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June 2011
Carbon as a Strategic Tool
WSP Environment and Energy
Andrew Bright, Technical Director
What are we going to cover?
Four Key Objectives:
� Why carbon is important to business?
� How carbon can be used in decision making?
� Example Case Studies
� Discussion: 'Where Next?'
Carbon in the News - 2025 Carbon Floor Price Escalator
Increases cost to £200 Per Tonne
MANUFACTURING BUSINESS REDUCES
OPERATING COSTS BY 15% THROUGH
IMPROVED CARBON MANAGEMENT
ANALYSTS PREDICT FURTHER RISE IN PRICE OF
CARBON
Carbon Strategy of Major Corporate
Results in Share Price Boost
DIRECTORS BANNED OVER
CARBON NEUTRAL SCAM
GHG Protocol - 16 Source Categories for Scope 3
Policies and more policies?
� It effects everything your business does
� Consumer awareness of the environment is at an all time high
� Carbon and climate on the news daily
� Carbon now being viewed as a commercial risk & opportunity
� It has a commercial value
Key Message – Why is carbon important to business?
Carbon as a strategic tool
How it can be used
“…“…“…“…systematically understand systematically understand systematically understand systematically understand business risks & opportunities business risks & opportunities business risks & opportunities business risks & opportunities associated with climate change.associated with climate change.associated with climate change.associated with climate change.””””
The Carbon Trust
Carbon Management
Strategic Carbon Management
Where Do the Business Risks Arise?
�Loss of market share
�Increasing cost of raw material
�Increased taxation
�“Carbon Leakage”
�Regulatory compliance
�Investor relations
�Operational efficiencies
�Consumer awareness
Responsibility for Carbon
Top Down
Bottom Up
The Strategic Carbon Management Cycle
Carbon as a strategic tool
� Should be supported at the senior management/board level in the client organisation
� Goes beyond traditional energy efficiency measures
� Considers the full scope of an organisation’s activities
� Considers all carbon emissions, both direct and indirect and incorporates a life-cycle perspective
� Covers all types of measures which can be employed to reduce those emissions
� Assigns monetary value to carbon and tries to build carbon into investment decisions
� Involves change management across the organisation
Why Calculate Your Carbon Footprint?
� Understanding your organisation’s footprint will ensure the action is focused.
� Carbon footprinting is an effective tool to measure your current impacts and
develop mitigation strategies.
� Aim to produce a clear and visual profile of your company's carbon footprint
which is typically broken down into your direct, upstream and downstream
emissions. It enables you to prioritise action upon critical areas
� Establish a clear action plan to reduce this footprint
Types of Carbon Footprint
Business Benefits
� It considers all carbon emissions, both direct and indirect and incorporates a
life-cycle perspective – it is more than energy efficiency
� It provides a commercial perspective – what is the value at stake for a
business?
� It is a change management process across the value chain of the business
� It is a systems based approach with a tradition plan do check review cycle
Key Message – carbon as a strategic tool?
Example Case Studies
Procurement - Supply Chain
How do you do this?
1. Create a framework for
the project based on an
output specification
2. Design a tool to enable
all the bidders to work
off a level playing field
3. Provide guidance to the
bidders
4. Evaluate returns
5. Establish the forecast
as a contractual
obligation
6. Reward/Penalise the
contractor on year on
year performance
Behaviour Change – power of the employee
Membership has increased from 80 to 1500 in seven
countries in 2010
Thank you for Listening - Any Questions?
Andrew Bright
Technical Director
Climate Change &
Sustainable Strategy
T. +44 (0)131 344 2307
M. +44 (0) 7825 028301
E.
andrew.bright@wspgrou
p.com