The Commonwealth Government’s plan for an emissions trading scheme might have foundered but the push for companies to improve their environmental performance remains high on the public and political agenda.
To date, most government policies relating to carbon emissions from business have taken the form of information and financial assistance.
The Commonwealth Government program, Re-Tooling for Climate Change, has provided grants of between $10,000 and $500,000 to businesses, and similar support programs are available.
Now the other side of the ledger is beginning to appear, with the possibility of penalties for companies that do not lift their environmental game. Several state governments have already ratcheted up the fees for waste disposal in landfills, for example, to promote recycling and better resource use.
Many large companies in the manufacturing sector have moved to improve their environmental profile, considering sustainability issues at senior levels and integrating them into their reporting.
But the trend does not appear to have taken hold amongst small and mid-sized companies.
“I wish I could say that there was a positive shift in this part of the business sector, but there is no evidence of it,” says Beth Walker, Professor of Business Enterprise and Director of the Small and Medium Enterprise Research Centre at Edith Cowan University.
“There are the exceptions, but our research into the attitudes of smaller businesses shows that most don’t see environmental sustainability as relevant to them.
“Even when a free energy audit is offered, a lot of companies are not interested. They don’t see the need to change their environmental behaviour as part of their core business.”
Professor Walker believes that many companies could make simple changes such as using energy-efficient bulbs and encouraging employees to turn lights off when not needed.
She also sees equipment as a common cause of wasted energy.
“There are plenty of things that could be done with little or no financial outlay,” she says.
“Then there are things that involve some expense, such as more energy-efficient equipment and machinery, but it would be recouped reasonably quickly.
In areas like water conservation, fixing leaks will pay for itself very quickly.
“I don’t see the current approach of government as effective. But introducing penalties would be very unpopular, and governments in Australia are not known for courage.
“Nevertheless, something more forceful than grants and information packages, and piecemeal moves like landfill fees, is clearly needed.
“There has to be a broad move to push change, in the same way that the GST forced improvements in financial operational efficiency,” she said.
Looking for the return
But Professor Walker’s conclusions are not shared by everyone. Erin Simpson of the Victorian-based industry association VECCI, cites research conducted by her organisation showing that around two-thirds of small and mid-sized firms are interested in improving their environmental practices.
VECCI’s key program in the area is Grow Me the Money (www.growmethemoney.com.au), a web-based program developed in conjunction with the Environment Protection Authority Victoria.
Participants are provided with easy-to-use online tools via a personalised web account and are given support specific to their business to help in developing sustainable practices.
There is a 12-step program involving about three hours of work a month.
On average, successful participants have seen a savings of $6,600, 3.8mL of water and 28t of CO2.
“One of the most popular aspects of the program is a help-line,” says Simpson.
“Businesses can speak one-on-one with a sustainability expert who can assist them in implementing more sustainable processes and activities.
“This is a great asset for small businesses that lack the time, internal resources or confidence to tackle these issues alone,” she said.
Simpson agrees with Professor Walker that many savings can be at little or no cost, but her experience is that many companies are willing to make investments as well, provided they can see a return.
“The key seems to be if a company can look at a case study in their industry and see lessons that are relevant for them,” she says.
“We have also had companies come to us for advice when they are moving premises or planning to upgrade their equipment.
“That is seen as a logical time to make changes, although I always point out that there is much that can be done through behavioural change or cost-effective retro-fitting, even if a move isn’t planned.
“An important point for business to realise is that many government agencies have undergone a cultural change in the past few years, and are now eager to help business, to collaborate and consult.
“So businesses should be willing to meet them on that basis, rather than the adversarial relationship of past years,” Simpson said.
Re-thinking the energy equation
Elio Nobrega, Marketing Director of Sydney firm Craft Fibreglass Composites, is keenly aware of the conflicting pressures on businesses.
“People who want to impose more and more costs over environmental issues aren’t seeing the big picture,” he says.
“We are very aware that we are competing against China and the like, where they don’t have those sorts of issues.
“Driving us out of businesses is not going to help anyone. And it will be bad for the environment in the long term if production moves to a country with no environmental rules to speak of.”
Nobrega points out that his company recently changed some of its crucial equipment, especially a cyclonic dust extractor, to cut power consumption.
“You could see the extra costs of the old machine in the electricity bill,” he says.
“When we started looking at alternatives, we realised there was a new generation of equipment that is energy efficient and cost-competitive. That’s good for us and also good for the environment.
“The cost of plant, both acquisition and running, is a key issue for many companies. It pays to shop around and get something that matches your needs.
“You have to look at the life of the machinery, not just the purchase cost.”
Another company whose experience holds valuable lessons is Ferguson Plarre Bakehouse.
The company has won several awards for its efforts, including the 2009 Origin Gold Banksia Award for excellence in sustainability and the NAB Agribusiness Award for Environment and Energy Management 2009.
“We have reduced our carbon emissions by more than 5000 tonnes over five years,” said Steven Plarre, General Manager, Operations.
“We started with a free energy audit from the Greenhouse Challenge program, and that gave us a good picture of where we could make improvements.
“To make progress there has to be a willingness to look beyond short-term costs, although the payback period is usually only one or two years.
“Once those things are in place, then you have to engage your employees, and listen to their ideas. We have 120 employees, and that means 120 active minds.”
Ferguson Plarre Bakehouse has been particularly active in re-using energy that would otherwise be wasted.
In its main production facility, all hot water required for cake production is preheated by energy recovered from refrigeration systems, saving over 600t of carbon dioxide per year through reduced gas consumption.
In a comparable vein, heat recovered from freshly baked products is used to heat the main production area in winter and to minimise heat-bleed into refrigerated areas.
To promote employee engagement, a screen was set up in a high-traffic corridor to display information from the SCADA (Supervisory Control And Data Acquisition) energy monitoring system, allowing ‘real time’ monitoring of all energy consumption and the resulting emissions.
Another innovation by the company was the purchase of Victoria’s first diesel-hybrid truck.
“It was more expensive than a traditional option, but Sustainability Victoria contributed a grant which made it viable,” said Plarre.
“They will monitor its performance against conventional vehicles, so that other businesses can benefit from the initiative.
“It is always worthwhile discussing possible purchases like this with the responsible agency to see if there is any support they can offer.”
Plarre acknowledges that the company will probably not be able to totally prevent all of its carbon emissions.
As an offset, it has established a program to plant native trees in the Mount Worth area, in eastern Victoria.
In the past three years, over 22,000 trees have been planted, accounting for about 6000t of carbon dioxide, the equivalent of taking 1395 cars off the road for a year.
Plarre is quick to point to the external benefits of the company’s efforts.
“We highlight our approach in our marketing, and I believe it gives us an edge,” he says.
“And we believe that eventually governments will increase the regulatory burden, so all companies will have to take up these practices. By doing it now, we are building in a competitive advantage.”
Professor Walker applauds efforts like these, and also acknowledges the worth of VECCI’s Grow Me the Money program.
“If governments are not willing to bite the bullet, then industry associations become particularly important in promoting change,” she said.
“Maybe as a business owner you don’t accept global warming, maybe you can’t stand the Greens. It doesn’t matter.
“Making environmentally better changes improves your bottom line. It makes good business sense,” Professor Walker said.