driving energy management transformation...accenture is a global management consulting, technology...

Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Driving Energy Management Transformation

Study on energy management maturity of companies in

Singapore

Copyright © 2013 Accenture All Rights Reserved.

• Over $27.9 Billion in Revenue (FY12) • Over 261,000 Professionals in 120 Countries • Working with 89 of the Fortune Global 100 (magazine’s)

largest public companies • More than 100 of Accenture’s top clients have been clients

for >10 years

• Listed as a component on the Dow Jones Sustainability Index (DJSI) - North America for the 8th consecutive year (Sept. 2012)

Consulting

More than 90% of the world’s top companies benefit from our insights and solutions.

Technology

Our experienced professionals bring the latest technology to deliver solutions, no matter how complex.

Outsourcing

Using our global delivery network, we can help clients focus on their core business.

Accenture Overview

Accenture is a global management consulting, technology services and outsourcing company. Combining

unparalleled experience, comprehensive capabilities across all industries and business functions, and

extensive research on the world's most successful companies, Accenture collaborates with clients to help

them become high-performance businesses and governments.


Accenture Sustainability Services

3

Sustainability is the way an organization creates value for its stakeholders by leveraging its assets and

capabilities to drive innovation and profitable growth while striving for a positive environmental and social

impact.

We work with world leaders to create value for business, society and the environment

We have deep understanding of the sustainability challenges across a wide range of industries

We are leading the global discussion on sustainability through partnerships with globally recognised institutions

http://www.votorantim.com.br/en-us


Content

Conclusion and Q&A

What is Enterprise Energy Management (EEM) and why is it important?

What were the key findings from our survey?

What are some of the recommendations for companies going forward?

4

1

2

3

4


Energy efficiency is a key priority for Singapore’s sustainability

agenda – aim to achieve significant energy efficiency by 2030

Policies relating to Energy Efficiency

Buildings • 80% of existing buildings to achieve

minimum of Green Mark Certification by

2030

HDB

Common Areas • Increase energy efficiency by 30% for

mature estates and 20% for new estates by

2030

Companies • Energy Conservation Act affecting consumers

>15GWh/year from 2013

Households • Energy inefficient air-conditioners and

refrigerators removed from the market by 2011

Sources: Singapore Sustainable Blueprint. Singapore

National Climate Change Strategy

Illustrative

“We will need to continue our efforts to meet our target, under the Sustainable Singapore Blueprint, to reduce Singapore’s energy intensity by 35% from 2005 levels by 2030,” said Ibrahim (previous Minister for Environment and Resources)

= survey focus area

5


Focus of energy management has typically been on technological

solutions to achieve energy savings

Studies have shown that the energy and emissions reduction efforts for industry sector has

traditionally been focused on system equipment rather than optimising systems

Focus on energy efficiency has typically been introducing technological solutions such as VSDs, control systems, cogeneration for example

It can also sometimes be difficult for operational staff to recognise energy efficiency opportunities as the focus is generally on core business activities and less on energy,

There can also be budgetary disconnect between capital projects (e.g. equipment purchase and operating expenses)

6

Technology solutions can certainly reduce energy consumption significantly

However, technology is only one part of the equation in achieving long term energy reduction

Having the right enterprise management system (Strategy, Leadership & Governance, Equipment & Technology, People and Processes) can complement energy efficient technology solutions to drive further and sustained savings

Example of energy efficiency measures


Accenture’s Enterprise Energy Management Framework

Industry examples have shown that implementing enterprise

management can lead to greater and sustained energy savings

By integrating best practices in strategy, leadership, technology, people and processes, this approach

may lead to a transformational change in how energy is procured and managed and realises sustained

cost savings and improved compliance

7

http://www.google.com/url?sa=i&rct=j&q=dupont&source=images&cd=&cad=rja&docid=tlp8NMxtZXlieM&tbnid=P0we0pX36y9eRM:&ved=0CAUQjRw&url=http://omiusajpic.org/2013/04/25/dupont-ebay-asked-to-report-on-lobbying-expenditures-and-activities/&ei=ueztUfnfEISWiQeUm4HYCQ&bvm=bv.49478099,d.aGc&psig=AFQjCNHRjifh_p9RfqBJwlKm9sFl3Si9BA&ust=1374633488058323

http://www.google.com/url?sa=i&rct=j&q=3m&source=images&cd=&cad=rja&docid=-LQcGgxNwRoo-M&tbnid=W-dVkhsQri-6SM:&ved=0CAUQjRw&url=http://www.supercheaphardware.com.au/manufacturer/3m&ei=Z8oJUpPRDa2WiQeu2YHABQ&bvm=bv.50500085,d.aGc&psig=AFQjCNGbhZuXYdhJD56BZSJAOfTQLWgerw&ust=1376459741778315

Copyright © 2013 Accenture All Rights Reserved. 8

Accenture partnered with NEA to carry out a qualitative survey of

Singapore companies energy management maturity

1. How mature are energy management capabilities amongst the energy intensive companies in

Singapore?

2. What are the key areas for companies and policy makers to focus on in driving energy

management?

Key survey research questions:

With the Energy Conservation Act coming into force, Accenture with support from NEA invited those

companies subjected to ECA to provide their view on the state of their energy management maturity

These companies include some of the most energy intensive sectors in Singapore:

Petrochemicals Precision Engineering Wafer and Semiconductors

Biomedical Electronics

Chemicals

Food Manufacturing Power Generation

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=RVr9W2opbBa_PM&tbnid=RZOEfbTF7heaPM:&ved=0CAUQjRw&url=http%3A%2F%2Fsmartcorpinc.com%2Fproducts%2Fpetrochemicals&ei=2W1TUvmUEYOEiAf_sIC4Dw&bvm=bv.53537100,d.aGc&psig=AFQjCNE-ntuEd6Fi3RnGRZ8AJyQnEMCDXg&ust=1381285716006511

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=jC02c2VMKHT2ZM&tbnid=BpM88qkNsQIjbM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.shell.com%2Fchemicals%2Faboutshell%2Fmedia-centre%2Fmedia-releases%2F2013-media-releases%2Fsingapore-site-new-investments.html&ei=Nm5TUt-ECouRige0noGgCg&bvm=bv.53537100,d.aGc&psig=AFQjCNHc__V4bjP7qRjhMzdrcCKzKtAiNQ&ust=1381285802958924

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=-RKh2rzIowxGDM&tbnid=VQDGc4EozIbf3M:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.constructionweekonline.com%2Farticle-21287-six-bidding-to-build-huge-al-mirfa-power-plant%2F&ei=rW5TUs67HY6viQe0g4Eo&bvm=bv.53537100,d.aGc&psig=AFQjCNHMEC5lBhBmHL11SYB2bXEAq8Uhug&ust=1381285899834920


Content

Conclusion and Q&A




4

1

2

3

9


The survey assessed an organisation’s energy management

capability across five components

• Assess an organization’s energy management capabilities through 18 components across the 5 pillars of

the EEM framework

Accenture’s EEM Capability Maturity Model


A key business question for each component was asked,

supplemented with an indicative view of current market practices

Basic Performance

Competitive Performance Leading Performance

1 2 4 5 3 Evaluation Scale :-

• Year-on-year corporate objectives are

defined with basic energy management

plans in place.

Basic Basic to competitive Competitive Competitive to Leading Leading

• Well-defined short term (up to 3 years)

corporate goals, which serve as a

guiding principle for designing energy

management plans and objectives.

• Well defined energy management

strategy (e.g. ISO 50001), which is

completely aligned with corporate

goals; clearly stated short-term and

long term (> 5 years) energy objectives.

1C. Energy Strategy: Does the organization have a clearly defined energy strategy with clearly laid out goals and objectives?

Example:

Self assessment by employee of company indicating the relevant level

of maturity for a particular energy management component

11


Responses from 100 different companies were recorded,

comprising a mix of industry groups, types, and sizes

There were over 120 responses from 100 unique companies comprising a broad split of industry groups

and company sizes. Majority of the companies are a part of a global multinational company.

12


Main Finding: People centred components of energy management are less mature and more varied

Survey respondents from the companies surveyed cited people centred components to be lagging as

compared to other components, as well as room for improvement for the overall level of energy

management practices

Survey responses from companies in Singapore suggests improvements can be made particularly to:

• Rewards and incentives

• Roles and responsibilities

• Organisational structure

• Core skills and training

In other words, the ‘softer’ aspects of energy management

13

Opportunities to further improve

performance across the energy

management components, such

as software and information

system or setting of energy

targets/ indicators

Improving on these areas can

help further drive energy

management culture within the

organisation


Main Finding: People centred components of energy management are less mature and more varied

14

• The people centred components also appear to vary across companies surveyed,

• This seems to indicate differences in the way companies in Singapore approach the more people centred components of energy management

• Of the 100 companies surveyed, only 4 indicated they are ISO50001 certified

• The maturity of these companies seem to be significantly higher than average (although sample size is small)

There is a variation in the way different companies define their energy management capabilities

ISO certification can help set the right framework for energy management


Other findings: Levels of energy management maturity vary between different industry sectors but similar across different size

Levels of energy management maturity vary between different industry sectors

The pattern of energy management maturity is similar irrespective of the size of the company

15

• Biomedical and petrochemical industry seem to be more mature in energy management overall

• However, the companies within the industry also appear to vary in their maturity levels as compared to other industries such as electronics or wafer

• The maturity ‘pattern’ seems to be consistent across companies of different sizes- i.e. companies commonly perceive ‘people centred’ components as an area for improvements


Content

Conclusion and Q&A




4

1

2

3

16


1. Understand where you are now can determine the energy management interventions going forward

17

The survey points to varying levels of energy management maturity amongst the companies in

Singapore. The interventions would therefore be dependent largely on where the organisation is

currently and where they want to be.

Be

ne

fits

Basic

Leading

Level of Maturity

Competitive

Prioritisation of interventions based on impact potential and time horizon for impact

Company A: current level

Company A: future vision


2. Drive energy management in a structured and holistic manner- from strategy to execution

18

Strategy:

Carry out a stakeholder

management analysis to

establish key priorities

Leadership and Governance:

Identify list of most relevant

and significant indicators for

energy

Set baseline and targets

People:

Define roles and

responsibilities for key

business units and

employees with individual

metrics and targets on energy

Consider linking rewards to

targets

Processes:

Establish reporting and

feedback processes for

energy performance

management and reporting

Suggested Actions Potential benefits

Strategy and policy aligned to

corporate objectives

Lead to decisions that are

more long term

Potential additional business

opportunities from ‘greener’

products and services

More informed internal and

external stakeholders

Greater awareness of efforts in

sustainability from customers

and suppliers

Employees more aware and

engaged in energy efficiency

and management

Incentivised employees to help

drive and sustain energy

savings

Cost savings potential from

higher energy efficiency

Examples

Notes: RWE info from CDP reports. Senoko initiative extracted from

Accenture-NEA survey on energy management

http://www.google.com/url?sa=i&rct=j&q=rwe&source=images&cd=&cad=rja&docid=RST6twLxo2IfAM&tbnid=iEHDkYGpkPVbjM:&ved=0CAUQjRw&url=http://www.logostage.com/logo/rwe/&ei=wiDeUZCRJcq3iQeFnYCACw&bvm=bv.48705608,d.dGI&psig=AFQjCNGjn1JuXqLExdzE8OqTfuPYEC3kJA&ust=1373598267875924

http://www.google.com/url?sa=i&rct=j&q=senoko&source=images&cd=&cad=rja&docid=PrWzj7TZfDdE1M&tbnid=B2E_aSTaGIUFVM:&ved=0CAUQjRw&url=http://splashdown09.blogspot.com/2009_07_01_archive.html&ei=40LdUeSUAaWaiQeY0oCQCQ&bvm=bv.48705608,d.aGc&psig=AFQjCNGbTNT37iQqCE1T2QRTRo6nE_T5Xw&ust=1373541472635391


3. Comprehensive measurement through information systems underpin Enterprise Energy Management

Streamlined data collection that

can save time and less effort

intensive

Real time/ timely data capture

Largely automated data

collection saving time and

reducing risks of errors

Valuable insights being

generated to drive energy and

carbon performance

Real-time data analysis

Visualise energy profile to help

identify opportunities

Tracking of performance

against key indicators

Analytics and database of

energy improvement ideas

Quick and accurate submission

to ECA and other sustainability

reporting requirements

Auto generated output Audit

trails of data

Automated data checks for

completeness and accuracy

Energy Management

Information System:

Establish required data points

and indicators

Invest in better measurement,

analysis and information

systems with the capabilities

to automatically capture and

analyse energy and carbon

related data

19

Suggested Actions Potential benefits Examples

Energy Management System Software

http://www.google.com/url?sa=i&rct=j&q=veolia&source=images&cd=&cad=rja&docid=WiGoW7ZARgcDPM&tbnid=G66WWicRaH7DmM:&ved=0CAUQjRw&url=http://www.infopark.com/en/references/veolia&ei=xkLdUbgI6q6JB5TmgKgL&bvm=bv.48705608,d.aGc&psig=AFQjCNF90aBNDEjkIkGnS6Zi9rNgfXKryA&ust=1373541439396727


Content

Conclusion and Q&A




4

1

2

3

20


Summary: Energy intensive companies in Singapore are

performing well in core aspects of energy management, but can

further improve people-centric aspects

• Energy management will become increasingly

important given rising energy costs and regulation

(such as the Energy Conservation Act)

• Incorporating an enterprise energy management

approach can help to further drive and sustain

energy efficiency

• Our survey shows that, in comparison to their

technological capabilities, most organizations are

relatively less mature in the ‘softer’ people-centric

aspects of energy management.

• These include organizational structures, roles and

responsibilities, rewards and incentives, skills and

training

• Going forward, companies can focus on these

areas internally as well as look to implement

energy management information systems to

provide the data and insights to create more

targeted energy management strategies and

interventions


Find out more….

http://www.accenture.com/us-en/Pages/insight-driving-energy-transformation-singapore.aspx













Learn more at www.accenture.com/sustainability


driving energy management transformation...accenture is a global management consulting, technology...

Documents