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Copyright © 2013 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Driving Energy Management Transformation
Study on energy management maturity of companies in
Singapore
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Accenture Overview
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them become high-performance businesses and governments.
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Accenture Sustainability Services
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Sustainability is the way an organization creates value for its stakeholders by leveraging its assets and
capabilities to drive innovation and profitable growth while striving for a positive environmental and social
impact.
We work with world leaders to create value for business, society and the environment
We have deep understanding of the sustainability challenges across a wide range of industries
We are leading the global discussion on sustainability through partnerships with globally recognised institutions
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Content
Conclusion and Q&A
What is Enterprise Energy Management (EEM) and why is it important?
What were the key findings from our survey?
What are some of the recommendations for companies going forward?
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Energy efficiency is a key priority for Singapore’s sustainability
agenda – aim to achieve significant energy efficiency by 2030
Policies relating to Energy Efficiency
Buildings • 80% of existing buildings to achieve
minimum of Green Mark Certification by
2030
HDB
Common Areas • Increase energy efficiency by 30% for
mature estates and 20% for new estates by
2030
Companies • Energy Conservation Act affecting consumers
>15GWh/year from 2013
Households • Energy inefficient air-conditioners and
refrigerators removed from the market by 2011
Sources: Singapore Sustainable Blueprint. Singapore
National Climate Change Strategy
Illustrative
“We will need to continue our efforts to meet our target, under the Sustainable Singapore Blueprint, to reduce Singapore’s energy intensity by 35% from 2005 levels by 2030,” said Ibrahim (previous Minister for Environment and Resources)
= survey focus area
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Focus of energy management has typically been on technological
solutions to achieve energy savings
Studies have shown that the energy and emissions reduction efforts for industry sector has
traditionally been focused on system equipment rather than optimising systems
Focus on energy efficiency has typically been introducing technological solutions such as VSDs, control systems, cogeneration for example
It can also sometimes be difficult for operational staff to recognise energy efficiency opportunities as the focus is generally on core business activities and less on energy,
There can also be budgetary disconnect between capital projects (e.g. equipment purchase and operating expenses)
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Technology solutions can certainly reduce energy consumption significantly
However, technology is only one part of the equation in achieving long term energy reduction
Having the right enterprise management system (Strategy, Leadership & Governance, Equipment & Technology, People and Processes) can complement energy efficient technology solutions to drive further and sustained savings
Example of energy efficiency measures
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Accenture’s Enterprise Energy Management Framework
Industry examples have shown that implementing enterprise
management can lead to greater and sustained energy savings
By integrating best practices in strategy, leadership, technology, people and processes, this approach
may lead to a transformational change in how energy is procured and managed and realises sustained
cost savings and improved compliance
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Accenture partnered with NEA to carry out a qualitative survey of
Singapore companies energy management maturity
1. How mature are energy management capabilities amongst the energy intensive companies in
Singapore?
2. What are the key areas for companies and policy makers to focus on in driving energy
management?
Key survey research questions:
With the Energy Conservation Act coming into force, Accenture with support from NEA invited those
companies subjected to ECA to provide their view on the state of their energy management maturity
These companies include some of the most energy intensive sectors in Singapore:
Petrochemicals Precision Engineering Wafer and Semiconductors
Biomedical Electronics
Chemicals
Food Manufacturing Power Generation
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Content
Conclusion and Q&A
What is Enterprise Energy Management (EEM) and why is it important?
What were the key findings from our survey?
What are some of the recommendations for companies going forward?
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The survey assessed an organisation’s energy management
capability across five components
• Assess an organization’s energy management capabilities through 18 components across the 5 pillars of
the EEM framework
Accenture’s EEM Capability Maturity Model
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A key business question for each component was asked,
supplemented with an indicative view of current market practices
Basic Performance
Competitive Performance Leading Performance
1 2 4 5 3 Evaluation Scale :-
• Year-on-year corporate objectives are
defined with basic energy management
plans in place.
Basic Basic to competitive Competitive Competitive to Leading Leading
• Well-defined short term (up to 3 years)
corporate goals, which serve as a
guiding principle for designing energy
management plans and objectives.
• Well defined energy management
strategy (e.g. ISO 50001), which is
completely aligned with corporate
goals; clearly stated short-term and
long term (> 5 years) energy objectives.
1C. Energy Strategy: Does the organization have a clearly defined energy strategy with clearly laid out goals and objectives?
Example:
Self assessment by employee of company indicating the relevant level
of maturity for a particular energy management component
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Responses from 100 different companies were recorded,
comprising a mix of industry groups, types, and sizes
There were over 120 responses from 100 unique companies comprising a broad split of industry groups
and company sizes. Majority of the companies are a part of a global multinational company.
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Main Finding: People centred components of energy management are less mature and more varied
Survey respondents from the companies surveyed cited people centred components to be lagging as
compared to other components, as well as room for improvement for the overall level of energy
management practices
Survey responses from companies in Singapore suggests improvements can be made particularly to:
• Rewards and incentives
• Roles and responsibilities
• Organisational structure
• Core skills and training
In other words, the ‘softer’ aspects of energy management
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Opportunities to further improve
performance across the energy
management components, such
as software and information
system or setting of energy
targets/ indicators
Improving on these areas can
help further drive energy
management culture within the
organisation
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Main Finding: People centred components of energy management are less mature and more varied
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• The people centred components also appear to vary across companies surveyed,
• This seems to indicate differences in the way companies in Singapore approach the more people centred components of energy management
• Of the 100 companies surveyed, only 4 indicated they are ISO50001 certified
• The maturity of these companies seem to be significantly higher than average (although sample size is small)
There is a variation in the way different companies define their energy management capabilities
ISO certification can help set the right framework for energy management
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Other findings: Levels of energy management maturity vary between different industry sectors but similar across different size
Levels of energy management maturity vary between different industry sectors
The pattern of energy management maturity is similar irrespective of the size of the company
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• Biomedical and petrochemical industry seem to be more mature in energy management overall
• However, the companies within the industry also appear to vary in their maturity levels as compared to other industries such as electronics or wafer
• The maturity ‘pattern’ seems to be consistent across companies of different sizes- i.e. companies commonly perceive ‘people centred’ components as an area for improvements
Copyright © 2013 Accenture All Rights Reserved.
Content
Conclusion and Q&A
What is Enterprise Energy Management (EEM) and why is it important?
What were the key findings from our survey?
What are some of the recommendations for companies going forward?
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1. Understand where you are now can determine the energy management interventions going forward
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The survey points to varying levels of energy management maturity amongst the companies in
Singapore. The interventions would therefore be dependent largely on where the organisation is
currently and where they want to be.
Be
ne
fits
Basic
Leading
Level of Maturity
Competitive
Prioritisation of interventions based on impact potential and time horizon for impact
Company A: current level
Company A: future vision
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2. Drive energy management in a structured and holistic manner- from strategy to execution
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Strategy:
Carry out a stakeholder
management analysis to
establish key priorities
Leadership and Governance:
Identify list of most relevant
and significant indicators for
energy
Set baseline and targets
People:
Define roles and
responsibilities for key
business units and
employees with individual
metrics and targets on energy
Consider linking rewards to
targets
Processes:
Establish reporting and
feedback processes for
energy performance
management and reporting
Suggested Actions Potential benefits
Strategy and policy aligned to
corporate objectives
Lead to decisions that are
more long term
Potential additional business
opportunities from ‘greener’
products and services
More informed internal and
external stakeholders
Greater awareness of efforts in
sustainability from customers
and suppliers
Employees more aware and
engaged in energy efficiency
and management
Incentivised employees to help
drive and sustain energy
savings
Cost savings potential from
higher energy efficiency
Examples
Notes: RWE info from CDP reports. Senoko initiative extracted from
Accenture-NEA survey on energy management
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3. Comprehensive measurement through information systems underpin Enterprise Energy Management
Streamlined data collection that
can save time and less effort
intensive
Real time/ timely data capture
Largely automated data
collection saving time and
reducing risks of errors
Valuable insights being
generated to drive energy and
carbon performance
Real-time data analysis
Visualise energy profile to help
identify opportunities
Tracking of performance
against key indicators
Analytics and database of
energy improvement ideas
Quick and accurate submission
to ECA and other sustainability
reporting requirements
Auto generated output Audit
trails of data
Automated data checks for
completeness and accuracy
Energy Management
Information System:
Establish required data points
and indicators
Invest in better measurement,
analysis and information
systems with the capabilities
to automatically capture and
analyse energy and carbon
related data
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Suggested Actions Potential benefits Examples
Energy Management System Software
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Content
Conclusion and Q&A
What is Enterprise Energy Management (EEM) and why is it important?
What were the key findings from our survey?
What are some of the recommendations for companies going forward?
4
1
2
3
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Summary: Energy intensive companies in Singapore are
performing well in core aspects of energy management, but can
further improve people-centric aspects
• Energy management will become increasingly
important given rising energy costs and regulation
(such as the Energy Conservation Act)
• Incorporating an enterprise energy management
approach can help to further drive and sustain
energy efficiency
• Our survey shows that, in comparison to their
technological capabilities, most organizations are
relatively less mature in the ‘softer’ people-centric
aspects of energy management.
• These include organizational structures, roles and
responsibilities, rewards and incentives, skills and
training
• Going forward, companies can focus on these
areas internally as well as look to implement
energy management information systems to
provide the data and insights to create more
targeted energy management strategies and
interventions
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Find out more….
http://www.accenture.com/us-en/Pages/insight-driving-energy-transformation-singapore.aspx
Learn more at www.accenture.com/sustainability
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