Carbon Reduction in the Built Environment

Transcription

1 TUESDAY 7 TH MARCH Carbon Reduction in the Built Environment Hannah Clement, UK-GBC (Chair) Tony Rooke, CDP Guy Rickard, The Carbon Trust Charles Sainsbury, Land Securities Richard Charlesworth, Sir Robert McAlpine CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number

2 Tony Rooke CDP CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number

3 Science-based targets in the construction industry Presenter: Tony Rooke Date: 7 March 2017, Ecobuild, London, UK

4 Science-based targets I Climate Change Science Understanding 1.5ºC and 2ºC emissions trajectories GT CO2e 40 to 70% below 2010 levels <1.5º C <2ºC 360 GT CO GT CO to 95% below 2010 levels Year

5 Science-based targets I The Role of the SBTi STRATEGIES Reduce the barriers to the adoption of science-based targets Institutionalize the adoption of science-based emission reduction targets Create a critical mass Interventions SDA method Reports Target setting manual Engaging Amplifiers Validating Targets Platform to join the SBTi

6 Science-based targets I Climate Change Science Sectoral Breakdown of the Carbon budget

7 Science-based targets I Growing Momentum. 25 Committed Companies in the SBTi by Sector Set targets

8 Science-based targets I Construction-related sectors 16 committed companies from real estate, construction materials, building products and construction & engineering sectors Ø 38.6 megatonnes of CO2 eq (scopes 1+2) Ø 3 UK companies: Land Securities, Morgan Sindall Group plc and Unite Students 2 companies with approved targets Ø Host Hotels and Resorts Ø Land Securities

9 Science-based targets I Construction-related sectors Ø Ø Ø Ø Ø General challenges Significant scope 3 emissions related to embedded Ø emissions in construction materials (e.g. aluminum, cement, Ø steel). Ø Heavy machinery that is energy-intensive. Transportation of materials from sites far away from the construction. Construction designs vary significantly per type of construction (different requirements). For construction companies: no specific pathway under the SDA, they fall under Other Industry. Ø Ø Opportunities Engage with key suppliers to set SBTs for critical materials. Design strategies to reduce the need for heavy machinery. Reduce distance to material sources by planning in advance. Challenge design first, and find opportunities for emissions reductions. SBTi to develop more nuanced pathways for Other Industry subsectors. For more information see the Sector Development Framework on the SBTi s website.

10 Science-based targets I How can companies participate?

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12 Science-based targets I Construction-related sectors Company name GRI Business Activity HQ Country Status in SBTi Broad Group Building Products China Committed Daikin Industries, Ltd. Building Products Japan Committed Owens Corning Building Products USA Committed Maessa Construction & Engineering Spain Committed Morgan Sindall Group plc Construction & Engineering United Kingdom Committed Taisei Corporation Construction & Engineering Japan Committed TODA Corporation Construction & Engineering Japan Committed Ferrovial Construction and Engineering Spain Committed Italcementi Construction Materials Italy Committed Altarea Cogedim Real Estate France Committed Castellum Real Estate Sweden Committed City Developments Limited Real Estate Singapore Committed Investa Real Estate Australia Committed Unite Students Real Estate United Kingdom Committed Host Hotels & Resorts, Inc. Real Estate USA Set targets Land Securities Real Estate United Kingdom Set targets

13 Guy Rickard The Carbon Trust CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number

14 Science Based Targets in the Construction Industry Ecobuild 7 th March 2016 Guy Rickard Senior Consultant, Carbon Trust

15 In the next 10 mins I hope you will Appreciate the methodologies for setting a science-based target Understand more about the Sectoral Decarbonisation Approach See how it might apply to companies in the construction industry 15

16 The Carbon Trust: Accelerating the move to a sustainable, low-carbon economy The Carbon Trust focuses on driving bottom-line business benefits in order to deliver long-term sustainability Advise businesses, the public sector and governments on their opportunities in a sustainable, low carbon world Measure and certify the environmental footprint of organisations, products and services Develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power Independent, mission-driven, not-for-dividend 3

17 The focus of science-based targets is on scope 1 and 2 emissions 17

18 Calculating science based targets involves three key steps 1. Assessing the global carbon budget How large is the pie? 2. Calculating your business carbon budget How large is my slice? 3. Compare your budget and your footprint Am I eating too much? Different methodologies will take slightly different approaches to these steps 18

19 Most relevant recognised approaches for science-based targets SDA CSO CSI Sectoral Decarbonisation Approach Center for Sustainable Organizations Carbon Stabilisation Intensity Absolute Emissions Contraction C-FACT GEVA Corporate Finance Approach to Climate-Stabilising Targets Greenhouse Gas Emissions per Value Added 19

20 Overview of the Sectoral Decarbonisation Approach 2 C Temperature Increase Threshold GHG Concentration Pathway Global Carbon Budget Sectoral Carbon Budget Sectoral Activity Projections Sectoral Carbon Intensity Sectoral Decarbonisation Pathway Company Baseline Carbon Footprint Company Carbon Reduction Pathway and science based Targets Company Activity Baseline and Growth Projection 20

21 Sectors covered by the SDA Sector growth by 2050 vs 2010 Activity indicator Sector carbon intensity Reduction by 2050 vs 2010 Passenger kilometre $ value added $ value-added $ value-added Tons aluminium Passenger kilometre kwh Tons paper cardboard Passenger kilometre Passenger kilometre Square meter Tons steel Tons cement

22 Sectors covered by the SDA Sector growth by 2050 vs % reduction in carbon emissions per m 2 floor area by 2050 Trade / retail Finance Real Estate Public Administration Health Food and lodging Education Other commercial services

23 Sectors covered by the SDA Sector growth by 2050 vs % reduction in carbon emissions per unit value- added by 2050 Manufacture of glass Manufacture of metal products Construction industry new work, repair, additions and alterations, general construction of entire dwellings, office buildings, stores and other buildings

24 Sectors covered by the SDA Sector growth by 2050 vs % reduction in carbon emissions per kwh by 2050 Covers electricity consumption in all sectors

25 The SDA is a convergence approach Emissions Intensity Company A Company B Company C Sector The SDA requires the carbon intensity of all companies within a sector converge by 2050 Ensures that companies that with a carbon intensity that is already relatively low compared to the sector are not penalised for investing into efficiency early 25

26 Steps to setting a target using the SDA Select baseline and target year Identify sector(s) applicable to the company Measure baseline activity and forecast future activity Calculate company Scope 1 emissions pathway from sectoral pathway Calculate company Scope 2 emissions pathway from sectoral pathway Combine Scope 1 and Scope 2 budgets to calculate overall emissions target Update target periodically to account for changes to the company/sector

27 The aim is to set a medium term target (5-15 years) as well as long term ambition Notes: 1. Data shown is from 2014 IEA Energy Technology Perspectives. 27

28 Summary Science-based targets align a company s carbon reduction commitments with the latest climate science and international pledges from the Paris Agreement Several methodologies have been developed, including the Sectoral Decarbonisation Approach (SDA) important to choose most appropriate If using the SDA, a key stage is to identify the most appropriate sector for your organisation The aim is to set a medium term target (5-15 years) as well as long term ambition 28

29 Whilst reasonable steps have been taken to ensure that the information contained within this publication is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warranty and make no representation as to its accuracy and accept no liability for any errors or omissions. All trademarks, service marks and logos in this publication, and copyright in it, are the property of the Carbon Trust (or its licensors). Nothing in this publication shall be construed as granting any licence or right to use or reproduce any of the trademarks, services marks, logos, copyright or any proprietary information in any way without the Carbon Trust s prior written permission. The Carbon Trust enforces infringements of its intellectual property rights to the full extent permitted by law. The Carbon Trust is a company limited by guarantee and registered in England and Wales under company number with its registered office at 4th Floor Dorset House, Stamford Street, London SE1 9NT. Published in the UK: The Carbon Trust All rights reserved.

30 Charles Sainsbury Land Securities CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number

31 Land Securities - New Carbon and Energy Targets Land Securities: Setting our science-based carbon reduction target Charles Sainsbury Energy Manager

32 Largest listed real estate company in the UK (by market capitalisation) 14.6bn portfolio Focus on London offices, and UK retail and leisure Certified to ISO:50001 and ISO: Fenchurch Street, EC3

33 Portfolio composition Retail warehouses 8% Leisure & hotels 10% Other 1% Xscape, Milton Keynes Shopping centres 25% Offices 46% Piccadilly Lights, W1 London retail 10% Gunwharf Quays, Portsmouth 63% of assets located in Greater London One New Change, EC4

34 Land Securities and Sustainability Industry leadership ambitions Award winning community employment programme 100% renewable electricity supply with Smartest Energy First fuel-cell in the City of London First property company with a science-based carbon reduction target

35 The drivers for change Land Securities previous energy target was a 15% reduction of energy within our top 5 consuming buildings by 2020 compared to a 2013/14 baseline. Achieved a 15% reduction in 2015/16 CO 2 Land Securities did not have a carbon target, it was thought both internally and by external stakeholders that we would benefit from setting a company wide carbon target. #1 Ambition for sustainability leadership in the real estate sector.

36 Criteria for our new targets Apply to the whole portfolio Be science based Be intensity targets based on floor area Include Scope 1, 2 and 3 (tenant energy consumption) emissions Extend out to 2030 with interim (5 yearly) targets for energy

37 Decarbonisation pathway for Land Securities Emissions Intensity kg CO 2 per m Land Securities Pathway Sector Pathway Land Securities decarbonisation pathway This decarbonisation pathway leads to the following reduction requirements by 2030, 2040 and 2050: Company Target Years Intensity Reduction Against Baseline 40% 70% 80% Land Securities Emission Reduction Targets against 2013/2014 baseline

38 Our Targets CO 2 Reduce carbon intensity (kgco2/m 2 ) by 40%, for properties under Land Securities management for at least 2 years, by 2030 compared to a 2013/14 baseline. Reduce energy intensity (kwh/m 2 ) by 40%, for properties under Land Securities management for at least 2 years, by 2030 compared to a 2013/14 baseline. Targets to include all energy used directly by Land Securities (Scope emissions) and energy sub-metered to tenants (Scope 3).

39 Hurdles to overcome Data quality and confidence! Be thorough and trust the numbers Internal buy-in, SBTs are generally challenging Tell the story and engage with the issues Long-term goals in a short-term world Set shorter term interim targets Complexity and breaking down the science Keep it simple and empower people CO 2

40 Benefits of SBTs The science brings meaning Targets are no longer numbers pulled from thin air, they are goals linked to a real issue They help set long-term strategy SBTs are long-term in nature, they can be the spine of a sustainability strategy Integrity Established methodologies and third party verification add weight Leadership SBTs commit to what is required and not just achievable.

41 PR coverage

42 Achieving our goals Energy reduction initiatives across our London and Retail businesses Update Sustainable Development Brief Responsible Investment policy and procedures

43 Richard Charlesworth Sir Robert McAlpine CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number

44 A contractors perspective Richard Charlesworth Sustainability Advisor

45 WHO?

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48 WHY?

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51 HOW?

52 Reducing scope 1 & 2 emissions decreases overheads Carbon Hierarchy Future Scanning

53 CHALLENGES *SCS global

54 Fully transparent supply chains

55 Because current information is misleading Structural Steel Recycled Industry 60% TATA 12.8%

56 Comparing materials impacts

57 Concrete Megapour

58 Reducing Embodied Carbon Walbrook Square Business as Usual Walbrook Square Volume (m 3 ) 58,816 58,816 Tonnes CO 2 e 22,190 13,941 Saving 8,249

59 Thank you for listening

60 Panel and Audience Questions CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number

61 Thank You CAMPAIGN FOR A SUSTAINABLE BUILT ENVIRONMENT UK Green Building Council Registered charity number