Be the first to like this
Even during an economic slowdown, innovators will rise to the occasion. A bakery in Victoria, Ferguson Plarre Bakehouses, is doing just that as my colleague Craig Beaver has recently uncovered in a recent article in Manufacturing Supply Chain Magazine.
Savings on carbon emissions by the company demonstrated that by some fairly straight forward engineering delivered landfill, gas and electricity emissions reductions of 92, 76 and 62%, respectively, along with water savings of 2.5Ml per annum. This led to an overall reduction of more than 5000 CO2e annually and tens of thousands of dollars in cost savings, a strong business improvement in itself.
But what caught my eye was the story around how the improved safety culture of the bakery was reducing bottom line costs, and well below its industry peers. The company has demonstrated a strong correlation between sustainability effort and performance, and its safety metrics. For example, during the transformation to a sustainability–focused business, turnover reduced from 10% to 2 % per annum, incidents reduced by 58% from 33 to 14 per annum, and near misses decreased from 29 to 21 per annum.
As Craig illustrates, aside from the impact of carbon emissions and energy savings, it’s worth taking a deeper look at the impact of their sustainable business practices on their health and safety performance.
As a simple exercise:
They employ 150 people.
Assume average salary of $75,000 per annum.
Total wages bill equals $11,250,000 per annum.
Industry average worker’s compensation premium for their sector is 3.8860% of payroll.
Therefore their worker’s compensation premium should have been $437,175 per annum.
The really interesting piece here from a HSE perspective, is concurrent with their sustainability program, Ferguson Plarre Bakehouses have achieved significant improvements in their safety performance, such that their worker’s compensation premium is 1.8394% of their payroll – almost half the industry average!
Therefore their estimated workers compensation premium is in fact $206,932 per annum.
This equates to an estimated saving of $230,243 per annum.
As Craig points out, this is on top of all the financial returns from their other sustainability initiatives documented in the article.
This company is no stranger to those of you working in sustainability. Ferguson Plarre Bakehouses clearly have the ingredients for success as a sustainable business, taking the principles of sustainable development and mixing them into their every day work.