Creating a sustainable, green business model often has people scratching their heads and struggling with the concept. As the public increasingly equates “green” with “good,” clubs often feel pressured to hop on the sustainability bandwagon. Whether going green is worth the effort, and whether it is actually a sustainable business model, is really the heart of the issue.
No matter what is good for a club’s image, clubs need to consider the impact that sustainable practices will have on both their members and their bottom lines. Are clubs viable environments for instituting sustainable practices? Does it just give members a warm, fuzzy feeling to talk about conserving energy and water, or are there tangible benefits for the club’s bottom line? Will members be asked to accept lower quality conditions? Will sustainable practices drive revenue in any way? Are these new bells and whistles that automatically turn off lights or control room temperatures going to cost more than they’re worth?
The fact is that the costs of doing business are increasing, regulatory challenges are looming, and natural resource availability is shrinking. Instituting sustainable practices provides a solid business platform to help clubs both today and into the future.
Defining Sustainability
Sustainability theories and business models have been around for years, but unlike the term “green,” all sustainability models focus on the “triple bottom line” by highlighting “Three P’s”—people (benefiting people now and in the future), planet (ecologically viable), and profit (economically feasible)—to ensure businesses are successful.
Adopting a sustainable business philosophy involves incorporating these three key elements into the decision-making processes. When businesses implement sustainable practices, they usually reap the rewards, including:
- Direct cost savings
- Increased member loyalty and attraction
- Reduced risk and increased positive returns
- Improved relationships/image
- Improved overall branding
- Increased employee relations
- Side benefits of increased innovation/new technologies
Why Sustainability for Private Clubs?
Perhaps the biggest motivator for the club industry to adopt sustainable practices centers on the club’s ability to do business. Many clubs, especially those with golf courses, require vast resources to keep their properties up to par. Economic, environmental and regulatory pressures continue to rise as society turns its eyes toward perceived threats such as recession, global warming and the voices of special interest groups. Regulations pertaining to water quality and water use are becoming stricter, and the costs of doing business are increasing accordingly. Resource restrictions, such as land and water use, will continue to hamper businesses as the population grows.
States such as Arizona, Nevada and California already have water use restrictions in place, and states like Wisconsin, Michigan, Vermont, Florida and California and the states along the Chesapeake Bay have to contend with pervasive water quality regulations and issues. News headlines highlight lawsuits by environmental groups about the use of fertilizers and pesticides. Carbon, energy, water and fertilizer/pesticide issues will continue to make news as the public becomes increasingly focused on the environment. Sustainability experts often dub this business pressure “the license to do business.” Social expectations for resource use, coupled with regulatory actions are heavily impacting clubs’ license to do business by creating new standards to which clubs must conform.
However, even among the varied segments of club clientele, the key elements of sustainability play particularly well. Golfers, boaters and other club-goers promote the preservation of natural beauty. Healthy living, as reflected in the rapid growth in fitness and wellness trends at clubs in the past several years, is important to almost everyone. Many club members also own or operate their own businesses, giving them a personal appreciation for the benefits of efficient resource use. Members lead increasingly eco-friendly lifestyles, and in the uncertain economy, they especially appreciate that many sustainable initiatives are sound financial investments as well.
Embracing Sustainability Helps Ensure the Future of the Private Club Industry
Private clubs—especially those with golf courses—strive to be stewards of the environment in order to maintain the beautiful grounds and landscapes that draw members into club life. Many of these eco-friendly values are addressed in Audubon International’s publication, Golf’s Green Bottom Line: Uncovering the Hidden Business Value of Environmental Stewardship on Golf Courses. Based upon its data, surveys and experience, Audubon International notes that the benefits for sustainable clubs and golf courses include: enhanced image and reputation, increased customer satisfaction, reduced costs, improved worker safety and reduced liabilities.
Clubs that participate in other environmental stewardship programs are already experiencing some of the benefits from sustainable practices. In addition, many clubs in states like Florida, Georgia and Oregon that incorporate recognized best management practices (BMPs) on their golf courses are supporting economic, agronomic and environmental values, while reaping the rewards associated with sustainable business practices.
Five Reasons to Embrace Sustainability Efforts
The following five reasons summarize why clubs should embrace sustainability:
- Private clubs are stewards of both their communities and the environment and have a duty to give back to both. Clubs benefit their communities by enriching their social (recreational and social interaction), economic (jobs and revenues), and environmental (green space) elements. These three key benefits correspond directly with the “Three P’s” of sustainability: people, planet and profit. Sustainability provides a foundation for communicating the value of private clubs to their communities.
- Golf is rich in tradition and values. Golf facilities and professionals should continue to hold high standards of performance as leaders within their communities.
- Many private clubs are already implementing sustainable practices and simply need to document, report and communicate those practices. Highlighting clubs’ eco-friendly practices helps members understand how clubs benefit their surroundings. Regardless of a club’s individual level of sustainable programs, clubs should strive to improve their sustainable initiatives because it benefits both the club image and the bottom line.
- A sustainable philosophy will help to proactively position club facilities and the club industry and will help clubs to cope with environmental issues and regulatory pressures.
- Sustainable practices directly impact the cost of club operations and can help ease financial pressures by increasing revenue and efficiency and reducing costs.
Understanding the benefits of a sustainable business philosophy helps businesses understand the importance of adhering to one. When adopting sustainable practices, there are some clear areas on which clubs can focus their efforts, such as water and energy use, waste management, supply chain improvements and efficient processing of materials. When clubs start to think of how best to incorporate sustainable elements into their standard operations, they should consider both the operational impact and the environmental impact of doing so. In golf, the environmental programs and state BMPs focus on these areas as well. Together these focus areas and benefits help to create the sustainability business case for golf facilities.
Getting Started
Implementing a sustainable approach to club management may appear to be a daunting task, but even taking little steps can yield big results. Clubs need to keep in mind that becoming a sustainable organization is a process, and like many processes, it may take time to yield results.
In order to begin, clubs should first identify a champion who can help guide the process—someone to organize and oversee the implementation of sustainable practices. In order to fully leverage club resources, clubs should create a member-based team to support the staff, which can help to ensure membership buy-in and successful execution. Next, clubs should look to peer facilities to see what they have done to become more sustainable. Rather than recreating the wheel, clubs can use the experience of others to avoid mistakes and speed up the process.
As a framework, clubs facilities should focus on these key areas to develop progressive programs: water use (efficiency and conservation), energy use (efficiency and conservation), pollution prevention and water quality protection. Using these focus areas as a guide, clubs can establish baseline information against which they can measure progress. You can’t manage what you can’t measure. Clubs should be sure to include data such as water and energy use, water quality tests, purchasing information and waste recycling programs. In addition, clubs should measure member satisfaction before and after sustainability programs are enacted. This will help to answer the question as to whether clubs are meeting current member needs.
Sustainability at Any Size
The belief that only the best-heeled clubs can “afford” to be sustainable is a myth. In 2010, Golf Digest awarded its prestigious Green Star Award, which analyzes and rates the environmental stewardship efforts of golf resorts, to Madden’s on Gull Lake in Brainerd, Minn. The program’s previous recipients included such illustrious names as Barton Creek Resort and Spa, Kiawah Island Resort, Pebble Beach Resorts and Sunriver Resort.
How did a small facility like Madden’s compete with those behemoths? By doing what it can and focusing on continuous improvement. Despite its size, Madden’s is intent on enhancing its local environment by instituting practices that are economical. These include the daily collection of trash for recycling and the handpicking of weeds to minimize the use of pesticides. For Madden’s overnight guests, a linen and towel re-use program is in operation. Disposable cups and dishes are eschewed in favor of glass and china. Leaves and grass are composted for use in the herb garden. In total, 105 tons of waste have been recycled since 2008.
Owner C. Brian Thuringer, who himself rolls up his sleeves in the effort, began the program in 2008 by organizing a Green Committee—but not one that was focused on the maintenance of the golf course. The group was formed to offer feedback in an effort to enhance the environmental stewardship of the resort. Believe it or not, some sustainable practices such as the ones below were already in place, disguised as expense-reduction measures.
Additional efforts, though small and easy to implement, have yielded big results. Recycling bins are in each room, shampoo and mouthwash bottles are recycled, mattresses are donated to charity, used frying oil is collected for use as biodiesel fuel and staff turns off lights when rooms are not in use. Thuringer’s “when not in use, cut the juice” policy netted a savings of $32,000 in the first year.
Water Conservation: Innovation in the Face of Adversity
GCSAA Class A Member Paul J. Chojnacky, certified golf course superintendent at Pasatiempo Golf Club in Santa Cruz, Calif., was faced with watering restrictions due to drought. In 2009, the City of Santa Cruz required water usage to be reduced by 30 percent from May 10 through November 10, so Pasatiempo focused on diverting water to the areas that were actually in play. This reduction in water saved the club approximately $98,000 that year alone. The club also converted turfgrass to non-turfgrass natural areas, which saved the club an additional estimated $26,000 in labor and expenses in 2009.
Also during 2009, Pasatiempo had a new irrigation system designed to replace the outdated and inefficient system that was currently in use. The club is also exploring sustainable alternatives, such as utilizing reclaimed water from the neighboring town Scotts Valley, as the price of non-potable water continues to escalate. Three years ago Pasatiempo irrigated 100-acres of grass, but as of the spring of 2010, the course was comprised of 68-acres of irrigated turf, cutting both water usage and the expense associated with it.
Water conservation is a big step in the right direction, but that is not the only positive change to Pasatiempo’s maintenance practices. The club has also switched to a more “immunity-based” fertility program, which has helped the turfgrass withstand persistent stress and fight off disease by emphasizing overall plant health. Since the implementation of this program in January 2008, there have been 11 fewer fungicide applications as compared to the previous 18-month period, saving the club $22,000 in reduced pesticide use. There has also been a tremendous effort to remove invasive plant species such as blackberry and ivy. The removal of these invasive species will provide additional space for wildlife habitats on the golf course.
Improving the Bottom Line with Sustainable Practices
At Stone Creek Golf Club in Portland, Ore., GCSAA Class A Member David Phipps worked with local utility officials to cut energy consumption and institute conservation measures. The club identified ways to reduce energy use, such as replacing inefficient light bulbs, installing motion sensors in rooms and photo cells/sensors on external lights, installing programmable thermostats with lock boxes, adding a more efficient HVAC service, installing window filters, turning off computers at night, and using smart power strips.
Stone Creek sought and received incentives and business tax credits from the Energy Trust of Oregon. The Trust conducted an audit and proposed a turn-key solution that would result in significant savings. After the improvements were completed in 2010, the returns were immediate. In June, the clubhouse reduced energy consumption by 11.4 percent, the maintenance facility by 26.8 percent and the cart storage facility by 29.8 percent. It was also estimated that the club reduced its carbon footprint by 16 million tons of carbon dioxide annually, which is equal to planting 11 trees or taking three autos off the road.
Build It, And They Will Come
Or will they? It seems clear that driving toward sustainability takes leadership and should put a business in a stronger long-term position. But, will these efforts directly drive revenue? Many clubs are very savvy about collecting demographic information on their members/clientele. Learning more about their desires/expectations could provide some key insight to your strategy. The case studies in this article indicated direct cost savings for each business. But their commitment toward sustainability also became part of their brand and how they communicate to their clients. It might be challenging to measure the revenue derived from sustainability efforts, but these are key to the long-term planning for the club.
For additional information about sustainability, visit the Environmental Institute for Golf at www.eifg.org.
Side Bar:
How Clubs are Sustainable
By Jackie Abrams
NCA talked with a variety of clubs to learn about their green practices and efforts toward sustainability. Below are some of the easy and more complex ways that private clubs are saving resources and helping their bottom lines.
The Low Hanging Fruit: Easy execution, substantial savings
- Improving insulation to reduce heating costs.
- Installing window film to lower heating and cooling loads—it also reduces glare.
- Including filter changes, coil cleaning, thermostat calibration, and damper adjustments in your ongoing maintenance plan, to ensure more efficient heating and cooling.
- Charging electric golf courts during off-demand hours to take advantage of lower rates.
- Closing off rooms and adjusting thermostats, as need dictates, to reduce electricity usage and heating costs.
- Using dimmer switches, sensors or timers for lights to cut down on electricity usage.
- Recycling paper, glass, plastic and cardboard to reduce waste.
- Switching to low-flow toilets or install toilet-tank fill diverters to reduce water usage costs.
The Little Things: Clubs making little changes for big payoffs
The Country Club: Taking recycling to a whole new level, TCC created specific recycling depositories throughout the club, from the golf course to the tennis courts, for everything from metal ball container lids to aluminum cans. The Country Club also installed comprehensive lighting upgrades and built a new irrigation pump house that cut down on water and energy usage and attempts to use locally produced and grown food to cut down on transportation costs.
How it helps: Using more energy efficient bulbs cuts electricity costs by reducing overall energy usage. Every little bit of effort adds up, from recycling to conserving water, and can count towards Leadership in Energy and Environmental Design (LEED) certification.
Chevy Chase Club: Implementing several environmentally friendly initiatives including replacing 80 watt “Exit” sign bulbs with 1 watt LED alternatives, replacing old air handling units with energy-saving units as needed, installing more detailed controls on HVAC systems to better control energy usage, replacing worn-out roofing with recycled rubber alternatives that provide improved insulation and moisture protection, and building a new silver LEEDS certified tennis shop.
How it helps: While one little change on its own may not seem like it will have a huge impact, combining several sustainable upgrades can lead to big savings for both the environment and your club.
The Innovators: New ideas—good for the environment; better for the bottom line
River Oaks Country Club: Making bio-diesel out of used cooking oil.
How it helps: According to Joe Bendy, Chief Operating Officer at River Oaks, “Through the end of April, we had produced approximately 2,700 gallons of bio-diesel at less than $1 per gallon and have purchased ZERO gallons of diesel for the year. It’s a good ‘green thing,’ had significant bottom line impact and the members are very proud of it.”
Duquesne Club: Installing a heat recovery system on a newly renovated floor to test its application for the entire clubhouse.
How it helps: In addition to upgrading lighting fixtures and bulbs and updating HVAC controls, testing and researching new ways to save energy and retain and recover heat helps pave the way for cutting edge solutions to old energy problems.
Hamilton Farm Golf Club: Solar powered golf carts and lightning protection sirens.
How it helps: In addition to keeping golfers safe from unanticipated lightening strikes, using solar powered golf carts helps eliminate the carbon footprint left by playing the game.
Greenville Country Club: Planting herb, vegetable and flower gardens to provide for cooking supplies and floral arrangements, as well as adding a chicken coop to produce organic eggs.
How it helps: Using local, on-site gardens to provide herbs and vegetables for cooking eliminates the transportation costs and waste associated with mass growing operations, and ensures food produced is organic and pesticide free. Greenville CC is even going a step further by raising chickens on-site, ensuring that the club has a sustainable source of eggs, and the chickens are raised away from harsh, factory farm conditions.
The Groundbreakers: Going above and beyond for the environment
Wilmington Country Club: Implementing a sophisticated energy management system (EMS) to control not only the heating and air-conditioning, but also most of the mechanical systems in its 150,000 square-foot clubhouse. The system integrates internal systems, including 22 air handlers, and monitors energy usage through an automated system. The EMS is highly adaptable and can be easily calibrated, with the addition of weekly usage information, and updated by users to meet the needs of the club’s 2,200 members.
How it helps: The EMS saves considerable energy and money, and Clark Verchick, chief engineer at the club, reports energy savings of nearly $100,000 in 2009.
Westchester Country Club: Installed a geothermal system to heat and cool water, appliances and the clubhouse as a whole.
How it helps: While the project was an expensive undertaking ($7 million up front), it paid for itself in savings within the first two years. The geothermal system reduced fuel oil usage by 75% in 2008 and saves approximately 16 million gallons of water per year by handling the cooling of the refrigeration and ice makers and using the same water to run through the geothermal system and provide both heat and cold for the HVAC units.
Saratoga Country Club: Solar power to offset electricity costs.
How it helps: By installing 690 solar panels (for which they received $650,000 in state and federal credits), they were able to generate 94 percent of the club’s electricity, reducing the club’s electricity bill from $4,000 per month to $400 per month. Expected savings could range from $1 million to $3 million in a 25-year period, all the while helping to save the environment.
Island Golf Club: Solar panels and geothermal units.
How it helps: Reaching beyond simply one method of green power, Island Golf Club combined two. By installing solar panels on their cart storage building, they provide power for not only said location, but for the main clubhouse, golf shop and tennis and pool clubhouse, as well. A second solar unit supplements the geothermal unit for the groundwater pump. These new installations have cut utility costs by approximately 54 percent, saving about $5,000 each month. Even better, the main solar unit has generated more than 50,000 kWh—offsetting more than 63,000 pounds of CO2 emissions as of 2009.