Reduce Your Utility Costs seminar


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Resources from Business Victoria's seminar about why sustainability equals smart business.

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  • 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 2011
  • 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”.[1] [1] 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

    2. 2. UNCLASSIFIED UNCLASSIFIED Introductions Name Position Your personal/business environmental concern or interest How you rate yourself on sustainability awareness
    3. 3. UNCLASSIFIED UNCLASSIFIED Workshop Overview Who are you and what is your business? How to reduce your utility costs and become a more sustainable business
    4. 4. UNCLASSIFIED UNCLASSIFIED Why should you become a more sustainable business? Cost Environment Increased market share Government policy Good business management
    5. 5. UNCLASSIFIED UNCLASSIFIED Positioning Positioning of companies and organisations: Non-compliance companies - try to ignore environmental regulations 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 environmental management Page 2
    6. 6. UNCLASSIFIED UNCLASSIFIED The Sustainability Challenge Page 3
    7. 7. UNCLASSIFIED UNCLASSIFIED The Current Situation
    8. 8. UNCLASSIFIED UNCLASSIFIED 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 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 2010 2015 2020 2025 2030 2035 Mtoe China India Other developing Asia Russia Middle East Rest of world OECD Energy
    10. 10. UNCLASSIFIED UNCLASSIFIED Energy Victorian Commercial Energy Use Commercial Office Space
    11. 11. UNCLASSIFIED UNCLASSIFIED Water Conservation 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) Melbourne’s Water Storage
    12. 12. UNCLASSIFIED UNCLASSIFIED Waste Management Our total amount of waste generated is still increasing even though there is a renewed effort to reduce waste in business and in the home Page 5
    13. 13. UNCLASSIFIED UNCLASSIFIED Why become a sustainable business?  Organisational  Financial  Environment  Regulatory  Marketing  Public relations  Government policy and programs Page 6
    14. 14. UNCLASSIFIED UNCLASSIFIED Sustainability motivators Benefits to your bottom line Benefits to your people Benefits to the environment Why not? What gets in the way? - Knowledge barriers - Cultural barriers - Structural barriers - Cost Attitudes and drivers
    15. 15. UNCLASSIFIED UNCLASSIFIED Organisational 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 Page 6
    16. 16. UNCLASSIFIED UNCLASSIFIED Organisational opportunity
    17. 17. UNCLASSIFIED UNCLASSIFIED Financial Water Labour Energy Raw materials Product & Profit •Lost Product •Lost Opportunity •Reputation Risk + •Disposal Costs TradeWaste SolidWaste Airemissions/GHG Other Costs: Insurance, Future finance, Land space, Monitoring, Maintenance, Equipment, Compliance, Legal Costs, Remediation, OH&S Page 6
    18. 18. UNCLASSIFIED UNCLASSIFIED Environmental Action Benefit Reduce energy use Reduced carbon emissions Cleaner air Reduced cost Reduced water use Simpler adherence to restrictions Reduced cost Reduced waste Reduced landfill Reduced carbon emissions Reduced cost Reduced chemical use Reduction in pollutants Safer work environment Reduced cost GreenPower Reduced carbon emissions Increased availability of renewable energy Page 6
    19. 19. UNCLASSIFIED UNCLASSIFIED Regulatory 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. Page 7
    20. 20. UNCLASSIFIED UNCLASSIFIED The ACCC Green Marketing and Trade Practices Act (1974) Guide Claims must be accurate Claims should be able to be substantiated Claims should be specific, not unqualified and/or general statements Claims should be in plain language Claims should only be made for a real benefit Claims must not overstate a benefit Claims should make it clear whether claimed benefits refer to packaging or content 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 acceptance
    21. 21. UNCLASSIFIED UNCLASSIFIED Marketing “Concern about climate change and the environment is leading to changes in the way people make decisions about what they buy.”[1] [1] 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 Page 7
    22. 22. UNCLASSIFIED UNCLASSIFIED Public Relations “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.” Page 7
    23. 23. UNCLASSIFIED UNCLASSIFIED Government Policy and Programs The energy policy landscape is changing and businesses need to utilise and adapt to these changes to ensure profitability and competitiveness. Carbon price Clean Energy Future support programs Victorian Energy Efficiency Target General policy Page 8
    24. 24. UNCLASSIFIED UNCLASSIFIED 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 dryers.  Pool pumps - purchasing high efficiency pool pumps.  Standby Power Controllers - installing standby power controllers.
    25. 25. UNCLASSIFIED UNCLASSIFIED Carbon Price: 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)
    26. 26. UNCLASSIFIED UNCLASSIFIED How to Become a Sustainable Business Opportunities
    27. 27. UNCLASSIFIED UNCLASSIFIED Typical Opportunities Lighting management and retrofit Standby power management Heating and cooling Water use awareness and retrofit Waste management Green cleaning Page 9
    28. 28. UNCLASSIFIED UNCLASSIFIED Reducing Lighting Needs Save by reducing lighting needs Save by using energy saving globes Place desks & work areas near windows. Switch off lights when not in use. Install sensors in low use areas. Clean windows for extra light. Page 9-10
    29. 29. UNCLASSIFIED UNCLASSIFIED Device Advice Incandescent Most energy -> heat Uses high amount of energy Fluorescent Tubular and CFL 1/5th of energy of incandescent, and much longer life Halogen Longer life incandescent Low voltage is NOT low energy use LED Emerging technology Very efficient and very long life Source: Australian Greenhouse Office Page 9
    30. 30. UNCLASSIFIED UNCLASSIFIED Energy Efficient Globes 20W 100W T8 36W T5 28W 50W 35W 10W 4W CFL Incandescent Fluorescent Tube Fluorescent Tube Halogen Halogen IRC LED (dimmable) LED Purchase cost $6.95 $1.50 $7.00 $38.45** $3.98 $4.46 $45.00 $29.00 Average life hours 10,000 1,000 7,500 10,000 1,500 5,000 50,000 50,000 Running cost over 10,000hrs* $38.00 $203.50 $90.60 $58.90 $149.82 $80.46 $19.00 $5.70 TOTAL $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 Page 10
    31. 31. UNCLASSIFIED UNCLASSIFIED Heating and Cooling Insulation Types: Bulk Reflective Priorities: Stop drafts Insulate Ceiling Walls Floor Landscaping External shading Insulate ceiling and walls Sealing windows & reflective glazing Page 11
    32. 32. UNCLASSIFIED UNCLASSIFIED Environmental Impact of Heaters Device Advice 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.
    33. 33. UNCLASSIFIED UNCLASSIFIED 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. Page 13
    34. 34. UNCLASSIFIED UNCLASSIFIED Water Heating – What’s Available? Traditional Flat Plate Solar System Heat Pump System Gas Accumulator Instant Gas System
    35. 35. UNCLASSIFIED UNCLASSIFIED Water Heating – Continued Reducing Water Heating Needs Wash in cold water Repair dripping taps/leaking appliances Insulate hot water pipes and tank Install a low flow showerhead Device Advice 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)
    36. 36. UNCLASSIFIED UNCLASSIFIED Waste Management Hierarchy Avoid Reduce Source: Zero Waste South Australia, 2008 Reuse Recycle Page 15
    37. 37. UNCLASSIFIED UNCLASSIFIED Waste Waste auditing involves sorting waste to classify Compostable Recyclables Landfill Waste
    38. 38. UNCLASSIFIED UNCLASSIFIED Transport Environmental Impacts of Transport Use Kilograms of greenhouse gas per person per kilometre Page 17
    39. 39. UNCLASSIFIED UNCLASSIFIED Green Cleaning Key Principles Bacteria require food, warmth and moisture to stay alive Health and safety does not require the use of chemicals to reduce and kill bacteria Hidden Costs Health of employees and customers Purchase cost Environmental harm Benefits of Green Cleaning Cleaning tasks become more pleasant (no toxic smells and headaches) No risk to your health, your staff or your clients Cost savings $$$ Feel-good factor, improves staff morale Options and solutions to reduce the impact of chemical use within your business and local community Page 19
    40. 40. UNCLASSIFIED UNCLASSIFIED Water The first step is to understand where we use water. Page 20
    41. 41. UNCLASSIFIED UNCLASSIFIED Reduce, Repair, Retrofit, Reuse Reduce 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 toilets. Repair Repair leaks: A slowly dripping tap can waste 28 litres a day Retrofit Assess the water flow first, then determine whether a device can be fitted to reduce the flow. Reuse A long term project Device Flow (L/min) Annual Use (kL) Annual Cost $ tap 15 22.5 30.13 tap 4 6 8.03 Page 21
    42. 42. UNCLASSIFIED UNCLASSIFIED Green Purchasing: Drivers & Barriers Page 22
    43. 43. UNCLASSIFIED UNCLASSIFIED Green Purchasing: Drivers & Barriers
    44. 44. UNCLASSIFIED UNCLASSIFIED Eco Buy 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 Procurement Assessment Tool helps you to measure your organisation’s sustainable procurement performance. It covers all aspects of sustainable procurement, from policy and strategy to products and suppliers.
    45. 45. UNCLASSIFIED UNCLASSIFIED Green Purchasing Policy Look for products that have: Recycled content Water saving possibilities Energy efficiencies Low toxicity Minimum waste and packaging Minimum impact on habitat and soil When purchasing, consider: Do I really need this? Where does it come from? Is there an equivalent local or Australian product? Is it seasonal produce? Does the product come with excess packaging? Check the labels and ask questions. What impact is it having? Can it be re-used or does it have recycled content? Page 22 - 23
    46. 46. UNCLASSIFIED UNCLASSIFIED Green Power 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. GreenPower is a simple way to reduce your organisations carbon emissions and invest in a cleaner future Page 23
    47. 47. UNCLASSIFIED UNCLASSIFIED Option Cost Positives Negatives GreenPower $33  Contributes to Australia’s renewable energy generation  International permits are retired  Positive message to community  Expensive annual cost  Requires ongoing operating budget allocation International offset VCS or Gold Standard Upward $2.50  Recognised/accredited offset  Ability to choose specific projects  Premium offsets contain social and other environmental benefits  Cheap offsets may attract negative publicity Renewable Energy Certificate $35  Generates renewable energy in Australia  Additionality not guaranteed  Requires second party auditing (time and cost)  Expensive annual cost Victorian Energy Efficiency Certificate $30  Provide local energy efficiency  Supports Victorian energy efficiency initiative  Not accredited under VCOS  No existing relationship with certified business  Fluctuating costs  Works need to be completed and approved by the Essential Services Commission Carbon Offsets Carbon Offsets allow people and organisations to offset their carbon emissions by investing in accredited carbon reduction schemes. Page 24
    48. 48. UNCLASSIFIED UNCLASSIFIED How to Become a Sustainable Business Page 24
    49. 49. UNCLASSIFIED UNCLASSIFIED What are the top three costs to your business in each category What is the cost? Short term actions Progress Long term actions Progress Information needed Communication Support available Target Result A B C D E F G H I Energy 1 2 3 Water 1 2 3 Waste 1 2 3 Transport 1 2 3 Chemicals 1 2 3 Barriers Page 29
    50. 50. UNCLASSIFIED UNCLASSIFIED Environmental Assessment Page 25
    51. 51. UNCLASSIFIED UNCLASSIFIED Goal Setting the SMART Way Example goal: Reduce heater setting for the three months of winter by 1°C to try to reduce energy bill and GHG emissions by 10% Specific Measurable Achievable Relevant Time-based Page 25
    52. 52. UNCLASSIFIED UNCLASSIFIED Goal Setting To reduce office time by ‘x’ per week To create $x savings per week in cost of running your business 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 Page 25
    53. 53. UNCLASSIFIED UNCLASSIFIED Implement Definite actions and outcomes Involve staff Supply chain Support Communicate Evaluate Page 26 - 27
    54. 54. UNCLASSIFIED UNCLASSIFIED Communication Clear communication within all areas of your business: To customers To staff To suppliers Sending a consistent sustainable message Page 27
    55. 55. UNCLASSIFIED UNCLASSIFIED Marketing Sustainable Marketing: Utilise marketing techniques which are sustainable. Advertise everything “good” that you do.
    56. 56. UNCLASSIFIED UNCLASSIFIED Review of Business Strategy Review your strategy – Was your plan followed and your objectives achieved? Review management – How well was the plan managed? Realign – where required to meet objectives and goals.
    57. 57. UNCLASSIFIED UNCLASSIFIED Step 3: Review Surveys Staff Appraisals Business Strategy Future Goals
    58. 58. UNCLASSIFIED UNCLASSIFIED Operations Manual and Policies Benefits: Defines and documents procedures Gives clear direction to staff Enables processes to be duplicated creating consistent behaviour and goals
    59. 59. UNCLASSIFIED UNCLASSIFIED Training Energy Management Water Conservation Waste management Occupational Health Strategy Transport Chemicals & Cleaning
    60. 60. UNCLASSIFIED UNCLASSIFIED Moving Forward Step 1: Celebrate Step 2: Set goals Step 3: Assign goal managers Step 4: Review and alter Step 5: Celebrate again Specific Measurable Achievable Relevant Time-based
    61. 61. UNCLASSIFIED UNCLASSIFIED Future Goals Plan for the future based on your review of past performance around all areas of your sustainable business management plan. Example Goal: 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 recycling.
    62. 62. UNCLASSIFIED UNCLASSIFIED 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 5 Star for SMEs Sustainability Victoria GreenBizCheck GreenBizCheck (privately owned) Grow Me The Money VECCI Green Globe Green Globe Asia Pacific (owned by EarthCheck Limited) Green Table Restaurant and Caterers Victoria EarthCheck Sustainable Tourism Cooperative Research Centre Waste Wise Metropolitan Regional Waste Management Group Green Stamp Plus Government and industry partnership program carboNZero Landcare Research New Zealand CEMARS Landcare Research New Zealand EcoCertification Ecotourism Australia No CO2 Carbon Reduction Institute ISO 14001 ISO Sustainable Green Print Printing Industry Association City Switch Green Office Program Good Business Register St James Ethics Centre SmartBIZ National Centre for Sustainability VEET Victorian Government Zero Carbon Moreland MEFL‐involved/zero‐carbonmoreland/business.html
    63. 63. UNCLASSIFIED UNCLASSIFIED 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:
    64. 64. UNCLASSIFIED UNCLASSIFIED Questions? Thank you for attending Visit for more workshop information