Boehringer Ingelheim‘s projects to reduce its carbon footprint

Augsburg, Oct 24-25, 2007Dr. H. Leidig, BI GmbH WEC-Roundtable 1

WEC-Roundtable – Augsburg – October 24-25, 2007„Corporate Strategies in Response to Climate Change“

Boehringer Ingelheim‘s projects to reduce its carbon footprint



BI’s projects to reduce its carbon footprintIs it a new topic? – Not really!

2 comics from 1979“Mickey Mouse and Goofy explore energy”

“Mickey Mouse and Goofy explore energy conservation”


BI’s projects to reduce its carbon footprintIs it a new topic? – Not really!

Giveaway of ‘Chicago Tribune’ from 198016-pages comic on energy conservation and energy

savings


BI’s projects to reduce its carbon footprintBoehringer Ingelheim in brief

Focus on Human Pharmaceuticals and Animal HealthFounded in Ingelheim, Germany, in 1885Products marketed in some 150 countriesMore than 38,400 employees (2006)Net sales of almost EUR 10.6 billion (2006)# 15 worldwide in terms of net sales (as of March 2007)Family-owned


We have been committed to Corporate Social Responsibility for over a century.Our caring culture embraces a broad range of activities for:•our employees and their families

•our neighbours•our society•our natural environment

www.boehringer-ingelheim.com/wecare

BI’s projects to reduce its carbon footprintBoehringer Ingelheim’s caring culture


BI’s projects to reduce its carbon footprint Energy efficiency is on everyone’s lipsEU-Directive 2006/32/EC on energy end-use efficiency and

energy services (Apr 2006)Minimum energy savings Target: 9% within 9 years (starting point: 01.01.2008)

Energy Policy Act (USA, 2005) andNational Action Plan for Energy Efficiency (NAPEE, USA 2006)

1st German ‘National Energy Efficiency Action Plan’ (EEAP, Oct 2007)

• Energy savings 9% until 2017• Detailed catalogue of measures

Gleneagles Plan of Action: Transforming the way we use energy (G8 Summit, Gleneagles 2005) International Energy Agency (IEA) 1. Report (2007): “Energy efficiency requirements in building codes – energy efficiency policies for new buildings”


BI’s projects to reduce its carbon footprint Driving energy efficiency through policyResearch and Development create new technologies

• R&D partnerships with industriesStandards set the floor

• Codes and standards (buildings, equipment, vehicles)• Energy efficiency performance standards for utilities

Incentives make them viable• Market transformers (tax incentives, project

(co)financing, trade-in programs with e.g. emissions credits)

Public education makes them widespread• Cosumer education and awareness campaigns• Labeling (e.g. US-Energy Star)


BI’s projects to reduce its carbon footprint Why energy efficiency?

Wide range of untapped energy efficiency potentials“Stop wasting energy (= money)!”

Mitigation of pollution and climate change“Negawatt/Negajoule produces no environmental (carbon) footprint!”

Increase of energy security position“Energy efficiency is a “homegrown” resource!”


BI’s projects to reduce its carbon footprint Management-oriented barriers to energy efficiency“Energy efficiency is one of many topics that are competing for industry’s time, resources, and leadership. Energy efficiency may be more effectively promoted not by itself, but as part of a larger agenda that is more likely to get executive attention”Frequent barriers:Lack of common understandingLack of staff & management awarenessLack of procedural coordinationAbsence of energy-related accountabilitiesInconsistent LeadershipLack of resourcesCompany’s business culture


BI’s projects to reduce its carbon footprint What is needed for industrial energy efficiency?For a company to achieve a high level of energy efficiency, to maintain it, and continuously improve it:

The company needs an organizational culture that supports continuous improvement

The company’s management must develop methods to “hardwire” energy-efficiency into existing management practices

Energy efficiency becomes a “key performance indicator” for managers and workers


BI’s projects to reduce its carbon footprint How BI is reducing its carbon footprint?Energy consumption & Performance indicators

Energy efficiency projects

Substitution of fossil fuels by secondary fuels

Use of renewable energy


BI’s projects to reduce its carbon footprint BI Energy consumption

Energy consumption[Mio GJ]

4,30 4,304,84

5,50 5,22 5,29 5,57

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

9,00

10,00

2000 2001 2002 2003 2004 2005 2006


BI’s projects to reduce its carbon footprint Main BI energy consumers

2006, ENERGY Consumption [Mio GJ]

20%

24%

4%6%5%

6%

9%

5%

21%Biberach - Komplex

Ingelheim - Komplex

Wien

Bedford

Petersburg

St. Joseph

Ridgefield

Columbus

rest of OPUs


BI’s projects to reduce its carbon footprint BI Energy consumption index

Energy consumption index[%]

10092 92

107

92

80 76

100 104

117125

105 102 99

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006

EI/Sales I

EI / Prod. I


BI’s projects to reduce its carbon footprint Environmental Key Performance IndicatorEnvironmental KPI shall be used for target-setting &

performance evaluation. Therefore: composite indicators are not useful

Many environmental figures (water consumption, COD-load, VOC-, SO2-, NOx-emissions, hazardous/domestic waste amount) are hardly useful as KPIs

Energy consumption seems to be the only significant KPI – not only for Operations but also for other organizational BI-units

More efficient use of energy is a “hot” political & social issue and directly linked to CO2-reduction/climate protection

Rising energy costs make energy consumption a more important economic factor for BI

Absolute energy consumption cannot be an useful KPI –specific indicators for all organizational areas have to be developed


BI’s projects to reduce its carbon footprint Energy efficiency indicators (EEI)“Those things that get measured and reported get

attention and resources”

e.g.Offices: aa m2 * Factor A Chem: Volume Time RequirementLabs: bb m2 * Factor B (VTR) [m³h/a]Sterile areas/building: cc m2 * Factor C Pharma:Ex areas/building: dd m2 * Factor D Manufacturing: Sterile Prod. [l/a] * Factor AWarehouses: ee m2 * Factor E "Coating" [kg/a] * Factor B

Other solids [kg/a] * Factor C Packaging: No of pacs [Mio PU/a] * Factor D Biopharma: Fermentation: "Volume Time Requirement"

(VTR) (m³h/a) Fill & Finish: Inputvolume freezedryer [l/a]

Net or gross area (NGFor BGF) [m²]

Building classes: Categories:

e.g.

Capacity use [%]

EEI = Energy Consumption [MJ]


BI’s projects to reduce its carbon footprint Energy efficiency projects“Buildings are the largest end use of energy”(OECD: Residential & commercial buildings account for 35%)Adequate wall & roof insulation/ A

window thermal performance/shading devices Efficient HVAC systems (heat recovery) B Thermal energy storage (cold water) C Intelligent control systems for ventilation D

(No of air changes) & lighting by e.g. motion/presence sensors

Trigeneration (Absorption chillers) E Change of “paradigm” in capital expenditure management

More emphasis on life cycle costs instead of initial investment cost


BI’s projects to reduce its carbon footprint Substitution of fossil fuels I

Substitution of 70,000 t/a

CO² of fossil origin

Lower emissionse.g. Reduction of:

Dust: 95%SO2: 95%NOx: 50%

Acting in sense of environmental policies

i.e. use of renewable energiesSubstitution of hard

coal byused wood (biomass

ordinance)

Increase of energy security & economics

Waste wood power plant at Ingelheim site


BI’s projects to reduce its carbon footprint Substitution of fossil fuels IIInvestment for conversion of power plant: 12,5 Mill €Start-up of “waste-wood”-boiler: Sept. 2004Fuel consumption: 70.000 t/a waste woodDelivery of waste wood by trucksDiesel consumption for truck transportation equals

to 600 t waste wood/year (i.e. < 1% of waste wood deliveries)

Surplus of emission certificates due to substitution of fossil fuels

Further conversion of power plant planned (secondary fuels instead of heating oil)


BI’s projects to reduce its carbon footprint Use of renewable energiesGeothermal energy

Use for heating/cooling of buildings F via heat pumps and thermal activation of constructional elements

• Summer season: Reduction of room temperature: appr. 5°C

• Winter season: Generation of 35 – 40% of room heating energy

PhotovoltaicsPilot installations in Ingelheim & BiberachCurrently not economical

However: solar energy is the energy of the future!


BI’s projects to reduce its carbon footprint Energy managementEnergy management is of increasing importance as part of overall facility management!

Energy consumption measured online and G energy data processing in central data base

Energy management is part of online Hecobalance system


BI’s projects to reduce its carbon footprint Emission trading in GermanyNational allocation plan I (2005-2007) Germany: 495 Mill tons

CO2/aNational allocation plan II (2008-2012) Germany: 453 Mill tons

CO2/ai.e. reduced allocation of emission certificates – mainly for power plants

Emission trading at BI• Surplus of certificates due to waste wood power plant sold in

2005 and 2006• Prices for CO2-certificates went down from 25 – 30 €/t CO2 in

1st quarter 2006 to less than 1 €/t CO2 at the end of 2006and remained there in 2007

• No certificates traded in 2007Emission trading does not function properly as supply and demand

of certificates are not balanced


BI’s projects to reduce its carbon footprint The Carbon Neutral ChallengeTo be carbon neutral is a real challenge and

currently hardly to achieve for corporations!

Voluntary compensation activities:• “Planting trees”• “Buying green power”

HOWEVER:It has the flavour of “eco shrove-money” and

I “sale of indulgences”


Thank you for your attention!

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Boehringer Ingelheim‘s projects to reduce its carbon footprint

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