Asset-intensive organisations are becoming increasingly aware of the part they must take in addressing the global drive towards net-zero.
“There is a narrow window of opportunity to use digital transformation and exploit available data to embed a culture, processes and technology that will embrace change and accelerate the solution to the climate crisis.”
George Westerman, Sloan School of Management, MIT.
Increasing pressures to meet Environmental, Social and Governance (ESG) criteria are pushing sustainability and carbon reduction measures higher up the agenda. Whilst our previous blog explained how the right technology can address Governance criteria, in this blog, we explain how Enterprise Asset Management (EAM) coupled with AI technology can help organisations to achieve their net-zero targets.
1. Maintaining assets to improve energy efficiency
Keeping an asset well maintained should help it to perform efficiently, minimising energy consumption and unnecessary wastage. Employing innovative technology to support Asset Performance Management (APM) strategies can ensure your assets perform optimally. Following the initial installation, performance data can be collected from sensors on critical assets; this data can then be used to make informed maintenance and operational decisions.
Real-time data collection offers organisations the opportunity to maximise their asset efficiency by monitoring asset condition, output and performance as it happens. This IoT and SCADA data can be analysed using innovative artificial intelligence (AI) and machine learning technology to make predictions and decisions that prevent or ameliorate asset performance issues before they start – ensuring all assets are kept running at their optimum capacity.
Employing predictive maintenance strategies should reduce unnecessary maintenance and the wasteful use of replacement materials and parts needed to perform the maintenance job.
On-asset sensors can specifically monitor WAGES – water, air, gas, electricity and steam usage. EAM coupled with analytics tools can identify and record anomalies in WAGES, highlighting an issue with an asset’s performance that may need addressing. If necessary, this can trigger an asset inspection work order to assess whether the asset requires maintenance.
2. Asset Investment Planning (AIP)
There’s a delicate balance between continuing to maintain an existing asset at a cost to the environment or replacing it with a newer, more energy-efficient model. When purchasing a new asset, you also need to consider the impact on the environment that the production and shipping of that new asset will incur. Asset Investment Planning integrated with Asset Performance Management can help you assess which assets to invest in and whether you should opt to repair, refurbish or replace.
3. Waste reduction
Incorrect inventory management can seriously affect the sustainability of your asset management. A central real-time view of inventory across all locations and stores can avoid unnecessary purchases of materials, parts or equipment that you already have in stock. It also identifies where you may run the risk of running short on essential items and experiencing downtime as you wait for a key part. EAM systems offer inventory management that can help you plan and purchase stock in the right quantities at the right time.
4. Energy scoring your assets
Scoring your assets on their green credentials, e.g. WAGES and CO2 emissions, can help you to rank your assets against ESG (environment, social and governance) criteria. Infor recommends determining your energy efficiency through their developed index, the GAS, or Global Asset Sustainability index. By applying sensors to assets, you can monitor more variables that affect energy consumption, including:
- consumption data
- leakage information
- supplier asset information (see point 5.)
AI and machine learning tools can identify patterns in asset usage and external factors which are having a negative impact on these scores – asset managers can then identify what measures can be taken to alleviate these issues.
5. Addressing the environmental impact of your supply chain
Procurement teams can use EAM to factor in carbon credentials when selecting a preferred supplier. This approach can help ensure your environmental targets are met both within and outside the organisation across your supply chain.
As part of introducing an ESG strategy, it is essential to conduct energy audits, not just on your organisation but also on your full supply chain. You can reduce the environmental impact of your supply chain by conducting a detailed environmental impact review of each business in your chain, scoring them on factors such as energy wastage and water usage, reuse and recycling.
Procurement teams can use this information as part of negotiations with your suppliers. You can highlight issues you have identified and where you would like to see improvements as you work together towards meeting your net-zero targets. You may encourage suppliers to gain recognised environmental certifications such as ISO 50001.
Investor-led environmental concerns are becoming a significant part of commercial discussions in asset-intensive organisations such as energy, mining, utilities and transportation. HxGN EAM (formerly Infor EAM), alongside Hexagon’s AI and analytics tools, can help better monitor and improve your energy efficiencies, which will have a knock-on effect for your bottom line, your environmental score and your reputation. The Hexagon technology suite can help you develop a richer understanding of energy management and develop actions to help the environment. Talk to Progressive TSL about implementing an EAM solution to address your net-zero targets.
For more insight on the subject from our partners for HxGN EAM (formerly Infor EAM) , please watch this great video presented by Bas Beemsterboer ‘Should Energy Monitoring be a part of your Asset Management Strategy? How an Asset Performance Management Platform Underpins Global Asset Sustainability‘. This was first presented at the Institute of Asset Management Conference in July 2021.