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Carbon Management – Why Bother?
               James Dorrell
        Giraffe Innovation Limited
          j.dorrell@giraff...
Long Term Deliverables: London



A total reduction in CO2 emissions of 70m tonnes by 2025.
> 3.9m tonnes CO2 per year by ...
Tesco’s – customer research feedback*
        > 71% of customers are concerned about the implications of
          packagi...
“Britain's leading eco-design consultancy” The Manufacturer




Giraffe was listed by The Guardian as one of the 10 bright...
….just some of Giraffe’s clients
UK, Sweden, Switzerland, Hong Kong, China,
       Sri Lanka, New Zealand, USA
What is carbon footprint?




the total greenhouse gas emissions caused directly
and indirectly by an individual, organisa...
Carbon Jargon

Carbon Footprint: greenhouse gas emissions relating
to activities and actions

Carbon neutral: Reduction of...
Most favoured option
                                                 Carbon Hierarchy



                                ...
Sources of GHGs

                       Nitrous Oxide
Carbon Dioxide
                           Chemical manufacture
 Fuel...
Emission Scopes
                                    CO2 CH4 N2O HFCs PFCs SF6




                                        ...
Calculating Scope 1 emissions


Fuel for energy        Use actual consumption
and transport          of fuel in kWh, MJ, l...
Calculating Scope 1 emissions: an example


   Fuel for energy

Gas used:                              1,000,000 m3
Defra ...
Calculating Scope 2 emissions: an example


   Electricity

Electricity used:                      10,000,000 kWh
Defra ca...
Calculating the total footprint: an
             example


  Scope                   Emissions kgCO2e
    1      Energy   ...
Good calculation websites

http://www.nef.org.uk/greencompany/co2calculator
.htm

http://www.carbontrust.co.uk/solutions/C...
16




Giraffe Innovation
Reducing footprint: reducing costs

Energy is one of the largest controllable costs in most
organisations, because there i...
Energy breakdown by building type
Reduction in shops and offices


Heating: Don't turn up the heating unless you really
need to. Try to keep your thermostat...
Reductions in shops and offices

Refrigeration: Ensure your system is set at the
right temperature. Even if its 1oC lower ...
Derwin Street Furniture

Conducted operational footprint:
 Manufacturing – kwh electricity
 Lighting – kwh electricity
 He...
Derwin cont.

Carbon footprint from electricity consumption: 450t
per annum

                                        Wareh...
Derwin – warehouse 2 review
WAREHOUSE 2 – 40% of electricity footprint:
180tCO2
Large unit with 3 huge space heaters near ...
Derwin: activities

Work area moved 50m from main door.
Old fire exit used as primary pedestrian entrance
Footprint reduce...
Different types of footprints




   Production   Distribution       The        Distribution    Retail and
     of Raw    ...
Scope 3 – footprinting materials and processes




LIFECYCLE THINKING
> Most waste comes in the material
processes, energy...
Scope 3 Footprinting (packaging)

                           USER INPUTS                             NEEDS from tool
     ...
Energy breakdown for PE bottle




Source:Prof.  Mike Ashby
Comparing impact
                Carbon footprints of various materials


     zinc

aluminium
     lead
   nickel

      ...
The benefits of recycling - energy

 Metal          kWh/t          Saving     Saving
                               kWh/t ...
Comparing country impact
                      31

United Kingdom: 527g CO2 per kwh

Germany: 550g CO2 per kwh

China: 850...
More Drivers
                                       32




Mark Dowling Giraffe Innovation
TOTAL No. of PRODUCTS 1350
ITEMS – 2546
Brands 352
TOTAL WEIGHT 103.97 Kg
TOTAL Overburden 200.09Kg (twice end of life was...
Sam Dixon, -Observer Reader:

‘This is the most ridiculous piece of packaging I have ever
come across,’

Official response...
New Look - Giftware & Shoes
Financial: £230,790.
Environmental:
3297.56tCO2 (311 UK
citizens annual
emissions)




       ...
Opportunity – public sector customer

• Public sector procurement increasingly
 requires higher environmental
 standards

...
The Green Consumer

Ethical and green consumer market worth £29.3bn
 11% year growth
 Aggregated household: 1.4% growth


...
The low carbon customer

Customers demand low carbon
products and retailers recognise
the opportunity

“The green movement...
Server vs Range Rover Sport




      400w (6900KWh p.a.)                                          230g/KM CO2

Running on...
Green consumers

25 – 35 year old groups are greenest

People with children of school age tend to be
greener in purchasing...
Opportunity – cost saving
BT - Beyond Compliance £2m investment
                                     44

 BT            re...
Opportunity – cost saving


CARBON =
 CA$H
• Fossil fuels are increasingly
  expensive

• Understanding your carbon
  foot...
Opportunity - legislation

Packaging & Essential Requirements
WEEE
Batteries
                    N?
Tyres
               R...
ULTIMATELY – carbon management is:


 A cost saving measure with positive
   marketing, PR and staff retention
  benefits ...
Carbon Management - why bother?
Carbon Management - why bother?
Carbon Management - why bother?
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Transcript of "Carbon Management - why bother?"

  1. 1. Carbon Management – Why Bother? James Dorrell Giraffe Innovation Limited j.dorrell@giraffeinnovation.com
  2. 2. Long Term Deliverables: London A total reduction in CO2 emissions of 70m tonnes by 2025. > 3.9m tonnes CO2 per year by 2025 - Green Homes Pilot programme > 3.5 m tonnes CO2 per year by 2025 - Green Organisations Programme > ?t CO2- Green Construction programme > London’s carbon emissions - 44 million tonnes to 52 million tonnes by 2025. Objective - stabilising London’s emissions in 2025 at 60 per cent below 1990 level. By 2025 London must produce 33 million tonnes less of CO2 than its current levels - annual emissions reduction of 4% a year. > 20 million tonnes Action Plan. 13 million tons requires national and international action.
  3. 3. Tesco’s – customer research feedback* > 71% of customers are concerned about the implications of packaging on the environment > 61% find it difficult to find things that aren’t over-packed. > Packaging becomes a priority to customers once they have to dispose of it. > Discriminatory criterion at point of purchase BUT > Recycling and packaging reduction are positive actions to achieve waste reduction but customers do not link this directly to global warming. *Jan 2007 Sample 1045
  4. 4. “Britain's leading eco-design consultancy” The Manufacturer Giraffe was listed by The Guardian as one of the 10 brightest independent UK green businesses. http://business.guardian.co.uk/windofchange/story/0,,2217319,00.html
  5. 5. ….just some of Giraffe’s clients UK, Sweden, Switzerland, Hong Kong, China, Sri Lanka, New Zealand, USA
  6. 6. What is carbon footprint? the total greenhouse gas emissions caused directly and indirectly by an individual, organisation, event or product
  7. 7. Carbon Jargon Carbon Footprint: greenhouse gas emissions relating to activities and actions Carbon neutral: Reduction of footprint to “zero” by reducing own emissions and/or offset Offset: funding carbon reduction activities
  8. 8. Most favoured option Carbon Hierarchy ”– eliminate SH WA ut EN itho RE s w reduce “G im Least favoured option OID n cla nce AV ee replace sta gr sub offset business as usual
  9. 9. Sources of GHGs Nitrous Oxide Carbon Dioxide Chemical manufacture Fuels for Energy and agriculture and Transport, Manufacturing Processes HFCs PFCs Refrigerants, Aluminium chemical manufacture, manufacture, electronics foams & aerosols manufacture Methane Waste (Landfills, Sulphur hexafluoride natural activity) Magnesium smelting, high voltage switchgear, electronics manufacturing
  10. 10. Emission Scopes CO2 CH4 N2O HFCs PFCs SF6 Employee business travel Waste disposal Contractor owned vehicles Purchased Electricity for own Company use Fuel combustion Production of Vehicles purchased Fugitive materials and emissions outsourced activities Adapted from NZBCSD and GHG Protocol
  11. 11. Calculating Scope 1 emissions Fuel for energy Use actual consumption and transport of fuel in kWh, MJ, litres and convert into CO2 – Use for converting fuel consumption – Use Defra conversion factors for carbon emissions
  12. 12. Calculating Scope 1 emissions: an example Fuel for energy Gas used: 1,000,000 m3 Defra carbon emission factors: 0.185 kgCO2/kWh (gross) To convert m3 (gross) to kWh: x 11 CO2 from Gas = 1,000,000 x 11 x 0.185 = 2,035,000 kgCO2 m3 kWh kgCO2 m3 kWh
  13. 13. Calculating Scope 2 emissions: an example Electricity Electricity used: 10,000,000 kWh Defra carbon emission factors: 0.5230 kgCO2e/kWh CO2e from Electricity = 10,000,000 x 0.5230 = 5,230,000 kgCO2e
  14. 14. Calculating the total footprint: an example Scope Emissions kgCO2e 1 Energy Gas 2,035,000 Gas Oil 13,370 Transport Diesel 789,000 Cars 33,800 Refrigerants 65,000 2 Electricity 5,230,000 3 Air travel 2,951 Waste 560 Total 8,169,677 kgCO2e or 8,170 tonnes CO2e
  15. 15. Good calculation websites http://www.nef.org.uk/greencompany/co2calculator .htm http://www.carbontrust.co.uk/solutions/CarbonFoo tprinting/FootprintCalculators
  16. 16. 16 Giraffe Innovation
  17. 17. Reducing footprint: reducing costs Energy is one of the largest controllable costs in most organisations, because there is usually considerable scope for reducing consumption in buildings. A good way to assess the energy use in your building is by conducting an energy walk-round, this will help you to identify bad practice, inefficient equipment, and poor energy habits.
  18. 18. Energy breakdown by building type
  19. 19. Reduction in shops and offices Heating: Don't turn up the heating unless you really need to. Try to keep your thermostat at 19oC as your heating costs will increase by 8% each time you turn the temperature up by just one degree. Lighting: Switch lights off in empty rooms. You could cut your lighting costs, by as much as 15% just by making sure you turn off lights in areas that aren't being used.
  20. 20. Reductions in shops and offices Refrigeration: Ensure your system is set at the right temperature. Even if its 1oC lower than needed, your costs could rise by 2-4%. IT equipment and other electricals Engage with your staff – positive initiatives Staff retention and satisfaction benefits.
  21. 21. Derwin Street Furniture Conducted operational footprint: Manufacturing – kwh electricity Lighting – kwh electricity Heating – btu gas converted to kwh Water – m3 h2o Transport – haulage miles and fuel purchase Total electricity consumption: 1,005,000kwh per annum. Electricity cost per annum: £65,000
  22. 22. Derwin cont. Carbon footprint from electricity consumption: 450t per annum Warehouse 2 was 180t – 40% of wh3 footprint wh2 w/h1 + office Main factory
  23. 23. Derwin – warehouse 2 review WAREHOUSE 2 – 40% of electricity footprint: 180tCO2 Large unit with 3 huge space heaters near work area Work area adjacent to delivery door - many use as pedestrian entrance Delivery door open 70% of day – significant heat loss
  24. 24. Derwin: activities Work area moved 50m from main door. Old fire exit used as primary pedestrian entrance Footprint reduced from 180t to 95t Cost saving of £13,000 per annum Demonstrable carbon reductions on tenders Carbon programme now targeting heating efficiency in other buildings. Offsetting remaining footprint to be “carbon neutral”
  25. 25. Different types of footprints Production Distribution The Distribution Retail and of Raw of Raw Organisation Disposal of Products Consumption Materials Materials Option B Option C Boundaries Option A A. Organisation B. Single Product/Activity /Service (Life Cycle Approach) C. All activities and products through the Boundary of A depends on Supply Chain ownership and control boundaries
  26. 26. Scope 3 – footprinting materials and processes LIFECYCLE THINKING > Most waste comes in the material processes, energy and emissions that are generated throughout the lifecycle – not at end of life. > Hidden rucksack - one tonne of gold requires 135,000 tonnes of earth, ore, and rubble to be moved. > Sustainable design takes into account the costs and environmental impacts of a product over its entire life cycle – ‘cradle to grave’ or ‘cradle to cradle’
  27. 27. Scope 3 Footprinting (packaging) USER INPUTS NEEDS from tool Materials Material energy MJ //kg Material energy MJ kg PE body 38 g Embodied energy //kg PP cap 5 g Embodied energy kg Energy to manufacture // Energy to manufacture kg kg Manufacture Transport, MJ // Transport, MJ PE body moulded 38 g tonne.km tonne.km PP cap moulded  5 g Sea freight Sea freight 0.11 0.11 Barge (river) Barge (river) 0.83 0.83 Use Rail freight 0.86 Rail freight 0.86 Refrigeration           5 days Truck 0.9 – 1.5 Transport                200 km Truck 0.9 – 1.5 Air freight Air freight 8.3 – 15 8.3 – 15 Disposal Refrigeration, MJ // Refrigeration, MJ m33.day m .day Transport              100 km Recycling ?               Yes Refrigeration (4oC) Refrigeration (4oC) 10.5 10.5 Freezing Freezing (-5oC) (-5oC) Source: Prof. Mike Ashby 13.0 13.0
  28. 28. Energy breakdown for PE bottle Source:Prof.  Mike Ashby
  29. 29. Comparing impact Carbon footprints of various materials zinc aluminium lead nickel tin iron copper Plastic Glass 0 2 4 6 8 10 12 Kg carbon dioxide per kg metal
  30. 30. The benefits of recycling - energy Metal kWh/t Saving Saving kWh/t % ore scrap Aluminium 70 300 3 600 66 700 95 Nickel 41 600 4 400 37 200 89 Copper 32 200 5 300 36 900 84 Zinc 18 900 5 300 13 600 72 Steel 9 200 3 900 5 300 58 Lead 7 800 2 800 5 000 64
  31. 31. Comparing country impact 31 United Kingdom: 527g CO2 per kwh Germany: 550g CO2 per kwh China: 850g CO2 per kwh Sweden: 80g CO2 per kwh MOVE PRODUCTION FROM SWEDEN TO CHINA: increase footprint by 10X!
  32. 32. More Drivers 32 Mark Dowling Giraffe Innovation
  33. 33. TOTAL No. of PRODUCTS 1350 ITEMS – 2546 Brands 352 TOTAL WEIGHT 103.97 Kg TOTAL Overburden 200.09Kg (twice end of life waste!) 3037.3 MJ 843.71 KWH 60W Bulb 9.5 years
  34. 34. Sam Dixon, -Observer Reader: ‘This is the most ridiculous piece of packaging I have ever come across,’ Official response from Morrisons, ‘Morrisons coconuts are shrink wrapped to ensure that they reach the customer in the very best condition. The packaging helps to keep the product fresh, limit damage from breakages, stop coconut hairs getting into other foodstuffs during transport and allows an information label to be attached.
  35. 35. New Look - Giftware & Shoes Financial: £230,790. Environmental: 3297.56tCO2 (311 UK citizens annual emissions) Saving £98,000 (on packs above) 10.8tCO2
  36. 36. Opportunity – public sector customer • Public sector procurement increasingly requires higher environmental standards • Carbon footprints are starting to be asked for… • “having a carbon report will be mandatory for all suppliers in the coming years” Procurement Manager – large SE authority at 2012 event
  37. 37. The Green Consumer Ethical and green consumer market worth £29.3bn 11% year growth Aggregated household: 1.4% growth Research has shown that green consumers: are sincere in their intentions, with a growing commitment to greener lifestyles; almost always judge their environmental practices as inadequate; do not expect companies to be perfect in order to be considered 'green'.
  38. 38. The low carbon customer Customers demand low carbon products and retailers recognise the opportunity “The green movement must become a mass movement in green consumption. For this to happen we must break down the barriers of information and price. Customers need good information to make the right choices and they need to be able to afford to make these choices.” Sir Terry Leahy, January 2008
  39. 39. Server vs Range Rover Sport 400w (6900KWh p.a.) 230g/KM CO2 Running one 400W server is equivalent of driving a Range Rover sport 15,000Km p.a. 0.5Kg CO2e per KWh (Burden factor multiplier – air conditioning) Computer industry – equivalent CO2e as Aviation industry?
  40. 40. Green consumers 25 – 35 year old groups are greenest People with children of school age tend to be greener in purchasing decision Women in these groups are more likely to make green purchases than men Those who don’t buy green cite cost (86%) as the principle reason
  41. 41. Opportunity – cost saving BT - Beyond Compliance £2m investment 44 BT replacing all its Dect cordless and fixed-line estimated that phones with more energy-efficient models will cut 195,000 tonnes of CO2 emissions over the next three years, the equivalent of taking 19,000 cars off the road for the same period. The new devices should also save consumers more than £39m through reduced electricity bills.
  42. 42. Opportunity – cost saving CARBON = CA$H • Fossil fuels are increasingly expensive • Understanding your carbon footprint and reducing it will inevitably reduce costs
  43. 43. Opportunity - legislation Packaging & Essential Requirements WEEE Batteries N? Tyres R BO C Farm films A • planning for  compliance with  End of life Vehicles legislation can reduce   RoHS…… future costs… • understanding your  carbon now will help  mitigate future risk
  44. 44. ULTIMATELY – carbon management is: A cost saving measure with positive marketing, PR and staff retention benefits – it’s also doing the decent thing
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