Australian Paper

As an industry largely reliant upon fossil fuels, car manufacturers are keenly aware of the issues of climate change and sustainability. In 1997 Toyota was the first to reach the market with a petrol-electric hybrid vehicle, the Prius. The company has indicated that by 2020 every Toyota model will have a hybrid option. But its environmental credentials extend beyond hybrid cars. As its Environmental Policy Manager, Jon Ward, explains, Toyota has in place sustainability programs that are part of its kaizen philosophy of continual improvement.

How has sustainability influenced design at Toyota?

Environmental sustainability is a significant driver for design innovation in the car industry. To meet this requirement, Toyota developed ECOVAS – the Eco Vehicle Assessment Scheme. It’s essentially a part-by-part assessment of vehicles each time new generation models are released. Over that model’s cycle the vehicle is continually reviewed to consider its overall sustainability, including recyclability.

How much of the vehicle is recycled at the end point?

Toyota’s aim is to achieve a 95% recycling rate for its vehicles, but this depends both on vehicle design and local industry recovery capability. For the Prius, batteries are a significant part of the footprint and those batteries achieve a 96% recycling rate.

What other sustainable initiatives have you explored?

In vehicles manufactured in Melbourne, the engine blocks are made from recycled aluminium. We receive metal in a molten state, which means we don’t have to expend energy melting it again. Toyota is also experimenting with new design materials, such as bio-fibres, instead of carbon-based fibres. For example, the floormats in Prius are made from cornstarch polymers.

Does Toyota have a program of corporate social responsibility?

We have a five-year environment plan that falls under Toyota’s ‘Earth Charter’ and a range of programs under our Toyota ‘Community Spirit’ program. We report our performance and the outcomes from these two program areas in our annual sustainability report, available from our website.

Have you set guidelines and targets for your suppliers and dealers?

All parts suppliers have to certify to the ISO14001 environmental management standard. We’ve just launched the TED (Toyota Environmental Dealership) program to encourage our dealers to measure their current performance and improve against those benchmarks over time.

Has Toyota been independently audited?

Yes we use the Global Reporting Initiative Indicators to guide our reports and we independently verify our sustainability reports and the performance of our environmental management systems.

What are the key sustainability metrics used by Toyota?

The GRI drives our reporting which covers social, environmental and financial indicators. We also measure the carbon intensity of our operations, including buildings, manufacturing, supply chain, dealers and logistics. In Australia we’ve reduced CO2 emissions by 27% per vehicle since 2005. We’ve reduced water use 40% since 1999–2000.

How can suppliers align their sustainability credentials with Toyota?

We have a green purchasing policy that sets out requirements for our suppliers. Our tenders ask for evidence of environmental initiatives, and we’re always looking to lever those relationships into greener ones.

Is there awareness among businesses to take on a sustainable approach?

Yes the business sector sees the green economy as an emerging reality, largely driven by the community’s environmental consciousness. There’s a shift from companies providing green products in their range to mainstreaming greener options across the range.

Who is the average Prius buyer?

Prius hybrids have always done well in fleets. Most companies and government departments have seen their fleet as a place to express sustainability. And, increasingly, private buyers wishing to save on fuel costs and make a difference to the environment.

What benefits have you gained from your focus on sustainability?

Environmental sustainability is a low-cost and customer-focused approach to doing business.

What can the design community do?

Designers play a key role in determining the product outcome. The design community is very aware of sustainability. Their challenge, like ours, is to mainstream this so that in 20 years, sustainable is simply how things are made.

Sensis produces 20 million copies of its White and Yellow Pages directories. In late 2008 it undertook an assessment of the impact of its print and online directories. “Not just emissions,” says Jillian Riseley, group manager of sustainability at Sensis. “We were talking about toxicity, impact on land development – the entire lifecycle from cradle to grave.” As part of its commitment to the triple bottom line, Sensis has also produced a free directory for small businesses designed to spread the sustainability word further.

Why did you decide to go carbon neutral?

All our stakeholders are concerned about climate change and they want to see action. It’s now at the core of our operations. Every new product now goes through a [triple bottom line] checklist: environmental and social impacts of a product, change or initiative, as opposed to just an economic perspective.

How long did the carbon neutrality report take?

URS environmental consultants built a model that took nine months which was then verified by Energetics before receiving Greenhouse Friendly certification from the government.

Who sets the parameters for lifecycle assessment?

A lot of printers will be aware of ISO14001 for paper. The ISO14040 series recommends and details what’s included in environmental management and principles of life assessment. Using international standards means it’s clear what should be included. Our approach is, if something wasn’t built for use in our lifecycle, we wouldn’t include that material. For example, we include the energy used by a consumer doing an online search, but not the energy that would have gone into making their computer.

Would you consider abandoning printed directories altogether?

Forty per cent of Australians still use the printed version each week. We’re unapologetic in that we give consumers choice. If they don’t want a directory, they can opt out. Paper was part of the reason for going carbon neutral, but there are also a lot of good qualities about using paper, like its recyclability.

How much are consumers driving the push to carbon neutrality?

Australians don’t tend to take to the streets, they just stop using products. If businesses are smart they will get ahead of the curve and make sure they are as sustainable as possible.

Why did you do the Sustainable Growth book?

Ninety per cent of our advertisers are small businesses. From all the research we’d done, small business genuinely wanted to do something, they just didn’t know how. They’re time poor and they don’t have the resources to seek help from consultants.

How important is having third-party independent verification?

That’s critical. It gives credibility to the program.

What are your Scope 3 emissions and how do you look to reduce them?

As part of our [carbon neutral] claims, our supply chain is included. Our job is a lot easier because most suppliers have started doing their own lifecycle analysis and looking at ways to reduce emissions. The number of printers using waterless printing, vegetable-based inks, and working on reducing electricity, is extraordinary. But all new tenders and contracts with major suppliers have sustainability guidelines in them. It’s a triple-bottom-line approach which details how we expect them to treat their staff and how they interact in the local community. But it also details how we expect them to take responsibilty for their environmental footprint.

What sustainability expertise have your designers Studio Periscope offered for your sustainability report?

They recommended reducing pages, chemicals and glues in our binding, and making sure the amount of trim is minimised. From our directories perspective – which are designed inhouse – how we paginate can have a significant impact on the number of pages we have, [especially when you] multiply that by 20 million directories.

What are some easy first steps for the design community? 

There are lots of resources for small businesses: order a free copy of our Sustainable Growth guide (http://about.sensis.com.au/Small-%20Business/Free-Sustainable-Growth-book) or visit the Carbon Down website (www.carbondown.com.au)

Bill and Kay Jones bought a bankrupt fabric company and transformed it into a world leading, environmentally sustainable business. The winner of the 2007 Premier’s Sustainability Award for small business and the United Nations Association of Australia World Environment Day Award two years in a row, Sustainable Living Fabrics produces over 400 fabrics certified with independent green credentials. Bill Jones explains the benefits to the bottom line.

What inspired you to go ‘green’?

We realised customers were interested in going green. Our competitors were saying how green they were, but we had no way of telling. And we didn’t want to talk green without actually being green. The only way to get that message across was to be third-party certified.

How far has your company come?

When we started we had nothing to offer environmentally. Today, I think the awards prove we are a world leader. We were invited to attend last year’s United Nations World Leaders Summit – 120 business leaders were invited to New York in preparation for Copenhagen. At our table was the head of Philips worldwide.

How have you benefited economically?

Before, our whole ethos was making products at the lowest price we could. It became clear that there would always be someone who would undercut it. We needed to appeal to a wider group of potential customers, which included designers and architects.

Were there additional costs to going green?

Definitely. But we were able to increase our margins so we were at the same price level as our competitors, and we sold to a wider group of people and increased the demand. We wound up getting a higher proportion of our product specified by designers and architects than we had before.

How long does it take to turn a profit?

About three years from when you decide to do something. Economically, we’ve substantially increased our margins by 20% and sales by 30% over three years. But we didn’t go above a market price. It’s not about charging a premium for being green.

What benefits have you seen from the sustainable strategy?

It empowers our employees to spruik what we are doing, because they know it’s third-party certified. We’re now tapping into a lot of designers. We sell overseas, which we didn’t do previously. That is the future for expansion.

Should governments do more?

Governments should be involved in ecolabelling and not standing back, saying private enterprise leads things. The government should also be specifying carbon-neutral products. And its superannuation schemes should be driving companies to think long term, not short term.

How did your supply chain react?

Some were interested in change, others thought we were mad. Over time it has become a bigger issue. You now see some big American labels trying to ensure their supply chain doesn’t employ child labour. Today suppliers are more interested, and that’s why the price differential has gone down.

What changes did you make to the supply chain?

Textiles historically have been bad for the environment because of effluent – mainly from scouring, dyeing and finishing. We changed our wool source to one that was basically chemical-free and the scouring detergents were biodegradable, so the effluent from this process no longer damages waterways. Another result is that solid waste from scouring can be used as fertiliser. A host of dyestuffs has also been eliminated.

What sort of packaging do you use?

We recycle plastics and board, mainly post-consumer waste.

What advice would you give to designers in terms of eco-design?

Seek third-party certification. And maintain the integrity of their green decision. A lot of designers specify something, but it gets changed by clients or manufacturers.

What is the ‘Give back 40’ program?

We give employees 40 hours paid leave a year to work within the community.

Are there any inspirational references you recommend?

The documentary Global Dimming explains why you would want to reduce your carbon footprint.

Greg Bourne represents the changing face of the green movement – and of business. A former oilman, he’s currently CEO of the WWF where he regularly works with business and government to find solutions with a triple bottom line. Indeed, like the businessman who developed and encouraged the notion of Corporate Social Responsibility, Bourne is part of a generation of business leaders who’ve seen the writing on the wall: resources are finite, alternatives must be found. And design too has an essential role.

What impact can environmental sustainability have on social and economic factors?

From a business perspective, reducing a firm’s footprint not only allows for better environmental outcomes, but also better social outcomes and economic outcomes in terms of its profitability and longevity.

Is it led by consumers pushing business to do this?

One certainly is consumer activism. It also comes from the top of some firms when they realise that in the long run they are going to be out of business unless they find a more sustainable way to go forward. Pressure also comes from government – rules and regulations are changed. The final one to become important is at the large retail end where companies have the ability to ensure bad products are not on shelves. So, within the supply chain, being able to intervene is really key.

Has the rate of adopting a triple bottom line (TBL) been fast enough, and what would it take to accelerate change?

‘As you raise the bar, the game is high jump, it’s not limbo’. It accelerates because the top quartile of companies are already there. And given that everyone wants to be in the top quartile, not the fourth, then it accelerates because momentum is created. As long as society wants environmental and social performance improved by firms, the bar raises. The moment the general public takes their eye off the bar, there are other firms happily eroding the standards and bringing them down. So it’s a dynamic process.

What’s the role of WWF in lobbying business to consider environmental sustainability?

We see our role as working on how you find a solution. Working with business and with government is the area we find most fruitful with regard to the footprint of a particular firm or sector.

Can you give an example where WWF was particularly successful?

The Forest Stewardship Council is an organisation ‘birthed’, as it were, by WWF primarily a bit over a decade ago. We wanted to ensure that the forest being used had passed very stringent social, environmental and economic criteria. It is effectively an embodiment of the triple bottom line.

What’s the role of government?

Were all governments required to print only on FSC papers with non-toxic inks it would send a really powerful signal throughout the whole of business, and then things would change. Awareness plus action is the real key.

Is it too easy to say it’s up to clients to lead this?

It does come from the client, but it also comes from the design end, no doubt about it. I’m absolutely sure the top quality firms who are commissioning lots of work will be buying from the leaders in the design industry and raising the bar.

What are three easy first steps for the design community?

Being aware of the environmental and social impacts of your design processes is the first thing. And then saying, ‘How would I push this? How would I make this more environmentally friendly, more socially friendly?’ And then unashamedly, ‘Can I make a margin out of it? Can I bring that attribute into my product and service and improve my economic bottom line?’.

What are the most pressing environmental issues in Australia today?

Climate change tends to dwarf everything that is changing around us.

How well does Australia rate in terms of environmental sustainability issues?

In terms of the consumption of land, energy we use, and food fibre and produce we use to support our lifestyle we have the fifth highest footprint on the planet – and high is not good.

What’s an essential information resource on environmental sustainability?

The United Nations Millennium Goals site:

www.un.org/millenniumgoals

Global Reporting Initiative:

http://www.global reporting.org

Living Planet Report 2008:

http://www.panda.org/about_our_earth/all_publications/living_planet_report

Joost Bakker is an artist who provokes questions about the way we (re)use the materials in our lives. Challenging notions of what sustainability can involve with beautiful, surprising and deceptively simple designs, his initial floral work for Melbourne restaurants and bars has led to everything from public installations to large housing solutions. After creating his Greenhouse restaurant in Melbourne’s Federation Square using completely recycled and sustainable materials (with a functioning roof garden), Bakker successfully replicated it in Perth to much excitement.

Bakker’s family migrated to Australia from Holland when he was nine years old, and has a long history of farming flowers. With his inventive eye for what others might term rubbish and a deep connection to the spaces in which we like to gather, Bakker is a natural fit for our social sustainability spotlight.

www.joost.com.au

www.greenhouseperth.com

Has your work always had a sustainable bent?

I’ve always found life in what other people see as waste. Once you’re interested, you start to get an understanding of how complex something like recycling actually is. Take the sticker on an apple. Making compost, I keep coming across these little stickers and thinking, ‘why couldn’t we use something that breaks down organically, instead of plastic?’ And I’ve always wondered why you’d buy flowers in Queensland and send them to Melbourne. It’s never made sense to me.

How did you go from working with flowers in small social spaces like restaurants and bars, to bigger work with other materials?

You do flowers in a restaurant and become friends with the people who own it, then they might ask for help with something else.

Is there an educational element to your work? 

I’m not into hammering things down people’s throats. I just do it, and if people like what I do, great – but it’s up to them to make change. And it is up to people, not government. People have to demand change. So I figure I won’t ram it down people’s throats, which means they might not pick up on some little details in my work. But I also like the idea that people who’ve been coming to Greenhouse for four months will suddenly notice something different.

Tell us about the Greenhouse in Perth.

It’s right in the heart of the city and will stay there for 10 years. We make everything there; yoghurt, fetta, jam; we’re milling our own wheat from a farm outside of Perth and making our own bread and pasta. It’s much busier than Melbourne and way beyond what we expected.

How do you feel about the response?

I’m shocked. As an artist I’m always doubtful people will appreciate an idea I have, but Perth must be ready for it. Somebody bought a piece at an exhibition back in 2002, and said, “I don’t like it, but I know I will. I know your stuff grows on me.” If you instantly love something, you can only grow to dislike it. If it slowly grows on you, I think you’ll have a better  appreciation of it.

Would you like to do more than simply make things?

I get asked to sit on panels and so on, but I’d rather keep doing stuff. I think that’s my role.

What are some of the problems thatcome up when businesses don’t take social sustainability into account?

A good example is the lack of focus on local communities. My daughter’s school is currently having an extension built. I pushed for them to use local builders, but they had to use governmentapproved contractors who ended up coming from the other side of the city.

If you had builders who live nearby working on this project, not only would you be reducing pollution and transport, they would take a lot more pride in theirwork than someone who’s more interested in finishing up in time to miss peak hour traffic.

Do you see business benefits from socially sustainable ideas?

Look at Greenhouse. If you run a business that sells food in Perth and you’re quiet, and you look across the road at a place that’s milling their own grain, growing their own vegetables, using cuts of meat that nobody normally wants and they’re busy, then you’d want to investigate.

What does sustainability mean to you?
At PwC sustainability and our approach to Corporate Responsibility is the integration of four key areas: Community, Environment, People and Marketplace.

What was the catalyst?
In business there has been a growing recognition of the need to take responsibility for social and environmental impacts of our actions. This makes sense because in the end there is no good in being a successful business in a failed world.

How do you approach sustainability?
How is the strategy developing?
Being sustainable is about taking responsibility for minimising the environmental and social impacts of the business. Initially this had positive business benefits; saving money was a direct benefit. A much greater driver for what we are doing is to ensure that we remain relevant. Today our clients are asking us about what we are doing to walk the talk on sustainability to the point that we have to integrate sustainability into our decision making and procurement processes.

What do you understand by Triple Bottom Line reporting?
Actively measuring, monitoring and reporting not just on economic but environmental and social performance.

Why do you think it is important?
You manage what you measure. So once there is a commitment to report on non-financial indicators the business starts to align its focus on these areas to drive improvement. Analysts and shareholders are already looking at companies’ progression of environmental and social performance.”

How do you conduct your reporting?
Increasingly companies are including non-financial data in Annual Reports which is a great way for delivering comparable data such as GHG data. Yet there is also a great deal of power in communicating stories and qualitative data about what achievements are occurring, particularly in community engagement. In the UK many companies are holding stakeholder forums to share and communicate their results.

What drives you personally?
What drives me is thinking of the positive impacts business can have. Many companies don’t see that they can be a force for good. The key is not to do it because the business feels compelled to but to do it but because it is right for business. If built into the way you do business you always see benefits
that come back to a business.

How has it improved business efficiency, minimised waste, decreased footprint, changed your processes?
In many ways. There has been a big focus on reducing greenhouse gas emissions. One great result is that we have reduced our air travel by 21% simply by improving the quality of the video conferencing facilities and encouraging people to think twice before booking flights. So not only a significant
reduction in emissions but a direct cash saving as well.

Has it had other benefits e.g. increased employee retention, improved employee engagement (quality of work life), focused effort on social responsibility?
Yes. In our recent annual staff survey, 76% of employees indicated they are happy with the way PwC is addressing its impacts on the environment. We have great staff engagement in this area.

How has it helped economic performance e.g. lower business costs, increased profits, minimised business risks and threats to reputation, increased shareholder confidence?
We have recently won an engagement to assist a client with the structure and reporting of their GHG accounts simply because they were aware that we ourselves had prepared a report. Learning by doing really makes us credible in the marketplace.

What role is design playing in driving sustainability?
Design plays a fantastic pivotal role in bringing about sustainable outcomes. By designing with sustainability in mind at the beginning of the process, new materials and energy efficiencies can be built into the production.