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Wsp presentation

  1. 1. Carbon as a Strategic ToolWSP Environment and EnergyAndrew Bright, Technical DirectorJune 2011
  2. 2. What are we going to cover?Four Key Objectives: Why carbon is important to business? How carbon can be used in decision making? Example Case Studies Discussion: Where Next?
  3. 3. Carbon in the News - 2025 Ca In rbo cr n ea Flo se U C ES s c or P D os ri SS RE UGH t t ce INE RO o £ Es G BUS 5% TH T 20 cal RIN Y 1 M EN 0 P at CTU OSTS B ANAGE e r or UFA G C M MAN ATIN RBO N E OF To nn O PER VED CA RIC e R O E IN P IMP R RIS UR THE DI TF CA REC IC RB TO P RED O N RS S L YST NE BAANA ON UT NN B rporateCAR r Co R A ED ajo L SC OVE gy of M oost nS trate Price B AM R o e Carb s in Shar lt Resu
  4. 4. GHG Protocol - 16 Source Categories for Scope 3
  5. 5. Policies and more policies?
  6. 6. Key Message – Why is carbon important to business? It effects everything your business does Consumer awareness of the environment is at an all time high Carbon and climate on the news daily Carbon now being viewed as a commercial risk & opportunity It has a commercial value
  7. 7. Carbon as a strategictoolHow it can be used
  8. 8. Carbon Management “…systematically “…systematically understand business risks & opportunities change.” associated with climate change.” The Carbon Trust
  9. 9. Strategic Carbon Management Where Do the Business Risks Arise? Loss of market share Increasing cost of raw material Increased taxation “Carbon Leakage” Regulatory compliance Investor relations Operational efficiencies Consumer awareness
  10. 10. Responsibility for Carbon Top Down Bottom Up
  11. 11. The StrategicCarbon ManagementCycle
  12. 12. Carbon as a strategic tool Should be supported at the senior management/board level in the client organisation Goes beyond traditional energy efficiency measures Considers the full scope of an organisation’s activities Considers all carbon emissions, both direct and indirect and incorporates a life-cycle perspective Covers all types of measures which can be employed to reduce those emissions Assigns monetary value to carbon and tries to build carbon into investment decisions Involves change management across the organisation
  13. 13. Why Calculate Your Carbon Footprint? Understanding your organisation’s footprint will ensure the action is focused. Carbon footprinting is an effective tool to measure your current impacts and develop mitigation strategies. Aim to produce a clear and visual profile of your companys carbon footprint which is typically broken down into your direct, upstream and downstream emissions. It enables you to prioritise action upon critical areas Establish a clear action plan to reduce this footprint
  14. 14. Types of Carbon Footprint
  15. 15. Business Benefits
  16. 16. Key Message – carbon as a strategic tool? It considers all carbon emissions, both direct and indirect and incorporates a life-cycle perspective – it is more than energy efficiency It provides a commercial perspective – what is the value at stake for a business? It is a change management process across the value chain of the business It is a systems based approach with a tradition plan do check review cycle
  17. 17. Example Case Studies
  18. 18. Procurement - Supply Chain
  19. 19. How do you do this?1. Create a framework for the project based on an output specification2. Design a tool to enable all the bidders to work off a level playing field3. Provide guidance to the bidders4. Evaluate returns5. Establish the forecast as a contractual obligation6. Reward/Penalise the contractor on year on year performance
  20. 20. Behaviour Change – power of the employee
  21. 21. Membership has increased from 80 to 1500 in sevencountries in 2010
  22. 22. Thank you for Listening - Any Questions? Andrew Bright Technical Director Climate Change & Sustainable Strategy T. +44 (0)131 344 2307 M. +44 (0) 7825 028301 E. andrew.bright@wspgrou
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