Carbon Audit


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An introduction to the Carbon Audit for businesses

Published in: Business, Technology

Carbon Audit

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