FORS Members Webinar Learn how to reduce your fleet carbon emissions

& provide your business with a competitive edge

Your hosts for today

Paul Wilkes

FORS

With over a decade of experience

in fleet management, Paul

manages the day to day running

of the Fleet Operator Recognition

Scheme (FORS). Previous roles

have included managing the fleet

plan for Royal Mail Group where

he reviewed alternative fuel

options for different types of fleet

from network trunking to courier

deliveries.

Introductions

Andy Allen

BP Fuel cards

Andy Allen is the BP’s Fuel

Card Manager, responsible for

marketing BP’s Fuel Cards to

over 50,000 businesses

across the UK. Andy has been

with BP for 19 years and

previously worked in BP's

Aviation Fuel division.

Mike Capper

BP Target Neutral

Mike leads global business

development for BP Target

Neutral, BP’s not-for-profit carbon

management programme.

Mike has helped develop and

launch low carbon customer

propositions across the fuels,

lubricants and petrochemicals

businesses.

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Please post questions as we run

through the presentation and we will

try and respond as we get them

Agenda

Session 1, 3

rd May

Why fleets should act now to cut costs and

carbon?

1. Understanding the climate challenge at a

global and business level

2. Why you should act now on reducing

emissions and the business and brand

reputation benefits of action

3. Understanding key concepts in carbon

management

4. Building a carbon management plan

Understanding the

climate challenge

What is Climate Change?

Understanding the climate challenge

There is scientific certainty

that human activities are the

dominant cause of global

warming, and with energy

demand projected to

increase by 37% (2013-35),

associated emissions will

rise by 25% *

*IPCC Fifth Assessment Report Climate Change 2013

The effect of climate change on our eco-system

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-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

degrees Celcius

Why is climate change happening?

Greenhouse Gas (GHG) emissions are rising

Source: NOAA/Scripps

In Sept 2016 atmospheric CO2

concentrations exceeded 400ppm

Global Temperature: Difference from 20th

century average

Atmospheric CO2 concentration

Understanding the climate challenge

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Where do GHG emissions come from?

Agriculture

Buildings

Transport

Industry

Other

Coal

Oil

Gas

Land-use change

Other

GHG emissions by source GHG emissions by economic sector

Source: IPCC AR5 Source: University of Cambridge

Understanding the climate challenge

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Transport & Industry accountable for much of this

growth in demand

- Transport demand

largely driven by

vehicle ownership

- Vehicle ownership

doubles from 1.2bn

to 2.4

- This is factoring in

vehicle fleet

efficiency

increasing to 2-3%

p.a. compared with

1.5% p.a. over the

past decade.

- That is 50mpg vs

30 today

Source: BP 2035 Energy outlook, 2016; BASE case

Transport is forecast to increase oil demand

Driven by vehicle ownership in China and India

Understanding the climate challenge

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4) The five coloured lines show

potential pathways we’ll follow,

depending on how much fossil

fuels humans burn over the

coming decades. If we burn all

available fossil fuel reserves (the

black “Wink12k” line), we’ll see

faster climate change than in the

entire 420 million year record.

Nature Communications: Forster et al 2017

…but it can’t be at the expense of Earth’s energy balance

1) 75m years ago the climate

experienced volcanic activity

raising carbon levels

significantly

100m years 1m years

2) Earth’s climate has been

fairly stable over the past

several million years

Understanding the climate challenge

3) The increase in GHG levels could

potentially cause impact faster climate

change than the Earth has seen in 50

million years

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Understanding the climate challenge

– Aim to hold temperature rise to well below 2oC, pursue efforts

for 1.5oC.

– Peak emissions asap and balance emission sources and sinks

2050-2100.

– Allows for emissions trading and possible carbon pricing

• Supported by bottom up short-term climate pledges. Countries must:

– Submit “nationally determined contributions” (NDCs)

– Report every 5 years from 2023 and ramp up ambition each time

The 2015 Paris agreement has been ratified

Source: Climate Analytics, March 2017 10

What the EU has committed to

Based upon 1990 emissions figures the E.U has committed to ambitious carbon

reduction goals:

1. Domestic reduction of at least 40% by 2030

2. Long-term reduction of 80-95% by 2050

Understanding the climate challenge

Performance of the EU between 1990 and 2014 has

decreased emissions by 27%, or approximately 1.3% per

year

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1. Brand/Reputation

2. Legislation

3. Business/Tenders

4. Stand out from competitors

5. Want to do the ‘right thing’

Question: What is your main reason for action on

climate change?

Why you should act now

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Why fleets should act now

1. Legislative: meeting the Paris goals will encourage Governments to introduce

policies which focus on decarbonisation of the transport fleet (EU legislation)

2. Business: end users are seeking products and services with environmental and

ethical authenticity (sales driven)

3. Reputation/Investment Profile: organisations want to be seen to be a good

corporate citizen which is driving company policies on carbon (impacting tenders)

4. Differentiation: helping a business to stand out from its competitors

GHG emissions are of growing significance for fleets for a

number of reasons

Why fleets should act now

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• PWC Report on Sustainability, 2015: Not so long ago, most

companies saw sustainability as little more than a peripheral ‘green’

issue – useful for reducing energy and waste disposal costs or

supporting some worthy community causes but hardly central to a

company’s core business.

• That view is changing. Companies all over the world are waking up to

the reality that environmental sustainability is a key consideration as

they confront and adapt to a range of disruptive forces including

globalisation, increased urbanisation, access to raw materials and the

availability of natural resources like water, uncertain energy costs, and

looming regulation on carbon emissions.

• As a result sustainability is moving from the corporate side-lines into

the mainstream.

Sustainable business is going mainstream

Why fleets should act now

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Legislative

Driven by the E.U, decarbonising transport has three priority areas:

Increasing the efficiency of the transport system by making the most of digital

technologies, smart pricing and further encouraging the shift to lower emission

transport modes

Speeding up the deployment of low emission alternative energy for transport,

such as advanced biofuels, electricity, hydrogen and renewable synthetic fuels and

removing obstacles to the electrification of transport

Moving towards zero-emission vehicles. While further improvement to the internal

combustion engine will be needed. Europe needs to accelerate the transition towards

low and zero-emission vehicles

Cities and local authorities will play a crucial role in delivering this strategy. They are

already implementing incentives for low-emission alternative energies and vehicles,

encouraging active travel (cycling and walking), public transport and bicycle and sharing /

pooling schemes to reduce congestion and pollution.

Why fleets should act now

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• With over 97% of FTSE 100* companies having sustainability reports and plans in

place, the approach has shifted from reducing their own emissions to seeking supply

chain support in reducing emissions

• Organisations which can offer a ‘green solution’ enable themselves to tap into the

sustainability needs of these organisations

• This also can provide a unique selling point to an offer

• Within BP we have seen this, with a number of large scale fuel customers asking for

environmental solutions within fuel tenders

Business – ‘green is good’ approach

*2015 PWC report

Why fleets should act now

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• Brand Trust - For more than half of consumers (62%) in the Nielsen global survey,

brand trust tops the list of factors that influences purchasing sustainable products and

services.

• Brands may have an opportunity to increase trust by demonstrating commitment to

social and environmental sustainability, which is even more important for consumers

who are willing to pay more.

• Consumers in developed markets (like the UK) are harder to influence and many

consider sustainability a basic cost of entry.

• Brands have to define a credible, relevant social purpose and deliver greater value.

Reputation / Investment profile

…but actions need to align with your brand and business objectives

Why fleets should act now

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• DPD ships 3 million parcels – every day

• The shipping of parcels generates a considerable volume of CO2, with 90 % of

emissions created by the actual transport operations

• At present there is no economically viable way of avoiding these emissions completely.

• However, DPD committed to providing carbon-neutral shipping for all parcels – at no

additional cost to customers

• Achieved by relying on three interrelated processes: measuring, reducing and

offsetting. • Measuring: regularly measure the greenhouse gas emissions created by the company.

• Reducing: activities aimed at reducing CO2 emissions on a continuous basis like electric or

gas powered vehicles and investment in IT to drive efficiencies

• Offsetting: By purchasing carbon credits DPDgroup finances projects for renewable energies

and clean energy generation and offsets unavoidable transport emissions

Why fleets should act now

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• As part of their EarthSmart® initiative, FedEx has chosen BP Target Neutral as sole

provider of carbon offsets to neutralize the transport emissions associated with the

global delivery of every FedEx® envelope

• BP Target Neutral offsets the CO2 of 200 million envelope deliveries every year

• FedEx pair the offsetting with a full Reduce, Replace strategy which includes looking

at lower carbon delivery options such as a pilot with Nissan using the e-NV200

delivery van in cities like Singapore

Why fleets should act now

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• Since 2014, Grundon have achieved CarbonNeutral® certification across their entire

491-strong road-going vehicle fleet

• Grundon have minimise have invested in new environmentally-friendly vehicles and

worked with our drivers to provide fuel efficiency training

• Despite successfully reducing fuel consumption per mile year-on-year, fleet emissions

continue to be the largest contributor to the overall carbon footprint

• For the CO2 emissions that can’t currently be avoided Grundon work with Natural

Capital Partners to purchase offsets and attain carbon neutral certification

• To offset fleet emissions Grundon support a community reforestation project in

Uganda. Over the last three years: • 1,187 farmers have joined the community reforestation project in Uganda

• Forming 185 new small groups

• Planting a further 1.2 million trees

• Taking the project to a total of 5.9 million trees across 5,335 hectares - that's equivalent to

3,330 football pitches

Why fleets should act now

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• The multi-disciplined engineering company, adi Group,

offset their fleet’s carbon emissions through the BP Plus

Fuel Card

• Each time one of adi Group’s fleet of vehicles refuels at a

BP service station and uses the BP fuel card to pay, the

carbon emissions associated with the purchase will be

calculated and offset, leaving the adi Group fleet driving

carbon neutral

• 1,200 tonnes of carbon equivalent emissions offset on an

annual basis for adi Group

• Aligned to the government’s new legislation – The Energy

Savings Opportunities Scheme (ESOS)

Why fleets should act now

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Understanding key concepts in

carbon management

How Green House Gases are reported

Scope 1

Scope 2

Scope 3

Scope 3 Type Description

Scope 1 Emissions Emissions originating

onsite or through

company owned

vehicles

Scope 2 Emissions Emissions through

sourced electricity or

heat

Scope 3 Emissions Emissions from

customer and supply

chain (everything else)

Understanding key concepts in carbon management

Green House Gases (GHG’s) are categorised into three core elements

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Terminology: vehicle CO2 emissions accounting.

Vehicle CO2

emissions + =

TTW tank-to-wheels

Emissions created

from raw material

extraction,

production of vehicle

Emissions created in

producing and distributing

the fuel / energy source

Emissions created in

using the fuel /

energy source in the

vehicle

+

WTT well-to-tank

WTW well-to-wheels

LCA life-cycle analysis Other terms

Carbon intensity : fossil CO2 emitted per unit energy

Vehicle

Disposal

+

Understanding key concepts in carbon management

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Question: Do you already measure emissions?

1. Full life-cycle

2. Just tail pipe emissions

3. Just fuel

4. Not measuring

Understanding key concepts in carbon management

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Building a carbon

management plan

How to build a carbon management plan

Stage Activity

1. Commitment Confirming what is being committed to

and timeframe

2. Base Year The year a footprint will be baselined

against

3. Subject Matter Define what will be included in the

footprint

4. GHG Footprint Calculate the footprint

5. Carbon Reduction

Plan

Develop a carbon reduction plan

6. Carbon Offsetting Offset remaining carbon footprint

7. Verification Verification of footprint, reduction and

offsetting activity

8. Certification Certification awarded

9. Reporting Publish carbon reduction report

1. Commitment

2. Base Year

3. Subject

Matter

4. GHG

Footprint

5. Carbon

Reduction

Plan

6. Carbon

Offsetting

7. Verification

8. Certification

9. Reporting

Building a carbon management plan

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Question: Do you have a carbon

management plan in place?

1. Yes

2. No, but planning to implement

3. No, wouldn’t unless we had to

Building a carbon management plan

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Next week’s webinar, 9th

May, 3-4 pm,

we will focus on…

Best practice in carbon management following a :

1. MEASURE: Understanding how you can measure your emissions through existing tools at your disposal

2. REDUCE: lowering emissions through methods such as improved driving techniques and how fleet monitoring via

telematics and tools

3. REPLACE: how selecting alternatives can lower your emissions, ranging from fuel type, lubricants, vehicle selection

4. NEUTRALIZE: how carbon offsetting can work as part of a broader carbon management strategy. How it works,

the environmental, social and economic benefits

How you can integrate these into a single solution

Next week

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