Energy & Culture

Spotlight – ESG Planning and Implementation for Auto Parts Manufacturer

Written by 5 | April 20, 2021

A large global auto parts manufacturer, with multiple facilities across the country, was looking for assistance in developing a comprehensive approach to managing its electricity and natural expenses. Prior to working with 5, this Fortune 200 company was waiting until their current contracts were getting ready to expire before gathering quotes and soliciting offers from various suppliers.

5 developed a comprehensive energy strategy that was more proactive and sensitive to their budgeting and purchasing process. 5 worked with this global manufacturer to analyze their energy usage across multiple facilities in the United States. This new strategy, which was implemented by 5 and the manufacturer’s purchasing team, carefully examined existing and projected usage patterns along with forward market prices in multiple markets. The result was a procurement strategy centered around making measured purchases and capitalizing on market corrections over time to lower energy expenses as opposed to waiting until the end of a given contract to make those purchases. In addition to procurement, 5 helped this client further reduce their energy costs through utility bill audits and by identifying power factor correction opportunities.

This global manufacturer has a strong interest in sustainability and reducing its carbon emissions. In addition to procurement, 5 has also helped this client to develop and implement a plan to meet its corporate sustainability and carbon neutrality goals for its facilities in North America. Specifically, 5’s strategy includes leveraging green tariffs, the developments of solar arrays, purchases of Renewable Energy Credits, Carbon Offsets, and renewable retail electricity contracts. This plan will enable 5’s client to meet its sustainability goals in a way that both lowers its energy costs and carbon footprint.

5 is privileged to work with this manufacturer and find ways that will help them to be more profitable and energy-efficient while producing a new generation of vehicles that will create less carbon.