12 ENERGY & FUEL MANAGEMENT – ELECTRIC POWER Warehousing and distribution of food products for human consumption is an energy intensive business. Electric power is used for refrigeration, heating, ventilation, HVAC systems and lighting. Electricity usage represents a significant cost across our operations and contributes to approximately 18% of our greenhouse gas emissions. At PFG, 367,701 megawatt hours (MWh) of electric power was consumed across our enterprise during fiscal 2021. As part of our commitment to improve efficiency of our operations, reduce our carbon footprint, and maximize energy cost savings opportunities, we have set a goal to reduce our power consumption intensity by 20% by 2030 . To achieve this goal, we will focus on implementing strategic energy efficiency projects throughout our facilities by investing in energy-saving technologies and optimizing operations and maintenance practices. ENERGY EFFICIENCY TREASURE HUNT PILOT PROGRAM During fiscal 2021, we rolled out an Energy Efficiency Treasure Hunt pilot program at our Performance Foodservice – Chicago location. Personnel at this refrigerated warehouse facility partnered with a third- party energy management consulting firm to explore efficiency opportunities for reducing energy use, electricity costs and emissions within our refrigeration, lighting and charging systems. This pilot program has led to the identification of energy saving opportunities and successful implementation of low-cost behavioral, operational and maintenance actions, reducing the energy intensity of the facility by realizing a 14% reduction in the amount of electric power consumed per shipped case . In addition to achieving utility cost savings, these actions are expected to produce an annualized energy savings of over 681,000 kWh and a mitigation of over 600 metric tons of greenhouse gas emissions. Given the results achieved through this pilot program, over the next year we will roll out additional Energy Efficiency Treasure Hunts to other facilities and review and implement low-cost power usage reduction recommendations across the enterprise. RENEWABLE ENERGY PROCUREMENT In addition to reducing our carbon footprint through operational efficiencies, we are exploring renewable power purchasing agreements and leveraging national- and state-level tax incentives to procure more wind and solar energy across our enterprise. As part of our climate-related commitments, we have set an enterprise goal to secure 10% of purchased electricity from renewable sources by 2030. At PFG, we have already taken the next steps in delivering on this commitment to expand renewable energy procurement throughout the organization. We established a process for evaluating and implementing power purchasing agreements and, in July 2021, we announced a 20-year net metering credit agreement with EDPR NA Distributed Generation, a subsidiary of EDP Renewables North America. Through this collaborative endeavor in New Vineyard, Maine, we will purchase power generated from the 2.25 megawatt (MW) solar project, estimated at 3,000 MWh of clean energy per year . The project is anticipated to commence generating renewable power in 2022. This will address 80% of the electric power usage at our Performance Foodservice – NorthCenter location in Augusta, Maine, while reducing our carbon footprint and contribution to climate change. The renewable power generated annually by this project represents 2,103 metric tons of avoided CO 2 emissions , equivalent to removing nearly 460 passenger vehicles from the road, or the carbon sequestered by 2,746 acres of forest . We are confident that a combination of growing tax incentives and more expansive renewable infrastructure will enable PFG to power its facilities while significantly reducing the carbon emissions associated with its day-to-day operations. DEMAND RESPONSE We have implemented a demand response program by working with utility providers to reduce energy use during peak demand hours through management practices and training for associates. We have achieved utility cost savings by reducing demand during peak periods or shifting energy use to times of day when there is less demand on the grid or when more renewable energy is available. This also contributes to our efforts to align our operations with environmental best practices. By participating in these voluntary reductions or shifts in energy, we take an active role in reducing stress on the grid, decreasing air pollution and improving air quality.
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