Entry Details

Organization:	Johnson Controls Arabia
Login ID:	JCArabia
Category applied for:	ESCO OF THE YEAR
Submission date:	28-Oct-2024
Submission Entry:	1.) What systemic transformation are you able to report as an ESCO? Whilst ESCO projects typically involve achieving greater energy efficiency and water-use optimisation, what have you done to ensure better IEQ, either as a collateral or direct benefit? Have you evolved a way of showing fiscal benefits of better IEQ, which in turn, has allowed you to stay true to the ESCO model of making money through savings achieved, and the like, in the case of better IEQ? Have you established or strengthened your company policy towards addressing the bigger picture (of helping in the effort to limiting global rise in temperature or improvement in IEQ, etc.) and working in an interconnected manner with other stakeholders? (188) Answer: Johnson Controls Arabia has developed methods to show the fiscal benefits of improved (IEQ) Indoor Environmental Quality, aligning with the ESCO model of generating revenue through achieved savings. JC Arabia uses advanced analytics and smart building technologies to measure and quantify the improvements in IEQ, such as air quality, temperature control, lighting, and acoustics. In addition, energy Savings through enhancing IEQ, buildings typically use energy more efficiently, leading to direct energy savings. For example, better air quality systems can optimize HVAC operations, reducing energy consumption. Productivity and Health: Improved IEQ has been shown to enhance occupant productivity and reduce absenteeism due to health issues. JC Arabia quantifies these benefits in monetary terms, demonstrating a return on investment through increased workforce efficiency. Operational Efficiency: Enhanced IEQ often leads to lower maintenance costs and longer lifespan for building systems. JC Arabia tracks these operational savings and incorporates them into the financial benefits. Sustainability Credits: Better IEQ contributes to achieving sustainability certifications (e.g., LEED) which can increase property value and attract premium tenants. JC Arabia helps clients realize these benefits, further adding to fiscal advantages. 2.) Given that buildings consume 40% of global energy, within which at least 40% is consumed by HVAC systems, how has the goal of 1.5 C additionally impacted your project opportunities? What specific design or equipment/ controls selection retrofits have you incorporated in your projects in order to support the 1.5 goal? (189) Answer: The 1.5°C climate goal has expanded JC Arabia project opportunities, with growing client demand for energy-efficient, low-carbon building solutions. Given that HVAC systems account for a significant portion of building energy use, Johnson Controls has prioritized specific designs and retrofits to support this goal. These include advanced heat recovery systems and energy recovery ventilation (ERV) to reuse waste heat, smart thermostats and IoT-enabled controls to optimize energy based on occupancy, and Variable Refrigerant Flow (VRF) systems that adjust cooling based on zones’ needs. High-performance equipment, like energy-efficient chillers and low-GWP refrigerants, along with AI-driven predictive maintenance, further ensure optimized system performance and reduced carbon footprints. By implementing these targeted solutions, Johnson Controls enables clients to significantly reduce HVAC energy consumption and achieve sustainability certifications, aligning with both environmental goals and regulatory standards. 3.) What is your ESG and energy-efficiency policy as an ESCO? (190) Answer: JC Arabia, a leading energy service company (ESCO), is committed to sustainability and energy efficiency through its comprehensive (ESG) policy. The company prioritizes reducing carbon footprints, enhancing energy efficiency, and promoting renewable energy solutions. By integrating smart building technologies and energy management systems, JC Arabia helps clients achieve substantial energy savings and reduce greenhouse gas emissions. Socially, the company focuses on creating inclusive work environments and engaging with local communities. Governance-wise, JC Arabia adheres to ethical business practices, transparency, and accountability. The company also aligns its goals with global sustainability standards and frameworks, ensuring long-term environmental and social impacts. Through continuous innovation and collaboration, JC Arabia aims to lead the transition towards a sustainable and energy-efficient future. 4.) In the past one year, how many of the ESCO projects you have worked on, have secured a Green Building certification? And under which rating systems and at what levels of certification? Please highlight also the carbon emission reductions achieved on these projects. (191) Answer: We have worked on more than 20 ESCO projects in both private and public sectors and some of the private projects were awarded LEED certificates and it is still under approval process. We were able to achieve more than 300 GWh which is equivalent to 209,577 CO2 emissions. All of these are being reported to the public sector. 5.) Please describe your corporate policies for employee motivation and retention - in terms of rewards, etc.? And what is your retention profile? Clients often insist on specific CVs of the service provider’s team to work on a project. Are you facing this issue as a norm, or are you able to assign a team of your choosing, quality-wise, to a project? Does employee-churn have an impact on satisfying clients’ expectations? (192) Answer: JC Arabia prioritizes employee motivation and retention through comprehensive reward systems, professional development opportunities, and a supportive work environment. The company offers competitive salaries, performance-based bonuses, and a range of benefits, including health insurance, retirement plans, and wellness programs. Career growth is encouraged through continuous learning programs, leadership development, and clear advancement paths. JC Arabia boasts a robust retention profile, maintaining low employee turnover by fostering a positive, inclusive culture and ensuring job satisfaction. Client-Specific Team Assignments Clients often request specific CVs for project teams, and JC Arabia accommodates these requests by maintaining a talent pool of highly skilled professionals. While the company prefers to assign teams based on project requirements, they are flexible to client needs, ensuring the best fit. Impact of Employee Churn Employee churn is managed effectively to minimize impact on client satisfaction. Succession planning and knowledge transfer processes ensure continuity and maintain service quality, meeting client 6.) What management strategies and guidelines have you established to counter payment delays and other such instances, which are affecting your cashflow as an ESCO, and are preventing an ideal building construction eco-system (involving all stakeholders) from forming? What creative strategies are you utilising to circumvent/overcome cash flow challenges? (193) Answer: JC Arabia has implemented several strategies and guidelines to mitigate the impact of payment delays and ensure a smooth cash flow: Strict Credit Policies: Establishing strict credit policies and performing thorough credit checks on clients to minimize the risk of delayed payments. Contractual Safeguards: Including clear payment terms and penalties for late payments in contracts to ensure timely payments. Invoicing Efficiency: Streamlining the invoicing process to ensure that invoices are accurate, detailed, and sent promptly, reducing the likelihood of payment delays due to errors or disputes. Dedicated Collections Team: Maintaining a dedicated collections team to handle overdue payments professionally and effectively. 7.) How can digitalisation ensure transparency, ensuring timely receivables? What other mechanisms would you recommend to ensure you receive monies owed you? (194) Answer: Digitalization enhances transparency and ensures timely receivables through several key mechanisms: Real-Time Tracking: Digital platforms enable real-time tracking of invoice status, helping both the company and clients monitor due dates and payment statuses. Data Analytics: Advanced analytics provide insights into payment patterns and potential delays, allowing proactive management of receivables. Additional Mechanisms for Ensuring Timely Payments Clear Contracts: Define clear payment terms and conditions in contracts, including penalties for late payments. Regular Communication: Maintain regular communication with clients to address any payment issues promptly. Credit Management: Implement strict credit management practices, including credit checks and 8.) Have you incorporated changes to organisational culture and behaviour that enable a sustainable development approach? Specifically, what measures do you have in place to ensure ethical procurement practices across the entire chain of command and decision-making in your organisation? (195) Answer: Johnson Controls has instilled a culture of sustainability throughout the organization to align with sustainable development goals. This cultural shift is evident in policies, employee training, and rewards that encourage environmentally conscious practices across all business areas. The company emphasizes sustainability as a core value, actively engaging employees through training and incentives to promote eco-friendly behaviors. Sustainable innovation is highly valued, with initiatives that reward employees for implementing green solutions within their projects, fostering a collective commitment to sustainability. To ensure ethical procurement across all levels, JC Arabia has established robust sustainable procurement policies that require suppliers to meet stringent standards for environmental responsibility and ethical labor practices. The supplier selection process prioritizes eco-friendly materials and responsible sourcing, holding vendors accountable for ESG compliance. Advanced digital tracking tools help monitor supplier adherence to these standards, ensuring transparency and integrity in the supply chain. Ethical decision-making is reinforced through regular ethics training for employees, particularly those involved in procurement and resource management. By embedding these sustainable and ethical practices into the decision-making framework, JC Arabia promotes a culture of integrity, fostering a sustainable, ethical business model that aligns with global environmental and social standards.
Supporting documents:	none
References:	CCAUAE2423 \|\| amin.khayat@jci.com

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