Simple steps for reducing energy

As Australian businesses face what could be the gloomiest economic conditions in 20 years, the focus of our very big environmental predicament has somehow melted into the background.

Surely the very survival of the business itself is first and foremost during this tough economic period and the impact or footprint on the environment of a business is a very distant second?

That is unless you believe the two are very closely linked and come to the realisation that by becoming a more sustainable and environmentally friendly company, you are in fact obtaining some very real and proven business benefits that can help you during these tough economic times.

Leading the way

Businesses all around the world are bearing the fruits of an environmental policy which creates differentiation and exudes an ethical brand to consumers.

Major brands such as Honda, Lenovo & Newscorp, which although would be considered responsible for a significant environmental footprint, have implemented both internal policies and consumer products to reduce their carbon footprint and position themselves as ‘doing’ rather than ‘talking’ about our very real global problem.

Believe it or not, consumers are buying it.

The Australian Lifestyle of Health and Sustainability (LOHAS) market has become a $15 billion market and grew 25 percent in 2007.

Consumers are concerned now more than ever, not just by the ‘Greenness’ of a particular product, but by the reputation of the businesses they deal with and their impact on our environment.

Governments and many sustainable companies now mandate a response to sustainability in their tender processes and businesses are wanting to deal with more eco-friendly partners.

Carbon footprint analysis

Even employees are getting in on the act and studies in the US have shown eco-friendly companies are more successful at attracting their first pick of employees.

So, how can Australian small and medium businesses benefit?

The first step in what I like to call the ‘GoGreen Journey’ is to “Reduce”.

Reduce your environmental footprint with a professional carbon footprint analysis. It’s actually a much easier and less expensive exercise then many people believe.

A carbon footprint analysis will assess your energy use and carbon footprint whilst evaluating the ways you currently use non-renewable resources. The assessment will lead to improved performances that will save your organisation from wasteful usage practices which generally lead to significant cost savings.

A typical analysis can pay for itself after 12 months from reduced energy bills.

Businesses should look for a good carbon footprint analysis that will diagnose your current sustainability level, but more importantly, show you ways to improve it.

Different auditing companies across Australia include different aspects of
a business’s emissions into an analysis, but most use the Greenhouse Gas Protocol (GHG) when deciding what is included in or out of scope for an analysis.

Many auditing businesses would include what’s known as Scope one and two which covers a business’s direct emissions, as well as some of their indirect emissions through purchased energy.

Scope three takes things a step further and includes more indirect emissions such as travel, product use and other outsourced activities.

Many businesses include all of scope one and two and some of scope three for a meaningful representation of their impact.

Actually measuring and reporting on a business’s footprint is easier than you may think.

Thorough audits are implemented using a level two Australian Energy Audits AS/NZ 3598:2000 standard which identifies the sources of energy to a site, the amount of energy supplied, and what the energy is used for.

It also identifies areas where savings may be made, recommends measures to be taken, provides a statement of costs and potential savings.

This is usually performed by a person physically attending your place of business and measuring consumption values for devices found on-site and its operating hours.

An investigation into transport usage as well as analysis of energy and water information from utility providers.

On-site time may range from hours to days depending on your business size and the remainder of the reporting and calculations are done off-site so disruption to your business is minimal.

You may need to spend some time with your auditing professional so that he/she understands your business operation, but besides that, you only need supply your utility invoices and they’ll do the rest.

After the measuring is complete, you should expect a detailed report that outlines your carbon footprint and categorises your emissions into several categories including: energy efficiency, water efficiency, lighting, heating and cooling, transportation, carbon dioxide emissions and more.

A good report should also catergorise the associated costs of each GHG category and set clearly defined reduction targets.

Then, as part of your commitment to act on your report, a set of reduction strategies should be put forward also highlighting any capital investment needed to implement those strategies.

You’ll find that most reduction strategies just need a change in practice or process rather than a whole heap of capital investment.

It’s amazing to understand how some simple changes to our behaviour can make such a large contribution to our emissions over 12 months.

Train your employees

To implement most of the reduction strategies, you’ll need co-operation from your employees and be able to influence their behaviour in the workplace.

That’s why some environmental services companies will help run training and information sessions for employees and help bring them up to speed.

I’ve found that this aspect forms a stronger employee culture and usually employees are excited by the initiatives, even volunteering to oversee many of the initiatives.

Many companies form a ‘Green Group’ or a committee of company employees who are responsible for tracking progress and reporting back on initiatives to the company.

It’s a fantastic opportunity to re-ignite a company culture and bring people together for a common cause.

Studies in the US have found that these types of initiatives generally lead to happier and more productive employees.

Employees also report back saying they have changed their behaviour in their personal lives and implemented initiatives at home. The knock-on effects are amazing.

Carbon offsets

What can’t be reduced, can be offset. Carbon offsets and ‘carbon neutral’ seem all the hype these days, but are also an extremely confusing area for consumers and businesses.

In simple terms, carbon offsets are designed to mitigate greenhouse gas emissions.

It’s a way of ‘putting back’ what you’ve ‘taken out’ from the environment.

Offsets are typically generated from emissions-reducing projects such as renewable energy, destruction of industrial pollutants or agricultural byproducts, destruction of landfill methane, and forestry projects.

They’re a great way to further reduce your footprint AFTER you’ve been through the reduction process.

However, reduction remains the most powerful act businesses can take.

There is plenty of evidence that shows businesses that take the reduction steps enjoy a range or real-world bottom and top-line benefits.

Firstly, with the introduction of the 2010 Carbon Pollution Reduction Scheme (formally known as the Emission Trading Scheme), most experts agree on one thing: energy prices will rise.

Businesses that operate more efficiently and get their processes for low-energy operations right today, will be well positioned when the inevitable price rises happen in 2010. Expect efficiency and reduction of energy consumption to go straight to the bottom line.

Planned marketing

This brings me to the second step in the GoGreen Journey, “Reveal”.

Reveal your achievements through a well planned and innovative communication strategy.

Businesses today face ever-increasing competition and ever-aware consumers who factor environmental issues into their buying decisions.

When consumers have a choice between several brands or products with similar performance and cost considerations, a company’s environmental policy can be the differentiating factor in the decision process.

By putting together a detailed communication strategy you can generate real business benefits from your new-found environmental policies.

A clear and concise message will differentiate you from your competitors; help attract new customers and business partners; maximise retention of your existing customers and portray a sustainable and ethical brand.

Furthermore, get your achievements into mainstream media and make sure your existing and potential customers know about your initiatives and achievements.

Businesses also looking at attracting investors or floating on the stock exchange will be pleased to hear that most investors and analysts recognise that carbon emissions represent a real business cost.

They look upon carbon assets and liabilities as they would any other item on a company balance sheet.

Businesses that have made positive action towards the environment will be reviewed positively and will benefit from today’s large range of ethical investment funds.

Even though an innovative communication message can bring many of these benefits to your business, be aware of overstating.

‘Greenwash’ as it is referred to is occurring more often and there have already been cases of well-known brands accused of Greenwashing and not communicating their Green message clearly enough.

That’s why having a meaningful ‘Reduce’ strategy first is a must do. Make sure your relevant marketing professional knows this space and is capable of a clear, concise message with substance to back up your claims.

Inspire

The final step in the GoGreen Journey is “Inspire”.

Inspire the people around you to take positive action for the environment.

Businesses rightly should consider the economic factors in becoming more sustainable, but don’t undervalue the impact you’ll have on the people around you.

Be a leader, not a laggard and inspire those around you that a more sustainable environmental policy is not only ethical, but can deliver
real business benefits.

Raise awareness externally and internally and help inspire those you interact with to take a similar standpoint in their businesses or home. Show your brand represents ethical and social leadership and you’ll find that the rewards will far outweigh the costs.

Collectively, we can make a difference not only in our businesses, but in the global environmental challenges that face us ahead.