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Centralizing energy efforts
The document outlines Covidien's centralized energy efficiency program, which aims to reduce the company's carbon footprint and energy intensity by 20% over 10 years. The program follows 8 steps: commitment, benchmarking, performance tracking, capital investment, forecasting, education, recognition, and communication. It establishes energy management teams, sets guidelines and standards, tracks and reports performance, funds capital projects, and provides resources, education, and awards to promote energy efficiency across Covidien sites. All program information and site data is maintained on a central Energy Center of Excellence website for transparency and knowledge sharing.
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Centralizing energy efforts
- 1. Centralized Energy Efficiency Efforts CovidienEnergy Program Industrial Energy Efficiency Forum July 17-18, 2013
- 2. 2 | Covidien EnergyProgram • 8 steps for program excellence • Commitment • Benchmarking • Performance • Capital Investment • Forecasting • Education • Recognition • Communication • Energy Center of Excellence (COE) • Open-access corporate website developed to support energy program
- 3. 3 | Energy Program- Commitment Program Scope • Establish program to reduce carbon footprint and energy intensity by 20% over 10 year period • FY08 was set as baseline for energy tracking • Covidien Energy Policy signed and enacted by CEO • Establish an Energy Management Team (Purpose) • To establish a Global Carbon Footprint and Energy Demand baseline • Track energy usage, cost, and demand reduction projects – report progress to Senior Management • Prioritize and validate energy projects applied to Covidien energy capital fund • Review and approve 3rd party energy consultants – used for site assessments and energy project implementations • Initiate site energy assessments – prioritize and support • Identify, develop, and implement major energy projects – renewables, alternative sources, and other alternatives • Establish energy efficiency guidelines, standards, and specifications
- 4. 4 | • EnergyTeams • Establish an Energy Center of Excellence (COE) • Team members across all functional levels • VP of Global Operations (Program Champion) • Corporate Energy Council • Corporate EHS (includes EHS VP) • Cross-functional team • Global Sourcing • Sector/GBU Energy Stewards/Managers • Site Coordinators (reporting to Plant Managers) • One site coordinator per plant/site • Engineering/Facilities Managers Energy Program - Commitment
- 5. 5 | • Guidelinesand Standards • Establish central repository of documents for site coordinators, as well as other Covidien employees, to resource best practices • Guidelines and Standards developed by subject matter experts and catalogued to Energy COE corporate website • Steam Traps • HVAC Roof-top units • Chillers • Compressed Air • Air Circulation • Boilers • Motors and Variable-Frequency Drives • Centrifugal pumping systems • Lighting • Etc. Energy Program - Commitment
- 6. 6 | • Benchmarking •Partnered with multiple large corporations to compare and contrast programs • Both medical and non-medical • Participated in Energy Star Pharmaceutical Focus Group • Excellent opportunity to develop new methods and review your own program Energy Program - Benchmarking
- 7. 7 | • Performanceand Performance Reporting • Release annual report both internally and externally • Performance evaluated for: • Corporation • Sectors • Business Units • Plants • Through FY12, Covidien has reduced (over normalized baseline): • Energy usage by 11.6% • Energy spend by 12.5% • Energy COE website maintains performance reports for reference Energy Program - Performance
- 8. 8 | • Capitalproject development • Corporate capital allocation exclusively for energy projects • Extended ROI terms for energy-related projects (50% over standard cost-savings projects) • Developed split capital projects to allow for partial energy funding • Allows sectors and plants to access “additional” dollars outside of standard budget • An assortment of completed energy capital projects requests are maintained on Energy COE website for reference • How-To documents are developed and maintained for reference • Energy Assessments • Developed relationships with key vendor partners to perform energy assessments • Allows for open-book relationship to develop and implement energy- related projects Energy Program – Capital Investment
- 9. 9 | • Capitaland Performance Forecasting • Update energy reduction expectations multiple times annually • Projects developed during energy assessments • Projects developed by site coordinators • Assists in resource targeting • Allows each site to track own performance and set goals • Each site coordinator is responsible for updating Energy COE website with project information • Capital • OpEx • Non-capital • Listing of project histories allow for sites to investigate what others are doing within the corporation Energy Program – Capital and Performance Forecasting
- 10. 10 | • BestPractices • Catalogue of best practices on Energy COE website • Presentations • White Papers • Resource links • Webcasts • Provide resources for education intended for all Covidien sites • External Education • Provides links for external energy resources • Energy Star • DOE • DSIRE • Technical information • Resources and Tools • Industry resources • Awareness campaigns • Workbooks Energy Program – Education
- 11. 11 | • EnergyExcellence Awards • Annual awards for corporate recognition • Overall excellence • Innovation • Best project • Greatest improvement • External Recognition • Energy Star Partner • Shares details of corporate commitment to Energy Star program Energy Program – Recognition
- 12. 12 | • Communication •Listing of all Energy COE issued communications issued • Energy COE releases communications routinely on Covidien corporate site • Allows for new Covidien employees to get a feel for the program and feel involved earlier Energy Program – Communication
- 13. 13 | Covidien EnergyProgram • 8 steps for program excellence • Commitment • Benchmarking • Performance • Capital Investment • Forecasting • Education • Recognition • Communication • All information is maintained in central location • World-wide sites can access necessary information as needed • Each site can review own performance as well as similar sites • Find contacts at other sites for energy project discussion • Transparency of site performances increases accountability