WSQ Graduate Diploma in Process Technology ( Sustainable Manufacturing ) Unit 1 : Session 10 : 10 th August, 2010 Dean Stanton Course Instructor | BrandGreen Carbon Footprint Measurement and Reduction Strategies for Products and Manufacturing Operations Communicating the Results of Carbon Footprinting; Setting Reduction Targets and Continuous Improvement

Unit 1: Develop Carbon Footprint Measurement and Reduction Strategies for Products and Manufacturing Operations This unit covers the knowledge and issues relating to carbon footprint measurement across operations and the value chain. The course involves demonstration of practical quantifying methodologies and standards, and discussions on how carbon footprint assessment can increase manufacturing efficiency. Key carbon reduction strategies such as life cycle thinking, resources management and 3Rs will be taught together with practical examples and applications. Participants will be able to take away practical knowledge and apply that in their work environments for quantification of carbon footprints and continuous improvement towards sustainable manufacturing. RECAP

Session 10 Pre-amble : Review of learnings from previous sessions

Session 10 Section 1. Communicating the results Building the business case internally Articulating the benefits case externally

Session 10 Section 1. Communicating the Results 1. Overview

Why do this in the first place? Climate change is happening Warming of the climate system is unequivocal IPCC, 2007 For 650,000 years, atmospheric CO2 has never been above this line… until now 2007 Little doubt remains.

What are the pressures? Businesses are under pressures from all directions to act… However bumpy the ride, we are moving to a low carbon economy, smart businesses will bend with the wind, others will be swept away. (Financial Times) The science is clear. The challenge is now for the business community…to decide how to respond. This poses a challenge for business, but it also presents significant opportunities (AP) Investors are owners who want the companies to stop being laggards when it comes to minimising risk and taking advantage of opportunities (TODAY) Business leaders need to do much more to incorporate environmental concerns into their thinking (Jamie Murdoch, Star TV / News Corporation) We simply will not succeed in cutting carbon until the business community, which has been part of the problem, is part of the solution Swiss RE has recently told its customers that failure to take their carbon footprint seriously could result in the renewal of their policy being declined (Singapore Straits Times) Business leaders Media Representative groups Insurance sector Investors Politicians

What are the opportunities? Senior managers are waking up to the challenges and opportunities… I’m looking to increase returns to shareholders relative to my peers CEO Our company has a responsibility to fight climate change Group Head of CSR We need to be actively managing risk Head of Compliance My department’s looking to increase market share and enhance loyalty Marketing Director I’m charged with growing the top line Sales Director I want our people motivated and receptive to change HR Director We need to reduce our cost base to compete Finance Director I want the company to be seen to take the lead Non-exec Chairman Source : BrandGreen research, interviews with Singapore based company executives, Jan-Mar 2010

What are the opportunities? … but the range of available options is confusing Shouldn’t we be investing in major PR and marketing? Would it make sense to upgrade our fleet? Should we change where our energy comes from? Should we be helping our customers go green? Should we be exerting influence over our supply chain? Should we refurbish our buildings? Shouldn’t we be lobbying government? Should we focus on driving down our electricity usage? Source : BrandGreen research, interviews with Singapore based company executives, Jan-Mar 2010

Labelling tackles these issues head on and hits all of the business case sweet spots… Cost reduction Reduced direct impacts Revenue growth Reduced risk Reduced indirect impacts Enhanced brand Business case

Session 10 Section 1. Communicating the Results 2. Internal Communications

Developing the business case Key considerations Manage the initiative as a discrete project , and think about the whole end to end process: Align initiative(s) with overall strategy and operational needs Opportunity elaboration Build business case and obtain buy in Develop balanced scorecard of objectives and obtain sign off Develop detailed implementation plan; obtain sign off Implement individual streams of activity End-to-end programme management Embed change across people/ process / technology

Session 10 Section 1. Communicating the Results 3. External Communications

External communications Examples (UK experience)

External communications Examples (UK experience)

External communications Examples (UK experience)

External communications Examples (UK experience)

External communications Examples (UK experience)

External communications Examples (UK experience)

Session 10 Section 2. Approaches to Labelling

Session 10 Section 2. Approaches to Labelling 1. Overview

Session 10 Section 2. Approaches to Labelling 2. Labelling and product declarations (including ISO 14025)

Labelling and product declarations Overview

Session 10 Section 2. Approaches to Labelling 3. Range of labelling schemes

Summary Comparisons Carbon Label UK: Carbon Reduction Label United States: Certified Carbon Free Canada: CarbonCounted Registration/licence fee US$ Starting from S$10,000 –upwards S$3,500 registration. S$750 per subsequent product. S$150 per company in supply chain Separate LCA required Yes. Cost: SS$20,000 upwards Yes. Cost: S$15,000 upwards Optional Standard specific Yes. PAS2050 No No Independent verification required Yes Yes Yes Marketing support Included Included Not included Offsets No Yes No Carbon Label Contents Carbon content. Context. Recommendations on how consumers can lower the ‘after sales’ carbon impact of the product. Content: Optional. No context. No recommendation. Claims product is carbon neutral? Content: Optional. No context. No recommendation. Number of companies using label 40 (with a further 30 projects underway), including Cadburys, Pepsi Co. and Coca-Cola 11 in total, including Motorola and Florida Crystals 40 including Standard Chartered Bank and investment bank UBS

Session 10 Section 3. Reductions Targets and Continuous Improvement

Session 8 Appendices: The Singapore Carbon Label

The Singapore Carbon Label: Vision and Mission Measuring and communicating the carbon content of the products and services we consume, raising the carbon consciousness of governments, businesses and consumers. Vision Mission What is it? The Singapore Carbon Label is a bottom up, industry led strategic initiative, developed by the SEC , SMa and SIMTech . Support Singapore’s transition to a recognised low carbon economy A Singapore initiative to… By…