ISO 50001 Energy Management System

Case Study
Global

3M Case Study Snapshot

Energy as a 3M competitive advantage Industry Manufacturing

Product/Service Multiple

Location 30 sites in 7
countries

Energy management system Energy Management

System (ISO 50001)
and Superior Energy
Performance (ISO
50021)

Energy performance 3 years (2016-2018)

improvement period

Energy Performance 4.5%

Improvement (%)
3M Science. Applied to Life. over improvement period

Total energy cost savings 13,500,000 USD

Organization Profile & Business Case over improvement period
Since 3M’s founding in 1902, the company has expanded
Cost to implement EnMS 2,000,000 USD
from a small-scale mining venture to a global
manufacturing powerhouse with over 90,000 employees Total Energy Savings 1,960,700 GJ
operating in 71 countries. 3M provides 55,000 unique over improvement period
products found in every household, business, and
industry across 200+ countries. Total CO2-e emission 330,000 tCO2
reduction
3M is both a global leader in environmental stewardship, over improvement period
driving energy and climate sustainability efforts through
a holistic approach, ensuring every life is improved. From
establishing the Corporate Energy Management customers are confident that they are also reducing their
Department in 1973, in addition to over 40 years of carbon footprint.
setting sustainability targets, energy has always played a ISO 50001/SEP for 3M – Our journey with ISO 50001
big part in our sustainable actions. The Energy Policy began as a pilot venture with the joint support of the
developed in 1991 incorporates energy conservation into Department of Energy (US) and Natural Resources
our business practices. As a result of this effort, we Canada in 2011. 3M presented themselves, selecting one
continue to lower operational costs, reduce our carbon plant from each country: 3M Cordova in Illinois, US and
footprint, increase the reliability of our energy supply, 3M Brockville in Ontario, Canada. Growing from 2 sites in
and strengthen our brand image. Starting in 2019, our the pilot, we now have 30 sites globally that are ISO
sustainability goals extend to integrating a Sustainability 50001 certified; 14 of which have taken the additional
Value Commitment into all our new products so that our step to achieve SEP certification (see Figure 1).

1
 Global Energy Management System Implementation: Case Study

Global

effective. For our first certification, it took 18 months

for implementation whereas now, it takes us 6 months.
At any point, we were not acquiring any additional
resources.

Implementing costs are estimated to be $63,000 USD per

Figure 1: SEP certification by country and levels, and the certification site on average. Generally, $30,000 USD would be spent
and accreditation bodies. towards the certification itself and the remaining will be
towards internal staff, and metering and monitoring.
In 2014, 3M developed the new company sustainability
Recertification occurs every 3 years from initial
goals in accordance with the United Nations
certification and only requires an external audit. The
Development Goals. There are 15 goals categorized
enterprise-wide certification yielded in up to 77%
under Raw Materials, Water, Climate & Energy, Health &
reduced spending for 3rd party auditing and certification.
Safety, and Education & Development. Every year, we
publish an annual sustainability report that celebrates Other Benefits – The EnMS system also provides benefits
our progress and successes towards each of the goals. that extend beyond monetary gain. As stated within
3M’s Energy Policy, all employees are encouraged to take
part in continuous energy improvement activities. ISO
50001 and SEP provides a structured platform to make
this possible. Additionally, our customers value and
commend our commitment to sustainability, improving
customer satisfaction and brand image.

Figure 2: Corporate Sustainability Goals for Climate and Energy

Our corporate energy target is derived from the Climate

& Energy sustainability goals (Figure 2); to improve
energy performance by 3% annually from our 2015
baseline and applies to each global facility.

“Implementing ISO 50001 and Superior

Energy Performance has provided measurable
results and raised the visibility of the energy
program at 3M.” Figure 3: Enterprise Models for ISO 50001 (total 30 sites certified).
— Steve Schultz, Corporate Energy Manager, 3M
Enterprise Advantage – Our focus is to develop a global
enterprise model for 3M in the future. Currently, there
Business Benefits are three ISO 50001/SEP enterprise models: 3M Canada,
With the 30 certified sites combined, we have improved 3M (US) and 3M Germany (Figure 3). We are in the works
our energy performance by 4.5% during the of establishing a North-American enterprise-model that
improvement period of 2016 to 2018. includes the US, Canada and Mexico. 11 additional sites
are to be certified next, including 3M Center
Cost Estimate – Through learned experiences and
headquarters and 6 other US sites, 3M Canada
adopted metering technologies, the implementation
headquarters, 2 sites in Singapore, and one plant in
process for the EnMS has been quicker and more cost
Mexico. With the US sites, we will be utilizing the DOE

2
 Global Energy Management System Implementation: Case Study

Global

tool, 50001 Ready as well as utility company incentives Once there are identified projects and opportunities for
to prepare for the ISO 50001 certification audits. improvement in our energy hopper, we evaluate for
feasibility. A project selection scorecard that assesses
The benefits of our enterprise-model are clear to us:
costs, energy impact, safety and risks, is used to justify
 Commitment from Senior-Executive Management projects. Projects must score 25 of the available 42
 Centralized system for common documents points. Resources for implementation upon selection are
 Conduct external audits for sampled sites only allocated by local facilities. Local utilities and other
 Knowledge shared effectively amongst sites incentive programs reduces the simple payback period
(reduced cost, time and resources) for the facility. Should the energy-related project meet
 Common energy efficiency guidelines for design the cost-benefit requirements of the Corporate
and procurement Sustainability Fund, 3M is able to provide additional
support and resources.

Plan From the beginnings of energy management, three

things have stayed true to help us achieve our targets:
In early 2000, an energy management system modelled
by Georgia Institute of Technology was deployed across 1. Metering and targeting allows energy to be
3M sites around the globe. The model included a visible, provides real-time energy information
dedicated corporate energy team coordinating with local for operating personnel, and pinpoints the
energy champions at each facility. Together, they areas to focus on.
provided awareness training, reward programs, and 2. Upgrading to energy-efficient technologies for
resources for energy-saving projects, instilling an energy- equipment and processes gives an inherent
conscious culture at 3M. At the end of the year, facilities advantage in saving energy.
who have met the corporate goals would be recognized 3. People are the catalysts to making progress in
with a 3M Global Energy Award. The existing structures energy. Our employees who are aware of the
became the backbone for ISO 50001 and instituted a rigid energy use around them are motivated to act.
energy management system recognized internationally.
“International standards like ISO 50001
Establishing local cross-functional energy teams and provide a consistent best practice for designing,
third-party resources propelled the implementation implementing, measuring, and optimizing your
process. Metering and monitoring of energy energy management process..”
consumption was identified to be a lacking resource, —Andrew Hejnar, Energy Manger, 3M Canada
thus, meters for energy sources for each equipment
were added along with a human-machine interface Do, Check, Act
software program to view the live data. Metering data
identifies significant energy users, inefficient processes, Building channels for sharing information and maintain
and plant loads. This can be used to operational control, consistent communication ensures that we achieve our
optimization projects and equipment upgrades. For corporate sustainability goals. 3M has maintained equal
example, in one of our plants creating weekend or similar processes and systems for energy
shutdown checklists realized a reduction in energy use to management between all our sites.
5.7% of the peak load, translating to $264,000 USD of The Energy Teams – Forming a concrete structure to
energy cost savings for the first year. These impressive involve, top management, facility management, and all
numbers in energy savings within each plant fortified Top employees allowed us to coordinate implementation.
Management support for energy management. Figure 4 outlines the key teams involved.

3
 Global Energy Management System Implementation: Case Study

Global

3M reviews its Strategic Energy Management Plan ISO certifications. We institutionalize continual
annually to prioritize programs and meet global goals. improvement in energy management by scheduling
The plan uses input from stakeholders, including “checkpoints” for milestones reached. The EnMS is
executive management, manufacturing directors, plant evaluated during top management reviews, internal
managers, and employees. Goals of the plan include to audits, quarterly corporate reporting, and monthly team
continually improve results, leverage engineering meetings.
expertise and advances, drive facility-level efficiency
Projects and Actions – Most of our energy savings were
improvements, and maintain top management support.
achieved by performing studies and executing relevant
projects. Some examples include:

 Lighting retrofit upgrades to metal halide and high-

pressure sodium lights
 Compressor and HVAC equipment optimization
plan: upgraded existing infrastructure to energy-
efficient technologies
 Installing co-generation systems such as Combined
Heat & Power units (Canada, US, Poland)
 Improving the building envelope
 Improve utilization of energy in manufacturing
processes
 DC to AC motor conversions and drive upgrades
Figure 4: Hierarchical Representation of Energy Management Teams  Establishing sources for renewable energy (one of
the largest solar power systems in Singapore)
Energy Performance Derivation and Validation – 3M
measures energy performance utilizing three key factors: Operational Control – Documentation systems such as
measured energy use normalized for weather, Corrective Action/Preventative Action (CAPA), the EnMS
production and/or occupancy, energy savings from manual, SharePoint (common online platform), and
energy projects implemented, and the effectiveness of Standard Operating Procedures (SOP) and associated
the EnMS. These factors are included on the energy checklists that guide our energy program with
dashboard for each facility and are part of each facility’s continuous improvement in mind. We strive to induce
management review. engineering and administrative controls in addition to
energy projects. Examples include ensuring preventative
Our baseline year for energy modelling is 2015 with a maintenance is compliant for significant energy users
timeframe of 1 year. The current reporting period is from (equipment) and establishing 12hr, 24hr and 48hr
2016 to 2018. The modelling software tools provide a shutdown checklists for trained personnel.
top-down verification, while a bottom-up approach is to
tabulate savings through completion of action plans and Communication – Our sites utilize a plethora of avenues
projects. SEP Measurement and Verification Protocol to motivate employees, increase awareness and
and IPMVP international standard is used to ensure promote engagement. At each facility, there is an
performance has been improved. The effectiveness of employee suggestion system, on-site energy boards,
the EnMS is measured using an energy program informational cards held within badges, layered process
effectiveness survey completed annually by each facility audits, poster campaigns, energy improvement tags,
energy team and is substantiated through the supporting energy treasure hunts, comic-style quarterly energy
newsletters, annual Earth Day celebrations, energy fairs,

4
 Global Energy Management System Implementation: Case Study

Global

and lunch-n-learn activities. We provide energy and ISO

50001/SEP awareness training for new employees and
site visitors, and refresher training is available for
existing employees every two years. Furthermore, the
Corporate Energy Team provides online webinars,
quarterly newsletters, and energy dashboards to show Figure 6: Site Energy Data System (SEDS) is unique to 3M and stores
progress towards our corporate energy goals. energy data for each 3M location globally.

Procurement – Consideration for energy has been

integrated in our procurement and sourcing activities. Transparency
The revised sourcing standard stipulates that 3M is Our Energy Policy is proudly presented at the entrance of
committed to increasing energy and resource efficiency our buildings, alongside Quality, Health and Safety, and
in manufacturing and supply chain. For example, new Environmental policies. It is further communicated
equipment is required to have metering installed when during energy team meetings and training packages. As
energy use is expected to exceed thresholds outlined in well, our annual sustainability reports are publicly
Figure 5. It is also communicated to our suppliers – available online.
available for review on the 3M Supplier Direct website.
Our public presence is represented though the numerous
awards and organization we have participated in over
the year. The following have catalyzed our efforts:

 Dow Jones Sustainability Index – 3M selected for

inclusion for 19 consecutive years
 Energy Star – 10-time Partner of the Year Sustained
Figure 5: Threshold requirements for energy metering Excellence award from 2004-2014; Industrial
Challenge participant
Tools & Resources – It was of benefit to leverage existing  Carbon Disclosure Project – ranking A- in climate
corporate tools and resources; including legacy of change for 2016
corporate leadership in sustainability, Management of  DOE’s Better Buildings, Better Plants – Challenge
Change (MOC) processes, ISO 9001 and ISO 14001 Partner (met partner goals in 2015, established new
systems, and our corporate energy data and project goals)
databases. A global enterprise-wide SharePoint system  Pilot program for The Commission for Environmental
was developed to house the EnMS tools & resources, Cooperation (CEC) – in collaboration with Natural
providing easy access and document control. Each site Resources Canada, Canada Brockville PSD, US
utilizes the components of the system as needed to Cottage Grove & Mexico SLP sites participated as
part of Clean Energy Ministerial
integrate with existing procedures and practices, while
 Clean Energy Ministerial (CEM) – Insight Awards
meeting the requirements of the standard. The following
o 3M Global Energy Management (2017)
tools and databases have been key in the development
o National Award for 3M Canada (2016)
of our EnMS: Energy Review and Planning Tool (ERPT), o National Award for Korea (2016)
RETScreen Expert platform, Energy Performance  German Sustainability Award Foundation – Award
Indicator (EnPI) tool, Site Energy Data System (SEDS, for Resource Efficiency (2013), Sustainable Future
Figure 6), and Energy Cost Reduction Projects (ECRP). Strategy (2011)
 Shanghai Water Affairs Bureau – Water Saving
Enterprises (2017)

5
 Global Energy Management System Implementation: Case Study

Global

 International Energy Agency (IEA), Asia-Pacific resources through a dedicated Energy and
Economic Cooperation (APEC) Energy Workshops, Sustainability Fund
Singapore Manufacturing Federation (SMF) and  Limited priority for energy management – Top
Singapore National Environment Agency – guest management involvement ensured energy is
presentation from 3M to showcase energy considered during major business decisions
management success stories with our key accounts  Substantial gains were difficult to maintain –
 Association of Energy Engineers (AEE) – founding Metering & targeting technologies and practices put
member of AEE (1977); presented at multiple in place to track key performance indicators
conferences, reaching large audiences annually  Lack of granularity for metering and information
systems – 3M global standard revised to require
“The enterprise-wide approach has enabled us metering for projects above utility consumption
to learn from the other participating locations thresholds
and to leverage best practices. Implementation  Approach to energy management varied by facility
does take management commitment of - Enterprise-model allowed for unified approach
resources, but the payback in the end is well through standardizing the energy planning tool and
developing document templates
worth the effort.”
— Robin Higgs, 3M Manufacturing Director, Film and Material The evolution from a single-facility EnMS to an
Resources Division
enterprise-level ISO 50001 system has provided 3M a
valuable learning experience. In summary, our key
Lessons Learned success factors (Figure 7) have helped us not only
Overcoming obstacles during implementation furthered achieve our energy goals but to gain an exceptional level
the penetration of energy management into our business of expertise to lead the industry to a sustainable future.
practices. Prior to the implementation of the Energy
Management System (EnMS), the local energy
management teams faced many challenges. Once the
ISO 50001 and SEP standards were set, energy initiatives
were prioritized in a systematic way, while keeping
business practices in mind. Some of our obstacles and
the resolutions include:

 Limited by available capital – Energy planning

provided clear foresight on initiatives and helped
include projects within facility annual budget; top
management involvement secured corporate
Figure 7: Key success factors of ISO 50001 and SEP at 3M.

Through the Energy Management Working Group (EMWG), government officials worldwide share best practices and leverage their collective
knowledge and experience to create high-impact national programs that accelerate the use of energy management systems in industry and
commercial buildings. The EMWG was launched in 2010 by the Clean Energy Ministerial (CEM) and International Partnership for Energy Efficiency
Cooperation (IPEEC).

For more information, please visit www.cleanenergyministerial.org/energymanagement.