Energy demand is on the rise worldwide. This is also happening in Australia leading to increased cost. Cost reductions and reduced energy use can make a busienss more competitive on a local and world wide scale.World energy outlookDr. FatihBirolIEA Chief EconomistParliament House, Canberra12 December 2011http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&sqi=2&ved=0CEkQFjAB&url=http%3A%2F%2Fwww.ret.gov.au%2Fenergy%2FDocuments%2Ffacts-stats-pubs%2F12DecCanberraWEO2011
Refer case study: Village Centre Bateman’s Bay Shopping Centre , workbook page 5Brief overview of water and it’s scarcityBy 2030 rainfall on the major capitals (except Hobart) could drop by 15 per cent. According to the report, Climate Change Projections for Australia, Perth could loose up to 20 per cent of rainfall. At the same time, rising temperatures will increase evaporation, further reducing water supplies in dams, rivers and reservoirs.
In today’s business environment: sustainability equals innovation but may not always equal profitability every time. However, smart companies must embrace sustainability or be left behind. Going “Green” means decreased costs and increased revenues from engaging eco-friendly business strategies.Companies becoming more environmentally, socially and economically responsible are driving innovations in sourcing, products, and services. Commitment to sustainability uncovers opportunities to explore, develop, collaborate, and innovate within business and industry.
As an organisation we need to position ourselves to reduce cost and take advantage of new markets. The idea of just paying the cost of rising energy prices or missing out on business because we can’t conform to a tender requirement for commitment to sustainability should be anathema to a well run focused business.
As an organisation you need to be ready to take advantage of the growth in the green market. In 8 years it has grown from 5 million dollars annually to 70 million dollars annually just in the local government sector.
The effects of your actions on the environment
As an example: As a large business I can choose to play business as usual under a carbon price and pay for the pollution I create and pass it on to my customers. Or IT CAN BE SEEN AS AN OPPORTUNITY TO IMPROVE THE BUSIENSS, REDUCE COST AND TAKE A COMPETITIVE ADVANTAGE
The green market is growing. You need to position your business to take advantage of this market. It’s a twofold advantage improved business, greater market share
The GRI has been accepted and used by many organisations who realise investors and customers will judge them on a number of criteria. Financial is one criteria but improving social and environmental performance and reporting may give you the edge in a close contest.“There are many drivers that support the move for organisations to buy green, including reputation, environmental risk exposure, and cost saving opportunities, as well as staff and stakeholder expectations”. http://www.ecobuy.org.au/uploads/documents/Green%20Purchasing%20Australia%20Report%202009.pdfOur customers, investors and partners have an expectation that we will run a financially, environmentally and socially responsible business. This is demonstrated through the rise in GRI reporting in the corporate sector.
A brief overview of some ploicies and programs that effect small business.
Victorian Energy Efficiency Target (VEET) scheme is a Victorian Government initiative promoted as the Energy Saver Incentive. Open to residents and business.Purpose of the VEET scheme:reduce greenhouse gas emissions, encourage the efficient use of electricity and gas, and;to encourage investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by energy consumers.Each activity generates a designated number of certificates with each certificate representing a tonne of greenhouse gas abated (VEEC).
Sustianability = Opportunity for most businesses
We pay a lot to heat and cool our businesses. Insulate to keep the heat and cool as long as possible.
If yu want to do a waste audit just separate into different bins and see what you are throwing out. Is there an opportunity to reduce this waste.
The simplest way to assess something is to look on the Eco Buy website
For some small businesses it is possible to offset all your carbon for under $100. It’s a worthwhile marketing exercise as well as a good thing to do.
An accurate tool to manage the costs of natural resourcesAn easy process that can engage staff in the operations of your businessAllows your plans to include realistic targetsAnnual occurrence with year long actionsThere are many sites on the web where you can record your energy use and measure your footprint. This provides a simple way to start the measurement process.
Programs that are available to businesses around victoria.
Reduce Your Utility Costs seminar
Your personal/business environmental concern or
How you rate yourself on sustainability awareness
Who are you and what is your business?
How to reduce your utility costs and become a
more sustainable business
Why should you become a more
Increased market share
Good business management
Positioning of companies and organisations:
Non-compliance companies - try to ignore environmental
Compliance companies - conform to regulations
Compliance-plus companies - that look beyond the existing
practices and norms through the development of environmental
management techniques such as EMSs
Commercial and environmental excellence companies - exploit the
opportunities of green consumerism to gain competitive advantage
Leading edge companies - have moved towards state-of-the-art
The Sustainability Challenge
The Current Situation
Emerging economies continue
to drive global energy demand
Growth in primary energy demand
Global energy demand increases by one-third from 2010 to 2035,
with China & India accounting for 50% of the growth
2010 2015 2020 2025 2030 2035
Other developing Asia
Rest of world
Victorian Commercial Energy
0.01% Fresh water in lakes and rivers
0.74% Underground water
2.25% Polar icecaps and glaciers (frozen)
97% Oceans and seas (salt water)
there is a
business and in
Why become a sustainable business?
Government policy and programs
Benefits to your bottom line
Benefits to your people
Benefits to the environment
What gets in the way?
- Knowledge barriers
- Cultural barriers
- Structural barriers
Attitudes and drivers
Adopting sustainability on an organisational level allows a
business to address:
• Rising energy prices and the implications of a price on carbon
• Greenhouse gas emission reporting
• Impact of climate change
• Water scarcity
• Government requirements and costs for the treatment of waste
• Power outages
• Building health standards
• Happiness and productivity of occupants/tenants
The push for a sustainable business needs to be supported by management at
the highest level if it is to be successful
Other Costs: Insurance, Future finance, Land space, Monitoring, Maintenance, Equipment,
Compliance, Legal Costs, Remediation, OH&S
Reduce energy use Reduced carbon emissions
Reduced water use Simpler adherence to restrictions
Reduced waste Reduced landfill
Reduced carbon emissions
Reduced chemical use Reduction in pollutants
Safer work environment
GreenPower Reduced carbon emissions
Increased availability of
There are rules which govern how you
run a business.
You can choose to just abide by the
rules or you can use them as a
platform to improve your business.
The ACCC Green Marketing and Trade
Practices Act (1974) Guide
Claims must be accurate
Claims should be able to be
Claims should be specific,
not unqualified and/or
Claims should be in plain
Claims should only be made
for a real benefit
Claims must not overstate a
Claims should make it clear
whether claimed benefits
refer to packaging or
Claims should consider the
whole product life cycle
Claims using endorsement
or certification should be
used with caution
Claims should not overstate
the level of scientific
“Concern about climate change and the environment
is leading to changes in the way people make
decisions about what they buy.”
Becoming a sustainable business allows you to
market your business to a range of customers
who are assessing businesses and products
based on their environmental performance as well
as their product or service
“A sustainable global economy should
combine long term profitability with social
justice and environmental care. This means
that, for organizations, sustainability covers
the key areas of economic, environmental,
social and governance performance.
GRI’s Sustainability Reporting Framework
enables all companies and organizations to
measure and report their sustainability
performance. By reporting transparently
and with accountability, organizations can
increase the trust that stakeholders have in
them, and in the global economy.”
Government Policy and Programs
The energy policy landscape is changing and businesses need
to utilise and adapt to these changes to ensure profitability
Clean Energy Future support programs
Victorian Energy Efficiency Target
VEET Prescribed Activities
There are ten broad categories of Prescribed Activities:
Water heating - decommissioning low efficiency water heating products and installing high efficiency water
heating products. This category also includes the installation of solar pre-heaters or solar retrofit kits.
Space heating and cooling - decommissioning low efficiency ducted heating products or central electric
resistance heaters and installing high efficiency ducted heating products; installing high efficiency ducted
heating products in new homes; installing high efficiency space heating products, decommissioning
refrigerative air conditioners and installing evaporative coolers, and decommissioning existing gas ductwork
and installing new gas ductwork.
Space conditioning - installing insulation, thermally efficient windows and weather sealing products. (Note
that it is not presently possible to create VEECs from installing ceiling insulation)
Lighting - decommissioning high energy lamps, including incandescent lamps, and installing low energy lamps.
Shower roses - decommissioning non-low flow shower roses and installing low flow shower roses.
Refrigerators/freezers - purchasing high efficiency refrigerators or freezers (refrigerator purchase) and,
destruction of pre-1996 refrigerators or freezers (refrigerator destruction).
Televisions - purchasing high efficiency televisions.
Clothes dryers - purchasing high efficiency electric clothes dryers or installing high efficiency gas clothes
Pool pumps - purchasing high efficiency pool pumps.
Standby Power Controllers - installing standby power controllers.
Fixed price from 1 July 2012 to 30 June 2015
Starts at $23 and rises by 2.5 per cent per annum
$24.15 in 2013-2014 and $25.40 in 2014-2015
Flexible price from 1 July 2015
Pollution cap will be set by the Government
Price ceiling and floor for three years
Tied to EU system at 2015
Ceiling: $20 above the expected international price (rising by 5 per
cent per annum)
How to Become a Sustainable Business
Lighting management and
Heating and cooling
Water use awareness and
Reducing Lighting Needs
Save by reducing lighting needs
Save by using energy saving globes
Place desks &
Switch off lights when not in use.
Install sensors in low use areas.
for extra light.
Most energy -> heat
Uses high amount of
Tubular and CFL
1/5th of energy of
incandescent, and much
Longer life incandescent
Low voltage is NOT low
Very efficient and very
Source: Australian Greenhouse Office
Energy Efficient Globes
20W 100W T8 36W T5 28W 50W 35W 10W 4W
cost $6.95 $1.50 $7.00 $38.45** $3.98 $4.46 $45.00 $29.00
life hours 10,000 1,000 7,500 10,000 1,500 5,000 50,000 50,000
10,000hrs* $38.00 $203.50 $90.60 $58.90 $149.82 $80.46 $19.00 $5.70
$44.95 $205.00 $97.60 $97.35 $153.80 $84.92 $64.00 $34.70
**Includes cost of retro fit kit.* Includes replacement bulbsCalculation based on 19 cents per kWh
Environmental Impact of Heaters
A temperature difference of just one degree can reduce energy consumption and
GHG production by up to 10%.
Optimal cooling efficiencies: 25-27 degrees.
Optimum heating efficiencies: 18-20 degrees.
Maintenance and cleaning; filters, fans, ducts, motors.
Average Standby Power Usage
The Australian Government announced in November 2006 that by 2012
all electrical appliances will need to meet the ‘one watt target’ before they
can be sold in Australia.
Water Heating – What’s Available?
Plate Solar System
Water Heating – Continued
Reducing Water Heating Needs
Insulate hot water
pipes and tank
Install a low flow
Usually long warranty = longer life
Avoid tank corrosion: choose stainless steel & copper tanks
Set the hot water tank at 60°C (every 5°C reduction saves between 3%
and 5% of your energy consumption)
Waste Management Hierarchy
Source: Zero Waste
South Australia, 2008
Environmental Impacts of Transport Use
Kilograms of greenhouse gas per person per kilometre
Bacteria require food, warmth
and moisture to stay alive
Health and safety does not
require the use of chemicals to
reduce and kill bacteria
Health of employees and
Benefits of Green Cleaning
Cleaning tasks become more
pleasant (no toxic smells and
No risk to your health, your staff
or your clients
Cost savings $$$
Feel-good factor, improves staff
Options and solutions to reduce the impact of chemical
use within your business and local community
The first step
where we use
Reduce, Repair, Retrofit, Reuse
In the home nearly half
the water savings will
come from more efficient
washing machines, about
25 per cent from showers
and 22 per cent from
Repair leaks: A slowly dripping tap can
waste 28 litres a day
Assess the water flow first, then
determine whether a device can
be fitted to reduce the flow. Reuse
A long term project
tap 15 22.5 30.13
tap 4 6 8.03
Green Purchasing: Drivers &
Green Purchasing: Drivers &
ECO-Buy is a not for profit that assists organisations in implementing sustainable
procurement and building a green supply chain. Based in Melbourne, ECO-Buy has
national reach with members and clients across Australia.
The ECO-Buy Sustainable
Tool helps you to measure
performance. It covers all
aspects of sustainable
procurement, from policy
and strategy to products
Green Purchasing Policy
Look for products that
Water saving possibilities
Minimum waste and
Minimum impact on habitat
Do I really need this?
Where does it come from?
Is there an equivalent local or
Is it seasonal produce?
Does the product come with
Check the labels and ask
What impact is it having?
Can it be re-used or does it
have recycled content?
Page 22 - 23
GreenPower is sourced from sun,
wind, water and biomass waste.
GreenPower is an accredited
Government program aimed at
increasing the prevalence of
renewable energy in Australia.
Currently only about eight per cent of
energy generated in Australia is from
GreenPower is a simple way to reduce your organisations carbon
emissions and invest in a cleaner future
Option Cost Positives Negatives
GreenPower $33 Contributes to Australia’s renewable
International permits are retired
Positive message to community
Expensive annual cost
Requires ongoing operating budget allocation
offset VCS or
Ability to choose specific projects
Premium offsets contain social and other
Cheap offsets may attract negative publicity
$35 Generates renewable energy in Australia Additionality not guaranteed
Requires second party auditing (time and cost)
Expensive annual cost
$30 Provide local energy efficiency
Supports Victorian energy efficiency
Not accredited under VCOS
No existing relationship with certified business
Works need to be completed and approved by the
Essential Services Commission
Carbon Offsets allow people and organisations to offset their carbon emissions by
investing in accredited carbon reduction schemes.
How to Become a Sustainable Business
What are the top
three costs to
your business in
Progress Long term
Communication Support available Target Result
A B C D E F G H I
Goal Setting the SMART Way
Reduce heater setting for the three months of winter
by 1°C to try to reduce energy bill and GHG
emissions by 10%
To reduce office time by ‘x’ per week
To create $x savings per week in cost of running
To reduce waste going to landfill by ‘x’ per annum
To training ‘x’ staff on ‘x’ per month
To hold 1:1 sessions with staff/meetings per month
“The future you see, is the future you get.” Robert Allen
Definite actions and outcomes
Page 26 - 27
Clear communication within all areas of your business:
Sending a consistent sustainable message
techniques which are
“good” that you do.
Review of Business Strategy
Review your strategy – Was your plan
followed and your objectives achieved?
Review management – How well was the plan
Realign – where required to meet objectives
Operations Manual and Policies
Defines and documents procedures
Gives clear direction to staff
Enables processes to be duplicated creating
consistent behaviour and goals
Occupational Health Strategy
Chemicals & Cleaning
Step 1: Celebrate
Step 2: Set goals
Step 3: Assign goal managers
Step 4: Review and alter
Step 5: Celebrate again
Plan for the future based on your
review of past performance around all
areas of your sustainable business
Last year we achieved an 11% reduction
in waste to landfill. This year we plan to
maintain reduce waste by a further 10%
through reduction in use and increased
Training and Programs
Business Sustainability Programs available to SMEs in Victoria. This list includes general sustainability support
programs, carbon management programs and services as well as certification and labelling programs.
Program Name Organisation Behind the Program Website
Small Facilities Management Moreland Energy Foundation http://www.mefl.com.au/what-we-do/professional-development.html
5 Star for SMEs Sustainability Victoria www.5starsustainability.vic.gov.au
GreenBizCheck GreenBizCheck (privately owned) www.greenbizcheck.com.au
Grow Me The Money VECCI www.growmethemoney.com.au
Green Globe Green Globe Asia Pacific (owned by EarthCheck Limited) www.greenglobe.com
Green Table Restaurant and Caterers Victoria www.greentable.com.au
EarthCheck Sustainable Tourism Cooperative Research Centre www.earthcheck.org
Waste Wise Metropolitan Regional Waste Management Group www.mwmg.vic.gov.au/business
Green Stamp Plus Government and industry partnership program www.greenstampplus.com.au
carboNZero Landcare Research New Zealand www.carbonzero.co.nz/
CEMARS Landcare Research New Zealand www.carbonzero.co.nz/cemars
EcoCertification Ecotourism Australia www.ecotourism.org.au/eco_certification.asp
No CO2 Carbon Reduction Institute http://www.noco2.com.au/web/page/certify
ISO 14001 ISO http://www.iso.org/iso/iso_14000_essentials
Sustainable Green Print Printing Industry Association http://printnet.com.au/sgp_lead_page.html
City Switch Green Office Program www.cityswitch.net.au/
Good Business Register St James Ethics Centre http://goodbusinessregister.com.au/
SmartBIZ National Centre for Sustainability http://tool.ncsustainability.com.au/
VEET Victorian Government www.veet.vic.gov.au
Zero Carbon Moreland MEFL http://www.mefl.com.au/get‐involved/zero‐carbonmoreland/business.html
Small Business Mentoring Service
Business mentors help you to identify a clear direction
for you and your business.
Business mentors can also advise you on how to:
conduct market research
price and/or cost your products or services
develop an effective marketing strategy
use other business management tools
To arrange a session with a business mentor go to:
Thank you for attending
for more workshop information