Australia’s carbon emissions would be reduced by around 46 million tonnes of CO2 a year if the business community follows the lead of Victorian firms participating in a business-run sustainability program.

With the Federal Parliament currently debating emissions reduction legislation, this savings represents one-third of the Federal Government’s proposed emissions reduction target by 2020 of 138 million tonnes or 5 per cent below the 2000 level.

According to VECCI analysis of businesses participating in a sustainability program, each participant is, on average, reducing their carbon footprint by 15.4% or 28 tonnes.

With Australia’s two million businesses responsible for 50% or 300 million tonnes CO2 of the nation’s 600 million tonnes of annual emissions today, an across-the-board cut of 15.4% in business emissions equates to a reduction in Australia’s emissions of 46 million tonnes.

The businesses – participants in the Grow Me The Money program – are also reporting significant cost savings. On average, participants have saved $6,600 per year and will continue to make ongoing savings in a future with higher energy and water costs.

VECCI CEO Mr Wayne Kayler-Thomson, said the potential savings show that the business community can make a difference. “By undertaking a range of straight-forward sustainability measures, businesses have made large savings of carbon and money.  There is a great incentive for all other Australian businesses to do the same. Together, the Australian business community can cut targeted emissions by one-third by picking sustainability’s low-hanging fruit.”

It’s not hard

Many of the savings can be at little or no cost, such as by installing low-energy compact fluorescent lights, resetting thermostat temperatures and installing light motion sensors, not to mention simple staff actions that reduce emissions and save precious resources.

Alto Hotel on Bourke, a four-star boutique Melbourne hotel and Grow Me The Money participant, installed key card-activated switches in all the guest rooms to ensure lights and air conditioning went off when guests were out. Paper recycling bins were also added to rooms, reducing landfill waste by 28%. The company estimates it is saving $50,000 a year through a range of energy, water and waste initiatives.

Vega Press, a printing company in the eastern suburb of Notting Hill, installed Light Eco Units, a system which effectively made its 2000 fluorescent tubes run in economy mode, and installed a power factor correction system to smooth current to its printing machines, saving several thousand dollars a year in lower electricity bills.

Being green makes good business sense

Sustainable credentials also lead to new business opportunities and a competitive advantage.  For instance, Ricardo Krauskopf, owner of Alto Hotel on Bourke, says its business customers are increasingly subject to green procurement policies. “In 2008/09, company and government accounts with green procurement preferences made up over 13% of our annual turn-over. Two years ago this sector did not even rate a mention in our annual statistics.”

Rob Nugent, Commercial Manager at Vega Press, agrees.  “Our environmental credentials have enabled us to retain key clients and provided the opportunity to grow our business with other clients. I am certain that the shift of customers’ attitudes towards greater sustainability will eventually see those firms that aren’t sustainable struggle.”

There are helping hands

There is plenty of help out there for businesses that want to be more sustainable. Both Ricardo Krauskopf and Rob Nugent have mentored a number of companies, providing advice on how to save carbon and money.

“We’ve advised several motels and hotels on being more sustainable – including one down the road,” said Ricardo Krauskopf. “We do it because our industry, the wider business community and Australia need to become greener if we are to secure our future.”

Businesses can also join the Grow Me The Money online program. Prices start at $49 and are 100% tax deductible.

To spread the word about the benefits of sustainability, VECCI is rolling out Business Sustainability Ambassadors. These are owners or managers of Victorian small and medium-sized businesses who are leaders in adopting sustainable practices in their industry. The businesses have used the Grow Me The Money online tools and resources to achieve environmental and financial savings.  Ricardo Krauskopf and Rob Nugent are the first Ambassadors to be announced.