Volvo Group North America: Energy performance

Energy Performance
Energy Performance
Cumulative (vs. Baseline)17.5%
Annual (2018)2.4%
PORTFOLIO ENERGY PERFORMANCE

Better Buildings, Better Plants Challenge partners strive to decrease portfolio-wide source energy use intensity (EUI), and to increase the percent improvement compared to a set baseline. The company met its first Better Plants goal — a 25% reduction in energy consumption at U.S. facilities — five years ahead of schedule and set a new goal of 25% more in savings by 2024.Volvo's portfolio consists of 8 manufacturing facilities and 6 Prevost service centers as of 2018. Volvo's energy management program emphasizes innovative technology solutions, replication of best practices and non-production energy consumption. In the first four years of the new challenge, the Volvo Group is more than halfway to its target, reducing energy consumption by 17.5% compared with a 2014 baseline. Volvo has shared its energy efficiency practices with its global industrial partners and is planning to do the same through DOE's Better Plants Challenge Program.

ENERGY PERFORMANCE BY FACILITY

Looking at the percent improvement in energy performance across all facilities can provide insight into how an organization is saving energy. 8 out of 14 plants have experienced energy intensity reductions in 2018. Over 70% of Volvo's facilities participating in the Challenge Program have improved energy performance by >10% since the baseline year of 2014. While structural upgrades like LED lighting and modernized HVAC systems are playing a part, many of the energy saving ideas came from energy “treasure hunts” at Volvo Group facilities. These are events in which employee teams observe their facilities during idle or partially idle periods (frequently Sunday) to identify energy waste. Three of the company’s manufacturing sites — Lehigh Valley Operations, New River Valley and Hagerstown — are platinum-level partners in the DOE’s Superior Energy Performance program, the highest certification available in the US.

METHOD FOR CALCULATING ENERGY PERFORMANCE

Volvo produces different products and, therefore,uses different metrics to calculate plant-level energy intensity. Depending on the plant, Volvo calculates energy intensity in terms of source energy consumed (in MMBtus) divided by number of vehicles, number of engines, or power train components produced. The percent change in energy intensity is tracked for each facility on both a monthly and annual basis. Volvo normalizes its plant-level numbers to account for changes in production volume and heating and cooling degree days. These metrics are rolled up to the corporate level, with a corporate-wide percent improvement in energy intensity calculated by taking a weighted average of the percent change in energy intensity at the individual facilities.

Volvo Group North America