Sustainable Management
Helo123
5.pptxWeek 4 in Review: a Sustainable Business Strategy
Let’s consider sustainability champion Interface as an example of how best to achieve integrated sustainability! This purpose-driven organization has utilized all five steps, as described last week.
Schedule & Learning Objectives
Energy 101
Energy: Business Critical
Case Study: AB InBev & Veriform
Environmental Management Systems (EMS)
Introduction to Case Study
Energy 101 Energy: it makes the world go ‘round!
How would you life change with the end of cheap oil?
Energy: Business Critical
Energy is business critical:
Represents a significant cost
Represents a variable cost
Energy & Sustainability
Global energy use is a major contributor of unsustainability, including (but not limited to!):
Social injustice - paradox of plenty/resource curse
Land-use change
Greenhouse gas emissions (~80%), which cause global warming
International Efforts
In 1995 the United nations Framework Convention on Climate Change (UNFCCC) held the first Conference of the Parties (COP) in an effort to address global warming
In 1997, the Kyoto Protocol was opened for signatures
Today, the Paris Agreement requires nations to reduce emissions of global-warming causing greenhouse gases
Governments have responded by creating regulations and rules to encourage compliance with the Paris agreement – some corporations are acting on their own
Case Study: Energy Sustainability at AB InBev
A variety of projects and policies have been adopted (A Better World campaign) to support energy reduction efforts
Guiding their sustainability efforts are 8 of the SDGs
While a variety of factors motivate their efforts… “more beer sold!” is the driving force
Case Study: VeriForm
Local metal fabrication company established in 1996 and located in Cambridge, ON
Manufactures custom parts for a variety of industries – mining, forestry and renewable energies
Process for improvement:
Baseline
Benchmark
Recommendations (supported by financials)
Environmental Management Systems (EMS)
An EMS is a set of management processes and procedures that allow an organization to analyze, control and reduce the environmental impact of its operation and services (EPA, 2013)
An EMS can be part of quality management or may stand alone
An EMS does not dictate a specific level of environmental/social performance; each company will have a unique EMS based on their goals/business model
Environmental Management Systems (EMS)
The most well known and arguably most frequently used EMS is the ISO 14000 (1996) family
It is “…a series of international standards on e.m. It provides a framework for the development of both the system and the supporting audit program” (ISO, 2017)
The total number of ISO 14001 certifications in 2015: at least 300 000, in 171 countries (ISO, 2017)
What are benefits associated with certification?
In an increasingly global business marketplace, what may be some benefits/drawbacks of certification?
Does the organization that you selected for the course project have an environmental management system?
Is there evidence of the Plan, Do, Check, Act cycle for continuous improvement?
How does the organization measure sustainability? (i.e. what metrics do they measure?)
Is ISO 14001 part of the EMS strategy? Or, are they using another framework?
Sustainable Operations Planning Stage Step 1 – Baseline
Baselining is the process of assessing “where you are at”
There are various tools that can be used, including process mapping, checklists and data collection
Let’s look at an example!
“You can’t manage what you don’t measure!”
Sustainable Operations Planning Stage Step 2 – Benchmark
Benchmarking is the process of assessing where peers and leaders are at
Process benchmarking is when you research leading efforts within the same industry, while strategic benchmarking is when you focus research on a leader
Let’s look at an example!
“No need to re-invent the wheel”
Sustainable Operations Planning Stage Step 3 – Recommend
Based on your research, identify best practices that may be applied
Assess for fit: remember, you can’t put a square peg in a round hole
Assess for feasibility: recommendations must be cost effective
“Customize best practices”
By implementing ~45 energy- and waste-saving projects between 2006 – 2008 at a cost of $46 186 Rak reduced energy costs by $89 152/year
| Project | Cost ($) (A) | Annual Savings ($) (B) | ROI (B/A) | Payback (A/B) |
| Replace lighting | 8 000 | 20 916 | 2.61 (260%) | .38 years (4.6 months) |
| Raise power factor (machine efficiency) | 11 285 | 24 118 | ||
| Programmable thermostat | 1 200 | 13 911 | ||
| Heating disconnect on bay doors | 1 200 | 7 893 | ||
| Turn off peripherals at night | 250 | 2 978 | ||
| Print double-sided | 320 | 1 200 |
Introduction to the Case Study
Goal: the case study requires you to think like a manager – can you save money by improving operational sustainability?
Work through steps required in an EMS;
Baseline
Benchmark
Recommendations
Value – 20%
Due March 23rd
Summary & Next Steps
Why is energy business critical?
What is an EMS and how does it support sustainable operations?
Next class – GHG/Waste Management
Complete the assigned reading via E-Conestoga
Work on case study/CP
