ISO 50001 Energy Management Business Strategy
 

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Energy Mannagement Systems, ISO 50001 and Superior Energy Performance (SEP) Program business drivers, ROI and key strategy decision points presented by UL DQS\'s Director of Sustainability Don ...

Energy Mannagement Systems, ISO 50001 and Superior Energy Performance (SEP) Program business drivers, ROI and key strategy decision points presented by UL DQS\'s Director of Sustainability Don Macdonald.

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ISO 50001 Energy Management Business Strategy Presentation Transcript

  • 1. ISO 50001 Energy ManagementContinuous Improvement Driving Financial Results Don Macdonald Director of Sustainability & Energy Services Jerry Skaggs Product Manager UL DQS, Inc. 1
  • 2. Executives Seek Certainty “Specific operational strategy must be the key part of the Energy Policy and M & V Strategy…done properly, will lead to a positive ROI on the overall Benchmarking, Certification or Non-Certification process” 2Source: McKinsey
  • 3. Executives Seek Certainty 3Source: McKinsey
  • 4. ExecutivesSeekCertainty 4Source: McKinsey
  • 5. Benchmark your EnMS Maturity 5
  • 6. Who are the Decision Makers 6
  • 7. Organizational Barriers to Energy Management• Energy not valued as an • Sustainability “culture” organizational ‘currency’ immature• Continuous monitoring, • Deep Process quality metrics and performance measurement absent management systems not embedded• Economic performance, financial and qualitative • Stakeholders focus on benefits (ROI) absent production and not efficient use of energy or resources• First costs more important than recurring costs • Functional silo’s vs. cultural silo’s• Disconnect between capital and operating budgets • IT data, monitoring and systems• Technical training lacking 7
  • 8. Energy is the Strategic GHG & Climate Driver‘Uncertainty in carbonmarkets, environmentalregulations, concernedinvestors, climate changepolicy pose risks thatcannot be managed usingexisting norms andprocedures’ 8
  • 9. Harnessing the Power of Process Business processes for competitive advantage: • Six Sigma • ISO 9001 • Lean Manufacturing • ISO 14001 • Continuous • Plan-do-check-act Improvement40% Formal energy management standards (ANSI, BSI):35%30%25%20%15%10%5%0% Energy Continuous ISO 9001 or Six Sigma Lean Management Improvement 140001 Standard JCI, 2011 9
  • 10. Comprehensive Energy Management- RARE • Training for employees: 76%JCI Study - 83 Organizations • Formal review of energy policy: 47%surveyed… • Incentives for energy efficiency success: 45% • Effective & empowered energy team: 41% 40 • Enterprise level energy data: 29% 35 • Corporate reduction goal: 28% • Energy action plan for organization: 28% 30Number of Organizations • Formal energy policy: 27% 25 • C-level responsibility: 27% 20 • Adopted energy standard: 27% 15 10 Result: 5 Mixed Practices 0 0-2 3-4 5-6 7-8 9-10 Energy Management Score JCI 2011 10
  • 11. Energy Investments & Operations•Impact is multi-dimensional, each organization unique.•Facility, engineering project specification and procurement staff critical links•Foundational tools (metrics, baseline and verification) are critical. Source: UNIDO 2010 11
  • 12. Quality Systems & Shareholder Value LinkageDrive Return on Investment (ROI) across manufacturing &operating silos: • Process level execution critical to performance • Continuously managed energy processes: • Reduce exposure to energy costs (Internal hedging and volatility management) • Reduce carbon related emissions without negative effect on operations • Continual improvement of energy intensity • Value both avoidance & savings for internal and external metrics (e.g. emissions, utility credits, reduced labor intensity, CAPEX, etc.) 12
  • 13. Energy Benchmarking“ ISO 50001 provides a proven model that helps organizations systematically plan, benchmark and manage energy use.” ISO/PC 242 Chair, E. Pinero. 13
  • 14. Market Adoption IndicatorsISO 9001ROI benchmarks 9-13% • MNC’s mandated or implied Tier 1 & 2 adoption • Competitive advantage & supply chain drivers added further incentives • Operational benefits realized but marginally Quality documented Mgmt • No real performance metrics Environ MgmtISO 14001ROI Benchmarks 7-12% Information Energy • Similar drivers as ISO 9001, plus Security • Environmental responsibility Mgmt • Evolving into CSR & CSV • No real performance metrics Risk Procurement MgmtISO 50001 • Published ROI Data Suggests 6.5-17% range expected within 1-2 yrs • Performance metrics (self-defined) incorporated • Web-based & continuous performance tools • Measured benchmarking • Compatible with ISO 9001, 14001, & SEP 14
  • 15. U.S. Pilot Facilities Adopting ISO 50001 & SEPCommercial buildings • 3M • Didion Milling, Inc • Kenworth Truckspiloting Superior EnergyPerformance: • Alcoa • Dow Chemical • Neenah Foundry Company•Cleveland Clinic • Allsteel • Eaton • Nissan • Amcor PET • General Dynamics•US GSA • Owens Corning • Bentley Prince Street • Free scale Semi • Nissan•Grubb & Ellis Company • Bridgestone Tire • Haynes International • Schneider Electric•Marriott International, Inc. • Cook Composites • Holcim • Spirax Sarco•MIT Campus’s • JR Simplot • Traco • Lockheed Martin•Target Corporation • Volvo • Cooper Tire•Wal-mart Stores, Inc. • World Kitchen 15 June 2011
  • 16. SEP & ISO 50001 Energy ManagementBenefits of an effectively implemented EnMS can include:Reduced operational and overhead costs → increased profitability• Reduced air emissions, such as GHG Superior Energy• Increased efficiency of energy sources Performance• Increased assurance of legal, internal compliance Facility-level conformance to• Variables affecting energy use and consumption are ISO 50001 with validated identified energy performance ISO 50001 improvement ISO 50001 is a Components in place: foundational tool that • Baseline ISO 50001 any organization can • Policy use to manage • Plan energy. • Team/Leader DOE, 2011 16
  • 17. ISO 50001 Key Elements• Energy policy• Cross-divisional management team• Energy review• Baseline (s)• Energy performance indicators (EnPIs)• Energy objectives and targets• Action plans• Operating controls and procedures• Measurement and verification• Reporting of progress 17
  • 18. Step 1 – Commitment Step 2 - Data Step One: Secure Commitment from Top Management • Set Energy Policy • Define Scope and Boundaries Step Two: Collect, Track, and Analyze Energy Data • Current and past energy use, consumption • Estimate future energy use, consumption 18
  • 19. Step 3 – Energy Use Step Three: Identify Key Energy Uses • Facilities • Systems • Equipment • Processes • Personnel • Relevant Variables 19
  • 20. Step 4 - BaselineStep Four:Establish a Baseline• Reference point for energy performance• Outlines current energy performance• Predicts future energy performance• Provides benchmarking method 20
  • 21. Step 5 - Opportunities Step 6 - PrioritizeStep Five: Step Six:Identify Energy-Saving Prioritize Opportunities Opportunities • Return on Investment• New Sources • Ease of Implementation• Renewable Sources• Alternative Sources 21
  • 22. Implementation and Operation • Competency, • Operational Control Training and Awareness • Design • Communication • Procurement • Documentation, Control of Documents 22
  • 23. Checking and Management Review • Monitoring, Measurement and Analysis • Evaluation of Compliance • Internal Audit • Non-Conformance, Correction, Corrective and Preventive Action • Control of Records • Management Review 23
  • 24. EnMS and Other Standards ISO 9001:2008 • Capital asset planning•Design • Production Process Planning • Carbon & GHG•Procurement • Waste reduction • Supply chain marketability ISO 14001:2004 • New product/service• Legal, Other requirements opportunities • Employee engagement• Significant Energy Use • Retail: market differentiation• Objectives, Targets, Action Plans• Evaluation of Compliance 24
  • 25. RecentCase Studies & Results 25
  • 26. Example Results – AU Optronics, Taiwan• LCD TV’s – Taiwan, Province of China ISO 50001 implementation achieved 10 % energy conservation at the plant this year, save an estimated 55 million kWh of electricity and reduce carbon emissions by 35,000 tons.• The company now plans to adopt an ISO 50001- based energy management system at all its manufacturing plants. 26
  • 27. Example Results – Dahanu Power Station, IndiaThe plant conducted a series of targetedinvestments since March 2010 which, aided by theorganization’s new ISO 50001-based energymanagement system, are expected to yield annualsavings of about INR 96.4 million ($1.9M USD)from raised energy efficiency and management. 27
  • 28. Example Results – Schneider Electric USISO 50001 & SEP Program demonstrate exceptionalsavings at its flagship manufacturing plant in USA.Example: $27,000 USD savings annually from VSDinstallation, lighting, heat recovery.Plus a new 1MW solar field and additional savings fromother projects yet to be announced estimated greaterthan 10%. Payback range avg. 18 months.90% of worldwide facilities are ISO 140001 certified. 28
  • 29. Example Results – Delta Electronics, ChinaWith the implementation of the ISO 50001 energymanagement system in the Dongguan region, andproduction capacity at an even level from January toMay of this year, we have already reduced powerconsumption by 10.51 million KWH as compared tothe same period in 2010.This is equivalent to a reduction of 10.2 thousandtons of carbon emissions and a saving of CNY 8million ($1.6M USD) 29
  • 30. Example Results – Municipality of Bad Eisenkappel, AustriaDuring the first year, consumption of electricalenergy decrease by nearly 25 % with the mainsavings achieved by updating the waste waterplant and reducing energy consumption by 86,000 kWh equivalent to just over $21,400 USD. 30
  • 31. Example Results – Cook Composites & Polymers, USCCP’s Houston plant attained SEP Gold CertifiedPartner status and achieved a 14.9%improvement in energy efficiency over a two-yearperiod.The energy efficiency measures taken by CCPresulted in 31,700 million British thermal units ofenergy saved and allowed the company tocapture $250,000 in cost savings per year. 31
  • 32. UL DQS Inc. ISO 50001 ToolsUL DQS offers: Practitioner’s Guide & Self Assessment Tool Practitioner’s Guide Scorecard Tool Energy.Interest@us.dqs-ul.com 800.285.4476 x3328 www.ul-dqsusa.com 32