Energy and GHG-emissions

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1 The aim of this report is to get an overview of the organisation's greenhouse gas (GHG) emissions, which is an integrated part of the company's climate strategy. The carbon accounting is a fundamental tool in order to identify concrete measures to reduce the energy consumption and corresponding GHG emissions. The annual report enables the organisation to benchmark performance indicators and evaluate progress over time. This report comprises administration (headquarter, country offices and productions offices), stores, distribution center and transportation of goods from the production countries to Lindex stores. The input data is based on information from both internal and external data sources and then converted into tco 2 e. The analysis is based on the international standard; A Corporate Accounting and Reporting Standard, developed by the Greenhouse Gas Protocol Initiative (GHG protocol). This is the most important standard for measuring greenhouse gas emissions and was the basis for the ISO standard 14064I. This report is provided by CO2focus AS. Prepared by: Claudia Villamor, consultant Authorised by: Per Otto Larsen, Head of Carbon Management Services Date: 1. Mars 2013

2 Energy and GHGemissions Category Transportation Consumption Energy eq. (MWh) 1 Emissions (tco 2 e) Percentage Petrol E8 Diesel CNG l l l m3 69,8 4,0 809,3 144,3 0,2 212,1 Stationary combustion Estimated Fuel oil Estimated Natural gas l kwh 800,2 482,3 207,9 99,1 Sum scope 1 Electricity 2 66,6 MWh 663,6 tco 2 e 3 % Electricity meterstores Electricity meters offices and DC kwh kwh ,3 2 03,8 2 13,3 230,0 1 Estimated stores kwh , ,0 17 % estimated offices kwh 340,6 232,8 Energy premises District heating DC kwh 632, 8,1 Estimated stores kwh ,6 84,3 23 % estimated offices kwh 2 408,7 203,8 Sum scope ,1 MWh ,3 tco 2 e 3 % Travel Air Train pkm pkm 86,0 12, 3 % Buss pkm 3,4 Goods transportation Inbound freight tkm 7 706,6 3 Distribution freight tkm 2 32,9 9 % Sum scope ,4 tco 2 e 44 % Total corporate CO 2 e emissions ,7 MWh ,3 tco 2 e 10 1) Convert MWh to GJ by multiplying the MWh value with 3,6 GJ/MWh. Notes Scope 1 Transportation: The calculation includes fossil fuel from business cars, mileage allowance and hired cars. In those cases where the amount of fossil fuel is unknown the numbers are based on reported mileage driven with each fuel type by company cars and car allowances. Average fuel consumption is calculated based on reports made by Statistics Sweden and Trafikverket. The emissions from E8 driven cars are based on an average share of 40% petrol and 60% ethanol in the fuel. Fossil fuels in premises: The energy carriers and energy consumption in stores and offices in Sweden have been estimated according to a study made by the Swedish Energy Agency. The share of fossil fuel in 2012 is %. Electricity is assumed to be the only source of energy for heating purposes in other countries. 2

3 Scope 2 Electricity: Actual electricity consumption has been reported where stores, offices and distribution center in Sweden, Finland and Norway have their own electricity meter. Lindex purchase renewable energy (Green electricity) for the same locations, corresponding % of Lindex total electricity consumption in stores, offices and distribution center. This has however no effect on the carbon accounting since the electricity consumption is calculated based on a Nordic electricity production mix. Read more about the electricity emission factor in the section method and references. The production offices report their share of the energy consumption in the premises and their own energy consumption. Lindex share of the activities in the production offices in 2012 was 88%. Energy premises: The energy carriers and energy consumption in stores and offices in Sweden have been estimated according to the study made by the Swedish Energy Agency. The statistics show that 9% of the energy source for heating proposes was district heating, electricity and renewable fuels. The calculation of the energy consumption for all stores and office area in Sweden is based on the of energy carriers. The energy source for premises outside Sweden is estimated to be electricity. District heating is reported for the distribution center in Partille. The results for are revised according to the new figures. Scope 3 Travel: Person kilometer has been provided by the travel agency for all employees in Sweden and Czech. The remaining air travel has been reported from all region and production offices. Emission factors from Defra (Department for Environment, Food and Rural Affairs) are used to calculate the emissions from air travel. An uplift factor has been used to take into account non direct routes. Business travel made by train and bus is based on distance. Goods transportation: Inbound freight includes transportation of goods of commercial products from production countries to distribution center in Sweden. Distribution freight includes all transport of commercial products from distribution center to Lindex stores. The amount of tkm, transport and CO 2 emissions has been reported by the carrier company. The CO 2 emissions in the report are based on reported tkm to avoid the different calculation methods between the carrier companies. The amount of tkm from the distribution does not correspond to the total tkm since some carriers are unable to report both tkm and CO 2 emissions. 3

4 Yearly report GHG emissions (tco 2 e) Category Notes /12 Transportation Petrol E8 126, 122 0, ,2 18 % Diesel 120,3 17, ,1 2 CNG 4,3 1 Stationary combustion 0,2 1 Estimated Fuel oil 168,2 144, ,9 44 % Estimated Natural gas 181,2 19,1 2 99,1 38 % Sum scope 1 Electricity 96,2 60, 663,6 1 Electricity meterstores 2 697, , ,3 7 % Electricity meters offices and DC 220,6 211, ,0 9 % Estimated stores 2 62, , ,0 36 % estimated offices 181,4 220, ,8 % Energy premises District heating DC 81,3 9,1 4 8,1 2 % Estimated stores 210, ,1 4 84,3 2 Estimated offices 227,0 204,3 203,8 Sum scope , , ,3 2 Travel Air Train 1 068,8 66,2 1 08,9 20,9 86,0 12, 19 % 4 Bus 12,1 3,4 Goods transportation Inbound freight 6 990,6 42, ,6 39 % Distribution freight 1 908, , ,9 68 % Sum scope 3 Total corporate CO 2 e emissions , , , , , ,3 36 % 27 % Notes Scope 1 Transportation: The figures for diesel and petrol in 2011 are revised, based on a correction from petrol to diesel. Fossil fuels premises: Statistics for premises show a 10% reduction of the energy consumption per square meter: from 123 kwh/m2 to 111 kwh/m2. The total share of fossil fuels has increased from 4% to %. Scope 2 Elektricity: The CO 2 emission factor for electricity has increased by 13%, from 99 gram CO 2 /kwh to 112 gram CO 2 /kwh. The store floor space with electricity meters have reduced by 1%. The energy consumption per square meter floor space has been reduced by %, from 116 kwh/m2 to 111 kwh/m2. 4

5 The stores floor space which does not have their own electricity meter has increased by 16%. The expanded floor space was mainly made in Eastern Europe. The emission factor for electricity in these countries is significantly higher, since it is principally based on fossil fuels. Energy premises: Statistics for premises show a 10% reduction of the energy consumption per square meter: from 123 kwh/m2 to 111 kwh/m2. Scope 3 Travel: Air travel have a downward trend, the number of travelled person kilometer have decreased by 14%. Goods transportation: The figures for 2009 to 2011 are revised and are now based on reported tkm where these are available. The calculation is based on reported tkm and transport mode. In those cases where the carrier company is not able to report tkm, their calculation of tco 2 emission has been included in the report. Previous reported figures for transport by sea from production countries to distribution center are revised and are now based on the new carrier company reported figures of tkm. Transport mode, volumes and distances are unchanged. The share of tkm transported by air in 2012 was 3,7%. The share of emissions from air freight corresponds to 9% in In 2011 the share of tkm transported by air was 2% and the share of the emission from the total tkm transported from production countries to the distribution center was 43%.

6 Key energy and climate performance indicators Energy and carbon indicators /12 Total corporate (tco 2 e): , , ,3 26,6 % Total energy consumption scope 1 and 2 (MWh): , , ,7 2, Electricity consumption per store m2 (kwh / m 2 )* 120,3 116,4 110,9 4,7 % Electricity consumption per square metre (kwh / m2)** 122,8 112,2 112, 0,3 % CO 2 emissions per employee (tco 2 e / employee) 4,6 4,1,0 20,8 % CO 2 emissions per turnover (tco 2 e / million EUR) 36,7 3,2 37,2, % * Refers to the number of stores included in the electricity contract which correspond to 3 % of Lindex's total store area in ** Refers to the number of stores not included in the electricity contract which correspond to 47 % of Lindex's total store area in Carbon emissions per scope tco Scope 1 Company vehicles and fossil fuel Scope 2 Electricity and district heating Scope 3 Air, train and buss travel Scope 3 Goods transportation

7 Methodology and sources The Greenhouse Gas Protocol Initiative (GHG protocol) is developed by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). This analysis is according to A Corporate Accounting and Reporting Standard Revised edition, currently one of four GHG Protocol accounting standards explaining how to calculate and report GHG emissions. The reporting considers the following greenhouse gases, all converted into CO 2 equivalents: CO 2, CH 4 (methane), N 2 O (laughing gas), SF6, HFCs and PFCs. This analysis is based on the operational control aspect that defines what should be included in the carbon inventory, as well as in the different scopes. When using the control approach to consolidate GHG emissions, companies shall choose between either the operational control or financial control criteria. Under the control approach, a company accounts for the GHG emissions from operations over which it has control. It does not account for GHG emissions from operations in which it owns an interest but has no control. The carbon inventory is divided into three main scopes of direct and indirect emissions. Scope 1 Mandatory reporting includes all direct emission sources where the organisation has operational control. This includes all use of fossil fuels for stationary combustion or transportation, in owned, leased or rented assets. It also includes any process emissions, from e.g. chemical processes, industrial gases, direct methane emissions etc. Scope 2 Mandatory reporting includes indirect emissions related to purchased energy; electricity or heating/cooling where the organisation has operational control. The electricity emissions factors used in CEMAsys is based on national gross electricity production mixes on a year rolling average (IEA Stat). The Nordic electricity mix covers the weighted production in Sweden, Norway, Finland and Denmark, which reflects the common Nord Pool market area. Emission factors per fuel type are based on assumption in the IEA methodological framework. Factors for district heating/cooling are either based on actual (local) production mixes, or average IEA stat. Scope 3 Voluntary reporting of indirect emissions from purchased products or services in the value chain. The scope 3 emissions are a result of the company s different activities, which are not controlled by the company, i.e. they re indirect. Examples are business travel, goods transportation, waste handling, consumption of products etc. In general, the GHG report should include information that users, both internal and external to the company need for their decision making. An important aspect of relevance is the selection of an appropriate inventory boundary that reflects the substance and economic reality of the company s business relationships. References: The GHG Protocol; "A Corporate Accounting and Reporting Standard, Revised edition", 2004 DEFRA (2011), 2011 Guidelines to Defra/DECC s GHG Conversion Factor for Company Reporting, Produced by AEA for the Department of Energy and Climate Change (DECC) and the Department for Environment, Food, and Rural Affairs (Defra),

8 IPCC; "IPCC Fourth Assessment Report: Climate Change", 2007 (AR4) IEA Statistics; "Electricity Information 2011" IEA Statistics; "CO2 Emission from fuel combustion, Highlights", 2011 edition SimaPro; ver with Ecoinvent ver 2.2 (2012) NTM (The Network for Transport and Environment), IMO (International maritime organisation); "Interim guidelines on the method of calculation of the energy efficiency design index for new ships", 2009 Opplysningskontoret for Veitrafikk (OFV), 2012 Statistiska centralbyran; EcoTransit; 8