Business guide on carbon emission redution and sustainability


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Guide on how businesses can reduce their carbon footprint, with a focus on Asia and Hong Kong, but broadly relevant for any global brand.

The guide was developed by contributions from Cathay Pacific, HSBC, Hang Seng, Hang Lung, Hong Kong Land, OSBC, Bank of East Asia (BEA), Aegis, MTR Corporation, Sino Group, Standard Chartered, Gammon Hong Kong Electric, China Light and Power (CLP), OOCL, PCCW, DTZ, Town Gas and Swire Pacific

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  • CLP
  • Turn equipment off – don’t waste energy Reduce equipment usage – leave one fax machine on, turn off all other equipment when out of the office Recycle and re-use – wherever possible ensure office equipment is reused by returning to manufacturer or donating to charities Place photocopiers in naturally ventilated areas – These machines generate heat, which increases pressure on the air conditioning units And another great gadget that has taken off in Europe is the Smart meter – are devices that can be installed to provide real-time information on electricity usage, so you can see exactly what it is costing you second-by-second, so you turn on the printer and can see the figures increase or unplug the office microwave and watch the figures drop – this will allow you to see the effect of your action and help you make better decisions
  • Business guide on carbon emission redution and sustainability

    1. 1.
    2. 2. Overview Purpose of the Guide : Enables every business whether it is a small, medium or large enterprise, to play a role in addressing climate change. Guide written for senior managers , green teams and general staff. Why reduce emissions? Th e Business Case : R isks and Opportunities . How can businesses reduce their emissions? We propose a six step approach. What are the solutions? There are many solutions available, ranging from low cost, simple actions such as energy efficiency to cost effective long-term investments. Every business has a role to play in addressing climate change.
    3. 3. Why Do We Need to Reduce Emissions? Greenhouse gas emissions (GHG) in the atmosphere are reaching a critical level. If the increase in emissions continues there is a high risk that this will create catastrophic, or so called ‘runaway’ warming of the planet. The Intergovernmental Panel on Climate Change (IPCC) estimate that we have ten years in which to stabilise emissions to a maximum of 450 parts per million (they are currently at 430ppm) so as to stabilise global temperatures to a safe level at or below 2 degrees of warming.
    4. 4. What is the Difference Between Air P ollutants & Greenhouse G ases? <ul><li>Hong Kong’s air pollution is a local and regional problem caused by air pollutants such as sulphur dioxide (S02), nitrogen dioxide (NO2) and particulates (PM10 and PM 2.5) and Ozone (O3). </li></ul><ul><li>Air pollutants tend to have a short lifetime & impacts occur relatively close to emission source. </li></ul><ul><li>Air pollutants are defined as such as also those that endanger the health, safety, or welfare of persons. </li></ul><ul><li>Important differences between air pollutants and GHGs </li></ul><ul><li>The climate change problem refers to a concentration of greenhouse gases: water vapor, carbon dioxide (CO2), methane (CH4), Nitrous Oxide (N2O), chlorofluorocarbons(CFCs). </li></ul><ul><li>Greenhouse gases are a global problem whereas air pollutants are more localised. </li></ul><ul><li>Greenhouse gases stay in the atmosphere for much greater periods of time. </li></ul><ul><li>The impact of greenhouse gases is not easily visualised. </li></ul>
    5. 5. What Does this Mean for Hong Kong? <ul><li>Air pollution … </li></ul><ul><li>C auses poor air quality, which has human health and monetary impacts. </li></ul><ul><li>According to the Hedley Index, air pollution in Hong Kong cost a total of approximately HK $12.4 billion from 2004 to 2008. </li></ul><ul><li>Climate c hange & Hong Kong </li></ul><ul><li>Will bring a warmer and wetter climate, with more frequent extreme weather events. </li></ul><ul><li>Mean temperature increase of 4.8 degrees expected by 2100. </li></ul>
    6. 6. The Business Case . The Risks & Opportunities Avoids Costs of Reduced Risk & Stranded Assets Cost Savings Improved Energy Efficiency Enhanced Reputation and Leadership Reduced Risks from Legislation Competitive Advantage Six Reasons Why Reducing Emissions Makes Good Business Sense
    7. 7. What Are the Risks for Business? Every business has a role to play in addressing climate change. <ul><li>Companies will need to consider the impact on their business of having to pay for GHG emissions. While this is not an immediate prospect in HK - other countries are moving rapidly towards introducing charges/ penalties for GHG emissions. </li></ul><ul><li>Companies need to consider </li></ul><ul><li>Additional expenditure on infrastructure and other adaptation measures </li></ul><ul><li>Increased business interruption in the SAR and the supply chain. </li></ul><ul><li>Likelihood of tougher buildings standards </li></ul><ul><li>An increase in carbon regulations </li></ul><ul><li>Penalties/ charges for greenhouse gas emissions </li></ul>
    8. 8. The R isks <ul><li>1. From legislation </li></ul><ul><li>Tightening regulations around energy efficiency, building standards, waste and emissions are occurring worldwide; it is only a matter of time before Hong K o ng gets hit with the same regulations. </li></ul><ul><li>2. Costs of physical risk & stranded assets </li></ul><ul><li>Costs of damage as a result of extreme weather events, or stranded assets as loans get more expensive because of the higher risk associated with high emission assets. </li></ul>CLP consider future carbon prices & how and when regulations may change so as to ensure their business strategies are robust.
    9. 9. The O pportunities. Less Energy = Cost Savings <ul><li>3. E nergy efficiency </li></ul><ul><li>Energy saving initiatives such as building insulation, heat pumps, water chillers, solar heating and efficient appliances substantially reduce the energy consumption in our buildings . </li></ul><ul><li>4. Cost savings </li></ul><ul><li>According to the Carbon Trust, a 20% cut in energy costs represent s the same bottom line benefit as a 5% increase in sales in many businesses. </li></ul>Hang Lung Properties has incorporated sustainable design practices into all of their new developments in mainland cities. Through this they achieved a saving of over 25 million kWh and HK$28 million in 2005 to 2008. 1.3 million KWh of power was saved by the Bank of East Asia p/a via water cooled chillers installed at their headquarters in Central.
    10. 10. The O pportunities <ul><li>5. Climate Leadership matters </li></ul><ul><li>Companies are being ranked on their climate performance and commitment . Climate Counts Company Scorecard recently rated the pharmaceutical sector as the highest performer, outperforming 13 other sectors. </li></ul><ul><li>6. Competitive advantage </li></ul><ul><li>By responding early to emissions, companies have the opportunity to influence and shape policy development and therefore have more control over the future business environment. </li></ul>
    11. 11. How Can Businesses Reduce their Emissions?
    12. 12. First HK company to develop a Climate Change Policy to provide direction on how it can reduce its emissions, such as through optimising energy use, educating staff and upgrading equipment. <ul><li>Three key elements of an emissions management strategy: </li></ul><ul><ul><li>Establish an explicit policy direction for emissions reduction </li></ul></ul><ul><ul><li>Assign responsibility and accountability </li></ul></ul><ul><ul><li>Set out reduction targets and timelines </li></ul></ul>Step 1. Prepare an Emissions Management Strategy
    13. 13. Step 2. Measure Energy Use and Emissions Introduced a company-wide ‘Project Environmental Performance Data Form’ in 2003 to provide monthly updates on the environmental impact of its transport, construction, equipment usage and electricity consumption. The GHG Protocol provides an international standard in accounting for GHG emissions.
    14. 14. <ul><li>Set targets that work by ensuring that they are SMART: </li></ul><ul><li>S pecific </li></ul><ul><li>M easurable </li></ul><ul><li>A chievable </li></ul><ul><li>R ealistic </li></ul><ul><li>T ime-related </li></ul><ul><li>Benchmark your performance by comparing your operations over time, different departments or your company with other companies. </li></ul>China Light and Power (CLP) ‘Climate Vision 2050’ includes an aim to achieve a 75% reduction in the carbon intensity of their generating portfolio by 2050. Interim targets are set to reduce carbon intensity from 0.84kg carbon dioxide/KWh (as at June 2007) to 0.8kg by 2010. 0.7kg by 2020 and 0.45kg by 2035. Step 3. Set Targets and Compare
    15. 15. <ul><li>Identify easy wins and implement. These can be low cost and simple actions, but will demonstrate your commitment to emissions reduction. </li></ul><ul><li>Identify energy intensive activities and start reducing immediately </li></ul><ul><li>Identify medium term and long-term actions and commit to doing the most appropriate for your business. </li></ul><ul><li>Establish ‘green’ procurement, including energy efficient equipment, premises and vehicles. </li></ul>Step 4. Implement Initiatives ‘ Global Responsible Sourcing Initiative’ By 2012, suppliers must make a 20% improvement in their energy efficiency and source 95% of production from factories with the highest environmental and social ratings.
    16. 16. Step 5. Offset to B ecome C arbon N eutral Carbon neutrality is when an organisation cuts/and or offsets its emissions to zero. Some of the most popular carbon offset projects from a corporate perspective are energy efficiency and wind turbine projects . CX’s Fly Greener programme offers passengers the option of using cash or frequent flyer miles to pay for carbon offsets. Since launch in 2007, they have offset 30,000 tonnes of carbon emissions and invested in wind power generation projects near Shanghai. These wind projects are registered under the Voluntary Carbon Standard. The world’s first major bank to achieve carbon neutrality since 2005. The bank offsets its remaining emissions through investing in third-party verified projects that generate credible carbon credits from both the compliance and the voluntary markets .
    17. 17. <ul><li>Results on performance should be regularly reported and reporting should include how targets have been met and ways to improve performance in the future. </li></ul>Installed a building information management system that collects information on building operations and energy consumption. This allowed Swire Properties to achieve an estimated energy saving of 3383MWH in 2007, which equates to 2717 tonnes of carbon dioxide. The trend will be that carbon reporting will become compulsory In Australia a large number of businesses (are) & will be required to monitor and report their energy use and greenhouse gas emissions. This is particularly relevant to sectors such as commercial buildings and vehicle fleets which were typically below the previous (higher) thresholds. The UK government recently amended the Climate Change Bill to strongly encourage all UK listed companies to include details of GHG emissions in their annual reports. Step 6. Track Progress, Audit and Report
    18. 18. What Are the Solutions? What options are available for switching to a cleaner and more efficient energy future? How much will it cost? The good news is that many cost-effective solutions exist today and a number of emerging technologies look to deliver more substantial reductions in the future. B usinesses that look for solutions now and seize the opportunities will be the successful companies of the future.
    19. 19. Where Do HK’s Emissions Come From? There are many cost-effective solutions for each of these high impact areas. How is Hong Kong’s energy being used? Where do Hong Kong’s emissions come from?
    20. 20. Hong Kong Buildings Guzzle! <ul><li>Buildings are responsible for 89% of electricity u sed (EPD 2006) . Most of a building’s energy consumption comes from its operational practices such as cooling, heating and lighting. </li></ul><ul><li>Besides energy use, other areas of concern for buildings are the generation of waste, use of construction materials and how they are recycled, water use, discharge and how buildings are integrated with other infrastructure and social systems. </li></ul>
    21. 21. The Business Case for Green Buildings <ul><li>The business case for greener buildings is well established. A US study found that certified green buildings cost 1.8% more to design and construct, but yield 20% cost savings over the life of the building. </li></ul><ul><li>A significant problem encountered while achieving these benefits include short term decision making, isolated procurement and split incentives - where the party who pays for a more energy efficient building is different to the party who benefits from the saving in energy. </li></ul><ul><li>Hong Kong’s Building Environmental Assessment Method (BEAM) provides a systematic, locally relevant approach to including environmental performance in the planning, design, construction, operation, management and marketing of buildings. </li></ul>
    22. 22. EE = Low Hanging Fruit Energy efficiency is one of the quickest, cheapest, cleanest ways to address reducing emissions. Energy saving initiatives such as building insulation, heat pumps, solar heating and efficient appliances can substantially reduce the energy consumption of buildings. Many of these can be installed with little or no cost through building design and good management practices of building operators and occupants.
    23. 23. <ul><li>No - low cost: </li></ul><ul><li>Turn off air con as you leave room </li></ul><ul><li>Adjust and maintain existing systems </li></ul><ul><li>Set appropriate temperatures (25.5) </li></ul><ul><li>Set appropriate dress codes </li></ul><ul><li>Use fans </li></ul><ul><li>Reduce leakage </li></ul><ul><li>Medium Cost : </li></ul><ul><li>Install insulation, tinted windows & double glazing etc. </li></ul><ul><li>Consider paints, surfaces and planting </li></ul><ul><li>Install a building management system to optimize energy efficiency </li></ul><ul><li>Install variable speed drives to enable pump and fan speeds to be controlled </li></ul><ul><li>Follow schemes such as BEAM and LEED provide guidance on new buildings </li></ul><ul><li>High Cost : </li></ul><ul><li>Install/retrofit a water cooled chiller system. These are up to 50% more efficient </li></ul>1. Solutions for Space Conditioning
    24. 24. 2. Solutions for Lighting <ul><li>No - low cost: </li></ul><ul><li>Turn off lights </li></ul><ul><li>Organise office to maximise use of natural light </li></ul><ul><li>Clean light bulbs and fittings </li></ul><ul><li>Change lights to more efficient compact fluorescent lamps (CFLs) </li></ul><ul><li>Install sensors to turn off lights when rooms are nor in use </li></ul><ul><li>Use mirror reflectors for twin tube fluorescent to reduce the number of light bulbs needed </li></ul><ul><li>Set appropriate illumination levels </li></ul><ul><li>Change lights to more efficient Light Emitting Diode (LEDs). </li></ul><ul><li>These are not suitable for all locations but are good for building facades, traffic signals and exit signs </li></ul><ul><li>Medium Cost : </li></ul><ul><li>Install dimming ballast and controls to control artificial light in relation to the level of natural light </li></ul>
    25. 25. <ul><li>Immediate, low cost: </li></ul><ul><li>Purchase in bulk </li></ul><ul><li>Select reusable packaging </li></ul><ul><li>Buy only what you need </li></ul><ul><li>Re use and recycle </li></ul><ul><li>Medium-term: </li></ul><ul><li>Reduce packaging </li></ul><ul><li>D evelop a waste management system </li></ul><ul><li>D evelop a water management system </li></ul><ul><li>Maintain existing water system </li></ul><ul><li>S ave water </li></ul><ul><li>Long-term: </li></ul><ul><li>Extract energy from waste </li></ul>
    26. 26. 4. Solutions for Office Equipment <ul><li>Immediate, low cost: </li></ul><ul><li>Turn equipment off to prevent wasting energy </li></ul><ul><li>Reduce equipment usage, by only turning on the piece of equipment you need </li></ul><ul><li>Recycle and re-use office equipment whenever possible </li></ul><ul><li>Place equipment near naturally ventilated areas, such as photocopiers that generate heat and put increased pressure on air conditioning units </li></ul>
    27. 27. The B usiness W orld is C hanging N ew business environment New brand landscape New consumer culture Legislation and regulation mean sustainability is more than a “nice to have” Consumers expects brands to take action on global issues not just on brand issues <ul><ul><li>Consumers want to know what’s behind your company image </li></ul></ul>93% of Chinese people would rather buy from companies that are trying to reduce their contribution to global warming ( Havas 2008) 85% of Americans would switch to another company's products or services if they found out about a company's poor corporate responsibility ( National Geographic G reendex S urvey 2008) New EU legislation on carbon emissions, energy efficiency, waste, recycling and water is out in 2009; other countries will follow soon N ew economic environment In the global economic crisis, everyone is focusing on their bottom line Environmentally focused companies have performed up to 33% better that their peers in the financial markets ( AT Kearney 2009)
    28. 28. What’s Y our S tory?
    29. 29. More Information We would like to direct you to the online version of the guide found at: Kindly encourage your colleagues and supply chain contacts to have a look at the guide.
    30. 30. Thank Y ou. Please contact the CCBF Secretariat if you have any further questions.