$1863 $1091 503 $1989 $1528 $1601 $76 $1944 $1730 702 $1237 $1510 $1822 779 547 573 $1644 $1340 $1126 773 $1047 730 543 777 $1888 $1142 $1835 $1301 $16675 $1678 254 $17 $1442 $1773 $1591 $1555 $28 892 935 85 382 $1639 289 325 391$1046 398 919 255 $1601 261 $42 $1241 $1278 581 $177 $1699 $74 $1961 904 $1293 $1955 820 $99 $1266 $100 $67 $1250 343 271 $14 767 $1696 $135 $1603 $1268 $$1589 330 947 843 745 $72 $1448 $1067 $1749 $52 $1907 $1776 $1303 838 $1765 $14 $16 $1796 808 $1874 $112 $1605 $1562 $1297 315 $1479 $1956 $1026 $1066 $1606 $1514 54 349 $1891 873 $1503 24 500 $100 $1010 $1837 997 $1215 $1791 72 817 $15 709 577 928 382 $1322 $47 $1550 $1109 $1991 $132 $89 $1982 515 $15373 3 $1038 $28 $73 554 $102 805 $1675 350 783 $30 $1335 $1746 $1667 311 209 $172 $99 736 $1798 568 898 $126 274 $1117 $1369 $58 $1699 932 503 969 $135 $17381790 755 $1142 399 $136 $1649 807 $1479 $1584 $1585 949 $1354 $1638 $1841 2290 367 314 769 $86 724 784 $1403 $1866 925 $1861 $1188 $1688 380 $1710 261 $62286 71 $1732 $1226 947 $1420 $5 $1355 $1660 $20 $1615 $60 770 394 530 $1173 7 708 516 319 $1751 $67 $19 $1070 $1420 378 $1892 533 $192 $1710 $1421 $12861917 $1425 $1790 $1922 33 $1557 $1239 $1840 $1850 $1167 $1047 84 $1314 t969 9594 791 232 858 581 $1641 $1288 239 $1208 $1567 $$1688 $151 $93 $1314 $1230 $174 $1906 $1235 $1218 $1166 $1016 $1846 $196 292 $1130 701 $1830 $1070 789 $1418 $164 $1018 $1680 $1392 $1277 918 $189 $1876 $1404 256 $182 730 $1985 71 $151 $108 $1751 $1953 538 312 $1358 $1579 740 $72 $1533 $46 91 $1842 248 $44 262 $1479 $1475 398 $1269 532 $179 $18 $1448 $1812 $1564 $1115 $1331 $1867112 51 $1223 $1223 $1588 796 $1315 $1811 $1639 789 $1670 $1621 $1502 388 $10

CARBONACCOUNTING:

SEEING THE OPPORTUNITY

CGA-BC ECO FORUM 2013

CARBON ACCOUNTING: SEEING THE OPPORTUNITY 3

INTRODUCTION CONTENTS

Certified General Accountants have served and advanced the interests of businesses, government and the general public in BC for more than 60 years. In doing so, they have always added a reasoned and intelligent voice to the public debate concerning important financial and economic issues.

There can be no doubt that the environment—and any discussion concerning judicious environmental stewardship—has important financial implications. CGAs have always been at the forefront of such discussions and the Eco Forum was conceived to provide an exchange of ideas and opinions that can help all business professionals make smart decisions on behalf of their organizations.

If “leading truly begins with learning”, the Certified General Accountants Association’s efforts to inspire individual action can serve as the foundation to make sustainability part of the way business is done every day. CGA-BC’s Eco Forum was rooted in the idea that responsible environmental stewardship is no longer optional. The time for action is now.

4

A GREEN ECONOMY IS GOOD FOR BUSINESS

8

MEASURE, PRIORITIZE, REDUCE, REPEAT

12

RESOURCES

7

WHAT IS CARBON ACCOUNTING?

10

CASE STUDIES

6

VISUALIZING A TONNE OF CARBON

9

WHY SMALL CHANGES MATTER

13

ABOUT CLIMATE SMART

Vancouver Economic Commission ( VEC) is the city ’s economic agency, working to strengthen Vancouver ’s economic future by supporting existing businesses and attracting talent and investment.

CGA-BC is the governing and regulatory body responsible for the training and certification of B.C.’s nearly 15,000 CGAs and CGA students.

CARBON ACCOUNTING: SEEING THE OPPORTUNITY 54

This booklet, produced by Climate Smart, provides an overview of carbon accounting, benefits, case studies, and resources available.

green jobs and

City of Vancouver’s 2020 Vision

Vancouver’s 10 Greenest City Goals

green businesses

30,0002,600

Businesses are integral to growing Vancouver ’s green economy. In fact, the Green Economy is Goal 1 in the Greenest City Action Plan. This single area of focus has knock-on benefits that will ripple across the entire community.

To learn more about Vancouver ’s Greenest City Action Plan, visit vancouver.ca/green-vancouver/greenest-city-2020-action-plan

WHERE TO BEGIN?

of companies with CSR programs are seeing financial benefits: new customers, lowered costs, and increased productivity.

Vancouver businesses already participate in energy-efficiency initiatives programs. Do you?

Source: Economist Intelligence Unit Source: 2011 Vancouver Economic Commission survey

74% 10,000

CLIMATE ACTION = $$

EVERYONE’S DOING IT

A GREEN ECONOMY IS GOOD FOR BUSINESS

Local governments are taking action on sustainability, and rightly so: communities are the places we live, work, and play; and the effects of climate change will be most acutely felt at the local level.

As an example, City of Vancouver has a bold vision: to become the world’s greenest city by 2020. The Greenest City Action Plan includes a goal to secure Vancouver ’s reputation as a mecca for green enterprise, by growing the number of green jobs and encouraging businesses to make environmentally sustainable improvements to their operations. A greener economy will create opportunities today, while building a strong local economy and an internationally recognized city that meets the needs of generations to come.

Where businesses fit in

The benefits to businesses are compelling: green businesses have access to new markets (including public-sector procurement); attract the best talent and keep employees engaged; cut operating expenses; build green and efficient supply chains; and innovate products and business processes.

1/ Green Economy2/ Climate Leadership3/ Green Buildings4/ Green Transportation5/ Zero Waste 6/ Access to Nature7/ Lighter Footprint8/ Clean Water9/ Clean Air10/ Local Food

Businesses increase their competitiveness through sustainability. In doing so, they also improve the community: lower carbon emissions (Goal 2); efficient building energy use (Goal 3); greener transportation (Goal 4); better waste diversion (Goal 5); lower water consumption (Goal 8); and cleaner air (Goal 9).

CGAs have a vital role to play in building greener businesses as strategic advisors to businesses across all sectors.

Leading companies are already reporting publicly on sustainability. In the future, the best accountants will have carbon accounting as a key part of their toolkit.

Any business can be green. Even small businesses (70% of Vancouver ’s businesses have fewer than 10 employees) can reduce their waste, encourage alternative modes of commuting, and purchase sustainable, locally sourced supplies.

Take this quick quiz to see how your organization stacks up. A score over 10 means that you are “actively engaged in greening your operations”.

Are you a “green” business?

The role of CGAs

Waste

Taking steps to reduce

Measuring performance

Creating targets and programs

Energy

Water

Greenhousegases

Employeecommuting

Fuel

Check o� all the areasyour organization is

currently tackling(1 point each).

How did you do?

Your score: points

Congratulations! You are onthe road to a greener

organization!

10–20 points

Demonstrating leadershipand accountability

Environmental purchasing policy

Public environmental commitment

Public environmental targets (2 points)

Other leading practices

There’s room to improve! Read on for ideas on

where to start!

1–9 points

For other resources, news and information on greening your business in one convenient location, visit: vancouvereconomic.com/page/green-business

Bene�ts toVancouver

Increasetransit and

biking

Decreasewaste

Decreaseenergy use

Decreasecarbon

emissions

Decreasewater use

Bene�ts tobusinesses

Greeningbusiness

Supportsustainablepurchasing

Lowercosts

Engageemployees

Attractnew

customers

Catalyzeinnovation

CARBON ACCOUNTING: SEEING THE OPPORTUNITY 76

VISUALIZING A TONNE OF CARBON

WHAT IS CARBON ACCOUNTING?

What is “carbon accounting”?

What information is included in a GHG inventory?

What is the carbon accounting standard?When talking about an organization’s carbon footprint, you’ll often hear phrases such as “our footprint is x tonnes”, or “We have reduced our carbon emissions by x tonnes”. What does that mean? How do you visualize a tonne of carbon?

In carbon accounting the unit of measure is tonnes of carbon dioxide equivalent (CO2e).

2,989 billion tonnes of CO2 in Earth’s atmosphere

2,331b tonnes

naturally present, maintained for the last 400,000 years

689b tonnes

CO2

from human activity in the last 200 years

(human activity has added over 22% of this)

1 tonne of CO2e at ground-level pressure and temperature

would �ll a sphere10.9 m in diameter

CO2

* http://www.epa.gov/climatechange/ghgemissions/global.html#three

Source: Carbon Visuals

Source: Carbon Visuals

Source: City of Vancouver 2010 Community Energy and Emissions Inventory; Climate Smart

Source: GHG Protocol Corporate Standard

Vancouver ’s annual emissions, in CO2e, would cover the city with a blanket of gas 11m (> 3 stories) high.

The world emits over 30 billion* tonnes of CO2e annually, and almost 700 billion tonnes since the Industrial Revolution began: a scale that can be hard for many to understand easily.

One of the challenges in visualizing climate change is that the cause is invisible: carbon dioxide is an odourless, colourless gas and its effects are non-localized (versus smog, for instance).

This represents the amount of six different greenhouse gases (GHGs) released into the atmosphere. Each of these gases has a different global warming potential (a capacity to heat the atmosphere), so they are converted into equivalent tonnes of CO2: the most important greenhouse gas and the one that represents the vast majority of the world’s GHG emissions.

The most widely recognized international standard for carbon accounting is the Greenhouse Gas Protocol, developed by the World Resources Institute and the World Business Council for Sustainable Development.

To measure its emissions, a company calculates its annual carbon footprint or GHG inventory: a quantified list of an organization’s GHG emissions and sources over a one-year period. Carbon accounting simply refers to this process.

Emissions from combustion of fuel in boilers, furnaces, vehicles, and equipment owned or controlled by the company

Emissions from the generation of purchased electricity or heat

All other emission sources, including employee business travel and commuting, production of purchased materials (e.g., paper, packaging), waste, transport and distribution (i.e., third-party shipping), and outsourced activities

While including Scope 3 emission sources is optional within the Protocol, most companies include the scope 3 emission sources most relevant to their operations, as they are often areas where businesses can make the most impact.

The GHG Protocol divides emission sources into three categories, or “scopes”:

1 2 3

CARBON ACCOUNTING: SEEING THE OPPORTUNITY 98

MEASURE, PRIORITIZE, REDUCE, REPEAT

WHY SMALL CHANGES MATTER

Completing a baseline inventory allows you to set a starting point and quantify the impact of activities taking place in your organization.

Small tweaks made to daily operations can have huge impacts when aggregated.

When Van Houtte Coffee Services first measured their carbon footprint in 2009, they saw that over 80% of their emissions came from transporting goods. They quickly realized that addressing these emissions was where they could make the biggest difference.

By gradually converting their gasoline vehicle fleet to propane and optimizing routes, Van Houtte have reduced their fleet emissions by 206 tonnes since 2009. Payback was excellent: at a cost of ~$5,000 per vehicle, the investment paid for itself in one year.

But continuing to calculate inventories in subsequent years means you can measure the impact of sustainability projects, both on your emissions and on your bottom line.

Consistent measurement year-over-year allows them to gauge the effectiveness of individual reduction projects. They can also begin to benchmark their performance, against themselves and against other companies (and competitors).

In a process of continual improvement, Van Houtte have also tackled their electricity use, waste, and further options for electric vehicles in their fleet. For instance, lighting retrofits now yield an annual savings of $8,000, 100,000 kWh, and nearly 2 tonnes of CO2e.

As an example, one architecture firm achieved a 15% reduction in its staff commuting emissions by providing financial incentives to employees choosing transit and improving cycling facilities. The empty parking spots could then be used for clients or rented out for an extra revenue source.

Businesses are achieving emissions reductions and cost savings through any number of approaches.

Some are simple and applicable to every business, like turning off lights at night. Others are more creative and tailored to the organization’s unique operations.

They also realized a 17% reduction in heating emissions by simply setting the programmable thermostat to turn down at night and on the weekends.

If every business in the City of Vancouver followed their lead, emissions across the City would be reduced by over 70,000 tonnes - enough to meet the City ’s annual emission reduction target of 3% per year.

From our environmental initiatives, we have permanently cut annual operating expenses in BC by over $100,000,” says Morten Schroder, VP Operations for BC.

❝

transporting goods

heating

transporting people

miscellaneous

electricity

top emissions sources:

CO2

on fuel conversion

1 yearpayback

2009

2010

2011

2012 -4.3%

-6.5%

-8.4%

Flip to the back of this booklet to learn more about Climate Smart, a verifiable CPD program that includes training, software, and one-on-one tailored support.

Designed in accordance with the GHG Protocol, Climate Smart will help you through the GHG inventory process, and work with you to develop the most suitable and effective carbon and cost reduction strategies for your organization.

WANT TO LEARN MORE?

tonnes of CO2e reduced70,000+

Introducing all your reduction initiatives at once can be daunting to staff, and it can be easy to lose momentum post-launch. Focus on one project per month to keep staff engaged and your initiatives running smoothly.

One business identified business travel—specifically on-site service visits to clients—as a major source of emissions. They now include a web camera in welcome packages for new clients so they can service them remotely.

spaces for rent

waste paper heat

JAN FEB MAR

CARBON ACCOUNTING: SEEING THE OPPORTUNITY 1110

CASE STUDIES

EPR Coquitlam recently completed a renovation of their offices, which gave them an opportunity to retrofit their lights to more energy-efficient ones. Motion sensors were also installed in all the offices, meeting rooms, kitchen and bathrooms.

They also took steps to address the waste heat in their server room (which required intensive air conditioning to cool). Installing a thermostat, a fan in the ceiling and a vented door allowed them to draw cool air from outside the server room, and redirect the hot air into the plenum above their drop ceiling. The heat now gradually disperses, heating other parts of the office.

These initiatives resulted in a nearly 20% reduction in EPR’s electricity use over the winter months, from one year to the next.

Loren, Nancke & Company saw carbon measurement as an excellent initiative for employee engagement. After their first year measuring, they started down the road to becoming a totally paperless office, by archiving files electronically and reducing hard-copy printouts to clients. They also increased the number of recycling bins (while cutting the number of waste bins), implemented a “turn-if-off ” policy for office equipment, and switched to a more environmentally friendly courier service.

By their second year, they measured a 33% reduction in their carbon emissions in the North Vancouver office. They have managed to keep their company’s overall emissions nearly level, despite opening a second office in New Westminster.

Reid Hurst Nagy Inc. Certified General Accountants (RHN) strives to provide excellent service while being a good corporate citizen. After measuring their carbon footprint they decided on a wide variety of strategies.

New pre-filters installed on their HVAC system intakes prevent large airborne debris from clogging the main system filters. This will improve their system’s operation and efficiency for years to come.

RHN has also initiated a robust paperless office initiative, which has additional benefits such as reduced number of individual printers and supplies, meaning additional energy and cost savings.

RHN’s next project is starting a composting program for food waste in the kitchen.

A BC Hydro Power Smart Partner since 2003, T&T Supermarkets have long been improving efficiency in their operations. Though early along in the process of carbon measurement, they see the value in quantifying their achievements through calculating their footprint and using it to prioritize projects.

They are now investigating the feasibility of switching to compressed natural gas in their delivery fleet vehicles. As a major food retailer, T&T are also tackling their organic waste head-on, by testing different waste digesters on-site to potentially eliminate the need for waste disposal from their stores.

The change in lighting quality is like night and day,” says Trevor Sutherland, Partner. “I would encourage any business to look out for the right opportunities to make energy-efficiency upgrades: it just makes sense!”

People will naturally follow the path of least resistance, so the key to our early successes was making all our changes easy for the staff to adopt,” says Candace Nancke, Partner.

Taking action in one area can have multiple benefits,” says Barbara Hurst, Manager, Services and Administration. “For instance, going paperless means clients can now send and access information via our online portal, which is much more convenient than physical drop-offs and couriers.”

❝ ❝

❝We’d been working to improve our performance for a long time, but measuring was critical to letting us see the opportunities in front of us,” says Herman Poon, administration manager. “It was a real eye-opener.”

❝

EPR Accounting and Business Advisory Services Coquitlam

Loren, Nancke & Company

Reid Hurst Nagy Inc. Certified General Accountants

T&T Supermarkets

For more success stories, go to climatesmartbusiness.com/case-studies

CARBON ACCOUNTING: SEEING THE OPPORTUNITY 1312

Want to change the world? So do we!

EcoTaxFile is what you get when you mix cloud accounting with sustainability. We provide accounting firms with online solutions to find and service clients: from marketing, to secure cloud solutions, to sustainability tools that fit into your current workflow. It ’s simple really : we are bringing accountants together to change the world.

Visit us on the web at www.ecotaxfile.com or email info@ecotaxfile.com to learn how your firm can utilize the cloud to engage clients from Victoria to Halifax and everywhere in-between.

RESOURCES ABOUT CLIMATE SMART

EcoTaxFileCGA-BC Eco Forum Exhibitors

FortisBC Energy Efficiency Rebates

Energy efficiency rebates can put money back into your business.

Installing high-efficiency natural gas space and water heating appliances can help lower your energy costs, reduce your carbon footprint and help you meet sustainability targets. And at FortisBC, we can help. Through our Energy Efficiency and Conservation Program, we provide customers with rebates on high-efficiency equipment that can help you save even more money.

Install a high-efficiency natural gas water heater or boiler and qualify for rebates ranging from $380 for a small water heater to as much as $60,000 for a large boiler.

climatesmartbusiness.com1-888-688-6283

BC Hydro

Climate Smart

Computers for Schools

Digitech Renewable Printer Cartridges

GHG Accounting Services Ltd.

Prism Engineering

Van Houtte Coffee Services

Climate Smart Businesses is a social enterprise providing training, coaching, and software tools for businesses to measure their carbon footprint, identify key opportunities for cost, energy, and carbon reduction, and communicate their efforts internally and externally.

Comprehensive and pragmatic

Climate Smart helps cut unnecessary energy, fuel, materials use and waste, and ties climate action to smart business practice.

Linking businesses with the community

We partner with local governments, connecting economic development and emissions reduction. Climate Smart builds resilience in local businesses to risks from volatile energy prices and climate change impacts. We catalyze innovation and new business practices. Municipalities are able to engage their local businesses in climate action that benefits the entire community.

Learn more about how Climate Smart can help your organization’s move to a greener, low-carbon economy.

Teachers, not consultants

We use a workgroup-based curriculum, top-rated software, and one-on-one tailored support, to train businesses to measure, analyze and reduce their company’s impact by themselves: key skills for survival in the green economy of the future.

Bring additional value to your clients

As more individuals and businesses begin demanding carbon-accounting services, Climate Smart can help you deliver new services and build resilience in your client networks. Contact Climate Smart about our Affiliate program, and add value to your client offering.

Got a commercial kitchen? Cook up some sustainability with Efficiency à la Carte, our Foodservice Incentive Program. With rebates as much as $3,500 per appliance, you’ll be adding to your bottom line and making your operations more efficient.

If your organization is located in the Southern Interior, our PowerSense Program offers additional incentives on energy efficient electrical products such as lighting, refrigeration, pumps, fans, motors and HVAC systems.

Learn more about these and other offers at fortisbc.com/rebates or visit fortisbc.com/energyteam to find an account manager near you.

Be sure to check out the CGA-BC Eco Forum tradeshow. These leading energy and resource-conservation product and service suppliers can help you build, implement, and maintain your company’s environmental sustainability program.

Continuing professional development

Completing the Climate Smart program is recognized as a verifiable CPD activity for CGAs. Receive up to 12 CPD hours when you attend the sessions and complete your first GHG inventory for your organization.

A leader in enabling leaders

Since 2008, we have worked with over 700 businesses and organizations of all sizes, from every industry sector of our economy. We empower clients to focus their entrepreneurial spirit on reducing the impact of their business.

hours of verifiable CPDClimate Smar t clients12700+

SEE

ACT NOW

the business opportunitiesfor your organization

and stay aheadof the curve

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