This document outlines a presentation on sustainability, innovation, and diversification given by representatives from Parsons Brinckerhoff and Futuris. [1] It discusses an energy efficiency study and audit conducted at a Futuris automotive manufacturing plant that identified opportunities to reduce energy consumption by 32% through initiatives like HVAC optimization and lighting upgrades. [2] The presentation emphasizes that sustainability efforts can provide competitive advantages if they align with business strategy and make economic sense. [3] Finding areas where small changes can have outsized impacts is key to accelerating improvements across industries.

1. 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

2. 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

3. 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

4. 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

5. Project background

6. 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’

7. Data analysis
• Energy breakdown
• Compressed air demand analysis
• Data logging

8. 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

9. 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

10. 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

11. 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?

12. 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 the
sustainability diversification biggest shadow?
– where to focus resources?

13. Sustainability examples
innovation
competitive
advantage
sustainability diversification

14. 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!

15. A final thought…
“impact on society if you
You can never have an
have not changed
yourself…
”
Nelson Mandela