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29 tal, economic, and social sustainability. Using the manage- ment performance scale (see Appendix B), respondents completed a self-assessment on how well they believed their airport was managing environmental, social, and economic sustainability with regard to policies and programs, perfor- mance monitoring and reporting, and incentives and aware- ness. On the management performance scale, 1 represents little or no awareness of the issue and no policies or pro- grams in place; and 5 represents high awareness, account- ability and long-term planning, and incentives aligned with performance. Figure 14 shows the results of the survey respondentsâ self-assessment. Ratings 1 2 3 4 5 % R es p on d en ts U.S. Airports Non-Hub (1) Small Hub (2) 50% 50% Medium Hub (4) 25% 75% Large Hub (9) 22% 22% 33% 22% Non-U.S. Airports Continental Europe (5) 60^ 20% Asia (1) United Kingdom (1) 100% Canada (2) 50% 50% FigURE 14 Economic sustainability self-assessment of respondents. The air transportation system provides for the cost-effective transportation of goods and services and is a significant engine of the U.S. economy. About 75% of long-distance travelers and 42% of medium-distance travelers prefer air travel. The air transportation industry requires large capital investments to provide servicesâairport capacity is one of the most significant issues facing civil aviation, as building new airports can be more expensive than expanding avail- able facilities. Policymakers must project the impact of their policies in the presence of long lead times (Mezhepoglu and Sherry 2006). Examples of economic sustainability includes local hir- ing and purchasing policies, charitable donations, long-term and life-cycle financial considerations, research to develop sustainable technologies, and incentives to encourage sus- tainable behavior. Responsible and successful economic performance is not just a key indicator of business practice but of the long-term sustainability of an organization. Table 12 provides a summary of the economic practices most frequently cited by survey respondents from U.S. and non-U.S. airports. For a detailed list of economic sus- tainability practices reported by survey respondents, see Appendix D. econoMic sUsTainaBiLiTY seLF-assessMenT Participants in the survey were asked to provide an overall rating of the performance of sustainability at their airports with respect to the triple-bottom-line issues of environmen- CHAPTER SEVEN econoMic pracTices TABLE 12 SURVEY RESPONDENTS FROM U.S. AND NON-U.S. AIRPORTS WHO PROVIDED INFORMATION ON ECONOMIC PRACTICES AT THEIR AIRPORT Economic Practice Non-U.S. Airport Respondents U.S. Airport Respondents Large Hub Medium Hub Small Hub Non-Hub Ec1. Hiring and Purchasing Q Q Ec2. Community Contributions Q Q Q Q Ec3. Quantifying Sustainability Q Q Q Ec4. Contribution to Research and Development Q Q Ec5. Incentivizing Sustainable Behavior Q Q Q
30 organization, but also to society and the economy, whilst minimizing damage to the environment (âProcuring the Futureâ¦â 2006). Local and environmentally responsible procurement can have a wider range of benefits than imme- diately apparent; for example, the environmental benefits of using recycled materials and the social benefits of reducing unemployment. The survey sought to identify specific practices in the following focus areas of economic sustainability: Local hiring by airports and tenants. â¢ Local purchasing by airports and tenants.â¢ Purchase of goods and services from local and envi-â¢ ronmentally friendly businesses. Survey respondents listed the following practices related to local hiring or purchasing at their airports. Local hiring Attract business by promoting regional assets.â¢ Contracts have Medium/Women/Disadvantaged â¢ Business Enterprise requirements. First Source Hiring Program requires tenants and con-â¢ tractors to give the airport impact area (local commu- nities) the first opportunity to fill airport jobs. Local job fairs.â¢ âMeans Business Programâ helps local small business â¢ owners get better access to airport purchasing dollars and share in the revenue the airport generates for the regional economy. Preference for local businesses and contractors in pub-â¢ lic solicitations. Airport jobs represent 11% of jobs for the county.â¢ Local and responsible purchasing Green procurement in place whenever possible and â¢ reasonable. ISO 14001 EMS gives preference for other ISO â¢ businesses. Social and environmental sustainability criteria are â¢ incorporated in requests for proposals. âBusiness Development Opportunities in Economic â¢ Communitiesâ project aims to analyze the territo- rial impact of purchases made by the major airport principals and make airport-specific purchases more visible. Airport purchases services from contractors who â¢ use environmentally friendly practices; for example, waste hauling contractors who use alternative fuel vehicles. Diversity study identified areas to improve contract â¢ opportunities for Medium and Women Business Enterprises. City regulations on small business enterprises.â¢ U.s. airports Respondents from large hub U.S. airports assessed their economic management performance between 2 and 5, with a preference for 4. This rating is similar to their self- assessment for environmental performance. Respondents from medium airports mostly ranked their airports at 4, compared with the highest ranking for environmental performance at 5. Respondents from the two small hub airports assessed the management of their economic sus- tainability practices at 1 and 3, the same rating they gave their environmental performance. The non-hub respondent rated their airport as having better economic sustainabil- ity practices than their environmental practices (4 rather than 3). non-U.s. airports The survey respondents from continental European and UK airports assessed the management of their economic sustainability practices as stronger than the management of their environmental practices. The respondent from Asia rated economic sustainability performance at 2, compared with a rating of 4 for environmental performance. The respondents from Canadian airports rated management of environmental practices higher 5 than management of economic sustainability (3 and 4). A Canadian respondent noted that their airport is a not-for-profit organization. (See box for explanation of Canadaâs National Airports System.) the 26 airports that currently handle 94% of air travelers in Canada comprise a network known as the national airports system (nas). the system includes airports in the national, provincial, and territorial capitals, as well as those that handle at least 200,000 passengers a year. in 1994, the Canadian government introduced the national airports Policy, in which it retained ownership of the 26 nas airports but leased them to local airport authorities who are responsible for financial and operational management. the objective of this policy was to allow locally owned and operated airports to function in a more commercial and cost-efficient manner, be more responsive to local needs, and be better able to match levels of service to local demands (ânational airports Policyâ 2007). LocaL and responsiBLe econoMic pracTices âSustainable procurement is a process whereby organi- zations meet their needs for goods, services, works, and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the
31 Provides job opportunities for summer or short-term â¢ employment in neighboring communities. Comprehensive corporate support program provides â¢ funding to local charities and organizations. Office of Employment and Community Partnerships â¢ coordinates programs linking welfare-to-work recipi- ents and unemployed and underemployed city residents to airport jobs. Student Employment Program offers intern programs â¢ to high school and college students and recent masterâs graduates. Supports ACIâNA and participates on all committees.â¢ Partnered with local universities to establish aviation â¢ academies. Provides substantial support on an annual basis to â¢ charitable and community organizations. Participates in ACIâNA and AAAE.â¢ Makes in-kind contributions to airport community â¢ groups. Supports local Kâ12 educational institutions.â¢ Makes payments in lieu of taxes to local â¢ municipalities. Speakers bureau presents regularly to community â¢ groups and academic institutions. Employees participate in giving campaigns.â¢ Sponsors a cleanup day and contributes substantially â¢ to charity. Recycles foreign periodicals from international flights â¢ to educational institutions teaching foreign languages. Participates in community involvement consultations â¢ and âone company one jobâ employment programs. VaLUinG sUsTainaBiLiTY Economic considerations are fundamental to environ- mental decision making, because these decisions involve trade-offs between the costs and benefits of protecting or improving environmental quality. Those who have the responsibility for making environmental management decisions must reconcile conflicts among environmental, economic, and social considerations. Economic appraisal ensures that the best option to meet an objective is selected, taking into account costs and benefits, risk and uncertainty, and other policy objectives and constraints (Fisher and McMahon 2003). Examples of how sustainability practices are quantified at Portland airport include capital projects required to predict operating and maintenance costs: asset management program considers energy costs. annual objectives and targets include quantification of nonmonetary benefits. coMMUniTY conTriBUTions There is a clear connection between a healthy business and the well-being of the community in which it operates. By contrib- uting to the surrounding community, an organization can: Recruit, motivate, and retain employees.â¢ Use community programs as part of staff training and â¢ development. Improve its reputation and profile.â¢ Realize new opportunities by being in touch with the â¢ local community. Boost networking opportunities with suppliers and â¢ customers. Improve the bottom line by tackling social issues in the â¢ local area (Small Business Journey 2007). at san Francisco international airport, an extensive employee donation program raised more than $120,000 in employee contributions in 2004 and 2005 (see Figure 15). FigURE 15 san Francisco international airport employee contribution initiative. The survey queried respondents about practices at their airport regarding monetary or in-kind contributions to industry, charity, or the community. Respondents listed the following practices related to community contribution: Sponsors community projects such as organic â¢ farming. Provides outreach to affected communities.â¢ Provides airport job center to help tenants â¢ recruit employees and help employees fill out job applications. Established a foundation in 2003 to coordinate social â¢ sponsorship schemes and pursue structured long-term subsidizing policyâbacks projects directly rather than subsidizing the associations behind them.
32 ronmental, social, and economic sustainability topics. Sur- vey respondents cited the following examples: Aircraft emissions measurement, monitoring, and â¢ modelingâthe airport has its own lab that contrib- utes to research programs such as AIRPUR (an air- port emissions measurement project run by the French Aerosace Lab ONERA). AERONETâEuropean Commission network on air-â¢ craft emission reduction technologies. Fund monitoring and conservation programs for â¢ endangered species. Airport plans to collaborate with state energy and â¢ environmental agencies. Airport is forming a regional coalition of similar-sized â¢ organizations to benchmark each otherâs sustainability initiatives. Seventeen of the 25 survey respondents said that their air- port does not currently invest in economic or social sustain- ability research. incenTiVes For sUsTainaBLe BehaVior An incentive is something that âincites or has a tendency to incite to determination or actionâ (Merriam-Webster 2007). By providing incentives, airports can motivate stakehold- ers to change their behavior and contribute toward success- ful implementation of sustainability practices. The survey sought to identify any incentives provided by airports to influence the behavior of tenants, employees, and passen- gers. Respondents listed the following incentives for sus- tainability practices at their airports. Financial incentives Emissions and noise charging, separate pricing for â¢ low-sound-classified planes. Choice of waste disposal contractor made with the aim â¢ of encouraging recovery of separated waste materials as much as possibleâeach tenant can choose number of waste types to separate at the source, and the cost reflects the degree of separation. Airport subsidizes public transport buses and bus rapid â¢ transit to all terminals. Commuter rebate program provides financial incentive â¢ to carpool/bus/bike to work. hong Kong international airport has an annual green office competition for airport staff, as well as an environmental best practice competition among airport business partners (see Figure 16). To understand how airports value sustainability prac- tices, the survey included questions on life-cycle costing, quantifying financial and nonfinancial savings, and fore- casting potential future costs. Survey respondents listed the following practices related to quantifying sustainability at their airports: All new projects require life-cycle costing before â¢ implementation. Reductions in CO2 from onsite transportation and car-â¢ sharing initiatives are quantified. Quantifying monetary and nonmonetary benefits â¢ is part of every business case and net present value evaluation. Every project is reviewed with prudent commercial â¢ and life-cycle analyses before approval. The 20-year master plan uses a sustainability matrix to â¢ assess possible projects. Life-cycle cost analysis is performed for all new con-â¢ struction projects. Emissions reductions from energy savings are â¢ quantified. Diverted waste from landfill through waste manage-â¢ ment initiatives is quantified. Water efficiency is quantified as water reductions per â¢ passenger. The success of wastewater treatment is measured â¢ as the percentage improvement above regulated levels. Capital projects are required to predict operating and â¢ maintenance costs. The asset management program considers energy â¢ costs. Annual objectives and targets include quantification of â¢ nonmonetary benefits. sUsTainaBiLiTY research and deVeLopMenT Sustainability research and development is a way for airports to improve existing, environmental, social, and economic practices, and discover new ones. Research and development can also benefit airports through the implementation of new technologies, processes, and ideas. Los angeles international airport funds research projects on air quality impacts through the University of southern California and UCLa. a full-time community benefits coordinator/liaison works with local stakeholders on this project. The survey queried respondents on the extent to which their airports invest in research and development into envi-
33 non-Financial incentives The Environmental Club aims to raise employee and â¢ tenant awareness. During National Week of Sustainable Development the airport developed leaflets to inform stakeholders about good environmental practices. Website (accessible by all tenants) created to raise â¢ employee and manager awareness. Airport has a strong collaboration with public transport â¢ companies (bus) to improve public transport network. Separate waste receptacles are available in the termi-â¢ nal building for recyclables. FigURE 16 sustainability incentives at hong Kong international airport.