There is a tremendous focus on the Circular Economy today and on End-of-Life management for manufacturers which can be valuable from a compliance, revenue, and risk avoidance strategy. Equally as important, however, is the evaluation the actual buildings for production, warehouses and distribution facilities and equipment the equipment utilized to manage the entire spectrum of energy use and carbon emissions for Scope 1 and 2. Without focusing wholistically on all these components as well, manufacturers could be missing significantly low hanging fruit as reporting ESG Capture is less complicated and often times there is an immediate reduction of operating expense that can be achieved. Focusing on emissions within your four walls represents the lowest hanging fruit in your ESG goals and strategies. As Genesis Dome can assist with End of Life which falls under Scope 3 emissions, it is imperative to understand the Scope emissions opportunities that the building represents. Scope 1 emissions are direct greenhouse gas emissions that occur from sources that are controlled or owned by an organization. In a manufacturing context, this primarily includes "stationary combustion" from burning fuels like natural gas or heating oil in onsite boilers, furnaces, and engines, as well as "mobile combustion" from company-owned vehicles and forklifts. Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. While these emissions physically occur at the utility’s power plant where the energy is generated, they are accounted for in the manufacturer’s inventory because they are a direct result of the facility’s energy consumption. Managing Scope 1 (direct emissions) and Scope 2 (indirect emissions) requires a blend of operational efficiency, technological integration, and strategic sourcing. The "Low-Hanging Fruit": Quick Wins for Efficiency Before investing in massive capital projects, facilities should target high-ROI upgrades that provide immediate energy reductions.
- LED Lighting Upgrades & Smart Sensors: Lighting often accounts for a significant portion of warehouse and floor energy use. Switching to high-efficiency LEDs can reduce lighting energy consumption by 50% to 75%. Adding motion sensors and daylight harvesting—where lights dim based on natural sun exposure—further trims the fat.
- Compressed Air Optimization: In many factories, compressed air is the most expensive utility. Leaks can waste up to 30% of a compressor's output. Regular leak audits and installing variable speed drives (VSDs) on compressors are essential first steps.
- HVAC Maintenance and Insulation: Simple measures like sealing ductwork, insulating steam pipes, and upgrading to programmable thermostats can significantly impact Scope 1 natural gas usage.
The additional benefits of reducing leaks and insulating pipes are that not only do these measures reduce energy use but equipment load. Simply put, well-maintained equipment lasts longer. Understanding the Energy Management System (EMS) What is often an overlooked opportunity with respect to reduction in Scope 1 and 2 is the EMS. An EMS is the "brain" of a decarbonization strategy. While a Building Automation System (BAS) controls comfort, an EMS is designed to monitor, analyze, and optimize energy consumption across the entire production line. How to Deploy an EMS in a Factory:
- Sub-metering and devices to monitor energy consumption: You cannot manage what you do not measure. Install IoT-enabled sub-meters on high-load machinery and specific production lines.
- Centralized Data Hub: Integrate these meters into a software platform that provides real-time visibility. This allows facility managers to identify "energy spikes" or equipment that is running unnecessarily during off shifts.
- Automated Demand Response: A sophisticated EMS can be programmed to automatically power down non-essential equipment during "peak load" hours when electricity prices (and carbon intensity) are highest.
Strategic Energy Procurement Reducing how much energy you use is half the battle; the other half is changing what kind of energy you buy. Integrating energy procurement into your sustainability plan directly targets Scope 2 emissions.
- Renewable Energy Certificates (RECs): For facilities in markets with limited green energy options, RECs allow you to claim the environmental benefits of renewable energy generated elsewhere.
- Power Purchase Agreements (PPAs): For larger operations, entering into a PPA provides a long-term contract to buy renewable energy directly from a developer. This offers price stability and a clear "additionality" story for ESG reporting.
- Green Tariffs: Many utilities now offer programs that allow commercial and industrial (C&I) customers to pay a slight premium to ensure a percentage of their power comes from wind or solar sources. Although this may seem like an added expense, when considering regulation around building performance and ESG compliance, the expense can potentially result in compliance (which can be less expensive than the penalties of noncompliance.)
The most successful manufacturers don’t look at the EMS, procurement, and Lighting upgrades as isolated projects. The treat all these components as connected to operating their annual expenses. For example, successful manufacturers may use the EMS to prove the savings from lighting upgrades and then reinvest those utility savings into Green Power Purchase Agreements. By combining operational efficiency with smart procurement, factories can significantly lower their carbon footprint while simultaneously improving their bottom line.
Do you need help? Do you need assistance creating programs that scale for your ESG progam, product End of Life plans, recycling and reducing your Scope 3 emissions? Genesis Dome can assist; our processes can support you in ensuring that materials are diverted from the landfill, compliance with privacy regulation and the diversion, cost and savings data is captured. With our unique approach we can support you in diverting up to 98% of your materials from the landfill. We can also provide guidance and solutions to solve your product end of life challenges. Please contact us!