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Transcript of Reducing the climate change impact of everything we buy Food & Drink Innovation Event: Carbon...
Reducing the climate change impact of everything we buy
Food & Drink Innovation Event:Carbon Footprinting versus Labelling
Euan Murray
17th October 2007
Agenda
Background to supply chain engagement
Carbon Trust’s pilot product footprinting & labelling work
The Future: standard development, industry engagement & pilot projects
The Carbon Trust
Who we are:
Independent company, funded by UK Government
Our role:
Help organisations reduce their carbon emissions and develop commercial low carbon technologies
Last year we:
Worked with >5,000 companies across UK
Identified savings of 4.6 million tCO2 worth £0.5 Billion in cost savings per year
What is good carbon management?
Stage 1:
Direct CompanyEmissions Reduction
Stage 2:
Supply Chain
Emissions Reduction
Stage 3 (Optional):
Offsetting
What is the footprint of a product?
Aluminium Production
Sugar farming
Cola production
Packaging
Transportation Chilled storage
Refrigeration Can collection
Recycling or disposal
Disposal & recycling
Consumer use
Raw material
Product manufacturing
Total carbon footprint of the can of cola (illustrative)
Supply chain / value chain of a can of cola
Distribution & retail
Agenda
Background to supply chain engagement
Carbon Trust’s pilot product footprinting & labelling work
The Future: standard development, industry engagement & pilot projects
Supply chain emissions reductions
Supplier energy
efficiency –
encouraging them
directly
Calculating product
carbon footprints –
identifying hotspots
Trinity Mirror example
Why the “product view” is key
Targets >50% of emissions
– Individual carbon
footprint of 11 tonnes
CO2 p.a.
The UN/IPCC, Kyoto
Protocol and China
The market – consumers
and brands
The business need is growing
Further energy cost savings– e.g. 20% reduction on Boots Shampoo project
Cost-savingstrategy
Consumer demand for companies to take action on climate change– GfK NOP (Oct 2006): 60% of consumers want to
buy from companies doing the right thing on climate change
Consumer desire for low-carbon products– Globescan (March 2007): – 60% of UK consumers want companies to
provide more PoS information on climate change impacts
– 77% want independent assurance of company claims on climate change
New marketstrategy
The word “VERSUS”: Footprinting AND/OR labelling
March launch of our work
Product Carbon Footprinting Methodology
Product Label
Standard development &
consultation
Defra & BSI British Standards
Pilot Development Projects
Launch focussed on 4 key things:
Carbon labelling: the only solution?
Businesses need to communicate through different channels:– Explanation of climate change impacts and product impacts– Explanation of how consumers can act
Labelling is not a panacea but can be part of the solution: we will learn more through the pilot projects
Independent market research shows positive trendsGfK NOP & GlobescanYouGov (Sept 207): 44% would switch to a product with a smaller carbon footprint even if it was not their first preferencePopulus Consumer Survey July 2007
– 85% concerned consumers have heard of the carbon reduction label– 68% of all consumers say the label measures ‘The amount of carbon emitted
during the whole lifecycle of the product – from ‘seed’ to ‘store’’– 49% say ‘It makes me more likely to buy their products’ when the label is
displayed on pack– 69% agree ‘It demonstrates that the company is committed to reducing its
carbon emissions’– 62% agree ‘It helps me to reduce the carbon footprint of my regular shopping’
Agenda
Background to supply chain engagement
Carbon Trust’s pilot product footprinting & labelling work
The Future: standard development, industry engagement & pilot projects
Standard Development
BSI are leading the work to develop the PAS Standard
– Appointed a Steering Group from business, NGO, academics and government
– First draft prepared, using the CT methodology as base– First of two consultations commenced– Details on the BSI website: www.bsi-global.com/PAS2050
Food & Grocery supply chains heavily involved:
– 2 representatives on the BSI Steering Group– Support from IGD, FDF, BRC and NFU– Lots of members of those organisations
Engagement, support and efforts invaluable
CT looking to test the draft BSI standard with different products and in different sectors The companies will work with us to reduce their emissions and explore the best way to communicate the results
New Pilot Projects
10 new projects:Aggregate Industries Hard landscaping productsCadbury Schweppes Dairy Milk bars Coca-Cola A still and a sparkling beverageThe Co-operative Group StrawberriesHalifax Halifax Web Saver AccountKimberly-Clark Andrex and Huggies nappies Marshalls Hard landscaping products Mϋller Dairy YoghurtsScottish & Newcastle Fosters lager & Bulmer’s ciderTesco 5 different product categories
We will do further pilots throughout the year