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Energy ManagementISO 50001 & SEP

Driving Operational & Financial Performance

Don MacdonaldDirector of Sustainability & Energy Servicesdon.macdonald@us.dqs-ul.com1-847-809-1654LinkedIn: http://www.linkedin.com/pub/don-macdonald-leed-ap-rabqsa/0/595/715/

2800 Staff / 2300 global Auditors, 76 offices in 55 countries Over 20,000 customers, 100 countries, many key Best Buy CE Vendors

UL DQS –Integrity, Competence and Trust in Management Systems

• Our IntentionProvide Clients with Integrated risk management verification via third party

review of sustainability implementations – energy, environment, responsible care, and safety.

• Communications

Communicate common needs, opportunities for improvement and encourage innovations through continuous improvement processes

• Our Core ServiceAssessment, Certification and Training of management systems with more than 100 national and international approved standards or customer specific self-defined programs.

• CultureSafety focused organization

• UL DQS References

Customer retention rate of 98%, as well as a recommendation rate of over 93%.

SustainabilityIntegrity, Competence and Trust

Building and Industrial Energy Benchmarkslack Common Metric & Continuous Improvement

Products

Buildings Systems

Components

STAR RATING FORBUILDINGS

Energy Performance Index:

Category of Building

:

Type

:

Climatic Zone

:

Connected Load

:

Build up Area

:

Name of the Building

:

kWh/ sq. m/ year

Source: Schneider

Manufactured Products Certification processes and designs lack common metric

Source: Schneider

Convergence of Management Systems + Energy Solutions

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Source: Schneider

Market Adoption Indicators

ISO 9001ROI benchmarks 9-13%

• MNC’s mandated or implied Tier 1 & 2 adoption • Competitive advantage & supply chain drivers added

further incentives• Operational benefits realized but marginally

documented• No real performance metrics

ISO 14001ROI Benchmarks 7-12%

• Similar drivers as ISO 9001, plus• Environmental responsibility• Evolving into CSR & CSV• No real performance metrics

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• Compatible with ISO 9001, 14001, & SEP, CSR

RiskMgmtQuality

Environ & GHG Mgmt

Energy Mgmt

LEED

CSR

Key Global Market Drivers

• EN 16001, other energy standards sunset 2012– ISO 50001, June 2012

• EU & Asia rebates & prescriptive requirements differential– $$ final decision maker– US business prefers self governance– Carbon & GHG surrogates for direct energy

• US market decision based on $$ ROI / IRR, CSR return to Shareholders

• ISO 50001 Rigor & Competency for staff is significantly deeper

ISO 50001 Certifications Worldwide Sept 2012

Global Adoption Rate – ISO 50001

Multi-Nationals Adopting ISO 50001 & SEP

• 3M• Coca-Cola• Alcoa• Allsteel - HON• Amcor PET• Bentley Prince Street• Cook Composites• Sikorsky• OLAM Spices• MedImmune• Cummins• Ingersoll Rand

ISO 50001• CNH / Fiat• Schneider• Siemens• ABB

• 3M• Coca-Cola• Alcoa• Allsteel - HON• Amcor PET• Bentley Prince Street• Cook Composites• Sikorsky• OLAM Spices• MedImmune• Cummins• Ingersoll Rand

ISO 50001• CNH / Fiat• Schneider• Siemens• ABB

• Didion Milling, Inc

• Dow Chemical

• Eaton

• General Dynamics

• Free scale Semi

• Haynes International

• Holcim

• Lockheed Martin

• Cooper Tire

• Republic Conduit

• Bridgestone Tire

• Didion Milling, Inc

• Dow Chemical

• Eaton

• General Dynamics

• Free scale Semi

• Haynes International

• Holcim

• Lockheed Martin

• Cooper Tire

• Republic Conduit

• Bridgestone Tire

• Kenworth Trucks

• Neenah Foundry

Company

• Nissan

• Owens Corning

• Schneider Electric

• Spirax Sarco

• Traco

• Volvo

• World Kitchen

• Harbec

• United States Mint

• Kenworth Trucks

• Neenah Foundry

Company

• Nissan

• Owens Corning

• Schneider Electric

• Spirax Sarco

• Traco

• Volvo

• World Kitchen

• Harbec

• United States Mint

Commercial Superior Energy Performance Pilots:

•Cleveland Clinic

•US GSA

•Grubb & Ellis Company

•Marriott International, Inc.

•MIT Campus’s

•Target Corporation

•Wal-mart Stores, Inc.

Benchmark your EnMS Maturity

Updated 2011, 7% Energy

Corporate Social Responsibility (CSR)

• Integrates & verify underlying Sustainability report data

• Process level validation critical to performance

• Continuous Improvement

• Root Cause vs. Symptom’s

Organizations That Measure ROI/IRR of CSR 2009 - 2011

• Proportion of clients reporting Program ROI / IRR increasing

• Internal resource constraints continue

• Breadth of adoption

Executive Leadership is critical to ‘Mind the Gap’Facility managers typical energy champions

Harnessing the Power of Process

Business processes for competitive advantage:

• Six Sigma• Lean Manufacturing• Continuous

Improvement

• ISO 9001• ISO 14001• Plan-do-check-act

Formal energy management standards (ANSI, BSI):

0%

5%

10%

15%

20%

25%

30%

35%

40%

Energy Management

Standard

Continuous Improvement

ISO 9001 or 140001

Six Sigma Lean

JCI Study - 83 Organizations surveyed…

State of the Art – Commercial & IndustrialInconsistent use of Management Processes

Result:

Lower ROI, Mixed Results0

5

10

15

20

25

30

35

40

0-2 3-4 5-6 7-8 9-10

Nu

mb

er

of O

rga

niz

atio

ns

Energy Management Score

JCI Study - 83 Organizations surveyed…

• Training for employees: 76%• 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%

Management Systems Strategy

Focus EnMS on plants, buildings and operations above target.

•Drive Process Improvement

•Drive ROI/IRR

•Drive Integrated CSR

•Linkage to GHG

Focus EnMS on plants, buildings and operations above target.

•Drive Process Improvement

•Drive ROI/IRR

•Drive Integrated CSR

•Linkage to GHG

Superior Energy PerformanceSuperior Energy Performance

SEP & ISO 50001 Energy Management

Reduced operational and overhead costs → increased profitability

ISO 50001 is a foundational tool that any organization can use to manage energy.

ISO 50001 is a foundational tool that any organization can use to manage energy.

ISO 50001ISO 50001Components in place:• Baseline• Policy• Plan• Team/Leader

Components in place:• Baseline• Policy• Plan• Team/Leader

Facility/Building - level conformance to ISO 50001 with validated energy performance improvement

Facility/Building - level conformance to ISO 50001 with validated energy performance improvement

ISO 50001ISO 50001

DOE, 2011DOE, 2011

Benefits of an effectively implemented EnMS include:

4.2/4.2.1 Management Representative/ Top Management 4.4.1 Resources, Roles Responsibility and Authority

4.2.2 Management Representative 4.4.1 Resources, Roles Responsibility and Authority

4.3 Energy Policy 4.2 Environmental Policy

4.4.2 Legal Requirements and Other Requirements 4.3.2 Legal and Other Requirements

4.4.3 Energy Review 4.3.1 Environmental Aspects 4.4.4 Energy Baseline No Equivalent Element 4.4.5 Energy Performance Indicators No Equivalent Element

4.4.6 Energy Objectives, Energy Targets and Energy Management Action Plans 4.3.3 Objectives, Targets and Programs

4.5.2 Competence Training and Awareness 4.4.2 Competence Training and Awareness4.5.3 Communication 4.4.3 Communication

4.5.4.1 Documentation Requirements 4.4.4 Documentation

4.5.4.2 Control of Documents 4.4.5 Control of Documents4.5.5 Operational Control 4.4.6 Operational Control4.5.6 Design No Equivalent Element

4.5.7 Procurement of Energy Services, Products, Equipment and Energy No Equivalent Element

4.6.1 Monitoring , Measurement, and Analysis 4.5.1 monitoring and measurement

4.6.2 Evaluation of Compliance with legal Requirements and Other Requirements 4.5.2 Evaluation of Compliance

4.6.3 internal Audit of the EnMS 4.5.5 internal Audit

4.6.4 Nonconformities, Correction, Corrective Action and Preventive Action 4.5.3 Nonconformity, Corrective, Preventive Action

4.6.5 Control of Records 4.5.4 Control of Records4.7 Management Review 4.6 Management Review

Energy Management Best Practices

EnMS & SEP Best Practice MappingOrganizational

Barriers Best Practices

EnMS & SEP Best Practice MappingCapital

Barriers Best Practices

EnMS & SEP Best Practice MappingData

Barriers Best Practices

EnMS & SEP Best Practice MappingCommunication

Barriers Best Practices

EnMS & SEP Best Practice MappingThird Party Issues

Barriers Best Practices

Case Studies, Results

Name of FacilityEnergy Performance

Improvement*Year of

Certification

SEP PlatinumVolvo Trucks, NA: Dublin, VA 25.80% 2012Dow Chemical Company, manufacturing plant: Texas City, TX

17.10% 2011

3M Canada Company: Brockville, Ontario, Canada

15.20% 2012

SEP GoldCook Composites and Polymers Co.: Houston, TX

14.90% 2010

Allsteel: Muscatine, IA 10.20% 2012SEP SilverDow Chemical Company, energy systems plant: Texas City, TX

8.10% 2011

Owens Corning: Waxahachie, TX 9.60% 2010Nissan, NA: Smyrna, TN 7.20% 2012

Freescale Semiconductor Inc.: Oak Hill, TX 6.50% 2010

DOE Superior Energy Performance Program (SEP) Pilot Results

AU Optronics, Taiwan

City of Bad Eisenkappel

St. Mary’s Cement

Save Energy Now – Best Practice AlternativeData Center Assessment Summary Verizon

Save Energy Now – Best practice AlternativeData Center Assessment Summary Lucas film

Briggs & Stratton – Best Practice Alternative

Dahanu Power Station, India

Delta Electronics

Schneider Global HQ

CertifiedISO14001HQE ExploitationNF EN16001ISO 50001: first certified building in the world!

÷4Final energy consumption vs. previous sites in the area

80 kwh/m²/ anFinal energy consumptionROI in 5 to 7 years

Schneider Electric Smyrna, TNISO 50001 Certified, SEP Pathway

Haynes International

Pfizer Ireland – ISO 50001

The goal of the Program is to reduce energy and resource intensity, decrease CO2 emissions and minimize Pfizer's energy resource spend for business operations.

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• SustainabilityCNH is part of Fiat Industrial

– fully integrating the environment and society with economic objectives. 2010 Fiat Sustainability Report.

.

• 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.

CNH / Fiat Certification – Building into CSRUL DQS Certified first plant

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.

Energy Management within ISO 14001 Programs

Mass Transit Agency Leadership LA Metro, NY MTA

DOW

UL DQS Proprietary Client Engagement

Client Need

Issue(s), Goals, Scope,

Budget and decision makers

Solutions to solve the problem

eLearning

ISO 50001 or SEP

-Awareness -Intro / Internal Audit-Implementation

“How To”-Executive Business Case

eAssessment Tools

Self Assessments

Remotely completed, SWOT, GAP reports

eManagementCertification

Current processes

Revised QFDakks Table

eManagementSelf-Declaration / Best

Practices

Letter of Conformance (LOC)

In-Person GAP, Deep

Dive Assessment

ISO 50001 or SEP

Practitioner’s Guide & Self Assessment Scorecard

Self Assessment eTools

eLearning, eAssessment, & eManagement

eLearning

Occupational Health & SafetyOHSAS 18001

Energy - ISO 50001,SEP, GHG, CSR

Electronics

ESD S20.0, QC 080000

Risk Management,Due Diligence ISO 31000, Supplier Audits

Information Security ISO 27001 & 20000-1

QMS & EMS - ISO 9001 & 14001

Sustainability Program - Integrated Risk Management

Internal Audits & Auditor Training