WHY MANAGING IT MATTERS
As energy prices become increasingly volatile and climate change more of a concern, reducing our energy consumption and greenhouse gas emissions (GHG) makes good business sense. Southwire must simultaneously reduce energy and air emissions from operations while the business continues to grow. Southwire’s reported energy use covers manufacturing plants, warehousing operations and offices, except those included in the UCI (2017 data is included), Sumner and DCN acquisitions. As expected, Southwire’s most significant contributors to energy consumption and air emissions are our larger, more complex manufacturing plants.
Southwire’s commitment to environmental stewardship includes a focus on both energy and emissions reduction and the use of alternative energy sources where feasible. Being responsible energy consumers matters to us and to our customers. We regularly receive customer inquiries about our GHG emissions as well as our energy usage, reduction goals and efficiency initiatives. We manage our energy and emissions footprint by setting goals and policies, conducting internal and external benchmarking and audits, creating specialized teams and leveraging partnerships to drive accountability and communicate best practices.
2021 Sustainability Goals & Targets
Southwire launched a bold goal in 2017 with a corresponding new energy and GHG emissions reduction target, which builds upon the Growing Green efforts we started in 2007. The new GHG objective creates a more visible and meaningful commitment to addressing climate change. This is our first year reporting progress toward our new goal, and Southwire does not use carbon offsets to achieve this target.
2021 SUSTAINABILITY GOALS & TARGETS
|2021 Target||Metric||2016 Baseline||2017 Data||% Change|
|Reduce energy and greenhouse gas (GHG) emissions intensity by 15% through conservation and the use of renewable energy by 2021||Energy Intensity (kWh/ton)||1,041||996||4% Reduction|
|GHG Emissions Intensity (metric tons of CO2e/ton)||0.37||0.36||2% Reduction|
Southwire first issued its Environmental Policy and Principles document in 1994, with a commitment to “maximize the energy efficiency of our existing operations and save energy to the greatest feasible extent.” Since then, we have updated the document as new issues arise. Now that Air Emissions is a material topic, Southwire will review and revise our current policies and principles accordingly.
Management of our energy use and air emissions begins with our individual plants, with the support of our business groups and corporate Environment, Health and Safety (EHS) staff. The plants report to our divisional leadership, who in turn report to our executive vice president of international and operational development.
Our corporate EHS department manages our energy performance data, and our board receives a quarterly update on performance against our GHG and energy reduction targets. Business group, plant and environmental staff receive summarized company-wide and individual plant GHG and energy performance data on a periodic basis.
Southwire’s energy reduction team consists of our senior EHS director, senior director of corporate infrastructure and three plant managers. This team evaluated several energy consulting firms, including three pilot projects, to identify a potential partner to aid in our energy assessments. Over time, this group aims to improve energy efficiency through a combination of capital investment and updated operational practices.
Over a two-year period, we completed external energy audits at Southwire’s top 13 energy consuming facilities. From these audits, we are building a database of potential energy-savings opportunities that can be deployed throughout the organization. In addition, as we modernize our operations, modify equipment and upgrade our infrastructure, we seek to utilize the most energy-efficient technology when possible.
Presently, each manufacturing plant manages its energy consumption and air emissions on an individual basis, making it difficult to achieve a standardized approach and quantify the impact of each facility’s separate actions. Our external energy assessments have identified specific energy-saving opportunities for our top energy-consuming facilities. Based on the audit findings, we encourage plants with more moderate energy footprints to implement these energy reduction techniques as applicable.
Southwire also has investigated the use of renewable energy applications. We now have a roof-top solar installation at our Avon Lake Plant in Ohio, and a ground-mounted vehicle charging station at our Villa Rica Plant in Georgia. Southwire also joined Solarize Carroll in 2017, a community-based solar photovoltaic group purchasing program designed to help homeowners, businesses and other organizations save on the cost of solar system installations by leveraging bulk purchasing power in Carroll County, Ga.
At Southwire, we track energy consumption and efficiency. Our facilities track electricity and gas for both Scope 1 and Scope 2 emissions. To further evaluate our performance, we engaged a third party to verify our 2016 and 2017 operational eco-efficiency data. The third party recommended Southwire change our scope and calculation methods for some of this data, which caused us to restate our 2016 results, previously disclosed in our 2016 Sustainability Report. We referenced these changes in our general disclosure of 102-48: effect of restatements of information and reasons for them.
Energy Consumption Within the Organization (GJ)
Energy Intensity (kWh/ton**)
Southwire’s largest sources of Scope 1 and Scope 2 GHG emissions and combustion products (NOx, SOx, and CO) are our aluminum rod mill in Hawesville, Ky. and copper rod mill in Carrollton, Ga. By nature of the process, it takes a significant amount of energy to melt cold metal and convert it into rod for use in our wire and cable manufacturing processes.
Gross Direct (Scope 1) GHG Emissions (metric tons of CO2e)*
Energy Indirect (Scope 2) GHG Emissions (metric tons of CO2e)**
GHG Emissions Intensity (Scope 1 & Scope 2) (metric tons of CO2e/ton)***
Strategic Sourcing & Logistics
In addition to managing our energy use, Southwire works to limit emissions from transportation. To the extent practicable, Southwire strategically sources raw materials closer to the appropriate manufacturing plant to limit distance traveled, and we use intermodal transport whenever possible. We encourage our carrier contractors to participate in the EPA’s Smart Way Program in alignment with our fuel efficiency expectations. This program creates a win-win-win outcome: our carriers save on fuel costs, our logistics expenditure declines and the environment benefits from diminished carbon intensity. Carrier membership is dependent upon improvement from baseline statistics in various categories.
Freight Spend with Smart Way Carriers
Significant Air Emissions (Kilograms)*****
Volatile organic compounds
Volatile organic compounds
*****Emission factors are based on US EPA AP-42 emission factors, actual testing of the source, testing of a similar source, or best available emissions data.