Embed Size (px)
DESCRIPTION
Sustainability leaders from Campbell Soup, Roche, BASF, Ingersoll Rand and the NJ Board of Public Utilities present business cases for how their “green” efforts resulted in significant short-term cost savings and Return-on-Investment (ROI). Presented at Fairleigh Dickinson University’s Jumpstarting the New Green Economy Conference, May 19-21, 2009.
Citation preview
The Business Case for Going Green—NOW!
Panel at Fairleigh Dickinson University’s Jumpstarting the New Green Economy
May 19-21, 2009 Jumpstarting the New Green Economy
May 19-21, 2009
Five Penn Plaza, 23rd Floor, New York, NY 10001 Phone 212.835.1601 www.hudsongain.comCopyright ©2009 Hudson Gain Corporation
Victoria Zelin, Hudson Gain Corporation, Moderator
Ron Reisman, Board of Public Utilities
Kevin Tubbs, Ingersoll Rand
Ed Madzy, BASF
Dave Stangis, Campbell Soup
Hugh Tole, Roche
Hudson Gain’s Evolution to Green
Assessment
Leadership Development
Performance Improvement
Sales Effectiveness
TalentAcquisition
TalentDevelopment
Executive Search
New Hire Integration
Recruitment Process Improvement
2
Sustainable Leadership
Staffing & Engagingfor the Green Economy
Succession Planning
Executive Outplacement
Organizational Change
The Hudson Gain CSO Research Study*
Going Green?
Don't Hire a Sustainability Chief Until You Read This Study!
The Role of the Chief Sustainability Officer in Corporations
3
* Available on Slideshare or contact [email protected] 908 306 0272
Thanks for joining us
Victoria ZelinSenior Vice PresidentSustainability Practice Leader
4 Copyright ©2009 Hudson Gain Corporation
Hudson Gain Corporation908.306.0272
Putting Energy Efficiency to WorkPutting Energy Efficiency to Workfor Your Businessfor Your Business
Jumpstarting the New Green EconomyJumpstarting the New Green EconomyFairleigh Dickinson UniversityFairleigh Dickinson University
May 20, 2009May 20, 2009
Office of the Business Energy Office of the Business Energy OmbudspersonOmbudsperson
nn LegislativelyLegislatively--mandated officemandated officenn N.J.S.A.N.J.S.A. 48:248:2--92 et seq.92 et seq.
nn Mission is “… to provide education andMission is “… to provide education andassistance to any business with regard to assistance to any business with regard to energy costs, thirdenergy costs, third--party suppliers, State party suppliers, State energy programs, subsidies and grants… ”energy programs, subsidies and grants… ”
The Governor’s ChallengeThe Governor’s Challenge
nn Energy Master Plan calls for 20% reduction in Energy Master Plan calls for 20% reduction in projected energy growth by 2020projected energy growth by 2020
nn Would yield annual electric savings of 20,000 gigawatthoursWould yield annual electric savings of 20,000 gigawatthours
nn Would also yield annual heating savings of 119 trillion BtuWould also yield annual heating savings of 119 trillion Btu
nn Energy savings achieved through:Energy savings achieved through:nn Building CodesBuilding Codes
nn Appliance StandardsAppliance Standards
nn Appliance ReplacementAppliance Replacement
nn Existing BuildingsExisting Buildings
The Case for Energy EfficiencyThe Case for Energy Efficiency
nn CostCost--effective EE improvements to the state’s effective EE improvements to the state’s 3.7 million existing buildings would save about 3.7 million existing buildings would save about 15,000 GWh and 98 TBtu by 202015,000 GWh and 98 TBtu by 2020
nn This represents 75% of EMP goal on energy savingsThis represents 75% of EMP goal on energy savingsnn This represents 75% of EMP goal on energy savingsThis represents 75% of EMP goal on energy savings
nn Goal would require addressing more than 300,000 per year Goal would require addressing more than 300,000 per year through 2020 through 2020 ––more than the total number of buildings more than the total number of buildings addressed in the first 5 years of the Clean Energy Programaddressed in the first 5 years of the Clean Energy Program
The Importance of BusinessThe Importance of Business
nn Businesses account for twoBusinesses account for two--thirds of the state’s thirds of the state’s electric and natural gas consumptionelectric and natural gas consumption
nn 68.5% of electric savings produced by the Clean 68.5% of electric savings produced by the Clean 68.5% of electric savings produced by the Clean 68.5% of electric savings produced by the Clean Energy Program came from businessesEnergy Program came from businesses
nn Business customers saved $11 for every $1 Business customers saved $11 for every $1 invested in EE, compared to $4 for residentialinvested in EE, compared to $4 for residential
Communicating the MessageCommunicating the Message
nn Increase education and outreach to businessIncrease education and outreach to business
nn Creating partnerships with business groups and Creating partnerships with business groups and communitiescommunitiescommunitiescommunities
nn “Best Practices” Manuals for 10 industry groups“Best Practices” Manuals for 10 industry groupsnn Supermarket manual now being developedSupermarket manual now being developed
nn Local government, hospitality, retail, restaurants and Local government, hospitality, retail, restaurants and health care facilities among other groupshealth care facilities among other groups
Energy Efficiency ProgramsEnergy Efficiency Programs
nn SmartStart Buildings ProgramSmartStart Buildings Programnn New construction, renovation and upgradesNew construction, renovation and upgrades
nn Design support, technical assistance and financial Design support, technical assistance and financial incentives for qualifying equipmentincentives for qualifying equipmentnn Electric chillersElectric chillers
nn Natural gas coolingNatural gas cooling
nn Natural gas heating and water heatingNatural gas heating and water heating
nn Premium efficiency motorsPremium efficiency motors
nn Prescriptive lightingPrescriptive lighting
nn Lighting controlsLighting controls
nn Custom measuresCustom measures
Energy Efficiency Programs (cont’d)Energy Efficiency Programs (cont’d)
nn Pay for Performance (new in 2009)Pay for Performance (new in 2009)nn Existing businesses with average annual peak demand over Existing businesses with average annual peak demand over
200 kW (supermarkets, hospitals, hotels, office buildings, 200 kW (supermarkets, hospitals, hotels, office buildings, manufacturing, etc.)manufacturing, etc.)
Incentives of $5,000 to $50,000 for development of Energy Incentives of $5,000 to $50,000 for development of Energy nn Incentives of $5,000 to $50,000 for development of Energy Incentives of $5,000 to $50,000 for development of Energy Reduction Plan (based on $.10 per square foot)Reduction Plan (based on $.10 per square foot)
nn Incentives up to $1 million per service payable on installation Incentives up to $1 million per service payable on installation of recommended measures and completion of measurement of recommended measures and completion of measurement and verification reportand verification report
nn Additional incentives for combined heat and power, if Additional incentives for combined heat and power, if feasiblefeasible
Energy Efficiency Programs (cont’d)Energy Efficiency Programs (cont’d)
nn Direct InstallDirect Installnn Expected rollout during summer of 2009Expected rollout during summer of 2009
nn Targeted to businesses with average annual peak demand Targeted to businesses with average annual peak demand below 200 kW (restaurants, small retail, professional offices, below 200 kW (restaurants, small retail, professional offices, etc.)etc.)etc.)etc.)
nn Direct installation of prescriptive measures (lighting, Direct installation of prescriptive measures (lighting, refrigeration, heating equipment, etc.) by prerefrigeration, heating equipment, etc.) by pre--qualified qualified contractorscontractors
nn Program pays contractor directly for up to 80% of installed Program pays contractor directly for up to 80% of installed cost; customer pays contractor remaining 20%cost; customer pays contractor remaining 20%
Sample Incentives Paid in 2008Sample Incentives Paid in 2008CustomerCustomer Total IncentivesTotal Incentives TechnologyTechnology
LowesLowes $955,841 (multiple locations)$955,841 (multiple locations) LightingLighting
McCaffey’s MarketMcCaffey’s Market $200,000$200,000 Custom ElectricCustom Electric
Robesco, IncRobesco, Inc $197,435$197,435 Custom ElectricCustom Electric
Woodbury Board of EducationWoodbury Board of Education $142,234$142,234 Ground Source Heat PumpsGround Source Heat Pumps
East Coast WarehouseEast Coast Warehouse $140,000$140,000 LightingLighting
Connell Real EstateConnell Real Estate $120,000$120,000 Electric ChillersElectric Chillers
Deluxe CorporationDeluxe Corporation $127,709$127,709 Custom ElectricCustom ElectricDeluxe CorporationDeluxe Corporation $127,709$127,709 Custom ElectricCustom Electric
Newark Public SchoolsNewark Public Schools $114, 832$114, 832 Geothermal Heat Pump, Custom ElectricGeothermal Heat Pump, Custom Electric
Chanel Inc.Chanel Inc. $103,625$103,625 Custom Electric, Custom GasCustom Electric, Custom Gas
Trump PlazaTrump Plaza $102,087$102,087 Variable Frequency Drives, Custom ElectricVariable Frequency Drives, Custom Electric
2 Gateway Center Partners2 Gateway Center Partners $100,000$100,000 LightingLighting
Crossroads Condominium Assoc. Crossroads Condominium Assoc. $100,000$100,000 Electric ChillersElectric Chillers
Cardinal HealthCardinal Health $56,259$56,259 Custom ElectricCustom Electric
Dunkin DonutsDunkin Donuts $43,900$43,900 LightingLighting
Munich Reinsurance America, IncMunich Reinsurance America, Inc $26,000$26,000 Variable Frequency DrivesVariable Frequency Drives
New Jersey’s Clean Energy ProgramNew Jersey’s Clean Energy Program
nn On the web: On the web: www.njcleanenergy.comwww.njcleanenergy.com
nn On the phone: On the phone: 11--866866--NJ SMARTNJ SMART
“The Ombuddies”“The Ombuddies”
nn Joe Sullivan, Business Energy OmbudsmanJoe Sullivan, Business Energy Ombudsmannn [email protected]@bpu.state.nj.us
nn (609) 610(609) 610--04330433
nn Ron Reisman, Manager of Business OutreachRon Reisman, Manager of Business Outreachnn [email protected]@bpu.state.nj.us
nn (973) 648(973) 648--39083908
Business Case for Sustainability
Ingersoll Rand
Kevin R. TubbsDirector, Environmental AffairsMay 20, 2009
•A $13 billion diversified industrial company
•Over 60,000 employees worldwide
•About 100 manufacturing facilities in every major geographic region
•Strategic brands are #1 or #2 in their markets
•World leader in creating and sustaining safe,
Who We Are
General Overview18
•World leader in creating and sustaining safe, comfortable and efficient environments.
Market-leading Brands
#1 US #2 Worldwide
Commercial HVAC Equipment
#1 North America display cases
#1 North America service provider
#1 Worldwide transport
refrigeration
Comfort and Climate Control Brands
General Overview19
#1 North America lock and door
hardware
#1 Worldwide golf cars
#1 North America air compressors,
air tools
Industrial Brands Security Brand
•Tyler Plant produces residential air conditioning systems
•Business landscape:
– Expiration of five year fixed price electrical contract
– Rising energy cost +70% on $4M spend
Drivers for Change –Tyler, TX.
General Overview20
– Rising energy cost +70% on $4M spend
– Dramatic downturn in housing market
Ingersoll Rand acquires Trane –June, 2008
– Corporate goal of 15% normalized reduction in manufacturing energy use by 2013
•Campus style facility; Total 1.1 million square feet, 700KSF manufacturing / test, balance Engineering, offices & warehouse
••100PSI & 400PSI Compressor Dry Air (CDA) Systems; 5,000 SCFM
total demand @ -40F DP
•Four 900 Ton Trane Centrifugal Chillers running in series / parallel, operating at 380F Comfort cooling in manufacturing area
Facilities & Infrastructure
General Overview21
parallel, operating at 380F Comfort cooling in manufacturing area
•2400 Ton Process Cooling Tower Water System
•1-600 HP & 1-35 HP gas fired boiler ••Mix of HID lighting, T12, T8 & T5 fluorescents
Simple Approach
•Policy & Deployment •Management / Factory awareness•Electrical sub-metering
•Energy Efficiency Projects•Equipment / systems efficiency•Production methods
•Policy & Deployment •Management / Factory awareness•Electrical sub-metering
•Energy Efficiency Projects•Equipment / systems efficiency•Production methods
General Overview22
•Electrical sub-metering •Ownership of results and empowerment•Metrics, Monitoring and Reporting
•Energy Conservation Measures •Behavior changes•Off / on controls nights / weekends•Basic operations and maintenance•“Low hanging fruit” projects
•Production methods •Waste minimization, leaks and losses•Focused investment
•Pricing Strategies•Supply / rate management•Demand management •Off-peak load shifting
•Electrical sub-metering •Ownership of results and empowerment•Metrics, Monitoring and Reporting
•Energy Conservation Measures •Behavior changes•Off / on controls nights / weekends•Basic operations and maintenance•“Low hanging fruit” projects
•Production methods •Waste minimization, leaks and losses•Focused investment
•Pricing Strategies•Supply / rate management•Demand management •Off-peak load shifting
60.0%
80.0%
100.0%
2007 Tyler Electrical Usage by AreaSub-Meters Help!
↑30% of Total Electrical
General Overview23
0.0%
20.0%
40.0%
System Issue Solution Invested Comp Savings
CDA 6,000 CFM CDA, 1960’s vintage, two desiccant dryers, 8% of CDA vented to atmosphere, restriction in header
4X300HP rotary screw Air Compressors, Dryers, 6” header
$1,000,000
12/08 $400,000(Efficiency)
Boiler 600 HP boiler @ <70% efficiency; Process change, capacity 2X demand
New 400 HP @ 90% efficiency
$312,000 12/08 $150,000(Efficiency)
Lighting Mix of HID & T-12 fluorescent, continue phasing
Continue phased lighting retrofits
Ongoing $125,000($300 cum)
O&MProcess
24X7X365 chiller operation @ 380F
Temperature specifications ignored
43F on-shift; +/-48F off-shift
O&M cost Neutral
9/08 $180,000(Conservation & Efficiency)
Results
General Overview24
Temperature specifications ignored
Coil cleaning, CDA leaks repair,Loss of chiller plant & control focus
space temp specs
O&M supervisor on-site focused on HVAC
& Efficiency)
Weekend Consv.
24X7 for years; Currently 5-6 day / week, with maintenance on back shift
Turn off non-critical equipment, Night / Weekend setback
<$20,000 4/08 $150,000(Conservation)
Remote Monitoring
Onsite O&M people, 24X7X365 National Service Analysis& Monitoring; Reduced stand-by O&M Staff
<$10,000 9/08 $125,000(Labor & Conservation)
•Multiple Benefits are being achieved:
– Improved O & M practices
– Use of remote monitoring and engineering support to reduce cost and “hold the gains”
– Delivering better than expected raw cost avoidance
Project Summary
General Overview25
– Delivering better than expected raw cost avoidance ($480,000 in calendar year 2008)
•Total Projected Costs: $1,342,000 + lighting retrofit costs TBD
•Total Projected Annual Savings: $1.1 M
We’re Uniquely Qualified
•More than half the buildings in the world rely Trane and Ingersoll Rand and our products to deliver a high performance
building that support their goals. •We have over 3,000 engineers throughout our enterprise,
including 520 LEED certified engineers
•We share knowledge and experience across businesses so our customers can benefit from combined knowledge
General Overview26
customers can benefit from combined knowledge
•Critical Factors:
– Savings potential
– Practicality
– Commercial Viability
– Risk Management
– Business Differentiation
Hussmann provides innovative green solutions for retail food industry
General Overview27
Sustainable Practices Bring Recognition
• USEPA Best of the Best Stratospheric Ozone Protection Award
• DJSI North American Index
• KLD Indexes
General Overview28
SustainableDevelopment
at BASF2009 Green Ventures
E Madzy Director, Product Stewardship / Regulatory
2009 Green Ventures Conference at FDU's College at Florham,
Madison, NJMay 20, 2009
BASF –The Chemical Companyn The world’s leading
chemical company
n Our portfolio ranges
n Sales 2008: €63.3 billion
n Employees as of December 31, 2007: 96,924
n R&D Expenses: €1.35 billion
n Our portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas
Ensure Sustainable
DevelopmentHelp our customers to
be more successfulDevelopment
Earn a premium on our cost of capital
Form the best team in industry
TheChemicalCompany
What Sustainability Means to BASFl It means combining economic success with environmental protection and
social responsibility.
As an integral component of a decision-making process, Sustainable As an integral component of a decision-making process, Sustainable Development:ll Drives innovationsDrives innovations in chemistry that improve the quality of life;l Presents market opportunitiesmarket opportunities for eco-efficient products and practices that
result in longlong--term profitable performanceterm profitable performance, and;l Promotes the utilization of natural resources that meets the needs of the
present while ensuring that the needs of future generationsneeds of future generations are met.
u Economics are vital to the SD value proposition
Global Leadership
Global Toolbox for Sustainable Development
BASF Sustainable Development
•Issue Management
••EcoEco--efficiency efficiency analysisanalysis
•Sustainability Screening
•EHS Audit
•Product Stewardship
•Social performance assessment
•Audit:
Quality, EHS and Social
•Project Success :
Value addition via EHS and Sustainability Services
Strategic Analysis
Performance Measures and Risk Management
Supplier Relations
Customer Support
Eco-Efficiency : A Life-Cycle Approach
Production Basic Chemicals Production
End-
Raw Materials and Energy Production
End-Products
Use PhaseRecycling/Disposal
Eco-Efficiency Portfolio:Costs and Environmental Burden
Customer benefit :
high eco-efficiency0.0
En
vir
on
me
nta
l Im
pa
ct
(no
rma
lize
d)
Alternative A
Alternative B
Alternative C
1 functional unit for … .
1.0
2.0
0.01.02.0
Costs (normalized)
En
vir
on
me
nta
l Im
pa
ct
(no
rma
lize
d)
low eco-efficiency
The most eco-efficient product has the lowest environmental impact and cost. Eco-efficiency is measured from the diagonal line.
Alternative A is most eco-efficient.
Eco-Efficiency Analysis (EEA)UV-Curable, Low-VOC Automotive Primer
n Eco-Efficiency Results
0.0
En
vir
on
me
nta
l im
pa
ct
(no
rma
lize
d)
1K UV-Cure
2K Urethane - Thermal
high eco-efficiency0.0
En
vir
on
me
nta
l im
pa
ct
(no
rma
lize
d)
1K UV-Cure
2K Urethane - Thermal
high eco-efficiency
PresidentialGreen Chemistry
Award Winner2005
•Application of primer to 1m2 of a car body, for lifetime use of 200,000 milesat 20mpg.
•Application of primer to 1m2 of a car body, for lifetime use of 200,000 milesat 20mpg.
1.0
2.0
0.01.02.0
Adjusted Costs(normalized)
En
vir
on
me
nta
l im
pa
ct
(no
rma
lize
d)
2K Urethane - Thermal
Epoxy- Thermal
2K Urethane - IR
Epoxy- IR
1K UV-Cure- Aerosol
low eco-efficiency
The UV- cured coating in cans is the most eco-efficient.
1.0
2.0
0.01.02.0
Adjusted Costs(normalized)
En
vir
on
me
nta
l im
pa
ct
(no
rma
lize
d)
2K Urethane - Thermal
Epoxy- Thermal
2K Urethane - IR
Epoxy- IR
1K UV-Cure- Aerosol
low eco-efficiency
The UV- cured coating in cans is the most eco-efficient.
The UV- cured coating in cans is the most eco-efficient.
RESULTS OF OUR EFFORTS
Contact information
BASF Corporation
Thanks for your attention
BASF Corporation
Edward Madzy
Phone: 973 245-6689
Fax: 973 245-6707
Email: [email protected]
The Business Case for The Business Case for Going Green… NOW
Dave StangisVice President, CSR &
Sustainability
May 20, 2009
Jumpstarting the New Green Economy
41
•• Approximately 20,000 employees in 20 Approximately 20,000 employees in 20 countriescountries
•• 140 Year Heritage140 Year Heritage
•• Products sold in ~120 countriesProducts sold in ~120 countries
•• ~ $8B in Sales~ $8B in Sales
42
Focusing Efforts –Aligning with Values
CSR at Campbell - Driving global wellness and nutrition, helping to build a sustainable environment, and honoring our role in society from the farm to the family.
Consumers
Deliver on the
Environment
Lead the Sector
Workplace
An Extraordinary Workplace where
Society
Nourishing our
43
“Together we will build the world’s most extraordinary food company by nourishing people’s lives everywhere, every day.”
Deliver on the Consumer Promise
Wellness and NutritionWellness and NutritionFood Safety and QualityFood Safety and QualityStrategic PartnershipsStrategic PartnershipsAuthentic NourishmentAuthentic NourishmentHelping the ConsumerHelping the Consumerbe more Sustainablebe more Sustainable
Lead the Sectorin Environmental
Stewardship
Develop 5yr plan to Develop 5yr plan to reduce resource usereduce resource useDrive sustainability Drive sustainability
in agricultural systemsin agricultural systemsReduce the footprint ofReduce the footprint of
key productskey products
Workplace whereEmployees DriveCSR Innovation
Engagement measuresEngagement measuresembrace CSRembrace CSR
Model of Diversity andModel of Diversity andInclusionInclusion
Benchmark for CSRBenchmark for CSRIntegrationIntegration
Nourishing our Neighbors
Everywhere, Every Day
Resolute commitmentResolute commitmentto our communitiesto our communities
Partnering to addressPartnering to addressWellness, Nutrition andWellness, Nutrition and
HungerHungerSignature programs with Signature programs with
Social ImpactSocial Impact
Alternative Energy Initiatives
• $5,950,000 investment in a fuel cell that provides approximately 65% of the plant electricity.
• Annual savings $1,100,000
• CT clean air grant $3,500,000
• Project IRR 33.4%The new 1,200 kW fuel cell was
switched on July 2008.
44
switched on July 2008.
• Solar installation in Toronto
•Reduce plant's carbon dioxide emissions by about 20,000 pounds
• Anaerobic digestion pilot with UC-Davis has already processed > 200 tons of food waste from Campbell’s Sacramento Plant
Operational Sustainability•Manufacturing
– Largest fuel cell installation in the US –Annual savings > $1MM
– Heat recovery and water recycling system redesign•Savings - 3.5 million gallons/day water and $4 million/yr
45
•Packaging – Right-sizing PF Gold Fish carton saves more than 100,000 pounds of
material and $900K.
– Eliminating the paper labels from frozen condensed soup eliminate250,000lbs of material and save ~$550K in one plant alone
– Select Harvest labels - Saving 800 tons of lumber, 2MM gal of water
– Sustainability Packaging Guidelines
Sustainable Packaging Examples, cont.
Arnott’s Improved Pallet Utilization
Environmental $ Benefit
39,000 pallets(800 + trucks) $3,000,000
$8,000,00060 million lbs paper
Design w/Sustainable
Mindset
CreateEconomic
Value
PartnerExternally
46
$8,000,00060 million lbs paper
$1,000,0002 million lbs paper
Pepperidge reusable Shippers
TT conversion form carton to FlexpackStrategies Score Card
Sustainability at Roche –Preserving Innovation Preserving Innovation
Hugh Tole
A Global PerspectiveAbout the Roche Group
• Founded in 1896 in Basel, Switzerland
• Employs about 80,000 people
• Operates in more than 65 countries• Operates in more than 65 countries
• 2008 sales ~ $ 42.34 billion(45.6 billion CHF)
• Invests over $8 billion per year in R&D
• Completed purchase of remaining shares of Genentech in
March 2009
A Global PerspectiveAbout the Roche Group
Our Mission
Our aim as a leading healthcare company is to create, produce and market innovative solutions of high quality for unmet medical needs. Our products and services help to prevent, diagnose and treat diseases, thus enhancing people’s health and quality of life. We do this in a responsible and ethical manner and with a commitment to sustainable development respecting the needs of the individual, the society and the environment.
Our aim as a leading healthcare company is to create, produce and market innovative solutions of high quality for unmet medical needs. Our products and services help to prevent, diagnose and treat diseases, thus enhancing people’s health and quality of life. We do this in a responsible and ethical manner and with a commitment to sustainable development respecting the needs of the individual, the society and the environment.
The Business Case at Roche
“Our Mission has led to a focus on long-term success rather than short-term gain. As our products take between eight and twelve years to bring to market, protecting the current and future value of our company is critical. We believe this creates a strong business case for sustainability.”
Implementing Energy Conservation
• Upper Management Support– Corporate directive designed to “ensure that all decision-making at
Roche supports efficient, appropriate and cost-effective energy use”– Mandated standards (e.g. lighting, building temperatures) – Life cycle cost considerations (NPV vs. simple payback)
• Public Commitments – Reduce energy per employee by 10% (2005-2010)– Reduce GHG emissions per sales by 10% (2003-2008)– Commitments to USEPA Climate Leaders
• Project implementation and employee engagement
Cogeneration RepoweringNutley, New Jersey
• 2 new turbine-gen sets (2004)
• Energy consumption reduced by one-third
• Carbon emissions reduced by 10,000 metric tons/year vs. older cogen or 40,000 metric tons/year vs. no cogen
• Reduced operating costs ($3 to $4 million/year)
• Payback period –between 3-4 years
Employee Engagement
• Energy Efficient Lighting Fair
• State of NJ sponsored and • State of NJ sponsored and subsidized
• Increased awareness work/home
Roche Achieves First US EPA Climate Leaders Goal
330,000
340,000
350,000
Roche US Carbon Emissions (metric tons)
280,000
290,000
300,000
310,000
320,000
2001 2002 2003 2004 2005 2006 2007
Results(US only - 2001-2007)
• Cost savings ($5.5 MM/year)
• Reduced environmental footprint (>40,000 metric tons/year)
• Other benefits
– Reputational > attraction/retention of high quality employees
– Stock value (DJWSI, FTSE, Innovest Global 100 indices)
Sustainability Approach
“Roche is conscious of the dynamic interdependence of economic, social and environmental interests and seeks to reconcile them in its daily business activities.”
➙ Conclusion: an integrated network model
– Integrate Sustainability into all decisions and monitor with a Corporate
SAM = Company for Sustainable Asset Management
– Integrate Sustainability into all decisions and monitor with a Corporate Sustainability Committee
– Roche identified as role model for Dow Jones SAM
Sustainability at Roche
Roche response
SEAG = Science andEthics Advisory Group
Safety, Health & Environment:
Reduce footprintreporting by site
Genetics:Position,
Roche Charter,SEAG
Access:Patents and access
policies
Sponsoring and Donations:
Focus on science, education, health/social, response
driven by business
with support from CSC
policieseducation, health/social,
comm./environ. & culture
CorporateGovernance:
Principles, transparencyshareholder dialogue
Ethics:Behaviour in business,ethics initiative, Subject
understanding
Corporate Sustainability: An integrated and innovative
way to create value for stakeholders
We Innovate Healthcare
