Environment: Energy

Managing energy is important to our business productivity and the environment. Our plants require energy to manufacture products — approximately 979,000 megawatt hours (MWh) globally in 2017.We have a goal to increase energy efficiency in our facilities by 10% by 2020 from a 2013 baseline.Over the past four years, our total energy efficiency has increased by 15.6%.

We have achieved certification standards at a number of different sites around the world: four ISO 50001 certified sites, four LEED-certified sites and one GreenGlobe-certified site.

  ABSOLUTE ENERGY USE

 2017

 2016

 2015

 2014

 2013

 UNITS

Direct (Fuel Use)

2,058

2,079

2,112

2,089

2,086

billion kilojoules (kJ)

Indirect (Electricity)

1,468

1,497

1,533

1,572

1,548

billion kJ

Total

3,526

3,576

3,645

3,662

3,634

billion kJ

Normalized Energy Use

0.248

0.265

0.274

0.284

0.294

billion kJ/ million USD

Natural Gas

837

841

907

962

913

billion kJ

Gasoline

905

932

888

827

860

billion kJ

Diesel

241

235

230

224

251

billion kJ

Propane

59

60

71

76

62

billion kJ

Aviation Fuel

16

11

16

0

0

billion kJ

Renewable Energy

0

0

0

0

0

billion kJ

Total Direct Energy

2,058

2,079

2,112

2,089

2,086

billion kJ

 

Energy Efficiency

Energy efficiency has been the cornerstone of our efforts to reduce our emissions. We have a goal to increase energy efficiency in facilities by 10% by 2020 from a 2013 baseline. Through initiatives such as optimization of our heating, ventilation and air conditioning (HVAC) systems, Green Team programs, efforts to eliminate leakage in our compressed air systems and relamping in many of our U.S. facilities, we are on track to meet our energy efficiency goal. Over the past four years, our total energy efficiency has increased by 15.6%. We will strive to exceed this through 2020. We are also a Department of Energy Better Plants Challenge Partner.

15.6% increase in our total energy efficiency

over the past four years

Renewable Energy

Replacing electricity generated from fossil fuels with that produced from renewable resources is key to addressing climate change as well as creating long-term value for our employees and our customers. We aim to reduce our GHG emissions through impactful investment in renewable energy both on- and off-site.

In early 2018, we announced major investments in renewable energy. At three large manufacturing sites in the U.S. and China, we initiated or commissioned on-site solar installations to address 15% of the energy loads at these locations. This is equivalent to saving 560,000 gallons of gasoline and taking 1,000 cars off the road. In addition to on-site renewable energy sources, Ingersoll Rand has signed a power purchase agreement (PPA) for wind power. The wind farm will be located in Texas.

Approximately 32% of the company’s U.S. electricity will be replaced with green energy

while also reducing U.S. Scope 2 GHG emissions from electricity use by 32%

The energy produced will replace approximately 32% of the company’s U.S. electricity use with green energy and reduce U.S. scope 2 GHG emissions from electricity use by 32%. This is the equivalent of recycling 26,000 tons of waste instead of sending it to a landfill, and preserving 600 acres of U.S. forests.

Going forward, the bulk of our renewable energy mix will likely come from power purchase agreements, either on-site or within a single region. We believe that large-scale investments in renewables, such as through PPAs, are vital to shifting to a clean-energy economy. Our intent is to be a significant investor in that effort. For some of our sites, direct investment in renewable energy may make the most sense. In some areas of the world, we are experiencing uncertainty in electricity prices and availability. By investing in on-site renewable energy, we will ensure greater continuity of our operations.

 

Management Approach

Our energy reduction goal guides our progress in managing our energy use. Please see our Progress Toward 2020 Targets section. In addition, we’ve implemented several tools that help us better measure and manage our energy use. These include the following:

  • We implemented a company-wide standard work management system within the Ingersoll Rand Business Operating System that drives effective and sustainable environmental, health and safety (EHS) practices and procedures.

  • Our operating procedures require that an EHS committee must be formed at all manufacturing and service locations and must include a sufficient number of management and hourly employees. The following items must be reviewed during each EHS committee meeting: performance against enterprise, strategic business unit (SBU) and/or local targets, objectives and goals.

We use the EHS software solution Gensuite to manage EHS performance data, sustainability metrics and work tasks. Nearly 10,000 Ingersoll Rand team members are registered Gensuite users. Ingersoll Rand has realized systematic data quality improvements and increased the efficiency of delivery of our EHS compliance and risk management practices through the use of Gensuite.

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