Post on 14-Sep-2014
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The Carbon Audit
In this session we will attempt to answer the following questions:
1. What is a Carbon Audit?2. Why should we do a Carbon Audit?3. How do you do a Carbon Audit?4. How does Carbon Footprinting impact
on the marketing process?5. What are the organisation’s options?6. Where to look for further information
1: What is a Carbon Audit?• A means of measuring and recording the CO2
(Carbon Dioxide) emissions of an organisation• Sometimes called a ‘Carbon Footprint’• Includes:
– direct power usage (from fuel-powered sources)– fuel-powered transport (haulage & travel)
• The ‘wider footprint’ may include:– waste and recycling policy– carbon saving arrangements with supply chain partners– carbon saving arrangements with employees
• Carbon Audit is the first step in developing a Carbon Strategy
• Carbon Strategy: A long term action plan to manage and reduce the carbon emissions of the organisation and its clients
• Carbon Strategy is compulsory in certain designated industries (eg steel and car manufacturers)
1: Carbon Audit and Carbon Strategy
2: Why should we do a Carbon Audit?
• Global Warming is being caused by Green House Gasses (GHGs)
• Carbon Dioxide (CO2) accounts for 85% of all GHGs
• 1997 Kyoto Protocol (ratified by UN membership 2005) establishes targets for industrialised nations to cut carbon emissions
• UK target: to cut emissions to 12.5% below 1990 level by 2012 (failure likely)
• World average target is 5.7% below 1990 levels
• Corporate social responsibility policies• Employee & customer expectations• Brand value• Further legislation likely• Potential 20% saving in energy
consumption (The Carbon Consultancy)• Carbon reporting provides superior
management data
2: Why should we do a Carbon Audit?
2: The Climate Change Levy
• A new business tax on the use of all energy - introduced in 2001
• Applies to electricity, gas, coal and lpg (liquid petroleum gas)
• Oil, diesel and petrol taxed under the Hydrocarbon Fuels Act
3: How do you do a Carbon Audit?
3: How do you do a Carbon Audit?
• A carbon analyst calculates the carbon footprint in accordance with ISO Standard 14064
• International organisations apply GHG Protocol standards
• Carbon Reporting is split: – a) Power b) Travel
Core Footprint:• Power:
– electricity grid, natural gas, oil-fired• Transport:
– road mileage (vehicle type), rail mileage, air mileage (origin-destination)
– Road haulage (mileage & weight) air freight (weight) courier mileages
3: How do you do a Carbon Audit?
Wider Carbon Footprint:• Materials (waste and recycling)
– Paper used (quantity & type)– Materials sent to recycling (quantity & type)– Waste not recycled (mixed, by weight)
• Detailed Footprint Analysis– Detailed energy usage by supplier– Detailed air & road travel (vehicle class and mileages)– Commuting: distance and type for all employees– Other savings e.g. video conferencing
3: How do you do a Carbon Audit?
Reporting:• Total emissions, core and non-core• Power used per square foot (offices)• Carbon value per employee (per job /
project / department)• Benchmark results inter- and intra-
industry
3: How do you do a Carbon Audit?
4: How does Carbon Footprinting impact on the marketing process?
There are two theoretical frameworks which can provide a basis for an environmental audit of the marketing process:
a) The ‘Green’ 7 Psb) The ‘Value Chain’
4: a) The ‘Green’ 7 Ps• Product
– Finite or renewable sourced materials?
– Manufacturing processes – Environmental impact in
use and disposal• Price
– Additional costs incurred– Marketplace price
sensitivity• Place
– Distribution and Retail operations
• Promotion– Communicate customer
value– ‘Green’ means of
communication• People
– Training and support• Physical Evidence
– Branding, Packaging, other?
• Processes– Procedures & policies eg
green travel arrangements
4: b) The Value Chain (Porter)
Primary Activities:• Inbound Logistics
– Arrangements for sourcing and receiving outsourced materials and services
• Operations– Internal manufacturing and processing
• Outbound Logistics– Packaging and distribution
• Sales– Efficiency of sales processes
• Service– Added value service procedures
4: b) The Value Chain (Porter)
4: b) The Value Chain (Porter)
• Human Resources• Training, motivations,
values
• Technology• Alternative & energy
efficient
• Marketing• Materials and messages
• Procurement• Carbon-audited inputs
• Strategies• Corporate environmental
positioning
• Procedures• ISO 14000?
• Infrastructure• Energy-efficient facilities• Financial policies
• IT Systems• Alternative energy-saving
processes
Support Activities:
5: What are the organisation’s options?
• Carbon offsets:– Calculate emissions from specific activity
(e.g.per journey) and pay third party to reduce CO2 by similar amount (e.g. plant trees)
• Carbon funding:– Buy emission reductions being created by
another project (as capital start-up and / or as income)
• Certified Emissions Reductions (CERs)– Verified emission savings can be sold
through the EU Emissions Trading Scheme (EUETS)
• UK Emissions Trading Scheme– Companies with Climate Change Levy
Agreements can buy and sell credits with other UK companies
5: What are the organisation’s options?
Generic solutions:• Cut energy usage• Cut waste• Increase re-cycling• Cut down travel & haulage mileage• Reduce commuting
5: What are the organisation’s options?
• Create carbon-conscious corporate culture• Balance short term ‘PR opportunities’ with long term
carbon strategy objectives• Integrated carbon strategies (not just one carbon
reduction strategy)• Improve carbon / energy / travel reporting procedures• Devolve responsibility for energy efficiency to
departmental level• Engage employees in work-based and domestic
carbon reduction initiatives
5: What are the organisation’s options?
6: Further information
Government:• http://www.direct.gov.uk• http://actonco2.direct.gov.uk• http://www.defra.gov.uk
Other:• http://www.carbontrust.co.uk• http://www.carbonbalanced.org• http://www.carbonmanagers.com• http://www.thecarbonconsultancy.co.uk• http://www.iso.org• http://www.iso-14001.org.uk