carbon neutral_presentation to rotary club of perth jan 2011 - public copy
DESCRIPTION
This presentation discusses why companies need to focus on managing their carbon footprint and the opportunities and risks for business as we move towards a low carbon economy. It highlights case studies of global giants who are embracing green business and placing pressure on their supply chains to comply. It will cover how current and future legislation and requirements are impacting businesses, the state of carbon markets and the future for emissions trading in Australia and how companies can prepare themselves.TRANSCRIPT
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Carbon Neutral
2010The business of
carbon & climate
change
Presentation to the Rotary Club of
Perth28 January 2011
Chris Doherty
Business Development Manager
Carbon Neutral Ltd
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Who is Carbon Neutral?
Mission: To reduce greenhouse gas emissions through education and
revegetation.
Not for profit
Established 2001
Award winning
Over 350 current
business clients
Working across Australia
Carbon offsets
Carbon/energy
consulting
Revegetation
Seminars,
workshops, surveys
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Our clients
And hundreds more…
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Green business?
What for?
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The business case
"This is a time period where
environmental improvement is
going to lead toward
profitability. This is not a
hobby to make people feel
good"
“Decarbonising the economy is
one of the biggest global
business opportunities”
Jeffrey Immelt, Chairman and CEO,
GE
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The business case
“Growth at any price is not
viable”
Unilever plans to halve the total
carbon, water and waste impact of its
products by 2020
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Climate change, carbon,
greenhouse gas – what
does it all mean?
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The science is established
Anderegg et al
Stanford University, USA
June 2010
97 - 98% of working
climate scientists accept the evidence
for human induced climate change
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Sectoral emissions
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What’s in store in Australia?
HOTTER
DRIER (intense rainfall)
HUMAN INDUCED
CLIMATE CHANGE IS REAL
State of the Climate Update
CSIRO & Bureau of Meteorology
2010
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Australia’s response
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International commitments & targets
Kyoto Protocol
• Ratified 2007
• 108% growth on 1990 baseline between 2008 – 2012
• On track
• Average of 583 Mt CO2-e per year
Copenhagen Accord
• Submitted target range 27 January 2010
• 5 – 25% below 2000 levels by 2020*
• Abatement challenge 138 – 249 Mt CO2-e
Long Term: 60% below 2000 level by 2050
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Tracking national emissions
Department of Climate Change, 2009, Tracking to
Kyoto and 2020, August 2009: Australia’s
Greenhouse Emissions Trends 1990 to 2008-
12 and 2020, DCC, Canberra, ACT.
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Domestic policy to reach those targets
NGER Act
EEO
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NGER Act
NGERs Guidelines, DCC, 2008
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Domestic policy to reach those targets
NGER Act
EEO
Carbon price:
ETS / carbon tax / hybrid scheme ?
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ETS or carbon tax or...?
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Domestic policy to reach those targets
NGER Act
EEO
ETS / carbon tax / hybrid scheme ?
Complementary measures
Carbon Farming Initiative
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Complementary measures
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Carbon Farming Initiative
New scheme to provide carbon credits from
forestry, agriculture and waste sectors
Reforestation / revegetation
Agricultural practices
Soil carbon
Livestock methane
Manure management
Fertilizer use
Etc
Landfill management
Voluntary market
International buyers
Permits under future ETS
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What does
this mean
for
business?
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Climate change , carbon and your business
Climate Change –RISK DRIVER
Physical risk
Litigation
Operational risk
Reputation
Licence to operate
Legislation
Low Carbon Economy
Legislation – cost of compliance
Price pressure
Contractual obligations
Investment – cost of capital
Stakeholder expectation
Opportunity
- Installations, assets, facilities
- Enforcing regulations, civil or class actions for public
damage caused by GHG emissions, shareholder resolutions
- High GHG industries facing restrictions, other impacts
affecting ability to operate
- Damage to reputation if not addressing climate change
- Impact from society
- Reporting, reducing, paying for emissions etc
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Low carbon economy: impacts and opportunities
Low Carbon Economy
Increased energy prices
Further regulation
Contractual obligations
Supply chain pressures
Consumer demands
Opportunity
- 60% on 2009 levels by 2015 (WA)
- Carbon price, NGERs, future energy efficiency
requirements?
- Customers requiring carbon costs and obligations be
included in contracts
- Tenders or supply requirements regarding carbon and
sustainability of products, services
- Consumers looking for “greener” products and services
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Opportunities
• 4.6 million eco-minded consumers
• Actively supporting products and
services of environmentally committed
companies
• Seeking products from those
demonstrating corporate responsibility
• Vast majority will avoid purchasing
from those who are not.
• How many EcoAussies are your
prospective customers in the next 12
months?
• Implications for marketers
GREEN MARKETING AND ‘ECO AUSSIES’
Most Important Social Issues in Australia
NIELSEN PANORAMA
May 2009
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Be prepared
• Walmart – world’s biggest company
• Sustainable product index
• 100,000 suppliers must provide information on
• GHG emisisons
• materials
• water
• natural resources
• community
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Where to from here...
...for your
business?
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Why invest in sustainability?
A sustainable business can:
Improve operational efficiency
Reduce waste
Save you money
Attract and retain great staff
Open up opportunities for new business
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Case studies
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What we know
71% of businesses who developed a
greenhouse gas inventory identified
opportunities for cost savings
Accounting for the cost of carbon
Summary of findings of industry research conducted by the National Centre for
Sustainability (NCS) at Swinburne University of Technology from May to
December 2009.
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Managing your carbon footprint
Assess MeasureSet
ObjectivesManage
• Requirements:
compliance or
voluntary?
• Relevance – who’s
the intended
audience?
• Build on previous
work
• Goals:
• energy efficiency
• Strategic
• Climate Change
• Skills assessment
• Energy?
• Carbon inventory
• Establish baseline
• Compare against
thresholds
• Scope 1
- Owned or controlled
vehicles / generators
- Natural gas / LPG
- Refrigerant leakage
- Landfills
- Industrial processes
• Scope 2
- Purchased
electricity
• Scope 3
- Business air travel
- Staff commuting
- Waste
- Consumables etc
• Reduction targets:
• Absolute or
Intensity
based
S - specific
M - measureable
A - agreed
R - realistic
T – time based
• Management system
that will help you
achieve your targets
• Integrate with EMS
• R&R’s
• Documentation
• Audit / Assurance
• Budget
• Corrective action
• Justifications
T - transparency
R - relevance
A - accuracy
C - completeness
C - consistency
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Managing your carbon footprint
Reduce Offset Report• Energy audit
• Where are your emissions
coming from?
• Inform reduction plan
• Reduction plan
• Tailored
• Cultural fit of organisation
• Prioritised
• Marginal cost of abatement
• Specific to your company
• Hierarchy of control
• Eliminate
• Substitute
• Reduce
• Offset non-reducable
emissions
• Accredited
• Co benefits
• Tell the “story”
• Relevance – meet the needs
of the intended user
• Identify key stakeholders
• Internal / External
• Supply chain / contracts
• Is it a requirement?
(ISO/NCOS)
• Verification
• Get on the front foot
• Standardised reporting:
• Carbon Disclosure Project
(CDP)
• Global Reporting Initiative
(GRI)
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Opportunities
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Where are you?
Laggard
• Unaware of potential compliance requirements
• Unaware of risks or opportunities
• Unaware of impacts
• No GHG management plan
• No resources allocated
Complier
• Aware of compliance requirements
• Preparing to conform (only)
• Simple tools
• Lack of management plan• No desire to go beyond compliance or• GHG management not included in EMS
Leader
• Beyond compliance
• Comprehensive SWAT analysis
• Strong stakeholder engagement
• High level of integration
• Ambitious goals
• Consistent management & reporting
• Continual improvement
• Scope 3 focus and greening supply chains
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Case studies – Sustainable Living Fabrics
• 10 staff
• Comprehensive carbon footprint
• Incentives to staff to travel more
sustainably
• Encouraged suppliers to go green
• Reduced 50% of emissions
• Offset
• Now recognised as a preferred
supplier by Dept of Defence, and won
a contract with Virgin Airlines due to its
greener practice.
''There is a commercial value,'‘
''Businesses are seeking out greener
products, and we have got 100 per cent
credibility because we have third-party
accreditation.''
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HOW CAN CARBON
NEUTRAL HELP?
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How Carbon Neutral can help
Overview of services Carbon Neutral can provide:
Carbon footprinting
Carbon / energy audit
Carbon reduction and management strategies
Life cycle assessment
Staff surveying
Staff and management workshops
Seminars
Offsets
Calculators
Revegetation projects
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Case studies
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"We have been very impressed with Carbon Neutral's
Four Step Carbon Reduction Programme, both in
terms of its value for money and its practical and
straightforward approach. We certainly encourage
other businesses to engage with this programme
and we look forward to taking the next steps as
guided by our Action Plan."
Damien Eves, Chief Executive Officer
ABN Group
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Chris Doherty
Business Development Manager
w 1300 851 211
Carbon Neutral Ltd
1300 851 211 | [email protected]
www.carbonneutral.com.au ABN: 99 124 696 966
Contact