ISO55000 Conference Bali 2013 : Energy management for business sustainability

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ENERGY CONSUMPTION & UTILIZATION TRENDS

ENERGY MANAGEMENT

WHAT IS ISO50001 STANDARD?

ISO55001 vs. ISO50001?

THE WAY FORWARD

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ISO55000 Conference Bali 2013 : Energy management for business sustainability

  1. 1. ISO55000 AND THE FUTURE OF ASSET MANAGEMENT Asia Pacific Regional Conference & Exhibition ENERGY MANAGEMENT : SUSTAINABLE IMPLEMENTATION FOR BUSINESS SUSTAINABILITY Zaini Abdul Wahab Sdn Bhd,Malaysia 12-14 November 2013 Bali, Indonesia
  2. 2. OUTLINE  ENERGY CONSUMPTION & UTILIZATION TRENDS  ENERGY MANAGEMENT  WHAT IS ISO50001 STANDARD?  ISO55001 vs. ISO50001?  THE WAY FORWARD
  3. 3. ENERGY DEMAND & UTILIZATION TRENDS
  4. 4. GLOBAL ENERGY DEMAND Source: IEA Energy Outlook 2011     Increases by 1/3 from 2010 to 2035, with China & India accounting for 50% of the growth Global energy consumption is expected to increase by a factor of 3 over the 21st century. The growth in primary energy consumption is expected to decrease in the future due to assumed levelling of population growth & improved energy efficiency Urbanization – Urban areas now house 50% of the world’s population, use 2/3 of global energy, and produce 70% of global carbon emissions
  5. 5. GREEN HOUSE GASES EMISSIONS Source: IPCC (2007) Delivering energy requires a long-term commitment to investments & technologies More than 50% of GHGs are from fossil fuel combustion Urbanization – Urban areas now house 50% of the world’s population, use 2/3 of global energy & produce 70% of global carbon emissions
  6. 6. ENERGY MANAGEMENT
  7. 7. COMMON TERMINOLOGIES ENERGY EFFICIENCY Delivers more services for the same energy input, or the same services for less energy input;or Ratio of an output of performance, service,goods or energy & an input of energy ENERGY MANAGEMENT All activities to ensure efficient use of energy in the organization ENERGY PERFORMANCE Measurable results related to energy efficiency, energy use & energy consumption ENERGY MANAGEMENT SYSTEM(EnMS) Set of interacting/interacting elements to establish an energy policy, objectives, processes &procedures to achieve those objectives
  8. 8. WHY MANAGE ENERGY IN ASSETS? ENERGY USING SERVICES ASSETS SALES/LEASE & ENERGY COST SAVINGS INCREASE USERS’ COMFORT ENERGY TO OPERATE BOOST IMAGE & VALUES
  9. 9. ASSET RESPONSIBILITY PERIOD Energy Supply & Utilization
  10. 10. WHERE WE WASTE?
  11. 11. WHERE TO SAVE?...BUILDING FACILITIES SAVING POTENTIALS  Pumps (25% - 35%)  Chiller (20% - 25%)  AHU/FCU (25% - 35%)  Cooling Tower(15% - 20%  Lighting System (40-60%)
  12. 12. WHERE TO SAVE?...MANUFACTURING FACILITIES (Source: Energy Conservation Centre of Japan, 2011)
  13. 13. WHY ENERGY MANAGEMENT? Profitability Sustainability Competiveness Competency Working environment quality Corporate Image Operating Costs - Energy Risks – price fluctuation & supply shortages Pollution Carbon emission Depletion of fossil fuel  LOWER ENERGY BILLS  IMPROVED AIR QUALITY  REDUCED GREENHOUSE GASES  INCREASED ENERGY SECURITY  DEFERRED NEEDS TO INVEST IN NEW INFRASTRUCTURE
  14. 14. ENERGY MANAGEMENT PROCESS Fact Findings Planning & Target Setting Managing Energy Performance for sustainable energy management implementation
  15. 15. BASIC EnMS COMPONENTS & CYCLE MANAGEMENT COMMITMENT MANAGEMENT REVIEW POLICY SYSTEM & PERFORMANCE CHECKING PLANNING IMPLEMENTATION & OPERATION
  16. 16. KEY STEPS TO IMPLEMENT EnMS 1. DECLARE POLICY 2. ESTABLISH INTERNAL ORGANIZATION 7. Set Target & Values 8. Plan Saving Measures 9. Implement Measures Daily Management Cycle 4. CREATE PROCEDURE/ STANDARDS 10. Verify results & Evaluation 5. MANAGE ENERGY PERFORMANCE INDICATOR 11. Standardize & synchronize result with procedures 12. Review& Set Higher Targets Improvement Cycle 3. UNDERSTAND CURRENT ENERGY USE 6. Identify Problems
  17. 17. CHECKING ENERGY PERFORMANCE MEASUREMENT & MONITORING Baseline(s) Energy Performance Indicator(s)
  18. 18. SUCCESSFUL STORIES COUNTRY JAPAN 40 % reduction in primary energy consumption/GDP (1973-2004)-ECCJ,METI,Japan ORGANIZATION EASTMAN CHEMICAL COMPANY Energy use intensity reductions of 27%t, 26% & 9% for the respective buildings and averaged at 21 % reduction- -2013 Environmental Leader IRELAND 160 companies - 60% of Ireland’s industrial energy use 2% improvement in energy performance per year Long-term members - have improved energy performance by 33% (1995 and 2010) Energy Management Standard helps up to €150m in avoided energy costs (2005-10) THAILAND Targeting 25 % reduction in Energy Index (2005-2030)-DEDE,Thailand TREASURY BUILDING, MINISTRY OF FINANCE OF MALAYSIA 17% reduction of electricity bill in 2011 based on 2010 baseline consumption – SEDA Malaysia IDAHO NATIONAL LIBRARY,USA Petroleum fuel use reduced cumulative 20.3% from the FY 2005 baseline -2013 Environmental Leader
  19. 19. WHAT IS ISO50001 STANDARD?
  20. 20. SCOPES Standardization in the field of energy management: energy supply, procurement practices for energy using equipment and systems, energy use, and any use-related disposal issues. Measurement of current energy usage & implementation of a measurement system to document, report & validate continual improvement in energy management.
  21. 21. HOW ISO 50001 WILL HELP?  To provide organizations with technical & management strategies to increase energy efficiency, reduce costs, and improve environmental performance.  To provide a recognized framework for integrating energy efficiency into management practices.  Multinational organizations - access to a single, harmonized standard for implementation across the organization with a logical and consistent methodology for identifying and implementing improvements.
  22. 22. VALUES TO ORGANIZATIONS  Aligns energy management with organizational priorities  Ensures long-term sustainability of the EnMS  Encourages employee buy-in and participation  Provides visible demonstration of environmental leadership to external parties  Helps to achieve and sustain desired results 22
  23. 23. ISO55001 vs. ISO50001?
  24. 24. STANDARDS FOR ASSET MANAGEMENT  ISO 55001  The requirements specification for an integrated, effective management system for assets- defines requirements for a management system  IS0 55002 provides  Guidance for the implementation the system  ISO50001:2011  Energy Management Systems Requirements With Guidance For Use Energy performance improvement for energy using services  ISO 55000  An overview of the subject of asset management and the standard terms & definitions to be used
  25. 25. INTEGRATION: ISO50001 & ISO55001 Integration of some of the key requirements in both standards P-D-C-A cycle concept
  26. 26. ISO50001 vs. ISO55001 ISO50001 Management Responsibility Top management Management Representative Energy Policy Structure, authority & responsibility Asset management policy ENERGY PLANNING PLAN ISO55001 ASSET MANAGEMENT STRATEGY, OBJECTIVES & PLAN General Legal requirements &other requirements Energy Review Analyse energy use and consumption Identify Significant Energy Use(SEU) Identify, prioritize & record energy performance improvement opportunities Energy baseline Energy performance indicator(EnPI) Energy objectives, energy targets & action plan Asset management objectives Asset management plan(s)
  27. 27. ISO50001 vs. ISO55001..c’tnd IMPLEMENTATION AND OPERATION DO Competence, training and awareness Communication Documentation ASSET MANAGEMENT ENABLERS & CONTROLS training, awareness & competence Communication, participation & consultation Asset management system documentation Operational control Design Life cycle activities. Tools, facilities & equipment Procurement of energy services, products, equipment & energy CHECKING CHECK Monitoring, measurement &analysis PERFORMANCE ASSESSMENT & IMPROVEMENT Performance & condition monitoring Evaluation of compliance with legal requirements & other Evaluation of compliance requirements Internal audit of the EnMS Audit Nonconformities, correction, corrective action & preventive action Improvement action Control of records Records ACT MANAGEMENT REVIEW General Input to management review Output from management review IMPLEMENTATION OF ASSET MANAGEMENT PLAN(S) MANAGEMENT REVIEW Investigation of asset related failures, incidents & non conformities
  28. 28. HOW TO SELL? 1. Connect proposal with current organizational priorities 2. Convince key players/ influencers 6. Present feasible funding options ENERGY MANAGEMENT PROGRAM 5. Confirm major costs and benefits to the business 3.Confirm & interact with decision makers 4. Identify risks & prepare management strategies
  29. 29. KEY SELLING POINTS COMPANY  NO RISK strategy to boost profits  REDUCE business costs – intensive energy using assets  RISING & UNCERTAIN energy costs  INCREASE competitiveness  STAY ING in business from cash flow savings  INCREASING mandatory compliance & requirements by legislations & markets  Best available techniques, carbon tax ,Emissions Trading  Energy Using Products & Services DIRECTIVES COUNTRY  SECURITY of energy supply & price  Imperative for the NATIONAL ECONOMY especially for countries with heavily subsidized energy prices  REDUCE dependence on imported fuels  Adverse ENVIRONMENTAL IMPACTS of fossil fuel use
  30. 30. THE WAY FORWARD
  31. 31. THE CORPORATE TRENDS… Survey on 250 CFOs in 14 countries by Deloitte - CFOs are increasingly aware the benefits sustainability can bring to the business. 2/3 respondents said they are involved in driving sustainability strategies .More than 50 % said their involvement in pushing sustainable practices has increased in the past year. UN Global Compact of 766 CEOs worldwide-93 % of CEOs said sustainability issues will be a critical factor to the future success of their business 2012 Ernst & Young Survey – 66% of executives saw an increased amount of sustainability-related inquiries from investors in the past year .70% inquiries focused on energy management and greenhouse gas emissions and more than ½ questions about sustainability reporting University of Missouri researchers - consumers would be more willing to pay between 15 & 20% more for retail products from companies that support sustainable practices Building owners can see reduced operating costs, increased building values, greater return on investment, and higher occupancy from new and retrofitted green buildings Companies may receive reputational benefits from achieving green building certifications . A 2011 survey of U.S. adults- 64% would prefer to patronize a business whose facility is certified as green, while 48% indicated that green certification of a facility improves their image of a company. UNEP - GEO-5 for Business Impacts of a Changing Environment on the Corporate Sector
  32. 32. More than 50% of executives consider sustainability—the management of environmental, social, and governance issues—“very” or “extremely” important in a wide range of areas, including newproduct development, reputation building, and overall corporate strategy. -McKinsey Global Survey Result, March 2010
  33. 33. TOWARDS ENERGY EFFICIENT SCENARIO : NEW POLICY  Economically viable efficiency measures can halve energy demand growth to 2035
  34. 34. GLOBAL ENERGY EFFICIENCY POTENTIALS  Energy efficiency potential used by sector in the New Policies Scenario  2/3 of the economic potential to improve energy efficiency remains untapped in the period to 2035
  35. 35. SEA: INVESTMENT POTENTIALS (US$MIL.) Biggest potentials in the industrial sector The total market size = US$6.7 billion; Industrial = US$2.9 billion(44%) Commercial = US$3.7 billion(56%) source: www.reexasia.com
  36. 36. ENERGY MANAGEMENT IMPACTS FOR BUSINESS SUSTAINABILITY INTRODUCTION & AWARENESS IMPLEMENTATION & SUPPORT MEASURES PERFORMANCE MONITORING& MEASUREMENT IMPROVED •Energy Performance •Competitiveness/ •profits •Environmental quality REDUCED •Energy consumption & costs •Pollution •CO2 emissions CREATED •Business & job opportunities •More experts/workers from energy efficiency industry •New source of economic growth & DDIs
  37. 37. THANK YOU! zaini@cnsgroup.com.my +6019 2152700 www.cnsgroup.com.my

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