Select Committee on Environmental Audit Minutes of Evidence


Supplementary memoranda evidence, submitted by EEF, The Manufacturers' Organisation

ABOUT EEF

  EEF is the representative voice of manufacturing, engineering and technology-based businesses. We have a membership of 6,000 companies employing more than 800,000 people. Comprising 11 regional EEF associations, the Engineering Construction Industries Association and UK Steel, EEF is one of the UK's leading providers of business services in employment relations and employment law, health, safety and environment, manufacturing performance, education, training and skills.

INTRODUCTION

  EEF provided written evidence to the EAC inquiry in to "The Role of the Climate Change Levy and Agreements", and subsequently provided oral evidence—represented by Mr Gareth Stace (Head of Environmental Affairs) and Mr Ian Rodgers (Director, UK Steel)—at a session on Tuesday 16 October 2007. At the session on 16 October, the committee requested further information regarding qualitative changes made by companies since the Climate Change Agreements (CCAs) were introduced in 1999.

  EEF has sought the input of some of our member companies on this issue, in order to provide a flavour of the changes that have been made in response to CCAs being introduced. We do not suggest that this is a scientific sample of companies—rather, it provides some qualitative indications of the kind of activities and actions introduced by companies in the area of energy efficiency. The companies involved are participants in the Iron and Steel Sector CCA.

  The companies were asked the following six questions:

    1)  Since your company first heard about CCAs, has there been a change in the focus within the business, when looking at energy efficiency?

    2)  Has the monitoring and targeting of energy use improved and risen up the company agenda since 2000, as a result of CCAs?

    3)  Is energy use and abatement opportunities discussed more now at Board level as a result of CCA membership?

    4)  Have you experienced monetary savings as a result of any new found focus?

    5)  Has the risk of continued CCA membership influenced investment decisions?

    6)  Is the whole workforce aware of how they can influence the CCA performance of the company?

  The responses gathered from this informal exercise are collated in Table 1. As has been previously mentioned, this is only intended to provide a broad illustration of the kinds of responses companies have taken to the introduction of the CCAs.

November 2007


Table 1

RESPONSES FROM EEF MEMBERS ON IMPACT OF IRON & STEEL SECTOR CCA ON ENERGY USAGE & INVESTMENT INTENTIONS


  Q1  Since your company first heard about CCAs, has there been a change in the focus within the business, when looking at energy efficiency? For example, do you now have energy meetings that weren't in existence when CCAs came into force. Q2  Has the monitoring and targeting of energy use improved and risen up the company agenda since 2000, as a result of CCAs? Q3  Is energy use and abatement opportunities discussed more now at Board level as a result of CCA membership? Q4  Have you experienced monetary savings as a result of any new found focus? Q5  Has the risk of continued CCA membership influenced investment decisions? Q6  Is the whole workforce aware of how they can influence the CCA performance of the company?

Hot rolled steel bar and sections producer based in the West Midlands We now have an energy policy and an energy committee that holds regular meetings. The amount of monitoring and recording of energy related data is now very comprehensive. Energy matters are now an agenda item for the main board More savings than before are now made, due to a more concentrated and focused approach, by both management and workforce. Energy efficient solutions are now always considered when planning investments in plant and equipment. The workforce are very aware of the rise in energy costs and the need to make more efficient use of equipment wherever possible.
Wire Producer based in South Yorkshire employing approximately 550 people There has been a change of focus, and there are energy oriented meetings held, although since I manage both energy and the environment I have just amalgamated the two review meetings into one. Monitoring and targeting has improved on site as a result, and the analysis has assisted in making judgements about how various plants actually should be planned to avoid unnecessary waste of energy. The CCA is a "site"' issue.Yes, both on process usage, but also through buildings management Would call it not a risk more a desirable to maintain momentum! I run separately both Energy and Environmental Awareness Training courses each month and the CCA plays a large part in both of them—I have covered about 1/3rd of the work force so far, and will continue throughout 2008
Reinforcing and merchant bar manufacturer based in the West Midlands employing approximately 60 people We now hold bi-monthly energy meeting to discuss "energy" Energy use is now considered one of the most important reportables—to Board, Management and Shop Floor All projects are now assessed including the energy impact of completion at board level We are well within CCA targets indicating improvements have been forthcoming Definitely all investment considers any effect on membership of CCA The savings under CCA are made clear at monthly management meetings
Manufacturer of alloy and stainless steel drawn bars based in Sheffield employing approximately 100 people We have undertaken many energy saving projects eg Remove two steam boilers and replace with directly fired gas burners in our process tanks. Replace one of our furnaces. Improve thermal insulation on another furnace We had 20 additional sub meters fitted to monitor electricity and gas usage. We have used this to target areas of energy wastage Our SEC is reported monthly to senior management. Energy saving capital expenditure projects have been approved by senior management Our gas bills have reduced dramatically. The electricity bills have reduced but not to the same extent The CCA has influenced the decision but the overriding reason has been cost savings The workforce has been aware that dropping out of the CCA will cost the company money but it is an ongoing struggle to get people to turn off items of kit that are not in use










 
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