Carbon Labelling The Carbon Trust s Experience in the UK Alexander Farsan Head of Business Services, India GreenCo Summit 2017, Pune, 23/06/2017 About the Carbon Trust 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-dividend 1 1
6/29/2017 Our clients Retail & FMCG Healthcare & Pharma Manufacturing Telecoms & Media Financial Services Industrials Hospitality & Leisure Transport & Logistics Food & Drink 2 Our strategic partner in India: PKF Consulting PKF is one of the leading professional service providers in India providing a range of services in accountancy, auditing and specialised lines of consulting and advisory services in the field of finance, technology, business strategy and HR. CONSULTING ASSURANCE Financial Statement Assurance Management Assurance Project Assurance Corporate Governance Mergers & Acquisitions Indirect Taxation 4 Decades of rich Personal Corporate International Taxation Taxation Taxation 6Offices across India experience Human Capital Information Technology KPO/BPO TAXATION Direct Taxation Business & Process Advisory 20 Partners with exposure in international assignments 75+ Staff with international 90+ 6 Cross border engagements Continents - Engagements experience delivered Delivered. Accounting & Taxation Mutual Fund Accounting 10+ Directors with Global Exposure Payroll 400+ Professionals from multifarious disciplines 50+ Cities covered across the globe 3 2
6/29/2017 Case Study An example of how we support businesses We supported Carlsberg Group in the development of the carbon strategy for their recently launched new sustainability ambition, Together Towards Zero Working closely with Carlsberg s in-house sustainability, utility management, and supply chain teams, we: Developed a detailed end-to-end value chain carbon footprint for Carlsberg s global operations Defined ambitious carbon reduction targets, in line with what s considered a Science-Based Target, for their operations as well as their value chain Developed a clearly defined roadmap to achieve the carbon reductions to meet these targets 4 What s the idea behind carbon labelling? Enable consumers and businesses to make informed, climate friendly purchasing decisions! 5 3
What s the analysis behind a carbon label? The basis for every carbon label is a Product Carbon Footprint, i.e. the sum of a product s carbon impact over it s lifecycle, measured in carbon dioxide equivalents (CO 2 e) and against a standard unit. 6 Types of labels Different schemes in the world have adopted their own unique approaches to carbon labels. No Number Label signifies that the company has completed a footprint in accordance with scheme rules. With Number Label must disclose the lifecycle footprint of the product. Good for comparison but also may lead to consumer confusion. Labels can also be cradle-to-gate (B2B) and/or cradle-to-grave (B2C) Labels can be single criteria or multi-criteria A to G denotes the relative environmental performance of the product compared to similar products in category Low Carbon Signal that the product is lower carbon than average products in its category/or it has continued to reduce carbon emissions over a period of time 7 4
Why should businesses use carbon labels? Product differentiation through green credentials Enhancing brand reputation Meet procurement requirements Enabling consumers to make low carbon choices 8 The Carbon Trust s 10-year journey with carbon labelling Developed the world s first product carbon footprinting standard PAS 2050:2008 2007 Launched the world s first carbon footprint label PAS 2050:2011 Updated PAS 2050 and worked with ISO and GHG Protocol to develop their PCF standards for alignment Relaunched the Carbon Trust Product Label Built on the Carbon Trust s experience to develop product carbon footprinting and labelling schemes around the world Launched the Carbon Neutral Label Today we have certified over 25,000 individual product footprints, many of which display our Label in over 40 countries. 9 5
How the Carbon Trust Label works Two key steps: 1. Calculate product carbon footprint for the products that will carry the label 2. Successfully complete the certification process, including any requirements for the respective label 1. The Carbon Label 2. The Carbon Reduction Label 3. The Carbon Neutral Label 10 Case Study: Dyson Airblade Dyson is a British technology company that designs and manufactures vacuum cleaners, hand dryers, bladeless fans, heaters and hair dryers. Dyson wanted to measure total carbon footprint of the Dyson Airblade and compare it against both traditional hand driers and paper towels Working with the Carbon Trust Dyson was able to reduce the environmental impact of carbon emissions and energy consumption The Carbon Reduction Label was used in advertising, sales brochures and exhibits in more than 20 countries globally 11 6
Case Study: Kingsmill Bread Allied Bakeries wanted to differentiate their Kingsmill brand from the many other bakery brands and to use detailed supply chain analysis as the basis for cost reductions and efficiency improvements Allied Bakeries achieved certification for their Kingsmill Great Everyday White, Tasty Wholemeal and 50/50 loaves A recertified footprint reduction of 13.6% was achieved by shifting to local production in order to reduce logistics costs and carbon emissions. A further 20% efficiency on baking process was identified 12 Case Study: Samsung Galaxy Series The Galaxy S II and Galaxy Note were the first mobile devices to be awarded with the Carbon Footprint certificate. Galaxy SV recently achieved global certification and label licence. Committed to certify all future S series phones and Note tablets which will continue to carry the Carbon Trust Footprint Label Uses eco-friendly materials including recyclable packaging paper, recyclable plastic for charger cases, and soy ink free of petroleum solvents for instruction manuals. Reduced the use of packaging material by 20 to 25 percent for Galaxy Note 4 and Galaxy Note Edge compared to their predecessors. 13 7
Advising and collaborating internationally Setting up new domestic schemes Building on our experience with the Carbon Label in the UK, we have helped governments and stakeholder organisations across the world to design and set up carbon labelling schemes Mutual recognition of carbon labels We have worked with the Asian Carbon Footprinting Network to harmonise the schemes in China, Hong Kong, Korea, Malaysia, Taiwan and Thailand 14 Carbon Labelling: lessons learned on our journey The impact of label hinges on two criteria: Design of the label - all with pros and cons Quality of the underlying Production Carbon Footprint Cost will come down and quality will go up as more players participate in schemes Sector associations should take lead to spread cost and share data Product Carbon Footprinting very valuable analysis, but value of label is very context dependend 15 8