Industry has criticised the government for failing to make clear the carbon emissions allocations companies can expect under the European Union’s Emissions Trading Scheme, which begins in January. The government has set out the total amount of carbon British industries will be allowed to emit but has not given details of allocations for each sector. Those affected by the trading scheme do not know how much carbon they can emit next year without being fined or buying extra carbon permits in the market. Meanwhile, the government is seeking to increase the carbon dioxide emissions allocation for UK industry in the first phase of the EU trading scheme by 19.8 million to 756.1 million allowances. The proposals have been made to the European Commission in light of an estimated increase on interim projections of UK green-house gas emissions released earlier this year. Contact Defra 08459 335 577 ( http://www.defra.gov.uk)
Repent and reduce
BP, British Airways and Lafarge are among six leading companies that have restated their commitment to the UK Emissions Trading Scheme, a voluntary scheme to reduce greenhouse gas emissions that began in 2002. Several of the participating companies have already beaten their reduction targets, leading to a surplus of emissions reductions allowances on the UK market. The six companies have offered to provide an additional 8.9m tones of carbon dioxide equivalent emissions reductions, a collective increase of around 280%, to help keep the scheme on track. Contact Defra 020 7238 1134 ( http://www.defra.gov.uk)
Greater efficiency
Boots, Heinz and Scottish Newcastle are among 50 companies that between them stand to gain £24m in new revenue opportunities, identified in a pilot scheme to improve their energy efficiency. The Carbon Trust, a government funded company that helps business and the public sector cut carbon emissions and capture the commercial potential of low carbon technologies, has now opened up the Carbon Management Programme to other businesses, offering them a ‘carbon makeover’ to help them save energy and reduce the amount of carbon they emit. Businesses signing up to the scheme undergo a carbon audit to identify areas where they can reduce energy use and receive £20,000 worth of consultancy from the trust. Contact Carbon Trust 020 7170 7000 ( http://www.thecarbontrust.co.uk)
Reverse gear
Global warming may make it
impossible to achieve the Millennium Development Goals, which aim to halve world poverty by 2015, warns a report launched on October 20. Up in Smoke, published by the Working Group on Climate Change and Development, a coalition of aid and environmental charities including WWF, Christian Aid and ITDG, calls on governments around the world to take urgent action to introduce:
a global risk assessment of the likely costs of adaptation to climate change in poor countries
cuts in emissions of greenhouse gases by industrialised countries in the order of 60-80 per cent.
Business Roundtable, a US-based association of CEOs, announced on October 4 that more than two-thirds (70%) of its member companies have embraced voluntary actions to address greenhouse gas emissions by taking part in its Climate RESOLVE program, which was launched in February 2003. So far:
89% have taken or are taking actions to reduce, avoid, offset or sequester GHG emissions
72% have reported or are reporting GHG management activities to the public
71% have established or are establishing written policies to track and meet GHG emissions goals.
The Climate Group, a coalition of organisations committed to reducing their greenhouse gas emissions, has published Carbon Down, Profits Up, a report on companies, cities, states and governments that are reducing their CO2 emissions, becoming more energy efficient and making a significant profit as a result. Five companies – DuPont, Alcan, BT, IBM and Norske Canada – lowered their greenhouse gas emissions by at least three-fifths each through improved energy efficiency, fuel switching and reduced waste output, and saved $5.5bn between them. Meanwhile, a report published by the World Resources Institute on October 27 highlights actions that companies can take that allow them to make profits at the same time as slowing global warming. A Climate of Innovation: Northeast Business Action to Reduce Greenhouse Gases contains the findings of the Climate Northeast Initiative, a group of nine American corporations which came together in 2003 to focus on climate change management strategies for energy use, emissions tracking, and innovations such as green power purchasing. The group included Bristol-Myers Squibb, Citigroup, Johnson & Johnson and Pfizer.
BT has made the world’s largest purchase of green electricity in a move to meet most of its UK electricity needs with environmentally friendly energy, it was announced on October 14. Over three years the initiative will save emissions equivalent to the amount of carbon dioxide produced by almost 50,000 households. BT has already reduced its emissions by 80% since 1991. Contact Steve Kelly, BT 020 7356 5000 ( http://www.bt.com)
Green energy deal
Co-operative Financial Services has signed an eight-year, £4m green energy deal with electricity supplier Ecotricity. CFS’s commitment has enabled Ecotricity to finance the construction of six new wind turbines in Lincolnshire, which will specifically supply CFS with electricity.
Meanwhile CIS, its insurance arm, has received grants of £885,000 and £175,000 from the Northwest Regional Development Agency and the Department for Trade and Industry respectively, towards a £5.5m solar project to clad its landmark service tower in Manchester with photovoltaic panels that will create 180,000 units of renewable electricity each year. Contact David Smith, CFS 0161 829 5397 ( http://www.cfs.co.uk)
Editorial Comment
Climate change is back in the news – back and not likely to be out of it, if dire predictions are to be believed, until we are all six feet under thanks to melting polar ice caps. George W. Bush’s re-election in November has caused renewed despair among environmentalists about go-it-alone attitudes. Meanwhile December saw the launch of a UK government consultation on its climate change programme. The figures are stark. Now legally binding on signatories after Russia’s agreement, the Kyoto Protocol requires 5% reductions in green house gas emissions by industrialised nations from 1990 levels by 2008-2012, with the UK’s target at 12.5%. This is nowhere near what many experts say is necessary. So the UK government has set a 20% target by 2010 and 60% by 2050. The financial (not to mention human) costs of failure to act are alarming: $50bn in insurance claims, according to the ABI, with the OECD talking about $14bn to $73bn for remedial action.Yet there is cause for muted optimism. As we report above, some companies are making big savings from reducing their inputs. Early movers like BT and CFS create momentum and build a critical mass that should reduce costs for others. In the US, whatever the politicians say, companies are addressing the issue, however hesitantly. But as the CBI pointedly says, while here industry has started to act (cutting emissions by 6% between 1990 and 2003) householders have actually increased theirs by 10%. For CSR managers, a practical suggestion: in your next social report, clearly present how you are doing against Kyoto and national targets since 1990, and say what it would take to meet them by 2010 and 2050. Then put the focus firmly on that often under-reported facet, so-called ‘indirect’ impacts, ie how you can influence others to reduce their impacts too. It’s in the consumer marketplace where this whole question of global warming will have to be resolved.The prize is huge, not least in reducing dependence on oil from the Middle East, with all that implies for geo-politics, terrorism and global stability. Only the most churlish would say anything other than “good luck” to Tony Blair, who is promising to make this crucial issue top priority when the UK assumes the presidency both of G8 and the EU in 2005. A happy and more sustainable New Year to all our readers
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