Energy Star profile, Allergan - Smart Energy Decisions

Demand Management, Energy Efficiency, Industrial  -  September 9, 2016 - By Amy Poszywak

Amid major corporate changes, Allergan holds sharp focus on energy management, emissions reductions

Exclusive to Smart Energy Decisions 

This story is the 14th in a series of original features exploring the successes of a selection of corporations recognized by the U.S. EPA's Energy Star program for achievements in energy efficiency. Each company we've talked with for this series, made possible through our partnership with Energy Star, has a unique story about their efforts to reduce electric use across their organization. Taken in aggregate, we hope the series provides readers with a useful glimpse into the kinds of strategies being implemented across the commercial and industrial sectors as well as a deeper understanding of vetted, real-life tactics for cutting consumption.

Actavis PLC's corporate M&A activity made headlines throughout 2015, first when the company merged with Allergan Inc., and again through the divestiture of its generic pharmaceutical business to Teva Pharmaceuticals Industries Ltd. Amid a year of change, the company took on Allergan's name and is now called Allergan PLC. 

And while integration efforts are still ongoing, at least one thing appears to have remained constant at the company: A commitment to reducing energy usage and greenhouse gas emissions.

Allergan in April received an Energy Star partner of the year award for sustained excellence in energy management for its 2015 activities, with special recognition for continuing the success of its energy management program through a major corporate merger. Allergan's director of global energy engineering, Tom Pagliuco, says that continuity was possible because of the company's already strong commitment and investment in its energy management program.

"We were starting to achieve results and management knew it was the right thing to do environmentally and could see a significant financial payback," Pagliuco told Smart Energy Decisions. "Once the company made the commitment, there was no turning back. Even after the divestiture of the generics business, we still had facilities to operate and the potential for greenhouse gas emissions reduction and energy savings still existed."

Also in play were the more than ten years of energy management experience under Pagliuco's belt, and a long-running relationship with Energy Star. Pagliuco credits the program with helping to move the needle on energy efficiency investments across a wide range of commercial and industrial companies, not just Allergan’s. The biggest benefit he sees, beyond the information resources and best-practice sharing that occurs within Energy Star, is the recognition that happens within a corporation for Energy Star award-winning energy management teams.

"If you have an energy program and you might be toiling away in the darkest corner of your facilities, [winning an Energy Star award] can at least shine a little bit of light on your accomplishments," Pagliuco said. "The recognition aspects are tremendous and it can totally validate your program from a corporate standpoint, especially on something that is as hot a topic as sustainability and energy."

Oftentimes, he said, that recognition can help gain approval to roll out new initiatives or adopt new best practices into his energy management program, such as the adoption of a corporate energy fund for energy efficiency projects. Having previously worked in energy management at Schering-Plough, and then Merck, after it acquired Schering-Plough, Pagliuco said the demonstrated and Energy Star-supported success associated with using a separate fund for energy efficiency projects helped him convince Allergan to adopt the practice shortly after joining the company in 2015.

"That just became kind of a best practice that I had built into my program, and Energy Star recognizes that as a best practice," he said. "So when I came to Allergan, and even in interviewing for this job, I was able to say, these are the things that I've been able to accomplish because of this strategy."

In recognizing Allergan this year, Energy Star noted the company's achievement of more than a 1% energy intensity reduction for U.S. operations while integrating the operations of two pharmaceutical companies. The company also earned Energy Star certification at two U.S. manufacturing plants in 2015 and displayed continuity in their work with supply chain partners on better energy management practices as well as with the government agency's "Focus on Energy Efficiency in Pharmaceutical Manufacturing" program.


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