Carbon labelling – crunch time

Dan Crossley, 2nd July 2008, Projects

Has the credit crunch begun to affect what you put in your shopping basket? How about the carbon crunch: does climate change influence what products you buy? The answer to the first question might be yes, but the answer to the second is more likely to be no – for now.

We know that we only have around ten years to take serious action on climate change. We also know that what we buy and how we use products has huge carbon (as well as other sustainability) impacts. At the moment, shoppers don’t know a high carbon detergent from a low carbon one. But this might be about to change, with trial carbon footprint labels appearing on groceries in supermarkets like Casino in France and Tesco in the UK.

Putting carbon labels on the products we buy regularly – like sausages, carrots or toothpaste – is a relatively new idea. It might surprise you to hear though that, in the UK, mass carbon labelling is already with us. Think about some of the big purchases you might make: like a new house, a new car or a new fridge. All these are already carbon labelled – or, to be precise, labelled with energy efficiency ratings (a proxy for carbon).

Now it’s crunch time. Time for retailers, manufacturers and governments to decide whether to roll out carbon labelling on everyday products on a big scale. That’s why Forum for the Future decided to commission independent research – sponsored by Lloyd’s Register – to explore the role of carbon labelling.

Our research highlighted that carbon labelling does have a role to play in moving us towards a low-carbon shopping basket, but that trying to put a label on everything isn’t the answer. And consumers don’t just want to be told that it’s up to them to choose the right products. They want government and retailers to act too, by taking the most environmentally damaging products off the shelves. Our latest report, Check-out carbon, sets out key recommendations for moving forward the debates around carbon labelling. If you want to know how business can help consumers reduce carbon impacts at the checkout, then check it out here.

Comments

Carbon-crunching money-saving big time

To provide some support to this, a case study of the total carbon footprint of a business is provided at

http://www.xanfeon.co.uk/page29a.html

The total carbon footprint includes everything in the business (not just the utilities footprints) and the case study shows a 50% reduction from 400 tCO2 per month to 200 tCO2 per month in the first phase of carbon reduction.

The carbon reduction programme covers the following areas, all of which have been footprinted:

utilities (electricity, fuel oil, natural gas)
transport (air flights, train, underground, car)
products (whole portfolio including supply chain optimisation)
packaging (both primary and secondary packaging)
logistics (haulage, shipping)
consumables (factory, office and marketing)
equipment (acquisition of new factory equipment)
computers (acquisition of computers)
internet services (email, data centre)
auxiliary services (accountancy, legal, banking, etc)
waste (produced in the factory)

By crunching carbon across all product designs as well as through supply chains, operations and infrastructure of the business, it is possible to make huge reductions in emissions ... as well as huge savings. This is particularly important as oil prices are now rising exponentially and this is having / will have a knock-on effect on other commodities.

The bottom line is that carbon emissions cost money and so why should businesses and their customers pay for avoidable carbon emissions. Things are going to get very interesting as businesses compete to remove huge chunks of unecessary emissions and unnecessary costs, ie carbon-crunch out of the credit-crunch. The ones which don't carbon crunch may wonder what happened as they hold fast to those unnecessary costs. Perhaps this will inform us as to which products won't actually stay on the supermarket shelves ... because those may be the products of companies that didn't carbon crunch.