Reducing the climate change impact of everything we buy Food & Drink Innovation Event: Carbon...

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Reducing the climate change impact of everything we buy Food & Drink Innovation Event: Carbon Footprinting versus Labelling Euan Murray 17 th October 2007

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:

Pilot carbon reduction label

Independent measurement

“Reduce or lose” commitment

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

Making Business Sense of Climate Change

QUESTIONS