| Submission Entry: | 1.) Digitalisation and inverterisation represent two relatively recent developments, amongst others (you are at liberty to invoke as many such relevant developments as you wish). As a manufacturer or supplier of HVACR equipment, what is the true measure of impact of such developments on such aspirations/outcomes as better energy efficiency, lower Total Cost of Ownership, better Indoor Environmental Quality IEQ), fire safety, reliability, data centre integrity, robust process cooling or stronger cold chain? (You may choose one, two or more aspirations/outcomes in writing your answer, as is/are relevant to the nature of products you manufacture or supply.) (78)Answer: Rheem as global manufacturer of Air Conditioning and Water Heating products have always placed special focus on market trends and developments. In recent years, Rheem invested globally and regionally in Inverter Driven Air Conditioners, Digitalization, Smart Wi-Fi Controls, A2L Refrigerant Products, Micro-Channel-Coils(MCHX), Cloud Data Analysis, Artificial-Intelligence(AI) for Predictive Maintenance, and Heat-Pump-Water-Heaters. We believe all the above will consequently result in a more sustainable future.
Rheem’s ISO9001:2015 certified factory in Dubai is the first in GCC to have helium recovering equipment. Helium is a rare and scarce gas which its recovering results in having a more sustainable operation line. Rheem UAE factory also utilizes solar energy for powering production line which leads to reduction of carbon footprint by 275,000kgs. Solar panels installed on rooftop of factory are capable of generating upto 420kWp. This facility also uses Rheem-Production-System(RPS) which works on basis of lean manufacturing with utilization of tools such as Kaizen, Kanban, and Six-Sigma. Factory also achieved grade “A – Gold Health and Safety Rating” from the Dubai Municipality(Attachments1-3). In Rheem UAE Factory, we follow string quality processes with usage of different digital systems such as ETQ Reliance, Acuit Pinpoint, and Gagelist. Quality processes and digital backup of them for Rheem UAE factory is explained in attached document(Attachment4).
Rheem Dubai Factory, with capability of producing up to 15,000 units per year, currently produces Renaissance Xcede Packaged Air Conditioning units and is planned to produce Ducted Inverter Air Conditioning units in Q1-2025. Rheem UAE made packaged units have high energy efficiency, with T3 EERs exceeding ESMA standard UAE.S 5010-5 requirements by 10%. This lead to average CO2 emission reduction up to 4310 lbmCO2e based on 2000 hours operation at T3 conditions(Attachment5).
Rheem’s UAE Made Packaged Units are the best example of Rheem’s commitment and focus on sustainability and recent trends such as inverterisation, digitalization, and energy efficient systems. These units are equipped with highly efficient scroll compressors, IE3 motor, innovative MCHX, Wi-Fi/BMS connectivity with scheduling. Units can have inverter compressor and VFD driven motor as option(Attachment6). Most importantly, these units use 52% less refrigerant because of MCHX coils compared to other similar products by competitors in market. This is an important feature since refrigerant leakage in atmosphere is one of biggest contributors of HVAC equipment in global climate change(Attachment7). Lastly the platform of Renaissance Xcede is compatible with R454B A2L refrigerant and inverter drive technology.
The UAE made units come with smart thermostats which have multiple scheduling options and automation scenarios for convenience of user and energy saving. With Geo-Fencing feature, the user can automatically turn on the air conditioner when reaches within near proximity of the house and turn off when going away. Rheem-Smart-Connect platform which is the connection platform for UAE made units also supports voice commands with Google Home and Amazon Echo(Attachment8).
All above energy efficient and smart features of the unit result in a unit aligned with regional sustainability codes and global SDG goals(Attachment9).
2.) Aftermarket operational/lifecycle/performance data have become an integral part of continuous improvement in the HVACR industry. As a manufacturer or supplier, what is the data that you collect/track, and what is your approach to that data? How do you collect/track that data? How do you validate them? How do you use the data? And what is your approach to analysing the data in ensuring that your interpretation and subsequent data-based action are able to improve such aspirations/outcomes as better energy efficiency, lower Total Cost of Ownership, better Indoor Environmental Quality (IEQ), fire safety, reliability, data centre integrity, robust process cooling or stronger cold chain? (You may choose one, two or more aspirations/outcomes in writing your answer, as is/are relevant to the nature of products you manufacture or supply.) (79)Answer: Rheem collects different data and feedback from different channels and for different reasons. Feedback is collected from service team, VOC, smart applications, cloud storage, and remote monitoring software. We follow string measures on keeping privacy of data. For example, our mobile applications comply with all GCC data acquisition compliances. With agreement of our users and through our smart mobile applications, we observe user patterns and store these data in cloud storages. These data will help us to identify different consumption patterns which consequently lead us to optimize our product efficiencies(Attachment10).
We have a proactive and reactive approach to data. Proactive approach comes prior to launching a product which assists us in launching a product that has already proven track of success in real time application scenarios. Reactive approach comes after launching and commissioning products in different projects which that data will help us in improving our unit performance when new product is designed. With data collected, we perform different types of analysis such as Eight-Disciplines-Methodology (8D), Fishbone Analysis (Ishikawa), and Why Why Analysis(Attachments11,12). Reason behind this analysis is to figure out causes of problems and capture failure trends. We then take actions accordingly based on analysis and even send Failure-Trend-Reports to our component suppliers if needed.
Early in our Product-Development-Process, in order to ensure our products, align with customer needs, we have established a Product-Excellence-Panel(PEP) consisting of consultants, contractors, and end users. This collaborative approach ensures that our products align with specific needs of market and clients. Our product development journey emphasized collating Voice-of-Customer(VOC). We engage with stakeholders, from project inception to completion, and actively incorporate their feedback. We collect VOC’s in PEP sessions which collated results will then be used in designing a product which meets market requirements(Attachments13-14).
During our Product-Development-Process, we test units in certified labs for performance/safety. We analyze this data to identify any concerning points and implement corrective measures to improve product before final development. Additionally, we send products to 3rd party labs which are approved by different regulatory bodies for performance testing and verification(Attachment15). This iterative process of design, testing, and refinement allows us to continuously enhance product reliability, energy-efficiency, and overall performance. Prior launching a product, our products undergo a minimum of 1-year of field trial testing. To validate data, we run multiple simultaneous field trials in different locations for same product to check for variance of collected data. Data collected is then analyzed to ensure product is ready for launch. This analysis helps us understand product performance, identify potential issues, and assess effectiveness of product design.
Rheem has a strong partnership with its distributors and Pro-Partners. Through this strong partnership we constantly collect feedback and data from our Pro Partners on Rheem products performance in different projects/conditions. If there is an issue happening in field, with help of collected data, Rheem Service Team create Field-Failure-Reports(FFR) and conduct monthly quality review sessions with factory to discuss reports(Attachment16). This data helps us to do product updates and design changes if deemed to be necessary.
3.) Performance of assets or facilities is so much dependent on regular upkeep and commissioning. As a manufacturer or supplier, how are you supporting asset or facility management initiatives and endeavours of owners towards achieving better energy efficiency, lower Total Cost of Ownership, better Indoor Environmental Quality (IEQ), fire safety, reliability, data centre integrity, robust process cooling or stronger cold chain? (You may choose one, two or more aspirations/outcomes in writing your answer, as is/are relevant to the nature of products you manufacture or supply.) (80)Answer: Our active involvement and assistance in commissioning our innovative products have made an impact throughout the years. Recently twenty Rheem UAE Made Packaged units have been delivered and installed in Nesto Hypermarkets. During commissioning process, with intervention of Rheem Team, multiple on-site issues such as correct ducting practices and control board configurations were resolved which resulted in successful commissioning(Attachment17).
In Rheem MEA, we have regional and global dedicated service teams. Customer support, warranty management, spare-part support, and specialized services such as commissioning, retrofit solution provision and custom designs are all part of Rheem’s service team responsibilities. Quality process we follow to aid our end users is as follows. Initially the end-user or contractor logs in the complaint via email or phone call. This complaint is validated by Rheem’s official distributor service team(DSC). The DSC will provide immediate solutions with detailed reports on observation if complaints can be fixed quickly. Rheem-Service-Team(DTR) conducts routine meetings with DSCs to collect product feedback. Then MEA team discusses manufacturing/design issues to Rheem’s Global Warranty Improvement team for resolution. With this clear process we ensure to provide full comfort to our end user(Attachment18).
One of main supports Rheem provides to help facility management initiatives in achieving higher energy efficiency is provision of retrofit solutions. We have a specific software designed and programmed by Rheem MEA named “CoolSaver” which performs analysis for retrofit applications. The software showcases kWh, Carbon Emission, and Cost savings when in retrofit project Rheem units are used as existing units replacements(Attachments19).
Rheem has always placed a special emphasis on supporting installers and facility owners to ensure energy efficient and optimum performance of its product during years of use. That is why one of the main pillars in Rheem’s “A-Greater-Degree-of-Good” sustainability program launched in 2019 was “Degree of Leadership” where Rheem set target to train 250,000 plumbers, contractors, and key influencers on sustainable products, sustainable installations, and recycling best practices. Till date, Rheem is proud to declare that more than 480,000 people have been trained under this program(Attachment20).
Moreover, we have introduced North-American-Technician-Excellence(NATE) certification program in GCC which guarantees quality of knowledge acquired by technical staff responsible for product installation and commissioning. Currently Rheem is training 100 NATE-certified technicians across GCC.
For our products, we have structured training modules that focus on installation, operation, features, and specifications. We also provide after-sales training on service/maintenance, which are crucial for optimal performance. We offer access to Rheem Academy, where our service team, pro-partners, and customers enroll in various online training courses. Over 500 training courses are currently on this platform.
In August-2020, Rheem opened its Innovation-&-Learning-Centre(ILC) in Dubai where different ranges of Rheem’s products are shown in running conditions so service teams from different companies get hand-on training on products. Till date +2000 people have been trained in this Centre. Furthermore, in February-2024, Rheem opened its biggest Innovation-&-Learning-Center in Riyadh to further upskill different individuals’ knowledge in sustainable commissioning/maintenance of products throughout years(Attachment21).
4.) Describe your HR practices as a manufacturer or supplier. Do elaborate on how you hire, train, mentor, evaluate and reward your employees towards not only capacity-building and the commercial growth of the organisation but also for them to deliver better energy efficiency, lower Total Cost of Ownership, better Indoor Environmental Quality (IEQ), fire safety, reliability, data centre integrity, robust process cooling or stronger cold chain? (You may choose one, two or more aspirations/outcomes in writing your answer, as is/are relevant to the nature of products you manufacture or supply.) (81)Answer: Apart from having experience in field of HVAC, Rheem also looks at other aspects while hiring an individual such as communicational skills, attitude, learning eagerness, and career achievements. Rheem culture is around integrity, honesty, and commitment to delivering best solutions to end consumer. Hence, candidates go through multiple interview sessions before hiring to ensure that personality of new hire aligns with Rheem’s culture. We have clear job-descriptions for each position at Rheem to provide candidates with necessary information prior applying for job at Rheem. Rheem also has Individual-Development-Plan(IDP) which is targeted to make employees grow professionally year after year. Individuals who achieve high scores in their IDPs for consecutive years will have chance of promotions upon position availability.
We believe that training employees is crucial for growth of company. One of our key strategy lines is “Invest to Grow” which is not only inclusive to R&D investments, and acquisitions, but it also includes investing in employees and young talents. All employees at Rheem have access to Rheem-Academy which has over 500 training courses on Rheem’s products. All Rheem employees also have special access to Udemy.com which has over 250,000 online video courses on different topics. Rheem also offers education/certification grants to employees who want to obtain relevant certifications with a certain passing grade. Certifications can include Six-Sigma, LEED-GA, CEM, etc.
Rheem is a global company with 24 manufacturing plants and 45 brands underneath it. This builds a great opportunity for different Rheem global teams to gather and share knowledge to improve product efficiency, safety, and sustainability. Every quarter of year Rheem holds a separate global collaboration summit for its air-conditioning and water-heating products, where different R&D teams from different companies under Rheem come together to share ideas and progress. Rheem also provides opportunities for employees to travel to different Rheem’s global factories and provides them opportunity to transfer to different Rheem offices around world based on position availability.
Training employees on sustainability and creating culture that drives sustainability in organization is another focus of Rheem. Through Rheem’s “GoodWorks” program, Rheem employees are encouraged to participate in different activities. For example, Rheem Canada planted +75 native trees in a local park, Rheem China held litter cleanups in Jiuzhaigou Scenic Area, and Rheem MEA collected 44kgs of goods for recycling and upcycling. Overtime, most active employees in GoodWorks activities get rewarded for their participation(Attachment22). In terms of sustainability training programs, Rheem global companies hold different sessions to train employees in recycling that drives Rheem’s Zero-Waste-to-Landfill goals. As an example, Rheem Australia team developed an online training module to educate employees on proper waste sorting and implemented new bin signages across facility(Attachment23).
Across Rheem’s global factories, different Kaizen events are held in which employees that participate in the event get certification of participation and ones who bring ideas to improve manufacturing processes get rewarded. As an example, in July 2024, Rheem AC Division held a Kaizen event which manual product assembly cells were adapted for pregnant women workers following Kaizen CCF methodology(Attachment24).
5.) As a manufacturer or supplier, how are you contributing to a Circular Economy? (82)Answer: In 2019, Rheem has introduced its Sustainability goals set to be achieved by 2025 under program “A Greater Degree of GoodTM”. Every year, Rheem’s dedicated global sustainability team publishes report which shows Rheem’s Global progress in each goal. The three main sustainability pillars in this program all contribute to Circular Economy. Below are the goals set and their progress until end 2023(Attachments 25,26):
1.Degrees of Innovation: Rheem aims to launch line of products with 50% reduction in GHG footprint by 2025, supporting SDG7:Affordable-and-Clean-Energy. Till date, +31.95 million-metric-ton of CO2e is avoided by Rheem’s products sold from 2019. Rheem also understands that sustainable packaging of its products has direct contribution to Circular Economy & GHG emissions. Hence, in 2023, Rheem has formed a Sustainable Packaging Task Force. Rheem Vietnam removed Expanded Polystyrene(EPS) foam from packaging of its newly launched product swapping it with cardboard bumpers which resulted in eliminations of over 80% of EPS. Rheem-Parts-Division converted most of their packaging boxes to boxes made of recycled content and that can be recycled. Intergas, one of Rheem’s latest acquisitions in Europe, has recently converted most of its products packaging designs to single color print to improve recyclability.
2.Degrees of Efficiency: Our goal is to reduce GHG emissions by 50% and achieve Zero-Waste-to-Landfill(ZWTL) across our global manufacturing operations by 2025 aligned with SDG12:Responsible-Consumption-and-Production. Till date, +720metric-ton of CO2 equivalent is reduced by Rheem Factories Energy-Management-Program. Also, 76% of Rheem’s manufacturing plants have been qualified for ZWTL and +50,000metric-tons of waste has been diverted in 2023. At Rheem Fort-Smith plant, we implemented wood recycling program, while Rheem China explored solutions for repurposing ceramic waste from water heater manufacturing as decorative pottery. Friedrich Air Conditioning repurposed a portion of its waste cardboard by using it to create packing fill. Rheem’s factory in Dubai is first in GCC to have helium recovering equipment. Rheem UAE factory also utilizes solar energy for powering the production line which leads to reduction of carbon footprint by 275,000kgs(Attachment3).
3.Degrees of Leadership: We will train 250,000 plumbers/contractors on sustainable products and installation, along with recycling best practices by 2025. Till now, +480,000 people are trained on sustainability surpassing our set target. In our training sessions we include topics on how to recycle product packaging and replacement parts to ensure Circular Economy.
Also, in our Product-Development-Process(PDP), we gather key representatives from our R&D, Sourcing, Manufacturing, and other teams for Sustainability-Strategy-Sessions. These sessions cover 12 different sustainability aspects of developing a product which “Design with Responsible Material” and “Considering End-of-Life Solutions” are two aspects related Circular Economy specifically(Attachment27).
Rheem also invests regionally in Circular Economy matters. Starting from beginning of 2024 till date, +2961kgs of waste has been diverted in Rheem Dubai factory. Waste stream included cardboard boxes, pallets, plastic bags, packing material(Thermocol), and PU foam. In our Dubai office and under Rheem’s Global GoodWorks sustainability program we have recycled +190kgs of papers and cardboard boxes until Q3-2024. We have also partnered with KISWA and collected 44kgs of clothing for recycling/upcycling purposes(Attachment28).
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