Office Case Study
Norwich Union Financial Services Limited
Contact: Eddie Rizzo
Security Manager
Ph: (03) 829-8721
Fx: (03) 820- 1534
Postal address: P.O. Box 2567W
GPO Melbourne 3001
Financial savings flow from environmental audit
Description of Project
In 1991, the Norwich Union Financial Services
Group was one of the first financial services companies in Australia to complete
an environmental audit of its 570 employee head office in Melbourne and to adopt
wide-ranging environmental policies.
Norwich Union Financial Services Group is part of the international Norwich
Union Group which has operations in 16 countries and worldwide funds under
management of more than A$60 billion. Norwich in Australia comprises a number of
companies in the financial services industry, whose core businesses are life
insurance, investment management and financial planning services.
As a result of its audit, the Norwich Group has saved an estimated $217,000
per annum in operating costs. Estimated savings have been mostly achieved and
exceeded in some areas.
After the success of Norwich Melbourne, the consultant who undertook the
audit was sent to the Sydney, Adelaide, Perth and Brisbane offices to implement
the same process.
Process Undertaken
Corporate Environmental Management Pty. Ltd. (CEM) was
commissioned to undertake the environmental audit, examining issues related to
energy, stores/stationery, car fleet management, and commercial waste. The aim
of the audit was to reinforce existing environmentally responsible procedures
and to re-educate staff through the establishment of an Environment Committee.
CEM has also continued to monitor the progress of the program, producing a
review report in 1994. CEM manager, Ann-Marie Devine believes that putting
resources into monitoring is crucial for ensuring an environmental program is
maintained on an ongoing basis. A review process enables constant adjustment to
the environmental program, making it dynamic, rather than a one-off response to
the initial environmental audit.
Subsequent to the implementation of the audit, CEM established an
Environmental Advisory Team made up of staff from various departments (see photo
above.) CEM has a representative present at the regular Environmental Advisory
Team meetings, and provides ongoing assistance in project development.
The Environmental Advisory Team's role is to assume ownership of the
environmental program, providing a point of contact and assisting in future
monitoring.
Rather than creating a new unit, responsibility for the Environmental
Advisory Team has been given to Security within the Office Services Department.
Changes Trade and Savings
Energy
- The air conditioning unit at head office was modified @ $20,000 to improve
efficiency through the implementation of 'liquid pressure amplification' and
liquid injection pumps. Expected payback is 1.6 years.
- One of the chillers in another propoerty has also been converted to run on
environmentallysound gases which are not harmful to the atmosphere.
- As part of the review, a follow-up night audit was conducted of the amount
of electrical equipment left on. The audit revealed that only 30 terminals and
printers were left on, out of a total of 570, indicating the success of the
initial environmental education. The original audit estimated that the energy
cost of leaving terminals on came to $36,000 p.a.
- The lack of individual light switches for meeting rooms, store rooms and
individual offices meant lights often ran for long periods when rooms were
vacant. Changes were estimated at delivering savings of approx. $7,000 per
annum, with a payback period of 3.3 years.
- An electronic timer has been installed @ $700 in the social club bar to
control air conditioning/ heating usage, so as it runs only when the bar is in
use. Savings are estimated @ $2,000 per annum.
Stores / Stationery
- Reports are electronically dispatched to the relevant staff, reducing
paper use and wastage.
- The Group has trialled 100% recycled paper but found it caused problems
for the high speed printers. They new use a paper made from managed forests in
Gippsland. CEM has recommended using Xerox's 80% recycled paper as an
alternative to the 100% recycled paper.
- The Printing Department is using recycled products which are chlorine and
dioxin free for all advertising brochures and consumer publications. Business
cards are also produced on environmentally-sound, oxygen-bleached board. 95%
of envelopes used are manufactured from recycled paper, and most areas are
using recycled, post-it note pads.
- Printing and Stationery departments spent $34,942 on recycled laser
cartridges and computer ribbons in the last 12 months. New they would have
cost $77,182, resulting in savings of $42,240 p.a.
- A staff member converted the Internal Phone Directory alphabetically for
use on e-mail, allowing frequent and efficient updating, and eliminating the
need for paper copies. While the Departmental Directory is still on paper,
this is currently under review.
Car fleet management
- By October 1994, 70% of the car fleet had converted from petrol to L.P.G.
The cost of conversion is generally paid back within the first year and the
vehicles kept for 3-4 years, resulting in substantial cost savings and
environmental benefits.
- In 1993, the CEM review found that the cost of L.P.G. for the 27 converted
vehicles was $43,500.63. If they had used petrol, the cost would have been
over $87,000 p.a.
Commercial waste
- All Norwich sites in Melbourne are recycling waste paper, and the office
headquarters are also recycling aluminium cans, glass and PET. Savings are
approximately $6,240 p.a. by reducing waste removal costs.
- Disposable plastic cups have been replaced by ceramic mugs.
- 100% recycled toilet paper and hand towels are provided in rest rooms.
Costs and Payback
Corporate Environmental Management (CEM) undertook the
original environmental audit for $7,000.
Capital costs have been less than $50,000 with total savings amounting to
$217,000 p.a.
A breakdown of the projected cost savings is provided in the pie-chart below.
Employment
A consultant from CEM was employed for several weeks. After
the success of Norwich Melbourne, the consultant was sent to audit the Sydney,
Adelaide, Perth and Brisbane offices.
A CEM representative attends the monthly Environmental Advisory Team meetings
and spends eight hours per month working with the committee on projects,
providing support, information and monitoring.
An estimated 10% of the Security Manager's time Is spent on managing
environmental work.
There are nine staff members on the Environmental Advisory Team, who spend an
estimated 5% of their time on committee matters.
Participation
Some of CEM's staff participation initiatives have
included conducting regular staff surveys for feedback and organising training
for the use of e-mail and the computerised internal phone directory to encourage
their use.
Norwich believes that the inclusion of all stafffrom the top down - is
crucial to the success of the project, and has led to a strong commitment to the
environment among staff. The project has strong backing from the Norwich Board.
Norwich Managing Director, Geoffrey Donnelly, said the implementation of
environmental management systems had boosted staff morale.
Further Plans
It is planned to introduce a Norwich car pooling system.
From 1995, all employees who are on a package are to be offered the option to
switch their cars to L.P.G. at a discount rate - provided there is suffficient
support.
Details about the Environmental Advisory Team are to be included in the
Personnel and Training Handbook.
Establishing a 'Green Board' in the staff bistro is planned as a means of
keeping all staff informed of the Environmental Advisory Team's activities.
For more information, contact
ACF / ACTU Green Jobs Unit
340 Gore Street
Fitzroy, 3065
Ph: (03) 416 0355
Fx: (03) 416 0767
Email:acflib@peg.apc.org.
Visit the
WEI homepage
Cornell Center for The Environment