25 march 2011
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Sustainable Procurement: Targeting GHG emissions hotspots in the supply chain South West Sustainable Procurement Network. 25 March 2011. The full impact of an organisation includes emissions made by its supply chains. - PowerPoint PPT PresentationTRANSCRIPT
Sustainable Procurement:
Targeting GHG emissions hotspots in the supply chain
South West Sustainable Procurement Network
25 March 2011
The full impact of an organisation includes emissions made by its supply chains.
Supply chain emissions are now increasingly recognised as a crucial footprint component.
Carbon measurement, and therefore management, efforts should focus on emissions under the organisation’s control…
…but there are also opportunities, which often go ignored, for reducing emissions by exerting influence.
Emissions over which there is control (e.g.
direct, electricity)
Measured using Process Analysis
Emissions over which there is influence(e.g. procurement)
Measured using Econometric Analysis
The majority of emissions beyond an organisation’s direct control have conventionally been ignored, because, prior to econometric footprinting, the data were hard to obtain.
The majority of emissions beyond an organisation’s direct control have conventionally been ignored, because, prior to econometric footprinting, the data were hard to obtain.
Carbon measurement, and therefore management, efforts should focus on emissions under the organisation’s control…
…but there are also opportunities, which often go ignored, for reducing emissions by exerting influence.
Emissions over which there is control (e.g.
direct, electricity)
Measured using Process Analysis
Emissions over which there is influence(e.g. procurement)
Measured using Econometric Analysis
The majority of emissions beyond an organisation’s direct control have conventionally been ignored, because, prior to econometric footprinting, the data were hard to obtain.
The majority of emissions beyond an organisation’s direct control have conventionally been ignored, because, prior to econometric footprinting, the data were hard to obtain.
Emissions over which there is control (e.g.
direct, electricity)
Measured using Process Analysis
Emissions over which there is influence(e.g. procurement)
Measured using Econometric Analysis
The majority of emissions beyond an organisation’s direct control have conventionally been ignored, because, prior to econometric footprinting, the data were hard to obtain.
The majority of emissions beyond an organisation’s direct control have conventionally been ignored, because, prior to econometric footprinting, the data were hard to obtain.
Emissions associated with BCC’s procurement are widely distributed throughout the supply chain.
The procurement footprint is very much larger than the direct footprint.
Procu
rem
ent
Direct
Emissions associated with BCC’s procurement are widely distributed throughout the supply chain.
The procurement footprint is very much larger than the direct footprint.
Procu
rem
ent
Direct
…and also by which emissions would be included within the scope of NI 185.
We grouped BCC’s emissions into three main categories.
Cat
ego
ries
use
d
in t
his
stu
dy
GH
G
Pro
toco
l ca
teg
ori
es
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Emissions categories
Cat
ego
ries
use
d
in t
his
stu
dy
GH
G
Pro
toco
l ca
teg
ori
es
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Direct
NI185
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Procurement
NI185
non-NI185
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Electricity
NI185
non-NI185
Emissions categories
…and also by which emissions would be included within the scope of NI 185.
We grouped BCC’s emissions into three main categories.
Cat
ego
ries
use
d
in t
his
stu
dy
GH
G
Pro
toco
l ca
teg
ori
es
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Emissions categories
Cat
ego
ries
use
d
in t
his
stu
dy
GH
G
Pro
toco
l ca
teg
ori
es
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Direct
NI185
Direct
NI185
Scope 1Direct emissions from owned or
controlled sources
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Procurement
NI185
non-NI185
Procurement
NI185
non-NI185
Scope 3All other indirect
emissions
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Scope 2Emissions from the
generation of purchased electricity
Electricity
NI185
non-NI185
Electricity
NI185
non-NI185
Emissions categories
Three quarters of the emissions in FY 09/10 were associated with procurement.
Description
Breakdownt CO2-e
Totalst CO2-e
Direct 23,669
BCC direct emissions included in NI185 23,669
Electricity 50,667
Electricity emissions included in NI185 34,713
Other electricity emissions 15,954Procurement 218,045
Outsourced services emissions included in NI185 23,092
Other procurement emissions 194,953
Total footprint 292,381
Three quarters of the emissions in FY 09/10 were associated with procurement.
Description
Breakdownt CO2-e
Totalst CO2-e
Direct 23,669
BCC direct emissions included in NI185 23,669
Electricity 50,667
Electricity emissions included in NI185 34,713
Other electricity emissions 15,954Procurement 218,045
Outsourced services emissions included in NI185 23,092
Other procurement emissions 194,953
Total footprint 292,381
BCC will start to engage suppliers in these priority areas.
Looking at the commodity groups in detail, we can identify the most GHG-intensive purchasing categories.
NI 185 emissions (BCC)
NI 185 emissions(outsourced services)
Non-NI 185 emissions
NI 185 emissions (BCC)
NI 185 emissions(outsourced services)
Non-NI 185 emissions
NI 185 emissions (BCC)
NI 185 emissions(outsourced services)
Non-NI 185 emissions
BCC will start to engage suppliers in these priority areas.
Looking at the commodity groups in detail, we can identify the most GHG-intensive purchasing categories.
NI 185 emissions (BCC)
NI 185 emissions(outsourced services)
Non-NI 185 emissions
NI 185 emissions (BCC)
NI 185 emissions(outsourced services)
Non-NI 185 emissions
NI 185 emissions (BCC)
NI 185 emissions(outsourced services)
Non-NI 185 emissions
Here is the priority list of suppliers to engage with, ranked in order of their likely individual contribution to BCC’s footprint.
1. Sita UK (Sewage & refuse disposal)2. Bristol LEP Ltd (Banking & financing)3. Rokbuild Ltd (Construction)4. Bam Construction Ltd (Construction)5. Cory Environmental Ltd (Sewage & refuse disposal)6. Continental Landscapes Ltd (Agricultural products and services)7. Wates Construction Ltd (Construction)8. Bristol PFI Ltd (Banking & financing)9. Aspects And Milestone Trust (Social work activities)10. The Brandon Trust (Social work activities)11. Bam Nuttall Ltd (Construction)12. Birse Civils Ltd (Construction)13. Blakedown Landscapes Ltd (Agricultural products and services)14. First Somerset & Avon Ltd (Other land transport)15. Carillion Highway Maintenance (Construction)16. Bristol Schools Ltd (Banking & financing)17. Flights Hallmark Ltd (Other land transport)18. E R Hemmings (Building) Ltd (Construction)19. Domestic Drain Services (Sewage & refuse disposal)20. Connaught Partnerships Ltd (Construction)
The carbon footprint of BCC’s outsourced services (as defined in NI 185) increases its NI 185 total by 40% .
Outsourced services are a special category, because they are directly associated with the authority’s functions.
The carbon footprint of BCC’s outsourced services (as defined in NI 185) increases its NI 185 total by 40% .
Outsourced services are a special category, because they are directly associated with the authority’s functions.
This information will inform the discussions with suppliers, by focussing on the key emission sources.
We have analysed where the supply chain hotspots are likely to be for the top 20 commodity groups.
Commodity rank Commodity
Path order Path description
Valuet CO2-e
Percentage of total impact
1 Electricity 2 Electricity > BCC 28,428 9.72%
3 Electricity > Electricity > BCC 10,539 3.60%
4 Electricity > Electricity > Electricity > BCC 3,907 1.34%
5 Electricity > Electricity > Electricity > Electricity > BCC 1,448 0.50%
3 Crude oil and gas > Electricity > BCC 1,092 0.37%
2 Construction 2 Construction > BCC 3,348 1.15%
3 Construction > Construction > BCC 1,042 0.36%
3 Imports of: Articles of concrete, plaster and cement > Construction > BCC 925 0.32%
3 Electricity > Construction > BCC 755 0.26%
3 Cement, lime and plaster > Construction > BCC 744 0.25%
4 Cement, lime and plaster > Articles of concrete, plaster and cement > Construction > BCC 730 0.25%
3 Sewage and refuse disposal 2 Sewage and refuse disposal > BCC 20,219 6.92%
3 Sewage and refuse disposal > Sewage and refuse disposal > BCC 3,432 1.17%
4 BCC direct emissions 1 BCC direct emissions 23,669 8.10%
5 Social work activities 2 Social work activities > BCC 1,812 0.62%
6 Banking and financing 3 Air transport > Banking and financing > BCC 1,548 0.53%
3 Electricity > Banking and financing > BCC 1,008 0.34%
7 Health care 3 Imports of: Pharmaceuticals etc. > Health care > BCC 1,286 0.44%
2 Health care > BCC 1,267 0.43%
3 Electricity > Health care > BCC 750 0.26%
8 Other land transport; transport via pipelines 2 Other land transport; transport via pipelines > BCC 5,113 1.75%
9 Other service activities 2 Other service activities > BCC 1,080 0.37%
10 Agricultural products and services 2 Agricultural products and services > BCC 4,812 1.65%
11 Miscellaneous manufactured products 2 Miscellaneous manufactured products > BCC 897 0.31%
12 Gas, steam and hot water 3 Imports of: Crude oil and gas > Gas, steam and hot water > BCC 1,965 0.67%
3 Electricity > Gas, steam and hot water > BCC 1,057 0.36%
2 Gas, steam and hot water > BCC 753 0.26%
13 Education All No dominant path 5,228 1.79%
14 Wood and wood products 2 Wood and wood products > BCC 1,322 0.45%
15 Office machinery and computers All No dominant path 3,248 1.11%
16 Hotels and restaurants All No dominant path 3,013 1.03%
17 Structural metal products All No dominant path 2,669 0.91%
18 Other general purpose machinery All No dominant path 2,609 0.89%
19 Telecommunications All No dominant path 2,473 0.85%
20 Refined petroleum etc. 3 Imports of: Crude oil and gas > Refined petroleum etc. > BCC 838 0.29%
2 Refined petroleum etc. > BCC 800 0.27%
This information will inform the discussions with suppliers, by focussing on the key emission sources.
We have analysed where the supply chain hotspots are likely to be for the top 20 commodity groups.
Commodity rank Commodity
Path order Path description
Valuet CO2-e
Percentage of total impact
1 Electricity 2 Electricity > BCC 28,428 9.72%
3 Electricity > Electricity > BCC 10,539 3.60%
4 Electricity > Electricity > Electricity > BCC 3,907 1.34%
5 Electricity > Electricity > Electricity > Electricity > BCC 1,448 0.50%
3 Crude oil and gas > Electricity > BCC 1,092 0.37%
2 Construction 2 Construction > BCC 3,348 1.15%
3 Construction > Construction > BCC 1,042 0.36%
3 Imports of: Articles of concrete, plaster and cement > Construction > BCC 925 0.32%
3 Electricity > Construction > BCC 755 0.26%
3 Cement, lime and plaster > Construction > BCC 744 0.25%
4 Cement, lime and plaster > Articles of concrete, plaster and cement > Construction > BCC 730 0.25%
3 Sewage and refuse disposal 2 Sewage and refuse disposal > BCC 20,219 6.92%
3 Sewage and refuse disposal > Sewage and refuse disposal > BCC 3,432 1.17%
4 BCC direct emissions 1 BCC direct emissions 23,669 8.10%
5 Social work activities 2 Social work activities > BCC 1,812 0.62%
6 Banking and financing 3 Air transport > Banking and financing > BCC 1,548 0.53%
3 Electricity > Banking and financing > BCC 1,008 0.34%
7 Health care 3 Imports of: Pharmaceuticals etc. > Health care > BCC 1,286 0.44%
2 Health care > BCC 1,267 0.43%
3 Electricity > Health care > BCC 750 0.26%
8 Other land transport; transport via pipelines 2 Other land transport; transport via pipelines > BCC 5,113 1.75%
9 Other service activities 2 Other service activities > BCC 1,080 0.37%
10 Agricultural products and services 2 Agricultural products and services > BCC 4,812 1.65%
11 Miscellaneous manufactured products 2 Miscellaneous manufactured products > BCC 897 0.31%
12 Gas, steam and hot water 3 Imports of: Crude oil and gas > Gas, steam and hot water > BCC 1,965 0.67%
3 Electricity > Gas, steam and hot water > BCC 1,057 0.36%
2 Gas, steam and hot water > BCC 753 0.26%
13 Education All No dominant path 5,228 1.79%
14 Wood and wood products 2 Wood and wood products > BCC 1,322 0.45%
15 Office machinery and computers All No dominant path 3,248 1.11%
16 Hotels and restaurants All No dominant path 3,013 1.03%
17 Structural metal products All No dominant path 2,669 0.91%
18 Other general purpose machinery All No dominant path 2,609 0.89%
19 Telecommunications All No dominant path 2,473 0.85%
20 Refined petroleum etc. 3 Imports of: Crude oil and gas > Refined petroleum etc. > BCC 838 0.29%
2 Refined petroleum etc. > BCC 800 0.27%
Procurement emissions can be reduced by…
1. Reducing consumption•Awareness raising, leading by example and effecting behaviour change•Improving efficiency in specific areas of consumption•Restructuring contracts (e.g. favouring fixed price over time-and-costs where possible) to incentivise efficiency gains
2. Substituting with less-carbon-intensive alternatives•Sending signals to the market about BCC’s commitment to reducing its supply chain carbon footprint (e.g. website, literature, posters, etc.)•Requesting carbon footprint information•Telling suppliers that will become an increasing focus area and that they will be expected to excel in both carbon data provision and emissions reduction•Providing suppliers with information on how to go about assessing their footprint, and likely hotspots in their supply chains•Introducing greenhouse reporting and reduction in tender requirements•Providing incentives for good performance, e.g. participation in publicity events, awards, etc.•Undertaking carbon reduction initiatives in partnership with suppliers
