Journey to Energy Efficiency and Sustainability
Venkatesh ValluriChairman and PresidentIngersoll Rand India
Green Building CongressOctober 30, 2012
Ingersoll Rand Overview
• A $14 billion diversified industrial company
• Publicly-held; NYSE:IR
• More than 52,000 employees worldwide in 54 countries
• Operations in every major geographic region
• Strategic brands are #1 or #2 in their markets
• Products and services for commercial, industrial and residential markets
Address the Mega trends by leveraging our core competencies & technologies
By making environments safe, comfortable and
efficient, we enable our customers to achieve
real progress and create a positive impact in their
world
By making environments safe, comfortable and
efficient, we enable our customers to achieve
real progress and create a positive impact in their
world
Unifying Strategy — Guides Our Actions and Leads Our Growth
Growing Urbanization
Feed Growing
Population Comfortable, Safe, Efficient Environments
Drive for Competitiveness
Resource Conservation
Unlocking the benefits of energy efficiency:
An executive dilemma
Survey Conclusions
Sustainability at Ingersoll Rand
Sustainability at Ingersoll Rand
Risk Mitigation
Aspiration:ADAPT
Aspiration: BEST IN CLASS
Aspiration:DIFFERENTIATE
12
3
Do old things in new ways
Do new things in new ways and grow
core business
New business model creation and
differentiation
Breakthrough Growth
Compliance + Advance Transformation
Center for Energy Efficiency & Sustainability Dedicated Team of Experts
Develop and shape new green standards & seek
incentives for leverage and
speed
Develop and shape new green standards & seek
incentives for leverage and
speed
AdvocacyAdvocacy
Showcase projects,
expanded KPIs, leverage supply
chain for industry-leading position
Showcase projects,
expanded KPIs, leverage supply
chain for industry-leading position
OperationsOperations
Engaging Employees
Building Reputation
Engaging Employees
Building Reputation
CommunicationsCommunications
Embed innovation process towards wide greening of existing products
Embed innovation process towards wide greening of existing products
InnovationInnovation
Developing skill sets that build
sustainability leaders
Developing skill sets that build
sustainability leaders
EducationEducation
Dedicated to integrating best practices for the lo ng-term use of energy and other resources –for ourselves, our customers and the communities in which we operate and serve
Dedicated to integrating best practices for the lo ng-term use of energy and other resources –for ourselves, our customers and the communities in which we operate and serve
Established an Outside Advisory Council to Guide Us…learned from progressive leaders
1. Helping articulate the sustainability story and purpose (what, why, how)
2. Advising/shaping the company’s strategy through the lens of sustainability
3. Actively engaging the company around its innovation and R&D portfolio
4. Working on long term goals/metrics (e.g. energy, carbon footprint, green products)
5. Helping build external relationships and alliance partners
6. Advocating for the company’s programs with external stakeholders
7. Acting as a general sounding board for senior management on sustainability issues
Key: Heavily involved Modestly involved Not involved
Areas where companies have focused their Advisory B oard’s attention:
Forging the sustainability story and advising on strategy are common tasks for these boards’ focus
Forging the sustainability story and advising on strategy are common tasks for these boards’ focus
Key Environmental, Health & Safety ProgressLost Time Incident RateTotal Recordable Incident Rate
Non-Hazardous
Energy Consumption
consumptionover 3x better than goal of 5% reduction
17.6%
Waste Disposal
Hazardous
disposal amountover 7x better than goal
of 5% reduction
disposal amountover 5x better than goal of
5% reduction
36.3% 26.6%
Product Stewardship
• Company actions vary but most have green product portfolio focusing on 1-2 dimensions
• Most companies’ environmental product claims are either vague or related to external standards
• Most claims are focused on use-phase, but some are considering full life-cycle (LCA)
Companies Are at Early Stage of Defining “Green”
DefineDefineDefine BreakawayBreakawayBreakaway
Co-optCoCo--optopt AdoptAdoptAdopt
HIGH
LOW Industry Standards
Com
pany
Cap
abili
ties
Design for Sustainability
Identify New “Green”Business
Opportunities
Identify New “Green”Business
Opportunities
Define ‘World-Class’ Thresholds
Define ‘World-Class’ Thresholds
Identify Project Add-on Opportunities
Identify Project Add-on Opportunities
Define Premium Green Product and
Service Criteria
Define Premium Green Product and
Service Criteria
Identify Strengths and Gaps
Identify Strengths and Gaps
Define Competitive Benchmarks
Define Competitive Benchmarks
Ensure Continuous
Improvement
Ensure Continuous
Improvement
Ensure Product Compliance
Ensure Product Compliance
Measure Against Competition
Measure Against Competition
Move Beyond Compliance and Make Sustainability a Co mpetitive Advantage
Anticipate Potential Issues
Anticipate Potential Issues
Understand Unmet “Green” Customer Needs
Understand Unmet “Green” Customer Needs
Sustainability Examples at Ingersoll Rand India
Innovation key for Emerging economies….
Phase I:
Innovation through Value creation:
-Cost Take outs-Value Engineering-Productivity
Phase 2:
Innovation through Convergence:
-Lateral Co-creation-Multiple Technologies-Driving Value for
identified needs
Phase 3:
Open Innovation:
-Market Creation-Value Generation
Create Value thru Convergence – Sustainability at th e Core
Leverage Technologies and Reverse Globalize
Partnership with IBM for Remote Monitoring and Asset Management
•Buildings in India account for 30% of energy consumption. Of this consumption, the major usage is due to HVAC and lighting. As the Indian economy develops and commercial infrastructure gets built, it becomes essential to drive robust initiatives to improve energy efficiency and sustainability. •Partnership with IBM to drive greater energy efficiencies for organizations who are engaged in infrastructure creation or maintenance for high growth sectors (Commercial, Hospitality, Health, Pharma & others). •Solution leverages IBM’s Intelligent Building Management (IIBM) system (a combination of monitoring, asset management and advanced analytics) along with Ingersoll Rand’s Energy optimisation technologies, to help trigger preventive and predictive maintenance to create Smarter Buildings.
Developing Solutions for Local Markets
Developing Solutions for Local Markets
Thermo King B100
•Re-engineered and localized specifically for India •B100 unit fitted in with a container can be modeled on small reefer trucks to negotiate narrow lanes for ‘first and last mile’ delivery of temperature controlled and refrigerated products•The B100 with its battery operated unit is an ideal innovation for India where small trucks typically run on low horse power engines and do not have the capacity to run a compressor directly. •Unique technology and a great fuel saver – first solution of its kind in the country•Delivering Value at the best Price
Transparency Enables Thought Leadership
Reporting & Ratings
Key Points of the Journey
1. Customer value2. Enterprise-wide impact3. Lifecycle thinking4. Embedding sustainability:
capture heart & mind