GHG Emissions Management & Reduction Plan

Transcription

1 GHG Emissions Management & Reduction Plan INZIDE. People responsible: Steve Aschebrock & Robb Donze Directors Prepared by: Steve Aschebrock & Jenny Forrester Dated: 31 st May 2013 For the period: 1 April March 2013 Reviewed by: Approved for release by: Ashleigh Ross Customer Service / Sustainability INZIDE Steve Aschebrock Director INZIDE Landcare Research Date: 12/07/2013 Page 1 of 8

2 Contents 1 Introduction Management commitment Top GHG emissions sources Targets for GHG emissions reduction GHG Emissions source inclusions Monitoring & reporting Emissions management and reductions... 8 Landcare Research Date: 12/07/2013 Page 2 of 8

3 1 Introduction This report is the sixth annual greenhouse gas (GHG) emissions 1 management/reduction plan prepared for INZIDE (previously InterfaceNZ ltd.) and forms the manage step part of their application for carbonzero certification. A significant factor that has increased our carbon emissions in this year (2012/13) has been the fire that destroyed the Australia mill in July to 80% of our product was sourced from this mill previously ie local supply. The fire has necessitated the supply of Interface products from other Interface mills around the world, with 95% now coming from Thailand and the USA. Concurrently the extended delivery timeframes and congestion in the Thailand and USA mills have caused us to opt out of projects due to our inability to meet project deadlines. Hence we have suffered a significant drop in volumes (>20%) and lost economies of scale. This fire has therefore caused a greater footprint to occur that we would have otherwise expected. The Sydney mill will be back in production in October 2013 and we are expecting a substantial reduction in our footprint as we ramp our volumes and local supply back to normal conditions. 2 Management commitment INZIDE is committed to excellence in financial, social and environmental performance and acknowledge that the three combined drive company growth, increase profitability and reduce impacts that contribute to climate change. To be clear, seperating the three in any decision making is detrimental to the performance of the whole organisation. Through participation in the carbonzero programme, INZIDE has and will: Reduce its own greenhouse gas (GHG) emissions per m2 sold. INZIDE Commercial Ltd has committed to reduce its own GHG emissions to below 1kg of Co2 per m2 and maintain through our strong growth an absolute carbon footprint no bigger than 2007/08 [our base year] as long as feasibly possible. Our base year carbon is 288 tonnes based on 232,032m2 sold. Our 2012/13 submission shows a 25% increase on our base year but significantly down on last year. Should we have maintained our same footprint intensity per m2 (1.241kg/co2/m2 base year) then our equivalent absolute carbon creation in the 2012/13 year would have been 360 tonnes. Our actual carbon was 336 tonnes, an intensity of 1.171kg/co2/m2. We are not happy with this result and do expect to see this back under 1kg/co2/m2 with the Sydney mill coming back into operation. Ensure Port of Project and regional warehousing (vs centralised warehousing) becomes embedded in all our logistics. Ensure Owens continues to use Rail and Coastal Shipping Owens currently reports to INZIDE Commercial monthly on our stock movements and mode of transport. INZIDE Commercial now needs to drive Owens to a greater % of stock movements using low carbon modes of transport (ie Rail & Coastal shipping). Owens environmental policy is aligned with INZIDE s objectives in this regard. Educate our customers not to Airfreight. Airfreight is a significant contributor to Interface s carbon footprint. By working with customers to change project timeframes vs airfreight, significant carbon reductions can result. 1.3% of product airfreighted contributed 1 Throughout this document emissions means GHG emissions. Landcare Research Date: 12/07/2013 Page 3 of 8

4 to 22.5% of our carbon footprint. 1 kg of airfreight has the same footprint as 77kgs of seafreight. RECYCLING CARPET TILE ensuring that the embodied energy is not wasted and overall carbon reduced. We know that it takes 18kgs of carbon to make 1m2 of carpet tile. It takes 1kg of carbon to ship a m2 of carpet tile. Hence each m2 sent back for recycling saves the world from having 17kgs of additional carbon created plus the earths resources. INZIDE s carbon tracking is related to itself as an organisation, not a producer. Hence we do not look at getting carbon credits for recycling. However to ensure we do not unfairly represent ourselves for doing the right thing(recycling/re-use) we have taken our recycling activities out of scope for the purposes of looking at our organisational foot print. Excitingly in April 2013, the NZ Government accredited the INZIDE Commercial (in partnership with Interface Inc.) Re-Entry recycling scheme. This now sets the template for all interior textile companies operating in NZ. We sincerely hope and expect other carpet tile importers (about 30) to start taking ownership for their products that they put into the NZ marketplace now. Currently the expectation from our competitors is that they will go into landfill and product stewardship is not a cost that they will need to incur. This linear TAKE MAKE WASTE thinking needs to change and become closed loop. INZIDE internal initiatives INZIDE recognises that to become fully sustainable there is a need to lead strongly in the industry and across business more broadly, use third parties to substantiate our sustainability initiatives and ensure that all employees are active in the sustainbility culture that the Directors espouse openly in the marketplace. INZIDE Commercial publishes its core values. They are: Be passionate idealistic (believe in our products) Have fun and enjoy what we do Be profitable Fair and honest in our dealings Have an environmental conscience Offer our customers unique products and ideas Consistently show how we add value Embrace change Work as a team. Our guiding sustainability principles adopted from THE NATURAL STEP are: 1) Stop removing more from the earth s crust than it has time to regenerate. 2) Stop using substances that nature can t process at the rate that we produce them. 3) Ensure biodiversity stays that way. 4) Be fair and share. Landcare Research Date: 12/07/2013 Page 4 of 8

5 We are continuously striving to develop internal initiatives to allow our staff to become more aware and participate in more environmentally acceptable practices. Following are outlines of some of our key initiatives to date: Ensuring the most carbon efficient sales vehicles are purchased upon replacement Currently all vehicles are hybrid Toyota prius and the 2 vehicles changed out this year were replaced with new prius vehicles. Driver schedules all drivers are requested to combine sales calls whenever possible, maintain correct tyre pressures and an annual prize is awarded to the sales person who has the best fuel consumption per m2 sold. Buses, ferries, green cabs and public forms of transport are used when undertaking staff outings ie our annual Hauraki Gulf clean ups. Fitting out our office to the Green Building Council requirements including low power air conditions and using Meridian as our energy provider. Offsetting staff travel to and from work carbon emissions Ensuring that recycling/re-use bonuses are provided (and updated each year) for the Sales team 3 Top GHG emissions sources Scope Greenhouse gas emissions sources Tonnes CO 2 e 1 Int l Shipping (sea) Stock Imports Road Freight stock movements International air travel Int l shipping (air) Stock Imports Vehicle Fleet Petrol Domestic air travel Electricity All Other Total As illustrated in the above table, stock imports and movements are the key source of reported emissions in the 2013 reporting period. These account for tco 2 e or 68% of our emissions. This is why INZIDE Commercial considers the port of project initiative with domestic rail and coastal shipping to be so important to reducing our carbon footprint. 10% of the remaining GHG emissions are directly attributable to flying our key customers (architects and specifiers) and staff to Australia on mill tours and regionally based architects to Auckland/Wellington for NZGBC rated building tours. We significantly reduced the air miles attached to these events in 2013 versus INZIDE have already implemented alternatives to air travel for employees such as monthly sales phone conferences in place of face-to-face meetings. INZIDE do not believe we can reduce these further as there is still need for training and interaction between the New Zealand sites. Landcare Research Date: 12/07/2013 Page 5 of 8

6 4 Targets for GHG emissions reduction GHG emission reduction item Reduce freight carbon by trucks on NZ roads (port of Project and rail) Target 32 tco2e (increase in 2013) Reduce airfreight of stock 50% (61% redn in 2012) Not exceed a carbon intensity of 0.90kgs/CO2/m2 Not exceed 288 tonnes of carbon 0.90kg/CO2/m2 (increase in 2013) 288 tonnes (336 tonnes incurred in 2013) Baseline Target Reduction in (tco 2 e) date emissions Metrics/KPI Rationale Absolute Ensuring that we Achievable through port of project and rail continue to reduce freight initiatives. Owens reduced rail roadfreight as our transport in the last year this is being volumes grow actively targeted again Reduce carbonzero Continued education of our customer Airfreight of base. Stock ongoing Substitute rail & Ensure a flexible logistics system that sea for road marries on time with low carbon modes of transport transport. FIRE impacted on this. 288 ongoing Absolute carbonzero We need to ensure that carbon is treated as waste. Hence we need to remove waste from our system in all areas as waste is value destroying. FIRE impacted on this. Landcare Research Date: 12/07/2013 Page 6 of 8

7 5 GHG Emissions source inclusions GHG emissions reduction projects Port of project Objective Actions Responsibility Large projects are to have stock produced in single mill with stock freighted directly to the closest port of the project Shipping Completion date Rail freight increase Move to consolidating small projects with similar timeframes in same locations to have product shipped directly to the closest port Where national account rollouts are happening in a same location ie Christchurch, then bring in stock directly to that port and warehouse in that city pending drawdown. Unders/overs to be sorted via the central Auckland warehouse. Requires Batch tracking. Ensure Owens are optimising rail for all South Island deliveries that are being sourced ex the Auckland warehouse. Ensure whenever possible in North Island projects, that rail is used to get the stock to the nearest terminal to the project. Assess opportunity to make Tauranga our main Port with all deliveries south of Tauranga leaving directly from Tauranga without needing to come to Auckland to be cleared by Customs. Shipping. Proving difficult due to project timeframes! Shipping Logistics Logistics Logistics 2014 year to have strong impetus Landcare Research Date: 12/07/2013 Page 7 of 8

8 6 Monitoring & Reporting All projects are monitored monthly to see if small shipments can be consolidated for port of project direct deliveries or coastal shipping. Reports are presented to INZIDE Commercial s Directors (Robb & Steve) monthly. The annual verified data from our carbonzero certification will ensure that we are delivering to these commitments. Holding our base year carbon while growing our business is deemed a BHAG (Big Hairy Audacious Goal), but one we feel confident we can continue to achieve excluding FIRES that burn down mills. 7 GHG emissions management and reductions INZIDE IS extremely proud of our track record in what can only be called extreme business conditions with the GFC, CHCH earthquakes and double dip recession faced by NZ in the past 6 years. During this period we have grown our business, maintained profitability and made significant reductions on our carbon footprint per m2 of Sales. The last year has caused MAJOR disruption and reduced business for INZIDE Commercial. It is our flexible business model, reduced costs due to our sustainability drives and the support of our customers that have kept us in operation. We are aware that our recycling programme will increase our carbon footprint under carbonzero but in real world terms will contribute to a significant reduction in carbon production when looked at over the life-cycle of the product, and not merely INZIDE as an organisation. We could simply take no ownership and let contractors throw it into landfill, thereby reducing our carbon footprint. THIS IS NOT an option. Hence we have opted to treat recycling activities as out of scope for the purposes of our organisational footprint in New Zealand. We have written the product stewardship scheme for interior textiles for New Zealand. This has now been accredited by the NZ government. Our focus on our carbon reduction goals is absolute and in combination with our wider sustainability goals we feel confident in achieving them. Landcare Research Date: 12/07/2013 Page 8 of 8