"We are on the historic threshold of the irreversible. Faced with this emergency, the time for half measures is finished. It is time for a revolution. An industrial revolution, that of sustainable development, lies before us."
Jacques Chirac, previous President of France
Global Knife
Over the last few years we have been hopping from one global urgency to another. Ten years of relatively good trading and economic conditions have seen businesses boom, economies thrive, and banks being very generous with loans and interest charges. But, then came the turmoil.
Carbon Footprinting Your enterprise - Why Do It?
All of a sudden it was declared that the World was teetering on a knife's edge and that company was in part responsible for it. Within twenty years, a global temperature rise would see the ice caps melt and a rise in sea water levels by several metres that would submerge London, unless the Thames wall was replaced with a more capable structure. Varied islands would disappear including the Maldives, and continents would lose land mass that would cause mass citizen migration, with devastating impacts on food and natural resources. Global economies would strain and local economies would sense significant down trends and turmoil. In the Uk, the economy and citizen would be hit by adverse weather conditions, a seasonal shift to warmer winters and wetter summers and inflationary pressures on food contribute and natural resources. If that wasn't bad enough, the then stable power store began to sway with surges in oil prices, economic catastrophe, and political instability in the eastern bloc regions would see the Russians keeping neighbouring countries to ransom and hiking the prices of wholesale piped fuels and gas into Europe. In effect, Europe was succumbing to the whims of Russian power conglomerates, even Bp, a big player in Russia was struggling with the politics.
Then the reputation crunch. The demise of Lehman Brothers, the near demise of Aig, the cashless acquisition of Merrill Lynch by Bank of America and the takeover of the giant Hbos by Lloyds Tsb. So, not only are our banks at risk of disappearing, but our fuel supplies, food supplies, and to top it all, the World in which we live is at risk of changing beyond our imagination.
Now, I know you are probably feeling a petite depressed after reading this, but here's the positive news. All those negative factors are interlinked, and interlinked in such a way that, as company leaders we can use those global events to streamline our businesses, make them more effective and put in order them for the positive upturn, but by the same token, we will also have met our environmental obligations and we will genuinely have adapted to atmosphere changes and pressures on natural power resource supplies.
Carbon Foot Printing
The global economy grew as a effect of the industrial revolution because of the use of power resources such as coal. However, owing to their sheer nature of the hazardous affect of burning coal, alternative fuel sources were sought, including gas, nuclear and other renewables. The impact of burning fossil fuels is not new, but the remarkable impact of the effects of burning these fuels didn't genuinely covering until the 1980's. Even in the Thatcher years, the message to everybody was reduce your fossil fuel dependence, cut pollution and save the planet. Maybe the coal mines were genuinely terminated because of atmosphere change.
The qoute is that now a global banking urgency is in full swing and with oscillating oil prices, governments are now seeing back to coal as a dependable source of energy. We have seen the affects of ultimate weather on oil prices and the impact of global politics on power sourcing, so something has to be done and for most of us it is about reducing our dependence on energy, particularly coal, and of course, reducing costs.
So where does your company fit in this environmental and economic puzzle? Well, genuinely power bills are an issue and new environmental legislation will also require yielding such as the Carbon allowance Committment due to take effect in 2010. Comprehension your business' carbon footprint, the emissions generated from the use of fuel, trip and transport, as well as secondary emissions - emissions generated straight through the procurement of goods and services, becomes vital. Measuring carbon is no longer about reducing emissions and salvage the planet, it is about managing cost and reducing waste.
In working with clients we have seen reductions in power usage by as much as 15% in the first year and allowance in air trip by 20% in under six months. This is in expanding to improvements in the control of waste, water, consumption and other power sources. More significantly, clients have changed their reporting processes not just on emissions but on spend, keeping a tighter control on non-essential purchases and reasoning more about the sustainability impacts from new purchases.
As a company you will need to consider two other leading requirements; the first is the measurement of nitric oxide and methane, primarily from manufacturing and waste; and the second is the Carbon allowance Committment which affects businesses that consume 6,000 megawatt-hours (Mwh) of electricity in the middle of 1st April 2009 and 31st March 2010 and if your company including subsidiaries spends more than £500,000 per year on electricity it is likely to be included in the scheme. Both of these, if appropriate, will need to be written into your environmental administration programme.
The Carbon allowance Committment comes into full effect in April 2010 and will be a compulsory scheme for large users of energy. It will set caps on emissions with penalties for those that exceed those caps with the quality for organisations to buy or sell allowances on the secondary store or straight through the Eu emissions trading scheme.
The benefits of Carbon Foot Printing
Once an first footprint estimate has been completed and audited, the company will be in a best position to be able to normally article on greenhouse gas (Ghg) emissions performance. If the company is growing quickly, then reporting emissions reductions per head will show that the company has got to grips with Ghgs and is successfully measuring the impact of growth.
A carbon footprint estimate also makes it very easy to set emission and cost allowance targets. If done properly the numbers will jump out at you and any lay man will be able to see where the impacts and risks lie. Measuring your own company action is just one step in the right direction as more and more organisations are beginning to part the environmental activities and credentials.
"53% of associates are more likely to purchase from a company with a good environmental reputation" Source: Ipsos Mori (Oct 2007)
Probably the biggest benefit of carbon foot printing is the cost savings which are achieved straight through best administration of resources and the implementation of good practice. It is not uncommon for associates to save as much as 30% on power spend in under two years and in some cases, as much as 70% in five years by implementing low power programmes, upgrading of lighting, boilers and controls and the use of renewables and green power supply.
"The adoption of key re-engineering efforts can effect in reduced power consumption, significant efficiency benefits and lower overheads."
Source: Butler Group/Datamonitor (Sept 07)
One of the most contentious benefits has been the use of good Pr. Too many organisations have used the 'intent to implement' as a piece of positive news, otherwise described as 'Green Wash', but we are all wise to that now even though it still goes on, particularly in the sell sector and sell power sector.
"85% of It professionals believe environmental factors are leading in planning It operations, yet just a quarter have written green criteria into their company's purchasing processes."
There are some exquisite case studies where good implementation has resulted in some genuine results. Organisations such as Marks and Spencer have made huge leaps; Morrisons recently achieved the Carbon Trust proper for demonstrating actual reductions in carbon; and even the division for Environment, Food and Rural Affairs (Defra). It has to be said though that if you can accurately show that you have reduced emissions, reduced costs and mitigated other greenhouse gas emissions then you will win reputation and probably more customers.
Good results can all the time enhance your company reputation with existing customers and prospects but also with shareholders and the risk adverse among your team. To what extent you need to enhance your company credentials to stay ahead is not clear. We have seen a surge in the requirement for Iso14001 accreditation as part of a tender response, and you would be amazed by the whole of household brands that do not even have an environmental policy, let alone a formal Iso accreditation. One of the first things we do for new clients is ensure that a course is in place and is a true representation of the organisation's aspirations and quality to meet those aspirations.
One of the biggest and most enthusiastic groups of benefactors are the employees. To date, all associates we have worked with have had full support from employees and in most cases staff members are keen to volunteer for responsible roles in helping the company accomplish its objectives. Bear in mind, that most citizen will have done something at home and those with children will know that younger generations seem to know much more than we do about the risks of doing nothing.
Some other benefits comprise the quality to attract ethical investors as well as high calibre ethically and morally driven candidates. Fund managers are particularly curious in the environmental doing of listed associates and have scored thousands of associates already in Varied indexes accessible by the financial services markets. Finally, carbon foot printing encourages businesses to characterize their yielding to legislation and be able to put in order for hereafter legislation such as the Carbon allowance Committment.
"The global warming skeptics are going the way of the dodo bird - to extinction. The evidence is in. We're certainly living in a warming world and headed into unknown, hazardous territory. The hereafter of our civilisation is at stake! It's time for each and every one of us to convert wasteful habits and cut back on our power consumption. A good start would be losing the Suv. Real men and women drive hybrids or take the bus. Let's all think more and use less - of everything. Remember, warming is global, but solutions are local and - lowest line - individual."
Bill Patzeri, scientist at Nasa's Jet Propulsion Labratory
Your company and Your Suppliers
By measuring your own emissions you will be taking the first step to reducing your company impact on the environment and to reducing costs within your organisation. By working with your suppliers and supporting your suppliers to do the same, you will be creating maximum benefit for all within the contribute chain. You will, in effect reduce the cost of the contribute of goods and services to your company and reduce and administrate the environmental impacts created by trade and logistical operations, Maybe even negotiating with your suppliers for more favourable reductions and incentives to reflect the reduced costs and streamlined operations.
Moral Obligations
There is Maybe one driving factor that is leading and it is that making the changes and implementing an effective environmental administration programme is essential, it is the safety and administration of natural resources for hereafter generations. In our case, hereafter generations that are already at school age and will be relying on our good judgement and good convention to contribute a sustainable and environmentally beneficial and salutary world.
Carbon Footprinting Your enterprise - Why Do It?
