Carbon Neutral

2010The business of

carbon & climate

change

Presentation to the Rotary Club of

Perth28 January 2011

Chris Doherty

Business Development Manager

Carbon Neutral Ltd

Who is Carbon Neutral?

Mission: To reduce greenhouse gas emissions through education and

revegetation.

Not for profit

Established 2001

Award winning

Over 350 current

business clients

Working across Australia

Carbon offsets

Carbon/energy

consulting

Revegetation

Seminars,

workshops, surveys

Our clients

And hundreds more…

Green business?

What for?

The business case

"This is a time period where

environmental improvement is

going to lead toward

profitability. This is not a

hobby to make people feel

good"

“Decarbonising the economy is

one of the biggest global

business opportunities”

Jeffrey Immelt, Chairman and CEO,

GE

The business case

“Growth at any price is not

viable”

Unilever plans to halve the total

carbon, water and waste impact of its

products by 2020

Climate change, carbon,

greenhouse gas – what

does it all mean?

The science is established

Anderegg et al

Stanford University, USA

June 2010

97 - 98% of working

climate scientists accept the evidence

for human induced climate change

Sectoral emissions

What’s in store in Australia?

HOTTER

DRIER (intense rainfall)

HUMAN INDUCED

CLIMATE CHANGE IS REAL

State of the Climate Update

CSIRO & Bureau of Meteorology

2010

Australia’s response

International commitments & targets

Kyoto Protocol

• Ratified 2007

• 108% growth on 1990 baseline between 2008 – 2012

• On track

• Average of 583 Mt CO2-e per year

Copenhagen Accord

• Submitted target range 27 January 2010

• 5 – 25% below 2000 levels by 2020*

• Abatement challenge 138 – 249 Mt CO2-e

Long Term: 60% below 2000 level by 2050

Tracking national emissions

Department of Climate Change, 2009, Tracking to

Kyoto and 2020, August 2009: Australia’s

Greenhouse Emissions Trends 1990 to 2008-

12 and 2020, DCC, Canberra, ACT.

Domestic policy to reach those targets

NGER Act

EEO

NGER Act

NGERs Guidelines, DCC, 2008

Domestic policy to reach those targets

NGER Act

EEO

Carbon price:

ETS / carbon tax / hybrid scheme ?

ETS or carbon tax or...?

Domestic policy to reach those targets

NGER Act

EEO

ETS / carbon tax / hybrid scheme ?

Complementary measures

Carbon Farming Initiative

Complementary measures

Carbon Farming Initiative

New scheme to provide carbon credits from

forestry, agriculture and waste sectors

Reforestation / revegetation

Agricultural practices

Soil carbon

Livestock methane

Manure management

Fertilizer use

Etc

Landfill management

Voluntary market

International buyers

Permits under future ETS

What does

this mean

for

business?

Climate change , carbon and your business

Climate Change –RISK DRIVER

Physical risk

Litigation

Operational risk

Reputation

Licence to operate

Legislation

Low Carbon Economy

Legislation – cost of compliance

Price pressure

Contractual obligations

Investment – cost of capital

Stakeholder expectation

Opportunity

- Installations, assets, facilities

- Enforcing regulations, civil or class actions for public

damage caused by GHG emissions, shareholder resolutions

- High GHG industries facing restrictions, other impacts

affecting ability to operate

- Damage to reputation if not addressing climate change

- Impact from society

- Reporting, reducing, paying for emissions etc

Low carbon economy: impacts and opportunities

Low Carbon Economy

Increased energy prices

Further regulation

Contractual obligations

Supply chain pressures

Consumer demands

Opportunity

- 60% on 2009 levels by 2015 (WA)

- Carbon price, NGERs, future energy efficiency

requirements?

- Customers requiring carbon costs and obligations be

included in contracts

- Tenders or supply requirements regarding carbon and

sustainability of products, services

- Consumers looking for “greener” products and services

Opportunities

• 4.6 million eco-minded consumers

• Actively supporting products and

services of environmentally committed

companies

• Seeking products from those

demonstrating corporate responsibility

• Vast majority will avoid purchasing

from those who are not.

• How many EcoAussies are your

prospective customers in the next 12

months?

• Implications for marketers

GREEN MARKETING AND ‘ECO AUSSIES’

Most Important Social Issues in Australia

NIELSEN PANORAMA

May 2009

Be prepared

• Walmart – world’s biggest company

• Sustainable product index

• 100,000 suppliers must provide information on

• GHG emisisons

• materials

• water

• natural resources

• community

Where to from here...

...for your

business?

Why invest in sustainability?

A sustainable business can:

Improve operational efficiency

Reduce waste

Save you money

Attract and retain great staff

Open up opportunities for new business

Case studies

What we know

71% of businesses who developed a

greenhouse gas inventory identified

opportunities for cost savings

Accounting for the cost of carbon

Summary of findings of industry research conducted by the National Centre for

Sustainability (NCS) at Swinburne University of Technology from May to

December 2009.

Managing your carbon footprint

Assess MeasureSet

ObjectivesManage

• Requirements:

compliance or

voluntary?

• Relevance – who’s

the intended

audience?

• Build on previous

work

• Goals:

• energy efficiency

• Strategic

• Climate Change

• Skills assessment

• Energy?

• Carbon inventory

• Establish baseline

• Compare against

thresholds

• Scope 1

- Owned or controlled

vehicles / generators

- Natural gas / LPG

- Refrigerant leakage

- Landfills

- Industrial processes

• Scope 2

- Purchased

electricity

• Scope 3

- Business air travel

- Staff commuting

- Waste

- Consumables etc

• Reduction targets:

• Absolute or

Intensity

based

S - specific

M - measureable

A - agreed

R - realistic

T – time based

• Management system

that will help you

achieve your targets

• Integrate with EMS

• R&R’s

• Documentation

• Audit / Assurance

• Budget

• Corrective action

• Justifications

T - transparency

R - relevance

A - accuracy

C - completeness

C - consistency

Managing your carbon footprint

Reduce Offset Report• Energy audit

• Where are your emissions

coming from?

• Inform reduction plan

• Reduction plan

• Tailored

• Cultural fit of organisation

• Prioritised

• Marginal cost of abatement

• Specific to your company

• Hierarchy of control

• Eliminate

• Substitute

• Reduce

• Offset non-reducable

emissions

• Accredited

• Co benefits

• Tell the “story”

• Relevance – meet the needs

of the intended user

• Identify key stakeholders

• Internal / External

• Supply chain / contracts

• Is it a requirement?

(ISO/NCOS)

• Verification

• Get on the front foot

• Standardised reporting:

• Carbon Disclosure Project

(CDP)

• Global Reporting Initiative

(GRI)

Opportunities

Where are you?

Laggard

• Unaware of potential compliance requirements

• Unaware of risks or opportunities

• Unaware of impacts

• No GHG management plan

• No resources allocated

Complier

• Aware of compliance requirements

• Preparing to conform (only)

• Simple tools

• Lack of management plan• No desire to go beyond compliance or• GHG management not included in EMS

Leader

• Beyond compliance

• Comprehensive SWAT analysis

• Strong stakeholder engagement

• High level of integration

• Ambitious goals

• Consistent management & reporting

• Continual improvement

• Scope 3 focus and greening supply chains

Case studies – Sustainable Living Fabrics

• 10 staff

• Comprehensive carbon footprint

• Incentives to staff to travel more

sustainably

• Encouraged suppliers to go green

• Reduced 50% of emissions

• Offset

• Now recognised as a preferred

supplier by Dept of Defence, and won

a contract with Virgin Airlines due to its

greener practice.

''There is a commercial value,'‘

''Businesses are seeking out greener

products, and we have got 100 per cent

credibility because we have third-party

accreditation.''

HOW CAN CARBON

NEUTRAL HELP?

How Carbon Neutral can help

Overview of services Carbon Neutral can provide:

Carbon footprinting

Carbon / energy audit

Carbon reduction and management strategies

Life cycle assessment

Staff surveying

Staff and management workshops

Seminars

Offsets

Calculators

Revegetation projects

Case studies

"We have been very impressed with Carbon Neutral's

Four Step Carbon Reduction Programme, both in

terms of its value for money and its practical and

straightforward approach. We certainly encourage

other businesses to engage with this programme

and we look forward to taking the next steps as

guided by our Action Plan."

Damien Eves, Chief Executive Officer

ABN Group

Chris Doherty

Business Development Manager

w 1300 851 211

e chrisd@carbonneutral.com.au

Carbon Neutral Ltd

1300 851 211 | contact@carbonneutral.com.au

www.carbonneutral.com.au ABN: 99 124 696 966

Contact