“Energy-conscious companies will be better placed in the future economy...It’s possible they will receive preferential treatment by customers, suppliers and government in the future. Being energy conscious should not be seen as a burden. It should be a part of business DNA.”
By: Cathy Minz | Photo by Ryan Pfeiffer/Metroland
The rewards of managing energy consumption, as every business owner knows, are two-fold. When a company cuts their energy consumption, they are doing something good for the planet by reducing their carbon footprint and they also benefit from significant cost savings.
St. Marys Cement in Bowmanville supplies cement and related materials across the Great Lakes Region and is a significant producer of concrete and aggregates for the Ontario market. Considered a high energy consumption industry, St. Marys has just earned the first International Organization for Standardization (ISO) 50001 designation granted in North America for their energy management and conservation efforts. In addition to reducing their energy consumption, they have also improved their bottom line with nearly three million dollars in energy cost savings over during the past three years.
It was a team effort. In addition to having help from 360 Energy Inc. of Burlington, an energy team was established at St. Marys with representatives from every department.
“One of the reasons I believe we’ve been so successful with energy management is that we have a multi-discipline committee with representation from each department including operations, quality, HR, maintenance, finance and environment, leading to a commitment from all departments, which has resulted in improvement in energy performance,” explains Jim Storey, electrical maintenance manager, St. Mary’s Cement.
“It takes a very strong commitment from everyone working at the organization, day in and day out, and this is why St. Marys has qualified as being the first to receive this recognition” says Fabio Garcia, Manager of Plant Operations. “Employee awareness of the energy costs for various operations and procedures and training of staff paid huge dividends at a cement plant, where significant amounts of energy consumption are fairly normal for our sector.”
“The ISO50001 standard was introduced in June 2011 and for St Marys to be the first North American company to be certified that says a lot about the site’s management and the employees’ commitment towards energy and the environment,” says David Arkell, President and CEO, 360 Energy Inc. “The rapid certification of St Marys is a result of their commitment and the fact that their existing systems were close to certification-ready when the standard was published. For an organization that has not been active in energy management it could take between 24 months and three years to be ready for certification.”
Energy management is a priority because of the significant potential to save energy and reduce greenhouse gas emissions worldwide. “Energy-conscious companies will be better placed in the future economy,” explains Arkell. “It’s possible they will receive preferential treatment by customers, suppliers and government in the future. Being energy conscious should not be seen as a burden. It should be a part of business DNA.”
While the primary reason to become more energy efficient is to reduce operating costs (leading to increased profit) and the positive impact on the environment however Arkell suggests that “An increasing reason is reputational. For many global organizations it might be a ‘local’ response to head office policy or, in some jurisdictions (e.g. Europe) regulatory requirements.”
A company can expect a range of returns from effective energy management. “It is accepted that for organizations that have not been active in energy management, savings in the region of 5 to 20% can be made with very attractive paybacks,” explains Arkell. “Most people think they have to spend capital but it’s been proven half the savings achieved can come from educating the work force and altering internal procedures and practices within a company. Depending on margins, a $1,000 of saved energy can be the equivalent of increased turnover of $10-20,000.”
Arkell warns, “Energy Efficiency is just one component of managing energy well. For organizations to be successful at energy efficiency on a continual basis they must be proficient and continue to improve their knowledge of energy usage, data management, supply management (procurement of energy and equipment) and integrating energy in their daily business practices.“
Businesses of all sizes that adopt the ISO 50001 standard and successfully reduce their energy consumption will not only enjoy decreased energy costs, but will also move forward in achieving their environmental goals and, ultimately, diminish their carbon footprint. With the success of St. Marys Cement working within the framework of the 50001 certification and achieving a three million dollar savings, other companies will undoubtedly soon follow.
The first steps to becoming more energy efficient
>> Take active responsibility for energy use
>> Treat energy as a controllable cost
>> Understand total energy spend – electricity, gas, water etc
>> Measure what energy is used – and where/for what
>> Develop an energy baseline
>> Establish energy Key Performance Indicators
>> Develop an annual energy plan that fits the company’s strategic plan – getting input from as many people as possible
>> Ensure more than one person is involved in managing energy (accounting, operation, maintenance)
>> Seek outside expertise – e.g. local utility (electricity, natural gas and water) suppliers and consultants
>> The above steps would be the same for all sizes of organization – the differences would be in the number of people to be involved, complexity of processes and internal resources available.
— David Arkell, President & CEO,
360 Energy Inc.