Dr Nick Fleming, Chief Sustainability Officer CMIC Conference, 20 September 2012
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Transcript of Dr Nick Fleming, Chief Sustainability Officer CMIC Conference, 20 September 2012
Demystifying sustainability to create profound business improvement – practical insights from
real experience
Dr Nick Fleming, Chief Sustainability OfficerCMIC Conference, 20 September 2012
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Key messages
Sustainability issues are escalating, not diminishing
Sustainability provides a powerful lens and trigger for business improvement if approached practically and strategically
Well governed businesses are establishing a sustainable competitive advantage because they have bothered to pay attention
Introduction
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Factors influencing success
Introduction
1970 1980 1990 2000 2010 2020
TimeCostQuality
Growing sustainability focusand business complexity
TimeCostQualitySafety
TimeCostQualitySafetyWaste
minimisation
TimeCostQualitySafetyWaste
minimisationResource
efficiencyCarbon priceClimate riskBiodiversity
maintenanceCommunity
livelihoods
Projectdrivers
InsurersFinanciers
Inst’l investorsStock exchanges
ShareholdersCustomers
GovernmentsLobby groups
InsurersFinanciers
Inst’l investorsStock exchanges
ShareholdersCustomers
GovernmentsLobby groups
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‘Fit for purpose’ assets
Commence and remain affordable (viable)
Highly efficient and operate with a small ‘footprint’ (efficient)
Make sense as a piece in the wider infrastructure puzzle (relevant)
Are valued by stakeholders now and over their operating life (constructive)
What does sustainability mean in practice?
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‘Fit for the future’ enterprises
Viable – compliant with laws and regulations, managing risks Efficient – managing costs, reducing resources and eliminating waste Relevant – producing valued goods and services ‘fit for the future’ Constructive – contributing to social well-being, and so maintaining a ‘social
licence to operate’
What does sustainability mean in practice?
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Number oforganisations
Strategic
leaders
Aiming for
compliance
Proactivelyresponsible
Managingrisks
Policy expression
Practical action
in operations
Bridging the ‘policy-practice gap’
What does sustainability mean in practice?
making sustainability real
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Bridging the ‘policy-practice gap’
What does sustainability mean in practice?
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Goulburn Valley Water
Case Study
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Goulburn Valley Water – embedding sustainability
Case Study
Plan Policy
Actions
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Goulburn Valley Water – embedding sustainability
Case Study
Business excellence framework
Hardwiring into operations
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Goulburn Valley Water – embedding sustainability
BEFORE Confused leadership Sustainability = environment No strategy Internally focused, office-based
activities Lead by 1 person, staff cynical Safety culture Misaligned operations Office and field operations silos Little improvement focus
and knowledge sharing
Case Study
AFTER Aligned leadership, clear strategy Sy = economy, society, environment
(finance, customer, environment) Customer, supplier and staff focus Leaders guide but owned by all staff TBL culture Aligned operations working for
continuous improvement (‘Sust. Excellence Framework’)
Shift to whole-of-life value creation More team-work, less re-work
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Goulburn Valley Water altered business model
Case Study
Bruce Hammond, General Manager of Technical Services, said “It was SKM’s work with GVW that helped us realise that ‘core business’ for us is as much working with the regional community to keep it strong and prosperous, as it is providing water supply and managing wastewater. It opened our eyes and lead to the Precinct initiative.”
Buffer Zone Boundary
Buffer Zone Boundary
Shepparton WWTP
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Goulburn Valley Water altered business model
Synergistic operations Wastes into resources Creating regional
economic growth and jobs
Liability to income generating asset
Enhanced brand, reduced costs
Case Study
GVW biogas storage
DiamondEnergy
VeoliaEnv Services
Western Composting
Construction Construction Waste RecoveryWaste Recovery Kinetic Kinetic
Renew-Renew-ablesables
Solar PowerSolar Power
BiosolidsBiosolidsprocessingprocessing
FarmingFarming
Tree lotsTree lots
FarmingFarming
Aerobic LagoonAerobic Lagoon
Shepparton WWTP
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Observations
You can ignore sustainability as a term, but not the issues, risks and opportunities.
Is your organisation ‘fit for the future’? Well run, progressive organisations are asking themselves this question.
If approached in a pragmatic yet strategic way, sustainability can trigger and unleash substantial business benefits beyond efficiency improvement
Concluding thoughts