Promotion, development and vision of carbon neutrality

Mark Fraser, Global Portfolio Manager, Sustainability, BSI Group Email: mark.fraser@bsigroup.com Tel: +44 208 996 7522 Taiwan EPA conference Target Carbon Neutrality 9th-10th MARCH 2011

How did we get here? Carbon Neutral Beer!

About BSI
Royal Charter Company, non-profit distributing, with Public Company type governance framework Core values: Independence, Integrity, Innovation Main business activities: Facilitate, promote, sell and distribute standards Standards advisory services Testing and certification Register, approve and affix quality marks Systems assessment services Product and materials testing Training

Serving 70,000+ customers

2,300+ employees in 129 countries

51 offices globally

London

Washington Mexico City Dubai New Delhi Sao Paulo

Beijing Taipei Singapore

Sydney

About BSI
Oldest National Standards Body in the world founded in 1901 Founding member of ISO and CEN Portfolio of more than 32,000 standards BSI covers all markets, industries and sectors Originator of many major, global standards, including: ISO 9001 (Quality) ISO 14001 (Environmental Management) ISO 27001 (Information Security) BS 25999 (Business Continuity) BS 8900 (Sustainability) PAS 2050 (Carbon Footprinting) PAS 2060 (Carbon Neutrality)

BSIs GHG Emission Verification

BSI has been conducting Greenhouse Gas Emission Verifications Since 2005 in Europe, Asia, North & South America Clients include: Samsung SDI British Sugar British Beer & Pub Association British Aerospace BSO Polska Castle Cement CEMEX Confederation of Paper Industries Energetyka Cieplna Opolszczyzny RWE Total Taiwan Semiconductor Industry Association Taiwan Power Company

(Selective) History of Emissions Inventories

Event US Clean Air Act Kyoto Protocol GHG Protocol UK ETS EU ETS ISO 14064 (parts 1-3) PAS 2050 PAS 2060 Description First emission trading scheme National inventories, Emission trading schemes, Carbon Accounting & Carbon Offsets born CDM/JI Carbon Neutral claims begin Industry standard for organizations (WBCSD/WRI corporate standard) National GHG Emission Trading scheme for heavy industrial emitters (CO2 only) Regional GHG Emission Trading Scheme International standards for organizations, projects, verification Product /Service Carbon Footprinting Carbon Neutrality Claims Year 1990 1997 1997 (ish) 2001 2002 2005 2006 2008 2010

UNEPs Climate Neutral Network Network of companies, cities, countries, Offering carbon reduction and offsetting services Declaring carbon neutrality Advice for industry by sector Publications for consumers in several languages Links

Avis Vehicle Rental

Carbon Neutral company since 2000 (2002) in Europe strong part of firms CSR agenda Offset through climate-friendly or forestry projects Low carbon emissions fleets in most EU operations Providing emissions data on fleet use to corporate clients Avis South Africa Carbon footprint for the period October 2007 to September 2008 - WRI/WBCSD GHG Protocol Scope 1 & 2 emissions only (9968 tCO2e for 2009) Officially CarbonNeutral accredited in line with international standards (CN Protocol)

Nature Air Airline

Worlds first carbon neutral airline in 2004 GHG emissions inventory (using IPPC approach) Based on all fuel burned per calendar year All flights carbon neutral - not per passenger or by use, but aggregated Offset from local forestry projects in Costa Rica (FONAFIFO) Govt. recognised (like REDD+) Additional Sustainability Aspects of Offsets: tropical forest conservation, protection of biological corridors, local communities and public education 2011 still claiming carbon neutrality despite 20% p.a. growth Improved fuel efficiency by 7% in the last 3 years Flight planning improvements, Efficient planes (Twin Otters) Biofuels for ground fleet vehicles

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HSBC Financial Services

First FTSE 100 (UK) company to claim global carbon neutrality in 2005 Internal reductions four-year targets for 2008-2011 for use of energy and CO2 New buildings are included from day one of operation, disposals counted until the sale is complete Data centres next step for tackling (excluded from reduction targets prior to 2009) Offset purchasing Allocate VERs to same period as Carbon Neutral claim
2.5% - 10% uplift on emissions to allow for uncertainty and quality issues in measurement (from IPCC Good Practice Guidance for National GHG Inventories)

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Credit Suisse Financial Services

GHG Neutral in Switzerland in 2006 GHG Neutral globally since 2010 Energy efficiency Buildings, IT Infrastructure Renewable energy Quantified using the VfU-Standard 2007 Scope 1, 2, 3

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Cities for Climate Protection

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ICLEI Local Governments for Sustainability Initiated as part of Agenda 21 after the Rio Earth Summit (1992) City specific standardized approach to reduce GHG emissions Monitoring, measurement, performance reporting International Local Government GHG Emissions Analysis Protocol (IEAP)

Climate Positive
Urban development initiative backed by The Clinton Foundation Using new buildings to generate power for cities to produce more energy than used Building retrofit for existing buildings Waste management Outdoor lighting Transportation Water - grey-water usage CO2 sequestration Performance standards for large scale community developments

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Vxj - City/Community
Declaration to become fossil free city 1996 CO2e reduction of 34 percent per inhabitant from 1993 = 3.2 tonnes per capita as opposed to 8.5 for EU average Targeted 55 percent reduction per inhabitant to 2015 from 1993 No cost to regional domestic product (economic indicator) - claim to have decoupled carbon from growth Biomass for district heating - 80 % comes from renewable energy sources. Biofuels for transport Climate Neutral Network member, Covenant of Mayors, Cities for Climate Protection

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Low Carbon Innovation Centre & CRed

Carbon reduction pledges from the community Formed by the East of England Development Agency in 2003 University of East Anglia (latest climate change expertise) Linked with Carbon Connections in 2008 Domestic and business emissions including transport, energy consumption, food, waste and water >150,000 individuals >140,000 tonnes of carbon emissions savings First carbon neutral beer https://wirral.cred2.co.uk/CRed/

Ipswich Town - Football club

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Yahoo software/IT

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Dell IT/computing
August 2008 announced carbon neutrality 5 months early Scope 1, 2 primarily buildings energy-efficiency facilities green electricity purchases from Power cos. Investments in wind power in the U.S., China and India 645 million kWh to avoid more than 400,000 metric tons of CO2e. Intentions for scope 3 working with supply chain

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Silverjet Airline
Carbon Neutral Airline of 2007 by the Institute of Transport Management (ITM). Budget business class-only airline Mandatory carbon offset contribution within its ticket prices

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PAS 2060
Specification for the demonstration of carbon neutrality
Drivers: Need for a common methodology, irrespective of industry sector Enable consistent communication of carbon neutral status Avoid confusion within companies, across industry sectors and among consumers Provide rigidity to claims of carbon neutral status Give credibility to claims give customers confidence that no false claims are made

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"We welcome PAS 2060 as a robust and transparent means of demonstrating carbon neutrality."
Roland Hill, Marks and Spencer

Stakeholders Steering Group

Association of British Certification Bodies (ABCB) Aviva plc Department of Energy and Climate Change (DECC) Carbon Clear limited The CarbonNeutral Company The Carbon Trust The Co-operative Group Eurostar Group Limited Good Energy Group plc Institute of Environmental Management and Assessment (IEMA) International Carbon Reduction and Offset Alliance (ICROA) Marks and Spencer plc Mineral Products Association The Concrete Centre School of the Built Environment, Oxford Brookes University UPM-Kymmene Corporation

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Review Panel: 130 organisations (Approximately 20 non-UK organisations, with strong participation from Taiwan due to high level of interest)

PAS 2060 Specified Declarations

Once carbon neutrality has been demonstrated a declaration of achievement of carbon neutrality in accordance with the requirements of PAS 2060, can be made. It is important to recognise that: A declaration of achieved carbon neutrality can only be retrospective, i.e. will relate to activity undertaken during the application period Carbon neutrality is not necessarily ongoing and any reference to future performance can be no more than a declaration of commitment As part of the commitment to openness, the making of claims of carbon neutrality is specifically provided for in PAS 2060 The wording of permissible declarations in PAS 2060 is wholly prescribed in the interest of uniform, directly comparable presentation
Commitment Achievement Both (unified) Third party certified Other party certified Self declared

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Who can use PAS 2060?

PAS 2060 is intended to be used by any entity, including: Regional or local government Communities Organizations/companies or parts of organizations (including brands) Clubs or Social Groups Families Individuals PAS 2060 is applicable to the demonstration of carbon neutrality in respect of any subjects selected and defined by the applying entity, including for their: Activities Products Services Buildings Projects and major developments Towns and cities Events

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British Trade & Cultural Office

First PAS 2060 certification in Taiwan Scope 1, 2, 3 (BTCO office in Taipei) Certification of claim conducted by BSI Taiwan 1st application period full year 2009 Model 3 declaration using 100% offset Ongoing detailed commitment to carbon neutrality and targets for reduction

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Citrica Commercial Cleaning

Existing CSR commitments, differentiating on this angle Carbon footprint calculated with ISO 14064-1 Holder of ISO 14001 certification and Carbon Trust Standard 1st PAS 2060 certification in the world with Carbon Clear Methodology allows for growth in absolute carbon emission in cases where organizations expand, using benchmarks. Benchmarking against turnover & numbers of staff

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UK Fast IT Services
October 2010 UKFast became carbon neutral Scope 1 & 2 (head office and data centres - including all devices and daily operational power consumption) No extra charge for clients Inventory calculated to Defra and Department of Energy and Climate Change guidelines ISO14064 as guidance for the monitoring and management of carbon footprint. Quarterly carbon offsets purchased to cover growth and to offset the emissions of all new clients. Annual process of reconciliation to ensure coverage actual emissions

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Carbon Neutrality now - 2011

Carbon Neutrality is growing organically UNFCCC process is progressing slowly Voluntary action the only way for responsible organizations and brands Needs a kick-start, needs government intervention Economic downturn in UK hasnt helped, innovation is reduced China though has carbon intensity targets product based carbon intensity assessments preferred option Taiwan has leadership role to play too Carbon neutrality is a stepping stone, enabling consumer choice, to enable lower carbon consumption pathways

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Vision for Carbon Neutrality

Short term: Differentiation for the leaders in sustainability Medium term: Adoption of more rigorous standards to continue to differentiate Better quality offsets Bolder claims, wider scopes Long Term: Eventual irrelevance of offsetting as all companies and entities will become low carbon Carbon neutral claimants will have to generate their own offsets, to generate their own energy and internalise their own fugitive emissions

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