Elevate Constructing the Future

Carbon Footprint
Study

February 2008
 Elevate Constructing the Future
Carbon Footprint Study

Objectives
 To review existing methods and tools for calculating a carbon footprint for
business use
 To develop a simple method for calculating the carbon footprint of a small or
micro business in the construction industry
 To provide a tool or workbook for those businesses to complete and calculate
their carbon footprint

Scope of the study

The scope of this study is to provide a tool for individual small or micro businesses to
calculate their own carbon footprint and is not intended to calculate the carbon
footprint of a whole construction project. To do this the scope would need to be
significantly extended and the inclusion of many other factors such as raw material
selection, embodied carbon dioxide, waste disposal and the longevity of the
construction would need to be considered. The performance of the final construction
in regards to its carbon footprint during occupation has not been included in this
study.

Aim of the study

The aim of the study is to provide Elevate with an overview of the carbon footprint
methodology, the calculators available and their applicability to businesses in the
construction industry.

The aim of the workbook is to provide small and micro businesses in the construction
industry with a simple method of calculating their own carbon footprint with a view to
setting targets for reduction, reporting their performance and adopting continuous
improvement principles.

Introduction
It is widely accepted that the greenhouse gas emissions caused by human activity are
having a negative impact on the environment and contributing to climate change.
Carbon dioxide is the most important greenhouse gas arising from human activity and
accounts for nearly 80% of the UK greenhouse gas emissions. Carbon dioxide is just
one of the six main greenhouse gases limited by the Kyoto protocol. The effect that
each of these greenhouse gases has on the climate varies significantly as each gas has
a different global warming potential. For simplicity of reporting, the mass of each gas
emitted is commonly translated into a carbon dioxide equivalent so that the total
impact can be summed to one figure and expressed as a carbon footprint. The total
set of greenhouse gas emissions caused directly and indirectly by an individual,
organisation, event or product is called the carbon footprint.
Carbon Footprint and the Construction Industry
The UK construction industry is vast; its output is worth £100bn a year; it accounts
for 8% of GDP; and employs 2.1 million people. However, buildings are also
responsible for almost half of UK carbon emissions, half of water consumption, about
one third of landfill waste and 13% of all raw materials used in the UK economy.

The UK government has made a commitment to reduce carbon dioxide (CO2)

emissions by at least 60% on 1990 levels by 2050 and by at least 26% by 2020.
Within this, Government has already set out its policy that new homes will be zero
carbon from 2016, and an ambition that new schools, public sector non-domestic
buildings and other non-domestic buildings will be zero carbon from 2016, 2018 and
2019 respectively. In support of these targets the Code for Sustainable Homes was
introduced and all new homes have to have a mandatory rating. The Code measures
the sustainability of a new home against nine categories of sustainable design, rating
the 'whole home' as a complete package. The Code sets minimum standards for
energy and water use at each level and, within England, replaces the EcoHomes
scheme, developed by the Building Research Establishment (BRE).

To help the UK achieve these challenging commitments The Climate Change Bill was
introduced into Parliament on 14 November 2007 and became law on 26th November
2008. Whilst is it not completely understood what the impact on UK industry will be
it is inevitable that there will be some reporting and fiscal implications that will trickle
down to small and micro businesses.

These are some of the external pressures on businesses to measure their carbon
dioxide emissions and have been briefly discussed to put this report in context of the
bigger picture. From an internal perspective and in accordance with the scope of this
study, carbon footprint calculation is necessary for construction businesses as a simple
and complete measure of their impact on the environment and a method for
identifying ways to reduce costs.

Review of existing Carbon Footprint Calculators

Overview of calculators
Any search on the internet for carbon footprint calculators will return thousands of
results. Typically the calculators available fall into one of three categories:

 Carbon Offsetting
o Business
o Domestic/Individual
 Environmental charity supported
 Government supported
o Domestic/Individual
o Business

Carbon Offsetting
For the purpose of this study it was necessary to filter out all carbon offsetting
calculators as their main purpose is to sell carbon offsets not to give an accurate
carbon footprint for performance monitoring. Their methods and conversion factors
are not transparent, and the actual carbon footprint varies dramatically between each
provider when inputting exactly the same data.
Carbon offsetting calculators include:
www.carbonfootprint.com
www.jpmorganclimatecare.com
www.puretrust.org.uk

Environmental charity supported

Again, these carbon calculators have been dismissed as the method and conversion
factors are not transparent and their focus is on a household or individual.
Charity calculators include:
www.plant-a-tree-today.org
http://footprint.wwf.org.uk/home

Government supported
The main domestic online calculator is Act on CO2 available through the Direct Gov
facility. This is an easy to use calculator but not applicable to business activities.
http://actonco2.direct.gov.uk/index.html

The search facility Google has developed an online carbon footprint calculator that is
supported by Defra and the Energy Savings Trust. The calculator is based on the Act
on CO2 calculator detailed above and is aimed at calculating an individual’s carbon
footprint in a domestic setting. Once an individual has completed the data section a
list of pledged actions is produced and the individual can place a maker on the map of
the UK confirming their commitment to reducing their carbon footprint. The markers
are colour coded depending on the individual’s carbon footprint, green for low,
orange for average and red for high. This is unique to the Google carbon footprint
facility and allows anybody to view a map of the UK with everyone’s individual
colour coded marker and pledges. This is an easy to use calculator and very pictorial
but it is not applicable to business activities. In addition there are web links to other
service providers such as carbon offsetting facilities, gadgets, top tips for reduction
and an online discussion forum.
www.google.co.uk/carbonfootprint/

Specifically designed for business users, the Carbon Trust online carbon footprint
calculator is easy to use once the input data has been collected. Each page prompts
the user on the details required and the final report is clear. The business can update
the calculation as and when the data becomes available.
www.carbontrust.co.uk
The Carbon Trust is a private company set up by the UK Government and is a leading
authority on UK carbon management for business.

The Environment Agency has developed a carbon footprint calculator which allows
them to measure the carbon dioxide generated by their own construction projects,
which account for three per cent of the civil engineering sector. From November
2007 the Environment Agency requires all of their builder contractors to complete the
tool to allow the Agency to have a better understanding of the impact their
construction activity has on the UK carbon dioxide emissions for the purpose of
reducing those emissions. The calculator can be accessed online be using the weblink
below but the calculator is an excel based document.
 http://www.environment-agency.gov.uk/business/sectors/37543.aspx
This calculator allows carbon dioxide reductions to be built in at the planning and
design stage as there are conversion factors for a range of building materials. The
information on this spreadsheet is excellent and any business that wanted to calculate
their carbon footprint and include raw material production could use this calculator.

Conclusion
If an online tool is required to calculate a construction business carbon footprint then
the Carbon Trust calculator is the most up-to-date, accurate and easy to follow. For
businesses that want to include the carbon emissions associated with their raw
materials the Environment Agency calculator has that facility and conversion factors
but the excel spreadsheet could appear overwhelming.

Methodology
For a carbon footprint to be accurate there must be a consistent approach and a
repeatable method. One commonly used methodology is the Greenhouse Gas
Protocol (GHG) produced by the World Resources Institute which clearly states how
to allocate emissions based on level of control. It defines the direct emissions which
have to be included and the indirect emissions which are optional. The British
Standard ISO 14064 is also compatible with GHG Protocol and the Carbon Trust and
Environment Agency have used this methodology for their calculators and guidance
material.
The Greenhouse Gas Protocol groups emission sources according to the level of
control a business has over them:

Scope 1 – Direct carbon dioxide emissions that result from the activities that
the business controls.
Direct emissions resulting from the combustion of fuels on the business premises, or
from the combustion of fuels controlled by the business. Including:
Natural gas
Heating
Cooking
Diesel and Petrol
Generators
Tools
FLTs
Mini-diggers
Fuel oil
Heating
Company owned or leased vehicles
Travel for business activities
Collection of materials in company vehicles

Scope 2 – Emissions from the use of electricity

This only includes electricity on the premises owned or fully controlled by the
business. Including:
Office and workshop lighting
Office equipment
Workshop equipment

This does not include the electricity used on client’s premises or on a building site
that is not owned by the business.

Scope 3 – Indirect carbon dioxide emissions that result from the activities
that the business performs but does NOT have full control over.
Scope 3 emissions are a consequence of the activities of the business, but occur from
sources not owned or controlled by that business. Some general examples include
production of purchased raw materials, outsourced activities, employee travel to work
and waste disposal. The degree of control can become a little blurred in the way in
which the construction industry works. It is not unusual for a principle contractor to
assign a large building company to complete the whole project; this building company
may then assign a joinery company to complete the joinery work. The joinery
company could then sub-contract to self employed joiners to complete the work. In
this instance the question of control over activities and the availability of data can
become difficult.

In respect to the construction industry the emissions in scope 3 arise from the delivery
of raw materials to site, sub-contracting to another business, use of electricity on a
client’s premises, sub-contracted transportation and hire equipment. In all of these
examples a business can influence the emission but cannot fully control it or easily
access the required data.

Interestingly the use of a product can also be considered a scope 3 emission. For
example, once an occupier moves into a house they are using energy and have their
own carbon footprint. This could be included in a construction business’s carbon
footprint as a scope 3 emission. Obviously this would only happen if the construction
business thought their product (e.g. a house) was going to be energy efficient or that
they could influence the householder on their efficient occupation of the house. This
is way beyond the scope of this study but worth highlighting.

When deciding if a scope 3 emission is to be included in a carbon footprint the

business must assess the materiality of the activity and associated impact. If a scope 3
activity significantly contributes to emission release relative to the other activities
carried out by that business they should be included in the carbon footprint
calculation. For example, if a self employed plumber wanted to calculate their carbon
footprint, scope 1 and 2 would be very small, if any at all. As the majority of energy
used would be on their client’s premises it would be classed as a scope 3 activity and
could be excluded from the calculation. But as this is the main use by the plumber
and the most significant impact it should be considered and a method for accurate and
consistent data collection implemented.

To summarise, although it may be difficult to decide which scope 3 emissions should

be included, the first thing to determine is which are relevant to the business. They
may be relevant for several reasons:
 The emissions are large relative to the businesses scope 1 and 2 emissions.
 They are deemed critical by key stakeholders such as customers, suppliers
and local residents
 There are potential emissions reductions that can be made
Since scope 3 activities are optional it becomes difficult to compare individual
businesses on a like for like basis. If the calculation of a carbon footprint was to be
included in a contractor evaluation or tendering process for the purpose of comparing
each businesses performance and to contribute to a selection decision it would be
advisable for the commissioner to state which scope 3 emissions had to be included.

The Greenhouse Gas Protocol accounts for all six of the main greenhouse gases but
for this workbook only carbon dioxide is included. This is because carbon dioxide is
the main greenhouse gas and the others arise for specific activities that are not as
relevant to a small construction business for which the workbook is aimed. The
activities that would emit greenhouse gases, such as landfill of waste producing
methane, are relevant to a construction business but would be classed as a scope 3
emission.

A businesses carbon footprint will fluctuate depending on the level of activity

throughout the year. To level this out it is common to calculate a carbon footprint
with a full years worth of data and to compare it year on year. This does not however
take into consideration business growth or decline. Obviously if a business becomes
more successful and expands it is likely that its carbon footprint will also grow. To
combat this it is possible to divide the carbon footprint by productivity. For example
in a manufacturing business you would divide the total annual carbon footprint by the
number of units manufactured. Irrespective of production levels the carbon footprint
can be compared year on year and any increases or decreases should more accurately
reflect the businesses efficiency. Due to the nature of small business activity in the
construction industry this approach is not applicable due to the fact that there is
generally no repeatable unit of production. During the sector consultation this was
considered and other methods of dividing the carbon footprint were discussed. It was
evident that it would be difficult to devise a simple method based on number of
employees, contract valuation or total man hours per year as the data was not
recorded. Therefore in the workbook it requests that the business includes the annual
turnover next to the carbon footprint figure to reflect productivity.

Other methods
The British Standards Institute, in association with Defra and the Carbon Trust, has
just launched PAS 2050 Specification for the assessment of the life cycle greenhouse
gas emissions of goods and services. This standard is specifically aimed at
calculating a carbon footprint for an actual product or service rather than a business.
The level of detail is intense and the amount of data needed for the calculation is
beyond a simple exercise. For businesses that have grasped the method explained in
this workbook and want to progress to the next level of detail the PAS 2050 would be
appropriate. If Elevate want to ultimately calculate the carbon footprint of a project
or single construction then this standard would be applicable as it considers all inputs
up and down the supply chain.

Conversion Factors
Defra produce the UK conversion factors for converting the input measure of energy
into the amount of carbon dioxide emissions that will result. These figures are used in
the Carbon Trust and the Environment Agency calculators and are used in the
workbook. The full conversion tables and guidance notes are available on the Defra
website:
http://www.defra.gov.uk/environment/business/envrp/pdf/ghg-cf-guidelines-
annexes2008.pdf
http://www.defra.gov.uk/environment/business/envrp/pdf/ghg-cf-guidelines2008.pdf

Sector Consultation
The purpose of the sector consultation was to establish what activities specific to the
construction industry release greenhouse gas emissions. For the purpose of the
methodology and content of the workbook it was necessary to understand what data is
already collected, how it is recorded, the level of accuracy and if it is feasible to
collect additional data.

Although only three construction businesses were visited their response was nearly
identical with regards to data collection. They all agreed that records could be kept
for their emissions in relation to scope 1 and scope 2 activities, and in some instances
this data was readily available. Records were not available for scope 3 activities, in
particular:
 Transportation of materials
 Electricity use on clients premises
 Fuel use in hired equipment
 Sub-contractors fuel use
 Sub-contractors transportation
 Heating on the clients premises

The response to how feasible it would be to collect this data was resoundingly
negative. It was seen as onerous and respondents quite correctly pointed out, in most
cases, that they could not reduce it because they did not have full control.

The most important message to come out of the consultation was that whatever the
tool was it had to be quick and simple to complete. This re-confirms the need to
separate scope 1, 2 and 3 emissions and only make scope 1 and 2 mandatory.

The other significant point was that none of the businesses would complete the carbon
footprint calculation if they could not easily identify a cost benefit or have the
potential to win a contract.

The medium for the tool or workbook was discussed and three options were
presented, paper workbook, CD ROM or online tool. The response was ‘whichever
would be the easiest to complete’ as the three interviewees all had access to a
computer and the internet.

Conclusion
The workbook has been reduced to its simplest form and information that is not
needed for the calculation has not been included. Therefore the level of detail is less
than in this report. However there is a compromise between simplicity and accuracy
and therefore there may still be more detail in the workbook that is necessary. This
can be removed but it must be understood that the accuracy will be affected.
The decision to produce a paper version of the workbook was reached because it
would be accessible to all, including the micro businesses that do not have access to a
computer or the internet. This paper format could easily be transferred onto a CD
ROM and the calculation formulas could be embedded in the tables to automatically
complete the sums. An on-line tool such as the Carbon Trust carbon footprint
calculator is already available to those businesses that prefer an internet based
approach and the methodology is the same as adopted in the workbook.

The workbook is based on The Greenhouse Gas Protocol classification definitions for
scope 1, 2 and 3 type emissions and the conversion factors used are those published
by Defra. To keep the process applicable and simple only carbon dioxide and not the
other five main greenhouse gases are included.

For the purpose of the workbook and in respect of those businesses who do wish to be
more extensive in their calculation there are suggested methods of data collection and
templates of record sheets included in the workbook for the following scope 3
activities:
 Transportation of materials
 Employee business travel in their own vehicles
 Electricity use on clients premises
These three activities have also been included because it was felt that they are
material to the type of activities completed at a small construction business and could
have a relatively significant impact. To keep the format of the workbook simple the
methods for calculating the emissions from these activities have been included in
Appendix I of the workbook. If all of this information was included in the main text
of the workbook it could be overwhelming.
Reference List
John Barrett & Thomas Wiedmann: A comparative carbon footprint analysis of on-
site construction and off-site manufactured houses
November 2007

Steve Wrigley: Online carbon calculators – unsuitable for SMEs? The

Environmentalist May 2008 Pages 16 – 18

Global Reporting Initiative: Sustainability reporting guidelines Version 3.0

BREEAM: Code for sustainable homes

BERR: Stategy for sustainable construction

June 2008

The Carbon Trust: Carbon Footprint An introduction for organisations

August 2007

The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard

March 2004

Draft strategy for sustainable construction – consultation paper

Chartered Institute of Building

BSI: Guide to PAS How to assess the carbon footprint of goods and service
October 2008

BSI: PAS 2050:2008 Specification for the assessment of the life cycle greenhouse gas
emissions of good and services

BS ISO 14064-2:2006 Greenhouse gases. Specification with guidance at the project

level for quantification, monitoring and reporting of greenhouse gas emissions
reductions or removal enhancements

The Carbon Trust: Energy and carbon conversions 2008 update Factsheet CTL018

Acknowledgements
Mr Jason Powell
WN Powell & Sons Ltd

Mr Richard Garth-Jones
Ensign Energy

Mr Jan Chamberlain
Chamberlain & Flood
Contact details:

Martin Brown Head of CTF 01254 304571 martin.brown@elevate-eastlancs.co.uk

Donna Marshall CTF No Limits Project Manager 01254 304570

donna.marshall@elevate-eastlancs.co.uk