Social and Environmental problems from a local and global perspective

Transcription

1 Social and Environmental problems from a local and global perspective How to choose key social and environmental problems which my organisation should respond to

2 In other words. WHERE DO WE START?

3 Our Mission as Business Community Maximise Production under constraint

4 Constraints are offsprings of risks (and forefathers of liabilities) A number of risks have converged to awaken us Energy Cost Pressure Sustainability and Legislation Security Manage Energy We can t control these risks But we can control how much energy we use

5 What are your broad strategies to fulfill your energy needs?

6 Five Strategies to Fulfillment of Energy Needs 1. Do nothing 2. Remix (develop non-emitting alternatives and switch off emitting) 3. Technology play on fossil fuels 4. Offsets carbon projects 5. Efficiency

7 What are the key ingredients of Energy Management?

8 DuPont s view of Sustainable Operations Sustainable Operational Excellence Workplace Safety Operations Risks Management Capital Effectiveness Environmental Management Asset Productivity Operating culture

9 DuPont s view of Sustainable Culture Workplace Safety Operations Risks Management Sustainable Operational Excellence Capital Effectiveness Sustainability Management Processes and Actions (Capabilities) Asset Productivity Structure (Organization) Leadership (Strategy, Goals) The System is rooted in PEOPLE and CORPORATE CORE VALUES and built on the following key elements: Strong Leadership Appropriate Organizational Structure Effective Management Systems Focused Processes and Actions The principles, and the system for realizing them, form the best practice reference model against which we implement change

10 Management processes that define, measure and drive systematic improvement. Leadership Vision & Policy Goals and metrics Standards and Procedures EXECUTIVE MANAGEMENT Performance Mgmt & Line Accountability Technicall resources and Networks Integrated Organisation & Planning LOCAL OPERATING UNITS/PROJECTS Motivation, and Awareness activities Performance Trends & Investigation System and Management Audits Communication of procedures and setting expectations Learning from incidents and Off track performance PEOPLE BEHAVIOURS Training and Development Monitoring, Observations and Project reviews

11 Our 2015 Sustainability Goals Reducing Environmental Footprint Greenhouse Gas Emissions Water Conservation Fleet Fuel Efficiency Air Carcinogens Independent Verification of Site Programs Serving the Marketplace Environmentally Smart Market Opportunities from R&D Efforts Products that help Reduce Greenhouse Gas Emissions Revenues from Non-Depletable Resources Products that help Protect People

12 Real World Examples Turning Waste into Revenue Challenge Global objective: all DuPont Corian plants achieve zero waste to landfill by Solution Buffalo, NY, plant instituted programs to reuse, reduce and recycle Corian byproducts: In 2007, discovery of creative way to reuse material to create a new offering, the Terra Collection Product line that contributes to LEED credits. Donation of slightly off-color Corian sheets (bound for the landfill) for construction of interactive children s hospital playrooms. Results $4 million in sales of Terra Collection in 2008 with continued growth $7 million/year cost savings to the business Achieved with zero capital investment

13 Real World Examples Improving Energy Efficiency Challenge Sabine River Works, which consumes 15% of the energy used by DuPont, wanted to reduce the site s energy use, consistent with the company s long-term energy goals. Solution Implemented over 55 projects, many utilizing Six Sigma methodology. Improved the reliability of steam supply to a key process area, which reduced wasteful forced outages Improved key process equipment, including a large steam turbine - Corrected metering problems with purchased energy - Made repairs and improvements to steam traps Results Reduced energy consumption by 20% from a 2000 baseline (Equivalent of heating 257,000 homes for one year) $100 million cost savings over 5 years

14 Real World Examples Reducing Energy Demand and Greenhouse Gas Emissions Challenge The Solae Ieper plant in Belgium, which produces isolated soy protein (ISP) through a highly energy-intensive process, faced rising energy prices. Solution Included 3 independent projects: Installation of cogeneration biogas engine New process for soy fiber processing - Reduces the energy requirement for the drying process - Results in lower carbon emission from the dryer s natural gas burner Contracted for wind-generated electricity from a nearby wind farm Results 15% reduction in annual CO 2 emissions $2.9 million annual savings

15 Growth and Energy Consumption Decoupled Total Energy Consumption, Trillion Btu Global Energy Use in Trillion Btu, Flat Energy Use Goal Rest of Company Top Plants Top 20 Plants Energy use: - 21% since 1990 Production: + 47%, $5 Billion energy costs avoided Year

16 Business Case: Energy DuPont DuPont s goal is Sustainable Growth We spend $1Billion+ annually on energy Bottom line: We cannot remain competitive or meet our corporate sustainability goals unless our plants become highly energy efficient 3-Year Plan Annual site energy plans with specific goals Overall target of 15% reduction in energy use (3 years) Capital made available for energy projects having >25% IRR Sites delivered $48MM in energy savings in 08 ~5% Mostly low cost fix up/tune up kinds of improvements Very attractive financials, overall.

17 Progress Toward Goals Footprint Goals Reduce Greenhouse Gas Emissions Progress: Overall, down 8.5 %since This represents 56% of goal. Fleet Fuel Efficiency Progress: 39% of current U.S. vehicles are using leading technology. This represents 39% of goal. Reduce Air Carcinogens Progress: Down 50% overall. This represents 100% of goal. Global Manufacturing Sites Verification of Environmental Management Goals Progress: 53% of sites are ISO Certified. This represents 53% of goal Reduced Water Consumption Progress: Sites in stressed areas up 7% Total water consumption is down 2% Market Facing Goals Increase R&D Investment Progress: $570 Million invested in 2008 Goal is set at $640 million Increase Annual Revenue Buy at least $2 billion from products that create energy efficiency or reducing greenhouse gas emissions Progress: $108 million in revenues Nearly double revenues from nondepletable resources to at least $8B Progress: Revenues increased to $6.8B Introduce 1,000 New Products and Services to help make people safer and more secure Progress: Introduced 371

18 Serving the Marketplace: Environmentally Smart Solutions DuPont Tyvek HomeWrap DuPont Energain Photovoltaics DuPont Nomex in windmills Fuel Cells

19 Critical Success Factors 1. Vision Clearly Defined by Leadership at the Top 2. An Implementer Linda Fisher DuPont Chief Sustainability Officer Ellen Kullman DuPont CEO 3. Set Public Goals/Metrics so Everyone Can Measure Progress 4. Organizational Engagement and Culture Transformation 2015 Sustainability Goals 5. Corporate Environmental Planning Process (CEP) Integrated with Strategic Business Planning Process 6. Implementation Excellence 7. Recognize Key Programs and Accomplishments Sustainable Growth Excellence Awards 8. Form Relationships

20 Five Strategies to Fulfillment of Energy Needs 1. Do nothing 2. Remix (develop non-emitting alternatives and switch off emitting) 3. Technology play on fossil fuels 4. Offsets carbon projects 5. Efficiency: 1. Own Efficiency 2. Demand management (industrial and consumer) Good for stakeholders 3. Technology Play 5. Energy Efficiency 2. Remix 1. Do Nothing Good for Shareholders

21 Three key questions to get started 1. How do you know every of reduction goes to the opportunity that gives most benefit? 2. Do you have a centralised or diffused decision making process? 3. How do you sustain your cultural change?

22 For more information on DuPont Sustainable Solutions, please visit Federico Merlo Business Development Director EMEA Tel

23 Energy Strategies But what kind of sustainable innovation? Source: McKinsey and 46 Vattenfall

24 Energy Strategies But what kind of sustainable innovation? Source: McKinsey and 46 Vattenfall

25 Energy Strategies But what kind of sustainable innovation? Source: McKinsey and 46 Vattenfall

26 World abatement of energy-related CO 2 emissions in the 450 Scenario (1) Gt Reference Scenario 13.8 Gt 3.8 Gt 450 Scenario Share of abatement % Efficiency End-use Power plants 6 5 Renewables Biofuels 1 3 Nuclear CCS 3 10 Efficiency measures account for two thirds of the 3.8 Gt of abatement in 2020, with renewables contributing close to one fifth (1) 450 Scenario: stabilisation of concentration of GHG at 450 parts per million

27 which also won awards and accolades by both public and private bodies 1995: Australia s prestigious Banksia Award 1996: Identified by BTI Consulting Group as best US company for environmental management 1995: Most admired in environmental/community responsibility amongst the chemical/petrochemical industries of all companies in Brazil 2001: National Industrial Waste Minimization Excellence Award from Taiwan s Ministry of Economic Affairs 2000: #1 in social responsibility in survey of America s Most Admired Companies CERES REPORT RANKS DUPONT #1 IN US, #2 GLOBALLY, ON CLIMATE CHANGE (2006) US BUSINESS WEEK RANKS DUPONT #1 OF THE TOP GREEN COMPANIES (2006) 2002: Singapore s prestigious Health Gold Award 2002: American Greenways Award for efforts in land conservation (jointly administered by The Conservation Fund & National Geographic Society) Ranked 7th in the U.S. EPA s recently updated Top 25 list that highlights the largest national green power purchasers in its Green Power Partnership.13 Recognized by Coalition of Government Procumbent (CGP) for overall commitment to the environment

28 DuPont s Approach to Implementing an Effective and Sustainable System Involves Focusing on the Organization to Establish a Managing Process That Drives Improvement Assess the Current State Envision the Future State Plan the Transition Implement the Changes Sustain & Improve Corporate SBU Assess capacity of organization to accelerate environmental performance and manage components as business critical items Build vision of integrated corporate environmental planning system Ensure strategic alignment and establish accountability Ongoing management of decision making processes across SBU s and throughout the line organization Alignment, accountability, resource allocation, review & communication Develop specific Business Unit vision to meet Corporate vision Ensure strategic alignment and establish accountability Ongoing management of decision making processes throughout the line organization Site Project Plan Communication Plan Understand Program Elements Identify Constraints & Opportunities Detailed Analysis Business Decisions & Implementation Communicating Assessment Outcomes Review performance plan Project Management Site Implementation

29 DuPont Approach - Driving Sustainable Operations Successful, sustainable growth is rooted in core-values, top-down driven by leadership commitment, aligned with business objectives and embedded across the entire organization and culture. Strategic Intent: How Value will be Delivered Corporate Core Values Leadership, Vision, Goals, Policies, Organization & Culture Executable Strategy: Strategy & Baselines, Targets and Initiatives Roadmap to Improve Environmental and Describes how Social Performance improvements will be made, measured & sustained Operational Integration: Driving Growth, Innovation and Efficiency through the Sustainable Enterprise Governance, Infrastructure, Reporting, and Compliance: Telling the Right Story the Right Way Growth & Innovation Initiatives Presents a view of the current and target technology aligned with strategic direction Operational & Efficiency Initiatives Presents an assessment of process capabilities and an approach for process improvement Compliance & Reporting Initiatives improve metrics, reporting, compliance, verification and repeatability Sustainability & SHE Management Systems Sustainable Culture Skills & Processes in Operations Management & Large Projects Stakeholders Engagement