This is a presentation I gave on 23 March 2011 to a cluster of companies ranging from manufacturers, a race course company, councils, an electricity provider, to a lawyer and accountancy practice. It talks about how to achieve carbon neutrality and the different offsets one can buy. Key messages are that carbon neutrality is not for everyone, that you have to define your boundaries clearly and be transparent about them, and that you should only buy reputable offsets. Throughout the presentation I make it clear that the focus should be on carbon MANAGEMENT; it is always better to avoid and reduce carbon emissions first before offsets are bought.

1. Carbon Neutrality Most have an opinion, but what are the facts? Sustainable Business Consulting Pty Ltd Level 32, 101 Miller Street, North Sydney 2060 P: 1300 102 195 | F: +61 2 8079 6101 www.sustainablebizconsulting.com.au ACN 140 233 932 | ABN 46 506 219 241 Accredited by the NSW Government – On the panel of preferred suppliers

2. Agenda Introduction to offsets Types of offsets Offset projects Scopes Boundaries for carbon neutrality Carbon accounting – arriving at zero net emissions EPA Victoria’s carbon inventory as an example Best way of arriving at carbon neutrality How do you purchase offsets? Company examples

3. Is There Anything Specific You Would Like Me To Cover Today?

4. Introduction to Offsets 1 carbon offset represents the reduction of 1 tonne of CO2-e You are paying someone else to reduce emissions on your behalf Compliance versus Voluntary Market C V

5. Types of offsets Renewable energy (solar, wind, biomass, hydro) Energy efficiency (manufacturing processes, distribution of energy efficient products) Forestry and bio sequestration (most common in voluntary market) Methane (livestock, landfill, coal) Industrial gas destruction

6. Offset Projects - CDM Best Pictures Contest 2010 CDM PROJECT: 1229 Chile, N2O Destruction Project in the Tail Gas of the Nitric Acid Plant CDM Project: 1754 India CFL distribution CDM Project: 0268 Brazil, LagesMethane Avoidance Project CDM Project: 0740 Egypt, ZafaranaWind Power Plant Project

7. Scopes Source: http://www.cleanair-coolplanet.org/documents/zero.pdf

8. The Confusing World ofCarbon Neutrality There is no universal definition

9. What Can Be Carbon Neutral? Organisation Product Event Trip Activity

10. Boundaries Source: http://www.cleanair-coolplanet.org/documents/zero.pdf

11. Carbon Accounting – Arriving At Zero Net Emissions Scope 1 emissions + Scope 2 emissions + Scope 3 emissions = Gross emissions - Offsets = Net emissions Organisational Carbon Footprint Ideally you will have zero emissions here CARBON NEUTRAL POSITION

12. Example – Carbon Inventory EPA VIC

13. … EPA VIC Example Continued Scope 1 435.49 Scope 2 2744.29 Scope 3 1389.01 Total 1 + 2 + 3 4568.73 even less than zero!

14. The Best Way Of Arriving At Carbon Neutrality Source: http://www.cleanair-coolplanet.org/documents/zero.pdf

15. Purchasing Offsets How many do you need to buy? How much will they cost? ($5 - $50 per tonne of CO2-e) What kind of offset will you buy? Organisational values Type and location of offset project Certification to a standard? (Gold Standard, CDM, VCS, VER+) Co-benefits? (Sustainable development in developing country, creation of habitat for local flora and fauna, etc.) Go to carbonoffsetguide.com.au and choose one that suits your organisation Only buy offsets from retailers who are able to address all your queries Take your time and do your research Ensure that the offsets get retired And finally: communicate your efforts to your stakeholders, be transparent

16. Case Studies

17. City of Sydney – Carbon Neutral Organisation Measure Avoid and reduce Switch Offset

18. News Corp – Carbon Neutral Organisation

19. Qantas – Fly Carbon Neutral

20. Take-away Messages Avoid and reduce first Understand & communicate your boundaries Only buy reputable offsets

21. Thanks For Attending This Presentation Sustainable Business Consulting We are happy to help you further with your Carbon Management needs

22. Appendices

23. Why Do Companies Buy Offsets To internalisecarbon costs and raise carbon awareness To meet business goals – reduction of carbon footprint To gain market experience to prepare for a potential future ETS To enhance the brand image To attract investors (demonstrates proper handling of carbon risk) To attract and retain employees

24. ACCC And Carbon Claims Illegal for a business to make an environmental claim (e.g., ‘carbon neutral’) that is misleading or deceptive, or is likely to mislead or deceive consumers Financial penalties for false representations: $1.1 m for businesses $220,000 for individuals When making claims of carbon neutrality, spell out exactly what is included in your claim Avoid claims like ‘low carbon’ Don’t make claims about aspirational goals (‘going carbon neutral by 2030’) Be ACCURATE and SPECIFIC with your claims If you use a logo of a scheme that not many customers are familiar with, give your customers an opportunity to find out more

25. The NCOS Standard – Following On From Greenhouse Friendly Preparation of a GHG inventory Preparation of a GHG report Inclusion of all scope 1 and 2 emission sources Inclusion of the following scope 3 emission sources: Business travel Disposal of waste Paper use Emissions management plan, including strategy for carbon reduction Offsets need to be retired on a registry (offsets allowed: CDM, Gold Standard, VCS, note: no GreenPower!) Application to use NCOS logo Publication of carbon footprint/emissions reduction activities/offsets mandatory

26. EPA VIC Journey To Carbon Neutrality EPA VIC has achieved ‘carbon neutrality’ for the first time for FY 2005–06 First step was to create a robust inventory EPA Victoria looked for offset products that Were accredited to a recognised standard Were independently verified Provided other environmental benefits They also asked for documentation demonstrating that the offsets were robust