Sustainability and the Apollo Effect
Sustainability & The Apollo Effect
Picture courtesy of Martin Hartley
Debby Lloyd Managing Director www.ecosearchglobal.com October 2009
©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
This month I have had the privilege of delivering my thoughts to Facilities Managers from key businesses in Utilities, Telecoms and IT. Below, are some extracts from these speeches, sharing with you my thoughts on the challenges ahead on our quest to organise businesses to comply with forthcoming regulations for carbon management. Sustainability & the Apollo Effect I would like to begin by saying that I am no tree hugger. I don’t eat tofu and I don’t have a beard – although I fully expect that to change as I get older. Fluffy environmental sentiments are just not me – although my views for some can seem a little extreme. What I am going to do today is link the bigger picture of climate change and sustainability into a business context and get you thinking about the areas you haven’t yet harnessed in your carbon programme crusades I’ve come up with an analogy - The Apollo Effect - It’s the 40th anniversary of man’s first landing on the moon. Imagine yourselves for a moment back in 1961 I know that will be hard for some of you who weren’t born but the fear in the USA at that time was about the threat of nuclear war and communism. Something so worrying it drove Kennedy into the space race… at huge political risk at a cost of billions of dollars to the American tax payer and at a time when they were just coming out of recession... Sound familiar? Now consider too – at that time there was no Colour TV, no mobile phone, no ipods or xboxes and no internet… as my son so kindly pointed out to me recently “mum you lived in the dark ages! What did you do before the internet?” “Lewis,” I said, “why do you think you’re on the planet today…? “ Cue teenager squirm! Sending a man to the moon at that time must have seemed like an impossible task But that race for space drove technology and innovation so far, arguably it prevented nuclear war, but it left a legacy of technology that we take for granted today …
©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
I’d like to share with you just one paragraph from President Kennedy’s speech made nearly 50 years ago in 1961 announcing the USA would be sending a man to the moon – by the end of the decade. He said and I quote directly from his speech:“This decision demands a major national commitment of scientific and technical manpower, materiel and facilities, and the possibility of their diversion from other important activities where they are already thinly spread. It means a degree of dedication, organization and discipline which have not always characterized our research and development efforts. It means we cannot afford undue work stoppages, inflated costs of material or talent, wasteful interagency rivalries, or a high turnover of key personnel. New objectives and new money cannot solve these problems. They could in fact, aggravate them further--unless every scientist, every engineer, every serviceman, every technician, contractor, and civil servant gives his personal pledge that this nation will move forward…”
The top 50 words from President Kennedy’s speech announcing that the USA Would put a man on the moon by the end of the 1960s as a Wordle
The sentiments in Kennedy’s speech could be applied to meeting the challenges associated with climate change and sustainability today. The seemingly impossible task of putting a man on the moon happened just 9 years after this statement was made - From a standing start. It succeeded because Kennedy took decisive action at the top and he embedded the responsibility into every person, every department and every organisation involved on the project. We too, need to embed responsibility for sustainability from the CEO to the night watchman. ©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
We can do it BUT we will need •
• •
joined up thinking innovative collaboration and real commitment from our leaders, Managers and all manner of personnel across our estates.
The Big Picture - Climate Change and Sustainability in Business How do we bring the effects of climate change on our businesses down to desk level? Now brace, yourself this is the doom and gloom bit - I should stand here with a scythe, wearing a hood at this point… The icecap on the North Pole is forecast to melt in 10 years. This will mean shipping lanes and supply routes and all those related freight, import, export, shipping and ports businesses will be impacted. The Gulf Stream could change course, which may impact fish stocks – food processors and food manufacturers will be affected. Weather impact may cause food shortages and mass migration of people. Just think about the impact on local and national economies... Rising sea levels and weather extremes will cause property damage – insurance will be difficult to obtain - anticipate property portfolio rationalisation as investors dump their property dinosaurs – tenants will leave costly and inefficient buildings. Lots of white noise… big picture stuff In business too we operate in a sea of white noise and monitor a variety of feedback mechanisms to check the health of our businesses – cost analysis, energy consumption, sales forecast, P&Ls, budgets, output, expenditure, employee attrition. All great indicators of health… or not Our planet is the same – but the feedback KPIs are oceans, weather patterns, rainforests, soil and people. When you look at both scenarios (planet & business) in isolation each of your feedback mechanisms tells a single story – but you need to bring them all together to see the full picture of health. When you then consider each of those indicators is dependent on the other for its existence – if one is failing it has a chain reaction and total breakdown can be the result. For example, when our businesses grow too large or too quickly, become disparate or disconnected through outsourced functions they fail to ©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
communicate internally -our business feedback mechanisms are damaged - we don’t hear, see or act fast enough to correct when we go off track. The point here is that unless you have a handle around what’s going on across all of your business indicators (internal and external) you wont truly be able to deliver holistic sustainable solutions – and you could be missing huge opportunities. In a building management context it’s like running your heating and your air-conditioning at the same time. They are both individually doing their job really well, but they are fighting each other. You might think that is an incredible analogy but that was a real scenario in a real company. It was discovered by the cleaner. Now would your cleaners think to flag that to you or would they assume it’s not their job? Sustainability – Are things really changing or is it business as usual? There’s one thing about all the frantic sustainability activity that causes me concern presently – and that’s when you scratch below the surface – it all APPEARS to be “business as usual”. We’re still buying our televisions – but now we have a £200 trade in discount on our old one, we are buying great little new cars because we can use a scrappage allowance. We hear the great PR machines of Tesco and Marks and Spencers making great announcements about how they’ve reduced their co2 emissions this year and how much they’ve saved. BUT - as an individual do you ever stop to consider the effect you contribute to when you get a free chicken with your “BOGOF” deals – (for those of you who shop at Waitrose that’s ‘Buy One Get One Free’!). So for your free chicken, how much rainforest has been lost? Do you understand how much fertilizer is applied to soils already under pressure of collapse because that farmer will go out of business unless he produces chickens faster to meet Tesco Margins? Now add in to the equation the amount of investor activity going into acquiring the most fertile parcels of land, soil and water technologies and you begin to wonder if this behaviour is sustainable… So in return YOU get points for recycling carrier bags – all very well. But it is a bit like turning up to an earthquake with a dustpan and brush. There’s an imbalance in many businesses… the supermarket-supplier relationship is just one example of where many businesses will have to evolve their models into a more balanced, collaborative and fair trade one –and unless YOU modify your actions as an individual ... will anything change? ©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
I firmly believe there will be huge consumer backlash against those organisations that promote sustainability with one hand, but actually are still behaving like its business as usual with the other. Carbon League Tables are due out in 2011, is your business going to be at the bottom of the league table in year one, what will that do for your reputation, share price, employee morale? How many of you have driven past Canary Wharf at night and seen the lights on in Barclays HQ for example? So now you know where your overdraft fees are going! Whose responsibility is it to change that?
View from the end of Millennium Bridge courtesy of Dimitry B on Flickr
My point here is - if we drive sustainable thinking into our employees in a business, then there’s a chance this may translate into their personal lives too… then you really get some bottom up momentum. So why are we faltering and what are some of the answers? From my side of the desk I am starting to see some carbon programmes falter, halt, get stuck and plateau. Signs that the low hanging fruit is exhausted and the only things left have such cross business complexity – people can’t get sign off, buy in, or even “face time” with decision makers. Now, if that decision maker was incentivised or penalised for that things would be very different, wouldn’t they? I’d like you to think for a moment… What truly cross functional collaboration are you harnessing on sustainability when you go about your day job? A large part of the issue is the siloed way divisions operate within businesses. Reporting lines and frameworks very often prevent collaboration, sharing of resources, information, goals and targets between divisions – we have to find ways to work around that. I see and hear of amazing carbon programme results using all sorts of technologies and improvements but as companies get down to the next carbon reduction programme level, they may have to unpick and unravel ©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
some of the work because in its current format it doesn’t apply across the entire organisation. Carbon consultancies can help but they need to teach organisations to “fish” – and presently the sticking plaster, hit and run consulting could actually cause businesses more problems than they solve… We all know that our IT Departments are huge users of energy – I’ve seen retail banks operating 27,000 servers at 23% utilisation - but when do we ever think to share the costs of that energy with the very divisions that demand the infrastructure? Do we sit down with the CTO faced with a 40% cut in IT budget and work through creative models that perhaps means devolving energy budgets or cost reduction targets across divisions? When you want to implement large capex projects your CFO has the knowledge to develop internal company structures that means you can offset capex costs of replacement lighting across a global infrastructure – payback is offset using the energy savings. If you feel you are faltering or need new ideas… harness the knowledge of the functional job experts to help you find the solutions, this is how you find new business models. How do we drive sustainability programmes across our organisations? How many companies in the audience have published carbon reduction targets? [Response: In Utilities more than 80%, but worryingly in Facilities Management less than 20% reported having published carbon reduction targets] Now how many of you have hard and fast sustainability targets in your own job description or performance management targets? [Response: Only two people out of 93 reported having any individual sustainability targets relative to their job performance.] Sustainability related targets should be embedded in the heart of every job and held by every divisional head. Accountability for carbon is coming through new legislation for Directors potentially - that will filter down by divisions – but why not embed it in everyone’s role - from the CEO to the cleaner? I can see the day when personal employee carbon budgets will be in place – the tools are already out there that can make it happen – we need to do more work in embedding it for cross business collaboration. Carrying carbon targets on this basis would also benefit organisations in a number of ways from more effective teamwork, greater cross business ©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
communication and internal competition for efficiencies – which could be driven by bonus schemes… Sustainability needs to be driven down to individual level – it becomes a personal responsibility. So what of the future ? Thousands of green jobs? Not right now and I have a number of reasons for thinking that various organisations and Government bodies have overestimated new jobs. The original trail blazing greenies and those key people in subject matter expert roles for major corporate businesses are becoming over-stretched. Those companies that put off investing in building their capabilities in sustainability will face attrition as a result. And because of the job I do – I know where those people are… but of course if you know I don’t know, then you better let me know! As a result of the recognized talent shortages and issues from today – Merger and Acquisition activity is on the up – It’s quite simply easier to buy than to build… Companies also vastly underestimate the contribution of individuals coming from alternative industries - retraining and integrating from alternative industries is painful but actually this is where I’m seeing creativity and new business models emerge. Yes there are organisations creating new jobs – EcoSearch last year grew 500% purely from placing people in cleantech, renewables and carbon management, but the pool of experienced people is drying up. In addition to the jobs we see right here, right now there is a piece of the jigsaw missing – a new role – that of the Carbon Director… I believe this role is needed to start or pull disparate carbon programmes back on track. It is this role that will take Sustainable strategy and thought leadership into operations – and that is not the skillset of the CSR person or the Environmental person or the Health and Safety officer or the energy manager because they simply do not posses the right combination of change management ability coupled with cross business CEO level empowerment. Bringing it back to the Apollo Effect So amidst that sea of white noise that you are all operating in, with seemingly impossible goals, I’d encourage you all harness your job experts and influence sustainable targets into job roles, and daily thought patterns, as part of the broader change management programme. The space race was a catalyst for change. In the same way Climate change will be too. ©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009
Sustainability and the Apollo Effect
We have a head start – we have the technologies, materials and social intelligence – if we choose to use them. President Kennedy’s message was so clear, so strong and so committed. He made an impossible goal relate to every person involved in that programme so much so that the story goes; If you asked the janitor sweeping the floor at NASA what he was doing he would reply “I’m putting a man on the moon by the end of the decade”
I hope today gives you some food for thought and some hope about how individuals can be harnessed for what may seem impossible goals… I hope you get to create your own Apollo effect – and I wish you luck.
Debby Lloyd Managing Director
©Ecosearch www.ecosearchglobal.com +44 0845 241 4810
October 2009