Howard Nielsen presentation, basic functions of sustainability in business

1. Howard Nielsen
Carbon proofing your business Taking Care of Business:
Sustainable Transformation

2. Business questions on carbon and costs
• How will carbon pricing and regulatory policy affect our
costs?
• What will be the raw materials cost impacts?
• How will our suppliers’ costs increase?
• What carbon price related costs will we pass on to
customers?
• How much will we have to pay for energy and water?
• How will our risk profile affect our insurance?
• Will our funders/customers be happy with our carbon
exposure?
Adapted from Cole (EPA -December 2007) from Lasch & Wellington (HBR – March 2007)

3. Business questions on carbon and revenue
• How will carbon pricing affect our customers and their
perceptions and demand patterns?
• How will we work with customers and suppliers to
minimise the impact on our value chain?
• Can our business differentiate itself in the market by
adopting sustainable practices?
• How can we generate revenue from our low-carbon
status?
Adapted from Cole (EPA December 2007) from Lasch & Wellington (HBR March 2007)

4. The answer?
• Run an eco-efficient business
• Procure sustainably
• Be organised and plan for sustainability
HOW DO WE DO THIS?
© NACC 2012

5. Eco-efficiency?
Do a workplace scan – find out what to do – pick the easy bits first.
Example checklist - 9 questions out of 106 for energy and 300 for all eco-efficiency
Energy site survey checklist - Sustainable Business Cluster Project: NACC
For each item, tick the relevant column (yes/no/not applicable) then decide if you may consider doing something about it.
If so, tick the “Will do” column and note any action that needs to be taken in the workplace.
(Edited from the ecoBiz Toolbox checklist by NACC)
Question yes no NA Will What
do action
Lighting
1.Are lights always switched off when not in use?
2.Is natural lighting used whenever possible during the day?
3.Do trees or other obstructions prevent light from entering buildings during the day?
4.Are there separate lighting controls for sections of large areas? (e.g. using half a
room)
5.Are dimmer controls used where appropriate?
6.Are low energy lights used in all cases?
7.Is there too much lighting used for any area?
8.Are light fittings free of dust?
9.Are skylights clean?
© NACC 2012

6. Sustainable procurement?
NACC Checklist for making sustainable decisions about the procurement of goods and services
(Examples extracted from NACC’s full policy and checklist)
Stages and Key Questions Not Rate Rate Rate Rate Rate
applic 1 2 3 4 5
Stage 1: Establishing the need
Q1: Do we really need this product? na yes probably unsure unlikely no
Q2: Can we use the existing product more efficiently to na yes probably unsure unlikely no
avoid replacement right now?
Stage 2: Collecting information on the product
Q5: Can we access information about product options? na yes probably unsure unlikely no
Q6: Is the information reliable, using third party opinion? na yes probably unsure unlikely no
Stage 3: Rating the product
Q9: Is the product made from sustainable resources? na yes fair bit some not much no
Q14:Is the product reusable or recyclable at end of life? na yes fair bit some not much no
Q15:Where is the product made? na local regional state int’state o’seas
Q16:Is packaging used to transport / store the product? na none not much some fair bit a lot
Q17: Is the product produced in fair trade conditions? na yes unsure no
© NACC 2012

7. The three keys
The rest of
the world
Systems
People
© NACC 2012

8. People
Attitudes
Knowledge
People Skills
connecting and
collaborating for capability
© NACC 2012

9. Systems
Procuring
Operating
Systems Strategising
connecting and
collaborating for capability
© NACC 2012

10. The rest of the world
Perceptions
The rest Reality
of the
world Marketing
Respond to ‘requirements’, do good
and be known to do good
© NACC 2012

11. The three keys
© NACC 2012

12. Status
Certainty
Autonomy
Relatedness
Fairness
© NACC 2012

13. GRI - Global Reporting Initiative
Internationally recognised indicators for
sustainability
•Product responsibility
•Economic
•Environmental
•Human rights
•Labor practices and
decent work
•Society
© NACC 2012

14. • Social network style website
• Trend indicator for the
sustainability of organisations.
• Provides green tips
• Enables a Green Street Score
to be calculated and tracked
• Connects Sustainable
Business Precincts
www.greenstreet.net.au

15. Samford Green Streets process
Green Street Café the
focus for businesses
and the community to
connect
People talk
themselves into Business Cluster
doing things makes itself
known as a
Green St Precinct
Sustainable local
economy more likely to
be built

16. SPART Sustainability Perception and Reporting Tool
• Use own indicators - GRI as a basis
• Check in with all stakeholders
• Survey current performance and future
aspirations
• View graphs
• Have the conversations and set priorities
© NACC 2012

17. SPART - Stakeholder perception on one item
Comparing the perceptions of all stakeholders regarding
one question
© NACC 2012

18. SPART - Comparing combined perceptions
Comparing the perceptions of all stakeholders regarding
all questions
© NACC 2012