PromoHng	  Energy	  Savings	  and	  	  GHG	  MiHgaHon	  through	  	  Industrial	  Supply	  Chain	  IniHaHves	  eceee	  Ind...
Purpose	  and	  IntroducHon	  Supply	  chain	  iniHaHves	  a	  promising	  means	  to	  achieve	  energy	  and	  climate	 ...
Ten	  SCIs	  profiled	  …	  to	  explore	  a	  range	  of	  approaches,	  industrial	  sectors	  targeted	  and	  global	  ...
Key	  Types	  of	  Supply	  Chain	  IniHaHves	  Type	                            DescripHon	                              ...
Examples	  of	  case	  studies	  General	  Electric	  •  “Integrity	  Program”,	  onsite	  audits	  and	  “Treasure	  Hunt...
Impacts	  of	  selected	  examples	  GE	  •  Between	  2009	  and	  2011,	  the	  supplier’s	  carbon	  emissions	  fell	 ...
Some	  Lessons	  learnt	  Procurement	  and	  contractual	  arrangements	  can	  encourage	  suppliers	  more	  fully	  In...
Success	  factors	                           Sharing	  best	  pracHces	  for	  the	  low	  carbon	  future	   |	  	  iipne...
Conclusions	  and	  Discussion	  •  Wide	  diversity	  of	  approaches	  and	  new	  models	  emerging	    •      Many	  a...
Thank	  you	  Industrial	  Supply	  Chain	  IniHaHves	  Database:	  www.iipnetwork.org/databases/supply-­‐chain	  In	  col...
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Promoting Energy Savings and GHG Mitigation through Industrial Supply Chain Initiatives

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Presentation given by IIP for the eceee Industrial Summer Study in Arnhem, Netherlands

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Promoting Energy Savings and GHG Mitigation through Industrial Supply Chain Initiatives

  1. 1. PromoHng  Energy  Savings  and    GHG  MiHgaHon  through    Industrial  Supply  Chain  IniHaHves  eceee  Industrial  Summer  Study  September  14,  2012,  Arnhem  Amélie  Goldberg,  Julia  Reinaud,  Emelia  Holdaway,  Siobhan  O’Keeffe   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  2. 2. Purpose  and  IntroducHon  Supply  chain  iniHaHves  a  promising  means  to  achieve  energy  and  climate  goals  among  a  number  of  disparate  businesses  and  across  naHonal  borders    Benefits  for  buyers  •  Can  extend  exisHng  CSR/sustainability  efforts  if  they  are  able  to  exert  significant  leverage   with  their  industrial  suppliers  •  Many  are  sHll  not  exploiHng  opportuniHes  fully      Benefits  for  suppliers  •  Energy  savings,  producHvity  improvements,  co-­‐benefits  •  Secure  long-­‐term  contracts  with  buyers  and  aUract  new  buyers.   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  3. 3. Ten  SCIs  profiled  …  to  explore  a  range  of  approaches,  industrial  sectors  targeted  and  global  reach  1.  Walmart  2.  Ford  3.  Prorail  4.  Suzhou  Energy  Efficiency  Star  scheme  5.  IKEA    6.  SKF  7.  BriHsh  Gypsum  8.  General  Electric  9.  BASF  10. Home  Depot  and  Intertek’s  Think  Green  IniHaHve   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org   iipnetwork.org/databases/supply-­‐chain  
  4. 4. Key  Types  of  Supply  Chain  IniHaHves  Type   DescripHon   ExisHng  Examples  Mandatory   The  buyer  requires  the  supplier  to  comply  with  set  criteria.     Ford,  SKF  performance  requirements  Purchasing  approaches   Buyer  develops  procurement  policies  whereby  suppliers  score  higher  or   ProRail  CO2  Performance   lower  or  are  advantaged  or  disadvantaged  in  the  procurement  process   Ladder  Repor;ng  and   Suppliers  must  report  their  emissions  or  energy  use  to  their  buyers.   BASF  monitoring  Subsidised  audits   On-­‐site  audits  (full  or  parHally  funded  by  the  buyer)  to  determine  a  suppliers   Walmart,  IKEA   GHG/energy  performance.  Capacity  building  and   Training,  workshops,  implementaHon  support  and  other  measures  to   General  Electric,  Walmart  implementa;on   improve  suppliers’  ability  to  implement  energy  efficiency  projects  and  support   improve  their  performance.    Supplier  forums  or   Conferences,  meeHngs,  webinars  or  online  forums  where  buyers  can   Walmart,  Intertek  (Home  coali;on   communicate  prioriHes,  and  suppliers  can  ask  quesHons,  receive  feedback   Depot)   and  share  best  pracHce  amongst  themselves.    Labeling   Labeling  of  energy  performance  as  an  informaHonal  tool  for  buyers.     Suzhou  EE  Star  Program  External  facilita;on   Plaiorms  that  help  connect  or  match  GHG/energy  performance  of  suppliers   Intertek  (Home  Depot)  tools   with  buyers  interests  or  criteria.   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  5. 5. Examples  of  case  studies  General  Electric  •  “Integrity  Program”,  onsite  audits  and  “Treasure  Hunts”  •  Local  training  programs  and  supplier  summits  in  partnership  w  ISC,  WBSCD,  Guandong  Academy  IKEA  •  IWAY  code  of  conduct  for  suppliers  with  regular  on-­‐site  audits  •  WWF  collaboraHon  on  a  ‘Developing  Climate  PosiHve  OpportuniHes  for  Suppliers’  The  Home  Depot  •  Works  through  Intertek’s  TGI  –  on-­‐site  assessments,  idenHficaHon  and  implementaHon  of  EE   measures  SKF  •  Supplier  cerHficaHon  of  ISO  14001  (and  recently  ISO  50001  announced)  •  Energy  Challenge  and  Energy  Excellence  awards   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  6. 6. Impacts  of  selected  examples  GE  •  Between  2009  and  2011,  the  supplier’s  carbon  emissions  fell  by  19%,  through  energy   saving  measures  and  facility  upgrades  following  its  audiHng  and  capacity  building   programme.    IKEA    •  Under  the  IKEA-­‐WWF  partnership,  supplier  reduced  GHG  emissions  by  35%  between  2009   and  2010  through  furnace  upgrades  and  fuel  switching.  •  Another  texHle  supplier  in  Bangladesh  idenHfied  and  implemented  a  number  of  efficiency   measures  in  2011  that  reduced  energy  consumpHon  by  29%  and  cut  CO2  emissions  by   25%.  Intertek  (Home  Depot)  •  TGI  program  cost  US$43,500  (paid  by  the  suppliers),  and  achieved  overall  cost  savings  of   over  $US3  million.   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org   iipnetwork.org/databases/supply-­‐chain  
  7. 7. Some  Lessons  learnt  Procurement  and  contractual  arrangements  can  encourage  suppliers  more  fully  InternaHonally  recognised  tools  Partnership,  fostering  trust  and  implementaHon  support  MulH-­‐stakeholder  collaboraHon  including  third  party  involvement  QA,  transparency  and  verificaHon  –  external  plaiorms   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  8. 8. Success  factors   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  9. 9. Conclusions  and  Discussion  •  Wide  diversity  of  approaches  and  new  models  emerging   •  Many  are  in  early  stages  and  “learning  by  doing”  •  Varied  transparency  &  verificaHon  approaches  •  EnMS  (e.g.  ISO  50001)  and  other  internaHonally  recognised  tools  are   emerging  as  promising  tools   •  Ouen  accompanied  by  MRV  support  to  substanHate  claims  •  How  to  promote  ISO  50001  as  a  supply  chain  tool?    •  What  role  for  governments?  (e.g.  Japan,  Netherlands)   •  Extending  obligaHons  for  large  companies  to  take  acHons  across  the  supply  chain   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
  10. 10. Thank  you  Industrial  Supply  Chain  IniHaHves  Database:  www.iipnetwork.org/databases/supply-­‐chain  In  collaboraHon  with  Ecofys  UK.  Amelie  Goldberg    Amelie.goldberg@iipnetwork.org  Julia  Reinaud    julia.reinaud@iipnetwork.org    Emelia  Holdaway  (previously  with  Ecofys  UK)  Siobhan  O’Keeffe  (previously  with  Ecofys  UK)   Sharing  best  pracHces  for  the  low  carbon  future   |    iipnetwork.org  
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