Presentation on theme: "Manager, Energy & Sustainability J&J Workplace Solutions"— Presentation transcript:
1 Manager, Energy & Sustainability J&J Workplace Solutions Energy ProgramDan CassidyManager, Energy & Sustainability J&J Workplace Solutions
2 Johnson & Johnson The world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the Consumer, Pharmaceutical, and Medical Devices & Diagnostics markets.More than 250 operating companiesMore than 115,000 employees worldwideSelling products in more than 175 countries3 Segments: Pharmaceuticals, Medical Devices & Diagnostics, and Consumer2012 Sales $67.5 BillionEnergy only $300 MM
3 1943 Our CredoRobert Wood Johnson crafted Our Credo long before anyone ever heard the terms “sustainability” or “corporate social responsibility.”The Credo serves as the foundational strategy for all of Johnson & Johnson businesses worldwide. Our credo focuses on the following four pillars:customers: the first pillar of the credo states our commitment to serving the customers who use our products.Employees: a commitment to treating our employees with the highest respectOur communities: serving the world in which we work, by encouraging outreach, health and educationStakeholders: If we successfully follow all other aspects of our credo, and create quality products, there will be a healthy profitThe credo also states that “we must maintain good order the property we are privileged to use, protecting the environment and natural resources”.Overall, a focus on people, planet and business is directly aligned with our credo values.Robert Wood Johnson was a visionary that understood J&J’s stockholders would receive a fair return when the company kept our customers, employees and the communities in which we do business at the forefront.
4 Up to $190 Bn savings opportunity 3% solution that we participated in, Stay below 2 degree CUS Corporations should be reducing by 3% per yearWhat is also nice about this study is the $190B potential savingsUp to $190 Bn savings opportunity
5 1990-2010 Sustainability Reporting Environmental Leadership1990 First Pollution Prevention goalsSustainability Goals1993 First Sustainability report2000 Next Generation goals2005 Healthy Planet goals2010 Healthy Future goalsJohnson & Johnson Environmental Report, 1993J&J has been publically reporting on environmental goals for over 20 years.Our first sustainability report in 1993 laid the ground work for measurement and improvement over the next 2 decades. Since then J&J has increased the level and depth of transparency in the annual sustainability reports. More information is available atFrom that great foundation in 1990, J&J has since launched three 5-year goal periods, starting with the Next Generation goals in 2000 and most recently with Healthy Future 2015, the most comprehensive set of sustainability goals yet. Over the years these goals have resulted in the reduction of environmental impacts, including thousands of tons of CO2, waste and water.
6 Healthy Future 2015 Healthy People Healthy Planet Healthy Business Research and development for neglected diseasesAffordable access to medicinesAdvancing community wellnessFostering the most engaged, health-conscious and safe employees in the worldBuilding on our legacy in safeguarding the planetReduce the environmental impact of our operationsIncrease the sustainable design of our productsEnhancing outcome measurement in philanthropyPartnering with suppliers that embrace sustainabilityCommitting to enhanced transparency and accessing the power of external collaborationHealthy Future 2015 is our current set of sustainability goals. They extend beyond just environmental sustainability. Healthy people aligns with the first three pillars of our credo, which focuses on customers , employees and communities. Healthy planet focuses on the third pillar of our credo; community outreach and environment; and when everything comes together, it creates a healthy business, representing stakeholders, the fourth pillar of credo.These goals were developed through interaction with stakeholders , thought leaders, and benchmarking against other leaders within the industry.
7 Reduce Facility Impacts 2015 Goals:20% absolute reduction in facility CO2 emissions by 2020Increase onsite clean-technology energy capacity to 50 MW20% decrease in fleet CO2 emissions per mile10% absolute reduction total waste disposal & water consumptionHealthy Future 2015 is our newest set of sustainability goals that address the environmental, health, and wellness .Specific goals related to reducing environmental impact at a facility level include reduction of CO2 emissions, fleet emissions and waste disposal.Janssen Raritan site 1,870 kW completed December 29th 2011
8 CO2 Reduction Strategy – Existing Buildings Energy Efficiency - Best PracticesOn-site co/tri-generation, fuel cellsOn-site renewables: solar, wind, biomass, landfill gas, geothermalGreen energy procurement (PPA’s)
9 CO2 Emissions [ Thousand Metric Tons] Worldwide CO2 ResultsWorldwide Results Goal vs. 2010: -4% CO2 Emissions vs. Sales Actual vs. 2010: -6%Sales [Billion US$]CO2 Emissions [ Thousand Metric Tons]Reputational riskBuy way out or actually do it?Sales increased by 500%, but emissions generally flatNet EmissionsOffsetsSales
10 2012 J&J ENERGY PROFILE – WORLDWIDE DATA CO2 EMISSIONSFLOOR SPACEThousand Metric TonsMillion SQ.FT.+38%+12%ENERGY USAGEENERGY COSTEnergy increased by almost 200%!+181%Trillion BTU’sMillion US$+31%
11 J&J Electricity Rates PR at top because of oil US at bottom because of shaleBRIC sites in middle
13 Commitment to Clean Energy Currently 45 MW installed or in-progress34 Solar10 Cogeneration3 Biomass3 Geothermal2 WindProject pipeline of over 14MW9 Solar2 Cogeneration3,000kW Tri-GenerationLimerick, IrelandTwo 500 kW wood chip boilersCork, IrelandEnd of 2012 numbersJ&J has significant experience with renewable energy and has been a leading these initiatives for years. We have completed several projects, investing $250 in renewable energy with an average Internal Rate of Return (IRR) of 19%.As evidenced by our many recognitions from the U.S. EPA, including being named one of the 10 Greenest Companies in 2011, we have an understanding of the challenges and opportunities that come with on-site renewable energy generation.500 kW PV array, New Brunswick, NJ
14 Existing Buildings: O&M Commitment to Sustainable BuildingsLEED Sustainable Building Policy: All new construction and major renovations of J&J facilities will be LEED certified.Select Examples of Our 15 LEED Buildings Worldwide:AFFILIATELOCATIONRATING SYSTEMTYPELEVELDATEJanssenTitusville, NJLEED Existing BuildingsSilver2004J&J PRDLa Jolla, CA New ConstructionCertified2005McNeilFt. Washington, PA Commercial Interiors2006Springhouse, PAGold2009CorporateNew Brunswick, NJ Existing Buildings: O&MJ&J Consumer ChinaShanghai, China2010LifescanInverness, ScotlandNew Construction2011LEED is the premier green building certification organization in the world. All new J&J buildings must be LEED certified.LEED:LEED® (Leadership in Energy and Environmental Design) was developed and piloted in the U.S. in The development of LEED® has been through the U.S. Green Building Council member committees. The rating system addresses specific environmental building related impacts using a whole building environmental performance approach. In addition to LEED-NC (for new construction and major renovations), there are versions for existing buildings, commercial interiors, core and shell, homes, and neighborhood development. There are also application guides that can be used to increase the applicability and flexibility of LEED® (e.g., multiple buildings and campuses, schools, health care, laboratories, lodging, and retail (pilot).We have a total of 12 LEED certified buildings, with 2 more under construction.
15 Policy for Sustainable Design and Construction - Revised 2012 Targets higher Energy & Atmosphere scoresForces evaluation of new technologiesMandates use of technologies with 10 year or better paybacksFocus on right-sizing equipmentAdded smaller buildings to policy scopeCan delete
16 CO2 Capital Funding Process August, 2004 Criteria:$40 million per year in capital relief for projects worldwideProjects provide good financial returns:15% Internal Rate of ReturnProjects must provide meaningful CO2 reductionAlthough we set a goal and understood that capital investment was needed, projects did not get approved at the rate needed to meet our goal. Were competing with other capital projects. In 2004, instituted a corporate-wide funding process. Set parameters… Was instrumental in implementing capital projects.
17 CO2 Projects Funding Program 146 projects approved$313.6 million US approvedAverage IRR: 19.3%100 Projects Complete145,887 metric tons CO2/yrEnd of 2012 numbersMajority of projects are efficiency2005200620072008200920102011201220132014Actual Spending[$ MM]$21.4$26.4$38.3$12.0$44.0$56.4$48.2$22.2$39.9$4.8
19 Energy Efficiency – Recent examples HVAC Upgrade, Raynham, MAVariable speed air compressor, J&J MumbaiLighting upgrade HCS, MemphisTypes of Projects we do every yearChiller upgrade Vistakon, JacksonvilleBoiler upgrade J&J UKGas ConversionJ&J Thailand
20 Drive Implementation through Programs J&J Energy Best PracticesProject Cold (Chilled water optimization)Project Hot (Boiler system optimization)Project Relight
21 Coming Soon… Project Air (compressed air retrofits) Project Aeolus (Reduce air changes in HVAC)Project Hydro (water reductions)Project Clean (Improvements in CIP’s)Project Lab (Lab hood energy reduction)Project You (Awareness & behaviour change)Project Zero (Carbon neutral sites)CIP = Clean in Place