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SIGnals Issue Seven

December 2006, INFO 181

Welcome to this issue of SIGnals, the New Zealand Ministry for the Environment's e-newsletter linking you to advice and information on what's happening in the world of sustainable business.

SIGnals contains updates, tools, resources and case studies focused on helping industry compete and grow sustainably.

If you have any questions or comments please contact us via signals@mfe.govt.nz (also to have your name added or removed from the SIGnals mailing list), or phone (04) 439 7400.

In this issue...

The latest on sustainable industry initiatives:

Other Ministry news:

Link to additional Ministry projects and tools:

The latest on sustainable industry initiatives

There is a new level of discussion about the environment in business, government and media circles, particularly regarding climate change and the need for economic and environmental sustainable development.

Prime Minister Helen Clark recently outlined a vision of New Zealand becoming a world leader in sustainability.  Many will have seen Al Gore’s documentary on climate change issues “An Inconvenient Truth”. And Sir Nicholas Stern, Head of the British Government Economic Service and former World Bank Chief Economist recently published a comprehensive review on the economics of climate change. 

This newsletter outlines progress being made by New Zealand businesses to address these issues of sustainability, and the Ministry for the Environment’s work to support and encourage sustainable business practice in New Zealand.

Check out the Ministry’s website for comprehensive information on the Ministry's work programme with New Zealand business.

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Consultation on the New Zealand Energy Strategy and climate change policy options

On 11 December 2006, the government released the draft New Zealand Energy Strategy to 2050, Powering Our Future – Towards a Sustainable Low Emissions Energy System. The draft strategy will put New Zealand firmly on the path to a sustainable, low emissions energy future.

A national strategy for energy will set out the long-term direction of New Zealand's energy system, so that the energy sector and consumers can respond with more certainty and confidence to the energy challenges and future opportunities. The draft replacement National Energy Efficiency and Conservation Strategy will form a subset of the New Zealand Energy Strategy.

Consultation on the draft strategy began this week with a series of briefings to stakeholders. The closing date for submissions on the draft strategy is 30 March 2007.

From December 2006 to March 2007, the government will consult on the options for the longer term and transitional climate change policies. The government would like your feedback on the draft energy strategy and other climate change discussion papers and strategies. For more information on this consultation, please visit our climate change website.

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The latest on waste

Managing and reducing waste is an important environmental issue facing New Zealanders. 2007 is shaping up to be a very busy year for the Ministry for the Environment on waste issues, and also for the waste minimisation and resource recovery sectors.

The Ministry is working to improve information about New Zealand’s waste levels, and to put in place systems to enable better tracking of waste. This is so New Zealand can better manage the creation and disposal of waste.

Accordingly the Ministry is reviewing progress against the New Zealand Waste Strategy targets, and will report on progress in 2007. Preliminary results show the amount of waste going to landfill has remained at 2002 levels (just over 3 million tonnes). There are areas where New Zealand is performing well against the targets (for example the number of landfills has reduced and the standards are higher). However some areas have room for improvement. At the same time there are some targets that are no longer relevant or appropriate.

The Waste Minimisation (Solids) Bill is currently before the Local Government and Environment select committee. The Environment Minister has signalled he sees the Bill as having the potential to look at the issue of funding for further waste minimisation, and as having the potential to strengthen product stewardship by developing ‘back-stop’ legislation. The select committee is expected to report back to the House by 29 June 2007.

Visit the Ministry’s waste issues web page for the latest information on waste issues.

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The business case for sustainable business practice

The business case for sustainable business practice is strong and continues to grow. Reasons businesses are adopting sustainable business practices include:

Cost savings

Businesses are increasingly aware of the cost savings won by adopting sustainable business practices.  ABE’S® Real Bagels has halved storage and transport costs, and reduced by about a third the number of large trucks entering and leaving its premises. The amount of raw material manually handled has reduced by 10–12 tonnes per week. Changes in practice have saved the company about $100,000 in the first year of full implementation of sustainable business practices.

Market advantage

Businesses are increasingly leveraging the market advantage they can gain by embracing sustainability. Market research has identified a segment of the market known as LoHaS (Lifestyles of Health and Sustainability) – estimated at 26% of the adult population in New Zealand.  These consumers are willing to pay up to 20% more for environmentally friendly goods, and are more loyal to companies who exhibit sustainable business practices. Meridian Energy for example actively promotes its renewable energy supply (from wind and hydro-electric energy).

Government regulation

Government regulation also encourages sustainable business practice. For example, the Government introduced National Environmental Standards for Air Quality in October 2004, 14 standards aimed at preventing toxic emissions and protecting air quality, so that New Zealanders can breathe cleaner air. Also, the soon to be introduced Water Efficiency Labelling scheme aims to help New Zealanders save water, via a label on water-using appliances. The label will provide information on a product’s water consumption and efficiency; enabling consumers choose products that use less water.

Ethical investment

Investors are increasingly looking at the sustainability aspects of the companies they invest in. In response, the international Carbon Disclosure Project details the world’s 500 biggest company’s carbon dioxide emissions. In New Zealand, finance companies such as Prometheus Finance specialise in ethical investment opportunities.

Staff attraction and retention

Research by the New Zealand Business Council for Sustainable Development has shown that businesses with a reputation for sustainable business practices attract and retain high-quality staff.

Avoidance of Government Intervention

Businesses often invest in sustainable business practice to avoid government intervention. The government encourages business to voluntarily adopt sustainable practices, as it would prefer to keep government intervention to a minimum. Voluntary initiatives such as the New Zealand Packaging Accord provide an opportunity for environmental outcomes to be achieved, without the necessity of regulation.

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Construction industry builds waste reduction initiatives

Construction companies are operating more efficiently, and reducing construction and demolition (C & D) waste, by embracing new resource efficiency guidelines. The Ministry facilitated the development of the guidelines as part of the Resource Efficiency in Building and Related Industries (REBRI) project.

For example, Fletcher Construction is making great progress in reducing C & D waste at the Meridian Energy building site on the Wellington waterfront. Timber waste is being sorted between treated and non-treated, with the un-treated timber being diverted for chipping as mulch. Shrink wrap and plastic from timber, cardboard, and plasterboard are all being recycled.

Another exciting initiative is Winstone Wallboards and Compost NZ working together to look at using recovered plasterboard in compost. Plasterboard can be used as a fertilizer and is excellent in breaking down clay soils.

Waste from construction and demolition (C & D) makes up to 50 percent of all waste generated in New Zealand, 20 percent of all waste going to landfill and 80 percent of all waste going to clean-fill.  Much C & D waste can be reduced, re-used and recovered.

The Ministry is working on a number of initiatives to reduce C & D waste. These initiatives provide tools and resources for the construction and demolition industries, and promote the tools to other industry sectors.

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IT and electronics industry active on e-waste

The New Zealand information technology (IT) and consumer electronics industry are taking action on managing and reducing electronic waste (e-waste) in New Zealand, spurred on by the release of a report by the Computer Access New Zealand Trust (CANZ) in July this year. The CANZ report investigated the need for a more sustainable approach to dealing with e-waste.

In response, the Ministry convened workshops for IT and television industry representatives on the development of a product stewardship scheme for the industry. Industry representatives agreed to a scope and set of key principles that would provide the framework for any future product stewardship scheme for this sector, and established a working group to work towards achieving the overarching objectives of a product stewardship scheme.

E-waste is a growing concern as society increases its consumption of technology. Globally it is estimated that the e-waste stream will grow 3-5 percent per annum. E-waste contains toxic substances such as lead, cadmium and mercury. These toxins, if left in landfills, have the potential to damage the health of people and the environment.

How to dispose of e-waste

Safely dispose of e-waste by following the information located on the Ministry for the Environment’s website.

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Packaging Accord succeeds in reducing waste

New Zealanders are recycling more of their packaging waste, rather than sending it to landfll, as reported by the Packaging Accord’s recent report on its progress over the past two years.

Achievements under the Packaging Accord over the past two years include:

  • The establishment of a Glass Packaging Forum to fund research into alternative uses for recovered glass through the collection of a voluntary levy.
  • Increased public awareness initiatives on the recyclability of steel by the steel sector.
  • The Environmental Beverage Action Group has developed event recycling guidelines and is undertaking recycling initiatives at large sporting and cultural events, such as the Ellerslie Flower Show and Coca Cola Christmas in Park.
  • Grocery brand owners and retailers are using the EANnet electronic recording system to record the type and amount of packaging at the point of sale.  This system will greatly improve packaging data.

The Packaging Accord is a five-year, voluntary agreement between the packaged goods industry, retailers, brand owners, recyclers and central and local government. The focus for the first two years has been on getting industry involved in the accord, and benchmarking the use and disposal of packaging materials.

At the release of the report in October 2006, Environment Minister David Benson-Pope challenged the Accord parties to increase industry membership, continue to build on relationships to deliver results, to develop new markets for recycled material and to improve recovery rates.

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IAG NZ: leadership in sustainable business practice

IAG NZ, New Zealand’s largest general insurer, has won various awards in the sustainability sphere, such as the large business category at the 2004 National Sustainable Business Awards. 

IAG NZ has recently produced its second annual sustainability report. Sustainability is a key aspect of IAG NZ’s business strategy. Sustainability initiatives taken by IAG NZ include: 

Changing with a changing climate

The weather is a vital concern for the insurance industry. Weather-related disasters represent 19 of the top 20 insurance losses in New Zealand since 1968. These events have disrupted the lives of hundreds of people, and led to insurance payouts amounting to hundreds of millions of dollars. The increase in these extreme weather events has highlighted the need for IAG NZ to work with others to reduce the impact of severe weather.

IAG NZ has been actively involved in climate change awareness raising events in the community and with business partners. IAG NZ commissioned research, in partnership with Environment Waikato and the Thames Coromandel District Council, to investigate the changing climate and the risks this posed to the Thames Coromandel district. The research helped the councils prepare flood adaptation plans to provide better flood protection for the community. With a history of flooding in the area, some insurers refused outright to insure residents for future flood related damage to their properties, believing the risks to be too great.  Armed with a better knowledge of flooding risks on the area, IAG NZ continued their support for the community through informed underwriting decisions that provide realistic and affordable insurance solutions.

Sustainable building

Sustainability featured strongly in the design of IAG NZ’s new Christchurch building. Sustainable design aspects include the use of:

  • Gas-filled, double-glazed windows, solar control glass and aerofoil solar shades to deflect the worst of the summer sun
  • Solar water heating panels on the roof to feed the building’s hot water reticulation systems
  • Energy-efficient fluorescent light fittings
  • Wireless computer technology and video-conferencing equipment in meeting rooms, to reduce travel.

Procurement

When IAG NZ select suppliers, factors such as energy efficiency, climate change impacts and recyclability are considered relevant, alongside aspects of price and service.

Examples of successful sustainable procurement initiatives by IAG NZ are:

  • A move to a lower weight paper, using vegetable inks and oxygen bleaching instead of the harmful chlorine bleaching process, through print paper providers Blue Star Print Group
  • Hybrid vehicles brought into the IAG NZ fleet, reducing fuel consumption and harmful emissions
  • Choosing Meridian Energy as IAG NZ’s power supplier. Electricity is generated exclusively from renewable energy sources.

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Other Ministry news

Talk Environment Roadshow

The Ministry's Talk Environment Roadshow recently took place. We visited 17 centres and facilitated 32 meetings across the country with approximately 1,600 people from industry, local government and the wider community.

Topics of discussion included water, waste, national environmental standards, environmental reporting and climate change.

Regional and national themes from these meetings will soon be posted on the Ministry website. Regular updates will be provided on how this information has influenced the Ministry's work programme.

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Upcoming industry liaison meetings

The Ministry for the Environment will host industry liaison meetings in Auckland, Wellington and Christchurch in February/March 2007. Representatives from key industry sectors around New Zealand are invited to these meetings. The meetings provide updates from the Ministry about initiatives relevant to New Zealand industry, and also include open discussion on topics relevant to sustainable business practice.

Please phone (04) 439 7407 or email emma.williams@mfe.govt.nz if you’d like to attend these meetings.

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Simply Sustainable: a web toolkit for sustainable business practice

Simply Sustainable  provides practical tools, resources, guides and case studies for businesses to use to enable sustainable business practice.

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Get Sustainable Challenge - Sustainable Business Network 

The Sustainable Business Network runs the Get Sustainable Challenge, supported by the Ministry for the Environment. The Challenge assesses participating business, and helps business improve their sustainable business practice through the use of dedicated resources and workshops.

Each participating business has automatic entry into the annual Get Sustainable Challenge Awards, where businesses are recognised regionally and nationally for their efforts in sustainability.

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