Product Carbon Footprints and Supply Chain …...and value of Product Footprinting Advertisinggpg...

The Geneva Association___________________________3rd CR+I Seminar 2011

5-1

Product Carbon Footprints and Supply Chain Innovation

Jan Van der Ven

Agenda

Introduction to the Carbon Trust

PAS2050 i i d d l tPAS2050 origins and development

Practical application: labels and certificates

Examples

2


5-2

Our mission is to accelerate the

move to a low carbon

economy

3 3

We deliver tangible results

£3bnWe have:

Helped our customers cut 30 Mt CO2

Established the Carbon Trust Standard and Carbon Reduction Label Pioneered energy efficiency loans: £71m interest-free loans offered to SMEs during

£3bnin energy cost savings for our customers since 2001

loans offered to SMEs during 2009/10Launched £350 million fund for low carbon refurbishments of commercial buildings


5-3

Our activities span multiple areas

Specialist advice and finance

Standards and accreditation

Investing in early stage low carbon companies

… over 10 years

Founded in 2001

Developed PAS 2050 and Footprint Expert guidance and tools

Global leader in product carbon footprint certification

UKAS accredited, independent and impartial

Dedicated team of certification professionals

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5-4

… now reaching into South East Asia

ecoWise, a Singapore based renewable energy and environmental solutions provider, became a partner in China UK Low Carbon Enterprise this partner in China-UK Low Carbon Enterprise this year

7

… with a base in Singapore

Geocycle Singapore Pte. Ltd.: largest used copper slag recycling plant in Singapore

8


5-5

… synergies in China

Chongqing ZhongtianElectronic Waste M t 12 Management: 12-year exclusive concession to collect, recover, process and dispose of electrical and electronic waste in Chongqing Chongqing Municipality

9

… and activities in Malaysia

Sunrich Integrated: Malaysia based tyre

t d d bb retreader and rubber compound manufacturer

10


5-6

Agenda




Examples

11

The world’s CO2 flows are aligned with flows of goods and commodities

Total Flows (GtCO2)

4.6

2.4 10. Europe to North AmericaOther

3%

47%10

2004 Data

0.8

2.2

2.0

1.8

1.6

1.4

1.2

1.03. China to Rest of Asia

4. Russia to Europe

5. Rest of Asia to Europe

6. North America to Europe

7. China to Japan

8. Africa to Europe

9. Rest of Asiato North America

7%

6%

5%

4%

4%

4%

4%

8

1

2

3

4

5

6

7

9

Note: Rest of Asia excludes China, Japan and IndiaData includes flow of Scope 1-3 (direct, indirect and upstream) emissions arising in region of export that are embodied in trade flows to the region of importSource: Carbon Trust Analysis; CICERO / SEI / CMU GTAP7 EEBT Model

0.6

0.4

0.2

0.0

1. China to North America

2. China to Europe

9%

8%

~50% of the carbon flows are in commodities and ~50% in products

12


5-7

By 2025, the UK’s imports could have as much carbon embodied as its domestic production

900

1,000Consumption(low decarbonisationworld)

Emissions(MtCO2)

908870

844844845

CAGR (92-25)7% 17% 25% 31% 36% 43% 49%

200

300

400

500

600

700

800

world)

Production

Net imports

Consumption(high decarbonisationworld)

463

340-444(73-96%)

499

304-371(61-74%)

844

540

269-304(50-56%)

844

584

246-261(42-45%)

845

632

213(34%)

730

608

122(20%)

663

619

43(7%)

0.7%

(0.9%)

7-8%

1.0%

0

100

200

2025202020152010200419981992

Note 1: Declining UK production emissions based on CO2 reduction involved in UK achieving 2020 carbon budget for CO2e reduction of 34% vs 1990 levels (Committee on Climate Change)Note 2: Growth in imported emissions based on continuation of historic growth in UK trade balance, and varying degrees of decarbonisation in the exporting countries. In the “high world decarbonisation” scenario it is assumed that the emissions intensity of exports from Brazil, Russia, India and China (BRIC nations) decline in line with the targets noted in the Copenhagen Accord (2009), that exports from the EU and other Annex I nations decline in line with the EU’s target to reduce emissions by 20% from 1990-2020, and that exports from the rest of the world achieve decarbonisation of the order of half that achieve in the BRIC countries. In the “low decarbonisation” scenario is assumed that the EU hits its targets as stated in the “high decarbonisation scenario”, that all other Annex I nations and the BRIC nations achieve half the level of decarbonisation as in the “high decarbonisation” scenario, and that the rest of the world does not decarbonise at allSource: Carbon Trust Analysis

13

2007 2008 2009 2010 2011 2012

PAS 2050 is the world’s first published standard

PAS 2050

WRI/WBCSD

ISO 14067ISO 14067

EU Methodology

Sustainability Consortium

14= review published

= published


5-8

PAS = Publicly Available Specification

15

Footprint Expert is a practical guide

Guide

Framework

Calculators

Database

16


5-9

Code of Good Practice provides additional guidance

17

Agenda




Examples

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5-10

Demonstrate your commitment to reduce the footprint of your product over 2 years

The Carbon Reduction Label engages customers

Commitment Explanation

Optional Number

Consumer Action

The Carbon Reduction Label can be used in more than one way

On pack Point of sale Online Sales

literaturePress

release

20


5-11

Product carbon footprint certification provides multiple benefits

Certify greenhouse gas emissions of products and services for all stages of the value chain (to PAS 2050; Code of g ( ;Good Practice; Footprint Expert)

Enable low-risk communication of the results to customers

Provide comparability over your product range

Identify and understand carbon hotspots in your supply chain

Raw material Product manufacturing

Distribution & retail Consumer use Disposal &

recycling

21

Local teamin partnership with Carbon Trust

Carbon Trust Footprinting Certification Company

Product footprinting involves a local team and centralized certification

Train Footprint Certify Communicate

Certify footprints to:PAS 2050Footprint ExpertTM

Create footprints:Choose top productsCollect data using standard guidelines for

Code of Good Practiceg g

consistency/ accuracyBuild product model using Footprint ExpertTM toolkitExpert advice, support, and training provided by the Carbon Trust

22


5-12

The Carbon Reduction Label is licensed in 19 countries

Over 5,700 productsSales ~ £3 billion / year

23

y

Agenda


PAS2050 origins and development


Examples

24


5-13

45%of UK consumers

Consumer carbon consciousness is growing

56%of UK consumers say they

say they would be prepared to stop buying their favourite brands if they refused to commit to

i th i

Source: Carbon Trust research, March 201125

of UK consumers say they would be more loyal to a brand if they could see that it was taking steps to reduce its carbon footprint

measuring their product's carbon footprint

47%of say they are more likely to buy labelled y ygoods of identical quality

1 in 5say they would buy a say they would buy a labelled product even if it cost more!

Source: Carbon Trust research, March 2011

26


5-14

Consumer goods: Coca Cola

Recognised the importance and value of Product FootprintingAdvertising campaign to g p gincrease recycling, based on footprinting results

27

Consumer goods: Walkers

Products: Assorted single-packet crispsOutcome: Identified that 59% of carbon

emissions were outside their operations and 41% inside

Reduction: Recertified footprint shows 7% reduction on 2007 footprint

Highlights: Saved £400,000; reinvested in further carbon-saving i iti tiinitiatives

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5-15

Retailer: TESCO

Products: Over 500 own-brand productsOutcome: Providing consumers with low-

bon p h ing hoi ecarbon purchasing choicesIdentifying energy and money saving actions for end users

Highlights: Key part of continued commitment to reduce emissions of products by 30% and to help customers reduce their own footprints by 50% t e o ootp ts by 50%by 2020

29

Supply Chain Analysis: Allied Bakeries

Products: Kingsmill Great Everyday White, Tasty Wholemeal, and 50/50 loaves

Outcome: Detailed supply chain analysis used as basis for cost reductions and efficiency improvements

Highlights: Working with suppliers to reduce road miles of raw inputs

Shifting to local production to reduce logistics costs and carbon emissions

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5-16

B2B products: Suzano Papel e Celulose

Products: Assorted pulp and paper products

Outcome: Gained full understanding of carbon hotspots in pulp and carbon hotspots in pulp and paper production

Highlights: First pulp and paper products company in the world and the first product of any kind from Latin America to be awarded the Carbon Reduction Label

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Premium Products: New Zealand Wine Company

Products: 750ml bottles of Mobius Sauvignon Blanc wine

Outcome: Gained full understanding of carbon hotspots in wine life cycle

Highlights: First wine in the world and the first product of any kind from New Zealand to be awarded the Carbon Reduction LabelReduction Label

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5-17

Industrial Products: CEMEX

Products: Bagged and bulk Rugby cement

Outcome: Carbon Reduction Label demonstrates progress in reducing manufacturing process carbon

Highlights: Measured cradle-to-grave footprint of cement incl ding cement, including extraction of raw materials, manufacturing, distribution, use, and disposal

33

Accelerating the move to a low carbon economy加速向低碳经济的转型

[email protected]

Product Carbon Footprints and Supply Chain …...and value of Product Footprinting Advertisinggpg...

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