Climate change mitigation is one of the major challenges facing the international community today; the approach adopted by CNH Industrial focuses on limiting energy consumption and the use of fossil fuels, which are responsible for air pollution and, above all, CO2 emissions.
Managing greenhouse gas emissions and optimizing energy consumption are activities that CNH Industrial must embrace to ensure the continuous improvement of its performance and the protection of the local environment in which it operates.
As evidenced by the materiality analysis, the management of energy and air emissions are crucial aspects for CNH Industrial and for its stakeholders. The reasons for this can be sought in the nature and extent of their environmental and economic impact, as well as in the increasing importance the international community places on these issues, closely linked to global warming. In addition, the political, technological and economic implications draw attention to these issues, both in terms of sustainable procurement and impact mitigation.
As stated by the energy policy that forms the framework of every plant’s management system, CNH Industrial is committed to reducing the use of fossil fuels in favor of renewable energy sources, energy consumption through more efficient products and processes, and greenhouse gas emissions, not only by cutting energy consumption, but also by adopting innovative technical solutions.
The 2009-2014 Energy Action Plan defines the short and medium term targets for the main actions affecting energy performance, CO2 emissions, renewable energy, and emissions trading. These targets are incorporated in the Sustainability Plan (see also pages 118-119) and reflect CNH Industrial’s voluntary commitment to improving its daily energy performance across all areas of production.
The improvement process is supported by a consolidated energy management system and by the adoption of World Class Manufacturing standards. Both methodologies are applied at every plant to set standards, define energy targets, and carry out evaluation and monitoring processes. Furthermore, the systematic approach of management systems allows continuously monitoring that results achieved are accurately evaluated against stated targets, and subsequently shared through proper communication channels.
In 2013, a total of 7.6% of CNH Industrial’s energy spending was invested in improving energy performance, leading to a reduction in energy consumption of over 194 thousand GJ, equal to 12,437 tons of CO2 emissions saved .
THE GREEN PLANT IN RORTHAIS
In 2013, a feasibility study was carried out for the conversion of the plant in Rorthais (France) into a green building, aiming at reducing its environmental impact by lowering energy consumption and subsequent greenhouse gas emissions, and at training plant personnel on how to save energy.
A plant is defined as green according to a methodology that identifies four key factors: independent energy generation, energy recovery, energy efficiency of the building, and energy efficient technologies.
A preliminary audit enabled the definition of a plant energy profile and the identification of potential areas for improvement, providing a clear picture of the key initiatives to implement, both from a technological point of view and with regards to the incentives available. Solutions put forward for the conversion into a green plant included the construction of a wind turbine, a solar heating system, a heat pump, a Canadian well1, an electric vehicle charging station, building insulation using organic coating, LED neon lighting, and rainwater harvesting. The inclusion of several hives in the green spaces surrounding the plant, together with a project for the production of honey, and the installation of outdoor tables and benches ensure that environmental concerns remain a priority.
(1) Geothermal system, known as a surface system, serving primarily as a natural air conditioner.
RESPONSIBILITY AND ORGANIZATION
The Group Executive Council (GEC) has the highest responsibility for initiatives related to energy efficiency and the management of CO2 emissions at CNH Industrial.
In 2013, specific targets for environmental impact reduction were incorporated in the Performance and Leadership Management programs (see also page 46) of most of the managers of the projects included in the Sustainability Plan: specifically, the targets for energy managers and plant managers were linked to energy efficiency and CO2 emissions reduction.
At CNH Industrial, a dedicated internal structure is in place to oversee issues related to the conservation of energy resources and to the fight against climate change. Indeed, there is a department responsible for energy management activities, both centrally, through the Manufacturing Engineering Council (MEC) and the Industrial Energy Management Committee, and at plant level.
Activities are coordinated by the Industrial Energy Management committee, consisting of the energy managers of individual segments; this interfaces, on the one hand, with the MEC and the Sustainability Unit and, on the other, directly with the plants. Based on the strategies defined by the GEC, the committee sets out CNH Industrial’s guidelines and objectives, together with the MEC, and the best strategies for achieving them; it also oversees the progress of the Energy Action Plan through constant monitoring. A dedicated IT platform allows energy managers to share data reports and energy performance results at all times.
The overall energy management structure is based on a professional team of 79 individuals, located at both corporate sites and plants.
ENERGY MANAGEMENT SYSTEM
The system developed and implemented by CNH Industrial aims at reducing the energy impact of processes and the risks associated with new legislation and rising energy costs.
In 2013, as evidence of its quest to reduce its energy impact, CNH Industrial continued to pursue the certification of its manufacturing processes according to the ISO 50001:2011 standard.
The main advantage of the ISO 50001 certification is that it offers a systematic approach in the continuous improvement of energy performance; in other words, a more efficient and rational use of energy, which translates into economic benefits and fewer greenhouse gas emissions.
CNH Industrial’s energy management system was rolled out to 34 plants, which represent about 90% of energy consumption, achieving the certification of one plant more than the targets estimated for 2013.
ISO 50001 CERTIFIED PLANTS
CNH INDUSTRIAL WORLDWIDE
Specifically, the energy management system was extended to the plants in Piacenza and San Mauro Torinese (Italy), Burlington, New Holland and Wichita (USA), Contagem, Curitiba, Sete Lagoas and Sorocaba (Brazil), and Bourbon Lancy and Garchizy (France). CNH Industrial’s new target is to continue extending certifications to other plants during 2014, to achieve a coverage of 93% of energy consumption.
Voluntary compliance with the new ISO 50001 standard reflects CNH Industrial’s determination to manage the Company sustainably, as recognized globally by the results obtained in the Dow Jones Sustainability Index and the Carbon Disclosure Project (see also page 97).
Furthermore, in 2013, the reporting and monitoring of greenhouse gas (GHG) emissions continued through voluntary compliance with the Corporate Accounting and Reporting Standard of WBCSD and WRI (GHG Protocol) and ISO 14064 standards, covering 100% of CNH Industrial energy consumption.
For World Environment Day, CNH Industrial confirmed its commitment to fighting climate change by organizing an awareness-raising and training event on energy, the environment and safety. After the success of Iveco’s Energy Day in 2012, the event was revived this year and extended to include CNH Industrial’s Environment, Health and Safety experts from the EMEA Region. The workshop, organized by the Industrial Village in Turin (Italy), was an exchange of ideas and practices to make real contributions to energy saving, environmental protection and safety in the workplace. The event also hosted the award ceremony for 2012 Energy Challenge, launched by Iveco last year. The plants in Valladolid (Spain) and Vittorio Veneto (Italy) won the Zero Consumption Trophy and the Green Plant Trophy, respectively. The third prize (the Super Energy Trophy), for the best energy saving idea, went to the energy specialist from the Vysoke Myto plant (Czech Republic).
Finally, further demonstrating CNH Industrial’s commitment to combating climate change, an initiative is already planned to offset the 12 tons of CO2 generated by participants who traveled to the workshop venue. It will provide for the protection of a 2,300 m2 area of growing rainforest in Costa Rica, under the Zero Impact® program with the backing of LifeGate. Furthermore, each participant has also become the safekeeper of 50 m2 of Brazilian rainforest.
SHARING AND AWARENESS ACTIVITIES
The ongoing promotion of staff involvement and awareness on the importance of energy resource conservation is key to reaching improvement targets. Thanks to a well-established system for collecting suggestions, typical of the World Class Manufacturing methodology, employees can directly contribute to process optimization.
The WCM system also allows best practices to be standardized and disseminated across plants, ensuring the kind of synergy that is crucial for the development and continuous improvement of any global company.
In 2013, 5,932 hours of training were provided to 9,945 people, three times the figures of 2012 owing to a significant expansion of the energy management system. Indeed, training courses mainly focused on the distinctive features of the system, compliant to the ISO 50001 standard, and on the proper monitoring and management of energy performance. One of the most important training events, the EHS & Energy Days, took place on the 5 and 6 June in Turin (see box above). In addition, an energy conservation awareness campaign, inspired by the M’illumino di Meno initiative, was launched in February 2013 with the creation on the corporate intranet of specific interactive energy pills, accessible to all CNH Industrial employees, providing tips on how to save energy in the office through the responsible use of lighting, elevators, and climate control all year round.