Climate Change

Serious about reducing your carbon footprint? (Part two)

From NZ Manufacturer, October 2023. This month we get to the ‘pointy end’ of things. Using the concepts she explained in last month’s article, Nicky Andrews, Head of Carbon at thinkstep-anz, explains how to measure and reduce your carbon. But first, a recap. Where we left off: identifying the main sources of your carbon emissions So you’ve taken the first step. You’ve split your greenhouse gas emissions into direct emissions (Scope 1), indirect emissions (Scope 2) and the hidden indirect emissions in your value chain (Scope 3). Now you’re ready to measure them. Step two: measure your emissions Your Scope 1 and 2 activities Measuring your Scope 1 and 2 emissions is relatively simple. You’ll need two pieces of data: the volume of emissions your activities create (‘your activities’) and the impact those emissions have on the environment (‘emission factors’). First, confirm your activities. For example, how many kilometres did your employees drive in your company vehicles last year? How many kilowatt hours of electricity powered your plant? You’ll have much of this information to hand in documents like monthly fuel and power bills. Second, find your emission factors. An emission factor represents the amount of GHG an activity releases. The Ministry for the Environment (MfE) provides generic information factors, along with helpful workbooks and guides. For example, according to MfE, one litre of diesel used for transport emits 2.69 kg of CO2 equivalent. Third, do the maths. Units of activity x emission factor per unit = CO2e released. Your Scope 3 emissions These are the emissions in your value chain. They sit with your employees, suppliers and customers. Here’s an example of measuring the carbon in your supply chain. Say you want to estimate the emissions in Scope 3 Category 4 (upstream transport). Ask your suppliers: How much fuel […]

Carbon emissions on the way down

Robert McLachlan, Professor in Applied Mathematics, Massey University. Ian Mason, Adjunct Senior Fellow in Renewable Energy Systems Engineering, University of Canterbury. It may have been largely overlooked in the election debates, but New Zealand’s greenhouse gas emissions are finally on the way down. Annual emissions of carbon dioxide from the burning of fossil fuels are the lowest since 1999 and the 12-month renewable share of electricity is back above 90% for the first time since 1981. The Ministry for the Environment has advised New Zealand is on track to meet the first (2022-2025) carbon budget. All this can be attributed to a range of factors, including fossil gas running low, full hydro lakes, high petrol prices and working from home. But climate policies such as the Emissions Trading Scheme (NZ ETS), the clean car discount and the Climate Emergency Response Fund (CERF) have made a significant contribution to the turnaround. Current decarbonisation policies have and will continue to deliver real emissions cuts, provided they remain in place. It is therefore disconcerting that the National Party plans to take $2.3 billion from the CERF (almost two-thirds of the fund’s mid-2022 balance) to pay for tax cuts. The argument that individual households will use tax cuts to make their own decarbonisation decisions is unsupported by evidence and lacks credibility. The Labour Party has also dipped into this fund, taking $236 million to pay for rebates for household installations of solar panels and batteries, and community energy schemes. These may produce some as yet unquantified emissions cuts. Government funding is working Allocations from the Government Investment in Decarbonising Industry (GIDI) fund to NZ Steel and Fonterra show direct and measurable avoidance of emissions. The installation of an electric furnace at NZ Steel to utilise scrap will save 1% (800,000 tonnes of CO₂-equivalent emissions, or tCO₂e) of New Zealand’s 2021 gross emissions. Support for Fonterra […]

Serious about reducing your carbon footprint? Read on!

Chances are you’re already talking about carbon – and climate change too. If not, you need to start! But when you’re a busy manufacturer, getting to grips with carbon can be daunting, we know. So in this first of two articles, Head of Carbon at thinkstep-anz Nicky Andrews explains how to get started and keep making progress. Nicky Andrews, thinkstep-anz Head of Carbon. Understanding carbon emissions What are carbon emissions? ‘Carbon emissions’ is shorthand for ‘greenhouse gas emissions’ (GHGs) – the gases that are trapping heat in Earth’s atmosphere and warming our planet. There are many types of GHGs. Common ones include carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Why do manufacturers need to reduce carbon emissions? You’ll be helping to keep global warming to below 1.5°C and meeting the goals of the Paris Agreement. There are many good business reasons, too, for manufacturers to tackle carbon. How does my business benefit from reducing emissions? First up, you’ll reduce your risks. For example, if the government introduces a carbon tax, you’ll be prepared. You’ll strengthen your brand. Customers may already be asking what you’re doing to reduce your emissions. That’s because they (and their customers) are increasingly seeking lower-carbon products. You’ll strengthen relationships. For example, you’ll keep your investors happy if you manage your emissions (and their money) carefully. Your team will value your efforts too. Many people want to work for a business that takes climate action seriously. Finally, because winkling out carbon involves delving into everything you do, you’ll spot opportunities to reduce your costs. What are the three Scopes (types) of emissions? The international Greenhouse Gas Protocol is one of the standards that govern how organisations measure and reduce their carbon emissions. The Protocol splits carbon into three groups (Scopes). Diagram of the Scopes: thinkstep-anz, […]

Ways to decarbonise heavy industry

Heavy industry in the world’s most advanced economies can become carbon neutral – if governments implement the right policies in the next five years. Chemical,steel, cement and other heavy industries are critical to everyday things we rely on, like vehicles, buildings and surgical supplies, the IEA explains. But producing these materials involves vast amounts of energy and heat. This means it’s harder for heavy industry to reach ‘net zero’ – carbon neutrality – with steel and cement producers facing particular challenges. What to do Set a clear direction Ambitious plans with clear targets should be developed for industry sectors by no later than the mid-2020s, backed by clear policies that promote innovative technologies and the efficient use of materials. Show industry what works Demonstration projects in different regions would show how industries can operate with near-zero CO2 emissions. Governments should be deciding in the next one to two years how to finance these and reduce any risk. At least two or three methods should demonstrate ways to produce both steel and cement with near-zero emissions, the IEA suggests. Finance innovation in heavy industry Grants, low interest loans and other types of finance could help fund the roll-out of near-zero emission technologies. Funding would help new and existing industrial plants and related areas like transport and storage. Boost demand for near-zero technologies Governments can help boost demand for materials made with near-zero emissions. This might include long-term support for first mover commercial plants in different technologies. Public sector procurement contracts that span a number of years are an example of government support. Work together An international industry decarbonisation alliance could include agreeing “concrete commitments” with the main aim to accelerate industry’s transition to net zero. Adjust measurement tools Carbon emissions from industry differ across plants, sectors and countries. For this reason, […]

Have you ignited your Power Rangers?

-Insa Errey, Advisor, NZ Manufacturer www.nzmanufacturer.co.nz How the power of staff engagement leads to energy reduction. While technological advancements and infrastructure improvements play a crucial role in decarbonisation, one often overlooked factor is staff engagement. Employees who are actively engaged in energy-saving initiatives can make a significant impact on energy reduction and as such emissions reduction. This article explores the relationship between staff engagement and energy reduction, highlighting the benefits of fostering an engaged workforce. Raising Awareness: Raising awareness among employees is one of the primary ways staff engagement can contribute to energy reduction. By conducting awareness campaigns, providing training sessions, or implementing internal communication channels to disseminate information, employees become educated about the importance of energy conservation. Ensure the process is fun and relatable, to get your staff onboard. Understanding the impact of their actions, ignites them to become more conscious of their energy usage. Engaged employees are more likely to adopt energy-efficient behaviours and encourage others to do the same. Behaviour Change: Engaging employees in energy savings initiatives encourages them to change their behaviour. Simple actions such as turning off lights when not in use and powering down computers can collectively contribute to significant energy reductions. This can then be extended at their workstation. If their workstation had an Energy Star rating what would it be, and how could this be improved? Engaged employees serve as role models for their peers and promote a culture of energy consciousness throughout the organisation. Employee Empowerment: Engaging employees in energy reduction efforts empowers them to take ownership of their workplace environment. When employees feel empowered, they are more likely to actively participate. Organisations can involve staff members in energy audits, encourage them to identify areas of improvement, and implement their suggestions. This involvement creates a sense of ownership and strengthens the […]

How to select a standout sustainability team

Dr Barbara Nebel, CEO, thinkstep-anz Keen to make progress on your sustainability programme? Enlist the right team! Our clients – large and small – often ask us whom to shoulder-tap when they set up their in-house sustainability team. Our answer sometimes surprises them. Yes, their team members’ skills and networks are important. But how their people think and what they value matter too. Our thinkstep-anz sustainability professionals are a good example. Our almost fifty-strong team come from many different backgrounds including product design, economics, engineering, science, law, and journalism. Their careers span many sectors and industries. What do they have in common? How they think and what they value. Pick people who see the ‘big picture’ Your sustainability programme should be part of your business strategy. So involve team members who see the ‘big picture’. Make sure they understand that becoming a more sustainable manufacturing business is about more than ‘saving the planet’ (critical though this is). It’s about future-proofing your business. A well-run sustainability programme will keep your supply chain cranking along, reduce the waste you create, keep your customers loyal, and attract talent in a tight labour market. Big-picture thinkers offer other skills too. They understand trade-offs and can set priorities. They’ll help you focus your sustainability effort so you have the greatest impact. Pick ‘systems thinkers’ Sustainability is about systems. Change one thing and you’ll change another. Pic credit: Andrew Moca on unsplash. Why does this matter? Because you want your sustainability programme to succeed. For example, before you redesign your product to use lower-carbon materials, you need to be confident you’re not adding to your waste. (Waste can emit carbon too.) Team members who see your products and business as connected ‘systems’ can identify potential issues like these. The good news? Manufacturing businesses are full […]

Kayasand receives backing from NZGIF to reduce carbon emissions from concrete

Kayasand, a distributor of premium sand manufacturing technology, is opening its first V7 high-technology manufacturing demonstration plant in New Zealand, which uses waste products such as recycled glass, concrete and slag, and turns them into premium sand for concrete. Kayasand has received the backing of New Zealand Green Investment Finance (NZGIF) via a $3.5 million equity investment. The green investment bank was established to accelerate investment that helps reduce greenhouse gas emissions. A further $1.8 million of private investment has been secured alongside the NZGIF investment bringing the total raise to $5.3 million. Natural sand supplies are becoming harder to access and traditional concrete manufacturing processes, including the impacts of sand dredging on coastlines such as Pakiri, 100km north of Auckland, are not sustainable over the longer-term. Dr Bram Smith, Kayasand General Manager, says “Our technology can reduce or in cases eliminates the need for natural sand dredging. It uses by-products and recycled materials such as quarry crusher dust and recycled glass to manufacture a sand of such quality that it makes stronger concrete than natural sand when mixed with cement. Our goal is to reduce carbon emissions from concrete production by up to 20% using this method.” Kayasand technology is used in over 300 plants across Japan, China, India, and Australia. The picture shows a V7 plant in Japan. NZGIF Chief Executive, Craig Weise, says the deal is an important step and is a boost for the construction sector and consumers who are eagerly looking for more sustainable building materials. He says, “Auckland’s infrastructure requirements alone are projected to be $26 billion over the next decade and if New Zealand is going to meet its CO2 emission reduction targets, we need to find alternative manufacturing and building methods. We are delighted to invest in Kayasand to help deliver its […]

Battery power plus product stewardship for a brighter future

By Dominic Salmon, 3R Group Business Development – Sustainable Solutions The transition away from fossil fuels will rely heavily on large batteries – it’s estimated that EVs and stationary energy storage batteries can enable 30% of the emissions reduction needed in the transport and energy sectors. The conversation can often steer towards electric vehicles, but large stationary batteries are just as important. Large batteries are not yet widely used in New Zealand outside of EVs and hybrid vehicles. However, the potential applications for stationery storage are huge. These range from use in homes to store excess solar power, to national power grid stabilisation, upgrading old, inefficient battery systems and even as back up for key infrastructure in the event of natural disasters such as Cyclone Gabrielle. The range of stakeholders in this area is wide, from EV and home solar system owners (and potential owners) to energy generation companies, vehicle and battery importers, recyclers and, well, just about anyone who has energy needs. Like all solutions though, thought needs to go into preventing unintended consequences. In the case of batteries, it’s ensuring they are ethically and sustainably produced and don’t become a problematic waste stream at end of life. While small markets like New Zealand, which don’t mine the minerals or manufacture large batteries, can’t have a direct impact on their production, we can ensure they are used as efficiently as possible. Importers, retailers and consumers can also use tools like the Global Battery Alliance’s battery passport to track battery health and environmental impact and create demand for ethically and sustainably manufactured batteries. Making this transition obviously isn’t straight forward but there is a significant amount of work being done, including in Aotearoa New Zealand by the Battery Industry Group (B.I.G). Batteries in the Land of the Long White Cloud […]

Mitigate or adapt? With climate change it’s both

If you’re dealing with the aftermath of the weather events, as many are, we wish you well. Adapting to climate change. Since the disastrous weather earlier this year, it’s a term we’ve heard regularly in the mainstream media. What does adapting involve? Why does it matter? As a manufacturer, do you need to keep reducing (mitigating) climate change as well as adapting to it? (The answer to that last question: an emphatic yes!) This article explains why mitigating and adapting to climate change must go hand-in-hand for New Zealand manufacturers. But first, the science Let’s start with the global picture. The Intergovernmental Panel on Climate Change is adamant: a 1.5°C increase in global temperatures over pre-industrial levels will adversely affect the world’s climate. A 2°C increase will be more serious still. The cause of this warming? Greenhouse gases (GHGs). Zoom in to Aotearoa New Zealand. Scientists at the National Institute of Water and Atmospheric Research (NIWA) and University of Waikato are convinced that Cyclone Gabrielle’s devastating rainfall is an example of climate change. The cause? Global warming, due to GHGs, increases air temperatures. Warmer air holds much more water vapour. When this vapour cools, it rains. Photo credit: Kelly Sikkema on unsplash. What does mitigating climate change involve? Think of mitigation as the fence at the top of the cliff. Mitigation is about addressing the causes of climate change by reducing the GHGs we emit. If you’re a manufacturer, it could involve reducing the carbon in your products or moving your factory to renewable electricity. To date, governments and businesses have focussed on mitigation – with good reason. We all benefit when we reduce climate change. What does adapting to climate change involve? If mitigation is the fence, adaptation is the ambulance. With a poorly maintained fence (an atmosphere damaged by […]

Net-zero steel in building and construction: The way forward

By popular demand – from industries and industry organisations Trans – Tasman- NZ Manufacturer www.nzmanufacturer.co.nz brings you an industry expert article on reducing emissions in the steel industry. Rising demand for greener approaches creates an imperative for the industry to seize the moment, adopt new mindsets, and set standards for the transition to a greener future. As the world transitions to lower greenhouse-gas emissions, construction companies have a major role to play. The green buildings of the future are a chance to tap into demand that spans geographies and architectures. Indeed, greener business models are potential magnets for trillions of dollars earmarked for sustainable investment. In addition, companies that adapt effectively will ensure they are aligned with an increasingly stringent regulatory agenda. The decisions made by construction executives now will determine how they are positioned for the transition over the coming decade. Those that prepare astutely are likely to seek out emerging pockets of innovation and dial up investment in sustainable technologies and capabilities. Green steel,a new material is more expensive, and will therefore demand a new pricing model. However, significantly reducing embodied carbon in commercial buildings by as much as 70 percent by 2030. Amid tight industry margins, a priority for decision makers will be to ensure that there is a solid business case for change. The key in that regard will be to establish market position, while adjusting to a new cost base. They must also ensure that greener business models are aligned with demand that will rise at an uncertain pace over time. A tricky calculation is required, but the prize is a chance to get ahead in a market that is set for a potentially rewarding future. Construction industry emissions From houses to bridges, hospitals, and skyscrapers, the construction industry is responsible for approximately 25 […]

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