how to use life cycle assessment to reduce your scope 3

How to use life cycle assessment to reduce your scope 3 carbon emissions

12 October 2021

Sam Turner | Sam Hinton | Oli Lockhart

2

Who we are

3

• Why Scope 3 matters

• HVMC project to quantify off-shored emissions

• Potential for UK manufacturers to reduce

emissions by greenshoring

• Advice on how to quantify your own emissions and

take advantage of opportunity offered to UK

manufacturers

This webinar

PRESENTERS

Sam Turner

Sam Hinton

Oli Lockhart

Chief Technology Officer, HVM Catapult

Senior LCA Consultant, Ricardo

Senior Consultant, Carbon Management

and Net Zero, Ricardo

6

Any questions?

You can submit your question or comment in writing at any time during the webinar, using the control panel on your screen.

The control panel is

usually located in the

top right or top left

of your screen.

Scope 3 emissions: the challenge and

opportunityTHE ISSUE

8

The Engineering Challenge

10 point plan: Engineers and manufacturers will deliver many of the solutions to the Net

Zero challenge:

• Clean energy

• Decarbonised transport

• Sustainable buildings

+ Sustainable design + make

Chance to win UK engineering and manufacturing content

We must build these solutions with a net zero carbon manufacturing footprint

9

Definitions

• Embodied emissions: GHG emissions that are attributable to the mining, extraction,

transport, manufacture of a product

• Green Shoring*: Relocation of manufacturing supply chains to regions/ facilities with lower

GHG emissions

• UK Consumption emissions: Emissions attributable to goods and services consumed within

the UK

*Coined as part of Cross Catapult Net Zero Programme

10

Ref Prof Barret-

Leeds MRIO

Figure 4. 2017 UK emissions breakdown

11

UK manufacturing emissions headlines

• Emissions from manufacturing

could be as high as 43% of the

total UK consumption

emissions.

• UK consumption emissions

have flatlined while UK

territorial manufacturing

emissions have halved.

12

Intervention & innovation opportunities

Sector supply chain mapping will identify

high emitting steps in the chain and

opportunities for UK innovation and

‘Green-shoring’

13

MRIO – Sector lifecycle view of emissions

Raw Materials

Extraction

Materials

Processing

Engineering

Sub-component

Manufacturing

Operation of

Product through

life

Assembly of

Sub-systems

into a final

Product

Assembly of Sub-

components into

a Sub-system

MRIO

model (1)MRIO model (3)

MRIO

model (2)

UK Aerospace sector manufacturing apportionment of emissions from MRIO model (Top 20 attributable SIC codes- scaled from 52% total sector manufacturing emissions)

24

%60%

16

%

14

MRIO – Sector lifecycle view of emissions

Raw Materials

Extraction

Materials

Processing

Engineering

Sub-component

Manufacturing

Operation of

Product through

life

Assembly of

Sub-systems

into a final

Product

Assembly of Sub-

components into

a Sub-system

MRIO

model (1)MRIO model (3)

MRIO

model (2)

UK Automotive sector manufacturing apportionment of emissions from MRIO model

(Top 20 attributable SIC codes- scaled from 54% total sector manufacturing emissions)

25

%46%

29

%

15

Incentivise and reward OEMs and suppliers

We see four ways in which supply chain decarbonisation can be incentivised:

1. National legislation (carbon regulator or carbon pricing).

2. Voluntary sector standards and norms adopted across supply chains.

3. Consumer demand, enabled though visibility and embodied carbon tracking.

4. Investor choice; investors and funds favouring low carbon technologies.

16

UK Leadership

The UK has 1.1% of global emissions & offshore 89% of manufacturing emissions.

The impact can be much greater as a leader and exporter of technology & standards.

Lead the way in accounting for scope 3 or consumption emissions to amplify impact - Lead

the green industrial revolution just as we led the first…

…& become a global supply chain destination for sustainable manufacturing

17

Sector and business opportunities

Whole lifecycle and embodied carbon

analysis will pinpoint opportunities and

enable businesses to evidence their net

zero credentials

PLCA deep dives in Automotive, Aerospace, Nuclear & Offshore Wind to identify opportunities

POLL

What is your main driver for tackling your embodied emissions?

Client pressure

Investor pressure

Reputation

LCA of embodied carbon emissionsCASE STUDY

20

End of lifeManufacturing Distribution Retail UseComponents

What is Life Cycle Assessment (LCA)?

Raw material Energy Water

Carbon

emissions

CO2

Inp

uts

Su

pp

ly c

ha

inIm

pa

cts

ISO 14040 defines Life Cycle

Assessment to be the…

“compilation and evaluation of

the inputs, outputs and the

potential environmental impacts

of a product system throughout

its life cycle”

21

End of lifeManufacturing Distribution Retail UseComponents

What is Life Cycle Assessment (LCA)?

Raw material Energy Water

Carbon

emissions

CO2

Inp

uts

Su

pp

ly c

ha

inIm

pa

cts

ISO 14040 defines Life Cycle

Assessment to be the…

“compilation and evaluation of

the inputs, outputs and the

potential environmental impacts

of a product system throughout

its life cycle”

22

Product systems

• 1.5GW wind farm

• 100 15MW turbines

• ~84% Metal

• ~8% Concrete

• ~6% Composite

• ABWR fuel assembly

• ~52% Steel

• ~24% UO2

• ~14% Zircaloy

• C-Segment EDU

• ~49% Steel

• ~35% Aluminium

• ~10% Copper

Nuclear fuel assemblyAutomotive electric drive unitWind turbine

23

Wind turbine, breakdown by mass and GWP

Model built within LCA software,

SimaPro, using the ecoinvent

database

Model can be summarised as:

• Blades

• Nacelle

• Tower

• Farm infrastructure

24

What did we find?

• Mass dominated by metal (more specifically

steel)

• GWP, need to focus on steel and composites

Wind turbine, breakdown by mass and GWP

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mass GWP

Other Composite Metal Rare earth Concrete

25

Steel

59%

23%

11%

<1%

• We obtained details on steel production,

• Extracted and refined in India,

• Shipped to NL and shaped

26

Steel

59%

23%

11%

<1%

• We obtained details on steel production,

• Extracted and refined in India,

• Shipped to NL and shaped

What next?

• How do these results change if manufacturing

occurs in the UK?

• How might recycled content affect the results?

27

Steel

FOOTER INFO

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

kgC

O2eq/ kW

h

Region

28

Rebuilt model to use:

• UK Steel

• UK based EAF

• Iron scrap, as opposed to virgin iron ore

extraction

• UK based steel rolling

Steel, UK scenario

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mass GWP GWP, UK

Other Composite Metal Rare earth Concrete

29

Onshoring CFRP and Steel

0

50

100

150

200

250

300

350

400B

lad

e m

at

Nace

lle m

at

Arm

ou

rin

g

Mo

no

pile

fo

un

da

tio

n

To

wer

mat

Con

du

cto

r

Bla

de

ma

t w

aste

Insu

latio

n

Tra

nsfo

rmers

(assu

med

2p

er

sub

sta

tion

)

Lea

d s

he

ath

Fo

un

datio

ns, la

nd

pre

pa

ratio

n

MP

tra

nsitio

n p

iece

-p

rim

ary

ste

el

Su

bsta

tio

n ja

cket

foun

datio

n

Bla

de

en

erg

y

Pla

tfo

rm

Oth

er

Su

bsta

tio

n ja

cket

pile

s

Sw

itch

gea

r

Bla

de

co

nsu

m

MP

tra

nsitio

n p

iece

-secon

da

ry s

tee

l

Fib

re O

ptic U

nit

ktC

O2e

Components of Wind Turbine

Composite Concrete Metal Other Rare earth Energy Waste Default scen

38%reduction overall

30

Nuclear Fuel Assembly, onshoring

0 300 600 900 1,200 1,500

Fuel pellets

Outer packaging

Clamshell

Transport

Skeleton

Intermediate spacer grids

End spacer grids

Top nozzle spring system

Intermediate products

Rod springs

Rod end plugs

Fuel rod support tubes

Bottom nozzle

Fuel rod cladding tubes

End nozzles

Debris filter

Guide thimble tube

Co

mp

on

en

t ty

pe

0.0 2.0 4.0 6.0 0 0.1 0.2

Aluminium

Steel

Zircaloy

Metal(other)

Process

Transport

Fuel

Reductions

45%reduction overall

31

EDU, onshoring

0 10 20 30 40 50 60 70 80 90 100 110 120 130

Fixings/Thermal Interface

Fixings/ Extras

Ancillary Components

Bearings

Shaft and Bearings

Gears, Shaft and bearing

Rotor Fastening

Stator Insulation

Gearbox Castings

Differential

Driver Board

HV Connections

Control Board

PE Casing

DC-link

Power Module

Housing

Active Components

kgCO2e

Com

ponent

Aluminium Steel Metal (other) Polymer Chemical Composite Other Carbon saving62%reduction overall

32

• UK offshores 89% of manufacturing emissions.

• Must look ‘upstream’ to reduce global emissions

• LCA can quantify upstream emissions and

opportunity offered by ‘greenshoring’

• Case studies show potential for reduction

• Wind 38%

• Nuclear 45%

• EDU 62%

Summary

POLL

Where do you see your organisation in terms of sustainability?

Leading the pack

Midfield

Needing to catch up

How to understand your emissions and

make the most of the opportunityAPPLICATION

35

Scope 3 emissions – how to understand them and make the most of the opportunity

36

What are scope 3 emissions?

Scope 3 – How to understand your emissions and make the most of the opportunity

Source: GHG Protocol

37

What are scope 3 emissions?


Average emissions breakdown

Source: CDP

Ricardo’s emissions breakdown

38

The impact of scope 3 emissions


Source: Climate Action Tracker

39



Source: Climate Action Tracker & CDP

40



Source: Climate Action Tracker & CDP

41

The business case


Demonstrate leadership

Identify resource and supply chain risks

Innovation

Access to capital

Legislation / regulation changes

Supplier engagement

Opportunities: Challenges:

Data availability

Resource and competing priorities

Complex value chains

Supplier engagement

42

Data hierarchy


1. Spend based data

e.g. GHG evaluator tool

2. Physical data (LCA)

Weights/volumes & average

emissions factors

3. Hybrid method

Combination of average & value

chain specific data

4. Energy & emissions data

Actual value chain partner energy &

emissions data

Incre

asin

g a

ccu

racy

43

Scope 3 is a process


Gap analysis

Inventory development

Action planning

Implement

Screening

Supplier engagement

44

Physical & energy

Estimates & spend

Activity D

ata

Em

issio

ns

Fa

cto

r

Scope 3

Emissions

x

=

Physical & energy

Value chain specific

Average data

Increasing supplier engagement, time & accuracy

Estimates & spend

Physical & energy


Average data

Estimates & spend


Average data

Data methodology development


45

Action planning and implementation


Scope 3

target

Scope 3 reduction projects /

programmes:

• Sustainable procurement

• Product design

• Supplier engagement

• Customer engagement

• Investment strategy

• Travel policies

• Transport and logistics

• Waste and water

management

POLL

What stage are you at with scope 3?

Not considered it yet

Thinking about it but not started a plan

Started to form a plan

Have a plan in place

Started implementing solutions

CONTACT US

Sam Turner

Sam Hinton

Oli Lockhart

Chief Technology Officer, HVM Catapult

https://hvm.catapult.org.uk/talk-to-us

Senior LCA Consultant, Ricardo

[email protected] | +44 (0)1235 753 000

Senior Consultant, Carbon Management

and Net Zero, Ricardo

[email protected] | +44 (0)1235 753 000

how to use life cycle assessment to reduce your scope 3

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