Hugh Jones. Carbon Footprinting Competitive Advantage?


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EOI · 20/09/2012 ·
La Huella de Carbono es un concepto que se ha abierto paso con gran fuerza los últimos años, ya que cada día son más las empresas y organismos públicos a nivel nacional e internacional que realizan su transición hacia un modelo de “gestión baja en carbono”, esto exige ir más allá de la forma habitual de gestionar, obliga a colaborar con los proveedores para calcular sus emisiones, evaluar cuántos GEI (gases de efecto invernadero) se han generado en el ciclo de vida y sobre todo valorar las fuentes de emisiones asociadas a los diferentes productos y actividades.

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Hugh Jones. Carbon Footprinting Competitive Advantage?

  1. 1. Carbon Footprinting Competitive Advantage ?Hugh JonesManaging DirectorCarbon Trust Advisory
  2. 2. Our mission is to accelerate the move to a low carbon economyAdvice Footprinting Technology We advise businesses, We measure and We help develop and governments and the certify the deploy low carbon public sector on their environmental technologies and opportunities in a footprint of solutions, from sustainable, low organisations, energy efficiency to carbon world products and services renewable power 2
  3. 3. We live in a resource-constrained world… › The economic impact - Rising commodity prices, population growth, economic growth will put a strain on business resource procurement › 80% projected rise in steel demand from 2010 to 20301 › 147% increase in commodity prices since 20002 › Up to 3 billion more middle-class consumers will emerge in the next 20 years3 Source: Food & Agricultural Organisation of the United Nations[1], [2] & [3] McKinsey Global Institute, “Resource Revolution: Meeting the world’s energy, materials, food, and waterneeds.” November 2011 3
  4. 4. …we live in a resource-constrainedworld› The environmental impact – August 22 was Earth Overshoot Day. This marked the date when humanity exhausted nature’s budget for the year. › We are now operating in overdraft. › For the rest of the year, we will maintain our ecological deficit by drawing down local resource stocks… › …and accumulating carbon dioxide in the atmosphere Source: Global Footprint Network - see 4
  5. 5. The low carbon agenda presents strategicopportunities for companies… GROW REVENUE & VALUE HARNESS INTANGIBLES Low carbon design Build brand value & Corporate reputation differentiation through Staff retention communication ofMaximise environmentalthe credentialsupside New business models Short term Long termMitigate Direct energy costs Exposure to volatilitythe Supply chain energy in energy &downside costs commodity prices Regulatory pressure Security of supply of (e.g. UK mandatory energy and materials reporting Physical damage to premise / stock REDUCE COSTS MANAGE RISKS 5
  6. 6. …and the majority are still in the relatively earlystages of the journey to sustainability, theirprogress slowed by difficult economic times Low Carbon Laggards Players Pioneers Maturity Revenue Reputation Cost Primary Efficiency Drivers Regulation Risk Management Focuses mainly Participates in Group level low on compliance voluntary initiatives carbon business with regulatory Level of ambition is model requirements Example considered ‘average’ Innovates across Attributes Minimal/no vs. industry peers whole value chain actions beyond Processes in place to to exploit what is required deliver operational opportunities and Ad-hoc staff led carbon management gain strategic initiatives performance advantage
  7. 7. Many leaders have undertaken footprinting and Certification at the Product and Service level…We have certified more than 600 organisations with a combined reduction in carbon emissions of 5.5Mt ─ equivalent to£252million in cost savings. More than 27,000 products carry our certification and our Carbon Reduction Label appearson goods worth £3.3billion in annual sales.We facilitate product footprinting through our Footprint Expert TM software tool, with its framework, calculators anddatabase. PepsiCo LG Electronics Products: Assorted single-packet crisps Products: 47LW5500-ZE LED TV Outcome: Identified that 59% of carbon emissions 47LW550T-ZE CINEMA 3D LED TV were outside their operations and 41% Outcome: gCO2e per hour use in all inside EU countries Reduction: Recertified footprint shows 7% reduction Highlights: Focusing heavily on reducing the power on 2007 footprint consumption Highlights: Saved £400,000; reinvested in further carbon-saving initiatives Use over 30% less energy compared to conventional models in the same class 7
  8. 8. …while footprinting has also help a number of organisationsunderstand their full environmental impact, and how tacklingthis can create a better businessICT Sector JCB Bord Bia Irish Food BoardDeveloping the world’s first Footprinting of their machines We worked with Bord Bia tosector guidance for the GHG uncovered the potential for develop detailed carbon footprintProtocol Product Standard, product innovation focussed on models for beef and milk whichworking with 12 leading global ICT increased fuel efficiency, giving were deployed across 30,000companies (including BT, Cisco, JCB an improved customer farmsFujitsu, HP, Microsoft) and the proposition › The resulting carbonWRI, WBCSD and GeSI › Reduced cost of ownership footprints are being used to› Enables a consistent approach for customer as a result of provide the farmers with to measuring lifecycle carbon increased fuel efficiency valuable advice on where to impacts of ICT products and › Increased re-sale value capture cost and carbon services › Superior environmental savings› Provides a practical method credentials to identify and reduce carbon and costs related to ICT
  9. 9. Footprinting the impact of a company’s value chain can help unlock value Robust environmental claims Brand Equity Comparability with companies in the same sector A fact base for cost reduction and revenue enhancement Bottom Line A means to change internal and consumer behaviours A view of your current and future value chain impacts Risk Mitigation A fact base for business prioritisation decisionsOver 100 product and value chain footprinting customer engagements have identifiedbusiness benefits which will in some cases will save over £50 million by 2020, and will reducevalue chain resource dependency by up to 20% through resource efficiency, and potentiallymore through profitable substitution 9
  10. 10. A value chain perspective is essential to understand the complex risks, opportunities and trade offs Illustrative priorities for a snack food & beverage company Water Food Climate Health Biodiversity security security security Quantifying Supply Chain Impact assessment of Emissions and Resource Raw materials Supply Chain Climate Consumption Change Risks Product› Water, carbon, biodiversity manufacturing › Potato supply security footprints › Vegetable oil supply Distribution & retail› Healthier product (baked › Transport options crisps) vs increased energy and renewable fuel requirement consumption (baking process) Consumer use › Liability for packaging recyclingAvoid unintended consequences: › Perceived brand responsibility› E.g. Optimised packaging - too little Disposal & packaging can increase wastage recycling rates, which can dramatically increase the footprint 10
  11. 11. Footprinting requires a judicious balance of theaccuracy required and investment to support it There is a minimal level of primary data to support your objective: Primary Secondary – Quantity data data – Quality Always balancing cost and benefits Better data, allows better decisions: – What is available? – How expensive is it to collect more? – What is optimal point How do you bring down cost?
  12. 12. ContactHugh JonesManaging Director, Carbon Trust Advisory ServicesEmail: hugh.jones@carbontrust.comMobile: (+44) (0) 12