Reducing greenhouse gas emissions in our supply chain. The importance of mitigation

Transcription

1 Reducing greenhouse gas emissions in our supply chain The importance of mitigation

2 2 Introduction from Martin Baggs, Chief Executive Officer We provide essential water and sewerage services to our customers and we aim to do it in the most sustainable way. To do this, we rely on goods and services provided by our contractors and suppliers. We are concerned about the impacts of climate change on the essential services we provide. Historically we have focused on reducing greenhouse gas emissions directly associated with treating and transporting water and wastewater. However, there are significant greenhouse gas emissions associated with the goods and services you provide to us. We want to work with our suppliers to reduce the greenhouse gas emissions associated with the goods and services we use. We want our supply chain to: Understand the potential impacts of weather and climate change on its business resilience and put in place plans to respond. Understand its carbon footprint and put in place plans which reduce the carbon intensity of the goods and services it provides. We have produced this booklet to help explain what the issues are and what they mean to Thames Water. This includes how you can reduce the greenhouse gas emissions associated with the important goods and services you provide and the benefits this would bring to your business. The booklet also poses some questions you may want to consider to assess risks and opportunities. Martin Baggs Chief Executive Officer, Thames Water

3 3 Key contacts External Affairs and Sustainability Dr Keith Colquhoun Climate Change and Sustainability Strategy Manager Energy and Carbon Team Elizabeth Whatley Energy Carbon Advisor Procurement Team Gareth Cale Procurement Support Manager Sustainability Team Pavan Badesha Sustainability Awareness Advisor Capital Delivery Marcus Dearlove Estimating System Manager We provide essential water and sewerage services to our customers. We need to plan for anything that can affect these services. Current extreme weather events and the impacts of climate change are two of those things.

4 4 What is climate change? Climate change means long term change in weather conditions. The Earth s climate has changed naturally in the past but most scientists now think that humans are also having an effect. Activities such as burning fossil fuels and deforestation release carbon dioxide (CO 2 ). CO 2 (and some other gases) forms a layer in the atmosphere that traps energy. This causes the Earth to warm up, leading to long term changes in weather conditions. Why is Thames Water concerned? We are concerned about the impacts of climate change on the essential services we provide. We are reducing the greenhouse gases we emit directly through our operations. We want to encourage our suppliers to reduce the greenhouse gas emissions associated with the goods and services they provide to us. What is mitigation? We believe that a twin track approach of managing the unavoidable impacts of climate change on our business ( adaptation ), combined with a reduction in our greenhouse gas emissions ( mitigation ), is essential if we are to overcome the challenges climate change represents. Mitigation refers to action which reduces the amount of greenhouse gases produced by human activities. Before taking mitigation action, it is important to understand where emissions come from. A carbon footprint is a measure of the amount of CO 2 emitted by a defined product, process, population or organisation. Carbon intensity refers to the amount of CO 2 associated with a unit of producing something. For example, the carbon intensity of electricity generated from burning fossil fuels is expressed as the grams of CO 2 emitted per unit of energy produced. Mitigation aims to reduce the carbon footprint or carbon intensity of products, services, processes or organisations. Carbon dioxide (CO 2 ), water vapour, methane, nitrous oxide, ozone and halocarbons are greenhouse gases. CO 2 is not the most potent greenhouse gas in terms of the amount of warming it causes but it is the most significant in terms of volume released.

5 5 What is Thames Water doing to mitigate the effects of climate change? We have set ourselves a voluntary target of emitting 20% less greenhouse gas in 2015 than we did in The choices we make about energy are guided by a hierarchy of actions. We only use energy from fossil fuels if there is no suitable alternative. We generate some of our own electricity renewably from sewage and solar panels. This means that we need to buy less electricity made from fossil fuels. In 2011, 14% of the electricity we used to pump and treat water and sewage was self-generated renewable electricity. Our energy efficiency programme focuses on lighting management and pumping efficiency. By upgrading our pumping stations, we saved 889 MWh of electricity, equivalent to 483 tonnes of CO 2 in 2009/10. To date, we have reduced emissions by 16%, even though we now serve the equivalent of three million more customers than in 1990 and have to meet higher water and sewage treatment standards. This is equivalent to the emissions of nearly 80,000 homes. Why do we want you to consider mitigation? We have focused on reducing emissions directly associated with treating and transporting water and waste water. However, we believe that we can help reduce emissions further by working with our suppliers to reduce the greenhouse gas emissions associated with the goods and services we use. We want to become water sector leaders on environmental protection and sustainability. Working with you, our suppliers, to reduce the carbon intensity of the service we provide is an essential part of our journey towards becoming sustainability leaders. We would like you to understand the greenhouse gas emissions associated with the goods and services you provide and to consider how emissions could be reduced. Where you are are able to reduce your greenhouse emissions there are likely to be direct benefits to you. For example, reduced energy costs, reduced materials consumption and compliance with legislation and regulation.

6 6 What are the benefits of considering mitigation? We believe that taking mitigation action will help unlock tangible benefits for you. Cost saving Taking mitigation action could reduce energy costs, raw materials and waste disposal. Switching energy sources, generating renewable electricity and changing raw materials can reduce greenhouse gas emissions and save money. We would also encourage you to identify potential emissions and cost savings by looking at your own supply chains and thinking about where greenhouse gases are emitted throughout the lifecycle of the goods and services you use. Compliance Taking mitigation action will also help you comply with existing and forthcoming legislation, e.g. Carbon Reduction Commitment Energy Efficiency Scheme and Mandatory Carbon Reporting, and may help give you a competitive advantage. Sustainability Mitigation action is also likely to improve your sustainability and could have benefits in terms of customer reputation. Key questions you should think about 1. What are the sources of greenhouse gas emissions associated with the goods and services you provide? 2. How might changing carbon costs, legislation, emissions targets or broader sustainability concerns affect your business? 3. How do/would you measure your greenhouse gas emissions? Which emissions do/would you include and how do/would you measure them? When might greenhouse gas emission measurements be available? 4. How did/would you go about setting a target for reducing greenhouse gas emissions associated with the goods and services you provide? 5. How did/would you develop a plan to improve the efficiency of the goods and services you provide? What actions could you take to improve efficiency? 6. Are there any opportunities to improve efficiency throughout your own supply chain? 7. How do/would you measure and report your mitigation progress? Do you understand why your emissions are changing over time? The global automotive industry was affected by flooding in Thailand in Thai factories supply factories around the world with components. Disruption to the supply chain led to a reduction in output around the globe. In North America, Toyota cut output because they ran out of key Thai-made components.

7 7 What practical things can you do to reduce your emissions? Once you understand where your emissions come from, you will be in a position to identify actions to reduce them. Developing a climate change mitigation plan involves the following steps: 1. Decide the scope of your plan start simple: concentrate on reducing emissions which you have control over, i.e. emissions from sources you own and emissions associated with the electricity you use. 2. Identify the steps involved in producing your product or service. 3. Identify which activities release greenhouse gases at each step in the supply chain. 4. Quantify greenhouse gas emissions associated with these activities. Use emissions factors to turn data on energy use into greenhouse gas emissions. Set an emissions reduction target. 5. Identify and implement mitigation actions. Mitigation actions include: reducing the amount of energy you use; switching to lower carbon energy sources; choosing materials with lower embodied energy; reducing transport miles; and reducing waste. 6. Monitor mitigation progress and report your progress.

8 8 Where can you get help? There are a range of options for businesses wanting help to measure their emissions and put in place actions to mitigate them. Simple, high level tools and advice can be obtained for free while those wishing to understand their emissions in more detail may choose to pay for more detailed analyses and technical advice. Some links are provided below but for more sources of information see the full document which accompanies this leaflet. Business Link Carbon Trust WRAP Department for Environment Food and Rural Affairs Department for Energy and Climate Change Carbon Disclosure Project Mayday Network