Climate Change Actions: Improved Environmental Management Challenges & Benefits Peter David Vice President, Sales EC3 Global Pty Ltd

ENVIRONMENTAL MANAGEMENT IS A BALANCE

SHELL OIL in 2000 DEFINED “EXCELLENT ENVIRONMENTAL PERFORMANCE AS MEANINGLESS IF”: no wealth is created – CORPORATE no matter how wealthy, a society fundamentally lacking in social equity cannot be sustainable - SOCIAL wealth in an destroyed environment is equally senseless - RESPONSIBILITY

“IMPROVED” ENVIRONMENTAL MANAGEMENT CREATES BOTH CHALLENGES & BENEFITS

CHALLENGES - TO GET IT RIGHT

IMPROVED ENVIRONMENTAL MANAGEMENT REQUIRES: 1.EXECUTIVE COMMITMENT 2.AN OPERATIONAL PHILOSOPHY 3.STANDARDS TO WORK TO 4.TOOLS TO MEASURE 5.PROGRAMS AND TECHNOLOGIES 6.RECOGNITION OF PROGRESS

BENEFITS – FROM IMPROVED MANAGEMENT Economic Goldman Sachs research released in early 2007 revealed that companies with environmental, social and governance (ESG) policies in place have outperformed the general stock market by 25% since August ‘05.

BENEFITS – FROM IMPROVED MANAGEMENT Commitment 68% of executives believe that environmental reporting will be mandatory in the next three to five years (Grant Thornton Business Optimism Report) Whilst government intervention is a very real threat, it should not be the motivation to become sustainable - a sustainability policy that isn’t motivated from within the organisation and that isn’t owned by the staff will not sustain itself.

BENEFITS – FROM IMPROVED MANAGEMENT Workforce 92% of new graduates would give preference to working for a company with strong environmental credentials – CSR ensures organisations recruit and retain talented staff MonsterTrak Career Website

BENEFITS – FROM IMPROVED MANAGEMENT Good Environmentally Sustainable Business Practices Deliver Positive Outcomes: 1.Results in FINANCIAL SAVINGS 2.Provides OPERATIONAL FRAMEWORKS (ie, departmental KPI’s) 3.Addresses CONSUMER DEMANDS 4.Supports STAFF VALUES

ENVIRONMENTAL MANAGEMENT TOOLS

17 Australian Universities STCRCEarthcheck Green Globe Decipher Sustainable Tourism Services Sustainable Tourism Holdings EC3 Global Consulting Unit Systems and Technology Unit Application Tools and Portals Decipher, Quality Tourism and IPAT Benchmarking and Certification Systems Earthcheck and Green Globe

“If you can’t measure it, you can’t manage it!“

“If you don’t benchmark it, how can you improve it?“

EC3 TOOLS - 3 DIMENSIONAL SYSTEMS CO2 CALCULATORS vs SYSTEMS: 1.MEASUREMENT – of impact 2.BENCHMARK – for best practice & baseline performance 3.TIMEPHASE – for ‘next’ practice as green technology evolves

EC3 ENVIRONMENTAL IMPROVEMENT METRICS Core Earthcheck Indicator Metrics Supporting Green Globe Certification: 1. Energy Consumption (Quantitative Measure + Checklist) 2. Water Consumption (Quantitative Measure + Checklist) 3. Waste Production (Quantitative Measure + Checklist) 4. Community Commitment (Quantitative Measure + Checklist) 5. Paper Products (Checklist) 6. Cleaning Products (Checklist) 7. Pesticide Products (Checklist)

EC3 PROVEN PROGRAMS SUPPORTING CLIENT SPECIFIC SUSTAINABILITY PROGRAMS, as: City of Melbourne CBD Hotels “Savings in the City Program” 2005, funded through to 2008 Gold Coast City Council Schools Based “Sustainability Challenge” 2006 and ongoing in 2007 NSW/NPWS’s Perisher Range Resort “EMS Data collection” for 120+ lodges 2006 and ongoing

Quantitative Outcomes

ENERGY Annual savings of 42,379, MJ or equivalent to 11,200 tonnes of greenhouse gas, (GHGe of 933 average Victorian houses) WASTE Annual savings: m3 or tons. Annual savings: 658 large skips of rubbish. WATER Savings of 20.3 megalitres (equivalent to annual savings of 20 Olympic swimming pools) Melbourne Savings in the City

ENVIRONMENTAL MGMT IS KEY TO GOOD C.S.R. Corporate Social Responsibility is the framework leading organisations conduct business CSR helps organisations meet their obligations to consumers and legislators CSR works with a consistent approach across all regions, countries and destinations

ENVIRONMENTAL MGMT IS KEY TO GOOD C.S.R. Cost and Risk Implications: Financial markets are starting to recognise that inattention to environmental factors impact performance. Investment Capital: Ethical investments are now key factor in driving environmental performance and reporting. Competitive Disadvantage: Failing to monitor, report and mitigate their environmental impact will be noted in the markets (financial, consumer and competitive).

Thank You Peter David