Product Carbon Footprint. Decorative Coating Wildspitze. July climatepartner.com Athens Eriwan Munich San Francisco Tokyo Vienna Zurich

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1 Product Carbon Footprint Decorative Coating Wildspitze July 2015 climatepartner.com Athens Eriwan Munich San Francisco Tokyo Vienna Zurich

2 About In 2012 after three years of intensive research and development Martin Jehart and Christoph Egger founded the company, in Tyrol. Organoid Technologies only uses natural and authentic raw materials. This begins with the use of a 100% green electricity and ends with biological binders that are free of biocides, plasticizers and solvents. About ClimatePartner ClimatePartner was founded in We are a climate protection consultancy with headquarters in Munich and associated companies and partners in the USA, Japan, Austria, Greece, and Armenia. ClimatePartner delivers individual climate protection solutions for more than 1,000 customers from all over the world, mainly consisting of large and medium-sized companies. This climate protection consultancy is certified by the technical inspection authority (TÜV) as a provider of online-based carbon accounting and offsetting. ClimatePartner works closely with environmental organizations and is a member in various international committees. Organoid Technolgies GmbH Product Carbon Footprint Page I

3 Content 1 Introduction Product Carbon Footprint Decorative coating Wildspitze Delivery Materials Production Results Conclusion & Outlook List of references Annex The principle of climate neutrality Procedure & Methodology Reporting Standard Process Steps Goal Definition of boundaries... 9 Imprint...10 Organoid Technolgies GmbH Product Carbon Footprint Page II

4 1 Introduction ClimatePartner Austria GmbH ("ClimatePartner") was commissioned by Organoid Technologies GmbH to determine a Product Carbon Footprint ( PCF ) for the decorative coating plate Wildspitze. The report provides an overview of all greenhouse gas emissions caused by the production of one m² product. ClimatePartner calculated total emissions of 1.05 kg CO 2 for one m² product. The product carbon footprint is an important milestone for the development of a climate change strategy. By analyzing the product emissions, it is possible to find reduction potential as well as to identify measures to reduce the emissions and to set climate protection goals for the future. In the following sections, the procedure and methodology for the creation of the PCF is explained; then the results will be discussed. At the end of the report, the principle of climate neutrality and the ability to offset carbon emissions through carbon credits are explained. In conclusion, the results are summarized, and recommendations for future activities in climate protection are provided. 2 Product Carbon Footprint The Product Carbon Footprint considers all emissions along the entire life cycle of a product. Therefore we can choose between the cradle-to-gate approach and the cradle-tograve approach. Cradle-to-gate considers all emissions (incl. pre-production processes) until the gate of the production site. By using the cradle-to-grave approach all pre- and post-production processes are included in the calculation. Both approaches consider the own value (incl. all company related emissions) as well as the product related emissions, see figure 1. Upstream Emissions raw materials company realted emissions heating vehicle fleet cooling agent office paper own value external service provider business trips commuting employees Downstream Emissions distribution transport Production utilisation energy process heat preproduction product related emissions disposal cradle-to-gate cradle-to-grave Figure 1: system boundaries product carbon footprint Page 1

5 2.1 Decorative coating Wildspitze Figure 2, shows all the necessary production steps for the manufacture of the decorative coating Wildspitze. This breaks down as follows: delivery, materials and production. Figure 2: production steps decorative coating Wildspitze Following the different issues will be discussed in detail Delivery The delivery of the different materials from the particular supplier to the production site, in Fließ, causes emissions in the amount of 0.12 kg CO 2 per m 2 decorative coating Wildspitze. At the delivery, the supply of the binder over a distance of 690 km causes the most emissions (kg CO 2 per tkm) Materials only uses ecological materials to produce the different decorative coatings. Wildspitze consist of the following materials: - Carrier board - Binder - Hay Due to the usage of these materials (excluding the carrier board) emissions in the amount of 0.86 kg CO 2 arise per m² decorative coating Wildspitze. This is because of the chemical composition of the binder and the resulting specific emission factor. Page 2

6 2.1.3 Production To run the different engine at the production of Organoid Technologies they exclusively use green electricity. Per manufactured m² of the decorative coating Wildspitze 7.4 kilowatt-hour of electricity are necessary. Thereby emissions at the amount of 0.07 kg CO 2 arise. 2.2 Results Table 1 shows the breakdown of the separate balance sheet items. With regards to the total CO 2 -Balance per m 2 product, the materials with 81.44% causes more than half of all emissions, followed by the delivery with 11.61% and the production with 6.95%. The total decorative coating (~ 4m²) arise emissions in the amount of 4.24 kg CO 2. Table 1: Product Carbon Footprint per m² product Product Carbon Footprint per m² Product Delivery 0.12 kg CO % Materials 0.86 kg CO % Production 0.07 kg CO % TOTOAL 1.05 kg CO % Table 2: CO 2 -Balance decorative coating Wildspitze Product Carbon Footprint Decorative Coating Wildspitz Delivery 0.49 kg CO % Materials 3.46 kg CO % Production 0.29 kg CO % TOTAL 4.24 kg CO % Page 3

7 3 Conclusion & Outlook The organoid Technologies GmbH is aware of its responsibility towards people and nature and consciously goes with this CO 2 balance another important step towards climate protection. The analysis of the product carbon footprint enables the focusing on the major emitters and how to avoid and reduce product related CO 2 -Emissions. In general, the positive impact of. should be emphasized in terms of sustainability and environmental practices. With total emissions of 1.05 kg CO 2 per m² decorative coating Wildspitze the impact on the climate is to evaluate as very low. One possibility to reduce the carbon footprint could for example be, to choose suppliers for the carrier board and the binder in the closer vicinity. Thus the transport emissions can be reduced significant. The offsetting of the product CO 2 emissions could be another step. ClimatePartner offers an extensive portfolio of climate change projects, which according to internationally recognized standards ( VER, Gold Standard, etc. ) (for further information please refer to the certified Appendix ). Page 4

8 4 List of references BAFU 2012 ecoinvent centre 2012 Greenhouse Gas Protocol 2004 Treibhausgas-Emissionen der Schweizer Strommixe, v.14, Uster 2012 ecoinvent data 3.1, Swiss Centre for Life Cycle Inventories, Dübendorf, 2012, The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition, World Resources Institute and World Business Council for Sustainable Development, Washington, 2004 Page 5

9 5 Annex 6 The principle of climate neutrality The term climate neutral refers to companies, processes, or products whose unavoidable carbon emissions have been calculated and offset by buying carbon credits. The mechanism of carbon offsetting is based on the fact that greenhouse gases disperse equally in the atmosphere, which means that the greenhouse gas concentration is approximately equal everywhere in the world. Therefore, it is irrelevant for global greenhouse gas concentration and the greenhouse effect where in the world greenhouse gas emissions are caused or avoided. Greenhouse gas emissions that cannot be avoided locally can be mathematically offset by additional climate protection activities elsewhere. This compensation results from carbon offset projects (see Box 1). Carbon offset projects have to comply with internationally approved standards und must be certified accordingly. The following criteria are the most important ones. Additionality: It must be certified that a project is only implemented because of additional funding through emission trading. This means that the project has to be dependent on earnings from emission trading to cover its financing needs. Exclusion of double counting: It must be certified that the saved carbon emissions are counted only once (for the owner of the carbon credits). That means that carbon credits are only allowed to be sold once and have to be abandoned afterwards. Constancy: The emission savings must take place permanently, e.g. carbon sequestration in forests has to be long term. Reforested land that is reconverted into a meadow by slash and burn after a few years must not emit carbon credits. Periodic review by independent third parties: Carbon offset projects must be reviewed regularly on the basis of all mentioned criteria by independent third parties. During this audit, the actual amount of emission savings is determined retrospectively. The principle of offsetting carbon emissions originates from the flexible mechanisms of the Kyoto Protocol Clean Development Mechanism (CDM) and Joint Implementation (JI). For emerging and developing countries, these mechanisms are an essential driving force for transferring clean technologies and sustainability-oriented economic development. Besides the mandatory emission trading (e.g. EU emission trading), which resulted directly from requirements of the Kyoto Protocol, a voluntary carbon market has developed. The voluntary carbon market addresses companies, organizations, and private persons which are not committed to an obligatory emission reduction. To offset carbon emissions, there are carbon credits from voluntary and mandatory emission trading. It is important that only carbon credits from projects that conform to international standards and that have been certified by an independent party are used to offset carbon emissions. In addition to offsetting the calculated carbon emissions, it is important for an authentic dedication to climate protection dedication to reduce and avoid carbon emissions as far as is economically possible and reasonable. Offsetting carbon emissions is a substantial component of an integrated climate protection strategy, which can especially be complemented by using renewable energy and implementing measures to improve energy efficiency and energy-saving behaviors. Page 6

10 Box 1: Practical example of a carbon offset project In the development of a carbon offset project, the carbon emission savings are calculated using a so-called baseline scenario. This takes the actual conditions on-site as a basis. For example, if a wind farm is to be built in New Caledonia, the carbon emission savings are calculated on the basis of the average emission factor for electricity generation in New Caledonia (e.g., 900 kg of CO 2 per MWh) and the expected annual power generation of the wind farm (e.g. 10,000 MWh). Based on the expected power generation and the average emission factor, the annual reduction in this example is approximately 9,000 tons of carbon dioxide. The operating time of a carbon offset project defines the unit of time in which carbon credits can be generated. Operating time usually amounts to seven to ten years, although the plant s running time normally extends beyond this. With an operating time of 10 years, as in the example, carbon emission savings result in a total of 90,000 tons CO 2 that can be traded as carbon credits. Page 7

11 7 Procedure & Methodology 7.1 Reporting Standard The Corporate Carbon Footprint was generated according to the internationally approved guidelines in the Greenhouse Gas Protocol 1 (GHG Protocol) for accounting and reporting companies greenhouse gas emissions. The GHG Protocol is the established international standard for greenhouse gas accounting on the corporate level. It defines five fundamental principles for the calculation of Carbon Footprints: Relevance: The principle of relevance requires that all major emission sources be considered in developing a company s carbon footprint. Completeness: The principle of completeness means that all relevant emission sources within the boundaries 2 must be respected. Consistency: To permit the comparison of outcomes over time, accounting methods and boundaries have to be adhered to and maintained in the following years. Any changes in methodology and boundaries must be mentioned and justified. Accuracy: Distortions and uncertainties should be reduced as much as possible so that the results offer a solid basis for decisions. Transparency: The results should be presented in a transparent and comprehensible manner. 7.2 Process Steps The following steps are necessary to create a Carbon Footprint: 1. Goal definition 2. Definition of boundaries 3. Data collection 4. Calculation of the Carbon Footprint 5. Documentation of results In the following sections steps 1-3 are presented; the results of steps 4-5 are described in the subsequent chapter Goal The goal of the Corporate Carbon Footprint of the Vitalpina Wanderhotel Icaro is to quantify the 2011 carbon emissions by source and to compare them with the previous year s emissions. Subsequently a strategy for avoiding and reducting carbon emissions can be developed with clear reduction goals in mind for the future. At the same time, the Corporate Carbon Footprint is the basis for offsetting emissions that have been caused in the past (and are therefore unavoidable) by supporting internationally recognized carbon offset projects. 1 Based on Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, cf. Greenhouse Gas Protocol (2004). 2 The GHG Protocol differentiates between organizational und operational boundaries, see Page 8

12 7.2.2 Definition of boundaries Carbon accounting based on the GHG Protocol requires a clear determination of boundaries for the Carbon Footprint. This includes organizational and operational boundaries: a) Organizational boundaries The organizational boundaries describe the organizational unit and the timeframe to which the Corporate Carbon Footprint refers. The organizational unit is in this case the Vitalpina Wanderhotel Icaro has been chosen as the timeframe. b) Operational boundaries The operational boundaries describe the emission sources that are considered within the organizational boundaries. For the classification of different emission sources, the GHG Protocol differentiates between three categories ( scopes ), which are the basis of each Corporate Carbon Footprint: Scope 1: Scope 1 includes all carbon emissions that can be directly managed by the accounting corporation (direct carbon emissions). This includes the combustion of fossil fuels (mobile and stationary), carbon emissions of chemical and physical processes, and the leakage of refrigerants from air conditioning systems. Scope 2: Scope 2 represents indirect carbon emissions. All emissions that are caused by fossil fuel combustion by external energy providers are listed here. By reporting these emissions in a separate category, double counting can be avoided when carbon emissions of different companies are compared. Scope 3: All remaining carbon emissions, which are not under the direct control of the company, belong to scope 3 (other indirect carbon emissions). This includes all carbon emissions that are related to products and services used or processed by the accounting corporation. Carbon emissions that are associated with the use of sold products and services are also included, if no direct carbon emissions are caused. Page 9

13 Imprint Publisher Nesselgarten Fließ Phone: +43 (0) 650 / info@organoids.at Contractor ClimatePartner Austria GmbH Schwindgasse Wien Phone: +43 (0) 1 / Fax +43 (0) 1 / info@climatepartner.com Version July 2015 Copyright The referenced editors and the own the copyright. The duplication (in parts or the whole document) requires the written permission of the copyright holder.