Carbon Audit
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Carbon Audit

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An introduction to the Carbon Audit for businesses

An introduction to the Carbon Audit for businesses

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  • 1. The Carbon Audit
  • 2. In this session we will attempt to answer the following questions:
    • What is a Carbon Audit?
    • Why should we do a Carbon Audit?
    • How do you do a Carbon Audit?
    • How does Carbon Footprinting impact on the marketing process?
    • What are the organisation’s options?
    • Where to look for further information
  • 3. 1: What is a Carbon Audit?
    • A means of measuring and recording the CO2 (Carbon Dioxide) emissions of an organisation
    • Sometimes called a ‘Carbon Footprint’
    • Includes:
      • direct power usage (from fuel-powered sources)
      • fuel-powered transport (haulage & travel)
    • The ‘wider footprint’ may include:
      • waste and recycling policy
      • carbon saving arrangements with supply chain partners
      • carbon saving arrangements with employees
  • 4.
    • Carbon Audit is the first step in developing a Carbon Strategy
    • Carbon Strategy: A long term action plan to manage and reduce the carbon emissions of the organisation and its clients
    • Carbon Strategy is compulsory in certain designated industries (eg steel and car manufacturers)
    1: Carbon Audit and Carbon Strategy
  • 5. 2: Why should we do a Carbon Audit?
    • Global Warming is being caused by Green House Gasses (GHGs)
    • Carbon Dioxide (CO2) accounts for 85% of all GHGs
    • 1997 Kyoto Protocol (ratified by UN membership 2005) establishes targets for industrialised nations to cut carbon emissions
    • UK target: to cut emissions to 12.5% below 1990 level by 2012 (failure likely)
    • World average target is 5.7% below 1990 levels
  • 6.
    • Corporate social responsibility policies
    • Employee & customer expectations
    • Brand value
    • Further legislation likely
    • Potential 20% saving in energy consumption (The Carbon Consultancy)
    • Carbon reporting provides superior management data
    2: Why should we do a Carbon Audit?
  • 7. 2: The Climate Change Levy
    • A new business tax on the use of all energy - introduced in 2001
    • Applies to electricity, gas, coal and lpg (liquid petroleum gas)
    • Oil, diesel and petrol taxed under the Hydrocarbon Fuels Act
  • 8. 3: How do you do a Carbon Audit?
  • 9. 3: How do you do a Carbon Audit?
    • A carbon analyst calculates the carbon footprint in accordance with ISO Standard 14064
    • International organisations apply GHG Protocol standards
    • Carbon Reporting is split:
      • a) Power b) Travel
  • 10.
    • Core Footprint:
    • Power:
      • electricity grid, natural gas, oil-fired
    • Transport:
      • road mileage (vehicle type), rail mileage, air mileage (origin-destination)
      • Road haulage (mileage & weight) air freight (weight) courier mileages
    3: How do you do a Carbon Audit?
  • 11.
    • Wider Carbon Footprint:
    • Materials (waste and recycling)
      • Paper used (quantity & type)
      • Materials sent to recycling (quantity & type)
      • Waste not recycled (mixed, by weight)
    • Detailed Footprint Analysis
      • Detailed energy usage by supplier
      • Detailed air & road travel (vehicle class and mileages)
      • Commuting: distance and type for all employees
      • Other savings e.g. video conferencing
    3: How do you do a Carbon Audit?
  • 12.
    • Reporting:
    • Total emissions, core and non-core
    • Power used per square foot (offices)
    • Carbon value per employee (per job / project / department)
    • Benchmark results inter- and intra-industry
    3: How do you do a Carbon Audit?
  • 13. 4: How does Carbon Footprinting impact on the marketing process?
    • There are two theoretical frameworks which can provide a basis for an environmental audit of the marketing process:
    • The ‘Green’ 7 Ps
    • The ‘Value Chain’
  • 14. 4: a) The ‘Green’ 7 Ps
    • Product
      • Finite or renewable sourced materials?
      • Manufacturing processes
      • Environmental impact in use and disposal
    • Price
      • Additional costs incurred
      • Marketplace price sensitivity
    • Place
      • Distribution and Retail operations
    • Promotion
      • Communicate customer value
      • ‘ Green’ means of communication
    • People
      • Training and support
    • Physical Evidence
      • Branding, Packaging, other?
    • Processes
      • Procedures & policies eg green travel arrangements
  • 15. 4: b) The Value Chain (Porter)
  • 16.
    • Primary Activities:
    • Inbound Logistics
      • Arrangements for sourcing and receiving outsourced materials and services
    • Operations
      • Internal manufacturing and processing
    • Outbound Logistics
      • Packaging and distribution
    • Sales
      • Efficiency of sales processes
    • Service
      • Added value service procedures
    4: b) The Value Chain (Porter)
  • 17. 4: b) The Value Chain (Porter)
    • Human Resources
      • Training, motivations, values
    • Technology
      • Alternative & energy efficient
    • Marketing
      • Materials and messages
    • Procurement
      • Carbon-audited inputs
    • Strategies
      • Corporate environmental positioning
    • Procedures
      • ISO 14000?
    • Infrastructure
      • Energy-efficient facilities
      • Financial policies
    • IT Systems
      • Alternative energy-saving processes
    Support Activities:
  • 18. 5: What are the organisation’s options?
    • Carbon offsets:
      • Calculate emissions from specific activity (e.g.per journey) and pay third party to reduce CO2 by similar amount (e.g. plant trees)
    • Carbon funding:
      • Buy emission reductions being created by another project (as capital start-up and / or as income)
  • 19.
    • Certified Emissions Reductions (CERs)
      • Verified emission savings can be sold through the EU Emissions Trading Scheme (EUETS)
    • UK Emissions Trading Scheme
      • Companies with Climate Change Levy Agreements can buy and sell credits with other UK companies
    5: What are the organisation’s options?
  • 20.
    • Generic solutions:
    • Cut energy usage
    • Cut waste
    • Increase re-cycling
    • Cut down travel & haulage mileage
    • Reduce commuting
    5: What are the organisation’s options?
  • 21.
    • Create carbon-conscious corporate culture
    • Balance short term ‘PR opportunities’ with long term carbon strategy objectives
    • Integrated carbon strategies (not just one carbon reduction strategy)
    • Improve carbon / energy / travel reporting procedures
    • Devolve responsibility for energy efficiency to departmental level
    • Engage employees in work-based and domestic carbon reduction initiatives
    5: What are the organisation’s options?
  • 22. 6: Further information
    • Government:
    • http://www.direct. gov . uk
    • http://actonco2.direct. gov . uk
    • http://www.defra.gov.uk
    • Other:
    • http://www. carbontrust .co. uk
    • http://www. carbonbalanced .org
    • http://www. carbonmanagers .com
    • http://www. thecarbonconsultancy .co. uk
    • http://www.iso.org
    • http://www.iso-14001.org. uk