Failure not an option with Emissions Reduction Plan

Failure not an option with Emissions Reduction Plan

The release of New Zealand’s first Emissions Reduction Plan sets new urgency around our country’s transition to a carbon-zero future and means slashing 11.5 million tonnes of carbon equivalent off our emissions by 2025.

The plan reveals how the Government will meet New Zealand’s first emissions budget of 72.4 million tonnes a year and underlines the fact that there is no more time for business as usual when it comes to decarbonisation.  And if greenhouse emissions and tonnes of carbon don’t mean a lot to you, picture this; 1 tonne of CO2 would fill 1 large hot air balloon (almost 3,000 cubic metres in volume), and to capture 1 tonne of CO2 emissions, approximately 50 trees must grow for one year. The challenge is real.

Strategic urgency for decarbonisation

During the last 12 months, the conversation has shifted from decarbonisation being a tactical compliance thing for businesses – to having real strategic urgency.
As Total Utilities Director, Chris Hargreaves explains, “Addressing carbon is becoming a business problem and not an optional extra.”
“Creating a low carbon economy requires considerable planning,” says Chris. “Businesses will need to be adaptable and flexible to meet the Government’s emission budgets and reduction plan and they will need to have a plan to mitigate risks associated with it.  “Carbon units will become more expensive over time, increasing the cost of goods and services with high carbon intensity.”

Protect your brand & reputation

The benefits for businesses that address carbon now are huge. Think of the cost savings of needing less energy to run your business and reducing your energy requirements now to mitigate future cost increases. Decarbonisation also means protecting your brand and reputation as more customers turn to sustainable companies.

Furthermore, it gives you a head start in bidding for contracts, with many businesses now asking for details on approaches to sustainability and emission reduction before awarding contracts. 
And front of centre of it all, of course, is the environmental imperative to reduce emissions. Science tells us we need net zero emissions to limit temperature rises to 1.5°C, and the race to get there by 2050 has started. So why aren’t businesses moving faster? Chris says that clients who come to him for advice know they need to do something but often don’t know what to do or where to start.

Total Utilities can help…

This is where Total Utilities comes in. Having worked in New Zealand’s energy market for well over 20 years, we specialise in assisting companies with the decarbonisation process and putting together carbon reduction plans. “We can help you baseline greenhouse gas emissions from across all your operations, so you know where to start,” says Chris. “We then use science-based methodologies to come up with your pathway towards net zero, ensuring a stakeholder lead approach. We can reduce your business risk by adhering to today’s environmental regulations and preparing you for any future legislation.”

Funding challenges are also often a significant roadblock to businesses taking action, explains Chris, but the benefits of future proofing your business and the cost savings over time help offset this.  “Furthermore, we can identify cost savings and revenue opportunities that will have a positive effect on your productivity, profits and performance,” he adds.

 


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The burning question about solar

The burning question about solar

It’s cheap, it’s reliable and it’s not running out anytime soon. So the burning question remains – why isn’t commercial solar as hot as… well, the sun?

Today, the business case for solar is becoming more and more compelling when it comes to commercial use. It’s not only good for the environment – it’s also good for your bottom line.

With electricity prices going through the roof, solar represents a cheap alternative to cut ongoing power costs and hedge against future electricity price increases.

Indeed, solar gets more viable by the day when you consider the gains you receive in terms of ensuring budget stability with predictable, self-generated solar costs. Then there’s the add-on benefit of being able to more accurately forecast operating power expenses.

So, what’s holding businesses back?

Total Utilities Director, Chris Hargreaves, believes it could be down to the perception that the return on investment is too long.

But Chris explains Total Utilities can provide various funding options which make the transition cost neutral, so it doesn’t have to add to overall business debt. And over time of course, you have the ongoing benefit of cheap and sustainable solar.

More viable and better value for money

“Return on investment is now under seven years for a commercial solar array, so it’s becoming much more viable and better value for money for business use,” he says. “Even in the last 12 months, conditions have changed with electricity prices going up and the cost of solar coming down.”
“Reducing your reliance on the grid and generating your own electricity onsite, gives you a strategic advantage and means you can become master of your own destiny, mitigating against energy price volatility.”

Smart with solar

Chris explains that solar users can also get smart with how they use their self-generated power. For example, they can discharge their solar battery at peak times to avoid peak grid rates, as well as generate revenue by selling excess solar energy back to the grid.

Other major benefits include solar being an easily maintainable, consistent power source – providing uninterrupted supply during power cuts. It’s conveniently scalable too, so you can further reduce up front costs by growing your system with your business over time. 

Goodwill of going green

And you can’t underestimate the goodwill generated by being perceived as a ‘green’ business as more and more customers turn to companies putting sustainability at the heart of their operations.

Indeed, when it comes to bidding for contracts, sustainability is becoming central to doing business in many sectors, with clients giving considerable weight to sustainability credentials when it comes to awarding contracts.

So, it seems the jury is no longer out when it comes to solar. It’s time to bask in its uninterrupted glory.  

With the list of benefits including cost saving, controlling utility costs, reducing your carbon footprint, providing uninterrupted power and being easily maintained and scalable – all at the same time as showcasing your eco-friendly creds – only one question remains…

When are you going to join the new power generation?

Download this guide for the benefits and how we can have solar plan for you!

Total Utilities-Powering your business with solar


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Russell Craig – CTO Microsoft New Zealand – Discusses with David Spratt at Total Utilities the cost and business case for Sustainability.

Russell Craig – CTO Microsoft New Zealand – Discusses with David Spratt at Total Utilities the cost and business case for Sustainability.

A recent Microsoft report on New Zealand’s sustainability performance shows that more than three quarters of NZ businesses now have carbon reduction plans and policies. But that’s where the green wave crashes into a wall – and uncertainty about costs is a major factor.

According to Microsoft’s ‘Accelerating the Journey to Net Zero’ report, two related reasons stand out as to why businesses are failing to meet their targets. One is that businesses are unsure how to monitor their emissions, giving them no clear baseline or way to chart their progress. The other is cost. But as Total Utilities Sustainability Director, David Spratt, argues in a recent Microsoft article outlining the report findings, you have to consider the cost to your business of not transforming and the opportunity to increase market share if you do. While the report found that only 43 percent of NZ organisations have the financial resources needed to execute their carbon reduction policies – that’s assuming they’ve made accurate calculations. It’s hard to make a clear business case and create a roadmap for change without the right facts and figures. There are also significant disparities between sectors when it comes to making these estimates.

Decarbonisation – cost vs value

David points out that businesses need to look past simple upfront investments as many calculations relating to sustainable ‘costs’ ignore the significant efficiency gains that can be made. He referenced a manufacturing customer of Total Utilities who was looking to purchase a new transformer worth $1 million. Yet by placing IoT sensors in its factories to measure the actual demand on the system, Total Utilities demonstrated that significant efficiencies could be made that meant the transformer wasn’t needed. As David observed, implementing a well-researched sustainability plan can actually save on both utilities and capex costs. “We had another client, a construction firm, who put in bids for five major projects. Every single one of their clients wanted to know their sustainability credentials, and when they visited other builders’ websites, those credentials were on the home page. Sustainability, and communicating what actions you’ve taken to achieve this, have become essential to doing business in the sector.” He explains that businesses also have to consider their employer brand, in view of today’s skills shortages. People are looking for employers whose values align with theirs, and in many cases, who are actively demonstrating their progress on sustainability and decarbonisation. “When we talk about investing in sustainability, we’re not just talking about environmental sustainability but business sustainability – your ability to retain staff and customers, and their perception that your business is viable into the future,” says David.

Get with the programme

Another major reason that businesses predict they’ll fail to meet their decarbonisation targets is that they are unsure how to monitor their emissions, giving them no clear baseline or way to chart their progress. At Total Utilities, we have dramatically pivoted our business model over the past few years from supporting businesses to monitor and reduce their utility overheads from gas, water, electricity and cloud consumption – to using that data to measure your carbon footprint and support a sustainable transition. Our evolution reflects the fact that in recent years decarbonisation has moved from something just a few, ‘eco-conscious’ businesses or big emitters have focused on, to being embraced by the majority of NZ businesses. The government’s Climate Change Response Act enshrining the net zero carbon by 2050 target in law, as well as a raft of other legislation and consumer demand, have added further pressure to address climate change. The message to NZ business is clear – get with the programme or get left behind. There’s no doubt achieving net zero carbon will require significant investment and commitment right across the board. But turning New Zealand’s poor performance around relies on rapidly turning the tide on our mindset about cost vs value of decarbonisation.

  • Need help calculating and reducing your carbon footprint? We’re here to help! Contact us at Total Utilities.

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Kia Ora. Security Alert

Kia Ora. Security Alert

There are individuals receiving text messages claiming to be from Total Utilities, offering discounts and promotions.

This is a scam and has not been sent by us. If you receive a suspicious text of this kind, do not click on any links and delete the message immediately. We would never send a text message of this kind.

Please report suspicious activity to us immediately at [email protected] or phone us on +64 9 576 2107. 

For more info visit: https://www.dia.govt.nz/Spam

 

The Tragedy of the Commons and why we should learn from it.

The Tragedy of the Commons and why we should learn from it.

Part Three of Planet Spratt’s Journey to Sustainability

The tragedy of the commons is an economic problem in which every individual has an incentive to consume a resource, but at the expense of every other individual—with no way to exclude anyone from consuming. Initially it was formulated by asking what would happen if every shepherd, acting in their own self-interest, allowed their flock to graze on the common field. If everybody does act in their apparent own best interest, it results in harmful over-consumption (all the grass is eaten, to the detriment of everyone)

The problem can also result in under investment (since who is going to pay to plant new seed?), and ultimately total depletion of the resource. As the demand for the resource overwhelms the supply, every individual who consumes an additional unit directly harms others—and themselves too—who can no longer enjoy the benefits. Generally, the resource of interest is easily available to all individuals without barriers (i.e. the “commons”). *

*The Investopedia Team – March 2022

As a child I spent my hazy summers at a family bach overlooking a local farmer’s property. His property commanded sole access to a tidal beach and we could only go down to swim, sail and play with his permission. It was permission he gladly granted – it was the asking that was the important thing.

Over the years we got to know this “old man” and he would share information, “secrets” he called them, about the beach and its bounty. First there was the cockle bed well past the low tide mark but easily accessible for adventurous nine-year-olds prepared to get their bottoms wet. We would walk out at low tide, shuffle our feet around in the sand and then fill our little buckets with shellfish. We only took enough for dinner (cockle fritters with a touch of sand) and never wasted them for fear of a stern telling off by mum and dad or the farmer.

Later he showed us how to set a net for the snapper that schooled into the Bay at high tide during their early summer migration. The snapper fed on the cockles and kina, fattening up before moving up into the shallows to spawn among the mangroves in the upper harbour.

When we were a little older he showed us how to live bait off the rocks for the highly territorial kingfish who feasted on the Sprats, Mackerels and baby snapper that returned to our bay in late summer after spawning.

Then came the changes. The farmer died and no one survived him who was willing to run the farm or pay the rates. The local council stepped in to “protect the asset” and turned it into a park for use by all.     We watched with interest as roads were built, footpaths laid, public toilets and bus stops installed. Then the people came. First in ones and twos. Then in their dozens. By the height of summer hundreds and sometimes thousands descended  onto our once private slice of heaven.

Cockle Hunters

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With them came cockle hunters. We didn’t mind the kids and parents with their buckets and squeals of delight. It was the “sack people” who walked up and down the beach in human chains descending on the cockle beds when they discovered them and then filling huge sacks with their prize. They came every weekend taking and taking and taking until even our “secret” bed had been found and pillaged.

After a couple of seasons the cockle beds were almost totally destroyed. The sack people still came, but only very occasionally and for lean pickings. Every sack they took reduced the shellfish stocks even further. The families who took home a hard won bucket of cockles don’t really bother with cockling too much these days. An icecream from the dairy up the road is an easier prize.

The snapper don’t come round the headland much these days either, there isn’t sufficient left for them to eat.  The kingfish still hunt mackerels and sprats around the rocks,  but their numbers are tiny compared to before and none of them are the 75cm legal size even if you were lucky enough to catch one. 

People still swim and laugh and play in the shallows. What they don’t know is that the sack people have denied them the pleasure and privilege of nature’s bounty. Their children will never understand the perfect complexity that once existed here and at many other beaches all up the Coast.

 It’s called The Tragedy of the Commons and applies to so many of our supposedly limitless resources. The giant North Island kauri forests are gone, pillaged for export and local housing by the saw millers and gum diggers in the early days of settlement. Before them the Moas were extinguished by fire, weaponry and the fierce folk who wielded them both.

Now it is the streams, lakes and oceans that are being polluted, pillaged and poisoned by a few to their own benefit and to all of society’s great loss. It is an invisible plague that doesn’t even have the courtesy to call  “bring out your dead” when passing by in their mega machines.

 

The Tragedy of the Commons problem that William Forster wrote about nearly two hundred years ago tells us a lot – mainly about ourselves. 

One issue is the way we humans so often rationalise our behaviour with cliches like:

“I have my rights you can’t tell me what to do”

“If I don’t take it someone else will”

“There is plenty to go around I am only taking my fair share”

Another issue is that the application of quotas, catch limits, water rights and pollution controls require three main things:

  • Government Intervention
  • Willingness by both companies and individuals to pay for the cost of the resources that they consume
  • A means of measuring and controlling resource exploitation

The true cost of unfettered resource exploitation  has occupied my mind recently.  I made a trip to Nelson and saw the scallop seeding plant down near the harbour.

The scallop fisheries in Tasman and Golden Bays were fished to extinction back in the 1970’s and an attempt has been made to restore this lost treasure by breeding fledgling scallops in huge tanks and then collecting their “seeds” and distributing them across a range of sites that previously contained large quantities of these wonderful shellfish.

Nature’s resources destroyed forever

This decade-long attempt has been a failure. Dredging was the preferred (and cheapest) way of taking scallops commercially  and privately fifty years ago. This method destroyed the sea grasses that covered the sandy bottom. These seemingly unimportant grasses were in fact the source of protection for growing scallops.  The sandy bottom has been left a desolated desert and the scallops are gone, forever it seems, despite science’s best efforts to heal the damage done two generations ago.

What makes this, and so many other examples, so important is that there are still many people in New Zealand and around the world who treat our common resources as unlimited and consider the “most economically efficient” method of extraction as being the right way to do things. It’s not just businesses who act this way. Individuals like the sack people will destroy a resource seemingly without a second thought for the consequences.

Many of my generation have grandchildren now. Like me they have been to the beaches of our childhoods and found them depleted and barren – despite the pretty trees, the shiny concrete footpaths and solar powered public toilets. 

We Baby Boomers too have seen that we have a role in changing the world around us. We are powerful and rich (so my children tell me) but we are not utterly immune to the pain of the loss of our natural treasures.

My colleagues and I are analysts by training and profession. Our response to sustainability is actively measuring our business’s carbon footprint now. Things like fuel, travel, lighting, heating and freight are all counted. We offset these emissions by paying for the carbon we consume either directly via renewable energy certificates (REC’s) or indirectly via government mandated carbon credits.

We are also doing this same analysis for many of our clients who are recognising that their customers want real answers to the problem of climate change and environmental destruction. 

Our customers also see younger talent making employment choices on the basis of a firm’s social responsibility policies.

By measuring our usage, limiting our consumption and paying a fair price for our share of the planet’s prolific treasures there may be light at the end of the tunnel.

Perhaps one day my grandchildren’s grandchildren will see this time as a turning point in history as they fill their tiny buckets with just enough shellfish for a meal of cockle fritters with a touch of sand.      

Lights, carbon, action for this year’s Earth Hour

Lights, carbon, action for this year’s Earth Hour

Today’s Earth Hour (Saturday 26 March, 8.30 – 9.30pm NZ time) again puts climate action into the spotlight – but a recent MYOB survey highlights that while there’s strong support for climate action among SMEs, many are confused about how to progress.

Earth Hour, which started in 2007 as a symbolic lights-out event, is now held around the world on the last Saturday of March each year to promote action on climate change and to ensure a brighter future for people and the planet. So, what better time to explore results from the latest MYOB small and medium-sized enterprises (SME) snapshot survey regarding attitudes to climate change? 

The survey captured responses from more than 500 local SME business owners and decision makers and results showed 82% of SMEs are concerned about the impact of climate change, with more than 43% very or extremely concerned. Only 18% said climate change was not a concern.

Carbon footprint confusion

The survey also pointed to the fact that more than 69% didn’t know how to measure their carbon footprint – just 21% knew how to measure it and 10% were unsure. Many didn’t know how to begin the process, couldn’t find the best initiatives to fit their business, felt it would be too costly or had a lack of free time and lack of information.

While many SMEs said they need help to map out their plans, the level of willingness to change is positive – though nearly a third (32%) said their business was not currently carbon zero or carbon neutral, they did have plans to be.

Total Utilities can help!

At Total Utilities, we have dramatically pivoted our business model over the past few years from supporting businesses to monitor and reduce their utilities overheads from gas, water, electricity and cloud consumption – to using that data to measure your carbon footprint and support a sustainable transition.

With our comprehensive energy consultancy services that assess, identify, improve and manage your energy usage and efficiency, we can not only help you measure your carbon footprint, but also assist in your journey towards decarbonisation. We have all the knowledge, skills and experience to help you achieve savings, improved efficiency and a more sustainable business model.

Sustainability essential to doing business

Total Utilities Sustainability Director, David Spratt explained that on top of the gains that can be achieved by decarbonisation, businesses also have to consider their employer brand in view of today’s skills shortages. People are looking for employers whose values align with theirs, and in many cases, who are actively demonstrating their progress on sustainability and decarbonisation.

Consumers are also demanding more from companies in terms of sustainable practices. A recent Colmar Brunton poll revealed almost half of New Zealanders say they have switched to brands that are more sustainable. “You have to consider the cost to your business of not transforming,” added David.

  • Need help measuring your carbon footprint? We’re here to help! Contact us at Total Utilities.
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