INDUSTRIAL TECHNOLOGIES PROGRAM

Nissan Showcases the Results of an Energy-Wise Corporate Culture Nissan, a global automotive giant, showcases the importance of instilling a deep-rooted, company-wide culture of energy efficiency for achieving long-term success in energy management. Nissan’s emphasis on “aggressive learning” encourages its staff to challenge themselves Nissan’s commitment to smart energy “Working to manage our energy to always be the best at what they do— management goes well beyond bringing use is just good business. By including managing plant energy use. its cutting-edge electric car, the Nissan increasing our energy efficiency, LEAF™ to the market—it starts at Part of Nissan’s recipe for success in energy we use resources wisely, save the top with corporate leaders who are management is the company’s strong money on our energy bills, and true environmental champions and partnership with government agencies, reduce our carbon footprint. This have nurtured an energy-wise culture regional coalitions and nonprofit groups that approach aids in our quest to be a that flows throughout the company’s support energy efficiency. Nissan is a proud sustainable 21st century three U.S. manufacturing facilities to partner of both Environmental Protection manufacturer.” improve their technologies, operations, Agency’s ENERGY STAR® program and processes. In partnership with the and the U.S. Department of Energy’s - Mike Clemmer, Director/Plant U.S. Department of Energy’s Industrial (DOE’s) Industrial Technology Program Manager of Paint and Plastics Technologies Program, Nissan has (ITP). The ENERGY STAR program and Sub-Leader for the Energy gainfully implemented a highly offers multiple energy management tools Management Team productive energy management program and communications support resources. that has yielded reduction in energy usage Benchmarking tools also help participating even as the production scheduling has companies identify how various aspects of their energy management program are provided a unique set of challenges. performing against peer industries. ITP, in turn, facilitates the implementation of energy efficiency improvements through a variety of tools, training, and technical and The Company financial resources. Further, Nissan leverages both ENERY STAR and ITP’s resources Nissan Motor Company was founded in to forge relationships with other leading companies so it can share ideas and help these 1933 with its first manufacturing location companies meet their goals for energy reduction.3 \ in Japan. It now has 16 sites worldwide and employs 180,000 staff members Partnership with ITP 1 across the globe. Nissan North America Nissan has a long history of partnering with ITP. Its three U.S. manufacturing plants has three production plants—the Smyrna have received a combined total of nine Energy Savings Assessments from ITP and Decherd facilities in Tennessee and in conjunction with the Oak Ridge National Laboratory, and the Tennessee Tech 2 a third location in Canton, Mississippi . University and Mississippi State University Industrial Assessment Centers. These These three U.S. facilities will be the assessments yielded recommendations for a variety of energy savings projects. focus of this case study. Implementation of several of the recommended projects has enabled the plants to reduce their overall energy consumption by more than 30% and save more than $11.5 million The corporate leadership in Nissan’s per year in energy costs. These energy savings projects included the following: U.S. plants has established the mindsets and actions necessary for continuous • Installed variable-frequency drives • Upgraded and replaced chillers improvements within the company. No • Upgraded lighting and controls matter what goals the company may • Reduced number of air compressors reach or how many awards it wins, • Sub-metering & monitoring • Air recirculation

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In its continual quest for energy 2010. While underscoring ITP’s extensive working group—an appropriate choice efficiency improvement, Nissan became support to companies in implementing as that segment of the automotive a Save Energy Now LEADER in October energy efficiency projects, the event manufacturing process typically 2009, pledging to reduce its energy showcased Nissan’s energy management consumes 70% of the energy used in intensity by 2.5% annually. Nissan also best practices to more than 100 attendees. production. The founding members of became the first company to host the These included other LEADER the Energy Management Team were Save Energy Now LEADER Industrial Companies, DOE and state-level officials, given the choice to build the best team Sustainability and Energy Management university representatives, and personnel they could by hand selecting the right Showcase at its Smyrna facility in April from Oak Ridge National Laboratory. employees to fill the additional roles. Attendees also received a tour of the plant floor and demonstration of several The team started by addressing no-cost energy efficiency and sustainability operational improvements like turning Nissan’s Energy Efficiency projects that have been implemented by off anything they could when it wasn’t Showcase: Smyrna Plant, Nissan and have generated significant needed during weekends or between Tennessee financial and environmental benefits. shifts. In the first year, the Energy Management Team saved 11.4% in Nissan’s Smyrna, Tennessee, plant absolute energy usage. In 2007, they were opened in 1983. The first vehicle the Cultivating a Culture tasked with trimming another 30% over facility produced was the Datsun of Energy Efficiency the next four years—a goal they achieved truck. The plant has since grown to What makes Nissan’s approach to energy by the end of 2008, shortly before the occupy close to 6 million square feet of efficiency notable is it’s all out emphasis floor space with an annual production economic downturn began. on creating and maintaining a corporate- capacity of 550,000 vehicles per year, Responsibility for the energy budget falls as of 2010. wide culture of energy efficiency. To this end, Nissan developed its energy program on each plant’s director. This not only • Since 2007, the facility has in 2006. The energy management team supports the development of an energy undergone three Energy Savings was one of 10 cross-functional teams culture at the plant level but also implies Assessments. created by the newly-appointed Nissan that the person who is responsible for • In 2010, the facility received a $1.4 North America Senior Vice President Bill decisions on the shop floor is deeply billion loan from the DOE Loan Krueger. Mr. Krueger took his post with attuned to the importance of energy use. Guarantee Program to retrofit the a major goal in mind – to empower all of As they see and become aware of projects plant for producing the zero- Nissan’s employees to take responsibility and opportunities for energy savings, an emission, electric NISSAN LEAF®. for the future of the company and to drive empowered choice or decision can be • Production of the NISSAN LEAF® is its competitiveness in the marketplace. made with limited delay for approval. expected to create up to 1,300 jobs. The team’s success is based on • In 2010, Nissan North America was The Energy Management Team named ENERGY STAR® Partner of Initially dubbed “Manufacturing transparent, data-driven systems. Each the Year. The facility has received Competitiveness Teams” or MCTs, the of Nissan’s plants has energy meters that multiple ENERGY STAR awards and Energy Management Team was the measure the facilities’ usage and over is a distinguished ENERGY STAR first of the new cross-functional teams time, their progress toward efficiency labeled facility. established. Mr. Krueger appointed the goals. Nissan’s measurement and paint plant director as the head of this verification (M&V) system takes a broad continued > PROGRAM NAME 3

approach to data gathering on a variety of processes, including lighting, space temps, production equipment and hourly utilities monitoring. Seeing the results of their efforts motivates employees and has raised awareness of the team company- wide. The Energy Management Team regularly has a waiting list of employees volunteering to serve on the team, but with this energy culture, everyone has the opportunity to participate.

“Employees are encouraged to Nissan 2010 Employee Earth Day Fair internalize sustainability at a bring unique perspectives and value to newsletters, scrolling messages on personal level, at home and in their the process. The Energy Management TVs located in break areas, as well as community, so they come to the Team is made up of personnel from presentations in company meetings. workforce with a new perspective manufacturing, engineering, legal, Utilizing more than one communication and new vision.” environmental, finance and other method allows employees to take in operational roles. Nissan thus effectively the information through their preferred - Susan Brennan propagates a corporate-wide culture of method, increasing the chances of Vice President, energy efficiency – driven by the top retention and implementation. In Smyrna & Decherd Facilities management and implemented at the addition, Nissan has established plant level. internal certificates and awards to provide recognition to high-performing This model’s value is reiterated by NNA’s employees from each plant. Onsite Energy Team Facilitator, Ken Roden: Top-Down / Bottom-Up Approach contractors and security personnel also “Creating an energy culture at Nissan Nissan’s strong corporate leadership is help prevent and minimize energy waste starts with corporate management that a driving factor in creating the type of during weekends and holidays. With embraces an environment for change. energy-conscience culture that has made the full support of employees from the Our executive leaders promote a learning it so successful. bottom-up, Nissan’s culture of energy attitude in an environment where efficiency is firmly in place. Mr. Krueger has maintained considerable employees are encouraged and motivated involvement on energy matters, in to change, challenge mindsets, and think Taking the Culture Beyond addition to all of his other significant ‘outside the box’.” the Plant Walls responsibilities. Despite his busy Nissan employees are not only schedule, Mr. Krueger took the time Engaging Employees in encouraged to practice good energy to participate in Nissan’s LEADER Energy Efficiency management at work, but they are also showcase and shared his corporate Employee engagement is something that encouraged to incorporate it into every vision with other peer and competitor many companies strive to achieve but can part of their lives. This tactic, known companies, such as Ford and Hyundai, oftentimes prove elusive. In this regard, as Behavioral Based Sustainability, who had representatives in attendance. Nissan’s strategy was simple – consider reinforces good habits and also helps His active involvement reinforces what it is that employees want and how to spur other ways of thinking about the continued emphasis on Nissan’s they perceive the actions of management. and addressing energy problems. It is culture of energy efficiency, and his To that end, the Energy Management a circular process where employees enthusiasm helps prompt the team to Team, with the support of Mr. Krueger have the tools to be environmentally keep challenging them to innovate in new and other corporate leaders, took the time conscious at work and are encouraged ways. to explain the company’s energy goals to further develop those best practices and how improved efficiency would in their homes and communities to help At the core of Mr. Krueger’s vision is a eliminate waste and make jobs more them think about their work in a more bottom-up approach. From the beginning, secure. sustainable way.5 he wanted the cross-functional teams to be comprised of a variety of people Nissan communicates to its employees Nissan holds Energy and Earth Day who were responsible for the day-to-day through multiple channels, including fairs each year, which showcase operations of the company and who could e-mail, company intranet, monthly outside experts offering solutions and

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demonstrating products that help remove Conclusion barriers to smart energy efficiency The economic downturn has been detrimental to companies across all sectors and decisions that employees make as countries. However, Nissan North America has relied on its history of innovative customers. Fall 2010 will also provide an thinking and willingness to take on tough tasks to maintain a strong business model opportunity for Nissan’s second annual that reaches into the future to do more than just sustain the company, but to also help Supplier Energy Conference. At this it grow. Through the downturn, the Energy Management Team has focused on driving event, Nissan’s supply chain partners will fixed energy usage to variable energy usage. As Ken Roden explained, “a large plant be onsite to provide energy efficiency design can operate at larger volumes more efficiently, but the equation changes when information and resources to assist you have a large plant operating at low volumes with the same fixed usage.”8 Nissan employees in making energy efficiency undertook the daunting task of making its energy consumption optimized at variable improvements. production rates. To do this, they had to clearly define the fixed and variable usages Further, to promote its energy and within the plants and develop a more accurate method to predict or forecast usage at environmental programs to employees ever-changing production operating patterns. Next was to examine and segment each and visitors alike, Nissan makes use area of the production process and even shift schedules whenever possible. In the of plant signage, media resources and end, Nissan has put its North American production facilities in a place of strength and has begun incorporating the energy stability—ready to take on whatever economic and energy challenges come their way. management program into their public All of this is made possible because of the corporate-wide culture of energy efficiency plant tours.6 that Nissan has been able to foster. The Nissan showcase demonstrated the extensive benefits and success that can be Employee Ownership: accomplished by any company from growing a company culture of good energy Sustainability Project management practices, combined with support from ITP. Nissan is working on a project dubbed the 21st Century Sustainable Manufacturing Endnotes Project. The project is being led by Susan 1 Brennan, a vice president of Nissan’s Nissan Motor Company Global Website. http://www.nissan-global.com/EN/COMPANY/ two Tennessee plants. The goal of the PROFILE/. Accessed May 19, 2010. project is to make Nissan’s facilities as 2 Nissan in North America - Nissan USA. http://www.nissanusa.com/about/corporate-info/ green as they can be and to further drive nissan-in-north-america.html. Accessed May 28, 2010. the energy culture by making its products 3 and processes sustainable. This program Discussion with Ken Roden on May 18, 2010. compliments and builds on Nissan’s 4 Wade Royal, “Smyrna Paint Plant Energy Reduction Strategy Presentation.” http://www1.eere. shop floor management, employee energy.gov/industry/saveenergynow/pdfs/smyrna_paint_plant_energy_reducation_strategy. engagement and safety awareness pdf. Accessed May 28, 2010. programs. With coordination between the 5 Brennan, Susan. “Nissan: 21st Century Sustainable Manufacturing Presentation.” Sustainable Manufacturing project and the Energy Management Team, a pilot http://www1.eere.energy.gov/industry/saveenergynow/pdfs/nissan_sustainability_ program has been modeled to include showcase_21st_century_sustainable_manufacturing.pdf. Accessed May 28, 2010. an Environmental representative, or 6 E-mail follow-up from Ken Roden on May 18, 2010. Green Team member, from each work 7 Discussion with Ken Roden on May 18, 2010. group. Similar representation exists and has proven effective with Nissan’s 8 Discussion with Ken Roden on May 18, 2010. safety awareness program. Through this initiative, Nissan is able to offer yet another opportunity to engage its employees in energy and environment efforts.

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