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BFF Blog

The environmental accounting sector is rapidly changing and we are constantly researching developments to stay up to date. The “Best Foot Foreword” page shares some of our findings on recent developments in the sector, media reports and our news. If you would like to be kept up to date on our blog, subscribe to our RSS feed.

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Earth's ecology in the red

Wed 24 Sep 2008

The 23rd September was officially named Earth Overshoot Day - the day humanity finally used up all the resources nature will generate this year, the Global Footprint Network reports. As such, Earth Overshoot Day marks the day when humanity begins living beyond its ecological means: we move into the ecological equivalent of borrowing.

Globally, we now require the equivalent of 1.4 planets to support our lifestyles. But of course, we only have one Earth. The result is that our supply of natural resources - like trees and fish - continues to shrink, while our waste, primarily carbon dioxide, accumulates.

 

Whereas the fall of Lehman Brothers, Merrill Lynch, Fannie Mae and Freddie Mac made headlines worldwide in September, Overshoot Day passed by with little comment. We wonder which will have the longest lasting consequences?

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changing_world

BFF has been closely involved with assessing the environmental impacts of wine packaging, having completed projects for WRAP on bottle lightweighting and comparing PET to glass. Our studies found that reducing the weight of a particular material leads to a significant reduction in a bottle's carbon footprint, but reducing weight by switching from glass to plastic does not necessarily achieve carbon savings.

However, Packaging News this week reports one producer that is moving from glass to plastic - and claiming an associated 40% reduction in the carbon footprint of a bottle. BFF would be keen to review these calculations but we have been unable to find detailed reports to substantiate the figures presented. Perhaps even more interesting is the article’s reference to using aluminium – a very carbon intensive material – to make bottles instead. No comment is made in the article on the footprint of the aluminium bottles.

 

We hope all of these decisions have been underpinned by robust carbon footprint measurements which, crucially, have: drawn boundaries to include the full product life-cycle; used appropriate accounting rules and applied consistent assumptions when comparing packaging systems. 

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Not a day goes by without another celebrity or politician having their lives carbon footprinted ... and as the US presidential race heats up, American news organisations and bloggers have jumped at the opportunity to scrutinise the carbon impacts of their political elite.

In the past the not insignificant personal footprint of Al Gore, seasoned US politician and now the world's most famous (and travelled) climate campaigner, has been justified by means of 'intellectual offsetting' - a new term coined to write-off personal impacts for the greater good.

 

However bloggers have been less charitable to Senator John McCain, whose 7+ homes have been recently estimated to emit 150 tonnes of carbon dioxide a year - 10 times the footprint of an average American. Perhaps it's not surprising then that his Climate Change Plan makes no mention of reducing consumption - but instead relies solely on market-based cap-and-trade mechanisms and "advanced technology". Of course being apolitical there is no comment from BFF on which party we would like to see gaining power for the next four years...!  

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changing_world

'Green tariff' confusion

Thu 21 Aug 2008

Moves by Defra and regulator Ofgem to more closely define ‘green tariff’ electricity risk adding confusion to the marketplace. Both organisations are motivated by the understandable desire to avoid ‘double counting’ carbon savings from existing and planned renewable supplies (so called ‘additionality’). The basic premise is that the proportion of renewables in the supply mix is determined by Government policy (primarily the Renewables Obligation) and not by customer demand. So the argument goes that any ‘green’ tariff label is misleading and cannot be directly linked to new renewable generating capacity.

However, this approach is not without its critics – notably the outspoken head of Ecotricity who rightly points out that not all electricity suppliers are equal. Some invest considerably more in new renewable generating capacity than others and are therefore doing more than their fair share to ensure that Government’s challenging renewable targets are met. From the users’ perspective, having the ability to confidently select a lower carbon supplier empowers them to actively reduce the footprint of their consumption. BFF would argue that at sufficiently high levels, user demand for lower carbon tariffs would stimulate demand for the construction of more renewable electricity projects. 

 

Having worked with Defra and several utility companies, including Ecotricity, BFF’s view is that some account does need to be taken of the contribution to carbon savings by suppliers and users. A good starting point is electricityinfo – a website which provides data on the carbon intensity of electricity by supplier. BFF uses these figures to inform clients about different suppliers and, interestingly enough, the data for the site is sourced from Ofgem and Defra’s sister department BERR!

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BFF has been closely involved with the development of PAS 2050 for product labelling in the UK. The principle of labelling is to inform consumers of products’ impacts to support decision-making, but the merits of the scheme have been intensively debated in the UK. Recent news has reported that Japan is also launching a labelling scheme which raises the question of compatibility - are study boundaries, conversion factors and reporting units (CO2 or CO2e) consistent? BFF will be keeping an eye on the international approach to product labelling.

changing_world

While the international media focuses on Beijing, a new analysis of China’s ecological footprint has put the country’s environmental impact under further scrutiny. The report has found that despite having a low per capita footprint, China is living beyond its means, requiring twice the country's land area to support current levels of consumption.

BFF Technical Director Craig Simmons, who recently co-authored a European Commission study on the Ecological Footprint as a national sustainability indicator, commented: “Such studies are valuable in helping to identify strategic national environmental priorities and provide a metric for monitoring progress.”

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The UK Advertising Standards Authority has ruled that Shell misled the public when it claimed in an advertisement that a $10bn oil sands project in Canada was a "sustainable energy source". In an interview on BBC Radio 4's Today programme the Deputy Director of the ASA said that they are receiving an increasing number of complaints about such green claims - especially where the terms 'carbon negative', 'carbon neutral' or 'carbon zero' are used.

To avoid this problem, BFF has been employed by high profile companies (other than Shell!) to ensure their carbon claims are not just 'greenwashing' and stand up to scrutiny. For example, Volkswagen employed us to calculate the emission savings from driving the Polo BlueMotion over a year instead of the average car in its class, and compared the figure to savings from recycling paper, drinks cans and plastic bags. Advertising campaigns were run in print, online and on television.

 

In the Radio 4 interview, Guy Parker, Deputy Director of ASA, said: "There are more and more environmental claims and we are receiving more and more complaints about them. We are at the forefront of trying to decide whether or not claims like 'sustainable', 'carbon neutral', 'carbon zero', 'carbon negative' are justified in the context of the initiatives that the advertisers have got."

 

Read more about the Shell case on the FT, Guardian and Telegraph websites. The ASA interview is available on the BBC's website (listen to the business news at 2hrs43mins). The ASA's full adjudication can also be read on their website.

 

In May, edie reported that greenwash complaints to the ASA had soared: "The ASA's Annual Report 2007 revealed objections about green claims more than doubled with 561 complaints about 410 adverts, compared to just 117 complaints about 83 adverts in 2006".

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changing_world

A critical step in carbon footprinting is defining appropriate boundaries which capture all activities relevant to a study’s objective. The same principle applies to national footprints where questions exist over who should be ‘responsible’ for emissions arising from the manufacture of goods for export, and how should these emissions be managed under international agreements?

 

This debate is best exemplified by examining China – a nation commonly cited as an ever-increasing producer of carbon dioxide emissions. A recent study by Carnegie Mellon University has estimated China’s “export goods emissions” contribute 33% of the country’s national footprint - a total of 1.7bn tonnes of CO2 (equivalent to the combined emissions of the UK, France and Germany).

 

BFF considers that ‘demand’ from consumers at an individual, corporate, or national level drives the ‘supply’ industries. The production needed to ‘supply’ goods leads to GHG emissions but the responsibility for the emissions sits with the consumer, i.e demand, side. Of course producers must maximise their efficiency of production, but this is something that can be driven in part by demand preferences of consumers.

 

BFF recognises the complexity of developing national footprint accounts from our own experience (and the enormous challenge of developing international agreements). However, the progress of carbon accounting rules and associated agreements must recognise these underlying behaviours if change is to occur.

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A new report from The Ethical Corporation Institute has highlighted 'staggering inconsistencies' in the way FT 500 companies are calculating and reporting their GHG emissions to stakeholders.

The new research report reveals that companies responding to the fifth annual Carbon Disclosure Project questionnaire are using a total of 34 different public protocols or guidelines to report on their emissions. Meanwhile interviews with stakeholders show that there's an increasing demand for intra-industry sector standardisation of corporate emissions reporting.

Investors in particular note the need to report corporate emissions performance in relation to corporate growth and financials, and for companies to use emissions intensity metrics appropriate for the nature of their operations.

The report gives detailed, practical overviews of the most common reporting protocols used by business. The research also analyses the degree to which third-part auditors are employed to verify corporate emissions data and looks at the use of emissions intensity indictors by FT500 companies.
It focuses on the emissions reduction targets set by different corporations. Detailed accounts of exactly how individual corporations report their emissions intensity and their emission reduction targets are given in the appendix for the report.

Other climate related market intelligence reports to be launched by the Ethical Corporation Institute in the coming weeks include 'A practical guide to corporate emissions trading and offsetting' and an accessible briefing designed to help UK companies to prepare for the Department for Environment Food and Rural Affairs' (Defra) upcoming Carbon Reduction Commitment Scheme.

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