View the Presentation Slides - Climate Change Summit

View the Presentation Slides - Climate Change Summit

Ian HigginsClimate Change SummitJuly 2008

Employee CommunicationGovernment Relations & Public AffairsEmployee CommunicationConsumer & ProductCommunicationBusiness & TechnologyCommunicationOur ClientsFinancial & Business CommunicationHealth CommunicationHealth Communication2

3Acknowledging our clients in this space

Meeting the Greenhousereduction targets

Blair is a believer“Energy Efficiency would provide around onequarterof the gains necessary, andincidentally, save money, but its significanceis often ignored”Former British PM Tony Blair (June 2008)

McKinsey is convinced25% of the total reductions can be realizedwith positive returns…mostly through energyefficiencyAn Australian Cost Curve for Greenhouse Gas Reduction -McKinsey 2008

A Convenient TruthThe United States can cost-effectively reduceenergy consumption by 25-30% or more!ACEEE 2008

Who is accountable?• Currently three Federal Ministers haveresponsibilities for bits and pieces of EnergyEfficiency – Ferguson, Wong and Garrett• States on different pathways

Where to from here?•Why Energy Efficiency is important•What is stopping its uptake•Hard evidence that it works•The importance of information and behaviourchange•A few more things I hope we will see beingintroduced Federally

Defining Energy Efficiency!“Energy efficiency is a means of using lessenergy to provide the same (or greater) level ofenergy services. With efficiency we can drivethe same distance with less petrol or watch thesame program with fewer kilowatt-hours ofelectricity”.Karen Ehrhardt-Martinez and John A. “Skip” Laitner – ACEEE May2008

Economists VS EngineersConfusion!• To economists, it’s energy (or GHG) per unit ofeconomic activity• To energy experts, it’s energy per unit ofdelivery of servicePears 2004

A Little Maths“Functional” (energy/unit of service) = Energy use x GDPUnit GDP Unit of serviceStated another way;Energy useUnit of Service“Economic” ( energy/unit of GDP) = ---------------------------------GDPUnit of servicePears 2004

Australian 2020 carbon abatement cost curveMcKinsey 2008

McKinsey’s Key Points• A significant reduction in Australian GHGemissions is achievable and affordable – 30%reduction on 1990 by 2020 @ $290 perhousehold• 80 Mt or 25% AT NEGATIVE COSTMcKinsey 2008

Government ModellingIn Oz, energy efficiency could conservativelydeliver -• a 9% reduction in energy consumption• 9% reduction in greenhouse emissions – down32MtCo2-e• $1.8 billion increase in Australia’s real GDP• 9,000 more jobsNFEE modelling 2003

Payback!ActionInvest in energyefficiencymeasure with oneyear paybackCost/Tonne ofCO2 avoided orstored-$32yes, a negative cost!CommentsAssumes 10 year life of measure,8c/kWh and 1.0 kg CO2/kWhfor BAU electricity, and 15%padiscount rate to reflect 15% IRRthreshold.Invest in energyefficiencymeasure with 5year payback- $4.50Assumes 15 year life, 8c/kWhand 1.0kg CO2/kWh for BAUelectricity, and 15% pa discountrate to reflect 15% IRRthreshold.Pears 2004

Energy Smart Business Program 1997 - 2004No. ProjectsCO 2paAv. CO 2pa perprojectAnnualSavings($’000’s)Cap. Cost($’000’s)SimpleROI (%)Lighting75964,283855,04411,18645%HVAC59394,7421606,32613,35347%Industrial Process148129,7948774,22810,15442%Office Equipment714,1645929283974%Support Services8616,973197855529161%Water Heating616,2811033891,42927%Other955197,74020712,51037,73233%TOTAL2,754526,91519130,41276,76040%

Barriers to the take up of Energy Efficiency• Information not always available, relevant,timely• Poor access to expertise• Behavioural barriers• Financial barriers- more exciting things to invest in- split incentives

Information to ActPeople want more information + empowermentAccountAbility and Consumers International - 2007)

McKinsey Global Study:How Companies Think About Climate Change• 70% of senior executives see climatechange as an important considerationfor managing corporate reputation andbrandsHOWEVER• 36% report their companies seldom ornever consider climate change incorporate strategy• Four in ten say their companies seldomor never account for climate changewhen developing new productsIMPORTANCE NOTTRANSLATING INTO

GreenLight Research - What employees are saying65% Do know what they can doto reduce waste?100%80%60%65.6%40%34.4%20%100%80%73.4%0%YesNo60%40%26.6%20%0%YesNo73% Do know what they cando to reduce energy use?

GreenLight Research - What employees are sayingIs it important to save energy?97% of employees think it is important to save energy77% believe changing behaviour could save energy and water100%80%60%Thecommunicationchallenges40%40.0%20%17.0%20.4%19.3%0%0.5%Don’t knowwhyWhat to do?Not apriorityLow lvlcommitmgmnt2.8%Distrustmgmntobjtvsother

GreenLight Research - What employees are sayingWhich of the following do you believe could increasemotivation around environmental initiatives?100%80%60%40%26.8% 24.4%20% 11.1%15.3%11.7%0%EducationMy DifferenceRecognitionIncreased feedbackCost benefitsNothing0.3%10.4%Other

Gaining Employee Supportfor Business InitiativesInsightFreightCorp needed to gain support for their imminentprivatisation, improve efficiency and drive up the shareprice. It was a time of great change and employmentinsecurity. Employees needed to understand the benefitsfor themselves and the company from the privatisation,and know that their concerns were heard by seniormanagement.SolutionAn innovative 12 month communications programmewas tailored to meet the needs of the employees andmanagement. It focused on creating improved practices,one of which was engaging train drivers to understandthe environmental impact of their day to day activities.Result - $2.5m per annum in fuel savingsFreightCorp was the first privatisation in NSW thatemployees voted in favour of. A sale that netted theNSW Government $1.172 billion. $2.5 million dollars perannum in fuel saved from $80K invested in employeecommunications. Based on today’s fuel prices this wouldbe over $4 million dollars.Equates to a reduction of over 8200tonnes of carbon emissions pa

Behaviour change to achievesignificant reduction in energy usageImpact was commissioned to promote sustainableemployee behaviour including development of a trainingprogram and guidelines to help achieve additional energysavings.Sustained employee behaviour change resulted in30% reduction in base load energy consumption overnightand 70% reduction over the weekends.25

Employee education and behaviouralchange reduces energy useInsightNestlé Oceania has a program of technical initiatives in place butalso wanted to see if employee behavioural change could assistfurther in beating their energy reduction target of 3%.SolutionWith the support of NSW Department of Environment and ClimateChange, the Nestlé Blacktown team piloted the GreenLight programwhich included: Creating a volunteer Green Team consisting of management andemployees Research on employee opinions and perceptions Collection of energy saving ideas from front line productionpeople, which identified non-technical initiatives that were added totheir strategy over 12 monthsResult - 8.6% reduction in gross electricity useNestlé Oceania met its reduction target of 3%. Nestlé Blacktownplant achieved an energy reduction of 2.1% per tonne of productand the focus on the plant electricity reduction saw a reduction of8.6% in gross electricity use. The main point of difference being theGreenLight Program.26

Employee engagement to drive changeInsightWith over 180,000 employees and almost 3,000 stores across awide geographic area, promoting and implementing sustainablebusiness practices is a challenge. Woolworths recognises thattheir people are a most effective resource to drive change.SolutionThe Eco Ambassador program was piloted in the Sydney Metroarea with a group of support office and store based staffattending an induction workshop where they learnt aboutWoolworths’ impact on the environment, Woolworths’sustainability strategy and how in their role as an EcoAmbassador they could make a positive difference.The Eco Ambassadors are responsible for leading by example,encouraging ideas sharing and supporting two waycommunications between their work colleagues and head office.ResultWoolworths are in the process of rolling out the Eco Ambassadorprogram nationally with 500 Eco Ambassador to be inducted byAugust 2008.Numerous ideas have already been collected for implementationto reduce Woolworths' environmental impact, 96% of thoseinducted to date believe their role is important to the success ofWoolworths’ commitment and to the environment; and 97% feelthey understand what they can do in their workplace and in theircommunications with colleagues to make a difference.

Key Points• Need National Energy Efficiency Target• Establish a Carbon Trust• Carbon Labelling• Greater incentives• Get on with it!


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