Rebuilding resilience: Canterbury Linen Services turns crisis into climate leadership

After the Christchurch earthquakes, Canterbury Linen Services (CLS) had to rebuild its operations from the ground up. In doing so, it created one of New Zealand’s most efficient industrial laundries – cutting costs, reducing emissions and proving that resilience and sustainability can go hand in hand.

The 6.3-magnitude earthquake in February 2011 left CLS with a major problem. Its main laundry was badly damaged and assessed at just 33% of code. “While we could operate, the building was unsafe,” says former CLS Chair Brian Wood. “Its operations were vital to the various hospitals that it served as they cannot operate without clean linen.”

At the time, CLS leased its building from the Canterbury District Health Board (CDHB) for an annual rent of $480,000, but the insurance arrangements that were expected to provide a safety net fell short. “We thought we had comprehensive replacement insurance through the CDHB, but unfortunately that proved not to be the case.” With the CDHB unable to fund a rebuild, Wood and the board had to find another way to get back up and running.

The higher rental and funding costs they faced, about $1.4 million extra each year, meant every part of the business had to be reviewed. “That led us to looking closely at our costs,” says Wood. “The major ones were energy and labour.” The review wasn’t just about saving money; it was also an opportunity to reduce emissions. At the time, CLS was using diesel to generate steam for its operations, and the board wanted a cleaner, more efficient solution. They began investigating alternative heat sources and energy systems that could cut both emissions and costs.

CLS compared electricity and biomass options. Biomass proved the clear winner – lower cost over time and far better from an emissions perspective. The team also looked at automating parts of the operation and recycling water to cut both costs and consumption. “With the support of the shareholders, we eventually went to the market to find an investor who would build a new laundry according to our design and lease it to us for 25 years with a right of renewal,” he explains. Christchurch International Airport Ltd (CIAL), which had a strong reputation for sustainable development, made an offer that CLS accepted.

Designing the new facility became an education in what modern laundries can achieve. The team consulted global suppliers, visited sites in the United States and Europe, and brought those lessons home. The final $30 million facility incorporated a biomass boiler, advanced water-recycling system, automation and space for future expansion. Built to the highest environmental standards, the project was delivered on time and within budget under the oversight of an independent project director.

“As predicted, the annual rent increased by over $1 million,” says Wood. “However, we did achieve a reduction of nearly 80% in our energy costs and reduced our labour cost by 40%, which meant we could afford the rent cost. The end result was a modern commercial laundry built to the highest environmental standards with the capacity to expand operations as needed.”

Wood says the process fundamentally changed how the board thought about risk and resilience. “While we were always aware of the challenge of climate change, it took an earthquake to force the board into doing something about it.” The board took full responsibility for the project, working directly with consultants on energy and technology solutions and embedding sustainability into its ongoing oversight. Over time, this focus extended to other areas including the introduction of electric vehicles across its large delivery fleet.

The experience also shifted Wood’s own perspective. “Before, it sometimes proved to be too difficult to bring about the change needed, mainly for perceived financial reasons,” he says. “Seeing what we achieved changed that.” He believes that what made the difference wasn’t just technology or timing, but determination. “If you have the right attitude and you’re prepared to investigate every option, you can achieve what seems impossible.”

Some of the hardest lessons, he says, were also the most practical. “Make sure your insurance arrangements are robust and the appropriate cover is in place,” he cautions. But the bigger message is about the role of leadership and shared commitment. “Involve your shareholders – without their commitment nothing gets done.”

More than a decade later, the laundry built out of necessity continues to set a benchmark for operational efficiency and sustainability. For Wood, the journey showed how adversity can accelerate innovation and how strong governance can turn a crisis into long-term advantage. “It took a disaster to make us act,” he reflects, “but the end result is an organisation that’s more efficient, more resilient and far better prepared for the challenges ahead.”