Low Carbon Board Report

January 2008 



Climate change is one of the greatest social, economic and political issues of our time. Thousands of companies, aware of the affect they are having on the environment, are acting on their responsibilities to customers, stakeholders, staff and wider society, by seeking to reduce their carbon emissions.

The Low Carbon Board Report provides a monthly analysis on key issues facing directors as they adapt their companies for the emerging low carbon economy.

In this issue:

Why Is Low Carbon An Issue For The Boardroom?
The Climate Change Bill: Transforming The Business Landscape
Low Carbon Leader: The Champion In The Boardroom
The Hunt For Carbon: Links In The Chain
Interview with Simon Pearson, Head of Internal Environmental Management at the Environment Agency
Sharing best practice on reducing carbon emissions
Low Carbon Training Seminars


Why Is Low Carbon An Issue For The Boardroom?

The arrival of triple bottom line accounting as a standard for organisations committed to long-term sustainability will bring profound changes to the way businesses are led. In the past it was enough for a business to produce a set of accounts for its shareholders that showed the level of profit or loss that the business had made with a general comment about business performance and future outlook.

But the spread of triple bottom line thinking in wider society means this approach no longer satisfies all those who have an interest in the business. These include stakeholders and community as well as shareholders and staff.

All those with an interest in a business or organisation have a legitimate concern to ask questions about the way in which that business or organisation goes about its activity. They want to know how the business acts on a social level: the impact of its conduct on staff, stakeholders, clients, customers and community; and on an environmental level: how it uses resources, how it sources those resources and the energy it consumes to create its goods and services using those resources.

The changing climate of wealth creation

"Put simply, the proposition is that a business or organisation should be carbon-neutral or carbon-negative to win consumers' loyalty."

Most recently, public concern about climate change has pushed the environmental aspect of business and organisational behaviour higher up the agenda than anyone might have predicted even two or three years ago. As we begin to understand that climate change is real and taking place at a rate unprecedented in human history, so we worry about how climate change will affect our future.

As we understand that significant quantities of greenhouse gases are produced by our use of fossil fuels to drive the wealth creation that underpins the global economy, so we feel entitled to ask, as never before, if a business or organisation is harnessing energy wisely for the future or squandering it recklessly for today.

The basic problem facing us all is that climate change is a very long-term problem and the only plausible way to avoid catastrophic impacts on our way of life in the future is to reduce output of carbon dioxide and other greenhouse gases right now.

Mass thinking and reputation management

The idea that the wellbeing of our future depends on the planet's ecosystems is new in terms of mass thinking. But it is precisely this idea that gives individuals their claim to a moral right to ask questions about how businesses and organisations are using energy to produce the goods and services that they as individuals wish to consume. And it is this basic shift in the way people now see energy, rather than any specific new law or regulation, that will transform the way businesses and organisations make decisions about the way that they chose to do what they do.

The most pressing concern emerging for the majority of consumers - a term that in its widest sense includes staff, stakeholders, clients, customers and community - is to see evidence that a business or organisation is actively reducing its production of carbon dioxide and other greenhouse gases. Reducing consumption of fossil-fuel energy is the most transparent and compelling way to prove this.

So the first demand for any business or organisation seeking sustainable competitive advantage in any market place is to show that it has taken every conceivable measure to cut down its need for fossil fuel. This is beginning to hold as true for sole traders as for global giants. And the activity of organisations like the Carbon Trust are beginning to develop a set of energy consumption and carbon dioxide/greenhouse gas production metrics that allow sole traders and global giants to compare their approaches on an equivalent if not yet exactly like for like basis.

Put simply, the proposition is that a business or organisation should be carbon-neutral or carbon-negative to win consumers' loyalty. A carbon neutral business or organisation is one that is not adding to the climate change problem of the future. A carbon negative business or organisation is one that is actively helping to solve climate change for the future by reducing the proportion of carbon dioxide and other greenhouse gases in the atmosphere right now.

Early action and long-term collaboration

As few businesses or organisations are able to be carbon negative in the short term, carbon offsetting is likely to become prevalent. We should be in no doubt that this is only a makeshift response: consumers will judge those who turn to carbon offsetting but fail to tackle fossil fuel reduction almost as harshly as those who fail to do anything in either sphere at all.

All of which now puts carbon reduction right at the heart of protecting the reputation of a business. Being able to proclaim - and prove - carbon-neutral or carbon-negative status is going to be as crucial to securing a stake in the future as basic profitability. Consumers may forgive some ambiguity in the metrics now used by businesses and organisations to justify the energy consumption decisions they make, but this forgiveness is likely to be very short-lived. All of which means that debate around energy metrics and carbon production and offsetting is going to be heated and highly contested in the years to come. But we should be in no doubt: even if politicians, accountants and experts are divided as to which are most accurate, cost-effective or convenient, consumers will expect to see fit-for-purpose carbon-metrics in triple bottom line accounts.

It is likely that developing such fit-for-purpose metrics will require collaborative research from businesses and organisations in both the public and private sector. Those firms and organisations that work hardest now to be able to rigorously substantiate their carbon-neutral or carbon-negative status are likely to be the most profitable winners in the very near future.

Richard Kemp is Director of Executive Programmes at Henley Management College. His new leadership programmes Leading for Sustainability and Our World Working consider the interplay of sustainability and wealth creation.

 


Free-to-join best practice Network

The Low Carbon Innovation Network brings together over five thousand executives involved in reducing carbon emissions for their organisations, to share best practice and innovation in the drive to tackle climate change.

All members of the Network receive a weekly Bulletin and can interact with one another on an online forum to discuss the challenges, share experience and capture best practice.

Getting together and sharing best practice makes sense in all walks of life, but never more so than when it comes to reducing carbon emissions. So please do encourage all those involved in reducing carbon emissions within your company to enrol on this free-to-join best practice Network to share their experience, for the benefit of all.



The Climate Change Bill: Transforming The Business Landscape

Pressure from public opinion will be a significant force pushing businesses towards lower carbon emissions, but it won't be the only one. New legislation will also shape the way companies are run for many years to come.

A central item of interest is the Climate Change Bill (CCB), which is due to become law in 2008. The CCB lays a general foundation for further legislation, but is also expected to include specific requirements such as an emissions trading scheme for larger businesses, notably the Carbon Reduction Commitment (CRC) which will probably start in or around January 2010.

The legal foundations of a low-carbon economy

The CCB paves the way for trading schemes to be applied across a very broad range of economic activities. These may include any activity which involves the consumption of energy, the use or disposal of materials which consumed energy during production, and the production or supply of anything which subsequently causes or contributes to greenhouse gases by its use, says Michael Woods, a partner at Stephenson Harwood, and also co-chair of Climate Change Working Party of the UK Environmental Law Association.

"In practice, this will allow the Government to target almost all businesses in the UK, who could potentially become subject to mandatory trading schemes similar to the CRC or the EU Emissions Trading Scheme as part of the Government's legally binding target to reduce carbon emissions by 60 per cent from a 1990 baseline by 2050," he says.

The CRC will be a mandatory emissions trading scheme, designed to help large commercial and public sector organisations make carbon savings of 1.1 million tonnes per year by 2020. The scheme will apply to organisations that have annual electricity consumption in excess of 6,000 megawatt-hours, which at current market prices would affect organisations with annual electricity bills over £500,000. It is expected to cover around 5,000 organisations.

These are likely to include large offices, hotel chains, supermarkets, large retail organisations, hospitals, banks, transport operators, mobile phone mast operators, central government and large local authorities, which collectively account for approximately 10 per cent of the UK's carbon emissions," says Woods. "The final identification of CRC participants is expected in early 2009 based on mandatory half-hourly metered electricity consumption of businesses during 2008," he says.

Meeting the Carbon Reduction Commitment

It will be an auction-based "cap and trade" scheme whereby participants will be required to purchase and surrender allowances corresponding to their annual energy use converted into an equivalent number of tonnes of carbon dioxide emitted.

"There will be an uncapped three year introductory phase - commencing in January 2010 - which will have a fixed price for allowances; and is designed to develop familiarity with how the scheme operates, analyse each sector's emissions profile and address glitches; followed by an undetermined number of capped five-year phases. Phase One is proposed to commence in January 2013, which will align with Phase 3 of the EU Emissions Trading Scheme," explains Woods.

Participants will be able to comply with the CRC by reducing their own energy use, or by purchasing sufficient allowances. "If participants do not reduce their emissions they will be required to trade in the market for allowances each year within a tightening emissions cap and likely increased prices for allowances," says Woods. "So it will make business sense to try and reduce emissions if that can be done more cost effectively than buying allowances - it's a question of economic margins for each business," he says.

"In practice, this will allow the Government to target almost all businesses in the UK, who could potentially become subject to mandatory trading schemes"

CRC allowances are expected to be issued in a Government auction every January, at a fixed price during the introductory phase. The availability of spare allowances for purchase will be dependent on some companies reducing emissions below the required level, and being willing to trade those spare allowances in the "secondary" market rather than "banking" them for future use themselves. Banking will not be permitted in the introductory period, says Woods. It will also be possible to purchase - but not sell - emission allowances from the EU Emission Trading Scheme, he says.

Overall, the scheme will raise no extra cash for the Exchequer, with auction revenue recycled to participants in proportion to the average annual emissions, with a bonus or penalty payment depending on an organisation's position in a CRC league table.

The importance of self-motivation Unlike the EU trading scheme, the CRC makes no requirement for independent third-party verification and so participants will self-certify their emissions. However, this will be supported by an independent audit target of 20 per cent of organisations each year, probably to be carried out by the Environment Agency. "Each emissions year will be followed by a reconciliation period of three months during which organisations can collate their emissions data, buy or sell allowances on the secondary market, report their figures to the administrator and surrender emission allowances," says Woods.

The annual reporting obligations are expected to be web-based and will require submission of information such as the annual consumption and types of energy used, as well as information from automatically read metres. Penalties for non-compliance - such as submitting false data, or missing the deadline of 31 March - will result in a penalty of up to £70 per tonne of carbon dioxide. An organisation will also be required to pay the CRC administrator for failure to surrender sufficient allowances for the years in which it should have participated in the CRC.

Trading in allowances may well be open to a wide variety of players, not just organisations covered by the CRC. "Once purchased in the initial auction sale, participants will be able to trade on the secondary CRC market - directly with other companies - should they wish to buy or sell allowances. Non-participants such as brokers, traders and individuals will be allowed to trade in the secondary market," says Woods.

"The trick for businesses will be to "predict and provide" on introducing cleaner measures in order to save costs further down the line, because even if certain businesses are not targeted immediately, they are likely to be in future years," he says.


Low Carbon Training Seminar:
Quick Wins on Energy Efficiency & Carbon Management

With high-energy costs and looming climate change problems, the need to review energy efficiency and minimise carbon emissions has never been greater. This one-day seminar cuts through the complexities to provide a ten-point plan for minimising both carbon emissions and energy costs.

• No-cost ways to boost the bottom line by reducing wasted energy
• Investing in energy efficiency - how to maximise the payback
• Examples of projects that have yielded good energy savings
• Demystifying the carbon agenda
• Calculating your carbon emissions
• How to reduce carbon emissions … whilst improving efficiency and profits
• Learn from hard-won experience from those at the forefront of carbon reduction
• Energy White Paper - the likely impacts of new legislation on your business
• Empowering staff and creating a culture that embraces environmental issues
• Gaining board-level support for environmental initiatives

Click to see when and where this seminar is next being staged

 

 

 

 

 

 

 

 

 

 


 

 

 



Low Carbon Leader: The Champion In The Boardroom

Global warming is a global problem, and tackling it effectively requires all parts of society to play a part, including the business community. We need our business leaders to take an active role, not just because their own organisations emit greenhouse gases, but also because individual companies have a significant influence over a range of external bodies: suppliers, customers, partners, and governments.

Because of this active support from directors is essential, yet boardroom involvement was highlighted as an issue in need of improvement in a recent report by the Carbon Disclosure Project (CDP), which examined UK FTSE 350 companies. "There remains room for improvement in quantitative and qualitative disclosures on the business risks and opportunities presented by climate change, particularly given requirements for directors to consider and disclose material environmental risks under stricter EU reporting standards, as well as increased board-level accountability regarding the environmental impacts of operations," CDP concluded.

A new champion for a new cause

Some companies, recognising the urgent need for action, have appointed a "champion" at board level to lead the way and others are considering doing so. How well such a role fits in with the existing responsibilities of directors, whether a new position needs to be created, or whether such a director should be formally identified as a "champion" will need careful consideration.

The answers will depend largely on the culture and complexity of the individual company, but the arguments in favour of giving at least one director responsibility for carbon reduction are clear. It identifies a single person within a company as having the power to co-ordinate changes across bureaucratic boundaries, suggests Bruce Stanford, BT's Environment Champion. "The challenge of climate change emerges everywhere in a company. A champion must direct their attention and support across the business to ensure that all have the climate change agenda," he says.

Whether known as the "low carbon", "climate change", or "environment" champion, the key aim is to make a difference to the way the company conducts its business, he emphasises. "The reality is to focus on those things that are going to make an impact, within operational divisions and across them. Think about BT's retail business - selling phones and services - and the possibilities for reducing energy consumption: billing, recycling, the buildings we operate," says Stanford. "Then there are opportunities for improvements in energy purchase, which ranges across operational divisions," he says.

Providing focus for employees

The champion doesn't just take an overall view of carbon reduction in the company, Stanford says. He or she is also a recognised figure of authority for staff - many of whom will feel strongly motivated - to approach for advice and guidance. "There is a genuine thirst for knowledge. Champions can be created at all levels of the business - there can be 'carbon busters' among middle managers, for example. Having a champion at director level gives them somewhere to go," says Stanford.

"The challenge of climate change emerges everywhere in a company. A champion must direct their attention and support across the business to ensure that all have the climate change agenda"

In a company the size of BT, the need to give a focus to carbon reduction efforts is very important, he says. "I can't see how it would be better to have say, 15 people with narrow roles instead," he says. "Some parts of the business will do better than others, and the championship role enables us to make sure that we really drive the agenda where necessary," he says. More formally, the champion is also responsible for advising board members on whether the company should implement recognised standards and ensure progress against these is included in annual reports.

The champion will also provide focus for fellow directors, says Stanford. Like the head of Corporate Social Responsibility, the climate change champion will take a leading role in building the values and culture in an organisation, he says. Last but not least, the board-level champion will have access to the company's finance director, which has clear advantages, he says. "If you can make the investment case you can get everyone's attention faster, says Stanford.

Counting the cost of carbon

The business case for reducing carbon emissions is compelling, says Dr Martin Blake, Head of Sustainability at Royal Mail Group. "Carbon costs money. Why pay for carbon several times over?" Blake argues that companies failing to reduce emissions will incur the cost of the energy consumed, plus either a levy or tax if they exceed quotas, or the cost of offsetting this excess. On top of these costs a company will also run the risk of damaging its reputation, he says.

Whether or not he or she is identified as a "champion" is less important than that someone at board level is tasked with leading the carbon reduction effort, suggests Blake. And while some companies have appointed an external adviser to take this role - because of their specialist knowledge or experience - Blake is keen to emphasise the importance of integrating carbon reduction into day-to-day activities. "It needs to be embedded into 'business as usual', made part of the DNA of a company," he says.

As well as defining its internal workings, the "DNA" of a company also shapes interactions with external bodies, another key reason why it's essential for someone at board level to take responsibility for carbon reduction. Effective action requires someone who can reach inside and outside the company, suggests Blake. "Part of their responsibility should be to provide lines of communication into the boardroom. They will have an external horizon too, engaging with peers and competitors," he says.

Obstacles must be overcome

All companies experience difficulties driving through changes, and carbon reduction is unlikely to be different, says Blake. "The paradigm organisation has its own defence mechanisms," he says. Some form of resistance may well be encountered inside as well as outside boardrooms, he suggests. "For example, in many businesses, the energy budget is managed centrally, with the result that electricity is thought of as free issue. A possible response is to devolve responsibility for energy budgets down to site level. But that will mean wrestling the budget away from its existing holder," he says.

So what can fellow directors do to help the low carbon champion? "Assist in the removal of impediments," he suggests.



Low Carbon Training Seminar:
Best Practice for Environmental Champions

Many organisations make internal appointments for climate change champions to drive forward the green agenda and initiate carbon reduction projects. This one-day seminar gives practical advice and support for all those faced with this exciting, but somewhat daunting task!

• Demystifying the carbon agenda
• Overcome the key barriers to minimising carbon emissions
• Simple ways to improve energy efficiency and reduce your energy costs
• Staff involvement - ten ways to engage others to take action on climate change
• Good practice examples on overcoming challenges to implementation
• Hands-on experience of building the business case and advocating real change
• Practical ways to shift attitudes - and head towards a low carbon corporate culture
• Case studies on successfully implemented carbon reduction projects
• Overview of upcoming legislation and the likely new regulatory environment
• Developing a climate change strategy

Click to see when and where this seminar is next being staged



The Hunt For Carbon: Links In The Chain

In December 2007, we received a useful reminder that complacency about carbon reduction must be avoided. The publication of a research paper called 'Too Good To Be True: The UK's Climate Change Record', presented compelling evidence that our progress with reducing greenhouse gas emissions was a good deal worse than many supposed.

The research, overseen by Dieter Helm, a Professor of New College, Oxford University, and Chairman of the Academic Panel, Department of Environment, Food and Rural Affairs, showed how estimates of emissions within UK borders give only a partial view of the UK's contribution to global greenhouse gases.

"To understand the UK's true impact, the greenhouse gas accounts should be reported on a 'consumption basis'. On this basis, all greenhouse gases embodied in UK consumption are counted, and by adding greenhouse gases embedded in imports and subtracting greenhouse gases embedded in exports, the crude calculations presented here suggest that UK emissions have been rising steeply. Between 1990 and 2003 the crude calculation indicates a rise of 19%," it concludes. Putting it simply, previous estimates had neglected the supply chains of UK plc.

A supply chain for every product and service

In a valuable guide to these issues 'Carbon Footprints In The Supply Chain: The Next Step For Business', the Carbon Trust points out that supply chain emissions are a key part of calculating the true cost of economic activities. "At the economy-wide level, it is possible to take every emissions source and allocate it to the supply chain of a different product or service. The end result is to show that all the emissions generated in an economy exist to deliver products and services to meet the needs of the end consumer," says the Carbon Trust.

There are obvious business benefits to be had from improved knowledge of supply chains. In the longer run it will help companies to make better informed decisions in product development, manufacturing, purchasing, and distribution if they know the costs and liabilities that exist whenever carbon emissions are generated.

Supply chains are often complex, crossing national boundaries, and with many different owners en route. Such complexity can make the task of carbon reduction seem daunting, but useful guidance is available from the Carbon Trust. Broadly the process falls into several key stages: the scope of the exercise needs to agreed with key participants; data collected for each part of the chain; opportunities for reduction prioritised; and an action plan drawn up.

Lighter footprints can mean lower costs

In the near term, companies are well-advised to start work on supply chain analysis because they face increases in direct energy costs and the energy costs of suppliers. The

benefits of doing so have been demonstrated by the snack producer Walkers, and its parent company Pepsico. Working in partnership with the Carbon Trust, the companies identified potential savings of up to 9,200 tonnes carbon dioxide and £1.2 million per annum.

Walkers' supply chain analysis revealed costs that might otherwise have remained hidden. Its suppliers typically store potatoes in an environment where temperature and humidity are controlled to prevent them drying out, so losing weight and thus value. But keeping humidity high costs energy, and although a high water content is good for supplier revenues, it is bad for potato crisps and so Walkers incurred energy costs in removing it. The company says it is now working with suppliers to iron out such anomalies.

Expect the unexpected

The source of energy, as distinct from its use, may also have a significant impact on supply chain emissions, as has been illustrated by a project run by newspaper publisher Trinity Mirror, also in partnership with the Carbon Trust. The publisher found that emissions from its own operations are hugely outweighed by those of its supply chain, which contributes around 80% of the total footprint.

"Companies are well-advised to start work on supply chain analysis because they face increases in direct energy costs and the energy costs of suppliers"

Paper manufacturing is the most energy intensive part, accounting for more than 70% of the total energy use. Trinity Mirror's environmental policies mean that it purchases 100% recycled paper from manufacturers in the UK, and on the face of it this appears the cleanest option, because the paper is recycled, the manufacturing plants are well run and efficient and based in the UK.

However, Trinity Mirror discovered that using 100% recycled paper from the UK produced 174g of carbon dioxide per newspaper, compared with Swedish 50% recycled paper, which produced just 95g. Why the difference? The answer is to be found in the different energy sources of grid electricity in the two countries: the UK grid relies heavily on coal and gas, while Sweden's supply comes mainly from hydro-electric and nuclear power.

A positive approach to problems

But reducing energy costs aren't the only benefits. In future, we face legislation which penalises high energy consumption and rewards emissions reductions, plus changing consumer attitudes to climate change.

In practice, some companies are likely to run into difficulties, some of which were identified by the Carbon Disclosure Project as part of its 2007 report on UK FTSE 350 companies. Some companies expressed concern that squeezing emissions from supply chains would be more a cost than a benefit. Some retailers expressed doubts about the strength of public concern about climate change, or suggested a lack of consensus about how to proceed among those citizens who are concerned.

Participants are also understandably territorial about their part of the supply chain. Previously, they may never have been asked for the data needed to build the footprint and may be cautious about the impact on their own business of giving up such information. Effective communication is essential to overcome this: they need to clearly understand what data is needed and why, and how it will be handled. "You need to take a positive approach to supporting your supply chain," suggests Mike Barry, Sustainable Development Manager at Marks & Spencer. "An open collaborative approach is probably best, possibly by setting up a portal where suppliers can access support and guidance, and exchange information," he says.

"It's important not to be overly prescriptive. Let those guys at the coalface do what they have to. Instead of being too prescriptive consider an enabling role, rewarding good performers," he suggests.




Low Carbon Training Seminar:
Green & Lean Supply Chain Management

The leanest supply chain is often the greenest supply chain, so there's a real win:win opportunity. This one-day seminar provides information and advice for all those involved in supply chain management on the quest to reduce carbon emissions and enhance operational efficiencies.

• Demystifying the carbon agenda
• Identifying the carbon 'hotspots' in your supply chain and realising the quick wins
• Sourcing goods/services from suppliers with good carbon management practices
• Working collaboratively to minimise the carbon footprint along the supply chain
• Reviewing the environmental impacts of the distribution process
• Tracking carbon emissions across the supply chain
• Ideas on making re-cyling and re-usage a key process within the supply chain
• Benchmarking your performance
• Opportunities to localise your supply chain?
• Horizon Scanning ~ technologies that could transform supply chain efficiency

Click to see when and where this seminar is next being staged



 

Interview with a Low Carbon Leader

Simon Pearson is Head of Internal Environmental Management at the Environment Agency, driving forward a strategy to improve the Agency's own environmental performance. After working at Alcan Smelting and Power carrying out biological sampling for fluorides, air quality and EMS auditing, Simon started work with the Environment Agency in 1998. He worked in a regional post as an environmental footprint advisor to senior management. He also worked as EMS project manager, helping the Agency achieve ISO 14001 certification at four sites.

What are the most important lessons you have learned so far in implementing carbon reduction measures?

"Firstly, have a good understanding of the organisation's carbon footprint. Without this it is likely that you will put a lot of effort in the wrong place. Carbon reduction measure will more readily be accepted if it also delivers financial savings so focus on the quick efficiency wins first. After this, move to technology and take into account whole life carbon cost. Running alongside all of this, needs to be a staff behavioural change to ensure progress doesn't slip back once you focus on another initiative."

How do you plan to achieve reduction of carbon emissions by 30% by 2012?

"The Environment Agency's CO2 footprint is 64,000 tonnes. Our target is to reduce this by 30% by 2012 through efficiency and the use of technology. We won't participate in carbon offsetting until then. Instead of investing in carbon offsets we have established a fund to allow us to finance carbon reduction projects.

"We aim to improve the environmental performance of our office space, where average desk use is less than 50% because a lot of staff are working in the field. We do not just want to move into new, purpose built green buildings. We want to demonstrate what can be done with existing buildings. Also, our IT department is currently producing an action plan which should result in significant energy and financial savings.

"To reduce the impact of our travel we use a 'travel hierarchy.' When travel is essential, our preferred option is train travel. We have a policy that we won't fly on any journey that can be done by train in five hours or less. We are willing to pay extra to keep our impact down. When we do drive we prefer this to be done in lease cars because these have the lowest emissions. At the operational end, the fundamental issue is to use the right vehicle for the right job. Emissions range from a light van at 172 g/km to a heavy 4x4 at 295 g/km. As part of a trial, 90 of our badged fleet are running on 22% biodiesel.

"Pumping water is the single largest contribution to our carbon footprint and the hardest to manage - it is largely in the lap of the gods as to when and where we have to pump to avoid flooding or to provide drinking water. We are assessing how efficient our pumps are to direct improvements in the future. We are working with the Carbon Trust's Partnership for Renewables, who lease public sector land to install large wind turbines."

What are the key ingredients for success of a low carbon initiative that could be applied to any sector?

"You need full commitment from the top of any organisation to get an initiative delivered. I think it's important to start by improving efficiency and the elimination of wasted energy. This will provide a financial as well as a carbon saving. After this get some good advice, be bold and take on initiatives that will deliver the greatest carbon savings. Do something that will deliver real reductions and not just provide short-term headlines."

What are the biggest challenges you face in your role and how do you deal with them?

"The Environment Agency is a large and diverse organisation with growing duties. My challenge is to keep our carbon performance alive within these competing demands. I make our environmental performance part of how we work and how we are. If it is seen as a 'bolt-on' it will never get to the top of the priority list. This means when we select new vehicles, we have a CO2 emission limit for cars; and when we refurbish a building we have set standards.

"To win the hearts and minds of all our staff to do the right thing environmentally [is challenging]. To help instil the right behaviours requires real leadership from the top.

"The final challenge is trying to understand the full life carbon cost and saving from any initiative. It is often hard to identify and quantify the embedded carbon impact which can mean that a decision is based on the carbon impact in use, which may be misleading."

Are current UK Government climate change targets realistic?

"I think targets are realistic, but I think the UK will have real difficulty in achieving them unless we really start to tackle transport and electricity production in a co-ordinated way."

What have been the most successful means to encourage staff to become 'greener'?

"We engage staff through forums such as 'chat with the chief.' For an hour, once a month our Chief Executive answers questions on a topic over an internet forum. The chat on our environmental performance raised a good debate and some interesting ideas which we are carrying forward. We use our internal communications to share successes and inform staff of initiatives we are pursuing. At the other end of the spectrum we use individual mileage targets to influence changes in behaviour, for example.

"Ultimately we are aware that we will only deliver the challenges we have set ourselves in our strategy by engaging and energising our 12,000 staff. We want people to think and act differently. To reflect this we have moved our internal environmental management team into our Human Resources Directorate. This is helping us draw closer links between environmental performance and our people management and development."

What advice would you give to someone starting out in your role?

"Keep it simple, ensure you have support from the top and make sure you embed environmental and carbon improvements at the core of how you do business and not as an afterthought."

What is your future vision of the "low carbon" Environment Agency?

"We will have fewer, smaller efficient offices in a way that others would aspire to. We will only travel on business when necessary and when we do we will take the lowest carbon option available. Where appropriate, we will have used our land assets and waterways to generate renewable energy. Our staff will behave differently because they understand the importance of being green and they will use this understanding to influence others."


Free-to-join best practice Network

The Low Carbon Innovation Network brings together over five thousand executives involved in reducing carbon emissions for their organisations, to share best practice and innovation in the drive to tackle climate change.

All members of the Network receive a weekly Bulletin and can interact with one another on an online forum to discuss the challenges, share experience and capture best practice.

Getting together and sharing best practice makes sense in all walks of life, but never more so than when it comes to reducing carbon emissions. So please do encourage all those involved in reducing carbon emissions within your company to enrol on this free-to-join best practice Network to share their experience, for the benefit of all.




Low Carbon Training Seminars

The publishers of Low Carbon Board Report provide a wide-ranging programme of Training Seminars, in eleven locations across the UK, designed to suit the needs of all those involved in planning carbon reduction projects.

Quick Wins on Energy Efficiency & Carbon Management
Best Practice for Environmental Champions
Best Practice for Energy Managers ~ in a carbon conscious world
Green & Lean Information Management ~ how to save costs and cut carbon emissions
Green & Lean Marketing ~ how to delight low carbon consumers
Supply Chain Management ~ squeezing out carbon from across the supply chain

Full details at www.carbon-innovation.com/seminars

Low Carbon Board Report ~ February Issue

Topics for next month's articles:
- Strategies for engaging staff
- Carbon offsetting
- British/international standards
- Carbon reduction & reputation management

Please send suggestions for future articles, or any other comments, to editor@low-carbon-report.com

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