1. Product Carbon Footprinting, And Carbon Labelling The Food and Drink Innovation Network 27 th January 2010 Martin Barrow Head of Customer and Project Management Carbon Trust Footprinting Company

2. WHY WE MUST REDUCE NOW

3. Stretch market belief Why? What Happens If We Fail? Year Global GHG emissions (GtCO 2 e) Global GHG emissions projections Business- as-usual Scenario 1000+ ppm (~6°C) 2100 CO 2 e (1) Scenarios tackling climate change Note:Equilibrium temperature projections using the median of the climate sensitivity ranges based on the IPCC TAR Source:Oxera and Carbon Trust analysis 700 ppm (~4°C) 550 ppm (~3°C) A change in market sentiment will need to take place Current range of market belief 450 ppm (~2°C) 0 10 20 30 40 50 60 70 80 90 100 2005201020152020202520302035204020452050 2000

4. WHY CARBON FOOTPRINT

5. 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

6. A product which is environmentally sustainable is a product which is economically sustainable… …and vice versa Why Should My Company Do This? Do you want your stakeholders to think you have a non-economically sustainable product?

7. WHY CARBON TRUST

8. 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

9. Examples: Allied Bakeries, Kingsmill On-pack On-line Advertorial National product giveaway

10. Examples: Kingsmill PR

11. 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: Marshalls

12. 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: Tropicana

13. Examples: Coca Cola - Recycling Advertising campaign to increase recycling, based on footprinting results Communications to political stakeholders

14. Flow Charts/Pie Charts to communicate the lifecycle stages Examples: Coca Cola - Results

15. 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

16. Examples: Tesco – Footprinting at scale Orange JuiceWashing DetergentsLight bulbs stand

17. LEVERAGING GREEN CONSUMERS

18. 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

19. Are Product Footprints Important? Source: Hertwich and Peters, Env. Sc. Tech. 2009 Source: Peters and Hertwich, Env. Sci. Tech. 2008 Direct Product ppppdd 75% of emissions are driven by Households 50% of these are embodied, and 50% usage

20. AFFORDABILITY

21. 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

22. Affordability Accredited models: –Mixing desks –Re-usable calculation engines Solution sharing: –Multiple front ends, with Footprint Expert inside Collaboration:

23. INTERNATIONAL

24. 24 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 Supply Chains Are International

25. 20% Of Global Emissions Import/Export Source: Peters and Hertwich, Env. Sci. Tech. 2008 Embodied in exports Embodied in imports

26. Multinationals Key for multi-nationals… Want one way of footprinting internationally

27. 27 PAS2050 Being Used Internationally PAS 2050 has been downloaded over 18,000 times in over 100 countries. Currently averaging 40 a day (Nov) (Direct downloads only; to Nov 2009) Started with ISO 14044 Asked question how to do practical Product Carbon Footprint at scale

28. 2007 2008 2009 2010 2011 2012 PAS 2050 WRI/WBCSD ISO 14067 Review Need to ensure that there is ‘under bonnet’ consistency between the different initiatives. Need Aligned Standards Sustainability Consortium

29. 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

30. COLLABORATION NOT DUPLICATION

31. 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

32. COMMON COMMUNICATION

33. The Carbon Reduction Label TM To standardise communication, with flexibility – $4.6 billion dollars worth of products labelled

34. Source: Populus Consumer Research for PepsiCo/Walkers, January 2009 “Working to reduce carbon, it is something companies should be doing” “I would prioritise a product with the Carbon Reduction Label if the price was the same as those without it” Reduction v Number: Customers

35. REDUCTION v NUMBERS

36. 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)

37. CONCLUSION

38. 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

39. THANKYOU