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Planning For People, Planet And Profit In The Hospitality Industry (Hans Van Wees 04 07 2010)

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Presentation at the Vermont Travel Industry Conference on structuring businesses beyond social responsibility, to incorporate, account for, and communicate the impact on "people, planet and ...

Presentation at the Vermont Travel Industry Conference on structuring businesses beyond social responsibility, to incorporate, account for, and communicate the impact on "people, planet and profit" in a measurable, meaningful way.

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Planning For People, Planet And Profit In The Hospitality Industry (Hans Van Wees 04 07 2010) Presentation Transcript

  • 1. Planning for People, Planet and Profit
    Hans van Wees
    VWC Hospitality
  • 2. Confessions of a Green Skeptic:
    Making the business case for sustainability in the hospitality industry
  • 3. The Green Skeptic
    Hotelier
    Green skeptic at first
    Believer in wanting to do what is the right thing, not just what feels right
    (c) Hans van Wees - hans@van-wees.com
  • 4. Green Skeptic Converted?
    Learned that we were doing things that were right
    What can we do with this?
    (c) Hans van Wees - hans@van-wees.com
  • 5. And if not converted?
    This is going to be the way we will do business, like it or not
    Our customers will select products and services based on sustainability practices, not just price and product qualities
    (c) Hans van Wees - hans@van-wees.com
  • 6. (c) Hans van Wees - hans@van-wees.com
  • 7. CORPORATE SOCIAL RESPONSIBILITY:
    EXPENSE? $$
    OR:
    OPPORTUNITY? $$$$
    (c) Hans van Wees - hans@van-wees.com
  • 8. How can the Vermont hospitality industry translate sustainable business principles into opportunities for cost savings, increased efficiencies and additional revenue streams?
    (c) Hans van Wees - hans@van-wees.com
  • 9. Sustainable: buzzword or substance?
    (c) Hans van Wees - hans@van-wees.com
  • 10. A definition of sustainable business
    Sustainable business (green business):
    has no negative impact on the global or local environment, community, society, or economy;
    strives to meet the Triple Bottom Line;
    have progressive environmental and human rights policies.
    (c) Hans van Wees - hans@van-wees.com
  • 11. Triple Bottom Line
    Profit
    Planet: Environment
    People: Social Responsibility
    (c) Hans van Wees - hans@van-wees.com
  • 12. TRIPLE BOTTOM LINE
    “Your company’s sweet spot is where its financial interests coincide with social and environmental interests”
    Andrew W. Savitz – The Triple Bottom Line
    (c) Hans van Wees - hans@van-wees.com
  • 13. Sustainability
    Sweet
    Spot
    (c) Hans van Wees - hans@van-wees.com
  • 14. Goal
    Develop a business plan that plans for profit, social responsibility and environmental impact in easy, measurable terms so they can be easily understood by all stakeholders (owners, employees, clients, community)
    Create a competitive advantage as a business by having such a plan and meeting or exceeding our goals
    (c) Hans van Wees - hans@van-wees.com
  • 15. Measure
    Some clear set of metrics we can use for our business plan
    Some comparative metrics, or a ranking, that shows how much better we do than our competition
    (c) Hans van Wees - hans@van-wees.com
  • 16. Triple Bottom Line tools
    Many industries apply TBL principles and many measurement tools have been developed.
    (c) Hans van Wees - hans@van-wees.com
  • 17. Green Business Certified Program
    Walmart Sustainability Index
    Green-e CertificationSEC Interpretive Release 33-9106
    ISO 14001 (Environmental
    Leadership in Energy and
    Management)
    Environmental Design (LEED)
    Expedia Green Hotel List
    ISO 14020 and ISO 14024
    Carbon Disclosure Project
    Energy Star Certification
    MBDC Cradle to Cradle Certification
    CDP Water Disclosure
    MSPA Green IT Certification
    The CEO Water Mandate
    NAHB Green Building Certification
    (c) Hans van Wees - hans@van-wees.com
  • 18. CoSN Green Computing Certification
    NASDAQ Global Sustainability 50 Index
    Vermont Green Hotels Certification
    NYS Green Hotel Certification Program
    Dow Jones Sustainability Indexes
    TBR Corporate Sustainability Index
    FTSE Global Sustainability Index
    United Nations Global Compact
    Green Advantage Certification
    World Business Council for Sustainable
    Global e-Sustainability Initiative
    Development
    Global Reporting Initiative
    Yale Environmental Sustainability Index
    (c) Hans van Wees - hans@van-wees.com
  • 19. What can we learn from Vermont businesses?
  • 20. Local businesses with clear and measurable sustainability plans
    Green Mountain Coffee Roasters
    Seventh Generation
    (c) Hans van Wees - hans@van-wees.com
  • 21. What can we learn from leading hotel companies?
  • 22. Hotel Companies
    Fairmont Hotels
    Early adapter of Social and Environmental principles: for two decades leader in environmental stewardship
    Green Partnership Program
    Being “at the heart” of your community
    Fairmont Foundation
    Hospitality Training and Education
    Local: Volunteerism and fundraising
    Kimpton Hotels
    50 hotels, 48 of which are green seal certified
    KimptonEarthCare® program
    Run by employees
    “Commitment to sparing the environment, and our guests”
    Recycling Historic Buildings
    Environmentally and Socially Sensitive Purchasing Policy
    © Hans van Wees - hans@van-wees.com
  • 23. What can we learn from the nation’s largest retailer?
  • 24. Walmart
    Nation’s largest retailer develops a Sustainability Index
    New Retail Standard
    “When given the choice, consumer will buy product with higher sustainability index”
    (c) Hans van Wees - hans@van-wees.com
  • 25. Walmart Sustainability Index
    GOAL:
    Produce zero waste
    Supply: 100% renewable energy
    Products that sustain resources and environment
    (c) Hans van Wees - hans@van-wees.com
  • 26. Walmart approach
    Phase 1: supplier sustainability assessment
    Phase 2: lifecycle analysis database
    Phase 3: simple tools for customers to help with decision making
    (c) Hans van Wees - hans@van-wees.com
  • 27. SUSTAINABILITY CATEGORIES
    Energy and Climate
    Material Efficiency
    Natural Resources
    People and Community
    (c) Hans van Wees - hans@van-wees.com
  • 28. ENERGY AND CLIMATE
    (c) Hans van Wees - hans@van-wees.com
  • 29. MATERIAL EFFICIENCY
    (c) Hans van Wees - hans@van-wees.com
  • 30. NATURAL RESOURCES
    (c) Hans van Wees - hans@van-wees.com
  • 31. PEOPLE AND COMMUNITYSocial Sustainability
    (c) Hans van Wees - hans@van-wees.com
  • 32. Walmart – Energy and Climate
    Sample question: Green House Gasses (GHG)
    Reality: whether you believe the absolute impact that GHG’s have on the environment or not, you are going to have to deal with it. The rules are changing, so are the laws.
    (c) Hans van Wees - hans@van-wees.com
  • 33. Calculate your GHG
    Easier than you think:
    Emissions you control
    Source of electricity
    Portion you don’t control, but benefits you
    (c) Hans van Wees - hans@van-wees.com
  • 34. Total Electricity
    + Natural Gas
    + Gallons of Fuel
    + Air-conditioning records
    + Unusual Sources
    X
    Conversion Factor
    =
    Total GHG impact
    Calculating GHG impact
    (c) Hans van Wees - hans@van-wees.com
  • 35. (c) Hans van Wees - hans@van-wees.com
    Putting it to work
  • 36. (c) Hans van Wees - hans@van-wees.com
    Three Beards Lodge
    Case Study
  • 37. Case: The “Three Beards Lodge” (TBL)
    40 room country inn in Vermont in 4-season resort town
    Restaurant with 50 seats
    Bar
    Owners active in community
    Inn has gone through difficult time in recession but is starting to climb out
    (c) Hans van Wees - hans@van-wees.com
  • 38. Three Beards Lodge: meet the owners
    (c) Hans van Wees - hans@van-wees.com
  • 39. Owners believe that:
    The CSR movement is inevitable
    The benefits are enormous: financial, changing guests expectations, new creative ideas, attracting talent, feeling good about what you do
    (c) Hans van Wees - hans@van-wees.com
  • 40. The TBL Mission Statement
    Providing our guests with an authentic, warm and welcoming Vermont experience
    (c) Hans van Wees - hans@van-wees.com
  • 41. Three Beards Lodge Brand Pillars
    (c) Hans van Wees - hans@van-wees.com
  • 42. Three Beards Lodge Business Plan
    (c) Hans van Wees - hans@van-wees.com
  • 43. Three Beards Lodge – PPP Plan
    PPP (people, planet, profit) accepted as pillar of brand rather than part of doing business
    5-step PPP plan using greenREACH method
    (c) Hans van Wees - hans@van-wees.com
  • 44. Green consulting company.
    Matches green expertise to organizational needs:
    Consulting
    Custom training
    125+ green experts in 25 fields of sustainability
    (c) Hans van Wees - hans@van-wees.com
    www.greenreachable.com
  • 45. greenREACH 5-step plan
    © greenREACH
  • 46. Assess and Identify
    (c) Hans van Wees - hans@van-wees.com
  • 47. greenREACH -Assess and Identify
    Don’t try to do all but start first year with three to four areas that can easily be identified, sample:
    Measure Green House Gasses (since this will become law anyway)
    Calculate solid waste and current recycling (get details from your waste management company)
    Determine total water use
    What community (local or at large) needs are closest to your heart
    (c) Hans van Wees - hans@van-wees.com
  • 48. Strategize and Set Goals
    (c) Hans van Wees - hans@van-wees.com
  • 49. greenREACH - Strategize and Set Goals
    What is most relevant to you and the stakeholders involved? Where can you make the biggest impact? Example:
    Develop initiatives that will reduce Green House Gasses by 20% next year to “x” tons
    Develop a solid waste reduction program that will reduce quantities by 20% next year and 15% year after
    Develop program that will cut water use by 10% in first year
    What role are we best suited to support local community. Develop one initiative in first year and set goals together with stakeholders
    (c) Hans van Wees - hans@van-wees.com
  • 50. Implement and Measure
    (c) Hans van Wees - hans@van-wees.com
  • 51. greenREACH -Implement and Measure
    Activities that will support the strategy and will help us achieve the goals set. Choose simple, easy wins to begin with and get used to measuring. Examples:
    (c) Hans van Wees - hans@van-wees.com
  • 52. greenREACH -Implement and Measure
    Develop initiatives that will reduce Green House Gasses by 20% next year to “x” tons
    Eliminate vehicles from idling. Measure: fuel use (given relatively consistent use of vehicles year to year). Multiply reduced fuel use by factor to determine reduction in GHG. And $$ savings!
    Turn off appliances in restaurant, kitchen. Measure: electric bill, convert to GHG and $$ savings
    Perform lighting audit and install CFL everywhere possible. Measure: electric bill and $$ savings
    (c) Hans van Wees - hans@van-wees.com
  • 53. Develop a solid waste reduction program that will reduce quantities by 20% next year and 15% year after
    Kitchen waste composting. Measure: weight of waste reflected in reduced waste disposal cost (invoiced from waste mgt company)
    Recycling bins in all guest rooms and in kitchen. Measure: reduction in solid waste cost
    (c) Hans van Wees - hans@van-wees.com
    greenREACH -Implement and Measure
  • 54. greenREACH - Implement and Measure
    Develop program that will cut water use by 10% in first year
    Replace showerheads with low-flow type. Measure: water consumption, invoice, $ savings
    Linen re-use policy. Change linen every 3 days in stead of daily. Measure: pounds of laundry per occupied room. Laundry invoice or water company invoice.
    Side effect: reduction in waste water. Measure: waste water treatment invoice
    (c) Hans van Wees - hans@van-wees.com
  • 55. greenREACH - Implement and Measure
    Role that is best suited to support local community. Develop one initiative in first year and set goals together with stakeholders
    Audience exercise. Discuss and develop metrics for one initiative in your community
    Measure: employee job satisfaction, employee turnover, investments in local community and social media: what are people saying – taking part in the conversation
    (c) Hans van Wees - hans@van-wees.com
  • 56. Report and Communicate
    (c) Hans van Wees - hans@van-wees.com
  • 57. greenREACH - Report and Communicate
    (c) Hans van Wees - hans@van-wees.com
  • 58. greenREACH - Report and Communicate
    (c) Hans van Wees - hans@van-wees.com
  • 59. (c) Hans van Wees - hans@van-wees.com
  • 60. greenREACH - Communicate!
    Internal:
    Create reports and graphs that demonstrate your initiatives in action
    Factor in $$ savings
    Spread the word!
    (c) Hans van Wees - hans@van-wees.com
  • 61. greenREACH - Communicate
    External:
    Add page or section to website that clearly states your TBL initiatives and methods of measurement you use
    Report on quarterly basis, just as you would financial information
    Be transparent as to where you are in the process and you won’t be accused of green washing
    (c) Hans van Wees - hans@van-wees.com
  • 62. Engage and Instill
    (c) Hans van Wees - hans@van-wees.com
  • 63. greenREACH - Engage and Instill
    Employees and contractors:
    Workforce is single most powerful PR point
    Input and feedback
    Employees must:
    Understand and relate to the problem
    Understand and relate to your proposed solution
    (c) Hans van Wees - hans@van-wees.com
  • 64. greenREACH - Engage and Instill
    Greater community:
    Sponsor events with non-profits to help community causes
    Enroll guests for input on how you can improve
    Pursue environmental/socially responsible groups to host meetings at hotel
    Again: be transparent in marketing where you are in the process
    (c) Hans van Wees - hans@van-wees.com
  • 65. (c) Hans van Wees - hans@van-wees.com
    Parting thoughts
  • 66. Will sustainability stick?:
    Clean technology fastest growing sector, the new internet boom?
    CSR investments outperform all other sectors
    60% of customers say CSR policies crucial part of their decision making
    92% of new hires want their companies to be green
    Source: greenREACH
    (c) Hans van Wees - hans@van-wees.com
  • 67. It’s in your hands
    (c) Hans van Wees - hans@van-wees.com
  • 68. (c) Hans van Wees - hans@van-wees.com
  • 69. (c) Hans van Wees - hans@van-wees.com
  • 70. (c) Hans van Wees - hans@van-wees.com
  • 71. Resources
    www.greenwashingindex.com
    www.greenreachable.com
    www.gmcr.com/csr
    www.seventhgeneration.com
    www.greenseal.org
    www.fairmont.com/EN_FA/AboutFairmont/CorporateResponsibility/
    www.kimptonhotels.com/programs/earthcare
    (c) Hans van Wees - hans@van-wees.com
  • 72. Thank you!Hans van WeesVWC HospitalityBurlington, Vermont802-793-2289hans@van-wees.com
    (c) Hans van Wees - hans@van-wees.com