Product Carbon Footprinting

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1 Product Carbon Footprinting Abralatas Presentation Sao Paulo, Brazil October 7, 2010 Scott Kaufman, Ph.D.

2 Agenda Introduction & Background LCA and Carbon Trust Approach to Footprinting Aluminum footprint Future work and priorities

3 Unprecedented growth World Population 6 5 Population (billions) Year (AD) CO2 & temperature increases

4 So, why Product Carbon Footprinting? (Consumption vs. Production emissions assessment) 100% 80% 60% 40% 20% 0% Global GHG Kyoto Annex 1 emissions European GHG emissions

5 Production, consumption and emissions assessment (cont d) UK CO2 emissions 6000 China CO2 emissions Net imported CO 2 emissions Domestic production emissions (12% drop) Total UK emissions have risen 19% since mt CO Export Domestic Year Source: Helm, Smale & Phillips (2007) Too good to be true; the UK s climate change record Source: Pan, Phillips, Chen (2008) - China's balance of emissions embodied in trade: approaches to measurement and allocating international responsibility

6 Global carbon flows Source: Davis, Caldeira 2010

7 Embodied carbon in Brazil imports and exports G. Machado et al. / Ecological Economics 39 (2001)

8 Emissions assessment and supply chain carbon footprinting Innocent Smoothies 8 Establishing an internationally agreed supply chain carbon footprinting approach will support effective decision-making regarding emissions assessment and reduction.

9 Agenda Introduction & Background LCA and Carbon Trust Approach to Footprinting Aluminum footprint Future work and priorities

10 Aim of our work Aim To build a globally accepted initiative to measure, reduce and communicate the carbon footprint of goods and services Objective Core Objective: Emissions Reductions Relying on: Information to allow sound decision-making Collaboration to achieve lasting impact

11 International standard development - Status PAS 2050 WRI/WBCSD ISO Status Published October 2008 Commenced September 2008 Agreed to proceed November 2008 Scope Product carbon footprinting standard that provides detailed requirements for the assessment of GHG emissions from products Two components: 1.Standard or guidance on GHG emission assessment 2.Further Scope 3 guidance in the GHG protocol Two-part standard for product carbon footprinting 1. Assessment 2. Communication Additional material Guide to PAS 2050 Case studies Code of Good Practice Not yet determined No

12 International standard development: Timing PAS 2050 WRI/WBCSD ISO Review Need to ensure that there is consistency between the different initiatives. Differing time scales create the opportunity to ensure comparability PAS 2050 published, and its review will co-inside with the completion of the World Resources Institute and World Business Council for Sustainable Development s (WRI/WBCSD) work ISO process has the opportunity to incorporate the experience of both the PAS 2050 and WRI/WBCSD development processes, and the experience of companies implementing PAS 2050 in practice, in its drafting of a new standard. Other country-specific action taking place in Japan, New Zealand, France, etc

13 Overall international exposure (consultation, download and supply chain) 13 PAS 2050 received input and experience from over 40 countries, across six continents, during its development.

14 The Carbon Trust Approach to Footprinting & Communications Measure Communicate Reduce

15 CT footprinting uses life cycle/ supply chain approach Supply chain / value chain of a can of cola Aluminium Production Sugar farming Cola production Packaging Transportation Chilled storage Total carbon footprint of a can of cola (illustrative) Refrigeration Can collection Recycling or disposal

16 Aluminum footprint: Our work with Coca Cola UK

17 Kg/kg CO2eq Emissions Factors for packaging materials NOT FOR REPRODUCTION OR PUBLIC DISTRIBUTION Kg CO2e/Kg Material DISCLAIMER: NOT AN ENDORSEMENT OF ONE MATERIAL OVER ANOTHER! EACH HAS ITS OWN ADVANTAGES & DISADVANTAGES. 100% virgin 100% recycled As supplied Coke Al Coke PET 0.5l Coke Glass

18 Results of Coca-Cola Study NOT FOR REPRODUCTION OR PUBLIC DISTRIBUTION DISCLAIMER: NOT AN ENDORSEMENT OF ONE MATERIAL OVER ANOTHER! EACH HAS ITS OWN ADVANTAGES & DISADVANTAGES.

19 Results in carbon intensity (gco2eq/liter) NOT FOR REPRODUCTION OR PUBLIC DISTRIBUTION gco2eq/liter DISCLAIMER: NOT AN ENDORSEMENT OF ONE MATERIAL OVER ANOTHER! EACH HAS ITS OWN ADVANTAGES & DISADVANTAGES. 500mL PET 2L PET 330mL Can 330mL Glass

20 Opportunities for reduction Source: PE/AA study

21 Opportunity for reduction Source: PE/AA study

22 Key lessons Lightweighting has worked There are further opportunities for reduction Production in places like Brazil (with abundant renewable energy) has potential to significantly reduce footprint It s helpful to industry to do this kind of work Public education Chain of custody

23 The Carbon Trust Approach to Footprinting & Communications Measure Communicate Reduce

24 Communicate: the Carbon Reduction Label Customer Communication Required Optional The Carbon Trust will award the Carbon Reduction Label upon verification of the results of the product carbon measurements Standards, certification, and label will provide comparability and harmonization of product carbon footprint numbers that companies put into the public domain Label is ISEAL Compliant (like FairTrade, MSC, FSC, Organic) This is the updated Carbon Reduction Label Being used on pack, at PoS, online, Options for communications: On-pack In-store POS In-brochure Web-sales

25 Communicate: How the label is being used? Our launch partners are using the carbon reduction label in different ways to test consumer reaction Walkers are displaying it frontof-pack with a short description on the back Boots are using it on in-store advertising materials to help them tell the story

26 Communicate: How the label is being used? and Innocent are using their website. This allows them to describe the project and tell the story in much more detail

27 Communicate: How the label is being used? Tesco using the label on 20 own-brand products across (on pack, at POS, education booklet): Orange juice Potatoes Washing detergents Light bulbs

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29 Industry attention

30 Media attention in Brazil: Suzano

31 External Communications of Carbon Footprints On Pack Point of Sale Brochure / Consumer Education Website CSR Report or Press

32 The Carbon Trust Approach to Footprinting & Labeling Measure Communicate Reduce

33 Reduce: Case studies of our results Boots: Shampoo UK s leading pharmacy chain 8 shampoos, 4 packaging types and 2 distribution options 90% of footprint from consumer use Identified 33% savings opportunities in supply chain Boots implemented 20% 10%: recycled bottle 10%: distribution upgrade Continental Clothing: T-shirts B2B wholesaler of clothing for corporate, leisure and promotional wear Footprinted supply chain of 7 t-shirts & tops Sponsored building of wind farm to power the India factory Yielded 90% saving to the B2B carbon footprint

34 Some companies we re working with

35 Suite of footprinted products

36 Agenda Introduction & Background LCA and Carbon Trust Approach to Footprinting Aluminum footprinting Future work and priorities

37 Looking back and forward Some achievements we can all feel good about Globally recognized methodology Moving further towards a true worldwide consensus Mainstreamization of LCA/product carbon footprinting What s next? Working with more industry groups Scale Increase speed at which product level footprints can be performed Reduction advice Work with CT and partner organizations to identify ways to reduce measured footprints

38 Thank you! Scott Kaufman, Ph.D.

39 Product carbon footprinting & communications process Initial Scoping Analysis Carbon Footprint Analysis Certification of Analysis Carbon Label Award Participants Company key stakeholders Staff with knowledge of lifecycle of product Consultant Carbon Trust Company key stakeholders Staff with knowledge of lifecycle of product Consultant Carbon Trust Carbon Trust Carbon Trust Purpose Agree on products For CT and consultant to gain knowledge to prepare a Scope of Work document Calculate energy use per product Calculate emissions per product To certify analysis conducted by Company / consultant Product carbon footprint label ready for use Content Construction of a high level process map Definition of main inputs and outputs Discussion on availability of data Discussion on envisioned Company involvement Done at cost to CT Analysis can be conducted by Company directly using CT as an advisor or, Analysis can be conducted by CT on behalf of Company using consultants Makes sure that energy use / emissions assumptions & calculations are reasonable and accurate Company can add label to products