Presentation given by IIP for the eceee Industrial Summer Study in Arnhem, Netherlands

1. PromoHng
Energy
Savings
and
GHG
MiHgaHon
through
Industrial
Supply
Chain
IniHaHves
eceee
Industrial
Summer
Study
September
14,
2012,
Arnhem
Amélie
Goldberg,
Julia
Reinaud,
Emelia
Holdaway,
Siobhan
O’Keeffe
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

2. Purpose
and
IntroducHon
Supply
chain
iniHaHves
a
promising
means
to
achieve
energy
and
climate
goals
among
a
number
of
disparate
businesses
and
across
naHonal
borders
Benefits
for
buyers
• Can
extend
exisHng
CSR/sustainability
efforts
if
they
are
able
to
exert
significant
leverage
with
their
industrial
suppliers
• Many
are
sHll
not
exploiHng
opportuniHes
fully
Benefits
for
suppliers
• Energy
savings,
producHvity
improvements,
co-­‐benefits
• Secure
long-­‐term
contracts
with
buyers
and
aUract
new
buyers.
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

3. Ten
SCIs
profiled
…
to
explore
a
range
of
approaches,
industrial
sectors
targeted
and
global
reach
1. Walmart
2. Ford
3. Prorail
4. Suzhou
Energy
Efficiency
Star
scheme
5. IKEA
6. SKF
7. BriHsh
Gypsum
8. General
Electric
9. BASF
10. Home
Depot
and
Intertek’s
Think
Green
IniHaHve
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org
iipnetwork.org/databases/supply-­‐chain

4. Key
Types
of
Supply
Chain
IniHaHves
Type
DescripHon
ExisHng
Examples
Mandatory
The
buyer
requires
the
supplier
to
comply
with
set
criteria.
Ford,
SKF
performance
requirements
Purchasing
approaches
Buyer
develops
procurement
policies
whereby
suppliers
score
higher
or
ProRail
CO2
Performance
lower
or
are
advantaged
or
disadvantaged
in
the
procurement
process
Ladder
Repor;ng
and
Suppliers
must
report
their
emissions
or
energy
use
to
their
buyers.
BASF
monitoring
Subsidised
audits
On-­‐site
audits
(full
or
parHally
funded
by
the
buyer)
to
determine
a
supplier's
Walmart,
IKEA
GHG/energy
performance.
Capacity
building
and
Training,
workshops,
implementaHon
support
and
other
measures
to
General
Electric,
Walmart
implementa;on
improve
suppliers’
ability
to
implement
energy
efficiency
projects
and
support
improve
their
performance.
Supplier
forums
or
Conferences,
meeHngs,
webinars
or
online
forums
where
buyers
can
Walmart,
Intertek
(Home
coali;on
communicate
prioriHes,
and
suppliers
can
ask
quesHons,
receive
feedback
Depot)
and
share
best
pracHce
amongst
themselves.
Labeling
Labeling
of
energy
performance
as
an
informaHonal
tool
for
buyers.
Suzhou
EE
Star
Program
External
facilita;on
Plaiorms
that
help
connect
or
match
GHG/energy
performance
of
suppliers
Intertek
(Home
Depot)
tools
with
buyers'
interests
or
criteria.
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

5. Examples
of
case
studies
General
Electric
• “Integrity
Program”,
onsite
audits
and
“Treasure
Hunts”
• Local
training
programs
and
supplier
summits
in
partnership
w
ISC,
WBSCD,
Guandong
Academy
IKEA
• IWAY
code
of
conduct
for
suppliers
with
regular
on-­‐site
audits
• WWF
collaboraHon
on
a
‘Developing
Climate
PosiHve
OpportuniHes
for
Suppliers’
The
Home
Depot
• Works
through
Intertek’s
TGI
–
on-­‐site
assessments,
idenHficaHon
and
implementaHon
of
EE
measures
SKF
• Supplier
cerHficaHon
of
ISO
14001
(and
recently
ISO
50001
announced)
• Energy
Challenge
and
Energy
Excellence
awards
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

6. Impacts
of
selected
examples
GE
• Between
2009
and
2011,
the
supplier’s
carbon
emissions
fell
by
19%,
through
energy
saving
measures
and
facility
upgrades
following
its
audiHng
and
capacity
building
programme.
IKEA
• Under
the
IKEA-­‐WWF
partnership,
supplier
reduced
GHG
emissions
by
35%
between
2009
and
2010
through
furnace
upgrades
and
fuel
switching.
• Another
texHle
supplier
in
Bangladesh
idenHfied
and
implemented
a
number
of
efficiency
measures
in
2011
that
reduced
energy
consumpHon
by
29%
and
cut
CO2
emissions
by
25%.
Intertek
(Home
Depot)
• TGI
program
cost
US$43,500
(paid
by
the
suppliers),
and
achieved
overall
cost
savings
of
over
$US3
million.
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org
iipnetwork.org/databases/supply-­‐chain

7. Some
Lessons
learnt
Procurement
and
contractual
arrangements
can
encourage
suppliers
more
fully
InternaHonally
recognised
tools
Partnership,
fostering
trust
and
implementaHon
support
MulH-­‐stakeholder
collaboraHon
including
third
party
involvement
QA,
transparency
and
verificaHon
–
external
plaiorms
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

8. Success
factors
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

9. Conclusions
and
Discussion
• Wide
diversity
of
approaches
and
new
models
emerging
• Many
are
in
early
stages
and
“learning
by
doing”
• Varied
transparency
&
verificaHon
approaches
• EnMS
(e.g.
ISO
50001)
and
other
internaHonally
recognised
tools
are
emerging
as
promising
tools
• Ouen
accompanied
by
MRV
support
to
substanHate
claims
• How
to
promote
ISO
50001
as
a
supply
chain
tool?
• What
role
for
governments?
(e.g.
Japan,
Netherlands)
• Extending
obligaHons
for
large
companies
to
take
acHons
across
the
supply
chain
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org

10. Thank
you
Industrial
Supply
Chain
IniHaHves
Database:
www.iipnetwork.org/databases/supply-­‐chain
In
collaboraHon
with
Ecofys
UK.
Amelie
Goldberg
Amelie.goldberg@iipnetwork.org
Julia
Reinaud
julia.reinaud@iipnetwork.org
Emelia
Holdaway
(previously
with
Ecofys
UK)
Siobhan
O’Keeffe
(previously
with
Ecofys
UK)
Sharing
best
pracHces
for
the
low
carbon
future
|
iipnetwork.org