Transcript ISO 50001 Energy Management Executive Breakfest

Energy Management
Driving Operational & Financial Performance
Don Macdonald
Sustainability & Energy Program
Director
[email protected]
http://www.linkedin.com/pub/don-macdonaldleed-ap-rabqsa/0/595/715/
Market Adoption Indicators
2014 certifications
ISO 9001
ROI benchmarks 9-13%
ISO 14001
ROI Benchmarks 7-12%
CSR
ISO 50001
• Published ROI Data Suggests 6.5-17%
range expected within 1-2 yrs.
• Performance metrics (self-defined)
incorporated
• Web-based & continuous performance
tools
• Measured benchmarking
• Integrated with ISO 9001, 14001, & SEP,
CSR
Environ & GHG
Mgmt
Energy
Mgmt
LEED
Quality
Risk
Mgmt
Multi-Nationals Adopting ISO 50001 - > 4000 to Date
Commercial Superior
Energy Performance
Pilots:
•Cleveland Clinic
•US GSA
•Grubb & Ellis Company
•Marriott International, Inc.
•MIT Campus’s
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3M
Coca-Cola
Alcoa
Allsteel - HON
Amcor PET
Bentley Prince Street
Cook Composites
Sikorsky
OLAM Spices
MedImmune
Cummins
Ingersoll Rand
•Target Corporation
•Wal-mart Stores, Inc.
ISO 50001
• CNH / Fiat
• Schneider
• Siemens
• ABB
• Didion Milling, Inc
• Kenworth Trucks
• Dow Chemical
• Eaton
• Neenah Foundry
Company
• General Dynamics
• Nissan
• Free scale Semi
• Owens Corning
• Haynes International
• Holcim
• Lockheed Martin
• Cooper Tire
• Republic Conduit
• Bridgestone Tire
• Schneider Electric
• Spirax Sarco
• Traco
• Volvo
• World Kitchen
• Harbec
• United States Mint
Benchmark EnMS Maturity
Updated
2011, 7%
Energy
Energy efficiency Benchmarking Maturity
EDF, 2013
Financial Criteria Benchmarking Maturity
EDF, 2013
Re Deployment of Operating Cost Savings
EDF, 2013
Energy Investments & Operations
Why Energy Audits Aren’t Enough
Source: UNIDO 2010
Source: UNIDO
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Source: DOE
Organizations That Measure ROI/IRR
of CSR 2009 - 2011
• Proportion of clients
reporting Program ROI / IRR
increasing
• Internal resource constraints
continue, functional silo’s
• Breadth of adoption
increasing
Executive Leadership is critical to ‘Mind the Gap’
Facility managers typical energy champions
45%
40%
Act as Champion
35%
30%
25%
Implement Formal
Policy
20%
Set Targets/Goals
15%
10%
5%
0%
Communicate
Energy Activities
Harnessing the Power of a Process
Business processes for competitive advantage:
• Six Sigma
• Lean Manufacturing
• Continuous
Improvement
40%
• ISO 9001
• ISO 14001
• Plan-do-check-act
Formal energy management standards (ANSI, BSI):
35%
30%
25%
20%
15%
10%
5%
0%
Energy
Management
Standard
Continuous
Improvement
ISO 9001 or
140001
Six Sigma
Lean
JCI Study - 83 Organizations surveyed…
State of the Art –
Inconsistent use of Management Processes
• Training for employees: 76%
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40
Number of Organizations
35
30
25
20
Formal review of energy policy - CSR: 47%
Incentives for energy efficiency success: 45%
Effective & empowered energy team: 41%
Enterprise level energy data: 29%
Corporate reduction goal: 28%
Energy action plan for organization: 28%
Formal energy policy: 27%
C-level responsibility: 27%
Adopted energy standard: 27%
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10
5
0
0-2
3-4
5-6
7-8
9-10
Energy Management Score
JCI Study - 83 Organizations surveyed…
Result:
Lower ROI,
Mixed Results
Management Systems Strategy –
Technical and Behavioral
Focus EnMS on plants,
buildings and operations
above target.
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Drive Process
Improvement
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Drive ROI/IRR
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Drive Integrated CSR
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Linkage to GHG
Energy Management System
Best Practices
Step 1 – Commitment
Step 2 - Data
Step One:
Secure Commitment from Top Management
• Set Energy Policy
• Define Scope and Boundaries
Step Two:
Collect, Track, and Analyze Energy Data
• Current and past energy use, consumption
• Estimate future energy use, consumption
Step 3 – Energy Use
Step Three:
Identify Key Energy Uses
• Facilities
• Systems
• Equipment
• Processes
• Relevant Variables
• Personnel (including on-site Contractors)
Step 4 - Baseline
Step Four:
Establish a Baseline
• Reference point for energy performance
• Outlines current energy performance
• Predicts future energy performance
• Provides benchmarking method
Step 5 - Opportunities
Step 6 - Prioritize
Step Five:
Identify Energy-Saving Opportunities
• New Sources
• Renewable Sources
• Alternative Sources
Step Six:
Prioritize Opportunities
• Return on Investment
• Ease of Implementation
Implementation and Operation
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Competency, Training & Awareness
Communication
Documentation, Control of Documents
Operational Control
Design
Procurement
Checking and Management Review
 Monitoring,
Measurement and
Analysis
 Non-Conformance,
Correction, Corrective and
Preventive Action
 Evaluation of
Compliance
 Control of Records
 Internal Audit
 Management Review
EnMS and Other Standards
Common Elements with other ISO Systems:
ISO 9001:2008
ISO 14001:2004
• Design
• Legal / Other requirements
• Procurement
• Significant Energy Use
• Management
Responsibility
• Objectives, Targets, Action
Plans
• Evaluation of Compliance
Building a Best in Class
Energy Management System
Identify
SEU’s
Energy
Drivers
Energy
Baseline
• What are my energy uses
• What are my significant energy uses
• Relevant variables affecting energy use
• How to control relevant variables
• What type and Use of energy
• What should/can I meter
• Production & external variables
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Building a Best in Class
Energy Management System
EnPI’s
Benchmark
M&V
Objective
and Targets
• What performance indicators to use to monitor
each SEU
• What is my benchmark
• What is the best practice
• What do colleagues do at other sites.
• Based on benchmarking, what are my targets
for the next period
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EnMS & SEP Best Practice Mapping
Organizational level
Barriers
Best Practices
Lack of organizational
motivation
Lack of accountability
Poor energy
assessment
GHG Goals
Centralized Energy
management
Benchmarking
EnMS & SEP Best Practice Mapping
Capital level
Barriers
Best Practices
Lack of Capital
Financial risk criteria
threshold too low
Variable Funding Budget
Investment Tracking
NPV calculations
Revolving funding
EnMS & SEP Best Practice Mapping
Data level
Barriers
Best Practices
Energy Data
EnMS Data QA / QC
Energy Data Quantity
Data reporting required
Data matched to
production or Building
Sub-Metering
EnMS & SEP Best Practice Mapping
Communication/PR level
Barriers
Best Practices
Lack of organizational
motivation
Lack of accountability
Poor energy
assessment
GHG Goals
Centralized energy
management
Benchmarking
The Superior Energy
Performance (SEP) Program
ISO 50001 /SEP
Demonstration sites US
Source: DOE
DOE SEP Pilot
Results
Source: DOE
Results – Energy Cost Savings
Source: DOE
Shareholder Perspectives
EnMS – Accounting for Value
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Profit Margin
– Procurement - energy hedging
– Product design can embody energy
considerations
– Supply chain costs - energy, raw
material & transportation
– Extend QMS and EMS systems
whether certified or “Self Declared”
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Investment Fixed Capital
– Energy process modifications often
lead to end-of-the-pipe pollution
control facilities
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Tax Rate
– Availability of grants, utility program
credits, insurance ratings
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Sales Growth
– Life cycle energy reductions
embedded in product manufacturing
– Competitive advantage, less energy
and related raw material processing
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Investment Working Capital
– Reduced excess energy and
materials, waste prevention,
recycling, raw material substitution
Cost of Capital
– Improve loan characteristics
– Energy risk management attracts
shareholders which leads to lower
cost of debt and equity
– Non-disclosure of energy efficiency,
like environmental performance may
have short-term impacts that lead to
premium capital costs
Results – Costs of Implementation
In most cases ROI < 2 Yrs.
Source: DOE
Case Studies, Results &
Feedback from the Field
Feedback from Facilities
Staff Support
• A cross-functional energy
management team is needed for
effective implementation.
– e.g., plant energy leader, plant
leader, quality leaders, engineers.
• All types of employees can contribute
to energy management
– Line and production workers add
separate sets of expertise
Influence of Energy Management
• Managing energy has similar
structure as managing cash, safety,
health, environment and quality.
• Energy management becomes a
way of doing business, instead of
making improvements on projectby-project basis.
• Energy management becomes a
shared responsibility across
operations, maintenance, finance.
Costs
• Capital investment is not always
required to achieve cost savings.
• Change of mindset: lower price per
unit of energy is not the only way to
reduce energy costs
Other
• R&D should consider use of energy
to produce a product.
• Achievements can bring recognition
across the organization.
AU Optronics, Taiwan
10 % energy conservation at the
plant this year.
Estimated 55 million kWh of
electricity and reduce carbon
emissions by 35,000 tons.
St. Mary’s Cement
Savings of
nearly $3
million in
energy costs
during the
past 3 years.
100
separate
energy
efficiency
initiatives.
Reduced
electrical
consumption
by 9.5
million
kilowatthours, over
$2 million
since 2006.
Expects
over 1
million
dollars in
savings in
one year
alone.
Save Energy Now – Best Practice Alternative
Data Center Assessment Summary Verizon
Save Energy Now – Best practice Alternative
Data Center Assessment Summary Lucas film
Briggs & Stratton – Best Practice Alternative
Dahanu Power Station, India
ISO 50001
investments
since March
2010.
Expected yield
in annual
savings $1.9M
USD.
Delta Electronics
Reduced
power
consumption
by 10.51
million KWH
compared to
the same
period in 2010.
Power
consumption
reduced by
37 %, baseline
2009
Schneider Global HQ
÷4
Final energy consumption
vs. previous sites in the area
Certified
ISO14001
HQE Exploitation
NF EN16001
ISO 50001: first certified
building in the world!
80 kwh/m²/ an
Final energy consumption
ROI in 5 to 7 years
Schneider Electric Smyrna, TN
ISO 50001 Certified, SEP Pathway
15.3%
reduction
lighting,
heat
recovery,
and paint
line
1MW solar
field, 10%
Payback
range avg.
18 months.
90% of
worldwide
facilities are
ISO 14001
certified.
Haynes International
Pfizer Ireland – ISO 50001
Reduced energy
and resource
intensity,
decrease CO2
emissions.
Used ENERIT ISO
50001 IT Platform
to facilitate
certification.
CNH / Fiat Certification – Building into CSR
UL DQS Certified first plant
.
• Sustainability
CNH is part of Fiat Industrial –
fully integrating the environment
and society with economic
objectives. 2010 Fiat
Sustainability Report.
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• Certified Management Systems
Commitment to sustainability includes having
our manufacturing activities performed in
responsible facilities that are certified to meet
environmental, quality, safety and now energy
management system standards.
Volvo
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Absolute energy use and
intensity - 38%, 2001 to
2010
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As part of U.S.-DOE’s
Save Energy Now,
accomplished 10-year
goal of 25%
improvement in energy
intensity in 2010 (29.6%)
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Goals 2010 to 2012
reduce idling losses – or
energy use outside of
production – by 50
percent by 15% per unit
produced against a 2008
baseline.
Energy Management within ISO 14001 Programs
Mass Transit Agency Leadership
LA Metro, NY MTA
DOW
UL DQS –
Integrity, Competence and Trust in Management Systems
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2800 Staff / 2300 global Auditors, 76 offices in 55 countries
Over 20,000 customers, 100 countries