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E NVIRONMENT P ROTECTION A UTHORITY Greening the Supply Chain Greener Business Alliance Project Report

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Page 1: Greener Business Alliance Project Report · 2015. 4. 24. · Greening the Supply Chain—Greener Business Alliance 1 Introduction 1.1 Background The Greener Business Alliance (GBA)

E N V I R O N M E N T P R O T E C T I O N A U T H O R I T Y

Greening the Supply Chain

Greener Business Alliance Project Report

Page 2: Greener Business Alliance Project Report · 2015. 4. 24. · Greening the Supply Chain—Greener Business Alliance 1 Introduction 1.1 Background The Greener Business Alliance (GBA)

Greener Business Alliance Project Report Environment Protection Authority GPO Box 2607, Adelaide SA 5001 Telephone: (08) 8204 2004 Freecall (country callers) 1800 623 445 E-mail: [email protected] Web site: www.epa.sa.gov.au ISBN 1 876562 69 2 JULY 2004 © Environment Protection Authority This document may be reproduced in whole or part for the purpose of study or training, subject to the inclusion of an acknowledgment of the source and to its not being used for commercial purposes or sale. Reproduction for purposes other than those given above requires the prior written permission of the Environment Protection Agency.

Page 3: Greener Business Alliance Project Report · 2015. 4. 24. · Greening the Supply Chain—Greener Business Alliance 1 Introduction 1.1 Background The Greener Business Alliance (GBA)

i

Contents

Executive Summary ....................................................................................... iii

1 Introduction ............................................................................................. 1

1.1 Background ......................................................................................... 1

1.2 The GBA project................................................................................... 1

1.3 GHD's involvement in the GBA ............................................................... 2

2 Implementation of the GBA Project.......................................................... 3

2.1 Eco-efficiency ...................................................................................... 3

2.2 Project methodology ............................................................................. 3

2.3 Flow chart ........................................................................................... 5

3 Benefits arising from the GBA Project ...................................................... 7

3.1 Tangible benefits.................................................................................. 7

3.2 Intangible benefits.............................................................................. 10

3.3 Case studies ...................................................................................... 10

CASE STUDY 1—Anthony Smith Australasia Pty Ltd (ASA)...................... 11

CASE STUDY 2—Collotype Labels Pty Ltd ................................................ 14

CASE STUDY 3—JBM Juvenal Australia Pty Ltd........................................ 17

CASE STUDY 4—LF Jeffries Nominees Pty Ltd ......................................... 19

CASE STUDY 5—Scholle Industries ......................................................... 21

CASE STUDY 6—Tarac Technologies Pty Ltd............................................ 24

CASE STUDY 7—Thornborough Estate (George Girgolas)........................ 27

CASE STUDY 8—Tributary Estate ............................................................ 29

CASE STUDY 9—White Refrigeration Pty Ltd (for Yalumba Pty Ltd) ....... 31

CASE STUDY 10—Wirra Wirra Winery ..................................................... 34

Yalumba’s role........................................................................................ 36

4 Lessons from the Project........................................................................ 38

4.1 Management of the project .................................................................. 38

4.2 Interaction within the GBA................................................................... 39

5 The Future.............................................................................................. 39

6 References ............................................................................................. 40

Appendix A—Eco-efficiency Audit Checklist .................................................. 41

Appendix B—Supply Chain Workshop: Agenda and Attendees ...................... 42

Appendix C—EPA Information: Eco-efficiency and the private sector ........... 45

Appendix D—Barossa Valley 2025: Sustaining the Success (brochure).............

Appendix E—The Smart Supply Chain (brochure) .............................................

Page 4: Greener Business Alliance Project Report · 2015. 4. 24. · Greening the Supply Chain—Greener Business Alliance 1 Introduction 1.1 Background The Greener Business Alliance (GBA)
Page 5: Greener Business Alliance Project Report · 2015. 4. 24. · Greening the Supply Chain—Greener Business Alliance 1 Introduction 1.1 Background The Greener Business Alliance (GBA)

Executive Summary

Project objectives The Greening the Supply Chain program aims to promote the benefits of eco-efficiency in businesses, with a particular focus on efficiencies in supply chain management. In 2001, the Environment Protection Authority (EPA) initiated the Greener Business Alliance (GBA) project to assess the benefits of identifying and adopting eco-efficiencies within small businesses in South Australia. The key objectives of the project were to:

• improve the environmental performance along the supply chain

• reduce the environmental impact of a company and its suppliers through a focus on supply chain management

• increase the capability of participants to initiate environmental improvements

• assist participating suppliers to pass on the benefits of the knowledge gained

• promote the benefits of knowledge gained through the project to South Australian business and the community in general.

Eco-efficiency assessments Eco-efficiency is essentially ‘doing more with less’. It is the combination of:

• the efficient use of resources

• a reduction in waste and pollution

• a reduction in costs

• a reduction of adverse effects on the environment.

The Yalumba Wine Company was selected to act as the mentor company and ten suppliers to Yalumba were selected for the term of the project. The eco-efficiency assessment of the Yalumba supply chain was managed by GHD Pty Ltd (GHD). This involved interviewing suppliers and undertaking site eco-efficiency audits, conducting a supply chain workshop, and assisting the suppliers in developing eco-efficiency action plans.

Project benefits The project has demonstrated the benefits of implementing eco-efficiency in business and business supply chains. The project benefits include strengthened relationships between the mentor company and the suppliers, an increased awareness of environment management and a demonstration of the educational function of the EPA.

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Tangible benefits will become more apparent over a five to ten year period. It is estimated that the eco-efficiencies implemented as a result of the pilot project have produced an annual cost saving to the supply chain of $86,500.

The future The project has received the support and endorsement of the GBA members, who have expressed a desire for on-going involvement. This augurs well for a bright future in developing greener businesses in South Australia.

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Greening the Supply Chain—Greener Business Alliance

1 Introduction

1.1 Background The Greener Business Alliance (GBA) project, as part of the Greening the Supply Chain program, focuses on efficiencies in supply chain management. The project was funded by the Environment Protection Authority (EPA) and managed by a steering group with members representing the EPA, the Centre for Innovation, Business and Manufacturing (CIBM), and the Yalumba Wine Company.

The GBA project was established in 2001 and was managed through a series of cooperative agreements made between the EPA, Yalumba and ten supplier companies.

1.2 The GBA project

Establishment The EPA initiated the GBA project to assess the benefits of identifying and adopting eco-efficiencies within small businesses in South Australia. After a public call for registrations of interest, Yalumba was selected as a mentor company, based on a demonstrated commitment to environmental management. Yalumba entered into a Memorandum of Understanding with the EPA, confirming the project as a joint initiative between the two parties. The key objectives of the project were to:

• improve the environmental performance along the supply chain

• reduce the environmental impact of Yalumba and its suppliers through a focus on supply chain management

• increase the capability of participants to initiate environmental improvements

• assist participating suppliers to pass on the benefits of the knowledge gained

• promote the benefits of knowledge gained through the project to South Australian business and the community in general.

The mentor company Yalumba is a family-owned business with a long and successful history in the Barossa region. It was selected as the mentor company for the project based on its genuine commitment to environmental improvement. Yalumba has demonstrated a proactive involvement in eco-efficient development, and a commitment to the Greenhouse Challenge and the National Packaging Covenant.

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Yalumba's motivation was an understanding that the management of the environmental impacts of its business will have a direct effect on its long-term sustainability within the industry. As the mentor company it took a leading role in the project, setting the pace, while maintaining a collaborative approach to suppliers.

Selection of suppliers The second stage of the project was to identify a selection of suppliers to Yalumba. The suppliers selected were typically smaller to medium sized enterprises, were generally environmentally unlicensed, but had the potential for increased eco-efficiency. The project aimed to influence the suppliers in the development of eco-efficiency methods of production and the supply of services.

A 'three-way' Eco-efficiency Agreement was then negotiated between the suppliers, Yalumba and the EPA. The eco-efficiency agreements contained a commitment for each supplier to develop an action plan that set negotiated environmental goals. The agreements also established a commitment on the part of each supplier to allow the promotion of the benefits achieved. The ten suppliers that entered into the agreement are identified in the table below.

Table 1 Greener Business Alliance project suppliers

Supplier Description

Anthony Smith Australasia Pty Ltd Capsule manufacturer

Collotype Labels Pty Ltd Label manufacturer

JBM Juvenal Australia Pty Ltd Cork supplier

L F Jeffries Nominees Pty Ltd Nursery products for vine propagation

White Refrigeration Pty Ltd Refrigeration services and products

Scholle Industries Pty Ltd Wine bladder manufacturer

Tarac Technologies Distiller

Thornborough Estate Grape grower

Tributary Estate Grape grower

Wirra Wirra Winery Wine maker

1.3 GHD's involvement in the GBA

GHD Pty Ltd (GHD) was engaged by the EPA to undertake an eco-efficiency assessment of each of the ten suppliers, and to assist them in the development of action plans. The scope of work included:

• conducting a ‘current situation' assessment of the supplier's sites to determine the environmental impacts and efficiency improvement opportunities

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• developing and prioritising feasible eco-efficiency solutions in consultation with the supplier

• developing an eco-efficiency implementation plan for each supplier

• preparing a report documenting the eco-efficiency options identified and implemented, and the actual/potential cost savings

• developing case studies that detailed the benefits of the eco-efficiency options identified for the purpose of promoting the project.

2 Implementation of the GBA Project

2.1 Eco-efficiency

The concept of eco-efficiency was first presented at the Rio Earth Summit in 1992 by the World Business Council for Sustainable Development as industry's contribution to the achievement of sustainable development. Eco-efficiency has the growing support of the business community because it does not focus exclusively on environmental outcomes, but recognises the benefits of combining environmental and economic objectives.

An eco-efficient approach to business (i.e. 'eco-efficiency') can be defined as:

‘. . . producing goods and services using less energy and fewer raw materials, resulting in less waste, less pollution and less cost.’1

Eco-efficiency management tools are outlined in the EPA Information sheet Eco-efficiency and the private sector (March 2004; refer to Appendix C). Supply chain management (improving process and relationships between suppliers) was the main management tool adopted in developing eco-efficiency in businesses through the project.

2.2 Project methodology

The eco-efficiency assessment of the Yalumba supply chain was managed by GHD staff and included the following activities: Project Initiation, Supplier Checklist, Site Eco-efficiency Audit and Reporting, Supplier Workshop, Supplier Action Plans, Case Studies, and Final Report. The relationship between these activities is shown in the flowchart at the end of this section.

Project initiation The first meeting between the consultant and the steering committee took place on 23 January 2002. One of the initial tasks was to develop an

1 EPA Information sheet Eco-efficiency and the private sector, March 2004.

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overview of the project, a timeframe, and the steps required to complete the project. A flow chart was prepared to document this information (refer to Appendix B). This phase of the project also included the gathering of relevant data, and discussions with the members of the steering committee.

Supplier checklist A checklist was developed in conjunction with the steering committee to facilitate the collection of relevant information and data from each of the suppliers. The document took the format of a questionnaire, and included:

• general site and company data

• existing environmental management systems

• wastes and emissions

• activities that give rise to greenhouse gas emissions

• energy consumption

• supply chains

• current supplier eco-efficiency initiatives.

The checklists were used during the eco-efficiency audit inspections and the information was collected through site observations and interviews with relevant staff (refer to Appendix A).

Site eco-efficiency audit and reporting Eco-efficiency audits were conducted during February to April 2002 by GHD staff experienced in the fields of energy and environmental auditing and assessment. A report was prepared for each supplier that summarised the information gathered during the audit inspection. Recommendations were also provided in relation to potential eco-efficiency improvements.

Supplier workshop A project workshop initiated by GHD was conducted at Yalumba on 12 June 2002. The workshop provided a forum for each of the suppliers to meet and interact with each other and the steering committee (refer to Appendix B for the workshop agenda). Dr John Cumming from independent market research firm Infotech Research acted as facilitator.

The main objectives of the session were to develop collaboration between the participating members, and to facilitate common eco-efficiency actions that could be implemented across the supply chain.

Five actions were identified by the workshop:

• Each supplier was to liaise with its transport suppliers to identify any potential efficiencies that could be realised.

• Each supplier was to identify strategies they have successfully implemented and communicate them to the GBA members.

• Tarac and Jeffries were to conduct a feasibility study on composting distillery wastes for use on vineyards.

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• The EPA was to contact CRC Viticulture regarding sustainable production.

• The EPA was to contact Water Alliance regarding technologies for wastewater treatment suitable for use by GBA participants.

Supplier action plans Each supplier prepared an action plan based on the recommendations presented in the initial review report and the outcomes of the workshop. This was a requirement of the eco-efficiency agreements. Each action plan nominated a number of areas of improvement that would be implemented as part of the project. A summary of the actions developed by each supplier is included in the supplier case studies in the appendices.

Case studies GHD developed a case study document for each supplier that provides a background on the supplier, their involvement in the project and a summary of the benefits of the eco-efficiency options identified. The information was used to develop materials such as web site articles and brochures to promote the project.

Final report The final report for the project provided an overview, summarised aims and objectives, outlined the benefits and outcomes, and made a realistic assessment of practical lessons learnt through the project.

2.3 Flowchart

The flowchart on the following page illustrates the stages of the project as undertaken by GHD Pty Ltd.

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3 Benefits arising from the GBA Project

To date, the project has provided a forum for the EPA to promote the benefits of eco-efficiency to South Australian business, and has provided Yalumba with the opportunity to strengthen its relationship with its suppliers. Through the course of the project, suppliers have increased their awareness of eco-efficiency and developed strategies to target environmental improvements.

The project offers many tangible and intangible benefits, although some of the measurable outcomes and benefits may take several years to quantify. However, over the brief two-year timeframe of the project, the response from all participants has been supportive and positive.

3.1 Tangible benefits

Tangible benefits such as cost savings and eco-efficiency increases have arisen from the project over the past two to three years. However, a five to ten year period will be needed to provide a more realistic assessment of benefits against key performance indicators and outcomes. The following table provides a summary of tangible benefits arising from the project. Additional detail is provided in the following comments, complied from discussions with the suppliers.

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Table 2 Tangible benefits of the project

Supplier Description of benefit Cost saving

$/annum $/5 years

ASA Reduction in compressed air usage

8,000 40,000

Collotype Energy savings 3,000 15,000

JBM Juvenal Increasing efficiency of A/C plant

500 2,500

Jeffries Recycling marc resulting in a reduction in freight and dumping cost

20,000 100,000

Tarac Reprocessing of marc resulting in reduced waste disposal

5,000 25,000

Thornborough Estates

New equipment reducing spraying by 50%

20,000 100,000

Yalumba Decreased energy consumption through adjustments to refrigeration practices and equipment

30,000 150,000

TOTALS $86,500 $432,500

Yalumba The program has provided Yalumba with a vehicle for the continued development of its green, clean and lean business direction within the Barossa Region. Yalumba has been a driving force in the development of the ‘Strategy 2025' initiative within the local wine industry. Although at an embryonic stage, this initiative is a major outcome of the implementation of eco-efficiency principles.

ASA The project has renewed ASA's focus on energy and the environment within their business. One specific outcome identified by ASA is the reduction of air leaks in the moulding machine, which has seen a corresponding reduction in energy consumption. A saving of 50 L/s of air has decreased electricity consumption with an estimated saving of $8000 per annum.

Collotype Collotype has achieved direct cost savings in electricity use. Collotype engaged a consultant to review the lighting levels along its production line. By installing a power factor correction device, an electricity reduction of 6-8% was recorded with an approximate cost saving of $3000 per annum.

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JBM Juvenal JBM Juvenal is currently assessing several eco-efficiency initiatives. The review of air conditioning efficiency in the office resulted in an estimated saving in electricity consumption of approximately 30%, with a corresponding cost saving of the order of $500 per annum.

Jeffries Jeffries is currently developing several eco-efficiency initiatives. These include turning a landfill waste into a valuable resource by developing composting options for spent marc. The savings in freight and dumping costs alone are estimated at $20,000 per annum.

Scholle Industries Scholle has used the experiences gained in the project to assist in the development of its environmental management system. Specific outcomes include:

• implementation and maintenance of an action plan for the National Packaging Covenant. The plan has specific, measurable actions and outcomes, and is based on the implementation and review of specific company sub-projects.

• The action plan included an objective to reduce waste in various manufacturing processes. As of 2003, the set objective of 5% reduction was exceeded by a 10% reduction in waste transported to landfill, with a corresponding reduction in waste pick-up.

• The action plan included an objective to reduce energy consumption in the chiller system, with a plan to install power factor correction (PFC) devices. Scholle has invested in several power efficiency projects including the installation of PFC units on the main power boards.

Tarac Tarac has increased its competitive edge with focused, eco-efficient objectives and actions in its action plan. Tarac is seeing reductions in landfill waste and water usage with several ongoing projects that are yet to be valued. To date, cost savings in marc reprocessing has resulted in a saving estimated at $5000 per year.

Thornborough Estates Overall, the project was considered by Thornborough Estates to be a success. Thornborough Estates has achieved direct cost savings by purchasing a Pellene Tumesol weeder. This has reduced chemical spraying by 50% with a corresponding cost saving of approximately $20,000 per year.

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White Refrigeration White Refrigeration actively promotes the concept of eco-efficiency. The eco-efficiencies identified in the facilities at the Yalumba site have resulted in direct estimated cost savings of $30,000 per year from decreased energy consumption.

3.2 Intangible benefits

Broadening the role of the EPA The project demonstrates the EPA's capacity for cooperating with business to reduce the negative effects of business activities on the environment, bringing benefits to both customers and suppliers. In recent years, the eco-efficiency of businesses in South Australia has been a particular focus of the EPA through its Eco-efficiency Unit. The unit has worked through the project to raise awareness and provide information and expertise to foster behavioural change in a broad range of businesses of the Yalumba supply chain.

Strengthened relationships One of the real benefits of the project is that Yalumba has strengthened its relationships with the ten suppliers involved. The increase in communication, trust and cooperation between the mentor company and the suppliers are all intangible benefits of the project.

In addition, the project has initiated cross-supplier communication to promote the transfer of eco-efficiency ideas and developments. The ongoing commitment by the members of the GBA to continue the formal association of their businesses is evidence of the growth and maturity in relationships between the companies.

Increased awareness of environment management The project has helped to increase the awareness of environmental management issues in the participating organisations.

• Environmental management staff have been employed in some of the supplier companies, as they identify the need for a managed approach to eco-efficiency.

• Two of the suppliers are now looking at their own supply chain and require ISO certification from suppliers.

3.3 Case studies

The following pages describe the experiences of participants in the GBA project.

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CASE STUDY 1—Anthony Smith Australasia Pty Ltd (ASA)

Company profile ASA has been producing products for the wine industry for over 25 years. Currently they employ around 75 staff and export products to Asia, South Africa, the Americas and Europe. ASA produce synthetic closures and capsules for sparkling and still wine. They manufacture over 400 million capsules per year, which comprises approximately 50% of the Australian market. The capsules provide protection to the closure in the wine bottles and add to the aesthetics of the product. Until recently ASA also imported and processed natural cork for the wine industry.

Manufacturing processes Since 1998, ASA has been manufacturing synthetic wine closure (Integra) at their production facility in Regency Park, Adelaide. ASA’s capsule section manufactures aluminium foil and polylaminate sparkling wine hoods and PVC and PET capsules for wine bottles.

Link to Yalumba ASA supplies Yalumba with PVC capsules, champagne hoods and synthetic wine closures.

Action undertaken In March 2002, an eco-efficiency audit at ASA inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

Several eco-efficiency initiatives were identified during the program including:

» reduction of PVC and foil waste

» adjusting the length of capsules

» reducing multi colour printing

» reclaiming heat in the printing process

» reducing greenhouse emissions.

The following table provides a summary of the Action Plan.

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GBA Action Plan—Eco-efficiency opportunities at ASA

AREA ACTION POTENTIAL BENEFITS

Capsules Work with customers to reduce the use of PVC capsules in preference for PET or aluminium foil.

Reduced greenhouse emissions and increased recycling.

Reduced waste materials.

Capsules Work with customers to see if a reduced capsule length size from 60 mm to 55 mm is acceptable.

Reduced material use.

Reduced landfill.

Capsules— foil top disk

Replace foil disk with alternative material to make capsule from one material.

Lower capsule costs. Allows better recycling of capsules. If not recycled, increases PVC to landfill.

Capsules— multi-colour printing

Encourage customers to reduce the number of colours.

Savings in production material costs, waste and greenhouse gas emissions.

Capsules—heat reclamation

Investigate the use of air-to-air heat exchanger to reclaim heat from printing heaters.

Reduced electricity consumption.

Capsules—printing area

Replace Air motors with electric motors (identified by ASA).

Reduced energy consumption.

Capsules—printing area

Grouping sales orders and reviewing process procedures to increase process efficiency (identified by ASA).

Reduced energy consumption and waste generation.

Integra Consider reduced lighting levels and temperatures.

Reduced electricity consumption.

Integra Change Integra from using preform to a form seal pack (identified by ASA).

Reduced packaging.

Integra—moulding machine

Reduce air leaks. Reduced energy consumption.

Integra—air conditioning

Air conditioning set point increased.

Reduced electricity consumption.

Greenhouse gas emission

Take the Greenhouse Challenge. Reduced greenhouse gas emissions.

Replace lighting timers with day/night sensors.

Reduced electricity consumption.

Entire site

Sign National Packaging Covenant. Green image.

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Project outcomes As of June 2003, ASA had identified the following specific outcomes from the project:

Environmental benefits

The reduction of air leaks in the moulding machine has seen a reduction in energy consumption.

The replacement of lighting timers with day/night sensors has reduced electricity consumption.

A change to Integra packaging from using preform to a form seal pack has reduced waste.

Economic benefits

A saving of 50 L/s of air has decreased electricity consumption with an estimated saving of $8000 per annum. Additional savings will be made through use of day/night sensors.

Customers have been given incentives to use two or less colours in printing, generating savings in production material costs and wastage.

Sales team and scheduling have been grouping orders to improve set up efficiencies, which provide additional up-time and waste reduction.

Other issues There are perceived PET quality issues within the industry. Currently ASA are not promoting PET capsules, but are accepting orders.

Reducing capsule length is difficult due to the perception by wineries of increased cost to fill bottles as a result.

PVC top disk was trialled successfully at the Yalumba bottling line. However, many other lines rely on detecting the metal in the capsule for quality checks. PVC top disc product is not viable for only one company.

Gas heating is being investigated as an alternative to reduce electricity consumption.

An analysis of replacing air motors with electric motors has identified cost savings of $900 per year.

As a result of the project, ASA has made direct cost savings. However, due to a changeover in personnel, the driving force behind the project was lost and a knowledge vacuum was created. Overall, the project has been successful and has renewed ASA’s focus on energy and the environment within the business.

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CASE STUDY 2—Collotype Labels Pty Ltd

Company profile Since the1930s Collotype has been printing labels for the wine and spirit markets. Collotype specialises in printing premium quality labels for the wine industry and produces approximately one billion labels each year, mainly from its facility in Mile End. It also provides services encompassing design through to production. Approximately 90% of its market is in Australia.

Manufacturing processes Collotype produces both self-adhesive (pressure sensitive) and wet glue labels with about 70% being pressure sensitive. Collotype has indicated that the market trend is towards self-adhesive labels. Production processes undertaken at the Collotype plant for self-adhesive labels include multi-colour offset printing, letterpress, silk screen, hot foil stamping, flexo, embossing and self-adhesive bronzing. Wet glue processes including multi-colour offset printing, hot foil stamping, gold bronzing, graining, embossing and gold varnish are also undertaken.

Link to Yalumba Collotype supplies Yalumba with printed labels.

Action undertaken In March 2002, an eco-efficiency audit was conducted at Collotype that inspected and reviewed the company facilities and activities. This included the assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

Several eco-efficiency initiatives were identified during the program and were included in the Action Plan including:

» reviewing the level of illumination along production line

» recycling of backing paper

» recycling the Fountain Solution on site.

The following table provides a summary of the Action Plan.

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GBA Action Plan—Eco-efficiency opportunities at Collotype

AREA ACTION POTENTIAL BENEFITS

Lighting Review whether the current high level of illumination is required along the full length of the production line.

The electricity used by one fluorescent tube releases 0.5 kg of greenhouse gases every eight hours. Reducing unnecessary lighting will also reduce energy costs.

Design for environment

Investigate whether collaborating with Yalumba’s marketing group could lead to an eco-efficient label design that would minimise waste generated and raw material use (e.g. inks, foil).

Reduced waste to landfill. Reduced raw materials. Reduced manufacturing costs.

Recyclable backing paper

It is recommended that Collotype investigate the feasibility of recycling all of the pressure sensitive backing paper. This may extend to working with Yalumba to include the backing paper generated in their bottling production.

Reduced waste to landfill.

Recycle FountainSolution on-site

It is recommended that Collotype investigate the benefits of recycling Fountain Solution on-site.

Reduced raw material and transport costs.

Greenhouse gas emissions

Take the Greenhouse Challenge.

Reduced greenhouse gas emissions.

Project outcomes All of the items outlined in the plan were implemented resulting in a decrease in the quantity of waste going to landfill and a decrease in electricity consumption. Collotype engaged a consultant to review the lighting levels along its production line.

As a result Collotype has made direct cost savings and identified the following specific outcomes:

Environmental benefits

The installation of a power factor correction device has seen a reduction of 6-8% in energy consumption.

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Recycling of backing paper at four customer premises has reduced the amount of waste going to landfill.

Economic benefits

Decreased electricity consumption saves an estimated $3000 per annum.

A compactor has also been installed to reduce transport costs.

Recycling of backing paper has provided, as yet, unquantified cost savings to Yalumba.

Other issues Although foil lining recycling has been investigated, a suitable recycler has not yet been found. Collotype is still looking to work with label designers to reduce waste.

Collotype’s involvement in the project has stimulated a greater focus on eco-efficiency. Although Collotype was already participating in a recycling program, their recycling activities have increased as a result of its participation in the project.

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CASE STUDY 3—JBM Juvenal Australia Pty Ltd

Company profile JBM Juvenal imports, processes and sells natural wine corks and is a joint venture sales company between JB Macmahon (JBM) based in Adelaide and Juvenal Ferreira Da Silva (JFS) based in Portugal. Established in April 2000, it employs eight staff and has an agent in Western Australia. JBM Juvenal also sells into NSW, Tasmania, Queensland and Victoria.

Manufacturing processes JBM Juvenal imports corks from its partner JFS and treats the natural cork for use as closures for wine and olive oil bottles. The treatment and processing of the cork involves:

» dust removal

» printing (if required) and drying

» moisture adjustment

» stabilisation with sulphur dioxide gas (SO2)

» treatment with silicone and wax

» bagging and packaging

» QA testing.

Link to Yalumba Yalumba imports cork from Portugal, which is sent to JBM for treatment and processing.

Action undertaken In March 2002, an eco-efficiency audit was conducted at JBM that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

Several eco-efficiency initiatives were identified during the program and were included into an Action Plan including:

» reducing greenhouse gas emissions

» reducing packaging waste

» saving energy from air-conditioning.

The following table provides a summary of the Action Plan.

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GBA Action Plan—Eco-efficiency opportunities at JBM JUVENAL

AREA ACTION POTENTIAL BENEFITS

Greenhouse gas

emissions

Replacing large mercury lamps with sensor activated spotlights.

Reduced electricity consumption.

Packaging Investigate the benefit of using bins that could be returned to the supplier for re-use.

Boxes are re-cycled resulting in less waste to landfill.

Reduced transport costs and greenhouse emissions.

Air conditioning Replace door between laboratories.

Reduced electricity costs.

Packaging Sign National Packaging Covenant.

Potentially more efficient use of packaging and reduced costs.

Project outcomes The actions identified in the Action Plan were implemented. As a result JBM Juvenal has made direct cost savings and identified the following specific outcomes:

Environmental benefits

The review of air-conditioning efficiency and replacement of lamps resulted in an estimated saving in electricity consumption of approximately 30%.

A cardboard recycling system has been established at a minor cost to the company resulting in a reduction of waste material going to landfill.

Economic benefit

Decreased electricity consumption achieved a cost saving of around $500 per annum.

Other issues JBM Juvenal has found that participation in the project has increased awareness within their company of eco-efficiency and was worthwhile.

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CASE STUDY 4—LF Jeffries Nominees Pty Ltd

Company profile Jeffries (previously known as Jeffries Garden Soils) produces and markets a variety of horticultural and landscaping products. Jeffries produces quality certified mulch, compost, soils and potting mixes using primarily green organics collected from kerbside recycling and council transfer stations. The Jeffries business is a fourth generation South Australian company.

Manufacturing processes Jeffries receives kerbside green organic material on their production site at Wingfield. Plastic and general refuse contamination is removed both by purpose built machinery and manually. The ‘green organics’ are passed through a grinder before liquid from wet organic pits is added. This material is then used to form windrows, which are the basis for open composting. Water is added to gain optimum moisture content and the windrows are turned to maintain the required and optimal temperature range. These parameters are monitored for three months until the windrows are ready for screening. Once screened, the finished compost is sold or used in soil mixes.

Due to increased demand, Jeffries has purchased a larger site on the northern Adelaide Plains, where the manufacturing operations will be relocated. The Cormack Road site at Wingfield will be used for retail and distribution purposes.

Link to Yalumba Jeffries supplies a variety of compost, mulch and potting mixes (for propagation of new vines) to many vineyards throughout South Australia. Jeffries operates a satellite operation in the Barossa Valley in partnership with Kuchel Contractors.

Jeffries supplies potting mixes to the Yalumba Nursery. Jeffries is also involved in trialing the use of compost and mulch on the various Yalumba vineyards.

Action undertaken In March 2002, an eco-efficiency audit was conducted at Jeffries that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics),

» inputs including energy usage (electricity, gas) and water usage,

» outputs including products, by-products and residual waste.

Several eco-efficiency initiatives were identified during the program and were added to an Action Plan, including:

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» composting options for winery waste streams

» reduced water consumption.

The following table provides a summary of the Action Plan.

GBA Action Plan—Eco-efficiency opportunities at Jeffries

AREA ACTION POTENTIAL BENEFITS

Composting Investigate composting options for winery waste streams including grape marc, stalks and timber.

Reduction in material being sent to landfill.

Re-use of current waste material. Reduced water consumption and improved soil conditioning for growers.

Water usage Water windrows in the evening.

Investigate various re-use and application options in the planning for Jeffries new site.

Reduced evaporation and water consumption from the municipal supply.

Greenhouse gas emissions

Take the Greenhouse Challenge.

Reduced greenhouse gas emissions.

Project outcomes The development of composting options for winery waste streams has provided opportunities for product value adding. The resultant process turns a landfill waste into a valuable resource.

As a result Jeffries has made direct cost savings and identified the following specific outcomes:

Environmental benefit

Developed composting facility for winery wastes at source (Barossa satellite) thus reducing freight, fossil fuel use, waste going to landfill and water usage.

Economic benefit

Estimated cost saving in freight and dumping costs of around $20,000 per annum.

Other issues Jeffries consider that the project has been worthwhile. They believe that the whole industry needs to take part in similar projects to become more eco-efficient.

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CASE STUDY 5—Scholle Industries

Company profile Scholle is the Australian subsidiary of the Scholle Corporation and specialises in the manufacture of flexible packaging. Its headquarters are in Adelaide and it employs around 260 staff. Scholle was initially established to meet the needs of the wine industry but has since expanded to other segments of the food industry.

Manufacturing processes Scholle manufactures a range of sizes in the ‘bag-in-box’ container market from 2 L through to 1500 L. There are four main processes within the Scholle plant.

• Plastic injection moulding of fittings

The majority of bag fittings are made using injection-moulding techniques.

• Film extrusion

Flexible packaging is produced using a plastic resin extruded to a film.

• Lamination

Some of the extruded films are laminated with a metallised polyester before being assembled in the bag room.

• Bag making

The bag making room houses a patented process that assures high level of production quality.

Link to Yalumba Scholle supplies Yalumba with ‘bag in a box’ packaging. This is generally delivered in bulk bins which each contain approximately 2000 bags.

Action undertaken In March 2002, an eco-efficiency audit was conducted at Scholle that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

Several eco-efficiency initiatives were identified during the program and were added to an Action Plan including:

» reduced waste in various manufacturing processes

» reduced energy consumption.

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The following table provides a summary of the Action Plan.

GBA Action Plan—Eco-efficiency opportunities at Scholle

AREA ACTION POTENTIAL BENEFITS

Bag room Reduce waste generation using new technology.

Bag room light fittings.

Less waste materials, reduced waste to landfill.

New 28 W light fittings can provide the same output as older 30 or 40 W fittings.

Slitter Reduce waste generation—investigate potential recycling options.

Less waste materials, reduced waste to landfill.

Air conditioning Air conditioning set point increased.

Reduced electricity consumption.

Clean room Install quick response roller door.

Reduced air loss from clean room area and reduced wasted energy.

Chiller system Use of variable speed drives on the pumps and a primary/ secondary loop.

Use of higher efficiency water cooled chillers rather than air cooled.

Use of chilled water temperature reset. The set point of the chilled water could be increased from 6° on light load days to say 9°.

Integrating the chilled water system so that a new higher efficiency centrifugal chiller could be installed in lieu of a reciprocating system.

Possible energy saving of 35–45% of current running costs.

Project outcomes As a result of the project Scholle has made direct cost savings and identified the following specific outcomes:

Environmental benefits

Modifications have been made to the bag room machine and have already

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achieved waste reduction targets.

Total waste to landfill is reducing. A Victorian recycler is recycling some plastic waste material.

Air conditioners controls have been adjusted, thus reducing energy consumption.

Economic benefit

Reduced waste generation has produced cost savings of $15,000 per year, which is being invested to plant trees (100,000) to replace CO2 the company produces.

Other issues The items outlined in the Action Plan were not completely implemented. Areas have been identified for electricity usage improvement and actions implemented. However, modifications to machine 13 have been separated into three stages.

Although Scholle intends to install power factor correction device for the chiller system, the use of variable speed drives does not appear feasible.

There has been an overall downward trend in electricity consumption, possibly due to increased employee awareness.

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CASE STUDY 6—Tarac Technologies Pty Ltd

Company profile Tarac is both a supplier to and a receiver of goods from the Yalumba Wine Company, and is located in Nuriootpa.

Alfred J Allen founded Tarac in 1929, after experimenting in his backyard shed where he recovered tartrate salts and residual grape alcohol from fermented winery by-products. Soon afterward the first commercial recovery plant was established. Tarac now owns and operates four strategically located distilleries and processes up to 80 per cent of Australia’s fortifying grape spirit, and about half of its bulk brandy requirements.

Manufacturing processes Four principal processes are undertaken at the plant:

• Alcohol recovery via distillation

Alcohol is recovered from spent winery marc, wine and filter cake using a single distillation column. This process uses steam to vaporise alcohol. The ‘bottoms’ from this process are sent to the calcium tartrate recovery plant for further treatment.

• Production of calcium tartrate

Calcium tartrate is generated from filter cake and centrifuge de-sludge. It is then sent to Italy for conversion to food grade tartaric acid and returned to Australia. Tarac is investigating the feasibility of installing a purification process at the site.

• GrapEX—red grape skin colour extraction

The GrapEX process uses a double extraction method to gain the best efficiencies in extracting colour from red marc.

• Vinlife—grape seed extract production

Vinlife is produced from grape seeds typically extracted from white grape marc. This process is a solids separation process, which separates the seeds from the skins. Waste grape skins join the spent marc waste stream.

Link to Yalumba Tarac supply Yalumba, as well as the wine industry generally with three principal products:

» tartaric acid (approximately 65 t/yr)

» grape alcohol for fortification (approximately 20 kL/yr)

» red grape skin extract.

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Action undertaken In March 2002, an eco-efficiency audit was conducted at Tarac that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

The three main objectives for future development and implementation by Tarac are:

• sustainable re-use of grape marc through the recovery of alcohol, grape skin and seed extracts. Used marc recovered (following extraction) used as stockfood/fertiliser.

• sustainable re-use of filter cake/tartrate waste through the recovery of tartaric acid and alcohol. Use the resultant sludge for compost.

• supply to Yalumba of tartaric acid packaged in ‘bulky’ bags, on returnable pallets, reducing packaging and transporting waste.

The following table provides a summary of the Action Plan.

GBA Action Plan - Eco-efficiency opportunities at Tarac

AREA ACTION POTENTIAL BENEFITS

Spent marc Investigate local composting options for re-use on vineyards.

Re-use of waste material. Reduced transport costs. Reduced water consumption in vineyards.

Filter cake /tartrate waste

Sustainable use of filter cake and tartrate waste.

Reduced waste.

Tartaric acid Supply tartaric acid to Yalumba in Bulky bags.

Decreased packaging waste.

Renewable energy

Burn spent marc to generate energy or steam for distillation on-site.

Reduced energy costs.

Tartaric acid production

Investigate purification opportunities in Australia for tartaric acid.

Reduced transport costs and energy use.

Cheaper production.

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AREA ACTION POTENTIAL BENEFITS

Wastewater re-use

Use stormwater on-site and treated wastewater for irrigation of vines in the area.

Reduced water consumption of growers.

Decreased stormwater discharge to environment.

Product stewardship with Yalumba

Modify tank washing practices and install centrifuge to clarify wines.

Less energy use at Tarac facility.

Co-generation

Investigate installing a co-generator.

Reduced electricity use and greenhouse gas emissions.

Reduce greenhouse emissions

Take the Greenhouse Challenge.

Reduced greenhouse gas emissions.

Project outcomes As a result of the project Tarac has received direct cost savings and identified the following specific outcomes:

Environmental benefits

Processed 3150 tonnes of grape marc, recovering 127,000 Lal (alcohol), with spent marc used as mulch/stockfeed.

Recovered 38.7 tonnes of tartrate, processed 610 tonne of filter cake, with sludge supplied to Peats Soil and Garden Supplies for composting.

Currently using 30 kL of recycled water for tartrate process.

Economic benefits

Cost savings to date in marc reprocessing has resulted in a saving estimated at $5,000 per year.

Other issues Overall, the company has a positive attitude to the environment and was already knowledgeable regarding the issues in their factory and in the impacts of their operations have on the natural environment.

Supplying bulky bags of tartaric acid does not seem viable as product goes hard if not used quickly. However, other alternatives for the bulk supply of tartaric acid are being developed including the supply of liquid tartaric acid.

The project has increased Tarac’s competitive edge and enhanced their environmental image. The focused, eco-efficient objectives and actions in Tarac’s Action Plan are seeing reductions in land–fill waste and water usage. Several projects are on-going and yet to be valued in terms of cost savings.

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CASE STUDY 7—Thornborough Estate (George Girgolas)

Company profile Vigneron Mr George Girgolas was Yalumba’s ‘Grower of the Year’ in 2000 and currently manages two sites in Virginia totalling 153 hectares.

Manufacturing processes Mr Girgolas grows Chardonnay, Zinfandel, Viognier, Cabernet Sauvignon, Shiraz, Merlot, Malbec, Sauvignon Blanc, Pinot Noir, and Semillon.

The trellises used are mainly single wire with some double wire vertical and foliage wires. The posts used are predominantly treated pine.

All varieties of vines are drip irrigated. Water is supplied from two sources:

• recycled wastewater (on the new block) piped from Bolivar supplying approximately 364 million litres/year

• two underground bores (on the old site) supplying approximately 105 million litres/year.

Pruning is generally done by hand with some mechanical assistance. The cuttings are swept into mid-row and are then mulched. An automated straw mulching machine is used for the application of additional straw mulch in the vineyard.

Bird control is effected through the use of gas guns and electronic devices. Grapes are harvested mechanically using a Pellenc self-propelled harvester that also fulfils a number of other tasks. With the appropriate attachments this machine is able to complete three rows at time when spraying, saving time and money.

The young vines are always hand picked. Fruit is delivered to Yalumba via truck and trailer.

Link to Yalumba Mr Girgolas produces white and red grape varieties for Yalumba.

Action undertaken In March 2002, an eco-efficiency audit was conducted at Thornborough Estate that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

The main objectives for future development and implementation by Thornborough were:

» reduced water evaporation

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» more efficient use of chemicals.

The following table provides a summary of the Action Plan.

GBA Action Plan—Eco-efficiency opportunities at Thornborough

AREA ACTION POTENTIAL BENEFITS

Irrigation Investigate partial root zone drying techniques and continue with subsurface irrigation and night time irrigation.

Possible introduction of windrows.

Reduced evaporation losses and therefore water consumption and salt loads.

Chemical spraying

Avoid spraying during windy days.

Use under vine spraying and mechanical weeding techniques.

More efficient use of chemicals.

Mulch/ compost

Place mulch or composted materials under the vines.

Suppress weed growth and reduce evaporation from surface soils thereby reducing water consumption. Improved water retention in treated soils.

Project outcomes As a result of the project, Thornborough has received direct cost savings and identified the following specific outcomes:

Environmental benefits

Installation of soil moisture monitoring equipment—reducing electricity and water consumption.

The purchase of a Pellenc Turnesol weeder has reduced chemical spray by 50%.

Use of mulch/compost has resulted in a reduction in water, chemical (herbicide), electricity and fossil fuel use.

Economic benefits

Cost savings on chemical spraying are estimated at $20,000 per year.

Use of mulch has improved soil quality and moisture retention—cost savings unquantified.

Other issues Thornborough Estate consider the project to be a success.

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CASE STUDY 8—Tributary Estate

Company profile Vignerons Mick & Dianne Koch of Moculta currently manage a site of 84 hectares, which produces white and red grape varieties for Yalumba. Mick and Dianne are currently planting a further 18 hectares of vines.

Manufacturing processes The Kochs grow Shiraz, Cabernet Sauvignon, Mataro, Merlot, Grenache, Riesling, Semillon, Chardonnay, Traminer, Viognier and Frontignac varieties in predominantly red clay soils over limestone.

The trellises used are mainly single wire with some double wire vertical and foliage wires used in some varieties. They use a combination of wood and steel post supports and have recently incorporated posts made from recycled plastics. All varieties are drip irrigated and in the more recent plantings the drip line has been buried. Soil moisture levels are closely monitored using an Enviroscan system. Water is supplied from an underground bore and an 85-megalitre dam filled with River Murray water.

Pests include light brown apple moth, bud mite, rabbits, hares and birds. Diseases include downy mildew and powdery mildew. Grape harvesters can also introduce weed seeds from outside the district. Vine pruning is mechanical with additional hand pruning where necessary. Prunings remain in the vineyard. Large sticks are mulched when the cover crop, typically rye grass and clover, is mowed into the vineyard.

Bird control is effected through the use of heli kites and hawk kites with the support of a gas gun.

Grapes are typically harvested at a rate of 1¼ acres per hour though the use of machine harvesters. All mechanical harvesting is via use of company contractors. Paddock 5A (old vine shiraz) is the only block hand picked because of the high quality of the fruit, which is collected in half-tonne bins. Fruit is then delivered to the winery via B-double trucks.

Link to Yalumba The Kochs have supplied fruit to Yalumba since 1991 and previously supplied to Saltram.

Action undertaken In March 2002, an eco-efficiency audit was conducted at Tributary Estate that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

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The main objectives for future development and implementation by Tributary were:

» reduced water evaporation

» more efficient use of chemicals.

The following table provides a summary of the Action Plan.

GBA Action Plan—Eco-efficiency opportunities at Tributary

AREA ACTION POTENTIAL BENEFITS

Irrigation Investigate partial root zone drying techniques and continue with subsurface irrigation and night time irrigation.

Possible introduction of windrows.

Reduced evaporation losses and therefore water consumption and salt loads.

Chemical spraying

Avoid spraying during windy days.

Use under vine spraying techniques.

More efficient use of chemicals.

Mulch/ compost

Place mulch or composted materials under the vines.

Suppress weed growth and reduce evaporation from surface soils thereby reducing water consumption. Improved water retention in treated soils.

Recycled plastic posts

Where practicable use recycled plastic posts.

Re-use of waste plastic results in less waste to landfill.

Project outcomes As a result of the project, Tributary has received direct cost savings and identified the following specific outcomes:

Environmental benefits

Reduced chemical spraying.

Use of mulch/compost has resulted in a reduction in water.

Economic benefits

Cost savings have been realised on chemical spraying.

Use of mulch has improved soil quality and moisture retention. The cost savings are as yet unquantified.

Other issues Tributary consider that the project has been worthwhile and was instrumental in creating an environmental mindset within their operations.

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CASE STUDY 9—White Refrigeration Pty Ltd (for Yalumba Pty Ltd)

Company profile White Refrigeration is a supplier of refrigeration services and products encompassing the initial conceptual design through to the construction and installation of refrigeration systems.

Manufacturing processes White specialises in the design, manufacture and installation of all types of heat exchangers (e.g. shell-and-tube, tube-in-tube, immersion chillers, ice builders and evaporative condensers). White promotes the use of de-superheaters for heat recovery from refrigeration plants to increase efficiency.

White has supplied services to the beverage (beer, wine, juice and soft drink), dairy, meat, poultry, fish, fruit, chemical and general cold storage industries. White’s offices and workshops are located in Salisbury, South Australia.

Staff from White lecture in refrigeration at the University of Adelaide and TAFE and participate in refrigeration seminars. Mr Ray White has co-authored a book titled Refrigeration for Winemakers.

Link to Yalumba White has been servicing the Yalumba Wine Company since 1988. They have been responsible for the design and installation of the ammonia recirculation plant at Yalumba for 5000 kWR at –15°C evaporation. This system currently includes four screw compressors, four evaporative condensers, an accumulator, one liquid receiver, two 700 kWR shell-and-tube brine chillers and approximately 250 immersion chillers. Part of the piping and valves were constructed entirely of stainless steel to accommodate the ammonia refrigerant.

Action undertaken An eco-efficiency audit was conducted at the Yalumba winery (by Mr Ray White) that inspected and reviewed the company facilities and activities. This included assessment of the:

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

Although having no specific recommendations for the operations at the Salisbury site, there were a number of improvements to Yalumba’s refrigeration system that White considered worthy of noting as part of this project. These included:

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• Electronic controls

Yalumba currently has a mixture of manual and electronic controls for their refrigeration plant. Upgrade of the controls system to modern electronic controls would result in better temperature control and energy savings.

• Overchill fermenters at night

Refrigeration plant is more efficient when the ambient temperature is lower. Cost savings could be achieved by using the inertia of the wine. The refrigeration plant could be run at night when the ambient temperature and off-peak electricity costs are lower. The wine temperature is then allowed to drift up during the day (within limits agreeable to the winemaker) thus reducing or eliminating the running of the refrigeration during the peak day period.

• Variable speed drives on pumps

The hydraulic systems are dynamic with varying requirements. The speed of the pumps could be varied to match the demand rather then operate on maximum capacity continuously. Considerable savings could be achieved by installing variable speed drives to match the pump output with demand.

• Maintenance

Improved maintenance of insulation on cold refrigeration lines and fixing leaks in compressed air lines would save energy.

• Co-generation plan

Energy savings could be achieved at Yalumba with the installation of a gas-fired, co-generation unit, producing electricity for the refrigeration plant (as well as general light and power) and hot water for washing in the bottling plant.

• Heat recovery from bottle wash

The bottling plant uses several wash and rinse cycles to ensure the bottles are sterile. The process is a once-through system and recycling and heat recovery are not undertaken.

The following table provides a summary of the Action Plan.

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GBA Action Plan—Eco-efficiency opportunities at Yalumba

AREA ACTION POTENTIAL BENEFITS

Barrel washing Develop new washing system.

Decreased water usage.

Night refrigeration Install condensers.

Decreased electricity consumption.

Intelligent ambient temperature control

Replace circulating fans with intelligent system.

Decreased electricity consumption.

Condensation control

Install variable speed drives.

Reduced energy consumption.

Project outcomes The eco-efficiencies identified in the facilities at the Yalumba site have resulted in direct cost savings and the following specific outcomes:

Environmental benefits

Reduced electricity consumption through installing condensers and variable speed drives, in addition to replacing circulating fans.

New barrel washing system has resulted in a reduction of 117 L water per barrel.

Economic benefits

Decreased energy consumption with an estimated cost saving of $30,000 per year.

Other issues White is an environmentally efficient business and actively promotes the concept of eco-efficiency. They have been a valuable part of the project.

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CASE STUDY 10—Wirra Wirra Winery

Company profile Wirra Wirra Winery is located at McLaren Vale, South Australia and is supplied with fruit from:

• company owned and managed vineyards at McLaren Vale (70 acres) and Finniss (70 acres)

• vineyards of approximately 25 grape growers in the McLaren Vale district (who supply approximately 70 per cent of the grape yield used for production).

Manufacturing processes The major varieties of grapes grown by Wirra Wirra are Shiraz, Cabernet, Semillon, Viognier, Merlot, Riesling, Petit Verdot and Chardonnay. Current production is approximately 2500–3000 tonnes of grapes per year, or approximately 100,000 cartons of bottled wine.

The wine-making operations on-site include crushing, draining and pressing of grapes, fermentation, racking and cleaning of the wines.

Wirra Wirra’s aim is to supply premium quality wines to a select market. To ensure that the wine quality is maintained, they plan to limit production over the next few years.

Link to Yalumba All wines are produced at the McLaren Vale winery and then transported in bulk to Yalumba at Angaston for bottling and packaging. The finished product is supplied to Negociants (Yalumba), who distribute the wine to outlets throughout Australia.

Action undertaken In March 2002, an eco-efficiency audit was conducted at Wirra Wirra that inspected and reviewed the company facilities and activities. This included assessment of the:

» supply chain (transportation and logistics)

» inputs including energy usage (electricity, gas) and water usage

» outputs including waste generation and products.

The main objectives for future development and implementation by Wirra Wirra were:

» reduced water evaporation

» reduced energy consumption.

The following table provides a summary of the Action Plan.

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GBA Action Plan—Eco-efficiency opportunities at Wirra Wirra

AREA ACTION POTENTIAL BENEFITS

Cooling tower control

Install variable or two-speed fans controlled on basin water temperature.

Reduced electricity consumption.

Overchill fermenters at night

Run refrigeration plant at night when ambient temperature is lower.

Reduced electricity consumption.

Pump controls Install variable speed drives.

Reduced electricity consumption.

Landscaping Plant drought tolerant species. Reduced water consumption.

Warehouse lighting

Switch off lights when day lighting is sufficient.

Reduced electricity consumption.

Water treatment

Install water treatment plant.

Reduced groundwater usage and improve irrigation water quality.

Stormwater runoff

Install diverter valve.

Reduced water treatment requirements and energy usage.

PVC products Investigate use of alternative products.

Reduced emissions; use of recycled products.

Capsule

Investigate use of short capsules.

Reduced raw materials and waste materials.

Project outcomes As a result of the project, Wirra Wirra has achieved direct cost savings and identified the following specific outcomes:

Environmental benefits

Reduced groundwater usage and improved irrigation water quality.

Economic benefits

Installation of a water treatment plant has resulted in estimated monitoring and recording cost savings of 25%.

Other issues Wirra Wirra has achieved direct cost savings by installing a water treatment plant. Also, by using a local soil supply company, Wirra Wirra is currently recycling all their grape marc—after treatment it is put back into company and grower vineyards.

Being involved in the GBA was a good opportunity for the company to discuss issues relating to eco-efficiency.

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Yalumba’s role

Yalumba is a medium to large business with a demonstrated commitment to environmental management. Yalumba entered into a Memorandum of Understanding with the EPA, confirming the project as a joint initiative between the two parties. The key objectives of the project were to:

• improve the environmental performance along the supply chain

• increase the capability of participants to initiate environmental improvements

• assist participating suppliers to pass on the benefits of the knowledge gained to their suppliers

• promote the benefits of knowledge gained through the project to South Australian business and the community in general.

Yalumba is a family owned business with a long and successful history in the Barossa region. It was selected as the mentor company in the project due to the commitment it has demonstrated to environmental improvement. Yalumba has been a proactive developer of eco-efficiency, and has been involved in the Greenhouse Challenge and the National Packaging Covenant.

Yalumba’s motivation for being involved in the project was a growing realisation that the management of the environmental impacts of its business will have a direct effect on its long-term sustainability within the industry. As the mentor company it took a role of leadership in the project, setting the pace, while maintaining a collaborative approach with the suppliers.

Ten suppliers (mostly small to medium businesses) entered into an eco-efficiency agreement with Yalumba and the EPA to develop action plans with agreed environmental goals.

Each supplier underwent an eco–efficiency assessment by an external consultant, after which Yalumba hosted a workshop that provided a forum for the suppliers to meet and interact with each other and the project steering committee. The main objectives were to develop collaboration between the participating members, and to facilitate common eco-efficiency actions that could be implemented across the supply chain. This assisted suppliers to:

• determine current environmental impacts

• identify opportunities for improvement

• prioritise eco-efficiency solutions

• develop eco-efficiency implementation plans

• document the outcomes.

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Project outcomes Although many of the benefits resulting from this project will take time to be fully realised, suppliers have made cost savings of over $85,000 per annum. Yalumba has realised estimated savings of $30,000 per annum.

Yalumba has also strengthened relationships with suppliers and achieved an increased awareness of environmental management.

Better communication, trust and cooperation are all intangible benefits for both the mentor company and the suppliers. In addition, the project has initiated cross-supplier communication that has enabled the transfer of eco-efficiency ideas and developments.

The ongoing commitment by the members of the GBA to continue the formal association of their businesses is evidence of the growth and maturity in relationships between the companies.

The role of the mentor company within the Greener Business Alliance was critical to the successful outcome of the project. Yalumba provided a dynamic, focused leadership in educating suppliers and setting the pace in eco-efficiency principles and practice. This flowed from a management commitment to the project, and a company representative with a passion for eco-efficiency.

The GBA project provided Yalumba with a ‘vehicle’ that has led to the continued development of its green, clean and lean business direction within the Barossa Region.

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4 Lessons from the Project

One of the main objectives of eco-efficiency is to see a continued movement towards ecologically sustainable development. The establishment of environmental management systems by companies provides a means for setting objectives and targets, and for making continuous improvements in the future. The project was established with a particular focus on identifying both positive and negative outcomes with a view to improved implementation of future projects.

4.1 Management of the project

Steering committee The overall management of the project was provided by the steering committee. The committee members brought a complementary mix of background knowledge, skill and motivation. For future projects, the formulation of the steering committee will be a major success factor.

Project objectives As the first project, the GBA had the scope to evolve under the direction of the steering committee. Consequently, specific and measurable outcomes and key performance indicators can be better defined for future projects. For example, the eco-efficiency agreements and action plans can now be further refined. Specific project management plans could also be developed for each participant (e.g. supplier, consultant, mentor).

Project timeframe The project has allowed a greater appreciation of the practical implications of developing and implementing eco-efficiencies within the operations of a business. With hindsight, the initial project timeframes were unrealistic. However, the GBA members have managed the extension of the timeframe without detriment to the project.

In future, it will be easier to predict some of the components of project timing based on the experience of this project. For example, it is recommended that a distinction be provided between the development of action plans and their implementation. The former may be programmed in a six to nine month period, whereas the latter may be assessed over a three to five year period.

Project launch The project was officially launched during the latter half of a financial year. Feedback from the GBA members has indicated that launching future programs to coincide with the planning of the financial budgets of suppliers will lead to the better allocation of funding for the development and implementation of eco-efficiency practices.

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4.2 Interaction within the GBA

Supplier selection The suppliers selected were typically regionally located, environmentally unlicensed, smaller to medium sized enterprises, with the potential to increase eco-efficiency within their businesses. This promoted acceptance and interaction among the members of the GBA. The selection of suppliers was a key component of the project, and obtaining the appropriate mix of GBA members will have an impact on the overall outcomes of future projects. The ten suppliers selected for the project provided a sufficient number of members while maintaining the opportunity for individual participation in the group sessions.

Supplier representatives Over the timeframe of the project almost all member groups of the GBA have experienced turnover of participating staff. In some cases, this was due to allocating staff with inappropriate skills to represent the company within the GBA—for example, sales staff with no environmental management role within the company. However, despite staff turnover, suppliers have maintained a commitment to eco-efficiency and a willingness to refine and improve the skill sets of their individual participants.

Role of mentor As the mentor company within the project, Yalumba provided a dynamic, focused leadership in educating suppliers and setting the pace in eco-efficiency principles and practice. This flowed from a management commitment to the project, and a company representative with a passion for eco-efficiency. The success of future programs will greatly depend on the selection of the mentor company.

5 The Future

The project has demonstrated the benefits of incorporating the principles of eco-efficiency in business, and specifically business supply chains. The support and endorsement of the project by the GBA members, and their desire for ongoing involvement, is testimony to the bright future in developing greener businesses in South Australia.

GBA project benefit analysis A preliminary study was carried out in 2002 by Smartlink to evaluate the project; however, the tangible benefits from the project may not become apparent until after a three to five year implementation period. It is recommended that a comprehensive assessment and analysis of the cost benefit of the project be undertaken to complement the outcomes of this report.

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It may be also useful to follow up the report in 2008 to track the ongoing development and long-term benefits.

Spreading the message One of the principle objectives was to promote the benefits of the project to South Australian businesses and to the community in general. At the February 2004 meeting of the GBA, it was agreed to convene a one-day conference to provide an opportunity for local businesses to learn about the structure and benefits of the project. A conference sub-committee was formed with the task of delivering a conference by August 2004 (see Appendix E).

6 References

Environment Protection Authority 2004, EPA Information Eco-efficiency and the private sector, EPA, Adelaide.

NSW EPA 2000, Profits from Cleaner Production—A Self-Help Tool for Small to Medium Sized Business, NSW EPA, Sydney.

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Appendix A

Eco-efficiency Audit Checklist

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(i)

TABLE OF CONTENTS

PAGE NO.

1. GENERAL SITE INFORMATION 1

2. SITE INSPECTION 3

3. MAJOR CONTAMINATION ISSUES 4

4. OVERVIEW ENVIRONMENTAL MANAGEMENT SYSTEM 5

5. OVERVIEW OF MAIN COMPANY ACTIVITIES 6 5.1 PROCESS DIAGRAM FOR ACTIVITY 7 5.2 OVERVIEW OF ACTIVITIES 8 5.3 OVERVIEW OF RAW MATERIALS USED IN EACH ACTIVITY 9

6. OVERVIEW OF WASTES AND EMISSIONS FOR EACH ACTIVITY 10 6.1 OTHER QUESTIONS RELATING TO EACH ACTIVITY 11 6.2 CLEANER PRODUCTION 12 6.3 SUMMARY - ACTIVITY INFORMATION SHEET 14

7. ACTIVITIES THAT GIVE RISE TO GREENHOUSE GAS EMISSIONS 15 7.1 DIRECT FOSSIL FUEL ENERGY CONSUMPTION 15 7.2 NON-ENERGY SOURCES OF GREENHOUSE GAS EMISSIONS 16 7.3 CARBON SINKS 18

8. ELECTRICITY CONSUMPTION 19 8.1 LIGHTING 20 8.2 OFFICE HEATING / COOLING 21 8.3 HOT WATER BOILER 22

8.3.1 Information to Gather 22 8.4 STEAM BOILER 24

8.4.1 General Information 24 8.4.2 Information to Gather 24 8.4.3 Boiler Blowdown 25 8.4.4 Condensate Return 27 8.4.5 Insulation 27

8.5 REFRIGERATION 28 8.5.1 General Information 28 8.5.2 Information to Gather: 29

8.6 AIR COMPRESSORS 31 8.6.1 Information to Gather 32

8.7 FANS / PUMPS 33 8.8 MOTORS 33

9. SUPPLY CHAIN 34 9.1 TRANSPORT 34 9.2 PACKAGING 34

10. ACTIONS PLANS AND FORECAST SAVINGS 37

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1. GENERAL SITE INFORMATION

Date of Assessment:

Name of Assessor(s):

Site Address:

Site Ownership:

Site Contact Person:

Position:

Phone No:

Fax No:

Email:

Briefly describe the main activities that occur on-site: (obtain a site plan if possible)

What is the main production/ output of the plant/company

What is the current capacity of the plant/company? (Collect financial year production throughput of

plant, on a monthly basis if possible. Monthly figures, if available, provide an indication of

seasonal changes to production rates if any, and a basis for developing key performance

indicators such as fuel consumption per production unit on a monthly basis)

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Does the site have any key performance indicators (KPIs) that are tracked? (eg water use per unit of production, energy use per unit of production, operating costs per unit of production) If yes, collect

twelve months of data if at all possible.

REQUIREMENTS FOR CONFIDENTIALITY

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2. SITE INSPECTION

IDENTIFIED ENVIRONMENTAL ISSUES

Type of environmental problem

Present

yes/no

Solid/

Liquid

Complaints received if so, from whom

Potential solution

Prevention off site

reuse

other eg

treatment

Domestic waste

industrial waste

water pollution

air pollution/odour

soil pollution

groundwater

pollution

biodegradable waste

noise

dust

Observations/comments

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3. MAJOR CONTAMINATION ISSUES

Eg. on-site fuel storage, chemical handling, spills, waste disposal (land, air, water)

1. _____________________________________________________________________

2. _____________________________________________________________________

3. _____________________________________________________________________

POSSIBLE SOLUTIONS AND FEASIBILITY

MAJOR CONSTRAINTS/BARRIERS TO IMPLEMENTATION SOLUTIONS

COMPANY ENVIRONMENTAL POLICY - Does the site have an Environmental Policy (if yes, collect a

copy)

EMS / EMP for specific issues?

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4. OVERVIEW ENVIRONMENTAL MANAGEMENT SYSTEM

Type of environment management system: formal/informal

Coordination by: ...................................................................

Status Parts of environ- mental management system

Present Yes No Forthcoming

Document number

Commentary

Written environmental policy

statement

Integration of environmental

protection system via a

suitable organisational

structure, allocation of tasks,

etc

Written procedures for

operations which can affect

the environment

Monitoring

Reports on performance

Staff training

Audits

Feedback to financial-

economic system

Other

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5. OVERVIEW OF MAIN COMPANY ACTIVITIES

Name of activity: ........................................................................................................

Activity description (process operation, cleaning, maintenance, etc)

Activity takes place: ¨ continuously

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5.1 PROCESS DIAGRAM FOR ACTIVITY

Schematic overview of the most important processes/activities with respect to energy consumption or generation of pollution and waste

NB. Please indicate the input and output per process/activity

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5.2 OVERVIEW OF ACTIVITIES

What activities are performed

ACTIVITY PLANT DEPARTMENT/AREA OF

OPERATION PERSONS RESPONSIBLE

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5.3 OVERVIEW OF RAW MATERIALS USED IN EACH ACTIVITY

Name of activity:...............................................................................................................

Relevant data Substance/material

(No 1) Substance/material (No 2)

Substance/material (No 3)

Type of substance or

material

Name

Annual consumption

Polluting component

Polluting component

concentration

Cost price per unit

Function of the

substance/material

Substitution possible?

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6. OVERVIEW OF WASTES AND EMISSIONS FOR EACH ACTIVITY

Name of activity: .........................................................................................................................

Name Relevant data

No. of waste/emission

A No. of waste/emission

B

No. of waste/emission

C

Type of waste/emission

Amount per year

Problem component(s)

Problem component

concentration

Waste/emission is

generated from (what

operation?)

Waste/emission is

generated (any

conditions necessary)

Is waste stream kept

separate or mixed?

Prevention/reduction

possible?

How is the

waste/emission

disposed of

Disposal costs per unit

Treatment method

(landfill, incineration,

reuse, etc)

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6.1 OTHER QUESTIONS RELATING TO EACH ACTIVITY

Name of activity: ...............................................................................................................

What is done to reduce pollution and comply with regulations?

What problems have arisen with waste to date from the activity?

How have these problems been resolved, or how will they probably be resolved in the future?

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6.2 CLEANER PRODUCTION

Question Description Priority for Further Evaluation(1)

1. What is the product used for?

2. Has the product recently undergone any quality changes?

3. Can the product be produced or substituted by a more environmentally friendly process?

4. What would this involve, and what waste/pollution would be reduced?

5. How much off-specification product material is produced?

6. What happens to off-specification material?

7. Can off-specification material be avoided or reprocessed?

8. How much waste raw material occurs?

9. Can the waste raw material be used?

10. How much waste is produced?

11. Can this waste be reduced or reused; what limits this?

12. What is the product acceptable use period?

13. What determines product use period?

14. How can the reuse possibilities of the product/raw materials/waste be enhanced

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Question Description Priority for Further Evaluation(1)

15. What problems can arise from reusing the product/raw materials/waste materials

16. Can these problems be reduced or eliminated?

(1) High, average, low.

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6.3 SUMMARY - ACTIVITY INFORMATION SHEET

Status Document

Existing Provided Requested

Process flow diagram

Materials balance

Energy balance

Flow measurements

Analyses/tests

Process description

Operations manuals

Process and Instruments Diagram

Plans of grounds and buildings

Waste material analyses

Waste materials accounting

Emission records

Environment audit reports

Production quantity records

Product composition records

Inventory data

Operators Logsheets

Material Safety Data Sheets

Equipment Upgrade

Equipment Maintenance

Comparison with similar operations (eg. benchmarking)

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7. ACTIVITIES THAT GIVE RISE TO GREENHOUSE GAS EMISSIONS

7.1 DIRECT FOSSIL FUEL ENERGY CONSUMPTION

List the main activities and processes that use energy derived from the combustion of fossil fuels (ie boilers, heaters, dryers etc) and the type of fossil fuel used (eg diesel, petrol, kerosene, heating oil, LPG). Note, electricity consumption is addressed separately in Section 2.2.

Activities/Processes Type of fossil fuel used (excluding electricity)

Do records exist that provide information as to the quantity of fuel used? Are they available? (Collect 12

months worth of data for each fuel, including quantity used, fuel cost and fuel supplier. If

possible, also obtain a photocopy of at least one actual bill – both sides. Often information such

as MJ of gas consumed is only provided on the reverse side of a bill.)

Are any fuels stored on site (eg fuel bowsers and fuel storage tanks for on-site fueling). If yes, obtain data on type of tanks, amount of fuel used, size of tanks), integrity testing

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Can fuel consumption be apportioned to each major activity or process (ie quantity of fuel used in a particular boiler type, heater etc.)? Is fuel sub-metered to any major process? If so, collect 12 months

worth of data.

If not, provide enough information for fuel use to be estimated (ie boiler size, motor size, compressor sizes, hours of operation etc):

Has any eco- efficiency initiatives been implemented recently (last 3 years), or any planned for the future, for these fuel types? If yes, obtain details.

Do site personnel have any ideas on improving eco-efficiency/reducing waste that could be implemented? If yes, obtain details.

7.2 NON-ENERGY SOURCES OF GREENHOUSE GAS EMISSIONS

Does the facility undertake biological treatment of liquid waste on-site? If so, describe how the waste is treated and what waste streams are treated. (ie describe sources of major waste streams, number of ponds etc)

Is waste metered – if yes, collect 24 months of data if possible.

Does this process occur anaerobically or aerobically?

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If the process occurs anaerobically, is the methane currently collected and used? If so, describe how. Obtain data on annual amount collected.

If the liquid waste is treated on-site, how is the treated effluent disposed of?

Does sampling of influent and effluent strength (ie BOD/COD, temperature, pH) and volume occur?

If records are not available, provide an estimate of waste strength and volume (ie x m3 per animal slaughtered)

If the liquid waste is not treated on-site, how is each waste stream disposed of?

Does the facility undertake treatment of solid waste on-site? If so, describe how the waste is treated (ie incineration) and what waste streams are treated:

Is any solid waste not treated? List all sources of solid waste.

Are records available as to the quantity of waste treated on-site per annum? (If yes, collect 24 months

of data )

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If records are not available, provide an estimate of solid waste generated and treated on-site .

Does site have EPA licence ?

Trade Waste Discharge agreements with water / sewer authority?

7.3 CARBON SINKS

Provide details of any carbon sink activities the site may be involved in (eg plantations, major tree planting or reforestation projects):

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8. ELECTRICITY CONSUMPTION

List the main activities and processes that use electrical energy (ie refrigeration, lighting, pumping etc).

Do records exist that provide information as to the amount of electricity used annually? Are they available? (Obtain 24 months worth of billing data on a monthly basis if possible. Include

electricity use, average cost, and electricity supplier. If possible, obtain at least one copy of an

actual bill – both sides)

Is electricity sub-metered anywhere. If yes, where and to what processes/activities. Collect 24 months

worth of billing data if possible.

If not, provide enough information for electricity used by each major activity or process to be estimated (ie kW of refrigeration motors, plant or lighting and hours of operation). (Note, this information is required to estimate areas for potential improvement and possible savings through the implementation of actions):

Do site personnel (in particular person/people in charge of services such as boiler/air compressors/refrigeration system) have any ideas on improving energy efficiency/reducing energy waste on site? If so, document ideas.

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Are electrical users such as conveyors left on when they could be turned off (eg extended breaks, overnight)?

Is there a purchasing policy that looks at energy efficiency of equipment when purchasing new equipment?

CONTROLS: Look at the heating, ventilation and cooling (HVAC) system(s) used in offices/space heating. Is this left running all night, or it is turned off during non-production hours (either automatically using a time switch or manually)?

8.1 LIGHTING

Energy saving opportunities in lighting systems include such things as:

v Are lights left on when they could be turned off?

v Are there opportunities to utilise natural lighting (eg sky lights)?

v Is there excessive lighting in an area? If so, do existing circuits allow only partial lighting? (Note:

There are standards that set minimum lighting levels for certain workplace activities that must be

met)

v Could automatic controls be used to save energy? For example:

v motion sensors

v time delay switches which switch lighting off a set time after the lights have been switched on

v time switches which control lighting to a preset clock

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v photoelectric cells which sense daylight levels and switch lighting on and off as required. These are generally used in areas which have skylights or large window areas, or for outside security lighting.

Are energy efficient lights being used (new 14 W tubes can give the equivalent of old 36 W fittings)?

8.2 OFFICE HEATING / COOLING

Is there use of passive systems to assist energy use?

Shading?

Energy efficient design?

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8.3 HOT WATER BOILER

Hot water boilers produce hot water generally in excess of 90C. Hot water boilers are generally configured in a closed loop circuit ie hot water generated in the boiler is used to heat secondary water via a heat exchanger, and is then fed back into the boiler. This secondary water is then distributed throughout the plant.

8.3.1 Information to Gather

Type of boiler (eg Maxitherm):

Fuel Source (gas is more economical and produces less greenhouse gases)

Rating of boiler (eg 4MW):

Hot Water Temperature ex boiler setpoint:

Temperature setpoints of secondary water system (may be more than one system):

Type of heat exchangers used (eg plate heat exchangers):

Users of hot water:

Is there scope to install solar hot water or a heat pump?

What sets temperature requirements for hot water (ie why are setpoints set where they are?):

Could temperature setpoints be reduced?

Is there scope to reduce the amount of hot water used?

What is the condition of insulation on the boiler? Is there scope for improvement?

What is the condition of insulation on hot water lines? Is there scope for improvement?

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For each insulation opportunity, get temperature of what is in tank/pipe, average ambient temperature of

room/atmosphere, size of area to be insulated or diameter and length of pipe to be insulated.

Who does insulation on the site? Get name of contractor if at all possible, so approximate costings of

insulation can be obtained if opportunities are significant.

When was the last time the boiler / heat exchange cleaned.

Are regular air / fuel ratio checks carried out?

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8.4 STEAM BOILER

8.4.1 General Information

The main pieces of equipment associated with a steam boiler system include: • Boiler Feedwater Tank (also called the hotwell). This is exactly what it says – the feed tank for

water to the boiler. The inputs into this tank include fresh water make-up, condensate return, and sometimes steam (which is used to heat the water for deoxygenation).

• Boiler Feed Pumps. These pump boiler feedwater into the boiler. • Economiser. An economiser uses the heat in the flue gases exiting the boiler to preheat boiler

feedwater. An economiser is installed between the boiler feed pumps and the boiler, so as not to cavitate the boiler feedwater pumps. Economisers improve the energy efficiency of boiler systems, but are expensive to retrofit onto existing boilers.

• Boiler. Won’t go into the different types of boilers available. The size of the boiler is generally given in Megawatts (ie a 6 MW boiler). Boilers can be fired on a number of fuels, including coal, natural gas, waste products, electricity.

Other terminology associated with boiler systems include: • Condensate Return. Clean condensate should be returned from the steam users back to the feed

water tank for reuse in the boiler. As condensate is hot and has already been treated, maximising condensate return improves energy efficiency and reduces water treatment chemical costs. Only clean condensate can be returned to the boiler. An indication of the amount of condensate return can be obtained from looking at the boiler feedwater tanks temperature (as long as steam is not injected directly into this tank). The higher the temperature, the more the condensate return. Another indication is the amount of steam produced, vs the amount of fresh water makeup fed to the hotwell (assuming these are both metered which they generally aren’t, the difference would be condensate return).

• Blowdown. It is necessary to blowdown steam boilers regularly to remove sludge composed of precipitated salts, and prevent scaling up of tubes. Boiler blowdown should be minimised while maintaining the recommended level of total dissolved solids (TDS), which is generally around 2000 ppm (guidelines are provided by boiler manufacturers). Boiler blowdown can be done manually, where TDS levels are tested regularly, and blowdown done by manually opening a valve. Automatic blowdown control based on continuous TDS readings is the most efficient, as it minimises blowdown. The heat from blowdown can be used to pre-heat boiler feed water, and this is called blowdown heat recovery.

• Oxygen Trim Control

8.4.2 Information to Gather

Type of boilier (eg Maxitherm):

Rating of boiler (eg 6MW):

Steam pressure:

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Boiler feedwater temperature:

What streams go into the boiler feedwater tank (also known as hotwell) (eg water, steam, returned condensate). Note: Steam may be added to the hotwell to heat boiler feedwater for deoxygenation

purposes.

Is there a boiler economiser in place?

What is steam used for? Are the uses direct (ie steam injected directly into a process, whereby condensate recovery is not possible) or indirect (where condensate recovery is possible)?

Is there a proactive maintenance program for fixing steam leaks? How are steam leaks reported? Is any priority given to leaks?

Are the boilers ever shutdown (eg over periods of non-production, weekends etc)?

Are the boilers fully attended, limited attendance or unattended? (ie is there someone in the boilerhouse all the time, some of the time, or only for such things as maintenance etc).

8.4.3 Boiler Blowdown

Is blowdown manual or continuous?

What TDS level is boiler blowdown controlled to?

Have a look at the boiler log book – what are the actual TDS levels? Ie How good is the control?

Is there boiler blowdown heat recovery?

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If blowdown is manual, have they ever thought about putting in automatic blowdown control?

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8.4.4 Condensate Return

Is there an indication of the amount of condensate returned (either through metering, or gut feeling from boiler operator):

From what areas are condensate returned:

From what areas are condensate not returned, and why:

If there is a potential for condensate contamination, could this be eliminated, or could the heat from contaminated condensate be utilised in some way?

8.4.5 Insulation

What is the condition of insulation on the boiler? Is there scope for improvement?

What is the condition of insulation on the feedwater tank? Is there scope for improvement?

What is the condition of insulation on steam lines? Is there scope for improvement?

For each insulation opportunity, get temperature of what is in tank/pipe, average ambient temperature of room/atmosphere, size of area to be insulated or diameter of pipe to be insulated.

Who does insulation on the site? Get name of contractor if at all possible, so approximate costings of insulation can be obtained.

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8.5 REFRIGERATION

8.5.1 General Information

Refrigeration systems work as a vapour compression system. The refrigerant (eg ammonia, R22) is

compressed to form a high pressure gas in the compressor(s), and is then passed through a condenser

(eg water cooled, air cooled or evaporative cooled) which changes the refrigerant from a gas to a liquid.

Both of these pieces of equipment are generally located in the compressor house/plant room.

The high pressure liquid refrigerant ex the condensers then flows to plant users. Here it passes through

an expansion valve which produces a low pressure liquid and flash gas. The refrigerant then passes

through the evaporator, which is located inside the coolrooms. In the evaporator, the refrigerant boils (or

evaporates), absorbing heat from the surrounding area (in the case of coolrooms). Generally the

expansion valve is located in close proximity to the evaporators. From the evaporators, the refrigerant

goes back to the compressor inlet, via some sort of surge tank.

The compressor(s) and the condensers are the major energy users within a refrigeration system. The

amount of condensing controls the discharge pressure of the compressor. Generally the discharge

pressure of the compressors is set, and the condenser fans kick in and out to control the discharge

pressure to the setpoint. The higher the pressure setpoint, the colder the refrigerant gets, and the more

energy is required as the compressor has to do more work. Some systems use the primary refrigerant

(refrigerant that passes through the compressor, often ammonia) directly in the evaporators. Other

systems use the primary refrigerant to cool a secondary refrigerant (such as brine), and the secondary

refrigerant is used in cooling applications. This is often the case in the food industry, where there are

implications with ammonia potentially coming into contact with product, and because brine is a lot less

nasty in the way of potential leaks etc than ammonia.

v What temperature is the room being cooled down to and why? Could the temperature be increased,

thus reducing refrigeration system energy consumption?

v Is there a significant amount of cooling being lost through such things as doors left open? Could the

doors be put on automatic to minimise opening times? Could plastic strips be used on the doors to

allow passage in and out, but keep cooling loss to a minimum?

v Where is the temperature sensor which controls the amount of cooling located? Is it in a place which

provides a good representation of the temperature of the room being cooled?

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v Is there any ice build-up on the evaporation coils? Ice build up occurs when the temperature of the

coils get low enough to freeze water vapour from the air, and reduces the efficiency of the coils. Are

the evaporation coils defrosted periodically and how? Is defrosting done manually or automatically?

v Are there problems getting the amount of cooling required?

v What discharge pressure (which determines refrigerant temperature) are the compressors operating

at? Is there scope to reduce the discharge pressure (and therefore refrigerant temperature)?

8.5.2 Information to Gather:

8.5.2.1 Compressor/Condenser System

v How many compressors are there:

v What is the type of refrigerant used (eg ammonia):

v What size are the compressors (ie how many kW, which is generally stamped on the name plate of each compressor:

v Type of compressors (ie screw, reciprocating):

v If there are more than one compressor, how are they controlled (generally lead lag, with one

compressor coming on line first, and the second one coming on line when the refrigeration load

exceeds the first compressor capacity):

v What happens when the second unit comes on line? Do they both drop to 50% loading, or does the first unit stay at high loading and the second one at a very low loading? (Note: Compressors

become very inefficient at low loads. It is better to run two compressors at 50% loading and ramp up

from there, rather than run one at very high load and one at very low load.)

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v At the time of review, how many compressors are on and at what loading (if PLC controlled, should

have a digital readout somewhere which gives you this information eg 100% load, 50% load):

v At the time of review, what is the plant load (ie production occuring, so load is typical, or plant shutdown, so load would be low):

v What is the discharge pressure setpoint on the compressors:

v How is the discharge setpoint controlled (generally by controlling the amount of condensing

occuring):

v Why is the discharge pressure setpoint set where it is? Could it be reduced? Has it ever been reduced? (reducing the discharge pressure increases the refrigerant temperature, but reduces the

energy consumption of the compressor and condenser)

v In general, does the refrigeration system cope with required loads ie is the system flat out unable to keep up, or is there plenty of spare capacity?

v What company services the compressors, either regularly or when there is a problem? (Note:

Generally people have refrigeration companies such as Gordon Bros come out and service

compressors regularly. These companies can be a good source of information when it comes to

identifying energy saving opportunities, as they generally know more about the system)

v Does the plant engineer (or site personnel in charge of refrigeration system) have any ideas about reducing energy consumption/improving efficiency of the system?

8.5.2.2 Other Considerations

v What is the insulation like on the refrigeration lines? Could it be improved? (if yes, get some

examples of length and diameter of piping, so a round estimate of cost savings can be worked out).

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v Is there scope to reduce cooling loss to other areas? Eg automatic doors, plastic strips over doorways?

v Is there scope to reduce temperature of coolrooms?

v Should also look at lighting in coolrooms, which is often left on all the time (as coolrooms run all the time) without being needed. Could automatic controls (eg motion sensors) be used to cut lighting costs? Could lights be turned off as part of shutdown procedure at the end of the shift? If yes, record number of types of lights that could be turned off, and for how long each day so that an estimate of energy savings can be calculated.

There may be a number of small package units around, which have a dedicated service. For these package units, find out how many they are, and try to get an indication of how long they run for each day and what size motors the compressors have (look on the nameplate of the units for kW/hp information). Also what areas they service. Are they shutdown when not required, or do they run all the time?

8.6 AIR COMPRESSORS

Compressed air is used in such things as pneumatic controls etc. Compressed air is expensive to

produce. Systems generally consist of one or more air compressor, followed by an air drier. The following

are some general energy saving opportunities in compressed air systems:

v Compressed air leaks waste significant amounts of energy, especially if left for long periods of time.

Compressed air leaks are easily identified during a period of non-production, when you can easily

hear the hissing sound they make. There should be a procedure whereby compressed air leaks are

identified, reported and repaired promptly.

v The cooler the inlet air to the compressor, the more efficient the compressor operation. Inlet air

should ideally be taken from outside the compressor house (if housed in a room) as this air is

generally cooler than inside the compressor house and at low level.

v Isolating dead legs in the air reticulation system can save energy, as the compressor does not have

to work to keep unnecessary lines pressurised. This is often the case when the air reticulation

system has been updated, and dead legs to now unused areas are not isolated or removed.

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v In installations where there are multiple compressors of different sizes, it is better to run the smaller

units during times of low air compressor requirements as compressors are very inefficient at low

loadings.

v The use of compressed air should be minimised. In some industries compressed air is used for

such things as cleaning and blowing down equipment at the end of the day, where brushes and

brooms would do the same job for less cost. Also, if compressed air hoses are used directly, they

should have nozzles which reduce the compressed air rate.

v If there is more than one compressor in the system, controls should exist that shutdown a

compressor if it remains unloaded for more than about 20 minutes. Air compressors consume

around 30% of full load demand when in the unloaded mode. A 15-20 minute timing is generally used

to prevent the unit kicking on and off frequently, which could cause excessive wear.

8.6.1 Information to Gather

How many air compressors are there?

What size units are they (either look at the name plate, or take the name and number eg Ingersol Rand 3200R of the unit and the kW rating of the unit can be obtained from the manufacturer if required):

Is there a proactive maintenance program for repairing compressed air leaks (ie a system whereby compressed air leaks can be reported and repaired promptly)?

What are the major compressed air users on site?

What is the maximum pressure requirements of all the compressed air users (site personnel may or may

not be able to answer this question)? What pressure is the compressor operating at? Is there scope to reduce system pressure while still meeting pressure requirements and overcoming reticulation pressure losses? (Generally compressor operating pressure should be approximately 50-100 kPa higher than the maximum pressure required by the users.)

Is compressed air required during hours of non-production? If not, is the compressor shutdown during these times (either automatically, or manually as part of plant shutdown procedure)?

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Is the compressed air used to produce a vacuum?

Could another system / method be used in place of compressed air? (eg. a brush to remove dirt instead of compressed air)

8.7 FANS / PUMPS

Fans and pumps are generally oversized as they are only manufactured in certain sizes and allowances made for losses and future increases in load. The systems are also normally dynamic with varying loads due to production changes etc.

Is there scope to install Variable Speed Drives on fans and pumps?

8.8 MOTORS

High efficiency motors can now deliver 10 – 15% increases in efficiency.

Does the company have a policy of purchasing the most efficient motors or lowest initial cost?

Are the motors and drives correctly aligned and tensioned (may be difficult to observe unless safety a guards are taken off)

Are there the correct number of belts and types of belts fitted to the motors?

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9. SUPPLY CHAIN

What materials does the supplier provide? Quantity?

9.1 TRANSPORT

Are there any transport vehicles owned and operated by the company? If yes, need to get information such as:

• Number of vehicles, fuel type, and annual fuel consumption

• Type of vehicles

• Use of vehicles

• Opportunities to improve energy efficiency of vehicle use (eg improved scheduling of transport)

• Vehicle Maintenance schedule

• Frequency of transport

9.2 PACKAGING

• How are materials packaged?

• Is the site aware of the National Packaging Covenant?

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• What quantities are materials supplied in?

• Are there opportunities to change the standard packaging arrangements to mininise packaging waste or packaging entirely?

• Do they use packaging that can be returned to the supplier?

• What are the constraints associated with material supply? (For example, perishables, equipment capacity or design, constraints in the end-use etc)?

• How is the supply of materials scheduled? What kind of inventory management systems do they have? (Just-in-time supply)

• How are materials physically transported? What kind of logistics/scheduling do the different suppliers/customers use?

• What kind of vehicles do they use and how often do they make trips? Do they return to site unloaded or could they use a single transport contractor in a "cycle" to ensure trucks are travelling mostly when fully loaded?

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• What purchasing processes are used? Do they have preferred supplier arrangements and if so, can it be done electronically?

• What is the physical location of each supplier? Are there opportunities

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10. ACTIONS PLANS AND FORECAST SAVINGS

How are projects justified (eg payback, NPV, IRR) What is an acceptable justification for project implementation (eg payback of less than 1 year).

Does the site have any form of purchasing policy that includes energy or environmental criteria (eg only purchasing high efficiency motors, taking into account energy efficiency when buying equipment, buying recycled toner cartridges etc).

Is there a proactive maintenance program on the site (eg leaks are reported and fixed promptly). Is there scope to improve maintenance program?

Outline any current initiatives employed at the site to:

• Improve fossil fuel energy efficiency:

• Improve electricity energy efficiency:

• Improve monitoring (metering) and reporting of energy consumption:

• Reduce emissions from waste treatment (ie. capture and burn methane):

• Change energy sources to a lower greenhouse gas emission fuel (ie. replace electric heaters with gas, or oil furnaces with gas):

• Install co-generation at the site:

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• Minimise waste generated or improve waste treatment systems:

• Use renewable energy sources (ie solar hot water, photovoltaics):

• Change organisational culture to improve accountability on energy, greenhouse or waste issues:

• Implement training or awareness programs on energy, greenhouse or waste issues:

• Enhance carbon dioxide sinks:

For any initiatives outlined above, provide further information as to the expected start and completion date and expected savings (in terms of energy, reduction in waste etc.). For projects that are already underway, indicate when they commenced, and their percentage completion. Also project costs associated with projects.

Is the site working with a third party to help develop initiatives (ie SEA, SEDA etc)? If so, outline which initiatives are being undertaken jointly.

Has the site ever been benchmarked against similar firms? If so, provide details.

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Does the site exchange ideas with between other firms on eco efficiency. If so, provide details.

Do personnel have any initiatives that they would like to see implemented that would improve energy efficiency and reduce greenhouse gas emissions, but which do not meet project justification criteria?

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Appendix B

GBA Workshop—agenda and attendees

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GBA Supply Chain Workshop—Agenda and Attendees

Workshop Agenda

10:00 10 min Dr John Cumming (Facilitator) Welcome and introduction Introduce suppliers and locations

10 min Eddie Wilzcek (SA EPA) Aims and objectives of Greener Business Alliance project 10 min Eddie Wilzcek and Cecil Eco-efficiency principles Camilleri (Yalumba) Greenhouse Challenge

National Packaging Covenant

10 min Barbara Anderson (Smartlink) Smartlink’s role in GBA

11:00 20 min Adrian Webber / Lawrence Lum Consultant’s role in GBA (GHD/Egis Consulting) Perspectives of reactions to project

Summary of findings from initial reviews

10 min Ray White (White Refrigeration) Efficient refrigeration in the wine industry

10 min Dr John Cumming Discussion of supply chain and potential efficiencies Discuss potential ‘syndicates’ or smaller working groups for supply chain

efficiencies

1:00 15 min Dr John Cumming Supply Chain workshop—why?

Importance of supply chain—what’s in it for me? Triple bottom line reporting—collaboration to compete case studies

30 min Dr John Cumming / Suppliers Discussion—Eco-efficiency ideas from the floor Has anyone any potential efficiencies that they have identified for their own company or others in the Alliance?

1 hour WORKSHOP Separate into ‘syndicates’ and workshop outcomes

3:45 15 min Dr John Cumming Summary of outcomes

4:00 — Dr John Cumming Close

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Greener Business Alliance Project—Workshop 12 June, 2002—Attendees List

Name Organisation Email or Postal Address

WORKSHOP FACILITATORS AND INFORMATION PROVIDERS

Barbara Anderson SmartLink [email protected]

Cecil Camilleri The Yalumba Wine Company [email protected]

Donna Edwards Centre for Innovation, Business & Manufacturing [email protected]

Eddie Wilczek Environment Protection Agency [email protected]

Helen Lewis Centre for Design at RMIT [email protected]

John Cumming Infotech Research [email protected]

Lawrence Lum GHD (previously, Egis) [email protected]

Paul Lindon GHD (previously, Egis) [email protected]

Tim Grant Centre for Design at RMIT [email protected]

SUPPLIER / MENTOR PARTICIPANTS

Bob Long Jeffries Garden Soils [email protected]

Brenton Gallasch Anthony Smith Australasia Pty Ltd [email protected]

Chris Miller Wirra Wirra Winery [email protected]

Chris Schutze Collotype Labels Pty Ltd [email protected]

Chris van der Winjgarrt Scholle Industries Pty Ltd [email protected]

Geoff Linton The Yalumba Wine Company [email protected]

George Girgolas Grapegrower P.O. Box 678, Virginia, S.A. 5120.

Ken Klinger Tarac Technologies Pty Ltd [email protected]

Mich Koch Grapegrower PO Box 43, Angaston, South Australia 5353.

Ray White White Refrigeration Pty Ltd [email protected]

APOLOGY

Gary Clarke JBM Juvenal Australia Pty Ltd [email protected]

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Appendix C

EPA Information—Eco-efficiency and the Private Sector

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Eco-efficiency and the private sector —contributions and benefits

Re-issued March 2004

EPA 335/04—This document replaces the EPA Information Sheet No. 5, ‘Eco-Efficiency’ (November 2000). It explains what eco-efficiency is and the growing need for businesses and industry to support ecological sustainable development, as well as providing information on how to become an eco-efficient business.

Introduction Eco-efficiency is the path South Australian business and industry can take towards the goal of ecologically sustainable development, which is one of the greatest challenges facing Australia's governments, business, industry and the community.

Ecologically sustainable development—or ESD—aims to meet the needs of Australians today while conserving our natural resources for the benefit of future generations.

Eco-efficiency goes beyond simply preventing pollution and limiting the use of resources in manufacturing and production—it provides for the competitive needs of business by enabling increases in the value of goods and services.

This information sheet shows how Australian businesses, already familiar with such concepts as waste minimisation, cleaner production and pollution prevention, can continue to contribute to environmental improvement while also building up their own economic viability.

Business support for ESD It is recognised internationally that the private sector must play a leading role in working towards ESD because their day-to-day decisions have significant impacts on the environment.

For business and industry, eco-efficiency means ‘doing more with less’—increasing their efficiency in using resources and in reducing waste and pollution to lead to lower business costs as well as fewer adverse effects on the environment.

The concept of eco-efficiency is supported by the World Business Council for Sustainable Development (WBCSD), a group active globally and supported by the Business Council of Australia and the Organisation for Economic Cooperation and Development (OECD).

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Eco-efficiency and the Private Sector: contributions and benefits—March 2004

page 2

Eco-efficiency is strongly supported by the business community in Australia because it does not focus exclusively on environmental outcomes. Instead, it challenges the belief that economic objectives and environmental concerns are in conflict and recognises the simultaneous and complementary benefits of combining environmental and economic objectives.

Eco-efficiency means producing goods and services using less energy and fewer raw materials, resulting in less waste, less pollution and less cost. An eco-efficient business is also one that has either eliminated an operational waste by-product, or found a way to turn that by-product into an income earner.

The WBCSD has outlined the following actions to implement eco-efficiency:

�� reducing the material intensity of goods and services—using less to make a product or deliver a service

�� reducing the energy intensity of goods and services—using less energy

�� reducing toxic emissions

�� enhancing the recycling possibilities and options of material used

�� maximising the use of renewable and recycled resources

�� extending product durability—making things last longer

�� increasing the service intensity of goods and services—more use out a product or service

This information sheet provides 10 valuable eco-efficiency management tools that can help business and industry to maximise efficiency, product quality and profit through improved environmental management.

Cleaner production Cleaner production eliminates or reduces pollution at the earliest point in the industrial process and uses non-technical as well as technical solutions. Cleaner production can be achieved by employing such means as:

�� using different materials

�� modifying processes

�� optimising the use of energy and raw materials

�� on-site recovery and recycling.

The Environment Protection Authority (EPA) has developed over 20 ‘Cleaner Production Case Studies’ that provide examples from a diverse range of industries on how cleaner production techniques have already resulted in significant environmental and economic benefits for the business in South Australia.

Businesses can access these on the EPA web site: www.epa.sa.gov.au/pub.html

Environmental Management Systems Environmental Management Systems (EMS) provide businesses with structured ways of managing areas of their operations that have risks for the environment.

To implement an EMS, a business must provide detailed information to the EPA on its operational procedures as well as fulfill requirements on auditing, communication, training, review, emergency planning, and provide a clear designation of responsibilities for actions.

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Eco-efficiency and the Private Sector: contributions and benefits—March 2004

page 3

EMS give business and industry a means of setting objectives and targets to make continuous improvements into the future. They can apply for certification to standards such as ISO 14001 for their EMS.

Environmental auditing There are several different types of environmental audit that can be conducted; however, in most situations the overriding aim is to identify:

�� if the business complies with the relevant legislation

�� if there are any significant environmental risks associated with the operations that may represent a liability to the business

�� what needs to be done to remedy these situations.

Environmental audits can be conducted by internal or external auditors (or a combination) as single events or regular programs.

Public environmental reporting Public environmental reporting is the public disclosure by a business of information about its environmental performance. This includes its impacts on the environment, its performance in managing those impacts and its contribution to ESD. Some benefits to be considered are:

�� marketing opportunities

�� increased confidence of investors, insurers and financial institutions

�� improved relationships with regulators and non-government organisations

�� greater control of environmental disclosure

�� heightened staff commitment.

Design for environment Design for environment is an approach to reduce the environmental impacts of products by introducing improvements at the design stage. Typically, design improvements minimise the quantity and toxicity of materials used in a product, or provide for easy dismantling, reuse and/or recycling at the end of a product’s useful life.

The environmental performance of products is increasingly important as customer preferences for ‘green’ goods continue to grow. A product that has less impact on the environment is often better in terms of quality and marketability.

Product stewardship Product stewardship is the principle of shared responsibility throughout the life of a product for its environmental impact. It covers raw material supply, manufacture, distribution, retail, through to ultimate disposal. This principle is being increasingly adopted around the world in the form of regulations, covenants, ordinances and other mechanisms on particular product categories.

An example in Australia is the National Packaging Covenant and the supporting National Environment Protection Measure (NEPM) on Used Packaging Materials. These initiatives are designed to ensure that all parties in the packaging supply chain help to reduce the environmental impact of packaging from used domestic products.

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Eco-efficiency and the Private Sector: contributions and benefits—March 2004

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Life cycle assessment Life cycle assessment (LCA) is a tool for evaluating the total environmental impacts associated with a product throughout its life cycle, from the extraction of raw materials through processing, transport, use and disposal.

LCA can help businesses to understand the environmental aspects of their products better, and to identify the most effective improvements that can be achieved in the use of resources.

Supply chain management Supply chain management, or ‘greening the supply chain’ as it is sometimes known, involves improving the processes and relationships that support the movement of goods and services along a supply chain.

The benefits to business can include better communication, more efficient delivery and distribution, quicker market response, and reduced costs. Some businesses are also using their influence as major customers in the supply chain to improve the environmental performance of their suppliers by requiring that they become certified to a recognised EMS.

Environmental accounting Traditional accounting practices overlook the environmental costs of operating a business. Environmental accounting incorporates in a company’s financial reports such costs as waste treatment and disposal, a poor environmental reputation, and environmental risk insurance premiums.

Ecological footprint The ‘ecological footprint’ concept has been designed to estimate the impact of human activities on ecological systems. The ecological footprint of a business is the total amount of ecologically productive land and water occupied exclusively to produce all the resources consumed and to assimilate all the wastes generated by that business, using prevailing technology.

Suggested reading Some suggested further reading related to business and the environment are:

�� Paul Hawken 1993, The Ecology of Commerce, Weidenfield & Nicholson, UK.

�� Weizsacker, E, Lovins, A, Lovins, L 1996, Factor Four, Earthscan Publications, UK.

�� Schmidheing, S, Zorraquin, FJL 1998, Financing Change: The Financial Community, Eco-Efficiency and Sustainable Development, MIT Press, USA.

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FURTHER INFORMATION

Legislation Legislation may be viewed on the Internet at: www.parliament.sa.gov.au/leg/5_legislation.shtm

Copies of legislation are available for purchase from:

Government Information Centre Lands Title Office, 101 Grenfell Street Adelaide SA 5000

Telephone: Internet:

13 23 24 shop.service.sa.gov.au

For general information please contact: Environment Protection Authority GPO Box 2607 Adelaide SA 5001 E-mail: [email protected]

Telephone: Facsimile: Freecall (country): Internet:

(08) 8204 2004 (08) 8204 9393 1800 623 445 www.epa.sa.gov.au

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Appendix D

Barossa Valley 2025—Sustaining the Success (brochure)

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Dispelling the Myths, Understanding the Present and Crafting the Future

Sustaining Success emphasises a continuous improvement model. Within this context, the project outcomes will include:

1. New methodology for assessment, communication and promotion of environmental performance (environmental stewardship) in the wine industry.

2. Improved enterprise-, industry-, and catchment-based environmental planning based on an improved understanding of the existing landscape condition and the environmental expectations of local stakeholders.

3. Identify models of viticultural land management that maintain the adaptive capacity of the production landscape, enhance quality of life, and protect the biological and cultural diversity in the Barossa.

4. Achieve community acceptance of the wine industry in an environmental context.

5. Benchmark production and management to ensure good/best practice.

6. Adoption of environmentally sustainable policies and practices.

7. Ensure that state and local government policies, infrastructure and regional development strategies are supportive of the wine industry.

8. Sustainable interaction with the environment.

9. Demonstrate mutually beneficial relationships with industry stakeholders. And

10. Demonstrate environmental stewardship.

Role of Post-Doctoral Fellow

• Implement data collection in conjunction with District Councils, Catchment Board and Dr. Camilleri.

• Select pool of potential indicators and construct indicator selection package with Dr. Wallis and Dr. O’Toole.

• Complete analysis of data, ensure data validity, and that it is in a suitable format for computer analysis and model input.

• Determine ecological footprints.

• Digitise data and preparation of images.

• Assess outcomes of Strategy 2025 and Sustaining Success by surveys, interviews, workshops, and personal communication, in conjunction with Dr. Wallis, Dr. O’Toole, & Dr. Camilleri.

• Undertake the SEAs and assist in communication of results to stakeholders.

The Post-Doctoral Fellow will be assisted by a research assistant.

Current Stakeholders & Contributions

Organisation

Cash $K

3 Yrs

In-kind

$K

3 Yrs

Deakin University 0 477 CSIRO Sustainable Ecosystems 0 44 Yalumba Wine Company 15 195 Northern Adelaide & Barossa Catchment Water Management Board

25 15

Barossa Light Development Corporation

15 15

Barossa Regional Council 0 5 Light Regional Council 5 Department of Land, Water and Biodiversity Conservation

0 15

S.A. Wine & Brandy 6 Environmental Protection Authority

0 15

Barossa Winemakers Association 15+ 3 Fuller Communications 6 Australian Research Council (Subject to Approval)

321 0

Potential Partnership with the Canadian SDRI

Negotiations are currently being held with the Sustainable Development Research Institute of the University of British Columbia to identify appropriate avenues of co-operation. The principal focus of SDRI is to

• Articulate ecologically and socio-economically desirable futures, and

• Determine the means to make these futures happen.

Further Information

Cecil Camilleri The Yalumba Wine Company

08 – 8561 3416 [email protected]

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A Collaborative Programme of Deakin University, CSIRO Sustainable Ecosystems, the

South Australian Wine Industry, State and Local Government, Natural Resource Managers and the

Community of the Barossa

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Barossa Dreaming

The Barossa Region of South Australia has earned a national, and arguably, an international profile as an icon cultural landscape. This notoriety is principally based on the aesthetic appeal of the landscape and the reputation of the Barossa as a producer of fine wines. These two properties have a symbiotic relationship and have combined to form what may be called a winescape. This is composed of historic towns and wineries in an almost idyllic matrix of vineyards, cropping land and Eucalyptus grazing parkland.

In the mid-1990’s the Australian Wine Industry embarked on a ‘progressive’ growth path, which was officially heralded by the release of its development document called Strategy 2025. The aim of the strategy was to capture a proportion of the world wine market estimated at 4.5 billion dollars by 2025. This ambitious plan was to be achieved through the exploitation of Australia's natural resources and natural appeal as a clean-&-green country. Strategy 2025 spawned other strategies for Australia's wine industry including,

• Embrace the Challenge, the wine tourism strategic business plan; and

• Sustaining Success, the wine industry's environment strategy.

Grape growing, wine production and wine tourism are a major contributor to the economic well-being of the Barossa. There is however some community concern that the growth and continuing development of the Barossa's wine industry is challenging the aesthetics and ecological functionality of the landscape and the associated catchment. Some would argue that this apprehension is merely a product of anti-growth sentiment based on misinformation and misguided perceptions. Nevertheless, the concern for the well-being of the Barossa's cultural and natural environment has been given a modicum of

credibility beyond sentimentality by recognised wine journalists (e.g., Philip White) and heritage writers (e.g., Dr. Noris Ioannou).

Duty of Care

Governance of the Barossa, a complex socio-ecological area, is essentially under the stewardship of the local community, government and associated industries. The broad scope and goals of the project are therefore to

1. Ensure that the wine industry operates within the ecological adaptive capacity of the Barossa.

2. Contribute to social adaptive capacity by involving the community and policy-makers in a strategic environmental assessment.

This approach will simultaneously address two key objectives of Sustaining Success:

1. Anticipate and satisfy community and customer expectations of environmental performance.

2. Measure and evaluate performance to demonstrate environmental stewardship.

Specific Project Objectives

Based on the key objectives of Strategy 2025 and Sustaining Success, specific project objectives are to:

1. Conduct an information gap analysis and identify what tools local managers need to supplement and complement the existing body of information in order to undertake successful strategic environmental assessments.

2. Assess the impacts of viticulture and winery operations in the past-and-future landscape of the Barossa (catchment health and capacity).

3. Assess environmental planning for the Barossa in the context of Strategy 2025, the Natural Resources Management Bill, as well as regional development and conservation plans.

4. Assess how Sustaining Success will mitigate the Wine Industry’s impact on the landscape resulting from pressures arising from wine tourism, grape growing and wine making activities.

Project Methodology

Strategy 2025 will be the subject of a strategic environmental assessment, or SEA, to ascertain its impact on the Barossa landscape. SEA is an evolving methodology that fulfils two primary roles:

1. An ex-ante evaluation procedure, which can be used to develop, assess, amend, implement, monitor and review proposed policies, strategies, plans or programmes; or

2. An ex-post evaluation procedure, which appraises the performance of existing policies, strategies, plans or programmes.

The goals of the SEA, combined with the Barossa’s unique biophysical and cultural context, will require a methodological approach consisting of elements from both geography and environmental studies. Both qualitative and quantitative data will be utilised, and the research stages may be summarised as follows:

1. Conceptual and literature review.

2. Landscape historical review and analysis.

3. Analysis of biophysical conditions and human-induced stresses pre- and post-Strategy 2025.

4. Identification of key linkages between key cultural and biophysical elements in the landscape.

Research Steering Committee

Deakin University

• Associate Professor Brad Mitchell, aquatic ecology and river/catchment management

• Dr Anne Wallis, sustainability indicators and integrated catchment management

• Dr Graeme Allinson, environmental science and land/water interactions and management

• Dr Kevin O’Toole, social research and public policy

Yalumba Wine Company

• Dr Cecil Camilleri, social-ecology and rural systems R&D

CSIRO Division of Sustainable Ecosystems

• Dr. Peter Carberry, farming systems research

• Dr. Mark Howden, terrestrial ecology

• Dr. Neil Huth, agricultural modeller

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Appendix E

The Smart Supply Chain—seminar, 18 August 2004 (brochure)

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Supply Chain & Logistics

The Smart Supply Chain Clean, Lean and Green

Supply chain management is recognised as a core activity of successful business management. The National Packaging Covenant identifies it as critical to credible product stewardship. This conference will bring together the experiences and perspectives of leading practitioners of eco-efficient supply chains … and the latest news on the National Packaging Covenant.

Program 9.15am Welcome Chair: Donna Edwards, Department of Trade and Economic

Development (DTED) 9.20am Official Opening Dr Paul Vogel, Chief Executive, Environment Protection Authority 9.30am The Green Business Alliance Project Peter Dolan, Director Pollution Avoidance, EPA 10.00am Morning Tea __________________________________________________________________ 10.30am Lean & Green Manufacturing – What’s in it for you? Donna Edwards, Manager Logistics 11.00am The Human Face of Business Networks and Alliances Dr Howard Harris, Smartlink, University of South Australia 11.30am Lean, Clean & Green Business – Why Does it Matter?

Dr Cecil Camilleri, Yalumba Wine Company 12.00pm Lunch & Wine Centre Tour __________________________________________________________________ Smart Supply Chains – Perspectives from Industry in South Australia 1.00pm Tarac Australia – Chris van der Wijngaart 1.20pm Scholle Industries – Blagica Kuzmanov 1.40pm Jeffries Garden Soils – Steven Marshall 2.00pm SA Wine Industry Association – Keith Jones

Environmental Program Manager 2.20 pm Afternoon Tea __________________________________________________________________ 3.00pm The Role of Local Government in Effective Supply Chain

Management & the National Packaging Covenant – Trevor Hockley, WasteCare SA

3.20pm The Future Role of Eco-Efficient Supply Chains in the National

Packaging Covenant - Maree Mcaskill, National Packaging Covenant Council

3.40pm Questions/Evaluation/Summary & Close 4.00pm Networking & Refreshments

Wednesday 18th August 2004

TIME 9.00am Registration 9.15am – 4.00pm Seminar

followed by networking and refreshments

VENUE National Wine Centre of Australia

Cnr Botanic & Hackney Rds, Adelaide off street meter parking available

COST $25 towards catering Sponsored by EPA, Yalumba, Department of Trade & Economic Development (DTED) and Zero Waste SA

RSVP Friday 13th August 2004 Click here to email your RSVP [email protected] or phone Donna Edwards on (08) 8303 2176

DATE

In 2001 the Environment Protection Authority entered

into a co-operative partnership with the Yalumba Wine Company and 10 of its

suppliers.

This partnership, which formed the Greener Business Alliance, demonstrated that corporate

leadership in supply chain management is the smart part to product stewardship, eco-efficiency and an improved

triple bottom line.