Westminster Carbon counting conference 2008

1. Westminster Carbon counting conference 2008 Sean Lockie Sustainability Director- Faithful+Gould. Sean.lockie@fgould.com

2. Short practice profile (2 mins) Standards used in the industry (5 mins) Case study 1. a large bank UK premises only (5 mins) Case study 2. a global PR firm (global locations) (5 mins) Case 3. Atkins Contribution- Carbon manual (5 mins) Presentation overview

3. Practice profile TBC Donald Lawson Chief Operating Officer Faithful+Gould Sean Haley Managing Director Atkins Asset Management

4. TRANSPORT (10% of revenue) PROPERTY (70% of revenue) INDUSTRY (20% of revenue) Practice profile PROJECT MANAGEMENT COMMERCIAL SERVICES CONSULT • private finance initiative • due diligence • contracts consultancy • dispute management • development consultancy • risk & value management • capital tax allowance • expert witness • strategic asset management • Sustainability + WLV • project management • employers agent • programming & planning • building surveying • health & safety • cost management • Estimating • cost planning • Procurement • quantity surveying • cost engineering

5. Practice profile In the UK alone we have 27offices worldwide 53

6. Practice profile • Carbon Trust • Waste resources Action Programme • BRE – Green guide to specification • BRE – Zero Carbon Schools report • DCSF- Low carbon Schools programme • Members of the Green Building Council

7. Carbon Counting for Large property portfoliosRequirement for standards in the industryCodes and Standards • Faithful+Gould experience includes: • ISO TC 59/SC14 on Service Life Planning – we provide Working Group convenor and national experts • EU project “Life cycle costing as a contribution to sustainable construction” – members of European steering group • UK Industry Working Group on Life Cycle Costing – Standardised Method – we provide co-chair and experts • National and international R&D projects and networks • Innova Standards Network • SUE-MOT – sustainability tools and approaches • UK GBC – Measurement and reporting taskforce

8. Carbon Counting for Large property portfoliosRequirement for standards in the industryCodes and Standards Standards allow • Consistency across the board • Common rules and assumptions • Allows comparison / benchmarking • Protect consultants against PI claims

9. Carbon Counting for Large property portfoliosRequirement for standards in the industryCodes and Standards • Lessons learned from or work on standards: • Achieving consensus is the best way to get buy-in and adoption of new methods but this can be challenging- especially when multiple countries are involved. • Different sectors, countries, industries and organisations always assume that their way is “normal” • Terms and definitions are key to effective communication • UK ‘centric’ • It always takes longer than you expect!

10. Carbon Counting for Large property portfoliosRequirement for standards in the industryCodes and Standards • ISO 14064-2:2006 • Aims to inject credibility and assurance to GHG emissions reports and claims made in regard to reductions or removal of GHGs. • Not aligned with any particular scheme, • Can be used to validate organizations participating in a number of trading, project or voluntary emissions reduction mechanisms. • The standards may also be applied to all GHG types and are not limited to CO2.

11. Carbon Counting for Large property portfolios Specific Issues for Large Property Portfolios • Boundaries- Should boundary be the same for each site for comparison and benchmarking across the portfolio or should it take account of specific emissions from a site that do not occur elsewhere. • CO2emissions only or emissions from other Greenhouse Gases? • Should local emission factors be applied (e.g. purchased electricity) or a national / international factor used (particularly if the local factor is hard to acquire). • Harmonisation of emissions from transport may be difficult because of different measuring techniques and infrastructures.

12. Carbon Counting for Large property portfoliosCase study 1:A Large Bank, UK Premises onlyThe Bank • Global operation in over 50 countries • UK retail banking business employs 30,000+ staff • Environmental Policy of 20% reduction in energy usage from 2006 to 2010 • Our commission grew from energy management to carbon management.

13. Carbon Counting for Large property portfolios Carbon Counting for Large property portfoliosCase study 1:A Large Bank, UK Premises onlyThe Bank- The Framework we used 1. Getting started 2. Carbon Management Assessment“Where are we now?” 3. Develop Strategic Objectives“Where do we want to be?” 4. Carbon Management Plan (CMP)“How do we get there?” 5. Implementation“Let’s do it!” • Identify key people / stakeholders • Define scope • Consider potential opportunities • Gather information • Compile baseline emissions • Assess policy drivers • Assess awareness, commitments • Engage key stakeholders • Develop vision / aspiration • Compile forecasts • Prioritise areas of focus • Develop CMP • Confirm support • Set targets • Embed in key policy documents • Identify funding • Launch CMP • Secure / manage funding • Manage project implementation • Update emissions inventory, strategy, targets • Monitor & report progress

14. Carbon Counting for Large property portfoliosCase study 1:A Large Bank, UK Premises onlyConceptual Boundary • Direct CO2emissions from fossil fuel consumption for heating • Indirect CO2 emissions from electricity for heat pumps, electric heaters, lighting and ICT. • Transport emissions excluded at this stage but are likely to be included at a later stage

15. Carbon Counting for Large property portfoliosCase Study 1: A Large Bank, UK Premises onlyMeasurement and mitigation • ArT Atkins remote technology • Automated Meter Reading provides consumption and emissions profiles • reporting for individual sites and the whole portfolio • trend reports identify poorly performing assets • baselines developed for whole portfolio, remediation applied for individual sites • provides data for individual project assessments, e.g. air conditioning strategies

16. Carbon Counting for Large property portfoliosCase Study 1: A Large Bank, UK Premises onlyOutcomes • Installed at 144 sites to date • Savings to date of 1,185 tonnes CO2(18 months)

17. Carbon Counting for Large property portfoliosCase Study 2: A Global PR CompanyThe Company • The Company is one of the largest public relations firms in the world • Services ranging from public relations to marketing to reputation management. • 52 Offices to be assessed located on 6 continents 21 countries. • Recognise that carbon management provides an opportunity to improve carbon footprint • Have identified a goal of measuring global emissions which will allow the design of an appropriate carbon management programme. • The CEO supports investment in measuring and reducing the Carbon Footprint. • CSR probably main driver

18. Carbon Counting for Large property portfoliosCase Study 2: A Global PR CompanySpecific Issues • Baseline emissions required for each office according to local CO2conversion factors • Single assessment boundary for all locations • Understanding of local factors and assumptions • Need to normalise outputs to allow for benchmarking • Single data collection format • Global and local recommendations required for reducing Carbon footprint

19. Carbon Counting for Large property portfoliosCase Study 2: A Global PR firmThe Assessment Boundary Assessment Boundary agreed with the Company

20. Carbon Counting for Large property portfoliosCase Study 2: A Global PR CompanySpecific Issues • Information gathering will ask for local CO2emissions factors for electricity. If these are not available data from the GHG Protocol tools will be used • Business Travel and Commuting emissions based on GHG Protocol emissions factors for kilometres travelled for various classes of transport • Waste data – • landfill, incineration, recycling • Because information is gathered via questionnaire the data will not be as good quality ‘real time’ etc

21. Carbon Counting for Large property portfolioscase study 3: Atkins Group Carbon ManualInvolvement in Carbon services • Atkins and Faithful+Gould have been active in carbon services for several years, these are broadly grouped into: • The causes of climate change: • carbon quantification products • low carbon building design services • travel planning • and the effects of climate change: • adaptation and mitigation services

22. Carbon Counting for Large property portfolioscase study 3: Atkins Group Carbon ManualSeveral products already developed • Contaminated Land • Water companies • Design Tool • ‘Carbon manual’ to bring it all together

23. Carbon Counting for Large property portfoliosAtkins Group Carbon ManualInvolvement in Carbon services • ROCC – remediation options carbon calculator (Contaminated Land) • for contaminated land remediation regimes • identify emissions associated with various stages of the regime • selection of fixed and mobile diesel powered plant • conceptual boundary set at operational activity, emissions from plant • embodied carbon not considered

24. Carbon Counting for Large property portfoliosAtkins Group Carbon ManualInvolvement in Carbon services • Water and Supply Strategy tool • “work packages”-modules of known embodied and operational carbon emissions • conceptual boundary • embodied carbon of primary construction materials and components • CO2 emissions during construction and associated with operation • direct emissions from fossil fuel energy consumption of works equipment during construction and transportation of materials and labour • indirect emissions from electricity consumption of construction works equipment, operational installations and buildings heating and lighting.

25. Carbon Counting for Large property portfoliosAtkins Group Carbon ManualInvolvement in Carbon services • Carbon Calculator for DCSF Low Carbon Schools Programme • allows evaluation of CO2 emissions at the design stage for reduction by the use of on site renewable generation • same baseline calculation for all designs but allows individual solutions • conceptual boundary • direct emissions from fossil fuel energy consumption for heating • indirect emissions from electricity consumption for lighting, small power and ICT

26. Carbon Counting for Large property portfolioscase study 3: Atkins Group Carbon ManualAims of the Carbon manual • ‘Bring it all together’ • An internal document • to illustrate the importance of carbon management to ourselves and our clients and to stimulate thought leadership in this increasingly important area; • to provide sound advice and a framework methodology for current and future practitioners of carbon quantification (footprinting) and management services; and • to illustrate the applications of carbon quantification within Atkins and Faithful+Gould projects • To raise awareness and promote understanding of the subject; • as a signposting document;

27. Carbon Counting for Large property portfolioscase study 3: atkins Group Carbon ManualPrinciples and considerations • carbon emissions as a result of the behaviour of private individuals • carbon emissions as a result of the behaviour of corporate entities • direct emissions (scope 1) • indirect emissions from energy (scope 2) • other indirect emissions (scope 3) • embodied energy and embodied carbon • conceptual boundaries • other greenhouse gases

28. Potential emissions sources for an office building

29. Office sources with conceptual boundary drawn

30. Common standards will allow Comparability, transparency, and ability to benchmark Reduce the confusion in the marketplace Apply the technical rigour A key requirement for any trading scheme for auditing purposes When are we going to see the ‘Stern values’ of £25.5 per tonne of CO2 applied to government projects? Concluding comments