Product Carbon Footprints and Supply Chain Innovation
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1 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 5-1
2 Our mission is to accelerate the move to a low carbon economy 3 3 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 offered to SMEs during 2009/10 Launched 350 million fund for low carbon refurbishments of commercial buildings 3bn in energy cost savings for our customers since
3 Our activities span multiple areas Specialist advice and finance Standards and accreditation Investing in early stage low carbon companies over 10 years Founded in 2001 Developed PAS 2050 and Footprint Expert guidance and tools Global leader in product carbon footprint certification UKAS accredited, independent and impartial Dedicated team of certification professionals 6 5-3
4 now reaching into South East Asia ecowise, a Singapore based renewable energy and environmental solutions provider, became a partner in China-UK Low Carbon Enterprise this year 7 with a base in Singapore Geocycle Singapore Pte. Ltd.: largest used copper slag recycling plant in Singapore 8 5-4
5 synergies in China Chongqing Zhongtian Electronic Waste Management: 12-year exclusive concession to collect, recover, process and dispose of electrical and electronic waste in Chongqing Municipality 9 and activities in Malaysia Sunrich Integrated: Malaysia based tyre retreader and rubber compound manufacturer
6 Agenda Introduction to the Carbon Trust PAS2050 origins i and development Practical application: labels and certificates Examples 11 The world s CO2 flows are aligned with flows of goods and commodities Total Flows 2004 Data (GtCO 2 ) % Other 2.4 3% 10. Europe to North America 2.2 4% 9. Rest of Asia to North America 2.0 4% 8. Africa to Europe 1.8 4% 7. China to Japan 1.6 4% 6. North America to Europe 1.4 5% 5. Rest of Asia to Europe 1.2 6% 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
7 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%) CAGR (92-25) Consumption (low decarbonisation world) 1.0% Consumption (high decarbonisation world) 0.7% Net imports 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 2e 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 13 PAS 2050 is the world s first published standard PAS 2050 WRI/WBCSD ISO EU Methodology = published = review published Sustainability Consortium
8 PAS = Publicly Available Specification 15 Footprint Expert is a practical guide Guide Framework Calculators Database
9 Code of Good Practice provides additional guidance 17 Agenda Introduction to the Carbon Trust PAS2050 origins i and development Practical application: labels and certificates Examples
10 The Carbon Reduction Label engages customers Demonstrate your commitment to reduce the footprint of your product over 2 years Commitment Explanation Optional Number Consumer Action The Carbon Reduction Label can be used in more than one way On pack Point of sale Online Sales literature Press release
11 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 21 Product footprinting involves a local team and centralized certification Local team in partnership with Carbon Trust Carbon Trust Footprinting Certification Company Train Footprint Certify Communicate Create footprints: Choose top products Collect data using standard guidelines for consistency/ accuracy Build product model using Footprint Expert TM toolkit Expert advice, support, and training provided by the Carbon Trust Certify footprints to: PAS 2050 Footprint Expert TM Code of Good Practice
12 The Carbon Reduction Label is licensed in 19 countries Over 5,700 products Sales ~ 3 billion / year 23 Agenda Introduction to the Carbon Trust PAS2050 origins and development Practical application: labels and certificates Examples
13 Consumer carbon consciousness is growing 56% of UK consumers say they would be more loyal to a brand if they could see that it was taking steps to reduce its carbon footprint 45% of UK consumers say they would be prepared to stop buying their favourite brands if they refused to commit to measuring their product's carbon footprint Source: Carbon Trust research, March % of say they are more likely to buy labelled goods of identical quality 1 in 5 say they would buy a labelled product even if it cost more! Source: Carbon Trust research, March
14 Consumer goods: Coca Cola Recognised the importance and value of Product Footprinting Advertising campaign to increase recycling, based on footprinting results 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 initiativesiti
15 Retailer: TESCO Products: Over 500 own-brand products Outcome: Providing consumers with low- carbon 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 ts by 50% by Supply Chain Analysis: Allied Bakeries Products: Kingsmill Great Everyday White, Tasty Wholemeal, and 50/50 loaves Outcome: Detailed supply chain analysis used as basis for cost reductions and efficiency improvements Highlights: Working with suppliers to reduce road miles of raw inputs Shifting to local production to reduce logistics costs and carbon emissions
16 B2B products: Suzano Papel e Celulose Products: Assorted pulp and paper products Outcome: Gained full understanding of carbon hotspots in pulp and paper production Highlights: First pulp and paper products company in the world and the first product of any kind from Latin America to be awarded the Carbon Reduction Label 31 Premium Products: New Zealand Wine Company Products: 750ml bottles of Mobius Sauvignon Blanc wine Outcome: Gained full understanding of carbon hotspots in wine life cycle Highlights: First wine in the world and the first product of any kind from New Zealand to be awarded the Carbon Reduction Label
17 Industrial Products: CEMEX Products: Bagged and bulk Rugby cement Outcome: Carbon Reduction Label demonstrates progress in reducing manufacturing process carbon Highlights: Measured cradle-tograve footprint of cement, including extraction of raw materials, manufacturing, distribution, use, and disposal 33 Accelerating the move to a low carbon economy 加速向低碳经济的转型 enquiries@carbontrust.com 5-17
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