AERZEN USA - A SOCIALLY RESPONSIBLE AND SUSTAINABLE COMPANY. Aerzen USA Building Expansion
Aerzen USA Sustainability Report: 2017 Since our founding in 1983, Aerzen USA has stood out as a destination for high quality and reliable products with a commitment to mitigating the environmental impact of our production and operating processes. Our sustainability objectives are to minimize environmental impacts for the communities we serve, provide a sustainable and engaging work environment for our employees and deliver a high quality product for our customers while maintaining financial success. From rising materials and energy prices, a limited talent pool and constant advances in engineering and design technology, we realize the importance of positioning ourselves with the future in mind. Our sustainability objectives ensure a sustainable business model that is efficient and cost effective in every aspect possible, from energy reduction, talent retention and efficient use of materials and resources. Throughout 2016 we continued to work towards our sustainability goals and this report reviews our progress on a number of initiatives. Just a few highlights include a green building expansion project, a continued best-in-class safety record, large investments in people development and the launch of a new controls business. New office area addition Environmentally Responsible Operations Due to continued success and growth of the company, we began a building expansion project this year to accommodate an increased need for warehouse and production space as well as increased employee headcount. The new portion of the building adheres to the same standards we applied to the original construction of our LEED certified green building including recycled wood beams, superior insulation and wide use of daylighting. The new portion of the building will consist of 22,000 square feet of space; 7,000 dedicated for office space and the remaining to be used as warehouse and production space. Integrating corporate unity and employee wellness into the design, a new employee collaboration hub, featuring a high tech meeting room, relaxation room and a café which opens up to a central courtyard, was built to connect the space between the existing building and building expansion. Another distinguished feature of the new building is the installation of underground rain tanks composed of interlocking modules to store and infiltrate storm water to recharge the groundwater table. Mimicking the original design, a geothermal well and earth tubes were installed to heat and cool the new building space. Earth Tube Installation for heating / cooling Aerzen USA has continued to make improvements in energy consumption where possible. Innovative approaches to energy efficiency include daylight harvesting, LED lighting and solar generated power. Due to continued growth of our operations, our energy usage has increased year over year, mainly driven by the increased number of machines being tested and length of testing to verify and document efficiency improvements of the new design of our turbo blowers. During 2016 Aerzen USA consumed approximately 324,000 kwh of electricity, of which 260,000 kwh (or 79%) was produced by the sun. 2
Total kwh usage per year 350,000 323,762 300,000 250,000 284,731 46,406 269,481 38,984 67,265 200,000 150,000 100,000 238,325 230,497 256,497 50,000 0 Solar as a % of Consumption 2014 84% 2015 86% 2016 79% Solar Array kwh Production Total Peco kwh Used The carbon footprint data has been calculated using the EPA s Simplified GHG Emission Calculator and tracks emissions from electricity, natural gas, propane gas, shipping freight and air travel. 2015 Green House Gas CO 2 Netric Ton Emissions 779 Metric Tons 65% Freight 26% Air Travel 4% Electricity 5% Natural Gas 0.4% Propane 2016 Green House Gas CO 2 Netric Ton Emissions 878 Metric Tons 5% Electricity 62% Freight 29% Air Travel 3% Natural Gas 1% Propane Recycling is not a new concept to Aerzen USA. By minimizing the waste we send to landfills, not only are we putting less strain on the environment we live in, but we are minimizing the financial impacts associated with waste management. The recycling program encompasses the following streams; Single Stream all recyclable items are collected together including plastics, glass, metals, and paper. Composting food scraps are collected to minimize waste. Scrap all scrap materials; steel, aluminum and bronze are sent to a scrap metal recycling facility. Electronics Recycling both personal and company computers, printers, printer cartridges and light bulbs are collected to be recycled or refurbished. Waste Oil & Batteries are collected to be properly disposed of. 3
Sustainable Products Aerzen has always had a degree of involvement with blower system controls. Early control adaptions to the blower system included basic monitoring devices to ensure that the customer did not operate the machine outside of the intended range of operation and to prevent the machine from misuse that might result in costly damages. In 2016 we took this a step further, launching a separate controls business to optimize processes, maximize operational longevity and ensure peak operational efficiency for overall reduced operational costs. Aerzen s basic blower controller monitoring systems, the AERtronic and Turbo LCP provide the operator with monitoring and protection for the system s critical operating parameters and a preventive and predictive maintenance monitoring system that will alert the operator for service items. The overall intent of the basic blower controller is to maximize reliability and longevity of the blower system. Maximizing the life cycle of the blower reduces the impact of the machine s carbon footprint and allows the customer to maximize the use of the equipment capital purchase. These monitoring systems are available with new equipment sales or can also be retrofitted on existing machinery. air as a safe method of always satisfying the biological process. Inefficient control and over aeration of this process can cost the average size plant thousands of dollars each month. Aerzen has developed unique algorithms used in the AERprocess controller that target the airflow requirement necessary to achieve the dissolved oxygen set point for the optimization of the biological process. These methods are very unique since the biological process itself is not a steady state or a linear reaction. The output of the aeration blower or blowers is adjusted to match air flow requirement of the biological demand and the air is distributed to each aeration zone by a method call Most Open Valve. The targeted airflow calculation combined with the distribution method minimizes operating pressures, optimizes the biological process and produces air only as needed by the process. Typical installations have multiple machines to achieve the flow or pressure requirements necessary for the process air. The method in which the machines are started, stopped, and sequenced can have a drastic impact on the overall power consumption and efficiency of the process. Aerzen developed the AERsmart controller to optimize the operation of a group of machines to achieve the process airflow or pressure requirement at the lowest possible kilowatt consumption for that group of machines. Because different machines have different optimal operating ranges at different flows and pressures, Aerzen can use their inherent knowledge of the machines and advanced monitoring system to determine and operate in the range of peak efficiency. Aerzen provides a considerable number of blowers for wastewater applications. The air is pressurized, diffused and a portion of that air is dissolved into the wastewater. The dissolved air is required for the living bacteria that is used to break down the carbon chains or food that is present in the wastewater. This process is a unique chemical and biological reaction. This process typically consumes 50-60% of the electrical power used at a wastewater plant. Most plants over aerate or produce too much Aerzen offers multiple control technologies for energy efficiency 4
Local Communities We spend time and resources each year giving back to the local and regional community through supporting student career days, teacher workshops, and apprenticeship programs. In 2016 students from Oxford Area High School partnered with Aerzen USA in Pennsylvania s Dream It Do It video contest. The students worked with Aerzen USA employees to create a video profile of the company and the career opportunities offered there while showcasing what s so cool about manufacturing. The video won the viewer s choice award. Students visited Aerzen USA to create a video on What s So Cool About Manufacturing? Aerzen USA participates in various student career days with local area high schools. The three hour program highlights careers in engineering and production, a resume building workshop and an opportunity for a mock interview with human resources. Additionally, Aerzen USA holds workshops for STEM teachers to show how STEM related topics are prevalent within the organization. Teachers are also offered scrap materials to take back to the classroom to demonstrate STEM in action. Aerzen USA partners with the Manufacturing Alliance of Chester County and Delaware County, the Technical College High School, and the Delaware County Community College in providing a career pathway program for High School students and also incumbent workers. There is an apprenticeship program for TCHS students participating in the program who have the opportunity to begin a co-op and internship at Aerzen USA beginning in tenth grade, all the way to twelfth grade while also earning Associate s Degree credits. This program comes with the commitment to continue on the job training working at Aerzen after high school graduation while also attending post-secondary school at Delaware County Community college. Students benefit while getting real work life experience at a manufacturing facility and the opportunity to obtain an associate s degree with minimal cost to the trainee. In addition to the programs highlighted above, several of our employees volunteer their time as advisors or committee members to the following organizations: Manufacturing Alliance of Chester County Octorara Area Career and Technical Education Programs Vista 2025 Advisory Team Delaware County Intermediate Unit Advisory Committee Delaware County Community College Manufacturing and Advance Technology Advisory Committee Delaware County Community College Apprenticeship Advisory Board 5
People Development Aerzen USA s family values highlight the importance of our people. Investing in the development of our employees for their individual and corporate success, we believe our employees are at the heart of our company. Each year, each employee creates a Personal Development Plan (PDP) with their manager outlining short term and long term goals as well as an action plan and timeline to achieve these goals. The PDP helps employees identify what goals they want to achieve, what strengths they already have to achieve these goals and areas where improvement is needed. Based on this assessment, each employee has access to a database of trainings and tools to learn new skills needed to achieve their goals and advance their career. The new Learning system combines personal development plans with education Additionally, Aerzen USA is in the process of implementing a Learning Management System to integrate the documentation and tracking of performance plans while delivering the necessary training and education. The Learning Management System will track goals and completed trainings and allow employees to know how to transition to the next role or position within the company. Our employees health and safety are of utmost importance to Aerzen USA. In 2016, our total reportable OSHA incidents was zero and to date the company has surpassed over 630 days without incident. Our safety committee is comprised of two managers and eight employees meeting monthly to ensure current procedures are properly followed and new protocols are being constantly evaluated. In 2016, 24 safety suggestions were implemented as a result of employee trainings and monthly gemba walks. Our safety strategy will expand current practices into the new building to ensure Aerzen USA continues without any safety incidents. Similar to last year, Aerzen USA continues to invest in leadership trainings, lean trainings and safety trainings for all employees. In 2016, Aerzen USA was chosen as one of the best places to work in Pennsylvania. Aerzen USA President, Tony Morris accepts the Best Places To Work In PA award 6
Conclusion Construction of the additional space for the Aerzen USA facility. Aerzen USA s drive to be a socially responsible and environmentally friendly company stems from our commitment to customers, employees and the communities around us. As a result we ve reduced the amounts of resources we consume and the waste we produce. Looking ahead to 2017, we will continue to work with our stakeholders to identify material issues that are most important to them ensuring we mitigate risk while capitalizing on opportunities. One policy we are planning to encourage in the 2017 year is a Volunteer Time Off (VTO) day for each employee. Employees can schedule their VTO day individually or as a group to volunteer time within the local community. We look forward to furthering our Triple Bottom Line journey and expanding our sustainability objectives to continue to meet higher standards of transparency, accountability and performance. 7
HIGHER STANDARDS OF TRANSPARENCY & ACCOUNTABILITY Aerzen USA Testing Facility Aerzen USA 108 Independence Way, Coatesville, PA 19320 Phone (610) 380-0244 Fax (610) 380-0278 www.aerzenusa.com Aerzen USA Sustainability Report 2017