Turning Carbon Footprint Certification into Competitive Advantage UK case studies

Size: px

Start display at page:

Download "Turning Carbon Footprint Certification into Competitive Advantage UK case studies"

Jerome Walsh
6 years ago
Views:

1 Turning Carbon Footprint Certification into Competitive Advantage UK case studies Jan Van der Ven Director, Asia The Carbon Trust Kuala Lumpur, May 8, 2012

2 Agenda About the Carbon Trust UK emissions accounting: political and legal context Consumer & corporate attitudes towards carbon footprint Labels and certificates Competitive advantage 2

3 Our mission is to accelerate the move to a low carbon economy 3 3

4 Our activities span multiple areas Specialist advice and finance Standards and accreditation Investing in early stage low carbon companies

5 We deliver tangible results We have: Helped our customers cut 30 Mt CO 2 Established the Carbon Trust Standard and Carbon Reduction Label Pioneered energy efficiency loans: 71m interest-free loans Launched 350 million fund for low carbon refurbishments 3bn in energy cost savings for our customers since 2001

6 Agenda About the Carbon Trust UK emissions accounting: political and legal context Consumer & corporate attitudes towards carbon footprint Labels and certificates Competitive advantage 6

7 Climate Change Act 2008 Unilateral, legally binding emissions reduction targets The world s first long-term national legal framework to tackle climate change, in full compliance with the Kyoto Protocol Reducing by at least 34% by 2020 and at least 80% by 2050 Carbon budgets cover five-year periods, with three budgets set at a time.

Consumption-based emissions reporting is gaining traction The rate at which the UK s consumption-based emissions have increased have far offset any emissions savings from the decrease in territorial

8 Consumption-based emissions reporting is gaining traction The rate at which the UK s consumption-based emissions have increased have far offset any emissions savings from the decrease in territorial emissions. This means that the UK is contributing to a net increase in global emissions. The Government s independent climate adviser would welcome the opportunity to explore the implications that consumptionbased emissions accounting might have for the UK s carbon budgets. The Government should take them up on this offer. 8

9 Consumption minus territorial emissions, Source: UK Energy Research Centre (UKERC) 9

10 UK consumption emissions by country of origin (2004) Source: Barrett J, Owen A, Sakai M (2011) UK Consumption Emissions by Sector and Origin, Report to the UK Department for Environment, Food and Rural Affairs by University of Leeds. Defra, London. 10

11 The world s CO2 flows are aligned with flows of goods and commodities Total Flows (GtCO 2 ) % 3% 4% 4% 4% 4% 5% 6% Other 2004 Data 10. Europe to North America 9. Rest of Asia to North America 8. Africa to Europe 7. China to Japan 6. North America to Europe 5. Rest of Asia to Europe 4. Russia to Europe % 3. China to Rest of Asia 0.6 8% 2. China to Europe 0.4 ~50% of the carbon flows are in commodities and ~50% in products % 1. China to North America Note: Rest of Asia excludes China, Japan and India Data includes flow of Scope 1-3 (direct, indirect and upstream) emissions arising in region of export that are embodied in trade flows to the region of import Source: Carbon Trust Analysis; CICERO / SEI / CMU GTAP7 EEBT Model 11

12 By 2025, the UK s imports could have as much carbon embodied as its domestic production Emissions (MtCO 2 ) 1, % 17% 25% 31% 36% 43% 49% (7%) (20%) (34%) (42-45%) (50-56%) (61-74%) (73-96%) Consumption (low decarbonisation world) 1.0% Consumption (high decarbonisation world) 0.7% Net imports CAGR (92-25) 7-8% Production (0.9%) Note 1: Declining UK production emissions based on CO 2 reduction involved in UK achieving 2020 carbon budget for CO 2 e reduction of 34% vs 1990 levels (Committee on Climate Change) Note 2: Growth in imported emissions based on continuation of historic growth in UK trade balance, and varying degrees of decarbonisation in the exporting countries. In the high world decarbonisation scenario it is assumed that the emissions intensity of exports from Brazil, Russia, India and China (BRIC nations) decline in line with the targets noted in the Copenhagen Accord (2009), that exports from the EU and other Annex I nations decline in line with the EU s target to reduce emissions by 20% from , and that exports from the rest of the world achieve decarbonisation of the order of half that achieve in the BRIC countries. In the low decarbonisation scenario is assumed that the EU hits its targets as stated in the high decarbonisation scenario, that all other Annex I nations and the BRIC nations achieve half the level of decarbonisation as in the high decarbonisation scenario, and that the rest of the world does not decarbonise at all Source: Carbon Trust Analysis 12

13 Agenda About the Carbon Trust UK emissions accounting: political and legal context Consumer & corporate attitudes towards carbon footprint Labels and certificates Competitive advantage 13

impact quantified by an independent organization

14 Consumer carbon consciousness is growing around the world I would like to see companies' carbon impact quantified by an independent organization Source: Carbon Trust Gen Y research, March

proof of their policy to reduce carbon footprint

15 Consumer carbon consciousness is growing around the world Companies should be obliged to provide proof of their policy to reduce carbon footprint Source: Carbon Trust Gen Y research, March

16 Consumer carbon consciousness is growing around the world I would be more loyal to a brand if I could see it was reducing its carbon footprint Source: Carbon Trust Gen Y research, March

17 Some people have suggested that everyone should have a personal Carbon Budget...Which of the following best describes your views on this idea? Great idea Good idea, I d use it Good idea, wouldn t use it Not worried 14% 39% 27% 20% 14% 42% 27% 17% 27% 51% 16% 5% 21% 44% 26% 9% 26% 48% 20% 6% 20% 51% 23% 6%

18 Multinationals listen to consumers Over the next two years, approximately 50% of multinationals say they will assess the lifecycle emissions of the products they buy A majority state they would be prepared to source products from a different country if this reduced carbon emissions Source: Carbon Trust research

19 Agenda About the Carbon Trust UK emissions accounting: political and legal context Consumer & corporate attitudes towards carbon footprint Labels and certificates Competitive advantage 19

20 PAS = Publicly Available Specification 20

21 PAS 2050 is the world s first published standard PAS 2050 WRI/WBCSD ISO EU Methodology = published = review published Sustainability Consortium 21

22 Product carbon footprint certification provides multiple benefits Certify greenhouse gas emissions of products and services for all stages of the value chain (to PAS 2050; Code of Good Practice; Footprint Expert) Enable low-risk communication of the results to customers Provide comparability over your product range Identify and understand carbon hotspots in your supply chain Raw material Product manufacturing Distribution & retail Consumer use Disposal & recycling 22

23 The Carbon Reduction Label informs consumers

24 and can be used in more than one way On pack Point of sale Online Sales literature Press release 24

25 The Carbon Reduction Label is licensed in 19 countries Over 5,700 products Sales ~ 3 billion / year 25

26 Agenda About the Carbon Trust UK emissions accounting: political and legal context Consumer & corporate attitudes towards carbon footprint Labels and certificates Competitive advantage 26

Consumer goods: Walkers Products: Assorted single-packet crisps Outcome: Identified that 59% of carbon emissions were outside their operations and 41%

27 Consumer goods: Walkers Products: Assorted single-packet crisps Outcome: Identified that 59% of carbon emissions were outside their operations and 41% inside Reduction: Recertified footprint shows 7% reduction on 2007 footprint Highlights: Saved 400,000; reinvested in further carbon-saving initiatives 27

end users Highlights: Key part of continued commitment to reduce emissions of

28 TESCO Products: Over 500 own-brand products Outcome: Providing consumers with lowcarbon purchasing choices Identifying energy and money saving actions for end users Highlights: Key part of continued commitment to reduce emissions of products by 30% and to help customers reduce their own footprints by 50% by

29 SodaStream Products: Fizz Home DrinksMaker, and Cola and Diet Cola flavoured syrups sold in 12 countries around the world. Outcome: SodaStream used a methodology consistent with equivalent pre-packaged soda s allowing them to make reliable footprint comparisons. Highlights: This comparison found that SodaStreams sparkling water, cola and diet cola made with their home Fizz drinkmaker and flavoured syrups are between 65% - 80% lower than the average carbon footprint of a store bought equivalent beverage sold in a plastic (PET) bottle. Assessing the carbon footprint of our products is an important milestone for SodaStream and provides high quality reassurance to our customers that they really are doing their bit for the environment when they buy our products. - Fiona Hope, Managing Director of SodaStream UK 29

Suzano Papel E Cellulose Products: 30 Pulp, paper and office paper products Outcome: The work helped Suzano get a more complete picture of their operations and identify where they could reduce their

30 Suzano Papel E Cellulose Products: 30 Pulp, paper and office paper products Outcome: The work helped Suzano get a more complete picture of their operations and identify where they could reduce their carbon emissions. Through this work, it was discovered that for office paper the distribution, printing/copying and disposal is just as relevant as the production of the paper. Highlights: The first office paper products globally to achieve and be awarded twice the Carbon Reduction Label certification. The results of the first certification were so well received both internally and publicly that Suzano quickly returned to carry out a more a extensive project. We foresaw that this project was to be a breakthrough in the pulp business, but we didn t expect the results to come so fast. If Suzano s work is being acknowledged, it is because everyone involved did a great job with the Carbon Trust playing a critical role. - João Comério, Forestry Business Unit Executive Director, Suzano Pulp and Paper

Danone UK Products: Actimel plastic bottle Outcome: The project highlighted the importance of carefully considering Land Use Change impacts when adopting a new vegetal based material.

31 Danone UK Products: Actimel plastic bottle Outcome: The project highlighted the importance of carefully considering Land Use Change impacts when adopting a new vegetal based material. Highlights: Identified a 65% reduction by switching the bottle material from fossil plastic (PE) to sugar cane derived PE. The results showed an important reduction in emissions delivered through innovation/redesign of the packaging material. 31

Dyson Products: Dyson Airblade TM Outcome: Measured total carbon footprint and compared against both traditional hand driers and paper towels Highlights: Carbon Reduction Label currently appears in

32 Dyson Products: Dyson Airblade TM Outcome: Measured total carbon footprint and compared against both traditional hand driers and paper towels Highlights: Carbon Reduction Label currently appears in advertising, sales brochures, and exhibits in 19 countries globally Good design and environmental responsibility go hand in hand. By considering the environment from the start, our engineers develop machines that are more powerful, perform better and work using less energy and materials. - James Dyson, Inventor, Dyson

33 Accelerating the move to a low carbon economy 加速向低碳经济的转型 enquiries@carbontrust.com

Product Carbon Footprints and Supply Chain Innovation

Product Carbon Footprints and Supply Chain Innovation Jan Van der Ven Agenda Introduction to the Carbon Trust PAS2050 origins i and development Practical application: labels and certificates Examples 2