© SKF Group 14 April 2015Slide 0
SKF & SustainabilityTaking Sustainability BeyondZero©
PA Strategic Energy Management: State College, PAPresented by Erika Huyett Mau, Manger of SustainabilityApril 7, 2015
Agenda SKF Introduction SKF & Sustainability SKF Beyond Zero ISO 50001 LEED and SFR Certifications
© SKF Group 14 April 2015Slide 2
SKF – a truly global company
Established: 1907
Sales 2012: SEK 64,575 million
Employees: 46,775
Production sites: 150 in 32 countries
SKF presence: in over 130 countries
Distributors/dealers: 15,000 locations
Global certificates: ISO 14001
OHSAS 18001
ISO 50001
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To equip the worldwith SKF knowledge
SKF Group Vision
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What is SKF knowledge?
SKF & Sustainability
The SKF Commitment
High EthicsOpennessEmpowermentTeam Work
VALUES
DRIVERSProfitabilityQualityInnovationSpeedSustainability
The SKF Code of Conduct
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SKF and sustainability
2001 1st year member in FTSE4Good
1998 ISO14001 worldwide certificate
1989 Environmental policy
1994 Environmental report
2000 Zero Accidents; 1st year member in Dow Jones Sustainability Index
2002 Code of Conduct (business ethics)
2005 OHSAS 18001 worldwide certificate (82 units, 23 countries, 108 sites 30 countries)
2007 SKF E2 solutions
2010 LEED certification requirements
BeyondZeroTM
2012 First fully integrated report BeyondZero portfolioWWF Climate Savers
2006
(63 units, 17 countries, 108 sites in 30 countries)
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SKF Care
Business Care Employee Care
Environmental Care Community Care
SKF BeyondZeroTMSKF Care
SKF Beyond Zero
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SKF’s Climate change strategy - Building on SKF BeyondZero
SKF BeyondZero
Reduce the negative environmental impact deriving from our operations.
Increase the positive environmental impact by innovating and offering new technologies, products and services with enhanced environmental performance characteristic to our customers.
Transport &distribution
Raw material &components
SKF’s own operations
Customer solutions
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+
0
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SKF BeyondZero portfolio
Designed for environmentDesigned for environment
A solution designed to provide positive environmental impacts
E2 DGBB -30% less energy compared to a standard bearing
SKF BeyondZero™ portfolioCustomer solutions with significant environmental benefits
Applied for environment
Stop-start system
Better fuel economy of the car
Designed for environmentDesigned for environment
A solution that through its application enables positive environmental
impacts
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BeyondZero portfolio
SKF Solar Linear Actuator contributes to increasing the energy generated by one solar panel so that 4.4 tonnes CO2 /year are avoided.
SKF Energy Monitoring Service for pump systems helped reduce 1,700 tonnes of CO2emission per year.
SKF products and solutions for renewable energy help displace power sector CO2.
SKF StopGo for two-wheelers helps reduce CO2 emissions by 5 g per kilometre.
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Climate strategy – BeyondZero – Targets
Transport anddistribution
Raw material and components
SKF’s own operations
Customer solutions
• 100% of SKF's energy intensive suppliers certified according to ISO 50001 Energy Management Standard by 2016.
• Reduce the total annual energy use of the SKF Group by 5 % below the 2006 level by 2016. • Reduce the energy use per production output (value added) by 5% year-over-year during the period (2012-2016).
• Reducing CO2 emissions/ tonne-kilometre for all transports managed by SKF Logistics Services by 30% compared to 2011 by the end of 2016.
• Quadruple (x4) the revenue from the BeyondZero portfolio from 2.5 Billion SEK in 2011 to 10 Billion SEK by 2016.
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Sound energy management cuts CO2 emissions
To reduce greenhouse gas emissions, such as CO2, the Group set a 5% absolute CO2 reduction target in 2006, with the strategy to simultaneously reduce energy intensity in our factories and reduce carbon intensity of the energy we use.
What we have achievedBetween 2002 and 2011, the Group’s total annual energy use was reduced by 13% , despite app. 56% growth in
our business (net sales).
Total energy use for the SKF Group
Now we step up even further
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The energy targets for the SKF Group
Twin targets are believed to best facilitate the reduction of greenhouse gas emissions and cost.1. Reduce the annual energy use [GWh] for the SKF Group
by 5% below 2006 levels in absolute terms by 2016, irrespective of volume growth; and
2. Reduce the energy use per production output [GWh/VA] by 5% year-over-year. (in other words, compare 2012 against 2011, 2013 against 2012 etc.)
These targets are very ambitious and tools will be key to successful Energy Management in order to
achieve them.
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Climate strategy – Targets & Performance
Transport anddistribution
Raw material and components
SKF’s own operations
Customer solutions
• 100% of SKF's energy intensive suppliers certified according to ISO 50001 Energy Management Standard by 2016.
• Maintain annual energy use of the SKF Group 5 % below the 2006 level by 2016. • Reduce the energy use per production output (value added) by 5% year-over-year during the period (2012-2016).
• Reducing CO2 emissions/ tonne-kilometre for all transports managed by SKF Logistics Services by 30% between 2011 2016.
• Increase the revenue from the BeyondZero portfolio from 2.5 Billion SEK in 2011 to 10 Billion SEK by 2016.
Targets• Total revenue of the BeyondZero amounts to 2,972 BSEK
• Of 42 total targeted suppliers:2 suppliers are certified9 suppliers have started
• In line with absolute target 1,678 GWh (10% below the target)
• Not in line with relative target. Energy use per output increased by 4%
•CO2 emissions per tonne-kilometre reduced by 3%
Performance, end of 2012
ISO 50001:Energy Management Systems
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ISO 50001- Energy Management System
Provides organizations with management strategies to:- Increase energy efficiency, - Reduce costs, - Improve energy performance,- Reduce depletion of resources, and- Mitigate world wide effects of energy use.
Individual organizations cannot control energy prices, government policies or the global economy, but they can improve the way they manage energy in the here and now.
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Focus on the key elements
• Energy Policy• Roles and responsibilities• Energy review• Energy performance indicators• Knowledge & awareness• Management review
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Energy review: Crucial planning point
The energy review is a thorough, data based investigation of the energy use on our site. It tells us:
• What are the significant areas of energy use?• How well are we performing?
( assessment of our systems)• Where are opportunities to improve energy performance?• The basis for an action plan.
A proper energy review requires resources -for measurements, competence and time!
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Keeping track - performance indicators
• If not watched, energy performance will deteriorate!• Define and monitor “Energy Performance Indicators”
- On a factory level- On a channel/system level- Normalize the data
• Set appropriate objectives and targets • Understand what drives energy consumption
(e.g. production rate, outside temperature…)• Implement a system of alarms, responses and reporting
Energy management is just like any other management:
Set targets, monitor, act on deviations
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Don’t let the message die: Awareness
Energy management requires engagement of all employees and contractors:
• Basic awareness training• Embed energy efficiency just like safety
- In our meetings- In our newsletters- On our display boards
• Have a means to submit suggestions for improvements
Visible and on-going support by site management needed
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ISO 50001- Energy Management System
Who at SKF is required to Implement ISO 50001?• Those facilities which use > 9 GWh/year
- Pilot Facilities – completed implementation in 2013• Hanover, PA – 35,100 GWh/year• Flowery Branch, GA – 28,100 GWh/year
- Phase II Facilities - to certify in 2014• Falconer, NY – 29,900 GWh/year• Elgin, Il – 21,200 GWh/year• Hobart, OK – 14,000 GWh/year
- Phase III Volunteer Facilities – to certify in 2015• Seneca, KS – 8GWh/year
SKF USA Inc. recommends ALL facilities utilize the ISO 50001 framework to reduce their own goals to meet CO2 Targets
LEED and SFR CertificationMinimum standards for new construction and major renovations
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Anywhere in the world, consistently & systematically
Constructed in a safe and respectful way
With world class environmental performance
Providing a safe and good working environment
How can we build factories and facilities that are…
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LEED certifications for all new factories
SKF USA Inc., Lansdale
SKF factory i Tver, Russia
Mysore, India
Jinan, China
1 Platinum, 6 Gold and 1 Silver completed to date, An additional 15 projects planned worldwide
On Average:• 24% energy savings• 50.9% water savings
over conventional
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Typical SKF factory (Based on energy use in 2010)
Energy
1841 GWh
Heat treatment 18%
The “LEED Factory” Energy split?
Central systems 28
%
HTGas
6%12% HT
El.
Compressed air
Grinding fluid
Honing fluid
Cooling water
Hydraulic oil
8%6% 4%10%
Direct electricity to machines 19%
Lighting 4%
HVAC 31%
LEED Covers this part (35%)How do we recover remaining 65% of typical energy use?
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SFR - Sustainable Factory Rating System
• Based on LEED approach.• Specific credits and prerequisite categories established for
typical SKF processes.• Designed to be used in conjunction with LEED for major new
factory construction (or major upgrading).• Reference guide has also been developed – in which best
practice examples and technologies are detailed.• Requires internal certification (Corporate Sustainability) –
playing a similar role to external LEED consultants but for this internal standard.
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Two Key SFR Guidance documents
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Categories in SFR
• Health and Safety• Process Media and Process Energy Carriers• Compressed air• Process Cooling and Heating• Metering, monitoring and targeting capability• Pollution control• Process waste management• Manufacturing equipment• Process Water• Heat treatment• Commissioning
Heat recovery
Fluid control
Machine demand
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Objectives behind SFR
• Reduced operating costs for energy, water, waste management and other utilities.
• Safer, healthier, quieter and cleaner working places.• Effective transfer and use of best practice. • Clearer requirements for production machines, equipment
suppliers, commissioning agents, etc. • Better monitoring and control capabilities• Supporting ISO 50001, 14001, OHSAS 18001 and related
Group targets.• A pragmatic demonstration of SKF leadership in this area.
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SFR – Status (Scorecard)
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CertifiedSilverGoldPlatinum
SFR (Sustainable Factory Rating) SystemMaximum 150 points; Scoring based on the percentage (%) of relevant points
25 - 40% 41 - 55%56 - 80%81% and above
Four levels of SFR certificationCertified is “Mandatory”
Scoring in SFR
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Business Care Employee Care
Environmental Care Community Care
SKF BeyondZeroTMSKF Care
SKF Care
Thank you!!!
© SKF Group 14 April 2015Slide 35
Business Care Employee Care
Environmental Care Community Care
SKF BeyondZeroTMSKF Care
SKF Care
Questions?