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 feel...
Green Skeptic Converted?
Learned that we were doing
things that were right
What can we do with this?
(c) Hans van Wees -...
And if not converted?
This is going to be the way we
will do business, like it or not
Our customers will select
products...
Product Price
Company Social
and
Environmental
practices
Availability
Purchase
(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,
i...
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
loca...
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
inte...
Business
Interests
Stake holders
Interests
Sustainability
Sweet
Spot
(c) Hans van Wees - hans@van-wees.com
Goal
1. Develop a business plan that plans
for profit, social responsibility and
environmental impact in easy,
measurable ...
Measure
Some clear set of metrics we can
use for our business plan
Some comparative metrics, or a
ranking, that shows ho...
Triple Bottom Line tools
Many industries apply TBL
principles and many
measurement tools have been
developed.
(c) Hans va...
Green Business Certified Program
Walmart Sustainability Index
Green-e Certification
SEC Interpretive Release 33-9106
ISO 1...
CoSN Green Computing Certification
NASDAQ Global Sustainability 50 Index
Vermont Green Hotels Certification
NYS Green Hote...
What can we
learn from
Vermont
businesses?
Local businesses with clear and measurable
sustainability plans
Green Mountain Coffee Roasters
Seventh Generation
(c) Ha...
What can we
learn from
leading hotel
companies?
Hotel Companies
Fairmont Hotels
 Early adapter of Social and
Environmental principles: for two
decades leader in environm...
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 ...
Walmart Sustainability Index
GOAL:
Produce zero waste
Supply: 100% renewable
energy
Products that sustain resources
and...
Walmart approach
Phase 1: supplier sustainability
assessment
Phase 2: lifecycle analysis database
Phase 3: simple tools fo...
SUSTAINABILITY CATEGORIES
Energy and Climate
Material Efficiency
Natural Resources
People and Community
(c) Hans van W...
ENERGY AND CLIMATE
Green House
Gasses
Reporting
Emissions to CDP
(Carbon Disclosure
Project)
What are total
GHG reported
m...
MATERIAL EFFICIENCY
Report
amount of
solid waste
Solid waste
targets
Report total
water use
Water usage
reduction
targets
...
NATURAL RESOURCES
Do you have
sustainability
purchasing
guidelines?
Third party
certifications
(c) Hans van Wees - hans@va...
PEOPLE AND COMMUNITY
Social Sustainability
Do you know the
locations of 100% of
the facilities that
produce your
products?...
Walmart – Energy and Climate
Sample question: Green House
Gasses (GHG)
Reality: whether you believe the
absolute impact ...
Calculate your GHG
Easier than you think:
Emissions you control
Source of electricity
Portion you don’t control, but
be...
Total Electricity
+ Natural Gas
+ Gallons of Fuel
+ Air-conditioning records
+ Unusual Sources
X
Conversion Factor
=
Total...
(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
Ba...
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, ...
The TBL Mission Statement
Providing our guests with an
authentic, warm and welcoming
Vermont experience
(c) Hans van Wees...
Three Beards Lodge Brand Pillars
(c) Hans van Wees - hans@van-wees.com
Three Beards Lodge Business Plan
Guest needs
Owner
needs
Staff Needs
Community
and
Environment
Needs
(c) Hans van Wees - h...
Three Beards Lodge – PPP Plan
PPP (people, planet, profit)
accepted as pillar of brand rather
than part of doing business...
 Green consulting company.
 Matches green expertise to organizational needs:
 Consulting
 Custom training
 125+ green...
greenREACH 5-step plan
© greenREACH
Assess &
Identity
Strategize
and Set Goals
Implement
and Measure
Report and
Communicat...
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
id...
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 b...
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. Choos...
greenREACH - Implement and Measure
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
 Kitchen waste co...
greenREACH - Implement and Measure
Develop program that will cut water use
by 10% in first year
 Replace showerheads with...
greenREACH - Implement and Measure
Role that is best suited to support local
community. Develop one initiative in first
ye...
Report and
Communicate
(c) Hans van Wees - hans@van-wees.com
greenREACH - Report and Communicate
(c) Hans van Wees - hans@van-wees.com
This Year Plan Diff Last Year Diff
FINANCIAL
Rev...
greenREACH - Report and Communicate
ENVIRONMENT
THIS YEAR PLAN DIFFERENCE LAST YEAR DIFFERENCE
GHG (tons) 12,500 12,000 4%...
(c) Hans van Wees - hans@van-wees.com
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Three Beards Lodge Year End Results
greenREACH - Communicate!
Internal:
Create reports and graphs that
demonstrate your initiatives in
action
Factor in $$ ...
greenREACH - Communicate
External:
 Add page or section to website that clearly
states your TBL initiatives and methods ...
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 feedb...
greenREACH - Engage and Instill
Greater community:
 Sponsor events with non-profits to
help community causes
 Enroll gu...
(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...
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.o...
Thank you!
Hans van Wees
VWC Hospitality
Burlington, Vermont
802-793-2289
hans@van-wees.com
(c) Hans van Wees - hans@van-w...
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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 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)

  1. 1. Planning for People, Planet and Profit Hans van Wees VWC Hospitality
  2. 2. Confessions of a Green Skeptic: Making the business case for sustainability in the hospitality industry
  3. 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. 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. 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. 6. Product Price Company Social and Environmental practices Availability Purchase (c) Hans van Wees - hans@van-wees.com
  7. 7. CORPORATE SOCIAL RESPONSIBILITY: EXPENSE? $$ OR: OPPORTUNITY? $$$$ (c) Hans van Wees - hans@van-wees.com
  8. 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. 9. Sustainable: buzzword or substance? (c) Hans van Wees - hans@van-wees.com
  10. 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. 11. Triple Bottom Line Profit Planet: Environment People: Social Responsibility (c) Hans van Wees - hans@van-wees.com
  12. 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. 13. Business Interests Stake holders Interests Sustainability Sweet Spot (c) Hans van Wees - hans@van-wees.com
  14. 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. 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. 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. 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. 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. 19. What can we learn from Vermont businesses?
  20. 20. Local businesses with clear and measurable sustainability plans Green Mountain Coffee Roasters Seventh Generation (c) Hans van Wees - hans@van-wees.com
  21. 21. What can we learn from leading hotel companies?
  22. 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. 23. What can we learn from the nation’s largest retailer?
  24. 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. 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. 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. 27. SUSTAINABILITY CATEGORIES Energy and Climate Material Efficiency Natural Resources People and Community (c) Hans van Wees - hans@van-wees.com
  28. 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. 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. 30. NATURAL RESOURCES Do you have sustainability purchasing guidelines? Third party certifications (c) Hans van Wees - hans@van-wees.com
  31. 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. 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. 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. 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. 35. (c) Hans van Wees - hans@van-wees.com Putting it to work
  36. 36. (c) Hans van Wees - hans@van-wees.com Three Beards Lodge Case Study
  37. 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. 38. Three Beards Lodge: meet the owners (c) Hans van Wees - hans@van-wees.com
  39. 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. 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. 41. Three Beards Lodge Brand Pillars (c) Hans van Wees - hans@van-wees.com
  42. 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. 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. 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. 45. greenREACH 5-step plan © greenREACH Assess & Identity Strategize and Set Goals Implement and Measure Report and Communicate Engage and Instill
  46. 46. Assess and Identify (c) Hans van Wees - hans@van-wees.com
  47. 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. 48. Strategize and Set Goals (c) Hans van Wees - hans@van-wees.com
  49. 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. 50. Implement and Measure (c) Hans van Wees - hans@van-wees.com
  51. 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. 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. 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. 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. 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. 56. Report and Communicate (c) Hans van Wees - hans@van-wees.com
  57. 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. 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. 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. 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. 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. 62. Engage and Instill (c) Hans van Wees - hans@van-wees.com
  63. 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. 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. 65. (c) Hans van Wees - hans@van-wees.com Parting thoughts
  66. 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. 67. It’s in your hands (c) Hans van Wees - hans@van-wees.com
  68. 68. (c) Hans van Wees - hans@van-wees.com
  69. 69. (c) Hans van Wees - hans@van-wees.com
  70. 70. (c) Hans van Wees - hans@van-wees.com
  71. 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. 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

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