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

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Introductions
Name
Position
Your personal/business environmental concern or
interest
How you rate yourself on sustainability awareness

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Workshop Overview
Who are you and what is your business?
How to reduce your utility costs and become a
more sustainable business

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Why should you become a more
sustainable business?
Cost
Environment
Increased market share
Government policy
Good business management

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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
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The Sustainability Challenge
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The Current Situation

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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

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Energy
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Energy
Victorian Commercial Energy
Use Commercial
Office Space

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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

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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
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Why become a sustainable business?
 Organisational
 Financial
 Environment
 Regulatory
 Marketing
 Public relations
 Government policy and programs
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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

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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
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Organisational opportunity

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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
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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
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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.
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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
http://www.accc.gov.au

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Marketing
“Concern about climate change and the environment
is leading to changes in the way people make
decisions about what they buy.”[1]
[1] http://www.bendigobank.com.au/generationgreen/green_businesses/docs/fact-sheets/consumer-preference-vecci-fact-sheet.pdf
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
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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.”
https://www.globalreporting.org/Pages/default.aspx
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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
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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.

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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)
www.cleanenergyfuture.gov.au/clean-energy-future/programs-and-initiatives/

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How to Become a Sustainable Business
Opportunities

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Typical Opportunities
Lighting management and
retrofit
Standby power
management
Heating and cooling
Water use awareness and
retrofit
Waste management
Green cleaning
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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.
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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
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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
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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
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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.

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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.
http://www.energyrating.gov.au/products-themes/standby-power/documents-and-publications/
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Water Heating – What’s Available?
Traditional Flat
Plate Solar System
Heat Pump
System
Gas
Accumulator
Instant
Gas System

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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)

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Waste Management Hierarchy
Avoid
Reduce
Source: Zero Waste
South Australia, 2008
Reuse
Recycle
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Waste
Waste auditing involves sorting waste to classify
Compostable
Recyclables
Landfill Waste

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Transport
Environmental Impacts of Transport Use
Kilograms of greenhouse gas per person per kilometre
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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
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Water
The first step
is to
understand
where we use
water.
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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
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Green Purchasing: Drivers &
Barriers
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Green Purchasing: Drivers &
Barriers

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Eco Buy
http://www.ecobuy.org.au/
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.
http://www.ecobuy.org.au/director/membership/assesment%20tool.cfm

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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?
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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
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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.
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How to Become a Sustainable Business
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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
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Environmental Assessment
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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
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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
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Implement
Definite actions and outcomes
Involve staff
Supply chain
Support
Communicate
Evaluate
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Communication
Clear communication within all areas of your business:
To customers
To staff
To suppliers
Sending a consistent sustainable message
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Marketing
Sustainable Marketing:
Utilise marketing
techniques which are
sustainable.
Advertise everything
“good” that you do.

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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.

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Step 3: Review
Surveys
Staff Appraisals
Business Strategy
Future Goals

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Operations Manual and Policies
Benefits:
Defines and documents procedures
Gives clear direction to staff
Enables processes to be duplicated creating
consistent behaviour and goals

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Training
Energy Management
Water Conservation
Waste management
Occupational Health Strategy
Transport
Chemicals & Cleaning

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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

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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.

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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

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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:
www.sbms.org.au

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Questions?
Thank you for attending
Visit
business.vic.gov.au/events
for more workshop information