Novelis Sustainability Report 2013

In 2011, Novelis decided to strengthen their company by increasing their business’ sustainability and innovation. The most important component of their new vision is to use 80% recycled aluminum in all their products by 2020. Once they reach this goal, they will then halve their products’ embedded carbon.

In 2011, when Novelis set their intended goals, they used the average of fiscal years 2007-2009 as their standard. Some of their 2020 goals include:

  • Increase recycled metal content from the current 43% to 80%
  • Reduce energy usage by 39%, from the current 10 GJ/mt to 7.6
  • Reduce water usage by 25%, from the current 3.1 m3/mt to 2.7
  • Halve the absolute amount of GHG emissions, from the current 18 M mt to 11
  • Have zero landfill waste from the current 55.6 K mt

While the company is headquartered in Atlanta, George, there are also facilities in Sao Paulo, Zurich and Seoul, serving the beverage can, automotive and high-end specialty markets. There is a rising demand for aluminum in these markets, especially the automobile industry, since 2010 when Obama obligated car manufacturers to double their new-car average fuel economy by 2025. In 2013, the aluminum industry grew 25%, as aluminum allows for lightweighting vehicles, a crucial enabler in increasing fuel efficiency.

As mentioned before, another huge element of Novelis’ move to increase sustainability is to reduce the embedded carbon in their products, which can be done by boosting recycled content. By using more recycled materials and by creating fewer new materials, Novelis reduces their carbon footprint. They’ve recently invested almost $500 million in doubling their recycling space by opening two new recycling plants, one in South Korea and the other in Germany.

Novelis is directly addressing the global issue of climate change, particularly the current concern of the maximum safe limit for concentration of carbon dioxide in the Earth’s atmosphere. The company’s method to decrease their GHG emissions can best be described as a life cycle approach, with a goal of reducing their emissions by 50% by 2020. This idea, coupled with increasing their recycled metal content to 80%, will help them reach their target.

Novelis has also incorporated supporting recycling education into their new vision, as well as advocating awareness and policy initiatives, which will escalate recycling rates and increase the company’s supply of post-consumer aluminum scrap. We at Phinix are huge proponents of all of the above, especially recycling education.

Take a look at Novelis’ website and the full report.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

January 28, 2014

Phinix LLC

Copyright 2013. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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“Greenhouse-Gas Fight Escalates” – Wall Street Journal, 2 September 2013

The Obama Administration is seeking to increase prices on greenhouse gas (GHG) emissions, a move that has inevitably stirred up trouble in Congress, causing Congress to introduce new legislation.

In May, the DOE publicized estimates of how much a ton of carbon dioxide emissions costs the US — the estimate in 2010 dollars was $21, a decrease from the 2007 estimate, which was $36 per ton.

Carbon dioxide emissions fell out of demand, and prices plummeted, between those years because the administration did not lawfully require companies to buy CO2 stock. But Obama has found that those estimates are significant because the pricier carbon pollution becomes, the greater impact it can have on both the US environment and economy. The EPA is planning to introduce additional, similar regulations, which also include limits for new power plants.

This August, House Republicans passed a bill, prohibiting the use of those estimates; House Republicans would rather have Congress price out estimates, rather than the administration.

Energy Secretary Ernest Moniz has concluded that the 2007 $36 estimate is similar, or lower, than estimates used by major oil companies. Exxon Mobil Corp, for instance, has priced carbon dioxide emissions at $80 per ton by 2040, while BP currently prices carbon at $40 per ton.

The great assumption behind placing a price tag on carbon emissions is that climate change is rapidly developing, and that more CO2 in the atmosphere will give way to more natural disasters and growing sea levels. The Bush Administration was also moving to price carbon emissions, though unsuccessful. The Obama Administration has employed many computer economic models in order to ascertain current estimates, though such estimates are not trusted by all. A $36/ton estimate could surely lead to stricter regulations on coal-fired power plants, meaning higher electricity costs for consumers.

Yale economics professor William Nordhaus is the innovator behind the best-known climate change model. While numerous scientists have tried to deny the fact that climate change exists, Nordhaus, though “no climate hawk”, continues to present key facts as to why it is important that CO2 emissions be regulated. Read more here.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

September 13, 2013

Phinix LLC

Copyright 2013. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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“A Clean Car Boom” – New York Times, 11 August 2013

Sales of hybrid and electric cars are growing faster than expected, mostly due to cutting edge technologies and helpful government policy.

Twenty-eight percent of the US’s greenhouse gas (GHG) emissions derive from transportation, second to power plant emissions. Wider use of fuel-efficient cars has already curbed the 2005-2012 carbon dioxide emission rates by 16%.

In the first seven months of 2013, car manufacturers sold over 350,000 hybrid and electric cars, a 30% gain in sales from the same time, the first seven months, in 2012. Hybrid and electric cars are classified as light vehicles; and although they only comprise 4% of that classification, they have become very mainstream and accessible to the public. The Toyota Prius is the most popular hybrid car, and one of the 10 best-selling cars in America.

Unlike hybrids, electric cars are still a fairly specialized product, more often purchased by wealthier buyers. However, federal and state tax rebates are boosting sales by giving more people the opportunity to buy electric cars. Tesla Motors manufactures the best selling electric car, the Model S; other companies like BMW and Cadillac are following suit.

The federal government’s 2010 mandate that obligates car manufacturers to double new-car average fuel economy by 2025 has propelled the car industry to produce more fuel efficient cars at a faster rate; Obama’s loan guarantees to renewable energy and electric car companies have also accelerated car manufacturers’ timelines. Tesla has made enough money from its hybrid and electric cars to pay off its $465 million loan, nine years early.

Read our previous entry on fuel efficient trucks, GM planning strict diet for new pickup trucks.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

August 30, 2013

Phinix LLC

Copyright 2013. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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“US Sees Boom in Global Energy Use” – Wall Street Journal, 26 July 2013

A recent report by the Department of Energy (DOE) states that, in the future, the world’s use of every kind of energy will escalate, including renewable energy. The report also indicates that China and India’s growing economies will be large factors in increased consumption.

By 2040, global use of energy — mainly for electricity and transportation needs — will skyrocket by 56%, half of that energy being used by India and China. At the same time, global economic growth will boost demand for renewable energies, such as wind and solar power; however, fossil fuels — oil, coal and natural gas — will reign supreme, and remain the world’s preferred energy sources. By the end of 2040, these fossil fuels will constitute 80% of world energy use.

The DOE’s report also projects that worldwide use of renewable energy will accelerate, becoming the fastest flourishing source of global electricity production, spurred by a large growth in hydroelectric dams and wind farms.

New technologies for fracking have allowed consumption of natural gas to surge, surpassing the use of oil and coal, while also allowing for more energy efficiency and energy independence in the US. Yet, burning more fossil fuels will release more carbon dioxide – the most common greenhouse gas that has been connected to climate change – emissions into the atmosphere. By 2040, emissions are predicted to increase by 46%.

Development of new energy sources with cost, environmental and abundance efficiency will be the greatest innovation that world is anxiously waiting for, and needs.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

August 1, 2013

Phinix LLC

Copyright 2013. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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