Profit, Planet and People: Achieving the Triple Bottom Line through Energy Efficiency

Transcription

1 Thursday, October 5, 2017 Profit, Planet and People: Achieving the Triple Bottom Line through Energy Efficiency Alberto Ang Co 1

2 Triple Bottom Line Concepts Profit Planet People FINANCIAL Energy and Cost Savings ENVIRONMENTAL Emissions Reduction SOCIAL Ethical Responsibility ENERGY EFFICIENCY IMPROVEMENT 2

3 Evolution of Energy Management From the Boiler Room To the Board Room Citation: Photos or images adapted from Wikimedia. 3

4 Global Drivers for Energy Management Climate Change as a Global Threat After its presence in the top five most impactful risks for the past three years, the failure of climate change mitigation and adaptation has risen to the top and is perceived in 2016 as the most impactful risk for the years to come - Global Risks 2016, World Economic Forum Citation: Photo or image courtesy of NASA. 4

5 Global Emissions Fossil Fuel Combustion as the Major Source of Anthropogenic Emissions Emissions (million metric tons of carbon) 12,000 10,000 8,000 6,000 4,000 2, Year Emissions per capita Gas Liquids Solids Production Flaring Emissions per capita Citation: Adapted from Fossil-Fuel CO 2 Emissions, Carbon Dioxide Information Analysis Center (CDIAC) (2017). 5

6 Energy Efficiency as the First Fuel Citation: Adapted from Energy and Climate Change, International Energy Agency (2015). 6

7 Barriers to Energy Efficiency Energy efficiency is often invisible! Different business priorities Inadequate funding Scant expertise Low awareness levels Citation: Photo or image courtesy of Edge Hill University. 7

8 Basic Energy Terminologies A Quick Review Energy Conservation The use of less energy that is often a behavioral change. Energy Efficiency The use of technology to reduce energy consumption and maintain the same level of output or function. Energy Management System A set of interrelated or interacting elements to establish an energy policy and energy objectives, and processes and procedures to achieve those objectives as per ISO 50001:2011 principles of continual improvement. 8

9 Foundational Energy Into Action Plan Strategic Energy Management Program Action 1: Make Commitment Action 2: Assess Performance Action 3: Set Goals Action 4: Create Action Plan Action 5: Implement Action Plan Action 6: Evaluate Progress Action 7: Recognize Achievements Organizational Technological Behavioral Citation: Adapted from ENERGY STAR Guidelines for Energy Management, U.S. Environmental Protection Agency (2016); Implementing an Energy Efficiency Awareness Program, Natural Resources Canada (2012). 9

10 Action 1: Make Commitment World-Class Energy Management Progression Facility and Project Management Facility-by-facility or project-by project approach Strategic Energy Management Holistic approach for continuous improvement World-Class Recognition LEED BREEAM ISO Superior Energy Management 10

11 Action 1: Make Commitment Environmental Policy (Energy) Material Consumption Minimize the environmental impacts of our business operations through best practice Business Transportation Waste Generation management of our use of energy, transportation, material consumption, water use, waste, and emissions. Energy Consumption ECO 5 Strategy Procurement 11

12 Action 1: Make Commitment Responsible Energy Managers and Energy Champions A few points to consider should the energy manager(s) be: A managerial or technical function? A program strategist or project implementer? A full time job or addition to existing responsibility? An in-house staff or outsourced consultant? A centralized or decentralized position? A single person or team of energy champions? A part of environment, engineering, facility management, or other departments? Energy management is a cross-functional and not a one-person job. 12

13 Action 2: Assess Performance External Best-In-Class Benchmarking Energy Use Index (GJ/m 2 ) Company A Company B Company C Company D Company E <-- Energy Efficient -- Energy Intensive --> Company EUI Energy Star Median EUI 13

14 Action 2: Assess Performance Sample Qualitative Benchmarking Energy Efficiency Initiatives Comparison and Checklist Description Company A Company B Company C Company D Company E Energy-saving technological measures LEED certified buildings/green building design Space optimization strategy ISO certified buildings BREEAM environmental assessment certification Green lease standard On-site solar panels Net-zero facility Environmental blueprint ENERGY STAR reporting 14

15 Action 2: Assess Performance Internal Benchmarking Five-Number Summary Energy Use Index (GJ/m 2 ) Minimum Lower Quartile Median Upper Quartile Maximum <-- Energy Efficient -- Energy Intensive --> Low EUI High EUI Energy Star Median EUI 15

16 Action 2: Assess Performance Corporate Standard for Greenhouse Gas (GHG) Emissions Breakdown of GHG Emissions Travel 13% Others 2% Energy 85% Citation: Photo or image courtesy of World Resources Institute. 16

17 Action 2: Assess Performance Carbon Disclosure Project (CDP) Dow Jones Sustainability Index (DJSI) A- A Leadership (A/A-) Best practices for advancement of environmental stewardship F D- C- C B- B Management (B/B-) Evidence of actions for environmental management Awareness (C/C-) Evaluation of how environmental issues intersect with business D Disclosure (D/D-) Transparency on environmental impacts Failure (F) Failure on disclosure of data Corporate Governance Codes of Business Conduct Impact Measurement & Valuation Supply Chain Management Water Related Risks Product Stewardship Citation: Adapted from Scoring Introduction 2016, CDP (2016). Citation: Photo or image courtesy of DJSI. 17

18 Action 3: Set Goals Reduce absolute enterprise carbon emissions resulting from energy use, business transportation, and waste by 10 percent. To be achieved by the end of Fiscal 2017, using Fiscal 2012 emissions as baseline. 18

19 Action 4: Create Action Plan Energy Efficiency Awareness Program Building Envelope HVAC Lighting Controls O&M Assessments Control System Optimization Energy Information and Data Analytics Fault Detection and Diagnostics Building Condition and Technical Assessments Preventive Maintenance Retro-Commissioning Capital Projects Operation and Maintenance (O&M) Design and Construction Standard 19

20 Action 5: Implement Action Plan Project Decision Matrix RACI Matrix Low <- SAVINGS -> High B. Quick Win A. Low Hanging Fruit C. Further Investigation D. Non-Priority Responsible Consulted Accountable Informed Low <- EFFORT -> High 20

21 Action 5: Implement Action Plan Like-for-Like Asset Renewal Energy-Efficient Upgrade Technological obsolescence Facility modernization Legal obsolescence Code compliance Economic obsolescence Life cycle cost effectiveness 21

22 Action 5: Implement Action Plan Total Cost of Ownership (Life Cycle Cost) 1. Acquisition 2. Design and Modelling 3. Construction 6. Disposal 5. Operations and Maintenance 4. Commissioning 22

23 Action 5: Implement Action Plan Get paid up to 50% of project cost to save energy during asset renewal! Retrofit Program High Performance New Construction Energy Audit Funding Citation: Photo or image courtesy of saveonenergy. 23

24 Action 6: Evaluate Progress SAVINGS YOU CAN BANK ON By the Numbers $679,900 Incentives $851,100 Annual savings 219,100 Annual kg CO 2 e reduction 164 Incentive project applications Incentives and Energy Savings ($) Incentives by Year $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Annual Incentives Cumulative Energy Savings Citation: Photo or image courtesy of BMO. 24

25 Action 6: Evaluate Progress Banking on Incentives and Energy Savings $800,000 $700,000 Incentives by Project Office renovation Incentives by Province 1.0% 0.5% 4.7% Incentives ($) $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 Building envelope improvement Lighting retrofit (signage) Lighting retrofit (interior) HVAC upgrade Ontario Manitoba Quebec Newfoundland $0 93.9% 25

26 Action 6: Evaluate Progress Moving 12-Month Total Regression Models Electricity Consumption (kwh) 14,000,000 13,000,000 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000, / / / / / / / / / / / / / /07 Natural Gas Consumption (m 3 ) Natural Gas Consumption and Heating Degree Days 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Actual Forecast Energy Star Median Linear (Actual) Heating Degree Days 26

27 Action 6: Evaluate Progress Corporate Emissions and Targets Progress to Date ABSOLUTE CARBON EMISSIONS REDUCTION Five-Year Target Progress % tco 2 e 13.9% tco 2 e Five-year target achieved and exceeded within four years. Annual Emissions (tco 2 e) 240, , , , , , , , , , , , , , , , , , Actual Emissions Adjusted Baseline Emissions 27

28 Action 7: Recognize Achievements Internal Recognition Does Not Have to Break the Bank Social recognition Spotlight awards Air Miles points ENERGY CHAMPIONS Citation: Photo or image adapted from Oracle. 28

29 Action 7: Recognize Achievements External Recognition for Corporate Sustainability Citation: Photo or image adapted from BMO and Corporate Knights Global

30 Alberto Ang Co CEM CMVP Program Manager (Energy & Emissions) Environmental Sustainability Tel: