Sustainable Energy for All: Opportunities for the Industrial Manufacturing Industry

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ContentsPreface

Summary

The Importance of Sustainable Energy for the Industrial Manufacturing Industry

Priority Actions for the Industrial Manufacturing Industry

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Acknowledgements The findings presented in this document are the result of research, interviews and focus groups conducted in support of the development of the Sustainable Energy for All Initiative by the UN Global Compact and Accenture. More than 70 companies across 19 industries—primarily UN Global Compact LEAD companies and Caring for Climate Signatories—contributed to these findings. Specific to the industrial manufacturing industry, the following companies and organizations provided valuable input and contributions: EADS NV, Embraco, Grundfos and the Tata Group.

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Preface

In support of the United Nations Secretary General’s Sustainable Energy for All initiative, the United Nations Global Compact and Accenture have partnered to identify the most important actions the private sector can take across nineteen different industries to advance the primary objectives of the initiative while simultaneously driving business value.

This body of work includes an introductory report that discusses the relationship between the initiative and the private sector in a broad sense, as well as 19 individual “Industry Opportunity” documents. In total, the objective is to provide guidance and to inspire companies across all industries to take action in pursuit of sustainable energy and benefits for their own companies.

This document provides an analysis of the opportunities Sustainable Energy for All presents to the industrial manufacturing industry. It identifies specific priority actions industrial manufacturing companies can take to advance the three objectives of the initiative—energy access, energy efficiency, and renewable energy—while also driving increased business value.

The priority actions identified for each industry are aligned to the vision and objectives of the Sustainable Energy for All Initiative. They span multiple modes of engagement—operations, products & services, social investment and philanthropy, and advocacy and public policy engagement—and represent four different ways that businesses can create value: revenue growth, cost reduction, brand enhancement, and risk management.

As UN Secretary General Ban Ki-Moon wrote prior to the 2012 World Future Energy Summit, “Energy transforms lives, businesses and economies…. To succeed, we need everyone at the table—governments, the private sector, and civil society—all working together to accomplish what none can do alone…. The obstacles are not so much technical as human. We need to raise sustainable energy to the top of the global agenda and focus our attention, ingenuity, resources, and investments to make it a reality.”

Addressing the world’s energy needs is a way to advance society and also to advance sustainable value creation for the industrial manufacturing industry—while balancing positive economic, environmental, and social gains across the globe.

About the Industrial Manufacturing Industry

The industrial manufacturing industry consists of a large and diverse group of companies that convert completed raw materials into tools, manufacturing equipment, and supplies for industrial and commercial use. It is extremely capital intensive and highly automated, requiring few employees relative to a company’s enormous size.1 Products can include rubber gaskets, holding tanks, turbines, aircrafts, pumps, compressors, electric motors, heavy duty cable and wires, and many other products spanning multiple trades. Even though the production output varies greatly, the majority of industrial products are designed to reduce the amount of human manpower required to complete a task.2

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Summary

The ambitious objectives of the United Nations Sustainable Energy for All initiative will require commitment and vigorous action from the private sector to drive investment, increase innovation in products and services, and increase operational efficiencies. The industrial manufacturing industry has opportunities both to contribute to the broader social goals of the initiative and to realize enhanced business value in the areas of revenue growth, cost reduction, brand enhancement, and risk management.

Industrial manufacturing is energy intensive in most aspects of the production processes it runs from an operational standpoint. It demands on- and off-site power, large amounts of process energy for the manufacture of goods, and non-process energy to maintain facilities. Industrial manufacturers continue to explore new ways to reduce energy costs through technologies such as combined heat and power, variable frequency drives, and advanced insulation. By reducing energy consumption, industrial manufacturing companies can drive

business value by lowering operational costs and the total cost of goods sold. This has the potential to improve profitability as well as manage risks associated with volatile energy prices.

By taking a broader approach to value creation, we can better understand the priority actions available to the industrial manufacturing industry for advancing the objectives of Sustainable Energy for All while benefiting the industry as a whole. For industrial manufacturing companies to advance their business opportunities related to energy efficiency and renewable energy, the industry can focus on five priority actions—mapped to the business value levers, objectives, and engagement modalities of Sustainable Energy for All:

Priority Industry Actions Business Value Levers Objectives Engagement Modalities

Increase use of combined heat and power and distributed renewable power generation at manufacturing facilities.

• CostReduction • RiskManagement

• Energy Efficiency • RenewableEnergy

• CoreBusiness:Operations

Improve the energy efficiency of operational processes.

• CostReduction • Energy Efficiency • CoreBusiness:Operations

Incorporate more energy-efficient design into core product streams, and explore the practical use of new and emerging technologies.

• RevenueGrowth • Energy Efficiency • CoreBusiness:ProductsandServices

Empower employees to cut energy consumption through behavioral changes and continuous improvement programs.

• CostReduction • BrandEnhancement

• Energy Efficiency • CoreBusiness:Operations

Increase cross-industry collaboration and partner with academic institutions and policy makers to drive innovation and technological breakthroughs.

• RevenueGrowth • CostReduction

• Energy Efficiency • RenewableEnergy

• SocialInvestmentandPhilanthropy • AdvocacyandPublicPolicyEngagement

Table 1: Priority action areas for the industrial manufacturing industry

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What Is Sustainable Energy for All?

Under the leadership of Secretary-General Ban Ki-moon, the United Nations is mobilizing key constituencies from the private sector, public sector, and civil society in a major global initiative, Sustainable Energy for All. The goal of the initiative is to catalyze action around three clear objectives to be achieved by 2030:

•Energyaccess:Ensuringuniversalaccess to modern energy services.

•Energyefficiency:Doublingtheglobal rate of improvement in energy efficiency.

•RenewableEnergy:Doublingtheshareof renewable energy in the global energy mix.

The Sustainable Energy for All initiative strives to mobilize bold actions and large-scale investments by fostering the enabling conditions for success, supporting cooperation and coordination across sectors, and tapping into a broad array of businesses and financiers. The initiative has the capacity to leverage a rapidly expanding knowledge network, disseminate

Ensuring Universal Energy Access

Doubling the Share ofRenewableEnergy

DoublingtheRateof Improvement in Energy Efficiency

ideas, and monitor progress toward the initiative’s objectives. It can “change the terms of engagement” by introducing new public-private partnerships based on synergies across relevant sectors of the economy and engendering constructive dialogue on policy, investment, and market development by governments, businesses, and civil society.

Sustainable Energy for All provides a clearly articulated global vision for sustainable energy and brings together the unparalleled global convening power and reach of the United Nations, which will help build consensus, drive a common agenda, and coordinate the actions of multiple entities at both the global level and the national levels, helping all entities work toward shared and mutually beneficial goals. Sustainable Energy for All brings together all relevant stakeholders in the sustainable energy area—the public sector, private sector, and civil society—on a common and open platform for communication and collaboration.

For more comprehensive information about Sustainable Energy for All, please go to: http://www.sustainableenergyforall.org/

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The Importance of Sustainable Energy to the Industrial Manufactuing Industry

Industrial Manufacturing and the Global Energy Landscape

Industrial manufacturing is an energy-intensive industry and, therefore, can play an integral role in advancing the objectives of Sustainable Energy for All. Industrial energy use accounts for nearly one-third of global energy consumption.3 The United States, Western Europe, and China represent over half of the world’s industrial energy use. Over the past 25 years, China has accounted for 80 percent of the growth in industrial energy demand.4 Although emerging economies have seen significant growth in energy consumption related to industrial processes and operations, developed countries have not. For example, the United States’ industrial energy consumption has been declining steadily over the past 15 years. The US and other developed nations have, in general, seen a decline in their industrial manufacturing base, as well as an improvement in energy efficiency as a result of technological improvements. Nevertheless, there are still many opportunities for industrial manufacturing companies to reduce energy consumption.

Understanding Energy use within Industrial Manufacturing

An important step to understanding the importance of Sustainable Energy for All to the industry is identifying the energy consumption of key industrial manufacturing processes. While processes vary greatly by company, location, and products, the International Energy Agency has produced global estimates of the energy consumption breakdown. Approximately 15 percent of energy is consumed for feedstock, 20 percent for process energy, 15 percent for motor drive systems at 100-400°C, 15 percent

for low temperature heat, and the remainder for other uses such as lighting and transportation.5 Another way to conceptualize industrial energy demand, as set forth by the US Department of Energy, is by generation type, generation location, process energy, and non-process energy. Generation location can be broken down between off-site and on-site. Off-site locations generate electricity, steam, and provide fuels to the factory. On-site energy generation can include conventional boilers, combined heat and power, or a variety of renewable sources. Energy is used for processes as well as non-process functions. Process energy is used in the manufacture of the final product, and can include heating, cooling, electrochemical processes, and machine driven items like pumps, fans, compressors, and material handlers. Non-process energy takes the form of heating, ventilation, and air conditioning; lighting; transportation; and other facility based functions.6

It is also important to understand the role of distribution loss and efficiency measures in the industrial manufacturing process. Distribution losses play a major factor in determining how much output energy is available based on the total input. In the US alone, industrial manufacturers consumed about 9,011 Trillion British Thermal Units in electricity generation, 1,173 Trillion British Thermal Units in steam generation, and 11,789 Trillion British Thermal Units in fuels.7 However, the efficiency losses associated with each of these off-site forms of generation were significant: 68 percent for electricity, and 27 percent for steam and fuels. These efficiency losses are sizeable, and present industrial manufacturers with the opportunity to develop more energy efficient technologies to achieve significant cost savings.

Innovations and the Industrial Manufacturing Industry

Innovations in sustainable energy can benefit industrial manufacturers in multiple ways. Manufacturers have energy intensive operations, and reducing consumption can yield bottom line savings. Additionally, companies can improve the energy efficiency of their product portfolio, as industrial products such as compressors and motors are often energy intensive as well. By selling customers energy-efficient or renewable alternatives, industrial manufacturing companies can drive new revenue growth by enhancing the value proposition of their offerings. Some innovation trends in the industry include:

- Variable frequency drives for electric motors

- Variable capacity compressors

- Next-generation fiber glass applications

- Advanced insulation

- Combined heat and power

Continual improvements in products that reduce energy intensity will allow industrial manufacturers to drive business value while advancing the objectives of Sustainable Energy for All.

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The Business Opportunity Presented by Sustainable Energy for All

In taking actions to advance the three objectives of Sustainable Energy for All, the extent of this unprecedented, rapid change will provide companies with new opportunities to drive sustainable business value in a manner that aligns to their core strategies. To seize these opportunities, there are four engagement modalities companies can address as they implement the identified priority actions:

1. Core Business - Operations: Businesses can transform their operations through increased energy efficiency and the use of renewable energy alternatives.

2. Core Business - Products and Services: Businesses can innovate and modify their core products and services to meet the

new and developing market demands for more energy efficient products, sustainable energy, and the infrastructure needed to extend energy access around the world.

3. Social Investment and Philanthropy: Businesses can identify ways to establish a strategic link between social investments and their core strategies to increase the likelihood that such activities will be sustained and able to reach scale.

4. Advocacy and Public Policy Engagement: Businesses can seek to engage governments (national, regional, or local) on relevant issues that protect competitiveness and drive opportunities, while working toward the objectives of Sustainable Energy for All.

Sustainable Energy for All provides a platform to address global financial, social, and environmental concerns associated with energy. Ultimately, in working toward the achievement of the three objectives of the initiative—energy

Business Value Levers

Revenue Growth

• Creatingnewbusinessmodels • Collaboratingtodevelopnewmarkets • Developingnewproductsandservices • Movingfromproductstoservices

Brand Enhancement

• Showcasinginnovation • Collaboratingtoincreasetransparency • Improvingcommunityinvolvement • Engagingstakeholders

Cost Reduction

• Improvingenergyefficiency • Streamliningsupplychainandlogistics • Reducingrawmaterialconsumption • Changingoperationstoreusewaste

Risk Management

• Contributingtopolicyagendas • Protecting“LicensetoOperate” • Integratingriskmanagementactivities • Diversifyingbusinessmodelandoperations

access, energy efficiency, and increased use of renewables—businesses also have significant opportunities to drive sustainable value. Especially important are four value levers related to revenue growth, cost reduction, brand enhancement, and risk management.

Which Actions Will Your Company Take to Drive Value?

The particular actions a company chooses to drive business value depend on a range of factors: its unique attributes and energy characteristics; its business model, corporate strategy and consumer base; and external factors such as level of regulation and economic context. Each of the priority actions in this document is aligned to one or more of the four business value levers described here.

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Sustainable Energy as a Value Driver for the Industrial Manufacturing Industry

Growing Interest in Sustainable Energy Initiatives

Due to the increasing competition for energy and the importance of cost minimization in the industry, Sustainable Energy initiatives have been a growing trend within the industrial manufacturing industry. In a survey released in February 2010 by Automation World, nearly 80 percent of respondents reported that green manufacturing is important, while 60 percent already have initiatives in place.8 The top three reasons for taking action were reducing energy costs, being a better corporate citizen, and becoming more competitive.9 Energy efficiency and renewable energy measures can play a role in the success of these businesses, helping them to win market share and build customer loyalty.

Industrial manufacturing companies have the opportunity to increase business value from energy efficiency and renewable energy measures, while also advancing the objectives of Sustainable Energy for All. Combined heat and power is an effective energy efficiency measure that can result in considerable cost savings for companies with heat intensive manufacturing processes. On-site renewable energy generation can drive value related to brand enhancement and risk management as it can be a hedge against price volatility associated with traditional energy sources. In addition, manufacturers can achieve savings by making motor-based process energy functions more efficient. While non-process energy savings such as lighting and heating, ventilation, and air-conditioning retrofits can also make an impact, process energy savings are far greater.

The industrial manufacturing industry is increasingly turning to combined heat and power to capture process heat that would otherwise be lost, and to reduce reliance on off-site energy. Combined heat and power generation produces useful thermal and electric outputs, and is far more efficient than the generation of these two forms of energy separately. Industrial manufacturers involved in the production of parts for electricity generation or heat capture have a large potential in capturing a rapidly growing combined heat and power market. In the US alone, it is estimated that the combined heat and power electricity generation will account for 20 percent of all electric power capacity by 2030.10

Energy Savings from Improved Electric Motors

In the industrial manufacturing industry, process energy accounts for a large portion of total energy consumed. At the core of process energy functions is the electric motor, which powers pumps, fans, compressors, refrigerators, material processors, and a variety of other machines used in the manufacture of industrial products. By improving the energy efficiency of motors, industrial manufacturers can achieve significant savings. Depending on the type of company, electric motor systems can account for approximately 60 percent to 70 percent of industrial electricity consumption.11

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Priority Actions for the Industrial Manufacturing IndustryThe following section provides detail on five priority actions the industrial manufacturing industry can take to become more energy efficient and advance their business opportunities in the sustainable energy market:

1. Increase use of combined heat and power and distributed renewable power generation at manufacturing facilities.

2. Improve the energy efficiency of operational processes.

3. Incorporate more energy-efficient design into core product streams, and explore the practical use of new and emerging technologies.

4. Empower employees to cut energy consumption through behavioral changes and continuous improvement programs.

5. Increase cross-industry collaboration and partner with academic institutions and policy makers to drive innovation and technological breakthroughs.

1. Increase use of Combined Heat and Power And Distributed Renewable Power Generation At Manufacturing Facilities

Increasing demand for electricity in the manufacturing process, the need for a constant secure and reliable power supply, and rising energy costs have led many industrial manufacturing facilities to create the capability to generate power on-site. While the wide-spread application of combined heat and power technologies remains the dominant on-site generation solution for manufacturing facilities as a means of reducing energy consumption, and driving cost savings, there are opportunities for additional scale. Along with combined heat and power solutions, distributed renewable on-site power generation sources, such as fuel cells, wind, solar, small-hydro, biomass, and biogas are also becoming widely available for use at industrial facilities.

Combined heat and power systems are far more efficient than traditional generation methods. They are especially useful when industrial and manufacturing processes require both heat and electricity, and can reuse heat waste from these processes

to power other ones. The simultaneous production of heat and power yields an efficiency of up to 80 percent, whereas separate production is only 45 percent efficient.12 The systems are reliable and stable, have the option of running on renewable sources of energy such as fuel cells, and can reduce energy costs. For example, one wire mesh manufacturer has realized the benefits of adopting combined heat and power. They use natural-gas to generate electricity at a cost $400,000 per year. This represents an annual utility cost savings of 50 percent.13 Additionally, they use excess heat from the generation process for space heating for the facility, and to boil water.14

Combined heat and power and other forms of distributed power generation technologies are continuing to improve in both performance and efficiency. Industrial manufacturing companies have opportunities to streamline operational processes, cut waste, and reduce costs by pursuing an increased use of combined heat and power solutions. Additionally, processes to improve the efficiency and reliability of various technologies used in on-site power generation continue to evolve. This supports further development of distributed renewable energy systems as an effective approach to increasing energy efficiency, and powering industrial manufacturing operations.

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It is important for manufacturers to recognize that a key barrier to installing these efficient motors is the procurement process. Often times, those responsible for the electricity bills at manufacturing facilities are not responsible for procurement policies. By incorporating energy efficiency considerations into procurement policy, manufacturers will be more likely to procure the most cost-effective and energy-efficient motors.

In addition to implementing energy-saving hardware and equipment, companies are also relying on software systems to monitor plant performance through data-driven energy analytics. Analytics software can record performance data in manufacturing processes and help decision makers find ways to reduce energy use. Enterprise resource planning systems can help provide clearer insight into the supply chain, monitoring and managing supply flow and identifying inefficiencies. Environmental monitoring systems are also important. They integrate the facilities energy input and effluent data from operations, and compare performance data against environmental requirements, enabling plant operators to implement changes to meet regulatory and energy targets. According to a report by the Economist Intelligence Unit, 46% of manufacturers do not have energy management systems, despite the fact that they are extremely cost effective.19

2. Improve the Energy Efficiency of Operational Processes.

Industrial manufacturers have been aware of the cost savings associated with improved energy efficiency for many years. 57 percent of the industry’s primary energy inputs are lost or diverted before reaching intended process activities.15 This represents a significant opportunity for savings that can be achieved by investing hardware (e.g. updated plant equipment), software (e.g. energy management and enterprise resource planning systems), and employee engagement. These solutions are not only effective for improving energy efficiency; they can also lead to improved performance, increased reliability, and reduced operational costs.

One area for improving efficiency through equipment upgrades is with electric motors, which consume a significant amount of energy in industrial manufacturing plants. Variable frequency drives improve energy efficiency by adjusting the speed of the motor automatically. This system works well with motor-driven pumps and ventilation systems, as flow and temperature controls are highly variable and dependent on different conditions. These drives can reduce a motor’s electric draw by 10 to 50 percent.16 A rubber manufacturer, for example, lowered energy consumption by purchasing a 1500 horsepower variable frequency drive for its extruder.Ratherthanusingamechanicalclutch to control output, the variable speed drive precisely controlled the motor speed and maximized energy savings. Their investment drove annual cost savings of over $50,000.17 In another example, a factory in Mexico that was host to a large installation of 102 variable frequency drives yielded a 20 percent reduction in energy consumption and a payback time in only one-and-a-half years.18

Case Study: Brazilian Manufacturer Embraco Develops Energy-Efficient Compressor

Embraco is a global manufacturer of hermetic compressors for refrigeration. In 2010, its production capacity reached more than 35 million units, and the company served 80 markets around the world. With 50% of revenues coming from products developed in the past four years, the company places significant value on innovation. One example of Embraco’s energy efficient innovation is demonstrated in a compressor they developed, which uses variable capacity technology. It is equipped with an electronic control capable of perceiving, without the use of external sensors, the refrigerator’s internal temperature variation and thereby adjusting the generation of cold air accordingly.

This product has been very successful, and has led to:

- 40% reduction in energy consumption of a refrigerator relative to a conventional compressor.

- 30% reduction in the use of raw materials.

- Lighter and smaller products when compared to conventional models. The size of the compressors positively impacts logistics, requiring less space therefore improving shipping efficiency.

- Lower generation of greenhouse gases due to decreased energy consumption in the product application and efficiencies in transportation.21

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3. Incorporate more Energy-Efficient Design into Core Product Streams, and Explore the Practical use of New and Emerging Technologies.

The energy efficiency of products and services is becoming increasingly important to customers. Using concepts such as lifecycle analysis and “cradle-to-cradle” evaluation, it is important for industrial manufacturers to evaluate the energy consumption profile of their product portfolio. After identifying the products that consume the most energy, companies can initiate design and process changes to improve the overall energy efficiency of the product portfolio. Once the energy impact is understood, alternatives can be evaluated, assessed, and developed. Increasing the energy efficiency of product lines can boost revenue growth for the manufacturers themselves, as their customers will increasingly look for the most energy-efficient equipment as a means for reducing operational costs.

There are numerous examples of innovative industrial manufacturers making their product portfolios more energy efficient. Power generation equipment manufacturers and their suppliers are improving the performance, efficiency, reliability, and availability of their products which drives efficiencies in the market while reducing operational and maintenance costs. Manufacturers are

improving the performance and efficiency of combined cycle power generation technology to recover gas turbine waste heat, increasing the overall efficiency of power plants. A world-leading fiberglass manufacturer is producing next generation fibers to use in wind turbine blade epoxy resin. This increases blade strength, reduces blade weight and increases aerodynamic efficiency of blades, allowing wind turbines to run more efficiently at lower wind speeds and to produce more clean power.20

4. Empower Employees to cut Energy Consumption Through Behavioral Changes and Continuous Improvement Programs.

Incentivizing employees to reduce energy consumption is a key component of an energy-efficiency strategy and can help reduce costs and generate new waves of innovation, especially by engaging different functions within a company.22

Effective organizational change can make energy efficiency programs both more effective and sustainable in the long term. Simply implementing data reporting systems are not enough; key performance indicators must be tied to energy efficiency goals, and a change management process is needed to help individuals and organizational units adapt through training and frequent communication.

Companies can engage employees and encourage them to turn off lighting and equipment to conserve energy when not in use. Supervisors can check facilities to identify energy waste and equipment settings when not in operation. Establishing a list of energy shut-down procedures, reviewing them with plant managers and employees, and monitoring adherence to policy can all improve energy efficiency.23 Other examples include holding staff meetings on energy use, costs, objectives, and employee responsibilities as a way to build engagement and encourage broader responsibility for energy efficiency.

General Electric, for example, has instituted an “energy treasure hunt” to engage its employees in promoting energy efficiency. The company trained employees to read light meters, determine where installing efficient motors would be more effective, and understand when equipment could be turned off. By tying these treasure hunts to performance incentives, the company has achieved more that $130 million in energy savings.24

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Technology advances and emerging technologies also require innovative policies to make them sustainable and cost competitive. Encouraging better cooperation between industrial manufacturers and governmental policy makers is critical to allow both sides to understand the challenges faced by the other. Additionally, manufacturers must engage local communities to understand and minimize potential negative impacts of their operations. Industrial manufacturers can demonstrate that they are aware of their impacts by providing support and encouragement for capacity building and education, jobs and employment opportunities, economic development, and the building and rebuilding of critical infrastructure.

Collaborative efforts can also boost the competitiveness of the manufacturing sector and provide the skilled labor needed for the industry to grow. Academia and manufacturing industry leaders that focus on training more workers for the industrial manufacturing industries are aware of the critical shortage of skilled workers. They are investing in curriculum development around manufacturing in schools and community colleges to provide a robust supply of human capital for the advancement of the manufacturing industry.

5. Increase Cross-Industry Collaboration and Partner with Academic Institutions and Policy Makers to Drive Innovation and Technological Breakthroughs.

Partnering with academic institutions with a strong reputation for practical research and development can spur new product development in the industrial manufacturing space. Collaboration of this type can accelerate the development of new technologies and process improvements. Manufacturers can also collaborate with accredited technical societies, businesses, industry partners, governments, and industrial organizations to foster the creation, testing and commercialization of new technologies.

Researchandinnovationhavealwaysbeen significant drivers of growth in the industrial manufacturing industry. Technological breakthroughs have the potential to significantly reduce energy use and reliance on traditional energy sources, as well as drive revenue growth by creating new markets for new and innovative products. Significant technological advances often result from collaboration across sectors, especially with research institutions. Innovations such as smart grid, modern wind turbines, and waste energy recovery systems were all a result of collaboration and partnership between academic institutions, national laboratories, and governmental agencies.

Case Study: The Advanced Manufacturing Partnership Fosters Collaboration Between Public, Private, and Academic Sectors

The Advanced Manufacturing Partnership is focused on driving effective collaboration between leading industry players, top research universities, and the US government. It focuses on four workstreams:

1. Technology Development: Identifies emerging technologies with transformative potential with the express intent that they be commercialized and deployed in the United States.

2. Policy: Makes recommendations on economic and innovation policies that can directly or significantly impact the ability to improve research collaboration and the pathway to commercialization in support of US-based manufacturing and jobs.

3. Education and Workforce Development: Identifies tangible actions that will support a robust supply of talented individuals to provide human capital to companies interested in investing in advanced manufacturing activities in the United States.

4. Shared Facilities and Infrastructure: Assesses opportunities to de-risk, speed up, and lower the cost of accelerating technology from research to production through unique capabilities and facilities that serve all US-based manufacturers, in particular small- and medium-sized manufacturers.25

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Conclusion

The priority actions identified in this document are meant to provide guidance and inspire industrial manufacturers to advance the three objectives of the Sustainable Energy for All initiative while maximizing their realized business value. It is vital that the private sector be fully engaged and committed to successfully achieve the initiative’s ambitious objectives. With the right level of support, coordination, and action the power of the industry can be unleashed to ensure universal energy access, dramatically improve the energy efficiency of business operations, increase the use of renewable energy, and develop more sustainable products and services. Actions focused on achieving the desired outcomes of Sustainable Energy for All will drive significant positive societal change in addition to economic growth and opportunity.

The industrial manufacturing industry is very energy intensive, and will derive significant value from lean, energy-efficient manufacturing operations. In the aforementioned action areas, there are a number of measures companies can

take to achieve these energy savings and mitigate energy risk. Yet, an industrial manufacturer’s impact with regard to energy efficiency and renewable energy is not limited to their own company. Forward-thinking manufacturers have already recognized increased market demand for industrial parts and products that drive energy efficiency and renewable energy use, especially in other energy-intensive industries like oil, gas, utilities, and transportation. For this reason, companies must thoroughly asses the energy use of their product portfolio, which is critical to driving future revenue growth while enhancing brand value. Finally, companies must not underestimate the benefits of cross-industry collaboration and comprehensive employee improvement plans.

By focusing on the five priority actions detailed in this document, industrial manufacturers will advance their business opportunities related to energy efficiency and renewable energy. Additionally, they will advance the goals of the initiative, and ensure a sustainable energy future based on a balanced approach to improving social, environmental, and economic benefits for all.

1. http://globaledge.msu.edu/Industries/Industrial-Manufacturing/background

2. http://www.automationworld.com/asset-management/survey-reveals-growing-interest-green-manufacturing

3. http://www.iea.org/textbase/nppdf/free/2007/tracking_emissions.pdf

4. http://www.iea.org/textbase/nppdf/free/2007/tracking_emissions.pdf

5. http://www.iea.org/textbase/nppdf/free/2007/tracking_emissions.pdf

6. http://www1.eere.energy.gov/manufacturing/pdfs/mfg_footprint.pdf

7. http://www1.eere.energy.gov/manufacturing/pdfs/mfg_footprint.pdf

8. http://www.automationworld.com/asset-management/survey-reveals-growing-interest-green-manufacturing

9. http://www.automationworld.com/assetmanagement/survey-reveals-growinginterest-green-manufacturing

10. http://www.automationworld.com/assetmanagement/survey-reveals-growinginterest-green-manufacturing 10. 11. UNIDO - http://www.unido.org/fileadmin/user_media/Services/Research_and_Statistics/WP112011_Ebook.pdf

12. http://www.aceee.org/topics/chp

13. http://patapsco.nist.gov/mep/documents/pdf/about-mep/reports-studies/energy-nam.pdf

14. http://patapsco.nist.gov/mep/documents/pdf/about-mep/reports-studies/energy-nam.pdf

15. http://patapsco.nist.gov/mep/documents/pdf/about-mep/reports-studies/energy-nam.pdf

16. http://www.naed.org/uploadedFiles/TEDGreenRoom/Resources/Glossary/Industrial-inside.pdf

17. http://www.motorsmatter.org/case_studies/MidAmerican_VFD.pdf

18. UNIDO - http://www.unido.org/fileadmin/user_media/Services/Research_and_Statistics/WP112011_Ebook.pdf

19. http://www05.abb.com/global/scot/scot316.nsf/veritydisplay/ff9a7292ae7afc14c1257864004c7b88/$file/the%20frugal%20manufacturer.pdf

20. http://www.compositesworld.com/articles/anisotropic-wind-blade-design-expected-to-reduce-wind-energy-costs

21. Embraco provided case study to Accenture

22. http://www.c2es.org/docUploads/PEW_EnergyEfficiency_FullReport.pdf

23. http://www.virginiaenergysense.org/cue/pdfs/14_manufacturer.pdf

24. http://www.cees.ingersollrand.com/CEES_Documents/Economist_Ingersoll_Rand_Energy_Efficiency_Report.pdf

25. http://www.whitehouse.gov/the-press-office/2011/06/24/president-obama-launches-advanced-manufacturing-partnership

Endnotes

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In support of ‘Sustainable Energy for All’

About the United Nations Global Compact The United Nations Global Compact is a call to companies everywhere to: (1) voluntarily align their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anticorruption and (2) take actions in support of UN goals, including the Millennium Development Goals. By doing so, business can help ensure that markets advance in ways that benefit economies and societies everywhere. Endorsed by chief executives, the UN Global Compact is a leadership platform for the development, implementation, and disclosure of responsible corporate policies and practices. Launched in 2000, it is the largest corporate responsibility initiative in the world—with over 7,000 signatories based in more than 135 countries, and Local Networks existing or emerging in 90 countries. More information: www.unglobalcompact.org.

About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 249,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.

About Accenture Sustainability Services Accenture Sustainability Services helps organizations achieve substantial improvement in performance and value for their stakeholders. We help clients leverage their assets and capabilities to drive innovation and profitable growth while striving for a positive economic, environmental and social impact. We work with clients across industries and geographies to integrate sustainability approaches into their business strategies, operating models and critical processes. Our holistic approach encompasses strategy, design and execution to increase revenue, reduce cost, manage risk and enhance brand, reputation and intangible assets. We also help clients develop deep insights on sustainability issues based on our ongoing investments in research, including recent studies on consumer expectations and global executive opinion on corporate sustainability and climate change.

Find out more at www.accenture.com/sustainability

Contact us The United Nations Global Compact and Accenture encourage leadership from all industries around the world to engage with the Sustainable Energy for All initiative. To do so, please contact:

Ole Lund Hansen Head, Global Compact LEAD United Nations Global Compact hansen4@un.org

Adam T. Cooper Accenture Sustainability Services North America adam.t.cooper@accenture.com

Study Team: Dave Abood, Adam T. Cooper, Elaine C. Horn, MarielleFillit,OrsellaReyesandJasonGoode

Copyright © 2012 Accenture All rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.