Sustainability Footprints in SMEs The Log House People: Low-Carbon Construction

Objectives Discuss the main sustainability issues at the Log House People Review the philosophical, cultural, and strategic context of sustainability footprint implementation within Log House People Discuss the use of the Sustainable Strategic Growth Model and its benefits to the business

Log House People designed home Company Background Founded in 2008 by Hugh Gourlay and his father Frank Gourlay specializing in the supply and construction of log houses for personal or commercial purposes Combines a family interest in the building of Log Homes with a concern for the environment The company is managed from a rented office in Edinburgh and a home office located in Sandyhills, Dumfriesshire that is operated by two full-time employees with additional staff being hired on a project basis Log House People designed home

Industry Competitive Analysis Domestic buildings contribute 27% of the UK’s GHG emissions Built environment accounting for 40% of Scotland’s emissions Construction sector largely dominated by SMEs Construction SMEs have a role in building energy efficient, “Zero Carbon” homes, creation of green jobs thereby promoting the government’s low carbon strategy Decline in the sector’s GVA contribution to the Scottish economy from £11.1 billion in 2008 to £8.7 billion in 2009 Scottish construction sector is projected to grow by 2.4% annually

What are the main environmental aspects at the Log House People Environmental Aspect is an element of an organisations activities, products and services that can interact with the environment Implementing a carbon management system shows commitment to protecting the environment and helps monitor and improve management of environmental aspects

What are the main environmental aspects at the Log House People Pressures to decarbonize the construction sector will lead to “green washing” as competitors seek to raise the profile Resistance to adopt low carbon technology Decision making influenced by age group Cement production is a contributor to global GHG emissions 1.8 Gt CO₂ in 2005 Pro-biodiversity enterprises (PBEs) face challenges around the human resource retention, management of knowledge, networking, and the acquisition of technical expertise

What are the main environmental aspects at the Log House People DEFRA compliant GHG report and included emissions from the following aspects: Scope 1 – Fleet fuel consumption and Gas Scope 2 – Electricity use at both offices Scope 3 – Staff commuting, Procurement, Water consumption, Waste disposal The following Scope 3 emissions were excluded Customer travel and Supplier travel

What are the main environmental aspects at the Log House People EMISSION SOURCE ACTIVITY DATA EMISSIONS   Scope 1 Fleet Fuel Consumption Gas Consumption Amount Unit kgCO2e/yr % total 9509 498 miles/yr KWh/yr 4,044 3,942 102 47.7 46.5 1.2 Scope 2 Electricity Consumption 5247 2,855 33.6 Scope 3 Procurement Office Waste Water Use Staff Commuting 1,412 260 31,943 £/yr Kg/yr Liters/yr Miles/yr 1,587 1468 75 43 18.7 9 0.9 0.5 Total 8,486 kgCO2e/yr 8.5 tCO2e/yr

Sustainable by design “No. 2 River Park”

Sustainable by design “No. 2 River Park” Energy efficiency and carbon friendliness are USPs of Log homes Timber during its growth as a tree exceeds the emissions that arise as a result of the harvesting and transportation Management commissioned an SAP assessment of building design ‘No.2 Riverview Park’ looking at the HVAC systems dimension, volume, fabric performance and location

Sustainable by design “No. 2 River Park” Energy assessment results were itemized in two categories: Energy Efficiency rating in kilowatt hours per square meter per year Environmental Impact rating calculated in carbon dioxide emissions per square meter per year with performance being expressed into performance bands in a descending scale from A ( highest) to G (lowest)

Sustainable by design “No. 2 River Park” The proposed ‘No.2 Riverview Park’ design configuration yielded an Energy Efficiency Rating of C-80 (95KWh/m²/yr) Environmental Impact Rating of C-78 (22.05 kg CO₂/m²/yr) which was below the performance level of an identical dwelling using Scottish Building Standards 2009 data

Sustainable by design “No. 2 River Park” To enhance the energy performance: Building insulation was improved Energy efficient lighting use was increased from 50% to 100% Subsequent SAP assessment indicated improved performance with Energy Efficiency Rating of B-82 (89KWh/m²/yr) and an Environmental Impact Rating of C-80 (18.13 kg CO₂/m²/yr)

Stakeholder Perceptions “I got involved because I felt that it was apart from anything else a useful marketing tool utilizing some sort of ecotourism banner or that you do care about the environment and equally because I have a belief that we should be taking responsibility for our carbon footprint and our actions” Director “Just measuring it on its own is not useful it depends on what people do with the data once its measured if its compiled you can almost put into a league table … become part of the accounting process for Companies House so you can publicly see how companies were performing then it can be useful tool. Just by measuring it is useful to other people in the organisation brings their awareness to the subject. I think national monitoring or some kind of database … would be more useful” Director

Sustainable Strategic Growth Model – Log House People Case study Present Sustainable Innovation FUTURE SUSTAINABLE INNOVATION Solar power, CHP Plant, local timber, recycled wood, water/ social footprint LEARN DEVELOP IMPLEMENT OPTIMISE Acquire knowledge External support from the Crichton Carbon Centre Build Capability Nomination of a carbon champion Develop Policy Environment Policy and Carbon Management Policy developed Implement Policy Benchmark GHG/carbon footprint report Adopt Continuous Improvement New Log House design that will improve building efficiency Renew & Reward commitment to sustainability Annual GHG Reports Pursuit of ISO 14001/BREEAM/ eco labeling Sustainability Envelope Future Sustainability Barrier

References Chapter 8 Sustainability Footprints in SMEs