Carbon Audit

The Carbon Audit

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

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

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

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

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?

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

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

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

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

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

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’

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

4: b) The Value Chain (Porter)

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

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:

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)

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

Generic solutions:
Cut energy usage
Cut waste
Increase re-cycling
Cut down travel & haulage mileage
Reduce commuting

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

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

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Carbon Audit

by Steve Raybould on Jan 21, 2008

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Carbon Audit — Presentation Transcript