sustainability internal drivers and self-assessment
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Dennis J. Stamm VP, Director Lean Enterprise Consulting February 22, 2010. Sustainability Internal Drivers and Self-Assessment. What is Sustainability?. - PowerPoint PPT PresentationTRANSCRIPT
SustainabilityInternal Drivers and Self-Assessment
Dennis J. StammVP, Director Lean Enterprise Consulting
February 22, 2010
What is Sustainability?
Sustainability was defined in 1987 at the World Commission on Environment and Development as, “Development that meets the needs of the present without compromising the ability of future organizations to meet their own needs.”
Extraction and consequential disposal of resources at rates or in forms that nature can absorb
Sustainability Drivers
Rising Costs of Energy and Raw Materials
Developing Legislation (EU RoHS, WEEE, REACH)
Increased Global Competition
• Market differentiation & Consumer demands for
“Green”
Image and corporate citizenship
• Delivering solutions that create a desirable future for
people, business and environment
Just Good Business
“Triple Bottom Line” Drivers:Social – Environmental - Financial
Social• Sensitize Stakeholders
Environmental• Produce benign emissions
• Use renewable energy
• Close the loop
• Use resource efficient transportation
Financial (business model)• Eliminate NVA
• Redesign commerce
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Primary Drivers
How increased shareholder value, and operational excellence result from Sustainability Excellence:
• Direct cost savings
• Increased customer loyalty
• Improved safety, employee engagement and ability to attract / retain talent
• Improved cash flow and profitability fund innovation and development of new products and technologies
• Improved environmental performance with lower emissions and energy use (beyond compliance)
• Regulatory risk minimization
• Brand equity
Most Sustainability initiatives lack commitment unless they drive economic results
External: Regulatory ComplianceInternal: Economic Bottom Line
Economic Bottom Line
Companies which successfully identify and manage risks and opportunities associated with sustainability are clearly able to deliver a higher return-on-equity (ROE) than similar companies that do not.
Zurich-based SAM (Sustainable Asset Management) Group
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Sustainability
Sustainability – achieving short-term and long-term operating cost reductions
• Stress water conservation and waste water reduction
• Reduce carbon footprint
• Reduce solid waste and hazardous materials
• Extensive use of re-cycled water and materials
• Environmentally sound strategies for energy and water use, transportation, product packaging, and other opportunities
• Eliminate waste
• Minimize carbon footprint
• Minimize use of natural resources
• Do more with less
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Assessment (L1, L2, L3)
Self-Assessment of Operations
Conceptualscoping
Conceptualscoping
Data analysisand field
observationsGap Analysis
Business Case & Plan
Project Definition
ImplementationImplementationThe assessment focuses on: - Operational-efficiency opportunities- Energy-efficiency opportunities
Assessment must be fact-based and aim to build a business case for action
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Use a thorough checklist to ensure a Sustainable project implementation
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The assessment can offer recommendations to improve efficiencies and to achieve immediate and long term capacity gains…
CurrentCapacity
Quick Wins
“OpEx”Transformation
CapExdriven
Expansion
FutureCapacity
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… as well as recommendations to minimize reduce energy consumption and GHG emissions
CurrentLevel
Energy Consumption
EnergyQuick Wins
Energy“OpEx”
Transformation
CapExdrivenEnergy
Mitigation
FutureLevel
Energy Consumption
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… use a variety of industry-proven audit tools to identify efficiencies with current technology and potential use of renewable sources
EEM Project Type Implementation Cost
($)
Projected Cost Savings
($ per year) Simple Payback (years)
Lighting $175,200 $20,988 8.3
HVA C $1,132,107 $354,602 3.5
Envelope $265,080 $1,924 138
Other $50,250 $135,625 0.4
Total $1,622,637 $513,139 3.4
HVAC = heating ventilation and air conditioning Note: Numbers rounded to the nearest thousand
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Work and find partners to strive for:
End-to-end Lean Sustainability approach across the life cycle of a facility to achieve:
• Excellence in operational performance (cost, delivery, quality)
• Excellence in sustainability performance (emissions, energy consumption, environmental waste)
Combined Lean and Sustainability practices drive behavior change and the development of a continuous improvement mindset
Requires a broad set of global and integrated capabilities ranging from consulting to engineering to construction to operational implementation to greatly reduce time and risk
VisionVision Design Design Construct. Construct. Operations Operations Decomm. Decomm.
Sustainability PrinciplesSustainability Principles
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Sustainability principles are also applicable to the last stages of the facility life cycle
Cost-effective and sustainable decommissioning
Planning for decontamination and decommissioning Equipment refurbishing, relocation & reuse Sustainable building reuse or building demolition Recycling of materials collected during decommissioning Assistance site sale or lease
VisionVision Design Design Construct. Construct. Operations Operations Decomm. Decomm.
Sustainability PrinciplesSustainability Principles
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Factory of the Future: Lean and Sustainable
A Symbiotic Life Cycle approach that stresses theelimination of waste
everywhere while adding value for customers.
Discussions