This document outlines a presentation on sustainability, innovation, and diversification. It discusses an energy efficiency study and audit conducted for Futuris Automotive, an automotive supplier, identifying opportunities to reduce energy consumption by 32%. Key findings included inefficient HVAC and lighting usage. The presentation emphasizes that sustainability initiatives should align with business strategy and provide economic benefits in order to create competitive advantages. It encourages companies to focus on quick wins and be creative in finding opportunities for innovation.

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