Summary of interesting article in The Environmentalist written by Dr. Michael Gell.
Introduction
The Intergovernmental Panel on Climate Change (IPPC) concluded for the first time in their 4th assessment of global warming, that global warming is undeniable and that human activity is the main driver, and very likely to have been causing the rise in temperature since 1950 (IPPC, 2007). There has been various studies conducted to give us insights into the magnitude of potential changes caused by global warming. “In their analysis of atmospheric levels of carbon dioxide and carbon intensity from economic activity Canadell et all (2007) show that the carbon cycle is generating stronger than expected and sooner than expected climate forcing”.
Various suggestions have been made of the degree to which emissions should be reduced over various timescales. It is generally accepted that the rise of the global temperature associated with climate change should be kept within 2 degrees Celsius. “Schemes such as Contraction and Coonverge (Meyer, 2000) have been proposed which provide a means of achieving equitable stabilisation of emissions on an international scale”.
A number of business have already delivered significant emissions reductions mainly through waste minimisation and energy savings. “In this respect disclosure projects such as the Carbon Disclosure (www.cdproject.net) are playing an important role in raising the profile of issues surrounding the reporting and transparency of commercial emission reduction activities”.
Some companies have shown great succes in their emissions reductions but there are still significant innovation gaps associated with the delivery of a 2 degrees Celsius limit. Some of these gaps relate to the application of energy and environmental technologies, but many of them relate to market structure, business management, and organisational & consumer behaviour.
Whole-Business Carbon Footprint
Stakeholders, customers and the public are becoming more concerned about climate change so therefore business must take reponsibility for the climate change impacts = their Carbon Footprint. This is not only the impact associated with emissions from gas, electricity and oil. The footprint includes much else such as embodied energy in materials, equipment and infrastructure, travel, and services either supplied or used by the business.
There is a range of other forces developing which will stimulate the transition to carbon-constrained economies and commercial and industrial systems. One of them is environmental legislation, particurlarly producer responsibility will stimulate innovation.
The EuP Directive is now into force in Europe and intrduces a far-reaching legislation on the eco-design of energy-using products. The EuP Directive requires an assessment of the greenhouse gas (GHG) emissions associated with the product life-cycle. The EuP legislation embodies a form of climate-change legislation for certain type of products, and is likely to be followed with other product-oriented legislation.
There is now an opportunity for a business to unify its response and adaptation to the new environment by recognising common requirements within the various forces at work. For example, customers may require a supplier to reduce its carbon footprint and the footprint of the product its supplying. “By recognising that substantially similar requirements may be embodied within apparently diverse forces, a business has an opportunity to streamline its effort during the transformation into carbon-constrained markets”.
Carbon Reduction Plan
Stakeholders, customers and business networks are increasingly focusing on the whole business carbon footprint, so ot is important for a business to know what to do. Businesses are required to be able to respond to enquiries about their business carbon footprint, goods and services footprint, and the actions the business is taking to improve its environmental performance. In many cases the customer chooses the supplier they want to continue making business with based on the their reponses.
Carbon scoring is now as common as credit and insurance scoring. In terms of supply chain development, retention as a business partner my depend, for example, on a agreed plan for carbon footprint reduction over a specific timescale. For businesses this will come through the implementation of a carbon reduction plan. The building blocks of a typical plan are:
- ecostructure including renewable energies & ecotechnlogies, adaptation, mitigation & sustainability.
- ecoconduct including energy conservation & efficiency, waste & emissions minimisation, eco-design (process, goods, services)
- ecoperformance including ecobusiness & ecomarkets, ecointelligence (ecometrics and KPIs) ecoleadership & ecocommunity
These are components of a firm, embodied with a framework of eco-oriented leadership, governance, communication and advocacy. The elements of the carbon reduction plan represent environmental added-value and business added-value.
Business Ecointelligence
“Ecointelligence is the ability to recognise the inherent intelligence (for example not to waste anything, interdependence, regenration and sustainability) of natural systems and processes and to apply what is recognised within the organisation”. For example, an ecointelligent management would recognise climate change trouble and environmental problems caused by human activity as indicators of faulty design in industrial and economic systems. It goes beyond standard environmental management and requires altering products design criteria, re-negotiating relationships with suppliers, developing new personnel skills, changing the company’s technology and manufacturing processes and developing new relationships with customers.
The emerge of highly-competitive carbon-constrained businesses may play an important role not only by carbon reductions in their own business but also potentially by displacing from markets those businesses choosing not to repsond to the carbon reduction challenge. The market is shifting to incorporate carbon-constraints and will put pressure on businesses to conform.
Conclusions
Reducing the business carbon footprint is now being superseded by a phase of building low-carbon business constallations where businesses evaluate each other’s footprints and conduct business accordingly. It is therefore essential for organisations to asses their own development and strategy of carbon-constraint business.
If you want more advice on how to reduce your business carbon footprint and to build up a low-carbon business constallation please contact Giraffe on info@giraffeinnovation.com