Value Chain data to drive business performance

Transcription

1 Value Chain data to drive business performance Tom Cumberlege 21/11/2017

2 The Carbon Trust drives efficiency today and innovation for tomorrow Mission driven organisation, independent and member owned - any surpluses are reinvested To have impact we act as a catalyst, making the case for change to businesses, governments and civil society Deep expertise 180 engineers, scientists, policy experts, financiers and entrepreneurs

3 Our clients Retail & FMCG Healthcare & Pharma Manufacturing Telecoms & Media Financial Services Industrials Hospitality & Leisure Transport & Logistics Food & Drink 2

4 The GHG Protocol s Value Chain Standard is a starting point 3

5 Measurement is the first step in order to prioritise action Financial Services Dairy Plastics products Leather products / footwear Bread Electronics Automotive FMCG Home appliances 0% 20% 40% 60% 80% 100% Value Chain Emissions Upstream Operational Downstream 4

6 Value Chain data helps inform better decision making Product design How do decisions impact the supply chain or the customer use phase? Business Growth What impact will different growth strategies have for different regions? Upstream / Supply Chain Operations Downstream / Customers Supply Chain Configuration Which suppliers are at most risk from fluctuating energy prices or climate change impacts? Risk Assessment Modelling the risk of erosion of market share to competitors with more environmentally sustainable alternatives 5

7 Illustrating the benefits for different business areas Design better products Supply chain innovation Product Development / R&D Operations Efficiency and engagement Supply chain collaboration Procurement and Supply Chain Value Chain data enables better decisions Corporate Target setting and reporting (Sciencebased) Increased credibility / trust Brand / Investor Relations Sustainability Leadership Sales and Marketing Product differentiation 6

8 Operations Efficiency and Engagement Wyke Farms, a cheese manufacturer based in Somerset, supplies all of the major UK supermarkets. The company has saved 22 million kg of CO2 since 2013 through a combination of energy generation, water recovery and reuse of waste. Energy saving initiatives include: Solar panels installed on farm roofs All equipment has low energy inverters installed Deliveries are made with electric vehicles charged by renewable energy Three digesters to break down organic waste into energy in their biogas plant Wyke Farms were the first British dairy farm to earn the Carbon Trust Triple Standard across carbon emissions, water use and waste for demonstrating reductions year after year. 7

9 Case Study Corporate Target setting and reporting (Science-based) Carlsberg s Value Chain By 2020 a 30% reduction in beer-in-hand carbon footprint Packaging - Supply Chain engagement Recyclate content and lightweighting Downstream reuse and recycling Breweries - Energy Strategy 50% reduction in carbon emissions at our breweries by % electricity from renewable sources at our breweries by 2022 Science-based targets Agriculture Malt free brewing Innovations in agriculture 8

10 Sales and Marketing Product Differentiation Quorn has held Product Carbon Footprint Certification of its Mince and Pieces (frozen and chilled) products since Quorn wanted to promote diverse ranges of protein sources. The analysis conducted led to an understanding of both the impacts of meat and of Quorn. In Recertification Quorn has been able to show an average reduction of 9% in all certified products Quorn has reduced the carbon footprint of its core mycoprotein ingredient by 15 per cent. Quorn is using the Label in the Nordics, UK, Australia, New Zealand and South Africa to communicate commitment to further reductions 9

11 Procurement and Supply Chain Supply chain collaboration An Irish state-funded organisation Markets and promotes Irish produce worldwide Quality Assurance and food safety remit Measurement Quality Assurance and Food Safety data Sustainability metrics and national herd databases 137,000 audits Carbon footprint reports Simple Advice Benchmarking performance to identify areas for improvement: Grazing season length first calving Calving interval Daily live weight gain Nitrogen fertiliser efficiency Manure management Business Value Financial benefit of moving to best practice could help boost your farms financial performance by 5,231 and decrease the greenhouse gas emissions by 4%. 10

12 Procurement and Supply Chain Supply chain collaboration Significant savings opportunities across the beef and dairy sector Farm Case Studies Recognising Sustainable Beef Production Significant savings opportunities across the beef and dairy sector 10 Day Increase in Grazing Season Reduces costs by 27 per cow. Cuts carbon footprint by 1.7% Improving calving rate from 80% to 85% Lifts returns by around 45 per cow. Reduces carbon footprint by 4% 11

13 Product Development / R&D Design better products Amcor is the world s largest packaging company and the single largest supplier of flexible packaging to business around the world In an effort to measure, manage and reduce the impact that packaging has on the environment, Amcor have introduced an in-house lifecycle assessment tool, the Advanced Sustainability Stewardship Evaluation Tool This enables comparisons of alternative formulations for clients and allows the assessment of water consumption requirements of new products being developed by their research team. Amcor are therefore able to develop packaging solutions with a reduced environmental impact 12

14 Conclusion: value chain analysis helps to identify the risks and opportunities to inform better decision making Source: Carbon Trust 13

15 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.