Jabil is keenly focused on reducing our energy consumption and driving reductions in our greenhouse gas (GHG) emissions. We are also committed to advancing a global strategy for energy efficiency across our enterprise to not only drive cost reductions and lighten our environmental footprint but also support our customers’ sustainability goals.
In Fiscal 2017, Jabil committed to achieving the following goals by the end of Fiscal 2018:
|Scope 1 emissions||35,425||37,079||38,690|
|Scope 2 emissions||1,182,783||1,273,395||1,392,147|
|Scope 3 emissions||39,390||25,901||27,353|
|Emissions intensity (Kg CO2e per US$1,000 sales***)||70.26||72.81||76.49|
|Energy intensity (kWh per US$1,000 sales***)||100.88||107.69||114.12|
* Due to data corrections after report publication, some figures may differ from those reported last year.
** Other fuels used may include gasoline/petrol, diesel, natural gas, liquefied petroleum gas, jet fuel and refrigerants.
*** Carbon-generating revenue includes intercompany transactions, which are excluded from revenue totals in the Form 10-K.
Through Jabil’s internal Energy Standard Initiative, we have conducted energy audits at our top 15 manufacturing sites based on annual energy spend. Following these assessments, Jabil implemented a total of 225 site-specific measures for energy efficiency. For example, we have implemented the use of new styles of hybrid electric and hydraulic machines in our factories that use far less energy. The findings from the 15 audits also enabled us to provide valuable guidance to our other 75+ sites and improve practices across our organization.
Jabil has a company-wide goal to reduce energy intensity at each Jabil site by 1 to 5 percent annually from a Fiscal 2015 baseline. In Fiscal 2017, 51 percent of our sites met our energy intensity target; however, due to growth in our energy-intensive diversified manufacturing segment, we did not meet this target enterprise-wide in Fiscal 2017. Jabil will continue to track against this goal through our Environmental Management System, while also increasing our organizational focus on the use of renewable energy.
Jabil’s “Factory of the Future” program is reimagining what Jabil’s factories will look like in the years ahead. Through investments in technologies that increase output, reduce inventory and use fewer resources through automation solutions, Factory of the Future sites are aspiring to reduce space and on-site power consumption. These changes will help Jabil to reduce our energy use per product, decrease our physical footprint and allow Jabil to better meet our customers’ needs.
Jabil recognizes the importance of renewable energy as a vital solution in mitigating the threat of climate change. Renewable energy adoption represents a significant part of not only our energy goals but also our customers’ sustainability goals. Many of our sites have already made the switch to using renewable energy solutions, and we are investigating how we can integrate more renewables both on a site-by-site basis and as part of a global strategy. For example:
In 2017, 100 percent of the energy in our Chengdu, China site came from renewable sources, including 61 percent from wind and 39 percent from hydroelectric. In Shanghai, solar panels on the roof of our facility generate roughly 1.5 MW of solar power annually, which, in Fiscal 2017, translated to an avoidance of about 1,102 metric tons of GHG emissions and a savings of approximately US$148,000. As Jabil considers ways to reduce our environmental footprint in China even further, we are working closely with our customers to see how we can align our efforts with their own sustainability strategies to secure maximum impact.
In addition to our own internal operational commitments to use renewable energy, Jabil is also directly supporting and enabling the rapid uptake and adoption of renewable energy solutions in the global market. As a proactive solutions partner with the world’s leading energy companies, Jabil is helping to make renewable energy more efficient, more effective and more price competitive with fossil fuels. From pitch control systems, power converters and nacelles in wind energy production to smart electric vehicle chargers, and many innovations in between, we are working closely with our customers to build a sustainable future. For example, we are jointly redesigning products for improved form-fit function, including making products lighter, smaller and more efficient in energy transmission. We are also implementing better engineering and manufacturing processes, improving components and making them easier to assemble and deliver to end users. These enhancements are translating to lower costs at every stage, enabling a faster transition to a clean energy economy and a low carbon future.
Jabil has over 10 years of experience designing, manufacturing and distributing components used in solar energy production, including inverters and other balance-of-solution components that support the functioning of photovoltaic panels. As of Fiscal 2017, Jabil components are used in the production of approximately 8.5 GW of solar energy around the world.
We are also delivering technological solutions to leading brands in the Smart Grid industry, which is driving resource conservation efforts and renewable energy uptake. Smart meters reduce resource consumption by giving users greater control over their energy and water use. Currently, more than 150 million Jabil-manufactured smart meters are operating in the world. Put another way, approximately 50 percent of smart meters worldwide contain Jabil manufactured electronics.
For over 13 years, Jabil has manufactured control systems, power converters and other high-level assembly components for the world’s leading brands in wind energy production. Our components are used in the generation and controls of more than 25,000 wind installations operating in the world today, producing approximately 50,000 MW of clean renewable energy (based on an average 2 MW machine). From construction and certification to production and testing, we are bringing clean wind energy to market by helping our wind energy customers mitigate risk and solve complex manufacturing and supply chain challenges.