Carbon Footprint Study
Content
Elevate Constructing the Future
Carbon Footprint Study
February 2008
Elevate Constructing the Future Carbon Footprint Study Objectives
To review existing methods and tools for calculating a carbon footprint for business use To develop a simple method for calculating the carbon footprint of a small or micro business in the construction industry To provide a tool or workbook for those businesses to complete and calculate their carbon footprint
Scope of the study
The scope of this study is to provide a tool for individual small or micro businesses to calculate their own carbon footprint and is not intended to calculate the carbon footprint of a whole construction project. To do this the scope would need to be significantly extended and the inclusion of many other factors such as raw material selection, embodied carbon dioxide, waste disposal and the longevity of the construction would need to be considered. The performance of the final construction in regards to its carbon footprint during occupation has not been included in this study.
Aim of the study
The aim of the study is to provide Elevate with an overview of the carbon footprint methodology, the calculators available and their applicability to businesses in the construction industry. The aim of the workbook is to provide small and micro businesses in the construction industry with a simple method of calculating their own carbon footprint with a view to setting targets for reduction, reporting their performance and adopting continuous improvement principles.
Introduction
It is widely accepted that the greenhouse gas emissions caused by human activity are having a negative impact on the environment and contributing to climate change. Carbon dioxide is the most important greenhouse gas arising from human activity and accounts for nearly 80% of the UK greenhouse gas emissions. Carbon dioxide is just one of the six main greenhouse gases limited by the Kyoto protocol. The effect that each of these greenhouse gases has on the climate varies significantly as each gas has a different global warming potential. For simplicity of reporting, the mass of each gas emitted is commonly translated into a carbon dioxide equivalent so that the total impact can be summed to one figure and expressed as a carbon footprint. The total set of greenhouse gas emissions caused directly and indirectly by an individual, organisation, event or product is called the carbon footprint.
Carbon Footprint and the Construction Industry
The UK construction industry is vast; its output is worth £100bn a year; it accounts for 8% of GDP; and employs 2.1 million people. However, buildings are also responsible for almost half of UK carbon emissions, half of water consumption, about one third of landfill waste and 13% of all raw materials used in the UK economy. The UK government has made a commitment to reduce carbon dioxide (CO2) emissions by at least 60% on 1990 levels by 2050 and by at least 26% by 2020. Within this, Government has already set out its policy that new homes will be zero carbon from 2016, and an ambition that new schools, public sector non-domestic buildings and other non-domestic buildings will be zero carbon from 2016, 2018 and 2019 respectively. In support of these targets the Code for Sustainable Homes was introduced and all new homes have to have a mandatory rating. The Code measures the sustainability of a new home against nine categories of sustainable design, rating the 'whole home' as a complete package. The Code sets minimum standards for energy and water use at each level and, within England, replaces the EcoHomes scheme, developed by the Building Research Establishment (BRE). To help the UK achieve these challenging commitments The Climate Change Bill was introduced into Parliament on 14 November 2007 and became law on 26th November 2008. Whilst is it not completely understood what the impact on UK industry will be it is inevitable that there will be some reporting and fiscal implications that will trickle down to small and micro businesses. These are some of the external pressures on businesses to measure their carbon dioxide emissions and have been briefly discussed to put this report in context of the bigger picture. From an internal perspective and in accordance with the scope of this study, carbon footprint calculation is necessary for construction businesses as a simple and complete measure of their impact on the environment and a method for identifying ways to reduce costs.
Review of existing Carbon Footprint Calculators
Overview of calculators
Any search on the internet for carbon footprint calculators will return thousands of results. Typically the calculators available fall into one of three categories: Carbon Offsetting o Business o Domestic/Individual Environmental charity supported Government supported o Domestic/Individual o Business
Carbon Offsetting
For the purpose of this study it was necessary to filter out all carbon offsetting calculators as their main purpose is to sell carbon offsets not to give an accurate carbon footprint for performance monitoring. Their methods and conversion factors
are not transparent, and the actual carbon footprint varies dramatically between each provider when inputting exactly the same data. Carbon offsetting calculators include: www.carbonfootprint.com www.jpmorganclimatecare.com www.puretrust.org.uk
Environmental charity supported
Again, these carbon calculators have been dismissed as the method and conversion factors are not transparent and their focus is on a household or individual. Charity calculators include: www.plant-a-tree-today.org http://footprint.wwf.org.uk/home
Government supported
The main domestic online calculator is Act on CO2 available through the Direct Gov facility. This is an easy to use calculator but not applicable to business activities. http://actonco2.direct.gov.uk/index.html The search facility Google has developed an online carbon footprint calculator that is supported by Defra and the Energy Savings Trust. The calculator is based on the Act on CO2 calculator detailed above and is aimed at calculating an individual’s carbon footprint in a domestic setting. Once an individual has completed the data section a list of pledged actions is produced and the individual can place a maker on the map of the UK confirming their commitment to reducing their carbon footprint. The markers are colour coded depending on the individual’s carbon footprint, green for low, orange for average and red for high. This is unique to the Google carbon footprint facility and allows anybody to view a map of the UK with everyone’s individual colour coded marker and pledges. This is an easy to use calculator and very pictorial but it is not applicable to business activities. In addition there are web links to other service providers such as carbon offsetting facilities, gadgets, top tips for reduction and an online discussion forum. www.google.co.uk/carbonfootprint/ Specifically designed for business users, the Carbon Trust online carbon footprint calculator is easy to use once the input data has been collected. Each page prompts the user on the details required and the final report is clear. The business can update the calculation as and when the data becomes available. www.carbontrust.co.uk The Carbon Trust is a private company set up by the UK Government and is a leading authority on UK carbon management for business. The Environment Agency has developed a carbon footprint calculator which allows them to measure the carbon dioxide generated by their own construction projects, which account for three per cent of the civil engineering sector. From November 2007 the Environment Agency requires all of their builder contractors to complete the tool to allow the Agency to have a better understanding of the impact their construction activity has on the UK carbon dioxide emissions for the purpose of reducing those emissions. The calculator can be accessed online be using the weblink below but the calculator is an excel based document.
http://www.environment-agency.gov.uk/business/sectors/37543.aspx This calculator allows carbon dioxide reductions to be built in at the planning and design stage as there are conversion factors for a range of building materials. The information on this spreadsheet is excellent and any business that wanted to calculate their carbon footprint and include raw material production could use this calculator.
Conclusion
If an online tool is required to calculate a construction business carbon footprint then the Carbon Trust calculator is the most up-to-date, accurate and easy to follow. For businesses that want to include the carbon emissions associated with their raw materials the Environment Agency calculator has that facility and conversion factors but the excel spreadsheet could appear overwhelming.
Methodology
For a carbon footprint to be accurate there must be a consistent approach and a repeatable method. One commonly used methodology is the Greenhouse Gas Protocol (GHG) produced by the World Resources Institute which clearly states how to allocate emissions based on level of control. It defines the direct emissions which have to be included and the indirect emissions which are optional. The British Standard ISO 14064 is also compatible with GHG Protocol and the Carbon Trust and Environment Agency have used this methodology for their calculators and guidance material. The Greenhouse Gas Protocol groups emission sources according to the level of control a business has over them:
Scope 1 – Direct carbon dioxide emissions that result from the activities that the business controls.
Direct emissions resulting from the combustion of fuels on the business premises, or from the combustion of fuels controlled by the business. Including: Natural gas Heating Cooking Diesel and Petrol Generators Tools FLTs Mini-diggers Fuel oil Heating Company owned or leased vehicles Travel for business activities Collection of materials in company vehicles
Scope 2 – Emissions from the use of electricity
This only includes electricity on the premises owned or fully controlled by the business. Including: Office and workshop lighting Office equipment
Workshop equipment This does not include the electricity used on client’s premises or on a building site that is not owned by the business.
Scope 3 – Indirect carbon dioxide emissions that result from the activities that the business performs but does NOT have full control over.
Scope 3 emissions are a consequence of the activities of the business, but occur from sources not owned or controlled by that business. Some general examples include production of purchased raw materials, outsourced activities, employee travel to work and waste disposal. The degree of control can become a little blurred in the way in which the construction industry works. It is not unusual for a principle contractor to assign a large building company to complete the whole project; this building company may then assign a joinery company to complete the joinery work. The joinery company could then sub-contract to self employed joiners to complete the work. In this instance the question of control over activities and the availability of data can become difficult. In respect to the construction industry the emissions in scope 3 arise from the delivery of raw materials to site, sub-contracting to another business, use of electricity on a client’s premises, sub-contracted transportation and hire equipment. In all of these examples a business can influence the emission but cannot fully control it or easily access the required data. Interestingly the use of a product can also be considered a scope 3 emission. For example, once an occupier moves into a house they are using energy and have their own carbon footprint. This could be included in a construction business’s carbon footprint as a scope 3 emission. Obviously this would only happen if the construction business thought their product (e.g. a house) was going to be energy efficient or that they could influence the householder on their efficient occupation of the house. This is way beyond the scope of this study but worth highlighting. When deciding if a scope 3 emission is to be included in a carbon footprint the business must assess the materiality of the activity and associated impact. If a scope 3 activity significantly contributes to emission release relative to the other activities carried out by that business they should be included in the carbon footprint calculation. For example, if a self employed plumber wanted to calculate their carbon footprint, scope 1 and 2 would be very small, if any at all. As the majority of energy used would be on their client’s premises it would be classed as a scope 3 activity and could be excluded from the calculation. But as this is the main use by the plumber and the most significant impact it should be considered and a method for accurate and consistent data collection implemented. To summarise, although it may be difficult to decide which scope 3 emissions should be included, the first thing to determine is which are relevant to the business. They may be relevant for several reasons: The emissions are large relative to the businesses scope 1 and 2 emissions. They are deemed critical by key stakeholders such as customers, suppliers and local residents There are potential emissions reductions that can be made
Since scope 3 activities are optional it becomes difficult to compare individual businesses on a like for like basis. If the calculation of a carbon footprint was to be included in a contractor evaluation or tendering process for the purpose of comparing each businesses performance and to contribute to a selection decision it would be advisable for the commissioner to state which scope 3 emissions had to be included. The Greenhouse Gas Protocol accounts for all six of the main greenhouse gases but for this workbook only carbon dioxide is included. This is because carbon dioxide is the main greenhouse gas and the others arise for specific activities that are not as relevant to a small construction business for which the workbook is aimed. The activities that would emit greenhouse gases, such as landfill of waste producing methane, are relevant to a construction business but would be classed as a scope 3 emission. A businesses carbon footprint will fluctuate depending on the level of activity throughout the year. To level this out it is common to calculate a carbon footprint with a full years worth of data and to compare it year on year. This does not however take into consideration business growth or decline. Obviously if a business becomes more successful and expands it is likely that its carbon footprint will also grow. To combat this it is possible to divide the carbon footprint by productivity. For example in a manufacturing business you would divide the total annual carbon footprint by the number of units manufactured. Irrespective of production levels the carbon footprint can be compared year on year and any increases or decreases should more accurately reflect the businesses efficiency. Due to the nature of small business activity in the construction industry this approach is not applicable due to the fact that there is generally no repeatable unit of production. During the sector consultation this was considered and other methods of dividing the carbon footprint were discussed. It was evident that it would be difficult to devise a simple method based on number of employees, contract valuation or total man hours per year as the data was not recorded. Therefore in the workbook it requests that the business includes the annual turnover next to the carbon footprint figure to reflect productivity.
Other methods The British Standards Institute, in association with Defra and the Carbon Trust, has just launched PAS 2050 Specification for the assessment of the life cycle greenhouse gas emissions of goods and services. This standard is specifically aimed at calculating a carbon footprint for an actual product or service rather than a business. The level of detail is intense and the amount of data needed for the calculation is beyond a simple exercise. For businesses that have grasped the method explained in this workbook and want to progress to the next level of detail the PAS 2050 would be appropriate. If Elevate want to ultimately calculate the carbon footprint of a project or single construction then this standard would be applicable as it considers all inputs up and down the supply chain.
Conversion Factors
Defra produce the UK conversion factors for converting the input measure of energy into the amount of carbon dioxide emissions that will result. These figures are used in the Carbon Trust and the Environment Agency calculators and are used in the
workbook. The full conversion tables and guidance notes are available on the Defra website: http://www.defra.gov.uk/environment/business/envrp/pdf/ghg-cf-guidelinesannexes2008.pdf http://www.defra.gov.uk/environment/business/envrp/pdf/ghg-cf-guidelines2008.pdf
Sector Consultation
The purpose of the sector consultation was to establish what activities specific to the construction industry release greenhouse gas emissions. For the purpose of the methodology and content of the workbook it was necessary to understand what data is already collected, how it is recorded, the level of accuracy and if it is feasible to collect additional data. Although only three construction businesses were visited their response was nearly identical with regards to data collection. They all agreed that records could be kept for their emissions in relation to scope 1 and scope 2 activities, and in some instances this data was readily available. Records were not available for scope 3 activities, in particular: Transportation of materials Electricity use on clients premises Fuel use in hired equipment Sub-contractors fuel use Sub-contractors transportation Heating on the clients premises The response to how feasible it would be to collect this data was resoundingly negative. It was seen as onerous and respondents quite correctly pointed out, in most cases, that they could not reduce it because they did not have full control. The most important message to come out of the consultation was that whatever the tool was it had to be quick and simple to complete. This re-confirms the need to separate scope 1, 2 and 3 emissions and only make scope 1 and 2 mandatory. The other significant point was that none of the businesses would complete the carbon footprint calculation if they could not easily identify a cost benefit or have the potential to win a contract. The medium for the tool or workbook was discussed and three options were presented, paper workbook, CD ROM or online tool. The response was ‘whichever would be the easiest to complete’ as the three interviewees all had access to a computer and the internet.
Conclusion
The workbook has been reduced to its simplest form and information that is not needed for the calculation has not been included. Therefore the level of detail is less than in this report. However there is a compromise between simplicity and accuracy and therefore there may still be more detail in the workbook that is necessary. This can be removed but it must be understood that the accuracy will be affected.
The decision to produce a paper version of the workbook was reached because it would be accessible to all, including the micro businesses that do not have access to a computer or the internet. This paper format could easily be transferred onto a CD ROM and the calculation formulas could be embedded in the tables to automatically complete the sums. An on-line tool such as the Carbon Trust carbon footprint calculator is already available to those businesses that prefer an internet based approach and the methodology is the same as adopted in the workbook. The workbook is based on The Greenhouse Gas Protocol classification definitions for scope 1, 2 and 3 type emissions and the conversion factors used are those published by Defra. To keep the process applicable and simple only carbon dioxide and not the other five main greenhouse gases are included. For the purpose of the workbook and in respect of those businesses who do wish to be more extensive in their calculation there are suggested methods of data collection and templates of record sheets included in the workbook for the following scope 3 activities: Transportation of materials Employee business travel in their own vehicles Electricity use on clients premises These three activities have also been included because it was felt that they are material to the type of activities completed at a small construction business and could have a relatively significant impact. To keep the format of the workbook simple the methods for calculating the emissions from these activities have been included in Appendix I of the workbook. If all of this information was included in the main text of the workbook it could be overwhelming.
Reference List
John Barrett & Thomas Wiedmann: A comparative carbon footprint analysis of onsite construction and off-site manufactured houses November 2007 Steve Wrigley: Online carbon calculators – unsuitable for SMEs? The Environmentalist May 2008 Pages 16 – 18 Global Reporting Initiative: Sustainability reporting guidelines Version 3.0 BREEAM: Code for sustainable homes BERR: Stategy for sustainable construction June 2008 The Carbon Trust: Carbon Footprint An introduction for organisations August 2007 The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard March 2004 Draft strategy for sustainable construction – consultation paper Chartered Institute of Building BSI: Guide to PAS How to assess the carbon footprint of goods and service October 2008 BSI: PAS 2050:2008 Specification for the assessment of the life cycle greenhouse gas emissions of good and services BS ISO 14064-2:2006 Greenhouse gases. Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emissions reductions or removal enhancements The Carbon Trust: Energy and carbon conversions 2008 update Factsheet CTL018
Acknowledgements
Mr Jason Powell WN Powell & Sons Ltd Mr Richard Garth-Jones Ensign Energy Mr Jan Chamberlain Chamberlain & Flood
Contact details: Martin Brown Head of CTF 01254 304571 [email protected] Donna Marshall CTF No Limits Project Manager 01254 304570 [email protected]
Carbon Footprint Study
February 2008
Elevate Constructing the Future Carbon Footprint Study Objectives
To review existing methods and tools for calculating a carbon footprint for business use To develop a simple method for calculating the carbon footprint of a small or micro business in the construction industry To provide a tool or workbook for those businesses to complete and calculate their carbon footprint
Scope of the study
The scope of this study is to provide a tool for individual small or micro businesses to calculate their own carbon footprint and is not intended to calculate the carbon footprint of a whole construction project. To do this the scope would need to be significantly extended and the inclusion of many other factors such as raw material selection, embodied carbon dioxide, waste disposal and the longevity of the construction would need to be considered. The performance of the final construction in regards to its carbon footprint during occupation has not been included in this study.
Aim of the study
The aim of the study is to provide Elevate with an overview of the carbon footprint methodology, the calculators available and their applicability to businesses in the construction industry. The aim of the workbook is to provide small and micro businesses in the construction industry with a simple method of calculating their own carbon footprint with a view to setting targets for reduction, reporting their performance and adopting continuous improvement principles.
Introduction
It is widely accepted that the greenhouse gas emissions caused by human activity are having a negative impact on the environment and contributing to climate change. Carbon dioxide is the most important greenhouse gas arising from human activity and accounts for nearly 80% of the UK greenhouse gas emissions. Carbon dioxide is just one of the six main greenhouse gases limited by the Kyoto protocol. The effect that each of these greenhouse gases has on the climate varies significantly as each gas has a different global warming potential. For simplicity of reporting, the mass of each gas emitted is commonly translated into a carbon dioxide equivalent so that the total impact can be summed to one figure and expressed as a carbon footprint. The total set of greenhouse gas emissions caused directly and indirectly by an individual, organisation, event or product is called the carbon footprint.
Carbon Footprint and the Construction Industry
The UK construction industry is vast; its output is worth £100bn a year; it accounts for 8% of GDP; and employs 2.1 million people. However, buildings are also responsible for almost half of UK carbon emissions, half of water consumption, about one third of landfill waste and 13% of all raw materials used in the UK economy. The UK government has made a commitment to reduce carbon dioxide (CO2) emissions by at least 60% on 1990 levels by 2050 and by at least 26% by 2020. Within this, Government has already set out its policy that new homes will be zero carbon from 2016, and an ambition that new schools, public sector non-domestic buildings and other non-domestic buildings will be zero carbon from 2016, 2018 and 2019 respectively. In support of these targets the Code for Sustainable Homes was introduced and all new homes have to have a mandatory rating. The Code measures the sustainability of a new home against nine categories of sustainable design, rating the 'whole home' as a complete package. The Code sets minimum standards for energy and water use at each level and, within England, replaces the EcoHomes scheme, developed by the Building Research Establishment (BRE). To help the UK achieve these challenging commitments The Climate Change Bill was introduced into Parliament on 14 November 2007 and became law on 26th November 2008. Whilst is it not completely understood what the impact on UK industry will be it is inevitable that there will be some reporting and fiscal implications that will trickle down to small and micro businesses. These are some of the external pressures on businesses to measure their carbon dioxide emissions and have been briefly discussed to put this report in context of the bigger picture. From an internal perspective and in accordance with the scope of this study, carbon footprint calculation is necessary for construction businesses as a simple and complete measure of their impact on the environment and a method for identifying ways to reduce costs.
Review of existing Carbon Footprint Calculators
Overview of calculators
Any search on the internet for carbon footprint calculators will return thousands of results. Typically the calculators available fall into one of three categories: Carbon Offsetting o Business o Domestic/Individual Environmental charity supported Government supported o Domestic/Individual o Business
Carbon Offsetting
For the purpose of this study it was necessary to filter out all carbon offsetting calculators as their main purpose is to sell carbon offsets not to give an accurate carbon footprint for performance monitoring. Their methods and conversion factors
are not transparent, and the actual carbon footprint varies dramatically between each provider when inputting exactly the same data. Carbon offsetting calculators include: www.carbonfootprint.com www.jpmorganclimatecare.com www.puretrust.org.uk
Environmental charity supported
Again, these carbon calculators have been dismissed as the method and conversion factors are not transparent and their focus is on a household or individual. Charity calculators include: www.plant-a-tree-today.org http://footprint.wwf.org.uk/home
Government supported
The main domestic online calculator is Act on CO2 available through the Direct Gov facility. This is an easy to use calculator but not applicable to business activities. http://actonco2.direct.gov.uk/index.html The search facility Google has developed an online carbon footprint calculator that is supported by Defra and the Energy Savings Trust. The calculator is based on the Act on CO2 calculator detailed above and is aimed at calculating an individual’s carbon footprint in a domestic setting. Once an individual has completed the data section a list of pledged actions is produced and the individual can place a maker on the map of the UK confirming their commitment to reducing their carbon footprint. The markers are colour coded depending on the individual’s carbon footprint, green for low, orange for average and red for high. This is unique to the Google carbon footprint facility and allows anybody to view a map of the UK with everyone’s individual colour coded marker and pledges. This is an easy to use calculator and very pictorial but it is not applicable to business activities. In addition there are web links to other service providers such as carbon offsetting facilities, gadgets, top tips for reduction and an online discussion forum. www.google.co.uk/carbonfootprint/ Specifically designed for business users, the Carbon Trust online carbon footprint calculator is easy to use once the input data has been collected. Each page prompts the user on the details required and the final report is clear. The business can update the calculation as and when the data becomes available. www.carbontrust.co.uk The Carbon Trust is a private company set up by the UK Government and is a leading authority on UK carbon management for business. The Environment Agency has developed a carbon footprint calculator which allows them to measure the carbon dioxide generated by their own construction projects, which account for three per cent of the civil engineering sector. From November 2007 the Environment Agency requires all of their builder contractors to complete the tool to allow the Agency to have a better understanding of the impact their construction activity has on the UK carbon dioxide emissions for the purpose of reducing those emissions. The calculator can be accessed online be using the weblink below but the calculator is an excel based document.
http://www.environment-agency.gov.uk/business/sectors/37543.aspx This calculator allows carbon dioxide reductions to be built in at the planning and design stage as there are conversion factors for a range of building materials. The information on this spreadsheet is excellent and any business that wanted to calculate their carbon footprint and include raw material production could use this calculator.
Conclusion
If an online tool is required to calculate a construction business carbon footprint then the Carbon Trust calculator is the most up-to-date, accurate and easy to follow. For businesses that want to include the carbon emissions associated with their raw materials the Environment Agency calculator has that facility and conversion factors but the excel spreadsheet could appear overwhelming.
Methodology
For a carbon footprint to be accurate there must be a consistent approach and a repeatable method. One commonly used methodology is the Greenhouse Gas Protocol (GHG) produced by the World Resources Institute which clearly states how to allocate emissions based on level of control. It defines the direct emissions which have to be included and the indirect emissions which are optional. The British Standard ISO 14064 is also compatible with GHG Protocol and the Carbon Trust and Environment Agency have used this methodology for their calculators and guidance material. The Greenhouse Gas Protocol groups emission sources according to the level of control a business has over them:
Scope 1 – Direct carbon dioxide emissions that result from the activities that the business controls.
Direct emissions resulting from the combustion of fuels on the business premises, or from the combustion of fuels controlled by the business. Including: Natural gas Heating Cooking Diesel and Petrol Generators Tools FLTs Mini-diggers Fuel oil Heating Company owned or leased vehicles Travel for business activities Collection of materials in company vehicles
Scope 2 – Emissions from the use of electricity
This only includes electricity on the premises owned or fully controlled by the business. Including: Office and workshop lighting Office equipment
Workshop equipment This does not include the electricity used on client’s premises or on a building site that is not owned by the business.
Scope 3 – Indirect carbon dioxide emissions that result from the activities that the business performs but does NOT have full control over.
Scope 3 emissions are a consequence of the activities of the business, but occur from sources not owned or controlled by that business. Some general examples include production of purchased raw materials, outsourced activities, employee travel to work and waste disposal. The degree of control can become a little blurred in the way in which the construction industry works. It is not unusual for a principle contractor to assign a large building company to complete the whole project; this building company may then assign a joinery company to complete the joinery work. The joinery company could then sub-contract to self employed joiners to complete the work. In this instance the question of control over activities and the availability of data can become difficult. In respect to the construction industry the emissions in scope 3 arise from the delivery of raw materials to site, sub-contracting to another business, use of electricity on a client’s premises, sub-contracted transportation and hire equipment. In all of these examples a business can influence the emission but cannot fully control it or easily access the required data. Interestingly the use of a product can also be considered a scope 3 emission. For example, once an occupier moves into a house they are using energy and have their own carbon footprint. This could be included in a construction business’s carbon footprint as a scope 3 emission. Obviously this would only happen if the construction business thought their product (e.g. a house) was going to be energy efficient or that they could influence the householder on their efficient occupation of the house. This is way beyond the scope of this study but worth highlighting. When deciding if a scope 3 emission is to be included in a carbon footprint the business must assess the materiality of the activity and associated impact. If a scope 3 activity significantly contributes to emission release relative to the other activities carried out by that business they should be included in the carbon footprint calculation. For example, if a self employed plumber wanted to calculate their carbon footprint, scope 1 and 2 would be very small, if any at all. As the majority of energy used would be on their client’s premises it would be classed as a scope 3 activity and could be excluded from the calculation. But as this is the main use by the plumber and the most significant impact it should be considered and a method for accurate and consistent data collection implemented. To summarise, although it may be difficult to decide which scope 3 emissions should be included, the first thing to determine is which are relevant to the business. They may be relevant for several reasons: The emissions are large relative to the businesses scope 1 and 2 emissions. They are deemed critical by key stakeholders such as customers, suppliers and local residents There are potential emissions reductions that can be made
Since scope 3 activities are optional it becomes difficult to compare individual businesses on a like for like basis. If the calculation of a carbon footprint was to be included in a contractor evaluation or tendering process for the purpose of comparing each businesses performance and to contribute to a selection decision it would be advisable for the commissioner to state which scope 3 emissions had to be included. The Greenhouse Gas Protocol accounts for all six of the main greenhouse gases but for this workbook only carbon dioxide is included. This is because carbon dioxide is the main greenhouse gas and the others arise for specific activities that are not as relevant to a small construction business for which the workbook is aimed. The activities that would emit greenhouse gases, such as landfill of waste producing methane, are relevant to a construction business but would be classed as a scope 3 emission. A businesses carbon footprint will fluctuate depending on the level of activity throughout the year. To level this out it is common to calculate a carbon footprint with a full years worth of data and to compare it year on year. This does not however take into consideration business growth or decline. Obviously if a business becomes more successful and expands it is likely that its carbon footprint will also grow. To combat this it is possible to divide the carbon footprint by productivity. For example in a manufacturing business you would divide the total annual carbon footprint by the number of units manufactured. Irrespective of production levels the carbon footprint can be compared year on year and any increases or decreases should more accurately reflect the businesses efficiency. Due to the nature of small business activity in the construction industry this approach is not applicable due to the fact that there is generally no repeatable unit of production. During the sector consultation this was considered and other methods of dividing the carbon footprint were discussed. It was evident that it would be difficult to devise a simple method based on number of employees, contract valuation or total man hours per year as the data was not recorded. Therefore in the workbook it requests that the business includes the annual turnover next to the carbon footprint figure to reflect productivity.
Other methods The British Standards Institute, in association with Defra and the Carbon Trust, has just launched PAS 2050 Specification for the assessment of the life cycle greenhouse gas emissions of goods and services. This standard is specifically aimed at calculating a carbon footprint for an actual product or service rather than a business. The level of detail is intense and the amount of data needed for the calculation is beyond a simple exercise. For businesses that have grasped the method explained in this workbook and want to progress to the next level of detail the PAS 2050 would be appropriate. If Elevate want to ultimately calculate the carbon footprint of a project or single construction then this standard would be applicable as it considers all inputs up and down the supply chain.
Conversion Factors
Defra produce the UK conversion factors for converting the input measure of energy into the amount of carbon dioxide emissions that will result. These figures are used in the Carbon Trust and the Environment Agency calculators and are used in the
workbook. The full conversion tables and guidance notes are available on the Defra website: http://www.defra.gov.uk/environment/business/envrp/pdf/ghg-cf-guidelinesannexes2008.pdf http://www.defra.gov.uk/environment/business/envrp/pdf/ghg-cf-guidelines2008.pdf
Sector Consultation
The purpose of the sector consultation was to establish what activities specific to the construction industry release greenhouse gas emissions. For the purpose of the methodology and content of the workbook it was necessary to understand what data is already collected, how it is recorded, the level of accuracy and if it is feasible to collect additional data. Although only three construction businesses were visited their response was nearly identical with regards to data collection. They all agreed that records could be kept for their emissions in relation to scope 1 and scope 2 activities, and in some instances this data was readily available. Records were not available for scope 3 activities, in particular: Transportation of materials Electricity use on clients premises Fuel use in hired equipment Sub-contractors fuel use Sub-contractors transportation Heating on the clients premises The response to how feasible it would be to collect this data was resoundingly negative. It was seen as onerous and respondents quite correctly pointed out, in most cases, that they could not reduce it because they did not have full control. The most important message to come out of the consultation was that whatever the tool was it had to be quick and simple to complete. This re-confirms the need to separate scope 1, 2 and 3 emissions and only make scope 1 and 2 mandatory. The other significant point was that none of the businesses would complete the carbon footprint calculation if they could not easily identify a cost benefit or have the potential to win a contract. The medium for the tool or workbook was discussed and three options were presented, paper workbook, CD ROM or online tool. The response was ‘whichever would be the easiest to complete’ as the three interviewees all had access to a computer and the internet.
Conclusion
The workbook has been reduced to its simplest form and information that is not needed for the calculation has not been included. Therefore the level of detail is less than in this report. However there is a compromise between simplicity and accuracy and therefore there may still be more detail in the workbook that is necessary. This can be removed but it must be understood that the accuracy will be affected.
The decision to produce a paper version of the workbook was reached because it would be accessible to all, including the micro businesses that do not have access to a computer or the internet. This paper format could easily be transferred onto a CD ROM and the calculation formulas could be embedded in the tables to automatically complete the sums. An on-line tool such as the Carbon Trust carbon footprint calculator is already available to those businesses that prefer an internet based approach and the methodology is the same as adopted in the workbook. The workbook is based on The Greenhouse Gas Protocol classification definitions for scope 1, 2 and 3 type emissions and the conversion factors used are those published by Defra. To keep the process applicable and simple only carbon dioxide and not the other five main greenhouse gases are included. For the purpose of the workbook and in respect of those businesses who do wish to be more extensive in their calculation there are suggested methods of data collection and templates of record sheets included in the workbook for the following scope 3 activities: Transportation of materials Employee business travel in their own vehicles Electricity use on clients premises These three activities have also been included because it was felt that they are material to the type of activities completed at a small construction business and could have a relatively significant impact. To keep the format of the workbook simple the methods for calculating the emissions from these activities have been included in Appendix I of the workbook. If all of this information was included in the main text of the workbook it could be overwhelming.
Reference List
John Barrett & Thomas Wiedmann: A comparative carbon footprint analysis of onsite construction and off-site manufactured houses November 2007 Steve Wrigley: Online carbon calculators – unsuitable for SMEs? The Environmentalist May 2008 Pages 16 – 18 Global Reporting Initiative: Sustainability reporting guidelines Version 3.0 BREEAM: Code for sustainable homes BERR: Stategy for sustainable construction June 2008 The Carbon Trust: Carbon Footprint An introduction for organisations August 2007 The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard March 2004 Draft strategy for sustainable construction – consultation paper Chartered Institute of Building BSI: Guide to PAS How to assess the carbon footprint of goods and service October 2008 BSI: PAS 2050:2008 Specification for the assessment of the life cycle greenhouse gas emissions of good and services BS ISO 14064-2:2006 Greenhouse gases. Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emissions reductions or removal enhancements The Carbon Trust: Energy and carbon conversions 2008 update Factsheet CTL018
Acknowledgements
Mr Jason Powell WN Powell & Sons Ltd Mr Richard Garth-Jones Ensign Energy Mr Jan Chamberlain Chamberlain & Flood
Contact details: Martin Brown Head of CTF 01254 304571 [email protected] Donna Marshall CTF No Limits Project Manager 01254 304570 [email protected]
