1. Environment
  2. Energy and Emissions

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.

By investing in renewable energy sources, Jabil is balancing its impact on the environment while saving costs.

 

In Fiscal 2017, Jabil committed to achieving the following goals by the end of Fiscal 2018: 

  • Reduce our energy spend by 5 percent year over year. This includes delivering 500 million kWh of energy from renewable sources and achieving 50 percent energy utilization from renewable energy.
  • Reduce our GHG gas emissions by 10 percent below our Fiscal 2015 baseline. 
  • Establish science-based carbon emission goals and set an internal carbon price. This includes undertaking a series of carbon footprint baseline analyses by facility.

Energy Use (MWh)

(fiscal years) 2015* 2016* 2017
Electricity 1,622,819 1,761,393 1,942,223
Fuel 95,219 125,423 141,587
Steam 51,207 55,732 56,761
Other** 36,423 33,902 34,825
Total 1,805,668 1,976,450 2,175,396

Greenhouse Gas Emissions (metric tons CO2e)

(fiscal years) 2015* 2016* 2017
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
Total 1,257,598 1,336,375 1,458,190

Emissions and Energy Intensity

(fiscal years) 2015* 2016* 2017
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.

Energy Efficiency

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.

     

Smart Growth with Factory of the Future

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.

Certain types of manufacturing processes at Jabil already include automated solutions.

     

Renewable Energy

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:

  • Jabil Mebane in North Carolina has been harvesting wind and solar energy for its operations and generating associated cost savings since 2010. 
  • Jabil Venray in the Netherlands uses nearly 100 percent hydroelectric power for its operations. 
  • Jabil Tiszaújváros in Hungary generates solar power on-site and conserves energy through waste heat recovery, solar radiators, heat pumping and use of geothermal energy, equivalent to a total of 350 KW of power. 
  • Jabil Waterford in Ireland started using wind power in November 2017.

Jabil’s Commitment to Clean Energy in China 

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.

CASE STUDY

Committing to 100% Renewable Energy with Apple

Partnering with customers to increase impact is central to our sustainability strategy. In Fiscal 2017, Jabil announced our commitment to power 100 percent of our Apple-related manufacturing operations with renewable energy by the end of 2018. Jabil was among the earliest Apple suppliers across its entire supply chain to make this bold commitment as part of Apple’s Supplier Clean Energy Program.

Our energy transition in China is expected to convert more than 1 billion kWh of electricity to renewable energy and save 700,000 metric tons of GHG emissions per year. Our commitment covers eight Jabil sites in China. As of the end of 2017, we have achieved nearly 70 percent of our clean energy goal by purchasing 650 million kWh of solar and wind energy through power purchase agreements and other off-grid solutions in the local provinces where we operate. Our sites in Wuxi have now achieved 100 percent renewable energy use as of the end of 2017.

Partnering for Environmental Impact

 

Bringing Renewable Energy to Market

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.

     

Soaring toward Wind Energy Success

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.