SUSTAINABILITY ASSESSMENT OF MELBOURNE ICONIC EVENTS › about-council › ... · 3. For the purpose of this report Melbourne Iconic Events are classified as the Australian Open,

M A R K E T I N G A N D E V E N T S C O M M I T T E E R E P O R T

Agenda Item 5.3

11 September 2007

SUSTAINABILITY ASSESSMENT OF MELBOURNE ICONIC EVENTS

Division Economic Development

Presenter Peter Stewart, Manager Events Melbourne

Purpose

1. To provide a report on the sustainability assessment of Melbourne Iconic Events, particularly the Australian Grand Prix, as requested by the Marketing and Events Committee at its meeting on 10 July 2007.

Recommendation from Management

2. That the Marketing and Events Committee approve the inclusion of a sustainability comment as a requirement for all future major event funding applications.

Key Issues

3. For the purpose of this report Melbourne Iconic Events are classified as the Australian Open, the Australian Grand Prix, AFL Grand Final, Melbourne Cup Carnival and ARU International Rugby Matches.

4. It should be noted that Council funding does contribute to the staging of the above ticketed events, but rather to city activation and leveraging programs (eg the AFL Grand Final Parade).

5. It should also be noted that the Australian Grand Prix takes place within the municipality of the City of Port Phillip.

6. Sustainability assessments were requested from each event and the following information was provided.

Australian Open 2007 Sustainability Report

7. Tennis Australia and Melbourne & Olympic Park Trust (“MOPT”) are committed to reducing the environmental impact of the Australian Open Tennis Tournament. This is achieved through continual improvement of implemented strategies and the establishment of new initiatives.

Recycling

8. MOPT currently recycle the following during the bump in, event and bump out of the Australian Open:

8.1. commingled waste (bottles, cans, paper, cardboard and food packaging);

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8.2. all packaging sold by Delaware North Australia (on-site caterer) is recyclable;

8.3. polystyrene;

8.4. food waste from kitchens;

8.5. waxed cardboard;

8.6. shrink wrap;

8.7. used plastic bags from bins;

8.8. timber;

8.9. hard and soft plastics;

8.10. concrete, bricks and pavers;

8.11. steel; and

8.12. empty cleaning chemical drums are returned to the supplier for re use.

9. It is estimated that 74 per cent of packaging is recycled which is growing by the year. A total of 280 tonnes of material was recycled for Australian Open 2007.

Water Saving

10. MOPT and the Australian Open achieved a water usage reduction of 54 per cent, saving almost six million litres of water.

11. Drought tolerant plants were introduced into the gardens around Rod Laver and Vodafone Arenas.

12. Recycled water from Melbourne’s Water Western Treatment Plant was used in corporate areas and surrounding gardens.

13. Wetting agents were introduced during irrigation ensuring maximum moisture absorption into the soil.

Amenities

14. MOPT cleaning only use chemicals which are low hazardous with no impact on the sewer system.

15. Dry flush urinals (desert cubes) have been installed in all men’s urinals. The new dry flush urinals save 150,000 litres per year per urinal.

16. The effects to public amenities are mainly secondary and local as most activities are confined to Melbourne Park and the boundaries.

Local Environmental Impact

17. Tennis Australia undertakes a program of wider stakeholder communication where a number of neighbours and local precinct members are involved.

18. Heavy publicity is undertaken well in advance of the event.

19. Tennis Australia engages in wider stakeholder communication with partners at MOPT.

20. Local (East Melbourne) residences are advised of any issues that may affect them.

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21. Local businesses are advised and communicated with.

22. There are no impacts on biodiversity (threatened and endangered native flora and fauna).

23. All primary and local utility agencies are advised of the event.

24. Free public transport by tram is available to anyone with an Australian Open ticket.

Future Strategies

25. Tennis Australia and MOPT are reviewing various strategies to reduce both water and energy consumption into the future. These include:

25.1. installation of rainwater tanks to capture water from the Vodafone Arena roof top;

25.2. energy consumption reduction strategies including:

25.2.1. consolidation and review of air conditioning systems;

25.2.2. consolidation and reduction of refrigeration and photocopier units;

25.2.3. review of lighting within temporary structures; and

25.2.4. solar powered court lighting.

Australian Grand Prix

26. The Australian Grand Prix Corporation has recently updated its Environmental Sustainability Report and a copy is attached (Attachment 1). Some of the environmentally/sustainability practices undertaken to date include:

26.1. the planting of trees in conjunction with not for profit organisation "Greenfleet" which offset the carbon emissions generated during the construction, operation and dismantling of the event (this program started in 2004);

26.2. a waste recycling program with cleaning contractor Cleanevent; and

26.3. free public transport for anybody with an event ticket who is travelling on trams to and from the city and the circuit (on the St Kilda Road line, Clarendon Street and Canterbury Road light rail line). Over the four days of the 2007 Australian Grand Prix approximately 150,000 people travelled between the city and the event by tram.

27. In 2000, the Australian Grand Prix Corporation received a Banksia Award for Resource Conservation and Waste Minimisation. Details are as follows:

27.1. the Qantas 2000 Australian Grand Prix is the first major event in Australia to achieve the recycling of virtually all the wastes generated by the event - by the racing teams, the caterers and other merchandisers, and the patrons themselves. Under its environmental policy, the Australian Grand Prix Corporation is committed to reducing the amount of waste going to landfill from the event. Since the first Formula One Grand Prix in Melbourne in 1996, the waste management team for the Grand Prix, which includes Cleanevent and Visy Special Events, has developed an integrated management strategy that targeted the diversion of waste from landfill.

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AFL Grand Final

28. The Australian Football League (“AFL”) has a three year agreement, commencing in September 2006, with Origin Energy’s ‘AFL Green’ program. This program will neutralise an estimated 120,000 tonnes of greenhouse emissions generated from AFL House, the NAB Cup, Toyota Premiership Season and Finals Series matches (including the Grand Final).

29. By 2009 the AFL will be ‘carbon neutral’, with its greenhouse emissions offset by activities such as investment in renewable energy and energy efficiency. It will be the equivalent of taking 25,000 cars off the road or planting 500,000 trees. The AFL will be the first sporting league in Australia to reduce its carbon footprint to zero.

30. The AFL is also currently in the process of developing a Corporate Social Responsibility strategy which will be made available to the City of Melbourne later this year.

Melbourne Cup Carnival

31. The Victoria Racing Club doesn’t have a sustainability assessment of the Melbourne Cup Carnival. They are however in the process of developing a sustainability charter and details are provided in Attachment 2. The Victoria Racing Club will be in a position to provide a sustainability report to the City of Melbourne after the 2007 Melbourne Cup Carnival.

ARU International Rugby Matches

32. The Australian Rugby Union doesn’t currently produce any sustainability reports. They do however discuss and work with all venues (e.g. MCG) they hire around Australia to gain an understanding of their current practices in terms of waste management and water usage in particular. The Australian Rugby Union are very cognisant of such issues and matters and will continue to work with venues and other relevant authorities in the future as appropriate and applicable.

33. As an ARU International Rugby Match venue, the MCG through the Melbourne Cricket Club (MCC) have a number of environmental initiatives in place. They also have a number of initiatives they are currently investigating. These initiatives are outlined below.

Water Management

34. A number of measures are either in place or being examined to ensure the MCC remains a responsible user of this precious resource.

35. With more than 20,000 square metres of turf to maintain, the MCC Arenas Department has operated under a water conservation plan for some time. The new sand profile on the ground has helped reduce water usage by approximately one million litres since last September without reducing turf quality.

36. The deep gravel layer underneath the sand works act as an anti-drainage layer so that MCC staff can accurately calculate the amount of water required by the turf and not waste any water through normal drainage losses.

37. Away from the turf, other water-saving measures being used include:

37.1. harvesting of rainwater from the northern stand roof (via a 1.5 million-litre storage tank) to clean the seating bowl and concourse;

37.2. re-engineering the end of hose pipes to increase pressure;

37.3. implementing toilet flush reduction techniques; and

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37.4. installing water-saving shower heads.

38. Also on the agenda is consideration of another tank to harvest Great Southern Stand rainwater and recycling of storm water run-off.

Recycling

39. There are two main areas that the MCC focuses on for recycling:

39.1. recycling of rubbish generated by patrons attending events at the MCG; and

39.2. recycling of products used by staff day-to-day in the running of the business (e.g. wooden pallets, batteries, food waste).

40. The MCC currently recycles approximately 75% of event-related waste and is aiming for above 90 per cent as part of the Visy Closed Loop Recycling Program. The MCC adheres to the five key guiding principles set out below to continually improve its performance in waste management. It coordinates its employees, contractors and patrons so as to maintain the maximum effectiveness of the waste management strategy.

40.1. Reduce: The MCC will ensure that the amount of un-recyclable waste materials entering the MCG is kept to a minimum.

40.2. Reuse: The MCC will ensure that it and all of its contractors reuse materials where possible.

40.3. Recycle: Recycling at the MCG will be promoted by the provision of recycling bins at strategic locations inside and outside the venue and recycling facilities and infrastructure are available to all patrons, contractors and employees at all times.

40.4. Educate: The MCC will continually educate employees, contractors and patrons to ensure achievement of best practice waste management.

40.5. Landfill (as a last resort): The use of landfill as a destination for unusable or contaminated recyclables will only be utilised as a last resort for materials that are not considered a resource by any recycling or other viable organisation in metropolitan Melbourne.

Energy Saving Measures

41. While the redevelopment of the northern side of the stadium in 2006 has a number of energy-saving measures factored into the design, the MCC is investigating a broader solution in areas such as lighting efficiency and solar panels that will incorporate the entire stadium.

Relation to Council Policy

42. City Plan 2010 Strategic Direction 4.1:

“Reduce greenhouse gas emissions, promote renewable energy and maintain air quality in the City of Melbourne”.


“Sustainably manage waste in the City of Melbourne and encourage improved water quality and reduced water consumption”.


“Demonstrate and encourage leadership in sustainability”.

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“Promote, celebrate and further develop the City of Melbourne as a culturally rich capital city that encompasses its key strengths in art and sport: has the objective to:

“Facilitate the provision of event facilities and encourage major city events and festivals in a range of public spaces throughout the city”.


“Attract, facilitate and maximise the benefits of major city events and festivals: has the objective to:

“Attract, support, partner and create a range of key events that reflect the diverse needs of the Melbourne community and visitors to the city and ensure a balance between major international events and locals events”.

“Promote the city and the “city experience” as the focus of the Melbourne major events and festivals program”.

“Maximise benefits and legacies form the Melbourne major events calendar”.

47. Council strategies that relate to this report include:

47.1. Melbourne Marketing Strategy 2007-2011; and

47.2. Melbourne Retail Strategy 2006-2012.

Finance

48. There are no City of Melbourne financial implications of this Committee Paper.

Legal

49. No direct legal issues are raised by the management recommendation in the report.

Comments

50. The City of Melbourne has a number of objectives that are supported by strategies prepared by various Branches and approved by Council. The City of Melbourne is committed to ensuring events conducted within the municipality make an effective contribution to Council achieving its’ corporate objectives.

51. The City of Melbourne recognises the importance of sustainability surrounding events and has developed a program titled “Good Clean Fun” to minimise the environmental impact of events on the city and to assist in educating the community to use environmentally sustainable practices. The guidelines established for the Good Clean Fun program are used in the development of the Event Plans for the city activation programs associated with the events outlined in this report.

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Attachments: 1. Australian Grand Prix Corporation Environmental Report 2. Victoria Racing Club – Development of a Sustainability Charter

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Background

52. At the 10 July 2007 Marketing and Events Committee meeting a resolution was passed to:

“request a report to the Marketing and Events Committee on the Sustainability assessment of Melbourne Iconic Events, particularly the Australian Grand Prix”.

53. At the 8 August 2006 Marketing and Events Committee meeting a resolution was passed to:

“approve the Good Clean Fun project”.

54. The Good Clean Fun project is the development of guidelines for Melbourne’s event organisers to follow that will assist them in reducing their events environmental impact in the areas of waste, water and power usage. These guidelines are currently being implemented in both the education of the events industry and the events permitting process (for events occurring on City of Melbourne managed land).

55. The five main aims of the Good Clean Fun project are as follows:

55.1. set environmental sustainability standards for the management of events based in the City of Melbourne municipality;

55.2. produce guidelines to assist in the achievement of these standards;

55.3. provide education to event organisers and events industry suppliers;

55.4. provide an environmental suppliers catalogue to assist event organisers with the transition to better environmental management of events and provide economic benefits across the events industry; and

55.5. ensure City of Melbourne’s requirements for the application of environmental management to events are met via inclusion into current event permit application processes.

56. The Good Clean Fun project is continuing to be implemented in conjunction with a range of events industry and environmental sustainability partners.

57. All events that take place in City of Melbourne’s parks and gardens must meet Council’s Guidelines for the Sustainable Management of Parklands. Also, all City of Melbourne event sponsorship agreements require event organisers to:

“comply with all Acts and Regulations relating to the protection of the environment, including any requirements for licensing, works approval or other provisions requiring approval or permission to commence or continue the Services”.

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Attachment 1 Agenda Item 5.3

Marketing and Events Committee 11 September 2007

AUSTRALIAN GRAND PRIX CORPORATION

ENVIRONMENTAL SUSTAINABILITY

Updated August 2007

Introduction The Australian Grand Prix Corporation (AGPC) is a statutory corporation established under an Act of Parliament in Victoria, Australia. Each year, the AGPC organises and promotes two world-class major motorsport events: the FORMULA 1™ Australian Grand Prix at Albert Park in Melbourne and the Australian Motorcycle Grand Prix at Phillip Island. Both events include racing over a number of days by a number of different car and motorcycle categories. Cumulatively, hundreds of thousands of people attend the two events. A full-time staff of approximately 40 work from offices in Melbourne. These activities impact on the environment in a number of ways. The AGPC is committed to minimising its impact on the environment. This policy document sets out the practical approach to this task. Past Initiatives The AGPC has been working to minimise its impact on the environment since the inception of the Melbourne event in 1996. It continues to seek ways to improve its performance in this area. The Australian Grand Prix Corporation received a Banksia Award for Resource Conservation and Waste Minimisation for the Qantas 2000 Australian Grand Prix in recognition of the amount of recycling achieved of the waste generated at the event - by the racing teams, the caterers and other merchandisers, and the patrons themselves. Efforts to minimise waste going to landfill continue and are reviewed each year. Sustainability efforts have also focussed on reducing water use, offsetting carbon emissions through tree planting, and educating the public via signage and publicity. Vision The Australian Grand Prix Corporation aspires to produce world class motorsport events while minimising its impact on the environment by applying practical sustainability measures to everything that it does.

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Strategy To achieve its vision, the AGPC will:

• Inform staff, consultants, contractors, sponsors and other partners including the public, of its commitment to environmental sustainability and where possible promote a similar approach by others

• Regularly calculate the environmental impact caused by AGPC activities

• Undertake specific activities to minimise these impacts, especially in regard to:

1. Carbon offsets 2. Water use reduction 3. Waste management

• Regularly review approaches to take advantage of advances in environmental sustainability practises or technological advances

• Regularly report outcomes 2007 FORMULA 1™ ING Australian Grand Prix Carbon Offsets The Australian Grand Prix Corporation partners with Greenfleet, a not-for-profit organisation established to plant and manage trees as offsets to carbon emissions produced by others. In 2007, the AGPC calculated its event-related fuel use as:

• 112,669 litres petrol • 2,786 litres LPG • 279,597 litres diesel

Using Greenfleet’s calculation method, this equated to 1,011 tonnes of carbon dioxide. Greenfleet has planted 3,773 native trees – funded by the AGPC - which will sequester this amount of CO2 over the lifetime of the trees. Water Use Reduction

• The Australian Grand Prix Corporation, in conjunction with Parks Victoria and South East Water, developed a number of initiatives aimed at minimising water consumption during the 2007 FORMULA 1™ ING Australian Grand Prix.

• The aim was to reduce the amount of drinking water used for irrigation

by more than 70 per cent. This was achieved by substituting storm water from Albert Park Lake for most irrigation purposes.

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• Healthy grass on the verges is an essential requirement for safe racing as set down in guidelines issued by the FIA and CAMS. It helps to minimise dust and debris on the track surface, as well as provide a smooth, safe surface for cars which come off the track.

• Maintaining grass cover in pedestrian areas avoids potentially

unhealthy dust problems, as well as minimising the time taken to restore the park after the event.

• Albert Park Lake is filled with storm water run-off collected from the St

Kilda Rd and Queens Rd catchments. This water would otherwise have ended up in Port Phillip Bay.

• The total amount of water to be sourced from Albert Park Lake was

equivalent to just 1.5cm in its depth. Just 4mm of rain will replenish the lake with the water used by the Grand Prix.

• The maximum amount of water to be sourced from Albert Park Lake

was expected to be 7.5 megalitres. Loss of water from the lake by natural evaporation is up to 24.5 megalitres per week in summer. The total amount of water from the lake that the Grand Prix intended to use to water the verges was roughly equivalent to water lost through evaporation in two days.

• Other initiatives to reduce water use included:

1. Wetting agents applied to grassed areas to aid the absorption

of water and therefore reduce overall watering required. 2. Ornamental ponds and fountains replaced with other features. 3. Drought resistant plants selected where possible for corporate

facilities. 4. Waterless urinals in operation throughout the circuit.

Waste Management Closed Loop Program.

• Implementation of sustainable environmental practices of waste reduction (closed loop food packaging and waste recycling program)

• The total waste sent to landfill was reduced by 3.08% on the previous year.

• The total event waste recycled was 133.410 tonne. • An organic/food waste recycling system collected and recycled

14.800 tonnes of waste which was processed into high grade fertiliser. This result was an improvement of 27.30% over the amount of organic / food waste collected from the previous year.

• 3,860 litres of waste oil and fuel was collected and recycled. • The quality of the waste recovered for recycling had limited

contamination as all recyclable waste was pre-sorted prior to leaving the site to the waste recycling facility.

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• Implementing and imposing self regulation on the environmental impact in the way of waste reduction and waste recycling.

What and how much waste was recycled (tonnes) for the 2007 four (4) event days? Event Year

Co-Mingled Recyclable

Waste* (tonnes)

Recyclable Organic / Food

Waste (tonnes)

General Waste (non-recyclable

waste) (tonnes)

Total Event Day Waste

(tonnes)

2007**

86.230

14.800

73.810

174.840

* Weights include paper, cardboard, plastic containers & bottles, glass bottles, steel & aluminium cans ** A Closed loop program was implemented at the 2006 & 2007 What and how much waste was recycled (tonnes & litres) for the 2007 pre & post event days?

Event Year

Waste Timber (tonnes)

Waste Metals (tonnes)

Total Pre & Post Event

Waste (tonnes)

Oil & Fuel Waste Collected &

Recycled (litres)

2007

17.160

15.220

32.380

3,860

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What does the public closed loop recycling program involve?

What does the operational area closed loop recycling program involve?

Waste collected from the public place bins is

transported to a recycling facility were it is sorted

Sorted waste is then on-

processed and made into

reusable raw material

Product Manufacturing

Remanufacture of recyclable

material into new end use products

Product Use Customer

purchases food & beverages and discards waste

packaging in bin

Closed Loop Program

(Public Place

Recycling)

AGP 2007

Waste collected from the

operational bins is transported to

a recycling facility were it is sorted

Sorted waste is then on-

processed and made into

reusable raw material

Product Manufacturing

remanufacture of recyclable

material into new packaging

Product Use Operational staff use product and

discard packaging into recycling bin

Closed Loop Program

(Back of House –

Operational Areas)

AGP 2007

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What considerations were made during the planning phases of the Australian F1 Grand Prix closed loop environmental recycling program? Positive sorting The introduction at the 2006 event of the manual process of waste sorting and separation throughout the Grand Prix circuit dramatically improved the quality of the waste collected and the ability for it to be processed at the recycling facility. This positive on-site sorting process resulted in reduced by-product being sent to landfill following the processing of the waste. The process was adjusted and improved upon from the 2006 program and again had a significant impact in waste being sent to landfill. Organic / food waste recovery program This involved planning for a food waste recovery program to be implemented at the point of the kitchen production areas. The separation and processing of all food / organic waste allows this to be used in the production of fertiliser. Front of House (public areas) waste bin signage The Front of House (FOH) waste bin signage is critical in providing a clear message to the event spectator as to the recycling program implemented at the venue. This was achieved with simple and precise bin signage stating “place your waste here, all packaging will be recycled”. Front of House (public areas) single stream waste bins The front of House (FOH) waste bin needs to be simple to use to avoid contamination of the recyclable waste and easy to locate. The waste bins at the event are a single waste stream. This also has positive operational benefits in the collection processes. Tighter control over the types of food and beverage packaging used at the event The AGPC encouraged the maximum use of 100% recyclable food and beverage packaging at the 2007 event. Cleanevent worked closely with the AGPC and its caterers to ensure the waste sent to landfill was minimised and the recyclable waste had limited contaminates. Comprehensive education program for staff and spectators Prior to the commencement of the Australian F1 Grand Prix, catering, cleaning and catering sub-contractors were briefed on the Closed Loop recycling program and the results achieved from its implementation at the 2006 event.

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Stakeholders need to be fully aware of their impact on the event, from the waste they produce to the importance of their adoption of the program’s aims. A public awareness program was also developed in order to ensure the visiting public were made aware of the recycling program implemented to encourage their support and cooperation during the event. This is critical in the successful implementation of a closed loop recycling program. The public recycling message included signage at various locations around the circuit and included the track overpasses, tunnels and high volume entry and exit points. Communication during the event The critical ingredient during the operational phase of the 2007 Australian F1 Grand Prix closed loop program was the commitment of the stakeholders. This included daily feedback to the AGPC, vendors and caterers via the Cleanevent Waste Manager. Operational reports were generated to update the management team on the quality of the recyclable material recovered from each day’s waste that was processed at the material recovery facility (MRF) and the applicable contaminate levels contained within the waste received. This communication enables the management team to identify and resolve any potential process shortfalls in a timely manner. This may include non-recyclable or non Closed Loop compliant food and beverage packaging products or food waste contaminating the co-mingled (mixed recyclables) waste stream. Food and beverage packaging audits were conducted during the event phase to encourage the maximum use of 100% Closed Loop complaint packaging throughout the event period. This assists in the prevention of recyclable waste being contaminated by non recyclable food and beverage packaging products such as polystyrene foam (PS6) products. AGPC and Cleanevent For the AGPC to achieve its environmental objectives and targets it relies heavily on the advice and expertise of an environmental packaging and waste recycling partner in the implementation and management of the environmental waste recycling program at the event. Cleanevent has developed a strong partnership with the AGPC and its appointed stakeholders and the success of the waste recycling results in 2006 and 2007 has further strengthened this partnership.

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Cleanevent has delivered to the AGPC an environmental program that is proactive in its approach to waste management and has enabled the AGPC to meet the ever increasing demands from the community for responsible environmental practices, while also working towards improving financial and operational efficiencies. Visy Closed Loop supports Cleanevent in these endeavours. AGPC and its suppliers The Spotless Group and Peter Rowland Major Events are the contracted food and beverage caterers to the AGPC. Without the support from the appointed caterers, the Closed Loop program would not deliver the results it has been able to achieve in the past two years. There has been a significant shift in the type of food and beverage packaging used at the event since the introduction of a Closed Loop program. Products that are 100% recyclable and manufactured from recyclable raw materials have become the main priority and focus in the food service supply chain. 2008 FORMULA 1™ ING Australian Grand Prix Carbon Offsets The Australian Grand Prix Corporation will calculate the fuel consumption at its events and continue to offset the carbon emissions generated by this consumption via its tree planting program with Greenfleet. Water Use Reduction The Australian Grand Prix Corporation will continue to work cooperatively with Parks Victoria and other stakeholders to find ways to further reduce water consumption. Waste Management Initiatives under consideration

• Continuation of the Closed Loop program with active early planning for areas such as; venue waste signage, waste management, public education, contractor waste guidelines, caterers and vendors guidelines.

• Food packaging – continue to work with the vendors (sub-contractors) and caterers to encourage the use of Closed Loop complaint packaging at the event

• Food / organic waste recycling – continue to work with the stakeholders to increase the volume of food/organic waste recovered

• Waste reduction – look further into the pre and post contractor waste

levels

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• Grand Prix F1 teams - seek their involvement in developing waste guidelines and recycling of waste in pit garages of tyres, fuels, oils, shipping crates, cartons and other recyclable recoverable to help lessen the environmental impact this area creates (continue with and further implement initial processes introduced in 2006)

2006 GMC Australian Motorcycle Grand Prix Waste Management Cleanevent was assigned overall responsibility for coordinating all operational, logistical and educational aspects of the waste recycling strategy to be implemented at the 2006 GMC Australian Motorcycle Grand Prix. A waste disposal initiative consisting of three waste streams was employed in both the front of house and back of house areas: - rubbish (general waste) - glass, bottles and cans (commingle) - paper and cardboard Recyclable bin caps, supplied by Sustainability Victoria, facilitated the separation of general waste and commingled waste on-site. A total of 500 clearly identified recyclable bin caps were delivered and distributed throughout the site (250 red general waste caps/250 yellow commingled waste). Official Suppliers and Caterers engaged by the Corporation to undertake work at the 2006 event were encouraged to separate all paper and cardboard packaging from the general waste and commingle waste streams provided. All paper and cardboard waste generated by these parties was to be placed in a pile next to waste storage facilities for collection and disposal by Cleanevent. The recycle period encompassed Event days only (Thursday 14th September – 17th September 2006). Pre- and Post-event, all waste collected was disposed of through a general waste stream. The waste collected during this period primarily consists of construction material, steel, timber and plastic. All waste collected on-site was collected and transported to the Grantville landfill site. Stakeholder Education Key educational activities undertaken at the event to promote the Corporation’s waste-wise activities and reduce waste contamination on-site included:

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- All 240lt bins around the event site were placed in pairs with single bin caps. Red caps for general waste & yellow caps for co-mingled glass, bottles and cans waste.

- Signage was placed at circuit entry gates to advise the public of the

Corporations Waste wise activities.

- All caterers were briefed in detail and were informed of the recycle waste

streams prior to the commencement of the Event period, to ensure a common goal and compliance with proposed Waste Recycling Strategy.

- Cleanevent Supervisors serviced and continually monitored Front of House

and Back of House disposal of waste materials, making infrastructure adjustments and directing stakeholders where necessary to minimise contamination.

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- Cleanevent Supervisors were assigned to specific static compactor locations and given the task of “policing” the disposal of waste into appropriate compactors with a view to further reduce contamination and continue the education process. Black bags containing general waste and highly contaminated recyclable waste to be placed in general waste compactors. Clear bags containing clean recyclable materials to be placed in recyclable materials waste compactors.

- Compactor and waste compound stickers outlining recycling program

and what can be placed in waste compactors located within waste compounds

POST-EVENT WASTE DATA 2005 2006 Total No. of Bins used 520 750 Total No. of Bin caps used 450 500 (250 general waste/250

commingled waste) Total Waste collected 51 tonnes 53.4 tonnes Rubbish waste collected 51 tonnes 48.9 tonnes Total waste diverted from landfill

None 4.5 tonnes

% of total waste collected, diverted from landfill

0% 8.4%

% Contamination (of recyclable waste)

100% 3%

KEY RESULTS Diversion of 8.4% of total waste collected from landfill. Reduction of recyclable waste contamination from 100% to 3% Results from the 2006 Event show that the proposed strategy was

implemented successfully. This success is a result of the use of increased infrastructure on-site to service the proposed strategy, the overall educational program and commitment from all stakeholders involved in the program.

2007 GMC Australian Motorcycle Grand Prix Carbon Offsets Fuel used as part of the 2007 event will be calculated and offset using Greenfleet’s tree planting program.

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Water Use The Australian Grand Prix Corporation is implementing an event specific Drought Response Strategy in recognition of water restrictions at Phillip Island. This plan is being developed in conjunction with the Bass Coast Shire Council, Westernport Water and Phillip Island Grand Prix Circuit. The plan will incorporate a number of initiatives to limit the impact of the event on the island's water supply while maintaining a healthy and safe environment for all patrons. Waste Management Initiatives for 2007

• Promotional advertisements aired on GPTV (on-circuit channel) throughout the Event informing patrons of available recycling facilities and AGPC commitment to recycling

• Public announcements over the Circuit Public Address System informing patrons of available recycling facilities and AGPC commitment to recycling Increase space available for storage of waste on-site.

• The utilization of additional recycle packers on-site would allow for more commingled waste to be diverted from landfill. Two possible locations for extra waste packers include Lukey Heights & Gardner North.

• Possible implementation of recycling initiatives in MotoGP Paddock and Pit areas.

ends

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CLIENTSIPEOPLEIPERFORMANCE

Victoria Racing Club

Development of a Sustainability Charter

Infornnation Pack

July 2007

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shetay

Text Box

Attachment 2 Agenda Item 5.3 Marketing and Events Committee 11 September 2007

Contents

1.

2.

3.

Introduction

Sustainability — In Theory and Practice

2.1 A Sustainability Charter for VRC: Why Do it, and What are theImplications?

2.2 Key Concepts in Sustainability

2.3 Critical Sustainability Issues

2.4 Sustainability is Good for Business

2.5 Sustainability Charters

2.6 Further Reading

Developing a Sustainability Charter at VRC

3.1 Phase 1: Knowledge Building

3.2 Phase 2 - Workshop Session 1

3.3 Phase 3 - Conduct Workshop Session 2

3.4 Phase 4 - Complete Sustainability Charter

1

2

2

3

5

5

6

8

9

9

9

10

10

AppendicesA Further reading

B Examples of Sustainability Charters

31/21534/136779 Victoria RacIng ClubDevelopment of a Sustainability Charter - Information Pack

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1. Introduction

The VRC is about to embark on the development of a Sustainability Charter for the FlemingtonRacecourse as one of the initiatives identified in the Action Plan in Sustainable Water Management atFlemington Racecourse, 2007.

The Charter will be developed by senior management at the VRC under the guidance of GHD through aseries of workshops. As the first step in the development of the charter, this document provides essentialreading material to enable senior managers to participate effectively in the first workshop.

The document contains an overview of the theory of sustainable development, key sustainabilityprinciples and the business context for developing a sustainability charter. Additional suggested readingincluding examples of sustainability charters are contained within the appendices.

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2. Sustainability — ln Theory and Practice

2.1 A Sustainability Charter for VRC: Why Do it, and What are the Implications?

Sustainability as a concept has stood the test of time to prove itself as far more than a passing businessfad. From cottage industry start-ups to multinational corporations, to a dedicated and rapidly growinginvestor market sustainability is proving to be the business approach that delivers value, minimises risksand creates opportunities in an environment of increasing regulatory challenges, public scrutiny andecological constraints.

It is also regarded as the framework that can leverage the impressive resources, skills and expertise ofbusiness and commerce around the world to actively address urgent environmental and social problemsthat threaten the health, well being and way of life of people around the world.

The growing understanding of these problems in the general community has lead to steadily risingexpectations of organisations to deliver a suitable response. With the interconnectedness of commerceand government, there is a powerful domino effect: organisations that attempt to differentiate themselveswith sustainability place pressure on their suppliers and business partners, and try to influence thechoices and behaviour of their customers.

Few organisations are in a position of being able to insulate themselves from this process for muchlonger. In response to pressure created by a statewide water crisis, VRC has a strategy ready toimplement water saving initiatives to reduce water consumption by 70% by 2010. This impressive figurehighlights two key points. Firstly, that there is massive potential for better business through efficiencywhen sustainable thinking is applied. Secondly, large scale and rapid responses can be demanded tomeet changing environmental conditions and community or regulatory expectations. ln short, allbusinesses, sooner or later, will need to either actively run their own sustainability agenda, or be forcedinto action by ecological, social and stakeholder pressure.

By committing to the development of a sustainability charter to guide planning and operational decision-making, VRC is giving itself the opportunity to move proactively on sustainability, and deliver outcomes ina wider range of areas including energy and waste. The benefits available to businesses that pursuesustainability are numerous, and discussed further in this document.

But this opportunity does not come free of expectations or obligations; the opposite is most definitelytrue. A visible statement of commitments to sustainability will expose VRC to greater scrutiny among itsstakeholders, including employees, managers, customers, regulators, and partners. lt is thesestakeholders who will make the ultimate judgment on whether VRC is serious about sustainability, andwhether the approach is right. Negative perceptions of sustainability efforts, namely the accusation ofengaging in "greenwash", can be severe and long-lasting.

In creating a sustainability charter, the VRC will embrace the real urgency in meeting the challenges ofour society, and the role every business and individual needs to play to ensure we can survive and thrivein the coming century. ln short, get excited, get creative, and aim high! But this must be done carefully,and with an effort to understand:

Who are our stakeholders, and what do they expect of us?

I Where are our biggest impacts? Where have we the most power for positive change?


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What do we believe we can commit to? Are we confident in meeting the commitments? How far arewe prepared to "stretch" on issues of critical importance?

How will we succeed in assimilating sustainability in our culture, our workforce, our key decision-making?

2.2 Key Concepts in Sustainability

2.2.1 Defining Sustainability

The definition provided in the World Commission on Environment's 1987 report Our Common Future (theBruntland report) is still widely regarded as the accepted definition of sustainability:

Sustainable development is development that meets the needs of the present without compromisingthe ability of future generations to meet their own needs.

Australia's National Strategy for Ecologically Sustainable Development 1992 defines ecologicallysustainable development (ESD) as:

...using, conserving and enhancing the community's resources so that ecological processes, on whichlife depends, are maintained, and the total quality of life, now and in the future, can be increased.

Other internationally regarded frameworks for defining sustainability are enshrined in Agenda 21, whichoutlines a blueprint for actions to be implemented by the UN, governments and major groups includingbusinesses and other organisations. It was adopted by 178 governments in 1992 and responds to theprinciples outlined in the Rio Declaration on Environment and Development which recognise "the integraland interdependent nature of the Earth" and the need for States to consider the impact of theirdevelopment on others.

Inherent in all these definitions is the concept of considering the rights of future generations to enjoy "thesame standard of well-being as the current generation" (from Are We Sustaining Australia: A ReportAgainst Headline Sustainability Indicators for Australia).

This is known as Intergenerational Equity, and is one of 5 principles that are regarded as the keyprinciples of sustainability. The others are:

Conservation of biodiversity: The protection, maintenance and enhancement of a diversity of lifeforms on Earth is critical to our capacity for adaptation and long-term survival. This principle refers topreventing the loss of species and ecosystems, and encouraging diversity.

Intergenerational Equity: All humans alive at any time have a right to have their basic needs fulfilled,and have a right to a just share of resources to provide for these needs.

I Internalisation of externalities: Externalities refer to business "costs" which are not borne by thebusiness itself and potentially reflected in the price of goods or services, but rather "externalised" forthe community and environment as a whole to bear the cost. The most pertinent current example isgreenhouse gas emissions. Where other forms of pollution is regulated and costed, greenhousepollution is currently completely externalised, and the world is bearing the cost of climate change. Theimposition of a carbon tax or a cap and trade emissions trading scheme are steps to begininternalising this cost


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The precautionary principle: This principle states that where there are threats of serious or irreversibledamage, lack of full scientific certainty shall not be used as a reason for postponing cost-effectivemeasures to prevent environmental degradation.

2.2.2 Other Relevant Concepts

Two other concepts that have relevance for organisations in assessing and defining their approach tosustainability are described below:

Corporate Social Responsibility

Business for Social Responsibility, one of the leading global authority on corporate social responsibility,defines it as

...achieving commercial success in ways that honour ethical values and respect people,communities, and the natural environment... that CSR means addressing the legal, ethical,commercial and other expectations society has for business, and making decisions that fairlybalance the claims of all key stakeholders.

It provides a rationale for corporate entities to review their role within the broader community — theiroperating environment, and to consider their responsibility to stakeholders beyond shareholders andthose groups to whom they are financially accountable.

Ecological Footprint

The term 'ecological footprint' was co-created by environmental economist William E. Rees who definedit as:

...the corresponding area of productive land and aquatic ecosystems required to produce theresources used, and to assimilate the wastes produced, by a defined population at a specifiedmaterial standard of living, wherever on Earth that land may be located.

The ecological footprint can be used as a tool to assess the relative sustainability of different lifestylesand organisational operations based on the carrying capacity of the earth. Commonly, it is used toillustrate how much an individual or group exceeds its use of resources and the degree to which itsconsumption of resources is unsustainable.

For example, according to EPA Victoria's website Australia's ecological footprint was estimated as 7.7global hectares per person in 2004, well in excess of the 1.8 global hectares per person that the planetcan support. In simple terms this means that more than four planet earths would be required to provideour resources and assimilate our wastes, if everyone on earth were to live like Australians. This conditionis known as "ecological overshoot". Clearly therefore the practices that contribute to this footprint areunsustainable.

In relation to businesses, calculating one's ecological footprint provides a measure of an organisation'simpact on the environment and provides guidance for businesses to take action to reduce the size of thefootprint.


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2.3 Critical Sustainability Issues

What areas should organisations consider in relation to sustainability? When broadly applied, anorganisation's examination of sustainability will encompass three dimensions which have become well-known as the triple bottom line — social, economic and environmental. This is consistent with the GlobalReporting Initiative's framework, an internationally recognised standard for sustainability reporting.

Examples of these dimensions as they apply to organisations include:

Economic — how the organisation conducts its business with a focus on the financial aspectsincluding, accountability and governance, performance, ethics.

Social — impacts on the community including treatment of particular groups, human rights, labourpolicies, protection of cultural heritage, contribution to community building.

Environmental — consumption of natural resources, waste management, transport and the builtenvironment.

The VRC has already considered water as an area targeted for improved sustainability. In developing asustainability charter, VRC needs to consider other sustainability issues that may be of particularrelevance for the specific operations of the organisation. Issues to consider may include:

Energy consumption, and contribution to climate change

Waste production and disposal

Employee and patron safety

• Responsible gambling operations

• Supply chain management

• Improved profitability from improvements in sustainability

• Transportation impacts

• Contribution to community capacity building

• Animal welfare

• Stakeholder engagement

• Ethical business practices and corporate governance

2.4 Sustainability is Good for Business

There is increasing understanding and adoption of sustainability as a core operating principle byprominent businesses around the globe but it still remains a point of market differentiation in someindustries.

The benefits to business provided by working towards sustainability have been well documented andinclude:

• Improvements to bottom-line profits through improvements in materials and energy efficiency and theelimination of waste.

• Superior workforce performance through providing satisfying, safe, comfortable and well designedwork environments.


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o Identification of areas for business improvement through measuring and reporting against sustainableguidelines.

o Reputation benefits, including "employer of choice" status in competitive employment markets, andimproved relationships with stakeholders.

I Improved products and services to respond to the sustainability expectations of customers.

In Australia, Westpac is one recent example of a high-profile business that has undertaken commitmentsto sustainable practices including becoming a signatory to the Equator Principles. Its widespreadpromotion of its carnmitment demonstrates Westpac's recognition that sustainability is good for businessand adds value to its brand and corporate reputation.

Other well-regarded examples of sustainability in practice include:

Interface — vision to become the first truly sustainable company not only by reducing waste and energyconsumption but also by redesigning manufacturing processes and developing new products that areenvironmentally sustainable. http://www.interfacesustainabilitv.com/

Dupont — another organisation that has taken a holistic examination of its business in relation tosustainability, it has set targets for the development of products that reduce the environmental impact aswell as commitments to reduce the ecological footprint of its operations.http://www2.dupont.com/Sustainability/en US/

Virgin — seeking to embed 'responsible business practices' across the entire Virgin group that minimisesocial and environmental impacts. Its airline companies, for example, partner with abatement schemes toenable airline passengers to offset the carbon emissions produced via travel.http://www.virgin.com/RBP/WhatisProiectAware.aspx

These organisations have been well recognised for making significant efforts to improve the sustainabilityof their business while doing it in a way that delivers financial rewards.

2.5 Sustainability Charters

Formally, a charter is a written contract of incorporation. The term sustainability charter is used todescribe a document that gives a high level policy commitment to sustainable development and movingtowards more sustainable operations.

The sustainability charter plays a role as a visible, accessible guiding statement of intent for anorganisation. Sustainability charters can include detailed discussions of commitments, targets andmeasurements of progress towards sustainability. An inquiry has been conducted into the developmentof such a charter for Australia as a whole. More commonly, a sustainability charter is a one-page orslightly longer document outlining the high level organisational commitments to sustainable businesspractices.

A sustainability charter is not a substitute for more detailed systenns to drive organisational improvementssuch as Environmental Management Systems, measuring and reporting under sustainability indicatorssuch as those provided by the Global Reporting Initiative, or organisational planning for sustainability thatmay occur under an established framework, such as The Natural Step.

There is no known organisation in the world that can yet be described as sustainable. It is acceptablethat a sustainability charter may contain commitments that are currently well out of reach. However inboth the short and longer term, demonstrated actions and reporting against the commitments contained

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in the sustainability charter are likely be expected, which may well require the application of systems andapproaches such as those described above.

Common features of sustainability charters are described below. A charter would normally contain acombination of the features below, rather than all features.

2.5.1 Statement of Understanding and Commitment to the Goals of Sustainable Development

Many Sustainability Charters begin with a short statement outlining the general understanding of theorganisation of sustainable development, often incorporating some specifics about what this means tothe particular organisation. The section can contain some context describing the organisation and it'soperational environment. This section may begin with a restatement or paraphrasing of one of the well-accepted definitions of sustainability or sustainable development.

NXP Semiconductors sees sustainable development as one of the most challenging issues andgreatest opportunities of the 21st century. The company is committed to business practice thatbalances economic feasibility with social responsibility within environmental limits - demonstratingour responsibility to People, Profit and Planet.

2.5.2 Vision Statement

The sustainability charter may contain a succinct statement outlining the vision of the organisation inpursuing sustainable development objectives. The vision statement can be aspirational in nature.

We are committed to ensuring the long-term future of our forests, so that future generations havethe same opportunities to enjoy and appreciate our forests as we do today (Sustainability Charterfor Victoria's State Forests).

2.5.3 Principles of Sustainable Development

The charter may choose to provide some key principles under which the organisation intends to operate.This could include statements regarding:

Intergenerational equity,

The precautionary principle,

Transparent involvement of stakeholders,

Continuous improvement and innovation in sustainability.

2.5.4 Objectives or Commitments:

This section is the backbone of the sustainability charter and outlines the commitments that theorganisation is making to guide their operations along the path of sustainable development. Thecommitments in sustainability charters:

Are normally high-level

Can cover a large or small range of relevant sustainability issues

Do not normally include details of measurements or targets, but may well refer to the importance ofmonitoring


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May be restricted to direct on site impacts, or may describe interactions at industry wide or greaterlevels, or interactions with the supply chain

Can be quite general, or more tailored to the specific operations of an organisation

We are committed to proactively encouraging our suppliers to improve their environmentalperformance and by insisting they act in legal and sustainable fashion and are committed tocontinuous improvement. (Paperlinx Sustainability Charter)

(Veolia commit to) Gradually set our own environmental and social standards to be applied to all ouroperations around the world (Veolia sustainable development charter)

To maintain and conserve the soil and water resources the State forests (Victorian Government)

Continual improvement in... a safe enjoyable and informative experience for visitors (RotaruaSustainable Tourism Charter)

2.6 Further Reading

The following articles are included in Appendix A for further reading:

Corporate responsibility can give competitive advantage

July 5, 2007, The Age , David Grayson.

CSR is not just a corporate fadGeorge Pappas May 3, 2007 The Age


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3. Developing a Sustainability Charter at VRC

Developing a sustainability charter at VRC is an iterative process that involves four key phases:

Knowledge building

Discussion around sustainability

Development of a charter

Refinement and adoption.

Creating a sustainability charter requires the buy-in of the organisation to ensure it appropriatelyaddresses the organisation's needs and aligns with its vision. As leaders of the organisation, yourinvolvement in the development of the charter is therefore critical. Collectively you will need to definewhat sustainability means within the context of the VRC and having agreed on a framework, integrate theprinciples of sustainability into day-to-day operations as well as the organisation's long-term vision.

This process requires your commitment and energy in order to deliver a sustainability charter that:

Builds on current sustainability initiatives

Acts as a blueprint for future actions

Provides guidance for the organisation in working towards sustainable operations.

3.1 Phase 1: Knowledge Building

This Information Pack is set as pre-reading material for the first workshop to develop the sustainabilitycharter. It is designed to build knowledge about the theory and practical aspects of sustainabilityincluding:

Information on definitions of sustainability and key concepts

Critical sustainability issues

The business operating environment in regards to sustainability

Examples of other sustainability charters, demonstrating the variety of approaches currently in play.

3.2 Phase 2 - Workshop Session 1

The first workshop will provide an introduction to sustainability and build on the material presented in theInformation Pack. The workshop will focus on:

Why does the VRC need a sustainability charter?

What does sustainability mean for the VRC, and what are the strategic sustainability objectives?

What is in it for the VRC managers and staff?

) Issues to be covered in the Charter, including identifying commitments that:

— Are aligned to stakeholder expectations

— Deliver meaningful sustainability outcomes, that are aligned to the VRC's broader businessobjectives


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— Pass the test of public scrutiny ... ie. the Charter will be a public document and the VRC must beconfident it can deliver and implement the commitments made in the Charter.

3.3 Phase 3 - Conduct Workshop Session 2

The second workshop will develop the Sustainability Charter based on a framework that evolves from thediscussion in the first workshop. The focus of the second workshop will be to develop the Charter as faras possible to maximise ownership and future use of the Charter by the VRC managers.

3.4 Phase 4 - Complete Sustainability Charter

Based on discussion in the second workshop, a draft Charter will be circulated among workshopattendees for further review and refinement. The final Charter will be prepared after receipt of all VRCcomments on the draft Charter and issued to VRC to be formally adopted.

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Agenda Item 5.3 Marketing and Events Committee

11 September 2007

FINANCE ATTACHMENT


There are no City of Melbourne financial implications of this Committee Paper.

Joe Groher Manager Financial Services

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Agenda Item 5.3 Marketing and Events Committee

11 September 2007

LEGAL ATTACHMENT


No direct legal issues arise from the recommendation of this report.

Section 3C(1) of the Local Government Act 1989 (“the Act”) provides that:

“The primary objective of a Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions;”

The Act sets out facilitating objectives at Section 3C (2) including:

"(a) to promote the social, economic and environmental viability and sustainability of the municipal district;

The subject matter of the report and the recommendation is within the objectives of the Council.

Kim Wood Manager Legal Services

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Documents

SUSTAINABILITY ASSESSMENT OF MELBOURNE ICONIC EVENTS › about-council › ... · 3. For the purpose of this report Melbourne Iconic Events are classified as the Australian Open,