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Planning For People, Planet And Profit In The Hospitality Industry (Hans Van Wees 04 07 2010)
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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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  • 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. Product Price Company Social and Environmental practices Availability Purchase (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. Business Interests Stake holders Interests Sustainability Sweet Spot (c) Hans van Wees - hans@van-wees.com
  • 14. Goal 1. 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) 2. 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 Certification SEC 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  Kimpton EarthCare® 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 Green House Gasses Reporting Emissions to CDP (Carbon Disclosure Project) What are total GHG reported most recently Do you have publically available GHG reduction targets? (c) Hans van Wees - hans@van-wees.com
  • 29. MATERIAL EFFICIENCY Report amount of solid waste Solid waste targets Report total water use Water usage reduction targets (c) Hans van Wees - hans@van-wees.com
  • 30. NATURAL RESOURCES Do you have sustainability purchasing guidelines? Third party certifications (c) Hans van Wees - hans@van-wees.com
  • 31. PEOPLE AND COMMUNITY Social Sustainability Do you know the locations of 100% of the facilities that produce your products? Do you evaluate quality and capacity of your suppliers? Do you have a process for measuring social compliance at the manufacturing level? Social compliance team? Do you invest in community development activities? (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 Guest needs Owner needs Staff Needs Community and Environment Needs (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 Assess & Identity Strategize and Set Goals Implement and Measure Report and Communicate Engage and Instill
  • 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 This Year Plan Diff Last Year Diff FINANCIAL Revenues $ 945,000 $ 930,000 $ 15,000 $ 900,000 $ 45,000 Costs $ 771,950 $ 780,000 $ (8,050) $ 790,000 $ (18,050) Profit $ 173,050 $ 150,000 $ 23,050 $ 110,000 $ 63,050
  • 58. greenREACH - Report and Communicate ENVIRONMENT THIS YEAR PLAN DIFFERENCE LAST YEAR DIFFERENCE GHG (tons) 12,500 12,000 4% 15,000 -17% Solid Waste (tons) 19,500 20,000 -3% 25,000 -22% Water Use (gallons) 885,000 900,000 -2% 1,000,000 -12% COMMUNITY Volunteer program (hrs) 320 300 7% 240 33% Charitable Donations 10,000 10000 0% 5,000 100% (c) Hans van Wees - hans@van-wees.com
  • 59. (c) Hans van Wees - hans@van-wees.com -40% -20% 0% 20% 40% 60% 80% 100% 120% Three Beards Lodge Year End Results
  • 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/Abo utFairmont/CorporateResponsi bility/ www.kimptonhotels.com/progra ms/earthcare (c) Hans van Wees - hans@van-wees.com
  • 72. Thank you! Hans van Wees VWC Hospitality Burlington, Vermont 802-793-2289 hans@van-wees.com (c) Hans van Wees - hans@van-wees.com