Organizational Change Management for Sustainability Pearson Inc

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1 Organizational Change Management for Sustainability Pearson Inc Kate McCarthy Project Lead Green Teams Pearson North America Sustainability Specialist 1

2 About Us Pearson is an international media company with worldleading businesses in education, business information and consumer publishing. We help children and adults to learn, business people to make good decisions, and readers to wise up or wind down with a good book. Our businesses fuel the growing demand for effective education and high-quality information in the global knowledge economy, and share a common goal: to help people get on in their lives through education. With 37,000 employees based in more than 60 countries, we aim to serve the citizens of our brain-based economy wherever and whenever they are learning - old or young, at home or school or work, in any pursuit, anywhere. Pearson is listed on the London and New York stock exchanges (UK: PSON; NYSE: PSO) and in 2009 we had sales of 5,624m and operating profit of 858m. 2

3 Our Businesses Pearson Education Pearson is the world's leading education company. From pre-school to high school, early learning to professional certification, our curriculum materials, multimedia learning tools and testing programmes help to educate more than 100 million people worldwide - more than any other private enterprise. Financial Times Group The Financial Times Group, one of the world's leading business information companies, provides a broad range of business information and multimedia services to the international business community. Penguin Group The world-famous Penguin brand is the label of quality from novels and classics to cookbooks - and much more - around the world. We publish an unrivalled range of fiction and non-fiction, bestsellers and classics, children's books and illustrated reference treasure chests in over 100 countries. 3

4 Hanne Vozeh : Vice President Environmental Sustainability What is your definition of Organizational Sustainability? Sustainable able to continue for a long period of time My goal as the Vice President of Environmental Sustainability is to influence Pearson, its stakeholders and employees to adopt practices that cause little or no harm to the environment so our future generations (especially my boys Erik, 8, and Luke, 5) can live in a clean world filled with natural resources. To me, that means that Pearson not only help children learn for their future, it also ensures that children have a future. 4

5 In 2007, we made a commitment to become a climate neutral company for our existing businesses by the end of 2009.so what did we do? and how did we do it? 5

6 Carbon Footprint What is Pearson s Global Climate Footprint? In 2009 Pearson s total carbon footprint was 179,895 Metric Tons 1. Here they are broken down by region to better understand the global impact of operations. 180, , , , ,000 80,000 60,000 40,000 20, ,895 Global Total 71% 128,443 15% 12% 26,228 3% 5,445 2% 3,014 1% 2,643 14,122 USA UK Australia Canada India Rest of World Total CO 2 Emissions by Region 1 Emissions are measured in Metric Tons or Tonnes of Carbon Dioxide. A metric ton equals 1,000 kg/2204 lbs. A standard (short) ton in the US equals 2,000 lbs. 6

7 Carbon Footprint So, how So, how did we diddo in the we do? US? In the US, since 2007 we reduced our footprint by 18,192 metric tonnes of CO 2. This is the equivalent of the electricity used by over 2,300 households in a year! Tonnes CO2 150, , , , , , , , , ,442 Tonnes CO2 115, US Total CO 2 Emissions 7

8 Carbon Footprint What s the mix of the US climate footprint? Currently Pearson s carbon footprint covers only our direct operations. In practice, this means buildings our offices, call centers and distribution centers as well as travel that our employees do on behalf of Pearson. 9% 1% 7% Buildings - Electricity Buildings - Gas and fuel oil 11% 13% 59% Planes, Trains, Automobiles - Cars: Petrol & Diesel Planes, Trains, Automobiles - Air Buildings - Waste Other Breakdown of the US climate footprint mix by category 8

9 Carbon Footprint How did we achieve our climate neutrality goals? We achieved our climate neutrality goals through a mixture of the following activities: Reducing the energy we use and the distance we travel on business (GHG Reductions) Purchasing green electricity and investing in generating our own renewable electricity Establishing tree planting partnerships as trees absorb carbon 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 18,191 84,190 44,253 15,000 29,253 GHG Reductions Green Electricity Existing Tree Planting Partnerships (Trees Planted) Commitment to Plant Additional Trees 0 Break out of activities by type. 9

10 In 2007, we made a commitment to become a climate neutral company for our existing businesses by the end of 2009.and by 2009 we became a carbon neutral company! 10

11 Organizational Change Management for Sustainability 11

12 Lucky! Pearson = Corporate Social Responsibility We have approved funds, lots of funds! People in Pearson s upper management tend to be very environmentally focused and willing Our customers tend to be educated and want proactive sustainability measures in place 12

13 Challenges Mandates versus bottom up implementation Getting people on board Sandwich Approach Middle Management Leased Facilities versus Owned Cranberry Warehouse Running out of ideas Implementing Change when certain people protest HR Contest Green Teams Leadership/members/activity Communicating accomplishments, and making initiatives transparent Time, size of group Collecting from teams Sharing of information between groups Some divisions don t want to share ideas to be leaders Budgets Incentives!!! 13

14 Strategies for Challenges Ambassador Program Planet Pearson revamp Dynamic, continuous feed/support, Global Green Teams control own sites Mentor Program Reporting Guidelines are being established NUS reporting tool (energy/water reporting) Integrating Green into the hiring process Partnership with Pearson Student Ambassadors Involvement/positioning for sales Green Marketing Campaigns 14

15 Green Teams initiatives for 2010 Encourage Green Teams work with facilities to reduce local footprint Increase Green Team support through various corporate sponsored initiatives Roll out a simple template to help Green Teams set priorities and targets Hold training sessions via Webex for Green Teams to review green strategies implemented and not; as well as challenges and resolutions involving initiatives Improve user-friendliness to update Green Team sites on Planet Pearson to ensure the information is dynamic Increase usage of Planet Pearson and corporate initiatives through a green calendar, tips, information, contacts, contests and general team updates nationwide Create Planet Pearson Green Store for Green Team ideas and use Sponsor a green blog for Green Teams and other Pearson employees to voice support, concerns, questions and general discussions involving making Pearson more sustainable Other initiatives planned through the support of Kate McCarthy 15

16 For more information, please contact Hanne Vozeh at Or contact Kate McCarthy at 16

17 Extra Information More information about Pearson s Key Initiatives, Accomplishments and Goals 17

18 Key initiatives Pearson reduced its carbon footprint through the following key initiatives: Renewable energy: Installed solar panels on the roof in Old Tappan, NJ Purchased green electricity Energy efficiency projects, including: Installed energy efficient lighting in warehouses Installed motion sensors in buildings Improved energy management systems Virtualized servers Forestry Projects: FT Partnered with the Children s Tropical Forest to protect the rainforests in Costa Rica Penguin partnered with the Nature Conservancy Council on their Plant a Billion Tree campaign in Brazil ~15 million planted to date Technology and Travel Projects: Installed 11 new high-definition video conferencing systems, 10 in the US and 1 in the UK~ air flight was down 40% Increased our fleet of hybrids and shrank engine sizes ~vehicle footprint was reduced by 25% 18

19 Other achieved goals In addition to the key initiatives, we also achieved the following goals: Received our first LEED Certification from the Green Building Council for the new Pearson Sandy, Utah office Redirected waste from landfill - the Indianapolis Distribution center is now a zero landfill warehouse Launched an energy online management tool in the UK and the US Established the ISO as the company s standard for environmental management systems Switched to Xerox multi-functional printers to reduce paper, cartridges, and shipping Funded Think Tank, an online meeting tool Improved communications about Pearson s environmental commitments, programs and results Implemented various paper initiatives to look at the sourcing of our paper Established more than 30 Green Teams globally Established Green Fund to financial support green initiatives 19

20 Best practices for buildings Our facility managers play an important role in helping the company identify ways we can continue to reduce our environmental impacts. A few best practice recommendations for facilities to consider are: Use our new on-line energy management tool on a monthly basis, and make it a regular habit to review and focus on reducing our energy consumption Become zero landfill facility. Identify ways to improve how much waste is recycled, or if your region has a local company which uses waste to generate power Check where the thermostat is set. By turning the thermostat a few degrees down in the winter and up in the summer not only saves energy but also reduces costs Look to how you can improve lighting: use energy efficient light bulbs, install automatic sensors to turn off the lights when no one is around, or work with cleaning crews to make sure the lights are turn-off at the end of the day Switch off your HVAC system outside of work hours to avoid unnecessary heating or cooling Install window insulation film to glass windows to reduce heat transfer and save energy Ask suppliers to take unwanted packaging back for reuse 20

21 Plans for 2010 We are proud that we achieved our commitment to be climate neutral, however, we know there is more that we can and should be doing to continue to reduce our environmental footprint. Our future plans include: Continue to be a climate neutral company and continue to focus on the environmental footprint in our direct operations Invest in additional renewable energy projects Upgrade video conferencing in at least 8 sites Review and identify opportunities in our supply chain Continue to review and focus on reducing our energy consumption in our facilities by using our new on-line energy management tool Evaluate our fleet on an annual basis to identify additional opportunities to reduce our CO2 Review how we can improve our ability to redirect waste from landfill across the US enterprise Roll out global environmental communications, including making Planet Pearson global, and creating an external website dedicated to our environmental initiatives 21

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