Climate change

To prevent global warming escalating further, we need to collaboratively adapt the ways in which we live and work. We are influenced by the precautionary principle, the idea that if the consequences of an action are unknown, but are judged to have negative consequences, then it is better to avoid that action in our approach to climate change. Our Carbon Policy (668 Kb) highlights the role of Carillion’s leadership team in promoting changes and the responsibility of our employees and supply chain partners to take action.

As carbon dioxide (CO₂) is the most abundant greenhouse gas produced in industrialised society, contribution to climate change is usually measured in terms of carbon emissions. By reducing carbon emissions, we also cut emissions of oxides of nitrogen (NOx) and sulphur (SOx) which contribute to acid rain and smog, and therefore harm humans, wildlife and buildings.

UK Carbon Reduction Commitment

In 2010, Carillion registered with the UK Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, which applies mandatory emission cuts to large commercial and public sector organisations.

Employees from our business units have collected data and assessed our impact, and we are working with external consultants on a compliant energy accreditation scheme.

To rank participants in order of carbon performance, the CRC has a set of metrics, with one set known as ‘early action metrics’. This includes measuring the percentage of our electricity and gas use covered by voluntary automatic meter readings, in the year to 31 March 2011. We have invested in smart meters which automatically send the readings back to our energy suppliers. By the March deadline, 94% of our UK electricity and 83% of our UK gas will be monitored by smart meters.

In summer 2011, we will submit a baseline report for our carbon emissions for the year to April 2011. This will include carbon emissions from the electricity, gas and oil used to power our offices, site accommodation and construction projects, and the plant oil we use in construction activities. We are working with Deloitte to ensure we comply with the legislation and reporting requirements.

Carbon data measurement and reporting

In 2007, we calculated our carbon footprint from our UK performance data for 2006, providing the baseline for our carbon reduction strategy. Since then, we have continued to collect data and report our carbon footprint annually.

As data has been gathered for the Carbon Reduction Commitment, we have identified additional energy and plant fuel sources that were not previously included in the carbon footprint analysis. As a result, the 2010 footprint that will act as our future reporting baseline has been recalculated to 264,529 tCO₂e, representing an 8.5% increase.

The revised 2010 footprint uses the most recent Department for Environment, Food and Rural Affairs/Department of Energy and Climate Change emission factors.

In 2010, for the second year, we submitted data to the Carbon Disclosure Project (CDP), an independent, not-for-profit organisation collecting carbon data from companies around the world. The CDP‘s aim is to increase transparency and promote climate change data as a factor in business, policy and investment decisions.

We currently gather data for scope 1 and scope 2 emissions, as defined by the UK Government’s Greenhouse Gas Protocol. Scope 3 covers indirect emissions from construction materials and their delivery to sites, facilities management services in client properties, and waste and water-related emissions from projects.

We have established a strategy group to measure scope 3 emissions and thus calculate a complete carbon footprint. In 2010, we selected a construction site at which to pilot the measurement process and we will continue to capture the data required during the life of the project.

Our carbon footprint

In 2010 our total Group footprint was 243,621 tCO₂e (tonnes of carbon dioxide equivalent), compared to a combined UK and MENA footprint of 251,646 tCO₂e in 2009.

Our UK footprint for 2010 was 91,361 tCO₂e, compared to 103,934 tCO₂e in 2009, and 35% lower in absolute terms than our 2006 baseline of 140,337 tCO₂e.

Our 2010 UK target was to halve our emissions by 50% normalised against a 2006 baseline. As our emissions are relative to the scale of our business, our target is measured per £ million revenue. In 2010, our UK business generated 23.8 tCO₂e per million revenue (24.51 tCO₂e in 2009), a reduction of 26% compared to 2006 (32.31 tCO₂e).

This reduction is the result of several factors such as measures to control the use of plant fuel, internal reviews of fuel expenditure and Group-wide communications to reduce the need for business travel.

In MENA, the 2010 target was to achieve a 20% reduction in carbon emissions against a 2009 baseline and we achieved a 13% absolute and 3% normalised reduction. The 2011 target is for a 15% reduction against a 2010 baseline.

Carillion Canada started collecting and reporting its carbon footprint data for the first time in 2010, with a baseline of 27,603 tCO₂e and has set a reduction target of 10% in 2011.