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Environmental Management & Sustainability
ALEX HETHERINGTON - Benefits Beyond Compliance
Libstar Manufacturing Forum
May 24 2012Irene Country Club
ALEX HETHERINGTON - Benefits Beyond Compliance
Agenda
1. Environmental legislation and policy
2. Increasing consumer demand
3. Best practice
4. Steps to implementing sustainability
Sustainable Development
“… ability to meet the needs of the present without compromising the ability of future generations to meet their own needs”- Brundtland Commission on Sustainable Development “Our Common Future”
ALEX HETHERINGTON - Benefits Beyond Compliance
ALEX HETHERINGTON - Benefits Beyond Compliance
Policy & legislationm- primary
ALEX HETHERINGTON - Benefits Beyond Compliance
Policy & legislation - specifics
ALEX HETHERINGTON - Benefits Beyond Compliance
Other policy & legislation
2. King Code of Governance Principles for South Africa 2009 (King III) – best practice
ALEX HETHERINGTON - Benefits Beyond Compliance
Other ‘legislative’ drivers
1. Companies Act (2008) – “to act in the best interests of the company”.
3. Integrated Report – form of communication with all stakeholders
ALEX HETHERINGTON - Benefits Beyond Compliance
Future policy/legislation
1. National greenhouse gas targets
34% by 2020
42% by 2025
2. Carbon tax
Second paper for public discussion due
Proposes: R120/tonne (10% pa thereafter) 2013/14-2020
3. Price hikes
Electricity – 15,33%; 13,5%; 16,09%
Water
ALEX HETHERINGTON - Benefits Beyond Compliance
Consumer perspectives
Consumer Protection Act 2011Information on environmental impact of goods/services
Purchasing preferenceCarbon Trust: April 2012 – Generation Y (18-25 yrs)
82% believe recent disasters are a result of climate change
64% consider the environmental impact of the products they buy
80% - companies should be obliged to reduce carbon footprints
86% - want favourite brands to reduce carbon footprint
30% - currently look for carbon information on products they buy
76% - would be more loyal to a brand if it was demonstrating carbon reduction
ALEX HETHERINGTON - Benefits Beyond Compliance
Measuring environmental impact and sustainability
1. Define boundaries - organisational
- operational
ALEX HETHERINGTON - Benefits Beyond Compliance
Carbon
Energy
Water
Waste
2. Data intensive - management
3. Appoint responsibility
4. Report and analyse
5. Explain trends
Link environmental savings to financial savings!
Best practice
• Strategy – why and how
ALEX HETHERINGTON - Benefits Beyond Compliance
• Define boundaries
• Establish team & determine responsibility
• Measure
• Set targets
• Report to stakeholders
Leading lights
ALEX HETHERINGTON - Benefits Beyond Compliance
Target: Reduce emissions 12%/FTE; 2007-15
Achieved: 13% energy reduction/FTE; Carbon neutrality
Interventions: Motion sensors, heat pumps, building retrofitting; offsetting
Financial investment: R6,6 million (excl. offsetting)
Financial savings: R36 million
ALEX HETHERINGTON - Benefits Beyond Compliance
Target: Reduce absolute emissions 10% by 2009-12
Achieved: 29% energy efficiency at Medupi expansion; 60% reduction in eco- friendly housing; 17% savings from co-generation at Namakwa Sands
Interventions: wind & solar; co-generation; carbon credit trading
Financial savings: R21 million per year
ALEX HETHERINGTON - Benefits Beyond Compliance
Target: Reduce emissions 30%/m2 2006-12
Achieved: 10% reduction in relative energy use from 2004; 35% reduction in refrigerant energy in select
stores; Midrand distribution centre savings 9 370km per week.
Interventions: Energy efficiencies; reduced product miles
Financial savings: R10 million
ALEX HETHERINGTON - Benefits Beyond Compliance
The ecological journey
Type of business
Organisational boundary & Operational boundary
Identify key areas of impactSA-n competitors/activities
Int. best practice
Opportunities (value-add)
Int. & local initiativesComms. & marketing
Sustainability reports
Opportunities (environmental)
Direct
Resource consumption
Decrease consumption
Education
Cost savings
Target setting
Financial bottom line
Indirect
Procurement
Clients
New products
Monitoring & improvement
Sustainable & leading org(Not CSR)
ALEX HETHERINGTON - Benefits Beyond Compliance
What’s in an audit
• Evaluation of current performance• Benchmark against peers - intensity• Review of legislation• Recommendation of environmental initiatives• Analysis of business case of initiatives
Thank you
Alex HetheringtonTel: 021-671-9883
[email protected]/alexhetheringtonwww.alexhetheringtonsustainabilityblog.com