Sustainability it s just good business seminar

Introductions

Name

Position

Your personal/business environmental concern or interest

How you rate yourself on sustainability awareness

Workshop Overview

Who are you and what is your business?

Why become a sustainable business?

How to become a sustainable business?

Resources

Why Become a Sustainable Business?

CostEnvironmentIncreased market shareGovernment policyGood business management

Positioning

Positioning of companies and organisations -Non-compliance companies - try to ignore environmental regulations.Compliance companies - conform to regulations.Compliance-plus companies - that look beyond the existing practices and norms through the development of environmental management techniques such as EMSs.Commercial and environmental excellence companies - exploit the opportunities of green consumerism to gain competitive advantage.Leading edge companies - have moved towards state-of-the-art environmental management.

Page 2

The Sustainability Challenge

Page 3

The Current Situation

Emerging economies continue to drive global energy demand

Growth in primary energy demand

Global energy demand increases by one-third from 2010 to 2035, with China & India accounting for 50% of the growth

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2010 2015 2020 2025 2030 2035

Mto

e

China

India

Other developing Asia

Russia

Middle East

Rest of world

OECD

Energy

Energy

Page 4

Energy

Victorian Commercial Energy Use Commercial

Office Space

Water Conservation

0.01% Fresh water in lakes and rivers

0.74% Underground water

2.25% Polar icecaps and glaciers (frozen)

97% Oceans and seas (salt water)

Melbourne’s Water Storage

Waste Management

Our total amount of waste

generated is still increasing even though there is a renewed effort to reduce waste in business and in

the home.

Page 5

Why become a sustainable business?

OrganisationalFinancialEnvironmentRegulatoryMarketingPublic relationsGovernment policy and programs

Page 6

Sustainability motivators

Benefits to your bottom lineBenefits to your peopleBenefits to the environment

Why not?What gets in the way?

- Knowledge barriers- Cultural barriers- Structural barriers- Cost

Attitudes and drivers

Organisational

Adopting sustainability on an organisational level allows a business to address:

• Rising energy prices and the implications of a price on carbon • Greenhouse gas emission reporting• Impact of climate change • Water scarcity • Government requirements and costs for the treatment of waste • Power outages • Building health standards • Happiness and productivity of occupants/tenants

The push for a sustainable business needs to be supported by management at the highest level if it is to be successful.

Page 6

Organisational opportunity

Financial

Wat

er

Lab

ou

r

En

erg

y

Raw materials

Product & Profit

• Lost Product• Lost

Opportunity• Reputation

Risk+

• Disposal Costs

Trad

e W

aste

So

lid

Was

te

Air

em

issi

on

s/G

HG

Other Costs: Insurance, Future finance, Land space, Monitoring, Maintenance, Equipment, Compliance, Legal Costs, Remediation, OH&S

Page 6

Environmental

Action Benefit

Reduce energy use Reduced carbon emissionsCleaner airReduced cost

Reduced water use Simpler adherence to restrictionsReduced cost

Reduced waste Reduced landfillReduced carbon emissionsReduced cost

Reduced chemical use Reduction in pollutantsSafer work environmentReduced cost

GreenPower Reduced carbon emissionsIncreased availability of renewable energy

Page 6

Regulatory

There are rules which govern how you run a business. You can choose to just abide by the rules or you can use them as a platform to improve your business.

Page 7

The ACCC Green Marketing and Trade Practices Act (1974) Guide

Claims must be accurate Claims should be able to be substantiatedClaims should be specific, not unqualified and/or general statementsClaims should be in plain languageClaims should only be made for a real benefit

Claims must not overstate a benefitClaims should make it clear whether claimed benefits refer to packaging or contentClaims should consider the whole product life cycleClaims using endorsement or certification should be used with cautionClaims should not overstate the level of scientific acceptance

http://www.accc.gov.au

Marketing

“Concern about climate change and the environment is leading to changes in the way people make decisions about what they buy.”[1]

[1] http://www.bendigobank.com.au/generationgreen/green_businesses/docs/fact-sheets/consumer-preference-vecci-fact-sheet.pdf

Becoming a sustainable business allows you to market your business to a range of customers who are assessing businesses and products based on their environmental performance as well as their product or service.

Page 7

Public Relations

“A sustainable global economy should combine long term profitability with social justice and environmental care. This means that, for organizations, sustainability covers the key areas of economic, environmental, social and governance performance.

GRI’s Sustainability Reporting Framework enables all companies and organizations to measure and report their sustainability performance. By reporting transparently and with accountability, organizations can increase the trust that stakeholders have in them, and in the global economy.”

https://www.globalreporting.org/Pages/default.aspx

Page 7

Government Policy and Programs

The energy policy landscape is changing and businesses need to utilise and adapt to these changes to ensure profitability and competitiveness.

Carbon price

Clean Energy Future support programs

Victorian Energy Efficiency Target

General policy

Page 8

VEET Prescribed Activities

There are ten broad categories of Prescribed Activities. Water heating - decommissioning low efficiency water heating products and installing high efficiency

water heating products. This category also includes the installation of solar pre-heaters or solar retrofit kits.

Space heating and cooling - decommissioning low efficiency ducted heating products or central electric resistance heaters and installing high efficiency ducted heating products; installing high efficiency ducted heating products in new homes; installing high efficiency space heating products, decommissioning refrigerative air conditioners and installing evaporative coolers, and decommissioning existing gas ductwork and installing new gas ductwork.

Space conditioning - installing insulation, thermally efficient windows and weather sealing products. (Note that it is not presently possible to create VEECs from installing ceiling insulation)

Lighting - decommissioning high energy lamps, including incandescent lamps, and installing low energy lamps.

Shower roses - decommissioning non-low flow shower roses and installing low flow shower roses. Refrigerators/freezers - purchasing high efficiency refrigerators or freezers (refrigerator purchase)

and, destruction of pre-1996 refrigerators or freezers (refrigerator destruction). Televisions - purchasing high efficiency televisions. Clothes dryers - purchasing high efficiency electric clothes dryers or installing high efficiency gas

clothes dryers. Pool pumps - purchasing high efficiency pool pumps. Standby Power Controllers - installing standby power controllers.

Carbon Price:

Fixed price: From 1 July 2012 to 30 June 2015 Starts at $23 and rises by 2.5 per cent per annum $24.15 in 2013-2014 and $25.40 in 2014-2015 Flexible price: From 1 July 2015 Pollution cap will be set by the Government Price ceiling and floor for three yearsTied to EU system at 2015Ceiling: $20 above the expected international price (rising by 5 per cent per annum) http://www.cleanenergyfuture.gov.au/clean-energy-future/programs-and-initiatives/

How to Become a Sustainable Business

Opportunities

Typical Opportunities

Lighting management and retrofitStandby power managementHeating and coolingWater use awareness and retrofitWaste managementGreen cleaning

Page 9

Reducing Lighting Needs

Save by reducing lighting needs

Save by using energy saving globes

Place desks & work areas near windows.

Switch off lights when not in use.Install sensors in low use areas.

Clean windows for extra light.

Page 9-10

Device Advice

Incandescent

Most energy -> heat

Uses high amount of energy

Fluorescent

Tubular and CFL

1/5th of energy of incandescent, and much longer life

Halogen

Longer life incandescent

Low voltage is NOT low energy use

LED

Emerging technology

Very efficient and very long life

Source: Australian Greenhouse Office

Page 9

Energy Efficient Globes

20W 100W T8 36W T5 28W 50W 35W 10W 4W

CFLIncandesce

ntFluorescent

TubeFluorescent Tube

HalogenHalogen

IRC

LED (dimmabl

e)LED

Purchase cost $6.95 $1.50 $7.00 $38.45** $3.98 $4.46 $45.00 $29.00

Average life

hours10,000 1,000 7,500 10,000 1,500 5,000 50,000 50,000

Running cost over 10,000hr

s*

$38.00 $203.50 $90.60 $58.90 $149.82 $80.46 $19.00 $5.70

TOTAL$44.95 $205.00 $97.60 $97.35 $153.80 $84.92 $64.00 $34.70

**Includes cost of retro fit kit. * Includes replacement bulbsCalculation based on 19 cents per kWh

Page 10

Heating and Cooling

Insulation

Types: Bulk

Reflective

Priorities:Stop drafts

Insulate

Ceiling

Walls

FloorLandscaping

External shading

Insulate ceiling and walls

Sealing windows & reflective glazing

Page 11

Environmental Impact of Heaters

Device AdviceA temperature difference of just one degree can reduce energy consumption and GHG production by up to 10%.

Optimal cooling efficiencies: 25-27 degrees.

Optimum heating efficiencies: 18-20 degrees.

Maintenance and cleaning; filters, fans, ducts, motors.

Average Standby Power Usage

The Australian Government announced in November 2006 that by 2012 all electrical appliances will need to meet the ‘one watt target’ before they can be sold in Australia.

http://www.energyrating.gov.au/products-themes/standby-power/documents-and-publications/Page 13

Water Heating – What’s Available?

Traditional Flat Plate Solar System

Heat Pump System

Gas Accumulator

Instant Gas System

Water Heating – Continued

Reducing Water Heating Needs

Wash in cold water

Repair dripping taps/leaking appliances

Insulate hot water pipes and tank

Install a low flow showerhead

Device Advice

Usually long warranty = longer lifeAvoid tank corrosion: choose stainless steel & copper tanksSet the hot water tank at 60°C (every 5°C reduction saves between 3% and 5% of your energy consumption)

Waste Management Hierarchy

AvoidReduce

Source: Zero Waste South Australia, 2008

ReuseRecycle

Page 15

Waste

Waste auditing involves sorting waste to classifyCompostableRecyclablesLandfill Waste

Transport

Environmental Impacts of Transport Use

Kilograms of greenhouse gas per person per kilometre

Page 17

Green Cleaning

Key PrinciplesBacteria require food, warmth and moisture to stay aliveHealth and safety does not require the use of chemicals to reduce and kill bacteria

Hidden CostsHealth of employees and customers Purchase costEnvironmental harm

Benefits of Green CleaningCleaning tasks become more pleasant (no toxic smells and headaches)No risk to your health, your staff or your clientsCost savings $$$Feel-good factor, improves staff morale

Options and solutions to reduce the impact of chemicaluse within your business and local community

Page 19

Water

The first step is to

understand where we use

water.

Page 21

Reduce, Repair, Retrofit, Reuse

ReduceIn the home nearly half the water savings will come from more efficient washing machines, about 25 per cent from showers and 22 per cent from toilets.

RepairRepair leaks: A slowly dripping tap can waste 28 litres a day

Retrofit Assess the water flow first, then determine whether a device can be fitted to reduce the flow. Reuse

A long term project

DeviceFlow

(L/min)Annual

Use (kL)Annual Cost $

tap 15 22.5 30.13

tap 4 6 8.03

Page 21

Green Purchasing: Drivers & Barriers

Page 22

Green Purchasing: Drivers & Barriers

Eco Buy

http://www.ecobuy.org.au/

ECO-Buy is a not for profit that assists organisations in implementing sustainable procurement and building a green supply chain. Based in Melbourne, ECO-Buy has national reach with members and clients across Australia.

The ECO-Buy Sustainable Procurement Assessment Tool helps you to measure your organisation’s sustainable procurement performance. It covers all aspects of sustainable procurement, from policy and strategy to products and suppliers.

http://www.ecobuy.org.au/director/membership/assesment%20tool.cfm

Green Purchasing Policy

Look for products that have:Recycled content Water saving possibilitiesEnergy efficiencies Low toxicity Minimum waste and packaging Minimum impact on habitat and soil

When purchasing, consider:Do I really need this?Where does it come from?Is there an equivalent local or Australian product?Is it seasonal produce?Does the product come with excess packaging?Check the labels and ask questions.What impact is it having?Can it be re-used or does it have recycled content?

Page 23

Green Power

GreenPower is sourced from sun, wind, water and biomass waste.

GreenPower is an accredited Government program aimed at increasing the prevalence of renewable energy in Australia.

Currently only about eight per cent of energy generated in Australia is from GreenPower.

GreenPower is a simple way to reduce your organisations carbon emissions and invest in a cleaner future

Page 21

Option Cost Positives Negatives

GreenPower $33 Contributes to Australia’s renewable energy generation

International permits are retired Positive message to community

Expensive annual cost Requires ongoing operating budget allocation

International offset VCS or Gold Standard

Upward $2.50

Recognised/accredited offset Ability to choose specific projects Premium offsets contain social and other

environmental benefits

Cheap offsets may attract negative publicity

Renewable Energy Certificate

$35 Generates renewable energy in Australia Additionality not guaranteed Requires second party auditing (time and cost) Expensive annual cost

Victorian Energy Efficiency Certificate

$30 Provide local energy efficiency Supports Victorian energy efficiency

initiative

Not accredited under VCOS No existing relationship with certified business Fluctuating costs Works need to be completed and approved by the

Essential Services Commission

Carbon Offsets

Carbon Offsets allow people and organisations to offset their carbon emissions by investing in accredited carbon reduction schemes.

Page 24

How to Become a Sustainable Business

Page 24

What are the top three costs to your business in each category

What is the cost?

Short term actions

Progress

Long term actions

Progress

Information needed

Communication Support available Target Result

A B C D E F G H I

Energy

123

Water

123

Waste

123

Transport

123

Chemicals

123

Barriers

Page 29

Environmental Assessment

Page 25

Goal Setting the SMART Way

Example goal:

Reduce heater setting for the three months of winter by 1°C to try to reduce energy bill and GHG emissions by 10%

SpecificMeasurableAchievableRelevantTime-based

Page 24

Goal Setting

To reduce office time by ‘x’ per week

To create $x savings per week in cost of running your business

To reduce waste going to landfill by ‘x’ per annum

To training ‘x’ staff on ‘x’ per month

To hold 1:1 sessions with staff/meetings per month

“The future you see, is the future you get.” Robert Allen

Page 25

Implement

Definite actions and outcomes

Involve staff

Supply chain

Support

Communicate

Evaluate

Page 26

Communication

Clear communication within all areas of your business:

To customers

To staff

To suppliers

Sending a consistent sustainable message

Page 27

Marketing

Sustainable Marketing:Utilise marketing

techniques which are sustainable.

Advertise everything “good” that you do.

Review of Business Strategy

Review your strategy – Was your plan followed and your objectives achieved?

Review management – How well was the plan managed?

Realign – where required to meet objectives and goals.

Step 3: Review

Surveys

Staff Appraisals

Business Strategy

Future Goals

Operations Manual and Policies

Benefits:

Defines and documents procedures

Gives clear direction to staff

Enables processes to be duplicated creating consistent behaviour and goals

Training

Energy Management

Water Conservation

Waste management

Occupational Health Strategy

Transport

Chemicals & Cleaning

Moving Forward

Step 1: Celebrate

Step 2: Set goals

Step 3: Assign goal managers

Step 4: Review and alter

Step 5: Celebrate again

SpecificMeasurableAchievableRelevantTime-based

Future Goals

Plan for the future based on your review of past performance around all areas of your sustainable business management plan.

Example Goal: Last year we achieved an 11% reduction in waste to landfill. This year we plan to maintain reduce waste by a further 10% through reduction in use and increased recycling.

Training and Programs

Business Sustainability Programs available to SMEs in Victoria. This list includes general sustainability support programs, carbon management programs and services as well as certification and labelling programs.

Program Name Organisation Behind the Program WebsiteSmall Facilities Management Moreland Energy Foundation http://www.mefl.com.au/what-we-do/professional-development.html

5 Star for SMEs Sustainability Victoria www.5starsustainability.vic.gov.auGreenBizCheck GreenBizCheck (privately owned) www.greenbizcheck.com.au

Grow Me The Money VECCI www.growmethemoney.com.auGreen Globe Green Globe Asia Pacific (owned by EarthCheck Limited) www.greenglobe.com

Green Table Restaurant and Caterers Victoria www.greentable.com.auEarthCheck Sustainable Tourism Cooperative Research Centre www.earthcheck.org

Waste Wise Metropolitan Regional Waste Management Group www.mwmg.vic.gov.au/business

Green Stamp Plus Government and industry partnership program www.greenstampplus.com.au

carboNZero Landcare Research New Zealand www.carbonzero.co.nz/CEMARS Landcare Research New Zealand www.carbonzero.co.nz/cemars

EcoCertification Ecotourism Australia www.ecotourism.org.au/eco_certification.aspNo CO2 Carbon Reduction Institute http://www.noco2.com.au/web/page/certify

ISO 14001 ISO http://www.iso.org/iso/iso_14000_essentialsSustainable Green Print Printing Industry Association http://printnet.com.au/sgp_lead_page.html

City Switch Green Office Program www.cityswitch.net.au/Good Business Register St James Ethics Centre http://goodbusinessregister.com.au/

SmartBIZ National Centre for Sustainability http://tool.ncsustainability.com.au/

VEET Victorian Government www.veet.vic.gov.au

Zero Carbon Moreland MEFL http://www.mefl.com.au/get involved/zero carbonmoreland/business.html‐ ‐

Small Business Mentoring Service

Business mentors help you to identify a clear direction for you and your business.Business mentors can also advise you on how to:

conduct market researchprice and/or cost your products or servicesdevelop an effective marketing strategyuse other business management tools

To arrange a session with a business mentor go to:

www.sbms.org.au

Questions?

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