A few years ago, GE began looking at resource-efficiency initiatives within our supplier community. Launched in 2014, the Green Supplier Initiative was developed in partnership with Ernst & Young (EY) and the Lawrence Berkeley National Laboratory (LBNL). Since then, the team has taken a deep look into GE’s China supplier database, and identified three supplier sites with which to pilot the initiative.
The Green Supplier Initiative (GSI) is aimed at advancing the Energy Performance Contracting (EPC) market by bringing energy service companies (ESCOs), suppliers and financiers together with industrial facilities to provide those facilities with integrated retrofit solutions. At a high level, it brings together industry players and governments in China and the U.S. to create win-win opportunities led by GE. The projects leverage the GE Store, using GE Ecomagination technologies, big-data analytical capabilities, and financing solutions to help China’s government achieve its energy and environmental targets. The initiative also opens and expands markets that improve supplier business and environmental performance to enable corporations to realize their sustainability and growth goals simultaneously.
In one pilot with Tongyu Heavy Industry Co., the GE-led team will implement an energy management system, efficient lighting, water savings and distributed rooftop solar power generation on Tongyu Heavy Industry Co., Ltd’s property, to achieve, on average, 23% savings across affected systems, yielding a net reduction of 9,865 tons of coal equivalent in annual energy use. In other partnerships with Anhui Yingliu, Inc., and Kocel Machinery Co., Ltd., the team is expecting to see energy savings of 22.5% and 21.7%, respectively. If the pilots are successful, this model can be replicated with other suppliers outside of China.
“China’s government is taking steps to reform regulation and strengthen controls during this economic transition, and China’s whole society recognizes the need to cut pollution, increase energy efficiency, and protect the environment. Thanks to GE for launching GSI in our company.” – Jifeng LIANG, GM, Tongyu Heavy Industry Group
At the 7th U.S.-China Energy Efficiency Forum, in Beijing, China’s National Development and Reform Commission (NDRC) and the U.S. Department of Energy (DOE) recognized the GE-led project with Tongyu Heavy Industry Co., Ltd., and GE’s partnership with Ningbo Harmony as models for how partnerships between U.S. and Chinese companies can boost energy efficiency and reduce greenhouse gas emissions in buildings in China.
Read the press release from the U.S. Department of Energy here.
In early 2017, after a rigorous selection process involving over 70 candidates and spanning eight months, GE was recognized with the “Star of Green Supply Chain” award. The award was a feature of the 2016 Shanghai 100+ Enterprises in Green Supply Chain Program, launched jointly by China’s Ministry of Environmental Protection (MEP) and the ASEAN Environmental Cooperation Center, Shanghai Environmental Protection Bureau, Shanghai Commission of Commerce, Shanghai Environmental Science & Technology Institute, Shanghai Foreign Investment Association, and U.S. Environmental Protection Agency.
We believe that working with suppliers will enable us to identify projects that, consistent with the Ecomagination mission, will have both operational and environmental benefits while building stronger relationships and reducing our supply chain costs. GSI has provided compelling insights into the opportunities and challenges of engaging with our suppliers. Most importantly, given the size and complexity of GE’s supply chain, the program is helping us find ways to prioritize our actions and enable meaningful partnerships.