Executive Summary
Sustainability at the corporate
level is becoming increasingly
fundamental. Corporations are
responsible for managing their carbon
footprint, as well as the effects that their
business processes have on people, the
planet, and the profits of the company.
As an audit intern employee of Deloitte &
Touche, I will be conducting an individual
consulting project that identifies an
element of the organization that can be
enhanced through sustainability. I have
formulated and evaluated an initiative
that will strategically strengthen the
company’s impact on people, the planet,
and its profits. By integrating this
proposed initiative at the San Jose office,
Deloitte & Touche will subsequently
enhance their business processes and
achieve improved sustainability. This
improvement will also enhance Deloitte’s
credibility with its clients, while reducing
its impact on the environment.
Additionally, I will utilize the “SUCCESS”
strategy highlighted in Chip and Dan
Heath’s bestseller, “Made to Stick” to
guarantee that the newly implemented
initiative will “stick” and be sustained at
Deloitte & Touche.
The proposed sustainability initiative will
be strategically embedded at Deloitte &
Touche to ensure that the initiative is long
lasting and will continuously cultivate a
positive impact on the company.
I have proposed that light retrofitting
from fluorescent lights to LED (lightemitting diodes) will enhance
sustainability at Deloitte & Touche’s San
Jose office. I have qualitatively examined
data that sufficiently advocates this
proposed initiative, as well as gathered
other relevant information quantifying
1
the several benefits of lighting retrofit at
Deloitte & Touche.
Lighting Retrofit is the practice
of replacing components in a lighting
system with counterparts that make it use
energy more efficiently.1 Overtime,
lighting retrofit at Deloitte & Touche’s San
Jose office will significantly reduce
electricity costs and will eventually
produce a return on investment.
Deloitte & Touche will experience several
benefits once lighting retrofit has been
implemented. Lighting retrofit at Deloitte
& Touche’s San Jose office will reduce
energy and maintenance costs
significantly, thus reducing operating
expenses. There are numerous statistics
advocating lighting retrofit.

According to Energy Savings Cost
Council, energy-efficient lighting
upgrades represent the highest
return on investment of any single
technology project.

With an average ROI of 45 percent,
lighting retrofit will pay for itself
in 2.2 years.2
While reducing costs significantly,
lighting retrofit will also improve
performance and productivity.
Most notably, lighting retrofit will
positively impact the environment and
will enhance Deloitte’s social
responsibility while the business
continues to grow.
"Light Guide: Lighting Retrofit Economics." Light Guide:
Lighting Retrofit Economics. LightSearch.com, n.d. Web. 13 Nov.
2014.
2 What Are the Benefits of a Retrofit?" Graybar. N.p., n.d. Web.
13 Nov. 2014.
1
Introduction
The Deloitte Network “is
committed to driving societal change and
promoting environmental sustainability.
Working in innovative ways with
government, non-profit organizations, and
civil society, [they] are designing and
delivering solutions that contribute to a
sustainable and prosperous future for all.”3
Undoubtedly, Deloitte & Touche feels
strongly towards sustainability within its
company. Lighting retrofit will employ
Deloitte & Touche to obtain their goals
such as “driving societal change” and
“promoting environmental health”. New
LED retrofitted lighting will also pave the
path for Deloitte & Touche to gain market
leadership, as well lower its operating
expenses.
Lighting retrofit has numerous benefits and
will positively affect Deloitte & Touche’s
profits, society, and future of the planet.
Deloitte & Touche’s San Jose office is
currently lit by fluorescent lighting.
However, there are numerous benefits to
switching to LED lighting. LED (lightemitting diode) lights “consume 50% to
90% less power than conventional light
builds and lasts up to 50,000 hours, as
opposed to 7,000 hours for CFL’s (company
fluorescent lamps).”4 Deloitte & Touche
will save a significant amount of money on
bulb replacements and operating costs due
to LED’s longer life span and lower energy
consumption. LED’s are made from
recycled material and do not contain any
hazardous materials such as mercury.5 This
high quality light does not buzz or flicker,
3Corporate
Responsibility & Sustainability | Deloitte | About
Corporate Responsibility & Sustainability." Deloitte. N.p., n.d.
Web. 13 Nov. 2014.
4 "The Benefits of LED Lights." LED Bulbs and Lights. N.p., n.d.
Web. 13 Nov. 2014.
5 All You Need to Know about LED Lighting." Benefits of LED
Lighting. N.p., n.d. Web. 13 Nov. 2014.
2
and it “converts energy to light instead of
heat.”6 Therefore, LED’s produce almost no
heat unlike their fluorescent counterparts.
Fluorescent lights, such as T12’s, T8’s, and
T5’s utilize more energy and thus cost
companies more in operating expenses
(See Figure 1.1).
Figure 1.17
This new innovation of sustainability will
provide the company with a strategic
advantage over competition because
sustainability drives revenue. Clients are
more likely to engage in business with
energy efficient companies; therefore,
Deloitte & Touche must remain
competitive from a sustainability
standpoint. Aside from increased profits,
Deloitte & Touche should choose lighting
retrofit because it is the right thing to do
for the advancement of society. Deloitte &
Touche believes in making measurable
changes in communities by committing
inspirational actions and being “societal
change makers.” Deloitte & Touche instills
“great pride in knowing that what [they] do
is best—applying [their] skills and
experience to accelerate positive, societal
impact.”8
All You Need to Know about LED Lighting." Benefits of LED
Lighting. N.p., n.d. Web. 13 Nov. 2014.
7 TREND REPORTS." LED Tube. N.p., n.d. Web. 13 Nov. 2014.
8 Corporate Citizenship." Deloitte. N.p., n.d. Web. 13 Nov. 2014.
6
Background and Necessity
3
Currently, Deloitte & Touche is consuming about 50 percent more electric energy than it
needs to be with new sustainable, technological advancements such as lighting retrofit. A
switch from fluorescent office lighting to LED lighting will save the company thousands of
dollars, reduce energy consumption, and reduce greenhouse gases and other pollutants.
LED’s are initially more costly to purchase and install than counterparts, such as
incandescent and fluorescent bulbs; however, overtime, LED’s prove to be more cost and
energy efficient.
Heath’s “SUCCESS” model and principles
In order to ensure the success of the
apply to Deloitte and Touche’s need for
lighting retrofit initiative at Deloitte &
LED light retrofitting in several ways.
Touche, principles from Dan Heath’s
First, Heath demonstrates the importance
“Made to Stick: Why Some Ideas Survive
of keeping ideas simple. Therefore, this
and Others Die” will be utilized. “Made to
proposal will only specifically address the
Stick” postulates what makes an idea or
lighting retrofit at the San Jose office. If
concept memorable and sustainable.
the proposal and its implementation are
Heath creates a model that he asserts, if
successful in San Jose, it can be
followed properly, will make an idea
introduced at other offices in the future.
“sticky”. This model follows the acronym
Next, Heath argues that in order for the
“SUCCESS”:
initiative to “stick”, it must be unexpected.
The proposed initiative will grab
management’s attention with its unique
and innovative ideas. Through lighting
retrofit Deloitte & Touche can become a
leader in corporate sustainability. The
initiative must also be concrete—it must
not be abstract or open to interpretation.
Lighting retrofit is extremely concrete
and the facts and evidence in favor of LED
lighting cannot be ignored. Credibility is
another principle of success. Details do
not lie, and lighting retrofit is
undoubtedly a viable initiative. Lastly,
Heath claims that every idea must appeal
to emotion. People need to care in order
to take action, and in the case of
sustainability, Deloitte & Touche claims to
possess strong consideration for the
environment. Therefore, for the wellbeing of the planet and society,
corporations like Deloitte & Touche need
to consistently demonstrate concern for
sustainable issues.
Simplicity
Unexpected
Concrete
Credible
Emotional
Stories
4
Cost Analysis
Deloitte & Touche receives a monthly bill for its utilities, such as electricity. Like any similar
corporation, Deloitte & Touche gets billed for its energy consumption, which consists of watts
used multiplied by the time they are used.
Energy Consumption (kWh) = Input Watts (kW) x Time (hours used)9
For purposes of lighting retrofit, we will focus on input wattage. Lighting retrofit will significantly
reduce input wattage at Deloitte & Touche by replacing current office lamps with more energy
efficient ones.
In 2012, Ernst and Young LLP, another one of the four big accounting firms, implemented lighting
retrofit in its headquarters in New York City. The large New York office is approximately 650,000
square feet, and supports roughly 5,800 Ernst and Young employees.10 We can compare Ernst and
Young’s New York office to Deloitte & Touche’s San Jose office to calculate the potential savings of
implementing lighting retrofit in San Jose.
Ernst & Young, NY Office
 650,000 square feet
 5,800 employees
 6.2 million kWh
used annually
Deloitte & Touche, SJ Office
 150,000 square feet
 1,300 employees
 1.4 million kWh used
annually
Lighting retrofit
Reduces kWh by 54%


Ernst & Young, NY Office
 650,000 square feet
 5,800 employees
 3.3 million kWh
used annually
Deloitte & Touche, SJ Office
Ernst & Young now saves $1million annually
 150,000 square feet
Deloitte & Touche can save $230,000 annually
 1,300 employees
 0.76 million kWh used
annually
Deloitte, similarly, will significantly increase energy savings after implementing lighting
retrofit at the San Jose office. According to statistics, Ernst and Young saved roughly $1
million per year after the installation of lighting retrofit. Deloitte & Touche’s San Jose office
does not publicize its annual electricity costs. However, by conducting cross multiplication,
we can estimate annual savings:

A/B = C/D
3.3 million/0.76 million = 1 million/ D
Therefore, D (Deloitte’s annual savings) = $230,000
9
Light Guide: Lighting Retrofit Economics." Light Guide: Lighting Retrofit Economics. N.p., n.d. Web. 13 Nov. 2014.
http://www.ey.com/US/en/Newsroom/News-releases/Ernst-Young-LLPs-headquarters-goes-green-with-lighting-retrofit-project
10
Assessment
Resources
According to research conducted at the Institute of the Environment and Sustainability at
the University of California at Los Angeles (UCLA), “the average cost per square foot for
LED lighting upgrade is roughly $5.”11 Deloitte & Touche, San Jose is 150,000 square feet, so
therefore the estimated cost of a new retrofitted lighting system in the office is $750,000.
150,000 feet x $5 = $750,000
Effectiveness
The effectiveness of the lighting retrofit project can be forecasted through breakeven
analysis and examining return on investment. Initially, during the first 3.3 years after the
lighting retrofit has been installed, Deloitte & Touche will save about $230,000 per year,
totaling $759,000. Following the breakeven point of the project, lighting retrofit will
produce a return on investment of 31 percent. Therefore, Deloitte & Touche will receive a
$232,500 (31 percent of the initial investment cost) annual return on investment.
Return on Investment and Breakeven Analysis
Investigating ROI can help a company determine if an investment is a good decision. Return
on investment is expressed as a percentage and it is the relationship “between annual
energy savings and the net installation cost.”12 The lighting retrofit project will “breakeven”
in the amount of time (in years) that goes by before the system’s energy savings reach the
net installation cost:
Breakeven (years) = Installation cost (4) / Annual Energy Savings ($)
Breakeven (years) = $750,000 / $230,000
Breakeven (years) = 3.3 years
ROI (%) = [Annual Energy Savings ($) / Net Installation Cost ($)] x 100
ROI (%) = [$230,000 / $750,000] x 100
ROI = 31%
The estimated ROI of implementing LED retrofits at Deloitte & Touche’s San Jose office is
31 percent, and the project will start generating a profit after 3.3 years. Additionally, the
cost of implementing the lighting can be reduced significantly though funding. For example,
Ernst & Young “reduced upfront costs for its LED retrofit by more than 13 percent through
utility rebates.”13 These utility rebates are offered frequently, as well as tax incentives.
There is an accelerated tax deduction that allows building owners to write-off the LED
lighting upgrade in the first year it is purchased rather than depreciating it over several
years.14 These tax incentives, rebates, and funding can all lower the cost of implementing
retrofit lighting and thus increase the project’s overall return on investment.
Comparing Retrofits: Lighting, HVAC, Windows." Comparing Retrofits: Lighting, HVAC, Windows. N.p., n.d. Web. 13 Nov. 2014.
Light Guide: Lighting Retrofit Economics." Light Guide: Lighting Retrofit Economics. LightSearch.com, n.d. Web. 13 Nov. 2014.
13 Comparing Retrofits: Lighting, HVAC, Windows." Comparing Retrofits: Lighting, HVAC, Windows. N.p., n.d. Web. 13 Nov. 2014.
14 Light Guide: Lighting Retrofit Economics." Light Guide: Lighting Retrofit Economics. LightSearch.com, n.d. Web. 13 Nov. 2014.
11
12
5
Conclusion
Lighting Retrofit
In summary, lighting retrofit at Deloitte &
Touche’s San Jose office will prove to be a
highly effective, sustainable initiative. It
will positively impact the environment by
reducing greenhouse gases and other
pollutants and will also reduce Deloitte &
Touche’s carbon footprint. Additionally,
lighting retrofit will reduce operating
expenses overall energy consumption at
the company. Finally, lighting retrofit will
provide Deloitte & Touche with a
significant financial return rate. A recent
survey given to Deloitte employees in
Netherlands showed a high correlation
between the sustainability and
investment, and the main driver to invest
in sustainable products is to generate
return on investment. 15
Implementation
LED light retrofit can be implemented at
the Deloitte & Touche San Jose office in a
relatively short time period of just a few
months and the process is an essentially
simple replacement installation. In fact,
Deloitte management has already made a
statement concluding
that existing commercial real estate that
does not undergo green retrofitting will
“relinquish market leadership within the
Utilities, Energy &. SUSTAINABLE ENERGY- Investment
Change or Climate Change?Sustainable Energy (n.d.): n. pag.
Web.
6
next few years due to higher operating
costs, lower productivity, declining
attractiveness to workers and negative
brand image.”16 Deloitte & Touche clearly
already recognizes the need for further
corporate sustainability. Therefore, the
lighting retrofit project should be
underway within the next year. Deloitte &
Touche will continue to demonstrate
strong social responsibility by surpassing
any minimum legal requirements in how
their business processes impact the
environment and people.
Future Implications
Light retrofitting from fluorescent bulbs
to LED lights will make Deloitte &
Touche’s San Jose office considerably
more energy efficient while reducing the
company’s cost structure. Subsequently,
Deloitte & Touche will set a higher
precedent for corporate sustainability
and continue to be a leading company in
sustainability. Clients will choose to do
business with Deloitte & Touche due to its
excellent professional, as well as its
environmentally conscientious choices. In
conclusion, Deloitte & Touche, San Jose
should implement the lighting retrofit
initiative to enhance sustainability for
people, the planet, and its profits.
15
"Resources." Green from the Ground Up: Environmental
Retrofits and the LEED Process. N.p., n.d. Web. 13 Nov. 2014.
16
Appendix
To:
From:
Date:
Subject:
7
Deloitte & Touche, San Jose Employees
Jacqueline Mokry
November 13, 2014
Lighting Retrofit Proposal
Sustainability Initiative at Deloitte
As an audit intern in the San Jose office, I have recently proposed a new sustainability
initiative, lighting retrofit, to be implemented at Deloitte & Touche. The San Jose office is
currently lit by fluorescent light bulbs. However, technological advancements in recent
decades have created a new light called LED (light-emitting diode). Although initially more
expensive than fluorescent bulbs, LED’s will eventually prove to be financially
advantageous for the company. This highly energy-efficient bulb has the potential to
significantly lower energy consumption, as well as produce a great financial return for the
company in the future. A lighting retrofit project will essentially replace every light bulb in
the San Jose office with a more energy efficient, profitable counterpart.
Potential Value
After conducting an analysis of environmental and financial benefits of lighting retrofit at
Deloitte & Touche, I have concluded that the project will breakeven in about 3 years and
will yield an impressive annual return on investment of 31 percent. Thus, while improving
sustainability with this conscientious retrofit, Deloitte & Touche will also positively impact
its stakeholders and profits. Deloitte & Touche has a strong commitment to protect its
people, the planet, and company profits. Therefore, switching from fluorescent lighting to
LED lighting retrofit is an initiative that will allow Deloitte & Touche to live up to its
mission of sustainability. I ask each of you for your support in the implementation of
lighting retrofit at Deloitte & Touche. This initiative will substantially enhance
sustainability at our company, thus driving societal chance and contributing to a
sustainable and prosperous future for all.