1. business and industrial
2. energy
3. renewable energy

June 2012
How to reduce emissions and improve energy efficiency
How to reduce emissions and improve
energy efficiency
With insights from CDP’s Carbon Action initiative and leading corporations
in the carbon reduction field; Siemens, Verco and Philips.
June 2012
Agenda
Today...
15:00 – Introduction & Carbon Action insights
Paul Dickinson, Executive Chairman, CDP
15: 08 – Consultancy viewpoint: Verco, Tim Jeffries, Principal Consultant
15:20 – Industry insight: Siemens AG, Ralf Pfitzner, Head of the
Environmental Portfolio and Sustainability Reporting
15:32 – Industry insight: Royal Philips Electronics, Simon Braaksma,
Philips Corporate Sustainability Office
15:44 – Q&A: all panelists
15.58 – Thank you and close: Paul Dickinson
June 2012
How to reduce emissions and improve energy efficiency
The importance of carbon reduction
“Right now global GDP is at about $62 million with a commensurate
emission of about 30 billion tons. By the time we reach 2030 the projections
are that we will have a global GDP of somewhere between $120 trillion and
$200 trillion, but by that time science demands that we will be at 20 billion
tons. So that means every ton of carbon from now until then has to grow at
least 5 times in its economic activity, and it has to be much better distributed.
So that is serious decoupling that we are facing between now and the year
2030.” Christiana Figueres, Executive Secretary, UNFCCC, CDP Global
Forum 2011.
CDP Carbon Action
What is Carbon Action?
Carbon Action is about accelerating companies’ mitigation efforts in order to
reduce the major long-term threat to the global economy which climate change
represents.
In 2012 tailored letters were sent to high emitting sectors and sectors with
significant supply chains from the FTSE All-World 800 and the Global 500
Companies are asked to make:
• Year on year reductions in emissions;
• Investments in emission reduction activities with a satisfactory positive ROI;
• Targets that cover the principal sources of emissions in their business.
“We believe that the external costs of greenhouse gas emissions will become
internalised into company cash flows and profitability. We encourage companies to
consider what action that they can take now to reduce emissions.”
Steve Waygood, Head of Sustainability, Research & Engagement, Aviva
Investors
The opportunities
CDP Carbon Action 2011
The business case
p. 7
Carbon Desktop and
Industrial Energy
Management
Presenter’s name: Tim Jeffries
Presented to:
Date:
Carbon Disclosure Project
27/06/2012
Sustainable energy and carbon advisory services
www.vercoglobal.com
Introduction to Verco
•
•
•
•
•
•
•
•
•
•
23 year track record in energy and carbon advisory work operating from 5 UK
offices with ~60 staff. We deliver measureable value through regulatory,
technical and financial advice. Services include:
Industrial Energy Management - > £100M cost reductions identified annually
Carbon Desktop™ online resource management software – over 50,000
development hours and deployed at over 200 industrial sites.
Supply Chain Management – driving down supply chain emissions and costs
Emissions Assessment – over 1,200 greenhouse gas assessments completed
Carbon Management – UK market leader for Public Sector Carbon
Management
Low Carbon Buildings – strategy through to DEC management
Regulatory Compliance – strong CRC-EES client portfolio
Clean Energy - strategy, projects identification, development and
implementation
Utility Purchasing and Price Risk Management – via our partnership with ESP
Our industrial services and clients overview
Industrial energy management team includes a
mix of specialist engineers and software
developers
Vast experience in energy and carbon
management, waste minimisation and
environmental consulting, especially in the food
and drink sectors
Industrial core services
• Strategic advisory
• Industrial energy management
• Supply chain analysis
• Energy and environmental policy advice
• Carbon and Energy Desktop
• Energy Price Risk Management
• FM & M&E Contractor Due Diligence
• Carbon Desktop utilities M&T software
How we work with our clients
Our methodology
Scoping audit: objectives
Evaluate Performance
Identify Savings
Recommend a Strategy
Our typical approach
YEAR 1YEAR 1
Scoping
Audits
Demonstration of achievable
energy savings and carbon
reduction
Set up Carbon Desktop across sites, identify
energy saving and carbon reduction
opportunities
Implementation of opportunities
Project Payback
Scoping audit: objectives
Online resource management
Features
•
Online utilities monitoring & targeting tool
•
Powerful corporate reporting and Carbon Footprinting functionality
•
Opportunity project management tool
•
Manual or Automated data collection and existing system integration
•
Remotely review process and asset performance
•
Profile based security and access
Secure web based accessibility
Carbon Desktop is a fully
customisable solution that allows
unlimited users to use the same
system across a global enterprise
with controllable access rights so
that users can have access only to
the parts of the system they
require according to their role in
the company.
Carbon Desktop offers:
- Dynamic web based database
applications
- Access via standard MS Internet Explorer
- Easy to use with extensive scalability
- Instant reports and functionality
- Secure Web based database – (SSL)
Customisable homepage
Data capture overview
Manual Meter
Data Collection
Verco Secure Data Server
Wireless Data
Collection
Existing Data
Feeds
Utility Provider, Spreadsheets, CSV, BMS,
PLC,
SCADA and Business Software – All via FTP
Carbon Desktop
Monitoring and targeting
Profile analysis (down to 1 min interval - 15 min typical)
2
1
1.
2.
3.
Understand base load variance
Review Start-up / Stop Times
Review Peaks
3
Regression analysis
M (Slope)
C
(Baseloa
d)
•
•
•
Each point on the graph represents a week’s performance
The equation for the line of best fit is Y = MX+C, where Y is Electricity and X is Production
This timeframe becomes the weekly future target
Intelligent target setting
Weekly target from Y=MX+C
•
•
The cumulative loss / saving can be derived from the difference between the actual &
target line
This approach can be applied to main (billable meters and sub-meters)
Fixed range target setting
Corporate level reporting
In-depth site performance benchmarking
Carbon Desktop
allows you to
benchmark and report
businesses KPI’s and
CR data such as:
•
•
•
•
•
•
Accidents
Equipment OEE
Production
Energy
Carbon
Transport
Carbon Desktop can
instantly generate
Group Ratio, KPIs,
Cost or Carbon
comparisons across
the whole corporation
or a specific division.
Direct access to a
specific data point is
just one click away.
Greenhouse gas emissions reporting
Protocols
Kyoto, WBCSD GHG, CRC or
any other protocol.
Emission
Factor
Providers
Defra UK, IEA or any other
international provider.
Carbon Factor Database
Yearly
Process
The Carbon Database collects data relating protocols and emission
factors providers and then applies it to generate greenhouse gas
emissions reports using existing system data feeds.
This data is inserted into the system in a yearly basis (carbon
factors are modified yearly) . The carbon emissions factor
database has a historical set of data that will allow the system to
report on the timeframe selected by the user.
Although updates to the carbon database are normally done yearly,
new data to suit the customer’s needs can be inserted at any time.
Emissions Sources Data
Carbon Emissions
Report
Project payback report
Project forecast savings
p. 01/0
Carbon Desktop & Industrial Energy Management
Case studies
Manufacturing case study (world #1 in this sector)
• 9 Site parallel Carbon Desktop implementation
• >300 meter points and > 900 variables captured
• Full automated M&T system and auto email
reporting
• Around £250k investment in M&T and support
• Over 100 discrete projects identified across the
group
• Savings of 18,000tCO2/year = 23% reduction =
£2.5M cost saving
• Still more savings of over £750k identified, with
under 2 year payback
Dairy case study (processes over 2Bn litres/year)
• 10 site parallel implementation
• Site teams of 6 people meet once every 2 weeks
• Typically 20 utility sub-meters / site (10 water & 10
electric) per site
• Annual group utility expenditure £12M
• Annual utility and product saving £2.5M (investment
<£1M)
• Annual carbon emissions reduction of 11,000tCO2
• Real-time effluent monitoring and automated M&T
installed
• New effluent treatment technology under trial
Brewery case study ($15Bn turnover company)
• Carbon Desktop implementation with automatic data collection at 11 sites
• Countries include: Ghana, Nigeria, Kenya, Cameroon, Uganda, Seychelles,
Jamaica UK and Ireland.
• Between 60 and 150 metering points per site
• Identified > 300 energy saving projects worth > $20million
• Supported numerous engineering projects (plant expansion, refrigeration loading
analysis, etc..)
• Experience dealing with regional a M&T roll out issues, for example:
•
•
•
•
Local taxes (e.g. Kenya withholding tax 12.5% on all professional services)
Clearing customs : Correct documentation at the right time is essential
Varying levels in capability of local contractors
Availability of standard installation materials can seriously delay
implementation in different regions
• Integration with ageing services
Tim Jeffries
+44 (0) 7772 303639
[email protected]
CDP webinar – Energy Efficiency
for customers
Sustainability Office
Munich, June 27th 2012
© Siemens AG 2012. All rights reserved
The Siemens Energy Efficiency Program is offered to
customers and suppliers
Energy Efficiency along the entire value chain
Suppliers
Own Operation
Presented in CDP Webinar (12/2011)
"How to reduce emissions and improve
organizational competitiveness"
(http://vimeo.com/37666268)
Siemens
Energy Efficiency Program
Energy Efficiency
Program for Suppliers
(EEP4S)
Customers
TODAY's
FOCUS
Energy Efficiency
for customers
Source: Sustainability Office
Page 36
© Siemens AG 2012. All rights reserved
Overview:
Steps of Siemens Energy Efficiency Program
Analysis
Selection
of location
Review
environmental
reporting data
Implementation
Energy health check+
Energy analysis
Performance contracting
Executive interview
Detailed analysis
Implementation
Preliminary analysis
 Energy
Mgmt.
 Environment
 Technical
Energy
Selection of
promising sites
Performance
Assurance
Siemens
Environmental
Portfolio
Training
Efficiency
Saving potential
Measure Areas
Low
Mid
1) Production & Utilities
A) ....

3) Energy Supply and
Distribution
A) ....

4) EM Systems
A) ....
Investments
5) Mgmt. & Organization
A) ...
User
Motivation
Program
Energy
CO2
-20%
-20%
High

2) Buildings
A) ....
Energy
Reports
OPEX
Operating
Funds
Funds


Savings
Source: I CS VS EES, Sustainability Office
Page 37
© Siemens AG 2012. All rights reserved
A broad range of services leads to huge customer
benefits after implementation
Services
Customer Benefit
 Emission reduction
Energy & Water Management
 Energy cost reduction
 Management Review
 Energy Management acc. to ISO 50001
 Self-assessment & benchmarking tools,
best-practice sharing
 Energy efficiency increase
 Identification of energy saving
measures
Energy & Environmental
Data Management
 Data collection and aggregation
from shop-floor to CxO level
 Data monitoring, analysis & evaluation
 Targeting, planning & forecasting concepts
Energy Systems Optimization




Audits at site, plant and installation level
Energy systems analysis and optimization
Concepts & Feasibility Studies
Load demand visualization & management
Corporate Energy Efficiency
and Sustainability Programs
Implementation
 Improved total life-cycle costs
 Increase energy and environment
related transparency
 Increase process related
transparency
 Compliance with legal regulations
 Tailored packages with flexible
financing models for both
greenfield and brownfield projects
Source: I CS VS EES, Sustainability Office
Page 38
© Siemens AG 2012. All rights reserved
Areas for energy savings –
examples from the food industry
Measure
Saving
Investment
Payback
Heating, Ventilation, Climate
Radiation heater
for hall
25.000 €/a
845 MWhth/a
120,000 €
<5 y
Process heat/cold
Heat recovery from waste
heat and cooling
100.000 €/a
3.300 MWh/a
270.000 €
<3 y
Decentralized comp. air
supply: Rotary slide comp.
300 €/a
500 €
<2 y
Load Management
Universal controller for
optimization of drives
80.000 €/a
1.300 MWh/a
120.000 €
<2 y
Lighting
New lamps, ballasts and
light management
140.000 €/a
1.500 MWh/a
410.000 €
<3 y
Electrical Devices
Oven optimization with gas
and water / air heating
38.000 €
690 MWh/a
48.000 €
<2 y
Steeping Water Reuse
within brewing Industry
431.000 € / a
308.000 m³ /y
2.000.000 €
<5 y
Adiabate cooling
12.000 €/a
172 MWh/a
50.500 €
<5 y
Heat recovery
Compressed air
Electricity
Production (general)
Buildings
Source: I CS VS EES, Sustainability Office
Page 39
© Siemens AG 2012. All rights reserved
Green Field Analysis
DB Schenker, Mainz
Task
 Assessment of planning documents with
regard to energy efficiency by comparing
with available best practice solutions
 Inquiry of optimization potentials
 Adjustment with effective norms (EnEV)




Solution
Stocktaking
Analysis of planning documents
Data evaluation
Elaboration of suggestions in order to
increase the energy efficiency of the
planned new building in cooperation with
the planning office
 Documentation and presentation of the
results in a workshop
Customer
benefits
 Transparency of the energy flow,
compliance with formalities
 General survey of the energy possible
savings of the new building – Reduction
of the future energy costs
 Economical and technical key data of
the recommended measures
Source: I CS VS EES, Sustainability Office
Page 40
© Siemens AG 2012. All rights reserved
Contact
Siemens AG
Ralf Pfitzner
Vice President Strategy & Environmental Portfolio, Corporate Sustainability
[email protected]
Page 41
© Siemens AG 2012. All rights reserved
Royal Philips Electronics
Creating long-term value with sustainability
Carbon reduction and energy efficiency
June 27, 2012
Simon Braaksma
Philips Corporate Sustainability Office
A strong diversified industrial group leading in
health and well-being
Who we are
Our mission
Our businesses
Founded in 1891
Headquartered in Amsterdam,
The Netherlands
Improving people’s lives
through meaningful innovation.
26%
Sales of €22.6 billion in 20111
40%
Growth Markets
33% of sales generated in
growth geographies
2011
34%
Globally recognized brand
(world top 50)
Our brand value doubled to
$8.7bn since 20042
Healthcare
122,000 employees
Sales and service outlets in over
100 countries
Lighting
Consumer Lifestyle
Our vision
At Philips, we strive to make
the world healthier and more
sustainable through
innovation. Our goal is to
improve the lives of 3 billion
people a year by 2025. We will
be the best place to work for
people who share our passion.
Together we will deliver
superior value for our
customers and shareholders.
€1.6 billion investment in R&D,
7% of sales
1Note
- All figures exclude discontinued operations
2
43
Source: Interbrand
Sustainability as a driver for growth
Accelerating sustainable business
• Green Products represented 39% of total sales
in 2011, up from 30% in 2009
• By 2015 Philips aims to invest EUR 2 billion in
Green Innovation
• “Deliver on our EcoVision sustainability
commitments” on the Management Agenda
since 2010
EcoVision targets for 2010 – 2015
• Bringing care to more than 500 million people
• Improving the energy efficiency of Philips
overall portfolio by 50%
• Doubling the global collection and recycling
amounts of our products, as well as double the
amount of recycled materials in our products
44
Four global trends that drive our strategy
are becoming increasingly relevant
Aging population
The rise of
emerging markets and
the urbanization
45
Increased consumer
empowerment and
sustainable lifestyles
Climate change and
sustainable development
45
EcoVision: Carbon Footprint
Progress made to date
Target year end 2012:
Improve the energy efficiency and carbon
footprint of our operations by 25% from 2007
Manufacturing
Non-industrial sites
Operational carbon footprint
in kiloton CO2-e
Business travel
Logistics
2,148
2,111
1,930
947
959
211
276
181
265
714
2007
909
1,845
767
1,771
703
-18%
1,611
710
174
220
159
247
155
256
706
627
672
657
536
2008
2009
2010
2011
2012
Actual
158
207
Target
46 46
CO2 reduction initiatives at our own operations are
systematically identified
Lever
Operational
Efficiency
25% less CO2
in 2012 from
2007
Renewable
energy
Area
Initiatives & Options
Industrial sites
• Energy Potential Scans
Logistics
• Green logistics
Non-industrial
sites
• Energy efficient lighting
• Workplace Innovation (WPI)
• Green IT
Business travel
• Green lease car policy
• Green travel / videoconferencing
Generate
• Local on-site
Purchase
• Green Power
Green tech
• CDM investments
Credits
• 3rd party certificates
Off-setting
47
Green Manufacturing 2015
Eco-friendly solar powered water heating at production site in
Székesfehérvár
Business case
Investment: EUR 22k
Annual saving: EUR 11k
Annual CO2 reduction:
22 ton
48
Green Manufacturing 2015
Energy efficiency improvements in bending burner
Energy
efficiency
improvements
on the bending
burner
machine in
one of our
lighting
production
sites resulted
in an energy
reduction of
40%
Business case
Annual saving: EUR 122k
Annual CO2 reduction:
500 ton
Green Manufacturing 2015
Philips Fall River plans to go carbon-neutral
Business case
Annual saving: EUR 400k
Annual CO2 reduction:
2,500 ton
Zia Eftekhar (President Philips Lighting North America) presented a 2-megawatt wind turbine in
Fall River that is expected to provide up to 70 percent of the Philips plants electricity needs.
Green Logistics
Modal Shift from Air to Sea
 Air transport emits 34 times more CO2 compared to sea transport and is 10 times
more expensive (on average)
 With better planning and forecasting, it is possible to use sea instead of air
 “Air Freight Reduction program” has achieved significant cost and volumes
reductions
• Set the standard mode of transport as sea
• Apply Gateway procedure for air freight request process
 In 2011, CO2 emissions from logistics were 15,000 tons lower than in 2010
51
Green Lease Car Policy
• We set a cap in CO2/km on our lease car fleet (country and
fuel type dependant)
• We will provide EcoDrive driver training for lease car drivers
as of H2, 2012
• CO2 emissions in CO2/km per km decreased 8% in 2011
compared to 2010, with a monetary savings of approx. 3
EUR million
June 2012
How to reduce emissions and improve energy efficiency
Q&A
Submit your questions via the Q&A
function on your WebEx control panel
Speaker contact
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
June 2012
How to reduce emissions and improve energy efficiency
More from CDP
CDP Carbon Action: https://www.cdproject.net/en-US/Programmes/Pages/InitiativesCDP-Carbon-Action.aspx
Webinar: How to reduce emissions and improve organizational competitiveness
http://vimeo.com/carbondisclosure/how-to-reduce-emissions-and-improvecompetitiveness