Business Plan 1

Acting now for a sustainable futureSustainability Victoria 2008/09 Strategy and Business Plan

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Business Plan 3

Table of Contents04 Foreword 06 Who we are 10 Our performance 12 Our role 14 The global context16 The Australian response 18 Implications for our customers:

community, business, governments22 How we work 30 Households and communities34 Education and training36 Business46 Governments52 Sustainability Fund and Secretariat54 Building our capability 56 Strengthen our operations

Published by Sustainability Victoria. Level 28, Urban Workshop 50 Lonsdale Street Melbourne Victoria 3000 Australia. August 2007. Also published on www.sustainability.vic.gov.au © Copyright State of Victoria 2007. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Authorised by Sustainability Victoria. Level 28, Urban Workshop 50 Lonsdale Street Melbourne Victoria 3000 Australia. Designed by Cornwell Design. Printed on Ecostar, 100% recycled paper.

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Foreword The Victorian Government is committed to a more sustainable future for Victoria and is taking practical steps to turn policies and ideas into reality. This means addressing the effects of climate change, creating new models of working and living, and developing short and long term goals for achieving real results.

Sustainability Victoria helps communities, businesses and governments to actively make a difference by converting government policies into practical programs that are easy to implement and have a measurable impact on sustainability.

We think globally and act locally, drawing on innovations in international policy, trends and best practice, and then developing and implementing the best initiatives for Victoria.

Over the next three years, we will work to deliver effective programs that tackle climate change and create behaviour change in many sectors of our community. We will collaborate with the community, industry and government; sharing ideas, listening to feedback and delivering an integrated approach that draws on the resources and expertise of all players.

Market research indicates that seventy-four per cent of Australians now strongly agree that individuals need to change their behaviour to reduce their impact on the environment.1 Seventy-eight per cent of companies believe they have a responsibility to reduce carbon emissions, even if it adds some costs to the business.2

Mitigating climate change is urgent – we need to act now. We will adopt ideas and practices that work at a local level but which aim to have a long-lasting and global impact.

We can make a difference. We hope that you will join us to work towards a sustainable future.

1 Sustainability Victoria and resourceSmart brand market research, Pollinate, 20072 ‘ Environmental Sustainability and Industry, Road to a sustainable future,’ Findings of the

national survey on environmental sustainable practices, The Australian Industry Group, 2007

Foreword

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“We will create innovative solutions that push existing boundaries, making us thought leaders in

the area of sustainability”

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Who we areSustainability Victoria is a Victorian Government Statutory Authority established under the Sustainability Victoria Act 2005. We report to the Minister for Environment and Climate Change.

Who we are

SustainabilityVictoria

Sustainability Victoria facilitates and promotes environmental sustainability in the use of resources.

Mission

That Victorians will use our resources sustainably to support a thriving community and economy.

Vision

We work with Victorians to create ResourceSmart communities, businesses and governments.

Purpose

Collaboration• Weworkwithotherstomaximiseachievements.•Weworkinpartnershipwithindividualsandorganisationsacross the public and private sectors to deliver ResourceSmart outcomes.

Action• Wemakethingshappen.•EverythingwedoisdedicatedtoreducingVictorians’greenhousegas emissions and changing the way Victorians supply and use resources.

Leading thinking• Weapplythebestideas.•Wecontribute,challenge,communicateandapplytheworld’sleading thinking in sustainability. We encourage debate and discussion to help formulate new ways of responding to the challenges we face.

Inspiration• Wemotivateotherstoaction.•WeseektoinspireandmotivateVictorianstobecomeinvolvedin creating successful and lasting change in Victoria.

Values

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Sustainability Victoria translates the Victorian Government’s environmental policies and initiatives into practical actions.

The Government’s policy framework comprises:• GrowingVictoriaTogether(2001,2004)

• OurEnvironmentOurFuture:Victoria’sEnvironmental SustainabilityFramework(2005)

• OurEnvironmentOurFutureSustainabilityActionStatement(2006)

• Policycommitmentsincluding‘TacklingClimateChange’and ‘Water:MakingEveryDropCount’(2006)

• RenewableEnergyandEnergyEfficiencyActionPlans(2006)

• TowardsZeroWasteStrategy(2005)

• Victoria’sGreenhouseStrategy(2002,2005)

• Victoria’sGreenhouseChallengeforEnergy(2004)

• OurWaterOurFuture(2004).

Translating government policy into results

Successfully engaging and partnering with our stakeholders is vital to achieving our vision.We work collaboratively, using our strategic networks and partnerships with community organisations, industry and other local and state government, toensuremaximumeffectivenessinachievingtheVictorianGovernment’ssustainability objectives.In future, we will focus more strongly on reducing greenhouse gas emissions and reducing and recovering waste. These targets can only be achieved through our relationships with partner organisations and the way these partners engage with Victorians.

Our stakeholders

We continually strive to improve our performance and effectiveness by finding new and better ways to operate to ensure we achieve our 2008/09 objectives.

Becoming more effective

Sustainability Victoria works with communities, industry, individual businesses, non-government organisations and government agencies to encourage long-term changes in everyday behaviour that support sustainable solutions. Our customers look to us for expert opinion and practical information on sustainability.

Our customers

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Key objectives

1. Reducing Victoria’s carbon footprint to contribute to climate change outcomes

2. Achievement of the Towards Zero Waste targets for 2008/09

3. Engaging Victorians in new behaviours and ideas to support sustainability in everyday actions.

Our key objectives for 2008/09 are:

Who we are

Objective Target 2008/09 Medium term targets

1 ReducingVictoria’scarbon footprint to contribute to climate change outcomes

Greenhousepollution abated(Mt)

3 10 by 2010

2 Achieving the TowardsZeroWastetargets for 2008-09

Solidwastetolandfill(Mt) 4.12 2.44by2014

Solid waste recovered1(Mt) 6.12 8.08by2014

Sectoral recovery ratesachieved:

> municipal waste 45% 65%by2014

> commercial and industrial waste

65% 80%by2014

> construction and demolition waste

65% 80%by2014

Improvement in littering behaviours2

12.5% 25%by2014

3 Engaging Victorians in new behaviours and ideas to support sustainability in everyday actions

> Victorians reached through awareness raising programs

1.5 m

> Victorians targeted through high consuming/willing households and low income households, change behaviour

10%

1 for reuse, recycling and/or energy generation (by weight)2 from 2003 levels

We will continue to build on our success by working in partnership with a range of community, business and government organisations to extend the reach, influence and impact of our programs.

Future developmentsInthefirsthalfof2008/09,SustainabilityVictoria will revisit its long term strategy with a view to setting more ambitious targets, particularly in relation to reducing greenhouse gas emissions.

The strategy will continue to focus on involving people from all sectors, customer groups and regions in sustainable practices.

We will review our key objectives and targets in the context of international and national developments, and adjust our business objectives and activities to achieve the new goals.

SustainabilityVictoria’stargetsfor2008/09are:

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“We will encourage everyone to get involved in sustainable action”

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Communities

Program Achievements

Sustainability Victoria is the Victorian representative on the national GreenPoweraccreditationgroup.ByJune2007235,732Victorianconsumers hadsigneduptoGreenPowerachievingacarbonsavingof420,000tonnes per annum.

GreenPower

Since2003,wehaveretrofitted4,700homestoachieveatotalenergy billsavingofalmost$500,000andanannualreductionof3,534tonnes of greenhouse gas emissions.

Energy and Water Task Force

In 2006/07, we delivered nearly 1,900 rebates for insulation, solar hot water, gas hot water, PVs and the installation of renewable generation in remote areas.

Rebates

In 2007/08, we distributed 500,000 energy saving light globes, with potential savings in excess of 300,000 tonnes of greenhouse gas emissions and more than$40millioninenergybillsoverthelifeoftheglobes.

Change the Globe

Business

BycontinuingtosupportanddeveloptheFirstRate5software package, Sustainability Victoria helps the building industry implement theGovernment’s5Starstandardfornewhomes.The5Star standardhasachievedacarbonsavingof422,000tonnessince itwasintroducedin2004.

FirstRate5 Building Rating Software

In2006/07,162,000tonnesofwastewasdivertedfromlandfill and greenhouse gas emissions were reduced by 57,000 tonnes.

Commercial & Industrial Resource Recovery

Program Achievements

In2006/07,RESFdeliveredfivemajorprojectsthatwillsaveapproximately75,000 tonnes of greenhouse gas emissions per year.

Renewable Energy Support Fund (RESF)

Our performance

Sustainability Victoria is working with our community, business and government partners and customers to:

> reduce greenhouse gas emissions > meet our waste reduction, recycling and re-use targets> achieve policy commitments in climate change and

resourceefficiency.

Our performance

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Governments

Program Achievements

We continued to work with government agencies across Australia andNewZealandtoexpandthenumberofproductssubjecttoenergy efficiencyregulation,reducingVictoria’sgreenhousegasemissions by around 813,000 tonnes.

Minimum Energy Performance Standards

We released a key issues paper, held extensive stakeholder consultation and project managed the development of the Metropolitan Waste and Resource Recovery Strategic Plan. The Plan was launched for public consultation and submissions. The submissions were considered in finalplandevelopment.

Towards Zero Waste support

In 2007/08, we launched the ResourceSmart Tools for Change program, a management framework that will help government agencies to use their resourcesmoreefficiently.

Resource- Smart Governments

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SustainabilityVictoriaistheVictorianGovernment’sdelivery agency for its environmental sustainability policies and programs. We are a statutory authority that facilitates and promotes environmental sustainability by turning policy into practical action.

We work collaboratively with our stakeholders, partners and customers to deliver positive changes in behaviour, innovative technologies and practices. This reduces greenhouse gas emissions and waste generation, and increased waste recovery.

We empower Victorian communities and businesses to act on climate change and sustainable resource use by demonstrating practical sustainability measures they can easily adopt.

We invest in businesses, helping to improve their bottom line by providing incentives and rebates for activities that enable sustainable action.

We encourage learning and experimentation by community groups and local governments to create successful environmental initiatives that can then be used across the state.

Our role

Our role

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“We motivate and inspire behavioural change to create a sustainable future

for all Victorians”

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The global contextSustainability Victoria’s work needs to take into account the latest international and Australian developments.

Recent international developments in climate change

Countries around the world have recognised the imperative to address the issue of climate change and have found creative ways to ensure resources are used more sustainably.

The174signatoriestotheKyotoProtocolhavecommitted to major carbon reductions, while another 39 countries have agreed to cap emissions.

WhenAustraliaratifiedtheKyotoprotocolinDecember2007,itagreedtolimitAustralia’sgrowthin greenhouse gas emissions to no more than 108 per cent of 1990 levels between 2008 and 2012.

Several countries went well beyond this, committing tosignificantreductions.TheseincludedEurope(eightpercent),Canada,Hungary,JapanandPoland(sixpercent)andCroatia(fivepercent).

Australia’sneighbour,NewZealand,alongwiththeRussianFederationandUkraine,agreedtoazeroper cent increase.

The Intergovernmental Panel on Climate Change andTheBaliRoadMapreleaseditsFourthAssessment Report, Climate Change 2007, in November 2007. The report highlighted trends that are taking place at both a global and national level, as well as directions for the future.

For example:

• Nosinglemeasurewillsolveclimatechange.Consequently, governments are using a variety of measures, ranging from integrating climate policies with wider development activities to introducingfinancialincentives,tradablepermits,and voluntary agreements, as well as research, development and demonstration.

• Small behavioural changes by many people can make a difference. Whether they are changes in individual consumption or transport patterns or better management practices in industry, every little action impacts climate change.

• Working together is more effective. Increased international cooperation to reduce greenhouse gas emissions will make it cheaper to act on climate change, and produce more effective resultsfortheenvironment.TheKyotoProtocoland the creation of an international carbon market are among foundations for future efforts.

• Paying later could mean paying more. While it may cost more to undertake rapid reductions in greenhouse emissions now, this must be balanced against the longer term economic and environmental costs of adapting to the effects of climate change.

Over 180 countries came together for The UN Climate Change Conference in December 2007.

The conference culminated in the adoption oftheBaliRoadMap,whichisexpectedto becompletedby2009.TheBaliRoadMap charts the course for a new negotiating process designed to tackle climate change up to and beyond 2012.

Delegates shared a vision for long term cooperationto:

• setlong-termglobalgoalsfor emission reductions

• increaseactionagainstclimatechange in developed and developing countries

• improvecapacitytoadapttoclimate change, especially in developing countries that are particularly vulnerable, such as small island states and parts of Africa affected bydrought,desertificationandfloods

• developmoretechnologytosupport action on mitigation and adaptation

• increasefundingandinvestmentin activities supporting climate change efforts.

The global context

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Signed,ratificationpending

Signed,ratificationdeclined.

No position.

Signedandratified

Kyoto signatories

Significant reductions Canada, Europe, Hungary, Japan, Poland and Croatia.committed to significant reductions.

Cut in emissions The Russian Federation, Ukraine and New Zealand, agreed to a zero per cent increase in emissions.

Extra assistance for Developing Countries Especially in small island states and parts of Africa.

Bali Road Map Over 180 countries came together for the UN Climate Change Conference in December 2007.

Australia Australia ratified the Kyoto protocol in December 2007.

Kyoto Protocol The 174 signatories to the Kyoto Protocol have committed to major carbon reductions.

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The Australian responseThe Australian and Victorian Governments have set ambitious targets for sustainable development. These targets establish the direction for much of Sustainability Victoria’s activities over the next three years.

Australian Government targetsGreenhouse Gas EmissionsUndertheKyotoProtocol,Australiahasagreed to limit emissions growth to 108 per cent of the 1990levelfortheperiod2008to2012.TheFederalGovernmenthasalsocommittedtoreducingAustralia’sgreenhousegasemissionstosixty per cent of 2000 levels by 2050.

At this stage, no interim targets have been set. Recommendations on interim targets willbemadeaspartoftheGarnautClimate Change Review.

EnergyTheAustralianGovernmenthascommitted to increasing the share of renewable energy inAustralia’selectricitysupplyto20percent by 2020 via a Mandatory Renewable Energy Target(MRET)whichwillbeincreasedfrom9,500gigawatt-hoursto45,000gigawatt-hoursin2020.

Victorian Government targetsGreenhouse Gas EmissionsTheVictorianGovernmenthascommitted to reducing its greenhouse gas emissions to sixty per cent of 2000 levels by 2050.

It aims to reduce household emissions by ten per cent by 2010.

EnergyTheVictorianEnergyEfficiencyTarget(VEET) aims to reduce greenhouse emissions by 8.1 million tonnesinitsfirstphase(2.7milliontonnesperyear,from2009to2011).

The Victorian Renewable Energy Target (VRET)schemeisamarket-basedmeasure thatwillincreasetheshareofVictoria’selectricityconsumption from renewable energy sources to ten per cent by 2016. The extra investment willresultinanadditional3274GWhof renewable energy.

TheGovernmentwillalso:• cutitsownenergyusebyafurtherfive

per cent by 2010• increaseitsownuseofGreenPower

totwenty-fivepercent• increaseenergygenerationfromlow emissions and renewable energy sources totwenty-fivepercentby2020.

MaterialsTheVictorianGovernmentwillincreaserecycling at high tech municipal waste recovery infrastructure facilities, ensuring valuable resources in our waste are reused.

By2014,theGovernment’sTowardsZeroWastestrategyaimsto:• reducetheprojectedquantityofsolid

waste generation by 1.5 million tonnes • recoverseventy-fivepercentofsolidwaste

to be reused, recycled and/or converted into energy

• reducelitteringbytwenty-fivepercent (from2003levels).

WaterTheGovernment’sgoalsforsustainablewater useaimto:• reducethetotalwateruseintheMelbourne

metropolitanareabyatleasttwenty-fivepercent(percapita)by2015andthirtypercentby2020,compared to 1990 levels

• reducethewateruseofthenon-residential sector in the Central Region by at least one per cent per year

• achievetwentypercentrecyclingoftreatedeffluent in the Melbourne metropolitan area by 2010.

The Australian response

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Regulatory changeMeeting the Challenges of Climate ChangeClimate change policy will undergo rapid and substantial change, with many more legislative and regulatory measures implemented at both the federal and state level over the next three years.

Atthefederallevel,thesearelikelytoinclude:• AustraliabecomingasignatorytotheKyoto

Protocol phase two, commencing 2013• theoperationofanationalemissionstrading scheme by 2010• anexpandedMandatoryRenewableEnergy

Target of twenty per cent by 2020.Atthestatelevelwearelikelytosee:• aClimateChangeBillwithalong-termtarget

for reducing greenhouse pollution• aWhitePaperonClimateChangethatwill

contain measures for the next phase of action on climate change

• aVictorianEnergyEfficiencyTarget(VEET).

There will be increased collaboration between federal and state policies. State agencies are likely todelivermorefederalorjoint(federalandstate)initiatives. The performance of current programs will inform new policies and initiatives.

Cutting Greenhouse EmissionsTo turn opportunities for greenhouse gas reduction into reality, we need an holistic, integrated response from the community, business and government – as well as emissions trading.

TheVictorianGovernmentrecentlycompleted a‘wedgeanalysis’3 to gain more insight into opportunities for reducing greenhouse emissions across several sectors of the Victorian economy.

The research showed that the biggest emissions reductions come at a relatively higher economic cost, compared to more modest reductions, and require earlier action. Simply imposing costs on carbon will not be enough to achieve effective emissions reduction. Early and deep cuts in emissions could deliver a sixty per cent reduction against 2000 levels by 2050.

Improving resource useDeveloping better waste management processes wouldhaveasignificantimpactonreductionofgreenhouse gases.

AreviewoftheVictorianGovernment’sTowardsZeroWastestrategyisscheduledfor2009/10. With growing consumption generating increasing waste, new actions may be required to meet waste reduction targets.

TheAustralianGovernmentisconsidering a range of Extended Producer Responsibilities schemestotackleAustralia’sgrowing waste crisis4.

3 Rob Socolow, Princeton4 National Environment Protection Measures (NEPMs) under development, and Priority

Issues - Strategic Plan for 2006-2008, Environment Protection and Heritage Council (EPHC), June 2006

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Implications for our customers: community, business, governmentsTo achieve our sustainability objectives and targets will require action at all levels of the Victorian economy and community. Sustainability Victoria will play an integral role in making the required changes happen and educating Victorians to become more sustainable.

Households and communities

What does climate change mean for Victorian households and communities?

Positive community attitudes towards sustainability are growing in response to education, the increasing awareness of the practical impacts of climate change, pressures on energy prices and the growth of green products and services.

Consumers are calling for companies to provide more product information at the point-of-sale as demand for green products and services grows5.

Asthecostofenergyrises,energyefficiencyprograms become more attractive to reduce household costs as well as environmental impacts. It is likely that the business costs associated with carbon trading permits will be passed on to households through higher prices, giving further incentive for households to become more energyefficient.

Governmentsworldwideneedtorespondtogrowingcommunity concern about sustainability issues and to address equity/affordability issues confronting those people who are unable to adjust to, afford, or otherwise minimise the impact of climate change6.

What will Victorian householders and communities need to do to adapt to climate change?

Theywillneedto:

• actmoresustainablyinareassuch as home energy use and travel

• purchasemoresustainableproducts and services

• worktogetherascommunitiestoincrease the sustainability of their infrastructure, services and practices and to help low income households prepare for climate change.

What help do householders and communities need?

Theyneed:

• trustedsourcesofinformationthatprovideeasy-to-understand choices to help them reduce their impact on the environment and help build their capacity to take action

• point-of-saleordirectoryinformationon accessing sustainable products and services

• incentivesorsupporttofundcommunityexperimentation and learning

• incentivesandsupport,particularlyforlow income households, to make sustainable choices easier

• informationaboutsuccessfulcommunity initiatives to help foster action around climate change across multiple communities.

5 What Assures Consumers on Climate Change?’ AccountAbility & Consumers Int., June 2007

6 The impact of carbon prices on Victorian and Australian households,’ A report for the Brotherhood of St Laurence, Prepared by the National Institute of Economic and Industry Research, May 2007 CUAC

Implications for our customers

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20 Implications for our customers

BusinessWhat does climate change mean for businesses?Most companies are unsure about the implications of climate change for their bottom line, yet see it as an opportunity to promote their commitment to social responsibility, while improving energy efficiencyandsavingoncosts7.

Largebusinessesfacingsignificantcoststoadjust to carbon pricing are leading the way, and are most likelytobewillingtoimplementresourceefficiencymeasures. Multinational companies will be calling for consistent global rules and regulations around climate change8. Small to medium enterprises are expected to be slower in reacting to the challenges of climate change, partly because placing costs on carbon use has less impact on small users of energy.

Entrepreneurs will respond to a larger and more liquid market in carbon trading, with increased investmentin‘clean’technology9 and practices. This may foster increased demand for competitively priced sustainable products and services.

The retail sector is leading the market in offering greenproductsandtherehasbeensignificantgrowthingreenservices.Forthefirstninemonths of 2007, venture capitalists poured more than US$2.5 billion into green-focused companies, afive-foldrisefromtheamountinvestedforall of 200510.

Businesseswillneedtobemoreenvironmentallyaccountable, as shown by the demand for product-based information about environmental performance, as well as the Carbon Disclosure Project11.However,businesswillcontinuetopressure governments to minimise regulatory interference in markets.

Growthinthesustainabilitysectorwillberestrictedby skills shortages.

What will business need to do to adapt to climate change?

Companieswillneedto:

• movefromonlyfocussingondirectemissions to include indirect emissions

• adoptaproductlifecycleview

• takealeadershiproletoensureAustraliacapitalises on its natural renewable technology assets, such as geothermal, solar and wind energy, and investigate long term cleaner coal technologies such as carbon capture and storage.

As governments act to address climate change, industry will need to adapt to increasing levels of product standards and regulations, and take advantage of government incentives and funding for innovation.

What help do Victorian businesses need?

TheAustralianIndustryGroupsurvey7 and feedback fromSustainabilityVictoria’sbusinessandindustrystakeholderssuggestthatbusinessesneed:

• informationonsustainabilitypolicies,bestpracticeguides, sustainability monitoring, assessment and reporting tools, industry benchmarks

• educationandtraininginrelevantskills

• supportforimplementationofinnovative technologies and practices.

7 Environmental Sustainability and Industry, Road to a sustainable future,’ Findings of the National Survey on Environmental Sustainable Practices, The Australian Industry Group, 2007

8 Sean Lucy, Director Environment Law, PriceWaterhouseCoopers Legal9 ‘ Private equity investing in clean technology,’ John Brakey, Macquarie Funds

Management, April 200710 John Shinal reporting on Venture Summit West conference Dec 07, for AlwaysOn11 Carbon Disclosure Project, http://www.cdproject.net/index.asp

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GovernmentTheInterimGarnautReporthasidentifiedmarketfailures in the areas of research, development and innovation, demand-side energy use, and provision of network infrastructure.

Governmentsupportisneededintheseareas to encourage innovation and provide information related to innovation and regulatory responses.

TheMcKinseyreportidentifiessimilarareas wheregovernmentactionisrequired,suchas:

• standardsand/orincentivestopromote carbon-efficientbuildings,appliances and vehicles

• ensuringthatgovernmentfundingsupportsresearch and development of low-emissions technologies

• anaccelerationofpracticalinformation campaigns to change consumer behaviour.

It is important that governments at all levels demonstrate leadership in environmental sustainability by reducing the environmental impacts of their energy and water use, waste generation and procurement, and acting as role models for the rest of the community.

To create long-term change, governments must educate the community about taking a holistic approach to sustainability.

The role of local governmentsLocal governments have a direct relationship with their communities, which offers increased opportunities to influence positive behaviour change. They administer many of the services that Victorians rely on and are therefore a key partner for Sustainability Victoria in helping communities respond to the impacts of climate change.

Localgovernmentsneed:

• informationaboutthebestwaystocope with climate change at a community and household level and

• toolsandresourcestohelpthemmodifyexistingprograms and implement new ones.

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How we work

Our approach Sustainability Victoria will work strategically with the community and industry to increase action on climate change within these groups. This approach isconsistentwiththeVictorianGovernment’spolicydirection on climate change.

We will focus on environmental sustainability opportunities that deliver on government policies and which go beyond those being addressed by other existing or proposed market measures.

We will seek to strengthen our partnerships and focus our partners on delivering programs, positioning them as key delivery partners for thegovernment’sclimatechangeobjectives.

We aim to achieve maximum impact by combining our resources and adopting a more holistic approach. We will pursue this delivery model by sector, geography and customer group.

Forexample,wewill:• combineourhouseholdofferings(inwater,

wasteandenergy)todelivermaximumimpact for Victorian households

• assessenvironmentalorsectoralopportunities(e.g.,buildings)anddesignacombination of actions and programs that we can deliver to achieve maximum results

• focusonthebestcombinationofprograms for particular geographic areas, to achieve more wide-scale outcomes.

We will re-align our organisation to strengthen the quality, relevance and value of the products and services we provide to meet our customer needs.

We will help develop and demonstrate sustainable solutions through supporting innovation, partnerships for flagship projects, awareness campaigns and capacity building.

A customer focus We will tailor our products and services to meet ourcustomers’needsmoreeffectively,makingeducation and practical advice a priority.

Ouraimistobecomea‘onestop’shopwhereVictorians can gain comprehensive support and services to help them take action on climate changeandresourceefficiency.

We will focus our resources on achieving the greatest impact on greenhouse gas emissions, and improving waste reduction and recovery.

As a delivery agency, this will involve consolidating and delivering customised programs to our key customer groups, sectors and regions in energy, materials and water. Where synergies exist between different programs they will be rolled up together in order to maximise their impact.

Our programsWe determine our key areas of focus in each sector by strategically analysing international and local developments. Our programs address existing frameworks and identify gaps to provide a full and holistic response to the challenges ahead.

In2008/09,ourprogramsandserviceswillfocuson:• energyefficiency• renewableenergyanddistributedenergy• materialsefficiency• thebuiltenvironment• water

Encouraging energy efficiencySustainability Victoria has always conducted targeted research that leads to improvements inenergyefficiencyandwewillcontinueto do this.

Ourresearchcontributestoenergyefficiencypolicyand regulatory directions at state and national levels. It also shapes the programs we will run to assist government, community and industry stakeholders to adapt to a carbon constrained economy.

Increasing the use of renewable energySustainability Victoria will work with other agencies to encourage increased adoption of renewable energy, including distributed generation and cogeneration. In addition to reducing greenhouse gas emissions, these technologies can offer reduced network infrastructure costs, reduced peak energy demand, and improved energy security and price stability.

We will also collaborate to run demonstration projects to prove the commercial viability of innovations in renewable electricity and heat, and to increase the reach and impact of demand-side responses,suchasintheuptakeofGreenPower.

How we work

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24 How we work

Business Plan 25

Using materials more efficientlySustainability Victoria will continue to build on its successesinreducingwastetolandfillinpartnershipwith waste management groups, local government and industry.

We will place a stronger focus on product lifecycles andmaterialsefficiency,andusetheopportunitiescreated by emerging climate change policy to reduce waste-related greenhouse gas impacts.

Creating a better built environmentSustainability Victoria will deliver on its responsibility to turn policy into action through the built environment.

We will work with a wide range of stakeholders to demonstrate leading sustainable building practices and resource use. Solutions such as low energy andzeroemissionshousing,improvedwater andwasteefficiency,andretrofittingofexistingcommercial buildings will shape a more sustainable future for the building industry.

We will support increased environmental performance standards for new buildings and housing. We will engage with all players working in the built environment to develop and adopt improved designs, manufacturing processes, products and building practices.

Improving water useMany Victorian agencies are already working intheareaofwatermanagement.However, wecanimproveourstate’sperformanceby better coordinating water management with the management of energy and materials.

Sustainability Victoria will include water into its existing suite of programs to achieve a better, more integrated result. We will strive to become a central source of holistic advice on energy, waste and water issues.

Supporting government agencies to be leading examplesTheVictorianGovernmentistakingalead in instituting sustainability in the work place. Sustainability Victoria will continue to support government agencies in meeting their environmental sustainability targets, thereby becoming examples to the rest of the community.

Delivering integrated sustainability programsSustainabilityVictoriawilldevelopfirst-classoperational capability to meet the high demand for ourprograms,includingahighlyqualifiedworkforce,sound operating systems and processes, and the harnessing of new and innovative technologies.

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Achievement of the Towards Zero Waste targets for 2008-09

Government Policy

Reduce Victoria’s carbon footprint to contribute to climate change outcome

Engaging Victorians in new behaviours and ideas to support sustainability in everyday actions

Deliver Victorian Government sustainability initiatives

How we work

Budget $27.08m Budget $2.15m Budget $23.37m

>Highcapacityhousehold carbon challenge

> Support for low income households

>Householdincentives

> Detox your home > Trades & professional training

> ResourceSmart Schools> Consumer awareness

and information> Community capacity

building

Community

Building our capability> Attracting high calibre candidates> Developing knowledge and experience> Retaining knowledge and experience> Managing people and risks> Sustainability Victoria Environmental

Management System> Enabling technologies

Strengthening our operations > Sound governance

and accountability>ProjectOffice>Knowledgestrategy

Budget $8.97m Budget $8.36m Budget $1.66m

> ResourceSmart commercial buildings

>Businessenergyefficiencybestpractice

> carbonDowne> Clean technology

investment> Renewable energy

support fund

> Commercial & industrial resource recovery

> Municipal resource recovery

>RegionalTZWsupport> Improved organics

recovery> Product stewardship

priorities

> 5 star ResourceSmart>GreenCBDs> ResourceSmart industry

and regions partnerships> Adopting lifecycle

approaches for products and services

>Smartenergyzones> ResourceSmart housing> Small scale renewables

>Energyefficiencypolicy support Contribute to the Ministerial Council onEnergy’s EnergyEfficiencyWorking group.

Budget $0.54m Budget $6.04m Budget $3.90m

> ResourceSmart governments

> Waste policy support

>Energyefficiencypolicysupport

> Renewable energy policy support

> ResourceSmart governments

> ResourceSmart water sector

> Cross-selling with water sector

> Marketing and brand>BuiltEnvironment

policy support

Government

Business

Diagram of our program offerings is presented in figure 1. Figure 1: Our Programs

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Budget allocation

Total Budget

2010-11

Total Budget

2009-10

Total Budget

2008-09

Objectives Full-time employees

2008-09

$21,772,931

$10,895,848

$5,118,743

$33,519,265

$13,169,605

$7,287,252

$36,589,332

$16,453,639

$8,831,679

Reducing Victoria’scarbonfootprint to contribute to climate change outcomes.

Achieving the TowardsZeroWaste targets for 2008/09.

Engaging Victorians in new behaviours and ideas to support sustainability in everyday actions.

54.9

46.0

29.8

Budget Allocation

$37,787,522$53,976,122$61,874,650Total 130.7

Our programs are the means to turn progressive ideas into real action that will make a measurable difference to the environment

The total budgets projected for 2009-10 and 2010-11 are an estimate based on balancing the program budgets against future revenue projections. The projected revenue is based onthefollowingassumptions:thatnoadditionalrevenueisassumedfor2008-09andbeyond,exceptfortheRegionalSolarHotWaterrebate;andthatagradualreductioninrevenuefromthelandfilllevywilloccurovertheperiod.

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Business Plan 29