Sustainability, innovation and diversification –finding a competitive advantage

Nathan Pearce-Boltec – Parsons Brinckerhoff – Climate Change & Resource EfficiencyDavid Chuter – Futuris – Executive, Strategy & Communications

30th August 2011

Agenda

• Introductions• Climate change & resource efficiency• Project background• Data analysis• Areas of focus• Key findings• Benefits delivered• Why does all this matter?• Finding competitive advantage• Final thoughts

Introductions

• Parsons Brinckerhoff– global consulting firm

• assists public and private clients

• plan, develop, design, construct, operate and maintain critical infrastructure

– integrated energy, water & waste infrastructure solutions

• Futuris Automotive– Australia’s largest automotive

supplier• design & manufacture of

seating and interiors• cleantech manufacturing

solutions– 1,350 employees

• 500+ in Victoria

Climate Change & Resource Efficiency

• Energy– Efficiency studies & audits– Alternative energy supply options

• Renewables, waste to energy, cogeneration/trigeneration

• Water– Efficiency studies & audits– GHG emissions estimation– Wastewater treatment/re-use– Trade-waste studies

• Climate change strategy– Carbon price impacts to business

• Geotechnical– Impacts of sea level rise on coastal

areas

• Integrated energy, water & waste infrastructure solutions

– Green infrastructure

Project background

Project background

• Energy efficiency study and level 3 energy audit– Level 3 (AS/NZS 3598:2000): a ‘firm’ assessment of energy use

– Capital cost and savings estimates within 10% accuracy(Level 2 within 20%)

– Scope: to assess beyond the ‘low-hanging fruit’

Data analysis

• Energy breakdown

• Compressed air demand analysis

• Data logging

Areas of focus

• Efficiency study covered production & administration– Total energy use– Heating, Ventilation & Air Conditioning (HVAC)– Production processes & plant

• Compressed air• Chilled water• Conveyer systems• Welding bays

– Utilities• Hot water units• Natural gas supply

– Lighting

Key findings

• HVAC operating on weekends• Space heater control upgrade• Administration lighting operating on

weekends• Conveyer system operates during lunch time

• Easy to implement• Simple solutions that are often over

looked• Minimal disruption to process

Benefits delivered

– Identified energy saving opportunities for further 32% reduction in annual energy consumption

– at least 25 tangible, feasible initiatives– fully costed with capital expense, payback and ROI

– Some surprises…• heating, ventilation and air-conditioning (HVAC) and

lighting were identified as major areas of energy use– despite significant recent initiatives

– Significant hands on experience gained by Futuris team• enable similar programs at other sites and suppliers

– Understanding of the clear need for relevant targets• measure and track energy consumption, eg GJ/tonne

– requiring smart meter installations

– Manufacturing• energy and water to convert and value add• waste as output

– Globalisation• must be locally and globally competitive

– Industry ‘hot topic’• carbon dioxide pricing

– Greenhouse gases• offsets, compliance, etc

– Rising costs– Expectation of corporate responsibility– Can it become a competitive advantage?– How can we accelerate improvements throughout industry?

Why does energy, waste and water matter?

Sustainability, innovation and diversification

needs to– align with business strategy

– make economic sense

– satisfy shareholders

– motivate and engage people

strategic approach– where do you cast the

biggest shadow?

– where to focus resources?

sustainability

innovation

diversification

competitiveadvantage

Sustainability examples

sustainability

innovation

diversification

competitiveadvantage

Sustainability– some considerations

– Strategy for sustainability• start somewhere!

• be honest about your intentions

• be selective to get quick wins

• involve the people who care

• investigate support sources

– Be creative - innovation can lead to opportunity

– Needs to provide a value proposition• cost benefit to customer & to the business

– Waste, water and energy affect productivity

– Find your competitive advantage! sustainability

innovation

diversification

competitiveadvantage

A final thought…

You can never have an impact on society if you have not changed yourself… Nelson Mandela

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