Comparing Comparing environmental environmental performanceperformance

Environmental benchmarking for Environmental benchmarking for small and medium-sized small and medium-sized

enterprises in the Nordic tourism enterprises in the Nordic tourism industryindustry

Anne Maria SparfAnne Maria Sparf

Is environmental Is environmental benchmarking a viable benchmarking a viable

methodology for small and methodology for small and medium-sized enterprises medium-sized enterprises

(SMEs) in the Nordic (SMEs) in the Nordic tourism industry? tourism industry?

Flow of presentationFlow of presentation Benchmarking and environmental Benchmarking and environmental

benchmarkingbenchmarking

SME characteristics and needsSME characteristics and needs

A survey of Nordic tourism companiesA survey of Nordic tourism companies

New methodology for evaluating the New methodology for evaluating the suitability of environmental management suitability of environmental management tools for SME’stools for SME’s

Results from the evaluation of ten toolsResults from the evaluation of ten tools

ConclusionsConclusions

What is benchmarking What is benchmarking and environmental and environmental

benchmarking?benchmarking?

Benchmarking as a Benchmarking as a business toolbusiness tool

A process to:A process to:1.1. Analyze business activitiesAnalyze business activities2.2. Make comparisonsMake comparisons3.3. Identify the performance gap Identify the performance gap 4.4. Improve performanceImprove performance

Goals:Goals: Continuous improvementContinuous improvementImproved business performance: Improved business performance:

Competitive advantageCompetitive advantage

Environmental Environmental benchmarkingbenchmarking

An environmental management toolAn environmental management tool

Benchmarking of environmental Benchmarking of environmental performance by measuring and performance by measuring and comparing key figurescomparing key figures

A tool to help companies assess their A tool to help companies assess their level of environmental performance level of environmental performance and improve itand improve it

Leads to cost savings and improved Leads to cost savings and improved competitivenesscompetitiveness

In what ways is In what ways is benchmarking present in benchmarking present in

environmental environmental management tools?management tools?

Levels of benchmarkingLevels of benchmarking

Comparisons against criteria

Comparisons against

Best Practice

Comparisons against

competition

Comparisons within company

What are the special What are the special characteristics and needs of characteristics and needs of

SMEs? SMEs?

SME characteristics and SME characteristics and needsneeds

Lack of resources:Staff, time, finance…

Need of assistance due to little

experience and knowledge of

environmental issues

Need to concentrate on vital business

issues, survival from day to day

Stakeholder demands on improving

environmental performance

Unwillingness to consider

environmental issues as a

business aspect

A need for environmental management tools that:

Require little resources to implement Are simple and easy to use Have adequate support functions available Lead to business benefits such as cost savings, improved competitiveness and image Have a positive effect on environmental performance

Survey to Nordic tourism Survey to Nordic tourism companiescompanies

A digital email survey to 527 tourism A digital email survey to 527 tourism SMEs in the Nordic countriesSMEs in the Nordic countries

50 answers were received; response 50 answers were received; response rate 9,5%rate 9,5%

An additional questionnaire to An additional questionnaire to Tourism Industry Associations in the Tourism Industry Associations in the Nordic countriesNordic countries

Comparison to existing research Comparison to existing research resultsresults

Environmental Environmental performanceperformance

Compared with other companies in the field, how would Compared with other companies in the field, how would you assessyou assess

your environmental performance? your environmental performance?

5

20 18

0 0

5

Excellent Better thanaverage

Average Poor Very poor Cannot say

Steps taken to improve Steps taken to improve environmental performanceenvironmental performance

Which of the following steps have you taken to improve Which of the following steps have you taken to improve your environmental your environmental

performance? Please mark all the steps that your performance? Please mark all the steps that your company has applied.company has applied.

33

32

32

16

12

29

22

37

0 5 10 15 20 25 30 35 40 45 50

Reducing amount of waste produced

Recycling materials

Minimizing the use of hazardous materials andchemicals

Minimizing or reducing air pollution

Minimizing or reducing marine or water pollution

Reducing energy consumption

Minimizing physical impacts of operations

Using environmentally friendly products/suppliers

Investment in improving Investment in improving environmental performanceenvironmental performance

Would your company be ready to invest in improving Would your company be ready to invest in improving environmentalenvironmental

performance?performance?

5

18

13

9

The company has already invested sufficiently inimproving its environmental performance

The company is willing to invest what isnecessary in order to improve its environmental

performance

The company is willing to invest in improving itsenvironmental performance, but only a small

amount

The company does not feel a need to invest inimproving its environmental performance

What features in tools are What features in tools are important for companies?important for companies?

What attributes would you consider important for a system What attributes would you consider important for a system designed to measuredesigned to measure

and manage your environmental performance? Score from 1 to and manage your environmental performance? Score from 1 to 5; 1 = not at all5; 1 = not at all

important, 5 = very important. The system should...important, 5 = very important. The system should...

0% 20% 40% 60% 80% 100%

  Be effective in reducing environmental impact

  Be simple and easy to use

  Be inexpensive to purchase and run

  Be available on the internet

  Include a possibility for personal consultations and advice

  Guarantee the security of data and privacy of use

 Be available in native language

  Be continuously updated and improved

1 2 3 4 5

The most important The most important benefitsbenefits

What do you think is/should be the most important benefit of a What do you think is/should be the most important benefit of a system designedsystem designed

to measure and manage the environmental performance of your to measure and manage the environmental performance of your company? company?

3

1

5

4

0

19

10

Increased competitiveness of the company

Comparison of environmental performancewith that of competitors

Cost savings and increased profitability

Gaining customers who prefer usingenvironmentally friendly services

Contribution to sustainability efforts

Protection of the environment

Improved image of company

The most important The most important challengeschallenges

What do you think would be/is the most important challenge What do you think would be/is the most important challenge in applying a system to measure and manage your in applying a system to measure and manage your environmental performance?environmental performance?

23

7

0

2

1

6

1

Lack of resources

Lack of knowledge and/or understanding

Lack of computer skills

Lack of professional help and advice

Lack of interest in improvingenvironmental performance

Difficulty in gathering data forenvironmental indicators

Difficulties in motivating staff

How can SME needs be How can SME needs be taken into account?taken into account?

How can one assess the suitability of How can one assess the suitability of environmental management tools for environmental management tools for SMEs?SMEs?

How can the strengths and weaknesses of How can the strengths and weaknesses of tools be assessed in an effective manner?tools be assessed in an effective manner?

How can tools using benchmarking How can tools using benchmarking methodology be compared to each other? methodology be compared to each other?

A methodology for A methodology for evaluating environmental evaluating environmental

management toolsmanagement tools

Evaluation templateEvaluation templateEstablishing

the purpose and goal

of the evaluation

Performing a qualitative analysis of the tool/s based

on SME needs

Choosing the tool/s for evaluation

Gathering information

about the tool/s

Establishing the level/s of

benchmarking present in the tool/s

Final ranking and conclusions

Information sources

Levels of benchmarkin

g

SME needs

Defining the Choice criteria

Deciding the

target group

Improved eco-efficien

cy

Improved

competi-

tiveness

Adequate

supportfunctio

ns

Simple and

easy to use

Resource

friendly

SME needs

Qualitative analysis based Qualitative analysis based on SME needson SME needs

Improved eco-

efficiency

Improved

competi-

tiveness

Adequate

supportfunction

s

Simple and

easy to use

Resource

friendly

SME needs

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Resource needs

Usability

SupportBenefits

Eco-efficiency

European Eco-Management European Eco-Management and Audit Scheme (EMAS)and Audit Scheme (EMAS)

Total score: 13 of 25 (Average 15,3)Total score: 13 of 25 (Average 15,3)

12345

Resource needs

Usability

SupportBenefits

Eco-efficiency

Green Globe 21 Company Green Globe 21 Company StandardStandard

Total score: 17 of 25 (Average 15,3)Total score: 17 of 25 (Average 15,3)

12345

Resource needs

Usability

SupportBenefits

Eco-efficiency

Eco-lighthouse/Eco-lighthouse/MiljöfyrtaarnMiljöfyrtaarn

Total score: 19 of 25 (Average 15,3)Total score: 19 of 25 (Average 15,3)

12345

Resource needs

Usability

SupportBenefits

Eco-efficiency

The Nordic Swan for The Nordic Swan for hotelshotels

Total score: 16 of 25 (Average 15,3)Total score: 16 of 25 (Average 15,3)

1234

5Resource needs

Usability

SupportBenefits

Eco-efficiency

Green Tourism Business Green Tourism Business SchemeScheme

12345

Resource needs

Usability

SupportBenefits

Eco-efficiency

Total score: 20 of 25 Total score: 20 of 25 (Average 15,3)(Average 15,3)

TourBench for TourBench for accommodationaccommodation

Total score: 17 of 25 (Average 15,3)Total score: 17 of 25 (Average 15,3)

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Resourceneeds

Usability

SupportBenefits

Eco-efficiency

RecommendationsRecommendations

Green Globe 21 for all sectors of Green Globe 21 for all sectors of tourismtourism

The Nordic Swan for larger hotelsThe Nordic Swan for larger hotels

Eco-lighthouse for other industriesEco-lighthouse for other industries

RecommendationsRecommendations TourBench for accommodation TourBench for accommodation

servicesservices

Many existing tools could be Many existing tools could be improved by adding comparison improved by adding comparison against others and against Best against others and against Best PracticePractice

Any new tools would benefit from a Any new tools would benefit from a similar approach as in the Green similar approach as in the Green Tourism Business SchemeTourism Business Scheme

ConclusionConclusion

Benchmarking of environmental Benchmarking of environmental performance performance isis a viable a viable

methodology for SMEs in the methodology for SMEs in the Nordic tourism industry:Nordic tourism industry:

Fulfills SME needs adequately,Fulfills SME needs adequately,

Improves business and environmental Improves business and environmental performanceperformance

Comparing environmental Comparing environmental performance is an excellent performance is an excellent

way to improve environmental way to improve environmental and business performanceand business performance

!! Win-Win situation !!!! Win-Win situation !!