2. The Rights and Wrongs of Carbon Accounting About life cycles and footprints in the carbon world Carbon Accounting Conference Heriot-Watt University, Edinburgh - 11 March 2009

3. The Challenge – “Counting Emissions” Methods Case studies Conclusions Contents

4. Forum for the Future (2008) Getting to Zero: Defining Corporate Carbon Neutrality GHG Protocol – Boundary Setting

5. Direct GHG emissions Indirect GHG emissions (supply chain) n4 n3 (…) n5 (…) n1 (…) n2 tC0 2 ·eq Production layers

6. System completeness vs truncation Product 1 Product 2 Carbon footprint (t CO 2 -e) Production layer

7. The Challenge – “Counting Emissions” Methods – Process LCA + IO-LCA Case studies Conclusions Contents

8. Method 1: Process LCA Table 1. Flows of products between unit processes Production of Steel Electricity Production Production of Toaster Use of Toaster Disposal of toaster Steel (kg) 1- 0.5- 200 Electricity (kWh) - 0.51- 0.1- 10 Toaster (unit) 001- 10 Toast (piece) 00010000 Waste disposal service (kg disp.) 0001 Table 2. Flows of environmental intervention by unit processes Production of Steel Electricity Production Production of Toaster Use of Toaster Disposal of toaster CO 2 (to air, kg)14210.5

9. Process LCA Model Process specific StrengthsWeakness Truncation,laborious Method 1: Process LCA

10. Method 2: Environmental Input-Output Analysis INDUSTRIES. Agric. & raw mat. Manuf. ind. Electricity gen. Transport sectors Service sectors PRODUCTS 500010000150002000100 Food, minerals, fuels 30008000 200002000 Manufact. Goods 10006000 100003000Electricity 4002000 150005000Distribution 5015001000500020000Services GHG emissions200300250150100

11. Input-OutputLCA Model Complete, less resource intensive StrengthsWeakness Aggregation not specific Method 2: Input-output LCA

12. A hybrid of Process & EIO: Hybrid-LCA

13. Process LCA Input-OutputLCA Model Process specific Encompassing system boundary StrengthsWeakness Truncation Aggregation HybridLCAHybridLCA Process specific Encompassing system boundary Process specific Encompassing system boundary Process specific Encompassing system boundary Process specific Encompassing system boundary Why a hybrid approach?

14. Further information

15. The Challenge – “Counting Emissions” Methods Case studies Conclusions Contents

16. Carbon Footprint of a food company

18. HIE – Internal & External Expenditure

19. Carbon footprint by production layer

20. Sector benchmarking t CO 2 -e / £

22. Structural path analysis (SW H&C sector)

23. The Challenge – “Counting Emissions” Methods Case studies Conclusions Contents

24. Save money and time – start with a top-down analysis to identify hot spots in your total carbon footprint Follow-up hot spots on site and in your supply chain On site: reduce energy use, emissions and costs Supply chain: help (urge) others to reduce their carbon footprint In-depth Hybrid LCA only if major insights & savings can be expected Communicate your findings and experiences Rights…

25. Don’t get lost in too detailed an analysis – keep the bigger picture in mind Be aware of and manage uncertainty – don’t search for the last gram (of carbon) Avoid presenting results (labels) without explanation Do not leave out services – the impact of service activities is often underestimated … and Wrongs of Carbon Accounting

26. THANK YOU www.censa.org.uk