Office efficiency: More than greenwash

The phrase "greenwash", a blend of the words green and whitewash, was coined in 1986 to highlight a tendency to spin a pro-environmental message without actually taking any steps to help save the planet. It is an easy trap to fall into - who would trumpet that they are setting out to destroy the planet? Yet taking action can have more than public relations benefits: it can lead to cost savings and new business opportunities too.

One company that has stepped up to the challenge is motor insurance specialist ChoiceQuote. At the start of 2009, managing director Cathie Bruce launched its GreenChoice campaign at its Liverpool headquarters and two satellite offices. Along with recycling electrical equipment and providing bins for recycling paper, plastic and cans, the campaign included posters to promote reducing the amount of carbon dioxide that the offices create. "It is all relatively simple to do but it has started to make a difference," Bruce explains. "I recommend contacting the Carbon Trust." Every light switch has a sticker to remind users to switch lights off, while turning off photocopiers and monitors and moderating the office temperature is now the norm. Bruce continues: "Simple hints and reminders like these can have a huge impact."

Figures from the Carbon Trust, a not-for-profit company with the mission of accelerating the UK's move to a low-carbon economy, show how big these savings can be for every business. It has calculated that running a computer and monitor non-stop costs over £50 a year. The organisation also stated that, for every one degree above 19°C a business' premises is heated, it can expect to see its heating costs rise by 8%. It further states that businesses waste up to 15% of their lighting costs on areas that are not in use.

Collaboration
In 2008, the UK government set a target of reducing carbon emissions to 80% below 1990 levels by 2050, with an interim 34% reduction by 2020. All parties will have to play their part and, with estimates claiming that office-based business activities are responsible for 6.8m tonnes of carbon dioxide each year, brokers should take a lead.

For Bruce, the key is to keep all staff onboard: "We have a company 'bright ideas' scheme, through which staff can make suggestions; each is looked at by management and staff get rewarded by voucher depending on the impact of what they suggested."

It is a point backed by Peter Elliott, head of marketing at Bluefin, which has made a commitment to reduce its own carbon emissions by 20% by 2012. He points out: "Most of us, I would suggest, support green practices but the buy-in of senior management provides extra encouragement. We've set up a working party from across the group that meets quarterly, chaired by a member of the senior management committee and reporting to the chief executive officer. You can't get much higher-profile than that."

With non-domestic buildings accounting for nearly one-fifth of the UK's carbon emissions, improving best practice is also an area that brokers could look to advise their clients on to enhance and deepen relationships. Constructing an environmentally friendly building from scratch requires specialist advice. However, there is a series of steps that everyone can take now to make not only their own current office space more environmentally friendly but also act as a checklist for advising their clients.

Green equipment
Neville Green, group underwriting manager at HSB Engineering Insurance, recommends making existing plant equipment operate as efficiently as possible, particularly air conditioning, which should be checked for obstructions and dirt accumulation on both evaporators and condensers. He says: "Even when the air conditioning works well, an obstruction in the airflow will impact efficiency. Any build up of dirt or debris will mean that the plant has to work harder to both extract and reject the heat. Regular maintenance by a contractor approved by the manufacturer is paramount."

For some, renewable energy will be an option and a cost-benefit analysis of retrofitting solar panels could be undertaken. Green asks: "Evaluate a programme of capital equipment replacement in conjunction with loans and grants available from the Carbon Trust. Will early replacement or upgrade with greener equipment both save money and reduce emissions?"

One further step that everyone can undertake - and promote to clients - involves assessing the lighting systems in their buildings. Green notes: "Lighting can account for roughly 50% of the power consumption on retail premises and around 30% for an office. Replacement with LED systems can dramatically cut carbon emissions and will almost halve what even fluorescent, compact fluorescent lighting and current energy-saving lighting uses."

Waste of paper
Thinking about how to reduce carbon need not stop with the building. One angle that Bluefin has been investigating is making sure that what comes into and goes out of the office is just as environmentally friendly as the company's best practice. Elliott explains: "Given the nature of the industry, top of our hit list is paper usage and we're tackling this from both directions. First, we're appointing a single paper merchant with unimpeachable credentials so we can be sure our supplies come from sustainable sources. Second, we've appointed a single paper waste management company that, again, makes it easier for us to ensure our wastage is recycled to best effect."

Recycling and completing the chain is something that Lee Parker, director at Coversure in Sudbury, also highlights. In July last year, Parker decided that more could be done around the office, particularly with paper leaving the premises, though was worried about security levels. He explains: "We used to have a secure bin collected once a month but I was uneasy about what would happen if we recycled it." After some online investigation, he came across a company called Shred-it. He continues: "We now have two confidential waste bins but actually use it for all waste paper. According to our certificate, we saved 13 trees in a year."

The need to balance document security with eagerness to be environmentally responsible is one understood by Robert Guice, executive vice-president for Europe, Middle East and Africa at Shred-it: "Recyclists typically hand-sort paper. If they lose one piece then it doesn't cost them anything but the information on it can cost a client. You can be environmentally friendly and take a risk or not take a risk: that is up to brokers."

Shred-it is a Canadian firm founded in 1988 that came to the UK in 1999. It offers free secure storage bins made of recycled wood. Guice believes that having lots of boxes rather than one left in the photocopier room that is never used encourages staff to shred anything with no need to determine what is sensitive. The company provides an on-site service in purpose-built trucks that are capable of shredding 1,600kg of paper each hour.

Efficient
Guice says: "Shredders are notoriously slow and jam; it is quicker and more cost-efficient to use a third party." A member of staff oversees the shredding and the paper is brought back to one of the company's local facilities, where it is baled into 800kg blocks then delivered to a local recycling unit. Last year, in the UK alone, the company saved 700,000 trees by recycling 38,000 tonnes of paper. As Parker notes, each year it gives customers a certificate to help them understand the positive impact on the environment. According to Guice, many use them in corporate newsletters or keep them in reception as a means to highlight their green credentials with clients.

Guice is quick to point out that the insurance industry is a paper heavy one and a key target for the company. He foresees further expansion: "The broker market is a big one for us because it handles a vast quantity of confidential information, operates in a competitive environment and has to protect itself."

In addition to saving trees, recycling also saves space, particularly at landfill sites. In 2008, Shred-it saved approximately 87,500 cubic metres of paper from ending up in UK landfill, the equivalent of 35 Olympic-sized swimming pools.

Space waste
Landfill is an acute issue for the UK, with the Local Government Association warning that the country will run out of space in less than eight years unless recycling rates are boosted and the amount of rubbish dumped in the ground is reduced. The Department for Environment, Food and Rural Affairs is due to publish its survey on Commercial and Industrial Waste Arisings 2010 in October. The Environmental Agency's own survey in 2002-3 found that the commercial sector produced 30 million tonnes of waste, with professional services and other businesses responsible for more than seven million tonnes each. Paper and card accounted for 20% of commercial waste, with only 40% of overall commercial waste recycled or reused.

Shipley-based broker Sydney Packett & Sons is one company that far exceeds the 40% figure. Andrew Packett, who runs the company with his brother Charles, admits they are both "country boys". In addition to altruistic reasons for recycling, he also points out that being environmentally friendly and reducing the impact on landfill has potential commercial benefits too. The broker has a section on its website dedicated to its stated Environmental Policy, about which Andrew explains: "It was made very clear to us by some of the charities that there was an expectation that you would buy in to an environmental policy, not just say it but actually do it. The environment policy was critical and, during the tender process, we were expected to demonstrate in real terms that we had bought in."

One member of staff was has been appointed environmental 'ambassador' and Andrew is proud of the progress made. He says: "We have boxes for everything: light bulbs are recycled, plastic milk bottles and all the paper. I can say categorically that we recycle everything we can."

Claire Blaymires, operations director at Somerset-based Higos, is another who urges brokers to seize the issue for themselves: "Anyone can do it. There are lots of baby steps but you need to get someone who can co-ordinate them all." The office has already monitored its electricity usage across its 15 sites to make savings and Blaymires is now turning her attention to rainwater harvesting for non-drinking purposes. According to Water UK, the industry association representing water companies, the UK uses over 17 billion litres of water a day. The Environment Agency has calculated that the average office usage is four cubic metres for each employee every year.

Sewer saving
While at first glance it may appear that brokers have little scope for making an impact when it comes to water consumption, there are also financial savings to consider. Blaymires points out: "A sewerage bill is 95% of your water bill. If I reduce the bill for water coming in [there is no meter on water leaving] then it reduces the costs going out, so there is a saving on both sides."

Higos' project is yet to reach fruition but has so far involved several calculations. She explains: "We had a couple of issues in calculating how many units we use. You have to work out the cubic metres you can get off the roof then you have to think about where to store the water because of its weight."

Contingency
She also highlights the need for brokers to calculate the cost of installing a pump for the water supply and a switch to revert to main supply should the stored water run out due to the intermittent nature of rainfall. As she noted: "In Somerton, the average waterfall might be x centimetres each month, yet what if it rains for only two days?" Blaymires recommends the GreenWise website (www.greenwisebusiness.co.uk) as a useful starting point for any broker determined to save money and help the environment. Another useful starting point (see p.29 for full list) is the Environment Agency's website, which suggests that savings of up to 50% on water bills are possible; it has also published a Waterwise guide that provides a checklist of simple steps to complete a water usage inventory and efficiency measures.

The water industry accounts for 1% of the UK's greenhouse gas emissions. For some brokers and their clients, harvesting rainwater is unlikely to ever be a viable option, yet it does highlight the kind of lateral thinking that the industry should undertake. As Blaymires points out: "If we don't do our bit, we will all be the worse off for it."

Quick facts: The Carbon Trust
The Carbon Trust provides a range of services.
• Business loans of £3,000 to £100,000 interest free to help organisations finance and invest in energy saving projects.
• A carbon footprint calculator to measure an organisation's carbon emissions.
• Free building design advice to support businesses in developing low-carbon solutions.
• Free on-site carbon survey to identify quick and effective ways to reduce energy consumption.
• A suite of awareness-raising materials, including guides posters and stickers, to help employees save energy at work.
• An online training tool for energy saving that helps create a personalised action plan for a site.
View the organisation's website at www.carbontrust.co.uk or call 0800 085 2005.

Source: The Carbon Trust

Insider's view: Towergate
Marc DonFrancesco, group head of marketing at Towergate, tells PB about the broking group's environmental policies.

"Consistent green policies are not straightforward to enact across 100 businesses of all shapes and sizes but Towergate has all the office recycling arrangements you would expect, from paper to toner cartridges. Some offices have initiatives such as incentivising cycling to work or car sharing. Video conferencing is also used widely to reduce travel.

"Education is a key factor, for example gradually getting people to accept that using recycled stationery and paper where practicable works perfectly well.

"There is more within your control if you own the property; newer buildings can be very green. A good example is our Maidstone central support office, where we decided to go far above the BREEAM* building standards required. We harvest rainwater for toilet flushing and have low-energy consumption air conditioning, as well as efficient multi-function equipment such as printers, scanners and copiers.

"Arguably the cleverest feature at Maidstone is the computerised lighting system. It's great if you are working late; not only do sensors know to keep lights on where you sit, it will also light up appropriate panels between you and the exit.

"Of course, actions that are good for the environment invaluably make economic sense also. So, rather than ask ‘why', the question should usually be ‘why not'?"
(* BRE Environmental Assessment Method)