| "We are on the historic threshold of the irreversible. | | | | greenhouse gas (GHG) emissions performance. If the |
| Faced with this emergency, the time for half | | | | business is growing quickly, then reporting emissions |
| measures is finished. It is time for a revolution. An | | | | reductions per head will show that the business has |
| industrial revolution, that of sustainable development, | | | | got to grips with GHGs and is successfully measuring |
| lies before us." | | | | the impact of growth. |
| Jacques Chirac, Former President of France | | | | A carbon footprint appraisal also makes it very easy |
| Over the last few years we have been hopping from | | | | to set emission and cost reduction targets. If done |
| one global crisis to another. Ten years of relatively | | | | properly the numbers will jump out at you and any |
| good trading and economic conditions have seen | | | | lay person will be able to see where the impacts and |
| businesses boom, economies thrive, and banks being | | | | risks lie. Measuring your own business activity is just |
| very generous with loans and interest charges. But, | | | | one step in the right direction as more and more |
| then came the turmoil. | | | | organisations are starting to measure the |
| All of a sudden it was declared that the World was | | | | environmental activities and credentials. |
| teetering on a knife's edge and that business was in | | | | "53% of companies are more likely to purchase from |
| part responsible for it. Within twenty years, a global | | | | a company with a good environmental reputation" |
| temperature rise would see the ice caps melt and a | | | | Source: Ipsos Mori (Oct 2007) |
| rise in sea water levels by several metres that would | | | | Probably the biggest benefit of carbon foot printing is |
| submerge London, unless the Thames barrier was | | | | the cost savings which are achieved through better |
| replaced with a more capable structure. Various | | | | management of resources and the implementation of |
| islands would disappear including the Maldives, and | | | | good practice. It is not uncommon for companies to |
| continents would lose land mass that would cause | | | | save as much as 30% on energy spend in under two |
| mass population migration, with devastating impacts | | | | years and in some cases, as much as 70% in five |
| on food and natural resources. Global economies | | | | years by implementing low energy programmes, |
| would strain and local economies would experience | | | | upgrading of lighting, boilers and controls and the use |
| significant down trends and turmoil. In the UK, the | | | | of renewables and green power supply. |
| economy and population would be hit by adverse | | | | "The adoption of key re-engineering efforts can |
| weather conditions, a seasonal shift to warmer | | | | result in reduced energy consumption, significant |
| winters and wetter summers and inflationary | | | | efficiency benefits and lower overheads." |
| pressures on food supply and natural resources. If | | | | Source: Butler Group/Datamonitor (Sept 07) |
| that wasn't bad enough, the then stable energy | | | | One of the most contentious benefits has been the |
| market began to sway with surges in oil prices, | | | | use of good PR. Too many organisations have used |
| economic catastrophe, and political instability in the | | | | the 'intent to implement' as a piece of positive news, |
| eastern bloc regions would see the Russians holding | | | | otherwise described as 'Green Wash', but we are all |
| neighbouring countries to ransom and hiking the prices | | | | wise to that now even though it still goes on, |
| of wholesale piped fuels and gas into Europe. In | | | | particularly in the retail sector and retail energy |
| effect, Europe was succumbing to the whims of | | | | sector. |
| Russian energy conglomerates, even BP, a big player | | | | "85% of IT professionals believe environmental |
| in Russia was struggling with the politics. | | | | factors are important in planning IT operations, yet |
| Then the credit crunch. The demise of Lehman | | | | just a quarter have written green criteria into their |
| Brothers, the near demise of AIG, the cashless | | | | company's purchasing processes." |
| acquisition of Merrill Lynch by Bank of America and | | | | There are some excellent case studies where good |
| the takeover of the giant HBOS by Lloyds TSB. So, | | | | implementation has resulted in some genuine results. |
| not only are our banks at risk of disappearing, but | | | | Organisations such as Marks and Spencer have made |
| our fuel supplies, food supplies, and to top it all, the | | | | huge leaps; Morrisons recently achieved the Carbon |
| World in which we live is at risk of changing beyond | | | | Trust Standard for demonstrating actual reductions in |
| our imagination. | | | | carbon; and even the Department for Environment, |
| Now, I know you are probably feeling a little | | | | Food and Rural Affairs (DEFRA). It has to be said |
| depressed after reading this, but here's the positive | | | | though that if you can accurately show that you |
| news. All those negative factors are interlinked, and | | | | have reduced emissions, reduced costs and mitigated |
| interlinked in such a way that, as business leaders we | | | | other greenhouse gas emissions then you will win |
| can use those global events to streamline our | | | | credit and probably more customers. |
| businesses, make them more efficient and prepare | | | | Good results can always improve your business |
| them for the inevitable upturn, but by the same | | | | reputation with existing customers and prospects but |
| token, we will also have met our environmental | | | | also with shareholders and the risk adverse amongst |
| obligations and we will undoubtedly have adapted to | | | | your team. To what extent you need to improve |
| climate changes and pressures on natural energy | | | | your business credentials to stay ahead is not clear. |
| resource supplies. | | | | We have seen a surge in the requirement for |
| Carbon Foot Printing | | | | ISO14001 accreditation as part of a tender response, |
| The global economy grew as a result of the industrial | | | | and you would be amazed by the number of |
| revolution because of the use of energy resources | | | | household brands that do not even have an |
| such as coal. However, owing to their sheer nature | | | | environmental policy, let alone a formal ISO |
| of the hazardous affect of burning coal, alternative | | | | accreditation. One of the first things we do for new |
| fuel sources were sought, including gas, nuclear and | | | | clients is ensure that a policy is in place and is a true |
| other renewables. The impact of burning fossil fuels is | | | | representation of the organisation's aspirations and |
| not new, but the striking impact of the effects of | | | | ability to meet those aspirations. |
| burning these fuels didn't really surface until the | | | | One of the biggest and most enthusiastic groups of |
| 1980's. Even in the Thatcher years, the message to | | | | benefactors are the employees. To date, all |
| everyone was reduce your fossil fuel dependence, | | | | companies we have worked with have had full |
| cut pollution and save the planet. Perhaps the coal | | | | support from employees and in most cases staff |
| mines were really closed because of climate change. | | | | members are keen to volunteer for responsible roles |
| The problem is that now a global banking crisis is in | | | | in helping the company achieve its objectives. Bear in |
| full swing and with oscillating oil prices, governments | | | | mind, that most people will have done something at |
| are now looking back to coal as a dependable source | | | | home and those with children will know that younger |
| of energy. We have seen the affects of extreme | | | | generations seem to know much more than we do |
| weather on oil prices and the impact of global politics | | | | about the risks of doing nothing. |
| on energy sourcing, so something has to be done | | | | Some other benefits include the ability to attract |
| and for most of us it is about reducing our | | | | ethical investors as well as high calibre ethically and |
| dependence on energy, particularly coal, and of | | | | morally driven candidates. Fund managers are |
| course, reducing costs. | | | | particularly interested in the environmental |
| So where does your business fit in this environmental | | | | performance of listed companies and have scored |
| and economic puzzle? Well, undoubtedly energy bills | | | | thousands of companies already in various indexes |
| are an issue and new environmental legislation will also | | | | accessible by the financial services markets. Finally, |
| require compliance such as the Carbon Reduction | | | | carbon foot printing encourages businesses to review |
| Committment due to take effect in 2010. | | | | their compliance to legislation and be able to prepare |
| Understanding your business' carbon footprint, the | | | | for future legislation such as the Carbon Reduction |
| emissions generated from the use of fuel, travel and | | | | Committment. |
| transport, as well as secondary emissions - emissions | | | | "The global warming skeptics are going the way of |
| generated through the procurement of goods and | | | | the dodo bird - to extinction. The evidence is in. |
| services, becomes vital. Measuring carbon is no longer | | | | We're definitely living in a warming world and headed |
| about reducing emissions and saving the planet, it is | | | | into unknown, dangerous territory. The future of our |
| about managing cost and reducing waste. | | | | civilisation is at stake! It's time for each and every |
| In working with clients we have seen reductions in | | | | one of us to change wasteful habits and cut back on |
| energy usage by as much as 15% in the first year | | | | our energy consumption. A good start would be |
| and reduction in air travel by 20% in under six | | | | losing the SUV. Real men and women drive hybrids or |
| months. This is in addition to improvements in the | | | | take the bus. Let's all think more and use less - of |
| control of waste, water, consumption and other | | | | everything. Remember, warming is global, but |
| energy sources. More significantly, clients have | | | | solutions are local and - bottom line - individual." |
| changed their reporting processes not just on | | | | Bill Patzeri, scientist at NASA's Jet Propulsion |
| emissions but on spend, keeping a tighter control on | | | | Labratory |
| non-essential purchases and thinking more about the | | | | Your Business and Your Suppliers |
| sustainability impacts from new purchases. | | | | By measuring your own emissions you will be taking |
| As a business you will need to consider two other | | | | the first step to reducing your business impact on |
| important requirements; the first is the measurement | | | | the environment and to reducing costs within your |
| of nitric oxide and methane, primarily from | | | | organisation. By working with your suppliers and |
| manufacturing and waste; and the second is the | | | | supporting your suppliers to do the same, you will be |
| Carbon Reduction Committment which affects | | | | creating maximum benefit for all within the supply |
| businesses that consume 6,000 megawatt-hours | | | | chain. You will, in effect reduce the cost of the |
| (MWh) of electricity between 1st April 2009 and 31st | | | | supply of goods and services to your business and |
| March 2010 and if your business including subsidiaries | | | | reduce and manage the environmental impacts |
| spends more than £500,000 per year on | | | | created by trade and logistical operations, perhaps |
| electricity it is likely to be included in the scheme. | | | | even negotiating with your suppliers for more |
| Both of these, if appropriate, will need to be written | | | | favourable reductions and incentives to reflect the |
| into your environmental management programme. | | | | reduced costs and streamlined operations. |
| The Carbon Reduction Committment comes into full | | | | Moral Obligations |
| effect in April 2010 and will be a compulsory scheme | | | | There is perhaps one driving factor that is important |
| for large users of energy. It will set caps on | | | | and it is that making the changes and implementing |
| emissions with penalties for those that exceed those | | | | an effective environmental management programme |
| caps with the ability for organisations to buy or sell | | | | is essential, it is the protection and management of |
| allowances on the secondary market or through the | | | | natural resources for future generations. In our case, |
| EU emissions trading scheme. | | | | future generations that are already at school age and |
| The benefits of Carbon Foot Printing | | | | will be relying on our good judgement and good |
| Once an initial footprint assessment has been | | | | practice to provide a sustainable and environmentally |
| completed and audited, the business will be in a | | | | beneficial and healthy world. |
| better position to be able to regularly report on | | | | |