WHY MANAGING IT MATTERS

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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.

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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

Achieve top decile DJSI (Dow Jones Sustainability Index) performance in operational eco-efficiency in the Electrical Components & Equipment sector
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

Policies

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.

Governance

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.

Energy Management

Energy Audits

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.

Renewable Energy

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.

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Energy Performance

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.

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Energy Consumption Within the Organization (GJ)
Target
5 Million

4 Million

3 Million

2 Million

1 Million

0

2,215,6434911,890,0844,106,218*

 

2,097,0994421,983,6614,081,202*

 
20162017
Total fuel consumption from nonrenewable sources
Total energy consumption from renewable sources
Total electricity consumption
*Information obtained from utility bills, estimates used where data unavailable; Energy consumption calculated based on 1,025 Btu/cf natural gas (2013 average per US Energy Administration), 91,420 Btu/gal propane (Alternative Fuels Data Center, 2014), 1,054.2 Joules/Btu, 3.6 MJ/KWh.
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Energy Intensity (kWh/ton**)
Target
1200
1080
960
840
720
600
480
360
240
120
0

1,041

 

996

 

885

 
201620172021 Target
**Includes electricity (purchased and on-site solar generation), natural gas, propane, and fuel oil.

Air Emissions

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.

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Gross Direct (Scope 1) GHG Emissions (metric tons of CO2e)*
Target
135000
121500
108000
94500
81000
67500
54000
40500
27000
13500
0

113,671

 

107,571

 
20162017
*Southwire uses AIC software to consolidate GHGs (CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3) into CO2e. Global Warming Potential (GWP) values for natural gas, propane, etc. are based on the IPCC Fifth Assessment Report, 2014 (AR5). All sites are under operational control.
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Energy Indirect (Scope 2) GHG Emissions (metric tons of CO2e)**
Target
350000
315000
280000
245000
210000
175000
140000
105000
70000
35000
0

291,968

 

304,725

 
20162017
**AIC consolidates GHGs (CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3) into CO2e. Factors in the system are either based on US EPA eGRID factors (electricity) or in-country equivalent or the best estimate for international sites. All sites are under operational control.
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GHG Emissions Intensity (Scope 1 & Scope 2) (metric tons of CO2e/ton)***
Target
0.5

0.4

0.3

0.2

0.1

0

0.37

 

0.36

 

0.31

 
201620172021 Target
***Includes CO2, CH4, N2O, HFCs, PFCs, SF6, NF3.
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
Target
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

64%

 

76%

 

73%

 

80%

 

81%

 
20132014201520162017
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Significant Air Emissions (Kilograms)*****
Target
750000
675000
600000
525000
450000
375000
300000
225000
150000
75000
0

93,100

 

86,700

 

5,500

 

5,400

 

723,700

 

727,500

 

184,160****

 

190,280****

 
2016         2017
Nitrogen Oxides
(NOx)
2016         2017
Sulfur Oxides
(SOx)
2016         2017
Carbon Monoxide
(CO)
2016         2017
Volatile organic compounds
(VOC)
****Data not third-party assured.
*****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.