Event jointlystaged by

Richard RuggCarbon Trust

Local Housing Groups; Leading the way to sustainable, low carbon communities

Richard Rugg – Managing DirectorCarbon Trust Programmes24th November 2015

What I’m going to cover

1. Introducing the Carbon Trust

2. The global context for action on climate change

3. How local housing groups are responding to this challenge

› Created in 2001 by the UK government with the mission to accelerate the move to a sustainable, low carbon economy

› Now a fully independent not-for-dividend private company, with all surpluses from commercial activities reinvested in our mission

› Team of ~180 experts including engineers, scientists, entrepreneurs, financiers, consultants, policy specialists and project managers

› To date, we have reduced our customers’ costs by over £5 billion and carbon emissions by over 50Mt

Who we are

4

What we do

ADVICE FOOTPRINTING TECHNOLOGY

Business AdviceHelping businesses capture the opportunities in a sustainable low carbon world

Government AdviceProviding policy advice and insights on the transformation of markets

Public Sector AdviceEnabling the public sector to cut costs and emissions

MeasurementUnderstanding the environmental impact of an organisation, product or service

CertificationProviding independent verification of organisational or product footprints to endorse sustainable leadership

Implementation & FinanceProviding expertise and support to businesses to put energy efficiency plans into action

Innovation Partnering with companies and governments seeking to create value from the clean technology revolution

5

What I’m going to cover

1. Public sector opportunities to demonstrate leadership

2. Public sector leadership in action

3. How we can help

The Reality of Climate Change

Intergovernmental Panel on Climate Change What do scientists tell us?

› Scientists are now all but certain that climate change is mostly caused by human action, and that it is already leading to changes in regional weather patterns, with extreme events on the increase.

› “Warming of the climate system is unequivocal, and, since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have warmed, the amounts of snow and ice have diminished, sea level has risen, and the concentrations of greenhouse gases have increased”

› “ Limiting climate change will require substantial and sustained reductions of greenhouse gas emissions”

Economic growth supports a bigger, healthier, better educated and aspirational population

› UN projects world population will grow from 7.3 billion today to 8.9 billion in 2050

› OECD forecasts that the global middle class will increase by three billion people over the next 20 years

› Demand for energy, food, water and materials (such as steel) is expected to increase by 30% to 80% by 2030

But stress on energy, water, land and material resources will bring new pressures

› Economic impacts driven by scarcity

› Resource price increases

› Increased price volatility

› Environmental impacts driven by use

› Increased carbon emissions

› Water stress

› Land use

› Resulting in

› Reduced security of supply

› New regulations

Renewable energy(inc. subsidies)

'Typical' business investments

Energy efficiency

0 10 20 30 40 50 60

Internal rate of return (%)

Typical investment returns

40%

10%

5%

Source: Carbon Trust analysis

Rising energy pricesWith energy prices rising, energy efficiency makes even greater business sense

1984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Coal Price Index

Gas Price Index

Electricity Price Index

Energy Price Rises – UK

Source: DECC

› Financial › Volatile fuel prices› Value at stake› Energy generation opportunities

› Reputation› Sustainability and leadership› Community leadership› Staff morale & engagement

› Legislation and regulation › Climate Change Act 2008 & Carbon Budgets › Display Energy Certificates & Building Regulations› Carbon Reduction Commitment

The Case for Action

What I’m going to cover

1. Introducing the Carbon Trust

2. The global context for action on climate change

3. How local housing groups are responding to this challenge

Just some of our customers

Early action on managing your carbon emissionsThe Benefits

› Cost savings› Compliance with legislation› Raised awareness of climate change amongst staff, stakeholders

and the public› Positive community leadership› Contribute towards Government targets

The business case is compelling…And reduction targets are ambitious

Pipeline savings

93m tCO2 £2.6bn net

07/08 08/09 09/10 10/11 11/120%

5%

10%

15%

20%

25%

30%

28%Average 5 year carbon

reduction target

Our support for local housing groups

1.) Carbon Management StrategyFootprinting, target setting & strategic planning

2.) Technical Support Supporting project identification & implementation

3.) Decentralised Energy & District Heating ServiceOvercoming the barriers to off-grid energy generation

4.) Low Carbon Behaviour ProgrammeStructured approach to long term employee engagement

5.) Carbon Trust Empower™Online engagement tool for employees, suppliers &

partners

Technical & strategic support

Behaviour change

expertise

Overview

› Carbon Trust‘s Public Sector Carbon Network is an online community designed as a platform for energy, facilities, sustainability, estates and other public sector professionals to share best practice, advice on overcoming barriers and useful resources/innovations

› Users engage with the closed Network to seek trusted opinions about the direction of the industry and to better understand what solutions are on offer

› Users subscribe to daily, weekly, monthly or sector specific email updates which are used as a source of regular information

› Currently 3,653 public sector body subscribers› publicsector.carbontrust.co.uk

Our Public Sector Carbon Network helps to share best practice

The Carbon Trust’s Annual Public Sector Conference, London 2016

› Bringing together up to 250 public sector delegates, with a programme of lectures, workshops and break-out sessions, this event has become the largest public sector conference focussed on low carbon in the UK

› Date - Wednesday 10th February, 2016› Venue - 155 Bishopsgate › Capacity - up to 300 cabaret style (already over 200 signed

up)› Headline Sponsor - GE Lighting confirmed › Workshop sponsors & exhibitors – Mitsubishi, British Gas› Key note speakers

› Baroness Tessa Jowell confirmed

The contents of this presentation are the copyright of the Carbon Trust and may not be copied or republished without the prior written consent of the Carbon Trust. The trade marks, service marks and logo used in this presentation are the

property of the Carbon Trust and no licence or right is granted to use any such marks or logo.

Keep in touch!

› 0207 832 4614› Richard.Rugg@carbontrust.com