Climate Change and a Sustainable Business Future for Canberra Airport - Case Study Example

Climate change and a sustainable business future for Canberra Airport Author’s Name Grade course Institution Tutor Date Introduction Climate change is a heavily contested and fundamental contemporary subject contributing to and arising from business relationships and interactions with the natural, social and financial worlds (Henderson-Sellers & McGuffie 2012, p. 56). This unit provides students with an understanding of climate change and the development of sustainable futures for business in Australia and globally. This paper will examine existing policy, current strategy, planning and management responses to climate change of Canberra Airport as forms of intervention intended to achieve sustainable businesses in the airline industry. Over the years, changing climatic conditions have affected business massively with some reporting millions of losses from tsunamis, floods and even bush fires. Climatologists have written all kinds of reports with supported data, that the causes of changing climatic conditions over the past few decades have been the making of human beings (Stoner & Wankel 2012, p. 89). This cannot be disputed considering that individuals, businesses and governments have all been reluctant in implementing environmentally friendly strategies and policies to reduce, if not eradicate completely, the negative effects of changing climatic conditions. This is evident when the U.S and Australia remained reluctant for a very long time to ratify the Kyoto Protocol, claiming that it had many flaws in it (National Round Table on the Environment and the Economy 2012). Businesses today understand the impacts of climatic change and its impact on the business operations and bottom line and thus many have put in place environmental protection policies and strategies (Ford & Berrang-Ford 2011, p. 46). This can be viewed as part of Corporate Social Responsibility which promises to portray the business in good light to stakeholders, shareholders, the government, investors and business partners. Canberra Airport Overview Canberra Airport is an airport that serves Australia’s capital, Canberra as well as the city of Queenbeyan, New South Wales. It is located at the eastern edge of North Canberra and is considered the 8th busiest airport in the whole of Australia (Canberra Airport 2014). Canberra Airport operates only ad hoc and chattered flights and is managed by the Canberra Airport Group Pty Ltd. In the financial year 2011-2012, it is reported that the airport handled roughly 3.2million passengers (3,240,848). This is evident enough that the company serves a lot of customers given that it doesn’t handle international flights and the company has put in measures that would see this number rise to about 9 million passengers by 2030 if they are to compete in both the national and international scene. It is for this reason that Canberra Airport has been expanding its terminals to accommodate the expected growth in passenger base (Canberra Airport 2014). With this expansion, more chartered and ad hoc flights are expected thereby increasing the possibility of environmental degradation with the increased flights, passengers and overall airport operations. The company has however put in place policies and strategies that ensure that it leads the way in environmental protection and performance (Canberra Airport 2014). Current status of Canberra Airport Green Buildings Currently, the airport is arguably the leader in environmental sustainability in the industry in Australia. To begin with, the airport boasts a host of green buildings within the facility with the Brindabella Business Park being the most sustainable business park in the country (Canberra Airport 2014). In addition to the business park, 8 Brindabella Circuit became the first building in Australia to be given the 5 Star Green Star. The 8 Brindabella Circuit saves approximately 450,000kg of carbon dioxide emissions yearly. Experts equate this to removing roughly 110 cars off the roads of Australia every year. The building features building materials that have been recycled, volatile organic material avoidance, lessened noise levels, lessened water consumption, initiatives to manage waste and austere control on day lighting and ventilation (Canberra Airport 2014). The building and the infrastructure around support alternative modes of transport with public transport being very close. Other buildings in the around the airport have been constructed with the same environmental initiatives in mind with other features being solar hot water, parking for only small cars, fixed water irrigation system as well as waterless urinals (Canberra Airport 2014). All these initiatives have enabled the airport save operational costs compared to other industry players and has directed these costs to expanding the airport. According to the airport’s managing director Mr. Stephen Byron, at its current growth rate the airport will be ready to commence international flights by the end of the financial year 2015 (Canberra Airport 2014). Airport Environment Framework The company’s Airport Environment Framework is guided by the Airport Environment Policy. This Environment Strategy was approved in 2010, 21 June by Hon. Anthony Albanese, Minister for Infrastructure, Transport, Regional Development and Local Government (Canberra Airport 2014). Canberra Airport Environmental Strategy supports its development aims of the company’s 2009 Master Plan. In addition to the Environment Strategy, Canberra Airport has in place an Environmental Management System (EMS) that has helped it demonstrate its leadership in environmental management hence promoting a system of continuous environmental improvement. Through the EMS, Canberra Airport has shown that it is committed to a comprehensive environmental management regime in order to realize best practice excellence (Canberra Airport 2009, p. 5). Achievement of Sustainable Business with Climate Change The realization of the current green company status by Canberra Airport has been the result of symbiotic partnerships with its various stakeholders. All these played, and continue to play an important role in the company’s environmental strategies. As mentioned earlier, EMS is one of the company’s environmental frameworks and thus has a management structure to oversee its strategies. Employees Being one of the important stakeholders of Canberra Airport, the company’s employees make part of the Environment Management Structure and serve in the Environmental and Sustainability and Environmental Planning Committee sections (Canberra Airport 2009, p. 12). The Environmental and Sustainability Officer being an employee of the company, he is charged with: Ensuring that actions of the Airport are consistent with its Environmental Strategy Developing, executing and monitoring conformity with the Airport’s EMS. Prepare reports detailing the company’s environmental performance. Consult with the government and other major stakeholders. On the other hand, the Environment and Planning Committee is charged with: Establishing procedures to ensure that policies are delivered effectively. Carry out a yearly review of the Airport’s environmental objectives and targets. Review and organize staff training on business sustainability in climatic changing conditions. Government Canberra Airport has also been in frequent consultation talks with the government concerning environment matters, specifically regarding possible past, present and future developments within and without the Airport’s vicinity (Canberra Airport 2010, p. 33) Being that the government needs to protect citizens, its role in the consultative meetings with the company includes: Ensure that the Airport conforms to the laid down laws regarding developments around the company. Through Airservices representatives, the government liases with Canberra Airport Bird and Wildlife Management Committee to make sure that wildlife life is not interfered with. Provide the Airport with any sort of information to enable the company make better and informed decisions on the potential risks and impacts of its developments. Provide public services such as emergency management as well as manage public assets such as public land surrounding the Airport. Community It should be noted that any major developments in the Airport will affect the surrounding community in one way or another. It is therefore important that the community be involved in such discussions and the Airport does this through the Canberra Community Aviation Consultation Group (Canberra Airport 2010, p. 36). They play a major role here because there feedback offers the Airport management an opportunity to test whether their environment initiatives are a success or not. The community’s role thus includes: Provide valuable feedback to the Airport on the possible future green developments within Canberra. Hold the Airport to account so as to keep the company management in check. Building the capacity of local nonprofit organisations. Offer volunteer services to the Airport so that they feel part of the Airport’s initiatives. Strategic Challenges to Business Sustainability Engaging Partners and Stakeholders This is considered one of the most fundamental challenges facing businesses today. The ability to engage partners actively in environmental safety initiatives to effectively enable the business adapt to the climatic changes (Reddy and Wilkes 2012, p. 62). Despite the glaring evidence that ignoring climatic changes will cost companies a great deal in the future, it is still difficult to convince investors and partners to invest in environmental initiatives. Although it wasn’t difficult for Canberra board to convince business partners to heavily invest in the current green infrastructure it boasts, it definitely took some persuading. However, this does not mean that future investors and partners will easily make a connection between the dollars and the sense of green buildings (Wells 2013, p. 29). This thus poses a challenge for the company as climatic changes continue to become imminent. Cost The increased and frequent changes in climatic conditions has drove Canberra Airport to incur huge of costs in transforming itself into a green company (Smith, Hargroves & Desha 2010, p. 73). Being in the airline industry has not made things easy as a clean atmosphere around the airport is paramount for easy landing and navigation of planes. The company’s environmental initiatives have been geared to majorly ensure that the air surrounding the airport is as clean as possible and this has seen the company’s spending sky rocket massively. One such initiative is the $140 million High Speed Rail station project that Canberra Airport unveiled in 2012. This facility is to be constructed within 125 metres of the terminal. Such costs prove a major huddle in the company’s sustainability and it is forced to look to partners and investors to help in coming up with the development capital (Smith, Hargroves & Desha 2010, p. 78). Overall, the message sent to Canberra Airport is that as long as it recognizes the need to adapt to changing climatic changes, huge costs will initially be incurred. Innovations Climatic changes have forced companies to become innovative in how they deal with the current conditions. Keeping up with the latest innovations is a feat that most organisations fear and Canberra Airport is no exception (Henderson-Sellers & McGuffie 2012, p. 102). The company is always on the lookout for new technologies that will help it sustain its business while at the same time ensuring that effect of climate change are kept at bay. Various innovations such as solar technologies, waterless urinals and ventilation technologies are just some that the company has to sift through and find the best that suits their development strategies (Henderson-Sellers & McGuffie 2012, p. 121). Currently, Canberra Airport is working on technology that will aid air control personnel to guide planes to land in fog with ease thereby reducing delays. In case the management board makes a mistake with the innovations it decides to incorporate, then the company future sustainability is put at risk. Thus, the complex process involved in choosing the right and appropriate technology for the company is a challenge by itself. Strategies to Challenges Despite the challenges that Canberra Airport is facing in trying realize a sustainable business future the light of changing climatic conditions, its management is well aware that the company needs to adapt to these challenges if the business is to survive in the competitive airline industry. To achieve this, the company can employ various strategic approaches in an effort to reduce the impact of the challenges threatening its business sustainability. Total Innovation What this means is that the company should integrate incremental development with un-anticipated, discontinuous innovations (Weihrich, Koontz & Cannice 2013, p. 144). Under this strategy, the company should not aim to way better in its environmental initiatives but rather be just a bit better in such initiatives compared to competitors. By doing this, the company allows room for constant innovations while at the same time ensuring total innovation i.e. innovation in all area at all times. Most importantly, it promises to be cost effective in the end. Experts believe that continuous incremental innovation is more cost effective than radical innovation and delivers the required goals set by a company over time (Weihrich, Koontz & Cannice 2013, p. 159). The idea behind this strategy is that instead of employing technologies that are so expensive, the company can look at innovations used by its competitors in their environmental initiatives. Canberra Airport can then use green innovations that are just a little bit better than their competitors’ thus saving on cost. Adapting to emerging signals As climatic changes continue to soar, environmental policies continue to become even tighter (Wells2013, p. 92). By listening to such emerging signals, the Canberra Airport will be able to best handle challenges to its business sustainability. This is because the company will be able to have possibly very important information regarding new and emerging environmental policies that the company will be able to use in its environmental protection strategies (Wells2013, p. 99). Such information will for example enable the company manage effectively constrained resources, use recycled and better sustainable materials to build more green buildings and other green programmes. Building Strong Partnerships One of the challenges discussed earlier is the possible difficulty for the Airport to convince stakeholders to be part of its future green developments by investing money (Wells 2013, p. 62). For this strategy to work, partnership between the Airport and other stakeholders must be voluntary and collaborative at the same time. In addition to this, synergy must exist between the partners as this will be the power driving the stakeholders and the Airport towards their mutual goals and objectives. According to the 80/20 principle, 80% of the results are as a result of 20% effort from the partners (Wells 2013, p. 83). However, such alliances and partnerships must be strategic in order to allow the Airport to get full access to resources, capital, people and technologies. It will be easy to convince like-minded businesses thereby saving time while at the same time. Strategy to Implement All the strategies mentioned above are fundamental when it comes to Canberra Airport business sustainability initiative in the wake of changing climatic conditions. However, as with any kind of decision making resources are required and therefore the best strategy has to be chosen among the suggested many. The best strategy in this case for Canberra Airport will be adapting to emerging signals in the environmental field. The reason for this choice is that having the latest information and acting on such information fast and effectively can be the difference between staying in business or out of it. Canberra Airport would therefore be well off if the management implemented this strategy. Since emerging issues do not have a timeline, the company will need to always be prepared. For this strategy to work, Canberra Airport will have to invest in the latest environment technologies that will help its personnel learn more about such emerging issues as and when they surface. These technologies would require money and therefore the company’s will need to factor in these technologies when drawing up its annual budget. Their maintenance will also be crucial if they are to produce the best results. Employee training will also be important to ensure that personnel charged with implementing this strategy are able to perform their duties accordingly and excellently. Partnering with environment agencies in the country will prove important for the Airport. Since is not their core business to listen to emerging signals in the environment field, it will not make sense to spend most of the company’s time researching on any emerging trends. Therefore, partnering with such agencies to inform them on any new trends will be vital Conclusion Canberra Airport has done and continues to do a lot in trying to cope with climate change in order to sustain its business. However, as these conditions continue to change rapidly, the company will have to do even more. The strategies mentioned above are just a start because challenges in the airline industry will always be felt and new strategies will be needed. It should be noted that with every sustainability challenge faced, opportunities lie around. It is thus important for the Airport to welcome challenges because once these challenges are out of the way, the future promises to be bright for the company. References Canberra Airport. (2014). Our Business. Retrieved from http://www.canberraairport.com.au/corporate/ Canberra Airport. (2014). Travellers. Retrieved from http://www.canberraairport.com.au/travellers/latest-news/ Coley, D. 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