Nzica sust pres michael field & chris lindley

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This is a presenation I did for the New Zealand Institute of Chartered Accountants on the benefits of corporate sustainability.

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Michael FieldMichael Field Sustainability Manager, North Shore City Council

MeMe

Corporate Sustainability Practitioner Working in this field for over 10

years Over 30 published papers and articles Guest Lecturer at Massey Uni Recipient of the Global “Sustainability

Champions Award” in 2003

TNSTNS

What we TAKE

(from the earths crust)

What we MAKE

(non-biodegradable materials & emissions)

What we BREAK (damage to natural cycles and ecosystem)

Sharing the CAKE

(impact on society)

Resource useResource use - - The Funnel MetaphorThe Funnel Metaphor

Res

ou

rces

Time

Demand

Supply

?

Corporate SustainabilityCorporate Sustainability

Is this the same as ‘sustainability’? It’s a holistic process for assessing the

overall ‘health’ of an organisation Includes everything

Sound businessSound business

Sustainability thinking is not about a driving need to save the planet

It’s not even new!

Frederick Herzberg’s theories of business management

The theoriesThe theories

Holistic assessment framework

Measures overall health, not just financial

Understanding all impacts

Therefore all risks, liabilities and opportunities

What’s includedWhat’s included Ecological protection Climate change Peak oil Energy Transport Infrastructure Reputation management Buildings Materials efficiency Waste minimisation Species protection Impact assessment (holistic) Sustainable development?

In real terms…In real terms…

Materials minimisation Emissions Effluents and waste Sustainable procurement Energy management / efficiency Biodiversity Work-flow efficiency

Economic performance Sustainability policies Sustainability training and education Stakeholder engagement Sustainability reporting Environmental / Sustainability

Management System

External driversExternal drivers

Stakeholder pressure Sustainability reporting Government pressure Legislation and compliance Competitors are doing it….

The ‘by comparison’ metaphor

OpportunitiesOpportunities

Cost savings through efficiency Energy reduction Waste to landfill Materials (doing more with less)

In my experience – between $500k and $3.5m in 12 months

How can you know all of them without sustainable thinking?

A couple of case studies:A couple of case studies:

Interface IncInterface IncNorth Shore City CouncilNorth Shore City Council

Interface IncInterface Inc

Australian arm ranked 190th

Out of 190 business units!

Programmes kicked off in 2002 End of 2003 – won global Eco-Sense

award (1st out of 190) Great ‘sustainability story’, but what else?

Interface Inc contInterface Inc cont Waste reduction at plant – saving of $2.5

million in 12 months With 3 to 1 rule that’s $7.5m avoided

expenditure Why use the material if you can’t sell it?

Sustainability presentations Increase in market share of 60%

Interface Inc contInterface Inc cont

Cheaper manufacturing costs Ability to compete aggressively if needed If not, margin rather nice

Staff engagement – through the roof! Bonus payments would have helped Staff turnover down Employer of choice

Not even specialNot even special

While consulting Worked with many NZ businesses, from

SME’s, to global corporates Results are the same – just scaled

Remember, none of them were running ‘fat’

They were already well managed

So, what is NSCC doing now?So, what is NSCC doing now?

After all, talk is cheap!After all, talk is cheap!

NSCC’s commitmentNSCC’s commitment

North Shore City Council believes that we have a clear responsibility to act, operate and

develop in the most sustainable way possible. It is our commitment to lead by example by recognising the critical importance of our

impacts on social, economic, cultural and environmental concerns. It is our aim to

continually strive to reduce the negative and maximise the positive impacts of our

operations.

We look afterWe look after

Corporate sustainability programmes Communications & education Energy management Procurement WasteWise workplace programme Fleet management Carbon accounting Sustainability reporting

Current projectsCurrent projects64 active projects at the moment, so just a few:

Energy management incl. efficiency 1 million kWh saved last year – enough to power 250

homes for a year and saved $200,000 rationalised energy spending, installing a Burner

Management Unit, energy conservation campaigning

Procurement contract renegotiations and new contracts – more than

$700,000 saving

Waste minimisation waste to landfill down 80% - minimum saving of $90,000 diverting 800 tonnes of seaweed as well as office waste

Current projects cont’dCurrent projects cont’d Fleet management

investigating future vehicle and fuel use/supply options

Climate Change incl. carbon accounting now fully ISO14064 compliant for carbon accounting

Sustainability Report first GRI compliant report released last year (just finished

latest)

Auditing & reporting extremely important

A total of more than $1.3 million in savings last year

Most savings are ongoing and will increase over time

Corporate Sustainability @ NSCCCorporate Sustainability @ NSCC All-encompassing (not an add-on) It’s all about raising efficiency and eliminating

waste in all its forms Changing the way we think Understanding ALL of the impacts, both

Positive and Negative It’s not about saving the environment, that’s

just a great by-product Always seeking the additional opportunities

Positive press Positive press Free marketing:

The Independent The North Shore Times Carbon News Exporter Magazine Voice Magazine The National Business Review The Aucklander Scoop Independent News

An example of seeking An example of seeking innovative solutionsinnovative solutions

(because I don’t do all this by myself)(because I don’t do all this by myself)

Pt 2:Pt 2:Energy & Invoice ManagementEnergy & Invoice Management

The problemThe problem Some outstanding electricity invoices from

2002! No visibility of our bills (hundreds) Manual checking of kWh charge (as if)! Huge time spent

over 75 hours a month and not keeping up

No visibility of accounts No ability to identify savings

A need to report on carbon emissions

The solutionThe solution

Revolution-ID - FoundationFootprint™

Fully automated software

Does, quite literally, everything for me!

It’s all about automation!It’s all about automation!

What I get, as a client (no techy stuff) Electricity refunds - $221,166.13 Savings per annum - $16,624

Sites ID’d as not NSCC or meters removed

Gas refunds - $1,174.43 Processing time saved – 75 + hours:

Corp Sust team – 5 + Accounts payable – 20 + Energy approvers – 50 +

What it does (for us)What it does (for us) Invoices fully automated

Sent from energy company to software

Software ‘declines’ invoices with incorrect rates – notifies energy company

Email generated to all energy approvers Log-on and approve / decline with reason

Declines notified to energy company

Accounts payable file generated

Now used forNow used for

Electricity invoices Gas invoices Fuel invoices Water invoices Mobile phone invoices

Also gives us ISO: 14064 compliant carbon accounting

Revolution ID -FoundationFootprint™

www.Rev-ID.com

• Chris Lindley – Founder & CEO• Auckland based, Kiwi owned company• Ex-Icehouse Incubator resident• Member of the GHG Protocol’s

Stakeholder Advisory Group and NZBCSD• A “Zero Weight” export company• Customers – local govt, health, mining...

What is FoundationFootprint™?

www.Rev-ID.com

Carbon, energy and resource management softwareWeb basedEnterprise level softwareStandards based (GHG Protocol, ISO 14064)Monthly subscription fee

FoundationFootprint™

www.Rev-ID.com

Carbon footprint data at group, facility and emission source levelAutomated:Business intelligence & reportsData gatheringNotifications and audit trailsSupplier integration

Value Proposition

www.Rev-ID.com

Carbon, energy and water management

=Cost savings (Refunds and reduce)

Time savingsCompliance

Real time reportingGreat information!

ROI Example

www.Rev-ID.com

North Shore City Council:•3 year contract•ROI in 7 months (Electricity & Gas refunds)•Now mobile phones•Main source of information

Audience

www.Rev-ID.com

•Large complex organisations•Local and regional govt•Multi nationals•Co-ops E.g. Fonterra

•Large emitters•ETS participants•Exporters•Foreign owned companies

Risks and Issues

www.Rev-ID.com

Risks and Issues

www.Rev-ID.com

• Data collection• Distribution• Collection• Validation• Reporting

• Comply with multiple GHG programs

Current Methods

• Microsoft Excel and email• ERP• Home grown systems

www.Rev-ID.com

The Current Way

www.Rev-ID.com

• Takes 1 person one week to collate data from across their organisation per month

• Inaccurate information, formulas broken, emission factors wrong, missing or tampered with

• Different people in same facility will hold different information

• Time consuming to aggregate spreadsheets• Virtually impossible to recalculate if changing historic

data or control approach• Chasing people for their reports and contact details

The FoundationFootprint™ Way

www.Rev-ID.com

• Central, web based data store• Can still use familiar tools - Microsoft Excel and email but

all spreadsheets are managed by FoundationFootprint™ • Can import your data directly from your suppliers• All calculations based on raw data – can add, edit,

remove historic data and change control approaches • No more week long exercises – Data aggregation,

business intelligence and reports in real time• User self management – Maintain details, automated,

timely reminders

FoundationFootprint™ and Water

www.Rev-ID.com

Compare water uses (including staff presence, industrial use, and supply chain) with validated water and sanitation availability information

Calculation of water consumption & efficiency

Establish relative water risks in your organisations’s portfolio to prioritise action – including more detailed assessment

Create key water GRI Indicators, inventories, risk and performance metrics and geographic mapping

Enable effective communication with internal and external stakeholders on your company’s water issues

www.Rev-ID.com

Thank you & questions?Thank you & questions?

Chris Lindley

chris.lindley@rev-id.com

+64 (0) 21 380 845

Michael Field

Michael.field@northshorecity.govt.nz

+ 64 (0) 27 695 1002