Developing a rigorous building and transparent methodology for carbon counting John Stocks Manager - Scotland

Requirements for Carbon Accounting To provide a clear and unambiguous statement of impact; –Numerical –Recognised methodology –Clear statement of boundaries –Verifiable

Carbon Footprints Site Energy in Emissions out Raw materials in Product out Product footprint Site footprint

Carbon Trust activity Site and company footprinting –Carbon Trust Standard Product footprinting –PAS 2050 –Carbon Label Company

International protocols and standards exist

The GHG Protocol provides guidance on defining the ‘boundary’ and inclusion of emissions types Operational boundary: Emissions Scope Parent Company Subsidiary ASubsidiary C 100% 51%30% Employee air flights + travel Outsourced activities Supply chain Scope 2: Electricity indirect Scope 3: Other indirect Purchased electricity Waste products Ship fleet Gas burner Gas boiler Truck fleet Scope 1: Direct Organisational boundary Subsidiary B GHG Protocol Approach

Carbon footprinting tools Carbon footprinting; an introduction for organisations On-site surveys; footprinting module On-line footprint calculator Training event

Measurement based on GHG Protocol All organisations must have achieved a reduction –Absolute (tCO 2 ) or –Relative -2.5% (tCO 2 /widget) 2 year renewal cycle –Renewal will require progress since initial certification 65 organisations certified Certified organisations can display logo on marketing materials The Carbon Trust Standard

Carbon Trust activity Site and company footprinting –Carbon Trust Standard Product footprinting –PAS 2050 –Carbon Label Company

What makes up a carbon footprint

Developing product footprinting methodology Standards setting PAS 2050 Company engagement Carbon Label Company Developing standards to: Measure; Reduce; and Communicate the GHG emissions from goods & services Product footprinting Reduction planning Communication (including labelling)

PAS 205 published - October 2008

Process map - Boots Botanics shampoo

Innocents Smoothies

Continental Clothing

Walkers Crisps

Walkers re-certification Nearing 2-year anniversary of original footprint launch Recertified footprint: shows 7% reduction on 2007 –Mix of supplier & Walkers internal initiatives Saved £400,000, to reinvest in carbon-saving initiatives New label appearing in April/May

WRI/WBCSDISO Building on existing GHG Protocol Developing guidance/requirements for product carbon footprinting The Carbon Trust on Steering Group Likely 2-3 year process CT agreed to feed in results from projects in UK, US and other countries ISO Committee agreed to develop standard in November PAS2050 only product footprinting standard in review Attending meetings e.g. Malaysia But Likely 3-5 year process Highly consensus-driven: likely to be very high-level - important for “air cover” but still need product- specific guidance International Update: Standards We are closely involved in the ongoing international work

International Update: Projects US: Coke announced as new partner US: Tropicana results exclusive in NY Times –Generated 78 follow-on stories with 3.5 million online page impressions –PepsiCo committing to footprint further brands China: Footprinting trials about to begin with ~3 product categories –Sugar –Clothing –Toys –Possibly others to follow Coordinating with other country initiatives e.g. Germany, Japan, Korea

Requirements for Carbon Accounting To provide a clear and unambiguous statement of impact; –Numerical –Recognised methodology –Clear statement of boundaries –Verifiable Allows; –Progress to be assessed –Comparisons to be made –Efforts to be accurately focused –Myths to be uncovered

Making Business Sense of Climate Change