1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.
-
Upload
glenn-aytes -
Category
Documents
-
view
217 -
download
4
Transcript of 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.
![Page 1: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/1.jpg)
1
![Page 2: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/2.jpg)
2
Getting Momentum on Sustainability
Steve LeeUnited Group Limited
![Page 3: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/3.jpg)
Getting Momentum with Sustainability
Steve Lee
Group Manager HSSE
![Page 4: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/4.jpg)
4
Getting momentum…
![Page 5: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/5.jpg)
5
Big city lights….
![Page 6: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/6.jpg)
6
Influences…
![Page 7: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/7.jpg)
7
Risk: Climate Change
• No Action
• Reasonable Action
• Substantial Effective Action
• Radical Action
Consequence
Likelihood
![Page 8: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/8.jpg)
8
Sustainable Development
Improving operating efficiencies
To meet the needs of the present without compromising the ability of future generations to meet their own needs." United Nations World Commission On Environment & Development
Reducing the company carbon (ecological) footprint i.e. reduce use of energy, materials, water, waste
![Page 9: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/9.jpg)
9
Business imperative
Why integrate sustainability into the business?
• Investment groups with increasing expectations
• Compliance to current and emerging legislative requirements
• Compliance to current and emerging company reporting requirements
• Large company demand & competitors adopting progressively
• Opportunities for product and service
• Opportunities to improve internal efficiency
• Potential for positive marketing influence
![Page 10: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/10.jpg)
10
Business as usual…!
In the context of the businesses we are involved with…
• Electricity use – eg lighting, fixed equipment, air conditioning, hot water
• Fuel use – eg petroleum, diesel
• Green house gas contribution - LPG gas, CO2,
• Consumption – paper, air travel, bulb replacement, petrol, etc
• Resource use – eg water,
• Waste output reduction, recycling
• Impact of ETS on prices of energy
• Financial impact/increase – rising power & fuel costs,
• Identify environmental impacts in current operational facilities.
![Page 11: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/11.jpg)
11
Australian response so far…
• Energy Efficiency Opportunity (EEO) Act (2006)Federal Govt – Dept focussed to improve their energy efficiency on top ASX high energy consuming businesses & industries using over 0.5 Petajoules (PJ) of energy (electricity & gas sources) per year. Required to evaluate & publicly report on cost effective energy saving opportunities.
• National Greenhouse and Energy Reporting (NGER) Act (2007)Federal Govt – Dept of Climate Changefocussed on establishing a single, national system for reporting greenhouse gas emissions, abatement actions, and energy consumption and production by Australian Corporations from 1 July 2008.
• Australian Emissions Trading Scheme Legislation in 2009focused on implementing ETS.
• Reporting on Carbon Disclosure and Corporate ResponsibilityIncreasing demand by investment organisations requiring more information to accurately evaluate company non-financial related performance with respect to sustainable development and corporate governance.
![Page 12: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/12.jpg)
12
Australian response so far…
• Energy Efficiency Opportunity (EEO) Act (2006)
• National Greenhouse and Energy Reporting (NGER) Act (2007).
2008 0.50 PJ energy(=125,000 T CO2 )
2009 0.35 PJ energy
2010 0.10 PJ energy
![Page 13: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/13.jpg)
13
Progress to ETS
Reduce Australia’s GHG emissions by 60% by 2050
Key steps
Commencement of Mandatory Reporting (NGER) July 2008
Public release of a Green Paper on ETS design (Garnaut Report)
July 2008
Consultation on Green Paper (Garnaut Report) July to Sept 2008
Public release of exposure draft Emissions Trading (ETS) legislation
December 2008
Provide firm indication of medium term trajectory By end of 2008
Bill for ETS considered by Parliament March to Mid-2009
Consultation on ETS regulations 2009
ETS Act enters into force, regulator established 3rd Quarter 2009
Emissions Trading Scheme (ETS) to commence (using Cap &Trade)
2010
![Page 14: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/14.jpg)
14
Sustainable Development
![Page 15: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/15.jpg)
15
Direct & Indirect Effects
Direct effects of a Price of Carbon
Upstream Pressures• Suppliers will pass on cost of carbon
– Materials – particularly those with high energy inputs such as cement, aluminium, steel
– Electricity – liability of electricity producers, power rates increase
– Fuel suppliers – potential increased costs from upstream liability
• Certain materials may develop higher demand because of use in low emission activities
– The development of the ethanol industry in Australia may push up the price of sugar
– Potential increased competition for forest resources because of forest sink activities or biomass fuel source Increase price of timber
– Switching to gas from coal as a higher energy source
– Solar energy capturing materials,
![Page 16: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/16.jpg)
16
Indirect effects of a Price of Carbon
Downstream Demands
• Customers want products and services with lower costs. Carbon price impact on energy costs gives incentive to purchase low emissions products and services to avoid a carbon liability on your business.
• Environmental sustainability demands
– Rise of carbon neutral and emissions reduction programs in the corporate world
– Companies that have made carbon neutral pledges include HSBC, Swiss Re, IAG and NewsCorp
– Companies will increasingly want products and services that help reduce their carbon footprint
– Large companies exerted pressure on their supply chain eg WalMart working with manufacturers and freight service providers
Direct & Indirect Effects
![Page 17: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/17.jpg)
17
Some steps to take a reasonable response in assessing the risks and opportunities and developing a carbon management strategy:
1. Measure and monitor carbon footprint – your energy usage
2. Ensure carbon data is independently audited
3. Forecast carbon growth and set reduction targets
4. Assign costs to abatement opportunities
5. Report carbon data internally and externally
6. Create a senior carbon management position
7. Track competitor’s responses
8. Price carbon into investment decisions
9. Identify and leverage new carbon opportunities (avoid green-wash)
10.Review progress on carbon targets
Carbon Management Strategy
![Page 18: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/18.jpg)
18
Progress to Date
Working Group established - June 2007
Energy assessment data for UGL operations – Nov 2007
UGL Sustainability Program Paper – Feb 2008
Intranet – internal communication on sustainability – March 2008
Sustainability Manager initiated – May 2008
Sustainability Program commenced – May 2008
Collating current UGL activity and initiate both short and long term actions
![Page 19: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/19.jpg)
19
Key actions
Key Actions
1Corporate Sustainability Manager,Establish a UGL Sustainability Steering Committee
2Formal reporting be established for energy consumption Data to be collected and collated for end of quarter reporting
3 Detailed strategy and initiatives communicated
4Initiate reporting for identified resource consumption ie photocopier materials, lighting replacement, air travel.
5 UGL Sustainability integrated into business planning activities
6Formal reporting processes on progress against sustainability actions to be established on a quarterly basis
![Page 20: 1. 2 Getting Momentum on Sustainability Steve Lee United Group Limited.](https://reader035.fdocuments.net/reader035/viewer/2022070308/551bcd12550346be588b5231/html5/thumbnails/20.jpg)
20
Summary
Identify your exposure to Federal Govt progress with EEO and business impact from the ETS
Assess the impact of projected energy costs increases on your business (cost to operating/manufacturing and price increase products)
Carbon reduction is a business efficiency issue
Carbon Management Strategy a good process to use
Broaden the efficiency assessment to include other resources you use
Define participation with your business units with efficiency initiatives
Employees need communication and participation opportunities
Evaluate if there are new business opportunities and impacts
Public company communication - prepare to adopt a corporate reporting standard ie Global Reporting Index (GRI) or similar