Scaling Up Energy Efficiency for Climate Change Mitigation Frank O Brien-Bernini, Owens Corning Chief Sustainability Officer

Transcription

1 Scaling Up Energy Efficiency for Climate Change Mitigation Frank O Brien-Bernini, Owens Corning Chief Sustainability Officer

2 Context a private sector view Strong global macro trends Energy use & availability Climate change Population / global consumption Presenting a massive opportunity in our markets Desire to achieve sustainability Energy efficiency interest public and private Green building & renewables demand Winning with green today! Pink-is-Green our business and communication strategy Scaling Up Energy Efficiency for Climate Change Mitigation

3 Owens Corning Sustainability Business Strategy 1. Greening our Operations 2. Greening our Products 3. Accelerating energy efficiency improvements in the built environment

4 Greening Our Operations: Energy Intensity Reduction is a Key Driver Energy Intensity % Energy Intensity Reduction $5 million EBIT Intensity Reduction 2012 Energy 25% GHG 30% PM 20% VOC 25% Water 15% Landfill 35% NOx 25%

5 Low Cost / No Cost Solutions Thousands of engaged employees reducing energy use and sharing results

6 Proven Solutions Energy Project Portfolio Annual Investment ($ in millions) Investment Savings Executed Portfolio Savings ($ in millions) Forecast 0 A pipeline of rapid-return capital projects

7 Proprietary Technology and Processes 55 Recycled Glass Use in Insulation Percent More than 1 billion lbs/yr Insulation Furnace Composites Furnace Leading Edge Technology Energy and emissions reduction Manufacturing cost reduction Capacity increase Longer asset life

8 Greening our Products: Leading in green / sustainable building Common themes include products that 1. Save Energy or Water 2. Use Salvaged, Recycled or Agricultural Waste Content 3. Conserve Natural Resources through 1. Reducing Material Usage 2. Exceptional Durability or Low Maintenance 4. Avoid Toxic or Other Emissions 5. Contribute to Safe, Healthy Indoor Environment 6. Are Reusable or Recyclable at End of Life Compelling Products & Messaging that cuts through

9 Winning the Green Beauty Contest

10 Buildings Dominate CO2 Emissions more than industry and more than transportation CO 2 Emissions From Fossil Fuel Combustion by End Use Sector Industrial 80 MMTC 5% Industry 377 MMTC 25% Transportation 482 MMTC 32% Buildings 658 MMTC 43% Commercial 265 MMTC 17% Residential 313 MMTC 21% Towards a Climate Friendly Built Environment - Marilyn A. Brown, Frank Southworth, Therese K. Stovall OAK RIDGE NATIONAL LABORATORY (Prepared for the Pew Center on Global Climate Change)

11 Green Beauty Contest Products that are green you can believe in Building Insulation Curbing Global Energy Demand Growth: The Energy Productivity Opportunity Diana Farrell, McKinsey Global Institute May 2007

12 Accelerating Energy Efficiency Improvements: Higher quality homes financed by utility savings 3000 Mortgage Energy Cost Total Annual Cost ($/yr) Standard Home Lowest Total Cost High Efficiency Pathway to win/win/win green buildings

13 (1) Source: Department of Energy and Claritas ixpress Studies (2) Source: Owens Corning (3) Source: Owens Corning Accelerating Energy Efficiency Improvements: Building retrofits financed by utility savings 80 Million Under Insulated Homes (1) x Up to $2, per Home (2) = Opportunity Well less than 1% (3) of the reinsulation opportunity was captured in 2007

14 Top 5 List for Scaling Up Energy Efficiency for Climate Change Mitigation 1. Focus on what matters most guided by analytics 2. Establish organizational design / talent that will lead change 3. Set clear goals, objectives and incentives that define winning and track and report against these 4. Follow the money find creative ways to solve the split incentive dilemma 5. Intentional outreach content and creative communications Passionate CEO commitment "tone at the top"

15 Scaling Up Energy Efficiency for Climate Change Mitigation Frank O Brien-Bernini, Owens Corning Chief Sustainability Officer