Transcript Slide 1

IEMA Sustainable Business: Environmental
Professionals Driving Change
Henrietta Anstey – BAE Systems FIEMA
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1
Overview
Setting the scene
Building the business case
1 year on – what’s changed?
Examples
Concluding remarks – personal reflections
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Overview
Setting the scene
Who are we and what do we do
How we are set up
What are the challenges facing us
What are the environmental issues facing us
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Setting the scene - Our Global Presence
United Kingdom
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Sweden
31,600 people
Largest supplier to MoD
57 business locations
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1,500 people
5 business locations
India
•
Defence Land Systems
(26%)
United States
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46,900 people
4th largest supplier to DoD
126 locations in 38 states
Saudi Arabia
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4,900 people
8 business locations
South Africa
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600 people
4 business locations
2010 Sales £22.3bn
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Australia
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6,100 people
24 business locations
Setting the scene - 2011 Group Strategic Framework
Customer
focus
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Financial
performance
Programme
execution
Setting the Scene - Our challenges
• Government Departments with budgetary constraints
• Reputational issues
• Business acquisition brings organisation issues
• Many different cultures within our global business
• A sustainable defence company?
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Setting the scene - Our environmental issues
Within our operational control:
• Typical issues associated with engineering and manufacturing activities –
material use, waste generation, water use, solvent use, energy and emissions on a
global scale
• Some legacy issues associated with acquiring new businesses
For us to influence:
• Hazardous material use in product design
• Energy consumption and emissions in product use
• Design for disposal
For us to work with:
• Key suppliers – assist understanding on environmental sustainability
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Overview
Building the business case
What worked for us
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Environmental Sustainability as a lever for efficiency
Financial Risk
(Drives out cost)
• Energy costs predicted to rise at well above the rate of inflation over next 10 yrs.
• BAE Systems does not have a definitive picture of global energy expenditure.
• Carbon taxes will also apply and will be market led.
• Strategies to address energy consumption, including demand management, self
generation and behavioural change can deliver efficiency and reduce cost.
Allows
compliance with
legislation
• Australian National Greenhouse Energy Reporting System
• UK Carbon Reduction Commitment Energy Efficiency Scheme
• Accurate and verifiable energy data must be reported and ultimately energy
reduction achieved.
Non Financial
risk (Reputation)
• BAE Systems Plc will be ranked in the UK CRC publicly disclosed performance
league table from October 2011.
• Our performance position could affect our reputation.
Provides
competitive
advantage
Fits Total
Performance
• Customers (DoD, ADF, MoD) need to deliver resource efficiency which includes
efficient buildings, products & operations and there is an expectation for industry to
assist. Responding to these needs should make us more efficient.
• Acting on environmental sustainability is consistent with our Values and Total
Performance culture
• It ensures we demonstrably deliver our Environmental Policy
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Terminology
Sustainability
Integrated business strategy that drives sustainable performance through managing the interdependencies between
financial, social and environmental issues across diverse operations and markets
Environmental Sustainability
Delivery of financial and programme results while progressively reducing resource intensity and environmental
impacts of products and services throughout life cycle
Environmental Management
Management of areas where the business impacts the environment
Haz/Toxic
Materials
Pollution
Control
Process
• Waste streams –
solid, liquid,
vapours
• Paints, other
volatiles
Product
• In-use emissions
• After-life disposal
Process
• Process chemicals
• Toxic or
hazardous waste
Product
• Asbestos, lead,
cad, beryllium, etc.
• Nuclear materials
• Explosives,
munitions
Resource
Management
Energy
Process
• Facilities, machinery
• Renewables
Product
• Supply chain (pre-process).
• Customer (post delivery)
Water
Process
• Dip tanks, steam cleaning
Product
• Water recoup from exhaust
• Water generator on board
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Materials
Efficiency
Scarce
Materials
Process
• Impr. yield, less
scrap & rework
• Recycling
and items from
unreliable,
exploitative or
hostile sources
Product
• Minimum weight
design
• Less-energyintensive materials
• Rare earths
• Titanium
• ‘Conflict minerals’
• Alloying elements
for HS steel
Backdrop: Peers and Competitors (Public Data)
Stakeholder Message
Global Target & Timeline
Achievement
“Go Green”
25% absolute reduction
(2007-2012) in waste,
water & carbon
2008 11% reduction in water. In
2009 purchased equivalent of 5%
total electricity consumption in
renewable energy credits
“Create shareholder value
by producing energy in a
way that is affordable,
secure and doesn’t damage
the environment”
Unclear if BP have
quantified forward looking
targets
Between 2002 and 2009,
cumulative energy efficiency
resulted in greenhouse gas
reductions of 7.9m tonnes
“developing innovative
solutions to help address
the global issues of
pollution & climate change”
25% reductions (20072012) in waste, water,
energy & greenhouse
gases
In 2009 outperformed in waste,
energy and greenhouse gas
reductions.
“well placed to help society
address the problems of
climate change and energy
security.
To achieve world class
performance at every site.
2007 – 2009 10%
reduction in energy
consumed
23% energy reduction in 2008
against an interim target of 6.6%
“We aim to improve the
environmental performance
of our products &
operations
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Start point and desired end point?
Blissful
Ignorance
Defensive
Compliant
Managerial
Strategic
“There’s no
issue or
problem here”
“It didn’t
happen, it’s
not our fault,
it isn’t our job
to fix it”
“We’ll do as
much as we
have to”
“It’s business,
stupid”
“It gives us
competitive
edge”
Civil
Partnerships
“We have to
make sure
everybody
does it”
Institute of Environmental Management & Assessment (IEMA), “Change Management
for Sustainable Development – Understanding where the organisation is”
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What was best for BAE Systems?
Passive
“Do nothing
now…reconsider later”
Forego opportunity to
save cost
No requirement for
investment
(in the short term)
Accept the UK CRC
financial penalties
Shrug off external CR
Report criticism
Proactive
Leadership
“Proceed at a pace at which we can
“A global leader in
sensibly and responsibly deliver”
Environmental Sustainability”
Requires verifiable baseline
data, maturing to credible,
externally assured dataset
Allows outward
publication of intentions
and achievements
When ready, sign up to
quantifiable & realistic
resource efficiency targets
Needs global
involvement, and
agreement
Needs some level of
investment
Requires considered and
planned investment to
remain a leader
Benefit from improved
public image
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Overview
1 year on – what’s changed?
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1 year on
• An EC Objective from January 2011 which required
• All our global businesses needed to confirm their baseline for energy, waste
and water and set targets and achieve them before the end of 2011.
• Use the Environmental Sustainability Maturity Matrix (ESMM) to determine
their level of maturity for Operations, Product and Supplier.
• Level 4 states
“The Enterprise values environmental sustainability as delivering a strategic
advantage. It supports the need to take a longer term view. Employee
commitment drives change. The strategy is understood and delivered locally.”
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1 year on
• Data – improved data (both coverage and consistency) & reporting tools
• Educational packages – material for engineers and procurement
professionals, IEMA courses for SHE practitioners
• The main functions are taking ownership of the subject and seeking to
skill up their employees
• Sustainability competencies for engineers throughout their careers –
IEMA and other engineering institutes
• Working together to produce guidance and advice for the subject
through various working groups
• Giving those that are knowledgeable access to influence the decision
makers
• Publicising and sharing good practice
• Building networks and increasing the professionalism of the
environmentalists – CEnv
• Staying close to the customer – SPWG and DSTL programme
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Overview
Examples
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In the businesses
Transforming Munitions
• In 2002 facing closure but working together
• 15yrs £2bn partnering agreement 2008
• 3 sites
• No explicit sustainability but we did it anyway
• BREEAM Standards
• Spend to save – forge and other key
equipment
• 18,000tonnes of CO2 p.a. saved
• Increased business and environmental
efficiency and huge improvements for the
workforce
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In the businesses
‘Sustainability Pathfinder’
• Frigate replacement Type 26
• Sustainability measures at the design
phase
• Policy requirement
• Contractual requirement
• Affordability requirement
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DE&S Sustainability Priorities
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P1 - Energy efficiency, emissions and resilience– all platforms
P2 - Reducing use of materials of concern/scarce resources
Reducing through-life training costs
• real versus simulation
• cohort v individual paced training, drip-feed training for task
Reducing through-life costs, including support miles, packaging, consumables &
waste
• non-oil plastics
• remote support technology
Ensuring resilience to long-term climatic changes
• modular design
• operational posture changes
Optimising social and economic benefits
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Implications on the environment
Contribution to Climate
Change
Use of Non-Renewable
Resources
Use of Non-Renewable
Resources
Materials,
Consumables
Fuel, Energy
Disturbance
of Protected
Species
Loss of
Biodiversity
Noise, Odour,
Light
Emissions to Land
Emissions to Water
Emissions to Air
Contaminated Land
Water Pollution
Air Pollution
Contribution to
Climate Change
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Nuisance
Implications on the MOD
Contribution to Climate
Change
Use of Non-Renewable
Resources
Cost of fuel
Use of Non-Renewable
Resources
Scarcity of materials,
restrictions on hazardous
Materials,
Consumables materials, disposal issues
Fuel, Energy
Disturbance
of Protected
Species
Loss of
Biodiversity
Stakeholder
interest,
reputation
Noise, Odour,
Light
Emissions to Land
Contaminated Land
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Emissions to Water
Water Pollution
Legislation,
prosecution,
limitations on
port use
Emissions to Air
Air Pollution
Contribution to
Climate Change
Nuisance
Legislation,
prosecution,
limitations on
port use
Overview
Concluding remarks – personal reflections
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Concluding remarks
Images courtesy of Google ‘Herding Cats’
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