Intended learning outcomes: Produce an overview on energy-intensive industries. Disclose examples of using alternative fuels and raw materials in order to decrease the carbon footprint and the amount of fossil fuels required in the cement industry.
While the regulatory landscape is changing and forcing firms to do environmentally responsible business, research and practice is showing that measures can be taken that improve environmental and economic performance at the same time. However, identifying viable improvement opportunities to increase energy efficiency remains a challenge in daily business. For one, energy is still (in 2010) relatively low priced. In the conventional manufacturing industry, energy cost can make up 2 to 3% of operating costs. For another, for investment decisions, the opportunities and risks that may be caused by regulations, prices, and markets are difficult to estimate: The core competencies and priorities of most companies are not in the field of energy saving (and buying know-how from the outside is also connected with costs). Clearly, for energy-intensive industries, such as chemicals and petrochemicals, iron and steel, cement, and pulp and paper, the situation is different than for the conventional manufacturing industries.
Energy-intensive industries (EIIs) are industries where energy costs make up a significant part of the operating costs (possibly up to 60%) and thus represent a major competitive factor.
As the fuels are regularly mostly fossil fuels, EIIs emit a considerable amount of CO2, which makes them vulnerable to carbon footprint regulation. EIIs made significant improvements in the past, especially the chemical and petrochemical industry. The following example from the cement industry may be taken for illustration: The cement industry requires a considerable amount of energy for the clinkering process (the chemical process transforming limestone into clinker, a basic element of cement). Fuel makes up to 30 to 40% of the total operating costs. At the same time, the chemical reaction produces CO2 as a by-product (worldwide, the cement industry is responsible for more than 5% of the man-made CO2 emissions). Figure 3.3.3.1 shows actions that were taken to reduce both costs and CO2.
Fig. 3.3.3.1 Example of using alternative fuels and raw materials in order to decrease the carbon footprint and the amount of fossil fuels required in the cement industry [ScVo10].
By using by-products (or waste) from other industries, it becomes possible to both reduce the amount of fossil fuel and the amount of clinker required for the production of cement. Such an approach on the subject of circular economy is called co-processing, and it is an important way to approach the challenges in the cement industry. However, a general criticism may be that using wastes in incineration (as fuel) can lead to toxic emissions and promote more production of waste. Life cycle considerations and pollution prevention need to be taken into account before deciding whether measures are suitable and, because of the complex economy and business activities, a challenging undertaking.
Continuation in next subsection (3.3.3b).
Course section 3.3: Subsections and their intended learning outcomes
3.3 Sustainable Supply Chains
Intended learning outcomes: Explain the changing concept of sustainability with reference to the triple bottom line. Disclose economic opportunities for social commitment and for environmental commitment. Describe energy management concepts and measures for improved environmental performance. Produce an overview on the measurement of the environmental performance. Present social and environmental dimensions in industrial practice.
3.3.1 TBL — The Triple Bottom Line
Intended learning outcomes: Produce an overview on the concept of the triple bottom line.
3.3.1b The Changing Concept of Sustainability with Reference to the Triple Bottom Line
Intended learning outcomes: Present the paradigm change that correlates to the evolution of sustainability aspects and their interaction.
3.3.2 SCoC — The Supplier Code of Conduct: Economic Opportunities for Social Commitment of Sustainable Supply Chains
Intended learning outcomes: Disclose the term “double bottom line”. Produce an overview on ethical standards, or code of conduct (CoC). Differentiate between groups of company-internal ethical standards and groups of company-external ethical standards. Present the supplier code of conduct (SCoC) and the certificate of compliance.
3.3.3 Energy-intensive Industries — Using Waste From Other Industries: Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on energy-intensive industries. Disclose examples of using alternative fuels and raw materials in order to decrease the carbon footprint and the amount of fossil fuels required in the cement industry.
3.3.3b Proactive Environmental Involvement: Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Differentiate between opportunities and threats favoring proactive and reactive environmental involvement.
3.3.4 Energy Management Concepts Using Triple Bottom Line (TBL) Thinking
Intended learning outcomes: Describe energy management in production systems. Differentiate between energy-aware manufacturing processes and integrating energy efficiency in production information systems.
3.3.4b Industrial Symbiosis, and Measures for Improved Environmental Performance Using Triple Bottom Line (TBL) Thinking
Intended learning outcomes: Produce an overview on major aims of industrial symbiosis. Present measures such as enhanced utilization of wastes, the recovery of medium and low temperature waste heat, and the framework for alternative fuels and resources.
3.3.5 The Measurement of the Environmental Performance of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on ecoefficiency. Describe an indicator system for the costs, quality and delivery, and environmental impact performance dimensions.
3.3.6 CSR and IPL Statement — Social and Environmental Dimensions of Sustainable Supply Chains in Industrial Practice
Intended learning outcomes: Produce an overview on Corporate Social Responsibility (CSR). Present in detail the integrated profit and loss statement (IPL) of Holcim Global.
