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?
Thank you for attending
Check outbusiness.vic.gov.au/workshops
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