Lockton Environment Report 2018-19
Lockton Environment Report 2018-19
LOCKTON ENVIRONMENT REPORT 2018‐19
Lockton Environment Report 2018‐19
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LOCKTON ENVIRONMENT REPORT 2018‐19
Environmental Responsibility
This report is our fourth Environmental Review and represents the first opportunity to set down a full year on year assessment of our progress towards on our CO2 targets and environmental impact targets. We have worked with our associates, through support at Executive Management Board Level and with an associates lead Environment Group, to develop further our measurement and assessment of all that we do and alter our behaviour to improve our environment position. CO2 measurement and reduction represents the core emphasis of our environment programme. Additional C02 impacts are included in our calculations for this year and all data is subjected to third party external verification. We also recognise that waste reduction and improving our recycling, with stated targets on particular areas, including plastics and paper, are also important as these pollution reductions go hand in hand with our climate change reductions to make up our overall balanced environmental programme.
Michael Kerridge SVP – UK Environment Programme Leader.
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LOCKTON ENVIRONMENT REPORT 2018‐19
We are proud to be doing what all businesses, should be doing and taking care to have a balanced programme to reduce as far as we can our environmental impact. We know that by doing so we can help preserve the planet for all the generations to come. Reducing CO2, cutting waste and pollution is second nature to us and investing in achieving further reduction targets demonstrates our willingness to support words with actions. Neil Nimmo Managing Partner LLP, Chief Executive Officer - Lockton International
Environment is not just a simple word for us, but a programme of gathering detailed information which is analysed and quantified to enable us to understand all the impacts of providing our services and skills to our clients. ISO14001 certification has underpinned us since being put in place six years ago and statutory measures like ESOS, SECR will always be met, but we will always push ourselves that little bit further, improving our environment impact alongside delivering great client service. Simon Coleman
With good leadership and with operational support the Lockton Environment Group has has the chance to bring associate concerns and suggestions into the environment programme. By being part of this team and helping bring forward ideas I hope that all associates can see that Lockton really does have a commitment to the future. Climate change and recycling and alternatives to plastics have all been reviewed within the group and action put forward and taken up. Ian Blackadder Partner Real Estate And Construction & Chairman of the Lockton Environmental Group
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LOCKTON ENVIRONMENT REPORT 2018‐19
CO2 Report Emission data and review
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LOCKTON ENVIRONMENT REPORT 2018‐19 CO2 Emission and Review Summary In the twelve month perio May 2018 to End of April 2019 Lockton activities in UK and Ireland generated 1,845 tonnes CO2e, this represents an overall reduction of over 21%. The majority of the reduction comes from now having our electrical energy in our London HQ building at St Botolph now coming from confirmed 100% renewable generation, with zero carbon dioxide. We have also seen a small reduction in flights flown and reductions in paper use and waste generated. All of these changes, when combined with an increased headcount and an increase in turnover means that as well as an absolute reduction in Co2 emissions we also have reduced the Co2 impact per associate by over 22% and the Co2 impact per £M of turnover reduced by over 25%. 1
21% Reduction in our total CO2e in the last 12 months
Analysis Methodology We have continued to use the methodology that we adopted for the first time last year, and that is reporting our emissions based on a period that aligns with our financial year and using an external third party, Carbon Footprint, to take our raw data and using GHG protocol and Defra guidelines, using the latest metrics from BEIS. All results then validated to ISO14064‐3. Emissions totals are calculated by multiplying activity data (i.e. electricity consumption) with the appropriate emissions factor (i.e. UK electricity).
Three emission scopes are set down in the GHG protocol and are detailed below:
1 2017‐18 Figures are restated to use common CO2/£m comparison to this year.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Scope 1: Direct emissions Occur from sources that are owned or controlled by Lockton. Examples: Fuel combustion, Scope 2: Electricity indirect emissions GHG emissions from the generation of purchased electricity consumed by Lockton (using both location and market based approach) Scope 3: Other indirect emissions An optional reporting category for all other indirect emissions that are a consequence of our activities. These occur from sources not owned or controlled by the company. Examples: electricity transmission & distribution losses, employee business travel, extraction & production of purchased materials, transportation of purchased materials or goods, contractor owned vehicles, outsourced activities, waste disposal etc. Scope 1 Emissions 23.05t
Our total Scope 1 Emissions for the period 2018‐19 are 23.05t, which is an absolute increase on 2017‐18 as we are now measuring both emissions from gas used for office energy in Edinburgh and emissions from petrol consumed for to company owned car, where we buy the fuel. In absolute terms for just the gas consumption in Edinburgh we have lowered the consumed gas and emissions from the prior year by 17% from 17.1t to 14.2t. The car emissions total 8.87t.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Scope 2 Emissions 139.34t
Our total kWh all sites electrical consumption for the period was 2,236,006kWh. This represents a very slight reduction of 20,260kwh in our overall electrical consumption year on year, a downwards change of ‐0.9%. The changes being mainly a 3% reduction of electricity used in the HQ building at St Botolph Building, offset by a slight increase in occupied floor area due to an office relocation in Manchester.
73% reduction in emissions from electricity consumption saving 379t CO2e
The use of renewable energy represents the biggest change for us over the past 12 months. We are now able to confirm that the London HQ is supplied electricity via a 100% renewable generation contract and that as a consequence our scope 2 emissions have reduced by 73.1%. Some of our other locations have also reduced the CO2e impact by a mix of lowering their kWh consumed and by a positive change in the renewable generation percentage of their supplied electricity. Overall this represents a reduction of 379 tCO2e from the prior year total of 518.30 to the current reporting year total of 139.34t.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Scope 3 Emissions 1,683t
Waste Numbers approx.0.1tCO2 e per month, too small to show on graph
The data for the scope 3 emissions is reported in the table below, illustrated in the graph above. We have included taxi information for the first time and now have paper consumption figures for the whole of the UK. Whilst we had hoped to be able to report on waste information CO2e for each location, we have not yet achieved this and consolidated data is limited to the HQ building at St Botolph.
Overall our measured scope3 tCO2e for 2018‐19 was 1,683t, a reduction of 7.3% the majority of this coming from a slight reduction in aircraft miles flown, there were small increases in car and rail CO2e
2017/18
2018/19
% Change
Scope
‐8.4% 2.8%
Flights
1,418.89
1,299.64
Rail Travel Taxi Travel Car Travel
31.67
32.55
‐
0.00
6.95
3
1.1%
259.14
261.92
Waste Paper
‐17.4% ‐12.8% ‐26.6%
1.53
1.27
30.60 74.16
26.68 54.46
Site Electricity (T&D)
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LOCKTON ENVIRONMENT REPORT 2018‐19 CO2e Assessment and Commentary This year’s data reveals a welcome drop in our overall CO2e emissions, with the majority of the reduction coming from a renewable electricity supply service at the London HQ contributing to the lower total of 1,845t CO2e. We have a slight reduction of the flight CO2e which has dropped by 119t, however the percentage of our overall CO2e generated from flights has increased, as savings in other areas have reduced the overall total. This year flights represent 70.41% of our total CO2e, up from 60.35% in 2017‐18.
The switch to renewable electricity means that associate car travel on business in the UK now represents our second largest source of C02e emissions and these slightly increased year on year to a total of 1.92t. Associate travel, including Air, Train, Taxi, and personal car use represents 87.22% of all our measure emissions. All of these amounts in this section are in tonnes CO2e and are absolute quantities. These The second part of this report is our carbon offsetting. in the second part of this report the third section analyses performance against targets which are generally taken as CO2e per associate for the area being targeted.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Carbon Offsetting Our step further
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LOCKTON ENVIRONMENT REPORT 2018‐19
Whilst being committed to reducing our carbon emissions we took the decision last year to offset all of our generated CO2e. Working with our external partner, Carbon Footprint, and by selecting Gold Standard accredited schemes, we purchased carbon credits to offset all our emissions. The Gold Standard is a non‐profit Swiss Foundation, endorsed by 80+ international non‐government organisations and has more than 1,400 projects in 80 countries undergoing certification. The Gold Standard has become the global benchmark for the highest integrity and greatest impact in climate and development initiatives. 2
We offset all our Carbon emissions
In their words, “Carbon markets enable carbon offsetting, the process by which businesses and individuals purchase carbon credits ‐‐ or certified GHG emission reductions ‐‐ to take accountability for their unavoidable emissions and help finance the global transition to a low carbon economy. Gold Standard certification ensures that these emission reductions are real, 'additional,' and permanent, coming from projects that also contribute to a minimum of three Sustainable Development Goals.” All 2,351 tonnes were offset in our previous year and the scheme selected was the Uganda Clean Water Borehole Project.
The project is located primarily in the North Region of Uganda, within the Districts of Alebtong, Kole and Dokolo and approximately 60% of the people in the Districts do not have access to clean water and rely exclusively on open wells, lakes and other unprotected sources. The struggle to find clean safe drinking water can take a major part of a family's resource. More often than not the burden falls to women and children to collect water often walking a great distance from home. Even then water drawn from pools or rivers is often contaminated with pollutants and potentially lethal bacteria that cause illness and infections, and so to make the water palatable and safe to drink it needs to be boiled. The project works with local communities to identify and repair the many broken boreholes in Uganda. As well as the natural health benefits it means that families no longer have to boil the water, saving firewood and thereby preventing carbon emissions from being released. We will again be offsetting all our 2018‐19 CO2e.
2 https://www.goldstandard.org/impact‐quantification/carbon‐markets
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LOCKTON ENVIRONMENT REPORT 2018‐19
We help our associates offset their personal household CO2
We recognise that our associates want to do as much as possible to help reduce their own personal carbon Footprint. In response to this expressed desire we therefore introduced a voluntary employee benefit last year to help associates offset their Carbon Footprint. Again we worked with Carbon Footprint to set the programme in motion and after careful consideration set up a scheme whereby Lockton contributes 50% of the cost of the Carbon Offset and the associate contributes the remainder on a monthly basis. The amount of carbon to be offset was calculated by Carbon Footprint using nationally published data sources for household CO2 generated and the cost to the associate was a simple £2.50 per month. The associates selected the scheme they wanted to support from a short list drawn up by Carbon footprint and they decided to support the same project as for the Lockton Business offset and for the first six months of the scheme a total of 590 tonnes of CO2 was offset by those associates who joined the scheme. All associates received a personalised certificate for taking part.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Our Reduction Targets Performance towards our existing goals and new goals for the future.
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LOCKTON ENVIRONMENT REPORT 2018‐19 How did we do in our CO2 Reduction and our other Targets Absolute reductions and performance reductions We stated earlier that we have educed our overall t tal CO2e by over 21%. However when a business is successful and is growing, in both turnover and headcount, it can be slightly misleading to use an absolute measure, as there comes a point where delivery of growth will lead to an absolute increase in CO2. Last year we therefore adopted a series of performance metrics based around our headcount and set targets for improvements, some short term, others longer term. Electricity We set ourselves two targets last year. o To reduce our scope 2 and scope 3 (Transmission and distribution) electricity use emissions by 20% by the end of the 2023 financial year, when measured against a base year of 2016‐17. o To reduce the kWh consumed per associate by 15% over the same period, 2017 ‐2023. Overall, if we were to meet these targets then an estimated 166 tonnes of CO2 would be eliminated from our 2023 total. Performance against target CO2/Associate
Following to the adoption of renewable generation for the electric supply at the London HQ, the overall CO2 per associate for the UK has already dropped to 170.6kg per associate, exceeding the 444kg/associate target set for 2023. However, we are susceptible to changes in the supply source by our landlords and so we are retaining the 2023 target at present and will monitor against this. kWh/Associate Increased energy efficiency measures in London, mainly through reduced hours of plant operation, have contributed to a reduction in overall kWh for the year. An increase in headcount over the same period means that we had a net reduction per associate for electricity consumed of 146kwh per associate, representing ‐6.9%. Analysis shows us ahead of target for the 2023 15% reduction.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Gas We set a single CO2 five year target last year, a 5% reduction in gas consumed and co2 generated, at the single location using it.
Performance against target
CO2 The CO2e/kWh consumed has not changed in calorific value between years so the CO2e calculation method remains unchanged. The CO2e saving is already ahead of target.
KWH Due to improved efficiency of a replacement boiler the overall gas consumption has dropped. We are still retaining the five year target at present.
The single location using gas means that scope for changing the reduction target is limited, with the major action of replacement of the boiler being the change that could most impact that building. The building is listed and is in a conservation area and there are internal alteration restrictions that mean improving the thermal efficiency is not possible.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Transport and Travel Transport remains the biggest source of our CO2e emissions, with flights making up the bulk of the split. Due to the nature of our business and the requirement to deliver our services face to face with our clients, wherever they may be based, we recognised that limiting our travel to our clients would compromise the very heart and soul of our business, which is class leading client service – our “broking done differently” offering. So last year we set out to limit travel related to internal meetings, with an estimate that by reducing these by 33% within five years then we would save approximately 8‐10% of the overall travel CO2 emissions.
Performance against target CO2
Acquisition of our transport data has been historically difficult due to the varied methods of associates themselves acquiring the travel, either through travel management companies or direct with the transport company and the accuracy of the information returned from associates via expense claims. Therefore a review of the methodology has formed part of an operational project over the past three months and the outcome is now that we will be seeking to place our travel through a travel management company, for all short and long haul travel, enabling accurate data for future years. However, analysis of lasts years data against this years does allow an assessment of progress towards the 10% reduction in travel or 33 % reduction for internal meeting travel.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Performance against target By taking all travel CO2 and measuring it against headcount it is possible to calculate the travel CO2e/associate/Per annum. In the prior year this calculated to 1.6t CO2e/associate.
This year we have added the travel taxi expenses claimed through the various taxi accounts held by the business and also added the company vehicle. The overall CO2e this year then calculates to 1.61t CO2e/associate. This is a year on year reduction due to slight drop in air travel. We will continue to monitor this reduction as recording methods improve and we are retaining the 33% reduction in travel for internal meetings with an estimated 10% overall reduction, as the only stated target. Improvements in the installed audio visual technology have already contributed to a reduction in UK travel on internal meetings. The current split by transport type reveals the graph on the right. 81% of all travel Co2 is flights and 16% is associates driving their own vehicles on company business.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Paper Use Paper use does not have a huge CO2e impact and we recognised this last year when setting targets. We set one reduction target and one technical target. o An overall CO2e 30% reduction in paper use per associate within 5 years. o Alongside this we set a 25% of the paper we use to come from recycled sources by 2020 Performance against target The methodology takes all sizes of paper and converts to a standard A4 sheet and then uses this as the baseline to calculate overall quantity, our prior year overall total was 6,530,180. This years is 5,679,010.
This puts us ahead of target to meet the five year reduction target. Recycled paper was our second target, we have now identified a suitable stock 80g recycled paper for general use and this has been in use since February 2019 in London and is replacing the standard stock for all locations. When a full year of use of this paper is reviewed we expect our recycled paper use to be far in excess of the stated 25% target next year. Waste As observed previously waste in and of itself does not have a large CO2e impact. However we recognise that it does have a social and pollution impact that can be reduced if the quantity of waste can be lowered and the reuse and recycling of the waste can be improved. We did set targets last year
o Getting accurate waste quantity totals from each location o Reducing London Waste Quantity per associate by 10% by 2020 And three responsible sourcing targets o Removal of plastics from use in our supply chain o Recycle and Reuse surplus IT equipment and Furniture o Use of recycled materials in products that we by for Stationery.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Performance against target We have not been successful in getting accurate data from all locations, the involvement of multiple different parties, on our side for cleaning, and on the landlord side for waste removal and estate management has frustrated this effort this year. As such we will be focusing on this going forward this year. London Waste Disposal. We have continued to maintain good accurate data for the waste performance in London. 2018‐19 saw a reduction in the overall waste reduction of 11.28tonnes, or 16% in absolute terms. This reduction in waste quantity is partly due to the increased amount generated in the preceding year due to extensive work undertaken to rationalise and remove on site files retained, as the record technology moved more to electronic filing. This reduction already exceed the overall target set for 2020 and so we are not setting an immediate target new target for next year, and will monitor performance against the stated target to ensure waste does not increase, or the CO2 generated from it. Recycle IT equipment and Furniture Through working with EOL on surplus IT equipment we have ensured accredited data wiping has taken place and allowed reuse (upcycling) by others of equipment. The remainder has been broken down into spares for reuse by others. We will continue to work with EOL on electrical and technology recycling. Our prime furniture supplier is Senator and we have worked with them to ensure surplus furniture is taken by them to their UK based dismantling facility. We have recycled through them all surplus furniture that we have been unable to place with alternative users.
Waste Target 2019‐20 The primary objective of getting sound data for all sites will be the focus of activity in this area for 2019‐20, the aim then being to set targets for future years.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Pollution and Plastics. New Key Target 2021
As a direct consequence of input from associates via the Lockton Environment Group and with support from the LLP executive we have now adopted a primary target related to plastics and to remove all single use plastic from the business and identify and remove all unnecessary plastic use from the business by the end of the 2021 financial year. Secondary Targets Alongside this prime target we have a series of secondary plastics removal targets and the following are planned to be implemented in the next 12 month period. Adopt bulk delivery and dispense via refill for all cleaning and bathroom products, stopping waste bottles. Adopt house style meeting badging and information using plastic free presentation Removal of plastic single use bags from the waste collection and cleaning process Remove plastic based corporate and marketing products. Adopt non plastic milk delivery and dispense within the offices Maximise use of all electronic email and social media to distribute messages and information to associates. Maximise the use of plastic free products in all office stationery, including bamboo, wood and other products. Client Presentations and bound folders, redesign the Lockton presentation folder and house style to remove plastics from the process whilst retaining the professional Lockton production values. Request all Lockton suppliers and their subcontractors and suppliers to remove single use and unnecessary plastics from their service provision to Lockton.
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LOCKTON ENVIRONMENT REPORT 2018‐19
Environmental accreditation
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LOCKTON ENVIRONMENT REPORT 2018‐19
We have held this accreditation since 2013, having made the decision that it was appropriate for Lockton to lead on this and be the first London Market Broker to obtain this internationally recognised environment accreditation. Extensive work is undertaken during the year to maintain and update the management systems and records and essential external verification takes place in March each year. We work with Equas as our external partner to provide the control software and advice on operation and maintenance of our systems and with ACS Registrars as our external Audit. The Environment Policy forms part of the Lockton ISO 14001 Environment Management System and is reproduced below. Lockton Environmental Policy Lockton continues to hold UKAS externally accredited ISO14001:2015 Environment Management System
Lockton Companies LLP recognises that its business activities interact with the environment in a variety ways. These activities have an impact in the key areas of:
Raw material use Energy use Generation of waste materials
The company recognises that it has a responsibility to help protect the environment wherever it has an opportunity to do so, be a responsible neighbour and to provide a comfortable environment for its associates to work in. As such, the company is committed to: Continual improvement in the environmental impact of its business activities Preventing pollution wherever possible Complying with all relevant legal, customer, and other environmental requirements Occupying and using its offices in a manner which minimises the consumption of energy Improving the efficiency with which it uses office materials Minimising the generation of waste materials and their environmental impact
The company will achieve these commitments through the following means:
The implementation and maintenance of an Environmental Management System that is independently certified as compliant with ISO 14001:2015 Employing processes that identify the aspects of the Company’s business that have an environmental impact and quantifying the significance of each aspect Setting objectives for reducing its environmental impact and maintaining an environmental performance improvement programme to enable them to be achieved Ensuring that its associates, suppliers and customers are aware of any support required by them to support the Company’s commitments and environmental objectives Ensuring that all electrical and electronic devices purchased must have the highest energy rating available unless there is a justifiable business case for doing otherwise
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LOCKTON ENVIRONMENT REPORT 2018‐19
Ensuring that all paper purchased must contains at least 90% recycled content or is from a certified sustainable source
Facilitating the re‐use and recycling of all waste materials and redundant equipment generated by the company wherever it is economically viable to do so Training its associates in good environmental protection practices and encouraging associate involvement in environmental improvement initiatives Continually monitoring the environmental impact of its business activities This Environmental Policy is an integral part of the company’s business and must be supported by all associates as an integral part of their daily work.
Simon Coleman, COO, March 2019
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LOCKTON ENVIRONMENT REPORT 2018‐19
CO2 Measurement Validation to ISO14064‐3
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