ISO 50001/SEP. Superior Energy Performance at Schneider Electric. Design the Strategy Deliver Efficiency Sustain Results

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1 ISO 50001/SEP Superior Energy Performance at Schneider Electric Design the Strategy Deliver Efficiency Sustain Results

2 Schneider Electric the global specialist in energy management Balanced geographies FY 2011sales billion sales (last twelve months) of sales in new economies (last twelve months) North America 23% Rest of World 18% Western Europe 32% Asia Pacific 27% people in 100+ countries of sales devoted to R&D Diversified end markets FY 2011 sales Utilities & Infrastructure 24% Industrial & machines 22% Data centres 16% Non-residential buildings 29% Residential 9% Schneider Electric Sustainability Services

3 Enterprise-wide Facility Management 3 Demographics 72 buildings 55 locations 12 M ft people 7 Regional managers 26 facility managers 79 techs Across North America Across all Businesses Schneider Electric Sustainability Services

4 Why Implement SEP / ISO 50001? Efficient Framework for Energy Management Program Corporate Self-Defined Energy Management Program ISO Structure Plan SEP / ANSI/MSE Do Check ISO50001 Act Schneider Electric Sustainability Services

5 Why Implement SEP? Efficient Framework for Energy Management Program Lighting Upgrades Variable Speed Drives Metrics Reporting Corporate Self-Defined Energy Management Program Assessment HVAC Adjustments Policies Communication ISO Structure Plan Do Check Act Schneider Electric Sustainability Services

6 Why Implement SEP? Efficient Framework for Energy Management Program ISO Structure Energy Management Program Objectives: Certification Best Practice Standardization Measured and Verified Results Plan Do Check Act Schneider Electric Sustainability Services

7 SEP / ISO Schneider Electric 7 Target 11 sites to be complete by the end of 2014 Target sites with ISO certification (Clovis) Exposure to Management system Seat at table Verified results by 3 rd party Benchmarking for Enterprise Documented Results Schneider Electric Sustainability Services

8 Why Implement SEP? Efficient Framework for Energy Management Program SEP Structure When do Savings Start: Plan Do Check Act Schneider Electric Sustainability Services

9 SEP Results at Schneider Electric? Efficient Framework for Energy Management Program Schneider Electric Sustainability Services

10 Implementation Process Planning Session: determine the Energy Management Team Implementation: 5 Phases- #1 Gap Analysis #2 Facility Energy Review #3 EnMS Construction #4 Readiness Review and Internal Audit #5 ISO Certification Audit 6 18 month Process Schneider Electric Sustainability Services

11 Energy Management Team First Step towards ISO Should include: Someone with experience with other ISO standards Someone who is charged with improving energy KPI A third party who can provide direction Schneider Electric Sustainability Services

12 Preferred Team Members Facility Manager/Energy Manager Plant Manager Quality Manager (ISO 9001 Rep) Environmental Manager (ISO Rep) Procurement Manager Maintenance Manager Manager(s) of Significant Energy Use(s) Schneider Electric Sustainability Services

13 Phase 1 Gap Analysis Determine which current practices can be adopted to meet the standard Develop an implementation plan Determine Phase 3 required effort Schn ei hnde eid r e E r El lec ec tr i c Sus 2012 tain ability Services

14 Phase 2 Energy Review Conduct utilities analysis Identify Significant Energy Users (SEUs) For each SEU Develop Energy Conservation Measures Create metering plan Identify operating parameters Schneider Electric Sustainability Services

15 Phase 3 EnMS Construction Build procedures for a fully functional system Provide awareness & training Ensure energy efficiency targets have a plan for achievement Schn ei hnde eid r e E r El lec ec tr i c Sus 2012 tain ability Services

16 Phase 4 Readiness Prep Second Gap Analysis to ensure all requirements are met Conduct an Internal Audit Hold Management Review Review Internal Audit Results Review Energy Performance Indicators (EnPI) Schn ei hnde eid r e E r El lec ec tr i c Sus 2012 tain ability Services

17 Phase 5 Certification Audits Stage 1 Audit Higher level audit to ensure readiness for Stage 2 Stage 2 Audit Ensure the EnMS meets the intent of the standard Deeper dive into procedures Present corrective actions for major and minor findings Schn ei hnde eid r e E r El lec ec tr i c Sus 2012 tain ability Services

18 Phase 1 and 2: Gap Analysis and Energy Review Identified the Paint Line as the Significant Energy User (SEU) Wash Process Powder Coat Curing Identified WAGES metering needs Phase 3: EnMS Construction Bridged the gap between process and energy Implemented Energy Conservation Measures (ECMs) VFDs on wash pumps Turned off IR oven (10% of gas use) Hook burn-off temperature set to 1,500 degrees when 1,200 degrees would suffice Schneider Electric Sustainability Services

19 Phase 4: Readiness Used internal auditors from ISO 9001 and teams Gave an energy fundamentals course Corrective Actions Identified Operating temperatures for ovens were not in procedures Calibration issues for gauges Auto-date feature on some documents Purchasing had not adopted new procedures Issues with energy awareness Well prepared for certification audits Only minor findings in Phase 5: Certification Schneider Electric Sustainability Services

20 Outcomes Created foundation for continuous improvement Competitive advantage through reduced costs Qualified for Platinum SEP with 15.5% reduction Identified utility meter malfunction Schneider Electric Sustainability Services

21 Invoice Analysis Meter Data vs Invoice Data 4,000 3,500 3,000 Inv. Gas Paintline Meter Space Heat Meter 2,500 2,000 1,500 1, Jan 01-Feb 01-Mar 01-Apr 01-May 01-Jun 01-Jul 01-Aug 01-Sep 01-Oct 01-Nov 01-Dec 01-Jan 01-Feb 01-Mar Schneider Electric Sustainability Services

22 Continued Results SEU Add VFD s to paint line ovens Change wash chemicals and reduce water usage and water temperature Investigating changing specification of paint to different process to change Reuse waste heat on paint line to pre-heat combustion air and heat the manufacturing space Schneider Electric Sustainability Services

23 Performance after Certification Schneider Electric Sustainability Services

24 Schneider Electric North America Results Enterprise wide energy management information system that aggregates energy and resource data from multiple systems for reporting, analysis and communication NAM Regional Energy Performance NAM Regional Energy Performance [2013 vs. 2011] Energy Performance (%) -14% -12% -10% -8% -6% -4% -2% 0% 2% 2014 YTD vs Central 1 Central 2 Northeast South Southeast West %) ( nce orma P gy ner E -14% -12% -10% -8% 0% 2013 YTD vs Central 1 Central 2 Northeast erfsouth -6% Southeast -4% West -2% 4% Schneider Electric Sustainability Services

25 Schneider Electric North America Results Enterprise wide energy management information system that aggregates energy and resource data from multiple systems for reporting, analysis and communication Questions Comments Schneider Electric Sustainability Services

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