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Climate Change

Climate Change. Understanding the threats and discovering the opportunities Carole Bond Envirowise. Understanding the Threats, Discovering the Opportunities. What does Climate Change mean for businesses in the South West? What are our own impacts on Climate?

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Climate Change

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  1. Climate Change Understanding the threats and discovering the opportunities Carole Bond Envirowise

  2. Understanding the Threats, Discovering the Opportunities • What does Climate Change mean for businesses in the South West? • What are our own impacts on Climate? • How might we go about addressing our impacts? • Getting help • How do we communicate climate change issues?

  3. Who are Envirowise? • UK wide government funded programme led by industry and coordinated by DEFRA – programme value £14M • Provide businesses with a range of free & confidential environmental services to improve their competitiveness & productivity • Primarily funded by the Business Resource efficiency & Waste (BREW) programme . • Complemented by WRAP , NISP and Carbon Trust

  4. “We should be very, very scared of global warming …. the scientific debate is over.” David Milliband

  5. Stern conclusions "Climate change is the greatest market failure the world has ever seen, and it interacts with other market imperfections.”

  6. Stern conclusions Three elements of policy are required for an effective global response: • price carbon through tax, trading or regulation; • implement policy to support innovation and the deployment of low-carbon technologies; • act to remove barriers to energy efficiency, and to inform, educate and persuade individuals about what they can do to respond to climate change.

  7. 2080: Changes for the South West Sea-level: 20-80cm rise Summer: Warmer : 2 to 5.5ºC, drier by 25 to 55% Winter: Milder by 1.5 to 3.5ºC, wetter by 10 to 30%, snowfall decrease by 70 to 90% Source: WTI 2003, UKCIP

  8. The Two-Way Street Business activities Climate change

  9. Markets decreased or disappearing demand for present range of good & services competitors’ position enhanced by changing climate new markets created for substitute or new products and services Distribution channels vulnerability of transport & delivery systems Product/service life cycle processes & development vulnerability or scarcity of supplies of raw materials disruption to utilities business disruption due to weather effects People new customer requirements & expectations Business activities Climate change

  10. Market Behaviour • Milder winters threaten Ribena production… but longer summers are good news for strawberry growers • As temperatures rise, lemonade sales initially go up, but then fall again when it gets really hotLong range weather uncertainty affects production planning • Banana sales slump when it is hot and when it is cold • Long summers delay purchasing of autumn / winter clothing collections • Skiing days in Scotland down by 80% • Too hot to shop

  11. Business models supply chains Markets national or global spread Distribution channels product/service miles forms of distribution Product/service life cycles and development raw material extraction centralised production manufacturing processes packaging usable life energy use disposal Business activities Climate change

  12. Is there a solution? ADAPT to the effects: Prepare for challenges of climate change: more extreme events, change business practice, learn from recent experience MITIGATE the cause: Reduce our greenhouse gas emissions, i.e. C02 through energy & resource efficiency, development of renewables

  13. Products/Services • Ensuring new product development processes are informed by the company’s climate change mitigation objectives & emerging regulatory and voluntary schemes. • Understanding the nature of customer interest in climate change issues, and the potential market for climate change - focused products and services.

  14. Carbon Labelling • White goods • Cars • Houses…. • What’s next?

  15. Read, reduce, reward Ethics initiative Designed to encourage customers to use LESS. Loyalty benefits for company

  16. Cyclus Maximus

  17. Raw materials • Furniture built from tropical hardwoods vs sustainably managed forests • Use of virgin materials like aluminium which have higher embodied energy than recycled

  18. Rika Pellet oven The 12KW Evo Aqua wood pellet fired central heating apparatus: • 85% of the energy is transported to the radiators • can be used to heat the entire house.

  19. Laing Housing Development • 500,000 roofing tiles recovered for re-use • 40,000 tonnes demolition spoil as sub-base • Total cost savings £525,000 (3.5% project costs)

  20. Product/service provision • Carbon emissions from manufacturing processes and embodied carbon in waste • Energy use in service industries – keeping equipment switched on • Making sure that any packaging is fit for purpose

  21. Marks & Spencer launches "Plan A"- £200m 'eco-plan'CLIMATE CHANGE - making our operations in UK and Republic of Ireland carbon neutral by 2012.

  22. Bandvulc Tyres • Company has invested some £68,000 over the past year in 15 energy saving projects and equipment • Savings of £45,000 per year with an average payback of one and a half years. • Includes a heat recovery system that saves 624MW per year, insulation devices that save 379MW per year as well as energy monitoring software and energy saving lighting that has already cut 222MWh of electricity usage

  23. Pasta King 2006 • Waste is a KPI • Reduction of 139 tonnes to landfill • Unit cost reduced to 33% • £33,000 saving on tomato sauce • £120,000 savings to date

  24. Burt's Potato Chips • Raw material costs reduced by over £25,000 (0.6% of turnover) - flavorings • Potential to reduce frying rejects by 90%, saving an estimated £175,000/year • Potential to use production waste as animal feed rather than sending it to landfill • Potential to reduce water consumption by up to 25% • Now using their ‘green’ image for PR etc

  25. Product/service miles • Local seasonal produce vs green beans from Kenya • Video conferencing vs national and international travel for meetings • Attracting customers through new distribution channels (e.g. Internet), which minimise social and environmental impacts.

  26. Otter Farm

  27. CONFUSED ? WORRIED ? OVERWHELMED ? ENVIROWISEConfidential, Practical and free Advice Don’t Panic !

  28. Envirowise priorities • Resource efficiency in: • Raw materials • Solid waste • Water • Clean design Resource efficient = savings in resources, money and carbon

  29. “Skip Hire” “Collection charge” “disposal cost Cost of raw materials in skip Cost of wasted energy, eg material movement Loss in sales value Cost of lost revenue Cost of labour Cost of Administration Why think about waste skips are cheap ! Easily Identified Costs Hidden Costs & embodied carbon True cost of waste is between 10 – 20 times the price of disposal

  30. Audited waste costs 8 cu yd skip • Skip hire + collection £85 • Labour to fill skip £163 • Cost of materials put in skip £1095 TOTAL TRUE COST £1343 (Source: AMEC)

  31. The Waste Hierarchy Highest Priority Lowest Carbon • Elimination • Reduction • Re-use • Recycling • Recovery of energy • Treatment • Disposal Lowest Priority £££££’s Highest Carbon

  32. Highest Priority Lowest Carbon Lowest Priority £££££’s Highest Carbon

  33. Environment & Energy Helpline • Gateway to Envirowise • Freephone 0800 585794 • Any environmental question • 2 hours free specialist advice • No call limit (except for Consultants !) • Signposting to other sources of information • Requests for publications

  34. Company Visits • Fast Track Visits- ‘a fresh pair of eyes’ • Up to 8hrs from our specialist • Walk around site • Highlight the issues • Deal with specific problems • Written report and action plan

  35. Publications & Tools • Good Practice Guides (how to do it) • Case Studies (how others have done it) • Videos & software (tools to help do it) • Updates and newsletters All available from wesbite www.envirowise.gov.uk

  36. Communicating Climate Change

  37. “What changed in the US with Hurricane Katrina was a feeling we have entered a period of consequences” Al Gore

  38. Paramount Classics announced on 4 August 2006 that An Inconvenient Truth had grossed more than $20 million, the fourth highest grossing documentary of all time. • The company made an unprecedented pledge of 5% of all box office receipts to be donated to the Alliance for Climate Protection. A total that will exceed $1 million. • LOS ANGELES, Feb 25 From the best documentary award for a slideshow on global warming to the first ever environmentally friendly ceremony, Hollywood turned green at the Oscars thanks largely to the urgings of Al Gore.”

  39. Carbon Trust WE ARE ALL RESPONSIBLE!

  40. National Research • Most people in the UK think that climate change: • is confusing – they can't see how it relates to them; • won't affect them personally; • is a problem for the future, not now; and • can't be affected by their individual actions, because the problem is so big.

  41. National Research How concerned are you about the impact of Climate Change in the UK? How much influence do you think … can have on limiting Climate Change?

  42. Easy actions Actions affecting lifestyle Energy saving in home Radical change of car use Reducing plane flights Changing little habits THE BIG DIVIDE

  43. Audience rules • Target specific groups • Awareness, attitude change or behaviour change? • Understand them … market research

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