The Energy Challenge for a Global Manufacturing

Organisation
Tim Sullivan
Director, Global Energy Management & Property Compliance

2015 Rolls-Royce plc

The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other
than that for which it is supplied without the express written consent of Rolls-Royce plc.
This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning
such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or
associated companies.

Trusted to deliver excellence

Rolls-Royce proprietary information

Agenda

Rolls-Royce Who we are

Our portfolio challenges & opportunities
Our Transformation

Where we are on our journey?

What's going well?
Whats not going well?
What does the future hold?

Rolls-Royce proprietary information

We are a power systems and services Group

Rolls-Royce proprietary information

We are a power systems and services Group

Rolls-Royce proprietary information

Current Property Portfolio

Gross Internal Area by Region

5%
25%

70%

Europe, Middle East & Africa (EMEA)

Americas
Asia-Pacific

Rolls-Royce proprietary information

5
September 2015, Energy Event

GIA: 2.27million m2
Circa 1,000 Buildings
262 Sites
45 Countries
>50,000 Employees
110m Global Energy Spend

Environmental Performance
ACARE Flightpath 2050 Goals
Reduce aircraft CO2
emissions per passenger
kilometre by 75%
Reduce noise by 65%
Reduce NOx by 90%
Facilities Targets:
Normalised energy reduction
of 30% by 2020 (2014
baseline)
50% absolute reduction in
GHGs by 2025

Rolls-Royce proprietary information

Current Environmental Performance

2015 Facilities GHG

600

500

494

Facilities GHG ktCO2e

455

2016

2017

400

2018

2019

2020

455ktCO2e

2021
2022

8%

2023
2024

300

247

200

2015 Facilities Energy

112MWh/ revenue

100

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

3%

We have been awarded Industry Leader, Industry Mover and Gold Class award for the Aerospace and
Defence sector in the Dow Jones Sustainability Index. Achieving an overall score of 77, we have been
listed in the DJSI World and DJSI Europe indexes.
Our score of 99B is our highest to date and has earned us a place in the FTSE 350 Climate Disclosure
Leadership Index. This reflects our commitment to continuously improving our environmental
performance and disclosure

Rolls-Royce proprietary information

Our Facilities

Rolls-Royce proprietary information

Where are we on our Journey?

2000

Rolls-Royce proprietary information

2020

Challenges of Transformation

Double Occupancy
Ramp up and down of production flexible
services
Exit and demolition of old facilities
Understanding site strategy and alignment

Rolls-Royce proprietary information

Programmatic
Technology Deployment
Strategic Partnership with
Philips
Deployed 3500 high-bay
fittings across the Rolls Royce
estate
New projects coming on
stream in the UK, USA,
Singapore and Germany

Rolls-Royce proprietary information

11

Programmatic Technology Deployment

Manufacture small-mid
size gas-fired CHP units
(120 2,500 kW)
Good size for RollsRoyce small process
heat loads
Deployed in Italy (trigen), Oberursel &
Friedrichshafen
Planned for Derby

Rolls-Royce proprietary information

12

Programmatic Technology Deployment

Solar PV pilots at Seletar, Singapore (4 MWp) and Bristol,
UK (2 MWp)
Project Sunshine establish the global potential
Identifying strategic partner to assess and develop other
sites

Rolls-Royce proprietary information

13

Programmatic Technology Deployment

Installing & Upgrading BMS across portfolio

Control Centres at MTU Friedrichshafen, Singapore,
Aiken SC
Aim connect all major facilities
Rotating control receiving and prioritising work
orders

Rolls-Royce proprietary information

Challenges ahead

Driving out cost: management of future energy

prices
Property footprint reduction: 2 major
redevelopments left Derby & Indianapolis
(~700,000 m2 in total)
Some of the easy things are done: continued
investment
Product make/buy: Some manufacturing is
moving to higher carbon economies
Future developments in governmental
Renewable Energy policy
Carbon pricing into decision making

Rolls-Royce proprietary information

Tim Sullivan
Director, Energy Management & Property Compliance
+44 7972 001 527
tim.sullivan@rolls-royce.com

Rolls-Royce proprietary information