Sustainable Manufacturing A Comprehensive Strategy
Transcript of Sustainable Manufacturing A Comprehensive Strategy
Sustainable Manufacturing
Sabine Klages-BuechnerManager, International Government Affairs
OECD Workshop, Copenhagen, Denmark
June 21, 2007
A Comprehensive Strategy
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DuPont in 1802 DuPont in 2006
60,000 employees
210 sites
> 75 countries
~ 500,000 SKU’s
> 400,000 customers
$36 billion investment
$1.3 billion investment in R&D
$27 billion revenue
100 employees
1 site
1 country
1 product
12 customers
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Our VisionTo be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere.
Our MissionThe creation of shareholder and societal value while we reduce the environmental footprint along the value chains in which we operate.
• Safety and Health• Environmental Stewardship• Highest Ethical Behavior• Respect for People
Core Values
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Don’t do the wrong thing just more efficiently but do the right thing more sustainably!
Societal Issues
Climate Change Population Growth
Food
Energy
BiodiversityEnvironmental DegradationHealth
Markets
Supply Chain
Manufacturing
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First Goal: 1990’s for 2000
Footprint ReductionParameter 1990 - 2000 Goal
Air Toxics (60%)
Air Carcinogens (90%)
Hazardous Waste (Dry) (35%)
Energy Flat
GHG Emissions (40%)
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Step 1: Define – Plan – Measure - Improve
Progress toward Goals – Global Planning, Measurement and Reporting
• Businesses prepare annual “Environmental Plan”
• Sites provide waste and emissions data to Corporate database
• Reports due by May 1 of each year to web-based system
• Corporate team conducts quality assurance of data
• Data is compiled to meet external reporting commitments
• 80/20 Analysis
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80/20 Cost Benefit Analysis• Project costs, savings and environmental benefits are reviewed
and compiled in the corporate environmental plan• Experience: 80% of the waste and emissions reductions can be
accomplished for 20% of the total cost• Most cost effective projects are recommended for
implementation• Less efficient projects are held for future review and potential
improvements
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0 20 40 60 80 100Percent of total implementation cost
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Efficient Marginal
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Commitment to Continuous Improvement
DuPont is a strong believer in the Continuous Improvement of existing manufacturing practices and evolution of the design of new facilities to reduce environmental footprint.
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Continuous Improvement
• Processes• Senior leadership selects focus areas and identifies targets
• Regions and businesses can add to these goals
• Accounting systems are defined to track progress
• Competency Centers and specialists are made available to providespecialized technical assistance and to create best practices
• Projects and programs are typically funded within operating budgets
• Progress is reviewed by senior leadership quarterly and annually
• Tools • Management Practices
• Energy Efficiency
• Best Practices for Pollution Prevention
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Reward Employee Initiatives
Annual Sustainable Growth Excellence AwardNomination period open March 15 to May 1Categories include:
• Reducing DuPont’s Footprint• Goal of Zero Injuries, Illnesses, and Incidents-• Goal of Zero Waste and Emissions-• Reduced Use of Depletable Raw Materials and Energy
• Serving the Marketplace• Products that reduce greenhouse gas emissions-• Revenues from non-depletable resources• Products that protect people
• Stakeholder Engagement
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First Goal: 1990’s for 2000
Footprint ReductionParameter 1990 - 2000 Goal
Air Toxics (60%)
Air Carcinogens (90%)
Hazardous Waste (Dry) (35%)
Energy Flat
GHG Emissions (40%)
Achieved all goals ahead of time
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Societal Issues
Climate Change Population Growth
Food
Energy
BiodiversityEnvironmental DegradationHealth
Markets
Supply Chain
Manufacturing
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=> environmental impacts, e.g. energy consumption, greenhouse gases, etc.
MS clip art style 592
AirEmissions
WaterborneWastes
Solid WastesCo-Products
EnergyRaw Materials
TransportTransportTransport
Product Manufacturing
Product Use
Recycle
Waste Management
Raw Material Extraction
LCA System
Cradle-to-Grave LCA
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ProductsRawMaterials
Intermediates Use & Maintenance
End ofLife
ProcessCradle-to-Gate Cradle-to-Grave
Environmental Footprint along the Value Chain
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Set New 2010 Goals – More Site Footprint Reduction
• Energy in 2010 flat with 1990Down 7% in 2005
• 65% reduction in CO2-equivalent greenhouse gas emissions from global operations versus 1990 base
Down 72% in 2003
• 10% renewable energy at costs competitive with best available fossil fuels
Almost 6% in 2005, saving $10 million per year
• 25% of revenues from non-depletable feedstocks 17% in 2005
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Carried Forward GoalsFootprint Reduction
Parameter 1990 - 2000 Goal
Air Toxics (60%)
Air Carcinogens (90%)
Hazardous Waste (Dry) (35%)
U. S. TRI “Releases”
Energy Flat
GHG Emissions (40%)
Note: Production increased 40% during this period.
2005 Actual
(76%)
(92%)
(51%)
(80%)
(7%)
(72%)
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Societal Issues
Climate Change Population Growth
Food
Energy
BiodiversityEnvironmental DegradationHealth
Markets
Supply Chain
Manufacturing
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DuPont’s new 2015 Sustainability GoalsWe are reducing DuPont’s footprint
• Greenhouse Gas Emissions• Water Conservation • Fleet Fuel Efficiency• Air Carcinogens• Independent third-party environmental management
systems verification
We help others to reduce their footprint• Environmentally Smart Market Opportunities from R&D
Efforts
• Products that Reduce Greenhouse Gas Emissions
• Revenues from Non-Depletable Resources
• Products that Protect People
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Broad Range of Opportunities
• Refrigerants with lower greenhouse warming potential
• Automotive finishes with lower VOC content
• Coatings and engineering polymers based on renewable materials
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DuPont Refrigerants Vision—The Science of Cool™
We will use our science and technology, market knowledge and global reach to provide sustainable materials and solutions to enhance personal comfort; enable food preservation; improve industrial processing and reduce environmental footprints.
Next Generation Refrigerants & Cooling TechnologiesNext Generation Refrigerants & Cooling Technologies
MobileA / C
RefrigerantFluids
Not in KindCooling
Technologies
Lubricants&
Secondary Fluids
Emission ReducingSeal Technologies &System Monitoring
StationaryA / C
StationaryRefrigeration
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Reducing reliance on fossil fuels through bio-based materials
DuPont has nearly a dozen business opportunities for bio-based materials using renewable resources.
Applications• Fibers, fabrics and carpeting made from
DuPont™ Sorona®, a polymer derived in part from corn
• Biobutanol, an advanced biofuel being developed in partnership with BP
More under : www.renewable.dupont.com.
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Biofuels
DifferentiatedProducts
Cellulose
Starch
Biobutanol
PlantFeedstocks
BiofuelsBiochemicals
FermentationProcesses
Agricultural Inputs
Conversion to Sugars
Sugar
SeedCrop Protection
CO2
Ethanol
Bio-PDOTM
Biochemicals
DuPont Biorefinery Value ChainCarbohydrates to Fuels & Chemicals
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RENEWABLEFEEDSTOCKS
BIOBUTANOL
WORLDWIDE FUEL MARKETS
• Powerful partnership• Shared commitment• Global reach • Complementary capabilities
DuPont - BP Biofuels PartnershipBiobutanol Development & Launch
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Other Technological Opportunities, e.g. “Green Chemistry”• Need
• Development of new formulations
• Design of new chemical processes
• Predictable regulatory environment that allows for flexibility in solutions
• Available capital and time
• Expected Outcome• Inherently safer products and / or processes
• Less waste / pollution / energy use (balance)
• More cost efficiency
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Current Barriers
• Investment
• Infrastructure and integration
• Tax code treatment of investment and depreciation
• Short compliance time lines
• Environmental regulations often geared toward control equipment rather than emissions
• Technology gaps
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“Flat” Energy has Saved Real MoneySince 1990, production volume grew by 40% while energy use remained flat
1990 1997 2004
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Production
Cumulative Savings @ $20-60/bl of oil = $3.0B
20 MM barrels of oil
$800 MM or 60 cents per share
100Energy Use
Baseline = ¼ Quad Btu
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Energy efficiency improved due to portfolio changes, cogeneration, yield improvements, capacity utilization, better uptime and conservation measures.
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Sustainable Manufacturing is Good for Business• Energy costs saved > $3.0 Billion
• Renewable energy saves more than $10 Million/yr.
• Total Environmental costs reduced >$250 Million per year
• “Hidden” Capacity = hundreds of $ Millions in reduced investment (1st pass yield improvement)
• Waste reduced = product sold
• Improved Operational Excellence
• Green House Gas Credits sold on Chicago Climate Exchange
• DuPont reputation transformed
Don’t do the wrong things just more efficiently, but do the right things more sustainably !