1. Sustainability Internal Drivers and Self-Assessment Dennis J. Stamm
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11/21/2018
Sustainability
Internal Drivers and Self-Assessment
Dennis J. Stamm
VP, Director Lean Enterprise Consulting
February 22, 2010
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2. What is Sustainability?
Sustainability was defined in 1987 at the World Commission on Environment and Development as, “Development that meets the needs of the present without compromising the ability of future organizations to meet their own needs.”
Extraction and consequential disposal of resources at rates or in forms that nature can absorb

3. Sustainability Drivers
Rising Costs of Energy and Raw Materials
Developing Legislation (EU RoHS, WEEE, REACH)
Increased Global Competition
Market differentiation & Consumer demands for “Green”
Image and corporate citizenship
Delivering solutions that create a desirable future for people, business and environment
Just Good Business

4. “Triple Bottom Line” Drivers: Social – Environmental - Financial
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“Triple Bottom Line” Drivers: Social – Environmental - Financial
Social
Sensitize Stakeholders
Environmental
Produce benign emissions
Use renewable energy
Close the loop
Use resource efficient transportation
Financial (business model)
Eliminate NVA
Redesign commerce
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5. External: Regulatory Compliance Internal: Economic Bottom Line
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Primary Drivers
External: Regulatory Compliance
Internal: Economic Bottom Line
Most Sustainability initiatives lack commitment unless they drive economic results
How increased shareholder value, and operational excellence result from Sustainability Excellence:
Direct cost savings
Increased customer loyalty
Improved safety, employee engagement and ability to attract / retain talent
Improved cash flow and profitability fund innovation and development of new products and technologies
Improved environmental performance with lower emissions and energy use (beyond compliance)
Regulatory risk minimization
Brand equity
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6. Economic Bottom Line
Companies which successfully identify and manage risks and opportunities associated with sustainability are clearly able to deliver a higher return-on-equity (ROE) than similar companies that do not. Zurich-based SAM (Sustainable Asset Management) Group

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Sustainability
Sustainability – achieving short-term and long-term operating cost reductions
Stress water conservation and waste water reduction
Reduce carbon footprint
Reduce solid waste and hazardous materials
Extensive use of re-cycled water and materials
Environmentally sound strategies for energy and water use, transportation, product packaging, and other opportunities
Eliminate waste
Minimize carbon footprint
Minimize use of natural resources
Do more with less
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8. Self-Assessment of Operations
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Self-Assessment of Operations
Conceptual
scoping
Assessment must be fact-based and aim to build a business case for action
Assessment (L1, L2, L3)
Data analysis
and field
observations
Gap Analysis
Business
Case & Plan
Project
Definition
The assessment focuses on: Operational-efficiency opportunities
- Energy-efficiency opportunities
Implementation
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Use a thorough checklist to ensure a Sustainable project implementation
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The assessment can offer recommendations to improve efficiencies and to achieve immediate and long term capacity gains…
Current
Capacity
Quick
Wins
“OpEx”
Transformation
CapEx
driven
Expansion
Future
Capacity
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… as well as recommendations to minimize reduce energy consumption and GHG emissions
Current
Level
Energy
Consumption
Energy
Quick
Wins
Energy
“OpEx”
Transformation
CapEx
driven
Energy
Mitigation
Future
Level
Energy
Consumption
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… use a variety of industry-proven audit tools to identify efficiencies with current technology and potential use of renewable sources
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13. Work and find partners to strive for:
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Work and find partners to strive for:
Vision
Design
Construct.
Operations
Decomm.
Sustainability Principles
End-to-end Lean Sustainability approach across the life cycle of a facility to achieve:
Excellence in operational performance (cost, delivery, quality)
Excellence in sustainability performance (emissions, energy consumption, environmental waste)
Combined Lean and Sustainability practices drive behavior change and the development of a continuous improvement mindset
Requires a broad set of global and integrated capabilities ranging from consulting to engineering to construction to operational implementation to greatly reduce time and risk
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14. Sustainability Principles
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Sustainability principles are also applicable to the last stages of the facility life cycle
Sustainability Principles
Vision
Design
Construct.
Operations
Decomm.
Cost-effective and sustainable decommissioning
Planning for decontamination and decommissioning
Equipment refurbishing, relocation & reuse
Sustainable building reuse or building demolition
Recycling of materials collected during decommissioning
Assistance site sale or lease
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15. Factory of the Future: Lean and Sustainable
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Factory of the Future: Lean and Sustainable
A Symbiotic Life Cycle approach that stresses the
elimination of waste
everywhere while adding value for customers.
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Discussions
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