This, says Andrew Liveris, is what has enabled Dow to reach goals, which he admits were considered unreachable when they were first set, back in 1995. "We didn't have the technology," he said, "but by establishing the signals within our own corporation and having that behind us, we discovered that amazing things can happen when you have the skills."

An Organization Aligned to Saving Energy

Dow's Energy Efficiency and Conservation Management System makes energy efficiency and conservation a normal part of everyday work processes. A well-defined, institutionalized structure drives the implementation of energy efficiency and conservation objectives at corporate, business, site and individual levels:

• Corporate -- Dow's Global Energy Efficiency and Conservation Leader oversees the overall energy management program, establishing and maintaining its management systems, work processes, energy accounting rules, performance tracking and reporting systems, overall results analysis and internal program effectiveness assessment program. He works with Energy Efficiency and Conservation Leaders in each of Dow's businesses and its largest sites to implement the global program.

• Business -- Dow's business is organized in 28 cross-geographic Business Groups focused on different product segments. Each of these groups has its own 10-year energy improvement plan as part of the overall business strategy and capital funding program. In each Group the Energy Efficiency and Conservation Management Program Leader is accountable for implementing and tracking progress of the energy improvement plan within their respective group.

• Site -- Dow's 13 largest energy-consuming sites, account for over 90 percent of energy usage. At these large, integrated sites there are numerous opportunities to improve energy flow and use between different production units as well as inside the units. Energy Teams at each site actively engage employees, subject matter experts, engineering and technology resources and external experts in energy efficiency
improvement projects across each site.

• Individual -- Energy efficiency is tracked in every Dow plant and is part of every engineer's education and every operator's training and is recognized as a component of competent business leadership. Energy efficiency targets are integrated into individual accountability and incentives, with bonuses for many individuals linked to the achievement of energy goals.

Systems for Tracking Progress

Every one of Dow's 120 Dow sites and 685 plants and facilities reports on its energy intensity. Steam, electricity, compressed air, fuel gas and all other forms of energy consumed in the production of Dow products are measured and converted into a total energy intensity measure for each plant. The energy performance of each plant is reviewed and analyzed on a quarterly basis.

Anyone within Dow can access this data on the intranet, viewing and comparing historical performance, progression trends, current quarter energy consumption, production, and energy intensity for a single plant, a whole site, a business group, a region or the entire Dow Corporation.

Businesses use this to benchmark their plants, estimate potential energy savings and develop long-range improvement plans.

A Proven Methodology

Dow has been using Six Sigma since 1999 as its corporate wide methodology to accelerate improvement in quality and productivity. The Six Sigma process of problem measurement, rigorous analysis, focused improvement (of the problem not the symptom) and controls to ensure that problems stay fixed is well suited to identifying and pursuing energy efficiency opportunities. The Six Sigma methodology is therefore the primary methodology used by technology centers and site energy teams to identify and correct inefficiencies, find optimum solutions to defects and establish control plans to sustain gains in energy efficiency. Key steps in the improvement cycle include:

• Identifying energy savings opportunities through business and technology reviews, benchmarking studies, audits and internal and external energy assessments

• Prioritizing projects on the basis of cost and energy efficiency, as part of the process of developing 10-year energy improvement plans

• Implementing improvements with funding secured within the Capital Funding Program and the Business Strategic Plan

• Tracking results through the Energy Measurement and Reporting System

• Reviewing and updating the Energy Improvement Plan and annual targets.

In addition, all new capital project work processes have to include formal energy reviews to ensure that design of new facilities and equipment is optimized.

However, Fred Moore, the Implementation Leader for Dow's Sustainability 2015 goal on Energy Efficiency, stresses that this system is not monolithic, nor does it imply that Dow knows it all when it comes to saving energy. He recalls how a Department of Energy assessor visiting one of their Texas City plants as part of the US government's "Save Energy Now" program noticed that two pumps were being used where one would do. After some discussion, the engineer in charge agreed to have a trial at turning off one pump. "To his amazement it worked," says Moore. "That one small step saved the company $230,000 per year." All in all, external advice from the "Save Energy Now" program has helped Dow identify 3.75 trillion Btus (1 BTU, or British Thermal Unit, equals 1055 joules) in potential energy savings valued at more than $30 million per year.