Into the future - What could New Zealand look like in 2050, and will your business be there?
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Into the future
What could New Zealand look like in 2050, Annual
Review:
and will your business be there? 2011
Dedicated to making a difference
Putting sustainability In this review...
on the agenda for the future WELCOME
T
he establishment of the New membership value. This was in project for their respective countries. this review. …to the New Zealand Business Council for Sustainable Development’s 2011
Zealand Business Council response to member feedback in the Locally, we have deliberately Collectively, annual report.
for Sustainable Development five-year strategic review conducted engaged future leaders (under the they unselfishly
Inside you will find stories about some of the projects we and our members
in 1999 was based on the need early last year. Members said they age of 35), on the basis that they support the
to promote sustainable business wanted increased participation of will be around in 2050 to witness important work have been involved in this year. It has been a busy and difficult year for
practices in New Zealand. members, less government-policy the reality of the vision they have of the council, many people, and we are pleased to report that for our members at least,
At that time, this was not a lobbying, more quality projects, more helped to deliver. More than 30 of despite the added financial pressures sustainability is still an important part of doing business.
universally accepted concept, and the collaboration with other business New Zealand’s leading companies of a flat economy.
NZBCSD provided important leadership organisations, and closer liaison with and their CEOs are participating I particularly want to thank those
and direction for companies which the World Business Council. Good in this important project. member companies who have INSIDE
embraced the challenge of building progress has been made on all of The Business Council’s mission is committed considerable time and
a sustainable future for our financial, these in the past year. based on developing a sustainable effort beyond their subscription Welcome to the future:........................................................................... Page 3
physical and social environment. As a result of this focus we have financial, physical and social payment. Whether it is serving on the The Business Council’s ground-breaking Vision 2050 plan.
Over the past 12 years, our work substantially reduced the footprint environment for New Zealand and executive committee or participating
has been a catalyst for advances of our permanent office structure for all New Zealanders. In recent in project work, these member Walking the talk:.................................................................................... Page 6
in key policy areas of sustainability, to allow funds to be directed into years, the global financial crisis companies are the backbone of the Why business should have a seat at the table with government
and our members have been leaders specific project work. This has has exposed the powerlessness of organisation. when it comes to dealing with social issues.
and role models for the wider allowed the Vision 2050 project many governments to deliver this At the time of writing this annual
business sector. to be managed by a contracted sustainable future, and, increasingly, report, we are actively exploring an Transport systems of the future:............................................................ Page 7
What New Zealanders want, and how we can deal with expanding freight volumes.
“If New Zealand can be a leader in sustainability, our products and services will have growing appeal Business Council members taking sustainability into their
on the world’s market, leading to improved standards of living and quality of life for all our citizens. businesses and their communities:........................................................ Page 8
Fonterra’s breakfast programme for kids
The founders of New Zealand Business Council for Sustainable Development will be well-pleased
Aurecon’s green buildings
that the importance of their creation is as relevant now as it was 12 years ago.” T he Warehouse and Progressive Enterprises embrace recycling, and The
Warehouse’s ethical sourcing programme
In the past year, the council has specialist and be governed by a it is businesses and their customers exciting opportunity to join forces
Growing financially sustainable futures at Urgent Couriers
continued to make an important project team comprising member who will need to step up and with another organisation which
contribution with the release of two CEOs from our executive committee. voluntarily lead the way. will greatly advance the original BMW’s car of the future
major projects – Freight Futures NZBCSD is now supported by a If New Zealand can be a leader aspirations of our founders James & Wells’ history of sustainability
2050, and the Social Role of Business, virtual office arrangement and an in sustainability, our products and to “mainstream sustainability Product stewardship at 3R
both of which are featured in this operations manager (Graeme Colman). services will have growing appeal in business”.
Watercare’s plan to cut water waste
publication. The increased flexibility of this new on the world’s market, leading to
Vision 2050 was the major new arrangement has facilitated a closer improved standards of living and Toyota’s hybrid is tested in New Zealand
work initiated this year, localising a working relationship with other quality of life for all our citizens. Managing risk is core business for Sovereign
global initiative of the World Business business organisations and made it The founders of New Zealand
How Ricoh is helping customers go green
Council for Sustainable Development. easier for non-member companies to Business Council for Sustainable
The project looks at what a sustainable participate in our Vision 2050 project. Development will be well-pleased that New URS data centre a world leader on sustainability
New Zealand society might look like As I write this, Vision 2050 is entering the importance of their creation is as Living Earth turns urban waste into rural gold
in 2050, and develops the critical its final stages of development, and is relevant now as it was 12 years ago. Bob Field Sustainability pays off for Interface NZ
pathways to deliver that vision. likely to produce a valuable shopping list I would like to once again pay Chair A sustainable vision at Les Mills
A description of this project is of priority projects for future years. tribute to our loyal members.
NZBCSD
contained later in this annual report. The report will be peer-reviewed, Individually, they are all sustainability
The past year has also seen us with other regional offices of the World leaders in their respective fields, as The New Zealand Business Council for Sustainable Development is dedicated
continue to seek new ways to increase Business Council undertaking the same evidenced by the case studies within to making a difference. Find out more about membership on pages 16 and 17.
PAGE 2 NZBCSD Annual Review: 2011
Dedicated to making a difference
Welcome to the future We also needed a “positive To date, the project has engaged
I n last year’s review, we summarised a bold report by the World Business Council on what the world could imagination” for each element that some of New Zealand’s best existing
supports the attainment of our overall and emerging business talent.
look like in 2050, and outlined plans for a similar report on New Zealand. This year, we bring you a glimpse vision. To articulate this we needed to There is good progress towards our
of that future. “get into the future space”, which is deliverables in December and to have
challenging when we spend so much a Vision 2050 NZ design and platform
Over the year, the New Zealand Business Council for Sustainable Development has brought together current
of our time in the here-and-now. But that is uniquely ours. We will have
leaders (22 top chief executives) and future leaders (aged under 35 years) in working sessions and asked once we get the current state and established the right ingredients
them to talk about how New Zealand might be affected by issues like population growth, climate change and positive imagination, the milestones, for a successful start to what is an
resource constraint. opportunities and risks associated important project for New Zealand and
with the pathway between the two New Zealanders.
Vision 2050 NZ has been led by KPMG sustainability director Jamie Sinclair, who says that the can be described.
All of this is iterative and there is no Future Leaders
wealth of ideas and possibilities for the future is inspiring. The report is due for release in December.
“right” answer. The intention is that the This project is being run by an
Here, he outlines how the team has gone about looking into the future: impressive group of 30 “future
work inspires with the possibilities, and
it gives others something to build on. leaders” – under 35 years and
The release of the report in nominated by their organisations.
Vision 2050 – an important aspirational vision for New Zealand and state – the current trends and statistics
n
a framework to think about how we December will be the start of an on The spread of organisations
Vis2io050 project for New Zealand in relation to each area. For example,
might get there. It takes the form of a going series of work for the Business involved is also impressive, from
for forestry, we needed to understand
Vision 2050 NZ has been an amazing series of pathways for key elements of Council to extend the Vision 2050 sectors including banking, insurance,
sines
s the status of New Zealand’s forest
da fo
r bu brief
project. Its relevance and importance is New Zealand’s future, such as mobility, NZ findings. The intention is that the forestry, research, agriculture, waste
crop, what the key challenges were,
en in
new ag
The
due not only to the proposed outcomes, energy and power, tourism, and NZBCSD will not be alone in this task; and tourism. This is their project; they
who was involved, the state of the
but also due to the process and thinking materials and waste. there will be a community and means are delivering all key aspects of the
global market for timber products, and
behind the work. For each of these, we went through to involve others in the process in a project (under the guidance of the
New Zealand’s position.
Bus
Wo rld abl e
Sus
t ain
Cou
ncil
ine ss elo pm
Dev
f or
ent
Our project aims to deliver a strong, a process of understanding the current collaborative and innovative way. project manager), including:
Forestry will be an important part of the New Zealand of 2050. Vision 2050 drew together an impressive group of future leaders from across the economy.
NZBCSD Annual Review: 2011 PAGE 3
Dedicated to making a difference
Welcome to the future
Chief Executives The report will outline the key
The world in 2050 Twenty-two of New Zealand’s most elements of the process and key
outcomes relating to the pathways.
experienced chief executives came
together to engage with the Future The report will be accessible and
The World Business Council’s Vision 2050 Leaders team and to perform a critical usable as an educational tool, but will
report identified business opportunities review of the work performed. have the rigour associated with the
This was incredible. The review and quality.
worth trillions of dollars a year, ranging from perspective of the Chief Executives A Vision 2050 NZ website is critical
was subtly different from that of the to ensuring we maintain momentum
maintaining low-carbon, zero-waste cities, Future Leaders; they were much beyond the end of the initial phase. It
more quickly able to put themselves creates a sense of permanence about
mobility and infrastructure, to improving into the future, and tended to have a the project which will help attract and
more rounded big-picture view of the retain the top talent we have involved.
and managing bio-capacity, ecosystems, pathways and milestones. The tools will be interactive in
lifestyles and livelihoods. This was fascinating to observe. nature, and will be focussed on
The feedback from the Chief Executive enabling organisations (and potentially
It also predicted that political and business review was very positive in terms of individuals) to conduct their own
the process and team involved. Their “vision” exercise.
agendas will shift from thinking of climate comments on the mural and pathways The work plan comes from the
were constructive. fact that while Vision creates a
change and resource constraint as problems starting point and framework, much
Tools and reporting more will be needed to deepen the
(Continued from prevoius page). significantly, and the team left workshop to seeing them as economic opportunities. Expected deliverables for the
understanding or to deal with specific
one feeling inspired, but still under no December release will include:
Pathway development issues. The NZBCSD will own the work
illusions as to the extent of the issues.
Website design Vision 2050 NZ report plan, but it may be delivered by others
Workshop days two and three started
Review and reporting Vision 2050 NZ website or in collaboration with NZBCSD.
putting more meat on the bones. This
Communications Vision 2050 NZ tools
meant clarifying the vision for each
Tools and engagement design. Future work plan
pathway and designing the mural with
To begin the process, the Future Leaders the milestones, risks and opportunities.
were involved in three intensive days of This process was intensive, but to see the
workshops to kickstart the necessary mural come together and be presented on NZBCSD Vision 2050 pathways
future thinking, and to design the first- the wall was a huge boost for the team.
cut pathways and mural of the future. By the end of day three, it was clear that Marine Agriculture
This process was fascinating. The initial the team involved owned the project and
workshop required the team to think about would not let it go. In terms of an outcome, Human development Cultural diversity
the challenges facing New Zealand now. this is a very significant development. The
This created a sombre mood amongst the great work done by this team illustrates Economy Mobility
Future Leaders, who realised the enormity what is possible when inspiration and the
and urgency of the challenges facing New right direction are offered. Buildings Forests
Zealand and the world. The Future Leaders group now owns
But as we moved more into the future the process for reviewing and updating Materials Energy and power
space, the Future Leaders began to the mural, and for developing the tools and waste
articulate the positive vision associated and communications associated with
Tourism
with each area. This changed the mood Vision 2050 New Zealand.
PAGE 4 NZBCSD Annual Review: 2011
Dedicated to making a difference
The Vision 2050 project
FUTURE LEADERS VISION PATHWAYS
7 million people, living well and within the limits of the planet
Pathways added: Enablers:
• Cultural Diversity • Values
Inequality Emissions
• Marine • Equality & Opportunity
Productivity Water Quality
• Tourism • Environmental Integrity
Innovation Biodiversity
Pathways removed: • Market Systems
Health & Education Renewable Energy
• People’s Values • Global Access
Crime Soil Health
Sense of Place
THE MURAL RISKS OPPORTUNITIES
Global Natural Short term
Niche technology
challenges disasters cycles Forestry management
Agricultural systems
Collaboration
Emerging markets
Waste
Infrastructure Government Cost &
constraints mandate commitment
VISION TO ACTION DRIVERS OF CHANGE SUCCESSFUL BUSINESS IN 2050
Business Role
Capability Supply chain traceability
Corporate ecosystem system valuation
Chapters: Categories: You want to be a successful business in 2050:
energy social
Embracing diversity
What pathways will impact on your business?
Business Opportunity Financial literacy waste technological
Toolkit Maori business
water economic
What are you doing now that you won’t be able to do in the
future?
Vision Website Sector Projects climate change environmental
Buildings – Energy Efficiency demographics political If you stay the same will you still be in business in 2050?
“Vision to Action Forestry – Biodiversity urbanisation Why? Why not?
Roadshow Materials & Waste – Organisational
Behaviour poverty
Vision 2050 Youth Program Agriculture – Traceability
Mobility – Integrated Transport
NZBCSD Annual Review: 2011 PAGE 5
Dedicated to making a difference
Walking the talk More than just the
right thing
Why business should be involved in the Why do businesses get involved
decision-making on social issues in social issues?
Business needs a seat at the table when The report says that while it is is to effectively negotiate how it
it comes to addressing New Zealand’s obvious that business has a role to participates in social growth as
social issues, says research released by play in providing employment, it has an active partner, becoming more
the Business Council this year. the capacity to help improve New engaged in developing solutions
The Social Role of Business report Zealand’s social environment in lots of to broader societal problems by
says that in this country, business is other areas too. working alongside Government and
not recognised as a key stakeholder “Business is keen to share the NFP sector,” the report says.
in social issues, despite the fact that capability and resources and work in
it can play a vital role in addressing partnership to building capacity,” the
problems like child health and neglect, report says.
unemployment and crime. “Government often talks to not-for-
It says this lack of recognition could profits about social and community
be due to an absence of a business- issues. Business may also have views
led body to co-ordinate involvement that could provide value.”
in these issues, and recommends While not-for-profits are good at
investing in the establishment of a identifying problems and can often find
Business and Community Engagement local solutions, the report says, they
(BACE) organisation. often struggle to get to a national scale.
Sustainability is about looking after the
needs of the current generation without
reducing the options for future generations.
The Social Role of Business Report says that most chief executives would simply
Such an organisation would: “Business has experience in say that it is the right thing to do.
Put business at the table when social taking solutions to scale and creating But there are also strong business arguments to be made, including:
issues and priorities are discussed self-funded models, by first finding R isk mitigation, through the development of good community relationships
with Government, to ensure the out what works and then making it and mutual understanding.
business perspective is understood. the normal process, with flexibility to T he attractions and retention of talented employees, who see significant
Provide a sounding board for respond to localised variations across corporate community engagement as an important aspect of their association
business ideas on social innovation New Zealand.” with the company.
or community engagement prior to Business experience in meeting the N
ew or strengthened relationships with customers and clients, which help to
discussion with Government and NFPs. challenges of keeping services going differentiate the business and its products.
H elp broker relationships between during economic recessions could N
ew opportunities for skill and leadership development.
multiple businesses and other also prove valuable, the report says. And there are wider economic reasons too. The report says that New Zealand
service providers and funders. Having the Government, not-for- business and the country as a whole cannot afford the cost of social failure,
H elp to align efforts and profits and business agree on the which brings with it:
effectiveness to focus the donor priorities for action and who is best- M ore children being raised in poverty.
dollar and volunteer effort. placed to carry out each task should A n increase in mental health problems.
R educe duplication of effort accelerate the journey to a healthier H igher taxes to pay for the unemployed and dependent.
and overheads from multiple society and a better return on the M ore crime.
businesses and agencies social investment dollar. H arder-to-fill skilled vacancies.
operating in the same space. “The challenge for business A lower standard of living and quality of life for all.
PAGE 6 NZBCSD Annual Review: 2011
Dedicated to making a difference
Transport in the future
What others are doing
How does business in other countries manage its involvement in social issues?
Why a shared agenda of
In Britain, where the direct cost of young people to be “scarred by the aim of broadening the horizons freight and supply chain issues
of unemployment has been
estimated at £4.7 billion a year, an
unemployment” poses a real threat
to employers.
of both students and their teachers.
ABCN members include Bain & should be a key part of the
organisation called Business in the
Community is developing education
The Australian Business and
Community Network also recognises
Company, Commonwealth Bank,
Deloitte, Goldman Sachs, IAG, Minter
Government’s broader strategy
and employability programmes that the economic costs of youth Ellison, MLC, PwC and Qantas, and With freight volumes expected to and the freight sector in alignment
link business directly with schools. unemployment, and has identified represents business in social and increase by more than 70 per cent to persuade motorists, taxpayers and
The organisation has more than literacy deficiencies as a barrier to community development forums, and over the next 30 years, transport ratepayers that efficient freight supply
830 company members, including employment. educates schools in how to prepare is going to be one of the big issues chains matter for future prosperity
Sainburys, KPMG, Lloyds, M&S, The Since 2005, the network has students for business. facing New Zealand. and quality of life.
Royal Mail Group and Barclays, and provided more than 7000 business Over the past two years, the The Business Council’s
warns that allowing a generation mentors to work with schools, with Business Council has undertaken recommendations also include the
a major survey of New Zealanders’ development of a 30-year national
opinions on transport, including such policy statement on priority freight “In Australia, the Federal
issues as the use of, and satisfaction corridors and regional hubs, and that and State Governments are willing to
with, public transport, and other prices be used more often to manage take the lead in developing a national
issues like peak-hour congestion environmental issues such as noise, freight and ports plan to address an
and charging, freight corridors and carbon and particulates. expected doubling of freight volumes.
regional spatial plans, and port “Based on evidence from reports If we had a similar plan for New
development. on freight in Ireland, Denmark, Zealand, it could be given expression
Respondents were overwhelmingly Queensland, Scotland and Melbourne, through a National Policy Statement
in favour of developing and using long-term planning for infrastructure founded on a detailed review of the
rail, and, to a lesser extent coastal (including a substantial transport corridor and area demands, built
shipping, to get freight off roads, component) will provide greater around intra-island, inter island,
particularly on long-haul routes. certainty for industry, help deliver import and export supply chains.
Two-thirds of respondents said investment confidence, increase Such a study would be a desirable
they do not believe that building more growth, and improve social and early priority for the new Productivity
roads and motorways will relieve cultural well-being,” the report says. Commission.”
congestion, and support paying fees to
use fast lanes.
When it comes to ports, half of the
respondents said national interests
should be put ahead of local interests,
while 40 per cent said that more than
one deep-water port in each island
would not be a poor investment.
This would be particularly useful in
an emergency, such as the recent
experience of earthquake effects on
Lyttelton.
With the help of the survey,
the Business Council has
developed a transport agenda. Its
recommendations include developing
a shared view of the future of freight,
with central and local government
NZBCSD Annual Review: 2011 PAGE 7
Dedicated to making a difference
Case studies:
The Breakfast Club – Aurecon’s response to sustainability
Kicking-starting the day for hungry kids challenges
It takes more than sponsorship to The clubs also provide space is Wellington’s largest office building
make the programme sustainable. for children to develop social and by area, and incorporates the latest
KickStart Breakfast’s success is life skills. This is where the long- environmentally sustainable design
also directly credited to hundreds term success begins. The KickStart principles in water, air conditioning,
of dedicated community volunteers, Breakfast programme has the Aurecon’s response to sustainability lighting, ventilation and energy
teachers, parents, grandparents potential to keep delivering benefits challenges is to embrace innovation management systems.
and student leaders who deliver the that extend far beyond the years and to support sound engineering Kakariki House, in Hamilton,
breakfast programme to the students children are at school by teaching research into enhanced energy, is a re-lifing of an existing retail
every week. self reliance through education. building, water and infrastructure building. Awarded a 4 Green Star –
Research by the New Zealand Child
Teachers report benefits in addition solutions that will meet the Office Design rating, it represents
Poverty Action Group in 2005 showed
to nutrition; children are generally community’s future needs. New Zealand best practice in
that 10 per cent of New Zealand
happier, have more energy and are K ids making the most of their milk The company recognises the need to environmentally sustainable design.
children start the day hungry, so in
able to concentrate longer in class. and Weet-Bix. balance economic growth with social This project recycled as much of
2008, Fonterra piloted a milk-
in-schools programme. development and the protection of the the existing structure and materials Asteron Centre, Wellington.
The co-operative then environment, as evidenced in its most as possible. Aspects of the original
recent buildings to achieve the New building are still preserved, from the refurbishment of existing buildings is a
worked with the Ministry of
Zealand Green Building Council’s Green visible struts to the polished concrete great emissions reduction opportunity
Health and the Red Cross
Star ratings, representing excellence in floors, illustrating that environmentally for our cities. Re-lifing buildings has
to ensure a sustainable and
innovative programme could environmentally sustainable design. sustainable design is not restricted enormous environmental, commercial
be created with education The Asteron Centre in Wellington to new buildings, but can work and social benefits, and should be an
and empowerment as core has been awarded a 5 Green Star. At harmoniously with existing structures. action on political and commercial
principles. more than 48,000 square metres, this Aurecon believes that sustainable agendas, it says.
The result is the KickStart
Breakfast, a partnership
between Fonterra and
Loving NZ at The Warehouse and Woolies
Sanitarium, offered to the 88 The Warehouse stores visited (by
approximately 1000 deciles 900,000 customers each week) and 156
one-to-four schools across Countdown/Woolworths stores (visited
New Zealand. by 2 million customers each week).
In June this year, KickStart In addition, selected stores in
Breakfast served its two regions that hosted Rugby World Cup
millionth breakfast for Kiwi matches trialed having recycling bins
children in more than 480 in stores as part of efforts to work
low-decile schools who with local authorities to increase
signed up to the programme The Warehouse and Progressive recycling facilities.
nationwide. The club serves Enterprises are both lending their
around 30,000 breakfasts of support to encourage their customers
milk and Weet-Bix to more to recycle.
than 18,000 children twice a The campaign is part of the Love Environment Minister Nick Smith
week, providing both nutrition NZ public place recycling campaign checks out an in-store recycling
and education, as well as co-funded by the Government’s Waste bin at The Warehouse, under the
encouraging good breakfast Minimisation Fund, local government watchful gaze of the company’s
habits that can be replicated and industry. sustainability manager,
at home. The initiative is being promoted at Trevor Johnston.
PAGE 8 NZBCSD Annual Review: 2011
Dedicated to making a difference
Case studies:
Driving financial sustainability Leading the way Social and
Paying drivers fairly pays dividends for courier company environmental responsibility have
always been the law at James & Wells
The courier market is unusual from “This pricing behaviour is putting in the region of $18 to $20 an hour
an employment perspective, because our industry at risk. Urgent Couriers after expenses.” and included directly contributing to
only a few of the courier drivers has an explicit policy of maintaining This has helped Urgent Couriers New Zealand’s economic prosperity as
are actually employees. In most pricing at a level that is fair for retain a motivated and productive a key firm mission.
Urgent Couriers says that drive for cases, contractors are paid a fixed customers, while providing contractors team of contractors contributing Recently, the firm began providing
sustainability goes further than percentage of the amount charged to with the ability to make a living wage hugely to the company’s success. A car-free initiative held on United an online service to allow affordable
addressing impacts on the natural the customer, making them extremely Nations’ World Environment Day access to trade marks and registered
environment. vulnerable to price cutting. signified James & Wells Intellectual designs for companies which cannot
Early on it identified one of the Urgent Couriers managing director Property’s full adoption of a corporate afford full legal services.
key challenges to the company’s Steve Bonnici says that in the responsibility vision. The partners also agreed to the
sustainability as the threat to its tough economic conditions of the Asking more than 50 attorneys formation of an internal committee to
contractors’ financial sustainability past two years, some unscrupulous and support staff to commute without oversee the inception of a range of
through low industry-pricing. courier operators have been offering their cars encouraged thinking sustainable policies, as well as signing
Urgent Couriers believes the substantially lower prices, which about a resource-constrained world, up to Landcare Research’s CEMARS
financial viability of its contracted means contractors earn significantly and signaled the implementation programme.
courier drivers is inextricably linked below the minimum wage of $13 of a range of policies to reduce the A core part of the new focus is
to the company’s performance. So, an hour. environmental impact of the firm’s senior partners speaking out about
in line with global best-practice “They are expecting contractors four offices. the need for New Zealand to better
sustainability, it places a major to operate for these low rates, when The firm saved 500km of travel on fund clean technology innovators,
focus on its drivers’ ability to earn a input costs, such as fuel and vehicles, the day, and the staff enjoyed a novel and involving itself with organisations
sustainable wage. have soared,” he said. Urgent Courier’s Steve Bonnici. way to celebrate the move towards which promote the move to a low-
environmental sustainability. carbon economy.
James & Wells’ founding partners To secure its future economic
VisionED: Thousands turn out to see car of the future instilled bedrock practices of economic
and social responsibility, which have
performance, James & Wells began to
form partnerships with the developers
been refined in subsequent years. They of products it is helping to protect.
A core principle of BMW’s sustainability motoring philosophy relates The BMW Group firmly believes that sustainable motoring need not mean a established supportive staffing policies, This is part of a multi-faceted long-
to efficient dynamics, using new technologies in manufacturing, sacrifice in performance or driving pleasure, and the BMW VisionED epitomises recognised the contribution made by term vision which embraces all pillars
design and construction to deliver even more efficient solutions to this philosophy. pro-bono work and community support, of corporate responsibility.
personal mobility.
To showcase these developments, the BMW Vision EfficientDynamics concept
car was created, and made its debut at the Frankfurt Motor Show in 2009.
Since that time, it has been touring the world, and visited Auckland for a
weekend in July. More than 5000 people viewed the vehicle over the 20 hours it
was on display, taking the opportunity to view the world’s greenest supercar.
This is the only VisionED show car in the world, and represents an investment
of approximately 1 billion euro. It is laden with leading-edge technology,
constructed from modern, lightweight materials, and provides strong indications
of drivetrain technology and the level of connectivity for future BMW models.
Remaining true to BMW’s value of building the ultimate driving machine,
the VisionED offers performance equivalent to a renowned BMW M car, and
efficiency better than a current-day hybrid. The BMW VisionED can achieve
0–100km/h in just 4.8 seconds, fuel efficiency is 3.76 litres per 100 kilometres,
and a CO 2 emission rating of just 99 grams per kilometre.
NZBCSD Annual Review: 2011 PAGE 9
Dedicated to making a difference
Case studies:
Waste not... Water pressure
With ever-increasing environmental gives a visible platform to promote that positioning in the
Helping Aucklanders to cut their water usage
awareness comes the constant challenge marketplace,” he said.
to develop new product stewardship Along with being ISO 14001-certified, two of the Watercare is working on a
programmes to solve common and product stewardship programmes managed by 3R Group plan =to0.07cut Auckland’s gross
x length
persistent waste problems. - Agrecovery and Resene PaintWise - are two of only six per capita consumption by
As a leader in the field of product programmes to have been accredited by the Minister for the 15 per cent by 2025.
stewardship, 3R is often the first-port-of-call for both Environment under the Waste Minimisation Act 2008. The water and wastewater
industry and consumers looking for solutions. The recent accreditation of Resene PaintWise also brings service provider’s water resources manager, Dr Deborah
length = 2 x height
3R Group and the Motor Trade Association have begun the 3R’s efforts to bring about an industry-wide paint and Lind, says that the total demand for water in Auckland is
process of developing a product stewardship programme for packaging product stewardship programme a step closer. increasing as a result of population growth.
end-of-life tyres in New Zealand. Part of the creation and ongoing management of “While individual consumption has reduced significantly
The programme will be largely shaped for New Zealand programmes like Agrecovery and PaintWise is finding over the past 30 years, the overall demand for water has
conditions by New Zealand industry stakeholders, using innovative ways to use the recovered materials, fulfilling increased as our population has doubled,” she said.
the end-of-life tyres management framework provided by the fundamental cradle-to-cradle principal. “Managing our water demand will help to defer the need
the Tyre Working Group of the World Business Council for Together with the PaintCrete Partnership, 3R is working for new water sources and related infrastructure. This will
Sustainable Development. hard to develop innovative solutions for turning waste paint assist in reducing our costs, and in keeping water prices
3R is providing expertise in bringing together the various into a useful ingredient in concrete and other applications. low, while also reducing impacts on the environment.”
From left: Watercare’s data technician Sarah Muir, and water
stakeholders and managing the work programme. The use of waste paint in high performance concrete The plan features a tool box of initiatives covering
resources manager, Dr Deborah Lind, at Lower Nihotupu Dam in
A second production stewardship programme is also potentially provides an economical solution for various issues the six Es of water efficiency and demand management
the Waitakere Ranges.
being developed by 3R Group and another business council facing the industry. approaches - engage, educate, encourage, engineer, enact
member, InterfaceNZ, which have joined forces to develop a PaintCrete was successfully commercialised in masonry and economic.
programme for solution-dyed nylon carpet tiles. blockfill in 2008, however extensive testing, research and Working with schools is one of the initiatives. Watercare is also working with Housing New Zealand
3R’s investment in continuous improvement, through the development with different mixes of paint, concrete and “It involves reinforcing positive messages about water to include water-efficient appliances when houses are
ISO 14001 Environmental Standard, has led Agrecovery Rural other ingredients in various applications, such as footpaths use as part of our existing education programme – which refurbished, and to ensure leaks are detected and repaired
Recycling, managed by 3R, to work closely with Westland and non-structural applications, continues. thousands of pupils participate in each year,” Lind said. in a timely manner.
Milk Products. One such new product is GlassCrete, which not only uses “We also plan to work with the Ministry of Education and Other actions include minimising leaks in the network and
The goal is to achieve the dairy company’s aim of waste paint but also recovered waste glass as an aggregate schools to help them reduce the volume of water used for water used for operational purposes, and working with the
ensuring that the West Coast leads the New Zealand dairy in concrete footpath construction. The environmental benefits things such as irrigation, as well as to detect leaks.” Auckland Council to find ways to reduce its demand for water.
industry in sustainable rural recycling initiatives - part are clear: less quarried aggregate, reduced greenhouse
of a wider project to maintain ISO 14001 certification at
the Hokitika site, promote
gas emissions due to lower cement content, and most
importantly an end use for recovered materials.
The Warehouse: keeping it ethical
sustainable practices to all fatigue, suppliers may seek an audit and working hours, health and
Westland staff and farmer “3R and partners waiver if they can provide a verifiable safety systems and practices,
suppliers, and to meet the third-party audit report. any environmental management
environmental expectations find innovative The Warehouse’s Ethical Sourcing This year, 31 suppliers successfully activity relevant to operations, and
of international customers. programme is used to inform the applied for an audit waiver. dormitory standards (where such
Westland Milk’s environmental ways to turn company’s buying decisions. The Warehouse completed 107 accommodation is provided). This
manager, Chris Pullen, says The changeable and highly inspections in the year, recording year, the environmental audit has
the company chose to work problems into competitive nature of The Warehouse’s a slight increase in the factories’ been extended, capturing information
with Agrecovery because of its sourcing model demands timely average scores, to 78.1 per cent, up such as the presence of controls for
willingness to tailor-make a information about a given factory’s from 75.1 per cent. wastewater or chemical discharges,
sustainability programme for the
solutions” workplace standards status. There are more than 120 and the quality of energy management
factory and farms. To address this dynamic, larger checkpoints in the audit, which systems.
“Adoption of Agrecovery’s ISO 14001-accredited suppliers are required to pre-register are grouped into five key areas:
programmes ensures that we lead the New Zealand dairy GlassCrete in Hobsonville – their factories. To assist factories in employment policies, actual practices (Source 2010 Community and
industry in sustainable rural recycling initiatives, and turning waste glass into aggregate for footpaths. avoiding unnecessary cost and audit in relation to workers’ remuneration Environment Report)
PAGE 10 NZBCSD Annual Review: 2011Dedicated to making a difference
Case studies:
A glimpse of the future Toyota New Zealand has published its
fourth biennial sustainability report,
Leading the way
Understanding risk and managing risk is
Plug-in Prius being tested in New Zealand which for the first time has been
externally assured by independent core business for the insurance industry
Published trial results have seen in the 2011 Best Global Green Brands experts KPMG to a B+ level under significantly to
fuel consumption as low as 2.2 litres report published by Interbrand. the Global Reporting Initiative G3.1 reducing long-
per 100 kilometres. In New Zealand, Toyota remains framework. term systemic
Toyota has led the development of The 2011 report, which covers the Sovereign is leading the insurance
The Plug-in Prius cars have been the only carboNZero-certified car risks, and to
hybrid technology for more than 30 two years to March 31, 2011, is called industry in coming to terms with
a hit on Massey’s campuses, as they company, and has spent the past the sustainable
years, with global sales of hybrids Resilience and describes the company’s environmental, social and governance
offer a glimpse of the very near future, 18 months shifting its independent development of
recently passing the three million mark. determined response to some of the issues.
when drivers will be able to plug dealer network to a more sustainable society.
The latest chapter in the hybrid most challenging times in its history: In August, Sovereign, along with
in their vehicles on arriving home, pathway for the future. The principles
revolution is plug-in hybrid technology, a global recession, brand-threatening the United Nations Environment Sovereign chief
uploading excess power into the In another motor industry first, speak to the very
which Toyota has been trialing globally quality issues overseas, and natural Programme Finance Initiative, the executive Charles
national grid before recharging during Toyota’s entire dealer network has core of the future
since July 2010. disasters which impacted on the Toyota Investment, Savings and Insurance of the insurance Anderson.
cheaper off-peak periods. implemented the Enviro-Mark NZ Association of New Zealand, and the
Three of the 60 Plug-in Prius cars family, customers and much wider. industry; dealing with how the insurance
In the interim, Toyota continues certification programme, and is on Insurance Council of Australia, hosted
are being tested in New Zealand in Toyota New Zealand chief executive industry should systematically consider
partnership with Massey University. to expand its range of conventional target to reach silver certification by the regional consultation meeting for
hybrids, with three new models the end of the year. Alistair Davis says external assurance and manage ESG issues in core
The trial vehicles feature lithium-ion Oceania to get feedback on the global strategies, ensure transparency and
launched in New Zealand recently, marks a substantial evolution in the
batteries and can be charged with Principles for Sustainable Insurance. work together with society.
including the third-generation Prius, company’s industry-leading corporate
normal household 240 volt power. The principles address every facet The draft principles have been
Hybrid Camry, and Lexus CT200h responsibility commitment.
They can travel as an electric-only of the insurance business, from risk road-tested worldwide through
- the world’s first luxury compact “We’ve seen consumers placing more
vehicle for up to 30 kilometres, and management and underwriting, to regional consultation meetings across
sports hybrid. and more importance on sustainability
for longer distances they operate as Toyota New Zealand CEO product and service development, claims the world.
Toyota’s on-going emphasis on in their purchasing decisions, and
conventional petrol-electric hybrids, Alistair Davis, left, delivers a Plug-in management, sales and marketing, and Sovereign led the Oceania roundtable
hybrid development, along with its an increasing scrutiny on the claims
without the need for a battery charging Hybrid Prius to Steve Maharey, Massey investment management. discussions, where representatives came
wider sustainability focus, saw it University vice-chancellor, at the companies make in that regard,” he said.
infrastructure and the “range anxiety” The insurance industry’s core from the life, general and re-insurance
named the world’s greenest brand start of a global trial. “The past two years have challenged expertise and business is to
typical of electric-only vehicles. industries, government, regulators, NGOs,
Toyota strongly, creating threats to our understand, manage and carry the investment industry and academia.
on-going sustainability and brand which risk. Through risk prevention and Delegates discussed how the PSI
we had to address head on. Readers reduction, by sharing risks over might be interpreted and applied
of the report can see that we’ve put a many shoulders, and as major in the region, and how the PSI as
real focus on addressing those issues, institutional investors, the industry a global initiative would make a
and hopefully agree that Resilience is a protects society, catalyses finance and positive contribution to sustainable
well-chosen title.” investment, and underpins economic development in general. The feedback
Dave Rhodes-Robinson, Toyota New development. of the consultation will shape up
Zealand’s marketing and environment The environmental, social and the finalisation of the PSI, before its
manager, says the assurance process governance issues span a wide range official launch in 2012 at Rio+20,
helped significantly refine the of business risks, and will impact on United Nations Conference on
company’s approach and reporting the business over the long run. Sustainable Development.
around sustainability. Sovereign is part of the United The industry-led and multi-
“Having the scrutiny of an external Nations Environment Programme stakeholder session is a clear example
provider certainly challenged us as Finance Initiative working group, of a transparent and consultative
an organisation, but the process was which has been developing a best- process, where the insurance industry
invaluable in ensuring our report practice framework to proactively was convened in collaboration
explained our approach to sustainability and responsibly embrace the to look ahead and prepare for
well, and focused on the issues of most environmental, social and governance the extraordinary challenges and
significance to our stakeholders”. issues in insurance and investment opportunities lying ahead for the
activities in order to contribute more coming decades.
NZBCSD Annual Review: 2011 PAGE 11Dedicated to making a difference
Case studies:
Saving space, time and money Setting the standard
How sustainability is securing the future for Ricoh and its clients New data centre a world leader on energy efficiency
technology releases in the next The Auckland office of URS has E xtremely high-efficiency, water-cooled, centrifugal
year to help them transform the recently completed the design chillers, with elevated chilled-water cooling system
companies they work with. and installation supervision of temperatures, modelled to obtain the optimum water
Ricoh New Zealand is experiencing the The addition of Ricoh Consulting a world-class, leading-edge data centre for IBM – and it’s temperature for free-cooling.
greatest change ever in the document Services alongside the core multi- green. A water economiser system that provides free cooling
solutions industry. function device supply and service The building covers 4500 square metres and, when fully during low ambient weather conditions.
Printer hardware, where Ricoh has division will ensure an expanded loaded, will consume around 4MW of power - equivalent to R ain harvesting, with collected water used in the
had a global competitive edge for Ricoh New Zealand is able to the power consumption of around 1300 houses. cooling towers.
some time, is now a commodity, and sustain its market leadership The design brief stipulated that URS’s design must S ide-stream filtration and innovative water dosing
the profit margins from paper printing position. achieve a maximum power usage efficiency (PUE) level of in the cooling towers to reduce the amount of water
have been squeezed. 1.6 at full load. bleed to the drainage system.
Ricoh’s leadership team has put a
lot of strategic thought into ensuring
RICOH In fact, calculations and recorded
data indicate that the URS design will
the long-term sustainability of the CONSULTING achieve an even lower PUE of 1.41
SERVICES
business in the face of the rapidly when fully loaded - energy savings
changing industry. To stay still would of approximately 40 per cent over an
threaten its viability. equivalent standard facility.
SMOOTHER RUNNING SYSTEMS
Ricoh New Zealand is securing Lead mechanical engineer Kevin
its future by rapidly becoming a Hide attributes the success of the
service-based software and business project to teamwork.
improvement provider, while “It was a concerted effort to deliver
maintaining its leadership in the the best sustainability standards for
hardware-based supply business. the building,” he said.
In the past year, Ricoh New Zealand “Data centres are, by nature,
formed Ricoh Consulting Services, power-hungry, but are necessary
which in the next three years is for business continuity, so we
targeted to account for about a third ensured that our design would make
of overall revenue. a significant difference in energy
The new division requires different consumption.
skill sets. Some staff are being re- “Because a data centre’s energy
trained into a new way of thinking use is so huge, by increasing The water system.
and working, and Ricoh Consulting the efficiency we also achieved
Services is also recruiting experienced significant cost savings for the client.
business analysts. URS’s design has provided the client with a remarkable S olar heating of the domestic water system.
The challenge is to help Ricoh’s benchmark for its data centres across the world.” V ariable-speed drives on all motors so they match the
clients save space, time and money T he material used in Ricoh machines is up to 98 per cent recyclable – right here loads,saving energy.
through analysing their businesses in Auckland. Sustainable features incorporated into the building include: F acility energy metering to enable staff to separately
and providing innovative digital Waste from the machines is sent to e-waste recyclers, including Sims Recycling A high level of insulation and vapour barriers on all monitor energy consumption trends of office and data
solutions which eliminate paper, and Solutions. walls, and shading on office windows. hall plant, small power and lighting.
replace manual tasks with efficient, In other parts of the country, around 70 per cent of waste is recycled. N o non-recyclable PVC pipe work and electrical Main, sub-main, power distribution unit and final circuit
automated processes. Ricoh began sending used equipment to Sims in late 2009, and today conduit used on the site. power monitoring for each data hall IT rack/cabinet to
Ricoh’s business analysts already component parts are re-used or recycled either in New Zealand or sent off shore. H igh-efficiency lighting on occupancy sensors accurately monitor consumption at rack level.
have a range of tools to help clients, Source Ricoh Sustainability Report 2010 throughout data hall and plant rooms, with occupancy R educe cable losses through careful plant location
and will have some incredible sensors and daylight linking in offices. planning resulting in reduced cable resistances.
PAGE 12 NZBCSD Annual Review: 2011Dedicated to making a difference
Case studies:
Light on fuel, but big on power A hot idea
The BMW Group The i3 will mark the launch Fonterra saves money and the environment by using
showcases its visions of the first volume-produced
of future mobility in car featuring bodywork largely waste oil from tankers to heat a plant
the shape of the BMW made of carbon for a significant Fonterra’s consents by Environment Canterbury.
i3 Concept and BMW i8 Concepts. weight-saving. With four seats and manufacturing The boilers consume 10 litres of used oil an hour, and
Unveiled in July this year, these a 200-litre luggage compartment, sites have heat water which is pumped at 60 degrees through the
vehicles provide a glimpse of the this vehicle is fully suited for exceeded their embedded water tubes. This not only warms the floor, but
first electrically powered production everyday use. target to reuse also the building. Floor temperatures now sit comfortably
cars from the new BMW i sub-brand, The BMW i8 Concept goes or recycle 90 per in the 20s, and ambient temperatures have significantly
due to be launched as the BMW i3 in from 0 to 100 km/h in less than cent of their waste, improved.
2013 and the BMW i8 in 2014. five seconds and boasts fuel hitting a 92.11 per While the installation costs for the two coil tube boilers
With BMW i, the BMW Group is consumption of less than three cent rate in the 2010 financial year, with 2011 preliminary were some 76 per cent higher than an electric option, the
BMW showcases its first electrically powered
corroborating its position as the litres per 100 km. Its plug-in hybrid results at 92.26 per cent. operating costs are a mere $648 per annum compared to
production cars.
most innovative and sustainable drive, with a system output of The “reuse, recycle” mantra promotes innovative $57,000 for electricity.
auto manufacturer in the world, 260 kW, allows a range of up to ideas. Clean oil burners at Clandeboye.
as reflected in the fact that it has been the super-sector 35 kilometres in electric mode – sufficient for most everyday In the case of the Clandeboye Transport Centre team, led
leader in the Dow Jones Sustainability Indexes for the journeys. For more dynamic driving, or out-of-town routes, a by Ken Gould, it has generated annual energy-cost savings
sixth year running. high-performance three-litre petrol engine also comes into play. in excess of $55,000.
With its zero-emission electric drive and a range of The sports car has an electronically governed top speed of 250 The centre runs around the clock, servicing more than 100
approximately 150 kilometres, the BMW i3 Concept has been km/h and space for up to four occupants. milk tankers in the Canterbury and Clandeboye region.
specifically developed for use in an urban environment, its As the world’s leading premium car manufacturer, the It can be a cold job, with ambient temperatures of six
dynamic 125 kW electric motor and rear-wheel drive ensuring BMW Group aims to offer customers purpose-built degrees or less in the building in winter, and underfoot
BMW-style dynamic handling. electric-drive cars. temperatures on the concrete floor often sitting at zero.
The heating system, installed when the centre was
No waste at Watercare originally built, was inadequate.
The solution is a recycling double header. It reuses some
Worm farms and recycling the order of the day 30,000 litres of waste-stream oil from the truck fleet, and
has put back into service a closed-loop water tube system
of continuous improvement since
embedded in the centre’s concrete floor. The waste oil now
= 0.07 x length inception,” he said. “Along the
fuels two clean-burning oil coil tube boilers, approved for
way, we have made gains through
the introduction of such initiatives
as worm farms and colour-coded
Employees
length at
= 2 xAuckland’s
height water recycling and rubbish bins.”
and wastewater services company, For Foubister and the committee,
Watercare Services, have reduced the the challenge over the past 10 months Security manager Alan Foubister with
volume of refuse they send to landfill has been to roll out the programme the colour-coded bins.
by two-thirds since the company across a much larger organisation.
introduced its Zero Waste programme “In November last year, Watercare’s sure the recycling and worm-farm
in 2003. staff and office base grew significantly initiatives become routine in the new
Security manager Alan Foubister, when it became responsible for offices.
who chairs the Zero Waste committee, retailing water and wastewater “To date, feedback from new staff
says that the volume of refuse services directly to more than one is that they are keen to participate
currently produced by each staff million people in Auckland,” he said. in and grow the programme. As
member each week is only 0.5kg on “From the committee’s perspective, with anything, there is room for
average, compared to 1.5kg in 2003. our focus has been to keep Zero improvement, but we’re off to a
“Our approach has been one Waste in the spotlight – to make good start.”
NZBCSD Annual Review: 2011 PAGE 13You can also read
