Presentation is loading. Please wait.

Presentation is loading. Please wait.

© 2007 IBM Corporation 4th India Steel Summit Achievement & Unfinished Agenda August 2010 Vishal Mehta New Paradigm for Green and.

Similar presentations


Presentation on theme: "© 2007 IBM Corporation 4th India Steel Summit Achievement & Unfinished Agenda August 2010 Vishal Mehta New Paradigm for Green and."— Presentation transcript:

1 © 2007 IBM Corporation 4th India Steel Summit Achievement & Unfinished Agenda August 2010 Vishal Mehta vishalmehta@in.ibm.com New Paradigm for Green and Sustainability

2 © 2007 IBM Corporation IBM Sustainability Solutions 2 The four key pressures on organisations Global Pressures Increasing regulatory requirements, many enforced globally Carbon credits & trading Regional / Local Pressures EU lead the agenda for CO 2 reduction EU Regulation for energy using products implementing measures under study Global Pressures Customers environmentally aware Greater demand for more environmentally preferable products and services Regional / Local Pressures Corporate policy extending beyond the bounds of law, high efficiency is a basic requirement Premiums start at higher costs Local talent management Global Pressures Rising energy, raw materials and waste management costs Scarcity of resources Risk from adverse weather Regional / Local Pressures Exchange rate $ vs. EUR and export Higher eco tax Source of local supply and security of source Global Pressures Customers increasing demand for environmentally preferable products and services Operational efficiencies Regional / Local Pressures Availability for resources Local competitors Organisation Laws, Regulation, Standards To reduce emissions of greenhouse gases such as the EU Emissions Trading Scheme, Climate Change Levy or Building Regulations Stakeholder Pressures From investors, market and financial analysts, employees, consumers or NGOs about the environmental and economic consequences of climate change Costs Rising costs of energy, transport, waste disposal and raw materials; risks for physical assets due to climate change / global warming New Business Developments in markets, knowledge and new technologies, which enable business to cut their carbon emissions while increasing productivity and finding potential new revenue opportunities

3 © 2007 IBM Corporation IBM Sustainability Solutions 3 Aware Practicing Optimizing Leading Experimenting TIME Values-based Self Regulation Incorporates the company's value system and/or code of conduct to guide business behavior Growth Platform Access to new markets, new partnerships or product/service innovations that generate revenue Legal and Compliance Adherence to law in the countries of production, operation and distribution Efficiency Measurable cost savings through efficient or win- win scenarios Strategic Philanthropy Alignment of charitable activities with social issues that support business objectives The CSR Value Curve: a shift from cost to returns

4 © 2007 IBM Corporation IBM Sustainability Solutions 4 Pressures & Imperatives Are Shifting Traditionalist view: I need to do what is right New sustainability view: I need to do what is smart Traditional imperatives for green focused on a moral imperative to preserve safety & life The new pressures are about being responsive to stakeholders and building a better, sustainable business Energy Land & Resources Air Water Conservation & clean energy Reducing pollution/ CO2 Clean water Protection Brand & GrowthRegulationTalent Risk Operational effectiveness Cost reduction Todays green business leader doesnt abandon principle nor business acumen, but embraces both in the new sustainability view.

5 © 2007 IBM Corporation IBM Sustainability Solutions 5 Why Sustainability takes Center Stage Stake holders are now very involved Delay or inability to start green field projects ( Perception of polluting industry) Very active Civil Society Global pressure on adopting cleaner, greener product ( non trade barriers) Recent examples of investor activism in the west against companies with suspect track record Non renewable resources getting scares There is likely to be a price to pollute in India in near future Cant rely on regulations alone – need to move beyond in a globalized world The nature of steel industry makes it a very visible entity

6 © 2007 IBM Corporation IBM Sustainability Solutions 6 Steel Sector is Important Wri 2008 Regulations already in Force in Europe -- cascading effect over medium term for the Indian Steel Sector

7 © 2007 IBM Corporation IBM Sustainability Solutions 7 Scope for improvement balanced with high growth of sector

8 © 2007 IBM Corporation IBM Sustainability Solutions 8 Adopt Sustainability – Water, Carbon, Safety as part of core business KPIs Process Change Technology Enablement Business Transformational Outsourcing Strategic Roadmap Development Degree of Transformation Supply chain strategy Program Management Change Management Product lifecycle managemen t Supply chain operations Procuremen t Logistics Enterprise Asset Managemen t Supply chain planning Product/project portfolio Process/IT collab Computer aided engineering Model driven syst engng Product dev mgmt Environmental Product Lifecycle Mgmt Demand and distribution planning Inventory optimization Supply planning & optimization SC collaboration, incl S&OP SCP/BTO Sustainable SCM Strategy Supplier relationship mgmt Strategic sourcing Spend analysis E-procurement Contract compliance Procurement transformation, inc BTO Sustainable Procurement SC Ops analytics & transformation Quality mgmt Spare parts optimization MES and plant floor integration Energy mgmt Retail solutions Sustainable Integrated Operations Logistics strategy DC ops Reverse logistics RFID WMS/TMS Global sourcing Sustainable Logistics Operations Supply chain strategy SC assessment & benchmarking Transformation strat development Business model & governance devel SC ops improvement & optimization Technology/systems assessment M&A support Sustainable SCM Strategy, Carbon Tradeoff Model, Sustainable Logistics Operations SC Ent Apps Package selection BizProcess improvement Training srvs Version upgrades Systems harmonization Real estate and facilities asset lifecycle mgmt (ALM) Plan & Production ALM Mobile ALM Infrastructure ALM IT and network ALM Service lifecycle mgmt Sustainable ALM

9 © 2007 IBM Corporation IBM Sustainability Solutions 9 Early Adoption of Sustainability Management as core Business Function Define KPIs - Build carbon, water or solid waste key process indicator (KPI) set (regulatory & stakeholder driven) Metering - Deploy mobile metering capability, establish energy use baseline & identify opportunities for improvement Deploy Carbon Console – Deploy web based management system Optimize Process – Use applied Lean Sigma techniques to analyze, improve and optimize identified high energy (or other) use areas Ongoing Control – Deploy follow-on controls across defined kpis, deploy additional metering & management capability 1. Definin g KPIs 1. Definin g KPIs 2. Meteri ng & Baseli ning 2. Meteri ng & Baseli ning 3. Deploy ing Carbon Consol e 3. Deploy ing Carbon Consol e 4. Optimiz ing Proces s 4. Optimiz ing Proces s 5. Ongoin g Control 5. Ongoin g Control Involves using the existing systems and Processes to include Sustainability parameters

10 © 2007 IBM Corporation IBM Sustainability Solutions 10 Adoption of concepts like Green Sigma for Continuous improvements Gas savings of ~20%-25% within one European site – equates to saving close to 1,000 tonnes of CO 2 per annum Electricity savings within US-based Green Sigma TM project is projected to achieve savings of 10-15% minimally

11 © 2007 IBM Corporation IBM Sustainability Solutions 11 What next Leadership in Energy Efficiency, CO2 emissions and climate change Development of new generation products ( Invest in R&D and IP creation) Adoption of Technology & innovation ( Low carbon steel, CCS pilot studies) Financial robustness and cost competitiveness Stakeholder engagement and community initiatives in a transparent way Move beyond regulations and report HSE parameters Value creation for stakeholders with Shareholders Sustainability as a KPI in entire Value Chain and not just a silo function

12 © 2007 IBM Corporation IBM Sustainability Solutions 12 Thank you


Download ppt "© 2007 IBM Corporation 4th India Steel Summit Achievement & Unfinished Agenda August 2010 Vishal Mehta New Paradigm for Green and."

Similar presentations


Ads by Google