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Department of Environment and Climate Change NSW
ROD CLAREBusiness Partnerships
11 November 2008
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TAKING A FRESH LOOK
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Overview
Who is the DECC?
Working towards sustainable business
Sustainability Advantage
Getting involved
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Department of Environment and Climate Change NSW
NSW environmental regulator
Lead agency on climate change adaptation
Sustainable business support
Business Partnerships
Energy Saver Funding
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What is the problem?
Unsustainable use of resources
Climate Change
Air pollution
Disappearing forests, fisheries, cropping lands and plant and animal species.
Danger of ecological collapse
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What is the RISK of not taking action?
Physical
Reputation
Commercial- Most energy contract prices will
rise 35% – 40% from June 09 (+ CPI and network charges)
- Waste Disposal Costs up 25% By 2010-11
- Water costs expected to rise by approx 50% by 2011-2012 (Subject
to IPART)
- Regulatory
Supply Chain
“ … I am no scientist. But I do know how to assess a risk – and this one is clear. Climate change poses clear, catastrophic threats. We may not agree on the extent, but we can’t afford the risk of inaction”
Rupert Murdoch
11 May 2007
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What are the opportunities from action?
Leadership
Direct business benefits- Reduce compliance costs
- Cost savings through operational efficiency
– energy, water and waste
- Improve reputation and “intangible” value
Engaged stakeholders - Retain / motivate staff (satisfaction,
productivity)
- Community licence to operate
86% of people would think more highly of their employer if they were addressing the climate change issue
[STW Group: Climate change and its implications for business and brands 2007]
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What is sustainability?
“Meeting the needs of the present without compromising the ability of future generations to meet their own needs.” Brundtland Report, 1987
Remember!
“ The future is not somewhere we are going…..It is somewhere we are creating.”
Professor Ian Lowe
Social
Economic Environmental
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What does it mean to be a sustainable organisation?
Stakeholder driven – recognise the need to make trade-offs (between shareholders and stakeholders)
Transparent and accountable - internally and externally
Trustworthy – perception impacts reputation
Integrated - social and environment is just part of day to day activity
Risk aware – continually review risk and opportunity
Data aware – integrated tracking and reporting
Communicate - engage proactively internally and externally
Treads lightly – reduce to minimum environmental and social impacts
Account for costs – account for environmental cost on balance sheet
… to “create value”
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Regulatory compliance
Resource managementCompetitive Advantage Leadership - Set the
agenda Objective >>
- Compliance focus to avoid liabilities
- Ad hoc eco- efficiency projects
- Environmental risk the responsibility of the operations manager only
- No engagement with staff and external stakeholders
- Systematic approach to eco-efficiency projects (EMS)
- Technological best practice
- Benchmarking & continuous improvement
- Staff training
- Public corporate commitment to sustainability
- Sustainability fully integrated into policies & plans
- Employee participation
- Operational & personal Sustainability KPIs
- Product stewardship
- Sustainability vision determines corporate structure & strategy
- Sustainable products & services
- New markets
- Promote Sustainability
Activities >>
Most companies Leaders Not for all
Reactive Eco-EfficiencyStrategic
SustainabilityVisionary
Sustainability Road Map
Where does your company sit?
Culture >> OpenClosed
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Does this sound like your business?
We want to improve….but where do we start?Prioritise, ‘pull together’ and add value
Holistic rather than ad hoc
We’ve had some resource efficiency successes.....
what next?
Resource
Efficiency
Government & Business interface
Environmental
Responsibility/Risk
Environmental Action – Traditional Approach
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Diagnostic
Visioning
Resource Efficiency
Staff Engagement
Environmental Responsibility
Supply Chain
Commitment and Planning
Climate Change
Stakeholder Engagement
Commitment
Cluster network Modules Tailored support+ +
Continuous improvement and evaluation
12 t
o 1
8 m
on
ths
choice of
The Process
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Management Diagnostic
Sustainability
LEADERSHIPLEADERSHIP UNDERSTANDINGUNDERSTANDING
SUPPLY CHAINSUPPLY CHAINMANAGEMENTMANAGEMENT
MEASUREMENT & MEASUREMENT & VERIFICATIONVERIFICATION
ACHIEVEMENTACHIEVEMENT
OPERATIONS &OPERATIONS &MAINTENANCEMAINTENANCE
INNOVATION & INNOVATION & NEW TECHNOLOGYNEW TECHNOLOGY
Achievement in the past 12 months
Innovation & new technology Metering & MonitoringReporting, feedback and control systems
Operating and Capital Budgets
Raw Materials and Equipment Product Stewardship
Operating proceduresMaintenance procedures
Demonstrated corporate commitment
Understanding of performance and opportunities
Targets, performance indicators (KPI) and motivationPlans
AccountabilitiesAwareness and training Employee Management Stakeholder Engagement
PLANSPLANS
FINANCIAL FINANCIAL MANAGEMENTMANAGEMENT
PEOPLE / PEOPLE / STAKEHOLDERSSTAKEHOLDERS
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Diagnostic One-2-Five® Rating
= Best Practice and Continuous Improvement
= Management of Environmental Sustainability integrated into Business Systems
= Formal Systems for Managing Environmental Sustainability
= Informal Eco-efficiency Practiced
= Identified the Need to Improve (Default rating)
Sustainability
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Diagnostic Results – report card
Element
Level of Development
Critical Action Items
1 Star
2 Star 3 Star 4 Star 5 Star
1.1 Demonstrated corporate commitment x 2.1 Understanding of energy performance and opportunities x Critical 2.2 Understanding of water performance and opportunities x 2.3 Understanding of waste performance and opportunities x 2.4 Understanding of transport and land management x 3.1 Supply chain management - Procurement x Critical 3.2 Supply chain management - Product stewardship x 4.1 Targets, performance indicators (KPIs) and motivation x Critical 4.2 Plans x 5.1 Accountabilities x 5.2 Awareness and training x Critical 5.3 Internal stakeholder management x Critical 5.4 External stakeholder management x 6.1 Capital and operating budgets x 7.1 Operating and maintenance budgets x 8.1 Innovation and new technology x 9.1 Metering and monitoring x 9.2 Reporting, feedback and control systems x 10.1 Sustainability performance in the past year x 10.2 Auditing of progress x
Overall Ranking: 3 Stars % Achievement: 49 % % Achievement to reach next level: 17 %
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Action Plan
Your Recommended Actions Module Responsibility Date
2.1 Understanding environmental impact s and obligations
Put a system in place to ensure you comply with your environmental obligations
Risk Mgnt. & Envt. Responsibility
4.1 Targets, performance indicators (KPIs) and motivation
Set overall cost (and/or volume) reduction targets that specifically incorporate eco-efficiency savings.
Vision Com.& Planning
2.3 Understanding of energy performance and opportunities
Perform a detailed assessment of energy savings in each of your energy intensive processes and operations.
Resource Efficiency
5.2 Awareness and training
Conduct training in components of Environmental Sustainability and the associated environmental implications for relevant staff.
Staff Engagement
3.1 Supply chain management - Procurement
Develop supplier selection guidelines Supply Chain
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Modules
Visioning Climate Change Supply Chain
Commitment & Planning
Strategic SupportResource Efficiency
Environmental Responsibility
Staff Engagement
Stakeholder Engagement
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What happens in a Module?
Resource Efficiency1. Walkthrough audit
2. Staff briefing & set up Efficiency Teams
3. Brainstorming sessions & REAP Action Plans
4. Efficiency teams meetings Prioritise opportunities
Assign roles
Set performance monitoring
Continuous improvement
5. Implementation
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What happens in a Module?
Climate Change1. Awareness workshop
2. Develop GHG inventory
3. Quality check
4. Specific workshops Minimising GHG footprint
Managing climate risk
Opportunities
5. Strategy & action plan
6. Implementation
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Clusters in Action –200 companies Newcastle Council (Marquis, Newcastle
Airport, Fairfax Regional Printers) Food manufacturers (Goodman Fielder,
Coca Cola, Kelloggs) Poultry (Bartter, Inghams, Red Lea, Biaida) Building products (Laminex Group, Ontera
Carpets, Austral Bricks, Vinidex, CSR Gyprock, James Hardie)
Healthcare (Ramsey, Carrington Centennial)
Illawarra Resource Recovery – Bluescope Steel
Riverina (Cassella Wines, McWilliams Wines, Orlando Wines, De Bortoli Wines, National Foods, Polkinghorne & Longhurst (surveyors), Murrumbidgee Irrigation)
TAFE & universitiesTAFE & universities (7 TAFE Institutes & 2 (7 TAFE Institutes & 2 unis)unis)
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Resource Efficiency Opportunities
Riverina Cluster (18 months) - 12 wineries and agribusiness
Casella, Debortoli, McWilliams, Orlando, Westend, Bartter, Rockdale Beef, National Foods, Murrumbidgee Irrigation, Real Juice, Chicken Income Fund, PHL Surveyors
Electricity 1,600 MWh Gas 9,600 GJs Kilometres 100,000 + (truck movements) Waste 150 tonnes Water 150 ML p/a Vegetation 27,000 trees
Saving - $2.36 million pa in 07/08 (payback < 2 years)
Expected to double in 08/09
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“It is the most well conceived continuous improvement system I have seen. It balances systems with resources and strategic intervention to provide momentum and understanding to environmental programs.
This concept should enable all areas of industry at any level of environmental management, to make real environmental progress.”
James Kelly, Innovations Manager, Rockdale Beef, January 2008
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Benefits of the program
“We found the Climate Change module very informative and we now have a better understanding of our place in a carbon emissions environment as well as our risks and opportunities as a company. “
(Koppers Australia)
“Our business model is underpinned by long-term sustainable systems, providing long-term customers with sustainable high quality beef products”.
(Rockdale Beef)
“The Sustainability Advantage Program has supported and helped establish the integration of the environmental aspects of McWilliams Wines’ business planning processes”. (McWilliams Wines)
“Facilitation, networking and feedback from fellow cluster members has been a very positive experience for Orlando Wines. Efficiency gains can translate across many different industries.”
(Orlando Wines)
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Invitation to participate
Joining fee – up to $3,000 ( more than 100 employees)
To find out more please contact:
Tel: 8837 6004
