Think long term Think long term Act now! sustainability in the y - - PowerPoint PPT Presentation

Think long term… Think long term… Act now!

sustainability in the y National Trust

Rob Jarman

Sustainability Director

“For ever, for , everyone”…seriously…

Th N ti l T t’ C The National Trust’s Core Purpose Purpose

“the promotion of the permanent ti f l d d t t preservation of lands and tenements

• f historic interest or natural beauty

for the benefit of the nation” … for the benefit of the nation National Trust Act 1907

Sustainable charity Sustainable charity

the Trust has 4 sustainability objectives:

• sustain our operational business
• sustain our achievements in conservation
• sustain everyone’s environment to enhance

their quality of life

• promote our experience of sustainability

through campaigns and education through campaigns and education

Sustainable

thi k f t i bilit

Sustainable

we think of sustainability as: Caring about and for people; Caring about and for people; Safeguarding our environment; Perpetuating a viable, renewable economy. these can be figured as a 'Russian doll' - the 3 ‘aspects of sustainability' embodied rather than aspects of sustainability embodied rather than separated into ‘pillars’; and we do all live on One Planet…

Sustainable business Sustainable business

"living within our means" is a crucial sustainability living within our means is a crucial sustainability principle, for individuals, families, corporates… the NT understands this principle well - take our Chorley Formula, for example - but we do not yet l it t ll th t d apply it to all that we do... We should better know our resources and their We should better know our resources and their potential sustained productivity before we use and

• ver-use them…

Our triple bottom li t l line tool

Alfriston Clergy House 1895 gy

Alfriston Clergy House 2011 gy

Mullion Harbour , Cornwall

increasingly frequent storm damage required …increasingly frequent storm damage required £1m refurbishment in past 10 years…

Mullion Cove pre Harbour Mullion Cove – pre-Harbour

“You don’t know what You don t know what you’ve got till it’s gone…”

Birmingham city centre g y

Back to backs Back to backs

Th N ti l T t The National Trust Water Resource Risk Assessment

Summary Headlines Summary Headlines

28%

• f NT land

28%

• f NT land

43%

• f England

and Wales drains 43%

• f England

and Wales drains is prone to erosion is prone to erosion to the boundary

• f NT land

to the boundary

• f NT land

27%

• f NT land

designated as 27%

• f NT land

designated as 6%

• f NT land is

6%

• f NT land is

within flood within flood 3 (Q100) 3 (Q100) 6%

• f NT land is

6%

• f NT land is

within flood within flood 3 (Q100) 3 (Q100) water- dependent SAC water- dependent SAC 40%

• f NT

40%

• f NT

40%

• f NT

40%

• f NT

zone 3 (Q100) zone 3 (Q100) zone 3 (Q100) zone 3 (Q100) 9%

• f NT land in

net rainfall deficit 9%

• f NT land in

net rainfall deficit 40%

• f NT

40%

• f NT

land has land has slope of <11 slope of <11 d 40%

• f NT

40%

• f NT

land has land has slope of <11 slope of <11 d areas - rising to 17% by 2050 areas - rising to 17% by 2050 degrees degrees degrees degrees

Flood – Blickling, Basement September 2001

• September 2001
• (and again August 2004)

( g g )

• (and again June 2007)
• (and again September 2008)
• (and again, September 2008)

A bit about us:

• we own and protect 627,000 acres of land, much of

which is of outstanding natural beauty which is of outstanding natural beauty

• 40% of our land is nationally important for nature with

97,475ha designated as of Special Scientific Interest

• 43% of land in England and Wales drains through a

Trust property

• we own approx 709 miles of coastline
• we own approx 709 miles of coastline
• we own 5,000 rented properties and look after about

29,000 buildings in all 29,000 buildings in all

• we own and rent out 1,500 farms…

A bit b t A bit more about us:

• Membership has now reached 4 million
• 55,000 volunteers give their support

, g pp

• 18 million visitors access our monitored sites
• we own 59 entire villages
• l h t l & 370 h lid

tt

• we own several hotels & 370 holiday cottages
• We own 3,749 oil tanks, 3,219 sewage treatment

facilities and 525 private water supplies facilities and 525 private water supplies

• and we look after 1 in 10 of all museums in

England, Wales and Northern Ireland… g ,

Gorgeous properties but: Gorgeous properties but:

• we can never sell any of them
• we can never sell any of them
• we have to recruit 700,000 new members every

t k b hi i i year to keep our membership income growing

• our costs are climbing by about £25m each year
• we need to spend £100m each year on major

property projects and two thirds of that comes f l i d t l t from legacies and external grants

• a lot can go wrong!

A BIG NUMBER!

£5 700 000 000 £5,700,000,000

(Just) the cost of the buildings we need (Just) the cost of the buildings we need to look after

NT survival equations NT survival equations

• 1. I – E = N

2 N > 0

• 2. N > 0

N L P

• 3. (N + L + G) > (P + A)
• 4. P > Need

Income sources Income sources

£m Sustainability score? (1-5) £m Sustainability score? (1 5) Membership 124 4 Commercial 22 2 Investment 47 4 Investment 47 4 Rents 35 4 Admissions 19 2 Legacies 46 2 Legacies 46 2 Grants/gifts 24 2 Other 5 3

Figure 1: Real income

160 140 160 120 100 Membership Legacies Commercial 60 80 £m Investment Grants/gifts Rents Ad i i 40 60 Admissions 20 01/2 02/3 03/4 04/5 05/6 06/7 07/8 08/9 09/10 10/11 11/12 12/13 13/14

Figure 2: Income sources by % of total Income Trend Adjusted for inflation 40% 45% 35% 40% Membership Trend 25% 30% 20% 25% Legacy Trend 10% 15% Rents Trend Investment Trend 5% 10% Grants/Gifts Trend Commercial Trend Admissions Trend 0% 01/2 02/3 03/4 04/5 05/6 06/7 07/8 08/9 09/10 10/11 11/12 12/13 13/14

Figure 4: Real expenditure

300.0 250.0 200.0 150.0 £m 100.0 50.0 0.0 03/4 04/5 05/6 06/7 07/8 08/9 09/10 10/11 11/12 12/13 13/14

NT POLICY: NT POLICY: 50% REDUCTION IN USE OF 50% REDUCTION IN USE OF FOSSIL FUELS BY 2020 86,000 MWh 43,000 MWh

Energy shift 2008-2020 Energy shift 2008 2020

lpg renewables 1% pg 8% fossil elec 46% 1% gas 17% 46%

fossil elec 27%

• il

renewables

• il

28%

10% gas 8% lpg 50% 8% 5%

ACTUAL 2008 Energy consumption PROJECTED 2020 (after 20% efficiency reductions) = 86,193 MWh total (of which c.99% = fossil fuel) = 68,954 MWh total (of which 50% = fossil fuel)

1 Energy Energy efficiency

10,000 MWhs

2

7 000 MWhs

2 Microgen

7,000 MWhs

Microgen

Add to energy efficienc 12% to efficiency 12% to make 20% energy reduction reduction

Solar thermal panels Hanbury Hall Hanbury Hall Grade 1 St ff t t DHW Staff + tenants DHW

3

10 000 MWh

3 OFF-OIL

10,000 MWhs

OFF-OIL switch to wood heat wood heat

4

5 000 MWh

Hydro

5,000 MWhs

Small-medium scale

Osbaston Mon Osbaston, Mon. Private scheme 150kW 150kW 670 MWh/yr QBM Styal would be: 47kW 220 MWh/y

4

20 000 MWh

4 Wind

20,000 MWhs

Wind

Small-med scale 50kW to 1.5MW

FOSSIL FUEL USE

90,000 100,000 70,000 80,000

um

50,000 60,000

per annu

30,000 40,000

MWHs

10,000 20,000

2008 baseline 4% 8% 12% +

• ff oil

+ micro + medium 2020 target efficiencies baseline 4% 8% 12%

• ff oil

micro medium target This is not a timeline, but actions within 2010-2020, against 2009 baseline

Energy self reliance by 2020 Energy self-reliance by 2020

£80 t t l it l tl ( ffi i i

• £80m total capital outlay (efficiencies +

renewables)

• £6m income p a

£6m income p.a.

• £1.2m savings p.a.

£ 2 f

• £7.2 total benefit p.a.
• 9% ROI
• 11 2 years payback
• 11.2 years payback

Our Energy costs Our Energy costs

• £5.6 million (in-hand energy use for electricity

and heat in 2010-11 (excluding transport fuel)

• = 2.6% of total non-wage expenditure 2010-

11.

• energy costs for 2020/21 = £11m
• energy costs for 2020/21 = £11m
• (based on OFGEM's projected increase for

electricity and gas by 2020 incl price increases electricity and gas by 2020 incl. price increases + potential cost of the Carbon Reduction Commitment) Commitment).

The raw ingredients The raw ingredients

• hawksbill turtle, gold, copper, iron, zinc,

Italian marble, ebony, and Honduran , y, mahogany

Carbon Carbon cycle: lif l life cycle analysis

Product displacement

Carbon accounting – substituting d f f il C d t wood for fossil C products

Product displacement -

Wooden Spoon Stainless Steel Plastic Spoon

Product displacement spoons

Spoon Steel Spoon Spoon

Energy required (MJ)

0.2 5.9 6.3

CO CO2 emissions (g CO2)

17 460 200 g CO 443 183

P t ti l

g CO2

• 443

183

Potential emissions saved

%

• 96

92

Hardcastle Crags – Gibson Mill j t d f d! project – wood from our wood!

The walkers’ café – ceramic stove, insulated floor & walls floor & walls, daylight!

New rooflights – optimising daylight g p g y g

Stourhead timber for use in the restoration of Barrington Farm

Sustainable business Sustainable business

the Trust has 4 sustainability objectives:

• sustain our operational business
• sustain our achievements in conservation
• sustain everyone’s environment to enhance

their quality of life

• promote our experience of sustainability

through campaigns and education through campaigns and education

Sustainable business

thi k f t i bilit

Sustainable business

we can think of sustainability as:

• ur social goals;
• ur social goals;
• ur environmental goals;
• ur financial goals.

these can be figured as a 'Russian doll' - the 3 ‘aspects of sustainability' embodied rather than aspects of sustainability embodied rather than separated into ‘pillars’ and we do all live on One Planet…

Sustainable business Sustainable business

"living within our means" is a crucial sustainability living within our means is a crucial sustainability principle, for individuals, families, corporates… the NT understands this principle well - take our Chorley Formula, for example - but we do not yet l it t ll th t d apply it to all that we do... We should better know our resources and their We should better know our resources and their potential sustained productivity before we use and

• ver-use them…

Our triple bottom li t l line tool

Sustainable Procurement

Principles into practice

Presented to:

Charity Sector Procurement Group

Dan Ware – September 2011

Sustainable Procurement

What is it?

According the relevant British Standard (BS8903) sustainable procurement practice will: sustainable procurement practice will:

• 1. reduce demand for resources - use less
• 2. minimize negative impacts of what we use
• 3. procure ethically and fairly
• 4. promote enterprise, diversity, craft, skills and

training training

Sustainable Procurement

The need to be frugal

“A penny saved is a penny earned” £1 of income gives us 20p profit – £1 of income gives us 20p profit – £1 of savings gives us £1 – …or maybe more than £1

Sustainable Procurement

Market prices

Examples of commodity price changes 2010 to 2011

40% 30% 35% 40% 20% 25% 30% 10% 15% 20% 0% 5% 10% 0% Services Construction works Construction materials Plastics Paper Diesel Gas Steel Food

Sustainable Procurement

NT supplier expenditure – year on year

Annual Supplier Expenditure

245

240

235 240 245 225 230 million

+2.3% +8.1%

217 222

215 220 £ / m 205 210 2008/09 2009/10 2010/11 Financial year

Sustainable Procurement

Customer expectations

Sustainable Procurement

What is it to the Trust?

One of our four Values and Behaviours is about thinking long term

Consider whole life cost impacts in procurement decisions: Long term view Balance of financial environmental social ethical reputational factors Balance of financial, environmental, social, ethical, reputational factors Sustainable does not mean expensive

Sustainable Procurement

A good example - The Co-operative

Ethical Operating Plan to bring it all together Ethical policies for the other group businesses The Bank’s ethical policy, customer led since 1992

Sustainable Procurement

A good example - The Co-operative

Supplemented with special standards for some goods and services Overarching policy based on ETI base code

Sustainable Procurement

A good example – The Co-operative

Sustainable procurement policy into practice: Published on internet RFP seeks confirmation of compliance Included in evaluation criteria Included in evaluation criteria Independent screening by Eiris during selection (for high-risk goods / services only) Contractual commitment Suppliers sign up to Sedex standards Ongoing audits and monitoring Ongoing audits and monitoring

Sustainable Procurement

A good example - The Co-operative

Annual report to demonstrate performance

Sustainable Procurement

Forum for the Future is a UK NGO leading the way in sustainable development thinking and practice

How are we doing now?

development thinking and practice. They have developed a benchmarking tool, Sustainable Procurement Assessment Framework (SPAF). This has six levels as follows:

Interpretation of SPAF scoring levels

Level 5 Leading

"Distinction"

Level 5 - Leading

Distinction

Level 4 - Enhancing

"Credit"

Level 3 - Practicing

"Pass"

What level is the Trust at now? What level would the public expect us to be at?

Level 3 Practicing

Pass

Level 2 - Embedding

"Working towards"

Level 1 - Foundation

"Working towards"

Level 1 Foundation

Working towards

Level 0 - Not yet on Level 1

"Failing" Level 3 is the minimum standard for an Level 3 is the minimum standard for an

• rganisation wishing to demonstrate credible

sustainable business practices

Sustainable Procurement

How are we doing now?

SPAF Score (Sept 2011) = 0.98 (out of 5) ( p ) ( )

An organisation may choose to pursue some SPAF measures to Level 4 or 5, to support their objectives Level 3 is the minimum standard for all SPAF measures, for any organisation wishing to demonstrate credible sustainable business practices Level 5 - Leading Level 4 - Enhancing Level 4 Enhancing Level 3 - Practicing

Target

Level 2 - Embedding Level 1 - Foundation Level 0 - Not yet on Level 1

Current

Now Dec-12 Dec-13

Sustainable Procurement

To move us towards SPAF Level 3 priority actions include:

Action plan

To move us towards SPAF Level 3, priority actions include:

Strategic and Management iss es Strategic and Management issues

• Define detailed social, economic and environmental objectives
• Develop sustainability measures
• Commit to sustainable procurement

P t I Procurement Issues

• Agree procurement strategy and accountabilities
• Implement governance framework

p g

• Develop sustainable procurement policy
• Analyse categories for sustainability risks and opportunities
• Implement category strategies
• Implement category strategies
• Develop capability and awareness across organisation

Sustainable Procurement

A ti ? 8 9 Any questions?

How can you help the NT How can you help the NT develop its sustainable business? Question time!

Question time! Question time!

1 h di if b i

• 1. how to diversify our business

i e finding potential new income streams i.e. finding potential new income streams, additional to our visitor-dependent businesses

Question time! Question time!

• 2. how to de-capitalise our work

i.e. how we might spend less to earn less but gain higher profit margin g g p g

Question time! Question time!

• 3. how to better invest our capital resources

p i.e. to make them work to greater benefit for l d f th h t t d

• urselves and for our cause, through targeted

investment in activities which directly deliver NT purposes on or off our properties deliver NT purposes, on or off our properties.

Question time! Question time!

• 4. how to reduce our expenditure so that we
• 4. how to reduce our expenditure so that we

can always live within our means i.e. living off renewable interest and not off capital

Question time! Question time!

• 5. how to supply our own needs from our
• wn renewable resources

i.e. harvesting our own renewable energy, water, food, timber… gy, , ,

Question time! Question time!

6 h t kill d l b th t

• 6. how to grow skills and labour so that we

can look after ourselves better i.e. developing a network of people with the necessary skills and equipment to enable us y q p and the communities within which we live to be more self-reliant

Question time! Question time!

7 how to use ‘full cost’ or ‘triple bottom line’

• 7. how to use full cost or triple bottom line

methodologies to much greater effect i.e. we need a more user-friendly and also more precise ‘TBL tool’ for our decision- ki ll l d j t making on all our plans and projects

Question time! Question time!

• 8. how to be more ethical across
• 8. how to be more ethical across
• ur entire business

Question time! Question time!

9 finally how to be more business like

• 9. finally - how to be more business like

i.e. in terms of management and financial g information - what should we know, to judge whether we were operating sustainably, or not...