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Carbon as a Strategic Tool

WSP Environment and Energy
Andrew Bright, Technical Director
June 2011
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                       Ca
                                               In rbo
                                                 cr n
                                                   ea Flo
                                                     se
                                         U C ES         s c or P
                                       D                   os ri
                                 SS RE UGH                   t t ce
                             INE       RO                       o £ Es
                     G  BUS 5% TH           T                      20 cal
                RIN         Y 1        M EN                          0 P at
            CTU OSTS B ANAGE                                            e r or
      UFA G C               M
  MAN ATIN          RBO
                          N
                                                         E  OF
                                                                           To
                                                                              nn
  O PER VED CA                                      RIC                         e
       R O                                 E  IN P
   IMP                              R  RIS
                           UR  THE                     DI
                       TF                            CA REC
                   IC                                    RB TO
            P RED                                           O N RS
          S
   L YST                                                        NE BA
ANA ON                                                              UT NN
    B                              rporate
CAR                           r Co
                                                                      R A ED
                           ajo                                            L
                                                                            SC OVE
                  gy  of M oost
          nS trate Price B                                                     AM R
         o          e
    Carb s in Shar
         lt
     Resu
GHG Protocol - 16 Source Categories for Scope 3
Policies and more policies?
Key Message – Why is carbon important to business?

  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
Carbon as a strategic
tool
How it can be used
Carbon Management




    “…systematically
    “…systematically understand
    business risks & opportunities
                           change.”
   associated with climate change.”

       The Carbon Trust
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
Key Message – carbon as a strategic tool?

  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
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

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Wsp presentation

  • 1. Carbon as a Strategic Tool WSP Environment and Energy Andrew Bright, Technical Director June 2011
  • 2. 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?'
  • 3. Carbon in the News - 2025 Ca In rbo cr n ea Flo se U C ES s c or P D os ri SS RE UGH t t ce INE RO o £ Es G BUS 5% TH T 20 cal RIN Y 1 M EN 0 P at CTU OSTS B ANAGE e r or UFA G C M MAN ATIN RBO N E OF To nn O PER VED CA RIC e R O E IN P IMP R RIS UR THE DI TF CA REC IC RB TO P RED O N RS S L YST NE BA ANA ON UT NN B rporate CAR r Co R A ED ajo L SC OVE gy of M oost nS trate Price B AM R o e Carb s in Shar lt Resu
  • 4. GHG Protocol - 16 Source Categories for Scope 3
  • 5. Policies and more policies?
  • 6. Key Message – Why is carbon important to business? 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
  • 7. Carbon as a strategic tool How it can be used
  • 8. Carbon Management “…systematically “…systematically understand business risks & opportunities change.” associated with climate change.” The Carbon Trust
  • 9. 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
  • 10. Responsibility for Carbon Top Down Bottom Up
  • 12. 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
  • 13. 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
  • 14. Types of Carbon Footprint
  • 16. Key Message – carbon as a strategic tool? 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
  • 19. 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
  • 20. Behaviour Change – power of the employee
  • 21. Membership has increased from 80 to 1500 in seven countries in 2010
  • 22.
  • 23.
  • 24. 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