Carbon Footprinting And Carbon Labelling The Carbon Trust

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					   Product Carbon Footprinting,
       And Carbon Labelling
              Martin Barrow
      Head of Customer and Project Management
         Carbon Trust Footprinting Company


The Food and Drink Innovation Network
          27th January 2010
WHY WE MUST REDUCE NOW
     Why? What Happens If We Fail?

                                Global GHG emissions projections
                   100                                                                                                             Scenario    2100 CO2e(1)
                                                                                                                                   Business-    1000+ ppm
                       90              Current range of
                                                                                                                                   as-usual       (~6°C)
                                        market belief
Global GHG emissions




                       80

                       70
      (GtCO2e)




                       60
                                                                                                                                   Stretch     700 ppm
                       50                                                                                                          market       (~4°C)
                                                                                                                                   belief
                       40

                       30
                                                                                                                                   Scenarios    550 ppm
                                                                                                                                   tackling      (~3°C)
                       20                                                                                                          climate
                                A change in market sentiment will need to                                                          change       450 ppm
                       10                      take place                                                                                        (~2°C)
                       0
                       2000   2005    2010        2015        2020        2025        2030       2035        2040         2045   2050

                                                                                 Year

Note:      Equilibrium temperature projections using the median of the climate sensitivity ranges based on the IPCC TAR
Source: Oxera and Carbon Trust analysis
WHY CARBON FOOTPRINT
Why Carbon Footprint?

  Not for fun
  Not to calculate a number

  To release information
  To allow reductions


  3 areas:
   – Internal decisions based upon facts
   – Work with suppliers
   – Customer decisions
Why Should My Company Do This?



   A product which is environmentally sustainable is a
      product which is economically sustainable…
                    …and vice versa




    Do you want your stakeholders to think you have
        a non-economically sustainable product?
WHY CARBON TRUST
Carbon Trust Experience/Involvement

  Unique position to work with so many companies and
  consultancies on varied product footprint projects
   – Over 5500 skus footprinted

  How to role this out at scale:
   – Execution
   – Data Collection
   – Model Building
   – Certification

  How to make this affordable at scale
   – Re-use of what we have learned/built
Examples: Allied Bakeries, Kingsmill


• On-pack
• On-line
• Advertorial
• National product giveaway
Examples: Kingsmill PR
Examples: Marshalls

• Footprinted their entire 503
domestic landscaping products

• Reduction label for every product
shown in their catalogue and website

• Customers can accurately and
easily calculate the total embodied
CO2e of their landscaping materials

• Demonstrates leadership, ambition
and credibility

• Won many prestigious awards
Examples: Tropicana
• Tropicana results exclusive in NY
Times

• Generated 78 follow-on stories
with 3.5 million online page
impressions

• The first product within the US to
incorporate a carbon reduction
label

• Certification and product
labelling by the Carbon Label
Company

• PepsiCo committing to footprint
further brands
Examples: Coca Cola - Recycling

• Advertising campaign to increase
recycling, based on footprinting results
• Communications to political
stakeholders
Examples: Coca Cola - Results


• Flow Charts/Pie Charts to communicate the lifecycle stages
Examples: Walkers re-certification

• 2-year anniversary of original footprint
launch
• Products analysed: Walkers Crisps (Potato
Chips)
• Identified that 59% of carbon emissions were
outside their operations and 41% inside
• Recertified footprint: shows 7% reduction on
2007
• Mix of supplier & Walkers internal initiatives
• Saved £400,000, to reinvest in carbon-saving
initiatives
• www.walkerscarbonfootprint.co.uk
Examples: Tesco – Footprinting at scale


     Orange Juice      Washing Detergents   Light bulbs stand
LEVERAGING GREEN CONSUMERS
Leveraging Green Consumers

  Increasing group of consumers want to understand the
  climate impact of their product choices

  Consumers:
   – Want access to consistent information
   – Want to know companies are reducing

  Retailers:
   – Act on behalf of consumers

  Brands:
   – Differentiate based on credentials
Are Product Footprints Important?
   75% of emissions are driven by Households
   50% of these are embodied, and 50% usage




                                                        Product   Direct




                  d        p     p d pp
         Source: Hertwich and Peters, Env. Sc. Tech. 2009



    Source: Peters and Hertwich, Env. Sci. Tech. 2008
AFFORDABILITY
Affordability

  To maximise reductions - needs to be affordable

  Two fundamentals:
   – Automation/Re-use (Tools&Rules)
   – Comparable certified B2B values for all input materials

  Created Footprint Expert to deliver both of these:
   – Guide
   – Calculators
   – Data
   – Excel framework
   – Registry
Affordability

  Accredited models:
   – Mixing desks
   – Re-usable calculation engines

  Solution sharing:
   – Multiple front ends, with Footprint Expert inside

  Collaboration:
INTERNATIONAL
                                                                                                24
Supply Chains Are International




For companies that are producing goods for both domestic and international markets, a consistent
method of assessment is essential for minimising cost and complexity in supply chain carbon footprint
assessment. It allows modularity and levels the playing field
20% Of Global Emissions Import/Export

                                                        Embodied in exports



                                                        Embodied in imports




    Source: Peters and Hertwich, Env. Sci. Tech. 2008
Multinationals

  Key for multi-nationals…
  Want one way of footprinting internationally
                                                                               27
PAS2050 Being Used Internationally




   Started with
     ISO 14044
  Asked question
                      PAS 2050 has been downloaded over 18,000 times in over
how to do practical       100 countries. Currently averaging 40 a day (Nov)
  Product Carbon                  (Direct downloads only; to Nov 2009)
 Footprint at scale
Need Aligned Standards




  2007         2008     2009          2010        2011            2012

    PAS 2050                      Review
                                                      Need to ensure that
                                                      there is ‘under bonnet’
                      WRI/WBCSD                       consistency between
                                                      the different initiatives.
                       ISO 14067
                                   Sustainability Consortium
Footprint Expert And Standards




           Footprint Expert will continue.

             All standards are high level.
         Footprint Expert is needed to define
             in detail exactly what to do
COLLABORATION NOT DUPLICATION
Collaboration

  We seek to work with as many parties as possible to
  ensure one way of footprinting… or fails
  Training: model builders - companies and consultancies
  Certifiers: many to Footprint Expert level
  International schemes: e.g. South Korea (KEITI)
  Domestic schemes: e.g. WRAP (Courtauld)
   – Minimised duplication for companies
   – Upgrade paths between schemes
   – Bring down costs
   – Use Footprint Expert certified values in Courtauld
COMMON COMMUNICATION
The Carbon Reduction LabelTM




   To standardise communication, with flexibility
   – $4.6 billion dollars worth of products labelled
 Reduction v Number: Customers


“Working to reduce carbon, it         “I would prioritise a product with
is something companies should         the Carbon Reduction Label if the
be doing”                             price was the same as those
                                      without it”
             Disagree,                              Disagree,
                5%                                     9%




 Neither /
  Don't
Know, 31%
                                       Neither /
                                        Don't
                                      Know, 35%                                        Agree, 56%

                         Agree, 64%




                                                   Source: Populus Consumer Research for PepsiCo/Walkers,
                                                                                             January 2009
REDUCTION v NUMBERS
Commitment To Reduce

 Some companies - focus on Reduction without a number

 Some companies - commit to Reduce, and display Number for
 customers

 In either case – must disclose number somewhere (web)
CONCLUSION
Conclusion
  We are making this affordable at scale
  – Tools
  – Certified comparable B2B values

  Through framework of:
   – Footprint Expert toolkit
   – Training
   – Companies
   – Consultancies
   – Certifiers
   – Models
   – Systems Solutions
   – Collaborations
   – Communications
   – Reduction
THANKYOU

				
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