Energy Performance

energy consumptionAn efficient energy management system depends on monitoring energy performance effectively, by means of specific Energy Performance Indicators (EnPI).

These indicators allow CNH Industrial to measure the benefits and effectiveness of initiatives, to plan improvement measures, and to establish new and ever-more challenging targets. Energy performance and compliance with the Action Plan continued to be monitored at basic level via the Energy Monitoring & Targeting (EMT) management and control platform at all CNH Industrial plants. The platform is expected to be enhanced at every plant in order to achieve, by 2018, a higher level of monitoring of both primary energy vectors, purchased directly from external suppliers, and secondary energy vectors, transformed and distributed within manufacturing processes.

In addition to carefully monitoring energy performance, the exchange and dialogue between plants was enhanced via an Intranet portal focusing on procedures, best practices, regulations, Corporate guidelines, and solutions to energy-related issues and challenges.

The initiative led to the identification and implementation of 153 technical and management improvement projects, and to an increased level of people engagement and awareness. The methods used to monitor the savings generated by projects were standardized mainly according to the International Performance Measurement and Verification Protocol (IPMVP), volume 1 (January 2012).

In 2014, CNH Industrial implemented several short to medium-term initiatives focusing on the redesigning of processes, equipment conversion and retrofitting, operational changes to new installations, and increased employee awareness. In particular, these initiatives led to the:

  • realization of systems for the recovery of heat from exhaust fumes and air compressors 
  • adoption of monolayer coating systems, which reduce the number of processes required to paint components, thus saving energy
  • realization of high-efficiency lighting systems (e.g., using LED technology), associated with dimmers and occupancy or light sensors, in production areas, offices, and outdoors 
  • installation of high-efficiency motors, inverters for electric motors, and variable speed compressors for the production of compressed air
  • replacement of electric boilers with heat pump systems 
  • increased use of machinery shutdown when idle 
  • installation of thermal solar systems for the production of sanitary hot water from renewable sources 
  • identification and repair of compressed air leaks 
  • insulation of buildings 
  • adoption of the CROV pneumatic transformer across the Powertrain segment 
  • use of radiant panels to optimize the heating of larger buildings.

 

IMPROVEMENT PROJECTS IN DETAIL

 Projects
(no.)
Total energy reduction
(GJ/year)
Economic annual benefit
(%)
Conversion and retrofitting of equipment 44 130,829 46.6%
Installation of new equipment 68 102,363 31.5%
Process redesign 18 31,834 10.6%
Operational changes 22 21,083 6.2%
Other 1 20,500 5.1%
Total 153 306,609 100%

THE GREEN PLANT IN RORTHAIS
In 2014, following the feasibility study carried out in 2013, the Rorthais plant (France) began to work toward becoming a Green Plant, Usine Verte.
The plant aims at limiting its environmental impact by reducing energy consumption, and therefore GHG emissions; it is pursuing this goal by appealing to plant employees’ sense of responsibility in using energy wisely and correctly.
The first phase of the project, implemented in 2014, led to the realization of a thermal solar system, a pellet heating system, and a charging station for electric vehicles, and to the use of LED neon lights. To further benefit the surrounding environment, the plant also introduced beehives in the nearby green areas for honey production, as well as benches and tables for outdoor use. During the year, the Poitou-Charentes region awarded the Rorthais plant for its commitment and communication efforts regarding sustainable development. The plant was also ISO 50001-certified for its energy management system.

Direct and indirect energy consumption by source, and associated CO2 emissions, continued to be reported throughout 2014. Furthermore, for each source, a distinction was made between renewable and non-renewable energy. CO2 emissions were calculated according to GHG Protocol standards, incorporated in Company guidelines, while the indirect emissions associated with energy production emission factors were calculated as per the standards published in November 2014 by the International Energy Agency.

At CNH Industrial, the sources of greenhouse gas emissions, besides those deriving from energy consumption, are associated with the use of HFC compounds with global warming potential (GWP) present in air-conditioning, cooling, fire suppression, aerosol (e.g., propellants), and manufacturing equipment. The potential emissions from these substances (CO2 eq) are negligible compared with emissions from energy production: in fact, with an incidence of less than 0.5%, they fall outside the reporting scope4.

ENERGY CONSUMPTION

energy consumptionIn 2014, CNH Industrial reported a total energy consumption5 of 7,074 TJ, a reduction of approximately 14% over the previous year, partly due to an average 4% decrease in hours of production. This reflects the Company’s commitment and responsiveness to these issues, as evidenced by the positive contribution of efficiency initiatives implemented.

Regarding energy performance, measured as the Company’s total internal energy consumption divided by hours of production/units produced6, CNH Industrial concluded 2014, and the relevant 2009-2014 Energy Plan, with highly satisfactory results, outperforming the targets set for every business segment (see also page 38). Such results were made possible by the effective synergy between the energy management and WCM systems adopted, the benefits of favorable seasonal temperatures in some Regions, and the implementation of energy efficiency projects. As a result, fixed energy consumption has dropped and energy itself is being used and managed more rationally.

CNH Industrial has set new targets within the scope of the new Energy Action Plan, in line with the objectives of the new Business Plan. 2014 is considered the base year and baseline. Efforts were made to define a single global indicator enabling the measurement of CNH Industrial’s overall energy performance. The targets for each business segment (which contribute to the global target) will be monitored internally.

The new overall target set for 2018 aims at a 6.5% reduction in energy consumption per hour of production compared to 20147.

(4) Details on the reporting scope are available in the chapter on Report Parameters (see also pages 236-237).
(5) Types of energy included: electricity, heat, steam, cooling, natural gas, metallurgical coal, diesel, and other fuels.
(6) Performance refers to hours of production for Agricultural Equipment, Construction Equipment, and Commercial Vehicles, and to units produced for Powertrain.
(7) For the definition of hour of production, see page 240.

TOTAL ENERGY CONSUMPTION

Non-renewable sources20142013a2012
Plants 54 54 59
Direct energy consumption                                                                                                                                                             
Natural gas 3,089,485 3,662,770 3,468,732
Coal 201,292 225,854 195,905
Diesel 60,110 68,237 65,242
Liquefied petroleum gas (LPG) 106,547 121,039 85,083
Other (HS and LS fuel oil) - - 7,135
Total 3,457,434 4,077,900 3,822,097
Indirect energy consumption                                                                                                                                                          
Electricity 1,485,087 1,839,070 1,932,457
Thermal energy 578,090 854,693 860,121
Other energy sources 125,202 112,804 104,991
Total 2,188,379 2,806,567 2,897,569
Total energy consumption from non-renewable sources 5,645,813 6,884,467 6,719,666

(a) 2013 data restated with respect to the 2013 Sustainability Report.

Renewable sources201420132012
Plants 54 54 59
Direct energy consumption                                                                                                                                                             
Biomass 19,762 36,396 61,032
Solar-thermal 349 275 100
Total 20,111 36,671 61,132
Indirect energy consumption                                                                                                                                                          
Electricity 1,342,755 1,194,778  
Thermal energy 56,325 94,087 73,547
Other energy sources 9,538 - -
Total 1,408,618 1,288,865 1,059,241
Total energy consumption from renewable sources 1,428,729 1,325,536 1,120,373
 Total energy consumption 7,074,542 8,210,003 7,840,039

ENERGY CONSUMPTION BY ENERGY TYPE

 20142013a2012
Plants 54 54 59
Electricityb 2,927,191 3,057,405 2,937,193
Heat 634,765 949,055 933,768
Steamc - - -
Cooling coal 35,390 89,247 85,949
Natural gas 3,089,485 3,662,770 3,468,733
Other energy sources 387,711 451,526 414,396
Total energy consumption 7,074,542 8,210,003 7,840,039

(a) 2013 data restated with respect to the 2013 Sustainability Report.
(b) Electricity also includes compressed air.
(c) Steam is included in heat.

ENERGY CONSUMPTION BY SOURCE

ENERGY CONSUMPTION BY SOURCE

TOTAL ENERGY CONSUMPTION FROM RENEWABLE SOURCES

TOTAL ENERGY CONSUMPTION FROM RENEWABLE SOURCES

ENERGY CONSUMPTION PER PRODUCTION UNITa

ENERGY CONSUMPTION PER PRODUCTION UNIT

(a) 2014 was chosen as the base year for 2014-2018 global planning, in line with the Business Plan. Types of energy included: electricity, heat, steam, cooling, natural gas, metallurgical coal, diesel, and other fuels. The indicator for 2014 was calculated on the new parameter (total manufacturing hours), in line with the targets of the Energy Action Plan 2014-2018. The 2013 and 2012 figures are estimates.

HEAT RECOVERY IN THE POWERTRAIN SEGMENT
A number of solutions were implemented at the Powertrain Turin Driveline plant (Italy) to exploit the heat of the fumes generated by the painting process, previously conveyed into a dedicated furnace for the removal of pollutants. Thanks to a new hydraulic system, the heat recovered from the fumes is used to preheat the technological water in the central heating plant, primarily for sanitary use. A new circulator pump, equipped with an inverter, draws part of the water from the return pipe of the central heating plant, and conveys it into its storage tank. The water is then reintroduced into the same line, at a temperature and flow rate set automatically according to desired values. Supplying the central heating plant with water at a higher enthalpy (heat energy) allows saving 10,500 GJ of primary energy, reducing CO2 emissions by approximately 600 tons. The estimated payback period of the investment is less than 1.5 years.
The Bourbon Lancy plant (France) adopted several measures to recover the energy consumed by compressors and dissipated by cooling towers. The goal was to recover heat to power a hot water boiler by modifying the existing system of compressors. Thanks to the modification, independently-controlled heating is now available in some plant areas near the compressors room. Based on total savings, the estimated payback period of the investment is less than 1.5 years, and the initiative will cut CO2 emissions by approximately 260 tons.

CO2 EMISSIONS

CO2In 2014, CNH Industrial’s CO2 emissions (scope 1 and 2) were approximately 457 thousand tons, significantly lower than the previous year (-15%). This result was due to the reduction in energy consumption and to the greater share of renewable energy in CNH Industrial’s energy mix.

Such significant results were mainly ascribable to a reduction in energy consumption per respective unit value, and to a greater use of renewable energy sources. Indeed, 20% of CNH Industrial’s total energy consumption was from renewable sources, a figure that exceeds the 15% target set for 2014. Furthermore, the increased use of renewable energy cut CO2 emissions by 91 thousand tons.

The new Energy Action Plan confirms CNH Industrial's commitment to reduce its greenhouse gas emissions and dependence on fossil fuels: the new targets set for 2018 aim at reducing CO2 emissions per hour of production by 7.5% compared to 2014, while the target for 2020 for energy use from renewable sources is 21%.

DIRECT AND INDIRECT CO2 EMISSIONS PER PRODUCTION UNITa 

DIRECT AND INDIRECT CO2 EMISSIONS PER PRODUCTION UNIT

(a) CO2 is the only greenhouse gas significant to CNH Industrial’s processes (see also page 241).
2014 was chosen as the base year for 2014-2018 global planning, in line with the Business Plan.
The indicator includes scope 1 and scope 2 emissions.
The indicator for 2014 was calculated on the new parameter (total manufacturing hours), in line with the targets of the Energy Action Plan 2014-2018.
The 2013 and 2012 figures are estimates.

DIRECT AND INDIRECT CO2 EMISSIONS (a)

 20142013b2012
Plants 54 54 59
Direct emissions (scope 1) 191,361 226,748 212,833
Indirect emissions (scope 2) 264,936 308,198 318,288
Total emissions (scope 1 + 2) 456,297 534,946 531,121
Direct emissions from landfill gas 1,079 1,987 3,332
Total CO2 emissions 457,376 536,933 534,453

(a) CO2 is the only greenhouse gas significant to CNH Industrial’s processes (see also page 241). For CNH Industrial, biogenic CO2 emissions are those released by the combustion of landfill gases. 2014 was chosen as the base year for 2014-2018 global planning, in line with the Business Plan. The direct and indirect CO2 emissions in the base year are those in the table. There were no significant changes in emissions requiring the recalculation of base year emissions. GHG emissions were consolidated and reported using an operational control approach. For the methodologies and emission factors used, see also page 241.
(b) 2013 data restated with respect to the 2013 Sustainability Report.

PARTICIPATION IN EMISSION TRADING PROGRAMS

The energy used at CNH Industrial plants comes primarily from third-party power generation plants or directly from the national electricity grid.

The plant in Vysoke Myto (Czech Republic) is the only one subject to the European Emission Trading System (EU-ETS).8 The energy it generated in 2014 was approximately 77 thousand GJ, which put the plant in debt with regards to its CO2 emissions allowance for the year, compensated by purchasing more emission credits.

The only CNH Industrial site subject to the CRC (Carbon Reduction Commitment) Energy Efficiency Scheme, i.e., the emission trading system present in the UK, is the plant in Basildon, one of the most energy-consuming in Europe. In 2014, for the third year running, the plant renewed its participation in the reporting and evaluation system (known as CRC - Performance League Table), purchasing the necessary credits to offset its CO2 allowance.

However, during the year, the plant voluntarily changed scheme, removing itself from the CRC to fully adhere to the EU-ETS as of 2015

LIGHTING SYSTEM UPGRADE
In 2014, the Grand Island plant (USA) followed the example set by the Saskatoon plant (Canada) in 2013, by completely replacing its lighting system with the latest generation of LED ceiling lights. The project involved the replacement of 1,250 metal halide lamps (i.e., the substitution of 360 W lamps with 260 W lamps), saving 27% on electrical power consumption. The replacement also doubled average brightness levels in the plant’s production areas, with considerable benefits in terms of work area productivity and safety.
Per year, this modification saves 1,787,500 kWh and prevents 1,135 tons of CO2 emissions. Based on total savings, the estimated payback period of the investment is five years.
Furthermore, the expected savings in maintenance costs as of 2015 amount to $60 thousand, which the plant will use to install additional LED lights in non-manufacturing areas and to enhance automated light control systems.

 

(8) 2013 marked the start of the third phase of the ETS, which sets a single EU-wide cap on emission allowances; this limit will decrease linearly over time, even after the end of the third trading period (2013-2020).

 

GRI: 
G4-EN6; G4-EN6; G4-EN15; G4-EN16; G4-EN3; G4-EN5; G4-EN6; G4-EN15; G4-EN16; G4-EN18; G4-EN6