Carbon Reduction Action Plan - Coursework Example

Report: Carbon Reduction Action Plan By Table of Contents Introduction 3 A Business’Carbon Footprint 3 The Need for Reducing the Business’ Carbon Footprint 4 Suitable Renewable Energy Technologies for the Organization 6 The Most Appropriate Renewable Energy Technology for this Organization 8 Business Case for Sustainable Development 9 Strategy for Sustainable Development 10 Vison for Sustainability 11 Declaration for Incorporating and Implementing Corporate Social Responsibility 12 Action Plan for Waste Management 14 Bibliography 15 Report From: Facility Manager of SA Company To: Board of Directors Re: Action Plan for Reducing Carbon Introduction The latest report from the International Energy Agency (2012) indicates that despite a drop in carbon emissions in 2009 as a result of the global financial crisis, carbon emissions increased worldwide in 2010. In 2011, carbon emissions in developing countries increased much faster than in developed countries (International Energy Agency, 2012). The Kyoto Protocol to the United Nations Framework Convention on Climate Change 1997 encourages countries to make an effort to reduce carbon emissions. Corporate social responsibility requirements for all businesses has now expanded to include a duty to reduce and control carbon emissions (Lee, 2008). In other words, as a business organization, this organization is bound by legal and corporate social responsibility requriements to reduce and control carbon emissions. This report will identify the ways in which a business’s carbon footprint is made up, why there is a need for this organization to manage and control its carbon footprint, options for appropriate renewable energy solutions, recommendations in light of the building’s condition, type and location and a business case for sustainable development. A Business’Carbon Footprint The term carbon footprint refers to the “emissions of carbon dioxide or greenhouse gases expresses in C02 equivalents” (Wiedmann & Minx, 2007, p. 3). Matthews, Hendrickson, and Weber (2008) developed a framework for all businesses to use in estimating their respective carbon footprints. In this regard, there are three tiers. Tier one carbon footprint estimates are associated with “producer” type companies with “direct emissions” from the combustion of “natural gas and petroleum” (Matthwes, et al., 2008, p. 5840). Teir 2 businesses are those that create emissions from the use of electricity and gas. Teir 3 businesses include the entire supply chain and could include both tier 1 and tier 2 businesses for which the tier 3 business is indirectly responsible for (Matthews, et al., 2008). In other words, a business can be both directly and indirectly responsible for carbon emissions. This business is a retail organization and although it does not directly consume carbon at the production gate, it does contribute indirectly by purchsing goods for retail from production gates that do. In the meantime, this business also directly emits carbon in the use of energy such as electricity from fossil fuels. All goods and services including food and household products as well as transport, business products such as ink, paper, computers and so on are produced with the emission of carbon (Hertwich & Peters, 2009). This organization provides household products and this is significant because a study conducted by Hertwich and Peters (2009) found that worldwide, household consumption accounts for 72% of all carbon emissions. Therefore as a provider of household goods, this business indirectly contributes to the largest source of carbon emissions. In addition, this business as a retail business, retailers contribute to a carbon emission in a number of ways. There is the direct emision of carboms from using fuels to indirectly contributing through employee travel or via the supply chain (Minahan & Sands, 2012). The Need for Reducing the Business’ Carbon Footprint There are two significant changes occurring in the market. First, there are countries such as the EU and the US that have established national targets for the reduction of carbon emissions. Secondly, even where there are no national targets, businesses are voluntarily measuring and reducing carbon emissions (Hamilton, Bayon, Turner, & Higgins, 2007). This trend is an indication that the reduction of carbon emissions is an asset, particularly since most countries receive tax concessions for reducing carbon emissions (Schultz & Williamson, 2005). Saudi Arabia is the 14th largest in the world’s C02 emissions. Saudi Arabia is the largest oil producing country in the world. As such, petroleum products represent the lion’s share of C02 emissions in Saudi Arabia (Boden, Marland, & Andres, 2011). In 2009, the Saudi government implemented an energy efficiency policy for the reduction of carbon emissions. This policy involves encouraging end-users to become more aware of carbon indicators as it appears on the labels of goods and to use products with the lowest indicator of carbon emissions (UNDP Energy & Environment, n.d.). In addition, consumers all over the world are becoming increasingly aware of the dangers of carbon emissions and there is a movement toward purchasing goods and services that are associated with the lowest possible carbon emissions. Aware of the interests of consumers and the fact that climate change is the most important factor for businesses, businesses are focusing on managing and reducing carbon emissions (Delay, 2007). Therefore, businesses cannot afford to be dismissive of carbon emissions. All business organizations contribute directly or indirectly to carbon emissions. With Saudi Arabia’s high ranking in the world’s carbon emissions estimates and the government’s policies toward carbon emissions, this company has a duty to manage and reduce its own carbon emissions. Consumers are also increasingly demanding products with little or no carbon emissions. Thus in addition to meeting government policies and international standards for the reduction of carbon emissions, organizations also have economic and ethical reasons for reducing carbon emissions. The ethical reasons are linked to fulfilling corporate social responsibilities and the economic reasons are linked to satisfying customer demands, remaining competitive and saving money. Money is saved by converting to renewable energy sources which involves energy efficient models. This means that the organization itself can produce more with less energy consumption and while lowering its carbon emissions will also lower its overhead costs (Herring, 2006). Suitable Renewable Energy Technologies for the Organization One of the main sources of renewable energy technologies is renewable electricity. Renewable energy encapsulates technologies using sun, wind, waves, rivers, tides and “the heat from radioactive decay in the earth’s mantle” together with “biomass” (World Nuclear Association, 2013). In this regard, hydro-electric power which is generated from rivers is an established source of renewable energy in places such as Norway and Canada and to a lesser extent in Switzerland, Sweden, the USA and Australia (World Nuclear Association, 2013). The problem with hydropower is that “storage resoviors” are develop to maintain in industrialized cities (World Nuclear Association, 2013). This could be problematic for a business in Saudi Arabia where oil production and oil related activities are maintained at a high level. Wind energy is another source of renewable energy and there are thousands of wind turbines for renewable energy operating in Europe (World Nuclear Association, 2013). However, as the World Nuclear Association (2013) reports there are some set backs with using wind energy. First, there is the requirement for a presistent wind speed which depends almost entirely on the forces of nature. Secondly, wind turbines require traditional electricity to back it up (World Nuclear Association, 2013). Wind energy is therefore not a reliable source of renewable energy for any business as its ability to support peak loads is highly tenable when weather conditions can change without notice and for protracted periods. The business will have to rely on electricity produced by fossil-fuel combustion for the most part and this defeats the purpose of transforming to renewable energy sources and technology. Solar energy is by far the most popular source of renewable energy technology. The photovoltaic (PV) systems is the “best-kown method” and it “utilises light, ideally sunlight, acting on photovoltaic cells to produce electricity” (World Nuclear Association, 2013). Komoto (2009) argues that if only a small area of the world’s deserts were covered with PV proceses it would supply more than sufficient energy for the world’s energy needs. This is particularly important for any business in Saudi Arabia as Saudi Arabia is a known as a desert land as it is a country “dominated by desert” (Jones, 2011, p. 18). Solar energy is not only used for generating electricity efficiently and at a reduced cost, but also for heating water. There are two types of solar water heating technologies: active and passive (Energy.Gov, 2012). Regardless of whether a passive or active solar water heating system is used, they are free to use once purchased as they use the sunshine as a source of energy. Active solar water heaters can be direct or indirect circulating systems. The direct circulating system has a pump that circulates water via water collectors throughout the building and this is particularly useful in areas where temperatures do not fall below freezing. Indirect water heating systems contains a pump that circulates cold water through a heating system via collectors which heats water that runs throughout the building. This source is particularly useful in areas where temperatures drop below freezing (Energy.Gov, 2012). Passive solar water heaters are also of two types. One type is known as the “integral collector-storage passive system” and this is more efficient in areas where temperatures do not drop below freezing (Energy.Gov, 2012). The second type of passive water heater is the “thermosyphon systems” which encapsulating water flowing into the equipment as “war water rises and cooler water sinks” (Energy.Gov, 2012). The thermosyphon system typically cost more than intgral collector-storage systems (Energy.Gov, 2012). Regardless of whether or not an active or passive solar water heating system is used, businesses which typically do not need a high supply of hot water can save significantly more money in overhead by adopting and installing solar heating systems. The Most Appropriate Renewable Energy Technology for this Organization The PV system is the most highly recommended for this organization for two main reasons: it is easily adapted, and it is consistent with Saudi Arabia’s plans for renewable energy solutions. As reported by the World Nuclear Association (2013): Sales of solar PV modules are increasing strongly as their efficiency increases and price falls, coupled with financial subsidies and incentives. PV mudules are particularly popular because it uses the sun’s heat to produce electricity. Many countries including the US, Japan, Europe, China and South Korea are connecting solar PV plants to their electrical supplies. More importantly, flate plates are used on buildings for using this source of renewable energy. These plates can be "re“dily mounted on buildings without any aesthetic intrusion or requiring special support structures” (World Nuclear Association, 2013). Therefore, this organization can easily transfer to PV modules wihout having to make any changes or adjustments to its building. According to Meza (2013), the Saudi Government is now in the fifth phase of installing PV plants to connect with its electricity grids throughout Saudi Arabia. Saudi Arabia intends to start the fifth phase of the solar energy programme in early 2014. The plan is to ensure that at least one third of energy in Saudi Arabia is provided by solar energy by the year 2035 (Clover, 2013). The fifth stage involves procurement. The previous stages involved industry transfers of solar energy and planning and preparing for whole country transformation. The whole country transformaiton begins in 2014 (Clover, 2013). This organization can therefore take a realistic approach to transforming to renewable energy via the use of PV systems by purchasing and installing the necessary plates. Not only will the organization be ready for transforming to this renewable energy technology, but will also receive incentives in the form of carbon tax reduction and credit facilities for transforming are readily available to organizations that adopt the necessary infrastructure changes for reducing carbon emissions by converting to renewable energy technologies (UNDP Energy & Environment, n.d.). As reported the changes necessary for adopting PV systems are minimal and can be accomplished without having to restructure the building as the plates required are compatible with any building type. This organization should also adopt any of the passive or active solar water heating systems. This is an organizaiton that only requires water for employees on limited basis. Employees only use water for the lavotory and for drinking. Therefore the only hot water used is for washing hands and cleaning which is minimal compared to household usages. It is therefore entirely unnecessary to play the cost of electric heating at this time. Since solar water heating is avialable immediately, this organization should purchase the same and make this transformation immediately. Funding is available for these purchases and tax incentives are also available for transforming to solar heating systems (UNDP Energy & Environment, n.d.). The company will save on electricity bills while we await the installation and availability of PV plants systems. Business Case for Sustainable Development The business case for sustainable development is obvious. Sustainable development via transforming to renewable energy solutions positions the firm in the role of leader in the community and among competitors. Moreover, by adopting renewable energy technologies the organization is poised toward innovative trendsetting and innovation lends itself to “productivity”, “competitive busienss strategies”, “profits” and shareholder value as the end results, with sustainability inititatives as the means to those ends” (Willard, 2004, p. 279). Therefore, this business is not engaging in a separate project by adopting sustainable development practices via the use of renewable energy technologies. Instead, this organizaiton is using sustainable development as a means of enhancing its business strategies. The strategy, vision, declaration and action plan will bear this out. Strategy for Sustainable Development This organization can adopt a strategy for sustainable development that directly and indirectly contributes to the reduction of carbon emissions. As a tier 3 organization, this organization can indirectly reduce carbon emissions by ensuring that products purchased in the supply chain for retail purposes are monitored and purchased on the basis of carbon information. This company can limit purcahses of retail products for sale that are smart products that were produced via clean technologies where possible (Weidema, Thrane, Christensen, Schmidt, & Lokke, 2008). As previously noted, it is well documented in the literature that consumers are becoming more and more carbon conscious. We can also contribute to this consciousness by insisting that all of the products we purchase for resale to our customers have clear C02 labels. We can also satisfy our consumers’ need for smart products by controlling the C02 standards for our shelves. We can also change our habits within the organization by educating our employees via an action plan that clearly incorporates waste management and energy efficiency. For example, we need to ensure that lights are not left on needlessly. For example, while the warehouse is not in use there is no need to leave the lights burning. We can also adopt energy efficient lights. We can also adopt a policy in which computers are place on energy efficient settings. By practicing sustainable development via energy saving policies in the workplace, we also sending employees out into the world with energy efficient behaviours and are thus both directly and indirectly contributing to the reduction of carbon emissions. It is also proposed that this organization purchase and adopt solar heating systems with a view to sustainable development via renewable energy efficiencies. This will not only ensure that water is not wasted, but also that energy is not wasted and that we are not unnecessarily burning fossil fuels to generate hot water which we rarely use. Not only will the organization obtain funding for this system, but will also receive tax incentives and will save on energy bills. This saved money will be put to more productive use for the tripple bottom line which invariably means profits. The greater the reduction in overhead expenses the greater the opportunities to gain a profit. To further enhance this opportunity for profits, we can cut overhead by reducing our energy bills without sacrificing the energy needed for production. We have to run our computers, cash registers, telephone switchboards and so on with energy on a constant basis. We also have to use airconditions to cool the building for the comfort of our employees and our customers. Therefore, we must be poised to adopt the PV model and as previously mentioned this will not only be consistent with Saudi Arabia’s plans for the future energy solutions, but it will also be consistent with our energy needs. Only, it will cut back on costs as renewable energy is cheaper and more efficient and does not run on the combustion of fossil fuels and will therefore reduce our carbon footprints. Vison for Sustainability This organization’s vision for sustainability is based on transforming the way that we do business throughout the entire supply chain. We do not want to simply insist that suppliers and producers establish a standard for the reduction of carbom emissions, we want to demonstrate that we too are reducing carbon emissions and are taking proactive steps toward this vision. We also want to asssure our customers that although we do not produce the goods that we supply to them ourselves, we make certain that they are smart products and do not unnecessarily contribute to carbon emissions. Ultimately, we want to lead by example. We want to demonstrate that we are carbon conscious and realize that our customers are also carbon consicous and that we want to ensure that they can trust us to make the smartest product readily available to them. At the same time, we are determined to run our business operations with the reduction of carbon emissions as a means to be innovative, productive and profitable. In other words, sustainable development is our primary focus and as we seek to satisfy our customer’s needs for smart products, we are adopting smart practice in-house as well. This vision requires team building and team cohesion and cooperation from the top down. Therefore all of our employees will work together to ensure that we perserve energy and manage waste efficiently and effectively. Therefore, our leadership in terms of sustainable development begins in the workplace and filters out toward our daily personal lives and throughout the supply chain. In other words, sustainable development begins from the production gates and travels all the way here to how we operate our business and conduct ourselves at work and at home. Each and everyone of us want to be innovative trend setters in the reduction of carbon emissions. As Delay (2007) informs, the reduction of carbon emissions can only be accomplished through market and social cooperation. This is our vision and therefore our plan for this organization. Declaration for Incorporating and Implementing Corporate Social Responsibility Corporate social resonsibility (CSR) is defined as good corporate citizenship which involes living: …up to clear constructive visions and core values. They [good corporate citizens] treat well the entire range of stakeholders who risk capital in, have an interst in, or are linked to the firm through primary and secondary impact through developing respectful, mutually beneficial operating practices and by working to maximise sustainability of the natural environment (Schwartz, 2011, p. 129). Stakeholder theory therefore demands that a good corporate citizen is concerned with the interest of a broad class of stakeholders (Schwartz, 2011). In making a business decision, the good corporate citizen takes account of how that decision will impact shareholders, consumers, employees, the government, and the community in which it does its business in. It is therefore this organization’s duty to take account of the shareholder’s interest in realizing a profit and balance that with the impact of carbom emissions on the state’s policies, the consumers’ wishes and our employee’s need to work in a healthy and safe environment and to be assured of continued employment and the members of the community’s right to live in a healthy and safe environment. If we ignore the interest of the community, the government, the employees and the consumers, the shareholder’s expectation of maximising profits will be compromised. After all, it is the state that provides licenses and issues penalties for failure to comply with policies. It is the employee who produces for the benetif of shareholders and it is the consumer and members of the community that support business operations and facilitate its success. We should therefore declare that this organization has adopted carbmon emissions reduction as a major part of its corporate social responsibility framework. In doing so, we declare that our producers, suppliers, employees and management are held to a carbon footprint standard for sustainable development throughout the supply chain. We should declare that as a part of corporate social responsibility framework we are consciously reducing our carbon emissions by adopting renewable energy technologies and focusing on product that are smart in terms of its production by the use of carbon emissions. We should also declare that we are monitoring and measuring our carbon emisisons and setting standards for the community and our competitors. Our declaration should also invite the community to join us in monitoring and reducing carbon emsisions and energy efficient behaviours as we move ahead in the 21st century. We will undertake to publish reports documenting our sustainable development solutions annually for the satisfaction of all stakeholders. In other words we will not merely pay lip service to our corporate social responsibility for sustainable development, but we will also be accountable and transparent in our endeavours. Action Plan for Waste Management Our action plan for waste management will include the proper disposal of physical waste, conserving energy and resources. While the city regulates the collection and disposal of waste generated at our business, we can control the extent to which we generate and store waste for collection. In this regard, we have already established a waste disposal system in which recyclable waste is disposed of in one area and ordinary waste is disposed of in another. We can however, reduce the amount of waste produced by cutting back on the number of boxes, packages and bags used for consumer purchases. All too often, one item is placed in one bag and we are therefore contributing to the unneccesary acumulation of physical waste in the community. Another method of reducing waste in the community is to convert to the electronic reciept method. Although this is not always suitable for all consumers, it can cut back on our generation of paper copies and can meet the needs of our technologically sophisticated customers. In converting to electronic reciept options for our customers and suppliers, we can also generate electronic billing systems to cut back on paper waste as this only contributes to the destruction of forestry for the generating of paper. Although paper is recyclable, we can contribute to our own waste elimination by using modern technologies to reduce this kind of waste. In managing energy waste, the solution is to implement an energy conscious plan. We need to display signs indicating that once an area, such as the lavatory and the warehouse is not in use, the lights should be turned off. Similary, all computers should be set to energy efficient templates. Mobile telephones should not be charged at the workplace and in fact, should be set to off while working, unless they are company issued and are necessary for business operations. Moreover, air conditions temperatures need not be set to freezing temperatures and can be set to 70 degrees and on automatic to allow them to turn off when the rooms reach the desired 70 degrees. This will reduce the amount of energy needed to sustain human comfort for employees and customers. In addition, water waste management is entirely important for sustainable development practices. In this regard, hot water should only be used where necessary. We should consider installing automatic toilet flushers and water spickets in the lavatory to reduce the amount of hot water used to wash hands. We should also install an automatic paper system in the lavatory to control the amount of physical waste used in the lavatory. In other words, our action plan for waste disposal involves small, cumulative steps that reduces carbon emissions in small and meaningful ways for the benetif of the business and all of our stakeholders. Bibliography Boden, T.A.; Marland, G. and Andres, R.J. (2011). Global, Regional, and National Fossil-Fuel C02 Emissions. Carbon Dioxide Information Analsysis Center, U.S. Department of Energy. [Online 21 November 2013] http://cdiac.ornl.gov/trends/emis/tre_sau.html Clover, I. (31 October 2013). Saudi Arabia’s Solar Plans Could be Realized with PV Price Falls. PV Magazine. [Online 21 November, 2013] http://www.pv-magazine.com/news/details/beitrag/saudi-arabias-solar-plans-could-be-realized-with-pv-price-falls_100013281/#axzz2lIr03Ng1 Delay, T. (2007). Carbon Prints in the Supply Chain: The Next Step for Business. In Marshall, N. (Ed.) Climate Action. 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[Online 21 November 2013] http://www.world-nuclear.org/info/Energy-and-Environment/Renewable-Energy-and-Electricity/ Read More