1. Carbon Trust Certification
How do we manage growth around the Thames Estuary sustainably?
Good afternoon, welcome. Firstly, introduce myself.
For those who aren’t familiar with the Carbon Trust we are a mission driven organisation. That mission is to accelerate the move to a sustainable, low carbon economy. We are independent experts on carbon reduction and resource efficiency extending to water, waste and supply chain operations.
The relevance clear to growing Thames Estuary… important to ask whilst growth is always encouraging, how do we understand impacts of growth to ensure we’re doing it responsibly and sustainably?
Kirsty McKell Commercial Development Manager
Direct:

2. How can we protect ourselves from the biggest global risks we face?
First, let’s take a look at the major global risks facing mankind as highlighted by the World Economic Forum this year.
Using a scale of likelihood and impact, 800 international experts were asked to assess the major threats affecting mankind’s stability.
When we look at the most critical risks identified amongst the top 10 global risks in terms of likelihood and/or impact all of a sudden they become very pertinent to the Thames Estuary -
Water crises
Biodiversity loss & ecosystem collapse
Failure of climate change adaptation
Extreme weather events
There is a critical distinction between these risks and the commercial activity of any stakeholders interested in the development of the Thames Estuary.
So how do we address the concern of ensuring that any commercial activity is sympathetic to the needs of climate change?
The first step is to understand own impact on the environment – what is it? Where does most of your impact come from? Is it predominantly a carbon issue or are your does it come from water/waste and how do we collaborate with supply chain to manage future risks?
I want to talk you through an example of how we helped one organisation understand their impacts. This isn’t a story about a shipping or marine organisation but the message remains strong... And appropriate for us all…
‘Top 10’ risk in terms of likelihood and/or impact
Source: World Economic Forum – Global Risks 2015

3. B2B workplace services provider Sought after ‘world first’ status
World’s first waste management service
World’s first water dispenser certified by the Carbon Trust
2013 the Carbon Trust completed a full lifecycle analysis of their largest single product line -
sanitary disposal service
Also certified greatest energy consuming product -
water dispensers
Likely you already know about PHS… they’re everywhere. Workplace services provider – not products, predominantly contractual services such as waste disposal, sanitary and washrooms products.
PHS are a B2B organisation not consumer brand like the many who previously undertaken PCF.
PHS originally approached the Carbon Trust because they were interested in the badge… Footprint Label specifically.
Wanted ‘worlds firsts’… first waste management service & water dispenser certified by the Carbon Trust.
Why? To create differentiation & demonstrate best practise with a solid marketing story that, to quote Emma Wood from PHS, showed that “they weren’t making these numbers up”.
So certified sanitary disposal service & range of water dispensers
However… other than the marketing message there was a bigger, more unexpected benefit.... But to understand that it’s important to first understand what we did…

4. Your boundary determines which activities & emissions are included or excluded
Raw material production and distribution
Product manufacturing
Distribution & retail
Use-Phase
Disposal & recycling
Gate-to-gate
Cradle-to-gate (manufacturer)
Cradle-to-gate (retailer)
Before attempting a footprint cert, first need to determine boundary. It important because there are varying degrees of boundary specification depending on the requirements of your product or service.
PHS = cradle to grave. Meant that we took into consideration everything associated with the delivery of their service, incl raw material production, manufacturing, distribution and closing the cycle with the return of the bins.
The wider the scope, the greater the opp to drill down into the nitty-gritty, allowing you to reveal the true sources and drivers for your emissions.
As a result there was a bigger, unexpected benefit for PHS…
Cradle-to-grave

5. Carbon Trust Certification delivers real resource and cost reduction
Improved understanding of the operational supply chain
Facilitated the release of required major investment
…opp to improve service efficiency, that came from a comprehensive understanding of their operational supply chain.
The analysis provided a solid framework for PHS to make sound decisions for major investment decisions.
And meant that they could make long-term strategic decisions to develop products and ensure they lead the way sustainable innovation.
Ability to influence long-term product development

6. Sustainable innovation can be delivered using a carbon footprint certification
How can we improve service efficiency?
Is there another way of providing the same service?
Here you can see a rough diagram of the emissions associated with their sanitary disposal units.
Majority of emissions associated with servicing and waste treatment.
Because this data was certified by a trusted, external third party PHS were able to confidently use the evidence to make judgement calls on where they should invest next.
What did they do?
Further research identified that enhanced vehicle telematics, routing technology and driver training would reduce fuel consumption by 15-20, taking this servicing element down quite considerably.
The process also stimulated bigger questions around service frequency and bin design… “how can they improve service efficiency?”… “is there another way of providing same service?”.
The footprint certification allowed PHS to lift the bonnet on their true hotspots contributing to their full lifecycle impact … and that is when the ability to address climate change really comes into play…

7. Using certification to overcome competitive barriers
Re-focussed energy to the in-use phase: reducing carbon impact & cost impact for the customer
Strengthens reputable brand with verified data
Delivered new pricing model for whole life costings vs unit costings
Myth: A competitor’s product had limited carbon miles because their product was manufactured in Europe vs Far East.
Enhanced Reputation
Fact: ‘Carbon miles’ are insignificant in comparison to total associated emissions. Less than 2%.
The story of the Waterlogic machine is slightly different.
PHS up against competitors who were very vocal about the fact that their machines were manufactured in Europe as opposed to PHS’s which were made in the Far East… thus limiting the carbon miles of their product…
Not so much the case. Having gone through this exercise they were able to clearly demonstrate that actually the carbon impact of transport is tiny… less than 2% in some cases.
So again, they were able to re-focus and put their energy (so to speak!) into the importance of the in-use phase of their product… which has both a carbon impact but also a cost impact for the customer to run… feeds nicely into a new pricing model that looks at whole life costings as opposed to unit costings.

8. Carbon Trust Certification Grasping the opportunity to impact climate change
Carbon Trust modelling challenges the boundaries of assumptions
Measure and certify the environmental footprint of organisations, products and services
Equip yourself with the right information to tackle fundamental issues facing the Thames Estuary and your business
Why is this important? PHS aren’t a marine organisation and have very little to do with it… but the fundamental moral of the story is that unless you go through a modelling exercise like this people can make a lot of assumptions. By mapping out your carbon footprint (or your water footprint) you often find different conclusions and that is applicable to all organisations.
If you’re committed to sustainable growth equipping yourself with the right information means you are able to focus on tackling the fundamental issues facing your business and the Thames Estuary.
We know the Thames Estuary Partnership relies on the collaboration of a number of stakeholders but in order to have a real impact, as opposed to putting efforts into where you think you can or should have an impact it is a critical first step to identify your actual carbon intensive activities so you can appropriately and effectively address them.
Secondly, it is important to gain independent endorsement from a trusted third party, as the most credible way for organisations to communicate with their stakeholders, that they are actually doing what they say that they are doing… allowing you to have confidence in the data and in your own activities.
Hopefully we’ve demonstrated the support that the Carbon Trust can offer in doing that and inspired some thoughts on where you might begin.
Independent, third party verification of your operations

9. Carbon Trust Certification
Questions?
Looked at the major risks facing us today
How certifying the emissions associated with your product or service can bring alignment to a more sustainable practice
Finished with the opportunity to enhance your competitive advantage
Q’s.
Kirsty McKell Commercial Development Manager
Direct: