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

(1)

Energy Management Certification – A way forward to Sustainable Business

Launch of a series of Standards in Support of SS 50001 on Energy Management System

22nd_{May 2015}

Ram M. Desai,

(2)

2 Bureau Veritas – Presentation of ISO 50001

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 50001

(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 2500+ years of known human history

► Equation:

Modernisation = Energy Requirement

Increasing Population ∝ Demand ∝ Increased Energy Req. Increased Energy Requirement ∝ Resource depletion

Resource Depletion ∝ Sustainable Development

Revolution in Transportation _{Revolution in Road Construction}

(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 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 •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.

(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 2024. The Secretary General provided a compelling rationale for SE4ALL in his announcement of the new program.

(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.

(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

(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 14001

► Specify requirements for establishing,

implementing, maintaining, and improving an energy management systems

(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

(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.

(13)

Some benefits from ISO 50001 (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

(14)

Some benefits from ISO 50001 (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

(15)

Some benefits from ISO 50001 (3/3) … and of course cost savings!

Savings depends on the activity and maturity of the company to

manage its energy consumption

(16)

The weight of Energy savings compared to other technologies

(17)

Lifecycle of an energy saving

Management systems gather the comprehensive and systemic approaches to unlock Energy savings

► Facilities and processes

 Buildings (residential and

commercial)

 Industrial processes  Transportation

► Behaviors

Key levers for energy savings

Global CO2 emissions forecast, GtCO2 / year

Measure Identification Planning Acting _{Need for a systemic approach}

Need for a comprehensive approach

Energy Management Systems offer a structured and comprehensive approach for

(18)

Why would organizations invest in Energy Management? Ask Dow Chemical’s $4Bn bottom line

► One reason : Energy is the 1st_{operating expenditure,} global competitors access cheaper energy

► Goal in 1994 : Improve energy use by 20% by 2005. ► Results

 Reduction of overall energy intensity by 22% in 2005.  More than $4 billion saved in end 2005

► $57,5 Bn Sales in 2008 ► $579 M Net income in 2008 ► Over 45,000 employees ► Main Products:  Plastics  Chemicals  Agriculture Chemicals

How could this happen ?

► Assessment of Plants Energy Performance ► R&D on new processes ► Investments in new facilities ► Measurement and

continuous improvement

Chemicals is the most Energy intense industry

Energy Efficiency is a strategic lever to remain competitive

(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 2009. 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 2015. • Implementing Tech. Advancement •Continuous monitoring •Influencing occupiers • Transformation in Building Management Practices

(20)

(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  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

►To date no accreditation program existing

 ANAB accreditation starting  Bureau Veritas part of the pilot

Certification Bodies. Processed developed around ISO 17021

(22)

Our capabilities in ISO 50001

► Bureau Veritas Certification performs  ISO 50001 training

 ISO 50001 certification

► Bureau Veritas performs  Energy audits

 Metering services

 Green building advisory services

(23)

BV references for ISO 50001 training and certification

Non exhaustive list

Field of activity Client

PHARMA NOVO NORDISK DIABETES

Denmark

PROCESS / CHEMICALS

AIR LIQUIDE DANMARK Denmark

HELIOPLAST D.O.O. Croatia

Saint-Gobain Construction Product Czech Republic

SERVICES SCHINDLER SPA

Italy

TELECOM BOUYGUES TELECOM

France

TOURISM ATLANTIS PALACE Dubai, UAE UTILITIES COFELY FRANCE, SPAIN WATER SERVICES VEOLIA FRANCE IT SERVICES IBM USA

Field of activity Client

AUTOMOTIVE

Opel Wien AUSTRIA THAI YAMAHA MOTOR

THAILAND

HUTCHINSON THAILAND HAYASHI TELEMPU CO

THAILAND

ELECTRONICS SCHNEIDER LIMITED

THAILAND

GOVERNMENTS & PUBLIC ORGANISATIONS GartneriRådgivningen DENMARK INDUSTRIAL EQUIPMENT MANUFACTURERS IMTECH CONTRACTING GERMANY Nexans Deutschland GERMANY 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 ).

(24)

(25)

Our Activity : QHSE-SR Compliance

Reference Standard Action Deliverable

Assessment

Full Independence

from any

Design / Manufacturing / Contracting / Insurance

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

(26)

Extensive geographic footprint

Americas (19% of revenue*)

 200 locations

and 100 laboratories  10,800 staff

 30 countries

Over 50,000 employees in a global network comprising more than 900 locations and 330 laboratories across 140 countries

• Europe – excluding France • Middle-East • Africa Asia-Pacific (27% of revenue*)  210 locations and 110 laboratories  16,700 staff  22 countries France (21% of revenue*)  160 locations and 10 laboratories  7,400 staff EMEA (1)_{(33% of revenue*)}  360 locations and 110 laboratories  13,100 staff  87 countries

(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

Over

5,700

highly trained and experienced auditors

Recognized by more than

40

national and international accreditation bodies A

wide range

of certification and auditing solutions

(28)

Bureau Veritas Certification portfolio

► ISO 9001, ISO 14001, OHSAS 18001, EMAS…

 2nd_{party audits and customized audit solutions}

 Corporate Responsibility and Sustainable Development

 QHSE Management System Certifications

 Sector- Specific Solutions and Management Systems

 Supply Chain and Risk Management Solutions

 Training and certification of personnel/competencies

► Automotive, Aerospace, Railways, Food, Medical, Cosmetics, Oil & Gas, IT, Telecom…

► ISO 27001, ISO 28000, BS 25999, ISO 31000…

► SA8000, ASR, CAP 26000, ISO 50001… ► CDM/JI, EU ETS, Carbon Footprint…

► Development of audit programs and certification schemes

► IRCA training, all kinds of Management systems mentioned above

Forestry & Timber

► FSC

► PEFC

► Legal Timber _Sustainable

development

Sustainability & Climate change Portfolio

► Verification of Sustainability reports ► Carbon Disclosure Project Social accountability ► ISO 26000 ► SA 8000 Resource management ► ISO 50001

► Marine & Aquaculture Stewardship Council

► Biomass and biofuels sustainability.

► CDM ► JI ► EU ETS ► GIS Kyoto Protocol (UNFCCC) and regulated trading Voluntary schemes ► VCS Carbon footprint ► ISO 14064 ► PAS 2050