Partnerships: Engaging American Manufacturers

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Steven Schultz
Corporate Energy Manager
3M

Presented at the Alliance to Save Energy
Efficient Enterprises Briefing
September 22, 2010
Washington, D.C.

Published in: Technology
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Partnerships: Engaging American Manufacturers

  1. 1. Partnerships: Engaging American Manufacturers Steven Schultz Corporate Energy Manager 3M Presented at the Alliance to Save Energy Efficient Enterprises Briefing September 22, 2010 Washington, D.C.
  2. 2. Six Market-Leading Businesses © 3M 2010. All Rights Reserved.
  3. 3. Leading Through Innovation © 3M 2009. All Rights Reserved.
  4. 4. Enhancing safety and security © 3M 2009. All Rights Reserved.
  5. 5. Making life © 3M 2009. All Rights Reserved. better around the home
  6. 6. Improving the quality of health care © 3M 2009. All Rights Reserved.
  7. 7. Always value for business adding © 3M 2009. All Rights Reserved.
  8. 8. Net Sales (billions) Solid Top-Line Growth $ 30.0 25.0 $25.3 $24.5 $22.9 $23.1 20.0 $21.2 15.0 10.0 5.0 0.0 2005 2006 2007 2008 2009 © 3M 2010. All Rights Reserved.
  9. 9. Solving Problems Everywhere  Operate companies in more than 65 countries  35 international companies with manufacturing operations, 35 with laboratories  In the United States, operations in 28 states  R&D and related expenditures total $6.861 billion for the last five years  More than 75,000 employees worldwide  We provide ‘borderless customer success’ © 3M 2010. All Rights Reserved.
  10. 10. 3M Energy Management Making Energy Efficiency A Competitive Advantage 9/24/2010© 3M 2010. All Rights Reserved.
  11. 11. 3M Energy Management  3M began its Energy Management Program in 1973  37 years of continuous improvement  3M U.S. operations used only 4% more energy in 2009 than in 1973 while U.S. net sales increased nearly 3x.  Worldwide, 3M’s operations have reduced their energy use by more than 40% since 2000 (based on total Btu's used per dollar of net sales).  Our total energy use in 2009 was 22% less than in 2000  Greenhouse gas emissions have been reduced significantly. © 3M 2010. All Rights Reserved.
  12. 12. Scope and Structure  Energy use and costs tracked at over 200 locations world-wide  Energy teams at each of 56 larger locations  Management supports teams through annual plans  Corporate Energy Management provides resources including quarterly progress reports  Guidelines for energy teams  Access to experts  Best Practice sharing  Assessments  Monthly web conferences  Awards and Recognition
  13. 13. Corporate Energy Goals 2005 - 2010 Future (being finalized) Target: Reduce energy usage by 20% based Target: 25% improvement in energy on Btu’s per unit of product utilization Scope: All divisions/countries Rationale: Consistent with U.S. Department of Energy Save Energy Now LEADERS Process: pledge and ENERGY STAR™ Challenge • Top-down consistent company-wide target • Businesses develop prioritized plans for projects & spend and measured by results Process: • Facilities report data quarterly • Top-down consistent company-wide target Objectives 1. Encourage businesses to think in terms of energy strategically 2. Encourage facilities to continue to drive site-specific reductions
  14. 14. Partnerships  Provide resources  Knowledge, tools, financial incentives  Provide motivation and excitement  Partnership with:  Local energy providers  Local and regional non-governmental organizations  State and local governments  EPA ENERGY STAR and U.S. Department of Energy © 3M 2010. All Rights Reserved.
  15. 15. 3M Involvement • EPA ‘Green Lights’ Program – Surveyed and upgraded lighting at over 35 million square feet of space – Savings of $4.2 million per year achieved • ENERGY STAR for Industry – Utilized ENERGY STAR Guidelines for Energy Management – Benchmarked and networked with numerous companies and organizations – Utilize ENERGY STAR communications materials to leverage 3M program – Participating in ENERGY STAR Challenge • Product Labeling 15
  16. 16. ENERGY STAR®: Guidelines for Energy Management – Management System for Energy – 3M is using this approach recommended by ENERGY STAR
  17. 17. How to Communicate 18
  18. 18. 2010 Sixth Consecutive Year !
  19. 19. 3M and DOE Involvement: • DOE Motor Challenge Program – Showcase Demonstration Project – Midwest Motor Consortium • Other ‘Challenge / Best Practice’ programs • ‘Save Energy Now’ Assessments • Superior Energy Performance Initiative – Energy Management Standard • Save Energy Now LEADERS 20
  20. 20. • Member of Steering Committee developing the program • 3M the very first company to join • Workshop/Signing Event In Detroit On September 10 • Washington D.C. Ceremony December 3 21
  21. 21. Save Energy Now LEADER = Customized Services Receive:  DOE Representative Take the Pledge  Individual Technical Account Manager  No-cost expert Technical Assistance  Recognition as a LEADER DOE Representative contacts the Energy Manager Work with a DOE Energy Expert Develop customized plan: Provide technical assistance with:  Guide to how to get the most out of the  Developing a useful energy baseline and Save Energy Now portfolio tracking method  Access to DOE Contractor Assistance – Tailored to the plant’s operations  Track reporting requirements and product output  Arrange for delivery of services – Satisfies the reporting requirements − Energy assessments  Writing an energy management plan − Consultation with Energy Expert  Developing engineering feasibility studies to help implement projects 22
  22. 22. Partnerships  Provide resources  Knowledge, tools, financial incentives  Provide motivation and excitement  Limitations  Financial accounting rules • Operating lease vs. capital lease  Understanding industrial processes  Daily priorities © 3M 2010. All Rights Reserved.
  23. 23. Energy Results Btu’s per $ of Net Sales Actual Target Energy use per $ of net sales was decreased 22% through 2Q 2010. The goal for 2010 vs 2005 is to decrease by 20%. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 2008 2009 2010

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