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Harvard Case - Middlebury College: Energy2028

"Middlebury College: Energy2028" Harvard business case study is written by Brian Trelstad, Michael Norris, John McKinley. It deals with the challenges in the field of General Management. The case study is 32 page(s) long and it was first published on : Apr 7, 2020

At Fern Fort University, we recommend Middlebury College adopt a comprehensive Energy2028 strategy that prioritizes environmental sustainability, cost efficiency, and innovation. This strategy should include a combination of renewable energy investments, energy efficiency improvements, and educational initiatives to achieve a carbon-neutral campus by 2028.

2. Background

Middlebury College, a prestigious liberal arts institution, faces the challenge of reducing its carbon footprint while maintaining its commitment to academic excellence and financial stability. The case study highlights the college's existing efforts, including the development of a comprehensive energy plan, 'Energy2028,' which aims to achieve carbon neutrality by 2028. However, the college faces several challenges, including the high cost of renewable energy, the need for significant infrastructure upgrades, and the potential impact on campus operations.

The main protagonists in the case study are:

  • President Laurie Patton: The college president who is committed to environmental sustainability and has a strong vision for the future of the college.
  • The Energy2028 Task Force: A group of faculty, staff, and students tasked with developing and implementing the college's energy plan.
  • The Board of Trustees: Responsible for overseeing the college's finances and approving major investments.

3. Analysis of the Case Study

Strategic Framework: We will utilize a SWOT analysis to assess Middlebury College's internal strengths and weaknesses, as well as external opportunities and threats, to inform our recommendations.

Strengths:

  • Strong commitment to sustainability: Middlebury College has a well-established commitment to environmental sustainability, which is reflected in its mission and values.
  • Engaged student body: Students are actively involved in sustainability initiatives and advocate for change.
  • Strong financial position: The college has a solid financial foundation, enabling it to invest in energy infrastructure upgrades.
  • Reputation for academic excellence: The college's strong reputation attracts talented students and faculty, providing a platform for research and innovation.

Weaknesses:

  • High cost of renewable energy: The initial investment in renewable energy sources can be substantial, impacting the college's budget.
  • Infrastructure limitations: The current infrastructure may not be suitable for accommodating large-scale renewable energy projects.
  • Potential impact on campus operations: Transitioning to renewable energy may require significant adjustments to campus operations, potentially disrupting daily activities.
  • Limited expertise in renewable energy: The college may lack the necessary expertise to manage and maintain renewable energy systems.

Opportunities:

  • Government incentives and subsidies: Federal and state governments offer incentives and subsidies for renewable energy projects, reducing the financial burden on the college.
  • Technological advancements: Rapid advancements in renewable energy technologies offer cost-effective solutions and increased efficiency.
  • Growing demand for sustainable education: Students are increasingly seeking institutions with strong sustainability commitments, creating a competitive advantage for Middlebury College.
  • Partnerships with private companies: Collaborating with private companies can provide access to expertise, funding, and technology.

Threats:

  • Political uncertainty: Changes in government policies regarding renewable energy could impact the college's plans.
  • Economic fluctuations: Economic downturns could affect the college's ability to invest in renewable energy.
  • Competition from other institutions: Other colleges and universities are also pursuing sustainability goals, potentially impacting Middlebury's competitive edge.
  • Public perception: Negative public perception of renewable energy could hinder the college's efforts.

Financial Framework: We will assess the financial feasibility of various energy solutions using a Net Present Value (NPV) analysis to determine the long-term return on investment.

Marketing Framework: Middlebury College can leverage its commitment to sustainability as a key marketing differentiator, attracting students, faculty, and donors who value environmental responsibility.

Operational Framework: We will evaluate the operational impact of different energy solutions, considering factors such as energy efficiency, reliability, and maintenance costs.

4. Recommendations

1. Renewable Energy Investments:

  • Solar Power: Install solar panels on rooftops and unused land to generate clean energy.
  • Wind Power: Explore opportunities for wind power generation, potentially through partnerships with local wind farms.
  • Geothermal Energy: Investigate the feasibility of geothermal energy, particularly in areas with high geothermal activity.

2. Energy Efficiency Improvements:

  • Building Retrofits: Implement energy-efficient upgrades to existing buildings, including insulation, window replacements, and high-efficiency HVAC systems.
  • Behavioral Change: Promote energy conservation practices among students, faculty, and staff through educational programs and incentives.
  • Smart Technology: Utilize smart building technologies to optimize energy consumption and reduce waste.

3. Educational Initiatives:

  • Sustainability Curriculum: Integrate sustainability into the college's curriculum, offering courses on renewable energy, environmental science, and climate change.
  • Research Opportunities: Support research projects focused on renewable energy and climate change solutions.
  • Community Engagement: Partner with local organizations and businesses to promote sustainable practices and raise awareness.

5. Basis of Recommendations

Core Competencies and Mission: These recommendations align with Middlebury College's commitment to academic excellence, environmental responsibility, and innovation.

External Customers and Internal Clients: The recommendations will benefit students, faculty, staff, and the surrounding community by providing a cleaner, more sustainable campus environment.

Competitors: By investing in renewable energy and sustainability initiatives, Middlebury College can gain a competitive advantage over other institutions that are not pursuing similar goals.

Attractiveness: The NPV analysis will demonstrate the long-term financial benefits of these investments, including lower energy costs and increased property values.

Assumptions:

  • Government incentives and subsidies will remain available to support renewable energy projects.
  • Technological advancements in renewable energy will continue to drive down costs and improve efficiency.
  • Students, faculty, and staff will actively participate in sustainability initiatives.

6. Conclusion

By implementing a comprehensive Energy2028 strategy that prioritizes renewable energy investments, energy efficiency improvements, and educational initiatives, Middlebury College can achieve its goal of carbon neutrality while maintaining its commitment to academic excellence and financial stability. This strategy will position the college as a leader in sustainability, attracting talented students, faculty, and donors who value environmental responsibility.

7. Discussion

Alternatives:

  • Continuing with existing energy practices: This option would not achieve the college's sustainability goals and could lead to increased costs and reputational damage.
  • Focusing solely on renewable energy investments: This approach could be financially unsustainable and may not adequately address the college's energy efficiency needs.

Risks:

  • Technological advancements: Rapidly evolving renewable energy technologies could make current investments obsolete.
  • Financial constraints: Economic downturns could impact the college's ability to fund energy projects.
  • Public perception: Negative public perception of renewable energy could hinder the college's efforts.

Key Assumptions:

  • Government incentives and subsidies will remain available.
  • Technological advancements in renewable energy will continue.
  • Students, faculty, and staff will actively participate in sustainability initiatives.

8. Next Steps

Timeline:

  • Year 1: Develop a detailed implementation plan, identify potential funding sources, and secure necessary approvals from the Board of Trustees.
  • Year 2: Begin implementing renewable energy projects and energy efficiency upgrades.
  • Year 3-5: Continue implementing energy initiatives, monitor progress, and adjust strategies as needed.
  • Year 6-8: Complete major energy projects and achieve carbon neutrality by 2028.

Key Milestones:

  • Secure funding for renewable energy projects.
  • Implement energy efficiency upgrades in key buildings.
  • Develop and launch sustainability curriculum.
  • Establish partnerships with local organizations and businesses.
  • Monitor progress and adjust strategies as needed.

By taking these steps, Middlebury College can effectively implement its Energy2028 strategy and become a model for sustainable higher education.

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Case Description

In 2018, Middlebury College's board of trustees is considering a proposal called Energy2028 that would push the small, liberal arts and sciences college in Vermont to become a net zero carbon emitter, decrease energy usage by 25%, divest fossil fuels from its endowment, and build new educational programming focused on energy and climate change. Building the Energy2028 proposal was a multistakeholder process that was guided by the college's president, Laurie Patton. Patton and her team brought together student activists, faculty experts, board members, and financial experts to craft a proposal that was bold, yet achievable. Perhaps the most surprising element was the divestment pledge. Just five years earlier, the board had faced a similar decision on divestment and chose not to act. Had Patton done enough to convince the board to change their minds and support the complete package of Energy2028?

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