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This is a presenation I did for the New Zealand Institute of Chartered Accountants on the benefits of corporate sustainability.
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Michael FieldMichael Field Sustainability Manager, North Shore City Council
MeMe
Corporate Sustainability Practitioner Working in this field for over 10
years Over 30 published papers and articles Guest Lecturer at Massey Uni Recipient of the Global “Sustainability
Champions Award” in 2003
TNSTNS
What we TAKE
(from the earths crust)
What we MAKE
(non-biodegradable materials & emissions)
What we BREAK (damage to natural cycles and ecosystem)
Sharing the CAKE
(impact on society)
Resource useResource use - - The Funnel MetaphorThe Funnel Metaphor
Res
ou
rces
Time
Demand
Supply
?
Corporate SustainabilityCorporate Sustainability
Is this the same as ‘sustainability’? It’s a holistic process for assessing the
overall ‘health’ of an organisation Includes everything
Sound businessSound business
Sustainability thinking is not about a driving need to save the planet
It’s not even new!
Frederick Herzberg’s theories of business management
The theoriesThe theories
Holistic assessment framework
Measures overall health, not just financial
Understanding all impacts
Therefore all risks, liabilities and opportunities
What’s includedWhat’s included Ecological protection Climate change Peak oil Energy Transport Infrastructure Reputation management Buildings Materials efficiency Waste minimisation Species protection Impact assessment (holistic) Sustainable development?
In real terms…In real terms…
Materials minimisation Emissions Effluents and waste Sustainable procurement Energy management / efficiency Biodiversity Work-flow efficiency
Economic performance Sustainability policies Sustainability training and education Stakeholder engagement Sustainability reporting Environmental / Sustainability
Management System
External driversExternal drivers
Stakeholder pressure Sustainability reporting Government pressure Legislation and compliance Competitors are doing it….
The ‘by comparison’ metaphor
OpportunitiesOpportunities
Cost savings through efficiency Energy reduction Waste to landfill Materials (doing more with less)
In my experience – between $500k and $3.5m in 12 months
How can you know all of them without sustainable thinking?
A couple of case studies:A couple of case studies:
Interface IncInterface IncNorth Shore City CouncilNorth Shore City Council
Interface IncInterface Inc
Australian arm ranked 190th
Out of 190 business units!
Programmes kicked off in 2002 End of 2003 – won global Eco-Sense
award (1st out of 190) Great ‘sustainability story’, but what else?
Interface Inc contInterface Inc cont Waste reduction at plant – saving of $2.5
million in 12 months With 3 to 1 rule that’s $7.5m avoided
expenditure Why use the material if you can’t sell it?
Sustainability presentations Increase in market share of 60%
Interface Inc contInterface Inc cont
Cheaper manufacturing costs Ability to compete aggressively if needed If not, margin rather nice
Staff engagement – through the roof! Bonus payments would have helped Staff turnover down Employer of choice
Not even specialNot even special
While consulting Worked with many NZ businesses, from
SME’s, to global corporates Results are the same – just scaled
Remember, none of them were running ‘fat’
They were already well managed
So, what is NSCC doing now?So, what is NSCC doing now?
After all, talk is cheap!After all, talk is cheap!
NSCC’s commitmentNSCC’s commitment
North Shore City Council believes that we have a clear responsibility to act, operate and
develop in the most sustainable way possible. It is our commitment to lead by example by recognising the critical importance of our
impacts on social, economic, cultural and environmental concerns. It is our aim to
continually strive to reduce the negative and maximise the positive impacts of our
operations.
We look afterWe look after
Corporate sustainability programmes Communications & education Energy management Procurement WasteWise workplace programme Fleet management Carbon accounting Sustainability reporting
Current projectsCurrent projects64 active projects at the moment, so just a few:
Energy management incl. efficiency 1 million kWh saved last year – enough to power 250
homes for a year and saved $200,000 rationalised energy spending, installing a Burner
Management Unit, energy conservation campaigning
Procurement contract renegotiations and new contracts – more than
$700,000 saving
Waste minimisation waste to landfill down 80% - minimum saving of $90,000 diverting 800 tonnes of seaweed as well as office waste
Current projects cont’dCurrent projects cont’d Fleet management
investigating future vehicle and fuel use/supply options
Climate Change incl. carbon accounting now fully ISO14064 compliant for carbon accounting
Sustainability Report first GRI compliant report released last year (just finished
latest)
Auditing & reporting extremely important
A total of more than $1.3 million in savings last year
Most savings are ongoing and will increase over time
Corporate Sustainability @ NSCCCorporate Sustainability @ NSCC All-encompassing (not an add-on) It’s all about raising efficiency and eliminating
waste in all its forms Changing the way we think Understanding ALL of the impacts, both
Positive and Negative It’s not about saving the environment, that’s
just a great by-product Always seeking the additional opportunities
Positive press Positive press Free marketing:
The Independent The North Shore Times Carbon News Exporter Magazine Voice Magazine The National Business Review The Aucklander Scoop Independent News
An example of seeking An example of seeking innovative solutionsinnovative solutions
(because I don’t do all this by myself)(because I don’t do all this by myself)
Pt 2:Pt 2:Energy & Invoice ManagementEnergy & Invoice Management
The problemThe problem Some outstanding electricity invoices from
2002! No visibility of our bills (hundreds) Manual checking of kWh charge (as if)! Huge time spent
over 75 hours a month and not keeping up
No visibility of accounts No ability to identify savings
A need to report on carbon emissions
The solutionThe solution
Revolution-ID - FoundationFootprint™
Fully automated software
Does, quite literally, everything for me!
It’s all about automation!It’s all about automation!
What I get, as a client (no techy stuff) Electricity refunds - $221,166.13 Savings per annum - $16,624
Sites ID’d as not NSCC or meters removed
Gas refunds - $1,174.43 Processing time saved – 75 + hours:
Corp Sust team – 5 + Accounts payable – 20 + Energy approvers – 50 +
What it does (for us)What it does (for us) Invoices fully automated
Sent from energy company to software
Software ‘declines’ invoices with incorrect rates – notifies energy company
Email generated to all energy approvers Log-on and approve / decline with reason
Declines notified to energy company
Accounts payable file generated
Now used forNow used for
Electricity invoices Gas invoices Fuel invoices Water invoices Mobile phone invoices
Also gives us ISO: 14064 compliant carbon accounting
Revolution ID -FoundationFootprint™
www.Rev-ID.com
• Chris Lindley – Founder & CEO• Auckland based, Kiwi owned company• Ex-Icehouse Incubator resident• Member of the GHG Protocol’s
Stakeholder Advisory Group and NZBCSD• A “Zero Weight” export company• Customers – local govt, health, mining...
What is FoundationFootprint™?
www.Rev-ID.com
Carbon, energy and resource management softwareWeb basedEnterprise level softwareStandards based (GHG Protocol, ISO 14064)Monthly subscription fee
FoundationFootprint™
www.Rev-ID.com
Carbon footprint data at group, facility and emission source levelAutomated:Business intelligence & reportsData gatheringNotifications and audit trailsSupplier integration
Value Proposition
www.Rev-ID.com
Carbon, energy and water management
=Cost savings (Refunds and reduce)
Time savingsCompliance
Real time reportingGreat information!
ROI Example
www.Rev-ID.com
North Shore City Council:•3 year contract•ROI in 7 months (Electricity & Gas refunds)•Now mobile phones•Main source of information
Audience
www.Rev-ID.com
•Large complex organisations•Local and regional govt•Multi nationals•Co-ops E.g. Fonterra
•Large emitters•ETS participants•Exporters•Foreign owned companies
Risks and Issues
www.Rev-ID.com
Risks and Issues
www.Rev-ID.com
• Data collection• Distribution• Collection• Validation• Reporting
• Comply with multiple GHG programs
Current Methods
• Microsoft Excel and email• ERP• Home grown systems
www.Rev-ID.com
The Current Way
www.Rev-ID.com
• Takes 1 person one week to collate data from across their organisation per month
• Inaccurate information, formulas broken, emission factors wrong, missing or tampered with
• Different people in same facility will hold different information
• Time consuming to aggregate spreadsheets• Virtually impossible to recalculate if changing historic
data or control approach• Chasing people for their reports and contact details
The FoundationFootprint™ Way
www.Rev-ID.com
• Central, web based data store• Can still use familiar tools - Microsoft Excel and email but
all spreadsheets are managed by FoundationFootprint™ • Can import your data directly from your suppliers• All calculations based on raw data – can add, edit,
remove historic data and change control approaches • No more week long exercises – Data aggregation,
business intelligence and reports in real time• User self management – Maintain details, automated,
timely reminders
FoundationFootprint™ and Water
www.Rev-ID.com
Compare water uses (including staff presence, industrial use, and supply chain) with validated water and sanitation availability information
Calculation of water consumption & efficiency
Establish relative water risks in your organisations’s portfolio to prioritise action – including more detailed assessment
Create key water GRI Indicators, inventories, risk and performance metrics and geographic mapping
Enable effective communication with internal and external stakeholders on your company’s water issues
www.Rev-ID.com
Thank you & questions?Thank you & questions?
Chris Lindley
+64 (0) 21 380 845
Michael Field
+ 64 (0) 27 695 1002