Supply Chain Management - How can we reduce our energy/climate footprint?

Transkript

1 Supply Chain Management - How can we reduce our energy/climate footprint? Hogne Nersund Larsen a*, Christian Solli a, Johan Pettersen a a MiSA AS, Beddingen 14, NO-7014 Trondheim, Norway * Corresponding author, hogne@misa.no

2 2 Outline Introduction - Research areas - Motivation of work Presentation of work - Carbon Footprinting (CF); definitions, methods - Presentation of results from selected case-studies Conclusion - Key findings - Further work

3 Relevant research areas 3 - Two main developments within environmental footprinting and system analysis: - Life Cycle Assessment (LCA) of products, such as: - Agriculture - High speed rail - Drilling operations - Wind power - Carbon Footprint inventories of entities: - Municipalities - Counties - Other public entities - Companies and organizations

4 4 Motivation for Supply Chain Management (SCM) and Carbon Footprinting (CF) 1) A large fraction of life cycle emissions occur upstream in the supply chain 2) New set of possibilities to reduce the GHG emissions resulting from an entity or product

5 What is a Carbon Footprint? The life-cycle GHG emissions caused by the production of goods and services consumed by a geographical defined population or activity, independent of whether the GHG emissions occur inside or outside the geographical borders of the population or activity of interest* WRI and WBCSD The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard: World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD). Scope 1 Direct emissions Total Carbon Footprint CO 2 -equivalents (CO 2 e): {CO 2 N 2 O CH 4 CO SF 6 HCFs PFCs } Scope 3 Indirect emissions Scope 2 The purchase of energy Combustion of fossil fuels Supplies Food Energy Pettersen, J., H.N. Larsen, and C. Solli. From analysis to actions - Carbon footprint and green procurement in public administration in MILEN International Conference: Visions and strategies to address sustainable energy and climate change, Oslo Services Transport *Larsen, H.N. and E.G. Hertwich, The case for consumption-based accounting of greenhouse gas emissions to promote local climate action. Environmental Science & Policy, (7): p

6 Scope 1 Scope 2 Scope 3 6 1) A large fraction of life cycle emissions occure upstream in the supply chain - Scope 1, 2 and 3 contribution of all Norwegian sectors - Indirect, Scope 3, contributions dominates - Direct, Scope 1, GHG emissions dominate only; energy, agriculture, waste and transport sectors - Supply Chain Management and inclusion of Scope 3 emissions are hence important! Pettersen, J., H.N. Larsen, and C. Solli. From analysis to actions - Carbon footprint and green procurement in public administration in MILEN International Conference: Visions and strategies to address sustainable energy and climate change, Oslo Manufacture of medical, precision and optical equip. Manufacture of radio, television and com. equip. Real estate activities Manufacture of office machinery and computers Manufacture of electrical machinery and apparatus n.e.c. Research and development Manufacture of other transport equipment Manufacture of machinery and equipment n.e.c. Manufacture of motor vehicles, trailers and semi-trailers Collection, purification and distribution of water Manufacture of furniture; manufacturing n.e.c. Computer and related activities Other business activities Manufacture of wearing apparel Manufacture of fabricated metal products Publishing, printing and reproduction of recorded media Activities of membership organisation n.e.c. Sale, maintenance and repair of motor vehicles and fuel Retail trade Education Manufacture of food products and beverages Supporting and auxiliary transport activities Wholesale trade and commission trade Hotels and restaurants Renting of machinery and equipment Manufacture of rubber and plastic products Activities auxiliary to financial intermediation Manufacture of textiles Recycling Construction Public administration and defence Financial intermediation Post and telecommunications Insurance and pension funding Health and social work Recreational, cultural and sporting activities Tanning and dressing of leather Manufacture of wood and of products of wood and cork Manufacture of pulp, paper and paper products Other service activities Forestry, logging and related service activities Other mining and quarrying Manufacture of basic metals Mining of metal ores Fishing, operating of fish hatcheries and fish farms Mining of coal and lignite; extraction of peat Manufacture of coke, refined petroleum and chemical products Manufacture of other non-metallic mineral products Air transport Water transport Land transport; transport via pipelines Sewage and refuse disposal, sanitation and similar activities Extraction of crude petroleum and natural gas Agriculture, hunting and related service activities Electricity, gas, steam and hot water supply Percent of total carbon footprint Fraction of total

7 7 A case-study of Oslo Calculating the Carbon Footprint of the municipality of Oslo using Environmentally Extended Input-Output Analysis (EE-IOA*) Methodology: EE-IOA Domestic technology: Norwegian year 2007 Import technology: European (EU27) year 2007 IO sectors 116 (58+58) NACE sectors GHGs included CO 2, CH 4, N 2 O, CO, HFC, PFC, SF 6 Databases Municipal consumption Key elements of analysis *Direct and indirect emissions that result from a given demand of products or services can be calculated given the combination of economic transaction statistics between different economic sectors and emissions from these sectors.

8 % of total Carbon Footprint 8 The carbon footprint of Oslo municipality Main findings: - Only 3 % counted as direct GHG emissions - 21 % from purchased energy (electricity = Nordic mix of 186 g/kwh) - 76 % of Carbon Footprint is scope 3 emissions - Several steps in the supply chain needs to be addressed Scope 1, 2 and 3 classification 21% Scope 1, direct emissions 3% Tier-wise distribution of GHGs in the supply chain Carbon Footprint, Norway Carbon Footprint, imports Scope 2: purchase of energy Scope 3, imports 45% Scope 3, Norway 5 31% 0 Scope 1 Upstream GHG emissions

9 Tonn CO 2 ekvivalenter 9 The carbon footprint of Oslo municipality Main findings: - Education and Health most contributing services - Energy and Infrastructure are important - Large structural differenced! 6 x Administration Education Healthcare Buildings and roads Water, wastewater and waste Cultural activities Purchase from mun. owned comp. Purchase from private actors Purchase from public actors Management of buildings Materials for infrastructure Buildings and infrastructure Equipment Energy Transport Travelling Administrative services Food Consumables

10 Tonn CO 2 ekv. More detail available Educational buildings outsourced 10 4 Energy school buildings 3 Food in healthcare institutions 2 1 Infrastructure sport facilities Transport of pupils Electricity for street lighting Energy for water supply 120 Administrasjon 130 Administrasjonslokaler 190 Interne serviceenheter 201 Førskole 202 Grunnskole 221 Førskolelokaler og skyss 222 Skolelokaler 223 Skoleskyss 231 Aktivitetstilbud barn og unge 234 Aktivisering og tjenester eldre og funksjonshemmede 241 Diagnose, behandling, re-/habilitering 242 Råd, veiledning og sosial forebyggende arbeid 243 Tilbud til personer med rusproblemer 252 Barneverntiltak utenfor familien 253 Pleie, omsorg, hjelp og re-/habilitering i institusjon 254 Kjernetjenester knyttet til pleie, omsorg, hjelp til hjemmeboende 261 Institusjonslokaler 265 Kommunalt disponerte boliger 285 Tjenester utenfor ordinært kommunalt ansvarsområde 320 Kommunal næringsvirksomhet 325 Tilrettelegging og bistand for næringslivet 333 Kommunale veier, nyanlegg, drift og vedlikehold 334 Kommunale veier, miljø og trafikksikkerhetstiltak 335 Rekreasjon i tettsted 340 Produksjon av vann 345 Distribusjon av vann 350 Avløpsrensing 353 Avløpsnett/innsamling av avløpsvann 355 Innsamling av husholdningsavfall 357 Gjenvinning og sluttbehandling av husholdningsavfall 370 Bibliotek 375 Muséer 381 Kommunale idrettsbygg og idrettsanlegg 385 Andre kulturaktiviteter og tilskudd til andres kultur-og idrettsbygg 386 Kommunale kulturbygg 393 Kirkegårder, gravlunder og krematorier Fra egne særbedrifter Fra andre ( private ) Konsulenttjenester Renhold, vaskeri- og vaktmestertjenester Materialer til vedlikehold Serviceavtaler og reparasjoner Vedlikehold og byggetjenester Inventar og utstyr Leie av lokaler og grunn Forsikringer og utgifter til vakthold og sikring Energi Transportutgifter og drift av egne transport- midler Andre oppgavepliktige godtgjørelser Opplæring og kurs Post, banktjenester, telefon Annet forbruksmateriell/råvarer og tjenester Matvarer Medikamenter Medisinsk forbruksmateriell' Undervisningsmateriell Kontormateriell

11 1000 tonn CO 2 ekv. 11 More detailed results; all Norwegian municipalities Main findings: - 29 % increase the last 10 years (18 % per capita) - Energy and Infrastructure (mainly buildings and roads) most important activities - Travelling and transport not very significant - Increase of outsourcing - Close to 1 ton per capita resulting from providing municipal services Purchase from mun. owned comp. Purchase from private actors Purchase from public actors Consultancy Management of buildings Buildings and infrastructure Equipment Energy Transport Travelling Administrative services Food Consumables

12 12 Conclusions Focusing on only direct GHG emissions is not enough when assessing the GHG emissions resulting from the activities of an entity. Equivalently, the Kyoto-based perspective is not suitable as measure of a country s sustainability imports Kyoto-perspective exports Measure of sustainability? Fictive illustration of Norway

13 13 Conclusions How can we reduce our footprint? 1) Green procurement strategies Pettersen, J., H.N. Larsen, and C. Solli. From analysis to actions - Carbon footprint and green procurement in public administration in MILEN International Conference: Visions and strategies to address sustainable energy and climate change, Oslo 2010.

14 14 Conclusions How can we reduce our footprint? 1) Green procurement strategies Important factors for success: 1) There is a need to better aim green procurement strategies (ref. previous fig.) 2) More LCAs/EPDs of products need to be made available 3) A general increase in the competence of evaluating environmental performance

15 a systems perspective to environmental research and consulting