Diageo - Leadership in Energy Efficiency

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1 Diageo - Leadership in Energy Efficiency Referencing EED case studies - Project Phoenix ( 168m) & Guava ( 26m) Nov 2013 Conor Browne - Head of Capital Strategy for Diageo Beer Division

2 Leadership through Energy Efficient Design (EED) What I hope to share with you today Outcome How Diageo is working to achieve World Class Leadership in its approach to Design and Management of Energy through its capital investments Overview the approach taken and highlight the benefits we have gained from applying EED on two flagship Investment projects. Share how we are securing now the future benefits, as part of Diageo's Global Engineering Excellence Program.

3 Leadership through Energy Efficient Design (EED) Context Who we are Diageo - At A Glance Global company founded in 1997 Global Brands - No 1 Stout, Gin, Whiskey, Vodka, and Cream Liquor. Sold in more than 180 markets Employs over 25,000 people worldwide. and in Ireland 1 billion in exports 1,500 employees Center of Excellence for Diageo Global Beer Technical & Engineering is in Dublin. Diageo has publicly declared it will achieve the following targets by 2015.

4 Leadership through Energy Efficient Design (EED) Context Our leadership journey in energy Our Leadership Journey Moving From Energy Management To Investment In Energy Design Diageo s Irish Breweries are first to achieve ISO globally. Diageo Energy Management System now used throughout the Diageo Global Beer Network an initiative driven from Ireland. Diageo Engineering and R&D work closely on innovative technologies and challenge processes to become more Energy Efficient. Recently Enterprise Ireland supported a number of R&D projects investigating new technologies for Brewing Processes, Raw Materials, optimization, New Product Development and Packaging Innovation. All were focused on energy and environmental sustainability. ENERGY MANAGEMENT SYSTEM

5 Leadership through Energy Efficient Design (EED) The Approach Taken Putting the appropriate Organization in place which is focused on Energy Design.

6 Leadership through Energy Efficient Design (EED) The Approach Taken Following a simple, robust and consistent process - see SEAI website for details on the methodology Baseline Energy Consumption Report All improvements will be marked versus this data in order to get a true reflection of savings made. Register of Opportunities A list of quantified and prioritised Energy Saving Ideas for inclusion in Guava. Implementation Validation and Verification. Meter Mapping Addresses Operational Phase Energy Mgt. 6

7 Received Benefits Energy reduction replication Energy Benefits Guava also on track to DELIVER SUBSTANTIAL ENERGY SAVINGS IN GHANA

8 Received Benefits Non energy reduction examples Financial Benefits Substantial Savings Substantial savings in upfront capital investment versus retrofit. Benefiting Operation Competitiveness. Sustained revenue savings benefiting operation competitiveness. Overall EED on track to achieve an Annual Elec Saving of 5.3 MJ/Hl from MJ/Hl. Overall EED on track to achieve an Annual Steam Saving of 21.4 MJ/Hl from MJ/Hl. Overall EED on track to achieve an Annual Water Saving of 0.89 Hl/Hl from Hl/Hl. Reputational Benefits 1 st to Achieve Leed & Breeam Accreditation On track to be first industrial process facility to achieve both Leed and Breeam Accreditation Environmental Targets Delivers a step change towards Diageo publically stated 2015 Environmental Targets.

9 Received Benefits People Engagement Operations (Client) Ensures and Integrated Energy Approach Gets great buy in as Design for Energy Management (Dfem) ensures an integrated energy approach. Maximised Value from Capital Invested Step Changes Step changes environmental and revenue cost performance for the site Approved Suppliers help roll out of EED Suppliers to Differentiate Provides new way for suppliers to differentiate and add value CSR Agenda Supports their own CSR agenda

10 Received Benefits Accelerated Knowledge Share Internal Engineering Website Engineering website provides Global knowledge sharing platform on EED including tools and techniques e.g. register of opportunities for ci Case Studies Case studies developed and shared Breaking News Newsletters and Breaking News comms p Communications promoting EED p Website for Engineering Excellence EED Global Knowledge & Systems Share External Demonstrating Leadership Diageo supports knowledge sharing through a range of activities including demonstrating leadership at events like:- Eufores EU presidency(15 th June) Irelands Energy Show (12 th March) Future of Food in Ireland (20 th Nov)

11 Future Benefits What we are doing to secure EED advantages EED is now integral to delivering capital investment in global beer We have adopted the EED Organisational Model Established project and capital investment EED Performance KPIS Extending our Approved Suppliers model to assess their approach to EED EED incorporated into our Contractual Terms and Conditions Working with NSAI, SEAI and industry to make EED an Irish Standard and European standard.

12 Thank you For opportunity to share our journey to delivering World Class Leadership and performance in relation to Energy Design and Management.

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