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Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
Offset inclusive carbon management to increase sales, reduce costs and engage staff
In the transition to a low carbon economy, carbon management represents a new and fundamental challenge for businesses. How companies respond to this challenge is fast becoming a strategic issue. The business drivers for taking action on climate change will continue to strengthen. Companies with credible carbon management strategies will increasingly benet from taking strong action. The most effective strategies can deliver a number of benets beyond carbon reductions including an increase in sales, cost reductions, staff engagement and an enhanced corporate reputation. A growing number of companies are adopting an environmental strategy which incorporates carbon offsetting to realise these business benets. A carbon offsetting programme builds a real cost of carbon into a business and combined with internal reductions, gives clarity to a companys carbon management goals and the means to achieve them. Three companies who have experienced the multiple benets this approach can deliver are Simmons & Simmons, Commercial Group and Reed. Through their offset inclusive environmental programmes, these companies have reduced their emissions, resulting in considerable cost savings. In addition, such programmes achieve signicant revenue growth, an increase in staff motivation and recognition for being an industry leader.
Executive summary
At its London head ofce, Simmons and Simmons reduced electricity consumption by 27.3%, delivering savings that have more than met the cost of the companys CarbonNeutral programme Commercial Group has reduced its overall carbon footprint by 59%, delivering over 100,000 of cost savings. The company has also won over 4 million of new business as a result of its green credentials To promote carbon reductions throughout the business, Reed Group set up nine Green Flagship sites which achieved the companys four year emissions targets in 12 weeks.
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Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
Early Adopters
As the most knowledgeable group, the Early Adopters were enthusiatic about the rms CarbonNeutral status and formed the basis of the environmental committee. James Clark, Ofce Services Manager, who leads the Simmons & Simmons carbon management programme, says that this group is vital to ongoing carbon reductions innovation in the rm. However, he says that sometimes expectations need to be managed, as their suggestions may not always be practical or feasible. That said, he advises taking the opinions of all the participants on board as its essential for them to feel integral to the progress. Early Adopters at Simmons & Simmons respond positively to: The rms decision to go CarbonNeutral which demonstrated a strong commitment to GHG emissions reductions Positive and constructive responses from management teams to their carbon reduction suggestions Visible progress and innovation. For example, to help meet its CarbonNeutral internal reduction targets, Simmons & Simmons have introduced waste composting and plastic cup recycling initiatives Continual improvement with regular communication on progress.
Critical Mass
The majority of staff are interested and aware that GHG emissions need managing but require guidance and encouragement to do it. The Critical Mass at Simmons & Simmons respond positively to: Communication which is engaging and accessible: since 2007, Simmons & Simmons has held an Environment Week, providing staff with information on carbon offset projects and climate change competitions which have proved very popular Education on the rms CarbonNeutral programme and environmental policy which has been incorporated into the induction programme to raise staff awareness from the beginning Persuasion: energy, travel and waste reduction campaigns in the ofce provide examples and facts for staff to make environmental choices throughout their working day. The rm also implemented a travel policy to promote video conferencing and low carbon transport alternatives.
Being CarbonNeutral is a great driver for making deep internal emissions reductions because the cost of carbon is very visible and The CarbonNeutral Company provides a lot of support to embed the programme across the rm. Corporate responsibility is now a business critical activity and when our clients ask about our environmental credentials, the CarbonNeutral brandmark is easily recognised as a credible response to climate change. James Clark, Ofce Services Manager
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Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
Stragglers
This is a small but inuential group within Simmons & Simmons, who are typically cynics and very questioning and challenging. James Clarks view is that their challenges are useful: it ensures any communication or initiative resulting from the companys CarbonNeutral programme is robust and can withstand their criticism. The Stragglers positively to: at Simmons & Simmons respond
Results
With the CarbonNeutral programme underpinning Simmons & Simmons strategy to motivate staff to reduce emissions, the rm has seen how small things really make a big difference. With a large number of staff over 1700 the challenge has been to reach and engage all individuals which has been achieved by avoiding a one size ts all approach. In four years, through good management and staff engagement, the London head ofce has reduced its annual electricity consumption by 27.3%. The nancial translation of this means that the cost for Simmons & Simmons to go CarbonNeutral has been more than met by this alone. Other savings have been realised through reductions in gas and water usage and international business travel. Across the company, the total emissions savings are: 19% reduction in electricity consumption in three years 15% reduction in business air travel in three years 17% less waste to landll in two years. With the combined results leading to an overall reduction of 27% CO2 in emissions.
Incremental and ongoing information based on concrete facts Transparent facts and gures: they want examples of how initiatives like the rms CarbonNeutral programme save money and jobs, as well as the world Being acknowledged: it may not be possible to know the answers to all their questions, but nd out and go back to them.
As a result of its CarbonNeutral status, Simmons & Simmons has been featured in international and national media. Aside from proling the rm and keeping environmental responsibility in the news, this has been important in reinforcing a sense of pride across all three groups.
Keeping momentum
At the beginning of every year the environmental committee meets to discuss and agree the objectives for Simmons & Simmons CarbonNeutral programme. The committee is dynamic and as new people come into the group they bring new ideas which stimulates the programme. The ideas generated by the committee are evaluated on the cost to implement and how much they are likely to change behaviour to contribute to the rms emissions reductions targets.
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Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
Commercial Group
Commercial is a leading UK ofce services and supplies company, offering IT services, ofce supplies, interiors, recruitment and print procurement. A member of Beacon - a portfolio of innovative companies in the South West of England - Commercial has ISO 9001 and ISO 14001 certications. The company became CarbonNeutral in 2006. Having a climate change leader within the company became an important next step to ensure the programme kept on track. Simone identied a staff member who was already passionate about environmental issues and seconded him into the working group. With this climate change leader in place, Commercial could carry out a clear plan for carbon reductions with the appropriate allocation of management and resource. As part of the overall plan to put climate change and CarbonNeutral at the heart of its business strategy, Commercial repositioned its sales strategy to incorporate this message. This was good for business and continued to build Commercials prole with like-minded companies. There was an additional benet: both sales and support staff took pride in the companys CarbonNeutral position, providing a common goal for everyone to work to. In 2007, Commercial updated its brand to reect the companys environmental position, introducing the strapline Handled with Care, instilling the message that all operations are handled with care, from customer service to carbon emissions. The new look brought Commercials values to life, resonating with staff, clients and suppliers.
Being CarbonNeutral and the carbon reduction programme that it inspired has been the most amazing journey. We have achieved more than I would ever have thought possible. It has been the best thing weve done in the 18 years weve been in business.
Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
Commercial worked hard on media communications which paid off with interviews on BBC News and BBC World about its CarbonNeutral programme, along with articles appearing across national and local newspapers. These media appearances not only helped to grow the companys prole with prospective clients, but made the staff proud to see they were part of a winning business. Commercial held their rst Corporate Social Responsibility (CSR) Day in 2007, inviting staff, customers and suppliers to discuss the business benets of embracing carbon management programmes and challenge others to get involved. This proved to be such a relationship building success that Commercial has repeated the event in 2008 and 2009, attracting around 200 delegates and guest speakers from Forum for the Future, BSkyB, Denso and The CarbonNeutral Company.
Results
Three years on, Commercial has achieved outstanding results: the companys carbon footprint has been reduced by 59%, the eet travels 140,000 fewer miles, waste sent to landll is down by over 90%, over 4million of new business has been won as a result of its green credentials and over 100,000 will be saved, making its CarbonNeutral programme cost neutral.
We have seen a complete culture change within our organisation. Being green has become part of our DNA its what we do, its who we are. Its no longer a choice; its simply the way we conduct business. Simone Mann, Co-founding Director
Keeping momentum
These are impressive results by any measure: the challenge for Commercial now is how to sustain them.
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Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
Reed
Reed is one of the UK's largest recruitment specialists, placing people into temporary and permanent opportunities across a number of disciplines and offering training and HR consultancy services. The Reed Group became CarbonNeutral in 2005. If this cost goes above a threshold, it needs to be signed off by a senior manager. At the end of every meeting all attendees must agree that the meeting could not have been done on a call. To bring these two travel initiatives in Reeds CarbonNeutral programme to life and visibly lead by example, the company held its quarterly update meeting on a conference call in December 2008. Organised by the Chairman and CEO, the conference call was attended by 140 of the most senior managers and proved to be a success; the average score in the post-event evaluation was nine out ten and now only one quarterly meeting a year is held face-to-face. This was a signicant cultural and operational shift which provided a clear signal to Co-Members that senior management was serious about the companys CarbonNeutral position. At the same time, Reed reviewed car mileage allowances and found that its rates were too high. This was encouraging Co-Members to choose their car over less carbon intensive forms transport. Allowances were reduced by a third and in turn the mileage dropped by 48%. The nal travel initiative in Reeds CarbonNeutral programme was the introduction of an online train booking portal giving Co-Members access to a straight-forward booking platform which incentivises registrations with vouchers. It has resulted in a third of Reeds Co-Members signing up for, and regularly using, the service.
Be led by example
To drive the CarbonNeutral programme across the Reed group, nine Green Flagship Sites were set up with a Site Champion appointed in each location to promote carbon reductions and encourage environmental consideration amongst colleagues. The aim is to develop best practice and knowledge with sites in competition with each other, which could then be rolled out across the rest of the company.
Reed has been an environmental champion for a long time and our focus is, and always will be, to reduce our environmental impact as much as possible and then efciently manage what is unavoidable. As such, carbon offsetting plays an important role - it offers an immediate solution while we improve relevant business processes.
Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com
The Green Flagship Sites programme runs for 12 weeks and the nine sites have targets set in line with the companys four year goals: a 10% reduction in energy; a 10% reduction in transport and 80% of ofce waste recycled. Each site has ownership of the reduction activities chosen to achieve the 12 week targets, plus the company sets common three monthly challenges. An example challenge was the World Environment Day Cut Out a Kilo campaign organised by The CarbonNeutral Company. Seven of the Green Flagship Sites took part and an additional 191 kilogrammes of CO2 were saved in just one day. At the time of writing, The Green Flagship Sites are on course to reach the 12 week targets; reductions the rest of the company has four years to achieve. This is a powerful example of the impact a motivated and knowledgeable member of staff can have on leading CarbonNeutral initiatives.
Results
Reeds CarbonNeutral strategy of engaging Co-Members to drive down emissions has paid off with impressive results: Conference call use has doubled 48% reduction in Co-Members vehicle miles (equal to 200 fewer miles per Co-Member per year) 51% reduction in train travel emissions 80% reduction in switched on time for thin terminals (From 8,760 to 1,748 hours per year) 46% fewer servers than 2006 Data centre is currently 20% more efcient.
And the results to date for the Green Flagship Sites are: 15% reduction in energy use 42% reduction in printing.
Avoid engagement
In some cases Reed took a bolder approach to meet its CarbonNeutral reduction targets by only involving the necessary people. A good example of this was the replacement of its IT systems: all standard desktop PCs were replaced with thin terminals which use 91% less energy and the companys data centre was overhauled including the installation of free-air cooling. Co-Members werent consulted to ensure rapid implementation, however a complete communication programme following the introduction of the terminals meant the transition was successful. Co-Members now benet from accessing their desktops anywhere in the ofce, client ofces or at home. This operational exibility has also further reduced travel emissions and increased Co-Members efciency.
Keeping momentum
To keep lowering emissions and meet the companys CarbonNeutral reduction targets, the Green Flagship Site programme will be rolled out to the rest of the group. Knowledge and lessons learnt from the rst programme will be carried over into the second phase and the aim is to instil positive environmental behaviour across the company. Reeds hard work and commitment to reducing emissions has been recognised with three accolades at the 2009 London Green 500 Awards Ceremony: the Trailblazer, the Engager and the Platinum awards. The company also won Computing for Excellences Green IT Project of the Year in November 2008 and the Sustainable Cities Award for Resource Conservation in February 2008. This has made Co-Members feel positive about the companys achievements, which in turn keep them motivated about Reeds CarbonNeutral programme.
To nd out how your business can benet from a carbon offsetting programme, please call us on +44 (0)20 7833 6000 or email us at info1@carbonneutral.com.
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Bravington House, 2 Bravington Walk, Regent Quarter, Kings Cross, London N1 9AF T +44 (0)20 7833 6000 10 E. 40th Street, Suite 3110 New York, NY 10016 T: 1 646 367 5800 42 Jln Bumbong, Singapore 739927. T: +65 688 444 65 www.CarbonNeutral.com