Slide Title

GEM – Green Enterprise Model

Iain Humphries

Andrew Crawford-Bailey

Contents

• Background

• The Drivers Behind Sustainable Business

• What Is The Carbon Footprint?

• What Does The Carbon Footprint Include?

• Why Calculate The Carbon Footprint?

• How Is The Carbon Footprint Calculated?

• What is GEM?

• GEM Engagement Model

• Service Elements

• Cost Model

• Benefits

• Next Steps

Background

• The “Green” agenda is becoming more high profile with:

– Increasing levels of media coverage

– Impending Government legislation forcing companies to report

and reduce their carbon emission levels

– Increasing levels of personal awareness

• “Sustainability” means integrated, long term thinking - doing things

that have social, economic and environmental benefits - crucially it

is about taking positive action now to turn around 'unsustainable'

trends - whether it's rising greenhouse gas emissions or inflexible

working practices.

• The GEM Service from Innov8ive is aimed at enabling

organisations to embrace sustainability in a away which benefits

their business on a broad front – and in the most cost efficient way

possible!

• Business Growth. “Look at it as a tool to reduce costs and increase revenue. Revenue minus costs equals profit.” (The Sustainable MBA: Giselle Weybrecht)

• Regulation. The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) is the UK's mandatory climate change and energy saving scheme, due to start in April 2010.

• Ethics. Corporate responsibility to support initiatives reducing carbon emissions and enabling energy efficient business.

• Brand and Image: Customers are becoming more aware and increasingly selective around organisations that support the “Green Agenda”. Companies actively pursuing sustainability are currently seen as forward thinking – this will soon change to those that are not being seen as backward!

• Employee Satisfaction: Equally, employees are increasingly unhappy to work for organisations that do not embrace sustainability – and their working practices can be made more flexible by adopting this in the right way.

The Drivers Behind Sustainable Business

• What Is The Carbon Footprint?

– A ‘carbon footprint’ measures the total greenhouse gas emissions caused directly andindirectly by a person, organisation, event or product.

– The footprint considers all six of the Kyoto Protocol greenhouse gases: Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6).

– A carbon footprint is measured in tonnes of carbon dioxide equivalent (tCO2e). The carbon dioxide equivalent (CO2e) allows the different greenhouse gases to be compared on a like-for-like basis relative to one unit of CO2. CO2e is calculated by multiplying the emissions of each of the six greenhouse gases by its 100 year global warming potential (GWP).

The main types of carbon footprint are:

• Organisational

– Emissions from all the activities across the organisation, including buildings’ energy use, industrial processes and company vehicles.

• Product

– Emissions over the whole life of a product or service, from the extraction of raw materials and

manufacturing right through to its use and final reuse, recycling or disposal. Carbon Footprint?

What Is The Carbon Footprint?

Source: The Carbon Trust

What Does The Carbon Footprint Include?

• Organisations create a Carbon Footprint in two ways:– Directly: through production

of emissions in the course of doing business, supporting company locations, power consumed etc

– Indirectly: emissions created by employees commuting to their place of work, fuel used in producing consumables used, power used in waste processing etc

Why Calculate The Carbon Footprint?

The 2 main reasons for calculating an organisational carbon footprint are that

it will help you to:

• Manage and reduce emissionsReducing an organisation’s carbon footprint often results in cost savings. Analysing yourorganisation’s carbon footprint will help you to identify and prioritise areas for potential reduction.

• ReportingMore and more organisations want to be able to demonstrate their carbon footprint for reasons of:

– Mandatory reporting requirements Climate change legislation such as the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme or EU Emissions Trading Scheme require such reporting, for example.

– Corporate social responsibilityShowing that you are behaving in a responsible and ethical way is becoming ever more important

– Responding to requestsPartners, customers and investors are increasingly interested in carbon emissions data. There are

also carbon reporting initiatives such as the Carbon Disclosure Project.

• Note: If you are going to disclose your carbon footprint publicly, then you need to make sure that it has been calculated properly.

Most organisations follow the Greenhouse Gas Protocol Initiative and some even get the calculation independently verified.

Source: The Carbon Trust

How Is The Carbon Footprint Calculated?

• Carbon dioxide equivalent

– “Each greenhouse gas—carbon dioxide, methane, CFCs, etc.—has a different atmospheric concentration, and a different strength as a greenhouse gas. A potent greenhouse gas with a very

small atmospheric concentration can contribute to the overall greenhouse effect just as much as a

weaker greenhouse gas with a much larger atmospheric concentration. Because of this variability,

carbon footprints are measured in tons of CO2-eq, or the tons of CO2 that would cause the same

level of radiative forcing as the emissions of a given greenhouse gas.” (Source: EoEarth.org)

• To calculate an organisation's Carbon Footprint, it is first necessary to identify the causes of emissions – both direct and indirect.

• Once the causes have been identified, the level of emissions assessed and their Carbon Equivalence calculated (using standard DEFRA equivalnce guidelines). Data required for this includes

– Fuel usage (e.g. gas and electricity bills)

– Vehicle usage

– Electricity bill

– Employee travel methods and records

– Consumables used

– Supplier delivery methods

• Finally, this data is combined to give an overall measure of the emissions caused by an organisation undertaking its business – in tonnes of CO2 equivalent

CO2

What is GEM?

• GEM is Innov8ive’s “Green Enterprise Model” service – aimed at enabling

organisation’s to achieve their Carbon Reduction Commitment (CRC) in the

most cost-effective and beneficial way.

• GEM is based upon the principle of self-funding improvement i.e. the costs of

improvement will be offset by savings made – often with the savings coming

first!!!

• GEM is an all-encompassing service that is based upon a “bottom up” approach

i.e. analysis of the business drives the strategy based upon real and

comprehensive data

• GEM Strategy Output can and will encompass:

– Expense Management

– Procurement Strategy

– Business Process Change

– Technology Change

GEM Engagement Model

Fuel Costs

Review

Strategy

Implementation

Telecoms

Cost

Review

Create

Budget

“Pot”

Measure

Footprint

Define

Strategy

Roadmap

Detailed

Strategy

Design

Review

And

Monitor

Continuing support and review enables ongoing savings to

be realised and “Continuous

Improvement” model to be implemented

• Early focus on reducing

operational costs to create

funding for CRC Strategy

• Strategy focussed on early

benefit delivery whilst achieving

CRC targets

• Ongoing savings achieved

through continual monitoring

enabling further investment

• Initial savings made on a “no

gain, no pain” basis i.e. no fees

charged unless minimum 10%

savings realised across fuel

and telecoms expenditure

Service Elements

• Energy Expenditure Review

• Telecoms Expenditure review

• Carbon Footprint Modelling and Calculation

• Flexible Working Strategy (Unified Comms)

• Electronic Communication Strategy (Print

Reduction)

• Sourcing Strategy review

• Network Optimisation

• Server Virtualisation Strategy

• “Green” Data Centre Modelling

• Location and Facilities review

Benefits

• Long Term Sustainability of Corporate Objectives

• Achievement of Regulatory Requirements

• Reduced Costs

• Improved Public Perception

• Improved Market Perception

• Increased Revenues

• Increased Profitability

• Increased Share Price

• Improved Employee Satisfaction

Cost Model

• Initial review of Fuel and Telecoms expenditure delivered on “no gain, no

pain” basis

– Guaranteed 10% saving

– £2500 upfront fee, returned if less than 10% realised

– 5% of ongoing savings fee once 10% savings identified

• Savings realised allocated to GEM budget to fund analysis and strategy

definition

• Additional savings identified as result of strategy used to offset costs of

implementation e.g.:

– Further fuel savings through server virtualisation resulting in lower power requirements (fewer servers, less air conditioning etc)

– Lower premise and travel costs through implementation of flexible working (remote access via updated telecoms infrastructure, Unified Communications etc)

– Lower costs of line rental through move to Voice Over IP and reduction in voice only network

– Upgrade to network to support VoIP using lower power rated switches resulting in lower fuel costs

Next Steps

• Initial meeting to explore current challenges and

overall approach

• Outline proposal

• Follow-up meeting to agree scope and detailed

plan

• Commercial Agreement and commencement

Thank you