Carbon Reporting & Footprinting. Jean Lowes

Transcription

1 Carbon Reporting & Footprinting Jean Lowes

2 Carbon Footprint Corporate Carbon Footprint Product Carbon Footprint A measure of the amount of CO 2 e produced by the organisation for a defined time period, usually a year GHG emissions of a product across its life cycle, from raw materials through production (or service provision), distribution, consumer use and disposal / recycling.

3 Product Carbon Footprint Product carbon footprint Walkers crisps Product carbon footprint g CO2e gm pack Disposal Distribution Manufacturing Packaging Raw materials The Carbon Trust has launched a consumer label which details the carbon footprint of a product and a commitment by its producer to reduce it.

4 Product Carbon Footprint PAS 2050 PAS 2050: Specification for the assessment of the life cycle greenhouse gas emissions of goods and services Issued by the British Standards Institute in October 2008 and is supported by DEFRA and The Carbon Trust Its objective is to provide a consistent robust standard for businesses to measure the carbon footprint of products and services It is available for free download from Measuring the carbon footprint of products across their full life cycle is a powerful way for companies to collect the information they need to: Reduce GHG emissions Incorporate emissions impact into decision making, e.g. product design Demonstrate environmental/corporate responsibility leadership Meet customer demands for information on product carbon footprints Differentiate and meet demands from green consumers.

5 Corporate Carbon Footprint Corporate Carbon Footprint Is the total Green House Gas (GHG) emissions produced by the organisation over a time period, usually a year. It includes: Energy usage Transport emissions Process emissions Fugitive emissions It includes gases other than carbon dioxide Usually in line with the GHG Protocol Framework or a similar standard.

6 Greenhouse Gas Protocol Initiative Corporate Carbon Footprint Is a partnership of businesses, NGOs and governments, convened by the World Resources Institute (a US based environmental NGO) and the World Business Council for Sustainable Development (WBCSD) based in Geneva Its objectives are: To help companies prepare a GHG inventory that represents a true and fair account of their emissions, through the use of standardised approaches and principles To simplify and reduce the costs of compiling a GHG inventory To provide business with information that can be used to build an effective strategy to manage and reduce GHG emissions To increase consistency and transparency in GHG accounting and reporting among various companies and GHG programs.

7 Scope 1 Direct Fuels Combustion Owned Transport (incl Finance leases) Process Emissions Fugitive Emissions Corporate Carbon Footprint Scope 2 Utilities - Indirect Purchased electricity, heat & steam Scope 3 Other Indirect Transport Business Waste Disposal Transport - Product Transport Commuting Franchises, outsourcing operating leases Production of purchased materials Use of products

8 Corporate Carbon Footprint Typical Annual Footprint Report Tonnes of CO 2 e Year ended 30 th September Scope 1 1, Scope 2 1,625 1,400 Standard practice gross emissions 2,625 2,390 Scope 3 9,410 10,415 Best Practice gross emissions 12,035 12,805 Carbon Offsets (500) - Total net annual emissions 11,535 11,825 Intensity ratio (kg CO 2 e per 1 turnover)

9 Corporate Carbon Footprint Carbon dioxide equivalent reporting (CO 2 e) Kyoto Greenhouse gases Global warming potential Sources Carbon dioxide 1 Fossil fuels, deforestation Methane 25 Rice cultivation, livestock, landfills Nitrous oxide 298 Fossil fuels, fertilizer Hydrofluorocarbons ~1,430 Aerosol propellants, cooling medium Perfluorocarbons ~7,800 Sulphur hexafluoride 22,800 High voltage installations, windows, tyres IPCC Fourth Assessment Report

10 Factors Corporate Carbon Footprint Fuel Standard Emissions factor Units Natural Gas KgCO 2 e per kwh Heating Oil KgCO 2 e per litre Heating Oil KgCO 2 e per kwh Diesel KgCO 2 e per litre Petrol KgCO 2 e per litre Grid Electricity KgCO 2 e per kwh DEFRA UK Government

11 Corporate Carbon Footprint Energy for heating kwh CO 2 e Factor Kg CO 2 e kwh Kg CO 2 e Litre tco 2 e Natural Gas 5,782,139 kwh 5,782, ,175 Heating Oil 102,317 litres 1,051, Road Fuel (owned vehicles) Diesel 115,200 litres Petrol 62,500 litres Sub Total Scope 1 2,020 Electricity 3,482,383 kwh 3,482, ,149 Sub Total Scope 2 2,149 Total Carbon Footprint (Tonnes of CO 2 e) Standard practice 4,169

12 Corporate Carbon Reporting Mandatory Carbon Reporting in the UK from 2012? The Climate Change Act 2008 requires the UK government to legislate by April 2012 for companies to report their GHG emissions. Consultation has recently closed about the number of companies that will be required to report depending on their size. It could range from 1,000 companies listed on the London Stock exchange to 30,000 companies defined as large.

13 CRC Energy Efficiency Scheme Corporate Carbon Reporting Introduced by the UK Government in ,000 organisations are required to start reporting their CO 2 emissions annually, beginning with the year April 2010 to March 2011 Fines will be levied on those who fail to comply From 2012 these participants in the scheme will be required to purchase a 12 allowance from the Government for each tonne of CO 2 that they emit This will add ~6% on top of their energy costs, the Government expects to raise 1bn from these allowances by 2014.

14 Corporate Carbon Reporting Mandatory Carbon Reporting in the US from 2011 The Environmental Protection Agency in the USA requires organisations that are large emissions sources (>25,000 tonnes per annum) to report their emissions for 2010 by 30 th September 2011 However the EPA is coming under pressure from the republicans in congress to postpone or drop the requirement because it increases costs for business.

15 Corporate Carbon Reporting EU Emissions Trading System (EU ETS) Launched in 2005 applies in all 27 EU countries 10,800 power stations and heavy energy usage sites across the EU Covers 46% of total EU emissions 8% emissions reduction by 2012 from a 1990 baseline Typically sites are given 85% of their requirement and have to buy the balance on the open market. They can use international carbon credits CERs (Certified Emission Reductions) for ~8% of their needs Sites that significantly reduce emissions can sell unused allowances In June 2011 EUAs were 16 Euros Aviation will be included from 2012.

16 Carbon Disclosure Project The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation based in the UK which works with shareholders and corporations to disclose the greenhouse gas emissions of major corporations In 2010, it published the emissions data for 3050 of the world's largest corporations The database of reports can be accessed for free at The CDP represents 551 institutional investors, with a combined $71 trillion under management.

17 Global Reporting Initiative The GRI uses a similar framework to the GHG Protocol and also incorporates human rights, labour relations, anti-corruption and other corporate citizenship issues Its latest G3 guidelines are available as a free download from Over 1,500 organisations from 60 countries use the guidelines to produce their sustainability reports It is supported by the United Nations Environment Programme (UNEP).

18 Product Carbon Footprint Carbon labelling on products Country Year introduced Number of products UK Thailand Japan South Korea France France is planning compulsory environmental labelling (including carbon emissions) for certain products possibly from 2012 Products to be included so far are : shoes, wood, furniture and shampoo.

19 Jean Lowes Director Xcarbon Limited