Energy conservation for sustainable growth

05 Mar, 2009

ICI Pakistan Limited was set up as a public limited company in Pakistan having an established presence in this part of the world since before partition. We are one of the leading multinationals in Pakistan and we have played a key role in promoting a culture of responsible care for our employees, contractors and the communities in which we operate.
In line with these corporate responsibilities, we have played a part in effective use of natural resources and sustainable development needs. In January 2008, the acquisition of ICI Plc by AkzoNobel was officially completed & the two companies became one.
AkzoNobel has the distinction of being a Fortune 500 company, a Chemicals Industry leader on the Dow Jones Sustainability Indexes as well as being included on the FTSE4Good Index. Our Group in Pakistan has 6 businesses ranging from commodity plants to specialty manufacturing businesses.
Manufacturing processes are energy intensive thus a significant contributor to generation of Green house Gases. Energy reduction has been actively focused in ICI Pakistan from the view point of economic growth without environmental degradation thus fulfilling our Corporate Social responsibility.
As a company we have been focused on effective utilisation of natural resources. We haves demonstrated our commitment to sustainable development through year on year improvements demonstrated in these areas.
Operational excellence is a part of manufacturing, focus and review of energy consumption patterns is an on-going activity. In line with this, plans were prepared as sustainability targets and termed Challenge - 2010 sustainability targets, comprising of a 5-year window in which to achieve the required results. Hence targets were set in 2005, giving a period of 5 years to achieve them through detailed reduction plans developed.
REDUCTION IN ENERGY CONSUMPTION HAS TWO MAIN GOALS, LINKED TO:
(a) Environmental Impact; Reduction in energy consumption directly links into reduction of green house gases and CO2 emissions
(b) Economic Aspect; Energy related costs comprise almost 40% of the total manufacturing costs. Any reduction in this area, significantly impacts cost of manufacturing, thus improving competitive advantage through value to customers
THE FOLLOWING PLANNED METHODOLOGY WAS ADOPTED:
-- Measure and monitor major energy consumers
-- Carry out energy audits to evaluate the performance of inefficient equipment and provide alternate solutions for improvement.
-- Identify opportunities to reduce energy by modification in operational methods.
-- Prepare year on year capital investments plans that directly impact energy efficiency The goal was to reduce "Energy" and "Energy associate CO2" by 5%.
THERE WERE DIFFERENT PHASES OF IMPLEMENTATION AS IDENTIFIED BELOW:
-- Team comprising of personnel from Technical, Engineering & HSE professionals was formed to review the energy performance and identify improvement areas.
-- Brain storming sessions were held to identify solutions to the problem either through minor adjustments in operation or replacement of inefficient equipment.
-- Cross functional teams were also established with the overall responsibility to assist the business with implementation of the improvement ideas and prepare financial feasibilities where capital projects were identified.
-- A program to improving awareness of our staff was initiated and focused to increase their buy-in, involvement and awareness on a matter of such importance.
ACHIEVEMENTS AND CHALLENGES:
BENEFITS AND ACHIEVEMENTS OF THIS INITIATIVE ARE AS UNDER:
-- Reduction in Energy consumption
-- Reduction of Energy related CO2.
-- Reduction in Green house gases
The following tables highlight the percentage improvements, year on year, we have managed to achieve so far. In a globalizing and increasingly competitive world, sustainability related risk exposure and business opportunities vary widely between and within sectors.
It is about how we manage key Environmental, Social and Governance risks, how our businesses create sustainable value, how we include sustainability in our business processes and how we use this as a competitive advantage to accelerate growth.
Energy conservation and focus on climate change has to be a top lead process with a clear policy, management commitment and strong management systems in place. It is vital to include this in an organisations operation model to ensure that it is steered properly and given due weight age.
Improving Sustainability and efficiency is a challenge in relatively older plants as equipment and technology up grades t are, of course, cost intensive options. For our plants, in Pakistan, as well, equipment upgrade is always a decision that requires proper financial analysis.
There have been instances where financial paybacks, alone, made the decisions doubtful, but with a clear understanding of the Company's commitment to environmental sustainability these projects were provided the necessary investment and support in order to deliver the required reductions in green house gases & energy conservation.

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