Transcript Bill-Bailey-DuPont1 - Virginia Chamber of Commerce

DuPont’s Bold Energy Plan:
How a Drive for Sustainability…
Drives Improved Energy Efficiency
Bill Bailey, Engineering Fellow
DuPont
Charlotte, NC
The Governor’s Conference on Energy
Greater Richmond Convention Center
October 17, 2013
About DuPont
 Founded in Wilmington, DE in 1803 by Frenchman E. I. DuPont
□ When you’ve been in business for 210 years, you’ve been “sustainable”
 Originally produced one product: black powder
□ Societal benefit: explosives for construction, protection and defense
 Diversified into chemicals in the early 1900’s
□ Societal benefit: “Better things for better living…through chemistry”
 Added bio-based materials, seeds and food products in last 20 years
□ Societal benefit: feed the world and introduce renewable materials like Sorona ®
 Ranked 72nd in 2012 Fortune 500
□ $35 billion in sales, $3 billion in net income, $50 billion market cap
 Operates over 200 plants and 80 R&D facilities in 70 countries
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What Does “Sustainability” Mean?
 Wikipedia
□ “The capacity to endure; the potential for long-term maintenance of well being”
 United States Environmental Protection Agency
□ “Creating and maintaining the conditions under which humans and nature can
exist in productive harmony… for present and future generations”
 DuPont
□ “Increasing shareholder and societal value while decreasing the footprint of our
operations along the value chains in which we operate”
 Other ways to say it…
□ “Growing (profits and societal benefit) while shrinking (footprint)”
□ “Being green while making green”
Virginia Governor’s Conference on Energy | October 17, 2013
Internal Use Only
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DuPont and Sustainability: Some Key Words
 Increasing shareholder and societal value while decreasing the
footprint of our operations along the value chains in which we operate
 “Shareholder and societal value”
□ We have a responsibility to our stockholders
□ But we also have a responsibility to society, in communities and the world at large
□ What we produce and how we produce it matters to society
 “Footprint of our operations”
□ The “mark” which our operations leave on the planet and its inhabitants
□ Injuries, illnesses, waste, emissions, depletable raw materials and energy
 “The value chains in which we operate”
□ We cannot control footprints outside of our value chain!
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Internal Use Only
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Sustainability Starts with Our Core Values
 Everything we do at DuPont is based on our “core values”
□ Safety and Health
□ Environmental Stewardship
□ Highest Ethical Behavior
□ Respect for People
 These are the unyielding principles by which we live and work
 These values naturally lead us to focus on sustainability
 Our corporate purpose statement explicitly mentions sustainability:
□ DuPont is a science company. We work collaboratively to find sustainable,
innovative, market-driven solutions to solve some of the world’s biggest
challenges, making lives better, safer, and healthier for people everywhere.
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How DuPont Drives Sustainability
 Social Responsibility: “Sustainable conduct”
□ Community and education outreach (today’s presentation!)
□ Compliance with all laws and regulations everywhere we operate
 Business Integration: “Sustainability as a business”
□ Sustainability megatrends (food, energy, safety and protection)
□ 2015 market-facing goals (how our products improve the world’s sustainability)
□ Selling expertise to others to help them become more sustainable
 Environmental Stewardship: “Shrinking our own footprint”
□ Footprint Goals (first announced in 1999!)
□ Product Stewardship (“cradle to grave”)
□ The Bold Energy Plan: A strategy to meet our 2020 Energy Goal
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Driving Sustainability in Energy Use
 DuPont is a large energy consumer and greenhouse gas emitter
□ In 2012, we consumed ~150 trillion Btu’s globally (0.2% of total US energy use)
□ And emitted 9 million metric tons of CO2 associated with energy use (0.1% of US)
 DuPont also spends a lot of money on energy: ~$1 billion/year!
 For the sake of sustainability, we must improve our energy efficiency
□ Environmental sustainability and business sustainability!
 This is a difficult challenge for many reasons…
□ Energy efficiency is not a product quality variable
□ Energy use is broadly dispersed at a typical plant (hundreds of users)
□ Energy inefficiencies are frequently invisible
□ Expertise and resources to identify and make improvements are limited
 Could we overcome these challenges? If so, how?
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The Bold Energy Plan
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We were making good progress in improving energy use until 2007
Steep energy price increases prompted CEO to call for a strategic plan
The idea: accelerate our rate of improvement in energy efficiency
The result: a strategic plan to standardize the way our plants think
about and drive continuous improvement in energy use
 We call it… the “Bold Energy Plan” (BEP)
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Key Elements of the Bold Energy Plan
 Senior Leadership oversight…with financial objectives
□ $230 Million in energy cost savings over five years
 Dedicated leadership for site efficiency programs
□ Site Energy Champions at over 140 DuPont sites
 Local plant improvement objectives
□ Puts “energy” on the plant manager’s report card
 Tracking of progress versus annual targets
□ Corporate scorecard helps make improvement visible
 Provision of capital for improvement
□ “Put your money where your mouth is”
 Networking among peers
□ Rapidly replicate successful projects to many other plants
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Summary of the 5-Year BEP Journey
Target
Actual
From 2008-2012, the BEP set targets to reduce year-over-year spending by 23%.
The 122 participating plants actually delivered year-over-year savings of 26%.
The total savings of $229MM is 5.2% of the $4.4 Billion spent from 2008-2012.
We met our goal to reduce energy costs 5%, year-over-year, and save ~$230MM.
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Bold Energy Plan Results (2008 – 2012)
 Documented year-over-year savings of $230 million since 2008
 Reduced energy use by 19% versus what it otherwise would have been
 Received a Responsible Care® “Exceptional Merit” award from the
American Chemistry Council
 Helped DuPont achieve its 2010 “Hold Energy Flat” goal
 Created a sustainable process for continuous improvement in energy!
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2012 Achievements
DuPont was named to the
2012 North America Dow
Jones Sustainability Index
(DJSI), one of the most
respected socially
responsible investment
indices on the market.
DuPont was named to the
Carbon Disclosure Project
(CDP) Global 500
Leadership Index, which
ranks the top 51 companies
from the FTSE Global Equity
Index Series (Global 500) for
sustainability.
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External Recognition
“DuPont's achievements in energy efficiency represent true
leadership, and demonstrate what business can accomplish when
it brings the interests of its shareholders, the environment and its
neighbors together in setting business goals. We applaud
DuPont’s long-term dedication to sustainable business practices
and in addressing challenges posed by climate change.”
Jonathan Lash
Former President and Current Board Member
World Resources Institute
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Key Learnings
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Sustainability is “everyone’s job” when it’s a Core Value
Having measurable, public goals puts “teeth” in your commitment
There is no substitute for senior leadership support!
It really helps when you can “show them the money”!
When you achieve one goal, you must set a new one!
□ 2010: Accomplished “Hold Energy Flat” goal
□ 2011: Announced 2020 Energy Goal
 Sustainability is a journey, not a destination
□ 1970’s: Emphasis on environmental compliance
□ 1990’s: Emphasis on footprint reduction goals
□ 2010’s: Emphasis on sustainability as a megatrend, driving strategy and R&D
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Copyright © 2012 DuPont or its affiliates. All rights reserved. The DuPont Oval Logo, DuPont™, The
miracles of science™ and all products denoted with ™ or ® are registered trademarks or trademarks of
E. I. du Pont de Nemours and Company or its affiliates.
Images reproduced by E. I. du Pont de Nemours and Company under license from the National
Geographic Society.
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