By Kendall Benton-Collins, Strategic Communications Manager at GECA

The COVID-19 pandemic has highlighted the very urgent need for us to work together as an international community to address global environmental and social problems. At GECA, we think the stage is set for a new era that celebrates the need for and the benefits of collaboration and transparency while embracing circular economy thinking.

The COVID crisis has revealed that many global supply chains were not as robust and future-proofed as organisations believed they were. So, investing in smarter, more robust and more diverse supply chains makes sense for better social, economic and environmental outcomes. Increasingly, organisations and governments are looking to circular economy principles to create a more positive future.

Circular economy thinking is growing in popularity and depth. There are many different aspects that I believe will grow significantly in 2021 and beyond. The following trends are not exhaustive but reflect the wholistic and far-reaching nature of the circular economy as a blueprint for achieving sustainability targets.

Firstly, we will continue to see a shift toward using the circular economy as a driver of climate action. According to the Ellen MacArthur Foundation, it offers a systematic response to the climate crisis by reducing emissions and increasing resilience to its effects. On top of the vital worldwide efforts to transition to renewable energy and increase energy efficiency, we will also need to address the remaining 45% of greenhouse gas emissions from producing the cars, building materials, food, and other products we use every day.

Recent research has demonstrated that applying circular economy strategies in the five critical areas of cement, aluminium, steel, plastics, and food can eliminate almost half of the remaining emissions from the production of goods – 9.3 billion tonnes of CO2e in 2050. This is equivalent to cutting current emissions from all transport to zero.

Increasingly we are going to see the uptake of circular economy solutions that go beyond an isolated waste reduction strategy. Into the future, we will see a greater emphasis on creating systems that embrace regenerating, maintaining, repairing, reusing, refurbishing, and recycling. Rather than only dealing with a product at the end of its life in the most sustainable way possible, designers have the power to create items with circularity built-in. According to GECA’s CEO, Michelle Thomas, “We are moving beyond a benchmark of least harm and toward one of adding more good by designing to replenish our planet rather than merely replacing resources we’ve used.”

Collaboration is essential if we are going to move to a circular and inclusive economy. Creating a more sustainable and prosperous future requires us to invest in genuinely symbiotic connections throughout our supply chains and beyond. COVID-19 has shown that isolated supply chains are vulnerable to risks. By working together, we can create significant positive change. For example, research by PEW demonstrates that a comprehensive circular economy approach for the plastics sector has the potential to reduce the annual global volume of plastics entering our oceans by over 80%, generate savings of USD 200 billion per year, reduce greenhouse gas (GHG) emissions by 25%, and create 700,000 net additional jobs by 2040.

According to the Ellen MacArthur Foundation, “strong public-private collaboration will be essential in the shaping of a post-pandemic future…while also improving society’s resilience to future shocks. Such a transition, enabled through a circular economy, will, for example, require collaboration between governments, the investment community, industries, companies, academia, and civic organisations.”

Trust and transparency are integral factors in creating lasting behaviour change. The best marketing an organisation can do is to prove their commitment to positive social and environmental impacts. Greenwashing has led to increased consumer scepticism and doubt whenever an organisation makes sustainability claims, including those related to a circular economy, about their company, products or services. This can lead to a loss of legitimacy and reputation in the marketplace. GECA’s ecolabel and Claims Authentication service give consumers, including suppliers and procurement teams, confidence that products and services have been through an independent third-party assessment.

All GECA ecolabel standards include comprehensive sustainability criteria relating to the environment, human health, social issues, and fit for purpose. Our standards also include criteria to ensure that products:

• are easily recyclable in Australia
• have replaceable parts wherever possible to extend their useful life
• are designed for separability or disassembly; and
• that manufacturers provide Product Stewardship services.

Our two standards particularly relevant to the circular economy, are our Recycled Products and Waste Collection Services standards.

Our Claims Authentication service can provide independent third-party assurance on circular economy claims relating to reusability, recycled content, recyclability, design for disassembly and compostability.

Circular economy thinking impacts the entire structure we currently operate in from design, manufacturing and consumer demand to broader social and environmental issues. The circular economy is a transformational framework that forces organisations and individuals to rethink how they work and live in this global community and on this planet. Combined with Science-Based Targets and the Sustainable Development Goals, we have a formidable blueprint for good.

Stay tuned as we will soon be releasing GECA Solutions for a Circular Economy – a resource for manufacturers, procurement, and sustainability stakeholders.

By Jess Mutton (Business Development & Project Manager) and Sahar Farzadnia (Standards Officer) at GECA

Move out of the way; responsible chemicals management has quite a bit to say this year!

There is no denying that there is a growing demand for businesses, industries, governments, and consumers to commit to various sustainable consumption and production matters. In particular, there has been a spotlight on mitigating climate change with embodied carbon and energy efficiency practices, further improving resource efficiency via a circular economy, and improving workers’ rights by eradicating modern slavery.

Yet, as many of us know, it does not stop there. In GECA’s conversations with government and various stakeholders, one sustainability area that is becoming increasingly important is the responsible use of industrial chemicals in manufacturing. This is a space to watch throughout 2021 with three key reasons why it’s a timely opportunity for your supply chains to act now.

1. Demand for better manufacturing practices is increasing. The rise of circular economy thinking means restricting the use of certain chemicals that impact the longevity, recyclability or recovery of materials, such as plastics and synthetic polymers.  Also, industrial chemical emissions can contribute to climate change; and damaging substances can threaten the health of our biodiversity and ecosystems in which we heavily rely on to live, breathe, and consume.
2.  In 2015, Australian environment ministers agreed to establish a national standard to manage the environmental risks of industrial chemicals and a draft National Standard was developed. The Industrial Chemicals Environment Management (Register) Bill (ICEMR) 2020 was then introduced to the Australian Parliament on 3 December 2020. Watch this space!
3. Coming up in July 2021, the Fifth Session of the International Conference on Chemicals Management (ICCM5) will take place that includes updates from the periodic reviews of the Strategic Approach to International Chemicals Management (SAICM), which is a policy framework to promote chemical safety around the world.

But what’s all the fuss about? The use of chemicals in manufacturing can lead to both positive and negative outcomes. Positive outcomes include control of disease or agricultural productivity. However, certain substances or compound classes, including carcinogens, have been identified as particularly harmful to the environment and our health.

Manufacturing processes can result in significant amounts of chemical pollutants, including per- and poly- fluoroalkyl substances (PFAS), dioxins, polychlorinated biphenyls (PCBs), nitrogen oxides (NOx), sulphur oxides (SOx), phthalates, alkylphenolethoxylates and chlorophenols. For example, PFAS, including its two subclasses, PFOA and PFOS, are seen as contaminants to aquatic ecosystems because they do not break down naturally in the environment. When they enter waterways, they can accumulate in the bodies of aquatic organisms and even in humans. There is evidence of adverse health effects related to the presences of PFAS in the body.

The use of biocides and preservatives, such as methylisothiazolinones in cosmetic products has been associated with skin sensitisation and allergic reaction. Some biocides can even enhance bacteria’s ability to resist antibiotics and pose a long-term threat to wildlife and human health.

High levels of nitrogen dioxide are harmful to vegetation – damaging foliage, decreasing growth, or reducing crop yields. And the use of toxic heavy metals and their compounds such as mercury, arsenic, selenium, cobalt, tin, and antimony may be detrimental to the health of manufacturing staff and users of the finished product.

The circularity and carbon footprint of products are also of great concern when it comes to industrial chemicals. The petrochemical industry uses fossil fuels both as raw materials, and to provide the energy to upgrade low-value chemicals into higher-value ones, for example, different types of plastics and polymers. This leads to the production of substantial greenhouse gas (GHG) emissions.

It is also notable that many substances of concern, or their compounds, are widely used in a range of consumer products. For instance, PFAS can be found in food packaging, cosmetic products, stain-proof rugs and water-proof textiles, paints and varnishes, coatings and rubber products. We must understand how these chemicals are used across the industry and what their level of impact is.

So, what now? Australian industries must continually engage in the global dialogue on sustainability trends, and with the work the Australian Government is doing to strengthen chemicals management laws, regulation, controls, and standards. These will also inform GECA’s standards review process. Australian businesses are then well-informed, supported, and remain relevant and competitive in a globally consumer-driven market.

At GECA, we have over 1000 products and services certified against our standards, which consider better chemicals management processes to protect human health and the environment, alongside the delivery of high-quality products and services. And while we are pleased to see supply chains outside of our certification scheme making positive change on targeted sustainability matters, we are looking forward to seeing the responsible use of chemicals become a larger part of the sustainability discussions, so that a holistic approach to sustainable production and consumption is achieved.

If you are interested in learning more about responsible chemicals management or have strong skills in this area and would like to join GECA’s Technical Advisory Groups for the development of our standards, please contact us at [email protected].

By Deepali Ghadge (Standards & Technical Officer) and Kendall Benton-Collins (Strategic Communications Manager) at GECA

COVID-19 has further highlighted how proper cleaning and disinfecting makes a difference in stopping the spread of infection. Along with an increased desire for transparency and accountability in service offerings, more and more organisations will be looking to procure independently assessed cleaning services to ensure their staff and customers’ wellbeing.

The World Health Organisation (WHO), Safe Work Australia, the Australian Government Department of Health and all state governments have provided various cleaning guides relating to COVID-19. Each of these guides provides necessary instructions for the cleaning services team’s work health and safety. Wearing gloves, surgical masks, eye protection or face shields and use of sanitisers or soap wash is highly essential.

Unfortunately, even with the introduction of a vaccine, COVID-19 and other harmful pathogens will continue to impact our supply chains. Improper cleaning techniques and supplies can also bring cleaning staff into contact with harmful chemicals. Now more than ever, organisations are looking for cleaning services they can trust.

A challenge we face moving forward is the overconsumption of and the tendency to use non-eco-friendly hygiene products to prevent virus spread. Another issue is managing the increase in waste, particularly for single-use items such as masks and gloves.

Procuring sustainable cleaning products is a significant step for the health of both people and planet, but it’s not the whole story. For a truly green clean, you need to consider not only what products are being used, but also how they are being used.

“Facilities management professionals and cleaning product manufacturers are very aware of the benefits of green cleaning programs. Unfortunately, the products that they might specify aren’t being used by cleaning staff in a lot of cases,” says Paula Clasby, Head of Engagement & Marketing for GECA. “Often it’s simply a case of a cleaning staff member not understanding the importance of green cleaning products or perceiving them to perhaps be inferior to the conventional products they’ve been using for years already.”

“We’ve heard stories of staff members adding bleach to cleaning units that are designed to use only water or insisting on using bathroom cleaners with a strong fragrance because that’s perceived as an indicator of an effective clean. So, it then becomes a matter of making sure that all cleaning staff understand what they’re using and how it will benefit them.”

When using conventional cleaning products, cleaning staff can potentially be exposed to high levels of various chemicals that range from mild irritants to known carcinogens. It’s in their own best interests to switch to cleaning solutions that are free from such substances. Less exposure to harmful substances helps lower the risks for cleaning staff and building occupants. Fewer chemicals to store and dispose of safely also make regulation and compliance easier for management professionals.

The pandemic has also made it abundantly clear that your cleaning service is not somewhere you should be cutting corners. Therefore, facilities management and procurement professionals face a dual challenge: procuring genuinely sustainable cleaning products and ensuring that staff effectively uses those products.

Standards and certification provide an effective solution to both issues. Procurers can check for independent, third-party certification on products to show that they conform to high standards for environmental and health impacts. Similarly, facilities management professionals can rely on certification when choosing a cleaning services provider, knowing that their processes and products have been independently assessed. GECA provides an example of such certification, with standards available for certifying cleaning products, as well as for certifying cleaning service providers themselves.

Through the Cleaning Services standard, for example, cleaning service providers must implement guidelines on:

• Storage and use of chemicals;
• Procurement of environmentally preferable cleaning products;
• Equipment inspection and maintenance;
• Communication protocols;
• Training requirements;
• Quality assurance procedures;
• Laundering of reusable items and

Under the GECA standard, cleaning service providers must have procedures in place, and provide regular training for appropriate and effective cleaning and for dealing with hazards as they may arise on a worksite. They also should minimise the use of disposable items such as cloths used during cleaning and maximise the reuse and recycling of items during their operation. Certified providers must also adhere to guidelines for reducing the amount of waste produced and water used. When using a GECA certified cleaning service provider, you know that staff will not only be using sustainable products, but they have also been trained in the correct operation of equipment and chemical handling.

What shifts in Sustainable Finance will we see in 2021?

Ricky Bridge, Group General Manager Environment, Sustainability and Reporting at Downer Group

Capital market issuers are placing greater emphasis on sustainable finance, despite intense challenges as a result of the current unprecedented global pandemic.

2019 was a record year for sustainable finance, with more sustainable debt issued globally than ever before. The total raised was US$465bn globally, up 78% from US$261.4bn in 2018, according to Bloomberg data.

Although the market is still in its infancy, the key instruments consist of Green Loans/Bonds” and “Sustainability-Link Loans/Bonds.  Green Loans/Bonds use the proceeds of such instruments to finance green projects or related capital expenditure (e.g. renewable power generation).  Sustainability Linked Loans are a way corporates can link their financial performance to sustainability outcomes and positive social impact.

There have been 4 major Sustainability Linked Loans in Australia to date that consist of Gold Coast Airport, AGL, Sydney Airport,  and the most recent being Downer who finalised a $1.4 billion syndicated sustainability linked loan facility December 2020. Underpinned by KPI metrics relating to Downer’s greenhouse gas emissions reductions and social sustainability (being cultural awareness and mental health and wellbeing training of Downer employees)

Typically, Sustainable Finance has been linked to GHG emission reduction goals, however we’ll see a shift towards social sustainability metric’s becoming more prevalent as organisations can leverage social sustainability benefits they provide in order to access lower interest finance.

The future looks bright and there is still plenty of room for growth as more and more corporates look at embedding their financing and sustainability strategies into their business models.

In addition, Sustainable infrastructure and smart cities are key focus areas for governments, corporates and investors alike and sustainability through rating tools such as GBCA and ISCA are now being incorporated as a core design feature into almost all new projects. I think we will see these tools play an important role in Sustainable finance moving forward.

–Content provided by Downer–

Media/ASX and NZX Release

3 December 2020

Downer EDI Limited (Downer) announced today it had successfully completed the refinancing of the Group’s debt platform with the establishment of a new $1.4 billion syndicated sustainability linked loan facility.

The new committed facility comprises three, four, five and six year tranches, and has been structured to enhance the debt maturity profile, reduce average borrowing costs and provide flexibility as the Group continues its program of divesting non-core businesses.

The sustainability aspect of the new facility is underpinned by KPI metrics relating to Downer’s greenhouse gas emissions reductions and social sustainability (being cultural awareness and mental health and wellbeing training of Downer employees) that, if realised, will lead to a reduction in borrowing costs under the facility. These sustainability KPIs are unique to Downer and reflect the Group’s continued commitment to its sustainability performance and investment in its people.

The Chief Financial Officer of Downer, Michael Ferguson, said the refinancing was the final step in the consolidation of the Group’s debt platforms subsequent to achieving 100% ownership of Spotless and provided an ideal opportunity to align the Group’s financing and sustainability strategies.

“The refinancing of Spotless debt is expected to reduce total borrowing costs given Downer’s financial strength and investment grade credit rating,” Mr Ferguson said. “The sustainability features of the new facility are also a welcome validation of the Group’s ongoing commitment to a market leading sustainability strategy. As one of the largest employers in Australia and New Zealand, we are pleased to have the ultimate loan facility outcomes linked to the development of our workforce and our decarbonisation commitments.”

Mr Ferguson thanked the bank group for their support of the new facility which received strong backing from a range of domestic and international financiers, comprising existing and new lenders, and was significantly oversubscribed.

The facilities were jointly arranged by Australia and New Zealand Banking Group Limited, BNP Paribas, HSBC, Mizuho Bank Ltd and Sumitomo Mitsui Banking Corporation with BNP Paribas and HSBC acting as Joint Sustainability Co-ordinators.

Downer Group is rated BBB (Stable) by Fitch Ratings.

Authorised for release by Downer’s Chief Financial Officer, Michael Ferguson.

For further information please contact:

Michael Sharp, Group Head of Corporate Affairs and Investor Relations +61 439 470 145

About Downer

Downer is the leading provider of integrated services in Australia and New Zealand and customers are at the heart of everything it does. It exists to create and sustain the modern environment and its promise is to work closely with its customers to help them succeed, using world-leading insights and solutions to design, build and sustain assets, infrastructure and facilities. For more information visit downergroup.com.

–Content provided by Downer–

Downer understands that the sustainability performance of their organisation is key to their future success. Downer proactively participate in investor surveys and use these insights to inform their understanding and improve sustainability performance.

Over the past 12 months, Downer has improved its ratings in a number of important ESG analyst assessments, including the Dow Jones Sustainability Indices (DJSI) and Carbon Disclosure Project (CDP). These rating tools are used by institutional investors to inform investment decisions based on a company’s sustainability performance, whereby, the higher the sustainability performance the better the medium to long term returns.

Dow Jones Sustainability Indices (DJSI) SAM Corporate Sustainability Assessment (CSA) is an annual evaluation of companies’ sustainability practices.

In FY19, Downer’s performance ranked in the top 62 percentile in the world. In FY20, they improved significantly to sit in the top 82 percentile according to the DJSI assessment and are now recognised as a marked leader in aspects of social and environmental reporting.

Downer also joins 9,600 companies around the world demonstrating commitment to environmental transparency by disclosing climate change related performance through CDP, a global non-profit that runs one of the world’s leading environment disclosure platform. CDP drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. Over 9,600 companies with over 50 per cent of global market capitalisation disclosed environmental data through CDP in 2020. This is in addition to the over 920 cities, states and regions who disclosed in 2019, making CDP’s platform one of the richest sources of global information on how companies and governments are driving environmental change.

In FY20, Downer achieved a grading of B for Climate Change which improved from a C in FY19, ahead of the global average, C. They also achieved a grading of B for Supplier Engagement, which was also ahead of the global average, C.

Read more about Downer’s sustainability performance in their 2020 Sustainability Report.

—Content supplied by DuluxGroup —

This year DuluxGroup has taken a significant step in understanding key sources of carbon emissions, by completing a business-wide carbon footprint.

The carbon footprint is a measure of the total greenhouse gas emissions caused by our business activities through use of fuel and electricity and, indirectly, via our supply chain and through distribution and use of our products.

The work shows that the footprint for DuluxGroup businesses totalled 1.16 million tonnes for the 2019 calendar year. Of this over half (56%) is associated with embodied carbon in raw materials and purchased finished goods, with a further 4% connected to packaging. Emissions associated with our own business operations (site energy, fleet, services & equipment, capital projects, employee commuting and travel) represent 28% of the total footprint while product distribution and consumer use and end of life total 9% and 7% respectively.

Figure 1: 2019 Carbon Sources: Over half of DuluxGroup’s carbon footprint is associated with purchased raw materials and finished goods.

Preparing the carbon footprint is the first step in identifying carbon-related opportunities and risks throughout our supply chain. It will help us identify practical and material ways to be more efficient, reduce resources and manage our environmental footprint. Additionally, understanding the most carbon intensive inputs to our business will enable us to identify and address supply risks, including the potential for future price escalation as countries introduce policies to meet globally agreed carbon targets. 

www.duluxgroup.com.au

The plan, Planet Positive: Waste & Materials, sees Mirvac move away from the traditional ‘take, make, use and dispose’ model to one which considers the lifecycle of the materials from the outset, and implements strategies to help avoid, reduce, reuse, recycle and regenerate.

Mirvac’s Group General Manager, Sustainability, Sarah Clarke, commented, “Waste imposes a significant burden on the environment, and our planet can’t sustain it. It’s clear that we need to find a solution and think carefully about how we extract, use and reuse materials.

“The movement towards a circular economy makes sense. The built environment is a big contributor of global materials extraction and waste, and we see this as another opportunity to play our part and be a force for good. We can do this by using our purchasing power to buy products that are less harmful to the environment, utilising design and construction techniques that help us minimise our waste, and continuing to find ways to enhance waste outcomes at our assets.’

Download the Plan or for more visit here.

Reposted with permission from Mirvac.

School Partner, the Green Building Council of Australia, has unveiled a dynamic new brand. Read the media release.

Downer is committed to having a positive impact on every community they operate in.

Downer’s partnership with Logan City Council (LCC) as part of the Water Infrastructure Program Alliance includes an initial five-year contract to plan, design and deliver water and wastewater infrastructure. Downer believes it is a fantastic opportunity to provide a positive legacy for the local community and environment. And, while the infrastructure that is being built will leave a lasting legacy, their project teams are constantly looking for opportunities to personally make a difference in the local community.

The local initiative the Downer project team has got behind is Brekky Club, a volunteer program that serves up breakfast to students at a local high school.

Caption: Project Delivery Manager, Matt Thomson, volunteers at Brekky Club.

Downer team members are volunteering on Friday mornings, serving up food to students who may not always get breakfast at home. The chance to have something to eat and a quick chat can make all the difference to some of the students, making it a truly rewarding experience for the volunteers.

A typical Brekky Club session, which is run by a local church and includes donations from Foodbank and our project team, adds up to:

• 40 loaves of bread
• 35 two-litre bottles of milk
• 3kg of Nutella
• Four large jars of cream cheese
• Several jars of honey and jam
• Cereal, fresh fruit, yoghurt, muesli bars and milo.

Downer’s involvement in Brekky Club is likely to extend to another school in Logan.

“To support the Brekky Club we have donated funds to purchase a container unit for storing catering equipment and food supplies,” Downer’s General Manager – Water Services North, Chris Yeats, said. “This will enable the initiative to extend its services at another school. It’s important for our people to be a part of our efforts in the community. Well done to all of our volunteers.”

If you would like to help the Brekky Club by donating cash or food donations, please email [email protected]

Content provided by the Downer Group.

…from authorities and local wildlife

Downer is partnering with Logan City Council (LCC) in the Logan Water Infrastructure Program Alliance to plan, design and deliver water and wastewater infrastructure for the Logan region in south-east Queensland.

The program includes the construction of a wastewater treatment plant (WWTP) in Logan, which showcases how councils can meet community expectations and deliver essential services that also protect the environment.

The Department of Environment and Science (DES) granted LCC an environmental authority to lawfully operate the WWTP which will initially have capacity to service 20,000 people. The WWTP will also include constructed wetlands and riparian restoration areas (vegetation corridors along streams and rivers). Healthy riparian ecosystems will help to improve the water quality that is released back into the Logan River.

The site, named the Cedar Grove Environment Centre, will include community facilities, a Landcare nursery, a solar farm and 34 hectares of biodiversity offsets.

And it appears that the DES aren’t the only ones who approve of the new centre. With the wetlands starting to grow, native birds and frogs are starting to call the new environmentally sustainable WWTP home. So far, more than 50,000 native trees and shrubs have been planted. This includes 34 hectares (37,000 plants) to offset vegetation removal by developers elsewhere in Logan.

So, who maintains all these trees and shrubs? Recently the Cedar Grove project team and local businesses presented the Belong trainee group with $11,000 worth of tools and equipment to assist them with their continued hard work. The Belong trainee group has been working at Cedar Grove since early 2019, helping to maintain planted areas and remove weeds. The trainees, who are studying Certificate 1 in Conservation and Land Management, were thrilled with the new tools and equipment.

“This project and these initiatives demonstrate our commitment to providing a positive legacy for our people, the community and the environment,” Downer’s General Manager, Water Services North, Chris Yeats, says. “Well done to Matt Thomson, Gus Trabolssi, Daryl Kretschmar, John Holden and the team.”

Construction work on the Cedar Grove Environmental Centre is about 85 percent complete and the facility is expected to be operational by mid-2020.

Content provided by Downer Group.