Boots Business Energy Strategy Consultant Andrew Jones is an Honours Graduate in environmental engineering who has over 35 years experience in purchasing and using energy effectively. He has worked in Mechanical & Electrical design and contracting, held senior technical, marketing and commercial posts in the electricity industry and set up and run a UK\US joint-venture energy services company. He has worked for Boots for the past 12 years where he has responsibility for energy and carbon policies, utility purchasing and projects implementation. In 2007, he was seconded to Defra as a business energy strategy consultant. He is a Fellow of the Energy Institute, a member of the Confederation of British Industry's Energy Policy Committee and an Associate Member of the UK All Party Parliamentary Climate Change Group.

What does your job entail?

"My job ranges from carbon policy development through to projects in stores, so I am preparing for and contributing to the development of the Carbon Reduction Commitment (CRC), while helping colleagues design and deliver energy reduction plans in 2,600 sites, with emphasis on the top 75 to start. We're working on designs of low carbon stores and trialling renewables, for example, measuring wind speeds at our head office site to build the case for a 50m turbine.

"I had the pleasure (yes, pleasure) of working part-time at Defra last year as a business energy strategy consultant, while working for Boots. I am still in touch with the folk there who are working on the CRC and interpretation of the Energy Services Directive. I have also been involved with the British Retail Consortium and Brussels regarding the EU energy package, forming part of a delegation that spoke to a conference of 160 there last month."

What are the biggest challenges you face in your role and how do you deal with them?

"In common with many energy managers in many other companies, I have had to compete for 'air time' and funds with many other priorities in the business. Boots has a proud track record of environmental stewardship and of investment in energy efficiency projects, but over the past few years, before Al Gore, Stern and many TV programmes, it has been a challenge to make the case for ever-increasing investment.

"In a large organisation, frequent communication, good networks and loyal friendships with colleagues are key and barriers are overcome and policies promoted by using these to the full. One has to realise that, despite the importance of mitigating climate change, recognised by Boots and my colleagues, everyone is very busy. Helping them embed good practices into their normal routines is vital. For example, energy champions in stores do a host of good energy reduction things, while carrying out the 'day job' of serving our customers."

Of Boots' key environmental goals, which has been the most successful?

"I came to Boots in 1996, from a large utilities company and I was impressed with the enlightened environmental approach. Boots had a Combined Heat and Power (CHP) plant in place since the early 1920s, but they were building a £16m 15MW state-of-the-art energy centre, not just to provide cheaper energy or have better security of supply, but because it was the right thing to do environmentally.

"One of the key environmental aims we have is to do things sustainably, so if we invest in year one and improve our CO2 output, we can still see that years later. So, I think we are quite successful at doing good engineering, not 'soundbite' things and sustaining improvements over time."

What are your proudest 'green' achievements?

"Although I often use the shorthand 'green' myself, this can mean different things to different people: some companies say they are 'green' because they have 'green' tariffs, some because they might use carbon offsetting. The Boots policy is to major on energy efficiency, to trial renewables and use them where appropriate and to consider offsetting as a sort of last resort, if at all.

"One can have a so-called 'green' building that is inefficient but has a green tariff, while a lower energy building that has a 'brown' tariff is deemed as less 'green;' that is nonsense.

"Taking all this into account, I think my proudest achievements are that our energy efficiency has mostly improved year on year. I am now [proudly] working on a detailed 2020 plan to improve our energy efficiency to meet a 30% reduction in CO2 compared to 2005."

Could you name the key ingredients for a successful low carbon initiative in any sector?

"I am happy with this question because it refers to low carbon, not 'green' or 'carbon neutral;' so it is real and measurable. Like any project, the initiative must have a clear objective, have an agreed budget, have all stakeholders on board and be measurable.

"The key is to make sure there is a connection between three things: the aspirations of the company with regard to brand/CSR; the expected shape of future EU/UK policies; and the folk who have to deliver the initiative and have to live with it afterwards.

"So, don't get too clever too soon - there's a lot of existing engineering practices, products and systems out there, before one has to jump to something new, innovative or from America."

Are current UK Government climate change targets realistic?

"Our site at Nottingham is in the EU Emissions Trading Scheme and I think we will find phase two challenging. In 2010 our other sites will come under the CRC.

"I think Defra feel it could be more challenging perhaps, but an emissions trading scheme is very new for a lot of companies, so it pays to be realistic I believe.

"The EU renewables target that might be 15% by 2020 for the UK is a very big challenge and I am not sure this is realistic. My fears are that such a stretch target might cause some dropping of heads and also might divert resources from the energy efficiency improvements that must be the priority. Possibly, the Merton Rule, particularly if it goes truly national, might have some of the same disadvantages."

What emerging energy/technology usage trends do you predict?

"The evidence from my colleagues in other companies is that everyone is attacking climate change abatement with some gusto. Significant sums are being invested. I think the trend is towards installing Automated Meter Reading (AMR) and sub-meters to monitor and control use, minimising non-trading hours consumption, and in new designs, increasing the amount of 'daylighting.'

"There is now much more use of IP addressable equipment to facilitate good control of energy and I am sure we will become more clever at identifying and reducing wastage, using better equipment."

What would you advise someone taking on a role similar to yours?

"First of all, make sure you like messing around with data; that you are numerate. Even in the policy area, the devil is in the detail and if one does not understand the numbers and the physics then it is a recipe for waffle, leading possibly to unclear decisions that might appear, rightly or wrongly, as greenwash to the outside world.

"One must be able to communicate with clarity and make recommendations to senior management of the business to enable them to make the right decisions, since in many cases one is talking about costs and potential benefits that may run into millions of pounds over a number of years. Making the right decision is therefore paramount."

Who have been your sources of inspiration?

"Many people have inspired me through their raw enthusiasm for the subject or because of a great intellectual capacity to take a wide view. I have not been inspired by number crunchers but by folk who see what the data is telling them, what it means and what the plan of action must therefore be."

Board Report

Moving To A Low Carbon Economy

As climate change has emerged as the greatest environmental challenge we face, so reducing carbon emissions, the main cause of climate change, has become a central issue for business. As we move to a more carbon-constrained world, business will have to make fundamental changes to deliver products and services to the consumer in a way that generates fewer carbon emissions.

The Carbon Trust has a critical role to play in helping to ensure the UK's carbon dioxide reduction targets are met, and works with business - including a third of FTSE 100 companies - and the public sector to identify ways of reducing carbon emissions. There is a need to encourage behavioural change among business, as well as encouraging the development of low carbon technologies.

The Challenge

All businesses, regardless of size, have a key role to play in reducing emissions. If we are to make a successful transition to a low-carbon economy, we need to make the management of carbon emissions part of "business as usual" activity. Companies are spending millions on wasted energy and needlessly emitting hundreds of thousands of tonnes of carbon into the atmosphere.

"For companies looking to reduce emissions, implementing low cost measures with immediate impact are usually a good way to start."

Businesses are responsible for around 40% of the UK's annual carbon emissions and are now realising that they need to be part of the solution - they need to manage the impacts of climate change on their operations; respond to the regulations and policies that Governments are putting into place and the pressure put upon them by shareholders, customers and other stakeholders to act responsibly and provide low carbon choices to the market. This makes good business sense, as it saves on energy costs and creates a competitive advantage for companies and their products. Many UK companies are setting a good example by substantially reducing their carbon emissions, but we still have a long way to go.

There is also increased importance being placed on renewables as the UK commits to sourcing 15% of energy from renewable sources by 2020. Developing commercially viable, low-carbon technologies is a central part of the Carbon Trust's remit. In late 2007, the Carbon Trust unveiled a £5m research and development programme that aims to unlock the potential of third-generation organic photovoltaic (PV) technology to deliver solar energy at significantly lower costs. It is believed that in the next 10 years, solar PV could become as cheap as the power currently delivered to our homes. Low carbon technologies are increasingly being adopted by business; Ford, for example, has installed wind turbines at its plant in Dagenham.

While businesses are increasingly aware of the threat of climate change, it is interesting that an increasing number - 27% - are beginning to see climate change as a business opportunity, with that number rising to 60% for FTSEs. There are increasing opportunities for companies to invest venture capital into low carbon businesses; carbon credits can be used to finance carbon reduction schemes with trading partners around the world; while recent analysis has shown that UK competitiveness will not be damaged as a result of the CO2 reduction targets set by the Emissions Trading Scheme.

Reducing Emissions

For companies looking to reduce emissions, implementing low cost measures with immediate impact are usually a good way to start; because they can act as a spring board to the development of a longer-term strategy. Indeed, low cost measures can save many businesses up to 20% on their energy bills. Last year, the Carbon Trust launched an online business carbon footprint calculator to help companies understand their energy use better, quickly quantify their carbon impacts and prioritise actions to reduce carbon emissions.

Top tips for reducing carbon emissions

Individual employees:
· Turn off lights - Lighting a typical office overnight wastes enough energy to heat water for 1000 cups of tea
· Switch off the PC - A PC Monitor switched off overnight saves enough energy to microwave six dinners
· Switching off all non essential equipment - A typical office for one night will save enough energy to run a small car for 100 miles
· Limit printing documents where possible
· Choose low carbon method of transport to and from work

Central departments:
· Review travel expenses policy - flights and hotels
· Type of lighting, recycling waste, disposal of old equipment
· Type of paper, cups, ink cartridges purchased
· Availability of video-conferencing facilities to reduce travel

Outsourced providers:
· Food with minimal packaging
· Turning elevators, IT equipment, dishwashers off at night
· Building insulation
· Checking heating and lighting is off at night

An increasing number of companies are looking for a more in depth assessment of their energy use and are working with the Carbon Trust to calculate their carbon footprint. For businesses facing rising energy prices and increased responsibility over the carbon emission they contribute, practical advice on reducing energy usage is vital. With this in mind, thousands of companies have requested and benefited from carbon surveys, in which an expert consultant conducts an on-site visit and identifies potential carbon savings, which can lead to savings of up to 30% savings on energy bills.

Larger companies, meanwhile, can benefit from a more systematic approach to managing the risks and realising the opportunities that climate change presents, such as that offered by the Carbon Trust Carbon Management Programme. Companies from Sainsbury's and Marks & Spencer to Royal Mail have benefited from this approach. It goes well beyond energy management, enabling organisations to consider both their operations and their revenue in the context of climate change. The results are cost savings, clarity around responses to legislation, operational improvements, corporate reputation and brand enhancement.

Tackling Indirect Emissions

To mitigate the effect of climate change, business needs to focus its attention, not solely on direct emissions, but also on indirect emissions from the supply chain, and managing the carbon footprint of products and services. The carbon footprint, that is the carbon dioxide and other greenhouse gases emitted across the supply chain for a single unit of a product, is calculated by considering all of the raw materials and processes required to get a product to market.

This information can then be used to identify opportunities to make significant cuts in emissions and energy costs across the lifecycle of the product. The approach can ultimately help all companies make better informed decisions in product manufacturing, purchasing, distribution and product development by considering the costs and liabilities that exist whenever carbon emissions are generated. As consumer attitudes change, it will also allow forward-thinking companies to develop low carbon products to capture new markets and generate higher profits over time.

20 companies, including Boots, Coca-Cola, Walkers and Tesco, have now committed to measuring the carbon footprint of their products, using the draft PAS2050 standard that is being developed by the Carbon Trust, Defra and BSI British Standards. The aim is to develop a single standard by which the carbon footprints of all products and services can be measured, providing reassurance and continuity of information to consumers.

The Carbon Trust has also launched a trial carbon reduction label which not only shows the carbon footprint of a product but also shows the company's commitment to reduce the carbon emissions of the product within two years. The label is being piloted by a number of UK companies including Walkers, Innocent Drinks and Halifax. UK research has indicated that 66% of consumers want to know the carbon footprint of the products they buy, and climate change is increasingly becoming an issue that will impact upon the corporate reputation of business.

It is envisaged that the label will eventually act as a bridge between carbon-conscious companies and their consumers, and not only provide a carbon measure, but also demonstrate a corporate commitment to manage and reduce the carbon emissions of the product. Displaying the carbon contents of products, and the commitment to reduce, will empower consumers to make informed choices and drive company behaviour to lower the carbon content of their products.

Conclusion

The need for businesses to take steps to cut carbon emissions has never been greater. But companies should see the move to a low-carbon economy as an opportunity to save money, to increase revenues, and to bolster reputation.

For a free employee pack, which offers advice on low or no cost energy saving measures, visit www.carbontrust.co.uk/energy or by call 0800 085 2005.

The Carbon Trust is an independent company set up by government in response to the threat of climate change, to accelerate the move to a low carbon economy by helping organisations reduce their carbon emissions and by developing commercial low carbon technologies. The Carbon Trust works with UK business and the public sector through its work in five complementary areas: insights, solutions, innovations, enterprises and investments. Together these help to explain, deliver, develop, create and finance low carbon enterprise. In FY2006/07 alone the Carbon Trust helped business and public sector organisations identify 4.6m tonnes of annual CO2 savings. Together these help to explain, deliver, develop, create and finance low carbon enterprise. For more information visit www.carbontrust.co.uk