Environment and Energy Toolkit - Australian Industry Group · The Environment and Energy Toolkit will assist your business understand environment and energy risks and the steps you

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Environment and Energy Toolkit

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FACT SHEETS

CHECKLISTS

ACTION PLAN

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E N V I R OE N E R G Y T OOLK I T

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WHAT IS IT?

The Environment and Energy Toolkit will assist your business understand environment and energy risks and the steps you could take to mitigate these risks and improve productivity.

HOW TO USE THE TOOLKIT

Firstly read the Fact Sheets to gain an understanding of the key environment and energy issues. You may also need additional information and advice if the issues are outside your skill set.

Once you are comfortable with the issues you can then utilise the Checklists and walk around your site to assess performance and identify opportunities for improvement.

Use the Action Plan template to then track progress and assign responsibility.

WHAT IS IN THE TOOLKIT?

The Toolkit contains a series of Fact Sheets to assist you understand the environment and energy risks that may impact your business and the opportunities to improve productivity. The fact sheets cover the following topics:

Understand your obligations and minimise your risks Managing risks and improving productivity Reducing your energy costs Minimising waste and maximise your resource efficiency Displaying your environmental credentials Influence and win over your executive Understand sustainability principles Becoming environmentally sustainable

Once you have familiarised yourself with the issues, you can then use the following Checklists to help assess how your business is performing and the opportunities for improvement:

Operational environmental management checklist Energy efficiency checklist Operational efficiency checklist Materials: suppliers and packaging checklist Reusing and recycling waste checklist Materials: process design, alternative raw materials and operation checklist Waste management checklist

And the final step in the process is to develop your Action Plans to assist you: Document the opportunities for improvement Nominate roles and responsibilities Work to a timeline Track your progress

ENVIRONMENT AND ENERGY TOOLKIT YOUR GUIDE



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Fact Sheets

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ENVIRONMENT AND ENERGY COMPLIANCE

UNDERSTAND YOUR OBLIGATIONS AND MINIMISE YOUR RISKS

All businesses have a legal obligation to protect the environment from the potential impacts of their business’s operations. Environmental legislative requirements vary from State to State. However, the general structure of environmental legislation is the same, as illustrated in the diagram below.

MANAGING ENVIRONMENT AND ENERGY COMPLIANCE

The table below provides a summary of the key contacts for managing environment and energy compliance throughout Australia. The table provides details of the general environmental duty requirements for each State.

PRIMARY LEGISLATION eg. Acts

GUIDANCE eg. Statutory and non-Statutory

Guidelines and Protocols

SUBORDINATE LEGISLATION eg. Statutory policy/regulations

Jurisdiction Department Contact Description General Environmental Duty

Commonwealth

Department of Sustainability, Environment, Water, Population and Communities

www.environment.gov.au

The Department of Sustainability, Environment, Water, Population and Communities is responsible for implementing the Australian Government’s policies to protect our environment and heritage and to promote a sustainable way of life.

A person must take the steps that are practicable and reasonable to prevent or minimise environmental harm or environmental nuisance caused, or likely to be caused, by an activity conducted by that person (s.22 of the Environment Protection Act 1997)

Clean Energy Regulator www.cleanenergyregulator.gov.au

The Clean Energy Regulator administers the Carbon Pricing Mechanism, the National Greenhouse and Energy Reporting scheme, the Carbon Farming Initiative and the Renewable Energy Target.

Commonwealth Department of Resources, Energy and Tourism

www.ret.gov.au

The Department of Resources, Energy and Tourism develops and delivers policies to increase Australia’s international competitiveness, consistent with the principles of environmental responsibility and sustainable development.

Australian Capital Territory

Environment and Sustainable Development Directorate

www.environment.act.gov.au

The Environment and Sustainable Development Directorate role is to enable a dedicated and clear focus on meeting the challenges of climate change, help ensure that the ACT becomes a fully sustainable city and economy, and lead the Government’s achievement of its vision to become the solar capital.

Environment Protection Authority

The EPA’s role is to protect the environment by establishing a single and integrated regulatory framework for environmental protection. EPA also ensures that decision-making incorporates ecologically sustainable development principles and encourages responsibility by the whole community for the environment.


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Jurisdiction Department Contact Description General Environmental Duty

New South Wales

Office of Environment and Heritage

www.environment.nsw.gov.au

The Office of Environment and Heritage develops and leads policy, reform and education in sustainability, biodiversity and native vegetation, coastal protection and Aboriginal cultural heritage.

There are a range of offences defined in the Protection of the Environment Operations Act 1997 including:– Disposal of waste in a

manner that harms or is likely to harm the environment (s.115 and 116)

– Pollution of waters (s.120)– Air pollution due to failure

to operate and maintain plant in a proper and efficient manner(s.124 and s.125), failure to deal with materials in a proper and efficient manner (s.126), causing or permitting emissions of air impurities in excess of regulated standards (s.128), or emission of offensive odours from a premises licensed for scheduled activities (s.129)

NSW Environment Protection Authority

www.epa.nsw.gov.au

The NSW EPA is responsible for environmental regulation, particularly the regulation of air emissions, contaminated sites, dangerous goods and hazardous materials, noise, pesticides, forestry activities, waste and water quality.

Northern Territory

Northern Territory Environment Protection Authority

www.ntepa.nt.gov.au

The Northern Territory EPA is responsible for providing advice on the environmental impacts of development proposals and policy advice and regulatory services to provide for effective waste management, pollution control and sustainable practices.

A person who conducts an activity that causes or is likely to cause pollution resulting in environmental harm or that generates or is likely to generate waste must take all measures that are reasonable and practicable to prevent or minimise the pollution or environmental harm and reduce the amount of the waste (s.12 of the Waste Management and Pollution Control Act 1998)

Queensland

Department of Environment and Heritage Protection

www.ehp.qld.gov.au

The Department of Environment and Heritage Protection is responsible for managing the health of the environment to protect Queensland’s unique ecosystems, including its landscapes and waterways, as well as its native plants and animals and biodiversity.

A person must not carry out any activity that causes, or is likely to cause, environmental harm unless the person takes all reasonable and practicable measures to prevent or minimise the harm (s.319 of the Environmental Protection Act 1994)

South Australia

Department of Environment, Water and NaturalResources

www.environment.sa.gov.au

The Department of Environment, Water and Natural Resources provides policy leadership in managing South Australia’s natural resources including water security, climate change, sustainable land management, public estate management and biodiversity conservation.

A person must not undertake an activity that pollutes, or might pollute, the environment unless the person takes all reasonable and practicable measures to prevent or minimise any resulting environmental harm (s.25 of the Environment Protection Act 1993)

Environment Protection Authority South Australia

www.epa.sa.gov.auEPA SA is responsible for the protection of air and water quality, and the control of pollution, waste, noise and radiation.

Tasmania

Department of Primary Industries, Parks, Water and Environment

www.dpiw.tas.gov.au

The Department of Primary Industries, Parks, Water and Environment is responsible for the sustainable management and protection of Tasmania’s natural and cultural assets for the benefit of Tasmanian communities and the economy.

A person must take such steps as are practicable or reasonable to prevent or minimise environmental harm or environmental nuisance caused, or likely to be caused, by an activity conducted by that person (s.23A of the Environmental Management and Pollution Control Act 1994)

Environment Protection Authority Tasmania

www.epa.tas.gov.au

EPA Tasmania purpose is to regulate developments and activities that may impact on environmental quality and to promote best practice, sustainable environmental management.

Victoria

Department of Environment and Primary Industries

www.depi.vic.gov.au

Department of Environment and Primary Industries is Victoria’s lead government agency for protection of the environment and management of natural resources.

There are a range of offences defined in the Environment Protection Act 1970 including:– Pollution of waters (s.39)– Pollution of atmosphere (s.41)– Pollution of land (s.45)– Dumping, depositing, discarding or abandoning industrial waste (s.27A)

Environment Protection Authority Victoria

www.epa.vic.gov.au EPA Victoria’s role is to regulate pollution and has independent authority to make regulatory decisions under the Environment Protection Act 1970.

Western Australia

Environmental Protection Authority

www.epa.wa.gov.au

EPA is made up of a five-member board appointed by the Governor. The EPA has statutory obligations under the Environmental Protection Act 1986 to conduct environmental impact assessments, initiate measures to protect the environment from environmental harm and pollution and to provide advice to the Minister on environmental matters generally.

The Environmental Protection Act 1986 defines a range of offences for a person who causes pollution or emits unreasonable emissions (s.49), or a person who discharge or abandons waste (s.49A), or causes serious environmental harm (s.50A) or material environmental harm (s.50B)

Office of the Environmental Protection Authority

The Office of the Environmental Protection Authority supports the EPA in conducting environmental impact assessments and developing policies to protect the environment. The OEPA also monitors compliance with Ministerial conditions related to approvals.

Department of Environment Regulation

www.der.wa.gov.au

The Department of Environment Regulation has broad responsibility for environmental regulation including clearing of native vegetation, contaminated sites, preventing and responding to pollution, industry licensing and works approvals.

BENEFITS

The benefits of managing environment and energy issues well are: Reducing potential exposure to increasingly active and enforcement focused regulators Reduce impacts of expected price increase of utilities through more efficient use of energy

and water Improved overall business competitiveness through better use of resources

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ASSESSING ENVIRONMENTAL RISK

MANAGING RISKS AND IMPROVING PRODUCTIVITYY

Risk is the chance of something happening that will have an impact on a given objective or set of objectives. Risk may arise from an event or an action, or it may arise from lack of action.

In an environment and energy context, risks can typically be grouped into two categories: Risk to the environment – risk that activities of an organization can cause some form of

environmental change Risk to an organization from environment-related issues – risk of not complying with

legislation and other compliance criteria; or business losses an organization may suffer as a result of an issue, such as loss of reputation, fines or costs of litigation

RISK ANALYSIS

Risk analysis is a methodology for determining the relative size of each risk, deciding whether a risk is tolerable or requires further treatment and to prioritise the risks. Risk analysis generally involves determining the likelihood of a risk occurring and the consequence if it occurs and then assigning an overall risk rating.

Risk analysis gives an organization a better understanding of its operations, and an ability to respond more effectively to changes in internal and external circumstances. It may lead to direct benefits to an organization, by improving the information available to management when making decisions.

ASSESSING LIKELIHOOD

Typically the likelihood of a risk occurring is assessed using qualitative descriptions such as:

Rating Descriptor Description

A Almost certain Multiple incidents have been recorded

B Likely Several incidents have been recorded

C Probable Some incidents have been recorded

D Not likely Few recorded or known incidents

E Rare No recorded or known incidents


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ASSESSING CONSEQUENCEThe consequence of a risk occurring is also typically assessed using qualitative descriptions such as:

Rating Descriptor Description

1 Severe Substantial offsite impacts to broader environmentLong-term environmental damageExtensive clean-up requiredComplete failure of environmental protection controls

2 Significant Offsite impacts to a segment of the environmentMedium-term environmental damageOffsite clean-up requiredBreach of environmental legislation

3 Medium Some offsite, temporary impactsModerate onsite impacts

4 Minor Minimal onsite impacts immediately containedNo discernible offsite impactsNo external complaints received

5 Negligible Negligible onsite impactsNo offsite impacts

ASSESSING THE LEVEL OF RISKThe level of risk is a combination of the likelihood of a risk occurring and the consequence of it occurring. It is common to use a risk matrix to provide a measure of the overall level of risk. An example of a risk matrix is provided below.

Risk Analysis Matrix

CONSEQUENCE LIKELIHOOD

ALMOST CERTAIN LIKELY PROBABLE NOT LIKELY RARE

Severe V V V V H

Significant V V V H H

Medium V H H M M

Minor H H M L L

Negligible H M L L L

Level Description Action Required

V Very high risk Immediate action required

H High risk Management required from senior staff

M Moderate risk Specific management required

L Low risk Manage with standard operating procedures

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ENERGY

Compressed air Motors & Drives Process Cooling

& Refrigeration Lighting HVAC

Boiler Easy wins Understanding

your bill Energy Data

Management

Demand Management

Feasibility and investigative studies

Assistance with grant applications

ENERGY EFFICIENCY INTERACTIVE VIDEOSwww.energyefficiencyassist.com.au

ARE RISING ENERGY COSTS REDUCING YOUR PROFITS ?

Energy costs have risen substantially for most businesses over the past five years. The outlook is for ongoing increases in energy prices due to a range of factors including costs of significant network investment, the increasing role mandated for higher-cost renewable energy, strong international markets for energy coupled with a price on carbon. Adjusting to higher prices will require much greater efforts and proactive management on energy efficiency by businesses.

ARE YOU PAYING TOO MUCH FOR ENERGY?

Many companies are not on the most appropriate electricity or gas contract; and as a result are simply paying too much. In many cases, their energy retailer has also progressively clawed back discounts that may have been originally offered. Being on the wrong deal could easily cost your business thousands of dollars in unnecessary expense each year. Saving energy costs goes directly to improving your business’ bottom line. Whether it be a review of your existing arrangement or an annual health check, it is essential that your business is proactively managing energy and its associated cost.

IMPROVING YOUR ENERGY EFFICIENCY?

Identify and implement opportunities to reduce your exposure to rising energy costs by improving the energy efficiency of your operations. A first priority should be to pinpoint the major areas of energy use and prioritise opportunities for energy efficiency. This may include undertaking an energy audit.

Ai Group has developed a number of interactive short videos on energy efficiency, optimisation and management, as well as energy saving technologies/options. These videos can be accessed via our Energy Efficiency website - www.energyefficiencyassist.com.au.

It is also important to understanding where the biggest sources of energy and costs are in the manufacture and distribution of your products and services to assist in the development of strategies to reduce your exposure to rising energy costs.

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MINIMISE WASTE AND MAXIMISE YOUR RESOURCE EFFICIENCY

IS WASTE DISPOSAL COSTING YOU TOO MUCH? ARE THEY BECOMING A LIABILITY FOR YOUR BUSINESS?

THE HIDDEN COSTS

All waste represents loss of resources and loss of money. Waste disposal typically only represents 10% of the total cost of waste, with ‘hidden’ costs associated with the generation of waste accounting for the remainder. These hidden costs may include:

Cost of raw material written off as waste Lost opportunity (when waste could be converted into finished products) Waste treatment cost Rework cost Lost production time Staff time on unproductive waste management work Storage and clean-up costs

These costs are often disguised as inevitable components of running a business, such as rejects, changeover losses, over-specified products or spills.

Remember: the reduction of waste has considerable impact on the bottom line

YOUR PRODUCTION – SAVING ON RAW MATERIALS

You might be able to realise substantial savings in raw material inputs by making simple process changes.

Aim to build manufacturing and packaging efficiency into the design of your product Design your production layout to optimise the flow of materials Aim for continuous processing - minimise stocks of intermediate semi-finished items Check whether you can schedule the production of a range of products to reduce set-up

frequency and costs and maximise economies of scale in batch sizes and equipment. Improve process monitoring Return waste such as off-cuts to the production process: find a new use or market for your scrap Do what you are good at - consider subcontracting specialist functions

A waste assessment can help you better understand your current environmental performance and where your efforts will gain most value by:

Identifying and quantifying the waste streams at your facility; and your current production, storage, treatment and disposal practices

Assessing compliance in relation to waste management practices, and identifying potential liabilities, waste minimisation / cleaner production opportunities

Calculate costs incurred with treatment, storage, handling and disposal of wastes, including an estimation associated labour, energy, water and lost raw material costs

Careful reductions in stock levels can reduce wastage through obsolescence and accidental damage: Can you implement Just-In-Time?

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WASTE MANAGEMENT

Do not mix waste streams– this will aid recycling and provide an indication of why waste is forming. It may also assist to calculate a theoretical minimum waste production for your processes. You can then aim to keep within 10 per cent of this figure. Once waste has been produced, remember to:

Treat your waste - Reducing the environmental hazard or nuisance of the waste onsite will reduce the disposal costs associated with that waste

Dispose of your waste in an environmentally safe manner: Keep records of the amount and type of waste leaving your facility, the name and details of your waste management companies (including sighting of appropriate licenses) and details of licensed facilities your waste will be disposed to

Remember: You are responsible for your waste

MAKE IT HAPPENHere are some simple tips to start your journey towards cleaner production.

Involve everyoneGet all your staff, your waste contractors and building managers involved to ensure a unified approach to waste reduction.

Negotiate with your supplier

Can they provide reusable packaging? Can you return empty drums or pallets?

Talk to your neighboursCan you and your neighbouring businesses get common wastes recycled cost effectively?

Educate your staff Explain the recycling system to all staff.

Make it easyPlace recycling bins next to the general waste bins and ensure they are clearly labelled.

Encourage good practices

For example, encourage staff to print double-sided and offer rewards for employees and suppliers who reduce waste. Display posters or other reminders about recycling.

Get the best systemTalk to your waste contractors about the best recycling system for your workplace. Ask them how they can help and work in partnership.

Report your improvements

Monitor your waste production and make sure you include internal wastes such as rework and recycle streams.

QUICK TIPSIf you haven’t already done so, look at your wastes and ask yourself:

Can I recycle, re-melt or otherwise retreat it in my process? Is it a waste or a by-product? Can it be sold without re-treatment? Would I be better off selling ‘factory seconds’ than re-treating or scrapping it? Can my old office furniture and equipment be sold to my staff at a discount, or even

donated, rather than disposed of? Can my waste be a valuable product for another local business? Have I considered converting my waste to energy?

You may need to check with your local council and EPA regarding any regulatory issues associated with the management of your waste.

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DISPLAYING YOUR ENVIRONMENTAL CREDENTIALS

LOSING CONTRACTS OR MISSING OPPORTUNITIES BECAUSE YOU CANNOT DEMONSTRATE YOUR ENVIRONMENTAL CREDENTIALS?

Companies tendering for Government and Non-Government projects are being increasingly required to show that they have environmental policies and procedures in place as well as demonstrate how they are reducing their environmental footprint. Companies that are unable to display their environmental credentials may be at risk of being unsuccessful.

For example tender documents are asking the following types of environmental questions: Do you have a company environment policy? Do you have copies of current legislation in relation to the Environment? Do you have a documented Environmental Management System? Do you have documented environmental procedures for the work you carry out? What environmental initiatives or recent improvements have you implemented to limit the

environmental impact by the services you provide? Has your company developed and implemented any waste, water or energy

minimisation initiatives?

WHAT SHOULD YOU BE DOING?

Companies tendering for projects will need to demonstrate their commitment towards sustainable business practices in order to fulfill all the tendering requirements. In order to do this, companies may need to:

Develop an environment policy to be signed by the Managing Director Keep up to date records on their environmental legal obligations Develop an accredited environmental management system i.e. ISO 14001 Develop environmental procedures relevant to their operation(s) Conduct audits (energy, water and waste) to identify opportunities to reduce their

environmental footprint and implement actions Conduct environment training for staff

Depending on the size and operation of a business, it may not be necessary to develop all those outlined above. Companies should identify and prioritise what actions need to be developed first.

WHAT SERVICES ARE AVAILABLE TO INDUSTRY?

Ai Group provides the following services to assist companies fulfil their tender requirements: Development of environmental policies and procedures Development of environmental management systems (EMS) Determine companies environmental legal requirements and keep them up to date with

changes to legislation Conduct on-site training Conduct audits (energy, water and waste)

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INFLUENCE AND WIN OVER YOUR EXECUTIVE

ARE YOU FINDING IT HARD TO COMPETE FOR FUNDING ? DO YOU WANT YOUR ENVIRONMENTAL PROJECTS TO GET A FAIR HEARING AND THE BEST POSSIBLE CHANCE OF IMPLEMENTATION?

WHY IS IT SO DIFFICULT TO GET FUNDING?

Environmental, HSE managers and operations managers have always found it hard to compete for funding because:

Historically their environmental projects were in a ‘discretionary’ category and not essential for sustaining or growing the business

Environmental projects tend to be smaller in scale than other projects being dealt with by your executive and decision makers, diminishing their perceived importance

Environmental projects are often technical (or even unique in your business’ experience), which increases their perceived riskiness

KNOW YOUR TARGET AUDIENCE

Different decisions may be made at different levels, and it is not always just senior managers who need to be convinced:

Do you know who will decide on your proposed project? Would they normally have much bigger issues to think about? What are their motivations and own objectives? How do you need to present information to them? Are they likely to have a detailed understanding of your area of work? Can you engage their interest early on? What are they looking for?

– Cost reduction / good financial return?– Improved environmental performance?– Enhanced corporate reputation?– Worthwhile additional benefits?

Do you know who might challenge your assumptions? Put forward a case accommodating themCan you find an ally in the form of a senior management sponsor? Consult with them early and involve them in the proposal development

GETTING STARTEDBefore you get started, ask yourself:Does this project need addressing now?Are you going to retain the building/process/equipment impacted by the proposal?Would the workforce accept the project?

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Evaluate the project cost Estimate the project life Know the residual life of affected assets Evaluate the requirements (operational,

resources, costs) of all options Calculate all savings (ongoing and

maintenance, licensing, usage or disposal costs)

Work out a project timetable Calculate rate of return or payback period

for proposed option If needed, obtain forward estimates for

energy and water use or waste disposal prices

Carry out risk analyses - What factors are subject to significant uncertainty?

Consult other interested parties (staff, contractors…)

Find any available precedents, case studies or technology references

Identify any non-financial benefits Identify potential sources of funding

PREPARE YOUR BUSINESS CASE

In preparing your business case you may need to:

Consider initially making a proposal for a pilot project

Start with a concise and clear summary – Not everybody will read the details of your proposal

Define the problem that you are trying to solve

Put your solution forward in simple terms Present the most reliable data and

evidence you can obtain that your solution will work

State any assumptions Explain any possible disruption to

production Make it concrete, add photographs or

plans for those unfamiliar with the site you are taking about, or provide a mock up poster or sample piece of equipment – it is far easier to sell something physical than an abstract concept

Is your proposal justifiable on financial grounds alone?

Can it help fulfil an objective that the organisation has previously set? i.e. in its environmental policy

Have you: Considered all options? Including not

proceeding with the project? Identified and addressed all potential

risks? (operational, financial, technical, market, regulatory, reputational, potential changes in your business’ circumstances)

Used the appropriate financial appraisal method and carried out an analysis of the costs and benefits?

Proposed a single clear recommendation? Defined a timeframe for implementation?

Can you: Avoid using technical jargon or

ambiguous terms? Present the business case in person? Find past business case proposals

that have successfully secured internal funding?

FURTHER TIPSTry to follow these simple principles:

Evaluate proposals diligently and never promote something you are unsure of

Never make exaggerated claims Try to leave yourself headroom to deliver

more than you promised When you get approval for something,

implement it without delay and do everything you can to ensure its success

Make sure people know what you have achieved, and keep it all on record

Keep up with the news. You want to be seen as the person in the organisation that knows about complex environmental issues and policies

REMEMBER

It is risky to rely on a supplier’s estimate of project costs. Always investigate claims and find out what assumptions have been made

You may need ‘buy-in’ from colleagues or the broader workforce, don’t overlook them

Talk to your financial controller. They understand the budget allocation and timing and can advise on acceptable payback periods, rates of return or potential tax impacts

BECOME ENVIRONMENTALLY SUSTAINABLE


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DO YOU WISH TO IMPROVE YOUR COMPETITIVE ADVANTAGE BY EMBRACING SUSTAINABILITY PRINCIPLES

AS A CORE BUSINESS STRATEGY?

BUILD THE BUSINESS CASE FOR SUSTAINABLE PRACTICES

Your business’ ability to manage the economic, environmental and social challenges it faces impacts directly on its long-term health and prosperity. The following points highlight some of the drivers for becoming environmentally sustainable.

SUPPLY CHAIN MANAGEMENT: large businesses are increasingly mandating through their procurement processes that suppliers implement sustainable practices.

MARKET POSITIONING: incorporating sustainability principles into your operations will assist your business to position itself as a market leader, develop and maintain a competitive edge, strengthen brand value and achieve a position of ‘employer of choice’.

OPERATIONAL EFFICIENCY: eco-efficiencies in manufacturing processes generate cost savings in the form of lower input costs, reduced dependence on natural resources and minimised management overheads.

LOWER RISK: integrating environmental and social considerations into your decision making framework assists your business manage its financial, market, operational and strategic risks and improve worker health and safety.

INNOVATION AND LEARNING: innovation around sustainable products and efficient processes will enable your business to exploit future trends and improve customer relations by offering superior product quality.

CORPORATE GOVERNANCE: effective corporate governance promotes stakeholder confidence in your business and positions you to respond to future regulations and emerging risks.

CREATE A VISION FOR YOUR COMPANY

This vision is best issued from a committed executive, and should be distributed to all employees.

1. Identify emerging stakeholder trends and issues 2. Understand how sustainability considerations are impacting on your

organisation’s shareholder value 3. Identify sustainability risks and opportunities4. Prepare a sustainability vision, a mission statement, or a policy5. Involve staff in all areas of the business in the consultation process to

ensure ‘buy-in’

Review mission statements and business practices adopted by other businesses in your sector.

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SET AND IMPLEMENT SUSTAINABILITY GOALS

1. Define priority areas involving a multi-disciplinary team2. Implement within core business

Integrate sustainability considerations into your decision making processes across the whole organisation.

3. Translate your vision into measurable and quantifiable goals4. Ensure your management team understands the contribution to be made by

their divisions5. Set performance indicators 6. Implement measurement and reporting frameworks 7. Develop resources, tools and programs to achieve objectives8. Provide appropriate management systems and controls

Sustainability innovation and efficiency is driven from all levels across all aspects of a company.

ENHANCE INTERNAL AWARENESS

Give staff the ability to understand how their divisions can contribute towards your business’ sustainability vision and objectives.

Build senior management commitment. Increase awareness and understanding of what sustainability means to the whole of the business Promote understanding of the activities of each area of your business and how they collectively contribute towards the achievement of your sustainability vision, strategy and objectives

Build capacity at all levels of your business to identify areas for improvement and innovation

Create internal awareness of the positive impact of sustainability management on business performance

It is vital to have top-level support and adequate budgets.

ENGAGE WITH KEY STAKEHOLDERS

Clearly communicate the process and journey your organisation is taking to move towards sustainable business practices

Develop a communication strategy to communicate your sustainability commitment and performance to internal and external stakeholders

Recognise that your business can be held accountable, not only by regulators but also by members of the public, environment groups and employees.

Are you? Managing your risks?

Measuring your performance?

Benchmarking and reporting on progress?

Engaging with stakeholders?

Identifying opportunities to reduce costs by improving water and energy efficiency, and waste management practices

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UNDERSTAND SUSTAINABILITY PRINCIPLES

ARE YOU CONFUSED WHEN IT COMES TO SUSTAINABILITY? DO YOU KNOW WHERE IT FITS IN YOUR CURRENT BUSINESS PRACTICES?

WHAT IS SUSTAINABILITY ?

There are many definitions of sustainability, environmental sustainability, sustainable development or ecologically sustainable development.Environmental sustainability is ‘the ability to maintain things or qualities that are valued in the physical environment, both natural and human built’.Sustainable Development is ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’.Ecologically Sustainable Development (ESD) is ‘using, conserving and enhancing the community’s resources so that ecological processes, on which life depends, are maintained, and the total quality of life, now and in the future, can be increased’.

WHAT DOES SUSTAINABILITY MEAN TO YOUR ORGANISATION

Sustainability to your organisation means implementing measures to reduce your impact on the environment while eliminating unnecessary costs and improving competitiveness.

Implementing measures to improve water, energy and resource efficiency and reducing waste can help your organisation be more sustainable. Pursuit of environmental sustainability requires leadership from management and whole of company commitment and it also makes good business sense.

Environmental Sustainability is NOT environmental compliance, although you cannot be sustainable if you are not compliant.Environmental Sustainability is NOT business as usual, although sustainability principles should be embedded into all your business practices and become your new improved ‘business as usual’.

DO YOU UNDERSTAND SUSTAINABILITY PRINCIPLES?

While the idea of environmental sustainability is very broad in scope, it can be translated in specific practical goals which can then drive action programs.These can be as specific as:

REDUCE: waste generation, water use, use of finite resources, energy use, greenhouse gas emissions, carbon footprint

INCREASE: eco-efficiency, overall business sustainability, internal skills, community engagement or awareness, extended producer responsibility

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SUSTAINABILITY IN MANUFACTURING

The diagram below may assist businesses in their consideration of opportunities for improved environmental performance.

TIPS

There is increasing demand throughout supply chains to demonstrate sustainable environmental performance.

Prepare your business now to take advantage of the demand in the market for products and services that minimise the industry’s environmental footprint and enhance your reputation as a sustainable business.

POLICIES

INVESTMENT MATERIALS

PROCUREMENT

IMPROVED SKILLS AND PRACTICES

ECO-EFFICIENTFACILITY LAYOUT

AND LOCATION

MANUFACTURE

ENHANCED PRODUCT

IMPROVED SUPPLY CHAIN

COMMUNITY ENGAGEMENT

DISTRIBUTION

INNOVATION

TECHNOLOGY SKILLS

DESIGN

PRODUCT LIFECYCLE

MANAGEMENT



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Checklists

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This checklist sheet aims to assist companies manage their environment and energy risks to improve productivity in relation to general environmental management requirements relating to waste management and disposal and material storage.

GeneralGutters and drains clear of debris

No litter around site

No liquid flowing through stormwater systems unless it is raining

No run-off from waste or material storage areas entering the stormwater system

No excessive or abnormal noise

No abnormal odour or air emissions

No visible dust coming from the site

Waste managementLabelled bins located at suitable points close to areas of waste generationHousekeeping acceptable particularly around waste bins

Bins emptied regularly – bins are not overflowing

Waste are appropriately segregated to maximise opportunity for recovery, reuse and recycling – e.g. General waste, Recyclables, Hazardous waste

Hazardous waste (regulated, prescribed or scheduled) is disposed of by licensed waste transporters

Hazardous waste (regulated, prescribed or scheduled) records available

Hazardous waste is appropriately contained to prevent spillage and run-off which may cause land, groundwater or stormwater contamination

Materials storageSafety Data Sheets available for all stored materials and current (<5 years old)

Materials are stored in appropriately and in a safe manner

Bunding is provided for all liquid chemicals whilst in storage

Bunds clean and free from collected rainwater

Spill kits are available at suitable locations and suitable restocked

PRODUCTIVITY GAINS THROUGH ENVIRONMENT AND ENERGY MANAGEMENT – OPERATIONAL ENVIRONMENTAL MANAGEMENT


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PRODUCTIVITY GAINS THROUGH ENVIRONMENT AND ENERGY MANAGEMENT – ENERGY EFFICIENCY

This checklist sheet aims to assist companies manage their energy risks to improve productivity.

Energy TariffsMake sure your details are correct - check the name and address

Check the National Meter Identifier (NMI) or Metering Installation Reference Number (MIRN)

Check the billing period

Make sure the start date on this bill is the day after the finish date of your last bill

Check the length of the billing period - look at the number of billing days

See if your account is up to date

Check the details of your energy plan or contractMake sure the name or description of your plan matches your contract and previous bills

Check your tariff description - it should also match previous bills

Check that the discounts you’re getting match your plan, as outlined in your contract (note that some discounts only apply to some charges and not to the Take a look at your energy charges one-by-one

Check the type of meter reading - actual or estimate?

Locate the amount of energy you've used and the applicable rate/s - do a quick calculation to check the totals

Check the rate for demand charges against your contract

Check the other charges are in accordance with your contract

Check with your retailer if you see any unexpected price increases

Demand managementWherever possible, shift energy intensive functions or processes to less expensive billing periodsStagger start ups - turning on all equipment at the same time will cause a spike in your load profile and push up your demand charges

Turn off equipment at the power point and

Load Curtailment - switch off some equipment during peak times

BoilersA conductivity probe has been installed to initiate blowdown only when necessary

Blowdown water is reused in the plant

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A blowdown heat recovery system is used to preheat boiler feed water

The flue gas temperature is regularly recorded and compared to optimal temperatureBoilers are regularly cleaned to remove scale and soot that reduce heat exchange efficiency

Feed water is analysed and effectively treated to minimise scale build up

Flue gases are regularly analysed

A flue meter or portable flue analysers are used and compared to optimal gas percentages

An oxygen trim system has been installed to keep gas percentages optimal

System is regularly checked to detect leaks that will allow air to infiltrate the system A heat exchanger (economiser) has been installed in the flue to preheat boiler feed water

Flue heat is used to preheat combustion inlet air

Pipe work is corrected installed and sized (e.g. removed if redundant, not over or undersized, correctly sloped) Boiler and steam lines are regularly checked for steam leaks that are repaired promptly

The boiler surface, steam and condensate lines are insulated

Damage to insulation is checked regularly and repaired promptly

As much condensate as possible is returned to the boiler feed tank

The operation of steam traps is monitored regularly and faulty traps repaired promptly A steam trap monitoring systems has been considered for sites with large numbers of steam trapsBoilers have been replaced with multiple smaller boilers if plant requires different steam pressures

Oversized boilers that are continually cycling have been downsized

Boilers are operated at their maximum design pressure and reducing valves have been installed if necessaryAn accumulator has been installed to deal with variable demand rather than a large boiler or several small boilers

Boilers are started up as late as possible and shut down as early as possible

Reduce water loss of condensate in the form of low pressure steam (flash condensate) by replacing flash tanks with a closed pressure condensate return A hot water system or smaller boilers are used to meet hot water demand outside production hoursThe exhaust heat from one part of the process is used to heat another (heat cascading) The use of hot and warm water has been replaced with warm and cooler water where possible Hot water output is at the minimum temperature required while still meeting hygiene standards

Boilers have been converted to a more efficient fuel e.g. electricity to gas

Alternative fuel sources such as solar, ground or air heat (heat pumps) or biomass have been consideredWhere possible heat and power systems have been combined to produce both electrical and thermal energy (e.g. cogeneration)

RefrigerationHead pressure is allowed to load with ambient temperatures

The condenser has been sized to suit the load

Condensers are cleaned regularly

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The air flow from the condenser is not restricted

Variable speed drives have been installed on condenser fans

The system is purged regularly to remove undesirable non-condensable gases

Thermostats in cold rooms and freezers are not set lower than necessary

The evaporator is sized to suit the load

The evaporator is regularly cleaned and defrosted when necessary to prevent the evaporator temperature from dropping Hot refrigerant vapour discharge from the compressor is used to defrost evaporators.

Defrost water is used elsewhere in the plant

Heat ingress into the refrigeration system is reduced by:

Ensuring insulation and door deals are well maintained

Energy efficient lighting

Minimal cleaning with hot water hoses

Good operator practice e.g. closing doors, turning off lights

Ensuring space is effectively used and unused space is closed off

Cooling product before being placed in refrigeration system

Plastic strip curtains, swinging or automatic door used in frequently opened areas

Compressor suited to the refrigeration duty i.e. COP of the system is as high as possible

Compressor is not oversized or operating at low partial loads

Capacity control systems have been installed on multiple compressors (should operate at partial loads no less than 70%)

The compressor is located in a cool and well ventilated area

Suction lines to the compressor are insulated

Compressors are effectively lubricated to prevent bearing friction and increased temperatures that reduce operating efficiencyHeat from the compressor is used for other application, such as heating water elsewhere in the plant

Regularly detect and repair refrigerant leaks

Converting the system to an ‘ozone benign refrigerant’ has been investigated by a refrigeration specialist

Refrigeration is only supplied to areas of the plant requiring cooling

The possibility of shutting down the refrigeration system during non-production periods such as weekends and nights has been investigatedA programmable controller is used to cycle off fans and refrigerant feed during low load timesAbsorption refrigeration has been considered where there is a waste heat source readily available or electrical load limitations

Motor, pump and fan efficiencyThe operating advantages of purchasing a high efficiency motor compared to a standard motor have been investigated

Before repairing (rewinding) existing motors the advantages of purchasing a high efficiency motor are investigated

The size of the motors, pumps and fans closely meets load requirements

Well designed pipework to reduce frictional losses

The impeller on oversized pumps has been trimmed


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The output of motors, pumps and fans is matched with demand e.g. installation of variable speed drives, multi speed motors or several smaller motors with Motors are well maintained e.g. clean, aligned, connections and wiring not loose and bearings in good condition Power factor options have been discussed with power supplier or consultant e.g. correction capacitors, correction equipment, high power factor lighting and

Motors, pumps and fans are only operated when required

LightingEnergy efficient lighting is used where appropriate

Lights are locate at task level to direct light where required instead of lighting up large areas

Light switches are segregated so lighting in areas can be isolated

Natural lighting such as skylights used where possible instead of electrical lightingOccupancy sensors used in relatively inactive areas to automatically turn off lighting

Light fittings, reflectors and diffusers are cleaned regularly

Photo sensors to measure natural lighting are used to control security lighting

Walls and floors are painted light colours

A lighting audit has been conducted and lighting removed where it is not necessary

Compressed airRegular checks are made for compressed air leaks and repairs are made promptly

Air pressure is kept to the minimum required for the end use application

Air treatment components are correctly selected, sized and maintained to ensure the lowest pressure drop

Filters are cleaned

Condensate traps are correctly located and regularly checked and maintained to ensure they are opening and closing correctly

The piping is kept as short as possible and joins are smooth

Distribution pipes have been looped to improve the pressure balance

Piping size based on peak flow rate and pipe length

Air intakes are placed in clean, cool areas

System is suited to the load i.e. correct type, not oversized

A combination of compressors or a sequence controller on multiple compressors has been installed to help respond more efficiently to load Air receivers have been added to cope with occasional spikes in demand instead of running second compressor

Compressors are turned off when they are not in use

A variable speed drive compressor or a variable speed drive has been installed to meet varying load requirements

Rejected heat from the compressor is used elsewhere in the plant

View Ai Group’s short videos covering topics such as energy efficiency, optimisation and management as well as energy saving technologies/options as well as an energy calculator at www.energyefficiencyassist.com.au/onlineinteractivetools

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This checklist sheet aims to assist companies manage their environment and energy risks to improve productivity in relation to operational efficiency and includes some very simple tips which you can engage at your site that may save considerable, resources, utilities and ultimately time and money.

EnergyCheck all services

Are pipes lagged to prevent heat loss?

Are there any leaks in compressor lines?

Look at replacing motors and pumps with variable speed impellers to reduce energy demand

Can some processes be used during off-peak times?

Maintain all services thoroughly

Prevent fouling of boilers and cooling towers to increase efficiency and reduce wasted energy

Do not waste energy by producing waste products

Use heat exchangers where possible to capture energy lost in waste water or from wasted boiler steam

Turn energy using machinery and services off when they are not in use, especially over weekend periods

Negotiate energy contracts

WaterMonitor water use

Install water efficient appliances

Use trigger nozzles where possible

Use high pressure cleaners where possible

Increase cooling tower efficiency

Reduce fouling of boilers and cooling towers

PRODUCTIVITY GAINS THROUGH ENVIRONMENT AND ENERGY MANAGEMENT – OPERATIONAL EFFICIENCY

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Eliminate once through cooling processes

Use dry cleaning practices where possible

Wash full loads only

Capture surface runoff where possible to be used as cleaning water

Look at water treatment options if your business is water intensive

Reduce cleaning demands on water

Trade WasteDry sweep all areas before hosing

Make sure product does not contact the ground

Do not place drains under machinery

Do not let product go to drains

Treat water for reuse if at all possible

Use compressed air to clean machinery

Reduce your trade waste charges

Consult your water authority regarding the components of your trade waste which are pushing up prices

Avoid waste generation

Educate staff regarding good practice

Solid WasteAvoid waste generation

Look for reuse opportunities if waste is generated

Encourage better recycling. Ask your waste merchants to supply additional services such as plastic recycling

Ask suppliers to transport goods and materials in reusable containers

Increase raw material efficiency

Measure all wastes

Consult the waste hierarchy. It is much cheaper to avoid waste than to try to treat it.

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This checklist sheet aims to assist companies manage their environment and energy risks to improve productivity in relation to materials: process design, alternative raw materials and operation.

Process designCan alternative materials or processes be used that will reduce the toxicity of products, waste materials, waste water or emissions?

Is waste generated by poorly designed equipment and processes?

Are alternative processes available that generate less waste?

Is there a direct and logical flow of materials through the process to minimise waste?

Operation

Are settings optimised to minimise offcuts and trimmings?

Are guards in place to prevent splashes?

Are spills and overflows prevented?

Are leaks repaired promptly?

Is the process operated at a rate that causes a high product reject rate?

Is it possible to improve the yield of raw material reporting as/to product?

Do raw materials or partly processed materials ever get wasted or do they report to any waste streams or lower value by product streams?

Are materials wasted at start up and shut down?

Are raw materials used on a first-in, first-out basis?

Are raw materials and waste materials kept segregated to avoid contamination?

Alternative raw materialsIs it possible to substitute a lower cost or recycled raw material for an existing high cost or virgin raw material?

Is it possible that the unavoidable components of waste can be reused within your company or by others?

FURTHER INFORMATION AND ASSISTANCE CONTACT Ai GROUP’S ENERGY AND SUSTAINABLE BUSINESS HELP DESK ON:

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MATERIALS: PROCESS DESIGN, ALTERNATIVE RAW MATERIALS AND OPERATION

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MATERIALS: SUPPLIERS AND PACKAGING

This checklist sheet aims to assist companies manage their environment and energy risks to improve productivity in relation to materials: suppliers and packaging.

Is the amount of packaging used for raw materials optimised?

Could raw material packaging be returned to the supplier?

Are raw materials damaged and discarded during delivery?

Are raw materials controlled by an effective inventory management system?

Are raw materials stored to reduce degradation?

Do contracts with suppliers incorporate waste minimisation initiatives?

Are unused raw materials returned to the supplier?

Are bulk containers used instead of small containers?

Could storage racks or bins be refilled by suppliers to avoid use of packaging?

Are raw materials stored carefully to avoid damage to the bottom of the stack?

Is packaging simple and made from re-usable or recyclable materials?

Can any part of the packaging be avoided?

Can the product be sold in bulk?

Can the product packaging be returned for refilling?

Can the packaging be compressed for the purposes of transporting and/or landfill?

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FURTHER INFORMATION AND ASSISTANCE CONTACT Ai GROUP’S ENERGY AND SUSTAINABLE BUSINESS HELP DESK ON:

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This checklist sheet aims to assist companies manage their environment and energy risks to improve productivity in relation to materials: re-using and recycling waste.

Re-using wasteIs it possible that the unavoidable components of waste can be recycled or reused within your company or by others?

Can packaging wastes be re-used in the process?

Is there evidence of spillage? Either intermittent or routine

Can spilled product be re-used?

Are there occurrences of rework or re-cutting of products or raw materials?

Could a waste material be treated to allow it to be re-used?

Could a valuable by-product be extracted from the waste?

Are hazardous wastes segregated from non-hazardous wastes?

Recycling waste Are there sufficient bins to effectively segregate the recyclable materials?

Are bins audited to check that recyclable materials are being segregated properly?

Can waste or other recyclable materials be sold to other companies, or given to schools or community groups?

Is recycling practiced within office buildings as well as in operating areas?

MATERIALS: RE-USING AND RECYCLING WASTES


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WASTE MANAGEMENT

This checklist sheet aims to assist companies manage their environment and energy risks to improve productivity in relation to waste management.

Is waste segregated routinely?

Does the cleanliness of various components of the waste stream impact upon its value for recycling or reuse?

Have the waste service providers been consulted regarding the optimal extent of segregation practice at the site?

Is it possible that the unavoidable components of waste can be recycled or reused within your company or by others?

Do service providers call on a time or a needs basis?

Is it possible that substitute of various raw materials could reduce the quantity of waste?

Could improved process scheduling result in reduced waste?

Are there multiple waste service providers utilized at the site and could rationalization of their number reduce waste and cost?



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Action Plan

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USE THE ACTION PLANS TO ASSIST YOU:

Document the opportunities for improvement Nominate roles and responsibilities Work to a timeline

Track your progress

Action Priority Rating Scheme

Priority Rating Recommended Management Response

HIGHa) Considered high or significant risk; and/orb) Recommend management attention first.

MEDIUMa) Considered medium risk; and/or b) Recommend management attention as soon as high

priorities have been reviewed or addressed.

LOWa) Considered low risk; and/or b) Recommend management attention as soon as all

other priorities have been reviewed or addressed.

Corrective Action Plan

ACTION PLANPriority Rating

Issue RecommendationResponsible

PersonCompleted

Date

HIGH

HIGH

MEDIUM

MEDIUM

LOW

LOW

ENVIRONMENT AND ENERGY TOOLKIT ACTION PLAN

Documents

Environment and Energy Toolkit - Australian Industry Group · The Environment and Energy Toolkit will assist your business understand environment and energy risks and the steps you