Sustainability

Nature is in the business news

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz With good reason. In the next few years, New Zealand manufacturers can expect to be called on to answer these two questions. How is your business reducing your impacts on nature? How will changes to nature affect your business? Who’ll be asking these questions? Governments, regulators and financiers like lenders. They’re realising that centuries of degrading nature (the ecosystems that make up land, oceans, freshwater and the atmosphere) is not only depleting biodiversity. It’s having financial and economic impacts on businesses too. These parties are adding weight to environmentalists’ calls for urgent change. In this article we explain what this means for manufacturers in Aotearoa New Zealand. The need for change The World Economic Forum’s 2024 Global Risks Report ranks dwindling biodiversity and collapsing ecosystems among the five most severe risks to business in the next ten years. The UK Green Finance Institute’s recent report makes sobering reading. It identifies and measures the country’s nature-related risks. The report confirms that these risks are as harmful as the risks of climate change, and that nature and climate are linked. Zoonotic diseases, declining soil health, slips, floods, food insecurity and lost production will affect all sectors – including manufacturing. The economic impacts could be worse than the Global Financial Crisis or Covid-19. The report concludes that the UK must transition its economy urgently to valuing and investing in the environment. As 50 percent of the country’s risks come from overseas (including New Zealand), UK regulators and financial institutions will require businesses to scrutinise their supply chains. We expect other trading partners, including the EU, to take a similar stance. Nature Positive, the global goal for nature The world has agreed a biodiversity equivalent for the global goal that limits global warming. Nature Positive is made up […]

Ten tips to make your business case for sustainability stack up

This information is based on a guide we wrote with the Sustainable Business Council and Kaitiaki Collective. It’s a situation we know many manufacturers face. You want to make your business more sustainable. (Bravo!) You can see the many benefits of manufacturing products that reuse resources, avoid modern slavery and create fewer environmental impacts. But – here’s the kicker – you’re struggling to get the business case for making these changes ‘over the line’ with your accountant or finance team. These ten tips will help you. Tip 1. See becoming more sustainable as an investment Sustainable businesses are excellent businesses. They create value in the short and long terms – economically, environmentally and socially. Treat your sustainability programme as an investment and manage it as one. Tip 2. Identify your stakeholders Consider the many people who have a ‘stake’ in your business succeeding sustainably. You will naturally think of your investors, customers, suppliers, team, local community and regulators. Think longer term and wider too. Include the environment and people who will live many years in the future. Tip 3. Confirm where to focus with a materiality assessment Your business case needs to reflect the views of all these stakeholders and your business too. Start with a ‘materiality assessment’. It’s a practical way, using interviews and surveys, to home in on the sustainability activities that your stakeholders and business care about and to prioritise the ones that matter most. A materiality assessment takes a broad view of sustainability and covers environmental, social and economic topics. Include your top priority topics in your business case. Tip 4. Understand who you need to convince Who do you need to influence to get your business case over the line? What are they interested in? What are they concerned about? Who else has their ear? […]

Leadership Development – showing the real return on investment

NZ Manufacturer July 2024 by Media Hawkes Bay Limited – Issuu David O’Connor, Commercial Manager, The Learning Wave While it is a comparatively easy exercise for businesses to show the Return on Investment on additional plant or machinery, being able to crunch the numbers of the real impact of leadership development training has traditionally been seen as more subjective, and made even harder when faced with the current headwinds of tight economic conditions. Businesses that continued to prioritise investment in their people during the earlier 2020s are now repeating the rewards of increased leadership bench strength, higher levels of staff engagement, and little or no employee churn. And many of our clients can now confidently calculate the return on their training investment. Much was made of the ‘Great Resignation’ during 2020 and the impact this would have on businesses losing their best talent, we all know businesses that stopped leadership development training while others doubled down on their investment to upskill their leaders. It is interesting that the commentary around the great resignation disappeared from HR and business reporting without much noise at all, and has been replaced with plenty of articles on the VUCA era – a trendy managerial acronym short for volatility, uncertainty, complexity, and ambiguity. In this VUCA era, it is reported that businesses need leaders – at all levels – with strong resilience, who can actively engage a wide and diverse group of staff, manage multiple projects and demands, and have a curious mindset to be able to lead their teams through constant change. So it is the businesses that continue to invest in their people leaders who will be reaping the rewards in the VUCA era, and being able to not only retain their top talent but also have a bench of talented leaders ready […]

The scope 3 ripple effect

-Insa Errey In the ever-evolving landscape of regulations, New Zealand manufactures find themselves connected to the regulatory frameworks of key trading partners such as the European Union (EU). The EU has positioned itself as a global leader in climate action, with ambitious targets set under the European Green Deal and the European Climate Law. As part of its efforts to reduce greenhouse gas emissions, the EU has implemented regulations on Scope 3 emissions reporting through directives such as the Non-Financial Reporting Directive (NFRD) and the EU Taxonomy Regulation. Understanding the impacts of Scope 3 regulations in these markets is crucial for New Zealand manufacturing. Let’s delve into how regulations in the EU can shape the strategies and operations of New Zealand manufacturers. First, what is Scope 3? Scope 3 emissions refer to indirect greenhouse gas emissions that occur in the value chain of a company, including both upstream and downstream activities. These emissions often result from activities such as the production of purchased goods and services, transportation and distribution, and waste disposal. For any EU customer this may just be your manufacturing sites Scope 1 or 2 emissions. Meaning the emissions your site emits from use of direct combustion (scope 1) or indirect emissions on site from purchased electricity (scope 2). What does this mean for NZ manufacturers? Market Access and compliance pressure to adhere to these standards is required for exporting to the EU which governs Scope 3 emissions disclosure and reduction. Failure to meet these requirements can result in barriers to market entry. In a global market increasingly, prioritising emissions reduction is becoming an advantage, as exporters can face competition from countries with lower carbon footprints. Failure to manage or measure emissions can put NZ manufacturers at a competitive disadvantage and could impact market share. Even if you […]

Another great reason to understand your supply chain!

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Are you 100% sure you know what’s in your supply chain? Do you fully understand the work practices involved? Yes and yes? Then you’re in good shape to keep selling to the European Union when the new European Supply Chain Act takes effect. No and no? Then you’ve work to do! New EU legislation will require many suppliers to EU companies to better manage their social and environmental impacts. Here’s the acronym: Corporate Sustainability Due Diligence Directive (CSDDD or CS3D). Even if you don’t trade with the EU, expect to see more focus on supply chains, right around the world. Why? Because supply chains are notorious sources of social and environmental ‘hotspots’. Wages below subsistence. Forced labour. Treacherous working conditions. Toxic chemicals. Polluted waterways. Deforestation. The list goes on. The draft European Supply Chain Act Read on for general information about the changes. What’s happening? The European Parliament has voted for the draft bill. Parties are now negotiating a common position to pass the bill into law. What’s the aim of the new law? It’s one we can all sign up to: a fairer, safer, more sustainable global economy. Who does the law cover? It covers many larger companies based in the EU. Some companies outside the EU are covered if their EU turnover is large. Small and medium-sized businesses are not directly affected. However, the law will affect them if they supply to larger companies. What does the law require? Affected companies must manage social and environmental impacts across their value chains. (This is currently voluntary.) These value chains include the companies’ direct suppliers (maybe your business?) and indirect suppliers too (your business’ suppliers?) The law is stricter than most existing national legislation. What does the law mean in practical […]

What matters more, excellence or impact?

Are we happy with a process that potentially knocks out the most impactful science before it can even be considered? By Dr Troy Coyle, HERA CEO The Aotearoa New Zealand research, science and innovation (RSI) system is one that purportedly values and rewards research excellence and research impact equally. Despite this, the current system favours an approach that focuses on excellent research that has impact vs impactful research that is excellent. It is a subtle difference but let me explain how that plays out in practice and why there is an inherent bias. For me, this is an important discussion to have as it has flow-on impacts for industry-led research – which is mostly impact-led. The road to funding According to MBIE “the Endeavour Fund plays a unique role in the science system through an open, contestable process with a focus on both research excellence and a broad range of impacts”. The indicative investment in the 2024 investment round is $57 million per year (projects range 2-5 years). This makes it a key, if not the key, research investment mechanism for research organisations in Aotearoa. It is highly competitive, with most Universities, Crown Research Institutes and Independent Research Associations competing for this pool of funding. As a result, the success rate is very low (usually below 20%). The application process is onerous and it is run in set rounds, with only one round per year. Missing out on funding can have crippling effects for many organisations. The two main criteria for assessment are excellence and impact. However, excellence is assessed first and then only the top ranking submissions are progressed to the next step where they are assessed for impact. Essentially, this means that research excellence is given priority in practice. There could be an amazingly impactful research proposal that […]

As New Zealand CBDs evolve post-pandemic, repurposing old or empty spaces should be on the drawing board

Jose Antonio Lara-Hernandez, Senior Researcher in Architecture, Auckland University of Technology The COVID-19 pandemic and the hybrid work patterns hybrid work patterns it fostered have changed the way we think about office space, and central business districts in general. While fears of urban centre “ghost towns” may have been premature, many cities around the world still face dilemmas over how best to adapt. New Zealand is feeling this pressure too. Office vacancy rates, while dropping slightly, have remained above 12%. At the same time, there is demand for high-quality, modern spaces that fit new work and collaboration models. This isn’t an entirely new phenomenon. Throughout history, cities and buildings have been designed with specific functions in mind. As environmental and social needs change, however, these designs struggle to meet contemporary demands. So, what can be done with the empty buildings and unleased floors scattered through cities everywhere? In our new book, Architectural Exaptation: When Function Follows Form, we examine the process by which existing structures or features are re-imagined and re-utilised. In architecture, the concept of “exaptation” refers to this adapting of buildings and structures for new uses. It is becoming increasingly relevant as a transformative response to sustainable and resilient urban development. Buildings on Venice’s Grand Canal: more than a static relic of the past. Getty Images The benefits of adapting Exaptation in architecture requires us to view built environments not just as physical spaces, but as complex living systems that can adapt and transform. Reusing and repurposing existing structures also helps reduce waste, CO₂ emissions and energy use, supporting more sustainable urban growth. At the same time, by reusing rather than rebuilding, the historical and cultural fabric of cities is preserved, as well as their inhabitants’ sense of identity. A famous example is Venice, which has continuously adapted its historic structures to meet modern needs, […]

What does ‘sustainable manufacturing’ actually involve?

In April issue of NZ Manufacturer www.nzmanufacturer.co.nz we talk with Emily Townsend, Services Director, thinkstep-anz. Emily’s spent her career working in manufacturing, and with manufacturers, in New Zealand and the UK. Emily, what does ‘sustainable manufacturing’ mean to you? It’s become a buzzword but I think it’s about change – incremental and major. Incremental change involves things like producing more efficiently and ensuring products create less waste at their end-of-life. Major change is about powering factories with renewable energy and moving to responsible procurement to avoid modern slavery in supply chains. People need manufactured products and it’s unrealistic to think those needs will go away. So the challenge for manufacturers is to reduce the impacts of your products. When did you get into sustainable manufacturing? At the start of my career (though it wasn’t called sustainability then!) In my first role I supported a bid to supply to the London Olympics. I had to find out what our business was doing to meet their criteria, then coordinate and communicate our work. I also helped measure the carbon footprint of the M25 motorway that circles London. I looked at options like recycled asphalt to reduce the footprint and produced a tool for the industry to assess options. I then worked in roles in lean manufacturing, measured products’ carbon footprints and reported on sustainability performance. When I came to New Zealand in 2015 I took up a sustainability role with Downer. (Sustainability was a term by then!) I joined thinkstep-anz in 2018. What does your current role involve? I support our thinkstep-anz team to deliver sustainability projects to clients, including many manufacturers. Are we meeting technical best practice? Delivering what our clients need? Linking our services for greatest impact? How do manufacturers benefit from becoming more sustainable? You’ll understand your product, […]

Yes, greenwash matters to manufacturers too!

From March issue NZ Manufacturer www.nzmanufacturer.co.nz ‘Greenwashing is a marketing issue. What it’s got to do with manufacturers?’ A lot, actually. Many consumers (wholesale and retail) want to understand the environmental impacts of the products they buy – and every product is manufactured somewhere. So the claims you make about your products to your customers, or that your customers make about your products to their customers, need to stand up to scrutiny. Is my claim true? Is it accurate? Is it specific to my product? Can I prove it? Or is it ‘greenwash’ – a vague, meaningless statement that suggests you’re doing more to protect the environment than you are? Greenwash is everywhere In 2021 the International Consumer Protection and Enforcement Network carried out a global sweep of more than 500 websites that promote products and services. More than 40% appeared to be using greenwashing as a marketing tactic. Photo credit, Christopher Wilton-Steer. Scrutiny from consumer organisations and climate activists is growing globally and prosecutions continue to rise. Major retailers including H&M have been forced to backpedal on sustainability claims made about the products they sell. The business costs of greenwash are high Your manufacturing business has probably spent years and a lot of money building your reputation and brand. Look after them! Promising an ‘eco’ benefit that you can’t back up can damage both. (Social media is relentless.) Regulators have greenwash in their sights. The financial penalties are large. Companies convicted of greenwashing face fines of up to $600,000 in Aotearoa New Zealand and more in Australia. Eight tips to avoid greenwashing as a manufacturer Tip 1: know your numbers If you want to claim that your product is ‘low-carbon’ or ‘uses less water’, make sure you can back these statements up with data. Start by setting a baseline […]

Eight tips to get your sustainability strategy pumping in 2024

From February issue, NZ Manufacturer It’s February and you’ve eleven months to make your manufacturing business more sustainable in the year ahead. These eight tips will help you create (or review) your sustainability strategy – and take action. Becoming more sustainable adds value to your business Sustainable businesses are excellent businesses. They create value in the short and long terms. That’s because sustainability is about much more than the environment. It covers every aspect of your business. (See tip 2 below.) Becoming a more sustainable business will help you reduce costs and risk, strengthen relationships with your suppliers, enter markets and grow market share. You’ll attract talented employees and investment, keep onside with your regulator (if you have one) and build links with local communities. That’s a lot of good reasons to act! A strategy focuses your efforts A strategy helps you tackle the right things, in the right order, to make your business more sustainable. While it’s tempting to focus on activities that yield fast, visible results or to do ‘a bit of everything’, you need to prioritise. For example, if you manufacture a product, tackling your packaging may seem a great place to start. But if your packaging accounts for just 5% of your environmental footprint, there are better ways to use your limited resources. A strategy will help you identify them. Tips to create your strategy Make sustainability part of your business strategy – not an ‘add-on’ Weave sustainability into everything you do so that acting sustainably becomes ‘how you do business’. For example, work with your suppliers to source lower carbon materials and identify risks of modern slavery. Redesign your product to reduce the energy you use and the carbon you emit. Train your team to cut waste and look to your local community when you […]

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