CONTENTS. Purpose of the Sustainability Plan. Sustainability Vision and Policy Statement. Sustainability Guiding Principles

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2 CONTENTS Sustainability Vision and Policy Statement 2 Purpose of the Sustainability Plan 6 Sustainability Guiding Principles 8 Sustainability Goals, Strategies, Objectives, and Sustainability Plan Update This plan update builds upon Environmental Science Associates (ESA) 2010 Sustainability Plan. It incorporates lessons learned, including how best to communicate the company s vision and objectives to leadership, and the staff tasked with ensuring results. We ve streamlined the plan to reduce redundancies and added clear direction on priority, cost, and who within our organization will champion actions. Economic 12 Environmental 16 Social 24 1

3 SUSTAINABILITY VISION AND POLICY STATEMENT Our Sustainability Vision We understand that a sustainable future is important to everyone our clients, employee owners, and communities and we pledge to be an environmental leader and obtain positive results. We are committed to integrating the environmental, economic, and social principles of sustainability into all aspects of our work. We are committed to incorporating environmental consideration into all levels of business operations. From purchasing to facility site selection, from mentoring staff to guiding our clients to sustainable project solutions, our commitment to the future is reflected in the values we promote internally, within our company, and through the forward-thinking services we deliver. Environmental stewardship and the principles of sustainability will be seamlessly woven into our business plan and corporate culture. Our actions will result in the achievement of quantifiable goals to reduce environmental harm in the short and long term. 2 3

4 Our Sustainability Policy We recognize that sustainability is our corporate responsibility. We will set a positive example and operate to ensure future generations are not compromised. To this end, we commit to the following: We will promote environmental stewardship both within ESA and outside of the company. We will achieve real improvements in operations, including but not limited to reductions in waste, greenhouse gases, the use of non-renewable resources, energy consumption, and water consumption. Reduction targets and strategies will be based on benchmarked performance targets, with a clear system for conducting audits, tracking metrics, and annually reporting on our performance. Targeted sectors within ESA will include: Facility operations Facility site-selection Purchasing Marketing Human Resources: Training existing staff and new hires Supporting staff development Transportation: Business travel Commuting With this in mind, we are committed to: Transparency Provide every employee with a copy of our Sustainability Plan and Action Report that includes information on our environmental policies, actions, and performance. Encourage open dialogue with continual input from staff. Share information with our staff, Board of Directors, and clients on our annual climate change reporting and our progress toward our sustainability goals. Education Educate all employees about the basic tenets of sustainability, and how we as employee owners can meet those standards, both in our daily practices, and in the services we provide our clients. Ensure professional excellence and proficiency in sustainability: Conference and forum participation Professional training and accreditation Train employees on operational and business practices. Stakeholders Incorporate sustainability performance and leadership into employee performance expectations. Foster and support long-term relationships with vendors, subconsultants and other teaming partners. Ensure sustained profitability and shareholder (employee-owners) value. Provide sustainable services to our clients. Community Support the communities in which we conduct business and operate as an ethical company. Promote sustainable practices. Participate in and support sustainability and conservation efforts within our respective communities. 4 5

5 PURPOSE OF THE SUSTAINABILITY PLAN In March 2009, ESA s Board of Directors endorsed a Vision and Policy Statement that shapes ESA s commitment to sustainability, and outlines our objectives for operating in a sustainable manner. The purpose of this Sustainability Plan is to guide and communicate how we intend to meet the objectives outlined in the Vision and Policy Statement. We ve organized the Plan around the three tenets of sustainability economic, environmental, and social. For each of these tenets, the Plan outlines: Guiding principles that set our values and commitments to economic, environmental and social stewardship; Goals supporting our guiding principles that ESA is committing to achieving; Strategies ESA will employ to achieve each goal; Objectives that support our goals, both quantitative and qualitative; that ESA will use to implement our strategies and meet our goals; and at ESA who are charged with the responsibility of implementing specific actions, thereby ensuring that our sustainability goals are reached. 6 7

6 SUSTAINABILITY GUIDING PRINCIPLES Our overarching guiding principle: We are committed to integrating sustainability principles into all of our work. We will employ strategies that address the economic, environmental, and social components of sustainability. These goals and strategies are described below. Economic Guiding principle: ESA is committed to running our company as a sound business and in a socially responsible and financially sustainable manner. We value our stakeholders employee-owners, clients, and teaming partners and commit to fostering and supporting long-term relationships with them. We value excellence and integrity, and therefore commit to sustaining high-quality services and results for our clients. We pledge to consider sustainability in all of our purchasing and investment decisions. We support the communities in which we conduct business and pledge to operate in an ethical manner. We recognize the growing importance of sustainability to our stakeholders and realize that reasonable and measured financial growth secures our future, provides greater opportunities for our staff, and ensures long-term success of the firm. Environmental Guiding principle: We understand the ecological, social, and financial value of operating our business in a way that minimizes impacts to the environment. We are committed to using materials, energy, water, products and services in a way that minimizes waste and conserves valuable resources. We commit to reducing greenhouse gas emissions as we conduct our business. Our operations will support and promote environmental stewardship and enhance biodiversity. Social Guiding principle: Because communities in which we live and work provide the primary context for our services, we are committed to doing good and necessary work and making a positive contribution to the regions and communities within which we live and work. We will deepen our connections to our local communities and encourage employees to engage with community members in developing solutions for local as well as global social issues. 8 9

7 SUSTAINABILITY GOALS, STRATEGIES, OBJECTIVES, AND ACTIONS ESA recognizes that adhering to the economic, environmental, and social principles described in the previous section takes both a firm-wide commitment to sustainability and a clear plan for translating sustainability goals into actions. The most effective way to ensure that sustainability is seamlessly integrated into ESA s culture, planning, and operations, is to incorporate specific sustainability goals and actions into our annual business plans. For the last several years, each of our five regions have included region-specific goals, strategies, objectives, and actions in their annual business plans, which are then rolled out by individual ESA offices. All regions will continue this practice using the updated goals, strategies, objectives and actions in this document. In addition, ESA will communicate strategies, objectives and actions via a team effort. Representatives from ESA Green our boots on the ground will meet with regional directors or their designates to help inform the planning process and choose actions to achieve goals, and will meet with designated champions to ensure successful roll-out of chosen actions. Services will provide accounting and communication strategies to support sustainability education, promotion, and performance audits. Action A specific task to be led by a designated champion that helps achieve the goals and objectives established in the Sustainability Plan. Champion The committee, group, or individual responsible for implementing the Plan actions. implement Identifies actions as easy, moderate, or difficult. Priority High priority actions are those that should be implemented within the next fiscal year, medium in the next two to three years, and low in the next five years. Cost A gauge of monetary investment including: nominal ($), moderate ($$), expensive ($$$), or free

8 ECONOMIC GOAL: Be a socially and environmentally responsible business that is also profitable MEASURABLE OBJECTIVE: Pursue our environmental and social objectives without compromising the company s profitability goal of at least 10% Develop strategic and business plans to ensure sustained profitability and shareholder value Manage regions and practices to achieve business plan goals Establish revenue goals (i.e., double digit percentage growth, year over year) that sustain long-term firm growth Leverage and maximize revenue growth opportunities in each region to create more service/ market balance and overall financial stability Incorporate sustainability actions into annual business plans rs Moderate $$ High rs Moderate $$ High Directors Directors + ESA Green Difficult $ Medium Easy $ High ECONOMIC Foster transparency by reporting key metrics quarterly to staff and Board of Directors; encourage engagement and feedback Strengthen employee awareness of the ESOP to ensure continued firm success Ownership Easy Free Ongoing Promote open book management principles CEO Easy Free Ongoing Report operational and financial results to all staff CEO Easy Free Ongoing Conduct Staff and Client Satisfaction Surveys; report findings to staff Marketing and Communications Director Moderate $$ Medium 12 13

9 Cultivate and retain longstanding relationships with environmentally and socially responsible vendors, teaming partners, and clients Celebrate long-lasting teaming relationships Collaborate with and mentor local, disadvantaged business Business Group Directors; Marketing Project Moderate Free Medium Moderate Free Ongoing client management strategies Marketing Secure, retain, and invest in a superior work force Create a sustainable company brand that is satisfying to existing and potential staff, creating pride of ownership Align company compensation and bonus program to reward individual and team performance, reflect corporate values, and enhance staff retention over the long term Conduct regular industry compensation and benefit surveys Consider socially and environmentally responsible options for retirement plans Marketing and Communications Cost Priority Moderate $$ Medium COO Moderate $$ High HR Moderate $$ Medium 401k Moderate Free Low Empower employee-owners to provide exceptional client service that supports long-term professional relationships comprehensive project management training programs to ensure that projects are delivered on time, on budget, and meet client needs Promote professional development and mentoring of staff and expand career opportunities at ESA Report client satisfaction survey results COO COO Marketing and Communications Director Moderate $ Medium Ensure long-term success by developing and implementing an ongoing leadership and management succession strategy Foster the ESOP culture as an important ownership succession and retirement benefit Elevate the importance of identifying and cultivating future leaders Develop and promote leadership and management training for future leaders Ownership Easy Free Ongoing rs Easy Free High rs Promote worker productivity by providing a safe, healthy, and professionally rewarding work environment Ensure all employees have a healthy office working environment that meets applicable ergonomic standards and air quality criteria Ensure that adequate health and safety training is provided to all field staff Diversify service mix and grow the markets we operative in so that we create interesting and new career opportunities HR Director Difficult $$ High COO Leadership Difficult $$$ Medium Manage business risks and opportunities related to climate change and corporate responsibility Prepare annual sustainability report to communicate vision and goals, metrics and governance Evaluate operational risks due to climate or environmental changes Track regulatory developments Prepare Conflict of Interest policy/implementation Operations; Sustainability Moderate $$ Medium COO/CFO Moderate $ Low Sustainability Easy Free Low COO Easy $ High In 2010, we committed to cultivating and retaining long-standing relationships with environmentally and socially responsible vendors, teaming partners, and clients. Progress: (As reported in our 2011 Sustainability Report) More than 86% of our work comes from repeat clients, many of whom are focused on creating positive change through thoughtful land use planning, climate action plans, and restoration. In 2010 we celebrated the 12th anniversary of the ESA + Orion joint-venture, demonstrating the successful cultivation of a long-standing relationship with a disadvantaged enterprise

10 ENVIRONMENTAL GOAL: Minimize material impacts associated with purchasing and using office supplies, furnishings, and equipment MEASURABLE OBJECTIVE: By the end of 2013, reduce paper consumption on a per capita basis by 30% from 2008 baseline levels Champion responsible paper consumption practices Cost Priority Measure annual paper consumption Operations Moderate $$ High Buy paper with the highest percentage of postconsumer recycled content available; Give FSC certified ( or Green Seal preference When and where possible, promote best management practices for paper consumption (ie, include information about the environmental characteristics of the paper used for production of internal and external materials) paper reduction through educating staff and measuring consumption by weight, type of paper, percent recycled content and cost Promote paperless operations by setting up HR and Accounting forms on-line; encourage staff to use paperless paychecks Operations; Marketing and Communications Easy Free Medium ESA Green Easy Free High HR Director, Controller Moderate $ Ongoing ENVIRONMENTAL In 2010, we committed to reducing our overall paper consumption by 25%. We measured our consumption in pounds and saw a marked reduction from 2008 numbers (26%). To better track and measure our effectiveness we ve chosen to increase our reduction from 25% to 30%, on a per capita basis. Progress: (As reported in our 2011 Sustainability Report) Reduced copy/print paper by 26% (by weight) and 28% (by sheet count) in mid-year 2010 from 2008 levels. Reduced paper products associated with promotional efforts by % (foam board, brochures, mailings, business cards, card stock and envelopes) in mid-year 2010 from 2008 levels

11 MEASURABLE OBJECTIVE: Use the ESA Sustainable Purchasing Policy for repeat purchases or purchases over $500 Use environmentally preferable materials and minimize the use of disposable products Develop and implement a plan to increase the use of the ESA Sustainable Purchasing Policy (SPP), which provides information and guidance on preferable materials (manufactures, ingredients, etc.) to anyone purchasing for the firm Maintain the ESA Store (or comparable site) as resource for sustainable products. Initiate Green Host program for internal meetings to ensure usage of reusable dishware/glassware/ utensils, filtered water service in lieu of bottled water whenever possible. Consider source/manufacturer of promotional giveaways and evaluate lifecycle cost. Moderate $$ High Operations Moderate Free High Marketing and Communications Easy Free High Easy $ High Use contractors and product suppliers that demonstrate a commitment to sustainability Use the ESA Sustainable Purchasing Policy to identify contractors and product suppliers that support ESA s sustainability principles and goals Communicate our preference for sustainable products to our suppliers Operations Easy $ Ongoing Operations Easy Free Ongoing ENVIRONMENTAL GOAL: Minimize the environmental impacts of buildings used by ESA MEASURABLE OBJECTIVES: By the end of 2013, locate 20% of ESA office space in LEED or Energy Star certified buildings By the end of 2013, obtain Green Business (or similar) certifications in all applicable offices Employ Green Building principles in ESA offices and consider green building principles and practices when remodeling or considering new office space Develop and implement a plan to increase the use of the ESA Sustainable Leasing Policy (SLP), which provides information and guidance on choosing sustainable office space, and preferable materials for build-outs Maximize day-lighting and views in regularly occupied areas Provide operable windows or comfort controls for at least 50% of office occupants Set up bicycle storage Locate offices whenever possible within ½ mile of public transit Prohibit tobacco smoking within 25 feet of office intakes or entries Add LEED certification to priority checklist for all new leases Consider the full range of sustainability priorities when renewing leases Operations Moderate $ Medium Operations Difficult $$$ Low Operations Difficult $$$ Low Directors Easy $ Medium Operations Easy Free High Operations Easy Free High Operations Moderate Free High In 2010, we committed to locating ESA offices in LEED certified buildings. Our 2012 update will evaluate progress based on the number of square footage in LEED or Energy Star certified buildings. Progress: At the end of 2012, 1 of 14 or 7% of ESA offices is located in a LEED or Energy Star certified building. 3 of 14 or 21% of all ESA offices have obtained Green Business certifications. One office was re-certified as a Sustainable Business. One office was designated as a Green business

12 ENVIRONMENTAL GOAL: Reduce GHG emissions and energy consumption associated with operations and commuting MEASURABLE OBJECTIVE: By the end of 2013, reduce company-wide per-capita GHG emissions (Scope 1, Scope 2, and Scope 3) 1 by 20% from our 2007 baseline Strive to achieve GHG reductions internally, followed by offsets Internal energy use reductions will focus on electricity and natural gas Research the viability of purchasing carbon offsets 2 and/or renewable energy certificates 3 for a) meeting stated GHG reduction goals, and b) achieving a long-term carbon neutral goal, with the intent of developing a company offset purchasing policy Reevaluate our GHG reduction goal annually, balancing relevant financial and operational considerations with a long-term goal of becoming a carbon neutral company Cost Priority Operations Easy $ Medium Sustainability Sustainability Moderate $$ Medium Easy Free High MEASURABLE OBJECTIVE: Reduce commuting in single occupancy car (miles) by 20% from 2010 levels by 2014 Use the lowest impact carrier for correspondence, freight, and business travel that will meet the needs of the parties involved Request data from existing courier vendors re: level of impact; research and evaluate alternative vendors Negotiate agreements/corporate rates with sustainable hotels in each region; provide guidance to visiting staff Ensure low-emissions rental vehicles are reserved whenever possible; partner with rental companies on competitive pricing for low-emissions vehicles Moderate Free High Moderate Free Medium Record miles and mode travelled for business Accounting Educate staff about alternative business travel modes (train vs plane) Encourage alternative transportation for commuting Educate staff about emissions associated with travel ESA Green Easy Free High ESA Green Easy Free High Provide incentives for alternative travel Operations Moderate $$ High Capture commuting data through bi-annual employee survey following SCAQMD Rule 2202 (including miles traveled by transport type, including single occupancy vehicles) ESA Green 1 Scope 1 Emissions: All direct GHG emissions. Scope 2 Emissions: Indirect GHG emissions from consumption of purchased electricity heat or steam. Scope 3 Emissions: Other indirect emissions, such as the extraction and production of purchased materials and fuels, transportrelated activities in vehicles not owned or controlled by the reporting entity, electricity-related activities not covered in Scope 2, outsourced activities, waste disposal, etc. 2 Renewable Energy Certificate: The unique and exclusive proof that one megawatt-hour of electricity has been generated from a qualified renewable resource connected to the grid. RECs are also referred to as Renewable Energy Credits, Green Tags, and Tradable Renewable Certificates. 3 Carbon Offset: A financial instrument aimed at a reduction in greenhouse gas emissions. One carbon offset represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases. Progress: Our GHG emissions (Scope 1, 2, and 3) decreased 19.8% from 2007 to 2010 largely because of the economic downturn. However, emissions increased in 2011 and by the end of 2011 we only saw a 10.2% decrease in total per capita emissions from the 2007 baseline

13 ENVIRONMENTAL GOAL: Improve water conservation and reuse MEASURABLE OBJECTIVE: Work with building management in each of ESA s offices to reduce employee water consumption Employ mix of workplace education and water saving fixtures to reduce water consumption, where possible Reduce water use in the workplace through water conservation education Encourage use of low flow appliances, fixtures and facilities when considering replacement or new purchases Conduct an inventory of water fixtures in each office; investigate possibility of sub metering Meet with building owner/property management to discuss water conservation options Communicate with fellow tenants regarding building-wide water conservation Operations Moderate Free High Operations Difficult $$$ Medium Easy Free Medium Easy Free High Easy Free High ENVIRONMENTAL GOAL: Minimize office waste through conservation and responsible management techniques MEASURABLE OBJECTIVE: By the end of 2013, achieve a 90% conformance with local landfill diversion programs (i.e., less than 10% of items eligible for recycling and/or diversion are being landfilled) Actively promote and facilitate reducing, reusing, and recycling Perform an audit to determine diversion options at each office, to ensure we are using all available programs Operations Easy $ High Perform annual waste audit at each office Operations Set up and monitor recycling programs in all offices, as well as programs for universal waste and food scrap collection where possible Educate and promote best practices through effective signage and communications Easy Free High ESA Green In 2010, we committed to reducing our water use by 10% from a 2007 baseline by employing a mix of workplace education, water saving fixtures, and low-water landscaping where possible. Progress: ESA leases office space and measuring at the tenant level is not feasible. Since it s difficult to measure actual use we have changed our objective accordingly and are still keeping conservation actions to reduce use. We realize that each community that we operate in has different diversion programs and goals. We felt that we could reach a higher conformance goal by aligning it with local programs. Progress: In 2010, we performed waste audits in all our offices. Our spot audits showed that we had a 79% recycling rate, thus diverting 79% of our waste from landfills. In 2011, we successfully negotiated with our Petaluma office landlord to get composting for the building. Composting and worm bins have been installed in 4 of our offices

14 SOCIAL GOAL: Be an active and engaged member of our community MEASURABLE OBJECTIVES: By the end of 2013, increase amount of time staff spent volunteering by 30% from 2010 baseline By the end of 2013, increase firm s financial commitment in support of local community organizations 10% from 2010 baseline regionally-based charitable giving program; report contributions to staff Establish annual budget and staff support for local non-profit organizations Deploy EarthShare program firm-wide; set up local match program Charitable Giving + CFO + Services SOCIAL Since ESA has an active Charitable Giving program that has shown results in individual and firm commitment to community organizations, the 2012 Plan recognizes an increased commitment of volunteer hours and financial giving. Progress: In 2010, we volunteered over 640 hours and in 2011 we recorded more than 1,000 volunteer hours to organizations that counted birds, educated children about environmental stewardship, cleaned up parks, provided food to those in need, and gave guidance to restoring the Puget Sound. In 2012, we piloted EarthShare, an employee payroll deduction for environmentally focused organizations

15 Recognize and support individual or group volunteer efforts through companywide communications Educate and promote best practices through effective signage and communications Create regionally based incentives for community service Communicate volunteer efforts companywide Support local educational institutions by enabling volunteer activities Coordinate at least one volunteer effort each year that benefits a local community in each region Cost Priority ESA Green Charitable Giving Operations; Communications Directors Directors Easy Free High Develop approaches to support local businesses, organizations and initiatives Purchase supplies, services and goods locally as much as possible Rent or purchase artwork from local art institutions Develop work-in-kind, donations and/or promotional support for local activities Provide speakers to local service clubs to discuss environmental and community planning issues Directors Moderate $ Medium Moderate $ Medium Moderate Free Medium SOCIAL GOAL: Be a leader in corporate social responsibility MEASURABLE OBJECTIVE: Obtain Green Business certifications or equivalent in all offices located in regions with applicable programs Use external benchmarking to improve internal sustainability performance Obtain Green Business certifications in all offices Recognize and support individual or group efforts that contribute to local sustainability efforts Perform B or comparable assessment Incorporate B fees into annual budget Communications Sustainability Services Difficult $ Medium Easy Free High Difficult $$ Medium Moderate $$ Medium In 2010 we committed to supporting and sustaining local culture. Progress: ESA s San Francisco and Los Angeles offices have active, long-time relationships with local museum artists galleries; rented art is displayed throughout the space. In 2010 we rented and displayed more than 30 works by local artists

16 WANT TO KNOW MORE? ESA s commitment to sustainability has been a core value since the company s inception. Our commitment to the future is reflected in the values we promote internally, within our company, and through the forward-thinking services we deliver. Environmental stewardship and the principles of sustainability are woven into our business plan, corporate culture, and daily decisions. We walk the talk. Learn more about ESA s commitment to sustainability and see our 2010 Sustainability Plan and 2011 Sustainability Report at ESA is a leading environmental science and planning firm committed to the principles of sustainability. We specialize in environmental and community planning, ecosystem restoration design, technical studies and investigations, environmental impact assessment and documentation, and environmental compliance. For further information on ESA s commitment to sustainability principles as well as our services related to climate change and sustainability contact ESA s sustainability officer: Lloyd Zola Community Development Practice Leader lzola@esassoc.com 28

17 OUR COMMITMENT TO SUSTAINABILITY ESA helps a variety of public and private sector clients plan and prepare for climate change and emerging regulations that limit GHG emissions. ESA is a registered assessor with the California Climate Action Registry, a Climate Leader, and founding reporter for the Climate Registry. We report our emissions annually and have adopted a Sustainability Plan to reduce waste and energy within our operations. This document is printed on FSC-certified Finch Casa Opaque, made with 30% post-consumer recycled fiber, elemental chlorine free, manufactured in the USA with 66% renewable energy, and printed with vegetable-based ink. By using these materials and production processes, ESA saved the following resources: trees 1 fully grown water energy solid waste 560 gallons 550 thousand btu 38 pounds greenhouse gases 103 pounds