ENERGY MANAGEMENT ACTION PLAN

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1 ENERGY MANAGEMENT ACTION PLAN Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 1 of 13

2 Table of Contents ABBREVIATIONS AND DEFINITIONS INTRODUCTION DEME S REDUCTION OBJECTIVE ISO DEME S APPROACH IDENTIFICATION PREPARATION LAUNCH PROGRESS & CLOSE DEME S ACTION PLAN OBJECTIVES ACTIONS PROJECT RELATED ACTIONS Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 2 of 13

3 ABBREVIATIONS AND DEFINITIONS COO CO2 PL DBM DRIVE GHG P&L QHSE-S RMPE Chief operating officer CO2 Performance Ladder DEME Building Materials DEME s Resolve on Innovation and Value Engineering Greenhouse Gas Purchase & logistics Quality, health, safety, environment & security Research, methods, production and engineering Carbon Footprint A Carbon footprint is a total of greenhouse gas emissions related to an organisation or project, expressed in Ton CO2. DEME accounts for scope 1 and scope 2 emissions in its carbon footprint. Greenhouse Gasses Greenhouse gasses are the fundamental cause of climate change. Limiting their effect directly improves our environment. For shipping the most important greenhouse gas is CO2; directly related to fuel consumption. DEME reports its greenhouse gas emissions on a corporate level through the methodology described in the ISO standard. ISO ISO is an international standard, supplying the basis for specific climate change programmes. DEME received a positive Verification Assurance Statement for its carbon footprint conformity to ISO14064 for its base year ISO defines 3 scopes of emissions reporting. Scope 1 emissions Scope 1 contains all direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by DEME such as the consumption of fuel and natural gas. Scope 2 emissions Scope 2 accounts for GHG emissions from the generation of electricity purchased by DEME. The CO2 Performance ladder includes, in addition to purchased electricity, business air travel and the use of private cars for business purposes in scope 2. Scope 3 emissions Scope 3 is a reporting category that allows for the inventory of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not controlled by the company. Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 3 of 13

4 1 INTRODUCTION This document describes DEME s Energy Management Action plan for the period and is annually reviewed. 1.1 DEME s reduction objective DEME s energy reduction objective is stipulated in the DEME Energy Charter [DEME-MGT-CHT-007]. This charter stipulates an increase in energy efficiency in terms of a 7 % efficiency increase by 2022 as compared to This corresponds to an annual increase of 0,7% by every business unit within DEME. 2 ISO The DEME Energy Management Action plan has at its foundation the DEME Energy Charter [DEME- MGT-CHT-007] and utilises elements of ISO ISO is based on the common elements of ISO management systems (Plan Do Check Act approach), ensuring compatibility with ISO 9001 and ISO Figure 1 illustrates the model of the ISO Energy Management System. Figure 1: Energy Management System model for ISO Within DEME, the ISO standard for energy management is aligned with, and incorporated in, DEME s existing group wide programme for continuous improvement ie. DRIVE. DRIVE is an acronym for DEME s Resolve on Innovation and Value Engineering. DRIVE envisions three parts; DRIVE Cost, DRIVE Transactional and DRIVE Operational. DRIVE Cost entails purchasing/sourcing improvements, DRIVE Transactional directs its attention towards administrative efficiency whereas DRIVE Operational focusses on site efficiency, productivity, innovation and sustainability. Giving its common areas of interest and similarities in approach, the DEME energy objective and related actions for operations on Belgian and on Dutch territory, informed by ISO aspects, are taken up within the existing DRIVE operational programme for continuous improvement as described in section 3: DEME s approach. Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 4 of 13

5 3 DEME S APPROACH The section describes common grounds of ISO and DRIVE, as illustrated in figure Identification Figure 2: DRIVE Exercise model The DEME group wide Greenhouse Gas Management system, conform ISO 14064, provides the means to identify significant energy sources, energy reduction potential, and evaluate past and present energy use that leads the way to improvements in energy performance. The project selection process within DRIVE ensures that the right projects are considered for execution upon Management approval. 3.2 Preparation The methodology for selecting Key Performance Indicators within DRIVE is directed towards stimulating the identification of improvement opportunities and proving its results. Ownership is placed with the persons responsible for the resources. Before the start of each improvement exercise, the baseline of the Key Performance Indicator is set according to the DRIVE vision and approach. 3.3 Launch Given the diversity of DEME s activities, targets are set on a case-specific basis. All improvements actions and best practices are added to the relevant detailed action plan. For each improvement exercise an improvement responsible is assigned. Verification of the results is ensured by involvement of the process owner or business unit responsible in the evaluation process. 3.4 Progress & close Monitoring and evaluation of the improvement exercises is ensured through the incorporation in the DRIVE periodic management review. Corrective actions are taken within DRIVE to ensure the overall effectiveness of the DRIVE programme by Management review of the objectives set forth. Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 5 of 13

6 4 DEME S ACTION PLAN 4.1 OBJECTIVES DEME identifies its significant energy sources, energy reduction potential, and evaluates past and present energy use that leads the way to improvements in energy performance. DEME has therefore established reduction objectives for its own organisation (scope 1 & 2) and its most GHG generating chain activities (scope 3). Scope 1 & 2 DEME quantifies its energy objectives in terms of a 7 % efficiency increase by 2022 as compared to The overall DEME reduction target of 7% is further subdivided into different objectives for scope 1 and scope 2 emissions. For its scope 1 emissions DEME is pursuing a challenging goal to improve its fuel efficiency resulting in less fuel use and CO2 emissions. In order to reduce its fuel use DEME has set following reduction objectives: Lease cars: 25% ( ) Drive projects: 6 % ( ) DEME is also working to reduce its scope 2 CO 2 emissions from its facilities by using energy more efficiently, and switching to alternate forms of energy that result in lower emissions. The overall ambition that was set, envisions a reduction of 35% by 2022 as compared to Scope 3 DEME involves its suppliers in the process of creating insight into the chain. DEME has therefore analysed its most material scope 3 emissions of its GHG-generating activities. Based on these results DEME has established a general reduction objective of 6% over 10 years ( ). The reduction measures are focused on 2 main activities: Construction of windfarms (chain activity of GeoSea) Fluvial and maritime transport (chain activity of DBM) Construction of windfarms GeoSea is a specialized DEME company focusing on installations for the construction of offshore wind farms. To gain perspective on the impact of GeoSea as contractor in an entire windfarm project, GeoSea decided to complete the value chain carbon footprint of the Thornton offshore wind farm project. This value chain carbon footprint offers a cradle-to-cradle view of the Thornton project from GeoSea s contractors perspective. This study was also a starting point for GeoSea to adapt its business and put targets on the value chain emissions of a wind farm project. Deme and GeoSea decided to set a reduction objective for its offshore wind farm projects for the next 10 years ( ). This reduction objective aims a 10% decrease in CO 2 emissions per installed wind capacity. Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 6 of 13

7 Fluvial and maritime transport DEME Building Materials is a DEME company that is specialized in dredging, transportation, processing and grading of sand and gravel for supply delivery to the construction industry. To get more insight in its chain of activities, DBM launched a LCA study in By this study it is revealed that 11% of the total CO 2 emissions of this chain are obtained from transport activities to the client. This is also the reason why DBM wants to implement a reduction policy. This policy implies a reduction in CO2 emissions per ton km of 6%. Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 7 of 13

8 4.2 DEME-wide actions On DEME group level there are many CO 2 reduction actions planned or in progress. The actions are divided into different topics; actions directed towards head office activities, vessels and dry equipment. Head office related actions Below you find an overview of all the actions already taken or planned for our head office in Zwijndrecht. Description Scope CO 2 Reduction Responsible Year Action Status Use of alternative heating oil for DEME head office in Zwijndrecht 1 85 tons CO 2 /year Head of purchase & logistics 2011 Tire pressure day 1,3 Undefinable QHSE-S 2011, 2012 Installation of motion sensor light switches 2 Undefinable 2012 Relighting of B-building kwh per year or 107 tons CO 2 /year 2012 Replacement of furnace for heating with more efficient boilers Stimulating bicycle use by introducing a bicycle allowance for all employees 1,3 Undefinable Head of human resource 2013 Accomodation for bicycle storage 1,3 Undefinable 2013 Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 8 of 13

9 Description Scope CO 2 Reduction Responsible Year Action Status AVOB Energy Saver software package to reduce the energy consumption of network PCs 2 35 tons CO 2 /year Head of Biss 2013 Installation of video conferencing infrastructure 2 Undefinable Head of Biss year green electricity contract negotiated for head office tons CO 2 /year Head of P&L On-going Energy efficiency audit air-conditioning Not started Installation of wind turbine at Head office Not started Building of geothermal installation for cooling and heating Head office The programme Het Nieuwe Rijden 1,2 1 Head of human resource and QHSE-S 2015 Not started 2019 Not started Installation of charge points for electrical bicycles 1,3 Undefinable 2015 Not started Installation of charge stations for electrical cars 1,3 Undefinable 2015 Not started Renovation of I-building according to new building concepts 1, Not started Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 9 of 13

10 Vessel related actions Below you find an overview of all the actions already taken or planned for our vessels. Focus Description Scope CO 2 Reduction Responsible Year Status Awareness 1. Focus on fuel measurements On-going 2. Optimal energy management by energy awareness campaigns 1,3 Undefinable Master Continuous Continuous 3. Efficient scheduling of the trips 3 Undefinable Head of COO Continuous Continuous Technical 1. Hull cleaning Antifouling coating Fuel additives 1 No results. Trials on-going Alternative fuel 1 Results unknown. In study phase 2017 Not started: in study phase Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 10 of 13

11 Focus Description Scope CO 2 Reduction Responsible Year Status 5. Pump efficiency 1 6. Engine tuning 1 7. Propeller cleaning program 1 Operations 1. Fuel efficient mobilisations 1 2. Shore power in DEME s harbour 1 Monitoring program in place. Monitoring program in place. Program ongoing.. To be Remark: in tons CO tons CO 2 /year Head of RMPE 2014 On-going Head of COO Head of COO 2017 Not started 2014 On-going Continuous Continuous 2013 Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 11 of 13

12 Dry equipment Below you find an overview of all the actions already taken or planned for our dry equipment. Description Scope CO 2 Reduction Responsible Year Action Status Purchase of 4 new Volvo A40F dumpers Purchase of D7E-tracktype tractor with electric drive system Purchase of 3 Cat 336E hybrid cranes Higher load capacity (80 tons instead of 40 tons) 4 to7 liters per production hour or 22 kilograms CO 2 /production hour circa 3 liters per production hour or 9 kilograms CO 2 /production hour Manager dry equipment Manager dry equipment Manager dry equipment On-going Beside all these actions, DEME is continuous looking for new opportunities to minimize its CO 2 emissions (i.e. through optimal ship design, energy saving measures (e.g.: automatic switching of nonessential consumers, heat load controlled ventilation of technical spaces etc.). 4.3 Project related actions Project related actions entail an increase of on-site awareness, operational and technical measures within the DRIVE approach of continuous improvement on case-specific improvement exercises. The contribution to the DEME objective is determined for each project separately, referring to its baseline measurement. Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 12 of 13

13 4.4 Chain activity actions DEME has analysed 2 of its most material GHG generating chain activities; i.e. construction of wind farms and maritime and fluvial transport. Construction of wind farms Below you find an overview of all the actions already taken or planned. Description Scope CO 2 Reduction Responsible Year Action Status Improvement in the design and engineering of wind farms Offshore material transport efficiency 1 3 Results unknown Results unknown Operations GeoSea + client Operations GeoSea Not started. No projects in Belgium and the Netherlands Not started. No projects in Belgium and the Netherlands Maritime and fluvial transport Description Scope CO 2 Reduction Responsible Year Action Status Fuel consumption monitoring campaign of transport barges 3 Results unknown Operations DBM + shipowners Not started. Sailing by utilizing tidal movements 3 Results unknown Operations DBM + shipowners Started Maintaining appropriate speed control 3 Results unknown Operations DBM + shipowners Started Rev Uncontrolled if printed. Most recent version is available on the DEME website. page 13 of 13