Steven Schultz of 3M presented on the company's energy management program and partnerships. 3M has reduced its energy use by more than 40% since 2000 through continuous improvement efforts. It partners with organizations like EPA ENERGY STAR and DOE to share best practices and leverage programs. 3M was an early participant in the Save Energy Now LEADERS program to receive technical assistance and recognition for its energy reduction goals and customized energy management plan.

1. Partnerships: Engaging American
Manufacturers
Steven Schultz
Corporate Energy Manager
3M
Presented at the Alliance to Save Energy
Efficient Enterprises Briefing
September 22, 2010
Washington, D.C.

2. Six Market-Leading Businesses
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3. Leading Through
Innovation
© 3M 2009. All Rights Reserved.

4. Enhancing
safety and
security
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5. Making
life
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better around the home

6. Improving the
quality of
health care
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7. Always
value
for business
adding
© 3M 2009. All Rights Reserved.

8. Net Sales (billions)
Solid Top-Line Growth
$ 30.0
25.0
$25.3
$24.5
$22.9 $23.1
20.0 $21.2
15.0
10.0
5.0
0.0
2005 2006 2007 2008 2009
© 3M 2010. All Rights Reserved.

9. Solving Problems Everywhere
 Operate companies in more than 65 countries
 35 international companies with manufacturing operations,
35 with laboratories
 In the United States, operations in 28 states
 R&D and related expenditures total $6.861 billion for
the last five years
 More than 75,000 employees worldwide
 We provide ‘borderless customer success’
© 3M 2010. All Rights Reserved.

10. 3M Energy Management
Making Energy Efficiency
A Competitive Advantage
9/24/2010© 3M 2010. All Rights Reserved.

11. 3M Energy Management
 3M began its Energy Management Program in 1973
 37 years of continuous improvement
 3M U.S. operations used only 4% more energy in 2009
than in 1973 while U.S. net sales increased nearly 3x.
 Worldwide, 3M’s operations have reduced their energy
use by more than 40% since 2000 (based on total Btu's
used per dollar of net sales).
 Our total energy use in 2009 was 22% less than in 2000
 Greenhouse gas emissions have been reduced
significantly.
© 3M 2010. All Rights Reserved.

12. Scope and Structure
 Energy use and costs tracked at over 200 locations
world-wide
 Energy teams at each of 56 larger locations
 Management supports teams through annual plans
 Corporate Energy Management provides resources
including quarterly progress reports
 Guidelines for energy teams  Access to experts
 Best Practice sharing  Assessments
 Monthly web conferences  Awards and Recognition

13. Corporate Energy Goals
2005 - 2010 Future (being finalized)
Target: Reduce energy usage by 20% based Target: 25% improvement in energy
on Btu’s per unit of product utilization
Scope: All divisions/countries Rationale: Consistent with U.S. Department
of Energy Save Energy Now LEADERS
Process: pledge and ENERGY STAR™ Challenge
• Top-down consistent company-wide target
• Businesses develop prioritized plans for
projects & spend and measured by results Process:
• Facilities report data quarterly • Top-down consistent company-wide target
Objectives
1. Encourage businesses to think in terms of energy strategically
2. Encourage facilities to continue to drive site-specific reductions

14. Partnerships
 Provide resources
 Knowledge, tools, financial incentives
 Provide motivation and excitement
 Partnership with:
 Local energy providers
 Local and regional non-governmental organizations
 State and local governments
 EPA ENERGY STAR and U.S. Department of Energy
© 3M 2010. All Rights Reserved.

15. 3M Involvement
• EPA ‘Green Lights’ Program
– Surveyed and upgraded lighting at over 35 million square feet of
space
– Savings of $4.2 million per year achieved
• ENERGY STAR for Industry
– Utilized ENERGY STAR Guidelines for Energy Management
– Benchmarked and networked with numerous companies and
organizations
– Utilize ENERGY STAR communications materials to leverage
3M program
– Participating in ENERGY STAR Challenge
• Product Labeling
15

16. ENERGY STAR®: Guidelines for
Energy Management
– Management
System for Energy
– 3M is using this
approach
recommended by
ENERGY STAR

18. How to Communicate
18

19. 2010
Sixth Consecutive Year !

20. 3M and DOE Involvement:
• DOE Motor Challenge Program
– Showcase Demonstration Project
– Midwest Motor Consortium
• Other ‘Challenge / Best Practice’ programs
• ‘Save Energy Now’ Assessments
• Superior Energy Performance Initiative
– Energy Management Standard
• Save Energy Now LEADERS
20

21. • Member of Steering Committee developing the program
• 3M the very first company to join
• Workshop/Signing Event In Detroit On September 10
• Washington D.C. Ceremony December 3
21

22. Save Energy Now LEADER = Customized Services
Receive:
 DOE Representative
Take the Pledge  Individual Technical Account Manager
 No-cost expert Technical Assistance
 Recognition as a LEADER
DOE Representative contacts
the Energy Manager Work with a DOE Energy Expert
Develop customized plan: Provide technical assistance with:
 Guide to how to get the most out of the  Developing a useful energy baseline and
Save Energy Now portfolio tracking method
 Access to DOE Contractor Assistance – Tailored to the plant’s operations
 Track reporting requirements and product output
 Arrange for delivery of services – Satisfies the reporting requirements
− Energy assessments  Writing an energy management plan
− Consultation with Energy Expert  Developing engineering feasibility studies
to help implement projects
22

23. Partnerships
 Provide resources
 Knowledge, tools, financial incentives
 Provide motivation and excitement
 Limitations
 Financial accounting rules
• Operating lease vs. capital lease
 Understanding industrial processes
 Daily priorities
© 3M 2010. All Rights Reserved.

24. Energy Results
Btu’s per $ of Net Sales
Actual
Target
Energy use per $ of net sales was
decreased 22% through 2Q 2010.
The goal for 2010 vs 2005 is to
decrease by 20%.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2005 2006 2007 2008 2009 2010