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Sustainable Action Report

compressed_IPCS Exec Summary

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Sustainable!Action!Report!

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Sustainable Action Report Presented by: Nicholas Conte Presented for: I.P. Callison & Sons July 31st 2015

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About I.P Callison & Sons

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Executive!Summary! 5!

One:!Policy!Report! 11!1.1!Frequently!Asked!Questions! 11!What!is!an!Environmental!Policy!Report?! 11!

Why!is!it!needed?! 11!

What!should!be!included?! 11!

What!are!the!differences!between!and!Environmental!Policy!Report!and!an!Environmental!

Sustainability!Report?! 11!

What!are!the!benefits!of!an!Environmental!Policy!Report?! 12!

Definitions! 12!

1.2!Policy!Report! 15!Mission! 15!

Policy!Statement! 15!

Who!is!going!to!do!it?! 15!

What!we!are!going!to!do?! 15!

When!are!we!going!to!do!it?! 16!

Where!are!the!policies!going!to!be!implemented?! 16!

Why!are!we!doing!it?! 16!

How!we!are!going!to!do!it?! 16!

1.3!What!has!I.P.!Callison!&!Sons!done!so!far?! 17!

Two:!Data!Analysis! 18!Questionnaire! 18!Questions! 18!

Responses! 19!Results!from!Questionnaire! 26!

The!Author’s!three!examples!a!sustainable!or!green!business!and!why:! 28!

Summary!of!Questionnaire! 29!

Where!do!we!stand?! 30!799!North!National! 30!

2410!Callison!Road! 34!

Waste!Analysis:! 42!

Zero!Waste! 42!Is!developing!a!program!that!outlines!Zero!Waste!to!Landfills!a!realistic!goal!for!Callisons?! 42!

Why!do!it?! 43!

How!to!do!it?! 43!

Consumer!Analysis:! 46!Colgate! 46!Mars! 58!Wrigley! 69!Mondeléz! 78!GlaxoSmithKline!(GSK)! 85!What!can!we!learn!from!these!reports! 103!

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What!was!the!best!report?!Who!had!the!best!web!platform?! 103!What!are!similar!industries!doing?! 103!When!did!industries!begin!reporting?! 103!How!long!are!their!plans?! 103!How!other!industries!are!reporting?! 103!What!was!reported?! 103!What!did!they!all!achieve?! 105!What!did!companies!struggle!to!achieve?! 106!

Three:!I.P.!Callison!and!Sons’!next!step! 107!What!makes!a!good!sustainability!report?! 107!

Recommendations! 108!Recommended!outline!for!I.P.!Callison!&!Sons’!Environmental!Sustainability!Report! 108!Introduction! 108!Progress!to!date! 108!Approach!to!Business! 109!Highlighting!Environmental!Issues! 109!Highlighting!Social!Matters! 109!Highlighting!Economic!Factors! 110!Availability! 110!

What!is!an!indicator?! 111!What!makes!a!good!indicator?! 111!Key!performance!Indicators! 111!

Tests!that!can!be!used!to!measure!indicators! 112!Probability!vs.!Impact!Matrix!/!Risk!Assessment!Matrix! 112!Project!Analysis!tree! 113!Cost!Benefit!Analysis! 113!Stakeholder!Analysis! 114!

Top!Three!Recommendations!According!to!Projected!Budgets! 117!Budget:!$0a1,000! 117!Water! 117!Energy! 118!Gas! 119!

BUDGET:!$1,000a10,000! 119!Water! 119!Natural!Gas! 121!Power! 121!

BUDGET:!$10,000a100,000! 122!Water! 122!Energy! 122!Gas! 122!

Four:!Further!Investigation! 123!

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What!can!I.P.!Callison!&!Sons!do!right!now?! 123!What!can!I.P.!Callison!&!Sons!begin!to!think!about?! 124!What!Can!I.P.!Callison!&!Sons!consider!for!the!long!term?! 124!Success!Stories! 126!Further!Methods!to!conserve!natural!resources! 127!How!to!Conserve!Water! 127!How!to!conserve!Natural!Gas! 130!How!to!conserve!Power! 134!

How!to!Improve!Supply!Chain!Sustainability! 136!

Conclusion! 139!

Recommended!Further!Reading! 140!

References! 141!!! !

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Executive Summary I.P.!Callison!&!Sons!(IPCS)!provides!the!world’s!most!desirable,!high!quality!and!unique!mint!oils!and!flavors.!As!a!company!closely!tied!to!the!environment,!we!see!the!need!to!commit!to!clearly!visible!sustainability!practices,!both!because!it!is!good!for!business!longbterm!and!as!a!immediate!response!to!government!legislation.!This!will!help!protect!the!future!of!the!company!by!reducing!costs,!by!promoting!better!relations!with!key!consumers,!and!by!improving!our!corporate!image!.!!

This!Sustainability!Action!Report!will!review!our!current!environmental!practices,!provide!detailed!recommendations!for!improvements!and!innovation!and!finally!will!summarize!five!similar!corporations’!approaches!to!environmental!sustainability;!divided!into!four!sections,!Policy!Report,!Data!Analysis,!Next!Steps!and!Further!investigation.!!

Section!One:!Policy!Report!defines!an!Environmental!Policy!Report!and!an!Environmental!Sustainability!Report!and!the!benefits.!To!be!clear,!an!Environmental!Policy!Report!is!the!outline!of!a!company’s!public!policies!regarding!the!environment!and!what!steps!they!plan!to!take!to!implement!these!policies.!An!Environmental!Sustainability!Report!states!the!company’s!identified!goals,!outlines!the!progress!they!have!made!in!achieving!these!goals,!and!acknowledges!what!next!steps!are!further!required!to!obtain!their!goals.!!

This!section!offers!a!revised!version!of!the!company’s!mission!and!policy!statements!to!include!its!commitment!to!the!environment.!!It!highlights!IPCS’!socially!responsible!efforts!such!as!sponsoring!youth!athletic!teams,!supporting!local!education!systems!and!complying!with!multiple!International!Organization!for!Standardization!(ISO)!accreditation!schemes.!

Questions!that!must!be!answered!to!realize!the!revised!mission!statement!are!addressed:!1. Who!is!going!to!implement!the!outlined!policies?!All!of!IPCS!employees!and!associates!will!demonstrate!the!highest!commitment!level!to!achieving!environmental!sustainability.!

2.!What!is!IPCS!going!to!do?!

IPCS!will!adhere!to!all!government!regulations,!evaluate!internal!and!external!operations!and!identify!areas!for!improvement.!Our!approach!will!allow!IPCS!to!identify!the!sustainability!issues!with!the!greatest!longbterm!potential!and!thus!promote!a!pragmatic!agenda!with!tangible!interim!targets.!We!have!identified!three!target!areas:!Water,!Natural!Gas!and!Energy!Consumption.!This!report!suggests!that!for!internal!operations,!IPCS!should!take!immediate!action!towards!water!conservation,!and!that!longbterm!renewable!energy!investments!be!considered.!This!report!recommends!that!the!most!efficient!way!to!a!more!sustainable!supply!chain!is!through!mapping!and!clearly!communicating!expectations!to!key!players.!This!report!then!suggests!long!term!sustainable!goals!for!IPCS.!These!targets!are!based!on!a!sevenbyear!plan,!determined!by!our!current!progress!and!modeled!on!targets!achieved!by!similar!industries.!

2015/2016!b!Identify!the!most!practical!techniques!to!achieve!our!goals.!

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2017b2022!b!Implement!these!techniques,!continually!measure!progress!and!recommend!areas!for!improvement.!15by22!stands!for!a!15%!reduction!in!Water,!Energy!and!Natural!Gas!consumption!(compared!with!2009)!by!2022.!!

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3.!When!is!IPCS!going!to!do!it?!

IPCS!are!currently!investigating!feasible!options!to!help!achieve!our!targets.!!!

4.!Where!will!these!policies!be!implemented?!

In!the!first!year,!the!policies!will!be!implemented!in!IPCS!internal!operations,!focusing!on!efficient!manufacturing!practices!and!office!functions.!The!subsequent!four!years,!IPCS!will!incentivize!our!supply!chain,!our!largest!consumer!of!natural!resources,!to!be!more!efficient.!!

5.!Why!are!IPCS!trying!to!become!more!sustainable?!

IPCS!have!been!around!for!over!100!years,!and!we!recognize!the!importance!of!being!an!accountable,!responsible!and!adaptable!business.!

6.!How!are!IPCS!going!to!become!more!sustainable?!

The!first!step!to!solving!any!problem!is!recognizing!there!is!a!problem.!IPCS!acknowledge!the!growing!environmental!pressures!surrounding!our!business,!and!IPCS!alleviate!these!pressures!by!becoming!more!sustainable.!We!will!do!this!by!providing!high!quality!environmental!awareness!training,!working!collaboratively!with!our!customers,!suppliers!and!the!surrounding!community!on!sustainable!issues!while!creating!a!transparent!supply!chain.! !

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Section!Two:!Data!Analysis!examines!resource!consumption!from!four!of!our!facilities,!a!zero!waste!analysis!and!considers!a!diverse!range!of!data!from,!Colgate,!Mars,!Wrigley,!Mondelez!and!GlaxoSmithKline!(GSK).!!The!questionnaire!set!out!to!gauge!a!level!of!an!integrated!sustainable!culture!at!IPCS.!All!respondents!covered!aspects!of!environmental!issues,!two!thirds!covered!social,!!one!third!covered!fiscal,!and!only!one!respondent!considered!them!holistically.!The!respondents!reflected!the!lack!of!an!integrated!!sustainable!culture!at!IPCS,!but!were!eager!to!learn!about!how!they!can!help!achieve!sustainability.!

The!next!portion!covers!data!analysis.!The!tables!illustrate!the!decrease!in!usage!and!increase!in!cost!of!water,!power!and!natural!gas!from!2009!to!2014.!!

799!North!National!!!

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2410!Callison!

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2400!Callison!!

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Zero!Waste!to!Landfills!!!Zero!Waste!to!Landfills!(ZWL)!is!possible!for!IPCS!both!for!manufacturing!and!office!buildings.!Through!management!support,!research!and!effective!collaboration,!our!office!buildings!have!the!full!capacity!to!produce!ZWL.!Manufacturing!facilities,!too,!have!the!potential!to!produce!ZWL.!Achieving!Zero!Waste!to!Landfills!(ZWL)!reduces!energy,!transportation!and!landfill!costs,!current!costs!accumulate!to!just!under!$20,000!annually,!provides!a!competitive!advantage!for!sales!and!helps!decrease!emissions!of!greenhouse!gases.!The!three!key!methods!to!achieving!75%!reduction!of!waste!to!landfills!by!2022!are!gaining!management!support,!educating!employees!and!promoting!and!tracking!progress!towards!achieving!the!interim!targets.!!

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Sustainability!Reports.!The!average!strategic!plan!of!these!reports!spans!fivebyears.!Mars’!is!the!most!forward!looking,!setting!targets!for!2040,!and!Mondeléz!the!least,!with!current!targets!only!going!as!far!as!the!end!of!2015.!This!investigation!found!that!Colgate!had!the!most!well!rounded!report.!Colgate’s!report!clearly!communicated!its!goals!within!a!comprehensive!fivebyear!plan,!integrated!their!value!chain!and!was!the!most!transparent.!GSK,!however,!covered!the!most!materials!and!clearly!stated!its!improvement!methods!the!best.!Mars’!web!platform!was!the!easiest!to!understand,!navigate!and!access.!CocabCola,!a!similar!industry,!won!the!2014!Industry!Champion!of!the!Year!Award!for!providing!an!outstanding!environmental!sustainability!report.!It!is!the!author’s!belief!that!CocabCola’s!report!is!exemplary!and!should!be!used!as!the!primary!example!of!how!to!model!a!sustainability!report.!A!link!to!CocabCola’s!report!can!be!found!in!the!recommended!further!reading!section!under!CocabCola!(2014).!!

Section!Three:!Next!Steps!provides!an!outline!for!IPCS!future!environmental!sustainability!report,!a!list!of!key!performance!indicators,!tests!that!can!be!used!to!measure!progress,!how!to!proceed!with!three!projected!budgets,!what!we!can!do!immediately,!what!we!can!do!the!next!year!and!what!we!can!begin!to!consider!for!the!long!term.!!

The!outline!for!IPCS!future!sustainability!report!includes!the!most!important!aspects!of!a!great!report:!Intelligibility,!materiality,!transparency,!clear!targets,!stakeholder!inclusion!and!completeness.!IPCS!should!clearly!state!its!targets,!the!progress!it!has!made!to!achieve!those!targets!and!how!we!will!continue!to!meet!our!goals.!!!!

The!list!of!key!performance!indicators!(KPI)!includes!indicators!to!measure!all!aspects!of!the!triple!bottom!line!–!social,!environmental!and!economic.!The!most!relevant!KPI!are!Employee!Satisfaction!(social),!Environmental!Accreditation!Certificates!(environmental)!and!Strategic!Partners!(economic).!The!reason!these!three!KPI!were!selected!is!that!they!are!easily!measured,!and!will!progress!simultaneously!with!improved!sustainable!efforts.!!The!report!provides!examples!of!KPI!tests!that!can!be!used!in!the!decisionbmaking!process.!It!is!also!important!to!consider!the!results!a!Cost!Benefit!Analysis!(CBA)!when!designing!a!sustainability!plan.!

The!three!projected!budget!examples!were!$0b1,000,!$1,000b10,0000!and!$10,000b100,000.!These!budgets!include!recommendations!on!where!to!allocate!funds!for!internal!operations.!(The!supply!chain!was!not!included!because!in!order!to!systematically!improve!the!supply!chain,!it!must!be!mapped.)!!

With!a!budget!cap!of!$1,000!the!top!recommendations!are:!

• Water!conservation:!Install!a!Flow!Water!Sensor!Meter!Digital!LCD!Display!controls!and!rain!catchment!systems.!Flow!meters!should!be!installed!in!high!traffic!areas!like!the!kitchen!or!restrooms.!Initial!price!ranges!from!$30b250,!and!monitor!and!record!water!flow!and!daily!usage.!Targets!can!be!established!and!incentivized!accordingly.!Old!55!Gallon!drums!can!be!used!to!collect!rainwater;!this!water!can!then!be!used!for!landscaping.!!

• Energy.!Install!lighting!occupancy!sensors!that!automatically!turn!lights!on!or!off,!depending!on!tenancy.!These!fixtures!work!well!in!bathrooms;!common!rooms!and!office!supply!rooms.!The!typical!office!spends!29%!of!its!electrical!energy!costs!for!lighting.!Occupancy!sensors!can!reduce!

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these!costs!by!50%!or!more,!at!an!energy!savings!of!5¢!b!20¢!per!square!foot.!!

• Natural!Gas.!Analyze!areas!where!further!insulation!can!be!installed.!There!is!a!2b5%!savings!opportunity!if!insulation!is!installed!on!the!first!six!feet!of!piping!from!the!boiler.!With!removable!insulation!costing!from!$10b50,!they!can!be!selfbinstalled.!In!2014,!Lacey!head!office!would!have!saved!$80b210.!The!payback!period!would!be!anywhere!from!6b18!months.!!

With!a!budget!cap!of!$10,000!the!top!recommendations!are:!

• Water.!The!biggest!consumer!of!water!at!Lacey!Head!offices,!landscaping.!Currently,!IPCS!have!a!rain!bird!system!installed!which!is!weatherbbased!SMART!irrigation!controllers!that!cut!outdoor!water!use!by!up!to!70%,!control!up!to!24!stations!and!cost!under!$300.!To!further!ameliorate!this,!IPCS!need!to!harness!the!underutilized!resource!that!is!the!onbsite!pond!where!drainage!water!is!collected.!It!is!recommended!to!attach!the!irrigation!system!to!this!reservoir.!This!can!be!done!by!connecting!a!master!pipe!with!a!pump!to!a!network!of!pipes!connected!to!the!rain!bird!irrigation!system.!The!price!would!range!from!$3,000b9,000,!depending!on!the!pump!and!what!type!of!piping!is!used,!but!can!save!up!to!$1,000!a!year,!and!cutwater!consumption!by!a!third!at!IPCS!Lacey!offices.!!

• Natural!Gas.!Scale!buildbup!in!boiler!feed!water!tubes!inhibit!both!throughput!and!heat!transfer.!By!cleaning!and!replacing!parts!(including!filters)!there!are!potential!gains!in!boiler!efficiency!of!10b12%.!The!initial!cost!is!dependent!on!how!many!parts!need!to!be!replaced!or!cleaned!such!as,!strainers.!This!can!save!10b15%.!!

• Energy.!Install!Dyson!Air!Blade!Hand!Dryers!to!replace!the!current!paper!towel!dispensaries.!Dyson!Air!Blade!Hand!Dryers!are!paperless!hand!driers!that!can!save!$1,440+!a!year,!and!with!an!initial!cost!$1,399,!they!breakeven!in!one!year.!They!cost!69%!less!to!run!than!other!driers!&!97%!less!than!paper!towels,!which!are!currently!being!used.!They!produces!79%!less!CO2!than!other!hand!dryers,!and!76%!less!than!recycled!paper!towels.!

With!a!budget!cap!of!$10,000!b!$100,000!the!top!recommendations!are:!

Water.!Install!an!Octave!Ultrasonic!Bulk!Meter,!which!is!!an!industrial!water!meter!to!establish!peak!revenue,!and!allows!for!maximum!accountability.!The!Return!On!Investment!(ROI)!of!this!product!varies,!but!can!be!between!3b8!years.!!

Energy.!For!energy!with!the!maximum!budget,!the!recommendation!would!be!to!install!a!Photovoltaic!Solar!Power!system.!Such!as!two!20!LG!300W!panels!and!40!LG!305W!panels!cost!$70,000!to!buy!and!install!but!the!federal!government!gives!one!third!of!that!back!as!a!tax!credit!so!itos!$47,000.!The!panels!produce!20,000!kWh!per!year,!which!creates!a!saving!of!about!$2,250/year!plus!a!state!incentive!of!$3,000!every!year.!The!depreciation!of!the!panels!in!tax!return!and!that!brings!the!breakbeven!down!to!about!7!years.!!

Natural!Gas.!Install!Solar!Water!Heaters!to!use!in!the!Lacey!Office.!Solar!Water!Heaters!can!cost!anywhere!from!$3,000b$21,000,!depending!on!the!size!and!if!it!is!a!passive!or!active!system,!but!a!break!even!period!of!3b6!years!can!be!expected.!!

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Section!Four:!Further!Investigations,!considers!what!IPCS!should!implement!immediately,!what!IPCS!should!begin!to!consider!and!what!IPCS!should!consider!for!the!longbterm.!It!also!lists!supplementary!methods!to!conserve!natural!gas,!energy!and!water,!as!well!as!suggestions!on!how!to!make!IPCS’!supply!chain!more!sustainable.!!

The!top!three!recommended!actions!are!to!build!a!dialogue!on!responsible!consumption,!encouraging!employees!to!log!social!outreach!programs!and!eliminate!wasteful!printing.!The!top!three!recommended!actions!for!the!near!future!are,!create!intelligible!integrated!public!policy!that!supply!chain!members!must!adhere!to,!create!conditions!that!support!sustainability!related!innovations!and!introduce!energy!treasure!hunts.!The!top!three!recommended!long!term!actions!are!to!engage!value!chain!members!!including!industry!and!NGO!partners,!invest!in!renewable!energy!sources!and!embed!sustainability!in!the!corporate!culture.!!

Methods!that!can!be!used!to!conserve!water!include,!comparing!water!use!to!similar!industry!standards,!conduct!a!facility!audit!to!quantify!water!consumption!and!invest!in!water!recycling!technologies.!Techniques!that!can!be!used!to!conserve!natural!gas!include,!using!high!efficiency!burners!and!boilers,!lowering!the!water!temperature!and!inspecting!steam!distribution.!Strategies!to!conserve!energy!include!an!energy!use!analysis,!operating!pressure!effects!on!energy!use!and!recovering!energy!from!direct!vapor!recompression.!!

Through!integrated!management!techniques!IPCS!has!demonstrated!the!capacity!to!construct!a!comprehensive!sustainability!report,!and!has!determined!that!the!immediate!concern!for!conservation!methods!is!water!consumption,!but!that!longbterm!goals!such!as,!investments!in!renewable!energy,!should!not!be!overlooked.!This!report!implores!its!readers!to!consider!the!triple!bottom!line!holistically!during!future!decision!making!processes.!!

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