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Doing Sustainability Strategic Audit Environmental management systems in Victorian Government 2012-13 Doing Sustainability Published by the Commissioner for Environmental Sustainability Melbourne, Victoria, January 2014 ©The State of Victoria, Commissioner for Environmental Sustainability 2014 This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Printed by: Impact Digital Pty Ltd Units 3-4, 306 Albert Street, Brunswick, Victoria 3056 Printed on recycled paper. Authorised by the Victorian Commissioner for Environmental Sustainability, Level 22, 50 Lonsdale Street, Melbourne, Victoria 3000 ISBN 978-1-921147-25-8 For further information contact the Office of the Commissioner for Environmental Sustainability, phone +61 3 9096 2424 or visit http://www.ces.vic.gov.au Disclaimer This report may be of assistance to you and every effort has been made to ensure that the information provided is correct. It is based largely on data and information provided by the Victorian Government. The Commissioner for Environmental Sustainability does not guarantee that the report is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Design and publication notes This strategic audit report is specifically designed for on-line viewing and demonstrates my office’s move to reducing paper based publications and the need for printing. If you require a paper version please contact the office. Contents From the Commissioner 4 Section 1 6 Environmental performance 7 Whole-of-government assessment 2012-13 7 Greenhouse gas emissions 8 Energy use in office buildings 9 Waste in office buildings 11 Water use in office buildings 12 Transport 13 Paper use 17 Section 2 18 Environmental management system case studies 19 Carbon neutrality at Zoos Victoria 20 Museum Victoria case study update 29 Victorian Electoral Commission moves into a new sustainable mode 32 Parks Victoria shining the light on the business case for environmental sustainability 36 Public Record Office Victoria environment strategy update 38 State Library of Victoria sustainability report update 43 Section 3 46 Sustainability in major projects 47 Sustainability Investment Guidelines 49 Overview – Statement of purpose 50 PART A – The Sustainability Investment Process 51 1 ] CONCEPTUALISE Sustainability opportunities 51 2 ] PROVE Sustainability and the business case 55 3 ] PROCURE 66 4 ] IMPLEMENT Delivery 68 5 ] REALISE Monitor and review 68 PART B – Sustainability Investment: The Fact Sheets 69 1 ] Energy reduction 70 2 ] Water efficiency 72 3 ] Climatic resilience 74 4 ] Materials resource efficiency 76 5 ] Transport and travel 78 6 ] Health, well-being and productivity 80 7 ] Community, amenity and built form 82 8 ] Emissions and environment protection 84 9 ] Ecosystem services 86 Source Material 88 Endnotes 90 3 From the Commissioner From the Commissioner Each year the Office of the Commissioner for Environmental Sustainability publishes an environmental management systems audit of mandated government departments and agencies pursuant to the Commissioner for Environmental Sustainability Act 2003 (section 8). This is the fifth and final audit prepared subject to my commission. Sustainability reporting continues to evolve, develop in importance and provide significant insights about organisational efforts in respect of environmental best practice in both the public sector and private enterprise. Very recently the Boston Consulting Group and MIT Sloan Management Review published a report on ‘leading companies’ and their sustainability commitments – Sustainability’s Next Frontier. Walking the talk on the sustainability issues that matter most.1 Using case studies which involved Avis Budget Group, Domtar, Hilton Worldwide, Dell, Kaiser Permanente and GM-Honda, the reporters concluded that five critical attributes typify best practice. These include – leadership and high level management commitment; developing strategic processes; formulating sustainability business cases; measuring progress and effecting change to promote better outcomes. Whilst private enterprise responds to different stimuli than public administration, the desire for efficiencies, sustainable practices and the opportunistic advancement of environmental, economic and social co-benefits clearly underpins best practice. As corporate social responsibility increasingly drives environmental reporting across sectors it is encouraging to observe commitment to this work in government agencies. This has occurred in Victoria as a direct consequence of the operation of the Department of Treasury and Finance Financial Reporting Directions (24-24C) and as a function of good leadership in agencies where environmental reporting is adopted without being mandated. In the first section of this year’s audit the reader will find a comparative discussion of the environmental performance across the whole of government. Energy, waste, paper use, transportation, water consumption and greenhouse gas emissions are all considered and contrasted across portfolios. Comparative studies over time are made difficult by changes in departmental structures and by the different organisational requirements of agencies, but as measurement is a pivotal criteria for improved outcomes such studies remain both necessary and important. Key findings from the first section of this audit include: • In 2012-13 we have recorded a 10% reduction in total office-based greenhouse gas emissions since 2009-10, with decreases in air travel, waste to landfill and vehicle use emissions. • Office-building emissions increased by 1.5% over this most recent reporting period as a result of the reduction in the purchase of green power. • Only 6% of electricity used in 2012-13 was purchased as green power, a 75% decrease since 2009-10. • 84% of office waste was recycled in 2012-13. • Executive fleet continues to make a negligible contribution to whole of government efforts to reduce emissions, as comparatively few executives, in leadership positions, have rejected the option of a six cylinder vehicle. 4 In this audit I continue the practice of augmenting the material required with case studies of the environmental management systems of non-mandated agencies. In this audit the • attainment of carbon neutrality by Zoos Victoria, • materials use and lifecycle work of Museum Victoria, • organisational culture of the Victorian Electoral Commission, • renewable energy innovations of Parks Victoria, • strategic implementation of Public Record Office Victoria, • ongoing efforts by the State Library of Victoria are all considered for their illustrations of great leadership, team work, strategic planning and practical, committed and continuing implementation. Each provides a guide to better environmental practice in quite diverse and non-mandated organisational structures. I commend the organisations, their leadership and their environmental management teams for this inspirational work In this audit I also provide ‘Sustainability Investment Guidelines’ in respect of major projects where benefits of a project might be understood as both qualitative and quantifiable and where a cost benefit ratio is improved by the incorporation of sustainability approaches. These guidelines correspond with the Department of Treasury and Finance’s Investment Lifecycle Guidance for High Value, High Risk projects. Green Star Education V1 is used as an example of the potential available through innovate approaches. Issues considered as sustainability investment streams include energy reduction; water efficiency; climatic resilience; materials resource efficiency; transport and travel; health, well-being and productivity; community, amenity and built form; emissions and environment protection; and ecosystem services. For an extended discussion of the way we conceive of the environment as ecosystem services see the Victorian State of the Environment Report 2013, published by my office in 2013, which is found at www.ces.vic.gov.au under publications. Fact sheets on each of the Sustainability Investment streams provide clear illustration of the benefits attainable in terms of sustainability potential in clear form. Professor Kate Auty PhD, MEnvSc, Dip Int Env Law (UNITAR), BA(Hons)LLB, GAICD Commissioner for Environmental Sustainability, Victoria 5 Environmental performance SECTION 1 6 Section 1 Environmental performance Since 2003, Victorian Government departments, the Environment Protection Authority (EPA) Victoria and Sustainability Victoria have been required to implement environmental management systems (EMS). This requirement was introduced with an office-based focus and was modelled on the ISO 14001 standard.2 The Financial Reporting Direction 24C enables the government to report on its office-based environmental impacts in a consistent manner. The direction states that every year by 31 January, the Commissioner for Environmental Sustainability will report to the Minister for Environment and Climate Change on progress of defined entities EMSs.3 This section presents environmental performance and analysis for the 2012-13 period in accordance with the reporting requirements of Financial Reporting Direction 24C.4 The whole-of-government performance is aggregated from data provided in the annual reports of Victorian Government departments, EPA Victoria and Sustainability Victoria.5
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