Integrating Sustainability into Material Management Practices
Published: 15 September 2021
Abstract: Modern Society followed, and it is still largely following, a linear process for natural resources utilization: raw material extraction, goods manufacturing, use/consumption, waste generation. Such a model is proven to be not sustainable because it cannot go forever considering the limited quantity of available resources on Earth but also because of waste and process by-product management. A multitude of diverse initiatives to change this process started at different levels and within several industries in the last years including the O&G sector. Most of these initiatives share the same principle of "regeneration": waste and materials represent, in this view, the "feedback loop" able to make the production process a circular process, instead of an open-end one. Eni promotes and supports different initiatives to implement the principles of a Circular Economy and the objective of this paper is to describe a process implemented within Eni aimed at reducing the footprint of the Oil and Gas Industry with reference to material usage. Surplus and damaged materials are no more treated as waste, but they are re-engineered or re-conditioned (if necessary) in order to be redeployed to other projects within Eni affiliates all around the world. Nowadays this process is well structured and formalized within Eni and it is extensively applied involving all worldwide affiliates, reducing the overall CO2 footprint. Results achieved within Eni, in the last few years, averages between 6,500 and 17,500 ton of steel of material redeployed among Eni's affiliates for a value ranging between 26 and 71 million USD. The overall average result is 23,000 CO2 equivalent ton not released per year and 242,000 GJ of energy saved (ref. to steel manufacturing estimated impact:1.9 ton di CO2/ton steel cast and 20 GJ/ton steel cast). Extending this process to involve material and equipment manufacturers, it is possible to improve the whole supply process reducing at the "source" the material storage needs, the material surplus and the produced wastes, including the CO2 emission produced in the transport phase. Initiatives like "Just in Time" delivery and material "Buy Back", mainly applied in Countries where Framework Agreements are already in place between Eni and its manufacturers and where manufacturers have their production sites and other facilities, are essential to achieve this target. Eventually, applying the approach to the whole supply chain and operations management will allow to reduce the "last mile" warehousing and transportation needs, including the dimension and capability of the operations fleet.
Keywords: social responsibility / original purchase order material / redeployment / sustainability / technical department / circular economy / sustainable development / air emission / morocco / climate change
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