How to do sustainability properly Gareth Kane www.terrainfirma.co.uk 1. Understand the business case www.terrainfirma.co.uk The Business Case www.terrainfirma.co.uk The Business Case www.terrainfirma.co.uk Cost Savings 26 half day waste visits £175,000 per site on average Pharmaceuticals very wasteful Northern Foods £4 million estimated savings this year BT £100 million per annum 3M $1bn per annum www.terrainfirma.co.uk The Business Case www.terrainfirma.co.uk Recruitment & Retention “43% of job hunters would not work for a firm which had no ethical or environmental policies, even if they were offered £10,000 more to do so” The Guardian 2003 www.terrainfirma.co.uk The Business Case www.terrainfirma.co.uk Direct vs Indirect Benefits BT: “Between 2005 and 2009 our environmental programmes saved £400m and supported bids worth a potential £1.9bn in 2009” Direct savings = £ 100m pa Indirect benefits = £1,900m pa www.terrainfirma.co.uk “We have both won and lost out on eight figure contracts where sustainability performance was a key factor in the final decision” Martin Blake Head of Sustainability Royal Mail www.terrainfirma.co.uk Graph of NHS England CO2 Emissions Baseline and Climate Change Act Targets 25.00 20.00 10% target from 2007 baseline NHS England NHS England forecast 15.00 Mt CO2 2007 baseline Carbon Reduction Strategy Target 10% target from 2007 baseline 1990 baseline Climate Change Act Target 26% target from 1990 baseline 26% target from 1990 baseline 64% target from 1990 baseline 10.00 80% target from 1990 baseline 64% target from 1990 baseline 5.00 80% target from 1990 baseline Reference: Carbon Reduction Strategy for England, NHS SDU, Jan 2009 www.sdu.nhs.uk 0.00 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Year www.terrainfirma.co.uk Carbon Footprint - NHS England www.terrainfirma.co.uk Procurement Breakdown www.terrainfirma.co.uk “we must… work with our suppliers and others to deliver significant CO2 reductions throughout our supply chain end to end.” Sir Terry Leahy Tesco 2007 www.terrainfirma.co.uk The Business Case www.terrainfirma.co.uk 2. Integrate sustainability into the business www.terrainfirma.co.uk Sustainability Maturity Model www.terrainfirma.co.uk 3. Take Action “Learn by Doing” www.terrainfirma.co.uk Less Stuff: Resource Efficiency Profitable Utility Resource Efficiency = Resource Use Costs straight off your bottom line www.terrainfirma.co.uk Waste Minimisation Added Value Cost of Waste www.terrainfirma.co.uk GSK Resource Efficiency www.terrainfirma.co.uk Better Stuff: Eco-system Model www.terrainfirma.co.uk Industrial Symbiosis eg Kalundborg, Denmark www.terrainfirma.co.uk Summary: 3 Steps Understand the business case winning business > cost savings need more than a simple ROI Integrate it into the organisation complete buy-in and commitment long term strategy Take action: two practical strategies less stuff: resource efficiency better stuff: solar, cyclic, safe www.terrainfirma.co.uk Resources www.terrainfirma.co.uk