Carbon Reduction Label

How does carbon footprinting compare with assessment of overall environmental impact of a product?

In discussions we are frequently asked why we are focusing on the carbon footprint of products rather than other measures.  Studies rank climate change as the most significant threat we face and many other environmental problems such as water pollution and shortages are mainly due to the same underlying cause i.e. burning of fossil fuels.  Carbon is also in many cases a reliable proxy for the total impact of our activities upon the environment.

There are many individual measures that can be used to assess environment impact, for example global warming potential, ozone layer depletion, human toxicity, ecotoxicity, acidification, photochemical smog, eutrophication, land use degradation, ecological diversity, water use, and fossil fuel consumption.   All are elements that can contribute to the impact of a product or service upon our environment.

Ecological footprinting is one of the best known methodologies for looking at the whole of our impact upon the planet.  For Australia the most significant factor contributing to our Ecological Footprint is carbon dioxide emissions from fossil fuels, constituting approximately half of the total Australian Footprint.

Other methodologies exist, for example Edge Environment use the concept of Ecopoints to express a weighted single LCA score using the list of categories defined above. 100 Australian Ecopoints corresponds to the average annual environmental impact of an Australian resident.  In their studies of the built environment they have recorded a good correlation between the Ecopoints score and the contribution from greenhouse gas emissions.

How will the Carbon Reduction Label benefit companies and consumers?

The Label is intended to act as the bridge between carbon-conscious companies and their customers and consumers.

For companies, the Label helps companies to benefit from their commitment to manage and reduce their product’s carbon emissions. The Label will also encourage companies to show their green credentials, drive carbon efficiencies within their supply chain partners, and even switch away from carbon intensive products.

For consumers, the Label will empower them to lower their personal carbon footprints and make carbon conscious purchasing decisions rewarding companies committed to deliver lower carbon products.

Where can we use the Carbon Reduction Label?

The use of the Carbon Reduction Label in Australia will be similar to the way it has been used in the UK; on pack, on websites, at point of sale, in catalogues, in press materials and in CSR reports. The Carbon Reduction Label can be used anywhere where it is associated closely with the product or service. The biggest benefits from using the Label come when it is used on pack, but it is not a requirement for companies to do so; they can choose to use the Label to communicate through other channels.

Note:

1. The Label is not to be used to imply that a company has measured or is reducing its corporate footprint, though this is a good objective in itself, (and the corporate footprint will naturally include some of the lifecycle emissions from all of the products it produces).

2. All communications should explain what has been achieved, clearly referencing the specific product(s) or service(s) footprinted. Guidelines are issued to users to assist with its use of the label.

What does a business have to do to qualify for a Label?

To qualify for a Carbon Reduction Label, companies will need to have their product carbon footprint certified against Carbon Trust ‘Footprint Expert’ comparability requirements, including PAS 2050, a Code of Good Practice, Comparability Rules and standard secondary data where appropriate.

What are the benefits of the Carbon Reduction Label?

• Enhancing brand and corporate reputation by leveraging the authority and credibility of third party endorsement from Planet Ark and the Carbon Trust, together with their commitment to reduction.
• Driving carbon reduction and finding cost savings across the organisation and supply chain through the rigorous and verified measurement process.
• Differentiating the product or service to consumers and/or business customers as one that is reducing its carbon footprint.
• Pre-empting growing consumer interest in understanding and acting upon the carbon footprints of the things they buy.
• Helping consumers to compare between different products and services and helping them use and dispose of them in a lower-carbon way.
• Building loyalty with employees by engaging with them in an area that is increasing important to them: Driving carbon reductions in the products they produce.
• Helping to create a critical mass of companies and consumers to drive significant carbon reductions nationally and worldwide.

What is the incentive for a business to put yet another Label on its products?

Initial research in 2007 for the Carbon Trust by Opinion Leader Research concluded that companies saw climate change as the primary issue likely to impact their corporate reputation.

The label was seen as one of the first opportunities companies had to demonstrate their commitment to reducing carbon direct to consumers. More recent Consumer Brands and Climate Change 2008 research showed that there is a receptive market from consumers for innovative solutions that will help people reduce their impact on climate change.

The latest Green Pulse research in Australia showed that consumers are keen to understand the carbon footprint of their purchases and would value the information. And research in the UK has shown that, despite the recession, climate change is still a substantive consumer issue.

Will this mean anything to consumers? Isn't it too early for the general public?

Consumer research by the Carbon Trust, Planet Ark and others shows that consumer awareness of product carbon footprints is relatively low but that the idea resonates once explained.

Consumers understand the proposition, especially the commitment to reduce emissions, but education will be crucial which is a key role of Planet Ark. Over time, once a sufficient number of companies and products have embraced the standard and shared that information with customers, consumers and retailers will be able to benchmark and select low carbon products. Companies will be able to differentiate their products on the basis of carbon content and the actions they are taking to reduce them.

Our proposition is simple: to award the Label to companies committing to reduce the carbon footprint of their product within two years, repeatedly. We expect that this will help companies and consumers to understand and drive carbon reduction, while new companies embrace the standard.

How are you going to help consumers understand what this means? Will you be running education campaigns?

Most certainly yes. Planet Ark realises the importance of education in achieving environmental behaviour change. We have over 17 years of successful experience in running environmental behaviour change programs and will be working with stakeholders especially our partner companies make the Carbon Reduction Label a major driver in consumer’s decision making.

In the short term, the focus of the consumer message will be on the brand-owner's intent to reduce the carbon footprint of their products. In the medium term, consumer understanding of carbon footprints will have increased and there will be a greater array of products carrying the Label. This allows the carbon footprint figures to play a more prominent role in comparisons between products and suppliers.

Does the PAS 2050 and 'Footprint Expert' include carbon emitted when the product is used?

The ‘Footprint Expert’ requirements of the Carbon Reduction Label and the underlying PAS 2050 all include the emissions during the use phase of a product or service. The inclusion of the use phase will increase consumer awareness and help them to reduce their impact when using products.

A company displaying the Carbon Reduction Label can chose to include tips for the consumer on how they can reduce the footprint of the product they are using, as well as other context on the drivers of emissions.

Does the carbon measured include that relating to packaging and recycling?

Yes, the standard currently measures the GHG emissions caused by the raw material production, manufacture, transport and disposal of packaging including any recycling.

How does the standard relate to existing product environmental footprinting standards, such as the ISO14000 series?

The PAS 2050 has been developed using the accepted principles of life cycle assessment. As part of the creation of an open standard, it aligns with the framework defined in ISO standards 14040 and 14041 for Life Cycle Assessment and the Life Cycle Inventory Analysis toolkit, as well as ISO 14064 on company greenhouse corporate accounting and ISO14025 on type III ecological product labelling. The Carbon Trust is actively supporting the development of new ISO standards

How often will the PAS 2050 be updated and will this mean that organisations using it will have to update their reporting every time it changes?

BSI has a requirement that a PAS standard is reviewed at least every two years to determine whether an update is required. As co-sponsors of the PAS (along with Defra) The Carbon Trust has committed to participating in this review.

In addition, the carbon footprinting projects taking place across the world are teaching us more about how the PAS applies to real products and real supply chains. This learning is fed into ‘Footprint Expert’ but is also fed into future developments of the PAS or any subsequent ISO or WRI product carbon footprinting standards.

What happens if ingredients used to make a product are flown in from abroad - are you counting air miles in the carbon footprint?

Yes. Establishing the carbon emissions relating to transport embedded in a product is built into the PAS 2050 at several stages: raw materials, manufacture, distribution and disposal. Transporting ingredients, whether flown, shipped or by road, would be included under the raw materials input.

Why isn't offsetting included in the footprint but renewables are?

The PAS 2050 is designed simply to measure the GHG emissions of a product and therefore only includes in its calculation the GHG impact directly attributable to the product. Should organisations wish to offset, they can do so outside of the PAS; of course, before an organisation can offset they need to know how much to offset, and the PAS provides this information.

When accounting for emissions from renewables, the organisation must now be able to demonstrate 'additionality' - that carbon emission reductions have occurred in addition to business as usual. For example, simply buying a “green tariff” would not give a carbon benefit above the grid average emissions of electricity, as there isn't certainty that the electricity supplied by the green tariff is in addition to the usual mix of generators which includes renewable energy supplied to the grid.

We are a B2B organisation, can we use the PAS?

Yes. The PAS 2050 has been successfully completed with a number of B2B companies.

The product life cycle for a B2B product is referred to under the PAS 2050 as a 'partial GHG emissions assessment' – and covers the life cycle up to the point at which the product leaves the factory gates (or the distribution centre).

The Carbon Reduction Label communicates the GHG emissions created in this 'cradle-to-gate' life-cycle and can be used by other organisations in their product carbon footprinting work.

Possessing a certified B2B footprint would allow a company to pass the figure to customers further down the supply chain that were completing product carbon footprinting projects themselves. We call this the 'chain of custody' model.

As a B2B company you may find the Continental Case Study relevant. This can be downloaded from the Carbon Trust website.

We are a service organisation - can we use the PAS 2050 or Carbon Reduction Label?

Yes, the PAS 2050 has been used to footprint services.

As a service organisation you may find the HBOS case study interesting. This can be downloaded from the Case study section of the website.

We are a SME organisation, can we use the PAS?

Yes. The pilot process has successfully concluded projects with SME organisations and Footprint Expert toolset is designed to make the footprint process increasingly cost effect for smaller and smaller organisations.

What is the reduce it or lose it clause? Or what are the reductions necessary to keep the Carbon Reduction Label?

Companies who use the Carbon Reduction Label must commit to reducing the carbon footprint of the Labelled product over a 2 year period. 'The Code of Good Practice for product GHG emissions and reduction claims' defines what constitutes 'reduction' in terms of commitments made by companies to reduce the carbon impact of their products and services. There is no fixed percentage reduction required - just to demonstrate a material, measurable reduction overall. This will need to be complied with to retain the use of the Label.

How much will it cost for a company to have a product analysed and then be allowed to use the Label?

The cost of conducting a pilot and having a product analysed varies. Factors that influence the costs include; the number and similarity between products being footprinted, the complexity and size of the supply chain(s) being assessed and the amount of data already available

Please contact Planet Ark for an indication of the cost and timeframe of projects already completed in the UK and the factors impacting the likely cost of projects in Australia including availability of data.

How much does it cost to use the Carbon Reduction Label?

There is a fee for the use of the Carbon Reduction Label to support its promotion to consumers. Please contact Planet Ark to find out more.

Can you help us find consultants who can help us establish the footprint?

Yes we can advise companies on approaches to finding a suitable consultancy to work with.

What does a project involve?

Two publications would be useful to a company that is beginning to think about a product carbon footprinting project:

• A Guide to PAS 2050 (downloadable from http://www.bsigroup.com/pas2050)
• “Product Carbon Footprinting and Labelling: A New Opportunity for Businesses”

What do I need to think about when starting a carbon footprint project or using the Carbon Reduction Label?

A company needs to consider:

• Decide what products or services are to be footprinted.

• Internal and external costs and resources involved in the development and certification of the product carbon footprint and the use of the Carbon Reduction Label.

• Our experience suggests it can be beneficial to start with a range of products from which you leverage the highest possible impact of carbon savings and the lowest cost per product:

  • Carbon reduction opportunities identified across the business;

  • The process learnings from conducting the project i.e. what has worked well in terms of conducting the product carbon footprinting exercise.

• Decide whether and how they would like to use Carbon Reduction Label e.g. on pack/point of sale/website. (Although this decision can be made further along the process).

• Be willing to sign up to the “reduce it or lose it” clause – where by if the product carbon footprint does not reduce over a two year period the Label is withdrawn.