Download BASELINES AND INVENTORIES

PEW CENTER ON GLOBAL
CLIMATE CHANGE
EARLY ACTION CONFERENCE
“THE WHY AND HOW OF
ENERGY BASELINES: THE UTC
EXPERIENCE”
SEPTEMBER 14, 1999
JUDITH BAYER
DIRECTOR, ENVIRONMENTAL
GOVERNMENT AFFAIRS
[email protected]
UNITED TECHNOLOGIES
CORPORATION
UTC CORPORATE
UTC STATISTICS
• 43RD LARGEST U.S. CORPORATION
• $25.7 BILLION IN 1998 REVENUES
• 1,900 LOCATIONS IN 183
COUNTRIES
• 49% EMPLOYEES OUTSIDE U.S.
BASELINE BENEFITS
• MANAGEMENT TOOL
– DETERMINE MAGNITUDE
– IDENTIFY KEY SOURCES
– REVEAL OPPORTUNITIES
• LEARN BY DOING
• “NO REGRETS”
BASELINE USES
• BENCHMARKING
• CREDIT FOR EARLY ACTION
• EMISSIONS TRADING
VALUE OF VOLUNTARY
BASELINE EFFORT
• ABILITY TO TAILOR INVENTORY TO
COMPANY NEEDS
• PERMIT EXPERIMENTATION &
INNOVATION
• GAIN COMPETITIVE ADVANTAGE
• HELP SHAPE FUTURE REGULATORY
PROGRAMS
UTC 1996
ENVIRONMENT,
HEALTH & SAFETY
POLICY
“Conserve natural
resources in the design,
manufacture, use and
disposal of products and
delivery of services.”
JULY, 1998
STATEMENT OF UTC
CHAIRMAN GEORGE
DAVID
“We along with many others,
recognize the substantial ambiguities
and open questions in research on
global climate change. But we
believe also that the prudent course
is to work to reduce greenhouse
emissions.”
UTC BASELINE
• CORNERSTONE FOR VOLUNTARY
ENERGY CONSERVATION
PROGRAM
• CREATED IN 1997
• 36 COUNTRIES INVOLVED
1997 UTC BASELINE
SUMMARY
• 229 MANUFACTURING AND KEY NONMANUFACTURING SITES
• EMPLOYEE TRAVEL & CORPORATE
AIRCRAFT
• 37.5 TRILLION BTUs CONSUMED
• 2.1 MILLION METRIC TONS OF CO2
EMISSIONS
• 1,522 BTU’S USED TO GENERATE $1
SALES
UTC RESOURCE
CONSERVATION
GOALS
• 25% REDUCTION IN ENERGY AND
WATER USE BY 2007
• 1997 BASELINE
• GOAL NORMALIZED BY SALES $
• ELIMINATE 381 BTUs FOR EVERY
SALES DOLLAR
DESIGN ISSUES
• HISTORICAL VERSUS CURRENT
BASELINE
• DOMESTIC VERSUS INTERNATIONAL
• OPERATIONS VERSUS PRODUCT
• CO2 VERSUS BTU
MORE DESIGN
ISSUES
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OWNERSHIP
ADJUSTMENTS
METRICS
FUEL TYPES
MATERIALITY
FLEXIBILITY
OWNERSHIP
• UTC USES MANY ORGANIZATIONAL
STRUCTURES WITH CONSTANT
CHANGES
• ALL ENTITIES WHERE UTC HAS AT
LEAST 50% OWNERSHIP INCLUDED IN
CURRENT BASELINE
• POLICY BEING REVIEWED WITH
POTENTIAL CHANGE TO “EFFECTIVE
MANAGEMENT CONTROL” CRITERIA
BASELINE
ADJUSTMENTS
• IF/WHEN TO ALTER BASELINE
– ACQUISITION
– DIVESTITURE
– INCREASE/DECREASE IN OUTPUT
– CHANGE IN PRODUCT MIX
– OUTSOURCING
– INSOURCING
– WEATHER
UTC APPROACH
• NO BASELINE ADJUSTMENTS SINCE USING
RATE-BASED SYSTEM
• IDEALLY SALES AND ENERGY DATA RELATED
TO ACQUISITION AND DIVESTITURE
REPORTED IN SAME YEAR
• POLICY ALLOWS 2 YEAR DELAY IN REPORTING
ENERGY USE, BUT IS UNDER REVIEW
• INTERNAL ANALYSIS TO DETERMINE
PERFORMANCE VS NON-PERFORMANCE
FACTORS
ENERGY SOURCES
• ELECTRICITY
• PROPANE
• NATURAL GAS
• BUTANE
• OIL
GASOLINE
DIESEL
COAL
JET FUEL
SCOPE
• ALL MANUFACTURING SITES
• NON-MFGR SITES WITH $100,000
ENERGY & WATER COSTS
• TRAVEL AND CORPORATE
AIRCRAFT
FLEXIBILITY
• BALANCE NEED FOR
CONSISTENCY WITH FLEXIBILITY
• INTERNAL CAPABILITY TO TRACK
ENERGY USE PER EMPLOYEE/SQ
FEET/EARNED HOURS, ETC.
DATA QUALITY
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TRAINING
MANAGEMENT COMMITMENT
USER FRIENDLY
AUTOMATION
CONSTANT IMPROVEMENT
SEVERAL YEARS REPORTING
EXPERIENCE NEEDED TO INSTILL
CONFIDENCE AND “DE-BUG” SYSTEMS
LESSONS LEARNED
• MANAGEMENT SUPPORT IS ESSENTIAL
• CREATE BOUNDARIES THAT ARE RELEVANT AND
APPROPRIATE TO COMPANY NEEDS
• USE DATA SOURCES THAT ARE READILY AVAILABLE AND
EASILY UNDERSTOOD
• MAXIMIZE AUTOMATION TO ENSURE DATA QUALITY
• PROVIDE ADEQUATE TRAINING
• ENSURE CONTINUOUS IMPROVEMENT
• USE CROSS FUNCTIONAL INPUT
• USE PILOT PROGRAM AS TEST LAB
• TAKE THE TIME TO DO IT RIGHT