Presenter’s Name

Presenter’s Title

Client Name/Location

Date

Energy EfficiencyConsulting Competencies & Capabilities

2

Business Case for Energy Efficiency

Energy Efficiency Practice

DuPont Energy Efficiency Track Record

References

Agenda

3

External drivers Volatility, magnitude and escalation of energy costs are

increasing the urgency to drive improvements in energy efficiency.

Governments and global institutions are introducing new energy management regulations and policies, pressuring companies & societies to re-think energy consumption.

Companies are expected to publish energy improvement goals and are being held accountable for delivering results.

Energy efficiency is being used as a powerful strategy to lower the cost of goods and attract customers at every level.

1. Volatility of resource costs

2. Public policy

4. Public accountability

5. Competition

The Investment community is increasing the weight of a company’s energy efficiency commitments and capabilities when making investment choices.

3. Access to capital

External Drivers are pressuring companies to improve Energy Efficiency

Rising energy prices are focusing great attention to more efficient use of resources

1. Volatility of resource costs

SLS › Sustainable Operations › EE › DuPont Resume › Business Case

Forecasted energy prices will encourage industries to:

Invest in development of new technologies that are less energy intensive and improve productivity

Increase the demand for sustainable energy sources that generate less GHG emissions

Promote efficient use of fossil fuel energy sources

*Nominal oil price – the higher projected oil price.**% consumption as reported by EIA in the 2011 Energy Outlook early releaseSource: International Energy Agency (IEA) – World Energy Outlook 2010; U.S. Energy Information Administration (EIA) website

"The high oil prices will encourage us all to focus on renewable energy. We will have to push harder."

Krairit Nilkuha, director-general of the U.S. Alternative Energy Development and Efficiency Department (Jan 2011)

World Crude Oil Prices, 1980-2035

$51

$125

$200*

Natural Gas Prices, (1990 -2035)

Many countries are developing and implementing policies to promote efficient use of energy sources and reduction of energy-related carbon emissions

2. Public Policy

SLS › Sustainable Operations › EE › DuPont Resume › Business Case

Country/Region Policy Detail

United StatesNew Corporate Average Fuel Economy (CAFE) Standards

Sales-weighted fuel economy for light-duty vehicles capped at 39mpg in 2016, 35.5 mpg for cars.

China Golden Sun ProgrammeSubsidies 50% of investment cost for on-grid solar-power projects (over 500MW) and 70% for off-grid projects, 2009-2011.

Feed-in tariff for wind power plantFour categories of on-grid tariffs for new wind projects, based on regions of varying wind conditions.

Nuclear programme Planned expansion of nuclear capacity to 2020.

European Union 20-20-20 Package

Cap on overall greenhouse-gas emissions of 20% below 1990 levels by 2020. National renewable energy targets for emission reductions and to reduce energy imports. Include a minimum 10% share for alternative fuels in gasoline and diesel by 2020. Revised guidelines on state aid for environmental protection to support development and safe use of carbon capture and storage (CCS).

JapanPhotovoltaic (PV) subsidy and feed-in tariff for households

Subsidy: JPY 70 000/kW with a total budget of JPY 20 billion (April 2009 to january 2010). Feed-in tariff: surplus electricity to be purchased by electric utilities at twice retail price (JPY 48/KWh).

Example Policies

Sources: International Energy Agency (www.iea.com) , World Energy Outlook 2009

The number of Fortune Global 250 companies publishing Sustainability reports has been increasing in the last 15 years

GRI: Global Reporting InitiativeGRI: Global Reporting Initiative

4. Public Accountability

SLS › Sustainable Operations › EE › DuPont Resume › Business Case

Percentage of Fortune Global 250 publishing a Sustainability Report

0%

20%

40%

60%

80%

100%

1998 2001 2004 2008

GRI – G11999

GRI – G22002

GRI – G32006

GRI: Global Reporting Initiative

Example energy performance reported in sustainability reportExample energy performance reported in sustainability report

Chevron website, Chevron Corporate Responsibility Report 2009Chevron website, Chevron Corporate Responsibility Report 2009

Many of these companies include energy goals and performance in their

sustainability reports

As energy is becoming more expensive, companies are strategically focusing on its efficient use as a way to gain competitive advantage

5. Competition

SLS › Sustainable Operations › EE › DuPont Resume › Business Case

0.00%

3.10%

16.30%

39.80%

40.80%

Not sure

Not at all

Somewhat

Very

Extremely

More than 80% of surveyed companies rated energy to be “extremely “ or “very” important to their business, making energy

an strategic factor to focus on to gain competitive advantage.

For much of the global economy, energy has become one of the strategic factors driving business decision-making.

Business and consumers are increasingly considering the energy efficiency of the products and services they buy and use. In Industrial production, companies are searching for the most energy-efficient process design solutions.

(…) these development are the results of economic and political facts: the long-term depletion of fossil fuels and public policy decisions to curb greenhouse gas emissions (GHG).

Thus, energy has become a key factor in gaining a competitive edge, and the relevant global markets are growing rapidly.

McKinsey & Company, Energy: A key competitive Advantage New sources of growth and productivity, April 2009.

Source: The Conference Board, Strategic Energy Management, 2004. Source: The Conference Board, Strategic Energy Management, 2004.

8

DuPont’s enterprise-wide management systems & cultural change approaches drive energy efficiency results

Identifying and elevating energy cost as a strategic business issueUnderstanding business implications of energy consumption and escalating costsUnderstanding implications of energy cost variability on portfolio profitabilityBenchmarking and quantifying the total opportunity value

Developing skills and capabilities of the people in the organizationBuilding collaborative teamsProviding enabling tools

Identifying and executing the right projects to drive highest gain resultsPrioritizing highest gain / lowest investment opportunitiesUtilizing leading methods for improvement opportunity execution (six sigma, lean, etc)Bringing deep technical expertise, in both energy systems & core processes

Implementing a vertically integrated management approach to drive resultsDriving leadership and management commitment to breakout performanceInstituting organizational structures and accountabilities to drive resultsDesigning and implementing managing processes to sustain results

9

Simplified Energy Cost Flow

Energy Input Energy Input

Core Manufacturing Process

Core Manufacturing Process

Energy SystemsEnergy Systems

Energy CultureEnergy Culture

Energy WasteEnergy Waste

• Energy Source Mix• Energy Pricing• Energy Source Mix• Energy Pricing

SourcingSourcing EfficiencyEfficiency • Energy cost is a function of pricing, consumption, GHG credits/options, and incentives

• Pricing is driven by market dynamics, but is negotiable

• Efficiency efforts are focused on minimizing waste

• Improvements to efficiency:

Core Technology, capital-driven

Energy System improvements, low capital/cost

Changing behaviors – minimal investment

10

Energy Planning Process Overview

Recognize the Energy Challenge

Recognize the Energy Challenge

Develop an Energy PlanDevelop an Energy Plan

Energy Goals

Workshop

Assess Process Energy use

Assess Process Energy use

Identify Opportunities

Identify Opportunities

Identify Opportunities

Identify Opportunities

Develop Capital Projects

Develop Capital Projects

Appropriate Capital FundsAppropriate

Capital Funds

Internal CapitalInternal Capital

External Funds(Performance Contracting)

External Funds(Performance Contracting)

Energy Plan Template

Plant Energy Assessment Template

Energy-related Six Sigma Projects Virtual

Workshops

“Top Ten” Energy Projects Initiative

1111

Business Case for Energy Efficiency

Competencies and Capabilities

DuPont Energy Efficiency Track Record

References

Agenda

1212

QualityQuality

EmissionsEmissions ResourcesResources

EnergyEnergy

ReliabilityReliability

MaintenanceMaintenance SafetySafety

People

Management

Culture

People

Management

Culture

Supply Chain

Supply Chain

Providing an effective energy management system that’s rooted in leadership enablement, clear organizational goals, effective staffing and training, and specific processes and actions

Integrating energy efficiency management into the strategy and execution of the ongoing business processes (capital, cost, resources, etc.)

Designing a practical and enduring energy management process to sustain and build on achieved goals – customized at each level of the organization

We help you achieve cost reductions and security of supply through efficiency and improved operating team capabilities

Energy EfficiencyEnergy Efficiency

13

Competitive Advantage Through Proactive Approaches

“We are uniquely able to combine knowledge, experience and technology to identify, capture, and deliver real and lasting energy savings across your portfolio of assets.”

Operational efficiency (inside out approach

prevailing)

Product innovation (outside in approach

prevailing)

Influence on Society and the competitive

landscape

Awareness and Compliance

Moving from discrete energy reduction initiatives to integrated energy management strategies that return significant cash.

Risk Mitigation Cost Reduction Competitive advantageRevenue generation

14

Corporate Approach to Strategic Issues

Recognize strategic value & drive from the top

Line accountability

Appropriate support resources

Integrated Management System

Consistent implementation approach across entire operations portfolio

Rigorous performance management

Prioritize no-capital & low-capital improvement

Energy Management System (EMS)

These elements, and the system for realizing them, form the best practice reference model against which we implement change

These elements, and the system for realizing them, form the best practice reference model against which we implement change

Strong Leadership Strong Leadership

Appropriate Organizational Structure

Appropriate Organizational Structure

Focused Processes and Actions

Integrated Energy

Management Culture

Integrated Energy

Management Culture

Engaged & Committed Leadership

Challenging Goals, Policies, & Principles

Metrics and Data-Driven Decisions

Integrated Energy Efficiency Organization

Responsible Line Organization

Timely Recognition of Success

Consistent & Targeted Business Planning Process

Commitment to Training & Development

Effective Communication System

Standard Improvement Methodology

1616

DuPont Sustainable Solutions helps clients achieve operational excellence

Transform your workplace culture, develop employee

skills, reduce incidents and injuries, which

improve operational efficiency and

sustain company growth.

Maximize returns, minimize waste and

reduce risks through

sustainability, energy efficiency and sustainable

assets management.

Empower employees with

critical training in safety, industrial

skills and ethics and compliance by

integrating eLearning tools,

instructor-led courses and

classroom training.

Safety ResourcesSafety ResourcesSustainable Sustainable OperationsOperations

Training SolutionsTraining Solutions

Cleaner air and cleaner fuels are the

result of best-in-class technologies,

equipment and services combined

with strong technical and engineering

capabilities.

Clean TechnologiesClean Technologies

Consulting Businesses & Offerings

1717

Business Case for Energy Efficiency

Competencies & Capabilities

DuPont Energy Efficiency Track Record

References

Agenda

18

DuPont

Founded in 1802

A Fortune Top 100 Science Company

Recognized for experience and success in operational excellence

Active Leader in environmental sustainability since 1989 – “Laggard to Leader”

19

DuPont Sustainable Solutions

Consulting, Technology, & Training Services:

DuPont Sustainable Solutions

• Global Safety Consultants Since 1998*

• Clean Technologies

• Training Solutions

• Sustainable Operations

– Environment, Energy, Sustainable Assets

Improve Performance, Release Capital…Increase Shareholder & Stakeholder ValueImprove Performance, Release Capital…Increase Shareholder & Stakeholder Value

*Has existed as a safety services business since the early 1970's. *Has existed as a safety services business since the early 1970's.

20

The DuPont Energy & Enviornmental Challenge

DuPont has addressed sustainability and energy reductions on a continuous basis since 1989

Our motivations:

Recognized energy cost as a significant part of our total operating cost

Experienced supply disruptions as costs were increasing rapidly

Energy efficiency would provide the greatest cost savings among global warming initiatives, but emissions would gain ground

Clearly viewed energy efficiency as a way to outperform competitors

Overall, the health and welfare of the organization and its product lines would be at risk if we didn’t act.

Overall, the health and welfare of the organization and its product lines would be at risk if we didn’t act.

21

* Sustainability accomplishments from 1990 through 2009 (per data available and used for the 2010 DuPont Global Reporting Initiative Report)

** TRI = toxic release inventory

* Sustainability accomplishments from 1990 through 2009 (per data available and used for the 2010 DuPont Global Reporting Initiative Report)

** TRI = toxic release inventory

DuPont Energy & Environmental Accomplishments

DuPont Global Environmental Performance Evolution (Absolute Values)

0%

20%

40%

60%

80%

100%

120%

140%

160%

Per

cen

t o

f 19

90 (

2004

fo

r w

ater

)

Production

Water

Hazardous Waste

Energy

CO2 eq.

1990 1995 2000 2005 2009

• 19% reduction in energy use since 1990 baseline while production increased by 21%

• Over $5 Billion in energy cost savings since 1990 baseline

• Gained industry recognition from “Laggard” to “Leader”

• With this knowledge and know-how, we have been able to accelerate progress and continue to raise the bar.

Other Sustainability Results since 1990: Safety & Health World-Class Major Incidents 90% ↓ Air Toxics 75% ↓ Air Carcinogens 92% ↓ Hazardous Waste (Dry) 42% ↓ U.S. TRI “Releases” 77% ↓

2222

Business Case for Energy Efficiency

Competencies & Capabilities

DuPont Energy Efficiency Track Record

References

Agenda

23

Example: Oil & Gas Client

Goal:10% Energy Reduction by 2015

Objectives:Leadership commitment and cultural change that leads to a sustainable corporate best practice Energy Management process

Performance management process and the metrics necessary for managing the activities and projects

Pilot of new Energy Management System at a Refinery

Estimated benefits from an Energy Efficiency Improvement Program

Without investment: 3 – 5%With Capex <1000K$ 8 – 12% With Capex >1000K$ 16 – 24%

World-Class Refineries consume ~25% less than average

Project Objectives Possible Results

24

Example: Oil & Gas Approach

Corporate & Site Assessment/SurveyCorporate & Site Assessment/Survey

Implementation Plan DevelopmentImplementation Plan Development

Management System & KPI DevelopmentManagement System & KPI Development

Corporate Rollout Plan DevelopmentCorporate Rollout Plan Development

Organizational Development & TrainingOrganizational Development & Training

Process Assessment & Continuous Improvement Plan

Process Assessment & Continuous Improvement Plan

Corporate Energy Management SystemCorporate Energy Management System

1/1/101/1/10 6/1/106/1/10 11/1/1111/1/11

25

Example: Oil & Gas Approach

1/1/101/1/10 6/1/106/1/10 11/1/1111/1/11

Corporate Energy Management SystemCorporate Energy Management System

Energy Culture SurveyEnergy Culture Survey

Technical ReviewTechnical Review

Management System Technical AssessmentManagement System Technical Assessment

Leadership AlignmentLeadership Alignment

KPI DevelopmentKPI Development

Site PilotSite Pilot

Solution DesignSolution Design

Over $1.5 MM in direct benefit in less than 1 year

Corporate system designed for sustainability

Process, energy system, and culture opportunities identified and implemented

Corporate & Site Assessment/SurveyCorporate & Site Assessment/Survey

Implementation Plan DevelopmentImplementation Plan Development

Management System & KPI DevelopmentManagement System & KPI Development

Corporate Rollout Plan DevelopmentCorporate Rollout Plan Development

Organizational Development & TrainingOrganizational Development & Training

Process Assessment & Continuous Improvement PlanProcess Assessment & Continuous Improvement Plan

2626

Shared Vision

Escalating costs

Supply limits

Environmental impacts

Stakeholder expectations

Goals and Strategy

Increased production

Shareholder value growth

Significant footprint benefits

Rapid savings opportunities

Leadership

Organization and Structure

Processes and Actions

Are you ready to build a business case for energy?

Burning Platform

First Practical Steps

27

Success depends on an ability to create and execute the business case for energy efficiency

• Identifying and elevating energy costs as a strategic business issue

• Developing skills and capabilities of people across the organization

• Identifying and executing the right projects to drive highest gains

• Implementing an enterprise-wide management approach to drive results

Enterprise-wide systems that combine knowledge, experience and technology to identify, capture, and deliver real and lasting energy savings across your

portfolio.”

Enterprise-wide systems that combine knowledge, experience and technology to identify, capture, and deliver real and lasting energy savings across your

portfolio.”

Speaker’s Name

Speaker’s Title

E-mail Address