Environment and Energy Diagnostic Report

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Introduction

Environment and Energy Diagnostic

The Environment and Energy Diagnostic assesses a company's position in seven sustainability elements: energy use, water use, materials utilisation, waste, strategy and compliance, environmental management systems and supply chain management. It is an easy to use diagnostic which requires yes or no answers. It provides suggestions of what you might do next to improve your sustainability. The report also gives you an idea of your current sustainability performance compared to other businesses.

A range of fact sheets and checklists are available to assist companies manage their environment and energy risks to improve productivity. The factsheets and checklists are available at the Ai Group Business Improvement and Growth Resource Centre.

Ai Group's Environment and Energy Team also offers a range of consulting and training services to assist companies understand and manage their environment and energy risks. These services include:

Energy

Energy audits and assessments
Feasibility and investigative studies
Energy contract negotiations

Environment compliance and risk

Environment compliance assessments and risk reviews
Assistance with all Australian Packaging Covenant (APC) requirements

Training

Tailored onsite training in environment compliance and risk management, operational management and energy efficiency

Government assistance programs

Free or discounted programs to help you reduce your costs

Enterprise Connect

Ai Group and Enterprise Connect are working together to help eligible small and medium manufacturers become more innovative, productive and competitive – www.enterpriseconnect.gov.au

For further information, contact Ai Group's Business Improvement and Growth Resource Centre team at big@aigroup.com.au or visit the Business Improvement and Growth Resource Centre.

About this report

The report gives you a high level overview of your business's position in seven sustainability elements: energy use, water use, materials utilisation, waste, strategy and compliance, environmental management systems and supply chain management. It provides suggestions of what you might do next to improve your sustainability. The report also gives you an idea of your current sustainability performance compared to other businesses.

Definitions

Title	Description
E - Understanding	No real plans or activity but an understanding of the benefits of undertaking action and the types of actions that may be relevant
D - Informal Activity	Informal actions have been undertaken but they are not planned or systematic
C - Planned and Systematic Activity	Comprehensive, planned and systematic actions are being implemented
B - Embedded Plans and Activities	Plans have been fully implemented and embedded in the business's operations. Most actions have been completed. There is ongoing measuring, monitoring and reporting
A - Best Practice	An industry leader with plans fully implemented over more than one financial year. There is a continuous improvement culture in this sustainability element. There are ongoing proactive reviews of the plans, strategies and actions.

Executive summary

The graph is designed to show your performance based on the answers provided. It also gives you an idea of how you compare with other businesses.

Yellow stroke: Your results
Green stroke: Comparison average

Section 1: Energy use

By reducing energy use and becoming more energy efficient, businesses can save money and reduce their carbon footprint. Improving energy management can be simple, like switching off equipment when not in use, or more involved, like using metering technologies.

Energy conservation means minimising energy use and wastage. Energy efficiency means using less energy to provide the same level of goods or services. Energy intensity measures how efficiently energy is being used. It's the amount of energy consumed per unit of production, service delivery or other driver of energy use. Energy use can impact a business directly or indirectly. Poor energy design in goods or services may drive energy consumption for end users.

Feedback

You do not understand the importance of managing energy use and the benefits of energy efficiency.

You understand the importance of managing energy use and the benefits of energy efficiency.

You are committed to using energy more efficiently within the business. You have implemented some ad hoc actions and you plan to develop an energy management plan.

You have an energy management plan and have implemented some measures to manage energy use and efficiency.

You have a planned and systematic approach to energy management and energy efficiency. You have achieved your energy targets and you are able to calculate your energy intensity.

You have achieved excellence in energy management comparable with best in class/sector. Other businesses may benchmark against you and may be influencing others in your supply chain or industry.

Current practice:

Opportunities for improvements

Increase your understanding of the impacts of energy use in your business including electricity, gas and any fuels that the business uses.
Ensure you understand your energy bills.
Look for areas where energy is wasted and seek to reduce the wastage.
Look for opportunities to improve heating ventilation and air-conditioning efficiency.
Review lighting and ensure energy-efficient lights are used where possible.
Commit to developing a simple energy management plan.

Increase your understanding of the impacts of energy use in your business including electricity, gas and any fuels that the business uses.
Ensure you understand your energy bills.
Look for areas where energy is wasted and seek to reduce the wastage.
Look for opportunities to improve heating ventilation and air-conditioning efficiency.
Review lighting and ensure energy-efficient lights are used where possible.
Speak to your energy supplier about ways to minimise your energy costs.
Commit to developing an energy management plan.
Consider government grants for energy efficiency improvements.
If your premises are leased, discuss rental adjustment arrangements with the owner to reflect any actions taken to install more energy-efficient equipment.

Commit to the development of an energy management plan in conjunction with key staff to ensure whole of business ownership and support.
Plan to reduce energy consumption, improve energy efficiency and save costs.
Consider an initial energy audit to assist in the development of the energy management plan.
Look for seasonal impacts of energy consumption and plan to take measures to improve efficiency.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Check if there is an opportunity for an energy efficiency retrofit.
Consider government grants for audits and energy efficiency improvements.
If your premises are leased, discuss rental adjustment arrangements with the owner to reflect any actions taken to install more energy-efficient equipment.

Plan to reduce energy consumption, improve energy efficiency and save costs.
Consider developing an energy management plan in conjunction with key staff to ensure whole of business ownership and support.
Consider an initial energy audit to assist in the development of the energy management plan.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Consider energy efficiency when procuring new equipment, devices or appliances.
Investigate alternative power sources such as solar PV, natural light, insulation, etc.

Plan to reduce energy consumption, improve energy efficiency and save costs.
Develop an energy management plan in conjunction with key staff to ensure whole of business ownership and support.
Consider an initial energy audit to assist in the development of the energy management plan.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Consider energy efficiency when procuring new equipment, devices or appliances, and/or designing new processes.
Investigate alternative power sources such as solar PV, or other energy efficiency initiatives such as the use of natural light, insulation, etc.
Consider government grants for energy efficiency improvements.

Plan to reduce energy consumption, improve energy efficiency and save costs.
Develop an energy management plan in conjunction with key staff to ensure whole of business ownership and support.
Consider an initial energy audit to assist in the development of the energy management plan.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Consider energy efficiency when procuring new equipment, devices or appliances.
Investigate alternative power sources such as solar PV, natural light, insulation, etc.
Consider government grants for energy efficiency improvements.

Monitor your energy use and costs and include the results in your accounting and reporting.
Engage your staff on energy efficiency measures.
Consider upgrading appliances, devices and equipment to become more energy efficient.
Review premises for energy efficiency improvements.
Run your energy management plan over more than one business cycle.

Run the energy management plan over more than one business cycle and have the energy reduction and energy efficiency performance verified by an energy audit.
Ensure factors such as heating, ventilation and air-conditioning, lighting, motors, compressed air, pumps, boilers, IT, coolers and heaters, power generation and industrial processes are included in the plan.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Embed the results of the plan into your accounting and reporting.
Engage your staff in your initiatives and consider giving a member of staff specific energy management duties.

Run the energy management plan over more than one business cycle and have the energy reduction and energy efficiency performance verified by an energy audit.
Ensure factors such as heating, ventilation and air-conditioning, lighting, motors, compressed air, pumps, boilers, IT, coolers and heaters, power generation and industrial processes are included in the plan.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Ensure the energy efficiency targets are aligned with business objectives.
Review mass energy flows and losses that occur within the business and understand the drivers of energy use.
Engage your staff in your initiatives and consider giving a member of staff specific energy management duties.

Run the energy management plan over more than one business cycle and have the energy reduction and energy efficiency performance verified by an independent energy audit.
Ensure factors such as heating, ventilation and air-conditioning, and lighting are included.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Ensure the energy efficiency targets are aligned with business objectives.
Understand the drivers of energy use within the business.

Run the energy management plan over more than one business cycle and have the energy reduction and energy efficiency performance verified by an independent energy audit.
Ensure the energy efficiency targets are aligned with business objectives.
Consider drivers of excess energy use such as poor maintenance regimes and inefficient processes and procedures.
Ensure factors such as heating, ventilation and air-conditioning, lighting, motors, compressed air, pumps, boilers, IT, coolers and heaters, power generation and industrial processes are included.
Review mass energy flows and losses that occur within the business and understand the drivers of energy use.
Ensure the energy efficiency targets are aligned with business objectives.
Review mass energy flows and losses that occur within the business.
Understand the drivers of energy use within the business.

Promote achievements to relevant stakeholders such as customers, suppliers and staff.
Consider seeking recognition through awards.
Commit to continual improvement.

Promote achievements to relevant stakeholders such as customers, suppliers and staff.
Consider seeking recognition through awards.
Seek to influence others and drive innovation.
Commit to continual improvement.

Promote achievements to relevant stakeholders such as customers, suppliers and staff.
Consider seeking recognition through awards.
Seek to influence others and drive innovation.
Consider applying for a grant.
Commit to continual improvement.

Section 2: Water use

Australia is a drought-prone nation with increasing water demands. Although water may be a low-cost business input, we must save as much as possible.

Water is used in production processes and business support functions like kitchens and bathrooms. Water conservation means reducing water use and using recycled wastewater wherever possible. Water efficiency means using the least amount of water to produce the required amount of goods or services.

Water intensity measures how efficiently water is being used. It's the amount of water consumed per unit of production, service delivery or other driver of water use.

Water use impacts a business directly or indirectly. Poor water design in goods or services may drive water consumption for end users.

Feedback

You do not understand the importance and benefits of managing water and wastewater efficiently.

You understand the importance and benefits of managing water and wastewater efficiently.

You are committed to reducing your water use and becoming more water efficient. You have implemented some actions already to improve water efficiency.

You have a planned and systematic approach to managing water and you are implementing actions to become more water efficient.

You have achieved the water management targets set under your water management plan and you are able to calculate your water intensity.

You have achieved excellence in water management comparable with best in class/sector. Other businesses may benchmark against you and you may be influencing others in your supply chain or industry.

Current practice:

Opportunities for improvements

Increase your understanding of the impacts of water use in your business and consider further action to reduce water use.
Maintain water infrastructure such as taps and pipes to reduce leaks and wastage.
Review your purchasing policies for water infrastructure to ensure new equipment is water efficient.

Increase your understanding of the impacts of water use in your business and consider further action to reduce water use.
Commit to developing a water management plan and a water efficiency policy.
Engage staff on ways to save water.
Maintain water infrastructure such as taps and pipes to reduce leaks and wastage.
Review your purchasing policies for water infrastructure to ensure new equipment is water efficient.

Increase your understanding of the impacts of water use in the business and consider further action to reduce water use.
Commit to developing a water management plan and a water efficiency policy.
Engage staff on ways to save water.
Review trade waste for water component.
Investigate alternative sources of supply and disposal.

Develop a water management and efficiency plan including targets, monitoring and reporting, appropriate for your level of consumption.
Consider an initial water audit.
Install water saving devices in kitchens and bathrooms.
Carry out repairs and maintenance regularly.
Put up signage for staff to encourage water saving.

Develop a water management plan in conjunction with key staff that includes targets, monitoring and reporting.
Plan to reduce water use and improve water efficiency.
Conduct an initial water audit.
Devise a preventive maintenance program.
Educate and train staff in waterwise practices.

Develop a water management plan in conjunction with key staff that includes targets, monitoring and reporting.
Plan to reduce water use and improve water efficiency.
Include the protection of stormwater drains in the plan.
Ensure the plan includes the appropriate storage of contaminants.
Conduct an initial water audit.
Devise a preventive maintenance program.
Educate and train staff in waterwise practices.

Continue to monitor the water management plan and report results including for wastewater.
Communicate the plan to staff and appoint champions within the business.
Integrate the water performance of the business with formal management reporting.

Continue with the current approach to demonstrate sustained improvement and report water usage to stakeholders.
Monitor water intensity to drive improvements in process, plant and behaviour.
Review water and wastewater reduction targets.
Communicate the plan to staff and appoint champions within the business.
Integrate the water performance of the business with formal management reporting.

Run the water management plan over more than one business cycle and have the water reduction and water efficiency performance verified by an independent audit.
Consider drivers of excess water use such as poor maintenance regimes and inefficient processes and procedures.

Consider the use of technology-based recording and reporting systems.
Look at the supply chain to see if wastewater can be reclaimed or reused.
Align the water efficiency targets with business objectives.
Embed the plan throughout the business.

Consider the use of technology-based recording and reporting systems.
Look at the supply chain to see if wastewater can be reclaimed or reused.
Align the water efficiency targets with business objectives.
Consider entering relevant awards.
Benchmark against competitors and/or similar industries.
Consider ISO 9001 or 14001.

Conduct benchmarking and assess performance against industry best practice.
Promote achievements to markets, supply chains and within the business.
Consider seeking recognition through local, national, international and industry awards.
Commit to continual improvement.

Section 3: Materials use

Materials are the physical inputs to the production of your goods or services. They may be the unprocessed raw materials used in manufacturing processes or they may be ready-made goods such as paper for your photocopying machine. More efficient use of materials means less waste and greater profitability and involves all processes from design of goods or services, manufacture, packaging, product stewardship and procurement.

We can measure how efficiently we are utilising materials by calculating the materials intensity. That is, the quantity of materials consumed per unit of production or service delivery.

Feedback

You do not understand the impact of the materials used in your business and the importance of materials efficiency.

You understand the impact of the materials used in your business and the importance of materials efficiency.

You have taken steps to reduce materials inputs and to utilise your inputs efficiently.

You have a materials efficiency plan that is being implemented which integrates with the production planning processes and business reporting systems.

You have implemented a formal materials efficiency plan which is embedded and communicated throughout the business.

You are considered a leader in materials utilisation management comparable with best in class/sector.

Current practice:

Opportunities for improvements

Investigate the impacts of materials use in your business and consider action to reduce usage and/or become more efficient.
Commit to the development of a materials management plan.
Commit to the development of a sustainable procurement policy.

Investigate the impacts of materials use in your business and consider action to reduce usage and/or become more efficient.
Commit to the development of a materials management plan.
Commit to the development of a sustainable procurement policy.
Review the design of any products or services for efficiency gains.
Review processes for efficiency gains.

Develop a materials management plan for any major uses of materials in conjunction with key staff.
Include efficiency targets, monitoring and reporting.
Review procurement guidelines.

Develop a materials management plan in conjunction with relevant staff.
Include efficiency targets, monitoring and reporting.
Review the principles of 'Lean Manufacturing' to see where they may apply to materials management.
Consider the use of remanufactured equipment.
Review procurement guidelines.

Run the materials management plan over multiple business cycles.
Integrate the results into the business's accounting and reporting.
Refine its measurement methodologies and incorporate lessons learnt and feedback from users.
Communicate the plan throughout the business.

Run the materials management plan over multiple business cycles.
Refine its measurement methodologies and incorporate lessons learnt and feedback from users.
Integrate the results into the business's accounting and reporting.
Review the principles of the Life Cycle Assessment framework for mapping the total environmental impacts of products.
Communicate the plan throughout the business.

Refine the materials management plan to incorporate stakeholder views and best practice.
Investigate what similar businesses are doing in this area.
Communicate to staff any achievements.

Refine the materials management plan to incorporate stakeholder views and best practice.
Develop a 'cradle-to-grave' philosophy about the use of materials and design of new products.
Investigate what similar businesses are doing in this area.
Communicate to staff any achievements.
Consider entering relevant awards.

Promote achievements in markets, supply chains and within your business.
Consider seeking recognition through local, national, international and industry awards.
Commit to continual improvement.

Section 4: Waste and resource recovery

Waste can occur in every area of a business: energy, water, materials, time and productivity but in this section of the report waste refers to the leftover inputs that are often thrown away. Waste costs also include transport, disposal, storage and labour. Through effective waste management, businesses can reduce the amount of waste and recover some of the remaining value. The Waste Hierarchy is a valuable guide to managing waste: (from most preferable to least preferable) Avoid, Reduce, Reuse, Recycle, Recover, Treat, Contain, Dispose.

Waste impacts a business directly or indirectly, e.g. excessive packaging may increase waste for end users.

Feedback

You do not have an understanding of the benefits of managing waste wisely, including complying with regulations.

You have an understanding of the benefits of managing waste wisely, including complying with regulations.

You have taken steps to reduce your waste and manage your waste appropriately.

You have a waste management plan that includes processes, procedures and targets for reducing, monitoring and reporting waste.

You have successfully implemented a waste management plan (that includes waste reduction targets, resource recovery and appropriate management of waste) and you've achieved targets and reported results.

You are considered a leader in waste management comparable with best in class/sector.

Current practice:

Opportunities for improvements

Increase your understanding of the impacts of waste in your business and consider further action.
Monitor waste and develop a waste management policy.
Shift your business away from paper to electronic document management.
Ensure you review the efficiency and environmental impacts of new electronic equipment such as printers and computers.
Reuse and recycle used paper.

Increase your understanding of the impacts of waste in your business and consider further action.
Monitor waste and develop a waste management policy.
Shift your business away from paper to electronic document management.
Ensure you review the efficiency and environmental impacts of new electronic equipment such as printers and computers.
Reuse and recycle used paper.
Consider a waste audit to fully understand the different types and volumes of the waste you generate.

Develop a waste management plan that includes the origin of the waste together with reuse and recycling practices and potential.
Conduct a waste audit (internal or external) as part of the development of the plan.
Involve staff in your plan to reduce waste.

Develop a waste management plan that includes the origin of the waste together with reuse and recycling practices and potential.
Conduct a waste audit (internal or external) as part of the development of the plan.
Educate and train staff in waste management.
Look for areas where waste heat or cooling can be harnessed for reuse.

Run the waste management plan over more than one business cycle.
Have the waste reduction performance verified by a waste audit.

Run the waste management plan over more than one business cycle.
Have the waste reduction performance verified by a waste audit.
Include results in company accounts and reporting.
Engage suppliers and customers about reducing waste.
Investigate accepting the return of your products at the end of their life.
Investigate using recyclable containers and packaging.

Continue to refine and improve the waste management plan by embedding acquired knowledge, feedback and other best practice into the process.
Consider communicating achievements to relevant stakeholders and within the business.
Investigate what other similar businesses are doing in this area.

Continue to refine and improve the waste management plan by embedding acquired knowledge, feedback and other best practice into the process.
Consider communicating achievements to relevant stakeholders and within the business.
Investigate what other similar businesses are doing in this area.
Use your success in marketing materials and on your website.

Continue to refine and improve the waste management plan by embedding acquired knowledge, feedback and other best practice into the process.
Consider communicating achievements to relevant stakeholders and within the business.
Investigate what other similar businesses are doing in this area.
Use your success in marketing materials and on your website.
Consider ISO 9001 or 14001.

Promote achievements in markets, supply chains and within the business.
Consider seeking recognition through local, national, international and industry awards.
Commit to continual improvement.

Section 5: Supply chain management

Consumers may wish to acquire goods or services from businesses that are actively engaged in more environmentally responsible practices. Understanding all areas of your supply chain can reduce risks and provide opportunities to collaborate to save costs or innovate.

Large organisations that you may wish to supply are now including proof of sustainable practices as part of their tendering requirements. You may be able to improve waste and material utilisation outcomes by engaging with your supply chain. To continue to be successful in a changing world, you must be able to understand and adapt to the changing needs of your supply chain.

Feedback

You do not have an understanding of the sustainability standards and in your supply chain.

You have an understanding of the sustainability standards and in your supply chain.

You have taken steps to engage with members of your supply chain to discuss environmental sustainability standards and issues to ensure you understand their concerns, requirements and opportunities.

You have a systematic plan to proactively engage your supply chain about adapting to changing environmental regulations and the demands of the market. The plan also aims to improve sustainability outcomes such as removing waste and improving materials utilisation across the whole supply chain.

You systematically engage your supply chain to continuously improve sustainability outcomes and your policy for engagement is embedded and communicated throughout your business.

You are considered a leader in sustainable supply chain management and in reducing the environmental impacts of your business's activities.

Current practice:

Opportunities for improvements

Engage with key members of your supply chain to understand their environmental sustainability concerns, requirements and any initiatives under consideration.
Identify opportunities for product/service development based on the sustainability opportunities identified.
Consider the environmental credentials of suppliers of goods and services to your business.

Develop policies and targets to improve sustainable practices and meet supply chain or market requirements.
Create action plans to engage members of your supply chain.
Investigate life cycle analysis of your products and/or services.
Review the principles of the Life Cycle Assessment framework for mapping the total environmental impacts of products.

Ensure that there is commitment to sustainability supply chain engagement at all levels of the business.
Continue to engage members of the supply chain about future sustainability intentions and formalise the supply chain sustainability requirements.
Develop action plans to help achieve targets, monitor progress and report on achievements.
Review the life cycle of your products and services and consider product stewardship policies.

Formalise a continuous improvement plan to maximise the sustainability impact on your supply chain.
Undertake a formal sustainability audit or life cycle analysis of the supply chain.
Undertake on-going monitoring and reporting with a focus on improving trends over time.
Develop business cases for sustainability improvements for processes, product and service development.
Work to ensure product stewardship along the supply chain.

Promote achievements to all members of the supply chain, to markets and within the business.
Consider seeking recognition through local, national, international and industry awards.
Actively try to influence your industry to collaborate in identifying and developing opportunities to increase sustainability in the supply chain.

Section 6: Strategy & compliance

Having a sustainability strategy, or embedding sustainability elements in all your business strategies, means that you will drive cost savings and revenue opportunities when you make decisions about operations, marketing and goods and services. It also means that you will be more likely to spot opportunities for improvements in the business which can directly contribute to efficiency gains or the creation of new and improved goods or services.

An important part of risk management in a sustainability strategy relates to compliance, both with any regulatory and legal requirements, and with market demands.

Feedback

You do not understand that including sustainability in your business strategies will assist you to manage your compliance obligations, assess your risks and opportunities, and ensure you meet market demands.

You understand that including sustainability in your business strategies will assist you to manage your compliance obligations, assess your risks and opportunities, and ensure you meet market demands.

You have identified and continue to monitor the legislation, permits or licences that apply to your business and you keep written records of your compliance. You've undertaken other ad hoc actions to manage market expectations.

You have a formal sustainability strategy that includes a register of relevant environmental regulations and obligations and takes into consideration market expectations.

You have a formal sustainability strategy that is integrated with your accounting and reporting frameworks. The strategy assists you to assess and comply with market expectations and regulatory requirements. You have communicated the strategy throughout the business.

You have achieved excellence in strategy and compliance and you work to anticipate future requirements, both regulatory and market based. You have strong community engagement practices and other businesses may benchmark against you.

Current practice:

Opportunities for improvements

Develop an environmental management policy.
Develop a register of relevant environmental regulations and obligations.
Review the environmental legislation, permits or licences that apply to your business to ensure compliance.
Manage any non-compliance issues.
Consider the environmental demands of the market in which you operate.
Undertake a risk assessment to identify possible environmental issues.

Include sustainability into the business strategies or develop a stand-alone sustainability strategy.
Develop management structures and procedures that incorporate the sustainability needs of all relevant stakeholders.
Allocate responsibility for compliance to appropriate personnel.
Educate and train staff about environmental protection.
Review contracts for environmental obligations.

Integrate environmental management practices and reports into financial reporting.
Consider seeking external advice on integrating sustainability into company management and direction.
Promote your environmental credentials to your stakeholders.
Develop a complaints procedure.

Compare the performance of the business with other leading businesses in the same sector.
Consider achieving certification to the AS 8000 Corporate Governance (the Australian standard), ISO26000 or AA10000.
Engage with the community about sustainability.
Consider entering relevant awards.

Maintain benchmarking on a regular basis.
Continue to enter relevant awards.
Use case studies and any accreditation to market the business and create competitive advantage.
Commit to continual improvement.

Section 7: Environmental management systems

An Environmental Management System (EMS) is a structured way to document and systematise your approach to environmental issues and your environmental footprint. An EMS may be as simple as a plan that outlines processes and procedures or as complex as a fully integrated monitoring and reporting system. The type of EMS you implement will depend on the type of business you have and the level of environmental impacts and risks you face.

More and more supply chains and major customers are requiring that their partners and suppliers have an EMS in place to demonstrate quality management and to ensure any environmental risks are minimised.

Feedback

You do not understand that every business, regardless of size, has some level of impact on the environment and the community.

You understand that every business, regardless of size, has some level of impact on the environment and the community.

You have taken some steps to reduce your environmental and social impacts.

You have developed an Environmental Management System that includes action plans and targets and you monitor your progress.

You have a fully embedded Environmental Management System that is communicated throughout the business.

You have an integrated and audited Environmental Management System and you are considered a leader in your class/sector.

Current practice:

Opportunities for improvements

Commit to a full understanding of the environmental impacts of the business.
Develop an environmental policy.
Monitor environmental aspects of your business such as energy use, water use, hazardous waste, etc.
Consider developing an Environmental Management System.

Develop an Environmental Management System relevant to the size and nature of your business that will provide a structure and framework to achieve sustainability objectives.
Focus on areas with the greatest impacts, develop targets and action plans and an on-going monitoring and reporting process.
Review all safety response procedures for chemical and hazardous material.

Monitor the Environmental Management System over more than one business cycle.
Aim to further develop objectives and targets for continuous reduction in environmental impacts.
Move towards ISO 14001 compliance and ISO 14031 alignment.
Integrate the Environmental Management System into accounting and reporting frameworks.
Communicate details of the Environmental Management System such as targets and progress to staff.

Focus on attaining ISO 14001 certification or at least be able to demonstrate compliance with it.
Communicate and promote certification internally and externally (market, supply chain).
Conduct benchmarking and assess performance against industry best practice.

Commit to continual improvement of the Environmental Management System to improve business performance.
Continue to monitor and report.
Use case studies and any accreditation to market the business and its environmental achievements to create competitive advantage.

Next steps

To assist companies to implement the opportunities identified in the diagnostic, the following resources are available:

Factsheets and checklists: a range of fact sheets and checklists are available to assist companies manage their environment and energy risks to improve productivity. The factsheets and checklists are available at the Ai Group Business Improvement and Growth Resource Centre.
Other Ai Group Environment and Energy Services: Ai Group's Environment and Energy Team offers a range of consulting and training services to assist companies understand and manage their environment and energy risks. These services include:
Energy
- Energy audits and assessments
- Feasibility and investigative studies
- Energy contract negotiations
Environment compliance and risk
- Environment compliance assessments and risk reviews
- Assistance with all Australian Packaging Covenant (APC) requirements
Training
- Tailored onsite training in environment compliance and risk management, operational management and energy efficiency
Government assistance programs
- Free or discounted programs to help you reduce your costs
Enterprise Connect
- Ai Group and Enterprise Connect are working together to help eligible small and medium manufacturers become more innovative, productive and competitive – www.enterpriseconnect.gov.au

For further information, contact Ai Group's Business Improvement and Grouwth Resource Centre team at big@aigroup.com.au or visit the Business Improvement and Growth Resource Centre.

Company details

Business name
Business website
Site address
Site description
ANZSIC code

Number of employees
Nominated contact person
Position
Phone
Email

Resource use

Energy use (per year)
Water use (per year)
Materials use (% of total expenditure)
Waste (solid waste) costs (per year)

1 / 7

Energy Use

	Yes	No
Does the business understand the importance and benefits of managing energy use and energy efficiency? This may include: Awareness of current energy prices and upward pricing trends Awareness of total energy costs last year Understanding that energy prices have increased and will continue to increase over the next decade Awareness of indirect/direct impacts of energy consumption in supply chains Awareness of option to change energy suppliers Opportunities for efficiencies where energy consumption is seasonal Awareness of seasonal variations in energy consumption Awareness of the parts of the business that consume the most energy Awareness of tariffs Awareness of network tariffs and the need for review Consider energy audit results Are the premises leased or owned? How does this impact energy efficiency options? Awareness of alternative energy supplies Awareness of grants
Has the business taken any action to manage its energy use or to improve its energy efficiency? This may include: Investigates energy efficient equipment, devices or appliances when making procurement decisions Uses energy efficient lighting Turns equipment off when not in use Doesn't overheat or overcool the building Investigates alternative power sources such as solar PV, natural light, insulation, etc An energy management plan has been developed or is in the process of being developed Understands energy bills Monitors energy bills to check trends in pricing Has implemented some energy efficiency measures Understands large equipment energy use Implemented staged start-ups for energy intensive machinery Understands the difference between demand and energy Implemented power factor correction/voltage regulation
Is the business implementing a systematic plan to manage its energy use and efficiency? This may include: An energy management plan appropriate to the level of consumption is in place An energy management plan is in place that includes an initial energy audit, energy reduction targets and actions, regular monitoring and reporting requirements, and considers supply chain impacts An energy management plan is in place that includes a level 3 energy audit, energy reduction targets and actions, regular monitoring and reporting requirements, and considers supply chain impacts Regularly monitors energy use Policy of selecting energy efficient appliances, devices & equipment Harvests natural light and has energy efficient lighting installed Air-conditioners are set to a min 24°C in summer and max 20°C in winter Signs are in place around the business encouraging energy conservation Equipment (e.g. lights, air-con, computers) are turned off after hours or when not in use Centralised override switches are used to cut off standby power to appliances after hours Actively sought leased property with high green star of NABERS ratings Waste energy is identified, measured and recovered (e.g. heat exchangers for heat recovery) Refrigeration equipment is well managed (regularly maintained, set points are monitored and calibrated, parasitic loads are reduced, heat recovered and used elsewhere, equipment is well designed) Air compressors are well managed (designed for purpose, variable speed motors, leaks monitored and repaired, use monitored and managed) Boilers are well maintained, designed and sized for purpose, insulated, pipes are lagged, surplus energy captured The operation of energy intensive equipment is optimised for energy efficiency Energy intensive equipment has focused operating procedures for energy efficiency Evidence of a preventative maintenance program to make sure all equipment is operating efficiently Implementation of a range of energy efficiency and energy conservation measures Energy savings and energy intensity are quantified
Are the principles of a disciplined energy management and energy efficiency approach communicated and embedded throughout the business? This may include: An energy management plan appropriate to the level of consumption is fully implemented An energy management plan is fully implemented Energy savings identified Planned and systematic approach to energy efficiency Procures green energy Green building lease Internal communication strategy and staff buy-in Energy reduction targets met Energy intensity calculated (e.g. kWh/MJ per unit of product or service) Energy audit revisited and regularly monitors actions Revisits energy audit and regularly monitors actions Energy management information incorporated into other business reports and accounts Defines energy management KPIs Meters in energy intensive areas Measures carbon footprint Takes steps to reduce carbon footprint
Can the business be considered a best practice leader in energy management? This may include: The energy management plan is now fully implemented and widely accepted throughout the business Energy savings identified and energy reduction targets met Planned and systematic approach to energy efficiency Procures green energy Green building lease Internal communication strategy and staff buy-in Energy intensity calculated (e.g. kWh/MJ per unit of product or service) Energy audit revisited and regularly monitors actions Revisits energy audit and regularly monitors actions Energy management information incorporated into other business reports and accounts Defines energy management KPIs Meters in energy intensive areas Measures carbon footprint Takes steps to reduce carbon footprint Using cogeneration or trigeneration Shares and compares information across all operational sites Capital projects justified based on energy savings expected

Water Use

	Yes	No
Does the business understand the importance and benefits of managing water use (including wastewater) and water efficiency? This may include: Understands where water is used in the business Understands opportunities to harvest rainwater (e.g. from the roof) and recycle water Understands the link between energy use and water (e.g. heating water in urns) Understands the costs associated with wastewater (especially if it goes to trade waste) Understands obligations to protect stormwater and groundwater Understands supply chain issues with water use and the implications of embodied water
Has the business taken any action to manage its water use or to improve water efficiency? This may include: Communicates to staff about saving water Installed water efficiency devices such as dual flush toilets, hand triggers on hoses, etc Maintains water infrastructure such as taps, pipes and gutters to reduce leaks and wastage Taken some steps to reduce the embodied water content of materials Conducted a water audit Investigates options to reduce water use Plan to manage water is developed or being developed Knows if any wastewater is included in trade waste Investigates recycling and re-use options Investigates alternative sources of supply and disposal including the use of stormwater
Is the business implementing a systematic plan to manage its water use and efficiency? This may include: Has an appropriate water management plan in place Has signage in place encouraging water use efficiency and conservation Installed water efficient devices such as dual flush toilets, hand triggers on hoses, etc Regularly checks water infrastructure such as taps, pipes and gutters Uses brooms rather than hoses to clean surfaces Monitors water use Reduces wastewater by recycling and treatment Has a water management plan that includes an initial water use audit, water and wastewater reduction targets and actions, regular monitoring and reporting requirements, and considers supply chain impacts A water management plan is in place that includes an initial water use audit, water and wastewater reduction targets and actions, regular monitoring and reporting requirements, and considers supply chain impacts Utilises signage to encourage water efficiency and conservation as well as training staff on waterwise practices Sources water efficient devices Has a preventive maintenance program for water installations to ensure losses are minimised Drains are kept clean and the business protects stormwater drains from pollution Contaminants are well stored and bunded Has appropriate policies, spill kits and emergency response plans to prevent ground water, stormwater and waterways contamination Reduces wastewater by recycling and treatment Ensures that equipment is maintained at maximum operational efficiency The operation of water intensive equipment is optimised for water efficiency Designs manufacturing processes to minimise water use
Are the principles of a disciplined water management and water efficiency approach communicated and embedded throughout the business? This may include: Has an integrated a water management plan, achieved targets and can calculate water intensity (litres per unit of product or service) Signage reminds staff about water saving behaviours Implemented a full range of actions to reduce water use and increase water efficiency Monitors water use improvements Monitors wastewater improvements (reductions and/or recycling) A staff member has responsibility for water use in the business KPIs for water efficiency are in place Water usage and associated costs are reported in the business's accounts Operating procedures are written and staff are trained Systems to reduce water use are automated Reduced wastewater to sewer/environment
Can the business be considered a best practice leader in water management? This may include: The water management and efficiency plan is now fully implemented and widely accepted throughout the business Regular reviews of the water management plan are conducted Fully integrated behaviour management and staff buy-in Independently recognised awards Benchmarking against others Regular reviews of water management plan Consistent continuous improvement Shares achievements with others Audited by a third party Has achieved ISO 9001, 14001 Understands its ROI with regard to sustainability

Materials Utilisation

	Yes	No
Does the business understand the impact of the materials it uses in its production processes and/or business operations and the benefits of using materials efficiently? This may include: Understands that the type and volume of materials used in the business may impact the environment Understands the various eco-labels for different products Understands the benefits of procuring more sustainable products
Has the business taken any action to reduce its materials inputs or manage its materials efficiently? This may include: Gives preference to products that are re-usable, recyclable or contain recycled content Uses eco-labelling to identify most environmentally-friendly equipment Reduces, reuses and recycles office paper Gives preference to Australian-made Investigates materials consumption and product design (pre and post consumer) Analyses goods from a whole-of-life-perspective Monitors production processes and inputs Materials used to produce products and services are recyclable Takes back raw materials from recycled products Acquire raw materials from the most environmentally and/or socially responsible source
Is the business implementing a systematic plan to improve material utilisation? This may include: Is implementing processes, procedures and targets for monitoring and reporting materials use at both the product and process level (this may be part of a lean manufacturing approach) Has investigated different processes and designs to ensure materials efficiency Has investigated different processes and designs to reduce the amount of materials used Has identified under-utilised resources and has sought to increase utilisation (space, transport, machine use) Uses fewer environmentally damaging chemicals Uses fewer oil-based materials including plastics Has established sustainability purchasing guidelines for direct suppliers that includes compliance, employment practices and product/ingredient safety Reviews production processes to ensure less energy and fewer raw materials are used Looks at product distribution for streamlining and other efficiencies
Are the principles of a disciplined materials management approach communicated and embedded throughout the business? This may include: Includes the use of any materials into management reports Has integrated materials efficiency into planning and reporting systems (environmental management system (EMS), production planning and business reporting systems) Is able to demonstrate significant materials efficiency improvements (% of materials consumed) Third party certification for products Review new suppliers for quality and capacity
Can the business be considered a best practice leader in materials management? This may include: Independently recognised awards Benchmarks against others Regular reviews of materials management plan Consistent continuous improvement Fully integrated behaviour management and staff buy-in Shares achievements with others Audited by a third party Has achieved ISO 9001, 14001 Understands its ROI with regard to sustainability Understands and can quantify product life cycle costs

Waste and Resource Recovery

	Yes	No
Does the business understand the importance of reducing and managing waste, including complying with regulations? This may include: Understands the Waste Hierarchy (avoid, reduce, reuse, recycle, recover, treat, dispose) Recovery means to take out the valuable and useable components of the waste for reprocessing, possibly by a third party Understands where waste is generated in the business Understands how the waste may be recycled or re-used Understands the value that may be recovered from waste Understands regulations in relation to hazardous wastes Is aware of applicable compliance obligations and regulations affecting the business May have considered some initiatives, but is yet to take action
Has the business taken any action to reduce its waste or manage its waste appropriately? This may include: Minimises paper usage (uses both sides of the paper, uses email, e-business, circulates rather than duplicates printed material including media, proof reads on screen, etc) Re-uses or donates printer cartridges Minimises and recycles packaging Monitors waste discharges Conducted a waste audit Recycles electronic waste appropriately Has implemented some recycling or waste reduction initiatives Has recycling bins Taken some actions to reduce major waste areas Investigated opportunities to recover waste Has implemented some actions to reduce waste and recover resources
Is the business implementing a systematic plan to reduce and manage waste and recover resources? This may include: Is implementing a plan to manage waste and recycle Separates waste for recovery or re-use Recycles waste (paper, cardboard, metal, glass, plastic, green waste) Has good signage encouraging waste minimisation, recycling and re-use Aged equipment is appropriately decommissioned and reengineered for re-use Is implementing a waste management plan that includes an initial waste audit, waste reduction targets, regular monitoring and reporting requirements Implemented a number of actions to reduce waste, recover resources and recycle Conducted a waste audit to establish the amount and composition of waste generated Is aware of the indirect impact its products or services have on others Has taken actions to minimise and accept responsibility of indirect wastes Staff are educated and trained in waste minimisation strategies, recycling and resource recovery Hazardous materials are collected by licenced waste collectors Utilises waste energy (heating or cooling)
Are the principles of a disciplined waste management approach (including waste reduction, resource recovery and appropriate management of waste) communicated and embedded throughout the business? This may include: Plans for all waste to be either recycled or reused Has demonstrated reduction in waste and has met waste targets Has demonstrated significant reduction in waste and is able to demonstrate and report results Has a procurement preference for products that minimise waste, are recyclable or contain recycled content Works with suppliers and customer to reduce waste and accepts return of end of life products, recyclable containers, packaging
Can the business be considered a best practice leader in waste management and resource recovery? This may include: All or most waste is either recycled or reused Independently recognised awards Benchmarking against others Regular reviews of waste management plan Consistent continuous improvement Fully integrated behaviour management and staff buy-in Shares achievements with others Audited by a third party Has achieved ISO 9001, 14001 Understands its ROI with regard to sustainability

Supply Chain Management

	Yes	No
Does the business understand sustainability opportunities in its supply chain? This may include: Understands that customers may require environmental commitments from their suppliers and that this demand is likely to increase over time Understands that increasing costs such as energy and waste management may impact the supply chain
Has the business taken any action to explore sustainability opportunities in its supply chain? This may include: Considers the environmental credentials of suppliers of goods and services Has met with members of the supply chain to discuss sustainability issues Is working on opportunities for product/service development based on the sustainability opportunities identified. Has incorporated some environmental practices to meet clients' needs as required May have a sustainable procurement policy
Is the business implementing a systematic plan to explore and capitalise on the sustainability opportunities in its supply chain? This may include: Formal process in place to engage suppliers and customers to improve sustainability outcomes Considers the environmental credentials of suppliers of goods and services and works with them to improve those credentials Has sought to remove waste from the supply chain Has sought to improve materials and resource utilisation across the supply chain (e.g. energy, transport, etc) Understands potential future requirements Has a sustainable procurement policy Can demonstrate sustainability improvements
Are the principles of sustainable supply chain engagement communicated and embedded throughout the business? This may include: Has a complete understanding of the environmental impact of the business and its supply chain Continuously works to minimise environmental impacts across the supply chain Leads the monitoring of impacts across the supply chain Minimises indirect impacts on the environment, society, customers and suppliers Takes responsibility for re-use or recycling of packaging and end of life products
Can the business be considered a best practice leader in sustainable supply chain management? This may include: Undertaken a formal sustainability audit of the supply chain Undertakes on-going monitoring and reporting Whole supply chain has embedded continuous improvement in environmental impacts Supply chain is fully responsible for product stewardship Evidence that environmental impacts of the business and the supply chain have been substantially minimised

Strategy & Compliance

	Yes	No
Does the business understand the importance of incorporating sustainability into its business strategies to drive business performance, comply with regulatory requirements and meet market expectations? This may include: Understands the relevant environmental regulations Understands expectations of customers and suppliers Understands the strategy should be aligned to business goals and practices Understands the value of managing risks Understands the costs and benefits of sustainability
Has the business taken any action to incorporate sustainability into its business strategies to drive business performance, comply with regulatory requirements and meet market expectations? This may include: Looks for opportunities resulting from sustainability Has or is developing an environmental management policy Identifies, records and monitors legislation, permits, licenses or potential liabilities that may apply to the business Has had a risk assessment to identify possible non-compliance Is considering incorporating sustainability in the broader business strategies
Is the business incorporating sustainability into its formal business strategies or does it have a sustainability strategy in place? This may include: Has a register of compliance obligations Reviews the environmental policy annually Staff are aware of improvements in the environmental performance of the business Staff training Staff with dedicated environmental responsibilities Maintains records of waste disposal Monitors contracts for environmental obligations Environment and sustainability is incorporated in KPIs, management meetings and overall strategy
Is sustainability and its relationship to business strategy communicated and embedded throughout the business? This may include: Has sustainability reflected in its accounting and reporting Believes it is compliant with current and future possible regulatory requirements Stakeholders are aware of the environmental performance of the business There are procedures in place to deal with complaints about environmental performance Has a champion or dedicated staff member looking at ongoing environmental performance Environmental costs and savings are factored into annual budgets
Can the business be considered a best practice leader in sustainability that drives business performance, complies with regulatory requirements and meets market expectations? This may include: Anticipates future compliance requirements Has strong community engagement practices May be recognised by peers and relevant industry associations Consistent continuous improvement culture Independently recognised awards Benchmarks against others Environmental practices and sustainability embedded in current practices and planning activities

Environmental Management Systems

	Yes	No
Does the business understand the impact its activities and operations have on the community and the environment? This may include: Understands excess packaging of goods can impact the community be creating excess waste
Has the business taken any action to reduce its environmental and/or societal impacts? This may include: Has an environmental policy Identified some areas with substantial environmental impact Investigated how an Environmental Management System would enhance business performance Some environmental aspects are monitored such as energy use, hazardous waste, etc May have some community engagement
Does the business have an Environmental Management System? This may include: Has developed an Environmental Management System that includes areas of greatest impact, targets, action plans and an on-going monitoring and reporting process Has chemical and hazardous material emergency response plans, Material Safety Data Sheets, spill kits and bunded storage areas Manages dust suppression and vapour emissions (including Volatile Organic Compounds, asbestos, air quality monitoring) Manages erosion, sediment controls (sediment barriers) Protects waterways, stormwater and ground water from contamination
Are the objectives of the Environmental Management System communicated and embedded throughout the business? This may include: Has a proven and effective Environmental Management System that has led to a reduced environmental impact Has evidence of a reduction in non-compliance issues, improvement in resource usage (energy, water, materials) and the generation of less waste Has ISO 14001 Monitors and reports consistently The Environmental Management System is embedded into accounting and reporting frameworks Details of the Environmental Management System (targets, progress) communicated to staff
Can the business be considered a best practice leader in minimising environmental and societal impacts? This may include: The Environmental Management System is audited regularly to ISO 14001 standard and is integrated with other business systems The Environmental Management System is fully embedded and has run over more than one cycle Has an outstanding environmental performance recognised by industry peers

Environment and Energy Diagnostic Report

Environment and Energy Diagnostic Report

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Acknowledgements

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