22 nd May Ram M. Desai, Certification Manager / Local Product Manager - Climate Change Services (SEA-Region) - Copyright Bureau Veritas

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1 Energy Management Certification A way forward to Sustainable Business Launch of a series of Standards in Support of SS on Energy Management System 22 nd May 2015 Ram M. Desai, Certification Manager / Local Product Manager - Climate Change Services (SEA-Region)

2 Agenda Part 1 : Relationship Between Energy and Sustainable Development Part 2 : Energy Management System Certification Leveraging Sustainable Business Part 3 : Technical insight Bureau Veritas Certification Approach Bureau Veritas capabilities in ISO Introduction to Bureau Veritas & Speaker 2

3 Part 1 : Relationship Between Energy and Sustainable Development

4 Energy Primary Resource for Economic Growth Modernisation / Industrialisation Process More was created in the last 250+ years than in the previous years of known human history Revolution in Transportation Revolution in Road Construction Equation: Modernisation = Energy Requirement Increasing Population Demand Increased Energy Req. Increased Energy Requirement Resource depletion Resource Depletion Sustainable Development Revolution in Agriculture 4

5 Energy Primary Resource for Economic Growth World Energy Scenario Modern energy services are crucial to human well-being and to a country s economic development. Access to modern energy is essential for the provision of clean water, sanitation and healthcare and for the provision of reliable and efficient lighting, heating, cooking, mechanical power, transport and telecommunications services. It is an alarming fact that today billions of people lack access to the most basic energy services. Energy Outlook 2014 shows nearly 1.3 billion people are without access to electricity and 2.7 billion people rely on the traditional use of biomass for cooking, which causes harmful indoor air pollution. These people are mainly in either developing Asia or sub-saharan Africa, and in rural areas. Energy costs are expected to increase, and the impact of these increases on operating budgets underscores the need for industries to develop energy management plans (EPA 2008). An energy management plan can help industries to control and reduce energy costs. According to some estimates, industries can achieve between 10% and 30% savings through such a plan Step 1. Establish a utility commitment Step 2. Establish a baseline Step 3. Identify opportunities for improvement Step 4. Evaluate and quantify changes Step 5. Implement changes Step 6. Evaluate and track progress Step 7. Communicate and promote success 5

6 Why ENERGY has become focus? UN General Assembly declared the International Year of Sustainable Energy for All, in 2012 with three global objectives to be accomplished by 2030: 1. to ensure universal access to modern energy services, 2. to double the global rate of improvement in global energy efficiency, and 3. to double the share of renewable energy in the global energy mix. At the end of 2012, the UN General Assembly announced a Decade of Sustainable Energy for All stretching from 2014 to The Secretary General provided a compelling rationale for SE4ALL in his announcement of the new program. 6

7 Contribution of Singapore in Energy Efficiency and Sustainability As a small city state without any significant energy resources, Singapore has always been dependent on imports of oil and natural gas to meet the energy needs With rising energy prices and unpredictable supply disruptions, energy efficiency has become increasingly important to decrease its dependence on energy imports and enhance energy security. Singapore has developed national energy policy framework, targeting to reduce its energy intensity by 35% from its 2005 levels by 2030 and also pledging to cut back on carbon emissions by 16% from 2020 business-as-usual levels. To encourage businesses to invest greater management attention and resources in energy efficiency, the National Environment Agency (NEA) has been working with the relevant agencies through the Energy Efficiency Programme Office (E2PO) to design and implement energy efficiency programmes in each of the sectors of energy use, namely, power generation, industry, transport, buildings and households. 7

8 Sustainable Business Sustainable business, or green business, is an enterprise that has minimal negative impact on the global or local environment, community, society, or economy a business that strives to meet the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies. In general, business is described as green if it matches the following four criteria: It incorporates principles of sustainability into each of its business decisions. It supplies environmentally friendly products or services that replaces demand for nongreen products and/or services. It is greener than traditional competition. It has made an enduring commitment to environmental principles in its business operations. 8

9 Part 2 - Energy Management System Certification Leveraging Sustainable Business

10 ISO 50001:2011 Energy Management System The request to ISO to develop an international energy management standard came from the United Nations Industrial Development Organization (UNIDO) which had recognized industry s need to mount an effective response to climate change and to the proliferation of national energy management standards. International standard Published on 15 June 2011 Expected to influence up to 60% of the world s energy use by energy planning and efficiency Compatible to ISO 9001 and ISO Specify requirements for establishing, implementing, maintaining, and improving an energy management systems 10

11 ISO 50001:2011 Energy Management System Applicable for all kinds of organizations both large and small (e.g. SME) both public and private sectors, both manufacturing and services Establish a framework to manage energy in a systematic Manner for - industrial plants - commercial, institutional, governmental facilities 11

12 The underlying philosophy behind EnMS certification program Certification Programs are based on the Following Philosophy CONTNUAL IMPROVEMENT COMPLIANCE ASSURANCE & EFFECTIVENESS Energy Management System Certification can provide following benefits to organization and helps in achieving Sustainability in the business. 12

13 Some benefits from ISO (1/3) Reduced greenhouse-gas (GHG) emissions and carbon footprint. Compliance with this standard will allow you to meet current or future voluntary and/or mandatory energy efficiency targets or GHG emission reduction legislation. Increased energy cost savings - by reducing energy costs via a structured approach in managing energy consumption and needs. Increased knowledge of equipment efficiencies. Informed decision-making processes from system design to operation Increased energy awareness among staff members at all levels. Structured approach to the Right First Time methodologies Improved corporate image and credibility with all stakeholders and customer Enhanced security of energy supply as you will have identified your energy risk exposure in areas within the organisation and commenced processes to reduce them Improved operational efficiencies and maintenance practices 13

14 Some benefits from ISO (2/3) Objective and exhaustive vision on energy uses and consumption Understanding of energy consumption and other impacting variables Direct : Controllable and non controllable Indirect : Controllable and non controllable Projection of future consumption and list of savings opportunities future improvements = future investments? Hierarchy of energy uses and consumption to focus effort Establish a baseline and have a close monitoring of operations Framework for continuous improvement and savings Communication and motivational lever for staff, specific competence in place Reporting tool for stakeholders and proof of commitment for sustainability 14

15 Some benefits from ISO (3/3) and of course cost savings! Savings depends on the activity and maturity of the company to manage its energy consumption 15

16 The weight of Energy savings compared to other technologies Global CO2 emissions forecast, G.tons CO2 / year 16

17 Management systems gather the comprehensive and systemic approaches to unlock Energy savings Global CO2 emissions forecast, GtCO2 / year Key levers for energy savings Facilities and processes Buildings (residential and commercial) Industrial processes Transportation Behaviors Need for a comprehensive approach Energy Management Systems offer a structured and comprehensive approach for improving energy efficiency Lifecycle of an energy saving Measure Identification Planning Acting Need for a systemic approach 17

18 Why would organizations invest in Energy Management? Ask Dow Chemical s $4Bn bottom line One reason : Energy is the 1 st operating expenditure, global competitors access cheaper energy Goal in 1994 : Improve energy use by 20% by Results Reduction of overall energy intensity by 22% in More than $4 billion saved in end 2005 Chemicals is the most Energy intense industry Energy Efficiency is a strategic lever to remain competitive How could this happen? Assessment of Plants Energy Performance R&D on new processes Investments in new facilities Measurement and continuous improvement $57,5 Bn Sales in 2008 $579 M Net income in 2008 Over 45,000 employees Main Products: Plastics Chemicals Agriculture Chemicals 18

19 Why would organizations invest in Energy Management? British Land Saved 3m on energy bills Over the past three years a leading commercial property company has cut carbon emissions by 24,500 tonnes and saved occupiers more than 3m on energy bills. British Land set itself a three-year target to cut landlord-influenced energy use by 20%. Instead, it achieved a 27% reduction in 2012, compared with These reductions were made by improving the energy management of its buildings and exclude its new sustainable developments and refurbishments. Given this success, the company is now looking for a 40% energy reduction by Implementing Tech. Advancement Continuous monitoring Influencing occupiers Transformation in Building Management Practices Initiating Sustainable Design 19

20 Part 3 : Technical Insight

21 Bureau Veritas Certification Approach Definition of certification scope Pre-audit (optional) Certification audit in 2 stages: Stage 1: readiness review performed to verify that the organization is ready for certification To date no accreditation program existing ANAB accreditation starting Bureau Veritas part of the pilot Certification Bodies. Processed developed around ISO Stage 2: evaluation of implementation, including the effectiveness of the organization s management system A certificate valid for 3 years Surveillance audits annually Re-certification after 3 years 21

22 Our capabilities in ISO Bureau Veritas Certification performs ISO training ISO certification Bureau Veritas performs Energy audits Metering services Green building advisory services 22

23 BV references for ISO training and certification Non exhaustive list Field of activity Client Field of activity Client PHARMA NOVO NORDISK DIABETES Denmark Opel Wien AUSTRIA AIR LIQUIDE DANMARK THAI YAMAHA MOTOR Denmark THAILAND PROCESS / CHEMICALS HELIOPLAST D.O.O. Croatia Saint-Gobain Construction Product Czech Republic AUTOMOTIVE HUTCHINSON THAILAND HAYASHI TELEMPU CO SERVICES TELECOM TOURISM UTILITIES SCHINDLER SPA Italy BOUYGUES TELECOM France ATLANTIS PALACE Dubai, UAE COFELY FRANCE, SPAIN ELECTRONICS GOVERNMENTS & PUBLIC ORGANISATIONS THAILAND SCHNEIDER LIMITED THAILAND GartneriRådgivningen DENMARK IMTECH CONTRACTING GERMANY WATER SERVICES VEOLIA FRANCE INDUSTRIAL EQUIPMENT MANUFACTURERS Nexans Deutschland GERMANY IT SERVICES IBM USA WEG BRAZIL All sectors are involved BV has achieved a leadership position in many countries, issuing the first certificate 1st certificate in many countries (India, Brazil, Spain, Italy, Turkey, UAE, Thailand and many others ). 23

24 A quick word on Bureau Veritas

25 Our Activity : QHSE-SR Compliance Bureau Veritas helps its clients to improve their performances by offering services and innovative solutions in order to ensure that their products, infrastructures and processes meet standards and regulations Quality Health Safety Environment Social Responsibility Reference Standard Action Deliverable Assessment Full Independence from any Design / Manufacturing / Contracting / Insurance 25

26 Extensive geographic footprint EMEA (1) (33% of revenue*) France (21% of revenue*) Asia-Pacific (27% of revenue*) Americas (19% of revenue*) 360 locations and 110 laboratories 160 locations and 10 laboratories 210 locations and 110 laboratories 200 locations and 100 laboratories 13,100 staff 7,400 staff 16,700 staff 10,800 staff 87 countries 22 countries 30 countries Europe excluding France Middle-East Africa Over 50,000 employees in a global network comprising more than 900 locations and 330 laboratories across 140 countries * 2010 revenues including Inspectorate over 12 months 26

27 Bureau Veritas Certification: N 1 worldwide Operating in over 100 countries More than 80,000 companies certified worldwide Provider of world-class companies Over 100,000 certificates delivered Recognized by more than 40 national and international accreditation bodies A wide range of certification and auditing solutions Over 5,700 highly trained and experienced auditors 27

28 Bureau Veritas Certification portfolio QHSE Management System Certifications Sector- Specific Solutions and Management Systems Supply Chain and Risk Management Solutions Corporate Responsibility and Sustainable Development 2 nd party audits and customized audit solutions Training and certification of personnel/competencies ISO 9001, ISO 14001, OHSAS 18001, EMAS Automotive, Aerospace, Railways, Food, Medical, Cosmetics, Oil & Gas, IT, Telecom ISO 27001, ISO 28000, BS 25999, ISO SA8000, ASR, CAP 26000, ISO CDM/JI, EU ETS, Carbon Footprint Development of audit programs and certification schemes IRCA training, all kinds of Management systems mentioned above Sustainability & Climate change Portfolio Forestry & Timber Social accountability FSC PEFC Legal Timber ISO SA 8000 Sustainable development Verification of Sustainability reports Carbon Disclosure Project Kyoto Protocol (UNFCCC) and regulated trading Voluntary schemes CDM JI EU ETS GIS VCS Resource management ISO Marine & Aquaculture Stewardship Council Biomass and biofuels sustainability. Carbon footprint ISO PAS