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How do you achieve sustainable business?

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Presentation on theme: "How do you achieve sustainable business?"— Presentation transcript:

1 How do you achieve sustainable business?

2 Sustainability Indexes
Launched in 1999, the Dow Jones Sustainability Indexes are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide. Based on the cooperation of Dow Jones Indexes, STOXX Limited and SAM they provide asset managers with reliable and objective benchmarks to manage sustainability portfolios. Selection of No.1-positions in actual report (Sep. 2009) adidas (Personal & Household Goods) BMW (Automobiles) DSM (Chemicals) Nokia (Technology) Roche (Health Care) Total (Oil & Gas) Unilever (Food & Beverage) Siemens (Diversified Industrials)

3 "Creating sustainable value through technological leadership"
Sustainability Considerable contribution from Siemens towards implementing the United Nations Millennium Development Goals Siemens vision of a sustainable and fair world economy Siemens is member of the World Business Council for Sustainable Development (WBCSD) together with 200 global leading companies Siemens founded an international Sustainability Advisory Board 2009: 23 b€ turnover with Sustainable Products (+11%) For Siemens, Sustainability is a mission: "Creating sustainable value through technological leadership"

4 Sustainability Social Bearable Equitable Sustain- able Environment
Viable Economic

5 SOCIAL responsibility
Siemens solutions for traceability of drugs helps fighting against counterfeiting and supports patient safety Health for everyone throughout the globe – logistically and economically Siemens supports the pharmaceutical industry in the research of new diseases and their control Drinking water is a precious commodity and indispensable for good health Air contamination has a negative effect on peoples´ health. Siemens contributes towards a significant reduction in greenhouse gas emissions

6 ECONOMIC responsibility
Going green pays off In fiscal 2008, products and solutions from the Siemens portfolio reduced customers‘ CO2 emissions by approx. 34 million tons With the savings achieved by products and solutions installed in previous years, emissions were reduced by a total of roughly 148 million metric tons

7 ENVIRONMENTAL responsibility
A healthy environment for today's and tomorrow's society. It is a global responsibility to create the conditions to ensure this Siemens has the most comprehensive environmental portfolio worldwide On the R&D side, Siemens spends more than 850 mn Euros per year on environmental and climate protection Siemens´ environmental portfolio is being continually developed and redefined The portfolio's revenue and CO2 savings for fiscal 2008 was reviewed by the independent auditor PricewaterhouseCoopers Siemens is an active member of several climate change initiatives in Germany and globally

8 Responsible Care® Global charter Members Germany (summary)
Responsible Care® is the chemical industry’s global voluntary initiative to continuously improve their health, safety and environmental performance. Responsible Care® is a uniquely designed initiative that enables the global chemical industry to make a strong contribution to sustainable development. Through improved performance, expanded economic opportunities, and the development of innovative technologies and other solutions to societal problems, the industry will continue taking practical steps to implement initiatives in support of sustainable development. Members Germany (summary)

9 Responsible Care® Health & safety Environment protection Use of
resources Waste Emission Air Emission Water Consumption Energy Consumption Water

10 Energy – Waste – Water – Emission

11 How do you achieve sustainable business?

12 Market challenges EU: about 7 m€ unnecessary electricity costs every day because systems are not equipped with speed-variable drive systems are in some cases oversized 1.3 m€ a day could be saved and 3 million metric tons of CO2 could be avoided annually through the systematic use of energy-saving motors 40 percent of the world's energy is consumed by buildings 21 percent of greenhouse gas emissions can be accounted on buildings globally

13 Energy use in the Pharmaceutical Industry
Distribution of energy use in the Pharmaceutical Industry – energy consumption 25% Plug loads & processes 10% Lighting 65% HVAC

14 Customers requirements
Energy efficient building design Design of processes to save energy, waste and reduce emission Use sensors and monitoring solutions to identify energy losses and inefficient assets Increase of asset utilization Reduction of lead time

15 Siemens Answers Increase energy efficiency of buildings with Siemens’ intelligent and integrated building and room automation Management of Utilities to safe Energy Energy-saving motors from Siemens are characterized by a 40% lower power loss compared with standard motors Choke controls, electric drives used together with frequency converters from Siemens gain up to 60-70% when operating with fans, pumps or compressors Integrated solutions according to Siemens’ Totally Integrated Automation (TIA) concept reduce lead time and energy concurrently Siemens’ Power Management System optimizes the use of energy  reduction of energy costs by up to 20%

16 back to Energy Waste Water Emission

17 How do you achieve sustainable business?

18 Market challenges US pharmaceutical industry is wasting more than 50 b$ p.a. due to inefficient processes Approximately 200kg solid waste is generated per metric ton of API manufacturing Process inefficiency is institutionalized 5-10% waste is planned Sigma PPM Defects Yield Cost of quality 2 69,2% 25-35% 3 66.807 93,3% 20-25% 4 6.210 99,4 % 12-18% 5 233 99,98 % 4-8% 6 99,99% 1-3% Pharma

19 Customers requirements
Avoid waste in inefficient clinical batch production and batch-to-batch variations Reduce off-spec production to avoid waste (amongst others) in the form of unusable product Minimize waste in Lab testing Avoid products to expire during warehousing

20 Siemens Answers Process optimization as Right first Time and Online Analysis with Siemens’ software solutions will decrease lab testing efforts and reduce waste With Siemens’ Tracking & Tracing solutions your supply chain will be managed and controlled to avoid expired raw materials and products Continuous processing reduces intermediate material and waste. Siemens’ Totally Integrated Automation (TIA) enables efficient continuous manufacturing processes Optimized Chromatography to analyze batches

21 back to Energy Waste Water Emission

22 How do you achieve sustainable business?

23 Market challenges “Water is the oil of the 21st century” Andrew Liveris, CEO of Dow Chemicals The global water consumption is doubling every 20 years – water, unlike oil, has no substitute 40% of Fortune 1000 companies said the impact of a water shortage on their business would be “severe” or “catastrophic” – but only 17% said they were prepared for such a crisis. Most wastewater must be reused as fresh water in future

24 Water consumption in Pharma
Per 21CFR part 210: Pharma waters used in manufacturing of drugs or drug products are subject to the regulations of the cGMP‘s whether or not the product stays in the final product (e.g. cleaning, rinsing formulation etc.) Water is the largest ingredient in almost every drug produced. 5% 10% Bulk Manufacturing Fill Finish R&D Miscellaneous (boilers, chillers etc.) Facility 10% 60% 15%

25 Customers requirements
Reduction of water consumption Significant reuse of wastewater Guarantee high water quality Meet regulatory requirements

26 Siemens Answers Siemens solutions meet water quality requirements to ensure consistent processes and production Siemens helps industry meet ever increasing industrial wastewater regulations, while improving efficiency and reducing waste disposal costs Optimized Processes with Siemens’ Totally Integrated Automation (TIA) will lead to lower water consumption

27 back to Energy Waste Water Emission

28 How do you achieve sustainable business?

29 "We now have data showing that from 2000 to 2007,
Market challenges "We now have data showing that from 2000 to 2007, greenhouse gas emissions increased far more rapidly than we expected, primarily because developing countries, like China and India, saw a huge surge in electric power generation, almost all of it based on coal" Christopher Field, Stanford University and the Carnegie Institution for Science

30 Global Emissions – worldwide challenge
Greenhouse gas emission per capita in 2000 Countries by carbon dioxide emissions via the burning of fossil fuels (blue the highest)

31 Customer requirements
Emission reduction due to optimized fuel burning processes and reduced energy consumption High operational availability of 99,5% Alternative Power Generation Solutions Reduction of Air Consumption

32 Siemens Answers Control of Emission to meet the environmental regulations Siemens’ gas-cleaning process removes pollutants such as dust particles, heavy metals, SO2 and organic compounds from the off-gas stream far more effectively than in conventional processes Protection from emissions by Siemens’ Safety Solutions

33 back to Energy Waste Water Emission

34 SIMATIC PCS 7 © Siemens AG 2010. All Rights Reserved. Page 34
Industry Sector

35 SIMATIC PCS 7 Optimization of Energy Efficiency 1/2
Challenge: Many process control applications are characterized by facts like: start-up / shutdown procedures, change of operating points, or process-related dependency in closed-loops. This has a negative impact on the energy balance. Normally, too much energy is used, and this by reduced yield, less throughput and long service life Solution: Intelligent energy optimization with SIMATIC PCS 7 Advance Process Control Benefits: Energy consumption is clearly reduced (3 to 10%) because the standard deviation is minimized (up to 200%) and can be adjusted fast Yield is increased (about 2 to 10%) while energy consumption remains stable Transition between different operating points is optimized, which leads to faster operating point changes – this reduces energy consumption

36 SIMATIC PCS 7 Optimization of Energy Efficiency 2/2
Challenge: 20% of the world wide electrical energy demand in production plants is used for pump works. Application of redundant systems or special monitoring systems involves a high financial, energetic and plant specific additional expense Solution: SIMATIC PCS 7 Plant Asset Management with Condition Monitoring Benefits: SIMATIC PCS 7 offers a cost effective and energy saving solution for diagnosis of pumps through clever & intelligent combination as well as interpretation of measured data

37 Energy Efficiency SIMATIC PCS 7 with SIMATIC Powerrate
Challenge: Many companies do not have the required transparency regarding energy consumptions and the main cost originator The tariffs, arranged with the energy supplier, are based on energy peak values. But the average consumption is much lower Energy limits are often exceeded and thereby causing additional costs or contractual penalty Solution: Optimal monitoring and control of energy consumption with integration of the Power Management Solution with SIMATIC powerrate for SIMATIC PCS 7 – a software add-on Energy consumption monitoring (power, current, voltage) by integration of SENTRON PAC power monitoring devices and switch breakers and motor management systems in PCS 7 Benefits : SIMATIC powerrate provides transparency in energy consumption from the feed-in up to the consumer Energy data including of non-electrical energies (e.g. gas, steam, oil...) are continuously collected, archived and proceeded Identification of energy saving capabilities in combination with a more efficient energy purchasing will help to reduce the energy costs Transparency enables the optimization of the energy consumption – und this totally integrated in the PCS 7 environment 37

38 SIMATIC PCS 7 Reduction of Waste
Challenge: Many process control applications are characterized by facts like: start-up / shutdown procedures, change of operating points, or diversity of products and product quality as well. In the change-over undesirable products will be produced (waste) Solution: High product quality with Advance Process Control Optimized material transportation with SIMATIC Route Control Benefits: Transition between different operating points are optimized, which means faster operating point changes and less production downtimes  less waste Increased yield (typ. about 2 to 10%)  less waste Consideration of material tolerance (no unwanted mixing) (no pudding of vanilla flavor with chocolate flavor) Consideration of the status of the pipelines/reactors (cleaned, ...) Exclusive reservation of pipelines (e.g. for cure substances)

39 SIMATIC PCS 7 Water & Wastewater Treatment
Challenge: Industrial wastewater treatment plants (e.g. at starch production) require thinning / neutralizing processes with long „dead times“, which are difficult to control from the closed loop control-strategy point of view There are processes in industrial wastewater treatment plants, which are represented and automated with standard libraries only in a restricted way Water / wastewater plants are geographically distributed over a wide area (sewer network, pump stations). The integration of these distributed plants into an comprehensive automation solution is a challenge. Solution: Intelligent plant optimization with Advance Process Control Optimized solution based on water libraries Efficient plant management due to the integration of TeleControl Benefits: Thinning-/neutralizing-processes are optimized without wasting recourses The Water Library provides an optimal solution for industrial and commercial drinking water and wastewater treatment plants The distributed areas of plants are integrated into the total plant configuration in the same Look&Feel. This helps to reduce operating failures by the operators (TeleControl) 39

40 SIMATIC PCS 7 Reducing emissions
Challenge: Processes that run at a sub-optimal operating point or take too long to switch between operating points waste energy, creating additional and unnecessary emissions. Faults and malfunctions can have fatal consequences in the process industry, so it is vital to do everything possible to eliminate them. The number one priority is to minimize the potential threats to people, plant and the environment by technical means without any negative effect on the industrial production process. Solution : Emissions control and prevention with Advanced Process Control Integration of process safety into SIMATIC PCS 7 Benefits : Standard deviation is minimized (typically by up to 200%) and optimally controlled  lower emissions Energy consumption is significantly reduced (typically by around 3 to 10%)  reduced consumption means lower emissions (COx, NOx, etc.)  Safety: greater safety for people, plant and the environment (dioxin disaster in Seveso) 40

41 Sensor Systems © Siemens AG 2010. All Rights Reserved. Page 41
Industry Sector

42 Sustainability: Answers of Sensor Systems in the Pharmaceutical Industry
Energy Efficiency / Management Reduced energy consumption due to optimized fuel burning processes via monitoring of exhaust air and solvent combustion processes by Process Analytics (Oxymat; Ultramat, Fidamat; LDS 6) Emission Monitoring of the exhaust gases in solvent combustion processes or flares by Process Analytics (Oxymat, Fidamat, Ultramat or MAXUM / MicroSAM) helps to comply with environmental legislation for Continuous Emission Monitoring Systems (CEMS) Waste Avoid waste in inefficient batch production, batch-to-batch variations and reduce off-spec production by improved process control using process instrumentation and process analytics (e.g. Ultrasonic or radar devices for continuous level monitoring: Sitrans L; monitoring of dosing liquid and gas volume flows: Sitrans F; temperature and pressure monitoring Sitrans T and Sitrans P; Ultramat/ Oxymat; LDS 6) Water To meet increasing industrial wastewater regulations, while improving efficiency and reducing waste disposal costs by monitoring essential process parameters such as flow, pressure, level and temperature (Sitrans F; Sitrans P, Sitrans T and Sitrans L) 42

43 Energy Efficiency Optimization of Utility-Processes
Challenge: Control of utility processes as e.g. compressed air and steam generation; chilled water, de-mineralized water and electricity supply to ensure efficient, continuous and reliable manufacturing Solution: Control and monitoring of level, temperature, pressure and flow (SITRANS P, SITRANS T; SITRANS FO; SITRANS CLS 200; SITRANS LC 500) at e.g. glycol water, cooling water, industrial water, de-ionized water, city water and others to ensure optimal product compliance. Benefits: Energy efficient, compliance oriented utility supply to ensure cost effective, continuous and reduced off-spec production.

44 Reduction of Waste Challenge:
Measurement of 7 different solvents for solvent recovery processes serving up to 7 batch processes with a single analyzer only Seamless integration in plant production processes and plant communication networks Solution: One MAXUM process gas Chromatograph in split airbath oven operation 7 analytical methods using EZChrom software to handle 7 different batch processes Benefits: Improved solvent yields through better and faster process monitoring (3000 $ savings per batch; $ savings per year) Reduced waste solvent with need for disposal; (10% reduced solvent waste per batch) Improved process through-put due to much faster response time from on-line process analysis ( $ savings per year)

45 Emission Monitoring of exhaus gases
Challenge: Continuous monitoring of exhaust gases to control critical explosive limits, combustion processes, denitrification and furnace operation, to monitor emissions and indicate leak warnings Solution: Dependent on application installation of OXYMAT6 or 61; ULTRAMAT 23 or 6; LDS 6; FIDAMAT 6 or CALOMAT 6 for measurement of O2, CO, COX, NOX, SO2, NH3, THC, HCI, HF, CH4 Benefits: Continuous emission monitoring to comply with environmental legislation and reduce air pollution Increased plant safety FIDAMAT 6 ULTRAMAT 23 or 6 CALOMAT 6 OXYMAT 6 or 61 SITRANS SL

46 SIPAT © Siemens AG All Rights Reserved. Page 46 Industry Sector

47 Waste reduction with SIPAT
Challenge: The pharmaceutical industry wastes incredible amounts of valuable resources and money due to processes that create off-spec or low-yield products. To compensate for this unpredictable result, a buffer of extra warehousing stock is created, which in turn causes waste in the form of expired product. Solution: A key element in the reduction of waste is Process Analytical Technology (PAT) / Quality by Design (QbD). SIPAT – the PAT software solution of SIEMENS supports that approach Benefits: Obtain a predictable process and predefined product quality Just-in-time production and manufacturing methods according to market demand (increased throughput around 30%) Real-time product release eliminates time-consuming end-product testing (scrap reduction around 5%) and further reduces waste in the form of expired warehouse product (stock cost reduction around 15%)

48 Customer Value Example
Customer and site an injectable plant in Ireland is seeking for cost saving (waste reduction) through modernisation of manufacturing and implementing QbD Measures (extract) Defining improvement scenario’s for manufacturing Assessment of improvement scenarios on: Labour Throughput time Quality Waste inventory levels Result Manufacturing, throughput reduced by 30% Quality 13% reduction QA/QC cost (0’2€) Waste reduction; 3,5% (1’8 €) Inventory; reduction with 30% (>10’0€) ROI < 2 year

49 Building Technologies
© Siemens AG All Rights Reserved. Page 49 Industry Sector

50 Energy Performance Contracting (EPC)
0′0 Energy Performance Contracting (EPC) Pre-Selection of locations Energy Health Check (EHC) Energy Analysis (EA) Project Execution Decision by Investor & User Energy Performance Contracting (EPC) Building Performance Optimization (BPO) Energy Performance Contracting Realization of measures from e-analysis Total investment is covered by savings Guaranteed savings with a predefined payback period Integrated approach (Owner and tenant) Financial solutions by contractor Continuous optimization Savings Siemens Contract Volume Energy / Operation Costs Baseline Reduced Costs by EPC Time

51 The sustainable Energy & Environmental Solutions Process
Building Owner / Operator Letter of understanding Letter of intent Contract closure Change of usage, consumption, accounting Preliminary analysis Detailed analysis Implementation Guarantee phase Preliminary study Detailed study Planning, installation, project management Energy saving guarantee measurement, verification, service Laws, directives, governmental iniatives: Kyoto, EU directives, energy star, leeds Improved Business results: Studies / Wirtschaftlichkeits grafik CO2 Reduction; Relevant mainly for public buildings and in the EU Modernization: Classical PFC- Modernization but budget problem, mainly public building, clear process regulation and manuals Image: green image (energy star, leeds, eu initiatives), PR, reference for other customers – mainly for the public sector Reliable energy supply: black outs, very important for industry Improved Business Results – fixed pictures – update into improved business result Need to push up the graph Siemens Building Technologies EES Offering Customer Needs Vertical Market Project Demand side Modernization Housing Socities Hungary Image + Co2 Reduction Public Buildings Berlin Supply side Reliable Energy Supply Education School District Chicago Energy Optimization Services Cost Reduction Various (Retail) UK , Bakery (Installation of Meters) Environmental Solutions Compliance with laws and directives Healthcare New York-Presbyterian Hospital Energy Strategic Planning ?? BAE Industry Ford

52 Examples for safe, secure and compliant environmental conditions in R&D
Adjust the blinds according to the user profile Optimize energy consumption with optimized VAV Adjust the air exchange rates in accordance with the personnel flow and user profile Increase staff safety with unique fire detection, extinguishing and evacuation solutions Increase staff comfort with centralized control functions

53 Optimization of energy efficiency in classified clean rooms
Monitor air exchange rates with continuous counting of particles Adjust the air exchange rates in accordance with the user profiles Adjust the air exchange rates in accordance with the personnel flow Adjust the lighting according to the user profile Use the design space to regulate temperature and humidity Adjust the ISO class according to open and closed processes Reduce the pressure differential by precisely measuring the air flow 53

54 Customer Value Example
Customer and site Chiller plant interconnect and optimization project at genomics of large pharmaceutical company Measures (extract) Installation of a Optimal Multiple Parallel Pump sequencing Variable primary chilled water Pumping sequence Chilled water temperature optimization Optimal chiller sequence Condense water Temperature / Cooling Tower / Fan Optimization Result Annual energy savings are calculated at kWh or over USD ,-- in annual operating costs (ROI < 2 year) Approximately 451 Ton of avoided CO2 emission per year

55 Water / Waste Water 55

56 Water Reuse and Reclaim with Siemens W&WW Solutions

57 WT Success Story Customer and site
Large pharma plant, St. Louis, MO, USA Healthcare products facility Small ‘validated’ Purified Water system with infrequent use Details Worse case scenario for this technology; Small 1.1m3/hr, Single train, System production 32hr/wk (19% util) Validated USP PW Client wanted GREEN solution, Looking to duplicate globally Result Saving 823,000 gallons water/yr Saving €13,000/yr or €175,000/10yr Extremely low microbial counts (85% of tests = 0 CFU/100ml, only 7 detections in 6 mon. avg = 0.12CFU/100ml (limit = 10,000 CFU/100ml) System cost €113,000 Revolutionary Design: Reverse Osmosis/Continuous Deionization (RO/CEDI)

58 Motors Page 58 Industry Sector

59 Optimizing energy efficiency Motors
Challenge: Electric drives account for around two thirds of total energy consumption in industry. Given the steady rise in energy costs and current concerns about climate change, the energy consumption of drive products is accordingly a matter of significant and increasing concern. Solution: Our energy-saving drives, frequency converters and starters can help you exploit potential savings to the maximum, making you more competitive in the long term and simultaneously reducing your environmental impact: SIRIUS, SINAMICS, MOTOX, MICROMASTER, SENTRON Benefits: Energy-efficient motors can reduce dissipation losses by 45% Further energy savings of up to 50% can be achieved by using frequency converters (88% of all motors are unregulated) Retrofitting and optimization could cut annual CO2 emissions by 40 million metric tons in Germany alone Energy consumption can be slashed by up to 70% using energy-efficient Siemens drives

60 Page 60 Industry Sector

61 Supply Chain Optimisation Waste Reduction with Tracking & Tracing
Challenge: Guarantee patient safety Economical damage caused by counterfeits Brand protection Solutions: Mass serialisation for ePedigree Tracking und Tracing solution based on WinCC und SIMATIC IT RFID-solutions French coding Retrofitting of existing packaging lines Benefits: Improved product safety, mitigating the risk of counterfeiting and safeguarding Compliance with legal requirements and other national directives Waste reduction Increase in supply chain efficiency Streamlined and traceable production Clear verification of bulk material Expiration date of product Material tracking Meeting FIFO principle

62 Energy – Power Generation
Page 62 Industry Sector

63 Emissionen Power Generation – Gas cleaning
Challenge: Gasification offers one of the cleanest and most flexible ways of converting coal and low-grade fuels into high-value products – electricity, chemicals or synthetic fuels. Combining gasification with advanced gas turbines in Integrated Gasification Combined Cycle (IGCC) power plants results in a highly efficient technology for coal-based power generation. Gasification can offer environmentally friendly plants with lower emissions and the combination with readily available technology for CO2 Capture and Storage (CCS). Solution: Siemens Fuel Gasification Technology Dry solids feeding for high efficiency and low O2 consumption Top-mounted dust burner with extended burner lifetime Cooling screen for high availability and low maintenance Full water quench for simple and reliable design Benefits: High carbon conversion: > 98 % Operating pressures: 40 bar and above Shorter start-up times Smaller dimensions for reduced equipment costs High availability and low maintenance Proven experience: More than 20 years of successful operating experience

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