CSR Europe “Energy Efficiency: Shaping CSR in

Europe”

Stefan Crets Executive Director

5 November 2013

This material may not be reprinted or redistributed without the express written consent of CSR Europe

CSR Europe is the leading European network on CSR

...and 37 National PartnersReaching out to +5.000 companies in Europe

Enterprise 2020:

Social innovation = new ideas, business models, products & services that resolve existing sustainability challenges

Energy efficiency in the EU (1)

Overarching strategy: Smart, Sustainabel and Inclusive Growth

EU Climate and Energy Package: decopule growth from resource use

3 targets:

1. 20% GHG reduction2. 20% of energy coming from renewables3. 20% reduction in energy use

Energy efficiency in the EU (2)

KEY FEATURES

Directive 2012/27/EU on energy efficiency

Adopted in October 2012, is the follow-up to the EU 2020's climate and energy package of legislation

- Establishes a common framework of measures for the promotion of energy efficiency to achieve the Union’s 2020 20 % headline target on energy efficiency

- Removes barriers in the energy market and helps overcoming market failures that impede efficiency in the supply and use of energy

- Requires EU countries to draw up a roadmap to make the entire building sector more energy efficient by 2050 – public buildings to lead

- Does not introduce binding targets at national level, but "binding measures"

- Set new standards for public procurement and energy audits for large companies

Energy Efficiency: still a hidden treasure ?

Governance & Accountability:

AND

Increase of the Energy Efficiency of 26% from 2002 to 2011

Innovative, energy-efficient system of production: Production Verbund: “intelligent interlinking of production plants, energy flows and infrastructure […] raw materials and feedstock are transported through a dense network of piping, costs of storage are eliminated[…]”

Co-generation: “use of a heat engine or power station to simultaneously generate electricity and heat”

CSR Europe Members leading in Energy Efficiency:

Verbund system

BASF with VERBUND system and co-generation saves 17 million MWh per year = 3.4 million metric tons CO2 emissions reduction per year.

Governance & Accountability:

Toyota Manufacturing UK“Eco Plant producing Eco Products

by Eco-Minded People”

1. Eco Plant

•• 16,800 solar panels installed at TMUK’s Bernaston plant in Derbyshire

•• Certified Environmental Management System (EMS) and 37 of Toyota’s retailers are ISO 14001 certified

How companies tackle energy efficiency ?

2. Ecoproducts •In 2010 TMUK became the first car

manufacturer in Europe to produce a full hybrid vehicle.

•First step toward Toyota’s goal: to deploy its full hybrid drive technology across the entire model range by the early 2020s.

3.Eco-minded people: •Eco Points’ system: each employee

has to choose and carry out six environmental activities in order to complete their card.

•E-Learning course launched to all plants. The course is aimed at increasing awareness of global environmental concerns.

Social Innovation:

Social Innovation:

• New and innovative components in lithium car battery, which emits 30% less CO2 than regular car batteries

Innovative products:

• Building and expanding research, innovation & technology centers in China, Brazil, India.

• Investing in leading edge start-ups in biotechnology, photovoltaic and advanced materials.

Investments in innovative sector:

Social Innovation:

• Grid4Eu project: aims to test on a large scale advanced smart grid solutions supporting distributed generation and facilitating energy efficiency (demonstrating plant in Forli- Cesena)

• EEGI European Electricity Grid Initiative: European research and development program envisaging 2 million Euro in demonstration projects.

Smart grid projects, takes part of:

• Romania, Spain & Portugal, Colombia, Argentina: informative materials on websites and in public areas, newsletter, e-billing to reduce paper etc

Consumers awareness: “Promote the efficient use of energy in daily consumption”

Opportunities• From Bain & Company industry brief (2013)

• A typical European/US manufacturing company can save between 10% and 30% of direct energy costs in 3 years

• Indirect savings add another 50% (reduced waste, materials, maintenance)• Higher empoloyee motivation• Strengthened corporate reputation• Opportunity for growth through new products and new business models – help

customers to become more energy efficient

Core production processes Infrastructure & supply chain Organisation & people

• Optimise energy provision • Cross-optimise with suppliers • Create commitment & track progress

• Redesign core value adding processes

• Upgrade buildings and infrastructure

• Enable through management systems

• Upgrade equipment efficiency • Redesign support processes • Push behavioral change

Challenges: • Energy Efficiency projects, costs for companies:

In a moment of strict budget constraints → non-core projects like energy efficiency projects can be

postponed as benefits from inventements may only be visible in the mid term.

• Additional Challenges: 1. lack of visibility 2. integration of energy efficiency opportunities within corporate strategic

and capital planning processes3. Not stand alone: involvement of value chain: suppliers, employees,

customers, local communities, regulators4. Regulatory framework with clear long term direction & willingness

This material may not be reprinted or redistributed without the express written consent of CSR Europe

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