QBE Q42009 Environmental Reporting by wuyunqing

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									Corporate Real Estate Services
(CRES)

Environmental Report
October – December 2009
with Overview of Q1–Q4 2009



  Author: Giuseppe Vianello
  Date:    12.01.10
  Version: Final
     Corporate Real Estate Services – Environmental Reporting October – December 2009


                                                TABLE OF CONTENTS


Section                                                                                                                        Page

Executive Summary .................................................................................................................. 4

1      Introduction and Scope ..................................................................................................... 6 
       1.1  Objectives ............................................................................................................... 7 
       1.2  Background ............................................................................................................. 7

2      Review of Q3 2009 Environmental KPI Data .................................................................. 8 
       2.1  Scope 1: Direct GHG Emissions ............................................................................ 8 
       2.2  Scope 2: Electricity indirect GHG emissions ....................................................... 10 
       2.3  Scope 3: Other indirect GHG emissions............................................................... 11 
       2.4  Other Environmental Key Performance Indicators .............................................. 12
       2.5 Greenhouse Gas Emissions Factors Used ........................................................... 12

3      2009 Environmental KPI data ......................................................................................... 15 
       3.1  Q3 General Information........................................................................................ 16 
       3.2  Q2 Scope 1 Greenhouse Gas Emissions ............................................................... 17 
       3.3  Q2 Scope 2 Greenhouse Gas Emissions ............................................................... 20 
       3.4  Q2 Scope 3 Greenhouse Gas Emissions ............................................................... 21 
       3.5  Q2 Water Consumption ........................................................................................ 23 
       3.6  Q2 Recycling ........................................................................................................ 24

4      2009 Environmental KPI data ......................................................................................... 25 
       4.1  Environmental KPI data LongView format (metric units) ................................... 25 
       4.2  Environmental KPI data LongView format (LongView units) ............................ 26 
       4.3  Environmental KPI tracking ................................................................................. 27

5      Environmental Initiatives ................................................................................................ 31 
       5.1  Initiatives to improve Environmental Reporting .................................................. 31 




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     Corporate Real Estate Services – Environmental Reporting October – December 2009
     Corporate Real Estate Services – Environmental Reporting October – December 2009



Document control

 Version Created by                 Date     Comments
                                    DD/MM/YY
 1            Giuseppe Vianello                    Initial draft – for comments
 2            Ted Abley                            Amendments
 3            Mark Thompson                        Amendments
 4            Giuseppe Vianello                    Final draft – for comments




Document distribution / document approval

 Name                              Role in project                                Approver

 E Abley                           Head of CRES
 M Thompson                        HSSE Manager
 G. Vianello                       Assistant Services Manager
 C McHugh                          Senior Travel Coordinator
 David Cooney                      Operations Director




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     Corporate Real Estate Services – Environmental Reporting October – December 2009
   Corporate Real Estate Services – Environmental Reporting October – December 2009



Executive Summary
Last year (2008), CRES EO developed and implemented reporting procedures and
infrastructure for collecting and collating Environmental Key Performance Indicator (EKPI)
data for the company’s European offices. QBE EO continued monitoring EKPIs including
greenhouse gas emissions during 2009, to support reporting in accordance with the
requirements of the World Business Council for Sustainable Development / World Resources
Institute Greenhouse Gas Protocol.

This report, prepared by CRES EO using data provided by European offices, summarises
currently available environmental data for QBE’s European offices for the fourth quarter of
2008 and also previously reported data for Q1-Q4 2008 and Q1-Q3 2009, allowing reporting
of EKPIs for 2009 calendar year and comparison with reported performance for 2008. The
report identifies gaps, limitations and actions required as part of an on-going programme to
improve environmental management and reporting achieve the project’s wider objectives.

CRES EO undertook various initiatives during 2009 in order to improve the EKPI reporting
process and improve environmental performance, key achievements are:

   o Reporting Guidance and Spreadsheet
     During Q1 2009 CRES EO developed and distributed reporting guidance and a user-
     friendly spreadsheet for EO reporting offices, this supports the adoption of a
     standardised approach to data collection contributing to improved data quality.

   o Identification and adoption of a more sustainable source of office furniture
     Following consideration of a range of factors including environmental performance,
     ISO 14001 certified, Austrian company, Bene was established as our preferred
     supplier of office furniture. Bene has provided all furniture purchased by QBE since
     2005, including furniture for our offices in France, Hungary and the UK. The
     environmental credentials of Bene’s products are recognised by international
     environmental assessment methodologies such as BREEAM, LEED and Green Star
     which credit Bene’s performance with regard to resource use (e.g. responsible
     sourcing of materials / recycled content / readily renewable materials ) and low VOC
     emissions (e.g. use of water based varnishes / formaldehyde minimisation).

   o ClimateWise
     As a signatory of the insurance sector’s ‘ClimateWise’ initiative, QBE European
     Operations is committed to adhering to the scheme’s principles, including: publicly
     disclosing direct emissions of greenhouse gases in accordance with a globally
     recognised standard.      CRES EO has primary responsibility for identifying,
     monitoring, reducing and reporting on the environmental impacts from physical
     assets and internal activities of QBE European Operations. An external review of
     compliance with the Lloyds ClimateWise concluded that QBE European Operations
     has now achieved full compliance for ‘Principles 5 & 6’ including reducing
     environmental impact and reporting.

   o Clean City Awards.
     QBE EO London offices continue to participate in the City of London Clean City
     Awards. Having received ‘Merit’ awards in 2007 and 2008, QBE’s improved

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   Corporate Real Estate Services – Environmental Reporting October – December 2009
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                 performance in keeping our offices and the areas surrounding our offices clean and
                 pleasant to work was recognised by a ‘Gold’ award in 2009.

Preliminary Q4 data indicate annual greenhouse gas emissions from QBE European
Operations of 9,882 tonnes of carbon dioxide equivalent, with imported electricity the single
largest contributor. Q4 GHG emissions are summarised by source below.


                         QBE European Operations Greenhouse Gas Emissions
                                              Q4 2009

                                                            1,800
                                    tonnes CO2 equivalent




                                                            1,600
                                                            1,400
                                                            1,200
                                                            1,000
                                                             800
                                                             600
                                                             400
                                                             200
                                                               0
                                                                    Sco p e 1              Sco p e 2            Sco p e 3

  Emi ssi o ns ar i si ng f r o m r ai l t r avel                                                                2 6 .2 5
  A i r t r avel                                                                                                 3 57. 17
  I mp o r t ed el ect r i ci t y                                                          1, 6 6 9 . 4 7
  C ar use                                                           19 9 . 12
  A i r co nd i t i o ni ng and f i r e sup p r essi o n             11. 2 0
  eq ui p ment
  B ack- up g ener at o r s                                           0 . 52
  B o i l er s                                                       6 9 . 12

                                                                                 Greenhose Gas Protocol Scope




2009 GHG emissions are summarised by source below:


                        QBE European Operations Greenhouse Gas Emissions 2009

                                                            8,000

                                                            7,000
                                    tonnes CO2 equivalent




                                                            6,000

                                                            5,000

                                                            4,000

                                                            3,000

                                                            2,000

                                                            1,000

                                                               0
                                                                    Sco p e 1              Sco p e 2            Sco p e 3

  Emi ssi o ns ar i si ng f r o m r ai l t r avel                                                                 9 9 . 11
  A i r t r avel                                                                                                1, 4 4 8 . 0 2
  I mp o r t ed el ect r i ci t y                                                          7, 0 16 . 6 8
  C ar use                                                          758 . 6 4
  A i r co nd i t i o ni ng and f i r e sup p r essi o n            12 3 . 6 0
  eq ui p ment
  B ack- up g ener at o r s                                           1. 4 4
  B o i l er s                                                      4 3 4 . 58

                                                                                 Greenhose Gas Protocol Scope




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1       Introduction and Scope

QBE European Operations began to compile environmental key performance indicator data
during 2007. Three carbon-based metrics: business air travel, car fleet and electricity usage
were reported in Group Accounts, with the group’s global carbon emissions for 2007
estimated at 32,890 tonnes carbon dioxide equivalent (CO2e). 1

As a signatory of the insurance sector’s ‘ClimateWise’ initiative, QBE European Operations
has committed to adhering to the scheme’s principles, including: publicly disclosing direct
emissions of greenhouse gases in accordance with a globally recognised standard. 2

Corporate Real Estate Services (CRES EO) has primary responsibility for identifying,
monitoring, reducing and reporting on the environmental impacts from physical assets and
internal activities. 3 CRES EO began to develop reporting procedures and infrastructure for
collecting and collating environmental KPI data for QBE’s European offices on an on-going
basis at the start of 2008. This provides the data for public disclosure of its carbon footprint
and will help to focus on improvement opportunities and support decision making.

This report reviews and summarises currently available environmental data for European
offices and two company apartments in the UK for the fourth quarter (Q4) of 2009 – and is
the eighth such quarterly report. The report was prepared by CRES EO with support from an
external environmental consultant 4 and is based on information provided by the reporting
offices up to and including December 2009. The report identifies gaps, limitations and
actions required as part of an on-going programme to achieve the wider project objectives.

The scope of reporting covers direct environmental impacts associated with 79 QBE sites /
offices located in seventeen countries, with c2,631 QBE employees. 5 Reporting excludes
impacts associated with the activities of home workers.




1
  QBE European Operations insurance Group, Annual Report December 2007, page 17
2
  http://www.lloyds.com/360_risk_project/Climate_change/ClimateWise/ClimateWise.htm
3
  ClimateWise Principle 5: Reduce the environmental impact of our business:
     • Encourage our suppliers to improve the sustainability of their products and services.
     • Measure and seek to reduce the environmental impact of the internal operations and physical assets
          under our control.
     • Disclose our direct emissions of greenhouse gases using a globally recognised standard.
     • Engage our employees on our commitment to address climate change, helping them to play their role
          in meeting this commitment in the workplace and encouraging them to make climate-informed choices
          outside work.
4
  Dr David Smith, Head of Resource and Environment Group at Scott Wilson Ltd.
5
  Note: Employee count is based on a combination of information reported by the offices, information from HR
and ‘workstation count’ (Quarter Four 2009). This information is used for data normalisation and is not
intended for external reporting.

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1.1        Objectives

i) Collation of existing environmental key performance data for QBE’s European offices
during Quarter Four 2009 and collation of data to provide a ‘carbon footprint’ for 2009.

ii) Identification of data gaps / limitations and actions required to facilitate development of a
robust greenhouse gas emissions inventory for QBE’s European operations during 2010 to
support voluntary external reporting of direct greenhouse gas emissions associated with
QBE’s European offices in accordance with the WBCSD/WRI Greenhouse Gas Protocol for
the 2008 calendar year.

iii) Collection and collation of robust data to support decision making and identification of
opportunities to improve environmental management through an on-going ‘rolling
programme’.

iv) Development of a reporting system consistent with the requirements of the World
Business Council for Sustainable Development / World Resources Institute Greenhouse Gas
Protocol. 6


1.2        Background

The World Business Council for Sustainable Development / World Resources Institute
Greenhouse Gas Protocol structures GHG emissions into three ‘Scopes’, as follows:
•   Scope 1 (Direct GHG Emissions)
Direct emissions from sources that are owned or controlled by QBE, for example: emissions
from combustion in owned or controlled boilers or vehicles or, fugitive emissions from
refrigerant or fire control / suppression agents; 7
•   Scope 2 (Electricity Indirect Emissions)
Indirect emissions from the generation of electricity consumed by QBE; and,
•   Scope 3 (Other Indirect emissions)
Optional reporting of all other indirect emissions that are a consequence of QBE’s activities,
but occur from sources not owned or controlled by QBE. This would, for example, include
emissions arising from business travel.
QBE European Operations is obliged to report fully on Scope 1 and Scope 2 emissions;
reporting of Scope 3 is optional, however, given their likely impact – indirect emissions from
QBE’s business travel is considered to be ‘material’ and is therefore monitored and reported.




6
  The Greenhouse Gas Protocol (GHG Protocol) is an internationally accepted reporting standard that provides
guidance to businesses on the disclosure of their greenhouse gas emissions. It provides a framework under
which calculations using relevant local conversion factors can be applied. The GHG Protocol is the principle
reporting standard in use today for ‘general’ GHG emissions reporting (i.e. outside of corporations that are
obligated to report emissions within the context of emissions trading). The GHG protocol is recognised by, and
integral to both the Global Reporting Initiative reporting guidelines and the Carbon Disclosure Project.
7
    Where covered by the Kyoto Protocol.
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QBE’s UK European offices are generally leased with shared tenancy, building services such
as boilers, back-up generators and centralised cooling systems are generally managed and
controlled by the landlord or landlord’s agent under a service contract. Associated emissions
are therefore not QBE European Operations Scope 1 emissions.


2       Review of Q4 2009 Environmental KPI Data

2.1     Scope 1: Direct GHG Emissions

a. Boilers

        •   UK, Chelmsford office: QBE European Operations is the sole tenant and has
            management control of the boilers (x10), back-up generator and cooling system.
            One building with two offices / two plant rooms using natural gas.
        •   UK, Hull office: Q4 2009 gas use estimated using Q3 2009 data.
        •   UK, London Wapping (company flat): Q4 2009 gas use estimated using bills
            from Q4 2008.
        •   UK, Manchester/Salford office: gas fired central heating system on the first floor.
            Q4 2009 gas use estimated using bills from Q3 2009.
        •   Hungary: Budapest office and gas fired boiler owned and managed by QBE
            European Operations. Natural gas use estimated on the basis of average reported
            use at other offices (538 kWh/quarter) multiplied by office occupancy (113
            employees) = 60,747 kWh during Q4 2009.
        •   Macedonia (multiple offices) owned and managed by QBE European Operations.
            Fuel oil is used for boilers during the ‘heating season’ October – April’. Q4 2009
            fuel oil use extrapolated from consumption during October and November 2009.

The following mainland Europe offices have confirmed having no management control over
boilers: Bulgaria, Czech Republic, Estonia, Germany, Ireland, Italy, Romania, Slovakia and
Spain. QBE European Operations confirmed having no management control over boilers in
the following offices: Denmark, France, Sweden, Switzerland and Ukraine.

b. Back-up Generators

        •   UK, Chelmsford office: diesel powered generator is ‘run-up’ once a week to
            ensure operational, 3,500 litre tank capacity, with 1,500l used by QBE European
            Operations over the last three years.
        •   Macedonia (multiple offices): diesel powered back-up generator, used when there
            is a lack of electricity supply and once a month for maintenance.

The following mainland Europe offices have confirmed having no management control over
back-up generators, or no back-up generators: Bulgaria, Czech Republic, Estonia, Hungary,
Italy, Romania, Slovakia, and Spain. QBE European Operations confirmed having no
management control over back-up generators at the following offices: Denmark, France,
Germany, Ireland, Sweden, Switzerland and Ukraine.




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    Corporate Real Estate Services – Environmental Reporting October – December 2009
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c) Air conditioning / fire suppression / fire control equipment

         •   QBE European Operations has management control over air conditioning and fire
             suppression equipment at some UK offices; this is maintained by a sub-contractor
             (ASEL). Q4 2009, ASEL report loss of 7kg of R407c from Plantation Place. 8
         •   UK, Chelmsford office: Argonite based fire suppression system for the
             Communications Room and data centre from 2008 (GWP and ODP of Argonite =
             zero). No losses reported during Q4 2009.
         •   Macedonia (multiple offices) has an FM200 based fire suppression system, for
             their computer room, no losses reported during Oct or November 2009. No data
             available for December 2009. 9

The following mainland Europe offices confirmed having no management control over air
conditioning systems, or, fire suppression systems: Bulgaria, Czech Republic, Estonia,
Hungary, Ireland, Italy, Romania, Slovakia and Spain.

d) Company vehicle use

         •   QBE European Operations has ‘operational control’ over three types of cars: hire
             cars, leased cars and company cars.
         •   UK Offices: company and leased car use, no Q4 data available at the time of
             reporting, Q1 2008 data restated.
         •   UK Offices: Utilisation of company cars (purchased) and leased cars operated
             with a fuel card can be quantified through expense claims. However, it is more
             difficult to quantify utilisation of leased cars for senior staff and cars bought using
             a company car allowance as no records of fuel consumption or vehicle use are
             currently maintained and business use may be only a small proportion of total
             use, consequently reporting is based on estimation. 10
         •   UK Offices: hired car use, no data received, Q3 2009 data re-stated.
         •   Ukraine: company car use, no data available for Q3 or Q4, Q2 2009 data restated.
         •   Czech Republic, Estonia, France, Germany, Italy and Macedonia, no December
             data received at the time of reporting, Q3 car use estimated from data for October
             and November 2009.
         •   Denmark and Germany: cars confirmed to be petrol engined for the purpose of
             estimation of GHG emissions.
         •   The following mainland Europe offices confirmed having no management control
             over cars: Ireland and Spain (Q1 2008).
         •   GHG emissions associated with car use are estimated from distance travelled
             using Defra / DECC conversion factors for ‘medium petrol cars’ and ‘medium
             diesel cars’ i.e. 1.4-2.0 and 1.7-2.0 litre engines respectively. 11




8
  GWP of R407c = 1,600 (BS EN 378-1:2000, Refrigerating systems and heat pumps - Safety and
environmental requirements - Part 1: Basic requirements, definitions, classification and selection criteria, 2000.
9
  GWP of FM200 = 2,900 (DETR /DTI, Phase Out of Halons, Advice on alternatives and guidelines for users of
fire fighting and explosion protection systems, 2001)
10
   See QBE, Initial Environmental Review, March 2008
11
   Defra, Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting, Annexes updated
April 2008 (Q1 & Q2 2009), June 2009 (Q3 2009) and September 2009 (Q4 2009).
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2.2      Scope 2: Electricity indirect GHG emissions

Purchased electricity

         •   Where possible electricity consumption has been estimated from recent bills /
             meter readings on the basis of average daily consumption (kWh/day) multiplied
             by the number of Q4 days (92 days October-December inclusive).
         •   Where no Q4 data has been received, earlier data has been re-stated and identified
             as such in the supporting spreadsheet.
         •   Where no data was available electricity consumption was estimated on the basis
             of average consumption at the reporting offices (34.24 kWh/m2/year) multiplied
             by floor area (UK: Glasgow, Dublin and Switzerland).
         •   UK Offices: Greenhouse gas emissions are calculated using ‘Grid Rolling
             Average conversion factor. 12
         •   UK, London, Plantation Place, carbon neutral ‘green electricity’ was used during
             2009. However, associated GHG emissions are calculated using the UK grid
             rolling conversion factor as recommended by Defra / DECC.
         •   The following European offices have confirmed that electricity is not sourced
             from a renewable source: Czech Republic, Estonia, Hungary, Ireland, Italy,
             Macedonia, Slovakia, Spain, consequently associated GHG emissions are
             estimated using Defra / DECC methodology and national emissions factors. 13 All
             other offices are assumed to source electricity from the national grid. 14




12
   Defra, Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting, Annexes updated
April 2008 (Q1 & Q2 2009), June 2009 (Q3 2009) and September 2009 (Q4 2009).
13
   Indirect CO2 Emissions from the Consumption of Purchased Electricity, Heat, and / or Steam, GHG Protocol
Initiative website, www.ghgprotocol.org, Reporting 2005 Data, (All data is from International Energy Agency
Data Services, 2006).
14
   Bulgaria (Q1 2008) indicated a mixture of sustainable and non-sustainable sources used, although ‘currently
impossible to quantify’. It is assumed that this mixture is accounted for in the ‘national fuel mix’ used to
produce the national GHG conversion factor for grid electricity.
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2.3      Scope 3: Other indirect GHG emissions

a) Air Travel

         •   UK Offices: It is company policy that all rail and air travel is purchased through
             the QBE Travel Office (London and Leeds), however, a relatively small, but un-
             quantified amount of air travel is purchased directly by QBE employees – this
             travel is not currently ‘captured’ for reporting.
         •   UK Offices: All flights arising from the activities of the London offices are
             booked through the QBE London Travel Department which reports passenger
             miles flown and associated GHG emissions using two systems:
             o Scheduled flights are tracked using a Reed and McKay reservation system
                 (Sabre Central Reservations System); and,
             o Flights with low cost carriers are tracked by a separate system, distances are
                 calculated by reference to sector mileage manually taken from the Sabre
                 System. 15
         •   GHG emissions are calculated using Defra / DECC conversion factors. 16
             Average emissions factors for short haul and long haul are used, with domestic
             flights treated as short haul. A 9% uplift factor has been applied to account for
             non-direct routes and delays / circling as recommended by Defra / DECC.

b) Rail Travel

         •   UK Offices: It is company policy that all rail and air travel is purchased through
             the QBE Travel Offices (London and Leeds), however, a small, but unquantified
             amount of rail travel is purchased directly by QBE employees – this travel is not
             currently ‘captured’ for reporting.
         •   UK, London Travel Office: three types of rail travel are booked though the on-
             line booking system:
             o i) Eurostar travel (London-Paris);
             o ii) UK National travel (‘Evolve’ = Harry Weeks); and,
             o iii) South Eastern.
             GHG emissions arising from Eurostar travel and national travel booked through
             Evolve are calculated by the automated systems on the basis of passengers carried
             and rail sector data. Emissions associated with other national travel (booked
             through South Eastern) were calculated from passenger kilometres using Defra /
             DECC conversion factors for national travel.
         •   UK Offices: no details of rail travel booked during Q4 2009 available at the time
             of reporting, Q3 data therefore restated.




15
   Calculations of GHG emissions made using the Sabre system appear to be consistent with Defra guidance in
terms of cut-off between short and long haul and conversion factors used – although it is noted that conversion
factors are not the latest available from Defra.
16
   Defra, Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting, Annexes updated
April 2008 (Q1 & Q2 2009), June 2009 (Q3 2009) and September 2009 (Q4 2009).

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         •   GHG emissions associated with rail travel are calculated using Defra / DECC
             (2008/9) national rail emissions factors. 17

c) Freight

         •   UK Offices: Freight data provided by the service provider (DHL) is incomplete
             and potentially misleading. The information currently available is insufficient to
             support reporting.
         •   Other European offices: failed to report freight movements during Q4 2008.


2.4      Other Environmental Key Performance Indicators

Water Consumption

         •   Where possible Q4 water consumption was estimated from recent bills / meter
             readings on the basis of average daily consumption (m3/day) multiplied by 92
             days (October-December inclusive).
         •   Where no data was available water consumption was estimated on the basis of
             average water consumption at reporting offices (12.54 m3/FTE/quarter) multiplied
             by the number of FTE: UK; Bristol, Glasgow, Hull, Leeds, Plantation Place, 65
             and 88 Leadenhall, Walsingham House, Wapping, Stafford, Sevenoaks; Bulgaria,
             Denmark, France, Germany, Ireland, Italy, Slovakia and Switzerland.
         •   Where water consumption is reported for part of the quarter, consumption for the
             quarter as a whole is estimated on the basis of average consumption (m3/month)
             during the months when data is available; Estonia and Macedonia.
         •   QBE EO Q4 water consumption is estimated for approximately 59% (by
             employee count) of the reporting portfolio as a result overall data quality is
             considered to be ‘low’.

Paper Consumption

         •   UK Offices: purchase paper and paper products from two principal suppliers, Red
             Box and AutoPrint. During 2009 QBE purchased a total of 119,450.24 kg of
             paper from Red Box, at a total cost of £98,418 (ex VAT). None of this paper had
             recycled content, but 96% by weight had Forestry Stewardship Council
             certification. A further 32,069 kg of paper products (paper, envelopes, bags,
             document wallets, note books etc) were purchased from AutoPrint, at a total cost
             of £202,000 (ex VAT). The total weight of paper (office paper, letterheads,
             continuation sheets, tinted log sheets, motor certificates, accident report forms,
             quote pads, etc) purchased from AutoPrint was 10,936 kg, indicating the total
             weight of paper purchased was 119,450.24 + 10,936 = 130,386.24 kg, with 96.3%
             FSC certified and total cost of £152,065.




17
  Defra, Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting, Annexes updated
April 2008 (Q1 & Q2 2009), June 2009 (Q3 2009) and September 2009 (Q4 2009).

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Paper Recycling

       •   UK Offices: confidential waste paper recycled, figures reported are based on the
           service provider’s (SITA) certificate of destruction and recycling.
       •   UK Offices: limited information relating to Q4 confidential paper recycling was
           available at the time of reporting, Q3 data restated for all reporting offices.
       •   UK Offices: recycling is not currently monitored at Bromley and Hull.
       •   European Offices: Estonia, Hungary, Macedonia and Ukraine have quantified
           waste paper segregated for recycling, however, other offices are either unable to
           report due to waste management procedures (e.g. Germany) or are believed to be
           not currently recycling waste paper.
       •   Italy: reported commencing recycling activity at the start of June 2008, but has
           not reported quantities of paper recycled during 2009.


Further details of data sources and methodology adopted are provided with the associated
Environmental Key Performance Indicator Inventories for Q1-Q4 2009:

   •   QBE Environmental Inventory Q1 2009, 110110
   •   QBE Environmental Inventory Q2 2009, 210909
   •   QBE Environmental Inventory Q3 2009, 110110
   •   QBE Environmental Inventory Q4 2009, 140110

Section 3 is based on extracts from QBE Environmental Inventory Q4 2009, 140110.


2.5    Greenhouse Gas Emissions Factors Used

Greenhouse gas emissions are calculated and reported quarterly in arrears, using the current
Defra / DECC Conversion Factors for Company Reporting. In previous years, Defra has
issued revised emissions factors on an approximately annual basis; however, during 2009
there were several updates to emission factors resulting in different conversion factors being
used for the four quarterly reports. QBE European Operations GHG emissions for Q1 and
Q2 2009 were calculated using the April 2008 Defra conversion factors, Q3 emissions were
calculated using the June 2009 update and the Q4 emissions were calculated using the
September 2009 update of emissions factors. Whilst it is recognised that this inconsistency
in methodology is not ideal, it was decided not to restate Q1 – Q3 data using the September
2009 conversion factors as this would result in the annual summary report being based on
data inconsistent with that previously reported, also the impact of changing conversion
factors is not considered to be significant relative to sources of error such as estimation of
KPI data.

This report contains data consistent with the previously issued Q1 and Q2 2009 quarterly
EKPI reports. The Q3 2009 report initially used April 2009 conversion factors due to time
constraints during report preparation, but was issued with the caveat that it would be revised
in line with, the then current, June 2009 conversion factors before public disclosure. The
impact of this recalculation was to increase reported Q3 GHG emissions by 0.6% to 2,326.24
tonnes CO2e.



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   Corporate Real Estate Services – Environmental Reporting October – December 2009



GHG Emissions factors used to calculate QBE EO 2009 greenhouse gas emissions are
summarised in the table below.

GHG Emission Factor                                  Quarterly Report
for calculation of kgCO2e                     Q1 & Q2       Q3         Q4
Natural Gas / kWh (for boilers)                0.206     018396     0.18396
Gas Oil / litres (for boilers)                  2.167      3.029     3.0289
Diesel / litres (for back-up generators)        2.630     2.6694     2.6694
Car Travel / km Medium sized petrol car        0.2139     0.2149    0.21493
Car Travel / km Medium sized diesel car        0.1881     0.1894    0.18939
Electricity / kWh (UK grid rolling average)     0.537    0.54418 0.54418
Short Haul Air Travel / passenger km           0.0983     0.0992     0.9924
Long Haul Air Travel / passenger km            0.1106     0.1133    0.11331
Rail Travel / passenger km                     0.0602     0.0611    0.06113


The June 2008 update of the Defra / DECC GHG conversion factors provided, for the first
time, emission factors for the non-CO2 greenhouse gases methane, and nitrous oxide,
presented as CO2 equivalents (CO2e), consistent with reporting under the Kyoto Protocol and
the second assessment report of the Intergovernmental Panel on Climate Change (IPCC).
GHG emissions associated with the activities of QBE EO are, where possible, calculated
using the Defra/DECC conversion factors for ‘Total GHG’ i.e. carbon dioxide, methane and
nitrous oxide.




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   Corporate Real Estate Services – Environmental Reporting October – December 2009
    Corporate Real Estate Services – Environmental Reporting October – December 2009



3       2008 Environmental KPI data

Summary Environmental KPI data:




                                                                                       15
    Corporate Real Estate Services – Environmental Reporting October – December 2009
  Corporate Real Estate Services – Environmental Reporting October – December 2009



3.1   Q4 General Information




                                                                                     16
  Corporate Real Estate Services – Environmental Reporting October – December 2009
  Corporate Real Estate Services – Environmental Reporting October – December 2009



3.2   Q4 Scope 1 Greenhouse Gas Emissions




                                                                                     17
  Corporate Real Estate Services – Environmental Reporting October – December 2009
Corporate Real Estate Services – Environmental Reporting October – December 2009




                                                                                   19
Corporate Real Estate Services – Environmental Reporting October – December 2009
  Corporate Real Estate Services – Environmental Reporting October – December 2009




3.3   Q4 Scope 2 Greenhouse Gas Emissions




                                                                                     20
  Corporate Real Estate Services – Environmental Reporting October – December 2009
  Corporate Real Estate Services – Environmental Reporting October – December 2009




3.4   Q4 Scope 3 Greenhouse Gas Emissions




                                                                                     21
  Corporate Real Estate Services – Environmental Reporting October – December 2009
Corporate Real Estate Services – Environmental Reporting October – December 2009




                                                                                   22
Corporate Real Estate Services – Environmental Reporting October – December 2009
  Corporate Real Estate Services – Environmental Reporting October – December 2009


3.5   Q4 Water Consumption




                                                                                     23
  Corporate Real Estate Services – Environmental Reporting October – December 2009
  Corporate Real Estate Services – Environmental Reporting October – December 2009


3.6   Q4 Recycling




                                                                                     24
  Corporate Real Estate Services – Environmental Reporting October – December 2009
    Corporate Real Estate Services – Environmental Reporting October – December 2009




4       2009 Environmental KPI data

4.1     Environmental KPI data LongView format (metric units)




Note

i) Supporting Spreadsheets are:

    •   QBE Environmental Inventory Q1 2009, 110110
    •   QBE Environmental Inventory Q2 2009, 210909
    •   QBE Environmental Inventory Q3 2009, 110110
    •   QBE Environmental Inventory Q4 2009, 140110




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    Corporate Real Estate Services – Environmental Reporting October – December 2009
      Corporate Real Estate Services – Environmental Reporting October – December 2009



4.2        Environmental KPI data LongView format (LongView units)




Note

i) 2009 Water consumption is estimated for c60% of the reporting portfolio, overall
data quality is therefore considered to be ‘low’.

ii) ‘Business travel by company vehicle’ is based on reported car travel, this includes:
leased, hired and company cars as well as taxi journeys (the latter making a very small
contribution to the overall total).

iii) ‘Business travel by public transport’ is based on reported train travel and does not
include air travel. Data is captured as ‘passenger kilometres’.

iv) Paper sourced from Forestry Stewardship Council certified sustainable sources is
considered to be of equivalent environmental merit to ‘recycled’, the LongView
category ‘Paper Purchased – Recycled’ has therefore been expanded to include FSC
certified paper. 18




18
     http://www.fsc.org/home.html
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      Corporate Real Estate Services – Environmental Reporting October – December 2009
           Corporate Real Estate Services – Environmental Reporting October – December 2009



4.3                         Environmental KPI tracking

The following graphs summarise 2008 & 2009 performance (using metric units),
based on the data currently available.


                                                     Air Travel - Long Haul


                           3,000,000

                           2,500,000

                           2,000,000
 Air Travel - Long Haul
    (passenger km)




                           1,500,000

                           1,000,000

                            500,000

                                  0
                                       Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
                                                                     Reporting Period




                                                    Air Travel - Short Haul


                           1,200,000

                           1,000,000

                            800,000
 Air Travel - Short Haul




                            600,000
    (passenger km)




                            400,000

                            200,000

                                  0
                                       Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
                                                                     Reporting Period




                                                                                                         27
           Corporate Real Estate Services – Environmental Reporting October – December 2009
                 Corporate Real Estate Services – Environmental Reporting October – December 2009


                                                                       Electricity Usage


                      4,000,000

                      3,500,000
Electricity Usage (kWh)



                      3,000,000

                      2,500,000
                      2,000,000

                      1,500,000
                      1,000,000

                                 500,000
                                         0
                                               Q1 2008    Q2 2008    Q3 2008    Q4 2008    Q1 2009   Q2 2009   Q3 2009   Q4 2009
                                                                                         Reporting Period




                                                                   Natural Gas Consumption


                                900,000
Natural Gas Consumption (kWh)




                                800,000
                                700,000
                                600,000
                                500,000
                                400,000
                                300,000
                                200,000
                                100,000
                                     0
                                              Q1 2008    Q2 2008    Q3 2008    Q4 2008     Q1 2009   Q2 2009   Q3 2009   Q4 2009
                                                                                         Reporting Period




                                                                    Estimated Water Usage


                                40,000

                                35,000
Water Usage (m3)




                                30,000

                                25,000

                                20,000
                                15,000

                                10,000
                                 5,000

                                    0
                                             Q1 2008     Q2 2008    Q3 2008    Q4 2008     Q1 2009   Q2 2009   Q3 2009   Q4 2009
                                                                                     Reporting Period




                                                                                                                                   28
                 Corporate Real Estate Services – Environmental Reporting October – December 2009
            Corporate Real Estate Services – Environmental Reporting October – December 2009


                                                         Business Travel by Company Vehicle


                             1,200,000

                             1,000,000
Business Travel by Company




                                        800,000
       Vehicle (km)




                                        600,000

                                        400,000

                                        200,000

                                              0
                                                  Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
                                                                                      Reporting Period




                                                          Business Travel by Public Transport


                                250,000


                                200,000
Business Travel by Public




                                150,000
     Transport (km)




                                100,000


                                        50,000


                                              0
                                                  Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009
                                                                                      Reporting Period




                                                      Paper Purchased Recycled or FSC Certified
                                                                  (UK Offices only)

                                         35
           Paper Purchased - Recycled




                                         30
                 or FSC (Tonnes)




                                         25

                                         20

                                         15

                                         10

                                          5

                                          0
                                              Q1 2008   Q2 2008   Q3 2008   Q4 2008    Q1 2009   Q2 2009   Q3 2009   Q4 2009
                                                                                  Reporting Period




                                                                                                                               29
            Corporate Real Estate Services – Environmental Reporting October – December 2009
           Corporate Real Estate Services – Environmental Reporting October – December 2009




                                           Paper Purchased Non-Recycled or FSC Certified
                                                         (UK Offices only)

                                  35
       Recycled or FSC (Tonnes)




                                  30
        Paper Purchased Non-




                                  25

                                  20

                                  15

                                  10

                                  5

                                  0
                                       Q1 2008   Q2 2008   Q3 2008   Q4 2008     Q1 2009   Q2 2009   Q3 2009   Q4 2009
                                                                           Reporting Period




                                                               Paper Recycled


                      160,000

                      140,000
Paper Recycled (kg)




                      120,000

                      100,000

                       80,000
                       60,000

                       40,000
                       20,000

                                   0
                                       Q1 2008   Q2 2008   Q3 2008   Q4 2008     Q1 2009   Q2 2009   Q3 2009    Q4 2009
                                                                               Reporting Period




                                                                                                                          30
           Corporate Real Estate Services – Environmental Reporting October – December 2009
      Corporate Real Estate Services – Environmental Reporting October – December 2009




5         Environmental Initiatives
5.1       Initiatives to improve Environmental Reporting

During 2009 QBE CRES EO implemented a number of initiatives to improve
environmental reporting. 19 QBE CRES EO has worked closely with QBE New
Media team to prepare EO internal environment intranet website, which will actively
encourage participation from EO employees on a broad range of environmental
initiatives. The internal environment intranet website went ‘live’ beginning of Q1
2009.

During 2010, CRES EO will work on implementing a number of initiatives:

      o Carbon Reduction Commitment
        CRES EO is aware of the forthcoming legislation in the UK called “Carbon
        Reduction Commitment” (CRC) in 2010. This legislation will potentially
        implement an additional cost based on our carbon emissions with a league
        table being produced on energy efficient organisations. A working party has
        been set to examine how these costs can be mitigated or avoided.
        Recommendations will be provided during Q1 10.

      o Environmental issues linked to our Company Car Fleet Management
        During 2010, CRES EO will continue to review how environmental data from
        car fleet suppliers is recorded and collated, so that we can produce more
        accurate reports.

      o Waste Strategy
        CRES EO will work with the City of London on its municipal waste strategy.
        This is giving us access to new ways of reducing our waste in the London
        offices as well as to potential partners to help us achieve this.

      o Monitoring general waste
        Currently, we are working to improve the system of monitoring general waste.
        As we are tenants in most of our premises, we are looking to work more
        closely with our Landlords in order to improve our carbon foot print.

      o Recycling large items of office waste in connection with good causes
        During 2010, CRES EO will look into recycling all large items of office waste
        through charitable means. This would enable QBE to assist its designated
        charities whilst improving our waste disposal.

      o Recycling printer and photocopier toners
        CRES EO will look into recycling printer and photocopier toners and ensure
        that the proceeds from this go to a charitable means.




19
     QBE, CRES EO, Environmental Reporting January – March 2008.
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      Corporate Real Estate Services – Environmental Reporting October – December 2009
Corporate Real Estate Services – Environmental Reporting October – December 2009

o Recycling plastic cups
  Currently, we are continuing to investigate on the possibility to recycle plastic
  cups, which would decrease our waste disposal. The proceeds from this would
  go to a charitable means.

o Green alternatives for Stationary
  CRES EO is continuing to work with our supplier to offer green alternatives
  against our standard stationary supplies. This will also include changing our
  photocopying paper to a product that comes from a sustainable source and is
  approved by the Forestry Stewardship Council (FSC).

o Recycling Stations
  During 2010, we will look at the feasibility of providing recycling stations i.e.
  a one stop shop for recycling can, plastic cups and paper.

o Did You know Campaign
  During 2010 we will consider running a “did you know campaign” which will
  high key fact and figures to employees throughout EO additionally
  highlighting ways to help reduce our Carbon footprint.

o EO Environmental Web pages
  Additional enhancements will be made to our intranet web pages that were
  launched in January 09 include a dedicated area that takes a closer look at
  what our suppliers are doing in ClimateWise and Corporate Social
  Responsibility (CSR).

o Reporting Guidance and Spreadsheet
  During Q1 2010 CRES EO will work on further developing and re-distributing
  the reporting guidance and the user-friendly spreadsheet for EO reporting
  offices, which will enhance the adoption of a standardised approach to data
  collection contributing to improved data quality.

o Identification and adoption of a more sustainable source of office
  furniture
  CRES EO will carry on adopting more sustainable source of office furniture
  by continuing to employ Bene, our preferred supplier, for future office
  furniture purchase.

o ClimateWise
  During 2010 we will continue working towards maintaining 2009 results of
  fully achieved compliance with ‘Principles 5 & 6’ including reducing
  environmental impact and reporting.

o Clean City Awards.
  QBE EO London offices will continue to participate in the City of London
  Clean City Awards, working towards improving the ‘Gold’ award received
  during 2009.




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Corporate Real Estate Services – Environmental Reporting October – December 2009
     Corporate Real Estate Services – Environmental Reporting October – December 2009

     o Review Environmental Key Performance Indicator Data
       Review EKPI data submitted by reporting sites in order to:
       a) Identify areas where reporting guidance is not being followed; 20
       b) Identify common problems or areas of misunderstanding and also offices
       requiring more specific support; and, 21
       c) Identify potentially significant problems with access to data; 22
       d) Establish why some offices struggle to meet the current reporting schedule;
       in order to establish and provide further clarification or support as required




20
   Some sites, for example, regularly leave gaps in EKPI reports resulting in uncertainty as to whether
this is because ‘no data’ or ‘zero result’. This is potentially a significant as data is frequently estimated
on the basis of average performance to fill data gaps when data is collated to produce quarterly reports,
hence, ‘zero results’ may be converted to ‘average’ performance resulting in overstatement of EKPIs.
21
   For example, the Hungarian office is unable to report natural gas consumption (kWh or m3).
22
   For example, 2009 reporting of UK office company car use is dependant upon estimated data from
Q1 2008

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     Corporate Real Estate Services – Environmental Reporting October – December 2009

								
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