Carbon Emissions Reduction

1
Carbon Emissions Reduction
Kieran Fitzpatrick. Business Development
Director. AVK UK Ltd
2
Who are we ?
3
Global Group

• Manufacturers and suppliers of Valves and
  Mechanical fittings to-
• The Global Water, Gas and Sewage Utilities
• The Global Fire Protection and Industrial
  Markets
• AVK is the market leader in the UK Water and Gas
  Utility Sectors.

4

• The AVK Brand Represents-
• High Quality Products and Service
• Innovation
• Ethical and Responsible business practices

5
Brands within AVK
6
AVK drivers for introducing a Carbon Reduction
initiative in 2006

• Science (Inter-Governmental Panel on Climate
  Change IPCC) growth in CO2 and other Green
  House Gases will cause (and already is) a
  dangerous level of climate change
• We predicted that our government and customers
  would have to put CO2 reduction right at the top
  of their agendas

7
AVK drivers for introducing a Carbon Reduction
initiative in 2006

• By fully committing to a CO2 reduction policy, it
  would help drive efficiencies into our businesses
  and products and would add value.
• Moral grounds

8
Where are AVK against the UK Water Industry
Expectations ?
9
Where are AVK against the UK Water Industry
Expectations ?

• AVK Perspective
• In 2006 we chose CarbonLow Limited to provide us
  with a carbon accounting system called CLOEE
  CarbonLow Ongoing Emissions Evaluation
• CLOEE records and reports on all carbon aspects
  of the business and is linked to our own ERP
  business management systems (Navision)
• We have established a baseline period against
  which CLOEE automatically compares all subsequent
  periods
• We are the first in the sector to have product,
  (embedded) carbon reports and reports on
  individuals within the business
• Our carbon reduction performance is easily made
  available to you, our customers

10
What does this look like in practice?
11
Carbon Reduction Progress Year 1
What does this look like in practice?
12
Carbon Reduction Progress Year 2
What does this look like in practice?
13
Examples of Carbon Reduction initiatives at AVK
in the UK.

• Any new manufacturing facility must have full
  environmental consideration
• Recirculation of heat from coating process
• Automatic light system proximity and/or low light
  sensors
• Roller-track product movement reduced forklift
  activity
• CLOEE
• In house printing on demand (no wasteful minimum
  runs).
• New informative website reducing use of printed
  media
• Reduced water consumption average last 8 months
  7
• Reduced electricity consumption, same period 12
  

14
CO2 Reduction initiatives in new AVK buildings
15
(No Transcript)
16
(No Transcript)
17
(No Transcript)
18
(No Transcript)
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
Measurement and Reporting

• In Summary Our Carbon Reports include
• Overall Baseline May 06 April 07
• Targets Against Baseline Years 1 2
• Overall Carbon Reduction Year 1 2 to March
  2009
• Carbon Footprint Component report by period
• Carbon Footprint by Direct, Indirect and Supply
  Chain emissions
• Carbon Reduction Progress Year on year
• Product Embodied Carbon
• Individual Carbon Footprint
• Quarterly Internal Green Paper
• Carbon data to our suppliers

25
How do AVK Compare Against Typical Industry
Concerns?
26
Where are AVK against the UK Water Industry
Expectations ?

• AVK are significantly ahead in our Carbon
  Reduction Programme and against other Typical Key
  Environmental and Social Issues within the
  Utility Sector
• Probably by 5 or 6 years!

?
27
Where are AVK against the UK Water Industry
Expectations ?

• AVK are significantly ahead in our Carbon
  Reduction Programme and against other Typical Key
  Environmental and Social Issues within the
  Utility Sector.
• Probably by 5 or 6 years!

?
28
Where are AVK against the UK Water Industry
Expectations ?

• AVK are significantly ahead in our Carbon
  Reduction Programme and against other Typical Key
  Environmental and Social Issues within the
  Utility Sector.
• Probably by 5 or 6 years!

?
29
Challenges for Utilities and Suppliers in
Developing a CO2 Reduction Policy

• The cost to create, manage and accredit
• What accreditation bodies or verification methods
  will the Industry accept
• This is already becoming an Achilles Heal
• If the Utilities are serious about their
  commitment to carbon reduction, how are they
  going to assure their suppliers that
• A level playing field for both manufacturer/suppli
  ers and distributor/suppliers
• An unambiguous commitment that suppliers without
  CO2 Reduction Policies will not be able to even
  qualify for a framework tender
• They will support any potential increase in unit
  cost should it be more carbon efficient to source
  more expensive components from the UK and Western
  Europe, than cheaper components sourced from a
  distance in China, Eastern Asia etc
• True, positive weighting for suppliers who
  demonstrate a differential advantage in CO2
  Reduction and other required standards
• there is a real consequence to not
  doing........

30
The choice....
or
31
Conclusion