Carbon Trust Standard for Supply Chain

Transcription

1 Carbon Trust Standard for Supply Chain

2 Carbon Trust Standard for Supply Chain Welcome and Introduction Tom Delay Chief Executive Enquiries:

3 Agenda 09:00 Welcome Tom Delay, Chief Executive, Carbon Trust 09:15 Supply Chain Sustainability Aleyn Smith-Gillespie, Associate Director, Carbon Trust 09:35 The Carbon Trust Standard for Supply Chain Introduction and overview Methodology & technical review Darran Messem, Managing Director, Carbon Trust Certification Morgan Jones, Associate Director, Carbon Trust 10:00 Pathfinders: experiences of the pilot phase Dean Holroyd, Technical and Sustainability Director, ABP Foods Rob Lambe, Managing Director, Re-Thinking, Willmott Dixon 10:30 Panel discussion & Questions Darran Messem, Managing Director, Carbon Trust Certification Dean Holroyd, Technical and Sustainability Director, ABP Foods Rob Lambe, Managing Director, Re-Thinking, Willmott Dixon Morgan Jones, Associate Director, Carbon Trust 11:00 Summary and close Darran Messem, Managing Director, Carbon Trust Certification

4 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-profit

5 Supply Chain Sustainability Grasping the Opportunity Aleyn Smith-Gillespie Associate Director, Advisory Enquiries:

6 Carbon in the value chain varies by sector and company Source: Carbon Trust; OPEN IO

7 Carbon in the value chain varies by sector and company Source: Carbon Trust; OPEN IO

8 Supply chain energy efficiency opportunities can be found across industries UK Food and Drink Processing Industry Value chain opportunities Raw materials Product manufacturing Distribution & retail Consumer use Disposal & recycling Agriculture and Raw materials Food and Drink Processing and Packaging Transportation, Chilled storage Refrigeration and cooking Food Waste and Packaging Up to ~10% saving potential of total raw materials costs (including logistics) Up to ~15% saving potential of total manufacturing energy cost

9 Manufacturing and transport Example efficiencies and paybacks in other sectors Sector % saving on annual energy spend Payback on capex (years) Manufacturing 41% 1.6 Electronics 23% 3.5 Engineering 37% 3.7 Waste 21% 1.4 Transport 48% 2 Average 34% 2.6 Source: Carbon Trust

10 Businesses see both risks and opportunities Do you see bottom line risks to your business from the direct effects of climate change (e.g. extreme weather, water stress etc.)? Overall, would the move to an environmentally sustainable future be a risk or an opportunity for your business? Source: Carbon Trust international survey of 229 c-suite executives of large companies (2015)

11 A holistic approach to implementation delivers maximum value Selection Scorecards Design Material substitution Design-for- X Development Operational efficiency Procurement Product Portfolio Choice editing Configuration Lean supply chains Geographic sourcing Innovation Collaboration End-to-end integration / optimisation Circularity Remanufacturing Closed loop materials

12 Carbon Trust Standard for Supply Chain Introduction and Overview Darran Messem Managing Director, Certification Direct: Enquiries:

13 Sustainable development delivers bottom-line benefits Resource efficiency and reduction drives real cost saving One tonne CO2e costs 200 from electricity, and 340 from diesel 1 One cubic metre of water costs 1-6, but up to 50 and 240kg CO2e to pump, heat and cool 2 One tonne of waste costs ~ 500 when including purchase, production and disposal costs 3 1 UK prices and emission factors, including duty, excl. VAT, November Carbon Trust analysis 3 Source: WRAP

14 Certification delivers real resource and cost reduction Carbon Trust Certification provides a sound framework to deliver and recognise resource efficiencies and reductions in associated costs Measure and benchmark resource use; identify cost hot-spots; confirm reduction opportunities Understand best-practice; improve management frameworks; motivate & engage staff Impartially & independently quantify results and demonstrate credentials to customers, staff & stakeholders Deliver reductions & improvements in hierarchy and reduce costs

15 Supply chain emissions are often neglected Around 70% of emissions are associated with upstream supply Processing Transport Purchased electricity, steam, heating and cooling for own use Manufacture Company vehicles Company facilities Supply chain Production & transportation of purchased raw materials & goods Organisational boundary

16 Carbon Trust Standard The Carbon Trust Standard provides a sound framework to validate your organisation s resource utilisation & recognise actual reductions Successfully delivering organisational emission measurement and reduction since 2008 The world s first organisational emission reduction standard and operationalisation of the Greenhouse Gas Protocol Certified over 750 organisations and 830 million tonnes of CO2e.

17 Leaders in sustainable development The Carbon Trust certifies the resource footprints of leading brands

18 Carbon Trust Standard for Supply Chain The new Carbon Trust Standard for Supply Chain extends certification to cover carbon emissions in an organisation s supply chain to provide a sound framework to validate your organisation s upstream emissions and deliver actual reductions

19 How your organisation can benefit By providing a framework to measure, manage and reduce resource consumption Certification benefits you by... Delivering efficiencies Facilitating compliance Enhancing Reputation Increased efficiency and can reduced costs Identification of emissions hotspots Increased resource and energy efficiency Energy security Market security Compliance with reporting initiatives Compliance with customer requirements Compliance with stakeholder expectations Sector leadership Independent third-party recognition Differentiation from competitors Managing supply chain emissions can benefit a company s public profile

20 Pathfinders

21 Carbon Trust Standard for Supply Chain Introduction and Overview Morgan Jones Associate Director, Certification Direct: Enquiries:

22 The Carbon Trust Standard for Supply Chain The Carbon Trust Supply Chain Standard rewards organisations for managing GHG emissions in their upstream supply chain by identifying, targeting and reducing the emissions hotspots The Standard brings organisations on a journey of continuous improvement Certified organisations start by identifying the biggest reduction opportunities in their supply chain and proceed to address them, subsequently expanding their approach It leads to the achievement of concrete, material reductions within the supply chain

23 The Standard in context The Carbon Trust Standard for Supply Chain covers the upstream supply chain Carbon Trust Standard for Supply Chain Carbon Trust Standard for Carbon, Waste, Water Production Transportation Processing Disposal Manufacture & Processing Purchased electricity, steam, heating and cooling for own use Distribution Company vehicles Company facilities Use End-of-life treatment Supply chain Production & transportation of purchased raw materials & goods Organisational boundary Downstream impacts Distribution, use and disposal of sold products

24 Methodology framework The Standard is structured into three levels of improvement Recognising the complexity inherent in supply chains, the journey to demonstrated emissions reductions is divided into three internally-communicated levels The levels provide a simple, meaningful and realistic framework for organisations to follow Each level has quantitative and qualitative requirements LEVEL 1 LEVEL 2 LEVEL 3 MEASURE & PRIORITISE BASELINE & ENGAGE REDUCE & EXPAND An organisation can get certified at the level appropriate to its past engagement with its supply chain

25 Level overview Each level has a specific set of requirements, and lasts 2 years LEVEL 1 LEVEL 2 LEVEL 3 MEASURE & PRIORITISE ENGAGE & BASELINE REDUCE & EXPAND CERTIFICATION Meet governance requirements Complete a supply chain hotspot analysis Prioritise significant portions of the supply chain for engagement PROGRESS REVIEW CERTIFICATION Demonstrate evidence of reduction projects Determine a quantitative baseline for emissions reduction Pass qualitative assessment PROGRESS REVIEW CERTIFICATION Demonstrate reductions in specified parts of the supply chain Pass qualitative assessment For recertification: Demonstrate expansion Year 0 Year 1 Year 2 Year 3 Year 4+

26 Requirements for Level 1 certification MEASURE & PRIORITISE ENGAGE & BASELINE REDUCE & EXPAND Minimum requirements: policy or a public statement documenting the organisation s commitment to supply chain carbon/energy management and reduction accountable committee and/or individual responsible for supply chain carbon/energy management and reduction good understanding of its direct suppliers, by spend and industry procurement policy with guidelines on preferentially procuring from suppliers with good energy/carbon credentials Complete a hotspot analysis of the supply chain Identify the organisation s significant suppliers Outcomes: A certification valid for 2 years; an action plan with recommendations following the SMART framework

27 Requirements for Level 2 certification MEASURE & PRIORITISE ENGAGE & BASELINE REDUCE & EXPAND Achieve 60% in the qualitative questionnaire weighted for Level 2 Demonstrate engagement with significant suppliers for emissions measurement and reductions Determine a robust baseline for reductions, based at least partly on primary data Outcomes: A certification valid for 2 years; an action plan with recommendations following the SMART framework

28 Requirements for Level 3 certification and beyond MEASURE & PRIORITISE ENGAGE & BASELINE REDUCE & EXPAND Achieve 60% in the qualitative questionnaire weighted for Level 3 Demonstrate emissions reductions with significant suppliers At each subsequent recertification, the company must fulfil the above as well as: Demonstrate expansion of the reduction engagement To a different subset of suppliers To more suppliers To different resources Outcomes: A certification valid for 2 years; an action plan with recommendations following the SMART framework

29 Quantitative requirements The organisation must choose reduction projects which are material to its supply chain footprint Reduction projects are designed by the company and can include anything from engaging significant suppliers for reducing their Scope 1 & 2 emissions to redesigning products or services to reduce the emissions associated with the upstream supply chain of a given product. At Level 1, results of a hotspot analysis are used to prioritise the significant parts of the supply chain for reductions. The projects must cover a specified proportion of the estimated Supply Chain Footprint (SCFP) to meet the Standard materiality requirements: Supplier - based reduction projects Product/service - based reduction projects Reduction >0% Covering at least 10% of Supply Chain Footprint Reduction >0% Constitute products responsible for at least 10% of Supply Chain Footprint

30 Qualitative assessment criteria Policy Does the organisation have a low-carbon supply chain policy? Governance Measurement Implementation Responsibility Communication Awareness and transparency Accounting Targets Procurement Product and Service Design Supplier Engagement Does the organisation have an internal framework of responsibility for supply chain carbon and energy management? Does the organisation communicate about its supply chain carbon management and emissions accurately to relevant stakeholders? How much does the organisation know about its supply chain? How much does the organisation know about its supply chain carbon emissions? Does the organisation have supply chain carbon management and reduction targets? Does the organisation have a low-carbon/energy procurement policy? What programmes are in place to reduce the lifecycle carbon impacts of the organisation s products and/or services? Does the organisation engage its suppliers and partners on carbon and energy-related matters?

31 Pathfinders 7 Pathfinders have helped us develop and refine the Standard

32 Pathfinder Experiences Dean Holroyd, Technical and Sustainability Director, ABP Foods

33 ABP FOOD GROUP DOING MORE WITH LESS 2015 T (0) E. ABP Food Group

34 Turnover 2.5bn ABP Food 9,000 employees Group 36 factory/processing sites 1m cattle processed per annum 1m lambs processed annually 300,000 tonnes Pet Food annually An integrated Agrifood business operating across 4 divisions FRESH & FROZEN FOOD PET FOODS PROTEINS RENEWABLES T (0) E. info@abpireland.com ABP Food Group

35 OUR ACTIVITY Metrics / Tonne (vs 2008 baseline) Target Waterford (Cat 1) Munster (Cat 3) ABP ELLESMERE DEVELOPMENT Electricity -25% -40% CO2-15% -30% ABP UK ABP Ireland Eatwell Wessex Turners C450k T p.a. 7 Sites (Europewide) Sainsbury s OL Pet Food (Pouch) Carbon Neutral certification Triple zero (Water, Waste & Carbon) Sustainability designed-in (Using on site generated tallow and UCO ex Olleco) Water -35% -50% Waste to landfill -94% Zero but a 50% improvement in our carbon footprint = 1% reduction in our supply base. Nationwide coverage 50,000 collection points Supply, collect, convert UCO & Food Waste expetise Green Energy generators (biodiesel & A/D) ABP Ellesmere s Combined Heat & Power (CHP) Engine T (0) E. info@abpireland.com ABP Food Group

36 ON THE GROUND COLLABORATIVE PARTNERS Stakeholder in numerous producer groups (own & customer) Best practice sharing R&D activity Livestock genetics T (0) E. ABP Food Group

37 Nature of Relationship Supplier engagement strategy Close / strategic Transactional Low Low-cost 1-to-many initiatives Supplier outreach and communication (e.g. website, newsletter, existing forums) Encourage suppliers to sign up to existing 3 rd party sustainability schemes (e.g. Origin Green) Supplier engagement matrix Targeted 1-to-1 initiatives Blade farming Bespoke initiatives Relevant 1-to-many initiatives 1-to-many initiatives Multi-supplier workshops and forums Work with existing, or develop new, 3 rd party sustainability schemes 35,000+ suppliers (<300 cattle per year) Approx 200 farmers (>300 cattle per year) High T (0) E. info@abpireland.com Carbon Impact ABP Food Group 37

38 KEY EXPERIENCES Pathfinder Participation Previous experience Endorsement for key area of focus. Helped bring Structure and method to a fragmented set of activities. Catalyst for internal alignment across divisions and Geographies. Task focussed on action planning. Carbon Trust Standard Private Company External perspective helps support rigour. Independent verification. Key stakeholder recognition. Experience and Benefits. External perspective and support. Resource to cut through assessment phase. Adds credibility to approach (internally and externally). Established baseline to measure improvement. T (0) E. info@abpireland.com ABP Food Group

39 Pathfinder Experiences Rob Lambe, Managing Director, Re-Thinking, Willmott Dixon

40 Carbon Trust Supply Chain Standard Rob Lambe, Willmott Dixon Group

41 Willmott Dixon

42 Our Group Target 50% Reduction by 2020

43 Methodology

44 Our Carbon footprint

45 Carbon Emissions in the Built Environment Source: Green Construction Board Route-map 2010

46 WD Footprint % 99% Scope 1 & 2 Scope 3

47 Where do we start?

48 Footprint by Category

49 Footprint by Category Top 20% of supply chain footprint by category 2.4% 17.8% Cement, lime and plaster Electrical machinery

50 Challenges

51 Our Motivation 8,068.51

52 Competitive Advantage

53 Panel Discussion Q&A

54 Panel Discussion Darran Messem, Managing Director, Carbon Trust Certification Dean Holroyd, Technical and Sustainability Director, ABP Foods Rob Lambe, Managing Director, Re-Thinking, Willmott Dixon Morgan Jones, Associate Director, Carbon Trust Certification

55 Carbon Trust Standard for Supply Chain Conclusion Darran Messem Managing Director, Certification Direct: Enquiries:

56 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.