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Report
Optimised Carbon Management
30th April 2014
Introduction to
Carbon Credentials
Professional Services Overview
People, Processes, Technology
Our industry recognised People are expert in their fields of
compliance, carbon, energy and sustainability.
We develop robust & efficient Processes for data
management and analysis to enable our clients to
focus on ‘action’ and ‘improvements’ not data and
compliance.
We use Technology for data storage and advanced analytics
and visualisation to provide powerful analysis and outputs.
Where Next For Your Reporting?
Descriptive
Analysis
Looks at past
performance and
understands that
performance by mining
historical data to look for
the reasons behind past
success or failure.
Predictive
Analysis
Predictive analytics
answers the question
what will happen.
Historical performance
data is combined with
rules, algorithms, and
occasionally external data
to determine the
probable future outcome
of an event or the
likelihood of a situation
occurring.
Prescriptive
Analysis
This goes beyond
predicting future
outcomes by also
suggesting actions to
benefit from the
predictions and showing
the implications of each
decision option.
E.g. you may find that there is a risk that you will not meet your reduction targets
because of a few select assets. Therefore we can help identify where and what you need
to focus on for specific performance improvement on these identified assets.
Key Managed Service Clients
Key Public Sector Clients
Higher Education Panel
Ola Bankole
Sustainability Manager, Bloomsbury Colleges Group
Group
Fabia Jeddere-Fisher
Energy Engineer, The University of the West of England
of England
John Taylor
Senior Energy Engineer, Carbon Credentials
Trends in Carbon
Management Planning
Your Reasons for Attending
The Higher Education Balancing Act
The Energy
Trilemma
The Value at Risk
Energy Costs (£)
Carbon Emissions (CO2/m2)
Business as usual
Energy & Carbon
Performance
Gap
Carbon Management
Optimisation
Time
The big picture
Students in Higher Education
3,000,000
2,493,415
2,500,000
2,501,295
2,496,645
2,396,050
2,131,110
2,200,175
2,236,265
2,281,235
2,304,700
2,306,105
2005/06
2006/07
2007/08
2,340,275
2,042,580
2,000,000
1,948,135
1,500,000
1,000,000
500,000
-
2000/01
2001/02
2002/03
2003/04
2004/05
Data from HESA EMR.
2008/09
2009/10
2010/11
2011/12
2012/13
Carbon Emissions from Energy
5.5
%
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years.
Average Carbon Emissions from Energy
per m2
Differences in metrics
8.2%
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years.
CRC Participant Performance
9%
2%
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years.
Regional Performance
Average
Carbon
Emissions per
Square Metre
kgCO2/m2
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years, of which 26 are in attendance today.
Regional Performance
Average Carbon
Emissions per
FTE Staff +
Student
tCO2/FTE Staff
+ Student
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years, of which 26 are in attendance today.
Regional Performance
Average
Carbon
Emissions per
£1m Turnover
tCO2/£1
million
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years, of which 26 are in attendance today.
Attendees’ Performance
Carbon Emissions
per m2
5.8%
Overall Carbon
Emissions
4.2%
FY 2012
Carbon Emissions
per FTE Staff +
Student (tCO2)
Carbon Emissions per
Million £ Turnover
(tCO2)
National Average
1.38
92.8
Attendee Average
1.20
89.7
Data from HESA EMR. Includes 154 HEIs that have submitted returns for four years, of which 26 ar
Evolution of the CMP
Static
Dynamic & flexible
Evolution of the CMP
Dynamic & flexible
Scope 1 & 2 only
Scope 1,2 & 3
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Absolute Targets
Relative Targets
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Relative Targets
HEFCE Controlled
University Driven
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Relative Targets
University Driven
Isolated
Context &
Collaborative
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Relative Targets
University Driven
Technical
Context &
Collaborative
Technical &
Engaging
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Relative Targets
University Driven
Context &
Collaborative
Technical &
Engaging
Theoretical
Practical
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Relative Targets
University Driven
Context &
Collaborative
Technical &
Engaging
Practical
Standardised
Bespoke
Evolution of the CMP
Dynamic & flexible
Scope 1,2 & 3
Relative Targets
University Driven
Context &
Collaborative
Technical &
Engaging
Practical
Bespoke
Opportunities &
Barriers to High
Impact Carbon
Management Plans
Opportunities &
Barriers
What could
you achieve
with an
optimised
CMP?
• 3 to 5 answers for each question per table
Opportunities &
Barriers
What could
you achieve
with an
optimised
CMP?
What is
inhibiting
your ability
to achieve
this?
• 3 to 5 answers for each question per table
Opportunities &
Barriers
What could
you achieve
with an
optimised
CMP?
What is
inhibiting
your ability
to achieve
this?
• 3 to 5 answers for each question per table
• Weight each answer: 1 (not important) to 7
(very important)
Higher Education
Panel Session:
Ola Bankole
Sustainability Manager, Bloomsbury Colleges
Group
Fabia Jeddere-Fisher
Energy Engineer, The University of the West
of England
John Taylor
Senior Energy Engineer, Carbon Credentials
Fabia Jeddere-Fisher
Energy Engineer, The University of the West
of England
Aspirations
Existing CMP
• Originally written in 2006 (Part of Carbon Trust Pilot study)
• Latest revision April 2012 (to include Scope 3)
• Owner: Energy Manager
• Approved by: Head of Facilities
Aspirational CMP
• Campus specific Annexes to main CMP
• Senior-level support to secure financing.
• ‘Carbon road-map’ for each campus using MACC.
Engagement
• Utilise existing leadership
• Get the right timing
• Involve the right people
Vision
Policy
Strategy
Go beyond Carbon
• Outstanding Learning
• Ready and Able Graduates
• Research with impact
• Strategic Partnerships
• Green Financial Reporting
Marginal Abatement Cost Curves
How to interpret a MACC
Higher Education
Panel Session:
Ola Bankole
Sustainability Manager, Bloomsbury Colleges
Group
Fabia Jeddere-Fisher
Energy Engineer, The University of the West
of England
John Taylor
Senior Energy Engineer, Carbon Credentials
Masterclass:
Measurement
Measurement and Verification (M&V)
Masterclass
The focus of this masterclass is to help understand:
•
The principles of measurement and verification
•
Why it’s important to the success of your Carbon
Management Plan
•
How to start creating a measurement and verification
plan
•
The data collection requirements for effective
measurement and verification
•
How to decide if measurement and verification is right
for you
The Principles of Measurement and
Verification
M&V involves calculating ‘what would have happened’ without
the project
Project
implementation
during
Christmas
shutdown
The Principles of Measurement and
Verification
M&V involves calculating ‘what would have happened’ without
the project
Change in
static
variable
Project
implementation
during
Christmas
shutdown
When to apply M&V
IPMVP (International Performance Measurement and
Verification Protocol) allows flexibility for all
project types
Strategic view
•
•
IPMVP option C – measure all parameters and demonstrate
overall impact of energy efficiency work
Verify performance every 12 months
Individual project view
•
•
IPMVP option A or B isolates a project and defines
balance of measurements vs. assumptions
Measurement period can be just a few seconds
Both involve statistical analysis of historical trends and
impacts
Measurement and Verification in 5 steps
1. Create a plan
• What is the project?
• Who is interested in the
project performance?
• What baseline data is
available?
• What future events or
variables might affect
Value
of M&V at this stage
performance?
• Higher accuracy of
calculation
• Helps assess value
• Clearer understanding of
project risks
Measurement and Verification – Data Collection
Component
Potential Data Requirements
1. Energy &
Financial
Data
• Electricity, gas, water, heat
• Half-hourly, invoice and manual meter
reads
2.
Consumption
Drivers
•
•
•
•
3. Static
Variables
4. Project
Details
Degree days
Occupancy
Student numbers
Financial metrics
• Building characteristics
• Building refurbishments, new builds and
extensions
• Buildings sold or demolished
• Changes to operating hours
• Space utilisation changes
• New high energy using equipment
•
•
•
•
Expected cost saving
Expected carbon saving
Investment required
Responsibility
Measurement and Verification in 5 steps
1. Create a plan
• Will future finance be
dependant on project
2. Agree plan with
stakeholders
success?
• Will success support
engagement?
• Balance cost vs. accuracy
• Define period and variables
Value of M&V at this stage
• Increased transparency –
helps with understanding
of risk
Measurement and Verification in 5 steps
1. Create a plan
• The plan must be agreed
prior to implementation
2. Agree plan with
stakeholders
3. Implement
project(s)
• Ensure that the final
design and installation
includes the necessary
monitoring components
Value of M&V at this stage
• Keeps focus on energy
savings
• Reduces risk of poor
commissioning
Measurement and Verification in 5 steps
1. Create a plan
• Through the measurement
period, ensure all
2. Agree plan with
stakeholders
3. Implement
project(s)
4. Monitor
measurement
factors are being
recorded
• Periodically review data
flows
Value of M&V at this stage
• Keeps focus on energy
savings
• Provides an early warning
of under-performance
• Reduced risk of data gaps
Measurement and Verification in 5 steps
1. Create a plan
• Use the agreed plan to
assess the impact of
2. Agree plan with
stakeholders
3. Implement
project(s)
static factors and
consumption drivers
• Communicate data
appropriately with all
stakeholders
4. Monitor
measurement
Value of M&V at this stage
• Provides robust and
verifiable feedback to
5. Verify savings
and report
stakeholders
• Proves savings and
stimulates further
Getting started with M&V
An optimised CMP should have a clear strategy for M&V
• Assess historical data available
• Install metering and monitoring systems
• Understand short, medium and long term plans for
the estate
• Assess the concerns of stakeholders and what they
would consider ‘evidence’ of success
• Assess the value of utilising an approved process,
i.e. IPMVP, or the draft ISO 50015
Masterclass:
Funding your
Carbon Management
Plan
Funding the CMP
“
“
My main challenge
in delivering the
Carbon Management
Plan is lack of
available funding…
My Finance Director
wont sign the
cheques.
”
CMP
I need low risk projects
and plans to invest in
that will deliver good
cash-flows, a strong
Return on Investment &
Net Present Value
”
£££
Challenges and Questions to
consider
Fund the
project
or plan?
Tightening
Budgets
FD or VC?
Turning KWh &
CO2 into
Financial
Language
Internal & External
Financial
Opportunities
Deliverin
g a low
risk
investmen
t
Justifying the
Investment – M&V
The Value at Risk
Energy Costs (£)
Carbon Emissions
(CO2/m2)
Business as
usual
Energy &
Carbon
Performanc
e
Gap
Carbon
Management
Optimisation
Time
Building the Business Case
Building the Business Case
Mid case -20%
Cost of
capital
Year 1 cost saving
Mid case
Mid case +20%
3.5%
£2,876,000
£3,440,000
£4,645,000
6.0%
£1,908,000
£2,410,000
£3,205,000
8.5%
£1,350,000
£1,610,000
£1,875,000
15 Year NPV sensitivity
analysis
Funding the plan, not the
project
Total
CapEx:
£15.9m
Total
Annual
Cost
Saving:
£3.6m
15 Year
NPV:
£30.1m
Internal
Rate of
Return:
26%
Simple
Payback:
4.4
Finding the best investment
source
Internal funding routes
Energy Service Companies (ESCOs)
Technology Suppliers
HE specific funding routes
On-balance sheet funding options
Off-balance sheet funding options
Getting your plan funded
1.
Start with the end in mind
2. Speak to your funder in language they
understand
3. Fund strategically as well as on a
project basis
Masterclass:
Scope 3
Agenda
1. What are Scope 3 emissions?
2. What are HEFCE’s Scope 3 requirements?
3. How will this affect my University?
4. What does best practice look like?
What are Scope 3 emissions?
What are HEFCE’s Scope 3
Requirements?
“Carbon management strategies and plans: A guide to
good practice”
HEFCE 2010/02 (Updated September 2010)
• “Institutions are encouraged to measure a baseline
for scope 3 emissions and in the longer term we will
expect these to be included”
• Essentially, Scope 3 emissions management and
reporting was considered optional…
What are HEFCE’s Scope 3
Requirements?
“Reducing Carbon Emissions: Frequently Asked
Questions”
www.hefce.ac.uk (Updated June 2012)
•
“From 2012-13 there will be provision in Estates
Management Statistics (EMS) for the calculation of all
Scope 3 emissions ”
•
“All institutions are required to have a carbon management
plan (CMP) that contains…an implementation plan to achieve
carbon emission reductions in scopes 1, 2 and 3 including
timescales and resources”
What are HEFCE’s Scope 3
Requirements?
GHG Source/Line Item
Mandatory
Emissions calculations undertaken by
Water Supply

Higher Education Statistics Agency
Wastewater Treatment

Higher Education Statistics Agency
Waste

HEIs (provision of the emission figures
Travel

HEIs

Procurement consortia – and provided
Supply Chain (Procurement)
Source: HEFCE.ac.uk “Reducing Carbon Emissions FAQ”
is not mandatory)
to HEIs for inclusion in EMS returns
How will I be affected?
• Consider how this will change your current:
•
Carbon reduction strategy
•
Carbon Management Plan
•
Measurement techniques and methodology
•
Data management systems
•
Policies, processes and procedures
•
Allocation of roles and responsibilities
•
Baseline and target
•
Internal/external communications
• Also: “Carbon requirements under any future Capital
Investment Framework are expected to be more
What does best practice look like?
• In our engagement with HEIs, the following key issues have
been encountered:
1. Institutions are not regularly reporting publicly on
progress towards targets
2. Institutions are using the most convenient or established
method of measurement, even when more accurate techniques
exist
3. Institutions are not accounting in full for Scope 1 and 2
GHG sources, and are unable to provide justify the choice
of boundary for their CMP
4. Limited evidence is usually available to support GHG
assertions, particularly baseline emissions
5. Limited information management system documentation is
available
6. Typically no evidence of control procedures in place to
ensure accuracy and integrity of data
What does best practice look like?
Case Study: Water
Took a strategic approach to measurement and monitoring
through AMR:
 Monitor usage against reduction targets
 Bill validation
 Calculate emissions from water supply and wastewater
treatment
 Unforeseen benefits :
 Leaks identified immediately using alarms
 Related damage to property significantly limited
 Rebate entitlements
What does best practice look like?
Case Study: Waste
Realised that MI and potential recycling rates were as
important as cost:
 8 lots - each subject to a pay-by-weight stipulation
 Several responses received for multiple lots, each
offering pay-by-weight systems
 Waste audits internally 3 times a year
 Benefits:
 Detailed composition and weight data for all waste
streams
 Engaged students and staff
 Provides a means of identifying and prioritising waste
reduction and recycling strategies and provides strong
evidence to support business cases.
What does best practice look like?
Case Study: Staff
Commuting
Case Study: Business
Travel
 Staff
travel-to-work
survey for one week each
October
 In 2010, the response rate
was 16% of all staff
 Survey analysis includes
calculating the emissions
generated by respondents’
travel.
 Results
are
extrapolated
across
staff
then
all
 All business travel by
rail and air now purchased
centrally by a dedicated
travel management company
 Corresponding emissions
included in monthly MI
pack
 Included requirement in
tender and externally
audited calculation
methods used
 Now understand size of
problem and can prioritise
efforts
Bringing Your Carbon
Management Plan to
Life
Challenge
“A lot of
organisations
have sustainability
policies, but
struggle to bring
them to life”
Chartered Institute of
Personnel & Development
“Only 1 in 20 of
large
organisations
are taking full
advantage of
sustainability”
“70% of all
change
initiatives fail”
The Carbon Management Journey
Where are you?
Carbon Reduction
Full
benefi
ts
Unconsciously
Carbon
Reducing
Consciously
Carbon
Reducing
Ownership &
Business as Usual
One-to-One
Engagement
Carbon
Management
Planning
Journey
Unconsciously
Carbon
Inefficient
Consciousness
Consciously
Carbon
Inefficient
Internal Comms
& Awareness
Bringing Your CMP to Life: Two Objectives
Develop a CMP that has Stakeholder Buy-in
Faciliti
es
Council
/
Governin
g Body
Senior
Management
Team
Estates
Academic
s
External
Relation
s /
Comms
Students
Administrati
ve Staff
Finance
Carbon
Group
Develop a CMP that has Stakeholder Buy-in
1. Develop a CMP that has stakeholder buy-in
a)Assess how their role influences and impacts
carbon efficiency
b)Identify opportunities for involvement and
contribution
c)Understand stakeholder challenges and priorities
d)Align plan with their objectives and needs
Develop a CMP that has Stakeholder Buy-in
Faciliti
es
Council
/
Governin
g Body
Senior
Management
Team
Estates
Academic
s
External
Relation
s /
Comms
Students
Administrati
ve Staff
Finance
Carbon
Group
Use the CMP to Engage & Drive Change
Faciliti
es
Council
/
Governin
g Body
Senior
Management
Team
Estates
Academic
s
External
Relation
s /
Comms
Students
Administrati
ve Staff
Finance
Carbon
Group
Use the CMP to Engage & Drive Change
2. Use the CMP as a tool to engage
stakeholders and drive change:
a)Acts as a communications tool
b)Establishes governance structure
c)Defines project management and reporting framework
d)Informs approaches to direct engagement
e)Supports on-going communication and performance
reporting
Bringing Your CMP to Life: Two Objectives
What has and hasn’t worked for you?
Stakeholder Mapping
GROUP 1
Impact on carbon
emissions
Estates
Facilities
Senior
Management
Team
Finance
GROUP 3
Students
Administrat
ive Staff
Carbon
Group
GROUP 2
Academics
Council /
Governing
Body
Influence on other
people
External
Relations
/ Comms
Tailored Communications to Stakeholder Groups
GROUP 1
GROUP 3
How to Maintain Momentum?
• Direct Engagement
>>> Groups or individuals to create
momentum
• Governance
>>> Generating accountability and supporting
momentum
• Project Management
>>> Maintaining momentum
• Broadcast Communications
inform & motivate
>>> All stakeholders to
Closing Comments
Carbon Management
Diagnostic
1. SWOT analysis of current Carbon Management
Plan
2. Benchmarking against best practice across
five key areas
3. Stakeholder mapping exercise
4. High-level historic data analysis
5. Gap analysis with CMP Optimisation Roadmap
6. Presentation of Diagnostic within
stakeholder workshop
Thank you – please fill in the Feedback
Form
Do you have an interest in…

CMP Diagnostic

CMP Update

Data Management

Analytics & Reporting

CRC Reporting / Phase 2

EPIP (Energy Performance Improvement Programme)

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