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CASE STUDIES

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Title: CASE STUDIES


1
(No Transcript)
2
INTERFACE CARPETS
  • Source Natural Capitalism The Next Industrial
    Revolution
  • (Hawken et. al., 1999)

3
Interface Carpets
  • Interface carpets aims to be the worlds first
    sustainable corporation
  • Traditionally, old-fashioned broadloom carpet is
    replaced every decade because it develops worn
    spots, causing major disruption to an office
  • Over 5 billion pounds of the carpet now in
    landfills has Interfaces name on it
  • Chairman Ray Anderson realised that not throwing
    more energy and money into holes in the ground
    represented a major business opportunity
  • Interface launched a transition from selling
    carpet to leasing floor-covering services

4
Selling services not products
  • Interface owns the carpet and leases it to
    customers
  • Interface is responsible for monthly inspections
    and maintenance if required
  • Benefits
  • Carpet tiles used so only worn parts are replaced
    usually 10-20 of area shows 80-90 of the wear
  • Increases net employment (less manufacturing but
    more upkeep)
  • Eliminates disruption, since worn tiles are
    seldom under furniture. Because the carpet is
    laid in the form of tiles, glue fumes are also
    significantly reduced or possibly eliminated. The
    customers former capital investment becomes a
    lease expense
  • Cost savings to customers

5
Creating new products
  • Interface has developed a new polymeric material
    to create a new kind of floor-covering service,
    called Solenium, that can be completely
    remanufactured back into itself. All worn
    materials can and will be completely separated
    into their components, fibre and backing, and
    each component remade into an identical fresh
    product.
  • Benefits
  • production process is simpler
  • less wasteful manufacturing upper surface
    produces 99.7 less waste than normal carpet, and
    the other 0.3 gets reused.
  • provides better service - highly stain-resistant,
    does not mildew, easily cleaned with water, 35
    less materials-intensive, four times as durable
    (using sevenfold less massflow per unit of
    service) and is acoustically and aesthetically
    improved
  • suited to renewable feedstocks
  • manufacturing cost substantially reduced and
    margin increased

6
Overall benefits of new approach
  • Overall reduction in the net flow of materials
    and embodied energy by 97
  • If a satisfactory quality of service isnt being
    delivered, the problem can be addressed directly
    and immediately
  • Service cost can be fully deducted from taxable
    business income, just like any other normal
    operating expense
  • Products value doesnt have to be capitalised,
    as capital cost is entirely off balance sheet and
    onto that of the firm that leases it giving
    manufacturing firm an incentive to minimise
    capital requirements per unit of service flow

7
Other points
  • Higher performance and competitive advantage did
    not evolve through incremental improvement, but
    rather from a deliberate effort to redesign the
    flooring business from scratch so as to close all
    loops, take nothing away from the earths crust,
    and add nothing harmful to the biosphere
  • Future goal all fossil fuel use to be
    ultimately eliminated

8
SYDNEY WATER
  • Source Sydney Waters website

9
Sydney Water
  • Manages the water supply and sewage
    infrastructure for the greater Sydney region,
    servicing four million customers in Sydney, the
    Illawarra and the Blue Mountains
  • Delivers over 1.6 billion litres of water and
    collects and treats more than 1.3 billion litres
    of wastewater daily
  • Is involved in activities such as stormwater
    management and land management
  • Has 3,630 staff
  • Has an annual capital works program of around
    500 million
  • Manages 3 billion of assets, including 10 water
    filtration plants, 30 sewage treatment plants and
    more than 40,000 kilometres of pipes
  • Owns 3,155 hectares of land, of which some has
    undisturbed vegetation

10
Sydney Water and Sustainability
  • Sydney Water committed to sustainable operations
  • Develops an annual sustainability report.
    (Towards Sustainability Report 2002 can be
    viewed at http//www.sydneywater.com.au/html/envir
    onment/tsr/tsrpdfs.html
  • Has developed a comprehensive educational package
    for employees to build their understanding of
    sustainability and Sydney Water initiatives in
    this regard, including on-line and face-to-face
    components

11
Sydney Water and the Environment
  • Initiatives
  • Programs to reduce water wastage, including
    periodic upgrading of sewage treatment systems
    and other infrastructure
  • Program to fix leaks in water system using
    acoustic devices already saving 22 million
    litres per day, estimated will be 50 million
    litres a day when program completed

12
Sydney Water and the Environment
(continued)
  • Initiatives
  • Influencing demand through water pricing.
    Although Sydney has experienced significant and
    steady population growth, water consumption has
    been relatively stable, particularly due to the
    introduction of usage-based pricing which
    provides a direct incentive to conserve water
  • Productive wastewater reuse schemes. In one
    project in south-western Sydney, dry weather
    flows are treated and used for agricultural and
    tree-farming activities, reducing nutrient,
    sediment and organic material discharged into the
    sensitive Hawkesbury-Nepean River system.
    Irrigation demands are now starting to outweigh
    availability of treated wastewater

13
Sydney Water and the Environment
(continued)
  • Initiatives
  • Distribution of ceramic mugs to head office staff
    and a cost differential for drinks served in foam
    cups to reduce use of foam cups in the cafeteria
    resulting in a saving of 140,000 cups, and
    11,000, a year
  • Program to encourage rainwater tanks in urban
    areas, such as provision of practical information
    such as sizing of tanks and efficient use of
    water. Backflow prevention devices have been
    provided free to customers purchasing tanks since
    June 2002. A model home including a rainwater
    tank has been exhibited at trade shows and home
    display centres, and work with other government
    agencies has been undertaken to simplify policies
    and procedures

14
Sydney Water and social issues
  • Initiatives
  • Provision of flexible work options to maximise
    retention of skilled staff and reduce staff
    absenteeism eg. two long-day childcare centres in
    Sydney providing affordable care for children of
    employees and the community to address low levels
    of female participation in the Sydney Water
    workforce
  • A Give as you earn scheme - staff can
    automatically donate money from their pay to
    tax-deductible charities in Australia. Sydney
    Water matches each new and additional donation
    above existing ones dollar for dollar. More than
    31,583 was donated between July and December
    2001, matched by Sydney Water

15
Sydney Water and social issues
(continued)
  • Initiatives
  • A Youth Employment Strategy to address the fact
    that only 4.5 of employees were aged 15-24. This
    strategy includes work experience placements,
    sponsorship, scholarships, graduate and
    undergraduate programs, an apprenticeship program
    and disability traineeships

16
Sydney Water and social issues
(continued)
  • Initiatives
  • A performance management system to foster staff
    development by increasing employee knowledge,
    skills and experience and e-learning and
    leadership training for senior managers
  • A program to improve the health and safety
    culture through a range of programs for employees
    and selected topics. Training includes manual
    handling, construction training, ergonomics and
    risk management. The Be Safe, Mate program
    encourages employees to take responsibility not
    only for their own personal safety but also that
    of their colleagues

17
Sydney Water and social issues
(continued)
  • Sydney Water engages the community in projects
    such as the rehabilitation of Smalls Creek, which
    eventually leads to the Hawkesbury River. The
    creek has Aboriginal sites, a remnant vegetation
    community and several endangered species of
    flora. The local community participated in early
    planning workshops to identify and prioritise
    issues, and later in five full-day working bees
    to remove weeds and undertake bush regeneration
    and revegetation. The community are now taking an
    active role in the management of this area
  • Sydney Water runs a Speakers Program where staff
    present about Sydney Waters activities and water
    conservation initiatives to interested community
    groups

18
Insurance Australia Group (IAG)
  • Source Corporate Sustainability an Investor
    Perspective. The Mays Report (Mays, 2003)

19
Sustainability and the insurance industry
  • The insurance industry has an affinity for
    sustainability because a range of environmental,
    social and economic factors influence its core
    business challenge of calculating risk and
    setting appropriate premiums. They also influence
    its core purpose of helping people to manage and
    reduce risk
  • Weather-related risks, influenced by climate
    change, are major drivers of claims costs for the
    insurance industry in big-ticket areas like home
    and motor cover
  • Natural disasters like hailstorms, floods,
    cyclones and bushfires represent a major driver
    of losses both insured and non-insured for
    the community and the economy. An inability to
    underwrite such risks would not only have
    ramifications for individual insurance companies,
    but global economies

20
IAG Hazard table
Source Mills et al, (2001) page 72, prepared
for IAG
21
Insurance in Australia
  • Australia has enormous potential to suffer from
    impending climate change. More than 80 of its
    population resides within 50 km of the coast with
    increasing concentrations in regions already
    vulnerable to weather hazards (CSIRO, 2002)
  • In addition, 1,500 billion of Australias wealth
    is locked up in homes, commercial buildings,
    ports and other physical assets (ABS, 2002). This
    is equivalent to nine times the current national
    budget or twice our gross domestic product
  • The insurance industry currently underwrites the
    risk to the bulk of these assets from weather
    events but climate change threatens its ability
    to do so as effectively in the future

22
IAG
  • Insurance Australia Group (IAG) is Australias
    leading general insurer
  • IAG provides personal, compulsory third party
    (CTP) and commercial insurances as well as
    retirement solutions in Australia and New
    Zealand. The Group comprises a number of brands,
    including NRMA insurance, SGIO and CGU Insurance
  • IAG serves a significant portion of the
    Australian and New Zealand market with about 11
    million policies in place

23
IAG
(continued)
  • IAG has taken the first steps to incorporate
    sustainability into its business model
  • At the organisational level, IAG has implemented
    staff development programs and increased
    eco-efficiencies
  • At the product level, it has assessed how to
    incorporate sustainability principles into
    products
  • IAG is further enhancing brand and reputation
    through participating in community programs and
    focusing on its corporate climate change position
    and research

24
IAG
(continued)
  • A key business objective is to reduce the size,
    frequency and ultimate cost of claims
  • Being more proactive in areas such as preventing
    workplace accidents, mitigating against climate
    change and promoting safer communities can
    translate directly into a lower claims burden
  • As an insurance group, our business is to pay
    claims. But to fulfil this role we must stand for
    more. We need to be able to help our customers
    and the community beyond just paying claims. To
    do this, we need to share our experience and
    knowledge with the community to help manage and
    reduce risks. We also need to build a culture
    which allows our people to develop and work to
    the best of their abilities. We must ensure that
    our business is sustainable and can deliver
    ongoing value to our shareholders an IAG
    perspective

25
Priority Areas
  • Three priority areas that align IAGs business
    interests with societal interests
  • safety pursuing a strong safety culture within
    IAGs own workplace to anchor its role as
    Australias leading provider of workers
    compensation services
  • environment improving environmental performance
    starting with the in-house basics such as
    recycling, energy efficiency, less paper use and
    reduced travel, but extending to the entire value
    chain through supplier and customer relationships
  • community supporting communities in an effort
    to reduce risk, including being safer and
    cleaner, thus reducing the potential for claims

26
Potential benefits of initiatives
  • These initiatives
  • support premium pricing (through enhancing brand
    and reputation) and growth through increasing
    volumes and improving product mix
  • reduce claim frequency and size, and cost of
    claims processing
  • improve employee culture and therefore
    productivity as well as the ability to recruit
    and retain the best people
  • decrease operating expenses e.g. lower energy
    costs, reduced workers compensation costs

27
Practical examples
  • IAG has become a signatory to the United Nations
    Environment Programmes Finance Initiative (UNEP
    FI), which requires incorporation of
    environmental considerations into day-to-day
    activities
  • IAG conducted extensive research into its
    sustainability baseline including workplace
    safety and environmental performance
  • IAG developed and implemented corporate safety
    and environmental targets that focus on reducing
    injuries and accidents, and also cutting its
    paper, fuel and energy use, and minimising carbon
    dioxide (CO2) emissions. For the 2003/04
    financial year targets included reductions of
  • energy and paper consumption by 15
  • fuel (tool-of-trade cars) and air travel
    kilometres by 5
  • carbon dioxide emissions by 15

28
Practical examples
  • Customer and consumer-focussed initiatives
    include the web-based Green Safe Car Profiler, a
    user-friendly tool on the Internet that allows
    easy comparison of new vehicle models in terms of
    their safety and environment attributes including
    fuel efficiency
  • Other current initiatives include working with a
    network of Preferred Smash Repairers to improve
    their overall business performance, including
    environment and OHS occupational health
    safety modules, with the ultimate combined
    benefit of improved service to IAGs customers,
    better outcomes for the wider community and
    business gains as well
  • IAG also has begun to sustainability road-test
    a number of initiatives and ideas by engaging a
    broad range of external stakeholders from
    business, government and civil society, including
    organisations covering environment, consumer
    advocacy, social welfare and other fields that
    attract significant community support

29
Going forwards...
  • Reducing the extent of possible climate change
    through policy strategies and innovative product
    offerings, e.g. products or policies that aim to
    reduce car emissions by offering cheaper
    insurance premiums for lower usage and support
    for the public transport system. Benefits
    include
  • improved air quality
  • decreased road congestion (which would reduce
    aggressive driving, a factor that is responsible
    for half of all accidents in the USA)

30
Going forwards...
(continued)
  • Assess differentiating factors, such as
    relationship between distances travelled in an
    insured vehicle and average number and severity
    of claims, to allow insurers to factor the extent
    of vehicle usage (with environmental
    consequences) into insurance premiums. Benefits
    include
  • better costing of premiums
  • encouragement for people to use public transport,
    with a reduced contribution to global warming and
    lessened long-term variability of climate change

31
Going forwards...
(continued)
  • For the same reason, IAG are also considering the
    possibility of factoring the fuel efficiency of
    vehicles into premium calculations. Likewise
    eco-efficient housing lessens the impact of
    climate change. Better urban design has the
    benefits of
  • lower theft and burglary rates
  • reduced vehicle usage lower accident rates
  • lower greenhouse emissions

32
IAG and climate change
  • Weather and climate are core business for the
    insurance industry. At its most basic, insurers
    underwrite weather-related catastrophes by
    calculating, pricing and spreading the risk and
    then meeting claims when they arise. A changing,
    less predictable climate has the potential to
    reduce its capacity to calculate, to price and to
    spread this weather related risk
  • IAG believes that climate change is a real threat
    based on the assessment of the science presented
    by the Intergovernmental Panel on Climate Change,
    its own scientific modelling work and
    re-insurance sector research

33
IAG and climate change
(continued)
  • Currently IAG is developing a climate strategy
    which includes
  • investing in world-leading research to learn more
    about the problem and its expected impact, using
    international experts to look at specific
    Australian scenarios such as Sydneys hailstorms
    and northern Australias cyclones
  • considering possible adaptation strategies to
    minimise vulnerability, for example comparing the
    merits of rival roofing and other building
    materials
  • exploring and adopting strategies that minimise
    IAGs and its customers contribution to climate
    change through innovative products and processes,
    and new business models that contribute towards
    reduced greenhouse gas emissions, and
  • establishing a clear public advocacy positioning
    and a call to action to business, governments and
    community groups to work together to find
    sustainable solutions to the challenges

34
Assessing business value creation
  • Business value created as a result of
    sustainability initiatives should be rigorously
    measured and financially evaluated wherever
    possible
  • As well as providing accountability and
    incentive, this will allow the company to
    understand the long-term connections between its
    sustainability-related initiatives and business
    opportunity and growth

35
Cairns Crocodile Farm and Mulgrave Central Mill
  • Source Queensland Environment Protection Agency
    website

36
Cairns Crocodile Farm and Mulgrave Central Mill
  • Symbiotic relationship between Cairns Crocodile
    Farm and Mulgrave Central Mill illustrates how
    one businesss sustainability problems can be
    anothers solution
  • Demonstrates how businesses working together can
    create solutions that have both environmental and
    economic benefits
  • Cairns Crocodile Farm has specialised in
    crocodile meat and leather products for the
    export market over the last 12 years, and has
    some 15,000 crocodiles
  • Ability to expand limited by the need to provide
    more warm water for crocodile ponds during colder
    winter months. Warm water during winter increases
    the appetite and growth rates of crocodiles,
    significantly increasing farm production rates
    and profits

37
Cairns Crocodile Farm and Mulgrave Central Mill
(continued)
  • Rather than the conventional solution of
    investing in a new boiler, the owners asked to
    use the warm water produced by the sugar mill ten
    kilometres away
  • This was beneficial to the Mill as they
    previously had to pump water around a large
    cooling tower before discharging into the
    Mulgrave River, where there is a risk of thermal
    pollution. The Mill also receive an additional
    source of income from payment to supply the
    water, in addition to energy cost savings

38
Cairns Crocodile Farm and Mulgrave Central Mill
(continued)
  • The water is now pumped to the crocodile farm and
    cools naturally as it runs through the crocodile
    ponds and then almost 6 kilometres through the
    farms wetland treatment system prior to
    discharge into an estuarine system
  • A third party has benefited from this arrangement
    as with the increase of the crocodiles
    appetites, there has been a 30 increase in
    demand for poultry by-products from the local
    abattoir, Bartter Enterprises Pty Ltd, which has
    significantly reduced their waste load

39
Benefits
  • In the first month of piping in warm water from
    the Mill, the benefits far surpassed the farms
    expectations. The crocodiles required more feed
    than ever before, indicating a rapid growth rate
  • Economic, environmental and social benefits of
    the project have included
  • estimated direct reduction of approximately 1,500
    tonnes of CO2 emissions annually from Cairns
    Crocodile Farm by reducing the need to use the
    boiler
  • reduction of bore water usage by six million
    litres each week at the Cairns Crocodile Farm
  • reduction in poultry abattoir waste by 260,000 kg
    annually
  • creation of 13-16 new jobs over the next three
    years in these industries and in the indigenous
    community, who collect crocodile eggs for the farm

40
ING Headquarters
  • Source Green Development Integrating Ecology
    and Real Estate (Wilson et. al., 1998) and
    Natural Capitalism The Next Industrial
    Revolution (Hawken et. al, 1999)

41
ING Headquarters
  • The International Netherlands Group (ING) bank
    headquarters in Amsterdam demonstrates the
    possibilities of good design
  • When the bank outgrew its original headquarters,
    the board of directors decided to create a new
    image for the bank
  • Their vision for the building it would be
    organic, would integrate art, natural
    materials, sunlight, green plants, energy
    conservation, low noise, and water

42
ING Headquarters
(continued)
  • This vision was refined to also require that it
    must use the latest technology, had to be
    flexible, and had to be energy efficient. Perhaps
    most importantly, the bank was not to cost one
    guilder more than a conventional building
  • The design of the building involved a
    multi-disciplinary team with close collaboration
    and took three years because all participants in
    the project, including employees, were involved
    at all stages
  • The site was chosen by workers because of its
    proximity to their homes

43
ING Headquarters
(continued)
  • Completed in 1987, the resultant 540,000 square
    foot building, which is a series of
    interconnected towers, is one of the worlds
    leading examples of how buildings should be built
  • The building
  • uses less than a tenth the energy of its
    predecessor and a fifth that of a conventional
    new office building in Amsterdam, with annual
    energy savings of approximately US2.9 million
    (1996 dollars)
  • uses passive cooling with backup absorption
    chillers and uses no air conditioning, something
    extremely unusual for a building of its size
  • is filled with natural light, artworks,
    curvilinear forms and flowing water. Indoor and
    outdoor gardens are fed by rainwater captured
    from the banks roof

44
ING Headquarters
(continued)
  • Employee absenteeism has dropped by 15 percent,
    productivity is up, and workers even hold
    numerous evening and weekend cultural and social
    events there
  • The bank has been elevated from fourth to second
    place amongst Dutch banks - uncertain how much
    this is the result of the new building and
    subsequent public image/corporate culture changes

45
PERTH CITY FARM
  • Source The Western Australian Department of the
    Premier and Cabinet Sustainability Policy Unit
    website

46
Perth City Farm
  • City Farm is a youth project run under the
    auspices of Men of the Trees (WA)
  • With limited resources, this not-for-profit
    organisation is involved in a wide range of
    sustainability issues relating to healthy urban
    communities and environments, including community
    development, land reclamation, organic food
    production and waste management
  • On a one-hectare block, fifteen minutes from
    Perth CBD, City Farm has transformed a derelict
    scrap metal yard (that had originally been slated
    to be a car park) into a thriving community
    garden, implementing permaculture principles and
    growing organic food
  • The garden includes a nursery, vegetable patches,
    fruit trees, native flora and poultry
  • City Farm also hosts an artists workshop

47
Perth City Farm
(continued)
  • City Farms primary emphasis is on community
    development
  • City Farms structure and operation is organic
    and egalitarian, with volunteers and coordinators
    taking responsibility for day-to-day tasks. It
    has a democratic approach to decision-making,
    with all volunteers having input to management
    issues and freedom to organise new activities and
    projects that they take responsibility for
  • The City Farm site was originally contaminated
    with hydrocarbons and heavy metals, and the
    buildings had asbestos roofs. Removal of
    contaminated soil was undertaken

48
Community Services
  • Many community groups use City Farm as a space to
    meet and work, as it provides resources (both
    human and material), courses, workshops and
    venues for community groups at a low cost
  • City Farm promotes many community arts projects,
    providing local artists with workshop space and
    organising exhibitions. Art surrounds the
    grounds, from funky signage, to the sculptures
    and painted logs. City Farm is a keen advocate of
    functional art. For example, its old can-crusher
    has been transformed into a work of art using
    recycled materials

49
Community Services
(continued)
  • City Farm has been an active music venue that has
    fostered many local musicians over the years. It
    is home to the Sambanistas, Perth's biggest
    community arts and percussion group
  • City Farm promotes organic food through their
    community lunches and dinners. Every Thursday,
    City Farm cooks an organic vegetarian buffet
    lunch that is open to the public

50
Community Services
(continued)
  • Education has always been a primary objective at
    City Farm, providing a link between urban and
    rural regions. It runs permaculture design
    courses, tours of the farm for schools covering
    worm farming, composting and plant propagation,
    and recycling workshops for primary school
    students
  • City Farm frequently runs information and
    workshops at festivals throughout the Perth
    metropolitan region. These stalls often feature
    compost and paper-making demonstrations

51
Community Services
(continued)
  • City Farm provides information on community
    groups, up-coming events, environmental projects
    and campaigns, and provides advice on recycling
  • There is literature on hand for visitors
    (including their own publications), as well as
    having experienced staff to provide advice
  • Offsite, City Farm provides people with the
    opportunity to get involved in a number of
    landcare programs around the State

52
Community Services
(continued)
  • From its inception, City Farm has regarded itself
    as a place where people could gain
    work-experience in a variety of areas. Many of
    its volunteers have gone on to paid employment
  • Government funded projects have included
    Landcare and Environmental Action Program
    (LEAP), TAFE courses, 'Work-for-the-Dole'
    program, Community Service programs for the
    Justice Department and provision of volunteer
    opportunities for the mentally disabled with the
    Department of Mental Health Services
  • City Farm is working with ATSIC and a number of
    other Aboriginal organisations and government
    departments in setting up a 'Safe Place' on the
    City Farm site. Such a space would provide
    travellers without accommodation a safe place to
    at least make a fire and possibly have access to
    an ablution block

53
Recycling
  • City Farm practices and teaches a range of
    recycling and reuse techniques that put old
    materials into productive use - to some extent
    this is necessitated by limited funds
  • Recycling techniques are incorporated into school
    workshops
  • City Farm recycles organic and inorganic waste
    material. Organic waste is transformed into
    valuable organic matter through composting and
    worm farming. Since 1994, approximately 4,000m3
    of tree mulch, 1,500m3 of lawn clippings and 20
    tonnes of newspaper has gone into City Farm's
    gardens

54
Recycling
(continued)
  • Inorganic waste is reused in its offices and in
    arts projects. So far, 20 tonnes of recycled
    metal and 200 tonnes of discarded timber have
    been used on site
  • From the TAFE and surrounding offices, waste
    paper is brought to the site for recycling
  • Recycling and reuse is evident in City Farm's
    furniture, landscaping and artwork
  • Bicycle recycling reduces waste and provides
    cheap and clean transport

55
Bush regeneration
  • City Farm works with its parent body, Men of the
    Trees to facilitate a range of tree-planting
    programs
  • As a salinity abatement strategy, Men of the
    Trees have conducted hundreds of tree planting
    programs, many of which have involved school
    children
  • City Farm's longest running tree-planting project
    (since 1990) is on the remote Aboriginal reserve
    of Pia, about 720km north-north-east of Perth.
    Pia is in the heartland of the Wadjarri people's
    lands, and is entirely managed by local Wadjarri
    people. There is an annual visit to the site to
    work on permaculture gardening, as well as art
    and music activities

56
Future Threats
  • Ongoing challenges of economic viability, given
    there is no direct government funding and a heavy
    reliance on volunteers
  • Secure land tenure - City Farm has operated on
    temporary leases since its inception, which has
    severely inhibited its ability to grow and
    restore its deteriorating infrastructure
  • Lack of legislative or policy support for urban
    farms

57
SUNDANCE FARMS
  • Source Factor 4 Doubling Wealth Halving
    Resource Use.
  • The New Report to the Club of Rome (von
    Weizsäcker et. al. 1997)

58
Sundance Farms
  • Agriculture is commonly discussed as a major
    cause of many serious environmental problems
    including soil erosion, overuse of water
    resources, deterioration of water quality in
    rivers and creeks, loss of biodiversity and in
    many parts of the world, salinity
  • However, a number of farmers are demonstrating
    that land can be farmed productively whilst
    protecting its environmental values

59
Sundance Farms
(continued)
  • Sundance Farms in Arizona is an 830 hectare
    irrigated farm which grows crops including
    cotton, wheat, barley, milo, maize, seedless
    watermelons, rockmelons and sweet corn
  • The arid conditions in Arizona are similar to
    those experienced in many areas of Australia
  • Even in well-managed irrigated farms, only 40-60
    of water applied to a field will be taken up by
    crops (for many farms this figures is closer to
    20), with the rest lost to surface runoff, deep
    percolation or sprinkler wind spray

60
Sundance Farms
(continued)
  • Sundance Farms changed from furrow and flood
    irrigation to subsurface drip irrigation in 1980.
    The drip lines, buried 20-25 cm deep, emit small
    amounts of water right in the plant root zone.
    The soil surface usually stays dry, reducing
    surface evaporation, and the root zone is never
    saturated, reducing runoff and deep percolation.
    The few per cent of water lost is mostly
    accounted for by the occasional backflushing of
    the drip lines
  • The drip lines, made to last and buried below the
    depth disturbed by any agricultural equipment,
    were dear to install, but the cumulative
    reductions in inputs and increases in
    productivity made the investment very
    cost-effective

61
Benefits
(continued)
  • Water-use efficiencies increased from roughly 60
    to over 95, a factor of 1.6 improvement
  • Reduced tillage operations, replacing ploughing,
    floating, land planing and listing with simple
    shallow surface tillage also reduced tillage
    energy use by 50
  • Simplified tillage allowed quicker postharvest
    turnaround of fields, permitting two crops to be
    harvested in some years

62
Benefits
(continued)
  • Because the drip lines cut water losses, less of
    the applied herbicides and fertilisers left the
    fields. Herbicide applications were reduced by
    50 and nitrogen fertiliser use by 25-50
  • Less water had to be pumped from deep well
    turbines, thereby reducing pumping energy use by
    50
  • Crop yields increased by 15-50

63
Sundance Farms - keys to success
  • A variety of factors probably contributed to the
    many observed benefits
  • greater uniformity of water application
  • greater effectiveness of systemic insecticides
    now delivered through the drip lines directly to
    the plant roots
  • better management of yield-reducing salts that
    often accumulate in surface-irrigated fields
  • higher yields with less water meant a reduction
    in water use by a factor of 1.8 to 2.4 in a hot
    and unforgiving desert where rising water costs
    had already wrung out the most obvious savings

64
NIKE
  • Sources Good News for a Change Hope for a
    Troubled Planet (Suzuki and Dressel, 2002) and
    The Natural Step website

65
Nike
  • Nike isnt always widely held up as an example of
    a sustainability-focussed organisation,
    particularly in light of revelations in recent
    years of sweatshop labour that has been used to
    manufacture some of their products
  • However, in 1998 the organisation adopted The
    Natural Steps principles and has adopted
    sustainability as a company-wide priority

66
Sustainability initiatives
  • In 2003, there were 65 pilot projects and
    initiatives that focused on sustainable product
    design and operational efficiencies. Some of
    these activities include
  • measuring the companys global footprint by
    examining the supply chain, from packaging to
    transportation, as a step toward creating
    sustainability benchmarks, tracking results and
    reducing harmful impacts worldwide

67
Sustainability initiatives
(continued)
  • attempting to replace inorganic solvents with
    water-based adhesives, cleaners and primers.
    Water-based cements in 90 of its shoes have
    helped the company save over 1.6 million gallons
    of solvents a year the equivalent of more than
    32,000 barrels of oil. They have also been
    working on removing carcinogenic phthalates out
    of inks. Nike advertised in conjunction with
    Greenpeace it would be phasing out the use of
    PVCs
  • making shoeboxes 10 lighter, saving 4,000 tons
    of raw materials and US1.6 million annually
  • attempting to make a totally recyclable shoe,
    with uppers and lowers that can be easily
    separated and recycled into other products
    everything from more shoes to basketball court
    pads and volleyballs

68
Sustainability initiatives
(continued)
  • adopting the use of organic cotton. Although only
    3 of cotton used in their products is now
    organic, the sheer volume of throughput still
    means that this is providing the organic cotton
    industry with enormous support
  • creating 17 sustainability-oriented positions in
    the United States and Asia
  • developing a commuting program to encourage Nike
    employees in the United States to take public
    transit, bike and carpool. This has resulted in
    14,137 gallons of gas saved and 11,310 pounds of
    pollution prevented in 2000

69
Nike
  • Nike has the following three sustainability
    goals
  • Eliminate the concept of waste in product design,
    use of materials, energy, and any other resources
    that cannot be readily recycled or reabsorbed
    back into nature
  • Eliminate all substances that are known or
    suspected to be harmful
  • Close the loop and take full responsibility for
    products at all stages of their development

70
COLLINS PINE
  • Source Good News for a Change Hope for a
    Troubled Planet (Suzuki and Dressel, 2002)

71
Collins Pine
  • Leads the way in sustainable practice for the
    forestry industry
  • Own what has been called the finest privately
    owned industrial forest in the US
  • Their practices have been praised by everyone
    from the Rainforest Action Network and the Sierra
    Club to the Washington Post and the Christian
    Science Monitor
  • Employs 7,500 people directly, and grosses about
    US250 million (US) a year in plywood, hardwood
    and softwood lumber, oil and gas
  • Business started in 1855 by the present owners
    grandfather-in-law
  • The family have funded everything from libraries
    and scholarships to church construction and
    foreign aid programs

72
Collins Pine
(continued)
  • The company has formally pledged to do three
    things
  • maintain the health of the forest ecosystem
  • support the production of wood on a sustained,
    renewable basis
  • provide social and economic benefits to the
    surrounding areas and communities
  • Collins Pine makes smaller profits than its
    publicly traded competitors simply because its
    owners arent greedy
  • Their more long-term methods mean they lose 25
    profit, or hundreds of thousands of dollars,
    compared to competitors. For example, by using
    natural tree regeneration, the forest matures at
    a more normal rate than the usual, even-age tree
    farm monoculture management

73
Collins Pine
(continued)
  • Ironically, because Collins Pine forests are more
    ecologically rich, they are more impacted by
    government regulators, e.g. more stringent
    regulations to protect the fish and game species
    theyve managed to bring back
  • In another example, the US Forest Service cuts
    firebreaks just inside their property line,
    because a well-managed, mature forest tends to
    stop burns. Clear-cutting neighbours in the
    watershed are allowed to overcut, while Collins
    Pine is then not allowed to take more in the
    state-allowable cut

74
Collins Pine
(continued)
  • Collins Pine at Alameda forest was asked if they
    had any of the rare great grey owl feeding at
    their meadows, which then required a 600-foot
    wide strip of trees to be left around all
    meadows. In spite of the imposition, they said
    yes, not because they had ever seen the owl, but
    because the habitat was appropriate and the owl
    could return
  • Despite lower profits and stiffer regulations,
    the Collins family takes low enough profits that
    they can provide decent wages for all their
    employees
  • Staff are proud they can protect the forests and
    their long-term livelihood
  • Many staff have waited years for an employment
    opportunity to arise at Collins Pine

75
Collins Pine
(continued)
  • The company also decided to certify its wood,
    whereby an outside agency is invited to determine
    if a companys practices are truly sustainable,
    so that the lumber can become certified,, that
    is, bear a consumer label stating that it is cut
    within the renewable limits of that forest
  • Despite initial reluctance from many employees
    about potential loss of control, interference and
    more paperwork, the outcomes have been
    inspiration for higher achievement and a
    revitalisation of practices
  • This process also initiated positive dialogue
    with environmental organisations such as
    Greenpeace

76
GRANNY SMITH GOLD MINE
  • Source The Western Australian Department of the
    Premier and Cabinet Sustainability Policy Unit
    website

77
Granny Smith Gold Mine
  • The Granny Smith Gold mine is a joint venture
    between Delta Gold and Placer Dome, located
    approximately 25 km south-southwest of the
    township of Laverton, surrounded by a number of
    other mines, in the north-eastern goldfields
    region of Western Australia
  • Laverton has a population of about 500 people, a
    substantial proportion of whom are Wongutha, the
    traditional custodians of the surrounding country
  • The processing plant has been producing gold from
    ore since 1990. Originally envisaged to have a 10
    year lifespan, the discovery of additional gold
    deposits in 1998 will see another 20 or more
    years, providing both the company and the
    community time to find ways to diversify local
    industry with a goal of a longer term sustainable
    future

78
Granny Smith and sustainability
  • The Granny Smith mining venture has developed and
    introduced a unique blend of sustainability
    practices and is taking more holistic approaches
    to mining activities
  • Granny Smith Gold Mine aims to encourage
    beneficial environmental, economic and social
    outcomes, to relations in both the immediate
    vicinity of the mine site and with the local
    community of Laverton
  • By recognising the importance of sustainability,
    Granny Smith's gold operations have introduced a
    philosophy that recognizes economic potential as
    only one of a host of values, such as social
    justice and conservation, which can be nurtured
    in concert with traditional business goals

79
Environmental sustainability
  • Revegetation has been planned and designed for
    both operations and closures. As progressive
    decommissioning of sites occurs over the life of
    the operation, revegetation follows in phases
  • The revegetation strategy includes final
    terraforming of disturbed land, planting schemes
    for tailings areas and general rehabilitation of
    the Granny Smith location
  • The seed, save and sow method is used, where
    original plants at dig sites are de-seeded for
    propagation and later replanting/reseeding to
    ensure the integrity of local ecosystems is
    retained
  • With a goal of diversification of the local
    economy, an experimental crop of 200 olive trees
    has also been planted and is growing well

80
Environmental sustainability
(continued)
  • Granny Smith has a worm farm for recycling of all
    cardboard, paper and food scraps on the mine
    site, thus providing fertility for the olive
    trees while solving a waste management issue
  • The "Ruggies" recycling program initiated in 1997
    to reduce material disposed to landfill. Several
    mines have since joined the program and thousands
    of tonnes of waste have been recycled. The
    program has also succeeded in cleaning up mine
    sites.
  • Material recycled includes steel from mill balls,
    copper from cables and aluminium from drink cans

81
Environmental sustainability
(continued)
  • Transport contractors that once returned from
    minesites to Perth empty are now taking saleable
    cargoes back with them
  • Money raised benefits children's hospital and
    charities
  • All people work voluntarily for the Ruggies
    Recycling initiative

82
Social and cultural sustainability
(continued)
  • The social impacts associated with having a large
    mining operation on the edge of a remote
    community are being considered
  • For most of the past century there have been few
    significant attempts to cultivate positive
    relations with local indigenous people
  • Historically the gold mining industry has been
    weak with respect to employment of aboriginal
    people
  • Granny Smith has made efforts to increase local
    employment opportunities for the indigenous
    people, in both the town and on the mine site
  • Various mine training programs such as the
    Aboriginal Mine Training Program and the Adult
    Certificate of General Education open new career
    opportunities

83
Social and cultural sustainability
(continued)
  • Cultural initiatives that seek to encourage and
    support opportunities for local artists to
    display and sell their work have also become a
    normal part of the mine's development strategy
  • It was determined that local arts and crafts such
    as weaving, painting, pottery, wooden artefacts
    and carvings in the form of traditional 'tools of
    the trade', such as shields and boomerangs, would
    benefit from the construction of a small tourist
    outlet to facilitate greater sales

84
Economic sustainability
  • The mine is working with the community on
    developing the local economy, so that when the
    mine eventually closes, the community has
    alternative means of generating income.
    Harnessing previously undeveloped local potential
    is essential to providing a truly sustainable
    vision for the area
  • With this in mind the potential for olive
    farming, tourism, and crafts sales are being
    investigated to diversify the local economy

85
Summary
  • This is an example of effective liaising between
    two communities. One, a mining camp with a fly
    in-fly out population, and the other, a small
    town-site in an isolated corner of Australia's
    outback, where people historically received
    relatively little benefit from large mining
    developments
  • The efforts made between the two demonstrate the
    global community possibilities for successful
    outcomes through incorporating sustainability
    into mining operations

86
Sustainability characteristics
  • Ingenuity, resourcefulness and creativity in
    regards to rehabilitation approaches
  • Genuine approaches taken towards the building and
    maintaining of positive relations - both
    employees and the wider community
  • Contributing to the quality of life of local
    community - respecting cultural and social needs
  • Wider social contribution also - in the form of
    the Ruggies Recycling Program and its
    contribution to Princess Margaret Hospital

87
Sustainability characteristics
(continued)
  • Successful communications with government and
    non-government agencies, and grass-roots
    community members
  • Positive approach to long-term issues considered
    too hard by previous generations
  • Sustainability reporting - transparency and
    openness in communicating progress towards
    sustainability

88
BLACKMORES
  • Source the former NSW Environment Protection
    Authority website

89
Blackmores
  • Blackmores provides natural health products and
    services, selling vitamins, minerals, herbs and
    nutrients
  • Started out as family business more than 60 years
    ago but publicly listed in 1985
  • Employs some 240 people in Australia, and also
    operates in New Zealand and South East Asia
  • Sustainability initiatives stem from the company
    founder, Maurice Blackmore, who firmly believed
    that human health depends on a healthy
    environment and that this connection should be
    reflected in his companys business principles.
    This has been a long-standing approach

90
Environmental initiatives
  • Reducing trade waste discharge - by planning of
    operations, and installing a new pump. Liquid
    waste is treated by a specialist contractor
  • Recycling incoming packaging - waste plastic is
    compressed and sold to recyclers, cartons are
    reused three times before being sent to recyclers
  • Blackmores is a signatory to the new National
    Packaging Covenant
  • Separating recyclable and organic waste from
    staff canteen waste sent to landfill. An on-site
    worm farm deals with a percentage of organic
    waste each day
  • Reusing products - products below specification
    and returned products are used as additives to
    fertiliser

91
Environmental initiatives
(continued)
  • Reducing energy use - through participation in
    the Energy Smart Business Program run by the
    former NSW Sustainable Energy Development
    Authority
  • The company has set up a formal energy team and
    introduced several measures to cut its
    consumption of electricity
  • the building has been insulated
  • low-wattage fluorescent tubes have been installed
  • airconditioning is controlled by time switches
  • lights are turned off when not in use
  • The company has also installed a solar generator
    on the roof and feeds electricity back to the
    grid. It has increased its use of green power
    from 5 to 25 in one year

92
Social initiatives
  • Contributing to community projects and local
    environmental projects. For example, for several
    years in a joint partnership with Oz Green
    (Global Rivers Environmental Education Network),
    and the Manly Environment Centre, Blackmores
    contributed to a program encouraging children and
    businesses to care for local waterways. The first
    project set out to clean up Manly Lagoon by
    monitoring pollution and encouraging local
    industries to minimise their impact on the Manly
    catchment

93
Social initiatives
(continued)
  • Raising staff awareness - by establishing
    environmental goals for the office, factory,
    kitchen, whole corporation and company future to
    encourage staff to make a conscious and ongoing
    effort towards improving environmental
    performance
  • Training for new staff includes pollution control
    and environmental awareness

94
Outcomes
  • Reduced waste sent to landfill
  • Reduced energy consumption
  • Blackmores received a silver award at the Energy
    Smart Green Globe Awards in March 2000,
    acknowledging its energy efficient practices and
    the successful completion of 50 of targeted
    projects agreed to with the former NSW
    Sustainable Energy Development Authority
  • In October 2001 the company attained gold award
    standard
  • Blackmores does not have specific information
    about costs and savings as cleaner production
    ideals have been part of the company ethos since
    conception

95
SEC Plating
  • Source Sydney Water website

96
SEC Plating
  • In 1998 SEC Plating Company was using 300,000
    litres of water per day, making them one of the
    top 20 water consumers among trade waste
    customers in Sydney
  • The company also constantly battled to meet trade
    waste (aqueous liquid waste) quality standards
  • Poor waste management was identified as one of
    the key underlying causes
  • The company developed an effluent improvement
    program to reduce pollutants entering the waste
    stream from the source, reduce the volume of
    water used, isolate waste streams containing
    substances prohibited under Sydney Water's Trade
    Waste Policy, and implement water recycling

97
Managing trade waste
  • Some issues became more manageable through
    employee education and better housekeeping
    addressing relatively simple issues such as
    preventing tanks overflowing, improving chemical
    handling to reduce and manage spills, and
    changing work practices
  • Determining the acceptability of wastewater
    streams for Sydney Waters sewerage system
    required a thorough analysis program, testing for
    compatibility with other wastewater streams, and
    investigating treatment suitability in the
    company's own effluent treatment equipment

98
Managing trade waste
(continued)
  • Some waste streams were able to be batch treated
    onsite, while others required transport for
    offsite management
  • Water recycling trials have indicated scope for
    recycling
  • Average daily mass emissions have decreased
    substantially

99
Long-term average daily mass trade waste load for
SEC Plating Company, 2000/01 and
2001/02 (Source Sydney Water) Sulfate load is
x1000
100
Outcomes
  • Other benefits
  • cost savings, with a 60 reduction in trade waste
    costs There have been overall savings of
    thousands of dollars per annum, from reduced
    quarterly agreement fees, reduced laboratory
    analysis costs, and reduced water and sewerage
    costs
  • water consumption has been reduced from 300,000
    to 100,000 litres per day
  • SEC Plating Company intends to maintain this
    focus on environmental improvement and cost
    saving and has set clear targets for its water
    management program, including 70 recycling of
    wastewater
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