Carbon Neutrality Business Case & Avoiding Greenwashing

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  • Thank the ABIC conference organisers My history in tourism “my name is Steve Andrew & I had been in the tourism industry for nearly 10 years. Eco tours, engage people in environmental issues. offsetting my bus & planting trees 3 years ago. I set about finding out what it all means, what ofsetts, carbon nuetrality etc and what is the right way to go about it. I’m Sick of hearing about climate change talk. Talk talk talk talk I’m over it, I’m only intered in climate action. Each report speaks of more diabolical consequences if we don’t act immeditely . Is there anyone elso here who has done something about climate change (beside Addictive entertainment & Intrepid) anybody elso carbon neutral? I think the reason is that most don’t know how to go about it….thats what this presentation is about.
  • Carbon Neutrality is a very public statement and needs to be authentic and verifiable , otherwise concerns of green wash and integrity are raised. Calculate your Carbon Footprint using an approved, independent Audit methodology There are methods and factors and I will explain them next. Currently it is a voluntary market and there is a need to needs to use current best' practices’ Set Boundaries & definitions of Audit You will be judged on the boundaries and definitions of the audit,. It will define the degree of responsibility you take in the process which will Develop Carbon Emissions Inventory Identifies all your emission sources by percentage to identify where major emission losses occur. Becomes an important diagnostic tool . Reduce where possible Before the offset is purchased you need to see where emission savings can occur Residual amount is offset The offset is not the most important part. It is a piece of the puzzle not the answer to climate change . A lot of people are focussing too much attention on the offset, not enough on the process . Publicly substantiate your Carbon Neutral claim . Without a public statement it is hard to trust the claim . The first thing I ask is prove it to me.
  • (GHA) Indications of how many hectares are needed per person , per nation, to produce the resources it consumes for food production , water, energy use & the obsorbtion of the waste. We are currently unsustainable Ex. If you were running a business and it was continually in defecit (debt ) wouldn’t you change the way you do business.
  • WRI World Resource Institute WBCSB World Business Council For Sustainable Development Scope 3 Whilst being optional Scope 3 offers the greatest transparency in its inventory and creates a larger scope of potential influence
  • Scopes are reporting boundaries or guidelines.
  • Emissions Inventory list for Addictive entertainment (neighbours and bunyip tours & phillip island)– congratulate george on taking a bold step & explain he wanted to adopt greener policies. Explain importance of Scope 3 The larger the footprint you
  • Marketing advantage over other operators Example of customers booking from London. E.G of pr for PR for Intrepid
  • You cant manage what you cant measure
  • Carbon Neutrality Business Case & Avoiding Greenwashing

    1. 1. ‘ Carbon Neutrality For Business: How to engage business in the Carbon Economy as a Value add’ Steven Andrew – Principal Consultant Climate Change solutions for a more balanced world!
    2. 2. Sustainability “ A sustainable business will not survive in an unsustainable environment”
    3. 3. Climate Change Concerns <ul><li>Climate change threatens the basic elements of life for people around the world - access to water, food production, health, and use of land and the environment. (Stern Review –The economics of climate change) </li></ul><ul><li>We should be under no illusion about the scale, economic cost and complexity of this transition, one which is arguably the most far-reaching since the industrial age. ( Business Council of Australia - 2007) </li></ul>
    4. 4. Rate of change <ul><li>1901 1 billion 5% Earths Resources </li></ul><ul><li>1961 3 billion people 50% Earth Resources </li></ul><ul><li>1986 5 billion 100% Earths Resources </li></ul><ul><li>2001 6 billion 120% Earths Resources. (1.2 Earths) </li></ul><ul><li>2007 6.78 billion 139% Earths Resources (1.39 Earths) </li></ul><ul><li>2050 9 billion 200% Earths Resources (2.0 Earths) </li></ul><ul><ul><ul><ul><ul><li>* Tim Flannery The Weather makers </li></ul></ul></ul></ul></ul>
    5. 5. Speed of change <ul><li>Previous fastest change was 1 degree in 1000 years </li></ul><ul><li>Current temperature rate is 30 times faster </li></ul><ul><li>In 100 years the population changed from 1 to 6 billion people </li></ul><ul><li>Each person uses 4 times as much energy as their forefathers, </li></ul><ul><li>24 billion fold increase in energy use in 100yrs </li></ul><ul><li>Every 4 ltrs petrol requires 100 tonnes of ancient plant life for its </li></ul><ul><li>creation. </li></ul><ul><li>Energy used in one year (1997) equivalent of 477 years of fossil sunlight </li></ul>
    6. 6. Global Ecological Footprints <ul><li>(GHA) Indications of how many hectares are needed per person , per nation, to produce the resources it consumes for food production , water, energy use & the absorption of the waste. </li></ul><ul><li>Our combined global footprint (gha) requires the resources of 1.39 Earths, (39%) overuse . </li></ul><ul><li>Mankind is currently running out of balance with the earths global resources. (39% deficit & increasing) </li></ul><ul><li>Ecological Global Footprint per country (www.footprintnetwork.org) </li></ul><ul><li>America 9.5gha (5.2 E) </li></ul><ul><li>Australia 7.7gha (4.2E) </li></ul><ul><li>United Kingdom 5.4gha (3.0E) </li></ul><ul><li>New Zealand 5.5gha (3.0E) </li></ul><ul><li>Germany 4.5gha (2.5E) </li></ul><ul><li>China 1.7gha (.97E) </li></ul>America 9.5 gha (5.2 E) Australia 7.7 gha (4.2 E) United Kingdom 5.4 gha (3.0 E) New Zealand 5.5 gha (3.0 E) Germany 4.5 gha (2.5 E) China 1.7 gha (.97 E) India .79 gha (.44 E)
    7. 7. Effects of Climate Change <ul><li>Adverse weather patterns </li></ul><ul><li>Melting Polar Ice Caps </li></ul><ul><li>Increase in Ave temperature </li></ul><ul><li>Irregular rainfall patterns </li></ul><ul><li>Increase in desertification </li></ul><ul><li>More erratic storm events </li></ul>
    8. 8. Responsibilities of Business <ul><li>Identify their effects / contribution to climate change </li></ul><ul><li>Develop strategies for reducing their overall impact </li></ul><ul><li>Communicate to stakeholders, staff & consumers </li></ul><ul><li>Effect change in their distribution or reseller channel </li></ul><ul><li>Become a champion of change and benefit from the challenge, not cringe at the cost. </li></ul>
    9. 9. Carbon Neutrality – A Strategy for Change <ul><li>What is Carbon Neutral? </li></ul><ul><li>How to Achieve Carbon Neutrality </li></ul><ul><li>Best Practices / Methods & Factors </li></ul><ul><li>Benefits to Business </li></ul><ul><li>Marketing & Promoting your message </li></ul><ul><li>Do it right & avoid ’greenwashing’ the process </li></ul>
    10. 10. What is Carbon Neutral? <ul><li>When an organisation, event or individual, has: </li></ul><ul><li>Calculated & Identified its carbon footprint </li></ul><ul><li>Put in place reduction techniques to reduce its footprint </li></ul><ul><li>The residual footprint is offset via accredited Carbon offsets. </li></ul><ul><li>The business, entity, has balanced its emissions with its combined </li></ul><ul><li>reductions & carbon offset savings. </li></ul><ul><li>Carbon footprint = 655 tonnes C02-e/ </li></ul><ul><li>Carbon reductions & offsets (255 + 400) = 655 tonnes CO2-e </li></ul><ul><li>= 1.0 balanced </li></ul>
    11. 11. How to achieve a credible Carbon Neutral Solutions <ul><li>Calculate Footprint using an approved, independent, audit methodology. </li></ul><ul><li>Develop Carbon Emissions Inventory = </li></ul><ul><li>Reduction strategy both short & long term </li></ul><ul><li>Only use government approved Offsets </li></ul><ul><li>Be Transparency: Measurable / Publicly reported & Verifiable </li></ul>
    12. 12. Best Practice Methods & Factors <ul><li>GHG Protocol: A Corporate Accounting & Reporting Standard (WRI & WBCSD) </li></ul><ul><li>ISO Standards 14064 & 14065 </li></ul><ul><li>NGA Factors 2008 (Dept Climate Change) </li></ul><ul><li>Offsets approved by AGO / NGGAS / VER </li></ul><ul><li>Kyoto compliant CDM </li></ul><ul><li>5. Publicly Report your claim to avoid Greenwash . Transparency will save you. </li></ul>
    13. 13. GHG Protocol: (WRI / WBCSD) Scopes 1,2 & 3 <ul><li>Scope 1 Direct emissions on site energy </li></ul><ul><li>Scope 2 Indirect emissions electricity </li></ul><ul><li>Scope 3 Other Indirect emissions </li></ul>
    14. 14. GHG Protocol Scopes 1,2 & 3 <ul><li>Mandatory </li></ul><ul><li>Scope 1: Onsite Energy Use Petrol & Misc. </li></ul><ul><li>Scope 2: Offsite energy use (Electricity & Steam) </li></ul><ul><li>Optional </li></ul><ul><li>Scope 3 Indirect emissions: Supply Chain, LCA, contractors, transport, staff commuting, flights, waste removal, land use changes, refrigerant gases & more. </li></ul>
    15. 15. GHG Emissions Inventory Report
    16. 16. Substantiate your claim: Transparent, Verifiable and Measurable <ul><li>Logos </li></ul><ul><li>Brochure </li></ul><ul><li>Websites </li></ul><ul><li>Building </li></ul><ul><li>Vehicle </li></ul><ul><li>Carbon Balanced Statement </li></ul><ul><li>Public report </li></ul><ul><li>Explains & defines the approach </li></ul>
    17. 17. Carbon Neutral Solutions Provides : <ul><li>Umbrella environmental policy </li></ul><ul><li>Accountability of business impact on Global Warming </li></ul><ul><li>Engages staff & Management </li></ul><ul><li>Offers a vehicle of communicating to stakeholders </li></ul><ul><li>Investigates innovative reduction solutions </li></ul><ul><li>Channels investment into ‘greener’ solutions. </li></ul><ul><li>Improves corporate identity & social recognition </li></ul><ul><li>Marketing advantage to differentiate against others </li></ul><ul><li>Continual annual reporting </li></ul>
    18. 18. Carbon Neutrality What The ACCC Says <ul><li>Carbon neutrality is, broadly speaking, achieved by reducing and offsetting a business or individual’s carbon dioxide equivalent (CO2-e) producing activities and requires comprehensive accounting of the carbon footprint. </li></ul><ul><li>At present, there are no mandated standards regarding carbon offsets and carbon neutrality in Australia. However, there are various recognised standards and an emerging consensus of ‘best practice’ in the area, that may help consumers and business assess claims. </li></ul><ul><li>The Australian Government has committed to developing a national carbon offset standard by the end of 2008. This commitment includes setting minimum standards for the generation,verification and retirement of offset credits. </li></ul><ul><li>The current absence of a mandated standard does not mean that carbon offset claims </li></ul><ul><li>are unregulated. Any carbon offset claim you are considering needs to be assessed against the requirements of the Act. </li></ul><ul><li>Failure to abide by the rules set out in the Act can result in serious penalties. </li></ul>
    19. 19. Carbon claims and The Trade Practices Act <ul><li>Do not mislead Public </li></ul><ul><li>Carbon claims need to be; </li></ul><ul><li>Truthful </li></ul><ul><li>Accurate </li></ul><ul><li>Substantiated </li></ul><ul><li>Misleading conduct </li></ul><ul><li>Likely to mislead or decieve </li></ul><ul><li>It’s the consumers impression not your intention when communicating </li></ul><ul><li>Silence can be misleading </li></ul>If you advertise offsets that sequester carbon through tree planting, but fail to disclose that the planting of those trees will not occur for several years, this could constitute misleading by silence.
    20. 20. Carbon Offset Claims & The Act. Good quality ‘Charismatic’ Offsets V Low Value <ul><li>Additionality </li></ul><ul><ul><ul><li>A routine upgrade of equipment, or changes in response to a regulatory </li></ul></ul></ul><ul><li> requirement cannot be regarded as additional. </li></ul><ul><li>Timing and forward credited offsets </li></ul><ul><ul><ul><li>Offsets not generated yet, in the future </li></ul></ul></ul><ul><ul><ul><li>Secure replacement if project doesn’t deliver </li></ul></ul></ul><ul><ul><ul><li>Risky proposition </li></ul></ul></ul><ul><li>Double counted Offsets </li></ul><ul><ul><ul><li>Listings with a transparent registry </li></ul></ul></ul><ul><ul><ul><li>Retiring offsets each year </li></ul></ul></ul><ul><li>Low Quality Offsets </li></ul><ul><ul><ul><li>May be unsuited to your claims </li></ul></ul></ul><ul><ul><ul><li>Emotive or technical offsets? </li></ul></ul></ul><ul><li>Co-benefits </li></ul><ul><ul><ul><li>Don’t overdo the added benefits </li></ul></ul></ul><ul><li>Standards, accreditation and logos </li></ul><ul><ul><ul><li>Adhere to any standards or fall back on industry best practices. </li></ul></ul></ul>
    21. 21. Business also depends on one of these to Survive.

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