Carbon Audit Report for Yau Lee Construction Company Limited

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1 Carbon Audit Report for Yau Lee Construction Company Limited (May 2011 April 2012 and May 2012 April 2013) (Rev 3) Prepared by Business Environment Council Limited 8 July 2013 BEC reference: C2486

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3 TABLE OF CONTENTS 1 INTRODUCTION METHODOLOGIES BACKGROUND INFORMATION AND BOUNDARIES Scope of the Carbon Audit Description of Premises Physical Boundary Operational Boundaries GHG EMISSIONS AND REMOVALS QUANTIFICATIONS Scope 1 - Direct Emissions Scope 2 - Energy Indirect Emissions Scope 3 - Other Indirect Emissions Summary and Comparison of GHG Emissions CONCLUSION DISCUSSION GHG Reduction Programmes / Initiatives Areas for Improvement...16 Appendix A Detailed calculation of GHG emissions in May 2011-April 2012 Appendix B Detailed calculation of GHG emissions in May 2012-April 2013

4 1 INTRODUCTION Business Environment Council Limited (BEC), as the Qualified Service Provider (QSP) for Energy-cum-carbon Audit Projects and Carbon"Less" Certificates Scheme, was commissioned by Yau Lee Construction Company Limited (the Client) to conduct carbon audit for the office located at 10/F., Tower 1, Enterprise Square, 9 Sheung Yuet Road, Kowloon Bay, Kowloon (the premises) for the time period from May 2011 to April 2012 ( ) and from May 2012 to April 2013 ( ). The audit aims to quantify the Client s greenhouse gas (GHG) emissions as arising from activities within the physical and operational boundaries of the premises from which the anthropogenic sources were identified. A series of audit activities were conducted from April to June 2013 including the following steps for the purpose of quantifying the carbon footprints of the client for and , respectively: Setting up audit strategy and adopting appropriate methodologies by referencing to relevant guidelines; Defining physical and operational boundaries; Collection of activities data which contributes to GHG emissions total; Determinating the scopes of emissions; Carrying out on-site audit, meeting, verification and interviews with responsible personnel to verify the collected data; Quantification and calculation of GHG emissions for the Client in terms of carbon dioxide equivalent (CO 2-e ); Presentation of results and findings. 2 METHODOLOGIES The Greenhouse Gas (GHG) quantification methodologies as adopted in this report refer to the following guidelines: Guidelines to Account for and Report on Greenhouse Gas Emissions and Removals for Buildings (Commercial, Residential or Institutional Purpose) in Hong Kong issued by the Environmental Protection Department and the Electrical and Mechanical Services Department ISO Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals Business Environment Council Page 1 of 17 C2486

5 Site visits were carried out on 24 th April 2013 and 28 th May 2013 in order to identify the physical, operational boundaries and scopes of GHG emission sources and removals. Questionnaire was used to collect information as supporting documents from the client. The returned questionnaire is attached at Appendix A. Minor discrepancy may be experienced during the quantification of GHG due to rounding of decimal places. 3 BACKGROUND INFORMATION AND BOUNDARIES 3.1 Scope of Carbon Audit The reporting entity of audit is Yau Lee Construction Company Limited. The report covers the Client s GHG footprints during the time period from 1 st May 2011 to 30 th April 2012, and from 1 st May 2012 to 30 th April 2013, respectively. 3.2 Description of Premises The premises comprises a total area of 12,300 square feet, accommodating about 100 staff members during the audit period. 3.3 Physical Boundary The physical boundary of the premise is shown in Figure 1. Figure 1: Floor plan of the premise Business Environment Council Page 2 of 17 C2486

6 3.4 Operational Boundaries The premises serves as the headquarters to provide all necessary logistic and clerical supports to all employees of the Client. In accordance with on-site observations and relevant protocols, the eligible emissions and removal sources in the service scope of the premises are stated in Section 4 of this audit report. 4 GHG EMISSIONS AND REMOVALS QUANTIFICATIONS 4.1 Scope 1 - Direct Emissions The scopes of GHG emission sources and removal for the premises are outlined as follows: Stationary Combustion Sources The Client did not own any stationary combustion equipment such as generator sets, cooking ranges, heaters or ovens which involved combustion of fuel within the stated physical boundaries in the reporting periods ( and ). Therefore there were no relevant GHG emissions from the premise. Vehicle Use The equations adopted for CO 2 -e emissions quantification are shown as follows: CO 2 Emissions (in tonnes of CO 2-e ) = Amount of fuel consumed x Emissions Factor of CO 2 CH 4 /N 2 O Emissions (in tonnes of CO 2-e ) = Amount of fuel consumed x Emissions Factor of (CH 4 /N 2 O) x Relative Global Warming Potential (GWP) Where: Emission Factor of (CO 2 ) for ULP powered passenger car and private van is 2.36 kg/ litre. Emission Factors of (CH 4 ) for ULP powered passenger car and private van are g/ litre and g/ litre, respectively. Emission Factors of (N 2 O) for ULP powered passenger car and private van are g/ litre and 1.14 g/litre respectively. Relative Global Warming Potential is 21 for CH 4 ; 310 for N 2 O. (A) From May 2011 to April 2012 There were 6 unleaded petroleum (ULP) powered passenger cars (namely BN3233, CR3293, CS3331, EK1321, EW3133 and NC8082) and 1 unleaded petroleum (ULP) powered private van (NP8958), consuming 18, litres and 3, litres in the reporting period, respectively. Business Environment Council Page 3 of 17 C2486

7 Passenger cars Total emissions of passenger cars = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions (in tonnes of CO 2-e ) CO 2 Emissions of passenger cars = Amount of fuel consumed x Emissions Factor of CO 2 = 18, x 2.36 / 1,000 = tonnes of CO 2-e CH 4 Emissions of passenger cars = Amount of fuel consumed x Emissions Factor of CH 4 x Relative Global Warming Potential (GWP) of CH 4 = 18, x / 1,000,000 x 21 = tonnes of CO 2-e N 2 O Emissions of passenger cars = Amount of fuel consumed x Emissions Factor of N 2 O x Relative Global Warming Potential (GWP) of N 2 O = 18, x / 1,000,000 x 310 = tonnes of CO 2-e Total Emissions of passenger cars = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions = = tonnes of CO 2-e (Corr. to 2 d.p.) Private van Total Emissions of private van = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions (in tonnes of CO 2-e ) CO 2 Emissions of private van = Amount of fuel consumed x Emissions Factor of CO 2 = 3, x 2.36 / 1,000 = tonnes of CO 2-e CH 4 Emissions of private van = Amount of fuel consumed x Emissions Factor of CH 4 x Relative Global Warming Potential (GWP) of CH 4 = 3, x / 1,000,000 x 21 = tonnes of CO 2-e Business Environment Council Page 4 of 17 C2486

8 N 2 O Emissions of private van = Amount of fuel consumed x Emissions Factor of N 2 O x Relative Global Warming Potential (GWP)of N 2 O = 3, x 1.14 / 1,000,000 x 310 = tonnes of CO 2-e Total Emissions of private van = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions = = 9.95 tonnes of CO 2-e (Corr. to 2 d.p.) Hence, the 6 passenger cars emitted tonnes of CO 2-e and the private van emitted 9.95 tonnes of CO 2-e. The total emission for vehicle use in the baseline year was tonnes of CO 2-e. (B) From May 2012 to April 2013 There were 5 unleaded petroleum (ULP) powered passenger cars (namely BN3233, CR3293, CS3331, EK1321 and NC8082) and 1 unleaded petroleum (ULP) powered private van (NP8958), consuming 14, litres and 3, litres in the reporting period, respectively. Passenger cars Total Emissions of passenger cars = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions (in tonnes of CO 2-e ) CO 2 Emissions of passenger cars = Amount of fuel consumed x Emissions Factor of CO 2 = 14, x 2.36 / 1,000 = tonnes of CO 2-e CH 4 Emissions of passenger cars = Amount of fuel consumed x Emissions Factor of CH 4 x Relative Global Warming Potential (GWP) of CH 4 = 14, x / 1,000,000 x 21 = tonnes of CO 2-e N 2 O Emissions of passenger cars = Amount of fuel consumed x Emissions Factor of N 2 O x Relative Global Warming Potential (GWP) of N 2 O = 14, x / 1,000,000 x 310 = tonnes of CO 2-e Business Environment Council Page 5 of 17 C2486

9 Total Emissions of passenger cars = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions = = tonnes of CO 2-e (Corr. to 2 d.p.) Private van Total Emissions of private van = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions (in tonnes of CO 2-e ) CO 2 Emissions of private van = Amount of fuel consumed x Emissions Factor of CO 2 = 3, x 2.36 / 1,000 = tonnes of CO 2-e CH 4 Emissions of private van = Amount of fuel consumed x Emissions Factor of CH 4 x Relative Global Warming Potential (GWP) of CH 4 = 3, x / 1,000,000 x 21 = tonnes of CO 2-e N 2 O Emissions of private van = Amount of fuel consumed x Emissions Factor of N 2 O x Relative Global Warming Potential (GWP)of N 2 O = 3, x 1.14 / 1,000,000 x 310 = tonnes of CO 2-e Total Emissions of private van = CO 2 Emissions + CH 4 Emissions + N 2 O Emissions = = tonnes of CO 2-e (Corr. to 2 d.p.) Hence, the 5 passenger cars emitted tonnes of CO 2-e and the private van emitted tonnes of CO 2-e. The total emission for vehicle use was summed at tonnes of CO 2-e in the audit year. Release of Refrigerants The Client did not have any refrigerants refilling actions in the reporting periods (i.e. May 2011 to April 2012 and May 2012 to April 2013). Hence, there were no relevant emissions in this aspect. Other GHG Fugitive Releases There were no records showing any GHG fugitive releases in the reporting periods (i.e. May 2011 to April 2012 and May 2012 to April 2013). Hence, there were no relevant emissions in this aspect. Business Environment Council Page 6 of 17 C2486

10 Tree Planting In accordance with available records maintained by the Client, no trees 1 were planted or removed within the physical boundary of the reporting entity. Total Scope 1 Emission (A) From May 2011 to April 2012 The total scope 1 emissions in the baseline year were tonnes of CO 2-e, with no removals of GHG emissions. (B) From May 2012 to April 2013 The total scope 1 emissions in the audit year were tonnes of CO 2-e, with no removals of GHG emissions. 4.2 Scope 2 - Energy Indirect Emissions Under this Scope, consumption of purchased electricity 2 and Towngas 3 were studied. In this report, the territory-wide default value emissions would be presented. Their corresponding consumptions were described as below: Purchase of Electricity from the CLP The equation for quantifying the GHG emissions is shown as follows: CO 2 Emissions of electricity purchased (in tonnes of CO 2-e ) = Amount of electricity consumed (in kwh) x Emissions Factor of CO 2 Where the territory-wide emission factor is 0.7 kg CO 2 -e/kwh 1 Trees are considered to be accountable GHG removal sources due to their capability of assimilating CO 2 into biomass. 2 Electricity is produced when fossil fuels are burned in stationary combustion units. GHGs are emitted directly through those stationary energy-generating units. These GHG emissions include carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (N 2 O). 3 Towngas is produced when naphtha, landfill gases and natural gas are burned in stationary combustion units. GHGs are emitted directly through those stationary energy-generating units. These GHG emissions include carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (N 2 O). Business Environment Council Page 7 of 17 C2486

11 (A) From May 2011 to April 2012 The electricity consumption in the reporting period was 215,869 kwh, accounting for an annual emission of tonnes of CO 2-e. CO 2 Emissions (in tonnes of CO 2-e ) = Amount of electricity consumed (in kwh) x Emissions Factor of CO 2 = 215,869 x 0.7 / 1,000 = tonnes of CO 2-e (Corr. to 2 d.p.) (B) From May 2012 to April 2013 The electricity consumption in the reporting period was 223,580 kwh, accounting for an annual emission of tonnes of CO 2-e. CO 2 Emissions (in tonnes of CO 2-e ) = Amount of electricity consumed (in kwh) x Emissions Factor of CO 2 = 223,580 x 0.7 / 1,000 = tonnes of CO 2-e (Corr. to 2 d.p.) Purchase from Towngas It was reported that no Towngas 4 was consumed during the reporting periods ( and ). Total Scope 2 Emission (A) From May 2011 to April 2012 The total scope 2 emissions in the baseline year were calculated to be tonnes of CO 2-e. (B) From May 2012 to April 2013 The total scope 2 emissions in the audit year were calculated to be tonnes of CO 2-e. 4.3 Scope 3 - Other Indirect Emissions GHG emissions from paper waste disposed at landfills GHGs (particularly methane) generated from organic carbon content of the paper waste decomposed at landfills are regarded as part of the indirect emission within the site boundaries. 4 GHGs emitted from the refinery of Towngas are regarded as indirect GHG emissions. Business Environment Council Page 8 of 17 C2486

12 The equation for quantifying the GHG emissions is shown as follows: Emissions due to Paper Waste Disposal at Landfill = (Initial amount of paper at stock in kg + Amount of additional paper purchased in kg Amount of paper recycled in kg Final amount of paper at stock in kg) x Emissions Factor of CO 2 Where the emission factor is 4.8 kg CO 2 -e/kg (A) From May 2011 to April 2012 According to the records provided by the Client, the Client purchased 9, kg of printing paper and recycled 1,021.5 kg of printing paper in As there were no available records of the opening and the closing stock, the amount at stock was set at zero. As a result, it was calculated that a total of 39.9 tonnes of CO 2-e was emitted. CO 2 Emissions due to Paper Waste Disposal at Landfill = (Initial amount of paper at stock in kg + Amount of additional paper purchased in kg Amount of paper recycled in kg Final amount of paper at stock in kg) x Emissions Factor of CO 2 = (0 + 9, , ) x 4.8 / 1,000 = tonnes of CO 2-e (Corr. to 2 d.p.) (B) From May 2012 to April 2013 According to the records provided by the Client, the Client purchased 9, kg printing paper and recycled 3, kg printing paper in As there were no available records of the opening and the closing stock, the amount at stock was set at zero. As a result, it was calculated that GHG emissions summed at tonnes of CO2-e. CO 2 Emissions due to Paper Waste Disposal at Landfill = (Initial amount of paper at stock in kg + Amount of additional paper purchased in kg Amount of paper recycled in kg Final amount of paper at stock in kg) x Emissions Factor = (0 + 9, , ) x 4.8 / 1,000 = tonnes of CO 2-e (Corr. to 2 d.p.) GHG emissions due to freshwater consumption and sewage treatment Although the indirect emissions from electricity used for fresh water processing by the Water Services Department and electricity used for sewage processing by the Drainage Services Department are listed as mandatory elements for Type II applicants of the Carbon Less Certificates Scheme, the Client has proposed to exclude both elements from its carbon inventory as: (1) the property management of the building was unable to provide a Business Environment Council Page 9 of 17 C2486

13 breakdown of water usage for the Client; and (2) freshwater consumption and sewage treatment from the Client s office operations 5 only made insignificant contributions to the Client s overall GHG footprint. From this point of view, it was revealed that such exclusion should be justified and accepted. The equation for quantifying the GHG emissions is shown as follows: CO 2 Emissions due to Fresh Water Consumption = Amount of fresh water consumed in m 3 x Emissions Factor Where the emission factor adopted in this report is kg CO 2 -e/m 3 The equation for quantifying the GHG emissions is shown as follows: CO 2 Emissions due to Sewage Processing = Amount of fresh water consumed in m 3 x Emissions Factor Where the emission factor adopted in this report is 0.17 kg CO 2 -e/m 3 Total Scope 3 Emissions (A) From May 2011 to April 2012 The total scope 3 emissions in the baseline year were calculated to be tonnes of CO 2-e. (B) From May 2012 to April 2013 The total scope 3 emissions in the audit year were calculated to be tonnes of CO 2-e. 5 Major source of water consumption within the office is pantries and washrooms. Business Environment Council Page 10 of 17 C2486

14 Summary and Comparison of GHG Emissions Summing up the net emissions from each Scope, the net total GHG emissions for the two periods of April 2011-May 2012 and April 2012-May 2013 are represented in Table 1 and 2, respectively: Table 1: Summary of GHG emissions from April 2011 to May 2012 (baseline year) Sources of Emissions Emissions in tonnes of CO2-e Percentage of CO2-e Emission Scope 1 Direct Emissions Stationary Combustion Sources % Mobile Combustion Sources % Refrigerant Emissions % Other Fugitive Release % Scope 1 Emissions Total % Scope 1 Direct Removals Planting of additional trees % Scope 1 Removal Total % Scope 2 Energy Indirect Emissions Total Electricity Purchased (Territory-wide emission factor is applied) % Towngas Purchased % Scope 2 Emissions Total % Scope 3 Other Indirect Emissions Electricity for Processing Fresh Water % Electricity for Processing Sewage % Methane Generation at Landfill due to Disposal of Paper Waste % Scope 3 Emissions Total % Total Scope 1 Emissions: Total Scope 2 Emissions: Total Scope 3 Emissions: Total GHG Removals: 0.00 Gross Emissions Net Emissions (subtract removals by trees) *All figures in the above table are rounded to 2 decimal places Business Environment Council Page 11 of 17 C2486

15 Figure 2: Percentage distribution of GHG emissions amongst the various scopes from May 2011 to April 2012 (baseline year) Percentage distribution of GHG emissions amongst the various scopes from May 2011 to April 2012 (baseline year) Total Scope 1 Emissions: Total Scope 3 Emissions: Total Scope 2 Emissions: Total GHG Removals: Total Scope 3 Emissions: 15.93% Total GHG Removals: 0.00% Total Scope 1 Emissions: 23.76% Total Scope 2 Emissions: 60.32% Business Environment Council Page 12 of 17 C2486

16 Table 2: Summary of GHG emissions from April 2012 to May 2013 (audit year) Sources of Emissions Emissions in tonnes of CO2-e Percentage of CO2-e Emission Scope 1 Direct Emissions Stationary Combustion Sources % Mobile Combustion Sources % Refrigerant Emissions % Other Fugitive Release % Scope 1 Emissions Total % Scope 1 Direct Removals Planting of additional trees % Scope 1 Removal Total % Scope 2 Energy Indirect Emissions Total Electricity Purchased (Territory-wide emission factor is applied) % Towngas Purchased % Scope 2 Emissions Total % Scope 3 Other Indirect Emissions Electricity for Processing Fresh Water % Electricity for Processing Sewage % Methane Generation at Landfill due to Disposal of Paper Waste % Scope 3 Emissions Total % Total Scope 1 Emissions: Total Scope 2 Emissions: Total Scope 3 Emissions: Total GHG Removals: 0.00 Gross Emissions Net Emissions (subtract removals by trees) *All figures in the above table are rounded to 2 decimal places Business Environment Council Page 13 of 17 C2486

17 Figure 3: Percentage distribution of GHG emissions amongst the various scopes from May 2011 to April 2012 (audit year) Percentage distribution of GHG emissions amongst the various scopes from May 2011 to April 2012 (audit year) Total Scope 1 Emissions: Total Scope 2 Emissions: Total Scope 3 Emissions: Total GHG Removals: Total Scope 3 Emissions: 11.98% Total GHG Removals: 0.00% Total Scope 1 Emissions: 21.68% Total Scope 2 Emissions: 66.33% 5 CONCLUSION Based on the audit findings and the information provided by the Client, it is concluded that the Client s GHG emissions have been decreased by 5.82%, from tonnes of CO 2-e during May April 2012 to tonnes of CO 2-e during May April Table 3: Comparison of GHG emissions between the baseline and audit years Scope Baseline Year Audit Year Percentage (May 2011-April 2012) (May April 2013) Change Scope 1 Emissions (Net) (unit: tonnes of CO 2 -e) % Scope 2 Emissions (unit: tonnes of CO 2 -e) % Scope 3 Emissions (unit: tonnes of CO 2 -e) % Net Total GHG Emissions (unit: tonnes of CO 2 -e) % Business Environment Council Page 14 of 17 C2486

18 6 DISCUSSION 6.1 GHG Reduction Programmes / Initiatives (i) (ii) (iii) (iv) (v) (vi) The Client had reduced 1 company vehicle, leading to a 14.04% reduction regarding scope 1 emissions. The Client had appointed a paper recycling service provider to collect and recycle their paper waste. By doing this, they had significantly decreased the scope 3 emissions. The Client had put reminder labels to remind staff members to turn off electrical appliances after use. The Client had deployed light zoning and delamping (i.e. removal of excessive fluorescence tubes in certain areas). The Client had purchased electrical appliances (e.g. photocopying machines, refrigerator, and water boiler) with EMSD Energy Labels. The Client had installed thermometers in the office as a reference. This is intended to keep the optimum room temperature between 24 C to 26 o C. Label reminders Delamping Printer with EMSD energy label Refrigerator with EMSD grade 1 energy label Business Environment Council Page 15 of 17 C2486

19 Thermometer in office 6.2 Areas for Improvement (i) (ii) (iii) (iv) The Client could consider replacing T8 fluorescent tubes, incandescent bulbs and halogen spotlights by other energy saving alternatives (e.g. T5 fluorescent tubes, compact fluorescent lamps (CFLs), LED spotlights, etc.). The Client could consider to extend the level of delamping (e.g. some corridor areas still have the potential to further reduce the numbers of lighting source). The Client could consider to enhance paper recycling by increasing the number of recycling bins or reducing the number of trash bins in office. The Client could consider using cloud computing technology to reduce server's space occupancy, which in turns reduced electricity consumption. Use of tungsten light bulb in meeting room Suggested areas for delamping Business Environment Council Page 16 of 17 C2486

20 Paper waste found in trash bin Extensive use of halogen spotlights in reception area Extensive use of T8 fluorescent tubes Server room (potential for hardware virtualisation) Appendix A Detailed calculation of GHG emissions in May 2011-April 2012 (Baseline Year) Appendix B Detailed calculation of GHG emissions in May 2012-April 2013 (Audit Year) Business Environment Council Page 17 of 17 C2486

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