Case Study: Factory in West Java Reduced Emissions by 40% in 18 Months
Case Study: Factory in West Java Reduced Emissions by 40% in 18 Months
A mid-sized automotive component manufacturer in Bekasi, West Java, faced rising energy costs, regulatory pressure, and customer demands for greener supply chains. By integrating ISO 14001 with Industry 4.0 technologies, the company achieved a remarkable 40% reduction in CO₂ emissions within just 18 months — all while cutting operational costs.
🏭 The Challenge: High Energy Use, Low Visibility
The factory, operating 24/7 with 350 employees, relied on diesel generators during peak hours and had no real-time monitoring of energy or emissions. Key issues included:
- No sub-metering — only one main utility meter for the entire site
- Manual record-keeping led to delayed insights
- Compressed air leaks and idle equipment caused hidden waste
- Struggling to meet customer ESG requirements
With Indonesia’s Ministry of Environment pushing for stronger corporate climate action, leadership knew they needed a strategic solution — not just a compliance exercise.
🔧 The Solution: Integrating ISO 14001 with Smart Technology
Rather than treat ISO 14001 as a paperwork system, the team used it as a governance framework to drive digital transformation. Their approach followed the PDCA cycle and aligned with best practices from your effiqiso.com roadmap.
1. Plan: Conduct Energy Review & Set Targets (ISO 14001 Clause 6)
They began with a comprehensive energy review to identify Significant Energy Uses (SEUs):
- Production lines (CNC machining, stamping)
- Compressed air system (largest energy consumer)
- HVAC and lighting in assembly zones
Using historical utility bills and process mapping, they set a clear target:
2. Do: Deploy IoT Sensors & Cloud EMIS
In partnership with a local IIoT provider, they installed:
- Wireless power meters on 12 key machines
- Air flow sensors on compressed air lines
- Temperature/humidity sensors in HVAC zones
All data was fed into a cloud-based Energy Management Information System (EMIS) that integrated with their existing ERP. The platform provided:
- Real-time dashboards per production line
- Automated alerts for abnormal consumption
- Historical trend analysis and reporting
This directly supported ISO 14001 Clause 9.1 (Monitoring & Measurement) and laid the foundation for credible M&V (Measurement & Verification).
3. Check: Establish EnPIs & Baselines (ISO 50006 + ISO 14001)
They defined Energy Performance Indicators (EnPIs) such as:
- kWh per unit produced
- Specific energy consumption (SEC) for compressors
- CO₂e per shift
Using multivariable regression (factoring in production volume and ambient temperature), they established robust baselines — aligning with ISO 50015 and IPMVP Option C.
4. Act: Targeted Improvements & Continuous Optimization
Data revealed several high-impact opportunities:
- Compressed Air Leaks: Fixed 18 leaks, reducing system load by 22%
- Idle Loads: Automated shutdown of non-critical equipment during breaks
- Diesel Generator Use: Shifted non-urgent work to off-peak hours, cutting generator runtime by 60%
- HVAC Scheduling: Optimized based on occupancy and weather forecasts
Improvement actions were logged in the EMIS and linked to corrective actions under ISO 14001 Clause 10.2.
📊 Results After 18 Months
| Metric | Before | After | Improvement |
|---|---|---|---|
| Annual CO₂ Emissions | 4,850 tCO₂e | 2,910 tCO₂e | ↓ 40% |
| Energy Cost per Unit | IDR 1,850 | IDR 1,220 | ↓ 34% |
| Compressed Air Waste | 32% | 9% | ↓ 72% |
| Annual Cost Savings | - | $310,000 | ROI: 2.1 years |
The project also strengthened their QHSE culture:
- Monthly "SEU Clinics" became part of management reviews
- Operators engaged in identifying quick wins
- Successfully passed ISO 14001 surveillance audit with zero major NCs
🔑 Key Success Factors
- Leadership Commitment: CEO tied energy goals to bonus structure.
- Start with SEUs: Focused first on high-impact areas, not whole-site perfection.
- Use Open Protocols: OPC UA and Modbus ensured interoperability across vendors.
- Integrate with ISO 50001 Principles: Even without certification, they applied EnPIs, EnBs, and M&V rigorously.
- Cybersecurity by Design: Network segmentation and MFA protected OT/IT convergence.
🎯 Final Thoughts: A Model for Indonesian Industry
This case study shows that deep decarbonization is achievable even in cost-sensitive, high-growth environments like Indonesia.
By combining the structured approach of ISO 14001 with affordable IIoT solutions and cloud analytics, SMEs and large factories alike can:
- Reduce emissions and energy costs simultaneously
- Meet global ESG expectations
- Improve operational resilience
- Turn sustainability into competitive advantage
And as ISO 14001:2024 approaches with stronger climate resilience requirements, now is the time to build systems that are not just compliant — but intelligent, adaptive, and future-ready.
📥 Download: Free SEU Assessment Checklist (Based on effiqiso.com Framework)