Carbon Proofing the Supply Chain
Planning workshops
– sample outcomes from
a typical five-day program
DD/MM/YYYY
The material provided in this document has been produced
in conjunction with our partner Energetics Pty Ltd.
This guide has been produced with the assistance of funding
provided by the Commonwealth Government through the
Department of Education, Employment and Workplace Relations.
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Planning workshops – sample outcomes
Contents
1
Introduction ......................................................................................................................... 1
2
Record of Program participants ............................................................................................. 1
3
Schedule to monitor and continue development of Carbonproof plans .................................. 1
4
Global Trends and Business Plans (Module 1) ........................................................................ 3
4.1 Purpose of this module ............................................................................................................3
4.2 Business and resource efficiency goals ....................................................................................3
4.3 Global trends and response to these trends ............................................................................3
4.4 The strategic intent of our sustainability activities ..................................................................4
4.5 Global trends action plan to inform our business planning activities ......................................6
5
Carbon inventory planning (Module 2) .................................................................................. 7
5.1 Purpose of this module ............................................................................................................7
5.2 Business and resource efficiency goals (extract from Module 1) ............................................7
5.3 Current carbon emissions for this site......................................................................................8
5.4 Associated risks and opportunities from the emerging carbon economy? .............................8
5.5 Carbon inventory action plan to inform business planning at the site ....................................9
6
Energy Procurement (Module 3)...........................................................................................11
6.1 Purpose of this module ......................................................................................................... 11
6.2 Energy markets ...................................................................................................................... 11
6.3 Energy procurement action plan ........................................................................................... 11
7
Resource efficiency opportunities plan (Module 4) ...............................................................12
7.1 Purpose of this module ......................................................................................................... 12
7.2 Business and resource efficiency goals (extract from module 1) .......................................... 12
7.3 Energy use baseline ............................................................................................................... 13
7.4 Energy efficiency management action plan .......................................................................... 14
8
Management systems improvement plan (Module 5) ...........................................................15
8.1 Purpose of this module ......................................................................................................... 15
8.2 Management systems to be enhanced to realise and maintain savings .............................. 15
8.3 Management systems improvement plans ........................................................................... 15
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Planning workshops – sample outcomes
1
Introduction
This document is a SAMPLE discussion record following the conduct of the five Carbonproof planning
workshops. The purpose of these notes is to provide a practical example of what the outcomes from
these sessions could look like, prepared as a record of the sessions that captures the intent of the
SLT in response to each workshop. This record will assist with building a useful Carbonproof plan for
a site. The final plan should be created based on the outcomes noted here, and maintained /
reviewed using site’s normal or enhanced management systems.
This discussion record includes the outcomes from the following modules
1. Module 1: Global trends and business planning
2. Module 2: Carbon management plan
3. Module 3: Energy procurement action plan
4. Module 4: Resource Efficiency Management plan
5. Module 5: Management systems improvement plans
2
Record of Program participants
Name
Position
Responsibility for resource efficiency
Full name of all
participants
This should ideally include senior
people at site (SLT), and may
include corporate and external
personnel if needed
This is not a job title, but should describe each
person’s responsibility for resource efficiency /
carbon management in their own words
3
Schedule to monitor and continue development of Carbonproof plans
The management and improvement plans generated during this Carbonproof program will be
monitored by the Site Leadership Team at the following regular management and improvement
forums.
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Planning workshops – sample outcomes
Plans
Meeting / forum
1 (e.g. SLT 6month review)
Meeting / forum
2 (e.g. Weekly
Operations)
e.g. Resource Efficiency Opportunities
e.g. People & Accountability
√
√
e.g. Leadership & policy
√
e.g. Carbonproof business plans
e.g. Training systems
Meeting / forum
3 (e.g. annual
pre-budget
planning)
√
√
e.g. Communication systems
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√
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Planning workshops – sample outcomes
4
Global Trends and Business Plans (Module 1)
[Record of the discussion only]
4.1
Purpose of this module
To illuminate the global trends affecting this site’s use of energy and water so that the SLT can
identify actions to manage the impacts of these trends on the site
4.2
Business and resource efficiency goals
What business goals do you have for this site?
1. Reduce costs and comply
2. Meet customer requirements
3. Promote clean/green image
4. Employee buy-in ownership
5. Maximise efficiency within payback hurdle (e.g 4yr payback for resource efficiency projects)
6. Grow production output
7. Balance core business efficiency production with green agenda
8. Intent to reduce dependency on electricity grid
What resource efficiency management goals do you have for this site?
1. Define this sites resource efficiency opportunities
2. Develop the capacity to measure and report performance
3. Build transparency into energy/water/carbon performance across our supply chain from raw
materials sourcing to shelf
4. Identify and quantify the total savings from existing opportunities
4.3
Global trends and response to these trends
What are the global trends affecting resource use at this site?
Refer to the Global Trends presentation. For e.g.:
1. Population is rising – demand for more food, more energy, more water more carbon
mitigation
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Planning workshops – sample outcomes
2. Level of carbon reporting is rising – demands from customers, shareholders & government
3. Cost of energy is rising – demands to reduce costs from business owners and boards
4. Demand for cleaner energy – reduced dependency on solid/gas fuel over time and increase
use of renewable energy sources
What are or could be the impacts of these trends on this site?
1. Increased accountability for all resource usage
2. Increased pressure to define supply chain impacts
3. Product /Market acceptance based on global pressure
4. Challenge to prove current status
5. Highlighting our shortages
6. More knowledge required for staff to respond appropriately
7. Opportunity to improve and influence resource use
8. Licence to operate now also depends on environment footprint
9. We need to know where we are now
10. Compliance costs
4.4
The strategic intent of our sustainability activities
Using the model shown below, the consensus was that the site is primarily focused on “Cost and
Compliance” however the SLT considers the site to be not too far away from being seen as
“proactive” with respect to sustainability practices.
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Planning workshops – sample outcomes
Sustained
Advantage
Innovator
• Government Policy
• Industry Innovation
• Consumer Demands
Proactive
Compliant
Organisations will develop at
different speeds and early
movers will create sustainable
competitive advantage
Immediate
Timeframe of thinking
Industry development is
driven by relative impacts of:
Aware
Cost
Reduction
Energy, Water,
Waste efficiency
Abatement
Opportunities
Value Chain
Management
Life Cycle
Optimisation
Sophistication of energy
management
As we reflect on global trends that impact on the long term viability of our business as well as our
business’s maturity in sustainability….
What question can we now offer that when resolved will put this site in a better position to
respond to these global trends (and perhaps later direct a revision of our policies)?
These questions reflect our strategic response to these global trends as well as our improvement
goals:
1. How can we most effectively and transparently communicate our resource use efficiency to
customers/employees/regulators/consumers?
2. How do we measure where we are now? (in response to Global trends)
3. How does our export customers’ government legislative stand on carbon impact on our
business?
4. How can we use the emerging customer requirements to benefit our business?
5. What and how do we measure, to be able to meaningfully respond to these trends & should
we?
6. How do we harness the knowledge and enthusiasm and ideas from our people on the topic
of resource efficiency?
See the SLT’s strategic response so far to these questions in the carbon management action plan in
Section 5.
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Planning workshops – sample outcomes
4.5
Global trends action plan to inform our business planning activities
What first activity can you now undertake to progress the underpinning strategic intent of these
questions (see list above)?
Activity
Who
with
by when
e.g. Develop energy and water KPIs for the site
Name
Name
DD/MM/YY
e.g. Re-circulate company / site environmental
efficiency policy for review of energy, water,
carbon aspects
e.g. Determine timeframes for measurement
e.g. Analyse current energy usage and look at
where we should install sub-meters /
instrumentation
e.g. Integrate Carbonproof program with business
improvement process
e.g. Investigate opportunities to communicate
carbon credentials in contracts with customers
and suppliers
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Planning workshops – sample outcomes
5
Carbon inventory planning (Module 2)
[Record of the discussion only]
5.1
Purpose of this module
To reflect on the current status of the carbon economy and the site’s current carbon inventory
(Scope 1 and 2 emissions) so that we can:
1. Identify risks and opportunities emerging for the industry and this site
2. Develop a plan to manage risks and opportunities (including supply chain interventions)
3. Develop an understanding of the tools and practices required to refine and maintain a
carbon inventory and carbon management plan
5.2
Business and resource efficiency goals (extract from Module 1)
Which business goals will be supported by better understanding and management of carbon
emissions at this site?
1. Compliance
2. Sustainability reporting
3. Reduce costs and comply
4. Meet customer requirements
5. Promote clean/green image
6. Employee buy-in ownership
7. Maximise efficiency within payback hurdle (e.g 4yr payback for resource efficiency projects)
8. Grow production output
9. Balance core business efficiency production with green agenda
10. Intent to reduce dependency on electricity grid
Which resource management goals will be supported by better understanding and management
of carbon emissions at this site?
1. Define this sites resource efficiency opportunities
2. Develop the capacity to measure and report performance
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Planning workshops – sample outcomes
3. Build transparency into energy/water/carbon performance across our supply chain from raw
materials sourcing to shelf
4. Identify and quantify the total savings from existing opportunities
5.3
Current carbon emissions for this site
What is this site’s carbon inventory?
Reference to the Carbon Introduction presentation, highlighting slides showing the carbon inventory
How are carbon emissions calculated?
Reference to the Carbon Introduction presentation, highlighting slides showing the carbon inventory
and reference to the NGER website (which uses NGA Factors)
5.4
Associated risks and opportunities from the emerging carbon economy?
What risks and opportunities are arising for this site from the emerging carbon economy?
Risks
Opportunities
Loss of customers due to competitors making an
early move on carbon labelling or carbon related
information/reporting
Drives Fuel efficiency
Focus on carbon administration rather than
production
Increase of customer product acceptance
due to proven carbon proofing indicators
Lower returns due to cost rises
Chance to upgrade step change
improvement-get ahead of the
competition
Rising costs of compliance
Include cost of carbon in investment
decisions
Risks to quality due to minimisation measures
Efficiency gains
Carbon leakage
Customer satisfaction
Distractions due to changing definitions calculations
and other criteria imposed by government
Quality improvement
Risks/Opportunities considered by the SLT to have the most impact and to be acted upon now are
BOLD above.
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Planning workshops – sample outcomes
5.5
Carbon inventory action plan to inform business planning at the site
Having identified risks and opportunities associated with the emerging carbon economy the SLT
have created an executive brief to direct the site’s response to the emerging carbon economy.
The brief includes the questions created earlier in response to Global Trends plus guidelines arising
from the presentation on the carbon economy and the site’s carbon inventory. There is also a list of
actions to be undertaken to progress aspects of this improvement brief.
Strategic Question: How can we use these emerging customer requirements to benefit our business?
Guidelines from the SLT:
1. We should create a standard approach for all sites in regard to
recording/reporting/communication and promotion of carbon related credentials so that
there is a unified direction reducing admin and compliance workload at sites.
2. We should initiate a customer expectation program in relation to Carbon Footprint, finding
common expectations/requirements to promote /support current and new customer
markets.
Strategic Question: What and how do we measure, to be able to meaningfully respond to these
trends?
Guidelines from the SLT:
We should measure our resource inputs so that we can focus on the best return for effort.
Strategic Question: How can we keep our focus on resource efficiencies while managing appropriate
aspects of our carbon agenda?
Guidelines from the SLT:
1. We should make the opportunities / project list more “alive” so that only the best
opportunities are chosen i.e. active, alive, current and complete
2. We should establish a carbon newsletter 6 monthly so that all site employees are
appropriately informed.
3. We should review and confirm all carbon, energy and water reporting requirements and
determine our level of compliance and accuracy.
What first activity can you now undertake to progress the executive brief (guidelines) created for
carbon inventory at the site?
Activity
Who
With
by when
Action 1
Name
Name
DD/MM/YY
Action 2, etc
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Planning workshops – sample outcomes
Activity
Who
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With
by when
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Planning workshops – sample outcomes
6
Energy Procurement (Module 3)
[Record of the discussion only]
6.1
Purpose of this module
To reflect on the business & resource efficiency goals identified so far in this program (from Module
1) so that we can:
1. Use energy market & price trends to inform business planning
2. Communicate and investigate contracts and market intelligence with engaged stakeholders
3. Understand resource use and price impacts
4. Identify opportunities to reduce costs
5. Facilitate Implementation of cost reduction opportunities
6.2
Energy markets
A presentation on energy markets was discussed by the Site Leadership Team. An initial high level
review of the site’s invoices raised a number of opportunities including the following:
1. Variations in rates between invoices to admin / warehouse meter v factory meter
2. Power factor anomalies
3. Peak demand rate review
6.3
Energy procurement action plan
After further discussion the following actions to progress investigations were agreed:
Activity
Who
with
By when
Consolidate all data so that it can be easily reviewed
Name
Name
DD/MM/YY
Power Factor Correction: Check existing units
Variations in rates between invoices. Investigate
invoices via a more thorough analysis of 12 months
data
Peak Demand: Call network provider to discuss
consolidation of bills and review peak demand re-set
opportunity
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Planning workshops – sample outcomes
7
Resource efficiency opportunities plan (Module 4)
[Record of the discussion only]
7.1
Purpose of this module
To reflect on the business & resource efficiency goals identified so far in this program (from Module
1) so that we can:
1. Inform business planning of energy efficiency opportunities
2. Communicate and investigate energy efficiency opportunities with engaged stakeholders
3. Better understand energy use
4. Identify energy efficiency opportunities
5. Facilitate implementation of quick win and strategic energy efficiency opportunities
6. Measure and verify energy efficiency opportunities
7.2
Business and resource efficiency goals (extract from module 1)
Which business goals will be supported by better understanding and management of energy use at
this site? (Selected from Module 1)
1. Compliance
2. Employee “buy in”
3. Maximise production efficiency within payback hurdles
4. Intent to reduce dependency on electricity grid
Which resource management goals will be supported by better understanding and management
of energy use at this site? (Selected from Module 1)
1. Define site resource efficiency opportunities
2. Develop capacity to measure and report performance
3. Build transparency into energy/water /carbon performance across supply chain from raw
materials sourcing to shelf
4. Identify and quantify the total savings from existing opportunities
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Planning workshops – sample outcomes
7.3
Energy use baseline
An overview of resource efficiency was presented for discussion by the SLT. The energy use baseline
for the site was developed and presented for discussion by the SLT. The baseline and accompanying
presentation will be included in the final version of the site’s Carbonproof plan.
What aspects of this baseline presentation should we consider in our resource efficiency
management plan?
Guidelines suggested by the SLT to better manage energy efficiency at the site:
1. This is an opportunity to increase sharing of data and information across sites so that effort
to identify opportunities is reduced and savings are realised quicker
2. Cost per unit of production is available at a high level only and a bit crude for establishing
performance
3. Obtain or develop P&ID drawings
4. Load profile data and graphs could be used as an engagement tool
5. We should communicate resource efficiency plans to Managers
6. We should use our toolbox formats to communicate our intention and engage staff to
contribute
What efficiency opportunities are arising from this baseline analysis, additional to the existing
project list?
1. The peak demand has not been reset and is currently at 1,275 kVA. The factory has not
exceeded 1,100kVA for over two years. If the site reset its peak demand charge to 1,100kVA
and did not exceed it for one year, savings in excess of $9,000 per year could be achieved.
2. Power factor is currently 0.85. If this was corrected to 0.98 an additional $6,500 per annum
savings could be achieved by resetting the demand charge to 975 kVA.
3. The 15 kW boiler hot water supply pump could be controlled using a VSD, and could save
$2,500 per year.
4. Factory lighting – the proposed upgrade could be improved on, with UPS metal halide, T5
bundles being two options to consider. We should also trial LED in selected applications.
5. Then main chiller capex should be amended to specify best CoP or IPLV, and not simply
efficiency at full load.
6. Our start-up and shut-down procedures are not optimal. Improved communication between
scheduling and production supervisors will help to improve this and reduce waste.
7. A compressed air leak survey is to be commissioned to confirm that leak rate is high, as
suspected.
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Planning workshops – sample outcomes
What brief (guidelines) can we offer to create a communication campaign to inform staff of our
intent and their role?
To be included in a final version of this plan
What brief (guidelines) can we offer to direct the communications to the REO staff about our
intent and their role?
To be included in a final version of this plan
7.4
Energy efficiency management action plan
Activity
Who
with
By when
Action 1
Name
Name
DD/MM/YY
Action 2, etc
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Planning workshops – sample outcomes
8
Management systems improvement plan (Module 5)
[Record of the discussion only]
8.1
Purpose of this module
To reflect on the business & resource efficiency goals and the efficiency opportunities identified so
far in this program so that we can:
1. Diagnose the management systems that should be improved to realise the available cost
savings.
2. Redefine the priority actions from the diagnostic using “systems thinking” so that a brief to
direct the necessary changes to these systems can be delegated to the owner of that system
and acted upon immediately.
8.2
Management systems to be enhanced to realise and maintain savings
A management systems diagnostic was administered at the site. The following systems were
identified as requiring attention to support our goals.
1. Leadership and policy
2. Energy metering and reporting system
3. Resource (Energy water &waste) assessment system
4. Human resources accountability system
8.3
Management systems improvement plans
Improvements briefs have been created and will be progressed by the SLT. Refer to the Project Brief
document for examples of projects to be progressed, including each of the 4 systems to be
enhanced as identified in this sample record on Carbonproof planning workshops.
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15