But what should companies be doing about it—now? Just like with energy efficiency, there is much low-hanging fruit to be picked where water is concerned.

Landscaping, which consumes more than 50% of urban water, is just one place to start.

Surprisingly, automatic irrigation systems can contribute to either the problem or the solution. Currently, there are about 60 million of these automated watering systems across the U.S., used by governments, real estate developers, suburban office parks and retailers. Most operate on timers—that is, they water the grass or plants every few days for a set number of minutes, regardless of whether it has been raining or not or the weather is sunny or cloudy.

"This current technology makes about as much sense as having a timer instead of a thermostat in your house," says Chris Spain, the founder of a company called Hydropoint, which offers smart irrigation systems.

Water conservation, cost cutting and increased yields

Born from parched necessity, a new crop of hydrological innovations, featured in EDF's Innovations Review 2009 has sprouted up. By combining weather data, soil sensors and wireless communication, companies like PureSense, Hydropoint, and Acequia are helping companies use less water—and save money—by precisely scheduling irrigation for commercial landscaping, as well as for agricultural crops.

The city of Newport Beach, CA., an early Hydropoint customer, says it reduced landscape runoff (and associated pollution) to its popular beaches by 70%. Other Hydropoint customers include Amazon, Advanced Micro Devices, Cisco, eBay, Lockheed Martin, McDonald's and Wal-Mart.

PureSense markets to farmers, particularly California's big growers of grapes, nuts and fruits. Its customers include The Wine Group, which says it increased its yield three years in a row, by 20 to 60%, and reduced its operating costs by 15% after installing a PureSense system.

On the financing side, Austin, Texas-based Acequia uses a model similar to energy service companies (commonly-known as "ESCOs"). Acequia fronts the capital costs of putting in the system in return for a cut of the savings its clients (including American Airlines and Hilton Hotels) realize from reduced water bills.

Thin client computers, made by HP, Wyse and others, are designed to be dumb. These stripped-down terminals run programs like internet browsers and word processors but store data on central servers (unlike conventional PCs which have their own processors and memory).

So what? By delivering numerous business and environmental advantages, these frugal computing devices are starting to vie with the traditional desktop PC. According to HP, "Thin clients provide a higher level of security, can reduce maintenance costs and consume less electricity compared to other desk-based computing products."

Not just for call centers: Why every company should consider thin clients

Traditionally, thin clients were used for the most basic applications, such as terminals in bank branches or call centers. Now, however, their capabilities have expanded, including to multimedia applications. Mobile thin clients are even available for telecommuters.

The energy savings of thin clients are substantial. Adopters say they are saving 25 to 50% on their energy costs. And in one study by Wyse (another leading manufacturer), the payback period for thin client investments averaged 11 months.

In a related environmental benefit, thin clients last longer and use fewer materials than conventional PCs, meaning less e-waste.

Thin computing's not-so-skinny future

With so many advantages, the future of thin client computing appears bright. IT market research firm IDC expects that the worldwide market will grow from 2.9 million units in 2007 to just over 7 million units in 2012.

The question is,  why aren't more companies switching to thin clients? Are we ready to say good-bye to the old-fashioned desktop PC?

For one such example of low hanging emissions which chronically cost companies money, we pick a sweet one from the Innovations Review tree.

Our knowledge-based economy depends on data centers to store and process electronic information. Yet data centers also waste enormous amounts of energy. Shockingly (so to speak), a typical data center uses less than 5% of total power for computing operations and loses the other 95% along the way as heat in the servers, as conversion losses in power supplies, powering fans and lights and in cooling systems required to remove all that waste heat.

Not a technical problem, but technically a problem

It'd be tempting to throw up our hands and mourn all that wasted energy and money as casualties to a necessary evil. But we can't excuse ourselves so easily. This is a management error, not a technical conundrum.

In 2008, McKinsey and the Uptime Institute co-investigated the IT sector and found technical solutions readily exist to clot this chronic energy hemorrhaging. Yet, companies are typically not organized in ways designed to minimize lifetime energy costs. For instance, facilities and IT divisions are siloed, so utility bills virtually never go to IT; and they often don't reach facilities, either.

McKinsey and Uptime found most companies would institute easy, cost-effective efficiencies if they instituted two organizational corrections:

1) Incorporating the true lifecycle cost of ownership in the business case for adding capacity to data centers.

2) Formally consolidating responsibility for data center IT and facilities expenditures under one executive (an "energy Czar" tasked with cutting costs through improved efficiency).

What would Google do?

Among all technology companies, Google has the operational structure and procurement policies that most closely resemble the ideal McKinsey-Uptime model. And in-line with the philosophy behind that model, Google's data centers have become models of efficiency by way of sound organizational strategy instead of mere technical prowess.

How? Google put all data center operations (IT and facilities) under the control of one executive, SVP of Operations Urs Hölzle, and encouraged employees to consider the total lifecycle cost of purchases or total cost of ownership (TCO).

The result? Google now powers its data centers using less than half the energy as the industry average.

Executives at every company operating data centers should consider making these types of organizational changes in order to take full advantage of cost-effective energy efficiency measures.

According to Google's SVP Urs Hölzle, "We've saved many hundreds of millions of dollars by managing TCO."

Kenneth G. Brill of the Uptime Institute agrees. He estimates that Google's industry-leading data center efficiency practices have saved the company at least $500 million in capital expenditures, $33 million in annual depreciation and $17 million in annual electricity costs.

The Institute also estimates that data centers account for between 8 and 35% of overall energy consumption at non-manufacturing firms.

Why don't other companies manage their data centers like this? What sort of obstacles stand in the way? How can they overcome them?

See EDF's Q&A with Urs Hölzle

Now is the best chance to seize the opportunity. Existing buildings can now gain features that have until recently remained the domain of new construction projects. These retrofits include simple installations like solar hot water heaters, low-water plumbing fixtures, day-lighting, waste water reuse, and fixtures and building features made from post-consumer/post-production waste or rapidly renewable materials.

More ambitious renovators can consider advanced energy management systems, highly efficient insulation/heating-cooling systems, "cool roofs" which reflect solar heat from a building's surface, and renewable power generation which can absorb that solar energy – as is the case with building-integrated photovoltaics (BIPV).

All of these measures can cultivate consumer relationships, increase property value and save money on operating costs.

Recreational Equipment, Inc. (REI) is a leader in this arena. The company built two prototype stores—a new one in Round Rock, Texas, that opened in 2008 and an extensive retrofit in Boulder, Colorado, that reopened in 2007. The Boulder store now consumes 25% less energy and 30% less water than the industry standard.

The company went on to allocate capital for systematic improvements to all of its more than 100 existing stores.

Wal-Mart is also experimenting with retrofits and spreading best practices throughout its stores. To take just one example, the preeminent retailer has logically installed LED lighting in all refrigeration cases because the energy savings pay back the upfront costs very rapidly.

Green is the New Black: Stylish and Smart

For a sector crowned or killed by trends, it behooves retailers to recognize that corporate sustainability is not a fad – it's just good business.
That returns us to the perennial theme of our Innovations Review: these cost savings expand profit margins while benefiting environmental protection and position retailers at the crest of a sea change in consumer conscience.

Consider the following cost savings REI earned through its retrofits:

-REI Round Rock’s "cool roof" reduces air conditioning usage by 10 to 15%.
-Efficient water fixtures reduce stores’ water usage by more than 30% at REI Boulder and 40% at REI Round Rock.
-Solar hot water systems heat 70% of the water.
-HVAC systems reduce energy use by 25%.
-Overall, REI Round Rock consumes 48% less energy than a typical store.
-At Boulder and Round Rock respectively, about 60 and 80% of construction waste was diverted from landfills

With their dual cost savings and marketing potential, why wouldn't retailers instigate these retrofits?

Thankfully, key-card energy management is a simple and effective way to conserve energy that has saved hotels money in Europe and Asia for years.

These systems link the heating, cooling and lighting in a room to an illuminated key-card slot near the entrance. When a guest leaves the room, taking the key card, the electricity is turned off, and the thermostat resets to a pre-selected non-occupied setting. When the guest returns and inserts the key in the slot, power returns to all equipment in the room-lighting, heating, cooling, TV and radio.

Rev Up RevPar: Energy savings can reach 45%

Maximizing RevPAR, or revenue per available room, is ultimately the primary goal of hotels and their managers. On that note, key-card system vendor RoomEnergy puts it simply: "If your rooms are wasting energy, you are wasting money."

DBS Lodging Technologies, based in Grosse Pointe, Michigan, is also a leading vendor of key-card energy management systems in the U.S. Its Entergize system has been installed in over 12,000 rooms across the country, from expensive brands like Westin and Wyndham to mom-and-pop hotels.

Depending upon a hotel's unique power profile, DBS Lodging's Entergize system can save 25 to 45% of the energy used by each room (not including energy to the hotel kitchen, laundry and public spaces, of course). With such savings, DBS Vice President David Donaldson says payback for the upfront costs of installing the system is just 16 to 22 months.

And the bigger, the better. Inevitably inefficient mega-hotels stand to save the most, the fastest, and avert the greatest environmental impact. For instance, the 616-room Pittsburgh Westin achieved a 10-month payback on its initial $120,000 investment in a key-card management system. Meanwhile, the hotel's annual energy use dropped nearly 10% (2 million kWh) in one year.

This fails to mention the other intangible benefits of a key-card system. For one, guests can no longer lock themselves out of their rooms, a common occurrence that taxes employee productivity.

Hotel managers that have switched to key-card systems report easy use. They operate without constant monitoring, as some energy management systems require, and do not mistakenly turn off the power, like a motion sensitive system.

Slow adoption in the U.S.

Though we have proudly included this idea into the 2009 Innovations Review, EDF admits that key-card energy management technology does not qualify as "innovative" on global basis, as it is already ubiquitous in Europe and Asia.

According to the makers of Entergize, adoption has been slow in the U.S. because hotels are unwilling to place what is perceived as an energy management "burden" on guests. However, those who have installed it, like Thomas Martini, GM of the aforementioned Westin in Pittsburgh, have found that, "the system works quite well, as long as we do the guest education up front."

And the past few years have shown that Americans do care about their environmental impact. We've been able to hang up our towel so it doesn't have to be washed everyday. Don't you think we're ready for the next step?

Wait.

Bringing our key with us when we leave? I thought we already did that.

Last summer, tired of pumping four-dollar gallons from their balance sheets, the corporate world directed much attention and ambition to greening their fleets. But while some companies have taken steps in the right direction, such as by purchasing hybrid or alternative fuel vehicles, they have often overlooked their least expensive and most immediate leverage over fleet fuel efficiency (and company carbon footprint): Employee education.

In other words, influencing how your drivers, well, drive.

Small, easy changes in driving behavior such as slowing down, avoiding idling and "jack rabbit starts" and planning routes in advance can reduce fuel consumption.

But how can an already over-worked fleet manager train a 1,000 or more personnel to drive differently?

Fulfilling that need, several companies are now offering fuel-smart driver training programs:

· GreenDriver is a full-service e-learning and certification program focused solely on driver behavior. A visually appealing, interactive online course – based on industry best practices and fact-based studies – keeps fleet drivers engaged as they learn ways to reduce their CO2 emissions and manage their fuel costs.

· Networkfleet, which provides telematics products, is also working with fleets to monitor driving habitats and encourage drivers to take steps to increase MPG.

· Advanced Driver Training Services (ADTS), which helps fleets reduce crash rates through training and services, is now offering an online "Driving Green" course.

· PHH Arval, a partner of EDF, added a driver-training component to its award-winning PHH GreenFleet program this year.

· Wheels, a comprehensive fleet management services company, offers fuel-smart driving tips to fleet drivers through a variety of existing communications channels.

Novo Nordisk reduces costs, emissions

Pharmaceutical company Novo Nordisk is an early adopter. After undergoing a driver-training program, the company's 2,000+ sales people increased their average fuel economy by a half gallon last year. This change saved more than 80,000 gallons of fuel in just the first six months. That's 1.6 fewer metric tons of CO2 emitted, and at today's prices, savings of roughly $160,000.

Taken to scale, the impact of this type of program could be massive. Consider the status quo: there are more than three million vehicles in U.S. corporate fleets; in 2008, these vehicles emitted an average of 15 tons of CO2. Now, given that at least a 2% fuel avoidance appears achievable, driver training could keep one million tons of CO2 out of the atmosphere and about $60 per vehicle on managers' balance sheets.

Also of social value (and shareholder interest), there is likely a correlation between fuel-smart driving and safe driving. The green driving tips reinforce many key safe driving mantra: don't speed, anticipate stops, speed up gradually, etc. Thus, these programs can reinforce key safety messages that help fleets avoid damage costs and injuries.

This seems like Business Administration 101. But of the 10 million vehicles in the corporate fleet, why does only a small fraction focus on green driver education?

Business strategy for a utility company often centers on the legislative landscape of its regional market. Conventional wisdom says that robust energy efficiency programs only exist in states that are "de-coupled"—that is, state law has separated utility company profits from how much energy is sold (such as in California).

Until now.

Kansas-based Midwest Energy has proved that efficiency can be profitable regardless of locale or legislation. In short, no other utility company in the country has figured out how to make more money by selling less power without government incentives.

Here's how this program, How$martSM, works. After conducting a free energy audit at a home or business, Midwest Energy pays the upfront cost of efficiency upgrades such as insulation, air sealing and new heating and cooling systems.

Once pre-screened contractors complete the work, customers begin to repay the utility through a monthly charge on their energy bill. Though technically a low-interest loan, the terms are structured so that monthly payments are less than monthly energy savings. Customers actually see a net reduction on their bills thanks to increased efficiency.

In another key innovation, the How$martSM investment is tied to each property's meter. Thus if a customer moves, the new occupant takes over repayment—and the lower energy bills—removing the traditional burdens of risk and commitment that often stand in the way of efficiency investments.

Meanwhile, Midwest has shattered another impediment to efficiency upgrades: the thorny landlord-tenant relationship. Instead of tenants footing the monthly energy bill for a poorly insulated apartment, the How$martSM program provides shared benefits: Tenants enjoy a smaller bill while the landlords see immediate improvement to their property.

An Electrifying Business Model

The program appears to be working, albeit on a small scale. So far, about 140 projects (homes, apartments and small businesses) have been completed, and another 275 are on the way. Customers are averaging a 25% reduction in electricity and gas usage per home.

It's also good business strategy. According to Midwest's Director of Regulatory and Energy Services Michael Volker, the company has created a new source of revenue through its financing plan, while cultivating a positive new relationship with its customers.

Furthermore, because these efficiency measures relieve peak-demand pressure, Midwest may avoid having to build an additional power plant down the road.

So our only question is, if How$martSM makes so much sense, why isn't every utility company offering it?

Speaking of money, venture capitalists are opening their minds (and checkbooks) to the opportunities presented by energy efficiency. The New York Times reported last week, “Venture capital is starting to move away from its infatuation with alternative energy… [towards] applying information technology to improve the efficiency of energy consumption.”

Where your computer is concerned, the early birds are already in flight. Companies like 1E, Verdiem and, yes, the U.S. EPA are offering you, me and the world’s biggest institutions easy access to these energy savings. Their PC power management software can conveniently control entire networks, so routine power-downs take less effort – because who’s feeling energetic at the end of the day anyway? Another software feature sidesteps pesky patching problems by enabling remote access to turned-off machines.

According to an independent report commissioned by 1E, powering down PCs at night and during weekends could save $2.8 billion a year in the U.S., about £300 million in the U.K. and about €920million in Germany. Verizon found that installing this type of software on 63,000 of its computers saved the company 7,700 tons of carbon, or in a more plausible metric, about $1.3 million. Supplementing global public access to such technology, the EPA offers two open-source programs: EZ Wizard and EX GPO.

PC power management software is one of 15 green business innovations highlighted in EDF's Innovations Review 2009. These represent some of the most promising practices and technologies for driving efficiency and creating new business opportunities – while protecting the planet.

With the help of the global Just Means community, we will be hosting a dialogue on one innovation per week over the next 15 weeks. We thank you in advance for granting life to these ideas by exploring them here and exporting them to work. Who knows? If your boss is smart, you’ll get a promotion.

It's truly uplifting hearing about the revolutionary things going on out there that together could save the planet and have business opportunity written all over them. Some of the best were the ones that EDF worked hard to unearth in the Innovations Review 2009 that we released at the conference. Some fall into the category of extremely creative with far-reaching impact, such as Patagonia’s Footprint Chronicles that lets consumers track the impact of specific Patagonia products. Patagonia gets why this is important. More companies should get it. It reminds me of something someone said at Fortune Brainstorm: GREEN — Your supply chain is your company.

Some of the environmental innovations in our report fall under the "No Brainer" category in my mind: Things like hotels using a system that links all heating, cooling and power to the keycard that guests insert upon entering their rooms. That simple change can save 25 to 45% of the energy used by hotel rooms, yet few hotels in U.S. have taken advantage of these systems. I again think of the Fortune conference. I overheard a senior executive from Marriott talking to Bill Clinton about the funds they were committing to the rainforest and thought "Great, but what about your hotels?" Right there at the conference I had seen water glasses filled up automatically before people arrived and bluefin tuna served at dinner (a health and overfishing double-whammy). Perhaps the small things they could do right here at the Ritz Carlton (owned by Marriott) would add up to a big environmental impact.

It's clear that companies that "make sustainability part of their DNA" (in the words of Cisco's Laura Ipsen) will reap the benefits. They will survive (Ford was at the conference) and thrive (Wal-Mart was too). They are saving money, reducing risk, gaining customers. It's not always an easy choice. Fisk Johnson, CEO of SC Johnson, talked about changing Saran Wrap from a chlorine-based polymer which cost them customers who didn't like how the change affected the product's feel and performance. Fortune's Marc Gunther half jokingly said, "We only like the positive stories here." But I think that this, no doubt, is a positive story. Products that harm our health and our earth should go away and companies like SC Johnson that have the courage to act on their green principles are most certainly doing the right thing for their business in the long term.

Here at Environmental Defense Fund Corporate Partnerships Program we work with business because we think that it's one of the most effective ways to create big, meaningful environmental change. I'm more hopeful than ever after the Fortune Brainstorm: GREEN conference.

One interesting discussion I followed was the Innovations Review 2009: Green Advances for a New Economy panel hosted by Gwen Ruta and Fortune's Julie Schlosser with guests from Bon Appetit, REI and Verizon (several other companies with innovations featured in the Review were in the room).

Check out my first attempt at "live tweeting" a play-by-play for highlights.    

The CEO of Bon Appetit took the prize for most illustrative quote, "We just aren't flying fish around any more," in reference to the company's sourcing of local food, per its Low Carbon Diet.

Gwen asked the panelists how innovation could spread throughout a sector, the consensus was that the people doing the work know how best to find innovations and save energy, so it's necessary to engage employees at all levels. 

That sounded a lot like the point Gwen made a few months ago in a podcast with Marc Gunther after we announced results from the companies piloting the Green Portfolio Project tools: "The drivers know what’s going on in the fleet and the guys in the production line know what’s going on there. It’s a matter of being able to capture those ideas and systematize them. We see over and over again that that’s what’s behind a lot of this environmental innovation – it’s unleashing the workforce."

Unfortunately, time ran out just as the discussion was heating up, but we hope that the discussion will continue here in the Innovation Exchange.

I'm headed back to DC tomorrow and with the time change probably won't get a chance to do another post from here, but you can follow all the EDF_InnovEx tweets from the conference – including highlights of the breakfast roundtable Gwen Ruta is hosting tomorrow on The New Lean Green here.