1. NRG 173: Carbon Footprints for Climate Action in Complex Organizations Spring Term 2011 Class 13 of 20 May 12, 2011 Kelly Hoell Good Company Eugene, OR

2. overview ensure understanding of assignment and interpreting EIOLCA results review methodology for using EIOLCA to estimate supply chain emissions

3. objectives learn various ways to use EIOLCA: to inform your thinking and to estimate supply chain emissions

4. EIOLCA: analysis essential questions to ask (for a sector) –Scope 1 vs. Scope 2 vs. Scope 3: sense of scale? –Implications of relative emissions by scope? –Are the major GHG-contributing sectors obvious or not? E.g., transportation? Downstream? Tell a story. –cost of carbon, 1: how can we estimate it? –cost of carbon, 2: how can we know if it’s a big deal? your write-up – due May 17 (before class) –briefly describe two sectors, show screenshots; use Excel to generate a pie chart of the scopes –answer the essential questions; back up your answers –maximum 4 pages; 1400 words –use solid spelling/grammar/formatting

5. Enterprise Carbon Accounting Shows the Way Forward what did the article say Dell need to do? –understand its carbon footprint –transparently describe emissions traditional LCA EIOLCA hybrid –start with EIOLCA to see the big picture –determine what is material –dive deeper for the most significant product categories

6. 9/20/20156 absolute emissions: City of Hillsboro sense of scale for supply chain emissions

7. approach: converting dollars to CO 2 e $ = expenditure CO 2 e/$ = “carbon intensity” of expenditure CO 2 e = final estimate of total emissions in expenditure repeat this equation for each category of purchases supply chain emissions methodology

8. 9/20/20158 EIOLCA: big picture process steps 1.get data 2.understand data 3.remove certain expenses 4.group and sort into major categories 5.use EIOLCA to find CO 2 e-intensity 6.adjust results for inflation 7.roll data up into 5-15 categories for reporting 8.report results supply chain emissions methodology

9. 9/20/20159 EIOLCA: process steps 1.get data a.request/generate annual expenditure data b.provide examples of what you’d like supply chain emissions methodology

10. 9/20/201510 Example supply chain emissions methodology

11. 9/20/201511 EIOLCA: process steps 2.understand data a)mysterious examples: Food – MOW TR - environmental svcs City Street Lighting Travel and Subsistance supply chain emissions methodology

12. 9/20/201512 EIOLCA: process steps 3.remove… a.categories that represent double-counting from emissions sources included elsewhere in your inventory (e.g., fuel purchases; utility payments; etc.) b.payments that do not purchase goods or services (e.g., money transfers; salaries; taxes; etc.) supply chain emissions methodology

13. 9/20/201513 Activity 1: refine purchasing data Directions: Describe each purchasing category as “remove” or “include”. supply chain emissions methodology

14. 9/20/201514 Activity 1: refine purchasing data Directions: Describe each purchasing category as “remove” or “include”. supply chain emissions methodology

15. 9/20/201515 EIOLCA: process steps 4.group and sort a.begin with the end in mind (to the extent possible): i.aim for 25-50 categories initially; we’ll get down to 5-15 ii.know some of the likely categories at the outset iii.see our examples b.sort and sub-total expenditures by likely category c.and… again! Beware of diminishing returns! At some point, you will not want to spend time sorting tiny purchases, so you might need to assemble a catch-all category for these small-dollar items. (They must be small in aggregate as well.) supply chain emissions methodology

16. 9/20/201516 EIOLCA: process steps 4.group and sort a.begin with the end in mind (to the extent possible): i.aim for 25-50 categories initially; we’ll get down to 5-15 ii.know some of the likely categories at the outset supply chain emissions methodology

17. 9/20/201517 EIOLCA: process steps 4.group and sort b.sort and sub-total expenditures by likely category supply chain emissions methodology

18. 9/20/201518 EIOLCA: process steps 4.group and sort b.sort and sub-total expenditures by likely category supply chain emissions methodology

19. 9/20/201519 EIOLCA: process steps 4.group and sort b.sort and sub-total expenditures by likely category supply chain emissions methodology

20. 9/20/201520 EIOLCA: process steps 4.group and sort b.sort and sub-total expenditures by likely category c.and… again to match to EIOLCA categories! supply chain emissions methodology

21. 9/20/201521 EIOLCA: process steps 5.use EIOLCA to find CO 2 e-intensity for each category a.go to EIOLCA.net i.click on “use the tool” ii.use default: “US Department of Commerce 2002 Industry Benchmark (428)” b.select sector i.use Browse Sector or Search by Keyword ii.check sector description to make sure it matches iii.click on “Select this Sector and Display Model” c.get GHG intensity of the sector i.click on “Change Inputs” button ii.select “Greenhouse Gases” d.record information in calculator i.copy and paste total (“GWP MTCO2E”) and constituent parts For more context, go through the tutorial under “Method”. supply chain emissions methodology

22. 9/20/201522 EIOLCA: process steps 6.adjust results for inflation supply chain emissions methodology

23. 9/20/201523 EIOLCA inflation correction Why correct for inflation? –EIOLCA model based on 2002 data (i.e., prices) –linear relationship between $ and emissions –using 2010 currency value will lead to inflated emissions Inflation Correction Method –Use the U.S. Department of Labor – Bureau of Labor Statistics, Consumer Price Index (CPI) –price indices available for some specific industries supply chain emissions methodology

24. 9/20/201524 supply chain carbon: EIOLCA bls.gov: Consumer Price Index

25. 9/20/201525 supply chain carbon: EIOLCA bls.gov: Consumer Price Index

26. 9/20/201526 supply chain carbon: EIOLCA EIOLCA example: Consumer Price Index

27. 9/20/201527 supply chain carbon: EIOLCA construction: Turner Building Price Index

28. 9/20/201528 EIOLCA: process steps 7. roll data up into 5-15 categories for reporting supply chain emissions methodology

29. 9/20/201529 results example 1: Beaverton supply chain emissions methodology

30. 9/20/201530 results example 2: Hillsboro supply chain emissions methodology

31. 9/20/201531 results example 3: University of Texas, Austin dominant result for public works: facilities (construction and renovation) matter most supply chain carbon: EIOLCA

32. 9/20/201532 results example 4: emissions vs. expenditure supply chain emissions methodology

33. Tool: the effort-impact balance Grim realities: –You have limited time for research (as opposed to actual buying). –You have too many decisions to research all of them in depth. Logical responses: –You must scale research effort to the impact of each decision. –You must create a way of setting priorities. –You must have strategies for those items that warrant little attention.

34. 34 a simple matrix Tool: the effort-impact balance effort/ impact low efforthigh effort low impact small or unimportant purchases, easy to carry out small or unimportant purchases, hard to carry out high impact large or important purchases, easy to carry out large or important purchases, hard to carry out

35. 35 defining effort and impact “effort” –financial (first cost or life-cycle cost) –purchaser time (energy, research) –political/organizational (buy-in at various levels) “impact” –environmental –cultural (self-perception of employees, leadership, other stakeholders) –health (direct, indirect/remote) Tool: the effort-impact balance

36. 36 sequence of priorities Tool: the effort-impact balance low efforthigh effort low impact high impact 1 2 2 3

37. 37 examples for an office-based business Tool: the effort-impact balance low efforthigh effort low impact high impact examples to place: renewable power, organic coffee, recycled paper, green roof, energy-efficient lighting retrofit renewable power green roof energy-efficient lighting retrofit organic coffee, recycled paper

38. 38 a few focus areas construction: materials and green building equipment: computers and electronics From each, take away lessons (not just information). Environmentally Preferable Purchasing

39. 39 Focus on: a few key materials the life cycle LEED is: free guidance accountability and policy another example of a framework construction and green building

40. 40 Typical road, bridge or other infrastructure project: involves thousands of materials consists largely (in terms of cost and materials) of a small number of high-volume materials on-going maintenance needs, ultimate deconstruction Incorporate all of these realities into your purchasing decisions. construction and green building

41. 41 LEED is often described as unnecessary, expensive, “just a plaque” Think of LEED as (and use it for): inspiration in design accounting, accountability, transparency a form of pre-vetted environmental policy that has already undergone scrutiny an evolving framework construction and green building

42. 42 use the LEED point system as a guide

43. Inventory of Carbon and Energy (ICE) carbon footprints / GHG inventories Source: http://people.bath.ac.uk/cj219/; Version 1.6ahttp://people.bath.ac.uk/cj219/

44. 44 public-domain tool for IT equipment purchasing likely to be useful to many organizations also, instructive as a framework electronics purchasing: EPEAT

45. 45 An easy-to-use environmental procurement tool designed to help institutional purchasers compare desktop computers, laptops and monitors based on their environmental attributes. What is EPEAT? www.epeat.net

46. 46 Environmentally Sensitive Materials Materials Selection Design for End of Life Product Longevity/Life Cycle Extension Energy Conservation End of Life Management Corporate Performance Packaging EPEAT performance categories

47. 47 EPEAT Bronze – Meets the all of the 23 mandatory performance criteria EPEAT Silver – Meets all mandatory criteria and 50% of the optional criteria EPEAT Gold – Meets all mandatory criteria and 75% of the optional criteria TM EPEAT tiers: everyone likes to win a medal

48. opportunities to manage supply-chain impacts identify supplier / vendor opportunities –Vendor as % of your supply chain? –Concentration of component suppliers in your process? –Strength of your relationship with the vendor? –Vendor’s internal capacity for change? engage suppliers and ask questions include stock language in RFPs and contracts develop policies to purchase items: –with trusted eco-certifications –from preferred vendors –that meet certain established standards train staff to ensure shared understanding

49. Feel free to contact me: Kelly Hoell kelly.hoell@goodcompany.com (541) 341-GOOD (4663), ext. 217 Have a good weekend!