Sustainability, innovation and diversification – finding a competitive advantage Nathan Pearce-Boltec – Parsons Brinckerhoff – Climate Change & Resource Efficiency David Chuter – Futuris – Executive, Strategy & Communications 30th August 2011
Agenda• Introductions• Climate change & resource efficiency• Project background• Data analysis• Areas of focus• Key findings• Benefits delivered• Why does all this matter?• Finding competitive advantage• Final thoughts
Introductions• Parsons Brinckerhoff • Futuris Automotive – global consulting firm – Australia’s largest automotive • assists public and private supplier clients • design & manufacture of • plan, develop, design, seating and interiors construct, operate and • cleantech manufacturing maintain critical infrastructure solutions – integrated energy, water & – 1,350 employees waste infrastructure solutions • 500+ in Victoria
Climate Change & Resource Efficiency• Energy – Efficiency studies & audits – Alternative energy supply options • Integrated energy, • Renewables, waste to energy, cogeneration/trigeneration water & waste• Water infrastructure solutions – Efficiency studies & audits – Green infrastructure – GHG emissions estimation – Wastewater treatment/re-use – Trade-waste studies• Climate change strategy – Carbon price impacts to business• Geotechnical – Impacts of sea level rise on coastal areas
Project background• Energy efficiency study and level 3 energy audit – Level 3 (AS/NZS 3598:2000): a ‘firm’ assessment of energy use – Capital cost and savings estimates within 10% accuracy (Level 2 within 20%) – Scope: to assess beyond the ‘low-hanging fruit’
Data analysis• Energy breakdown• Compressed air demand analysis• Data logging
Areas of focus• Efficiency study covered production & administration – Total energy use – Heating, Ventilation & Air Conditioning (HVAC) – Production processes & plant • Compressed air • Chilled water • Conveyer systems • Welding bays – Utilities • Hot water units • Natural gas supply – Lighting
Key findings• HVAC operating on weekends• Space heater control upgrade• Administration lighting operating on weekends• Conveyer system operates during lunch time • Easy to implement • Simple solutions that are often over looked • Minimal disruption to process
Benefits delivered– Identified energy saving opportunities for further 32% reduction in annual energy consumption – at least 25 tangible, feasible initiatives – fully costed with capital expense, payback and ROI– Some surprises… • heating, ventilation and air-conditioning (HVAC) and lighting were identified as major areas of energy use – despite significant recent initiatives– Significant hands on experience gained by Futuris team • enable similar programs at other sites and suppliers– Understanding of the clear need for relevant targets • measure and track energy consumption, eg GJ/tonne – requiring smart meter installations
Why does energy, waste and water matter? – Manufacturing • energy and water to convert and value add • waste as output – Globalisation • must be locally and globally competitive – Industry ‘hot topic’ • carbon dioxide pricing – Greenhouse gases • offsets, compliance, etc – Rising costs – Expectation of corporate responsibility – Can it become a competitive advantage? – How can we accelerate improvements throughout industry?
Sustainability, innovation and diversification needs to – align with business strategy innovation – make economic sense – satisfy shareholders – motivate and engage people competitive advantage strategic approach – where do you cast thesustainability diversification biggest shadow? – where to focus resources?
Sustainability– some considerations– Strategy for sustainability • start somewhere! • be honest about your intentions • be selective to get quick wins • involve the people who care • investigate support sources– Be creative - innovation can lead to opportunity innovation– Needs to provide a value proposition • cost benefit to customer & to the business competitive– Waste, water and energy affect productivity advantage sustainability diversification– Find your competitive advantage!
A final thought…“impact on society if you You can never have an have not changed yourself… ” Nelson Mandela