Back to Basics Energy Reduction Activity & Employee Engagement. Mark Anderson Maintenance Manager Engineering Division Ricoh UK Products Ltd.

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1 Back to Basics Energy Reduction Activity & Employee Engagement Mark Anderson Maintenance Manager Engineering Division Ricoh UK Products Ltd. (RPL)

2 Back to Basics Inputs Electricity Gas / Oil Water People Raw Materials / Information Work Unit Hotel, Office, Workshop, Warehouse, Manufacturing unit etc. Outputs Products Work Profit Profit Legal Waste Recycling approaches The free R s Water Recycling approaches The free R s Energy - Reduction Opportunities Opportunity = Sustainability

3 RPL Environmental Process Overview Map Controls EIA: Risk Assessment Check Conservation Onsite / Offsite Biodiversity Action Plan Biodiversity: Chemical Usage External Community Support Corporate Social Responsibility Partculate Noise Emissions CAR / Effectiveness Check Environmental Incident Reporting New Model/ Process intro Process EIA Product EIA Total Site Aspect Calculation Inputs Resource Usage EIA RPL Site Operations Supplied Product Customer Raw material Packaging Energy (CO2) Water Consumables Contractors Haz Waste Water Energy Non-Haz Foul Surface CO2 Reduction CRC / CCL Finished Products Soil Ground Ground Water Customer Supplied Product Controls EIA: Risk Assessment Check Controls CO2 Project Evaluation SMO report Product Recycling

4 Back to Basics Waste Recycling approaches The free R s Water Recycling approaches The free R s Energy - Reduction Opportunities Legal framework generally forces operations to have good water & Waste management systems in place. Energy Reduction has less legal compliance but presents opportunities to sustain operational cost reduction year on year. This our area of focus.

5 CO2 (Tonnes) Annual Energy Cost Electricity ( /MegaWatt Hour) RPL Energy / CO2 Use Our History Electricity Purchase Price ( /MWh) RPL Annual energy expenditure 500K Annual emissions of 11Kt CO 2 Low levels of energy management Energy Prices continue to rise approx 7% year on year RPL Energy - CO 2 Emissions V Cost ,200, ,000, , ,000 Average of 10 Kt CO 2 Emissions 90% Energy Cost Increase CO2 emission (G+E) Total Energy Cost 400, ,000 Further energy cost increases predicted Information supplied by Andy Smith RPL

6 RPL Energy Reduction Basic Approach 1.Data Monitoring and Analysis 2. Identification of energy intensive equipment / areas of operation 3. Understand plant operation and operational requirements 4. Identify and implement zero / lowcost improvements How much Electricity / Oil / Gas do you use, and how (or / why / where / when) is it used? Read and monitor the meter at various times of the day / week / month / year. If required get other meters to allow data capture. Map this data against operations Analysis will identify areas of the business which use the most energy to allow prioritisation. Analysis may also throw up behavioural and performance issues in different areas. Key focus is to identify where the energy is going. Focus on areas where most energy is used and break this down further using process improvement techniques to understand the way the energy is used and any equipment involved. Investigate the equipment settings to match them to the operation especially at night and to compensate for the ambient conditions. Consider technology solutions for plant at this point. Engage the employees by making them aware of the opportunities and ask them to change behaviours to save energy. (It is also a good idea to ask for their ideas you ll generally be surprised by the response!) Implement low cost improvements.

7 Energy Reduction Focus Areas Heating Systems Is your heating coming on and off at the right times and is it impossible for heating and cooling to run simultaneously? Are timers and thermostat settings correct and are they adjusted for different ambient conditions during the year? Can heating systems be run at a cooler temperature? Can heating systems be interlocked to door systems? Is it worth considering improvements to building insulation, upgraded windows etc. In large areas (e.g. warehouses,) can destratification fans be deployed to help distribute hot air and improve heating effects. If areas are air conditioned, do the controls take account of the ambient air condition so that the minimum amount of energy is used. Can CHP systems or solar thermal water heating be utilised? Can water pumps or air handling fans have variable speed drives (VSD) added to control and reduce the energy?

8 Energy Reduction Focus Areas Lighting Systems Is lighting all controlled manually? Are employees encouraged to switch off lights when not required? Is it possible to add controls to lighting circuits to ensure they switch off automatically when not required? Can lighting levels be reduced Can redundant areas be isolated or switched off? Can updated low energy lighting systems be deployed? Is it worth considering introduction of natural lighting through windows, skylights or light tubes. Technology improvements in lighting systems in the last 3 years have seen many products appear on the market which can pay for themselves within 1-2 years

9 Energy Reduction Activity Lighting Before RPL1 Toner Plant Warehouse Manually Switched Sodium Lighting After High Frequency Lighting With integral occupancy / ambient light control Annual Energy Cost Reduction = 25K Return on investment = 1.6 Years CO 2 Emissions Reduction of 150t per annum Light quality improved + Typically 60% reduction in energy

10 Energy Reduction Focus Areas Other Typical Target Equipment / Plant If you use compressed air on site then consider pressure reduction, control optimisation & VSD compressors on sites with varying demand profiles. Most fluid circulation and pressurisation pumps, general machinery or fan motors can all be run from VSD units. These allow dynamic control which results in reduced energy consumption. Typically, a speed reduction of 20% will produce an energy saving of 80% on variable torque loads (pumps / fan etc) VSDs can be deployed on almost all equipment which uses 3 phase electrical motors. For all plant and equipment; does it get switched off or switched to low energy mode when not required? Can voltage optimisation technology be deployed to reduce mains voltage to optimum levels required for your process? The deployment of VSD systems into any business does require some specialist knowledge. Generally a VSD system will pay for itself within 8 to 12 months

11 Power (kw) 23:45 22:30 21:15 20:00 18:45 17:30 16:15 15:00 13:45 12:30 11:15 10:00 08:45 07:30 06:15 05:00 03:45 02:30 01:15 00:00 Energy Reduction Site Deployment of VSDs 6 ELECTRIITY USED - AHU7 (RPL1 Office) Improvements Fixed Speed VSD - 90% Air Volume VSD Variable air volume 5 4 Annual Electricity Cost= 1,191 CO2 = 7.5t 3 2 Off the shelf solution Before Fixed Speed pumps / fans 1 0 RPL Unique Knowledge 68.5% Reductio n Dynamic Variable Speed Drive (VSD) pump/fan control Time Of Day Annual Cost Reduction = 85K Return on investment = 7 Months CO 2 Reduction of 520t per annum After

12 RPL CO 2 Reduction - Approach 1.Data Monitoring and Analysis 2. Identification of energy intensive equipment 3. Understand plant operation and process requirements 4. Implement zero / low-cost improvements 5. Research technologies 8. Confirm effect, 5.0% RPL CO 2 Reduction - Overall Contribution to reduction 9. Horizontal deployment, 20.0% 1. Data Monitoring, 2.5% 2. Identification of energy use, 5.0% 3. Gain understanding, 5.0% 6. Design RPL unique solutions to add value 7. Implement technologies & automated efficiency management 8. Confirm effect & review opportunities for further improvement (Kaizen) 9. Horizontal deployment 7. Implement technologies, 40.0% 6. Design unique solutions, 20.0% 5. Research technologies, 10.0% 4. Implement low-cost improvements, 7.5% Information supplied by Andy Smith RPL

13 Back to Basics Employee Engagement

14 Employee Engagement Basic Approaches Employee Engagement - Company Perspective Has your company got an environmental policy or stated aims related to environmental performance? Who leads the environmental activities within the company Is this a person or is it a group of people and how is their role publicised? Are employees allowed time and opportunity to contribute to environmental activities. How are environmental activities, progress, news and information communicated (company intranet / web site news bulletins?) Are there mechanisms to allow employee interests to be harnessed to contribute to company activities on site and externally? Does the company recognise the link to corporate social responsibility and capture the value of these activities? Management commitment is key to employee engagement so make sure the board, and all management levels are singing the same tune.

15 Corporate Biodiversity Projects Ricoh Off-site Ricoh On-site

16 Employee Engagement Basic Approaches Employee Engagement - Employee Perspective Do employees know what their role is within the company environmental policies / aims (inc. the board & senior managers?) How do employees find out about and keep up to date with environmental activities, progress, news and information? How can employees translate any interest in the environment into action which makes a positive contribution? Do employees have an opportunity to submit environmental ideas and take part in or see them implemented? Is there a programme of activities where employees can contribute their time both on site and externally? Does the company recognise OR reward employees who contribute their own time to company CSR activities? You will generally be surprised by the interest level from employees regarding environmental activities. Make sure you have systems to harness this interest

17 The Ricoh Way: Committed to Providing Excellence Biodiversity Conservation Biodiversity Conservation Resource Conservation Energy Conservation Pollution Prevention

18 tonnes M The Ricoh Way Value Creating CSR RPL s expertise is used to assist Ricoh Sales and to teach customers and stakeholders the Ricoh Way RPL Energy Emissions (CO2) RPL s Energy Reduction exceeds Ricoh s CO2 targets and also saves 0.5 Million per year. RPL s Remanufacturing (Eco Line and Supplies Recycling) models increase the sustainability of raw materials and our manufacturing process Waste v Turnover Waste (tonnes) Turnover ( M) Waste vs Turnover Waste generation is now decoupled from growth (turnover) in line with Zero Impact Growth philosophy , , ,000 80,000 60,000 40,000 20, ,000-40,000-60,000 Waste-2-Product k The Waste -2-Product program increases the life cycle of materials whilst increasing profitability 50k Disposal Cost Revenue Profit 59k

19 Back to Basics - Overview Decide upon and follow a basic approach. Monitor > Identify > Understand > Implement Capture and publicise benefits (CSR / CO 2 / s) Challenge the norm and focus on all areas Management commitment to activities is KEY Link employee engagement with corporate aspirations (environmental + financial.) Utilise BESST Case study information Loan power monitor

20 Back to Basics Feedback Thank You. Any Questions? Mark Anderson Ricoh UK Products Ltd.