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

    • Planning for People, Planet and Profit
      Hans van Wees
      VWC Hospitality
    • Confessions of a Green Skeptic:
      Making the business case for sustainability in the hospitality industry
    • 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
    • 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
    • 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
    • (c) Hans van Wees - hans@van-wees.com
    • CORPORATE SOCIAL RESPONSIBILITY:
      EXPENSE? $$
      OR:
      OPPORTUNITY? $$$$
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • Sustainable: buzzword or substance?
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • Triple Bottom Line
      Profit
      Planet: Environment
      People: Social Responsibility
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • Sustainability
      Sweet
      Spot
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • Triple Bottom Line tools
      Many industries apply TBL principles and many measurement tools have been developed.
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • What can we learn from Vermont businesses?
    • Local businesses with clear and measurable sustainability plans
      Green Mountain Coffee Roasters
      Seventh Generation
      (c) Hans van Wees - hans@van-wees.com
    • What can we learn from leading hotel companies?
    • 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
    • What can we learn from the nation’s largest retailer?
    • 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
    • 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
    • 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
    • SUSTAINABILITY CATEGORIES
      Energy and Climate
      Material Efficiency
      Natural Resources
      People and Community
      (c) Hans van Wees - hans@van-wees.com
    • ENERGY AND CLIMATE
      (c) Hans van Wees - hans@van-wees.com
    • MATERIAL EFFICIENCY
      (c) Hans van Wees - hans@van-wees.com
    • NATURAL RESOURCES
      (c) Hans van Wees - hans@van-wees.com
    • PEOPLE AND COMMUNITYSocial Sustainability
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • 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
    • (c) Hans van Wees - hans@van-wees.com
      Putting it to work
    • (c) Hans van Wees - hans@van-wees.com
      Three Beards Lodge
      Case Study
    • 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
    • Three Beards Lodge: meet the owners
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • The TBL Mission Statement
      Providing our guests with an authentic, warm and welcoming Vermont experience
      (c) Hans van Wees - hans@van-wees.com
    • Three Beards Lodge Brand Pillars
      (c) Hans van Wees - hans@van-wees.com
    • Three Beards Lodge Business Plan
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • greenREACH 5-step plan
      © greenREACH
    • Assess and Identify
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • Strategize and Set Goals
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • Implement and Measure
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • 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
    • 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
    • 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
    • Report and Communicate
      (c) Hans van Wees - hans@van-wees.com
    • greenREACH - Report and Communicate
      (c) Hans van Wees - hans@van-wees.com
    • greenREACH - Report and Communicate
      (c) Hans van Wees - hans@van-wees.com
    • (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • Engage and Instill
      (c) Hans van Wees - hans@van-wees.com
    • 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
    • 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
    • (c) Hans van Wees - hans@van-wees.com
      Parting thoughts
    • 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
    • It’s in your hands
      (c) Hans van Wees - hans@van-wees.com
    • (c) Hans van Wees - hans@van-wees.com
    • (c) Hans van Wees - hans@van-wees.com
    • (c) Hans van Wees - hans@van-wees.com
    • 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
    • Thank you!Hans van WeesVWC HospitalityBurlington, Vermont802-793-2289hans@van-wees.com
      (c) Hans van Wees - hans@van-wees.com