Holistic environmental accounting for businesses - Efficiently addressing the upstream value chains through life cycle based information

Transcription

1 Holistic environmental accounting for businesses - Efficiently addressing the upstream value chains through life cycle based information Christian Solli* a, Hogne N. Larsen, Camilla Haugsten b, Edvard S. Stendal b a MiSA AS, Beddingen 14, NO-7014 Trondheim, Norway * Corresponding author, christian@misa.no B Entra Eiendom AS

2 2 Outline Introduction - Research areas - Motivation of work Presentation of work - Methods - Presentation of results from case-study Conclusion - Key findings - Further work

3 Research areas 3 - Most important areas of work: - Life Cycle Assessment (LCA) of products, such as: - Agriculture - High speed rail - Drilling operations - Wind power - GHG inventories of entities: - Municipalities - Counties - Other public entities - Companies and organizations Other assessments include: Energy assessments: biogas, district heating, heat-pumps Material LCA: metals, concrete, EPS boxes, etc 17/04/2012 Larsen et al. Technoport 2012: Supply Chain Management

4 4 Motivation for work Focus on business-level important because: - Strong focus on the sub-national level after the weakening of the Kyoto-based framework - Environmental performance of both products and businesses are being asked for (e.g. public green procurement strategies). - Integration with environmental management systems Focus on life cycle perspective important because - Studies show a large fraction of the footprint in upstream activities - Ensures a correct assessment not influenced by structural differences of businesses, outsourcing of responsibilities, etc. Need to direct efforts to the most important areas - Avoid ad-hoc focus on certain convenient, but perhaps less important symbolic areas (e.g. paper use) Case Entra Eiendom AS - Large state-owned real-estate company - Papirbredden property test case for method

5 5 Methods for calculating life cycle impacts (Process based) Life Cycle Assessment Procedure for calculating all impacts from cradle to grave Product (function) focus Standardized in ISO and Bottom up, based on physical data PROs: High specificity and accuracy Able to evaluate actions Well-known method Wide range of pollutants and impacts CONs: Less practical for entities with thousands of different inputs Often cut-off of services

6 6 Methods continued Environmentally extended input-output analysis Procedure for calculating embodied emissions Based on tables of trade between economic sectors, combined with sectoral emissions data Developed by economist Wassily Leontief in late 60s. Has become the preferred method to calculate embodied and consumption based emissions at a national level ( Top-down, based on economic data PROs: Completeness, no cut-offs (in principle) Quick and efficient, follows standard structures and nomenclature from economics Benchmarking against sector average(s) or across divisions relatively easy to implement consistently CONs: Relatively crude and aggregated approach compared to (process based) LCA Less pollutants/impacts covered by most models Less able to evaluate actions (used alone) Less well-known to the general public EE-IOA is chosen as the base framework for the analysis Uses already existing information in the companies (accounts data) = efficient Allocates emissions in the organization based on the same structure as the company accounts Better for capturing all emissions, getting the overview Later improvement with LCA data on identified important areas

7 7 Procedure Development of Norwegian input-output model for 2007 All imports assumed produced with German technology (simplification). Company accounts for papirbredden from Entra eiendom Matching of account codes with economic sectors in the model Correcting for trade- and transport margins = Model for calculating emissions (GHGs in this case) from Entra using their internal accounting system. Klimakost originally developed for municipalities Applied only to a part of the Entra enitity, the property papirbredden in Drammen.

8 Systems overview 8 Real estate sector total Entra eiendom AS. Other real estate Papirbredden.. Other Entra Grønland 56 Grønland 58 Grønland 60 Other X X X X X X X X X X X Infinite number of upstream paths, covering all indirect emissions for purchases to Papirbredden

9 Results (GHG only) Case-study: Papirbredden, Drammen - Investigating the complete carbon footprint of a property using the EE- IOA* based model Klimakost Energy Infrastructure Management Detail Level 1 *Environmentally Extended Input-Output Analysis: Direct and indirect emissions that result from a given demand of products or services can be calculated given the combination of economic transaction statistics between different economic sectors and emissions from these sectors. Detail Level 2

10 Sektorer i Klimakostmodellen Agriculture, hunting and related service activities Forestry, logging and related service activities Fishing, operating of fish hatcheries, fish farms Mining of coal and lignite; extraction of peat Extraction of crude petroleum and natural gas Mining of uranium and thorium ores Mining of metal ores Other mining and quarrying Manufacture of food products and beverages Manufacture of tobacco products Manufacture of textiles Manufacture of wearing apparel Tanning and dressing of leather Manufacture of wood and of products of wood Manufacture of pulp, paper and paper products Publishing, printing, rep. of recorded media Manufacture of coke, refined petroleum products Manufacture of chemicals and chemical products Manufacture of rubber and plastic products Manufacture of other non-met. mineral products Manufacture of basic metals Manufacture of fabricated metal products Manufacture of machinery and equipment n.e.c. Manufacture of office machinery and computers Manufacture of el. machinery and apparatus n.e.c. Manufacture of radio, tv and com. equipment Manufacture of medical, precision, optical instr. Manufacture of motor vehicles, trailers Manufacture of other transport equipment Manufacture of furniture; manufacturing nec. Recycling Electricity, gas, steam and hot water supply Collection, purification, distribution of water Construction Sale, maintenance, repair of motor vehi, fuel Wholesale trade and commission trade Retail trade; rep. of pers. and househ. goods Hotels and restaurants Land transport; transport via pipelines Water transport Air transport Supporting and auxiliary transport activities Post and telecommunications Financial intermediation Insurance and pension funding, Activities auxiliary to financial intermediation Real estate activities Renting of machinery and equipment Computer and related activities Research and development Other business activities Public administration and defence Education Health and social work Sewage and refuse disposal, sanitation Activities of membership organization n.e.c. Recreational, cultural and sporting activities Other service activities Real estate and construction both important purchasers of goods and services 3% 3% 2% 3% 2% 2% 3% 2% 1% 4% 4% 1% 1% 1% 1% 1%1% 4% 1% 1%1% 4% 5% 5% 10% Figure: industry sectors ranked by amount of purchases made 5% 5% 6% 6% Construction Real estate activities Food and bewrages

11 The Carbon Footprint of a property consists of three main parts! Energi Energy Infrastructure Bygg 39% 1030 tonn CO 2 ekv. 33% Management/ Drift operation ex energy 29%

12 Detail level 1: EE-IOA well aimed to cover the wide variety of purchases and activities Nedskriving, driftsmidler Vedlikehold Energi Forbruk, rekv., småutstyr 23% Forbruk, møte og mat Forbruk; reiser og diett Bygg Forbruk; generelt Renhold, VA, m.m. Finansielt Tjenester Drift Andre kostnader 38% 39% 298 tonn CO ekv. tonn CO 2 ekv. 12% 29% 4% 33% 10% 10% 2 % < 1%

13 Detail level 2: Details only limited by the number of sectors in the financial accounts Løpende vedlikehold bygg Nedskriving, driftsmidler Løpende vedlikehold elektro Vedlikehold Løp.vedlh. brannrel anl/utst Forbruk, rekv., småutstyr Vedl.hold/utskift.utv.tekn.anl Løp.vedlh varme/kulde/ventilas Forbruk, møte og mat Utskiftn.deler av tekn. anlegg Forbruk; reiser og diett Snømåking, strøing/salting Forbruk; generelt Løp.vedlh varme/kulde/ventilas Vedlikehold/utskifting dekker Renhold, VA, m.m. Løp.vedlh fellesar./funksjon Finansielt Feiing og renhold utearealer Tjenester Løpende vedlikehold rør 38% 35% 12% 3% 23% 298 tonn 36 tonn CO 2 ekv. CO 2 ekv. 4% 4% 4% 10% 10% 5% 5% 6% 6% < 1% Vedlikehold/utskifting dekker Andre kostnader Annen løpende ombygg. 30% 2 % Drift/tekniske utendørsanlegg

14 14 Key findings from case study Energy (assuming Nordic electricity mix) very important (not so surprising) Construction (including everything, not just the materials..) of the buildings equally important (more surprising) Remaining operation responsible for about 1/3 of the GHG impact each (this includes maintenance, cleaning, financial services etc.)

15 15 Key findings continued Crude coverage of construction of the buildings suggests more detail on the construction part needed (this also implies the energy demand characteristics) Supporting activities as well as a significant portion of the building construction would have been significantly under-estimated using a pure physical model This is probably even more pronounced in other sectors

16 Further work 16 Real estate sector total Entra eiendom AS. Other real estate Papirbredden.. Other Entra Grønland 56 Grønland 58 Grønland 60 Other X X X X X X X X X X X Infinite number of upstream paths, covering all indirect emissions for purchases to Papirbredden

17 Further work 17 Real estate sector total Entra eiendom AS. Other real estate Papirbredden.. Other Entra Grønland 56 Grønland 58 Grønland 60 Other X X X X X X X X X X X Infinite number of upstream paths, covering all indirect emissions for purchases to Papirbredden

18 Further work 18 Real estate sector total Identified value chains are: -Important in terms of environmental impact -Candidates Entra eiendom for action-/improvement AS. plans Other real estate -Less well covered by the existing methods Papirbredden.. Other Entra Grønland 56 Grønland 58 Grønland 60 Other X X X X X X X X X X X Infinite number of upstream paths, covering all indirect emissions for purchases to Papirbredden

19 Further work 19 Hybrid framework EE-IOA based model Real estate sector total LCA based model(s) Grønland 56 Grønland 58 Grønland 60 Other Entra eiendom AS. Other real estate X X X X X X X X X X X Papirbredde n.. Other Entra Grønla nd 56 Grønla nd 58 Grønla nd 60 Other X X X X X X X X X X X Bulding LCA models Energy solutions LCA models Infinite number of upstream paths, covering all indirect emissions for purchases to Papirbredden Waste management models Etc

20 20 Further work Develop the physical LCA models further Ability to track changes and assess typical alternatives for the chosen areas (e.g. energy solutions, construction alternatives etc.) More impacts covered Benchmarking Develop aggregated environmental indicators (global warming is not the only environmental problem!) Develop KPIs that are useful for the businesses at different organizational levels Reliable tracking of performance over time Automation and connection to common software tools Updating procedures Connection to management systems and scoring systems (eg BREEAM)

21 Thank you! Questions? a systems perspective to environmental research and consulting