Johnson Controls, a global multi-industrial company with established core businesses in the automotive and building industries, commits to implement a supplier efficiency program with 60 of its SME suppliers over the next three years. The commitment also includes additional manufacturing partners that will implement similar programs with at least 30 of their SME suppliers over the next three years. American Council for an Energy-Efficient Economy (ACEEE) commits to provide overall coordination of the commitment including recruiting manufacturing partners, aggregating program results and reporting progress to CGI.
This commitment scales up and replicates a pilot project where Johnson Controls energy champions visit SME suppliers plants and train their in-house teams on low-cost/no-cost energy efficiency best practices. The energy champions provide training in energy management basics, lead on-site assessments, share efficiency checklists and tools, and provide guidance on developing business cases for capital improvement projects. The on-site assessments follow an industry-standard practice known as energy hunts, which has been used successfully by major manufacturers for many years.
Many major manufacturers have significant expertise in energy management and successful track records in energy efficiency improvement. These manufacturing partners will commit to providing at least one day of training and an on-site assessment based on best practices.
In order to participate, suppliers agree to provide basic information about the plant and current energy use, make key personnel available for a one day on-site training and site-assessment, implement one or more of the low-/no-cost improvements identified during the on-site assessment, and provide written verification of project completion.
The commitment includes the Institute for Industrial Productivity (IIP) and the U.S. Department of Energy (DOE) which will share best practices, tools, and expertise while recruiting manufacturing partners. The World Resources Institute (WRI) will also help recruit manufacturers and their SME suppliers. The Natural Resources Defense Council (NRDC) will serve as an advisor in the area of supply chain efficiency programs and supporting policies.
June 2015 - Commitment announcement at CGI America
July 2015 - Preparation of grant requests for NGO participants (ACEEE)
August 2015 - Program announcement at Summer Study on Energy Efficiency in Industry (ACEEE)
September 2015 - Recruiting of initial manufacturing partners (ACEEE, IIP, US DOE, NRDC, WRI)
October 2015 - Program kick-off webinar with current/prospective manufacturing partner organizations
Quarterly - Updates provided by manufacturing partner organizations on supplier engagement
Quarterly - Updates from NGO and government partners on recruiting and support activities
Annually - Updates from manufacturing partners on status, lessons learned, and commitment expansion
Annually - Updates on additional manufacturing partners making commitments
Annually - Updates to CGI on program status, aggregated results, and lessons learned
ACEEE will seek foundation grants or gifts in order to coordinate commitment partnerships, activities, and reporting requirements.
IIP, NRDC, WRI, and other potential NGO partners rely on grants and gifts to support their program activities. Support from foundations and other organizations interested in improving energy and resource efficiency in buildings, plants, and across supply chains would accelerate the scaling of this program and bring additional technical resources to participating SME suppliers.
Prospective manufacturing partners will be offered details of the Supplier Efficiency Program (via US DOE Better Plants Challenge public website) and access to knowledge, tools, and resources from participating NGO and government partners. There will also likely be opportunities for partner and supplier recognition through CGI, NGOs, and other supporting organizations at meetings, events, newsletters, and social media.