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Driving Energy Management Transformation A study on energy management maturity of companies in Singapore
Contents
Preface p 3
Executive Summary p 5
Introduction p 7
What is Enterprise Energy Management? p 8
Methodology p 9
Feature Finding People-centred components of energy management are less mature and more varied p 10
Secondary Finding 1 p 14 Levels of energy management maturity vary between different industry sectors
Secondary Finding 2 p 16 The pattern of energy management maturity is similar irrespective of the size of the company
Implications and Recommendations p 18
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Preface
In an effort to improve Singapore’s energy efficiency and competitiveness, the National Environment Agency (NEA) has introduced mandatory energy management requirements for energy intensive companies in the industry sector. These requirements came into effect on 22 April 2013 under the Energy Conservation Act (ECA).1
According to the ECA, energy intensive companies in the industry sector are required to appoint an energy manager, monitor and report energy use and greenhouse gas emissions, and submit energy efficiency improvement plans.
For companies, developing a holistic Enterprise Energy Management capability may be a key enabler in the process of complying with ECA, while simultaneously building a more competitive and sustainable business. Enterprise Energy Management involves putting in place appropriate strategies, people, processes, leadership, governance and technology at all levels of an organisation. Studies indicate that the more mature the company’s energy management capability, the more significant and sustained its energy efficiency and cost savings.
In the weeks leading up to the implementation of the ECA, Accenture partnered with the National Environment Agency (NEA) of Singapore to carry out a qualitative survey of energy intensive companies in Singapore. The goal was to gauge the maturity of Enterprise Energy Management capabilities at this moment of legislative change, allowing comparisons to be done in future years.
This paper contains results and analysis of the survey which provides information for both the business and regulatory communities of Singapore, and serves to further stimulate dialogue and action around the ECA, energy efficiency and sustainability in general.
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Executive Summary
The survey findings provided interesting insights into the state of energy management amongst Singapore’s energy intensive companies. The survey results suggest that maturity levels vary across different industry sectors and within organisations and that companies in Singapore can tap on opportunities from further embedding Enterprise Energy Management practices into their organisation.
Feature Finding: People-centred components of energy management are less mature and more varied Companies can generally improve people-centric and performance management related areas of energy management. Improving on these ‘softer’ elements will enable companies to realise and sustain the full benefits of energy management.
Secondary Finding 1: Levels of energy management maturity vary between different industry sectors Different levels of energy management maturity between industries, as well as significant variability within some industries, highlight the diverse nature of opportunities across Singapore’s sectors and companies. For instance, survey results indicate that biomedical manufacturing and petrochemicals have high intra-industry variability in maturity level, which indicates that some organisations in here may have an opportunity to increase competitiveness against their peers. On the other hand, the results indicate that transport engineering has low average maturity as well as low intra-industry variability, which indicates that the industry as a whole may have an opportunity to embrace energy management principles.
Secondary Finding 2: The pattern of energy management maturity is similar irrespective of the size of the companyThe survey found a similar level of energy maturity across companies of different sizes by annual revenue, with the ‘softer’ people-centric capabilities such as rewards and incentives and roles and responsibilities representing the main areas for improvements for the companies. Overall, survey results indicate that small-sized organisations also seem to have a slightly lower maturity across the energy management capabilities compared to medium and large-sized organisations.
These findings have a number of implications for both companies and regulatory bodies in Singapore. For companies, it highlights the importance of driving energy management in a structured and holistic manner, ideally via the key components of Enterprise Energy Management. Importantly, we believe that this involves improvements to leadership, strategy and operating model, which is distinctly different from the typical technology push approach that many companies have taken to date. However, the approach a company adopts in further embedding Enterprise Energy Management into its operating model should always be tailored to the level of maturity of its energy management.
For government, policy makers and regulators, the survey points to an opportunity to provide not only support and incentives for technological solutions to energy efficiency, but also to help companies build their people-centric and performance management capabilities.
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Introduction
The mandatory energy management requirements under the Energy Conservation Act will likely change the way in which the energy intensive companies in the industry sector in Singapore manage energy consumption and greenhouse gas emissions. The Act requires companies to make important changes to how they manage energy. Some may have never tracked the data needed to comply with reporting requirements, while others may have no recognisable energy strategy, and no prior experience of creating or executing an improvement plan. Nevertheless, all are required to take action towards complying with the Act, for example, by appointing an energy manager, monitoring energy consumption and preparing improvement plans.
The Act aside, to achieve and sustain energy efficiency, it may be beneficial for companies to move towards full Enterprise Energy Management capabilities. This means that all levels of an organisation’s strategies, people, processes, leadership, governance and technologies are aligned towards the common goal of greater energy efficiency.
With this context in mind the survey explores the current energy management status of companies in Singapore. The key survey research questions were:
• How mature are energy management capabilities amongst the energy intensive companies in Singapore?
• What are the key areas for Singapore companies and policy makers to focus on in driving Enterprise Energy Management?For the companies, the study provided insights into the maturity of their energy management practices through a structured self-assessment process. Through their participation, companies could look at how they perform against their peer groups in their industry, while also identifying areas to improve on. For the National Environment Agency, this survey has helped to inform how future policies and initiatives can be designed to help advance Singapore’s energy management capabilities and overall sustainability agenda.
The Energy Conservation Act, implemented in April 2013, articulates the minimum energy management standards, primarily to be adopted by companies that consume more than 54 TJ of energy a year.
Under the Act, companies need to carry out the following:
• Appoint an energy manager
• Monitor and report energy use and greenhouse gas emissions annually
• Submit energy efficiency improvement plans annually
Singapore’s Energy Conservation Act
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What is Enterprise Energy Management?
At its core, energy management seeks to help identify and eliminate unnecessary energy use and its associated costs, thereby increasing the overall energy efficiency of processes, facilities and organisations. Enterprise Energy Management (EEM) is the practical application of energy management principles across an organisation in a sustainable way. By integrating best practices in strategy, leadership, technology, people and processes, this approach may lead to a transformational change in how energy is procured and managed and realises superior and sustained cost and energy savings as well as improved compliance.
StrategyEEM Strategy involves an integrated approach to energy management which is aligned with the organisation’s overall business strategy and is based on a comprehensive view of all stakeholder expectations.
Leadership and Governance Efficient energy management generally requires accountability for energy management at a senior enough level in the organisation to be able to cut across traditional functional and departmental barriers. It involves use of appropriate
Enterprise Energy
Management
4. People 3. Equipment and
Technology
5. Processes2.
Leadership and Governance
1. Strategy
Figure 1. Enterprise Energy Management metrics, targets, protocols, checkpoints and mechanisms to ensure sound governance.
Equipment and Technology Efficient and well-maintained equipment or assets are crucial to EEM. This helps to minimise energy consumption, while the optimal use of improved information & communication technology may enhance transparency through capabilities such as real-time performance monitoring.
PeopleEfficient EEM presumes a well-designed organisational structure with clearly defined roles and responsibilities to better integrate the energy agenda across all levels and functions. This is ideally backed by efficient performance management methodologies to drive the energy agenda in an inclusive manner.
ProcessesEEM relies on robust and streamlined processes to efficiently drive various aspects of energy management. This may include defining processes to continuously improve and optimise the management of energy supply, energy demand and efficiently executing management and support processes.
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Methodology
The Enterprise Energy Management Capability Maturity Model developed by Accenture provides a holistic approach designed to systematically assess an organisation’s energy management capabilities and identify potential improvement opportunities. As such it formed the ideal framework for the survey. In short, the process is designed to explore how well companies assessed themselves against the criteria within the Model, as depicted below.
The survey questions were structured to include a key business question for each component of the maturity model. This was contextualised with indicative descriptions of what current market practices (classified as basic, competitive and leading) generally look like.
Enterprise Energy Management components covered in survey
Online questionnaire• The survey contained questions to assess an organisation’s maturity along each component of the energy management framework.
• In all there were 18 questions in the survey (i.e. a question for each of the components such as value drivers, stakeholder management etc.)
1. Strategy
• Value Drivers
• Stakeholder Management
• Energy Strategy
• Energy Policy
2. Leadership
and Governance
• Ownership and Governance
• Energy Performance Indicators
• Targets
• Energy Management Audits
• Rewards and Incentives
3. Equipment
and Technology
• Equipment and Assets
• Solutions and Softwares
4. People
• Roles and Responsibilities
• Organisational Structure
• Core Skills and Training
• Communication and Awareness
5.Processes
• Energy Supply Process
• Energy Demand Process
• Management and Support Process
Scale used for the survey• To assess the maturity of an organisation, a 5-point scale was used
1: Basic 2: Basic-to-Competitive 3: Competitive 4: Competitive-to-Leading 5: Leading
Capturing organisations’ responses• The survey was conducted in a self-assessment format, wherein each respondent rated various questions in terms of
an organisation’s maturity from ‘Basic’ to ‘Leading’.
Figure 2. Enterprise Energy Management Framework
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Feature Finding
People-centred components of energy management are less mature
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People-centred change is lagging behind technological change (1)The study identifies many people-centric areas as having relatively low maturity within the respondent cohort. These include for example organisational structure, defining roles and responsibilities, aligning rewards and incentives, managing skills and training. All these areas relate to recognising and empowering people as agents to drive transformational change in energy management. Assigning energy performance indicators to appropriate employees and linking their overall performance to these indicators may further drive improvements in energy performance. Hence, there is an opportunity for organisations to focus more on the people and performance aspects of energy management, thereby driving the energy agenda in a more holistic and integrated manner.
Through incentives, policies, new structures and leadership, top organisations are already seeking to drive energy management far beyond what is possible with technology alone. We believe that it is only with employees, managers and leaders aligned correctly that organisations can hope to achieve an efficient Enterprise Energy Management framework.
For example, at 3M Corporation, the staff are actively encouraged to contribute towards driving energy efficiencies through a ‘Reward and Recognition’ programme. The programme has helped 3M to implement more than 1,900 employee-inspired projects between 2005 and 2009. These initiatives have resulted in a staggering 22 percent improvement in energy efficiency translating to $100 million in energy savings.2
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Figure 5. Average maturity levels
Traditionally, energy management has been perceived as a rather technical and engineering oriented field. As a result, appropriate attention is often paid to elements related to technology and core energy management processes. However, this focus on technical aspects may have prevented organisations from adopting a more holistic and integrated approach to energy management. In fact, the survey findings indicate that most organisations today are relatively less mature when it comes to some of the ‘softer’ people-centric aspects of energy management.
Meanwhile the survey research revealed that, at Senoko Energy in Singapore, cash rewards are offered to all staff who make original suggestions that can improve plant process performance, including fuel and water efficiency ideas.
Data collection and analysis, sophisticated control mechanisms and energy information systems are critical for effective energy management as we believe that they form the basis for devising any improvement plan. The survey captured the state of these systems through the measure ‘solutions & software’. The survey responses show that there are still opportunities for companies to improve their maturity in software and information systems.
Leading organisations are demonstrating the benefits of implementing advanced energy information systems. Advantage Laser Products for example, reduced its energy consumption using an energy management system and saved 24% of utility costs. The objective of their system (named ‘Empower Edge’) is to efficiently spread out electrical use throughout the day. Through analysis and engineering, power demand thresholds are set and as the facility’s power consumption meets the threshold the system automatically reduces demand by shutting down systems designated as non-critical.3
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There is a variation in the way different companies define their energy management capabilities (2)Another interesting observation emerging from the survey is that, not only are the people-centred components less mature, but they also appear to vary widely across the companies surveyed. Components such as roles and responsibilities, rewards and incentives or setting energy targets appear to be the most varied. This perhaps indicates that there are large differences in the way companies manage their energy capabilities such as defining their energy targets, with some companies having well defined energy targets, while others have yet to set any. Organisations with a relatively low score on this component may have an opportunity to catch up with their peers through compliance with the Energy Conservation Act.
ISO certification can help set the right framework for energy management (3)Of the 100 unique companies that responded to the survey, only four companies indicated ISO 50001 certified status. While this is too small a sample size on which to base any statistical inferences, it is still interesting to note that on average energy management capabilities for those organisations holding ISO 50001 certification are significantly higher compared to other organisations. Moreover, the gap seems to be wider across the ‘softer’ aspects of energy management (discussed above) such as rewards and incentives, roles and responsibilities and organisational structure.
The ISO 50001 certification could help provide a framework for companies to pursue as a way of driving an integrated energy management agenda.
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Figure 6. Standard Deviation Levels
Figure 7. ISO 50001 maturity
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Secondary Finding 1
Levels of energy management maturity vary between different industry sectors
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It is interesting to see that survey results indicate that Singapore’s industries are at different levels of energy management maturity when compared by industry. Results further demonstrated that there is also a significant variation in the level of maturity within some industries. This indicates that the nature of energy management opportunities may differ significantly across industries. This point is well-illustrated by some of the specific findings, for instance:
• Results indicate that some of the established industries such as Biomedical Manufacturing and Petrochemicals are on average relatively more mature with respect to energy management. However, these industries also seem to have high intra-industry dispersion. The high overall maturity indicates that several organisations may have already identified and undertaken critical measures to improve energy management capabilities. However, the high dispersion indicates that there may still be a few organisations which have the opportunity to embrace these measures.
• Industries such as Chemicals and Electronics seem to be fairly mature with respect to energy management, according to survey responses. Interestingly, these industries also have low intra-industry variability in maturity. This perhaps indicates a level of consistency of approach toward energy management and there may not be any clearly identified sector leaders. This potentially indicates that organisations in these industries may have the opportunity to be pioneers in energy management by initiating new programmes to drive their organisation to the next level of maturity.
• According to the survey results, it is evident that Transport Engineering industry is relatively less mature on energy management capabilities. Interestingly, it also has relatively low intra-industry dispersion. This suggests that the industry as a whole has yet to embrace a holistic approach to energy management.
On the contrary, based on survey results it can be deduced that there is no clear correlation between an industry’s energy management maturity and its energy intensiveness. For instance, petrochemicals and chemicals industries are fairly different in terms of their energy intensiveness. However, the two industries have a similar energy management maturity.
Standard Deviation in maturity
Average Maturity
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Precision Engineering
Petrochemicals
Biomedical Manufacturing
Electronics
Chemicals
Wafer Fabrication and Semiconductors
Food Manufacturing
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Figure 8. Maturity vs. spread for industries
Figure 9. Maturity vs. Energy Intensiveness
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Secondary Finding 2
The pattern of energy management maturity is similar irrespective of the size of the company
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The study revealed some interesting insights with respect to the variations in the size of organisations4 and their corresponding energy management maturity levels. For example, the areas of low maturity tend to be low for all company sizes. Similarly, areas with high maturity tend to be high for all company sizes. In other words, the shapes of the respective capability maturity curves are similar. This perhaps indicates that the opportunity areas may also be similar for differently-sized organisations.
However, the magnitude of these opportunities may differ significantly based on the organisation’s size. Clearly, smaller organisations have somewhat lower energy management maturity compared to both medium and large-sized organisations. This gap in maturity is consistent across all components of the operating model.
The challenge for smaller organisations is often related to access to capital. In Singapore, Government entities could boost energy management adoption through financial incentives that could offset the upfront investments associated with implementing efficient energy management framework. Equally importantly, smaller companies could also benefit significantly from any support that they could get with respect to accessing skills, learnings and experiences in implementation of energy management framework.
An example of this is Energize Connecticut and Connecticut Light and Power’s work with small businesses. They drive a programme that provides “cost-effective, turnkey, energy-saving products and services” as well as financial incentives to offset implementation costs. In one instance, they helped a single McDonald’s restaurant save 67,048 kilowatt-hours annually by leading them through a number of improvements in lighting and refrigeration.5
Another related insight emerging from the analysis is that Singapore-based respondent organisations, with local operations only, have a somewhat lower maturity compared to business units of global multinationals and locally headquartered multinationals (this observation is actually a corollary of the previous observation, as several Singapore-based organisations with no international activity fall in the small-sized company category).
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Figure 10. Variation based on organisation size
Average Maturity
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Singapore-based MNC /Subsidiary
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Figure 11. Variation based on type of organisation
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Implications and recommendations for companies
Results indicate that for many companies, energy management is a priority for just one part of the organisation or a handful of roles within the business. These areas are often close to the core operational areas or the most energy intensive parts of the business. As such, energy management is typically constrained to the technical domain or activities such as plant processes and optimisation. However, far greater benefits may be achieved if companies aim for a more comprehensive approach, such as Enterprise Energy Management. The key recommendations of this study are all linked to this goal.
Enterprise Energy
Management
1. A business’s level of energy management
maturity should determine the nature
of interventions
2. It is critical to drive energy
management in a structured and holistic manner
3. Better leadership and governance is critical
4. Comprehensive
measurement underpins Enterprise Energy
Management
1. A business’s level of energy management maturity is a critical factor in determining the nature of interventionsFrom the survey, it is evident that different companies are at varying stages of energy management maturity. Their stage of maturity can be an important factor in determining the appropriate actions required to further embed EEM into the operating model of the company. The following table characterises what each stage of maturity (basic, competitive and leading) looks like across different pillars of operating model.
Pillar Basic Competitive Leading
Strategy
• A focus on regulatory compliance only
• Some guiding principles exist but no comprehensive energy policy
• Primary focus of energy management initiatives is to reduce costs
• Various stakeholder views are embedded in the energy principles and guidelines
• Comprehensive recognition of underlying energy value levers
• Energy policy addresses interests of all stakeholders (investors, consumers, employees, partners, etc.)
• A well-defined energy management strategy is in place (e.g. ISO 50001 compliance)
Leadership and Governance
• The highest level of ownership of the energy agenda rests with operational managers (e.g. facility leads or procurement managers)
• Energy performance indicators may be vaguely linked to broad corporate objectives
• A core energy team exists, led by an appointed management representative
• A clearly established energy baseline is established for all indicators
• Regular audits are performed for identified and relevant processes
• The board and C-suite leadership assume ownership of energy performance
• A clearly established energy baseline exists with comprehensive indicators defined to measure energy performance
• Energy audits are an integral part of annual management audits
Equipment and Technology
• Equipment replacements are usually triggered by a system failure, rather than a drop in energy efficiency
• There is limited use of energy management systems and advanced solutions
• Energy efficiency of equipment is periodically monitored and a drop in performance can trigger an equipment replacement decision
• Simple and appropriate solutions are deployed for monitoring energy consumption
• Energy efficiency is considered at all stages of equipment and technology decisions
• Advanced energy management solutions are deployed to enhance transparency through capabilities such as real-time performance monitoring
People
• Roles and responsibilities are not clearly defined
• There is meagre focus on core skills required for energy specific roles
• Employees have limited understanding of energy efficiency as a value creation lever
• Critical energy processes tend to have basic job descriptions, responsibilities and accountabilities
• The core skills required for energy intensive processes are well documented
• Employees have a good understanding of energy management principles, past performance and future opportunities
• A well-designed organisational structure is in place that clearly recognises how roles impact energy performance
• Roles for critical energy processes are captured through the RACI matrix, or other similar documentation
• A robust training programme exists to ensure continuous skills building
• Employees at all levels have a thorough understanding of energy policy, objectives, indicators, targets, systems and opportunities across all levels
Processes
• Very few initiatives exist to rationalise energy pricing
• Sourcing contracts are rarely reviewed
• Most buildings have single main utility meters that provide only an aggregate energy consumption data
• Processes impacting energy performance may not be explicitly defined
• The procurement team has access to energy prices and review contracts occasionally
• There are processes and equipment (such as sub-meters) to obtain a granular view of energy demand
• Management support processes are clearly defined
• Well defined processes exist for energy supply, demand and management support
• There are continuous improvement cycles to streamline and optimise processes impacting energy performance
• Regular reviews of energy-mix by source helps to identify cost reduction opportunities and facilitate decision-making
• Robust support processes exist for features such as performance management, reporting and communication
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2. It is important to drive energy management in a structured and holistic mannerThe survey identified a need for companies to improve upon the ‘softer’ people-oriented elements of energy management, such as:
• Defining an organisation structure that is aligned with the energy agenda
• Clearly defining roles and responsibilities that are aligned to drive energy agenda
• Linking rewards and incentives to energy performance
• Creating awareness and a shared vision
• Building core skills and training
To improve in these areas, companies may wish to develop a structured and holistic approach. This typically involves systematically leveraging all components of the organisation’s operating model - including crucially people, processes and technology - in an effort to drive energy efficiencies more comprehensively. It may be critical that this is done inclusively, where all employees understand their role as an integral part of the whole Enterprise Energy Management system.
Linking rewards and recognition to an employee’s energy performance objectives could be critical in this context. Leading performers would typically strive for the following:
• The right mix of monetary benefits, non-monetary benefits and penalties to drive improvements in energy performance
• Clearly defined individual metrics, targets and incentives to drive the desired behaviour at all levels
• Pre-defined energy targets as an integral part of overall performance management
3. Better leadership and governance is criticalThe survey results highlight an opportunity to improve the level of leadership accountability and governance to drive energy management. We at Accenture believe that addressing this involves striving for a model with the following key features:
• The management team should assume ownership of energy performance and ensure direct oversight in energy related matters. This is because energy related matters are cross-departmental and can therefore by definition not be resolved integrally by only the engineering department, where it currently often resides.
• Energy Performance Indicators should be identified and tracked to measure all aspects related to energy performance such as procurement, energy mix, aggregate consumption and demand patterns.
• A clearly established energy baseline and SMART targets (i.e. specific, measurable, actionable, relevant and time bound) should be defined for all energy performance indicators.
• Energy management audits should form an integral part of annual management audits and should be performed for all processes and functions.
4. Comprehensive measurement underpins Enterprise Energy ManagementThe study highlights the opportunity to invest in better measurement, analysis and information systems. Implemented correctly, these systems may provide an accurate and objective assessment of energy performance which can help to unite the company behind their common energy goals. Beyond this, better measurement provides the specific data needed to modify power-intense processes, draft more accurate financial projections and create more granular energy management strategies.
Information systems can be scaled and adapted for any size or type of business. Deployments can range from tools that help create more accurate and comprehensive management information system reports, to advanced energy information systems which capture live energy data and automatically trigger corrective actions.
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1. Supporting companies in building up their energy management capabilitiesThe survey found that companies of all sizes seem to have relatively low energy management maturity relating to people-centric components. Government entities and policy makers can play a role in driving energy performance through providing incentives that can help companies build up internal energy management reporting capabilities. An example could be a common energy reporting infrastructure that can provide companies with common set of tools such as ability to plot energy performance trends, identify high energy consuming processes as well as setting and tracking key energy indicators and benchmarks.
2. Sharing of energy management best practices can help drive energy transformation within particular industries The survey also found varying energy management maturity levels for different industries. Government and regulatory bodies can help provide a platform, for example, through enhancement of the ECA portal and existing programmes such as the Energy Efficiency National Partnership (EENP) programme to share best practices within and across industries. This may help to facilitate sharing of ideas to drive energy management in companies, and could include industry relevant practices. Companies could share their experiences on how to set targets, incentivise and empower employees to drive energy efficiency within their companies and industry sector.
Implications and recommendations for policy makers and regulatory bodies
For policy makers and regulatory bodies, the survey provides unique insights into the landscape of energy management maturity of companies across different industry sectors. The outcomes highlight a need for support to further drive integration of people-centric components of energy management into companies, and for particular industries that are less established.
Component Key Question
Strategy
Value Drivers Does the organisation’s energy strategy recognise the complete gamut of potential energy value drivers?
Stakeholder Management Is there clear recognition of varying interests/expectations of different stakeholder groups?
Energy Strategy Does the organisation have a clearly defined energy strategy with clearly laid out goals and objectives?
Energy Policy Does the organisation have an explicitly stated energy policy which is accessible by all relevant stakeholders (e.g. communities, shareholders, regulatory bodies, etc.)?
Leadership and Governance
Ownership and Governance Where does the ownership and accountability for the organisation’s energy performance rest?
Energy Performance Indicators (EnPIs)
Has the organisation identified the right set of energy performance indicators to measure and continually improve energy performance?
Targets Are there clearly identified and time bound targets to measure energy performance improvements?
Energy Management Audits Does the organisation conduct regular audits to ensure an efficient energy management system?
Rewards and Incentives Are employee incentives appropriately aligned to drive improvements in energy efficiency at all levels in the organisation?
Equipment and Technology
Equipment and Assets Does the organisation leverage state of the art equipment/assets and ensure timely equipment replacement/over-hauling?
Solutions and Software Does the organisation leverage advanced software/solutions/systems to improve the efficiency of energy management processes?
People
Roles and Responsibilities Are there explicitly defined roles and responsibilities to drive energy performance improvements?
Organisational Structure Are the reporting lines and hierarchy clearly established to achieve energy targets in an efficient manner?
Core Skills and Training Does the organisation have the right blend of core skills and a robust training program to ensure continuous building of relevant skills?
Communication and Awareness Does the organisation foster a culture of active internal communication to create awareness about energy management issues and opportunities at all levels?
Processes
Energy Supply Process What kind of energy sourcing review mechanisms are in place to optimise energy supply cost and contract conditions?
Energy Demand Process What mechanism does the organisation have to rationalise energy demand from the core processes?
Management and Support Processes
What management and support processes are in place to enable efficient energy management across the organisation?
22
AppendixThe survey questions that were asked for each component of the energy management framework are set out below.
23
Classification by size of company
44
41
15
Classification by type of company
72
6
22
Classification by industry
Small: Sales < SGD 250mn
Medium: SGD 250mn < Sales < 2500mn
Large: Sales > SGD 2500mn
Local Business Unit / Branch / Subsidiary / Participation of Global MNC
Singapore-based MNC / Subsidiary
Singapore-based organisation with local operations
Petrochemicals
Precision Engineering
Wafer Fabrication and Semiconductors
Biomedical Manufacturing
Others
Electronics
Transport Engineering
Food Manufacturing
Chemicals
20
13
1111
11
9
9
8
8
Sub-classification of Technical Respondents = 72
By type of alignment
5
11
33
23
Engineering
Facilities / Maintenance
Operations
Energy
By respondents’ level
By type of alignment By respondents’ level
Indirect reporting line to Country Chief Executive
Direct reporting to Country Chief Executive
58
14
Sub-classification of Non-Technical Respondents: 52
General Management
Corporate Services
EHS
Other
62
2915
Indirect reporting line to Country Chief Executive
Direct reporting to Country Chief Executive
Country Chief Executive
9
25
18
Classification by respondents’ alignment
52 72
Technical Non-technical
Key Survey Statistics 124: Total number of responses
100: Total number of unique companies that responded
DISCLAIMER: This document is intended for general informational purposes only and does not take into account the reader’s specific circumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted by applicable law, any and all liability for the accuracy and completeness of the information in this document and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed professionals.
References and Notes1 Republic Of Singapore Energy Conservation Act 2012
2 U.S. Department of Energy, 3M’s Model Rewards and Recognition Program Engages Employees and Drives Energy Savings Efforts, June 2010
3 Empower Energy Technology, Case Study: Advantage Laser Products Reduced its Energy Consumption Saving 24% of Monthly Utility Costs, 2011
4 The company size thresholds used were as follows: small = less than SGD250 million in sales; medium = from SGD250 million to SGD2,500 million in sales; large = over SGD2,500 million in sales.
5 Energize Connecticut, Small Business Energy Advantage Energy Efficiency Case Study: McDonald’s, Vernon, CT
About the AuthorYnse de Boer Managing Director – Management Consulting, Strategy & Sustainability, ASEAN
Ynse de Boer is the managing director of Accenture’s Sustainability Services in ASEAN, based in Singapore.
Ynse has worked for over a decade with senior executives of a range of private and public sector organisations on sustainability, strategy and execution. His industry experience spans across sectors such as Government, Energy, Chemicals, Waste and Utilities as well as Logistics, Advertising and High Tech.
Ynse holds a Masters degree in Mechanical Engineering from Delft University of Technology, in the Netherlands.
Key Contributors Yee Chow, Sundeep Singh, Anurag Lodha Accenture, Strategy and Sustainability
With inputs from National Environment Agency, Energy Efficiency and Conservation Department
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