FXA Sustainability_Module_FIN_101512

Fuji Xerox ProfitAccelerator®
Sustainability: Beyond Compliance
Professor Martin A. Blake DBA MBA BSc.
Strategic Advisor MOSS
Thursday 11 October, 2012
© 2010 Fuji Xerox Co., Ltd. All rights reserved.

A brief intro

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Dr. Martin Blake DBA MBA BSc.

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Today’s agenda

1.  Sustainability in a commercial world

2.  What you can do

3.  The link between Energy and Carbon

4.  WIFM

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Sustainability in a
commercial world

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Not about “hugging trees”

•  Compliance = mediocrity

•  This stuff matters

•  Sustainability = real business wins/upside

PEOPLE PROFIT PLANET

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What you can do

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The sleeping giant: energy
•  Approx 40% of global energy use is associated with buildings

•  Affecting change here is relatively easy – just need to look for it, but…

•  “If you can’t measure it, you can’t manage it”, Peter Drucker

Level 1
- AUDIT LEVELS -

A simple walk through

Walk through and a
Level 2 simple calculation

Firm assessment, metering/
Level 3 monitoring, analysis,
development of a detailed plan

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The big four
•  Lighting: 50% of your energy bill in lighting;
energy consumed by lighting
can be reduced by 82%

•  HVAC: Simple steps that you use at home,
can have great impact on your business

•  Water: By 2030 we will only have enough
reliable, accessible water for 60%
of the global population*; it will
be priced accordingly

•  Waste: Consider everything you throw away you
have already paid for.
Reduce – Recycle – Reuse.
2009. 2030 Water Resources Group. Charting Our Water Future: Economic frameworks to inform decision-making. © The Barilla Group, The Coca-Cola Company, The
International Finance Corporation, McKinsey & Company, et al

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How can you prioritise?

Quantitative Qualitative
Data: Data:
Electricity, gas, Pumps, Boiler,
fuel, LPG, HVAC,
etc. etc.

Cost
benefit analysis
of relevant
intervention
Marginal Abatement
Cost Curve

© 2011 – 2012 Blake Advisory Pte. Ltd.

How can you prioritise: the MACC
•  MACC = Marginal Abatement Cost Curve
•  Powerful tool for building a business case; enables clarity, based on hard facts
•  Too many choices, too important and too many risks
•  Can be the basis of “public disclosure”

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Europe’s 1st MACC

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The link between
Energy and Carbon

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Carbon footprint definition:
•  Carbon footprints are defined as "the total set of Greenhouse gases (GHGs)
emissions caused by an organisation, event, product or person”.

•  It is the sum of all your carbon emissions.

•  Emissions are usually categorised into scope 1, 2 or 3 emissions.

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Carbon emission typology: Scope 1, 2 and 3

CARBON REDUCTION INSTITUTE, 2011. WWW.NOCO2.COM.AU

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1, 2, 3… so what?
•  Your carbon footprint, is someone else’s Scope 3 and affects their business

•  Knowing how your footprint and having a plan will ultimately grow your business.

•  “If you can’t measure it, you can’t manage it”, Peter Drucker

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Carbon neutrality definition:
•  There is a misconception in the broad community that being carbon neutral
means no carbon is emitted.
•  Carbon neutral companies may produce carbon emissions, but they can actively
take steps to measure how much, and put procedures in place to reduce them.
•  They then offset the emissions that they can’t reduce by purchasing carbon credits.

1. Avoid and Reduce fuel and energy consumption

2. Replace existing fuels with zero/low equivalents PRIORITY

3. Offset and sequestrate residual emissions through
sustainable projects.

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Carbon neutrality: a path


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Steps for Carbon Neutrality – Carbon Reduction Institute

!

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WIFM?

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Case study #1: Adpost
•  Small print business 19 staff in Sydney
•  Reduced their energy use of almost 800kW/h per month =
$215 per month = $2,580 p.a.
•  Upgraded 151 x lights; improved light intensity (Lux levels) 30%
•  Payback period of 6.3 months in HVAC areas and 8.4
months in non-HVAC areas (~80% of the change over
subsidised by NSW ESS)

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Case study #2: Troedel Docucopy
Investigating ways to improve its business efficiency and
at the same time become a more sustainable company

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Case study #2: Energy consumption breakdown

Plug in Loads
2%
HVAC
13%

Office Lighting
6%

Printing Presses and
Computers Equipment
9% 50%
“This was a good exercise for us to realise all the cost
reductions that can be achieved by implementing
sustainable business practices. We also have the
opportunity to talk about these improvements with our
customers. Even though we are at the beginning of our
Production Lighting sustainability journey, our efforts are already
20% appreciated.”

David Shandler – Director, Troedel Docucopy

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Case study #2: Results
Summary of energy efficiency opportunities identified:
•  TOTAL Capital cost = $16,420.00
•  TOTAL Annual cost = $ 4,014.00
•  Payback (no. of years) = 4.10
•  Electricity savings = 22,300kW/h p.a.

However… potentially $0.00 and instant savings
Initial light upgrade estimate:
•  Capital cost = $ 8,379.00
•  TOTAL cost = $ 4,668.00 (after subsidy)
•  Savings p.a. = $ 2,567.00
•  Payback (no. of years) = 1.82

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Industry Best Practices – estimated results
•  ~50% reduction in electricity

•  ~95% reduction in water

•  ~94% reduction in waste

A study found that in projects where energy savings were the only benefits considered,
the average simple payback is 4.2 years.

However, by including full productivity benefits, the average simple payback
fell to 1.9 years.

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A little something to
help you on your way…

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Self-Assessment tool

1.  Click ‘Begin Questionnaire’
2.  Enter company information (optional)
3.  Answer 9 multiple choice questions relating to your business
sustainability practices
4.  Find out recommendations and results of your business and
others in industry

www.PA-sustainability.com

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FXA Sustainability_Module_FIN_101512

FXA Sustainability_Module_FIN_101512

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