MILWAUKEE — Johnson Controls plans to scale up its program to help small and medium-sized suppliers reduce energy use in their manufacturing facilities as a Clinton Global Initiative America (CGI America) Commitment to Action.
The Scaling Energy Efficiency in Corporate Supply Chains CGI Commitment to Action expands an existing Johnson Controls supplier efficiency pilot program in which company energy experts visit the plants of its suppliers and train their in-house teams on identifying and implementing low-cost/no-cost energy efficiency improvement measures. The supplier training follows an industry practice known as “energy hunts” conducted for years by Johnson Controls at its own manufacturing plants around the world. Suppliers participating in the program typically achieve energy savings of 5 to 10 percent with less than a two year payback on their investments.
As part of the CGI America Commitment to Action, Johnson Controls will assist 60 additional suppliers over the next three years. The American Council for an Energy-Efficient Economy (ACEEE) will provide overall coordination of the commitment including recruiting manufacturing partners, gathering program results, and reporting progress to CGI.
The Scaling Energy Efficiency in Corporate Supply Chains Commitment to Action was recognized during ceremonies at CGI America 2015 held in Denver.
“Small and medium-sized suppliers often have limited resources and lack the expertise to investigate and implement resource efficiency improvements,” said Grady Crosby, vice president and chief diversity officer for Johnson Controls. “We are pleased the Clinton Global Initiative has recognized this program to help the manufacturing sector reduce energy consumption which translates into lower operating costs and increased competitiveness for American businesses.”
“ACEEE research has identified the value of energy efficiency to small and medium-sized manufacturers, but also the challenges of limited expertise and staff resources needed to realize savings,” said Steve Nadel, executive director of ACEEE. “Large companies have proved that sharing expertise with their suppliers is an effective strategy for generating savings and improving the productivity and financial stability of both companies, thereby creating quality jobs.”
Other organizations supporting the commitment to action include the U.S. Department of Energy and the Institute for Industrial Productivity which will share best practices, tools, and expertise while helping recruit additional manufacturing partners. The World Resources Institute will provide advice and support to the project while the Natural Resources Defense Council will serve as an advisor in the area of supply chain programs and supporting policies.
For more information about Johnson Controls, visit www.johnsoncontrols.com.
For more information about ACEEE, visit http://aceee.org.
Publication date: 6/22/2015