Nzica sust pres michael field & chris lindley


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

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  • Explain how this can be used to map organisational impact
  • So, what’s it based on?
  • It’s not about chaining yourself to a tree (1923 to 2000) So what are these theories…
  • There is no ‘silver bullet’ – each business is different, it’s how we think, to make decisions, that drives effectiveness.
  • Broad brush of the topics covered under Corporate Sustainability Cover off Sustainable Development – the oxymoron There's a great deal there, so let’s break it down a bit more…
  • So that’s all the theory, but how does it work in practice…
  • By comparison – if you are seen to be not doing it, human psychology dictates that you will automatically be seen as the pole opposite – silence is just as bad The financial drivers…
  • It’s not all negative drivers So when we talk about sustainable thinking, what’s included?...
  • 3 / 1 rule – on average it costs $3 to $5 to generate $1 of profit. Worth noting savings are ongoing Market share was directly from other manufacturers, as market didn’t grow
  • But again, how can you know where opportunities lay without sustainable thinking?
  • Having the policy in place is so important – everyone's JD etc - carrots are great, but sticks are definitely important.
  • It’s part of peoples jobs! Example of worm digester at Framework Trust
  • Not so important to us, but definitely is for a corporate
  • It was scary!
  • Over to Chris for the techy stuff
  • Nzica sust pres michael field & chris lindley

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