Consult, Manage, Change

The Path to Business Sustainability

The most recent research on the move to transformational sustainability suggests that organisations go through five stages:

 

Stage 1 – elementary

 

Stage 2 – engaged

 

Stage 3 – innovative

 

Stage 4 – integrated

 

Stage 5 – transforming

 

The stage that an organisation is at is determined by what they are doing on seven key dimensions. These are:

• How is sustainability defined within the organisation?

 

• What is the strategic purpose served by sustainability?

 

• Do leaders support and lead the sustainability effort?

 

• How are responsibilities for sustainability managed?

 

• How does the organisation deal with issues that arise?

 

• How does the organisation engage its stakeholders?

 

• How transparent is the organisation about its financial, social and environmental performance?

 

The Development Path to the Sustainability Revolution – the 4 “C”s.

Credibility

Credibility is in the eyes of the stakeholders. They are looking for evidence that the organisation is not just meeting lip service compliance but going beyond that. Some evidence of involvement in solving societal problems will also be sought. The key here is systems and processes.

Capacity

As the organisation moves beyond engagement it finds there is so much more to be done and needs to develop internal capacity to do more. The key here is education and coaching that builds on the increasingly sophisticated systems and processes.

Coherence

This is where the organisation’s leadership needs to pull all the various programmes together and match up the programmes to a coherent vision and strategy. Strategic change including appreciative inquiry are the key factors here.

Commitment

This is where the sustainability programmes become so ingrained they become “who we are”

 

 

The Operating Model

So who has to make sure what happens on Monday morning?

The following table summarises a number of points that will need to be addressed as you work through the 4Cs model, gives a quick ‘headline’ summary of the issue and suggests where in a business organisation each issue would fit from a responsibility perspective and from the perspective of what organisational officer/manager is responsible for delivering each issue.

For smaller businesses and non business organisations, most of the responsibility falls on the CEO and leadership team as they will be lacking access to the specialist departments tabulated below.

The new position of Chief Sustainability Officer reflects our belief that we are seeing a paradigm shift that will place sustainability at the core of the organisational model for the foreseeable future. The CSO is responsible for the setting the leadership position on sustainability, engaging the rest of the C suite and top reports in the organisation to provide compelling leadership in each of their areas, setting policy and putting in place systems and procedures for ensuring organisational action is embedded in day to day routines. The CSO will have significant organisational power as well as significant influencing skills to ensure others buy in to the Sustainability programme.

Want more information?

www.sacnz.co.nz

http://www.sacnz.co.nz/resources 

Sustainable practice in ACTION

Sustainable practice in ACTION

Last evening I attended the Winery Tour http://www.thewinerytour.co.nz/dates.html#feb4 at Matakana just north of Auckland City.

The concert was held in the picturesque winery grounds of Ascension Wines http://www.ascensionwine.co.nz/home and it was sold out. As you can imagine with a full house there was plenty of food and wine and drinks being sold to a hungry and thirsty crowd.

As we sat down the concert announcer advised us that the concert organisers together with the winery and their sponsors the NZ glass packaging forum they were running a recycling system for all glass, packaging and general wast at the event.

What struck me was this was not just lip-service sustainability. It was sustainable practice in action. I will tell you how the organisers of the event made it work!

First of all they told the concert goers about what recycling and sustainable practices they where promoting. The concert tour operator had partnered with organisations like the packaging forum http://www.glassforum.org.nz/ and the Love NZ brand http://www.glassforum.org.nz/outabout.html#lovenz to give them the street cred with the audience.

Secondly there where many recycle bins located around the seating. There where 3 bins, one for glass one for paper and one for general rubbish.

However what struck me was that they had recycling ambassadors roaming thru the crowd collecting empty bottles and collecting rubbish. It was great to see audience members rushing up to the collectors with empty bottles and rubbish.

The result of all of this effort was as I left there was hardly any bottles or rubbish littler on the ground so this would make the overnight or next day clean up very easy.

However the day after the concert I had the following questions:
1. Was the mixed rubbish that was collected in bags at the event separated?
2. Where did the general rubbish get dumped?
3. How many bottles or tonnes of glass was recycled?
4. What are the event organisers going about their energy footprint?

So I decided to do some research.

I checked out the Winery Tour web site and on the HISTORY/ABOUT http://www.thewinerytour.co.nz/about.html page it states that the tours waste management is managed by the Glass Packaging Forum.

On the SPONSORS http://www.thewinerytour.co.nz/sponsors.html page the concert organisers tell us:

The Glass Packaging Forum is delighted to be teaming up with the Winery Tour for the third year to provide and promote recycling nationwide.

The Winery Tour will again promote the LOVE NZ brand to its anticipated 50,000 audience nationwide.

Every single glass bottle can be recycled back into new glass bottles or they can even be crushed and used as mulch in vineyards to increase the yield of our grapes. Recycling cans, plastic bottles and paper saves valuable natural resources.

Your bottles and cans can’t recycle themselves, they need your help so- use the blue GLASS recycling bins; YELLOW mixed recycling bins and if it can’t be recycled use the RED waste bins

We are lucky to live in New Zealand. All of us enjoy our environment and scenery. This year around 2500 Love NZ recycling facilities have been put in place on our streets and at events as part of a major public place recycling initiative inspired by the Rugby World Cup. So when you are out and about Love NZ and recycle with care - find out where your local Love NZ recycling bins are on www.lovenz.org.nz
But the above does not answer my questions above.
The glass forum’s home page tells me “The Forum is once again proud to support Civic Events and Classic Hits to manage the waste on the 2012 Classic Hits Winery Tour. NO GLASS from any of the 14 concert locations will go to landfill! We're closing the loop - it's either back to the furnace or into alternative uses”

From my research there is no real time updates on the event recycling scheme. I personally think this would be a good idea.

I have sent an email to the promoters of the event to ask the questions above. I will keep you posted.

It was a great concert event and I fully support the promoters and sponsors for their sustainable efforts.

This post is my entry in the blog competition for World Environment Day. Please tweet this with the hash tag #WED2012 and with reference to @onespec http:\\www.twitter.com/onespec

What is wrong and right with Public Transport??

 
Today I left the car at home and took the bus to the office in Auckland. The weather today 16 May in Auckland is very autumnal with strong wind and passing showers. Not that entrancing when a warm dry car awaits my use in the garage!

The 10 minute walk to the bus stop was nice apart from the down pour – lucky I grabbed the umbrella before I left the house.

The bus was on time – and the driver very polite. The smart card system worked. It is being replaced with the “snapper” card. The new readers where on the bus but the system is not live yet.

At 7am in the morning the traffic was light and before I knew it I was in Newmarket to change busses as the one from my suburb goes to the transport hub Britomart and due to the rain I wanted to go to the Aotea square (mid-town). I did not have to wait long for the connection but was not impressed that I had to pay another fare?? The driver told be that I was not able to transfer?

I arrived at my destination on time and the total cost of my journey was $5.20

For my return home this evening I will find a direct bus that will cost me $5.60

By not bringing my car I have saved a $13 parking fee and the petrol and running costs of my car.

 So what was right about using public transport today?

•  Bus arrived on time to pick us all up at the bus stop
• Arrived on time at my destination
• Got to meet my neighbours at the bus stop
• No stress of driving
• Got to look out the window
• Possibly reduced my carbon footprint for the day?
• One less car on the Auckland roading system today

 In my opinion, this is what was wrong about using public transport today?

•  Integrated ticketing on one platform for all modes of public transport is a must
• Printing out a timetable needs to be simplified
• Needed to transfer to get to my destination
• Was not able to transfer my original fare to my transfer bus
• Might have caught the flu from all the sick and coughing people on both busses
• Total journey time was double the usual

So how many of you use public transport? Have you started to use public transport again due to the rising cost of fuel? What are your views on cost verses convenience?

Please let me know your thoughts?

 

Novotel sustainability update

Good news
Back in room and the towels did not get changed and same with bed linen,
Well done Novotel Wellington.
Staff trained. Good systems and processes in place.

Food Miles and Barriers to Entry

Food Miles

Food miles are all about how much of the carbon foot print of a product of service is created by the distance it has travelled. All products and services have unavoidable emissions content simply from the growing process. It has been debated that New Zealand products and raw materials have and even higher emissions content due to our distance from our key markets.

For example: New Zealand merino wool that is exported as raw product and then made into a garment in Milan and then sold in a London High Street. The footprint of the raw material (wool) is included in the final product.

As New Zealand Inc we all need to think about the NZ brand and was we can protect the brand by actions that reduce of brands exposure to adverse international consumer behaviour. The last thing we want is for NZ products and service to be banned and penalised because of the perceived emissions content of our products and services.

The food miles debate in the UK and Europe is very much focussed at grass roots level with the consumers being absolutely focussed and fanatical about carbon content and the number of miles goods have travelled to get to the market.

 

Trade Barriers

The concept of food miles is part of a broader issue of sustainability which deals with a large range of list of environmental issues, including local food. The term was coined by Tim Lang (now Professor of Food Policy, City University, London) who says: "The point was to highlight the hidden ecological, social and economic consequences of food production to consumers in a simple way, one which had objective reality but also connotations."

Recent findings indicate that it is not only how far the food has traveled but how it was grown in the first place and how it has traveled that is more important to consider. The positive environmental effects of specialist organic farming may be offset by increased transportation, unless it is produced locally. The positive effects of local growing are offset if the grower uses hot houses to grow the product rather than growing outdoors.

But even then the logistics and effects on other local traffic may play a big role. Also, many trips by personal cars to shopping centers would have a negative environmental impact.

As early as 2006 EU Trade Commissioner Peter Mandelson has called for a WTO zero tariff agreement on key green goods and rejected the idea of a Kyoto tax as the wrong political approach to securing global agreement on the need to act on climate change. In an audiocast to the 45000 subscribers to the EU's Trade Policy Website, Mandelson argued that trade policy needs to seek to widen and open global markets in the key technologies for addressing climate change. Mandelson called for action at the WTO level and said that all new EU bilateral trade agreements would tackle restrictions to green trade and investment.

 

Business Processes and Competitive advantage

 

Being Green

In March 2008 David Skilling from the New Zealand Institute released the second document related to a low emission New Zealand, called “actions speak louder than words”. The report is focussed on adjusting the NZ economy to a low emissions world.[1]

In the first report the NZ Institute stated that New Zealand should be a fast follower! In this report the NZI talks about the non trivial reputational risk to New Zealand!

Skilling make the point that there will be significant impact on the NZ economy as we adapt to a low emissions world.

The NZI states “NZ needs to begin to reduce its emissions in a meaningful way in order to position it to operate successfully in a low-emissions global economy”.

 

Competitive advantage

More and more we are able to point to examples of “environmentally sustainable” business achieving a competitive advantage by being green.

The NZ Institute states “The aim (of business) is to adjust the NZ economy to a lower emissions mode of operating so that it can compete successfully in a low-emissions global economy”.[2]

---

[1] http://www.nzinstitute.org/

[2] http://www.nzinstitute.org/index.php/publications/C32/

The relaunch of Corporate Social Responsibility

 
I have been asked recently if CSR is no longer a focus for business. In recent times GREEN issues for business have been relabeled at PROCESS IMPROVEMENT or efficiency initiatives.

However the fundamentals still remain. CSR and being green is still good for business.

To follow is a recap. Let me know your thoughts!

Corporate Social Responsibility

The key to corporate social responsibility can be encompassed in a new social, governmental and corporate paradigm – Sustainability.

Corporate social responsibility [CSR] has many and varied definitions.

From the mushy

CSR is about how companies manage the business processes to produce an overall positive impact on society

to the hard edged

There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits

We suggest that CSR can be defined as a company’s commitment to operating in an ethical and environmentally, economically, and socially sustainable manner whilst balancing the interests of diverse stakeholders including improving the quality of life of the workforce and their families as well as of the local community and society at large

Ethics

Corporate ethics in the age of Enron seem to some to be an oxymoron, and many New Zealand companies have missed the mark in the way they have treated customers. This is largely because transactional managers have laid down and stringently enforced rules without providing an ethical and social context in which the organisation is to operate.

It is clear that some form of the ‘golden rule’ should govern corporate ethics. Recent research suggests that treating others well and in a way that you would want to be treated has positive social outcomes.

Organisations need to be completely clear about their ethical position, put in place systems and processes to monitor compliance, engage the hearts and minds of the people with exemplary leadership, and communicate this commitment throughout all the stakeholder communities.

Environmental Sustainability

Organisations need to be completely clear about their position on environmental sustainability, put in place systems and processes to ensure easy compliance, engage the hearts and minds of the people with exemplary leadership, and communicate this commitment throughout all the stakeholder communities.

Economic Sustainability

In the long run, an organisation will only be economically sustainable when it earns enough profit to pay for the total cost of capital.

The concept of economic sustainability is well understood and has been promoted by Peter Drucker since the 1960’s. In more recent times, Economic Value Added concepts, such as those promoted by Stern Stewart, have come to the fore.

It is clear that such concepts must be embedded into the organisation’s business model and clearly communicated to the stakeholder community.

 

 

Social Sustainability

It is in the area of social sustainability that CSR is usually played out.

Government, seeing itself as the representative of society at large, regulates and legislates to control an organisation’s social impact as well as its economic and ethical impact. In an increasing regulated environment, the position that the Government will take needs to be understood and factored into any consideration of CSR. The position government takes is conditioned by ideology as well as political pressure from the public and from other political groups.

Local government see themselves as the representatives of the local communities and thereby can have a similar position as central government. The overtly political approach of central government is conditioned somewhat at the local level by a more common sense approach in local government to getting things done.

Local communities interrelate to organisations as customers and partners, customers when consuming the organisation’s products or services and partners when consuming sponsorship resources.

The way an organisation treats its workforce and their families has many aspects. When an organisation lays off members of the workforce it is likely to receive attention in all areas of social sustainability – the ethics of outsourcing jobs to Asia – the economics of exporting jobs – the impact of government attitudes to free trade – local attitudes to sweeteners to keep jobs in a region, and so forth. Witness the comments made when Fisher & Paykel re-jigged its global supply chain at the cost of 430 jobs in Dunedin.

With an increasing competition for talent, the consideration of an organisation’s impact on the workforce and their families goes beyond social sustainability and affects the organisation’s economic sustainability. Without enough people to get the job done, organisational initiatives are choked off.

The organisation’s position on social sustainability needs to be viewed as a core value of the organisation. Therefore it needs to be lead, sustained, and managed by the CEO and the leadership team.

Sustainable Forestry Bulletin 14 - thanks to MAF

 
Issue 14 - 23 March 2010

Post 89 ETS Applications

It is now too late to apply to register as post-89 participant and get carbon units this year.

However, you may still submit your post – 89 application and once you are registered you will be able to file an emissions return between January and March 2011 for the change in carbon stocks in your forest over the period 1 January 2008 to 31 December 2010.

Key dates and reminders for foresters

Deadline for filing emissions returns 31 March 2010

MAF is reminding people who own forest land that the deadline for filing emissions returns is 31 March 2010.

This applies to:

• pre-1990 forest land deforestation (mandatory)
• post-1989 forest land (optional for persons who are already registered as voluntary participants in the ETS)

Surrender of emissions units to meet a deforestation liability can be made in the period 1 January 2011 to 31 May 2011 (at the latest).

For further information visit www.maf.govt.nz/sustainable-forestry or call 0800 CLIMATE (254 628)

Afforestation Grant Scheme tender round for the public pool closes 30 April 2010 - only one round for 2010

The current tender round for Afforestation Grant Scheme funding closes on 30 April 2010. This funding is for afforestation projects between July 2011 and June 2012.

Due to considerable interest in previous rounds and resulting commitments, there is no funding available for establishment in 2010. Also given current interest, there is unlikely to be a further tender round in October 2010.

The AGS is a contestable fund that encourages the establishment of new forests to increase levels of greenhouse gas absorption from the atmosphere. It is part of Government’s wider climate change initiatives.

For more information, eligibility criteria, or to obtain a tender application form:

Visit www.maf.govt.nz/sustainable-forestry

Or call 0800 CLIMATE (254 628)

Consultation - still time to have your say!

A reminder that submissions close at 5.00pm on Monday 29 March 2010 on the following proposed regulations under the Climate Change Response Act 2002. They are specific to the operation of the forestry provisions of the New Zealand Emissions Trading Scheme (NZ ETS).

• Pre-1990 Forest Land Allocation Plan Consultation Draft (February 2010)
• Pre-1990 Forest Land Tree Weed Exemptions
• Revised Indigenous Look-up Table Values for Post-1989 Forest Land and Minor and Technical Amendments

Interface Inc CASE STUDY

  

Ray Anderson – the owner

The story of Interface Inc. starts with Ray Anderson, its founder. Graduating in 1956 as an engineer from Georgia Tech in the USA, Anderson joined an industrial conglomerate and rose quickly through the hierarchy. At Callaway Mills, later Milliken, he was involved in developing a joint venture with an English manufacturer of carpet tiles, Carpets International [CI]. When the opportunity arose to work directly with CI, Ray Anderson risked everything to take up that opportunity. In 1973, at 38 years of age he left the security of a corporate job, took on massive debt and risk, and ultimately sacrificed his marriage to run his own business, Interface Carpets.

 

The Initial Product

Anderson first came across the then new idea for carpet tiles in 1969. The idea of modular squares of carpet that could be installed without adhesive and moved around as required was perfectly timed for the growth of the computerized office.

 

Growth

By 1996 Interface sales had topped US$1 billion and was represented by sales and/or manufacturing facilities in the US, Canada, UK, Holland, Australia, Thailand, and China. They sell into 110 countries and have a dominant market share with 40% of the world market.

 

Dawning Environmental Awareness

From around 1984, Interface had been involved in a consortium of companies focusing on indoor air quality. One cause of poor indoor air quality is the evaporation of volatile chemicals from the predominantly synthetic based carpets. Interface developed some proprietary products to address the air quality issue but their focus as a company was on legal compliance only.

 

From August 1994, Interface started getting questions from their customers asking about what Interface was doing about the environment. Interface didn’t have any satisfactory answers to these questions so set up a task group that had representatives from all over the business to review Interface’s world wide environmental position.

 

The task group asked Ray Anderson to address its first meeting and give the group an environmental vision. Anderson reported that his vision at that stage consisted of “Obey the law, comply, comply, comply” and he really didn’t have anything to say. At that time one of Anderson’s colleagues sent him a copy of The Ecology of Commerce by Paul Hawken.

He read it and was galvanized. After reading example after example of the unsustainability of conventional business, Anderson prepared a vision statement that he says surprised his staff as much as it surprised him. He set the vision as:

Interface, the first name in industrial ecology, worldwide, through substance not words.

And he set a mission:

To convert Interface into a restorative enterprise, first to reach sustainability, then to become restorative by helping others to reach towards sustainability,

And a strategy:

Reduce, reuse, reclaim, recycle, redesign, adopt best practices, develop sustainable technologies, and challenge our suppliers to move to sustainable best practice.

Now Anderson reports that at the time he was first exposed to Hawken’s work he was searching for some legacy, some ultimate purpose as he contemplated the succession of his business to a younger generation of managers. Given his effective control of the business even though a minor shareholder, he could have made sustainability a crusade without having to make it pay.

 

Increasing Environmental Awareness

Anderson continued to do a whole lot of reading and research into sustainability. He read both sides of the argument for sustainability. This case study provides an updated suggested reading list if you want to read this information for yourself.

From his reading, Anderson found the following information made a compelling argument for sustainability:

 

Rainforest and old growth forest harvesting is unsustainable

Water use is unsustainable, particularly in intensive agriculture/horticulture

Topsoil loss from agriculture and horticulture is unsustainable

Fossil fuel use for transport and electricity generation is unsustainable

The continued emission of greenhouse gases from power generation, transport and agriculture/horticulture will have adverse effects on peoples health as well as the global climate

 

Since then Anderson has made sustainability his personal crusade. He has also found that it has had large positive benefits for Interface’s profitability.

 

Making Sustainability Pay

The more Interface did to improve its environmental position, the better the bottom line impacts. The following are excerpts from Interface’s website.

 

Cumulative Avoided Cost from Waste Elimination Activities (USD in millions)

Interface began its journey to sustainability by focusing on the elimination of waste. At Interface, we define waste as anything that does not provide value to the customer. This includes traditional forms of waste such as off-quality and scrap, as well as nontraditional forms of waste such as overuse of materials, inventory losses, etc.

The cumulative avoided costs from waste elimination activities since 1995 are calculated to be over $372 million.

 

Total Energy Use at Carpet Manufacturing Facilities (energy use per square yard)

Interface has two simple goals related to energy: decrease total energy usage, especially nonrenewable energy, and increase our use of renewable energy.

Total energy used at carpet manufacturing facilities (per unit of product) is down 45% since 1996.

 

Net Greenhouse Gas Emissions (metric tons of CO2)

Our net absolute greenhouse gas emissions have been reduced by 82% from our 1996 baseline. 33% from improved efficiencies, process changes, and direct renewable energy purchases. 49% from emissions reduction credits from our LaGrange, GA landfill gas-to-energy project.

Interface calculates GHG emissions in accordance with the WRI/WBCSD GREENHOUSE GAS PROTOCOL. In 2006 and 2007, CO2 emissions for the USA and Canada were independently verified by the Financial Industry Regulatory Authority (FINRA), as required by our membership in the Chicago Climate Exchange (CCX).

 

Interface’s Environmental Management System [EMS]

In the early days, Interface used The Natural Step [TNS] process as its EMS. As Interface developed its own expertise, it moved beyond TNS and now follows its own in house EMS. An EMS like The Natural Step attempts to provide a one size fits all approach to environmental management. TNS is one framework among many and adds little value once the organization has commenced its own journey and can gain more leverage from customized approaches.

 

 

Commentary

The Interface Case Study shows that, like any change initiative, leadership is critical to success. Without Ray Anderson’s engagement and then active advocacy Interface would not have commenced and maintained the sustainability journey in such a successful way.

Anderson’s motivation was generated by his desire to leave a legacy. As he aged and handed over more and more of the running of Interface to new managers he conceded that he needed to consider his ultimate purpose. The sustainability journey that engaged Anderson via a process akin to an ‘epiphany’ provided that ultimate purpose and Anderson still travels the world telling his story.

The coincidence between Anderson’s ‘epiphany’ and Interface’s need to address the clients new needs provided the point of leverage which Anderson was able to use to start the changes at Interface.

Anderson’s embracing of sustainability was broad – he didn’t fixate on greenhouse gas emissions [although Interface do measure and manage these]. Instead he viewed sustainability in its widest context and made changes to Interface to embrace sustainability, and move beyond greenhouse gas emissions.

The solid grounding of Interface on sustainability also meant that Interface could address items that don’t feature in a GHG inventory like water usage as part of its total sustainability package.

Anderson also found that the framework, the environmental management system [EMS], in which the Interface programme played out moved from a one size fits all system to a system customized to meet Interface’s needs. The Interface EMS draws on the very latest discoveries in cognitive linguistics such as Appreciative Inquiry and closes the loop on the case – it started with leadership and it ends with Interface renewing its leadership capability by adopting new tools.

 

Suggested Reading List

The suggested reading list gives some books that everyone contemplating a journey to sustainability must be aware of. Reading them is probably a good idea. Also included are some books that present a skeptical perspective on climate change and why a focus on sustainability is much smarter. And finally some books that give cause for hope.

 

Advocates

Hot Topic by Gareth Renowden. Subtitled Global Warming and the future of New Zealand, this is a good introduction to climate change for New Zealanders.

 

Climate Change Begins At Home by D Reay.

Written from a British perspective but doesn’t push solutions tainted by self interest like XX put in name of the NZ book that pushes carbon zeroXX

 

And if you want to scare yourself …

Heat by G Monbiot. Monbiot is described as the scourge of the lying industry, which should give you the flavour of the book.

AND

Climate Wars by G Dyer. The title says it all. Ripping yarn but a bit over the top.

 

Sceptics

An Appeal to Reason by Nigel Lawson. Subtitled a cool look at global warming, Lawson lays out an alternative view and highlights why a fixation on climate change is counterproductive.

 

Cool It by Bjorn Lomberg argues for a sustainability view not a climate change view and suggests some smart actions that could be taken easily by government.

 

Cause For Hope

Cradle to Cradle by W McDonough and M Braungart.

How design could save us.

Biomimicry by J Benyus.

How learning from nature could save us.

 

Are yours up or down??

  Do you measure your GHG emissions inventories?? If so is the trend line down or up??

Here is an example of a trend UP!

German chemical giant BASF's greenhouse gas (GHG) emissions rose by almost 8pc to 29.3mn t of CO2 equivalent (CO2e) last year, the company said in its 2009 financial report.

BASF blamed its purchase of Switzerland-based specialty chemicals firm Ciba, as well repair and installation work at a nitrous oxide (NOx) decomposer for plants in Ludwigshafen, Germany, for the sharp rise.

Lower capacity utilisation also meant the efficiency of its plants declined during 2009. BASF is targeting a 25pc drop in specific GHG emissions, measured per tonne of sales product, against 2002 levels by 2020, although 2009 specific emissions remained flat against the 2002 baseline. Specific GHG emissions had been over 14pc lower than the baseline in 2008, an improvement that has now been reversed.

The firm hopes the newly installed catalysts for breaking down NOx at the Ludwigshafen site, along with reductions from its logistics and transport divisions, will help put it back on track to meet its goal.

The oil and gas division's GHG emissions rise by over a quarter to 1.8mn t of CO2e last year. The division intends to eliminate flaring of unwanted gas from its crude production sites by 2012.

This will hurt them as the European ETS has big penalties for emissions increases.

Remember that if you want external help to measure your GHG inventory be sure to use a firm that is:

• Independent
• a member of a suitable professional body such as a Certified Management Consultant
• can demonstrate they have experience in GHG measurement
• understand all of the relevant standards

What about your WATER FOOTPRINT?

We all know the importance of measuring your GHG emissions inventory. The only way to MANAGE your emissions profile is to have a base line measurement and to instigate specific initiatives to REDUCE real GHG emissions.

 

So in 2010 what are you doing about your WATER FOOTPRINT?

 

Water is a scare resource! As business users of water, we need to get smarter at managing our water usage! Are you including your water usage in your GHG inventory?

 

If not the following may help.

 

 

 

The Water Footprint Network [WFN] http://www.waterfootprint.org has launched its Water Footprint Manual, it is 131 pages covering a comprehensive set of methods for water footprint accounting. It shows how water footprints can be calculated for individual processes and products, as well as for consumers, nations and businesses, and includes methods for water footprint sustainability assessment and a library of water footprint response options.

 

WFN is a non profit foundation striving to promote the transition towards sustainable, fair and efficient use of fresh water resources worldwide, by advancing and applying the "water footprint" concept. The network has more than 80 partners (January 2010) from all relevant stakeholders in water resources management.

 

This information will be a great help to all of us who need to make a start in including water usage in our GHG inventories.

Development of your sustainability platform and the sustainability journey.

 

 

Green issues, climate change and sustainability issues in the last decade have become mainstream business practices.

 

There are a number of examples that support the notion that environmental sustainability is good for business. I urge you all to take a look at the Interface Carpets sustainability journey.

 

Interface sets the global standard for leading sustainability best practice. They state “the journey toward sustainability has been a momentous shift in the way we operate our business and see the world”.

 

It is my opinion that companies need to take strong and clear leadership in the management of reducing their GHG emission footprints and becoming sustainability leaders not followers.

 

The latest round of climate change talks in Copenhagen were an example of if we leave these issues to politicians and governments then we will be waiting a long time for a global approach.

 

This decade the focus will be on how businesses, communities and individuals take up the reigns and lead from the front.

 

Essentially the focus is on doing it for yourself rather than having it done to you!

 

What innovative responses can you offer to the 21^st century’s paradox of producing more, more effectively, while consuming less and reducing waste.

 

Being sustainable in its own right means that you manage your own resource intensity with the view of getting it as low as possible.

 

The current global recession and economic dislocation provide an opportunity to raise the focus on both cost savings and sustainability. We all have the chance to do well by doing good.

 

There is a great opportunity to use the current economic crisis to establish a sense of urgency around actions that will save costs and improve your environmental footprint.

 

We recommend being more direct with the marketing message by telling your clients and stakeholders exactly what you have undertaken on the sustainability journey.

 

There is one critical factor that I urge you to manage and that is the importance of you – you need to take a strong leadership role on this journey.

 

It is critical that you are brave enough to take a stand early, because the sooner you start actions the stronger leadership you can take. This will give you clear competitive advantage! 

 

Don't be scared to take a stand.

Think resource intensity!

 

Forget about climate change or global warming! Think resource intensity!

 

Next week we have the COP15 meetings in Copenhagen and climate change will be on the agenda.

 

Countries will roll up to show off there carbon footprints and their emissions trading schemes. Some will just show up! Some will come with nothing!

 

If we continue to get bogged down with labels we are not going to get very far at all!

 

“We” means all of us! It can be your industry, your community your family your country or your business!

 

We need to start to be more aware of our resource intensity!

 

Resource intensity can be roughly stated as a measure of the resources (e.g. water, energy, materials) needed for the production, processing and disposal of a unit of good or service.

 

It is often expressed as the quantity of resource embodied in unit cost e.g. litres of water per $1 spent on product. In national economic and sustainability accounting it can be calculated as units of resource expended per unit of GDP.

 

When applied to a single person it is expressed as the resource use of that person per unit of consumption.

 

It is about how much stuff we use and consume. If we consume less stuff then we are all better off!

 

It is also about knowing as consumers how much resource it has taken to produce the item we are about to use. Do you know how much energy and resources it took to make the computer you are using to read this blog??

 

We have come across the BRIX Project.

 

This project aims at developing a system to measure and assess the resource intensity of products, services and companies – the Business Resource Intensity Index (BRIX).

 

You may find the link to this of interest?

 

Just think if as consumers and business people we start demanding to know about and reduce resource intensity how this would make a positive contribution to our planet!

The Recovering Eco Plundering CEO - Ray Anderson

Are you aware of Interface Carpets?

Are you aware of Ray Anderson?

Then you need too!

If you are business owner who cannot get the "sustainability platform" and wants to understand the business case for sustainability then Ray and Interface will help.

Ray Anderson's company makes Flor, the line that made modular carpet tile sexy. But behind the fresh design is a decades-deep commitment to sustainable ways of doing business.

At his carpet company, Ray Anderson has increased sales and doubled profits while turning the traditional "take / make / waste" industrial system on its head. In a gentle, understated way, he shares a powerful vision for sustainable commerce.

Ray has made a great TED presentation in May 2009.

Please take the time to view this video. Ray speaks real sense and makes a excellent point about th relationship between sustainability and business survival.

 

 

Sustainability and risk management

I have just come across some information on Harvard Business related to why investors are taking note of companies sustainability platforms.

In a time when the "s" word is out of favour in the New Zealand Government area the "s" word still has pulling power with investors and customers.

In the article called :

Why Investors Should Consider Sustainability Risk Management
by Daniel Goleman

Goreman states: Here's yet another concern for investors: sustainability risk management, or SRM. While the basic concept has been around for years, emerging market forces are creating a new strain of investor sustainability risk: point-of-purchase reputation risk. Disruptive systems are on the verge of revealing ecological impacts of products that could sink some brands — and boost others

Investors are taking note. The Investor Network on Climate Riskhas 80-plus members representing over $60 trillion (including BlackRock and CalPERS). While climate concerns have been at the forefront for investors like these, social sustainability — such as how workers are treated — has been an additional focus of late. And as new ecological transparency systems come online, that focus will most certainly broaden.

TO READ THE FULL NARRATIVE - CLICK HERE

What sustainability position does your company have? How do you market your sustainability position?

Are you engaging with your suppliers and customers on your sustainability platform? Is this giving you competitive advantage?

In our view your "s" position is still as important as ever.

We come across many business that have yet to understand the business case for sustainability!

What are you doing in this regard?

The Business of Sustainability: What It Means to Managers Now

I am currently working my way thru the fall issues of MIT Sloan Management Review.  
This issue is focused on SUSTAINABILITY.

It is a must read as they have published information on their global research.

For example:

How are sustainability pressures altering the competitive landscape, and how are businesses responding? The first annual Business of Sustainability Survey and interview project found answers.

Key Findings

REVISED AGENDA

The survey revealed a strong consensus that sustainability is having — and will continue to have — a material impact on how companies think and act.

• More than 92% of survey respondents said that their company was addressing sustainability.

DOWNTURN?

Sustainability is surviving the downturn.

• Fewer than 25% of survey respondents said that their company had decreased its commitment to sustainability during the downturn.

BUT ACTION LAGS

Although almost all the executives in the survey thought that sustainability would have an impact on their business and were trying to address this topic, the majority also said that their companies were not acting decisively to fully exploit the opportunities and mitigate the risks that sustainability presents.

• The majority of sustainability actions undertaken to date appear to be limited to those necessary to meet regulatory requirements.
• Almost 70% of survey respondents said that their company has not developed a clear business case for sustainability.

Free Lunch Seminar - Is Being Environmentally Sustainable Good for Business?

 
How can sustainability initiatives help your business survive under the NZ Emissions Trading Scheme?

NZIM Central has partnered with with Gordon Shaw - Sempre Avanti Consulting to bring you this lunch presentation.

In light of the recent Government announcement on the NZ emission reduction targets for 2020 and ongoing media comment and coverage on this topic, NZIM and Sempre Avanti Consulting presents 2 workshops on the big sustainability issues facing small and medium enterprise.

NZIM invites you to a paper bag lunch information session to find out more about the workshop topics. Gain an overview on business based sustainability and links to economic sustainability, Carbon accounting and the NZ Emissions Trading Scheme.

Date: Wednesday 28 October

Time: 12 Noon - 1:15pm

Venue: NZIM Central,
Level 7 - Lumley House,
    3-11 Hunter Street,
    Wellington

Cost: Complimentary event

You are welcome to bring your lunch with you, tea & coffee will be provided.

Proposed dates for the workshops are:

Wednesday 18 November - 9am - 3pm

Wednesday 2 December - 9am - 3pm

More information on the topics and the costs of the workshops will be available at the teaser presentation.

To RSVP for the paper bag lunch email: penelope_england@nzimcentral.co.nz

 

Is "sustainability" now a bad or dirty word in New Zealand?

I have been having a number of conversations with business owners and corporate managers regarding the business case for sustainability recently.

It seems under the National Government the word "sustainability" has been banned and is seen as a legacy of the previous Nanny State!

It has not helped the business community that programmes such as Govt3and the CNPS Carbon Neutral Public Service have been canceled and a number of key roles with in the Ministry of the Environment have been disestablished! What kind of message is this sending to business and our citizens?

If you are a reader of this BLOG you will know the mantra we make which is sustainability is good for business and that with the upcoming introduction of the ETS all consumers and business owners will pay more for certain commodities such as ENERGY.

But what can we do?

EECA CEO Mike Underhill gives some sage advice in the current edition of the IN-Business Magazine. He states " An energy audit of the business is often the best way to start an energy management programme. Typically,for every dollar invested in an energy audit, $10 of savings are identified"

So what Mike is telling us is that to minimise the impacts of energy price rises we need to be more efficient. If we measure it we can manage it!

If you are interested in more information on this debate check out the following LINK to a recent article in the idealog magazine.

Let you be assured in business sustainability is not a dirty word. As we dont need the Government to tells us what to do! Being a sustainable business makes prefect sense!

The Business Case for Pursuing Sustainability Strategies

 
I have recently come across this very useful video related to the business case for sustainability. If you are in business you should watch this!

About this video: Björn Stigson, President of the World Business Council for Sustainable Development, moderates the second of four roundtables on day two of the National Energy Summit and International Dialogue. Ahmet Dördüncü, Pierre Gauthier, Kris Gopalakrishnan, and James Quigley participate in "The business case for pursuing sustainability strategies

Please note this video is 57 minutes long!

VIDEO

http://www.compete.org/nes/event_videos/the-business-case-for-pursuing-sustainability-strategies/

 

 

Organisational changes taking place within the Sustainable Business Network

I received the following message this morning that I thought would be of interest to readers of this BLOG.

Letter from Chris Morrison, Chair of Sustainable Business Network and Rachel Brown, CEO Sustainable Business Network, to all members

 

Dear SBN Member,

I’d like to take this opportunity to inform you of some organisational changes which will be taking place within the Sustainable Business Network over the coming months.  Additionally, I will supply some background information on the occurrences which have led to these decisions being made. 

SBN’s governmental funding ceased on 30 June 2009; it had previously been contracted to continue until 30 June 2010.  This significant change to SBN’s income stream meant that the organisation needed to closely examine the ways in which it offered services and tools to members.  Foremost in our minds was the need to rationalise the costs associated with operating separate offices throughout the regions, while still ensuring that the service levels remained at the high standard previously enjoyed by members.  We have sought to reduce our overheads to ensure that membership subscriptions and other income is used to achieve our first priority; the continued provision of high quality services to our members.

How will SBN’s structure be different?

The National SBN Board has sought to retain the organisation’s regional structure as much as possible so as to ensure that services to members are affected in the least possible way.  As a result, each region will now be responsible for managing a national portfolio covering key areas such as national events, communications, and overall network management.  This will result in high quality events; consistent National communications and research; and centralised national management, being offered to all members.

While all regions will remain as separate entities complete with requisite Regional Advisory Boards, some regional offices will now be coordinated from other existing offices.  This is particularly pertinent for both Waikato and Southern Regions.  In the case of Waikato, from January 2010 the regional office functions will now be run from Tauranga where it will operate as one with the Bay of Plenty region.  At that stage, Jo Wills will undertake the role of Bay of Plenty/Waikato Regional Manager. 

Jo has worked with SBN businesses for three years in the Bay and created a vibrant, thriving network.  Jo is looking forward to expanding this interaction to include Waikato SBN members in the future.  Because of Jo’s previous event management successes, she will now also be undertaking a strategic role in developing the national events strategy.

In the case of the Southern Region, the Christchurch office functions will be run out of the Wellington/Central office from January 2010. The Nelson satellite office will also report to the Wellington/Central office.  At that stage, Brenda Harkin will undertake the role of Central/South Island Regional Manager. 

Brenda has worked with SBN businesses for two years in the Central region which is also a very active and fast growing network. Brenda is excited to have the opportunity to engage with Southern Regional SBN members in the future.  In addition, Brenda will now be undertaking the National Communications Manager role.  She is passionate about research and ensuring members are kept up to date with the most recent developments in sustainable business practices. 

Over the coming months, it is with much sadness that we will bid farewell to a number of our colleagues: Jan Harrison, Carolyn Brown, Michelle Locke, Andrea Oliphant and Elizabeth Fletcher.  We are a close knit team, and these changes are very reluctantly made. We whole-heartedly wish these talented individuals much luck in the future – they come highly recommended from us at SBN if you are seeking new staff.

Will this affect my SBN membership benefits?

No, you will still receive the same member benefits – the only difference will be in where these are delivered from.  As such, your business will still enjoy access to all of the great SBN tools and services which include Greenlist, GreenFleet; GetSustOnlilne; Get Sustainable Challenge; listing on Members’ Directory; monthly newsletters; member certificate; AGM voting eligibility; and use of the SBN member logo.  You will still enjoy the opportunity to attend networking events and workshops in your region.

In addition to these current, ongoing benefits, you will also receive access to some new and exciting tools and services in 2010.  Jo, with her National Events Manger hat on will be working on a strategy for delivering a series of high value, inspirational events for members in 2010.  The aim is to provide SBN members with opportunities to hear from high profile, expert speakers – in this way, you will be able to learn from and interact with those professionals at the cutting edge of sustainable business practices both nationally and internationally.

Brenda, as SBN’s National Communications Manager, will provide a more centralised communication with consistent information across all regional newsletters and other communications.

David Clendon will undertake the role of National Network Manager in addition to managing the Northern Region.  His skills, experience and expertise will ensure that the operational function of SBN is fulfilled to a high standard and his members continue to receive the same high quality service he has delivered in the past.

SBN is currently exploring the establishment of a ratings system to support the Get Sustainable Challenge tool.  This will go one step further than previously in that an organisation can choose to gain verification around its sustainable business practices.  More information on this will be supplied in early 2010.

Through a new partnership with EECA, SBN is planning a launch of its Sustainable Business AdviceLine “Ask an Expert” to members this year.  This email service will be free to SBN members and is aimed at providing tailored support and advice on sustainability issues in business.

 

We’re excited about the future and look forward to delivering a high quality programme to our valued members this year and beyond. 

Should you have any questions about these changes please contact your regional managers or myself as per the contact details below.

Best Regards,

 

Rachel Brown and Chris Morrison

 

Rachel Brown

CEO Sustainable Business Network

Email: rachel@sustainable.org.nz; Ph: 09 826 0952

 

David Clendon

National Network Manager and Northern Regional Manager

Email: david@sustainable.org.nz; Ph: 09 826 5642

 

Jo Wills

National Events Manager and BOP/Waikato Manager

Email: jo@sustainable.org.nz; Ph: 07 5779355

 

Brenda Harkin

National Communications Manager and Central/South Island Manager

Email: brenda@sustainable.org.nz; Ph: 04 3844715

 

Some good advice for business - Sustainability study

I have just come across some great sustainability information on the AT KEARNEY web site.

A.T. Kearney was a sponsor of the Economist Intelligence Unit’s report titled Doing Good: Business and the Sustainability Challenge. This report summarizes the learning from a global survey of over 1,200 executives and interviews with leading sustainability experts.

This is global information and the findings and conclusions apply to the NZ Situation.

The findings outlined in the report reinforce many of the insights we have seen in our own research and in our sustainability work with clients across the globe. The report shows that many companies are still working to figure out what sustainability means for their business and how to ingrain a sustainability strategy in their organizations.

Key findings from the study include the following:

• Business knows that it needs to raise its game but is often confused by such new and poorly defined demands
• The conventional wisdom that North American firms lag on sustainability is partly deserved, but partly a matter of perception
• Competitors are a key driver for change in North America, in Asia-Pacific governmental officials are the key driver, and in Europe it is consumers
• Many companies lack clear leadership on sustainability
• The supply chain is the weakest link
• Sustainability reporting needs more work
• Sustainability pays – and a correlation appears to exist between corporate action and strong share price performance
• Gains can be expected from cost reductions, new markets and enhanced reputations, although concerns about the expense affect firms
• Increased investor attractiveness is not yet a key hook
• Business leaders are open to more regulation on social and environmental issues

What do you think of the list above? Are there issues listed that you are thinking about? Are you factoring in increased business costs when the NZETS is implemented?

Check out the downloads from ATK and remember that you need to be thinking how economic sustainability and environmental sustainability go hand in hand.

Oil vs. Sustainability! UAE earmarks $136 mln to fund green energy agency

I have just read an interesting press release:

Reuters, 22 June 2009 - The UAE is ready to spend $136 million to fund the International Renewable Energy Agency (IRENA) if its bid to host the agency's headquarters is successful, a senior official said on Monday.

The world's third-largest oil exporter wants to place itself at the forefront of developments that may shape the future energy industry and hosting IRENA was part of that plan, Sultan al-Jaber, chief executive of Abu Dhabi's state-owned green energy initiative Masdar told Reuters in an interview.

"Oil exporting countries can either see renewable energy as a threat or as an opportunity and we know that this is the future so that's why we are committed to IRENA," Jaber said. "If we win, the Abu Dhabi government will fund the agency with $136 million until 2015."

READ MORE .........

The information about the IRENA makes interesting background reading.

Do you think the UAE is the right place for this agency?

We hear a lot about "peak oil" and the end of oil as we know it!

I find it interesting that their is now engagement by oil producers on green energy issues. In my view this raises some challenges about oil ethics and the commitment to find sustainable energy solutions for the generations to come?

LET ME KNOW WHAT YOU THINK????

Ecological Intelligence - Goleman has his say

Has anyone purchased or read Daniel Goleman's new book Ecological Intelligence?? I am keen to get a book review going and thought this was a good book to start with?

Please post a comment so that we can all decide if this is worth getting or just getting it from the library to flick thru??

The book was given a profile in the AFRBOSS.COM.AU on April 2009 which I read but it did not inspire me to rush out and get the book.

Sustainability Matters

I have recently come across:

Ray Skinner
Committee Member Sustainability Working Group
Sustainability Matters
"Business achieving a tomorrow for tomorrow's children"
Phone: (09) 443 0773
eMail: 

ray@sustainabilitymatters.co.nz

Web:    http://www.sustainabilitymatters.co.nz

Ray produces a sustainability newsletter that I have found to be excellent. Please email Ray to sign up to the newsletter and tell him I sent you.

Here is some information from the latest newsletter you may find of interest:

The Big Warm Hurting the Pacific

Gareth Morgan Investigates

TV3’s ‘Sunday’ has been following the story of Takuu, a lowlying

remote atoll which is sinking at an alarming rate. Lying

250 km northeast of Bougainville in PNG, Takuu's story

highlights the likely fate of millions of environmental refugees in

years to come. Briar March and Lyn Collie have made a film

about Takuu's plight, and ‘Sunday’ had a sneak preview.

Concurrently economist Gareth Morgan has commissioned his

own research in to our understanding of climate change. In the

programme Gareth discusses the results of his research. ‘This

is all part of the launch publicity for his latest book,

Poles Apart:

The Great Climate Change Debate

– (published 15th May) which

appears to be a cross between a travel book (based on two bike

trips, one to the Arctic and the other to Antarctica: the words

‘lucky bugger’ spring unbidden to mind) and an investigation of

the state of our understanding of climate change. … Jeanette

Fitzsimons is hosting the launch, ….

“Poles Apart

concludes the weight of current evidence favours

human-made climate change. Morgan said the book was

designed to get past emotion and misinformation, such as

views expressed by (MP Rodney) Hide.

“Gareth Morgan couldn't decide whether he believed in climate

change or not, so he hired the best international scientists to

answer his questions and these are his findings. Combined

with anecdotes from his own recent trips to Antarctica and the

Arctic this is something completely unique in books about

climate change - somebody who has approached the topic with

an open mind, somebody who has the resources to explore

such a topic and somebody who has personally investigated all

of the issues.

Book launch:

Jeanette Fitzsimons, MP, Green Party Co-Leader

Where:

Legislative Council Chamber of Parliament, Wgtn

When:

Tuesday, 19th May 2009, 6.00-8.00pm

RSVP:

essential before 13th May, louise@randomhouse.co.nz

More:

•

http://tvnz.co.nz/sunday-news/the-story-takuu-2687185

•

http://hot-topic.co.nz/morning-morgantown

•

www.fishpond.co.nz/product_info.php?ref=1339

s_id=13259974&affiliate_banner_id=1

•

www.greens.org.nz/node/21049

Source:

Editor – courtesy TV3 ‘Sunday’, 3rd May.

Climate Neutral Network - One year on

The United Nations Environment Programme (UNEP) started the climate neutral network [CN net] one year ago.

The network has over 100 participants.

The first 100 participants "the CN Net Centurion" - were honoured at the 25th session of the UNEP Governing Council/Global Ministerial Environment Programme meeting this week in Nairobi, Kenya.

Sempre Avanti Consulting is one of the first 100 participants!!

We have been congratulated an recoginsed by the UNEP with the award of a UNEP trophy.

Once we receive the trophy a photo will be posted.

Sustainability Master Class in Singapore February 2009

Are you based in Singapore, Hong Kong or South East Asia then you may be interested in the following training opportunity.

Sempre Avanti Consulting in partnership with the Institue of Management Consultants in Singapore are holding a two day master class on sustainability on 9 and 10 February 2009 in Singapore.

More details can be found by CLICKING HERE.

Sustainable Brands International

While undertaking some web research yesterday I can across the Sustainable Brands International Conference being held in Miami in December 2009.

Follow the link and check out the conference information. If you can make it to Miami then it looks well worth attending.

SBi convenes a dynamic mix of big global brands and innovative start ups. Of product designers, sustainability thought leaders and brand communications experts. This mash up people from different market sectors, geographic regions, company sizes and business responsibilities creates one high energy, thought provoking, personally challenging experience that past participants say goes down as among their best conference experiences ever.

Wellington regional businesses claim the bulk of the sustainable business awards!

Being Wellington based I like it when I see Wellington Regional businesses making a name for themselves.

As a member of the sustainable business network it was fantastic to hearabout the anouncements of the winners of the 2008 awards. A number of the top awards went to Wellington based companies.

The 2008 NZI National Sustainable Business Network Awards were held on October 9th at the Auckland War Memorial Museum Event Centre. The spectacular event celebrated those businesses that are actively integrating principles of sustainability into their daily business operations.

The NZI Sustainable Business of the Year Awardwent to Paraoa Bakehouse who also scooped up the top prize in the Trailblazer (Small and Medium Business) category.

Pararoa Bakehouse produces a range of breads including gluten-free and wheat-free varieties that are sold throughout New Zealand.

The judges were particularly impressed by the company's commitment to waste minimisation. While producing 5,000 loaves of bread a week, the business has drastically reduced the amount of weekly rubbish it sends to landfill to less than the size of a netball.

Check out the links for more details.

A number of the initiatives these companies undertook can be applied in our own businesses and in our personal lives. The winners are living examples of what you can achieve with your sustainability hat on!!

Delivering sustainability through the SME business sector

This blog post is a call to action.

While more research is always welcome, we would like to see much more action to assist the small to medium size enterprise [SME] sector contribute to a sustainable future for New Zealand. While sustainability is a very broad concept, the primary focus of sustainability action in New Zealand at the moment is on greenhouse gas [GHG] emissions reductions.

In time, the narrowness of this focus will become apparent as the impact of unsustainable practices on, for example, water quality and availability become more obvious. However, for the purposes of this paper the path to sustainability is treated as equivalent to the path to GHG reductions.

The emissions trading scheme [ETS] and other policy and operational actions by government are aimed at creating points of obligation at key nodes in the economy.

It will be at these points of obligation that any carbon charges will be collected. While these points of obligation are of critical importance, the day to day delivery of the changes required to deliver enterprise sustainability will happen through actions in individual workplaces.

Because of its breadth, the SME sector is central to understanding New Zealand enterprises and how they can be engaged on a path to sustainability. SMEs are the predominant enterprise vehicle in New Zealand, are overwhelmingly owner operated and predominantly domiciled in the same community as the owner. Any positive moves towards sustainability in the SME sector are likely to have positive community effects as well.

To move SMEs on the journey towards sustainability, these enterprises will need to learn to Measure, Mitigate, and Manage their use of resources, including but not limited to their greenhouse gas [GHG] footprint.

The SME sector must also learn to Market what they are doing in order to tap the large market segments whose buying behaviour is influenced by sustainability. SMEs are generally short of time and short of the level of skills required to do this.

A casual search using a widely available internet search engine would suggest that the availability of measurement tools is well catered for. However, once the need for New Zealand based emission factors is taken into account, the number of valid measurement tools available to an SME is limited.

The four hurdles in the way of effective measurement are, firstly what to measure, secondly the measurement system to use, thirdly, the time required and, fourthly understanding what to do with this information when it is calculated.

The mitigation and management of SMEs sustainability is even more problematical than the measurement aspect. Mitigation and management, whether through better processes and systems, carbon offsets, or through technological changes can be complex.

It is also questionable whether mitigation through buying carbon offsets is sound from a sustainability perspective because of the difficulty verifying whether offsets actually deliver what they purport to deliver. Mitigation is further tainted by its dubious moral associations with the idea of paying someone else to change so that the buyer of offsets doesn’t have to change their own behaviour.

Management and mitigation actions may require a level of skill that may not easily be found within an SME.

As well as confusion over which tools and techniques to use, SME owners tell us that they are confused by what they see happening in policy setting organisations and in the sustainability consulting marketplace.

It is here that we all have a part to pay.

We all need to consider what action to take to offer SMEs access to reasoned advice on what to do, how to do it and provide access to the requisite tools, techniques and skills at a reasonable price.

Carbon Trading and Carbon Credits

We often get asked to help our clients understand the basics of carbon trading and carbon credits.

The information to follow may help you?

Emitters of carbon will need to purchase carbon credits. As carbon is emitted, the credits that a business holds/processes will need to be surrendered, effectively “paying” for the greenhouse gasses produced.

What is the ETS

Under an ETS, prices are established for units to emit greenhouse gases. It is hoped that these prices influence decisions by producers, consumers and investors, in their decision making around the reduction of emissions and to look at viable alternatives.

Put more simply, essentially, if you create emissions, say by using fossil fuels by driving your car e.g. petroleum, it costs you units (so called carbon credits). If you create a carbon sink (plant trees) that then soak up carbon emissions, you create credit units that can be traded.

How does it affect us?

Broadly speaking, it is intended that the scheme will alter the cost structure of good and services supplied in NZ through the operation of a “cap and trade” model. Under the model the Government will place a cap on the greenhouse cases certain industries can produce.

Costs

Depending on which group you listen too there are a number of varied positions on the cost of the emission trading scheme.

There is no doubt that there will be a cost to business of capping New Zealand's emissions and the development of the ETS. Some of the increased costs will be passed onto customers and consumers.

The Emissions Trading Group commissioned Infometrics economist Adolf Stroombergen (October 2007) to analyse the impact of an Emissions Trading Scheme on emission levels, economic growth and other economic indicators.

Infometrics’ report concludes that during the period between 2008 and 2012, the impact of New Zealand meeting its commitments under the Kyoto Protocol on a number of economic indicators is likely to be around 0.0 to 0.3 percent impact on GDP. 

Much of the Government's economic modelling is based on a carbon price of $15 a tonne, whereas the international price is already more than double that.

Carbon Trading and Carbon Credits

The carbon trading market is based around Kyoto-related and voluntary carbon credits. The compliance market is obligations based and requires the reporting of emissions from designated activities, and the surrender of Kyoto compliant carbon credits.

The voluntary market is driven by reputational drivers, and the marketing of projects that lead to VER’s – Verified Emissions Reduction units. This also links to the measurement of carbon footprints and the use of the GHG protocol and ISO reporting standards.

Carbon credits may be Kyoto units or voluntary carbon credits.

Kyoto units are created from Government-approved projects that have been allocated assigned amount units or AAUs and from clean development mechanism (CDM) projects validated through the United Nations Framework Convention on Climate Change (UNFCCC).

Voluntary carbon credits are produced outside the regulatory framework and are often created through community projects. These credits may have additional ecological and social value.

We hope this helps with your understanding of carbon trading and carbon credits?

Air Travel GHG emissions baddie? You decide!

We often get asked about the GHG emissions impacts of air travel.

A general rule of thumb is that if you don’t need to fly then don’t do it.

We use Air New Zealand as a case study for our clients.

To follow is some information that may assist you when you look at the amount of air travel you undertake.

We have chosen Air New Zealand to use as a case study as they are a great example of a

New Zealand company who operates in a global market where competition is fierce and competitive.

The impact of airline emissions has become a “hot topic” and there is research that states that airlines make up 2 % of total global GHG emissions.

The IPCC report 1999, p.6 states that aviation accounts for 2% of worldwide CO2 emissions from fossil fuel use, according to a forecast by the UN International Panel on Climate Change. This could reach 3% by 2050.

Transport in general accounts for 14% of global greenhouse gas emissions.

Aviation is responsible for 12% of CO2 emissions from all transport sources, compared to

76% from road transport, according to the Stern review.  (Stern Report Annex 7).

As you can see total global emissions from aviation are quite small. However as more of us are using air travel, more of us have a sustainability focus and more of our companies are reviewing the impacts of air travel of our GHG emissions inventories the aviation industry has to adapt to these fundamental changes in customer behaviour.

For Air NZ who is our national flag carrier the issues are quite challenging! Apart from Air NZ’s Tasman and pacific services all of their flights are long hall – more than 5 hours in duration.

Operational Change vs. Sustainability

Air NZ is tackling sustainability from a few fronts, they include:

• Operational Fuel efficiency – smart approaches to landing. Air NZ is pioneering CDA – Continuous Descent Approaches, which involves a more gradual and continuous decent. The trial is on landings at San Francisco and can save up to 300kg of fuel on every flight.
• Trialling of bio – fuels
• New Fleet – 777 and 787 – longer flights with less fuel burn
• Operational sustainability – recycling at the airport – water usage on the plane
• Public commitment to the environment – stated long term goal sustainable air travel.

Pay as you go carbon credits

Air NZ has set up a carbon offset calculator so that you can calculate your carbon impacts when flying on Air NZ. https://carbonoffset.airnewzealand.co.nz/carbonoffset/carbonCalculator.do

The following information has been taken from the Air NZ Web site:

What does Air New Zealand do with the money paid to offset carbon emissions?

All the money, net of tax, contributed by customers to offset their CO₂ emissions funds the purchase of carbon credits that reduce, or avoid, greenhouse gases. 

 

Air New Zealand takes no administrative or other fee.

 

What carbon credits is Air New Zealand currently purchasing?

Air New Zealand pre-purchases carbon credits to ensure that they are available for this online carbon offset programme.

The carbon credits we are currently purchasing are Emission Reduction Units from TrustPower's Tararua windfarm. The New Zealand Government awarded these Kyoto

carbon credits as part of its Projects to Reduce Emissions programme.

How can I see how my money is being spent?

Each year, the information about what carbon credits were purchased, their cancellation and other information about how much they cost will be published and readily available to contributors.

Leader or Baddie – You decide?

We would like to pose the following questions to help you decide:

• Do you think Air NZ is taking a leadership position on sustainability? Why is that?
• Is their pay as you go carbon credit off-set scheme a compelling offer for you? Has anyone used this service yet?
• Are the current initiatives enough?
• Would you prefer to use Air NZ over a rival based on their sustainability practices? Why is that?

Sustainability Training the new frontier

I was having a look at the NZ Herald web site today and as I usually do I went in on my usual “climate change” search and came across an article about a new course being offered by the Open Polytechnic.

 

It s called the Graduate Diploma in Sustainable Management (Level 7) and is a new Diploma. (cost of course $2670)

 

The web information told me “Sustainability, carbon footprint, food miles - these terms are becoming more common as we assess the impact of our lifestyle on the earth and question our current environmental or sustainable management of natural and physical resources. The Open Polytechnic of New Zealand's Graduate Diploma in Sustainable Management builds up skills and knowledge in the area of environmental policy and management.

 

Students examine the theory and practice of environment management and devise and evaluate approaches to environmental problems. This includes a compulsory full-year independent research project on an environmental issue of special interest. Past research topics include energy issues, waste management issues and implementation of environmental legislation” More information can be found at Open Poly.

 

This got me thinking about training and sustainability issues.

 

As you may have seen from other posts on this blog Sempre Avanti Consulting (SAC) is running a Sustainability Strategy Master class on 24 & 25 June and 7 & 8 July 2008.

 

The cost of the two day master class is $1995 +GST

 

Key learning objectives:

 

• Define what sustainability means for your organisation
• Develop a sustainability vision and mission statement for your organisation
• Develop a sustainability strategy to implement this vision in your organisation
• Audit your organisations environmental footprint
• Ensure social responsibility in your organisation

 

Developing & Implementing a Sustainability Strategy in Your Organisation is a must attend seminar for all organisations who want to ensure that their organisation is environmentally sustainable.  

 

Over two days combining practical exercises, theory and case studies, learn how to measure your organisations environmental impact, develop a strategy to ensure the sustainable organisation, and communicate your actions to stakeholders, customers, suppliers and the community at large.

 

Who should attend

 

• Business Owners
• Sustainability Managers and Advisors
• Procurement Managers
• General Managers
• Communications Managers
• Environmental Managers
• Managers responsible for Climate Change and Emissions
• Anyone with an interest in enhancing the sustainability of their organisation

 

Please contact Gordon Shaw on email: gordon.shaw@sempreavantinz.co.nz or on mobile             +64 21 249 3681        if you would like to discuss holding an in-house version of this master class within your organisation.

The road to carbon neutral - where to start?

We often get asked about how quick, how easy, how long, and how much it costs to become carbon neutral?

The answer is "it depends"!!

We suggest that it is better to focus on environmental sustainability and the links to corporate social responsibility. Then the first path on the road can be on the establishment of your GHG emissions footprint.

To follow are some typical questions we ask at the start of the journey. We hope they help.

In answering the question “how to get certified” we would like to raise with you two initial phases. Firstly there is an assessment and analysis phase which has a goal of establishing a framework. This includes setting strategic goals for carbon neutrality, and deciding on the measurement framework.

 

The next phase is related to the Four M’s Measure, Manage, Mitigate and Market. The first M is about undertaking a GHG emissions inventory which becomes the base point for the next M which is the management of the emissions.

 

In summary this involves defining a measurement frame work, reviewing your Scope 1, 2 and 3 emissions accounting for them and coming up with a base measurement of your GHG footprint.

 

Once you have a base measurement you can make some decisions about the need for certification which would include choosing a certification programme, preparing an application, preparing for a audit, being audited, achievement of certification and marketing of the certification

 

To give you an idea of the depth of the process, to follow are some questions we would ask at the starting point of this process.

 

What do you want from Carbon Neutrality? Cost reductions, market credibility, business transformation or some other goal?

 

Waste – do you currently have a waste reduction program – e.g. minimise set up and production of non saleable product before the production run commences.

What about a recycling program?

What about recovery of solvents or other volatiles used in production processes?

 

Utilities – what are you doing around minimising the use of gas, electricity, water etc.?

 

Factory layout and physical facilities – is there room in the factory and on the factory land for the ‘greening’ the sites?

 

Inbound and outbound logistics – how do you transport production inputs and finished goods? Road, rail, air? Does your logistics supplier(s) have meaningful greenhouse gas reduction programs?

 

How do you communicate between your work sites – teleconference, VOIP, face to face? How do you travel between them?

 

What about your employees travel – do they drive to work, take public transport, bus, rail? Do you offer subsidised parking or free parking.

Green employee travel? How Green and can we make it sustainable?

Have you been thinking about leaving your car is the garage and taking the bus or train to work as an alternative? If so then good on you. Personal behaviour change is needed for the community as a whole to make positive change to employee travel.

We are responsible for the decision to use or not use our cars for commuting.

I am writing about this issue for an upcoming training master class on the topic of sustainability strategy. To follow is an extract from the training narrative.

EMPLOYEE TRAVEL / TRAVEL PLANNING

When measuring a companies GHG inventory one area within scope 3 (indirect) emissions is the vexed area of emissions generated by employee travel. Businesses can decide to exclude responsibility for employee emissions (getting to and from the place of business). However we suggest to you that if a business is truly living a corporate socially responsible way then employee emissions should be part of the companies GHG inventory.

 

The boundary that will cause some gnashing of teeth can be where does personal responsibility end and corporate responsibility start? Is it when your employee leaves the house? Or is it when they get to work?

 

Behaviour change

 

It does not matter if you are coming from and individual or business stand point to reduce emissions from employee travel takes changes in behaviour.

 

A changed behaviour is needed to get your employees to think about their modes of transport in getting to and from work. It takes employee behavioural change to change modes from a vehicle to public transport. It takes a manager to change behaviour to offer incentives for employees to change modes. It takes corporate behaviour change to instigate corporate polices that support reductions in GHG emissions. It takes business behaviour change to roll out travel planning policies to ensure that the best modes are used for particular activities.

 

In essence behavioural change is all about encouraging use of alternative modes of transport. This can include cycling, walking and public transport, car sharing schemes and travel behaviour change including travel planning.

 

Incentives

 

How doe we discourage car/vehicle use?

 

Incentives involve the improvement or provision of new facilities to facilitate the use of non-car and higher occupancy modes of travel by increasing the attractiveness of these alternatives. It may also involve the provision of financial incentives for use of non-car modes.

 

One option could be is to offer discounted public transport tickets to employees. Or to have showers, lockers and secure bike parking for those employees that cycle to work.

 

Parking

 

Company parking can be seen as both a incentive or a distinctive to encourage behaviour change.

 

Disincentives are focused primarily on managing car parking through restricting the amount of parking available, operating a permit system or charging regime.

 

This can be linked to financial incentives for not bringing a car to site.

 

Another alternative is to lease car parks on the CBD fringe and encourage the use of public transport with in the CBD by giving employees free or discounted tickets.

 

Public Transport

 

Public transport is an alternative to vehicle use only where it is a viable alternative and is fit for purpose. For example the commuter train service in Wellington is a viable alternative to car commuting. Train commuting in Auckland is not a viable alternative for many reasons. Why do you think that is?

 

Cycling

 

Cycling can be encouraged for employee commuting. You must consider the facilities for employees (showers etc) as well as health and safety issues and any business and personal insurance issues.

 

An active cycling policy within a company can have attractive side benefits such as improvements in employee health.

 

Travel Planning

 

In practice, travel planning is a set of activities or initiatives specifically designed to widen travel choice to a particular location with the prime objective of reducing the number of single occupancy car/vehicle trips to that location.