This document provides information on energy management and the adoption of ISO 50001. It discusses the benefits of ISO 50001 certification such as expected ROI ranges of 6.5-17% within 1-2 years. Over 4000 organizations have adopted ISO 50001 globally including many large multinational companies. Case studies show energy cost savings and implementation costs with ROIs typically under 2 years. Feedback from certified facilities indicates that energy management is incorporated into regular business operations through a cross-functional team approach and mindset shifts. Overall the document promotes ISO 50001 and energy management system best practices.
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ISO 50001 Energy Management, SEP Executive Briefing - UL DQS Inc.
1. Energy Management
Driving Operational & Financial Performance
Don Macdonald
Sustainability & Energy Program
Director
Don.macdonald@us.dqs-ul.com
http://www.linkedin.com/pub/don-macdonald-leed-ap-r
2. 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
3. Multi-Nationals Adopting ISO 50001 - > 4000 to Date
•• 3M
Commercial Superior
3M
Energy Performance Pilots: •• Coca-Cola
Coca-Cola
•• Alcoa
Alcoa
•Cleveland Clinic
•• Allsteel --HON
Allsteel HON
•• Amcor PET
Amcor PET
•US GSA
•• Bentley Prince Street
Bentley Prince Street
•• Cook Composites
•Grubb & Ellis Company
Cook Composites
•• Sikorsky
Sikorsky
•Marriott International, Inc. •• OLAM Spices
OLAM Spices
•• MedImmune
MedImmune
•MIT Campus’s
•• Cummins
Cummins
•• Ingersoll Rand
Ingersoll Rand
•Target Corporation
•Wal-mart Stores, Inc.
ISO 50001
ISO 50001
•• CNH / /Fiat
CNH Fiat
•• Schneider
Schneider
•• Siemens
Siemens
•• ABB
ABB
•• Didion Milling, Inc
Didion Milling, Inc
•• Kenworth Trucks
Kenworth Trucks
•• Dow Chemical
Dow Chemical
•• Eaton
Eaton
•• General Dynamics
General Dynamics
•• Neenah Foundry
Neenah Foundry
Company
Company
•• Free scale Semi
Free scale Semi
•• Haynes International
Haynes International
•• Owens Corning
Owens Corning
•• Holcim
Holcim
•• Lockheed Martin
Lockheed Martin
•• Cooper Tire
Cooper Tire
•• Republic Conduit
Republic Conduit
•• Bridgestone Tire
Bridgestone Tire
•• Nissan
Nissan
•• Schneider Electric
Schneider Electric
•• Spirax Sarco
Spirax Sarco
•• Traco
Traco
•• Volvo
Volvo
•• World Kitchen
World Kitchen
•• Harbec
Harbec
•• United States Mint
United States Mint
10. 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
11. Executive Leadership is critical to ‘Mind the Gap’
Facility managers typical energy champions
12. 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…
13. State of the Art –
Inconsistent use of Management Processes
• Training for employees: 76%
•
•
•
•
•
•
•
•
•
40
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%
s
t
z
i
n
a
g
O
f
o
r
e
b
m
u
N
15
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
14. Management Systems Strategy –
Technical and Behavioral
Focus EnMS on plants,
Focus EnMS on plants,
buildings and operations
buildings and operations
above target.
above target.
••DriveProcess Improvement
Drive Process Improvement
••DriveROI/IRR
Drive ROI/IRR
••DriveIntegrated CSR
Drive Integrated CSR
••Linkageto GHG
Linkage to GHG
16. 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
17. Step 3 – Energy Use
Step Three:
Identify Key Energy Uses
• Facilities
• Systems
• Equipment
• Processes
• Relevant Variables
• Personnel (including on-site Contractors)
18. Step 4 - Baseline
Step Four:
Establish a Baseline
•
Reference point for energy performance
•
Outlines current energy performance
•
Predicts future energy performance
•
Provides benchmarking method
19. 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
21. 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
22. 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
34. Shareholder Perspectives
EnMS – Accounting for Value
•
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”
•
Investment Fixed Capital
– Energy process modifications often
lead to end-of-the-pipe pollution
control facilities
•
Tax Rate
– Availability of grants, utility program
credits, insurance ratings
•
Sales Growth
– Life cycle energy reductions
embedded in product manufacturing
– Competitive advantage, less energy
and related raw material processing
•
•
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
35. Results – Costs of Implementation
In most cases ROI < 2 Yrs.
Source: DOE
37. 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.
45. 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
48. Pfizer Ireland – ISO 50001
Reduced energy
and resource
intensity,
decrease CO2
emissions.
Used ENERIT ISO
50001 IT Platform
to facilitate
certification.
49. 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.
49
• 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.
50. Volvo
•
Absolute energy use and
intensity - 38%, 2001 to
2010
•
As part of U.S.-DOE’s
Save Energy Now,
accomplished 10-year
goal of 25%
improvement in energy
intensity in 2010 (29.6%)
•
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.
53. UL DQS –
Integrity, Competence and Trust in Management Systems
2800 Staff / 2300 global Auditors, 76 offices in 55 countries
Over 20,000 customers, 100 countries
Notes de l'éditeur
Here is a well known illustration on the typical cycle of poor decision making (in the absence of continuous improvement processes) and the resulting costs over time.
Firms of different sizes and complexities often focus continuous energy management efforts within selected divisions or processes all the way across similar operations over multiple geographies in benchmarking style efforts.
We are seeing up take of multiple facilities (some cases 10-50 in scale) use such benchmarking to drive process improvement, costs and even product design issues depending on the industry.
The key point, with continuous management processes these efforts simply return to the mean.
These are some examples of financial drivers we see firms asking for specific dollar / Euro assignments being made much, similar to financial reports style.
We for example recently awarded a very large transportation agency an ISO 14001 certificate and they demonstrated a significant ROI on the investment, documenting direct and in-direct costs.
We are now looking to support them in rolling these very energy improvement processes into the platform (no pun intended) to further drive improvements.