly practices. This includes proactive auto dealerships that use more efficient renewable energy sources and reduce overall energy and water consumption.
Environmental stewardship benefits us all, including both hard-dollar savings and an improved image among customers who prefer buying from sustainable businesses. Your dealership also could realize tax benefits by implementing approved solar and geothermal energy systems.
Green dealer programs
Some auto manufacturers have introduced programs to encourage and reward dealerships that practice environmental sustainability. For example, Honda launched the Honda Environmental Leadership Program in 2012 to recognize dealerships that initiate sustainability improvement programs.
More than 800 Honda dealerships voluntarily participate in the Honda Environmental Leadership Program, with more than 250 of those dealerships earning Honda Environmental Leadership Awards for reducing their energy usage. Two Honda dealerships have even become “electric grid neutral” by producing as much or more energy from renewable energy sources as they consume from their local electric utilities. Since 2012, Honda Green Dealers have collectively reduced output of carbon dioxide by almost 60,000 metric tons and saved $13 million in energy costs.
The Honda program focuses on reducing energy consumption and maximizing cost savings. It targets a 10% or greater reduction in dealership total energy use via energy reduction programs with payback periods of up to five years. The program recommends various low- or no-cost measures, including:
Dealers also can complete an energy audit. Often utility companies offer these audits free of charge.
In 2014, General Motors launched a program similar to Honda’s initiative. To earn GM’s Green Dealer certification, dealers must demonstrate a commitment to environmentally friendly business practices by implementing energy reduction, renewable energy, water conservation, and other sustainability initiatives.
One recent recipient of the Green Dealer certification is in Youngstown, Ohio. The dealership is using energy-efficient exterior and interior lighting and motion detection lighting extensively, and has also installed low-flow water fixtures and faucets to reduce water usage. In addition, they sponsor environmental activities to help educate the community and have a dedicated “green team” that is working on new ideas for eco-friendly improvements.
GM’s goal is to use 100% renewable energy to generate electrical power at each one of its 350 operations around the world by the middle of this century. Sustainability initiatives have enabled GM to reduce carbon dioxide output by 388,000 metric tons and save $73 million in energy costs. More than 270 GM dealerships have received the Green Dealer certification since the program’s inception.
If you want to “go green” but you are unsure how to start, ask your manufacturer’s representative or members of your Dealer 20 group. The possibilities are endless.
Dealerships that have implemented sustainability programs like these cite many benefits of going green. For starters, these initiatives can increase operational efficiency
and lower energy costs, resulting in higher profits. Dealerships may also gain a reputation in the community that they are environmentally responsible. This can provide a competitive edge against other dealerships that have not implemented practices in environmental sustainability.
Higher employee morale is another potential benefit. Many people today want to work for employers that are actively practicing environmental sustainability. In addition, there are federal tax breaks for certain types of energy efficiency upgrades. (See “Saving green by going green.”)
Environmental awareness will likely grow even more in the future. So, it’s time to think about ways your dealership can be more eco-friendly. Brainstorm with your management team about the kinds of green initiatives you can implement today.
Have more questions about how your dealership can save even more money or plan for the future?
LGT's Profit Sense
Financial Tips from Your Trusted Advisor
Keeping you up to date with: