Road to Net Zero: A roadmap for the paints, coatings, printing ink and wallcoverings sector

ROAD TO NET ZERO A roadmap for the paints, coatings, printing inks and wallcoverings sector Patricia Durany-Fernandez, Sustainability Manager coatings.org.uk

Version 1, November 2023 Road to Net Zero

1

CONTENTS

1. FOREWORD 3 2. EXECUTIVE SUMMARY 4 3. INTRODUCTION 6 3.1.

The climate emergency 6 3.2. About this roadmap 7 3.3. Our commitment to Net Zero by 2050 8 3.4. Greenhouse gas emissions definitions 8 3.5. Our sector emissions 10 4. PLANNING FOR NET ZERO 12 4.1.

The role of coatings in achieving Net Zero 12 4.2. Our Net Zero journey 13 4.2.1. Coatings Care 14 4.2.2. Recovering and recycling leftover decorative paint 17 4.2.3. Our Net Zero timeline 18 4.3. Strategic framework 19 5. SCOPING AND MEASURING YOUR CARBON FOOTPRINT 20 5.1.

Selecting the baseline data 20 5.2. Calculating emissions 22 5.2.1. Scope 3 emissions 24 5.2.2. Life Cycle Assessments 25 5.2.3. Emission factors 26 5.2.4. GHG Protocol calculation tools 27 5.3. Carbon reporting 28 6. TARGET SETTING 31 7. CARBON REDUCTION PLAN 34 7.1.

Energy efficiency 35 7.2. Resource efficiency 37 7.3. Carbon capture, utilisation and storage 38 7.4. Supply chain collaboration 38 7.5. Carbon reduction checklists 38 8. CARBON OFFSETTING 42 9. RECOMMENDATIONS FOR GOVERNMENT 44 10. NEXT STEPS 45 11. ACKNOWLEDGEMENTS 45 12. APPENDICES 46 12.1. Appendix A: BCF members’ Net Zero roadmaps 46 12.2. Appendix B: Other sectors’ Net Zero roadmaps 50 12.3. Appendix C: Net Zero guidance 53 12.4. Appendix D: Government grants and funding 55 12.5. Appendix E: The world’s Net Zero commitments 57 2

Road to Net Zero

Sharon Harte, President of the British Coatings Federation and Managing Director of Dacrylate Paints “The UK paints, coatings, printing inks and wallcoverings sector has always adapted to changing conditions, including in recent years EU Exit and the coronavirus pandemic. The next great challenge is to tackle climate change, and put our sector firmly on the road to delivering Net Zero greenhouse gas (GHG) emissions by 2050.

In October 2021, the British Coatings Federation (BCF) Board of Directors, on behalf of our members, pledged that the coatings industry will reach Net Zero carbon emissions by 2050, and we are committed to do this in a credible and just way.

BCF is totally committed to help its members achieve this target and has therefore developed a sector-wide Net Zero roadmap along with a practical ‘Quick Start Guide’ to support its members on their individual Net Zero journeys.

FOREWORD

The roadmap described in this report aims to set the British coatings industry in line with the UK Government ambition to align our economy with Net Zero.

Coatings manufacturing will form the core of our Net Zero commitment. As a sign of how important we recognise dealing with upstream and downstream emissions are, we are holding a seminar on scope 3 emissions with suppliers on the day of this roadmap’s official launch.

Our projected emission levels for scope 1 and 2 suggest that in order to reach Net Zero by 2050 our industry will have to achieve a 38% reduction of GHG emissions by 2030, a 53% reduction by 2035 and a 69% reduction by 2040, compared to the 2018 baseline. While this is true for our sector as a whole, we need to recognise that different sub-sectors making up our membership may need to move at different paces, as their energy needs and challenges are sometimes different.

It is important to recognise the key role the coatings industry has in reducing resource use across the economy. This includes helping to extend the life cycle of concrete, metal and wooden buildings, bridges and many other manufactured products. Coatings and printing inks will continue to support packaging and delay the replacement of products they are applied to, or making them more suitable for recycling.

It is also important to note that the BCF’s own Coatings Care 1 programme, which has been running since 1996, will be a key tool to measure progress towards Net Zero, and it will continue to drive improvement across a range of environmental and safety measures. In addition, BCF’s paint recycling scheme, PaintCare 2, will play a significant role in establishing a circular economy for leftover paint in the UK, with the aim to recycle 75% of leftover paint by 2030 from a base of only 2% today.

To conclude: this roadmap outlines the paints, coatings, printing inks and wallcoverings industry’s commitment to achieving Net Zero and how the industry plans to get there. There are practical steps that the industry can start taking now, and this roadmap highlights key actions manufacturers can take at every stage of the value chain to reach Net Zero. The roadmap will be updated periodically to add in new best practice and measure progress against our targets. There is additional guidance for BCF members appended to this roadmap, including examples of other roadmaps and a comprehensive list of Government grants and funding options available.

This is the first sectoral roadmap published for our industry; it is the first step on our collective journey to reach Net Zero. We will look to update and improve the data we have, as well as take into account new improved ways of achieving results in further editions of this document. In the meantime, I am proud of the substantive start we have made to the Net Zero journey and commend this roadmap to BCF members and stakeholders.”

1 2

https://coatings.org.uk/page/CoatingsCare https://coatings.org.uk/page/PaintCare

Road to Net Zero

3

EXECUTIVE SUMMARY

Paints, coatings, printing inks and wallcoverings (collectively described as “coatings” in this roadmap) play a fundamental role in saving resources: they help reduce the environmental footprint as they extend the life cycle of many products, delay replacement of those products, or make them more suitable for recycling. Moreover, new technologies with reflective or absorbative qualities will also come to the fore, increasing energy efficiency of buildings. Our industry will therefore play a major role in enabling the UK to achieve its Net Zero target.

This roadmap establishes a pathway for UK coatings production to reduce Greenhouse Gas (GHG) emissions in line with between 1.5°C and 2°C of global warming as targeted in the aims of the Paris Agreement 3. To reach Net Zero, the net global emissions must be reduced by 45% by 2030 and fall to zero by 2050 4. In response to this, the UK Government has committed to its own targets and published their Net-Zero strategy 5, outlining the changes needed to achieve these goals.

The BCF has been tracking the manufacturing performance of its members since 1996 via its Coatings Care programme, which provides an opportunity for members to benchmark their environmental performance. The Coatings Care programme is a key part of BCF’s Sustainable Coatings campaign and its commitment to Net Zero, and it will continue to drive improvement across a range of environmental and safety measures.

Also, the BCF’s PaintCare scheme aims to collect and reuse or remanufacture 30 million litres and recycle another 10 million litres of leftover paint, which will reduce the overall environmental impact of leftover paint and create hundreds of new jobs. PaintCare will be a key waypoint in our Net Zero journey that will establish a circular economy model for leftover paint in the UK, aiming to achieve a target of 75% leftover paint recycled by 2030.

Measuring the GHG emissions arising from business activities over a defined period will determine an organisation’s carbon footprint, which is an important starting point in any Net Zero strategy. The carbon footprint (or GHG inventory) enables the organisation to understand its carbon hotspots and it can be used to benchmark and to identify future carbon reduction actions. Many BCF members are well on the road to Net Zero, reducing their carbon emissions and reporting to high standards such as the Science Based Targets initiative (SBTi) 6. However, some BCF members who might be completely new to reporting may need to focus on scope 1 and 2 emissions, as these are most readily within the control of our members to change. However, scope 3 emissions, particularly those from raw material suppliers, are the largest contributor to emissions in the sector and so cannot be overlooked. While scope 3 emissions are difficult to quantify, according to the data gathered as part of this roadmap they represent around 98% of our industry’s carbon footprint. It is therefore critical to focus on decarbonising emissions across the supply chain, as data and measurement of these activities improve over time.

There are a number of calculation tools and guidance available for BCF members to measure their GHG emissions.

The most widely used are probably the GHG Protocol and the Government conversion factors, and there are also consultancies available that can support with these calculations. For SMEs, BCF recommends the use of the Carbon Trust ‘Carbon Footprint Calculator’, which quantifies scope 1 and 2 emissions. This is available at https://www. carbontrust.com/our-work-and-impact/guides-reports-and-tools/sme-carbon-footprint-calculator.

The coatings industry has agreed to use a base year of 2018 to measure progress against our Net Zero target.

This base year will be used to cover the paints, coatings, printing inks and wallcoverings industry as a collective; however, individual companies may use different base years in their own roadmaps. The BCF’s baseline for scope 1 and 2 emissions is approximately 100,000 tonnes of CO₂(e), and it will be used to track the industry’s progress against the Net Zero target. Scope 3 emissions have not been included in the industry’s baseline at this stage due to the complexity of the data and its limitations; however, our initial estimate is that this number would be in excess of 2.5 million tonnes of CO₂(e). Larger BCF members are already tackling scope 3 emissions and BCF will continue working with smaller members to tackle these in the near future, so that they can be incorporated to our industry’s baseline (and targets) as data becomes more available and accurate.

According to our baseline for scope 1 and 2, the projected emission levels for our industry suggest a number of waypoints in our road to Net Zero. This includes a 38% reduction of GHG emissions by 2030, a 53% reduction by 2035 and a 69% reduction by 2040, compared to the 2018 baseline. These waypoints focus on carbon emission reductions; any remaining emissions which cannot be eliminated in the first place must be balanced by finding ways to absorb the same amount of GHG from the atmosphere, for example, through carbon removals. Carbon 3 4 5 6

4

https://www.un.org/en/climatechange/paris-agreement

https://www.un.org/en/climatechange/net-zero-coalition#:~:text=To%20keep%20global%20warming%20to,reach%20net%20zero%20by%202050

https://www.gov.uk/government/publications/net-zero-strategy https://sciencebasedtargets.org/how-it-works

Road to Net Zero

offsets can play a positive role in any Net Zero strategy if used responsibly; however, they should be reserved for unavoidable emissions only.

BCF members are encouraged to raise internal and external awareness on climate action through reporting and disclosure of their total carbon footprint, targets set and progress against them. Joining voluntary disclosure schemes could also be considered. For larger organisations there are certain legislative and regulatory requirements for carbon reporting, which generally require annual reporting of scope 1 and 2 emissions. It is likely that more reporting requirements will become mandatory in the future.

There are four key areas in which our industry will need to act to contribute to enabling the UK to achieve its Net Zero target. Some of these can be dealt with immediately; others will require time to allow technology and infrastructure to become commercially available. We have described each area in some detail in the roadmap: • • • •

Energy efficiency, such as using renewable energy and low carbon hydrogen as a fuel.

Resource efficiency, such as developing new products and technologies including biobased sources, and promoting recycling.

Carbon capture, utilisation and storage, establishing decarbonisation clusters through carbon transport and storage networks.

Supply chain collaboration, promoting communication and engagement between manufacturers and suppliers to explore scope 3 emissions reduction opportunities.

We recognise this roadmap is just the start of the journey, and a lot more work will be required in each of the four areas to make Net Zero a reality.

Hydrogen is expected to play an important role in global decarbonisation. Some of the options to allow manufacturers to switch from fossil fuels to low carbon alternatives, such as green hydrogen, to produce heat or power are still in developmental stages. Green hydrogen, particularly, requires significant innovation to ensure supply in sufficient quantities and distribution outside industrial clusters. A central focus of the work on hydrogen heating is to assess the safety implications of switching from natural gas to hydrogen.

Developing new sustainable products and processes, for example through green chemistry, will help our industry to reduce its environmental impact and to stay ahead of the market competition. Often, a key element of these green initiatives is the use of renewable raw materials for the purpose of producing biobased solvents, resins, additives and pigments, which may be part of the industry’s solution to achieve Net Zero.

Carbon capture, utilisation and storage (CCUS) will be a key technology in completely decarbonising manufacturing processes where fossil fuels cannot be replaced. However, CCUS is still being developed and has yet to be rolled out commercially in the UK. Supply chain collaboration will be key in reducing the large percentage of our sector’s emissions, which are deemed scope 3. BCF has developed a number of action checklists to support members with reducing their GHG emissions, creating a Net Zero strategy or action plan and reaching our target. These can be found as ‘pull-outs’ in the Quick Start Guide. Electronic copies of the action checklists will be also downloadable from the BCF website.

The BCF has a number of recommendations for Government; these are set out in chapter 9. Finally, there are a number of grants and funding options available from the Government to support businesses towards Net Zero targets, which BCF members can apply for (refer to Appendix D).

It is important to note that, while we recognise that reducing carbon emissions is crucial, it is just one aspect of sustainable development. It is important not to exclude other critical sustainability factors, such as the pressure on nature, biodiversity, natural resources, water, forests, land and air. BCF will continue to take action on green claims, work with members to further reduce Volatile Organic Compound (VOC) emissions across the entire coatings sector, and provide members with the required support on what is coming next in sustainability, in the UK and also in the EU, including for example the Extended Producer Responsibility (EPR) for packaging scheme and the problem of microplastics pollution in the marine environment. However,the Net Zero roadmap is unashamedly focussed on our Net Zero goals. Other issues will be dealt with in subsequent strategies and plans in the future.

We are proud to have taken this step as a sector and look forward to working hard, together with our members, to deliver on the promises made over the coming years.

Road to Net Zero

5

INTRODUCTION 3.1.

The climate emergency

Climate change is one of the greatest challenges facing the world. Greenhouse gases (GHGs) from human activity have already led to 1.2°C of global warming from pre-industrial levels, which has resulted in damaging impacts on lives, infrastructure, agriculture and ecosystems. Global emissions of greenhouse gases will continue to rise without immediate action. The United Nations Intergovernmental Panel on Climate Change has concluded that we need to keep global warming to a maximum of 1.5°C to avoid irreparable damage and catastrophic consequences for people and our planet 7.

Net Zero refers to the balance between the amount of GHG that is produced and the amount that is removed from the atmosphere. It can be achieved through a combination of emission reduction, from activities such as industrial processes and transport, and emission removal, for example by capturing carbon or by planting more trees. When what is added is no more than what is taken away, Net Zero is reached.

The Net Zero target refers to a Government commitment to ensure the UK reduces its GHG emissions by 100% from 1990 levels by 2050, based upon international agreements. If met, this would mean that the amount of GHG emissions produced by the UK would be equal to or less than the emissions removed by the UK from the environment. The Net Zero target was made legally binding by the Climate Change Act 2008 8 (2050 Target Amendment) Order 2019, and it was recommended by the Climate Change Committee (CCC), which is the UK’s independent climate advisory body. In June 2019 the Government said the UK was the first major economy to pass a Net Zero emissions law 9. Six countries (Sweden, the United Kingdom, France, New Zealand, Denmark, Hungary) have adopted legally binding Net Zero targets, and the EU is considering a proposal to legally adopt a Net Zero target by 2050 10 .

Net Zero emissions involve significant reductions in GHG emissions. To achieve Net Zero, the world needs to reduce its emissions by 45% by 2030 and achieve – at a minimum – Net Zero emissions by 2050. The UK Government has committed to a 68% reduction in GHG emissions by 2030, 78% by 2035 and to achieve Net Zero by 2050 11. The latest report from the CCC 12 states that UK GHG emissions have so far fallen 46% from 1990 levels.

This means that in order to reach the 68% reduction by 2030, the recent rate of annual emissions reduction outside the electricity supply sector must quadruple in only seven years. Hence there is a long way to get to Net Zero.

Businesses across all industries have a central role to play in delivering GHG emissions reduction targets and achieving Net Zero. For businesses, delivering Net Zero will involve two main elements: •

•

Near-term: Deep carbon reduction – at least 45% reduction by 2030: as a priority, businesses must rapidly reduce human-caused emissions (such as those from fossil fuel use) from across their value chain, to be as close to zero as possible.

Long-term: Further reductions and carbon neutralisation through removals – at least 100% reduction by 2050: once businesses deliver deep carbon reductions in the near-term, Net Zero emissions need to be delivered by 2050. Any remaining emissions that are difficult to avoid should be neutralised with an equivalent amount of carbon removal credits (carbon offsetting) through nature-based solutions like restoring forests or technology such as direct air capture and storage.

It is important to note that a commitment to sustainability has to look beyond carbon emissions to

7 https://unfccc.int/process-and-meetings/the-paris-agreement#:~:text=To%20limit%20global%20warming%20to%201.5%C2%B0C%2C%20 greenhouse%20gas,and%20decline%2043%25%20by%202030 8 https://www.legislation.gov.uk/ukpga/2008/27/contents 9 https://www.gov.uk/government/news/uk-becomes-first-major-economy-to-pass-net-zero-emissions-law 10 https://netzeroclimate.org/sectors/law/ 11 https://www.gov.uk/government/news/uk-enshrines-new-target-in-law-to-slash-emissions-by-78-by-2035 12 https://www.theccc.org.uk/2023/06/28/better-transparency-is-no-substitute-for-real-delivery/

6

Road to Net Zero

other impacts, such as water usage, waste generation, biodiversity loss, resource depletion and inequality. These other sustainability factors should not be excluded from a Net Zero strategy to avoid suffering from the so called ‘carbon tunnel vision’. However, while those other issues should not be discarded, they will be addressed in separate documents, as this roadmap is entirely focused on carbon reductions.

3.2. About this roadmap This roadmap provides guidance for the decorative and industrial coatings, printing inks and wallcoverings manufacturers to achieve Net Zero emissions. For the purpose of this roadmap, Net Zero is defined as the target that is achieved when the amount of GHG emissions that are released to the atmosphere equals the amount of GHG emissions that are removed from the atmosphere, which is mostly achieved through the implementation of reductions measures and to a smaller proportion through removal measures.

The roadmap aligns with the sustainability principles 13 of the European Council of the Paint, Printing Ink, and Artist’s Colours Industry (CEPE), who represent the interests of Paint, Printing Ink, and Artist’s Colours manufacturers in Europe. It also aligns with the European Green Deal 14, a plan to make Europe the first climateneutral continent by 2050, whose dimensions for the ‘environment’, ‘circular economy’ and ‘food systems’ are of importance to the coatings industry 15.

The main purposes of the roadmap are to make a statement of intent from the BCF to show commitment to achieving Net Zero, explain what progress has been made already, to establish an industry baseline for measuring GHG emissions against the set targets, and to provide sources of information and guidance on Net Zero and Government funding to help BCF members start their own individual Net Zero journeys.

The contents of the roadmap include: • • 13 14 15

Chapter 4 covers the planning stage for Net Zero and includes a strategic framework for the key actions on all value chain stages.

Chapters 5 and 6 cover scoping and measuring the carbon footprint of the industry and target setting.

•

•

There are sub-sections explaining the baseline data being used for the industry and supporting calculation tools.

Chapter 7 explains the proposed carbon reduction plan to reach the set targets and achieve Net Zero. It includes an overview of some of the key solutions for emissions reductions and action checklists.

Chapter 8 provides advice on how to use carbon offsets.

This roadmap has been designed to assist all BCF members, but particularly those at the early stages of developing their Net Zero strategy. BCF members may wish to refer to this roadmap within their own sustainability statements or develop their own roadmap which shall provide information on their own company’s commitment to Net Zero and the steps they will take in more detail.

BCF supports commitments from the global coatings industry in achieving Net Zero, however the scope of the data collection related to this roadmap will only apply to Full members of the BCF (i.e. manufacturers of paints, coatings, printing inks and wallcoverings), which accounts for 95% of the UK coatings market. We will support our members in their individual journeys to Net Zero and encourage coatings companies that are not members of the BCF to use the roadmap for guidance within their own value chains. The roadmap will cover all four of the devolved nations of the UK, however at times there may be differences in the guidance at national level depending on local laws and regulations.

BCF will continue to gather and refine carbon emissions data from members with the aim of publishing an updated roadmap in 2024/5, and periodically thereafter giving members updates on progress.

https://www.cepe.org/wp-content/uploads/2020/05/Charter_Sustainibility-3.pdf https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en https://www.cepe.org/wp-content/uploads//2023/04/CEPE_Annual_Report_2022_web_2_5MB.pdf

Road to Net Zero

7

3.3. Our commitment to Net Zero by 2050 Over the last 25 years, the coatings industry has shown substantial progress in achieving a range of key sustainability metrics, which have led to significant reductions in our sector’s carbon footprint since 1996. The World Wide Fund for Nature (WWF) recognised the industry progress in their March 2020 report 16, highlighting some of the key achievements; this includes a five-fold reduction in carbon footprint of coatings consumption and a twofold reduction in carbon footprint of coatings production in 2016 compared with 1990 levels. These achievements demonstrate the sector’s commitment to improving our products’ sustainability credentials, but we can still do more. That is why on the 13th October 2021, the BCF Board of Directors, on behalf of our members, pledged that the coatings industry will reach Net Zero by 2050. We know that it will be a difficult journey, but we are determined to reach that destination as a collective.

To support the sector in achieving the Net Zero commitment, this roadmap has been developed in consultation with the BCF Sustainability Committee and approved by the BCF Board. Whilst the Net Zero target applies to Full members of the BCF only, we suggest that the entire BCF membership group use this document as a guide to work collectively with the wider membership, and to develop best practice guidance to help the sector as a whole to reach this important climate goal.

To that end, this roadmap will detail how the sector intends to achieve Net Zero, what practical changes companies can already implement within their processes as part of their individual journeys towards Net Zero, what we are asking of the Government to support us on this journey, and what we need from the wider supply chain to ensure that we are successful. The roadmap will also highlight the wider role that coatings play in supporting the UK to achieve Net Zero, such as improving the sustainability of infrastructure and buildings.

In many sectors, Net Zero is becoming core business strategy, and this presents opportunities: to reduce costs, raise productivity, improve supply chain resilience, innovate new products and technologies, attract investors and gain a market edge. The actions in this roadmap will help decorative and industrial coatings, printing inks and wallcoverings manufacturers to embark on reducing emissions and realise these opportunities. This roadmap will be updated periodically to add in new best practice and measure progress against the industry’s Net Zero targets.

3.4. Greenhouse gas emissions definitions Greenhouse gas (GHG) is defined by the European Environment Agency 17 as a gas that contributes to the natural greenhouse effect. The Kyoto Protocol 18 covers a basket of six GHGs produced by human activities: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.

The carbon footprint represents the total volume of GHGs resulting from everyday economic and human activity.

It is the total GHG emissions caused directly and indirectly by an individual, organisation, event or product, and it is calculated by summing the emissions resulting from every stage of a product or service’s lifetime (material production, manufacturing, use and end-of-life).

Knowing the carbon footprint of an activity or a product is important when it comes to taking measures and launching initiatives to reduce it to the lowest possible level. The standard unit for measuring carbon footprints is Kilograms of carbon dioxide equivalent (KgCO₂e), although it can also be in grams (gCO₂e) or tonnes (tCO₂e). This is thanks to the Global Warming Potential (GWP) 19, which was developed to allow comparisons of the climate impacts of different GHGs with that of CO₂. GWPs are used to calculate emissions in terms of CO₂-equivalents (CO₂e).

Carbon footprints are categorised into three emissions ‘scopes’: • • •

Scope 1 – burning of fuels and refrigerant losses from sites/assets.

Scope 2 – electricity supplied to and used at all sites.

Scope 3 – ‘everything else’ – upstream activities such as supply of raw materials or packaging, and downstream activities such as consumer use. The total scope 3 emissions of a typical organisation represents 80% of the company’s carbon footprint 20.

Scope 1 and 2 emissions are any emissions that a company or organisation has direct control of.

Scope 3 emissions are any emissions that a company or organisation does not have direct control of and can include emissions upstream and downstream within the supply chain. In order to reduce these emissions coating manufacturers will have to work with their suppliers and customers. Scope 3 emissions are difficult to quantify (particularly for Small and Medium sized Enterprises – SMEs) but there are still actions that companies can take in order to start reducing these emissions. Scope 3 will always be someone else’s scope 1 and 2, however manufacturers still have influence over it.

16 17 18 19 20

8

https://www.wwf.org.uk/sites/default/files/2020-04/FINAL-WWF-UK_Carbon_Footprint_Analysis_Report_March_2020%20%28003%29.pdf https://www.eea.europa.eu/help/glossary/eea-glossary/greenhouse-gas https://unfccc.int/kyoto_protocol https://www.epa.gov/ghgemissions/understanding-global-warming-potentials https://clarity.ai/research-and-insights/an-estimated-80-of-emissions-globally-are-classified-as-scope-3

Road to Net Zero

Figure 1 shows the 15 distinct reporting categories in scope 3 and also shows how scope 3 relates to scope 1 (direct emissions from owned or controlled sources) and scope 2 (indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company). Scope 3 includes all other indirect emissions that occur in a company’s value chain. The 15 categories in scope 3 are intended to provide companies with a systematic framework to measure, manage, and reduce emissions across a corporate value chain.

The categories are designed to be mutually exclusive to avoid a company double counting emissions among categories.

Figure 1. Overview of GHG Protocol scopes and emissions across the value chain 21.

Examples of scope 1 and 2 emissions are given in Table 1 below 22:

Scope 1 emissions Stationary combustion: Including boilers, heaters and generators.

Scope 2 emissions Purchased or acquired electricity, steam, heat and cooling.

Mobile combustion: Including owned or leased vehicles used within the reporting companies’ inventory boundary. Includes company vehicles, forklift trucks and non-road equipment (e.g., floor cleaners) and construction equipment.

Fugitive emissions: Including service of, and leakage from, refrigeration and air conditioning systems during operation and from disposal of the system at end-oflife. Only include systems that use HFCs or PFCs. Process emissions: The majority of coatings manufacturers will not generate these emissions directly and therefore do not need to report on them.

Process emissions are from physical or chemical processes, such as CO₂ from the calcination step in cement manufacturing.

Table 1. Examples of scope 1 and 2 emissions.

21 22

https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf https://ghgprotocol.org/sites/default/files/Guidance_Handbook_2019_FINAL.pdf

Road to Net Zero

9

Examples of scope 3 emissions are given in Table 2 below 23:

Upstream scope 3 emissions

Downstream scope 3 emissions

Purchased goods and services: such as raw materials.

Processing of sold products.

Capital goods.

Use of sold products.

Transportation and distribution (suppliers).

End-of-life of sold products.

Business travel.

Transportation and distribution (to end customers).

Waste disposal.

Leased assets: assets leased to other organisations by the reporting company/organisation.

Leased assets: assets leased by the reporting company/organisation.

Franchises: a business that has been given a licence to sell or distribute the goods of the reporting company/ organisation within a specific location.

Employee commuting.

Investments: includes equity investments; debt investments; project finance; managed investments and client services.

Table 2. Examples of scope 3 emissions.

3.5. Our sector emissions

Raw materials are the largest contributor to emissions within the paints, coatings, printing inks and wallcoverings manufacturing industry; this is our scope 3 upstream emissions. These emissions are generated via sourcing, processing and manufacturing raw materials, as well as through their distribution. It is noted that the wallcoverings sector requires high energy use in the drying process of the wallpaper, which will significantly contribute to their scope 2 emissions; this is possibly one of the key differences between sub-sectors within the BCF membership.

Companies can work with suppliers to reduce the carbon footprint of their products during product innovation to source lower carbon footprint alternatives where technically feasible. To engage with the supply chain and support their efforts to reduce emissions it starts with addressing the “what, how and why” of decarbonisation 24.

• • •

Be clear about what you are asking suppliers to do and include specific steps to improvement.

Invest time in thinking about how your suppliers will deliver the changes you want. It might involve coinvestment in new technology, or simply giving them more knowledge that will result in better data and, therefore, better traceability and reporting.

Help suppliers to understand why you are doing it and what is in it for them. Demonstrate how value from decarbonisation of the supply chain adds resilience to your relationship with your supplier and, in turn, to their relationships with other customers.

Raw materials such as titanium dioxide (TiO₂) are known to be energy intensive, however it is a critical material for coatings with no direct replacement; see Figure 2. For raw materials such as this, manufacturers can liaise with their suppliers to understand how their scope 1 and 2 emissions can be reduced, such as switching to renewable energy or alternative energy (e.g. green hydrogen) when processing raw materials, which will reduce the coating manufacturers’ scope 3 upstream emissions.

For the chemical sector as a whole, scope 3 makes up around 75% of GHG emissions produced by typical chemical industry organisations 25. The chemical sector represents a significant part of the raw material suppliers for the coatings industry, and it will therefore have a key contribution to the industry’s scope 3 emissions.

23 https://ghgprotocol.org/sites/default/files/standards/Scope3_Calculation_Guidance_0.pdf 24 https://kpmg.com/uk/en/blogs/home/posts/2023/03/sustainable-supply-chains.html 25 Ricardo Lunch and Learn Session for SIA (Solvents Industry Association), ‘Your decarbonisation journey and the role of scope 3 emissions’, 4th May 2023

10

Road to Net Zero

Figure 2. Titanium dioxide (TiO₂) is a major contributor to paint quality, paint cost and carbon footprint 26.

GHG emissions data for the paints, coatings, printing inks and wallcoverings industry has been provided by BCF members and gathered as part of this roadmap. A visual comparison of GHG emissions in the chemical industry and the coatings industry is shown in Figure 3. Average annual GHG emissions data suggests that around 10% of the total GHG emissions from the chemical sector in the UK was attributed to our industry. In 2021, 2.9 million tonnes of CO₂(e) were associated with our sector, accounting for around 0.7% of the UK’s total carbon footprint in that year.

There is currently very limited data provided by BCF members on scope 3 emissions; however, our initial estimate is that this number would be in excess of 2.5 million tonnes of CO₂(e). Average data for the period 2018-2022 suggests that scope 3 emissions represent around 98% of our industry’s carbon footprint, with the remaining 2% associated with scope 1 and 2 emissions. It is therefore critical to focus on decarbonising emissions across the value chain, and particularly the raw material suppliers, in order to reach Net Zero emissions by 2050. However, even if scope 1 and 2 emissions are a small fraction of our sector’s emissions, we still need to measure and tackle them, as it is in our direct control to reduce them.

Figure 3. Average annual GHG emissions in the chemical industry and the coatings industry in the UK (2018-2022).

It is important to note that the scope 3 data that BCF have gathered is based on submissions from a small number of members and it is only indicative. However, it is also important to at least estimate a figure for our sector now and improve this data over time. As an industry, we recognise that most of the carbon emissions associated with our sector are down to scope 3, therefore we will have to work harder to get a more precise figure in the near future.

The trend of scope 1 and 2 emissions associated with our industry in the UK in the past five years is shown in Figure 4. The coronavirus pandemic (Covid-19) and the resulting restrictions introduced across the UK in 2020 had a significant impact on GHG emissions globally. It would be expected to see an increase in 2021 due to the increase in the use of road transport and nationwide lockdowns being eased, along with increases in emissions from the manufacturing processes. However, scope 1 and 2 emissions for our sector suggest a downward trend for the period 2018-2022, which does not show a particular influence of Covid-19 and its associated control measures in those years.

This may be due to the high demand of Figure 4. Average annual scope 1 and 2 emissions associated with the paints, decorative paints during lockdowns. coatings, printing inks and wallcoverings industry in the UK.

26

http://storage.dow.com.edgesuite.net/dowtv/coating/DCM_Evoque_LCA.pdf

Road to Net Zero

11

PLANNING FOR NET ZERO 4.1.

The role of coatings in achieving Net Zero

In December 2022 the World Coatings Council (WCC) announced the publication of its inaugural report, ‘Sustainability in the Global Paint & Coatings Industry’ 27. The report highlights the global industry’s ongoing sustainability efforts to advance technologies in coating science and manufacturing, while minimising impacts on human health and the environment.

In 2015, the United Nations presented its plan for achieving 17 Sustainable Development Goals 28 (SDGs) by 2030.

The SDGs outline a plan to eradicate poverty, preserve the planet, and achieve prosperity on a global level. In their ‘Sustainability in the Global Paint & Coatings Industry’ report, the WCC identified the nine SDGs wherein our industry can have the greatest impact (see Figure 5) and described how paint and coatings manufacturers can contribute to achieving these SDGs.

Figure 5. SDGs identified by the WCC as those that are most relevant to the UK coatings industry’s journey to Net Zero.

27 28

12

https://worldcoatingscouncil.org/WCC-Sustainability-Report/#page=1 https://sdgs.un.org/goals

Road to Net Zero

Paints, coatings and printing inks play an important role in our daily lives: they protect our buildings and infrastructure; support the hygienic production and transportation of food; provide essential coatings for offshore wind power plants and solar panels with resistance to the negative effects of weather; and add colour to the spaces we inhabit and the objects we use, among many other things. Paints, coatings and printing inks play a fundamental role in saving resources: they help reduce the environmental footprint as they extend the life cycle of many products, delay replacement of those products, or make them more suitable for recycling.

Here are some of the reasons why coatings are an essential piece to reach Net Zero:

The world's shipping fleet would use 40% more fuel without a coating of paint to prevent the build-up of barnacles and banking.

Coatings help keep our planes in the sky by safeguarding, protecting vital components and lightweight coatings means savings in energy consumption.

Powder coatings used on solar panels help make your home more sustainable.

84% of the house paints sold in the UK are now waterborne, significantly reducing emissions of solvent into the atmosphere.

Coatings extend the life of machinery to buildings and bridges, protecting valuable natural resources such as wood, concrete and steel from the elements.

Moreover, new technologies with reflective or absorbative qualities will increasingly play a part in coatings helping energy conservation in buildings.

4.2. Our Net Zero journey Paints, coatings, printing inks and wallcoverings maintain and decorate our homes, protect our food, print our newspapers, and help preserve our environment and natural resources. They also provide additional and muchneeded performance and hygiene characteristics to finished products, providing protection from degradation like corrosion, abrasion, high or low temperatures, chemicals and ultraviolet rays, moisture, microbes, and bacteria.

The coatings sector has shown substantial progress in achieving a range of key sustainability metrics for over 25 years. We are proud of the positive steps we have taken towards greater sustainability over the past couple of decades from greatly reducing our carbon footprint and use of Volatile Organic Compounds (VOCs), to creating less waste and recycling more of what is left rather than sending it to landfill.

The Coatings Care programme is a key part of BCF’s Sustainable Coatings campaign and its commitment to Net Zero, and it will continue to drive improvement across a range of environmental and safety measures. Moreover, BCF is already working to create a nationally recognised leftover paint recycling programme through our PaintCare scheme, which may have a significant positive impact in the reduction of scope 3 downstream emissions. The following sections cover these two initiatives in more detail.

Road to Net Zero

13

4.2.1. Coatings Care The BCF has been tracking the manufacturing performance of its members since 1996 via its Coatings Care programme and, over that time, has recorded significant improvements in production efficiency leading to reduced waste and use of landfill. This environmental programme demonstrates that the UK coatings industry cares about the health and welfare of employees, the safe operation of processes, and shows determination to contribute actively to a sustainable environment. It is a voluntary programme which provides an opportunity for members to benchmark their environmental performance against 45 KPIs, and has over 35 UK coatings and printing ink manufacturing sites taking part.

Some of the industry’s achievements to date are listed in Table 3.

Statement

Solvents

84% of decorative paints sold are now water-based.

Source BCF monthly sales figures, April 2023

Waste In 2020 only 9% of all coatings and ink production waste was sent to landfill, compared to 21% in 2010 and 75% in 1996.

Coatings Care 2022

A record number of coatings and ink companies (47%) reported sending zero waste to landfill in 2022, up from 11% in 2010.

Coatings Care 2022

Total waste per tonne of production fell by more than 35% since 1996 (64kg) to just 41Kg in 2022.

Coatings Care 2022

Energy use 2022 energy use per tonne of coatings and ink production (234kWh) is less than half of 1996 levels (646kWh), and has fallen by almost 30% since 2010 (317kWh).

Coatings Care 2022

Five-fold reduction in carbon footprint of coatings consumption.

March 2020 WWF carbon report

Two-fold reduction in carbon footprint of coatings production.

March 2020 WWF carbon report

World’s shipping fleet would use 40% more fuel without antifouling coatings, saving 70 million tonnes of greenhouse gasses.

International Marine, Third IMO Study 2014

Safety in the workplace A five-fold reduction in injuries per man hours of BCF member employees, from 0.85 per 100,000 in 2016 to 0.16 in 2022.

Coatings Care 2022

Table 3. BCF sustainability statements as part of the Coatings Care programme 29.

VOC emissions Volatile Organic Compounds (VOCs) are materials which evaporate readily from commonly occurring sources such as vehicle exhausts, cleaning agents, furniture polish and fabric softeners. These also include solvents used in coatings, as well as thinners and brush cleaners.

As part of the Government Clean Air Strategy 30, the industry submits data for the VOC estimated emissions for 2030 and 2050 as shown in Figure 6. The emission projections are based on typical non-methane VOC levels per product category and annual sales data for those products in the UK market. Historical data demonstrates the industry’s voluntary commitment to reduce the level of VOCs in their products and there has been significant improvement since 1996, with 84% of decorative paints now being water-based.

29 30

14

https://coatings.org.uk/page/OurJourneySoFar https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770715/clean-air-strategy-2019.pdf

Road to Net Zero

Figure 6. VOC emission projections for the coatings and printing inks industry 31.

Whilst the projections show that the industry is expected to fall below the Government targets for VOC emissions for 2030 and 2050, it is clear that there is still work to be done to further reduce emissions across the entire coatings sector. This will require further innovation and advancements in coatings technology, noting VOCs still perform important technical functions in many industrial coatings, and simply removing them from these products without losing the required performance characteristics presents a challenge that needs to be overcome.

The EU ‘Paints Directive’ 32 aims to limit the total content of VOCs due to the use of organic solvents in certain paints, varnishes and vehicle refinishing (VR) products. These products are listed in Annex 1 of the directive, and they primarily relate to the decorative and VR sectors. The coatings sector has worked hard to comply with the directive, investing heavily in new technology to enable conversion to more water-based paints without a loss of quality. As a result, 84% of decorative paints are now water-based and this has led to a significant reduction in VOC levels.

Indeed, in the UK the coatings sector has already met its VOC reduction targets for 2030. However, in the VR sector there is still large-scale non-compliance with the regulations by many bodyshops, which continue to use loopholes and a lack of enforcement to use solvent-based paints illegally. The BCF hopes that the upcoming UK review of the Paints Directive will address this issue and introduce a sellers‘ law approach combined with proper enforcement to target the abuse of the directive. This would ensure a level playing field for manufacturers who had invested in switching to water-based technology as well as help to continue to drive down VOC levels.

Since 84% of decorative paints are now water-based, their associated VOC emissions are generally minimal or only trace levels. Coatings suppliers have introduced a labelling system to inform consumers of the VOC content of each decorative coating product. This is called the VOC Globe and is a 6-band classification that shows the VOC content as Trace, Minimal, Low, Medium, High or Very High; see Figure 7.

Figure 7. The VOC Globe 33.

31 32 33

NAEI, UK National Atmospheric Emissions Inventory - NAEI, UK. https://www.legislation.gov.uk/eudr/2004/42/2008-12-11 https://coatings.org.uk/page/VOCsAndAirQuality

Road to Net Zero

15

Energy used As part of Coatings Care the industry collects data on energy used for material production (see Figure 8). Energy use has shown a downward trend since 1996 due to improvements in energy efficiency and is expected to continue to fall further before plateauing just after 2035.

The data collected at present does not consider in detail what percentage of the energy used is generated through fossil fuels and what percentage comes from renewable energy. Further work for the industry will therefore be to collect this data and track the progress of the transition from fossil fuels to greener energy, which is the biggest impact that the industry can have on direct emissions (scope 1 and 2) and is seen as the highest priority to tackle climate change.

Figure 8. Average annual energy use in the coatings industry 34.

Waste disposal The coatings industry has been implementing processes within their own operations to increase the amount of materials that are recycled as part of the production process and reduce the amount of waste that is incinerated or sent to landfill. As Figure 9 shows, rates of recycling have increased whilst materials sent to landfill have decreased since 1996. However, there is still work to be done to reduce the amount of materials sent for incineration, in order to support the targets of the Government Clean Air Strategy.

It is acknowledged that in order to increase recycling rates for industrial products and raw materials there will need to be further advancements and investment in technology and infrastructure.

Figure 9. Waste disposal methods in the coatings industry 35.

34 35

Coatings Care Coatings Care

16

Road to Net Zero

4.2.2. Recovering and recycling leftover decorative paint Currently 55m litres (71,500 tonnes) of decorative paint are leftover each year, equivalent to 10% of sales. Only 2% of leftover paint is recycled: 1% is remanufactured and 1% is reused; 98% ends up being landfilled, incinerated or suffers similar poor end of life. The cost to local authorities to landfill and incinerate paint is estimated to be £21 million and only 1 in 3 Household Waste Recycling Centres (HWRCs) accept liquid paint currently 36.

The BCF’s PaintCare scheme aims to develop a national circular economy model for leftover paint in the UK. There is the opportunity to collect and reuse or remanufacture 30 million litres and recycle another 10 million litres of leftover paint, which will reduce the overall environmental impact of leftover paint and create hundreds of new jobs. The paint stewardship scheme is still in development and discussion with the

paint industry, retailers and other stakeholders. If it goes ahead as a voluntary industry scheme, it will be managed by PaintCare UK Ltd, a subsidiary of the BCF and will be a not-for-profit organisation.

Recovering, reusing or remanufacturing leftover paint will make a positive impact on the industry’s carbon footprint. Critical raw materials such as titanium dioxide can be up to 60% of the carbon in a can of paint, despite being only 10-15% of the contents. Leftover paint can be re-manufactured to create a recycled paint product, and there is also an ongoing R&D project to recover titanium dioxide from leftover paint. Re-manufactured paint has a 50% lower carbon footprint, so avoiding leftover paint going to incineration is an important part of the Net Zero journey for the industry.

Carbon reduction potential

A high-level assessment of the carbon footprint for the collection and reprocessing of the leftover paint and recycling of the associated packaging was carried out

by Resource Futures in January 2023 37.

PaintCare leftover paint collection and paint reprocessing show a reduction of approximately 100,000 tonnes of CO₂(e) in carbon emissions when compared to the current disposal process, as illustrated in Figure 11. This is the equivalent of our industry’s entire estimated baseline emissions for scope 1 and 2 combined.

Figure 11. Annual carbon emissions/savings (tonnes CO₂e/ year) for the four PaintCare modelled options.

Option 1: BAU (Business As Usual); Option 2: Recycle associated packaging only; Option 3: UK remanufacture of leftover paint; Option 4: Reuse of water-based leftover paint.

Figure 12 shows the carbon emissions in kg CO₂e/tonne for recycling old plastic paint containers to produce recycled plastic containers, compared with producing an equivalent amount from virgin materials. This indicates that a 59% carbon reduction potential could be expected; an estimated saving of 14,000 tonnes of CO₂(e) based on an approximate use of plastic packaging in the paint industry of 14,000 tonnes.

This carbon reduction potential takes into account the necessary processes to shred, wash, clean, dry and reprocess the old paint containers into secondary raw materials of a standard suitable for manufacture of new paint containers.

36 37

Figure 12. Carbon emissions (kg CO₂e/tonne) of plastic paint containers.

PaintCare: creating a circular economy for leftover paint, April 2023.

PaintCare Environmental Impact Modelling’, Resource Futures, January 2023.

Road to Net Zero

17

4.2.3. Our Net Zero timeline The BCF Net Zero timeline for the UK paints, coatings, printing inks and wallcoverings industry can be found in Figure 13. It refers to the industry’s baseline emissions, the BCF’s Net Zero pledge, the roadmap development, the PaintCare recycling target and various resources and guidance available to members along the way to Net Zero.

Figure 13. The BCF Net Zero timeline for the UK coatings industry.

18

Road to Net Zero

4.3. Strategic framework

Figure 14. Example of a strategic framework to reach Net Zero 38.

•

Measure: An important starting point is understanding the relationship between the activities delivered across business operations and the value chain, and the GHG emissions that are generated as a result. This provides the basis from which to set targets and a roadmap for their delivery. Section 5 of this roadmap will cover how to measure your carbon footprint.

•

Target: Setting a clear target, preferably based on an international gold standard such as a Science-Based Target (SBT), and developing a Net Zero implementation roadmap enables businesses to prioritise actions and reduce climate impacts at scale and pace. Section 6 of this roadmap will cover target setting.

•

Implement: Climate action requires major changes to business operations and across your value chain. A robust Net Zero strategy is one that is deeply integrated into the overall strategy of a business and is fully embedded in different functions. Working in partnership with suppliers will maximise impact and accelerate progress towards Net Zero. Section 7 of this roadmap will cover a carbon reduction plan and checklists to reach Net Zero and how to implement them.

•

Finance: The transition to a Net Zero economy requires businesses to invest in transforming their own operations and value chains. It will involve a significant business transformation and is a powerful driver for innovation.

Harnessing internal and external financing can help accelerate progress and incentivise the delivery of a Net Zero target. Appendix D of this roadmap includes useful links to Government grants and funding.

•

Communicate and advocate: Leadership on Net Zero provides the opportunity to build trust and drive engagement with key stakeholders including customers, investors, colleagues, suppliers, consumers and communities. Section 5 of this roadmap will cover carbon reporting requirements.

A commitment to sustainability has to look beyond carbon emissions. It is important to acknowledge any potential impacts that your business activities may have on other sustainability factors such as nature, biodiversity and water; this should be also included in your Net Zero strategy, together with any relevant mitigation measures.

Assessing your organisation’s water consumption, waste generated, resources used, and other factors can further your sustainability efforts and help achieve meaningful progress. These kinds of efforts can greatly boost brand reputation as well. BCF will look to offer members support on these issues through other documents and guidance in the future.

38 https://www.igd.com/social-impact/sustainability/article-viewer/t/building-your-net-zero-roadmap-a-guide-for-industry-leaders-anddecision-makers/i/28350

Road to Net Zero

19

SCOPING AND MEASURING YOUR CARBON FOOTPRINT 5.1.

Selecting the baseline data

Data is the means to track progress against targets.

The first step on the industry’s decarbonisation journey is to calculate the industry’s baseline emissions, using the most accurate data available. This is important to ensure that we have a full understanding of the scope 1, 2 and 3 emissions we are producing as an industry, including significant hotspots. By having an initial carbon footprint as a baseline, we can start to build the industry’s carbon strategy through the setting of carbon targets and the development of a carbon reduction action plan.

The industry’s baseline data will be used to report against on a regular basis in order to monitor and measure carbon reductions. We will also use the emissions data to identify key areas that should be targeted for carbon reduction initiatives, especially within the value chain. This will ensure that our efforts are focused on decarbonising the areas that have the biggest impact.

The industry has agreed to use a base year of 2018 to measure progress against our Net Zero target. This base year will be used to cover the paints, coatings, printing inks and wallcoverings industry as a collective; however, individual companies may use different base years after assessing their own data. 2018 has been chosen to ensure that data is appropriate and reflective of the industry against ‘Business As Usual’ (BAU) conditions.

During 2019/20 and 2020/21 there were significant shutdowns across the industry due to Covid-19, as well as increased output from the decorative sector; therefore, the data from this period is not considered representative of the typical emissions generated by the industry. The 2018 baseline is also in line with other sectors relevant to the coatings sector, such as the manufacturing industry 39.

39

20

The BCF has put together an inventory of carbon emissions from our sector for the base year 2018, using the most accurate data provided by our members. This is summarised in Table 4 and Table 5.

The GHG emissions data from individual BCF members has been aggregated and averaged for the industry; this includes total GHG emissions and GHG intensity (or GHG emissions per tonne of production). The average GHG intensity has been used to estimate the total scope 1 and 2 emissions for each sub-sector (decorative paints, industrial coatings, printing inks and wallcoverings), based on the most recent sales data from BCF’s Coatings Care programme, which is submitted as part of the UK National Atmospheric Emissions Inventory (NAEI) every year. For scope 3, a selection of the most representative data for each subsector has been made, noting limited data was made available at the time of this roadmap. The GHG turnover ratio has also been calculated for all sub-sectors, except wallcoverings, and it is based on the total GHG emissions per £1M turnover. The breakdown of emission scopes and the turnover figures were not available for the wallcoverings sector at the time of this roadmap; for this sector, carbon emissions data from Climate Change Agreements (CCAs) has been used.

The BCF’s baseline for scope 1 and 2 emissions is approximately 100,000 tonnes of CO₂(e), and it will be used to track the industry’s progress against the Net Zero target. Due to the known challenges around scope 3 emissions there is currently limited data available; therefore, scope 3 emissions have not been included in the industry’s baseline in this first issue of the roadmap.

Our initial estimate, however, is that this number would be in excess of 2.5 million tonnes of CO₂(e).

https://www.makeuk.org/insights/reports/manufacturing-sector-net-zero-roadmap

Road to Net Zero

Most larger BCF members have already calculated their scope 3 emissions and started to take action with suppliers and customers. BCF will continue working with smaller members to further quantify scope 3 emissions in the near future, so that they can be incorporated to our industry’s baseline (and targets) as data becomes more available and accurate.

BASE YEAR: 2018 Industry sub-sector

Emissions category

Total GHG emissions in tCO₂(e)

GHG emissions in tCO₂(e) per tonne of production or GHG intensity

GHG emissions in tCO₂(e) per £1M turnover

Decorative

Scope 1

12,372

0.02

12.11

Decorative

Scope 2

15,178

0.03

14.85

Total Decorative

Total scope 1 & 2

27,551

0.05

26.96

Industrial

Scope 1

14,422

0.06

12.16

Industrial

Scope 2

14,604

0.06

12.31

Total Industrial

Total scope 1 & 2

29,027

0.12

24.47

Printing Inks

Scope 1

5,067

0.07

9.14

Printing Inks

Scope 2

10,810

0.14

19.49

Total Printing Inks

Total scope 1 & 2

15,877

0.21

28.63

Total Wallcoverings

Total scope 1 & 2

27,243

1.94

n/a

TOTAL All sub-sectors

Scope 1 & 2

99,698

2.32

80.06

Table 4. The industry’s baseline carbon emissions (scope 1 and 2, 2018 data).

BASE YEAR: 2018 Industry sub-sector

TOTAL All sub-sectors TOTAL All sub-sectors

Emissions category

Total GHG emissions in tCO₂(e)

GHG emissions in tCO₂(e) per tonne of production or GHG intensity

GHG emissions in tCO₂(e) per £1M turnover

Scope 1 & 2

99,698

2.32

80.06

Scope 3

2,693,583

9.97

2,764.01

All scopes

2,793,281

12.28

2,844.07

Table 5. Summary of the industry’s carbon emissions (all scopes, 2018 data).

Road to Net Zero

21

5.2. Calculating emissions An organisational carbon footprint (or GHG inventory) should be considered as an essential starting point in the development of any carbon strategy. By calculating its carbon footprint, any organisation can quantify the GHG emissions arising from its core activities over a defined period; this is usually reported in tonnes of carbon dioxide equivalent (tCO₂e). The carbon footprint enables the organisation to understand its carbon hotspots and it can be used to benchmark and to identify future carbon reduction actions.

The GHG Protocol provides Accounting and Reporting Standards for scope 1, 2 and 3 emissions. The GHG Protocol Corporate Accounting and Reporting Standard 40 is the most common standard for corporate reporting of scope 1 and 2 emissions. The Corporate Value Chain (Scope 3) Standard 41 is the only internationally accepted method for corporate reporting of scope 3 emissions.

When producing a GHG inventory, organisations that are completely new to reporting may need to focus on their scope 1 and 2 emissions first, as these are within their direct control. The Carbon Trust offer a free online tool called The Carbon Footprint Calculator 42, which has been designed to help UK based SMEs measure their corporate emission footprint following GHG Protocol Guidance, including direct emissions from fuel and processes (scope 1 emissions) and those emissions from purchased electricity (or scope 2 emissions) for the assets they operate. The following information is required for the chosen reporting year: fuel consumption, energy consumption and top ups made to air conditioning units. This tool only includes selected emission sources but it can provide an indication of scope 1 and 2 emissions of an organisational carbon footprint.

There are two ways to report scope 2 emissions, using either a location-based or market-based methodology 43.

•

•

The location-based methodology calculates emissions associated with a company’s electricity consumption by using the average emissions intensity of the electricity grid in the country where the electricity is consumed. This method does not take into account contract specific emissions factors, for example if a company chooses to purchase renewable electricity.

The market-based approach calculates a company’s scope 2 emissions based on emissions factors that are specific to the electricity they are purchasing. For example, if the company buys 100% renewable, this will have an emission factor of 0 KgCO₂e/KWh which results in zero scope 2 emissions.

Under the Streamlined Energy and Carbon Reporting (SECR) guidance 44 large companies must report their location-based emissions and can include their market-based emissions as an addition. The GHG Protocol encourages companies to report both location and market-based emissions to demonstrate their investment in lower carbon electricity.

Scope 3 emissions are a complex subject, which is covered in more detail in the section below. For organisations that do not have the resource or expertise available to produce a GHG inventory there are consultancies available that can do these calculations for them. A summary of emission categories, possible calculation methods and available guidance is presented in Table 6.

40 https://ghgprotocol.org/corporate-standard 41 https://ghgprotocol.org/corporate-value-chain-scope-3-standard 42 https://www.carbontrust.com/our-work-and-impact/guides-reports-and-tools/sme-carbon-footprint-calculator 43 https://www.cia.org.uk/Portals/0/Documents/Policy%20Position%20Statements/Navigating%20Net%20Zero.pdf?ver=2022-07-22-093042-183 44 https://www.gov.uk/government/publications/environmental-reporting-guidelines-including-mandatory-greenhouse-gas-emissionsreporting-guidance

22

Road to Net Zero

Emissions category

Examples 45

Top tips

Calculation methods

Guidance

Scope 1

Emissions from generation of electricity, heat, or steam, which result from combustion of fuels in stationary sources, e.g., boilers, furnaces, turbines.

Involve employees who have visibility of fuel consumption. This can include finance, facilities/ estates teams and if available, energy managers.

GHG Protocol Calculation Tools and Guidance

https://ghgprotocol. org/calculation-toolsand-guidance

Emissions from physical or chemical processing, most of which result from manufacture or processing of chemicals and materials, e.g., cement, aluminium, adipic acid, ammonia manufacture, and waste processing.

https://ghgprotocol. org/sites/default/ files/standards/ghgprotocol-revised.pdf Government conversion factors

Emissions from transportation of materials, products, waste, and employees, which result from the combustion of fuels in company owned/controlled mobile combustion sources (e.g., trucks, trains, ships, airplanes, buses, and cars).

https://www.gov. uk/government/ publications/ greenhouse-gasreporting-conversionfactors-2023

Fugitive emissions, which result from intentional or unintentional releases, e.g., equipment leaks from joints, seals, packing, and gaskets; methane emissions from coal mines and venting; hydrofluorocarbon (HFC) emissions during the use of refrigeration and air conditioning equipment; and methane leakages from gas transport.

Scope 2

Emissions from the generation of purchased electricity that is consumed in its owned or controlled equipment or operations.

https://www.gov. uk/government/ collections/ governmentconversion-factors-forcompany-reporting

Involve employees who have visibility of electricity consumption.

This can include finance, facilities/ estates teams and if available, energy managers.

Carbon Trust SME Carbon Footprint Calculator

https://www. carbontrust.com/ourwork-and-impact/ guides-reports-andtools/sme-carbonfootprint-calculator

GHG Protocol Calculation Tools and Guidance

https://ghgprotocol. org/calculation-toolsand-guidance https://ghgprotocol. org/sites/default/ files/standards/ghgprotocol-revised.pdf https://ghgprotocol. org/sites/default/ files/2023-03/Scope%20 2%20Guidance.pdf

Government conversion factors

https://www.gov. uk/government/ collections/ governmentconversion-factors-forcompany-reporting https://www.gov. uk/government/ publications/ greenhouse-gasreporting-conversionfactors-2023

Carbon Trust SME Carbon Footprint Calculator

https://www. carbontrust.com/ourwork-and-impact/ guides-reports-andtools/sme-carbonfootprint-calculator

Table 6. Summary of emission categories, calculation methods and guidance.

45

https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf

Road to Net Zero

23

Scope 3

Emissions from the extraction and production of purchased materials and fuels.

Emissions from transport-related activities: • • • • • •

Transportation of purchased materials or goods Transportation of purchased fuels Transportation of sold products Transportation of waste Employee business travel Employees commuting to and from work

Electricity-related activities not included in scope 2: • Extraction, production, and transportation of fuels consumed in the generation of electricity (either purchased or own generated by the reporting company).

• Purchase of electricity that is sold to an end user (reported by utility company).

• Generation of electricity that is consumed in a transmission and distribution (T&D) system (reported by end-user)

A wider variety of employees may need to be involved but as a starting point, finance will be key.

GHG Protocol Calculation Tools and Guidance

https://ghgprotocol. org/sites/default/ files/standards/ghgprotocol-revised.pdf

Review the scope 3 categories first to understand how they apply to your business and help establish who would be able to provide the relevant data.

https://ghgprotocol. org/sites/default/files/ standards/CorporateValue-ChainAccounting-ReporingStandard_041613_2.pdf

Focus data collection efforts on the raw materials that represent the highest percentage of total spend.

Make the data request to suppliers as simple as possible. Consider the use a simple, userfriendly, standardised data template or questionnaire.

Request information on methodology, data sources and assumptions.

https://ghgprotocol. org/sites/default/ files/2023-03/ Scope3_Calculation_ Guidance_0%5B1%5D. pdf https://ghgprotocol. org/sites/default/ files/2022-12/Scope%20 3%20Detailed%20FAQ. pdf Government conversion factors

Emissions from leased assets, franchises, and outsourced activities.

https://www.gov. uk/government/ collections/ governmentconversion-factors-forcompany-reporting https://www.gov. uk/government/ publications/ greenhouse-gasreporting-conversionfactors-2023

Use of sold products and services.

Waste disposal: • Disposal of waste generated in operations.

• Disposal of waste generated in the production of purchased materials and fuels.

• Disposal of sold products at the end of their life.

https://ghgprotocol. org/calculation-toolsand-guidance

Carbon Trust ‘An introductory guide to scope 3 emissions’

Supply Chain Sustainability School ‘FREE Carbon Calculator for supply chains’

https://www. carbontrust.com/ourwork-and-impact/ guides-reports-andtools/an-introductoryguide-to-scope-3emissions https://carbon. sustainabilitytool.com/

Table 6. Summary of emission categories, calculation methods and guidance.

5.2.1. Scope 3 emissions

Scope 3 is a complex subject, comprising 15 different categories. There are a number of resources available which BCF members can refer to in order to measure their scope 3 emissions.

• The GHG Protocol Technical Guidance for Calculating Scope 3 Emissions 46 provides concise information on the methodology for reporting emissions for each scope 3 category. The parent document to this guidance is the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard 47 (referred to as the Scope 3 Standard), which offers an internationally accepted method to enable GHG management of companies’ value chains.

• The GHG Protocol Scope 3 Frequently Asked Questions 48 provides answers to some of the most frequent questions BCF members may have, such as how to collect data from suppliers and how to address double counting of scope 3 emissions.

• The Carbon Trust Guide to Scope 3 Emissions 49 provides a step-by-step guide to measure scope 3 emissions.

• The Supply Chain Sustainability School developed a free carbon calculator for supply chains 50 to support them with calculating their GHG emissions, and provide clients with a view of emissions embedded in their supply chains.

46 47 48 49 50

24

https://ghgprotocol.org/sites/default/files/2023-03/Scope3_Calculation_Guidance_0%5B1%5D.pdf https://ghgprotocol.org/sites/default/files/2023-03/Scope3_Calculation_Guidance_0%5B1%5D.pdf https://ghgprotocol.org/sites/default/files/2022-12/Scope%203%20Detailed%20FAQ.pdf https://www.carbontrust.com/our-work-and-impact/guides-reports-and-tools/an-introductory-guide-to-scope-3-emissions https://www.supplychainschool.co.uk/topics/sustainability/energy-and-carbon/

Road to Net Zero

Double counting of scope 3 emissions

Double counting within scope 3 occurs when two entities in the same value chain account for the scope 3 emissions from a single emissions source. For example, if a manufacturer and a retailer both account for the scope 3 emissions resulting from the third-party transportation of goods between them (see Figure 15). This type of double counting is an inherent part of scope 3 calculations, as each entity in the value chain has some degree of influence over emissions reductions. However, double counting may be a problem when it comes to carbon offsetting (covered in section 8 of this roadmap) or other claims to GHG reductions or removals. To avoid double counting in this instance, organisations should for example specify exclusive ownership of reductions through contractual agreements. This highlights the importance of BCF members communicating with their suppliers and customers about their carbon emissions.

Figure 15. Example of double counting within scope 3 51.

An example of the typical approach that can be taken when developing scope 3 calculations is given in Figure 16.

The start point of this approach is to carry out a high-level screening assessment across all 15 scope 3 categories.

This is followed by a review of the most appropriate data sources for all significant scope 3 categories. Then, supply chain engagement to facilitate the collection of all relevant data. Finally, calculate scope 3 emissions and review the data quality to establish priority areas for further supply chain engagement and to support the identification of carbon reduction opportunities.

Figure 16. Example of process flow for developing scope 3 emissions calculations 52.

5.2.2. Life Cycle Assessments For manufacturing companies, it can also be useful to consider undertaking a product carbon footprint or Life Cycle Assessment (LCA) in order to assess the full (cradle to grave) or partial (cradle to gate) carbon emissions of a specific product. This can help with the further quantification and improvement of the organisation’s scope 3 emissions.

A product footprint or LCA considers the full lifecycle emissions of a specific product. An organisation may undertake multiple LCAs in order to compare the carbon impacts across their range of products. This process allows organisations to understand the carbon hotspots of a particular product, which can be used to identify improvements in production processes. See Figure 17.

Figure 17. Examples of product footprints 53.

51 52 53

https://ghgprotocol.org/sites/default/files/2022-12/Scope%203%20Detailed%20FAQ.pdf https://circularecology.com/scope-3-carbon-footprint.html https://circularecology.com/scope-3-carbon-footprint.html

Road to Net Zero

25

On the other hand, an organisational carbon footprint considers the total emissions across all the organisation’s activities, product and non-product related (e.g., emissions from employee commuting). This information can be useful when quantifying scope 3 emissions and it can be used to focus stakeholder engagement. See Figure 18.

Figure 18. Examples of organisational footprints 54.

An organisation may benefit from both types of assessments depending on its objectives and requirements, and there may be crossovers between the two processes.

CEPE have developed a standard industry Life Cycle Inventory (LCI) database; this is called the Ecofootprint Tool 55.

The Ecofootprint tool is an online tool that enables companies to calculate LCAs for their products in 3 simple steps, based on coatings formulation. It uses both the manufacturing and the raw materials databases, and it is updated regularly. All CEPE members (and BCF members) can have access to the Ecofootprint tool, however, printing ink companies are not advised to use it. The European Printing Ink Association (EuPIA) has performed a LCA to study the footprint of a generic printing ink formulation correctly, representing printing inks for all print processes 56.

It is CEPE’s opinion that LCAs form the basis on which decisions on sustainable developments should be made, and they are fundamental to understand the upstream and downstream implications of a change at any point in the supply chain 57. For example, in 2015 CEPE presented in their annual conference and general assembly an example of an LCA whose aim was to establish the role of a powder coating in the life cycle of powder-coated aluminium window frames. In this scenario, the powder coating provides surface improvement to prevent corrosion, and thus extending the durability of the window. One of the conclusions from this example was that the environmental impact associated with the powder coating was proportional to the lifetime of the window frame, which was related to the class of powder. Another LCA example from CEPE was presented in their annual conference in 2014, which addressed the role of paint in the maintenance of a steel bridge.

In recent years, the term ‘embodied carbon’ has become synonymous with the term ‘carbon footprint’, and it can be defined as the total carbon footprint of a material or product, including all emissions associated with its production, i.e., extraction of the raw material, refinement, processing, manufacturing and transportation. Embodied carbon assessments (or carbon footprinting) are a subset of LCA, only considering the GHG environmental impact category.

Embodied carbon is gaining increasing attention, particularly from the construction industry where it is now recognised that embodied carbon emissions make up a large fraction of the emissions from that sector.

5.2.3. Emission factors The Government produce conversion factor spreadsheets that organisations can use for GHG emissions reporting.

This is the most common approach for calculating GHG emissions. An emission factor is a coefficient that describes the rate at which a given activity releases GHGs into the atmosphere. They are also referred to as conversion factors, emission intensity and carbon intensity.

In order to calculate the GHG emissions for a particular activity, organisations need to collect or estimate ‘activity data’, such as: • Distance travelled • Litres of fuel used • Tonnes of waste disposed Then, the activity data is multiplied by the appropriate (emission) conversion factor. This gives an estimate of the GHG emissions for that activity.

GHG emissions = activity data x conversion factor 54 55 56 57

26

https://circularecology.com/scope-3-carbon-footprint.html https://www.cepe.org/sustainability-2/background-information-on-cepe-database/ https://www.eupia.org/wp-content/uploads/2022/09/Eco_Footprint_and_Screening_of_Virtual_reference_01.pdf https://www.cepe.org/wp-content/uploads/2020/05/Charter_Sustainibility-3.pdf

Road to Net Zero

A new set of conversion factors is produced by the Government each year, together with step by step guidance on how to use them; they can be found at: https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting The conversion factors for use by UK and international organisations to report on 2023 GHG emissions were published in June 2023 58. Each worksheet presents the emission factors for a single type of emissions-releasing activity (for example, using electricity or driving a vehicle). These emissions-releasing activities are categorised into three groups for each scope (scope 1, 2 and 3). Each worksheet provides guidance on calculating emissions from a particular activity, the emission factors for that activity, examples and frequently asked questions.

5.2.4. GHG Protocol calculation tools

There are free online tools available to help estimate emissions, such as the GHG Protocol Calculation Tools 59. The GHG Protocol Calculation Tools use default emission factors from the Intergovernmental Panel on Climate Change (IPPC) Guidelines for National GHG Inventories 60, which can be accessed from the Emission Factor Database (EFDB) 61 . Organisations can also enter their own emission factors when using the tools. By default, these tools use the GWP values from the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (2014)62, but alternative GWP sets are also available.

Use of the GHG Protocol Calculation Tools is encouraged as they have been peer reviewed by experts and industry leaders and are regularly updated. The tools, however, are optional. Companies may substitute their own GHG calculation methods, provided they are more accurate than or are at least consistent with the GHG Protocol Corporate Standard 63 approach. Most companies will need to use more than one calculation tool to cover all their GHG emission sources. See Table 7 for the full list of tools that are available on the GHG Protocol website.

Table 7. Overview of GHG calculation tools available on the GHG Protocol website 64.

58 59 60 61 62 63 64

https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023 https://ghgprotocol.org/calculation-tools-and-guidance https://www.ipcc.ch/data/ https://www.ipcc-nggip.iges.or.jp/EFDB/main.php https://www.ipcc.ch/assessment-report/ar5/ https://ghgprotocol.org/corporate-standard https://ghgprotocol.org/corporate-standard

Road to Net Zero

27

There are two main categories of calculation tools: • Cross-sector tools, which can be applied to different sectors. These include stationary combustion, mobile combustion, hydrofluorocarbons (HFC) use in refrigeration and air conditioning, and measurement and estimation of uncertainty.

• Sector-specific tools, which are designed to calculate emissions in specific sectors. These include aluminium, iron and steel, cement, wood, pulp and paper.

Each of the cross-sector and sector-specific calculation tools on the GHG Protocol website share a common format and include a step-by-step guide on measuring and calculating emissions data. Each tool consists of a guidance section and automated worksheets with explanations on how to use them.

The GHG Protocol Scope 3 Evaluator 65 was developed around 10 years ago and has offered a starting point for organisations aiming to calculate scope 3 emissions. It is a free online tool built on Quantis SUITE 2.0 software; however, it has gradually become obsolete and it was decommissioned on the 30th August 2023.

5.3. Carbon reporting The Climate Change Committee advises the UK Government on emissions targets and reports to Parliament66 on progress made in reducing GHG emissions and adapting to climate change. Their 2023 statutory report to Parliament states that to achieve the UK goal of at least a 68% fall in emissions from 1990 levels by 2030, the rate of emissions reduction outside the power sector must almost quadruple. The report states that this is due to the continued Government delays in policy development and implementation, which is making the 2030 target increasingly challenging.

There are direct benefits to organisations in the measuring and reporting of environmental performance (including GHG emissions) such as lower energy and resource costs, better understanding of exposure to the risks of climate change and demonstration of leadership, which will help strengthen the company’s green credentials in the marketplace67.

BCF members are encouraged to raise internal and external awareness on climate action through reporting and disclosure of their total carbon footprint, targets set and progress against them. This could be reported in their website, annual reports or sustainability reports to openly communicate progress and drive climate action across the industry. BCF members could also consider joining voluntary disclosure schemes such as the Carbon Disclosure Project 68, Global Reporting Initiative69 and Task Force for Climate-related Financial Disclosures70.

The requirement for carbon reporting differs according to company size, and while the smaller companies may be exempt from reporting their carbon emissions at present, there are still benefits to doing so. There are certain legislative and regulatory requirements for carbon reporting such as the Streamlined Energy and Carbon Reporting (SECR) 71regulations , which some UK businesses may need to comply with (particularly large organisations).

The reporting framework is intended to encourage the implementation of energy efficiency measures, with both economic and environmental benefits, supporting companies in cutting costs and improving productivity at the same time as reducing carbon emissions. Annual reporting of scope 1 and 2 emissions from covered businesses and a relevant emissions intensity ratio are the relevant disclosure requirements under the SECR regulations. Scope 3 emissions reporting is optional but is strongly recommended for material emissions sources. There is no prescribed methodology for calculating GHG emissions in the SECR regulations, although the methodology used must be explained when reporting the data. The Carbon Trust ‘SECR explained: Streamlined Energy & Carbon Reporting framework for UK business’ 72 article explains the SECR framework in more detail.

65 https://quantis-suite.com/Scope-3-Evaluator/ 66 https://www.theccc.org.uk/wp-content/uploads/2023/06/Progress-in-reducing-UK-emissions-2023-Report-to-Parliament.pdf 67 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/850130/Env-reporting-guidance_ inc_SECR_31March.pdf 68 https://www.cdp.net/en 69 https://www.globalreporting.org/ 70 https://www.fsb-tcfd.org/ 71 https://www.gov.uk/government/publications/academy-trust-financial-management-good-practice-guides/streamlined-energy-andcarbon-reporting 72 https://www.carbontrust.com/news-and-insights/insights/secr-explained-streamlined-energy-carbon-reporting-framework-for-ukbusiness

28

Road to Net Zero

Table 8 summarises the existing UK Government carbon reporting schemes and relevant disclosure requirements for businesses. These requirements will not be relevant to all BCF members and they generally apply to large organisations. More detail is given in the sub-sections below.

Table 8. Existing UK Government carbon reporting schemes and relevant disclosure requirements for businesses73.

Energy Saving Opportunity Scheme (ESOS)

ESOS is an energy assessment scheme which requires large businesses in the UK to carry out an audit of the energy used by their buildings, industrial processes and transport at least every 4 years. Under current regulations there are no emissions disclosure requirements for ESOS. Participants are only required to report that they have complied with the scheme requirements for a compliant energy audit and provide limited data about the organisation.

Proposed data to be reported/published is set out in the original Strengthening ESOS consultation 74 document and ESOS Phase 3 disclosure (current compliance deadline 2024) is expected to include: • Total energy consumption by the organisation in a continuous 12 month period, including the energy consumed across buildings, transport and industrial processes.

• An energy intensity metric that is relevant for each of buildings, transport and industrial processes.

• Potential savings identified in the Phase 3 ESOS audit.

ESOS Phase 4 (current compliance deadline 2027) will also likely include GHG emissions broken down in the same way as energy reporting and recommendations from the audit, including both energy and emissions. For more information BCF members can refer to the Government guidance ‘Energy Security Bill factsheet: Powers to strengthen the energy savings opportunity scheme’ 75.

UK Emissions Trading Scheme (UK ETS) The UK ETS applies to energy intensive industries, the power generation sector and aviation. Activities in scope of the UK ETS are listed in Schedule 1 (aviation) and Schedule 2 (installations) of the Greenhouse Gas Emissions Trading Scheme Order 2020 76. For installations, the UK ETS applies to regulated activities which result in GHG emissions, including combustion of fuels on a site where combustion units with a total rated thermal input exceeding 20MW are operated (except in installations where the primary purpose is the incineration of hazardous or municipal waste).

Reporting of scope 1 emissions is required by the scheme.

For more information BCF members can refer to the Government guidance ‘Participating in the UK ETS’ 77.

73 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1149568/UPDATED_FINAL_ CONDOC_-_HMG_TEMPLATE_-_ADDRESSING_CARBON_LEAKAGE_RISK_TO_SUPPORT_DECARBONISATION.pdf 74 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1094702/energy-savingsopportunity-scheme-consultation-govt-response.pdf 75 https://www.gov.uk/government/publications/energy-security-bill-factsheets/energy-security-bill-factsheet-powers-to-strengthen-theenergy-savings-opportunity-scheme 76 https://www.legislation.gov.uk/uksi/2020/1265/contents/made 77 https://www.gov.uk/government/publications/participating-in-the-uk-ets/participating-in-the-uk-ets

Road to Net Zero

29

Streamlined Energy and Carbon Reporting (SECR) The 2018 Regulations apply to large unquoted companies that have consumed (in the UK), more than 40,000 kilowatt-hours (kWh) of energy in the reporting period. Large companies, as defined in sections 465 and 466 of the Companies Act 2006, are companies that meet two or more of the following criteria: • • •

turnover (or gross income) of £36 million or more, balance sheet assets of £18 million or more, 250 employees or more.

Where a large company does not consume more than 40,000 kWh of energy in a reporting period, it qualifies as a low energy user and is exempt from reporting under these regulations. Where a company is not required to report under the 2018 Regulations, because of its size and/or consumption, BEIS encourages them to do so on a voluntary basis.

There is a varied disclosure on GHG emissions and energy use depending on the type of company. For companies that meet the thresholds the following disclosure requirements apply: • • • • • •

Annual GHG emissions from activities including the combustion of fuel and operation of any facility (scope 1) , as well as annual emissions from purchase of electricity, heat, steam or cooling that the company is responsible for (scope 2).

Annual UK energy use.

Previous year's figure for energy use and GHGs emissions (scope 1 and 2).

At least one intensity ratio.

Energy efficiency action taken.

Methodology used for measuring emissions.

Reporting of scope 1 and 2 emissions remains mandatory for the covered companies, however, reporting of scope 3 emissions is optional.

For more information BCF members can refer to the Government guidance ‘Streamlined Energy and Carbon Reporting (SECR) for academy trusts’ 78.

Climate Change Agreements The scheme is not a mandatory disclosure scheme but does require participants to report the relevant energy consumption by fuel type for the facility (or group of facilities) covered by a voluntary Climate Change Agreement (CCA) to the scheme administrator (the Environment Agency). This is to determine if they have met their target for the period (‘Target Period’). The Department for BEIS has extended the CCA scheme for 2 years, until March 2025.

The vast majority of targets are relative energy targets, however any under or overperformance is converted to emissions for the purpose of showing surplus or calculating a buy-out cost to remain certified and to receive reduced rates of the Climate Change Levy (CCL). Each sector has a negotiated target which is cascaded to individual ‘Target Units’; these units can be single or grouped facilities.

BCF members can check if the processes they run are eligible for inclusion in a CCA by reading the summary in Appendix A of the CCA operations manual 79. Wallcoverings is a listed sector that falls under the requirements of the CCA scheme at present.

For more information BCF members can refer to the Government guidance on Climate Change Agreements 80.

78 https://www.gov.uk/government/publications/academy-trust-financial-management-good-practice-guides/streamlined-energy-andcarbon-reporting 79 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1056762/Climate-ChangeAgreements-Operations-Manual.pdf 80 https://www.gov.uk/guidance/climate-change-agreements--2

30

Road to Net Zero

TARGET SETTING

Once an organisation has understood its baseline emissions and has successfully implemented its GHG inventory, it should set its carbon reduction targets. Setting carbon goals and objectives is not a prescriptive process, and so each organisation will need to assess their own individual circumstances and requirements. As a minimum, organisations should align with the global commitment to achieving Net Zero emissions by 2050, which is the pledge that BCF made in October 2021 and is the ultimate industry’s Net Zero target.

The Paris Agreement 81 set out an ambition to limit average global temperature rises to well-below two degrees, and ideally to 1.5 degrees compared to pre-industrial levels. For businesses to align to this ambition, frameworks have been developed for target reductions aligned to the latest climate science. These are known as Science Based Targets (SBTs). SBTs provide a clearly defined pathway for organisations to reduce their GHG emissions, and they are in line with the goals of the Paris Agreement. Typically, SBTs can be near-term targets, with target years set between 5-10 years from the date of adoption, or longer-term targets to be achieved before 2050. It is recommended that businesses submit their targets to the Science Based Target Initiative (SBTi) for validation, to demonstrate and publicly verify their commitment to aligning with the Paris Agreement.

SMEs can submit targets through a streamlined target validation route of the SBTi 82. This allows SMEs to bypass the initial stage of committing to a set SBT and the standard validation process. SMEs have two target-setting options: •

•

Near-term targets, which are scope 1 and 2 GHG emissions reduction targets that should be achieved by 2030, from a predefined base year. SMEs are not required to set near-term targets for their scope 3 emissions. Instead, they must commit to measure and reduce these emissions.

Net-zero targets, which include: • Long-term, which are scope 1, 2 and 3 GHG emissions reduction targets that should be achieved by 2050, from a predefined base year.

• A commitment to neutralise any unabated emissions when the long-term SBT is achieved.

To be eligible to set a net-zero target, SMEs must first set nearterm targets aligned to a 1.5°C pathway.

81 https://www.un.org/en/climatechange/paris-agreement 82 https://sciencebasedtargets.org/small-and-medium-enterprise-smetarget-setting-process

Road to Net Zero

31

Figure 19 explains the core elements of setting a SBT. Further guidance can be found on the SBTi Corporate Net Zero Standard 83.

When setting SBTs organisations need to note that carbon offsets cannot be included as part of Net Zero targets.

Carbon offsets (also known as carbon reduction credits – refer to section 8) relate specifically to carbon neutrality, which refers to the balancing of an organisation’s emissions by means of the purchasing of these offsets or credits.

Being carbon neutral requires at least the purchase of offsets to equivalent levels as the reported emissions released by the organisation, but does not necessarily mean that the organisation has reduced its actual operational emissions. On the other hand, climate positive (also known as carbon negative or net negative) refers to the overall removal of emissions to a greater level than the emissions released, in the form of technology (e.g., carbon capture) or sequestration (e.g., biobased solutions).

Figure 19. Core elements of setting a SBT84.

On the 13th October 2021, the BCF Board of Directors, on behalf of our members, pledged that the coatings industry will reach Net Zero by 2050. Figure 20 illustrates our commitment to Net Zero by 2050 and shows the various waypoints in our Net Zero journey. However, noting that the term ‘Net Zero’ is commonly understood to cover all three scopes, it is important to acknowledge that BCF’s targets are for scope 1 and 2 emissions only at this stage.

Once scope 3 emissions data becomes more accessible and reliable, BCF will incorporate them to the baseline and targets for our sector, and an updated roadmap will be published.

83 84

32

https://sciencebasedtargets.org/net-zero https://www.cia.org.uk/Portals/0/Documents/Policy%20Position%20Statements/Navigating%20Net%20Zero.pdf?ver=2022-07-22-093042-183

Road to Net Zero

Figure 20. Net Zero target and suggested waypoints for BCF members for scope 1 and 2 emissions.

The industry’s start point is in 2018, which is our base year. This represents the 100% of the GHG emissions associated with our sector, that is, our baseline. The Net Zero target has to be achieved by 2050 and represents 0% of the GHG emissions associated with our sector. This trendline is illustrated by a dotted line in Figure 20, and it has been calculated based on the average annual scope 1 and 2 emissions from our sector for the period 2018-2022.

It is acknowledged that some members may already have their own specific Net Zero targets or ambitions (refer to Appendix A), and although the BCF has not yet committed to any targets other than 2050, we strongly encourage carbon reduction initiatives across our sector on our way to Net Zero (in 2030, 2035 and 2040).

Our projected emission levels for scope 1 and 2 (see Figure 20) suggest that in order to reach Net Zero by 2050 our industry will have to achieve a 38% reduction of GHG emissions by 2030, a 53% reduction by 2035 and a 69% reduction by 2040, compared to the 2018 baseline. These waypoints focus on carbon emission reductions, which are within our members’ direct control (scope 1 and 2); any remaining emissions which cannot be eliminated in the first place must be balanced by finding ways to absorb an equivalent amount (e.g., carbon removals) of GHG from the atmosphere. This will be covered in more detail in section 8 (carbon offsetting).

It is noted that the UK’s 2030 and 2035 Net Zero targets (68% and 78% reduction in GHG emissions, respectively) are significantly higher than the coatings industry’s targets (38% and 53%, respectively). This may be because the UK Government targets have a baseline of 1990, with a 46% reduction of GHG emissions having been achieved already; plus, the Government targets are based on complex modelling. For the coatings industry, however, our baseline is 2018 and our projected emission levels are based on a simple linear trendline; therefore, we are at the beginning of our Net Zero journey as a collective.

Road to Net Zero

33

CARBON REDUCTION PLAN The coatings industry can take meaningful actions to reduce its carbon emissions and be able to achieve Net Zero by 2050; in fact, many BCF members are already contributing to the industry’s decarbonisation in an active way.

Some of these initiatives will be novel solutions developed by individual companies or as a sector collectively, such as the BCF’s PaintCare scheme.

It is important to highlight the importance of the agreed actions through the use of metrics such as environmental Key Performance Indicators (KPIs), which can be used to measure team performance. An example of environmental KPIs can be seen in Figure 21.

Figure 21. Example of environmental KPIs85.

The use of carbon offsets is seen as a last resort for residual emissions where no feasible solution to eliminating them currently exists. This is highlighted further in section 8 of this roadmap.

The industry has identified four key focus areas for emissions reduction as part of our Net Zero strategy:

Energy efficiency

Using renewable energy and low carbon hydrogen as a fuel.

85

34

Resource efficiency

Developing new products and technologies including biobased sources, and promoting recycling.

Carbon capture

Utilisation and storage, establishing decarbonisation clusters through carbon transport and storage networks.

Supply chain collaboration Promoting communication and engagement between manufacturers and suppliers to explore scope 3 emissions reduction opportunities.

https://www.cia.org.uk/Portals/0/Documents/Policy%20Position%20Statements/Navigating%20Net%20Zero.pdf?ver=2022-07-22-093042-183

Road to Net Zero

These areas are aligned with the Manufacturing Sector Net Zero Roadmap 86, and they will be covered in more detail in the following sections.

In order to support BCF members with reducing their carbon emissions and reaching Net Zero, a number of action checklists have been developed as part of this roadmap; these are presented at the end of this chapter.

7.1.

Energy efficiency

Generating electricity from low carbon sources, such as renewables and nuclear, and electrifying heating and transportation would help reduce emissions. It is noted, however, that UK electricity prices have been substantially higher than in other comparable countries, making a switch to electricity very challenging commercially. This issue is intensified for sectors exposed to international trade. On the other hand, gas prices have increased due to unprecedented demand and other external factors, pulling up the electricity costs even more.

Hydrogen is expected to play an important role in global decarbonisation. The main hydrogen production processes are illustrated in Figure 22. Green hydrogen is made using water and electricity generated from renewable energy; this process is called ‘electrolysis.’ Since green hydrogen does not use any carbon source, there is no CO₂ release associated with it, unlike brown and grey hydrogen which release significant CO₂ to the air. Blue hydrogen comes from natural gas with carbon capture and storage (CCS) to capture emissions produced during the process. Since CO₂ is captured when producing blue hydrogen, there is no release of CO₂ to the air. Whilst clean hydrogen is a term that has no official definition, it is generally agreed that it is referred to blue or green hydrogen.

Figure 22. Hydrogen production processes87.

Some of the options to allow manufacturers to switch from fossil fuels to low carbon alternatives, such as green hydrogen or bioenergy, to produce heat or power are still in developmental stages. Green hydrogen, particularly, requires significant innovation to ensure supply in sufficient quantities and distribution outside industrial clusters.

However, it is expected that there will be a significant growth in demand for green hydrogen across several sectors in the future, including transport, chemicals, aviation, etc. The Climate Change Committee forecasts significant low carbon hydrogen production by 2035, and some companies already have access to gas networks 88 where a proportion of hydrogen is blended into the supply.

86 87 88

https://www.makeuk.org/insights/reports/manufacturing-sector-net-zero-roadmap https://www.carbontrust.com/news-and-insights/insights/worth-the-hype-the-role-of-clean-hydrogen-in-achieving-net-zero https://hydeploy.co.uk/

Road to Net Zero

35

Biomass from dedicated crops or forestry and agricultural residues is the most established option to replace fossil fuels as a feedstock 89. However, there are concerns about land demand, competition across sectors and biodiversity loss. It is therefore important to consider the whole lifecycle to ensure that there is a net carbon benefit.

As well as using fossil fuels in manufacturing processes, many manufacturers use natural gas for space heating.

Switching to low carbon heating alternatives such as biomass boilers may not be economically viable for manufacturers that need to heat large spaces. The transition to a hydrogen-based gas system may be a better option, which will require a significant investment in hydrogen production and transportation. The development of a hydrogen network to allow hydrogen to be utilised by manufacturers across the country will be required, and there are several coalitions between energy companies and manufacturers already in place to progress these plans, for example Net Zero Teesside 90.

HyNet 91 is one of the UK’s leading industrial decarbonisation projects which will provide the infrastructure to produce, transport and store low carbon hydrogen across the North West and North Wales. It will also provide the infrastructure to capture, transport and lock away CO₂ emissions from industry across the region. Hydrogen will be manufactured in the North West at a low carbon hydrogen production plant, which will initially supply local industry with locally produced hydrogen. The hydrogen will be transported by underground pipelines, similar to natural gas today. A proposal of HyNet’s decarbonisation cluster showing the hydrogen and carbon networks is presented in Figure 23.

The Department for Energy Security and Net Zero (DESNZ) commissioned a study to understand the safety, feasibility, cost and impacts for seven industrial sites to switch from natural gas to 100% hydrogen for heating 92.

The report was published on the 5th July and highlighted that a central focus of the work on hydrogen heating is to assess the safety implications of switching from natural gas to hydrogen. Hydrogen has a lower ignition energy, wider flammable limits, is more explosive and has a lower detonation energy than natural gas. If no mitigation measures are implemented, there is a potential for a significant increase in explosion risks with greater potential for injuries, fatalities and equipment and building damage when operating with hydrogen. A key safety finding from the study is that there is a need to review and check that required safety standards and recommended good practice exist for hydrogen to support the design of safe equipment, infrastructure and sites, appropriate procedures and protective equipment.

Figure 23. Example of decarbonisation cluster, HyNet North West93.

89 90 91 92 93

36

https://green-alliance.org.uk/wp-content/uploads/2023/03/A-new-formula.pdf https://www.netzeroteesside.co.uk/ https://hynet.co.uk/ https://www.gov.uk/government/publications/future-of-hydrogen-in-industry-initial-industrial-site-surveys CIA, 2023.

Road to Net Zero

7.2. Resource efficiency Resource efficiency can be defined as any action that achieves a lower level of resource use for a given level of final consumption. This can occur at any stage of the supply chain including production, consumption and end-of-life.

Circular economy involves the use of recycled raw, or even waste materials, rather than new, primary resources, which significantly reduces the embodied carbon of products, reduces waste and often reduces energy usage.

Many industries are already encouraging a ‘circular economy’ in their processes which ensures materials are reused as far as possible. Changing the materials used in manufacturing processes from those with high-embodied carbon to low-embodied carbon would help significantly reduce emissions associated with the manufacturing industry. However, lower embodied emissions should be considered in conjunction with other factors when choosing products, such as whole life performance, recyclability and cost. Creating new green supply chains and products is a key opportunity created by the Net Zero journey, both in terms of providing opportunities for new businesses and also to help existing manufacturing businesses decarbonise.

Developing new sustainable products and processes, for example through green chemistry, will help the paints, coatings, printing inks and wallcoverings industry to reduce its environmental impact and to stay ahead of the market competition. Often, a key element of these green initiatives is the use of renewable raw materials for the purpose of producing bio-based solvents, resins, additives and pigments, etc. which also need to ensure performance benefits. The biobased market has grown quite significantly in recent years and it may be part of the industry’s solution to achieve Net Zero. However, further research would be required in our industry to understand what carbon reductions could be expected by switching to biobased raw materials, particularly scope 3 emissions, and what would be the easiest scope 3 contributors to be converted to biobased. Also, an understanding of the existing trade-offs associated with the biobased market would be essential to understand the wider perspective of this potential Net Zero solution.

The mass balance approach provides a set of rules for how to allocate the recycled content to different products to be able to claim and market the content as ‘recycled’. To a chemicals manufacturer, recycled feedstock is just another raw material that enters the production system. Inside, it will blend with, and be converted to, many other things, but the amount of recycled content leaving the production plant equals the amount entering it (within the physical and chemical constraints of conversion efficiency and losses)94. In the chemical industry, renewable or recycled feedstock is added at the beginning of the production process together with the fossil feedstock and allocated to the end product; this is illustrated in Figure 24. This calculation-based principle reduces GHG emissions and fossil feedstock inputs, while the quality and properties of a product remain the same 95. Independent bodies audit the allocation of volumes of sustainable raw material to the final product, however there is no standard method in the chemical industry for auditing and certification at present.

However, the danger with greenwashing has to be considered, as consumers may have difficulties making informed decisions if there is ambiguity in the description of a product’s green credentials. BCF developed the ‘Green Claims Guide for Decorative Paints’96 to help create a level playing field for the industry by debunking and fact checking some of the unsubstantiated green claims made by the makers of decorative paints about their products.

Figure 24. The mass balance approach97.

94 https://www.basf.com/global/documents/de/sustainability/we-source-responsibly/Mass-Balance-White-Paper-2020.pdf 95 https://www.basf.com/gb/en/who-we-are/sustainability/we-drive-sustainable-solutions/circular-economy/mass-balance-approach. html 96 https://cdn.ymaws.com/coatings.org.uk/resource/resmgr/images/green_claims/green_claims_fact_sheet_fina.pdf 97 https://www.circularise.com/blogs/mass-balance-approach-for-the-sustainable-chemicals-transition#:~:text=Mass%20balance%20is%20 a%20chain,goods%20based%20on%20auditable%20bookkeeping

Road to Net Zero

37

7.3. Carbon capture, utilisation and storage Carbon capture, utilisation and storage (CCUS) will be a key technology in completely decarbonising manufacturing processes where fossil fuels cannot be replaced. However, CCUS is still being developed and has yet to be rolled out commercially in the UK. Improvements in the efficiency of capturing the material and the development of a CO₂ transport network need to be achieved to allow the potential of this technology to be fully realised.

According to Green Alliance’s climate report for the chemical sector 98, there is a risk that CCUS will lead to perverse incentives, for instance by encouraging the continuation of other high carbon industries and processes that should be winding down or switching to zero carbon operations, or perpetuating the incineration of waste rather than reduction or recycling. However, it could be an intermediate, and potentially cost effective, solution for synthetic chemicals before direct air capture (DAC) 99 technology is scaled up. The report states that using DAC with green hydrogen for manufacturing processes is the best long term approach to emissions reduction, but there are concerns about how quickly the technology can be scaled up and initially it will be very expensive.

7.4. Supply chain collaboration One of the biggest challenges for the paints, coatings, printing inks and wallcoverings sector is to decarbonise their manufacturing processes and raw material supply, which will encompass scope 1, 2 and 3 emissions. In order to be able to succeed in this area organisations will need support from the Government, including policy changes and increased funding support to enable them to decarbonise effectively. Innovation will be required from all areas within the industry to develop new low-carbon alternatives to existing processes.

BCF members rely on a global supply chain, with many raw materials providing unique and critically important functions to coatings depending on their use, such as the biocides required in marine coatings or the flame retardants that are used in intumescent coatings. One of the most challenging areas to decarbonise in our industry is the raw material supply chain (scope 3 emissions), which is also the most difficult to quantify. Decarbonising the raw material supply is a major challenge to the manufacturing industry as it requires decarbonisation across the entire value chain. It will involve industries outside of manufacturing, such as the mining and oil and gas industries, to decarbonise their processes to ensure any raw materials or purchased products have a low carbon footprint.

However, there are key actions that manufacturers can take to influence a reduction in these emissions, for example by engaging with the raw material suppliers effectively.

Working with suppliers to reduce the emissions associated with their processes will reduce the embodied carbon of raw materials significantly. Offering green products will also be beneficial to suppliers as it will allow them to supply existing customers while also benefiting from income from new green supply chains. BCF members can work with suppliers to encourage innovative technology and infrastructure, and to implement emission reduction initiatives such as procuring green electricity; this process is also known as insetting. This will serve to reduce the scope 1 and 2 emissions of raw material suppliers, and reduce the emissions attributed to manufacturers’ scope 3 emissions as a result of purchasing manufacturing materials/goods with lower embodied carbon.

7.5. Carbon reduction checklists The following action checklists (Table 9 to Table 12) have been developed to support BCF member companies with reducing their carbon emissions and reaching Net Zero. They form the carbon reduction plan of the industry and they serve as a guidance to BCF members. The checklists are not definitive and it is acknowledged that many companies will have other action plans within their own Net Zero roadmaps that may be more specific to their individual business needs.

98 99

38

https://green-alliance.org.uk/wp-content/uploads/2023/03/A-new-formula.pdf https://www.wri.org/insights/direct-air-capture-resource-considerations-and-costs-carbon-removal

Road to Net Zero

CARBON REDUCTION ACTIONS: GENERAL

   

Develop a sustainability strategy/roadmap, including the company’s commitment to Net Zero by 2050.

             

Calculate your organisational carbon footprint (scope 1, 2 and 3 if possible). Focus on your scope 1 and 2 emissions first. Define which Scope 3 categories should be prioritised for data collection.

Ensure climate change is addressed at the highest levels of your organisation, including Board and CEO responsibility.

Assign clear accountabilities and responsibilities throughout the organisation for delivering carbon reductions.

Integrate carbon reduction strategies within your organisation’s core processes to ensure decisions are made in line with your targets and defined roadmap, e.g., procurement, research, new product development, capital/operational expenditure, etc.

Undertake Life Cycle Assessments (LCAs) to understand the carbon emissions of specific products.

Establish your base year to reach the Net Zero target (Net Zero emissions by 2050).

Set your Net Zero targets, ideally using the Science Based Target Initiative (SBTi).

Develop an action plan to reduce your carbon emissions (scope 1, 2 and 3).

Continuously improve the quality of your carbon footprint across scope 1, 2 and 3. Define specific KPIs to monitor performance against your targets and drive improvement.

Consider obtaining the ISO 14001 (Environmental Management) certification for your company.

Consider obtaining the PAS 2060 (Carbon Neutral) certification for your company.

Equip personnel with new green skills relevant to their role profile. Build expertise and empower colleagues to deliver your Net Zero strategy/roadmap.

Maximise energy, resource and material efficiency.

Avoid locking in high carbon production methods.

Progress digital transformation and smart systems.

Engage with Government, trade associations and stakeholders to create the right business and regulatory environment.

Engage and support suppliers and customers to reach Net Zero.

Table 9. General carbon reduction actions.

Road to Net Zero

39

CARBON REDUCTION ACTIONS: SCOPE 1 & 2 EMISSIONS

     

Shift to electric vehicles for company cars and light goods vehicles.

   

Minimise fugitive emissions, e.g., leaks of refrigerants from air conditioning units.

Shift towards lower-emitting fuel sources.

Explore options for using renewable electricity supplies for manufacturing processes, prioritising fossil fuel intensive areas.

Explore options to decarbonise process heat with renewable electricity, bioenergy or low-carbon hydrogen.

Review manufacturing processes to make them more energy efficient and update Standard Operating Procedures to reflect any changes.

Make capital investments in machinery where it has been identified that upgrading to newer, more efficient models would significantly reduce energy use, increase efficiency and lower the cost of production.

Reuse raw materials in production where possible e.g., water, solvents, etc.

Shift to sustainable refrigerants with low Global Warming Potential (GWP).

Reduce energy consumption and explore ways to generate energy on site using renewable sources.

Table 10. Carbon reduction actions for scope 1 and 2 emissions.

CARBON REDUCTION ACTIONS: SCOPE 3 EMISSIONS (UPSTREAM)

   

Define which scope 3 categories should be prioritised for data collection. Determine the methodology to collect the data, such as through questionnaires or software portals.

       

Work with suppliers to find innovative solutions to create more sustainable products and raw materials.

Target the most relevant suppliers based on spend and/or anticipated emissions impact.

Ask suppliers for their sustainability policies/roadmaps detailing their commitment to reduce their carbon emissions and reach Net Zero by 2050.

Work with suppliers to encourage reduction of their scope 1 and 2 emissions, which will aid in the reduction of scope 3 emissions of the manufacturing companies. Examples could include encouraging suppliers to increase their use of renewable sources for their electricity supplies.

Use scope 3 data to inform decision making across procurement, product design and logistics.

Increase engagement and relationships with suppliers by helping them implement sustainability initiatives.

Engage with employees to reduce emissions from business travel and employee commuting.

Consider sourcing raw materials locally and reducing transportation and distribution distances with suppliers.

Encourage a circular economy in the manufacturing processes, ensuring raw materials are reused as far as possible and avoiding the use of new, primary sources.

Change the materials used in manufacturing processes from those with high-embodied carbon to lowembodied carbon, creating new green supply chains and products.

Invest in carbon reduction projects with your own supply chain (insetting).

Table 11. Carbon reduction actions for scope 3 (upstream) emissions.

40

Road to Net Zero

CARBON REDUCTION ACTIONS: SCOPE 3 EMISSIONS (DOWNSTREAM)

   

Define which scope 3 categories should be prioritised for data collection. Determine the methodology to collect the data, such as through questionnaires or software portals.



Provide clear instructions to customers, either through labelling or supporting documentation as appropriate, detailing how the product should be disposed of in a safe and sustainable way. Review this information regularly to ensure the best environmental practices are being adopted.

            

Engage with employees to encourage waste reduction and recycling, and saving water practices.

Undertake Life Cycle Assessments (LCAs) to understand the carbon emissions of specific products.

Develop and clearly communicate LCAs of products to end users.

Support the development of coatings applicator training to minimise waste and reduce the frequency of maintenance. For consumers, ensure that usage instructions are clear, such as preparation of the surface to be coated.

Shift to electric vehicles for company cars and light goods vehicles.

Ask the transportation companies that distribute your products for a copy of their commitment to Net Zero and their sustainability policy/roadmap.

Use the right amount of packaging for the products.

Maximise the proportion of recycled content in packaging.

Ensure paper and cardboard packaging are sustainably sourced e.g., PEFC and FSC. Focus product innovation on sustainable solutions for downstream users e.g., increased durability, lower VOC content, etc.

Work with painters and contractors to encourage sustainable practices for managing paint waste, reducing wastewater when cleaning rollers/brushes and reducing the amount of paint that is wasted.

Ensure recyclability by using materials that are easy to recycle in the UK, and single material packaging where possible.

Ensure clear, consistent and accurate labelling that encourages recycling where possible.

Consider reducing transportation and distribution distances of sold products with customers.

Work with customers to improve the energy efficiency of the processing of sold products.

Work with retailers to develop options for refill/reuse-based systems (where LCAs show better environmental outcome).

Table 12. Carbon reduction actions for scope 3 (downstream) emissions

Road to Net Zero

41

CARBON OFFSETTING

Carbon offsetting is a term used to describe the reduction or removal of emissions generated elsewhere, to compensate for those emissions generated directly by a company. The term is increasingly used because organisations may not be able to eliminate all their product emissions, particularly those related to raw material suppliers; therefore, they can purchase carbon offsets to compensate for any unavoidable emissions. Carbon offsets are activities that reduce emissions elsewhere, such as renewable energy or waste to energy projects, and they are typically procured via global carbon offset markets. Examples of carbon offsetting include investing in wind farms, supporting forestry projects or donating to scientific projects to improve the development and overall availability of green chemicals.

Carbon offsetting is different from carbon leakage, which according to the European Commission 100 refers to the situation that occurs if, for reasons of costs related to climate policies, businesses in certain industry sectors or subsectors were to transfer production to other countries with less stringent emission constraints.

There are three types of carbon offsets101: • • •

Carbon avoidance: this is probably the most common type of offsets and involves avoiding the release of CO₂, often by preventing deforestation or financing renewable energy projects. These can be purchased through global offset markets.

Carbon removals: these are offsets that remove CO₂ from the atmosphere, for example tree planting or other nature-based solutions. Some emerging technologies such as direct air capture (DAC) 102 can remove CO₂ mechanically.

Carbon insets: this is referred to the offsets within an organisation’s supply chain, and they can be arranged through bilateral agreements with your suppliers, or through a consortium or networked approach.

Companies are increasingly using carbon offsets to make claims of carbon neutrality. However, being carbon neutral is not the same as achieving Net Zero, and does not even necessarily mean that a company has reduced its emissions. When setting SBTs 103 organisations must be Net Zero and not carbon neutral by their target year. This means that offsets cannot be used to demonstrate reductions against SBTs. A Net Zero strategy must minimise the use of carbon offsets by prioritising emissions reductions. This means that carbon offsets should be reserved for unavoidable emissions only (see Figure 25). Carbon offsetting should not be used indefinitely to reduce emissions and should be regularly reviewed as part of the organisation’s Net Zero strategy. However, carbon offsets can play a positive role in any Net Zero strategy if used responsibly; this means offsets should be: • • • •

Additional, permanent and legally enforceable.

Designed to avoid adverse social, environmental or economic impacts.

Registered with an official provider to avoid double-counting.

Certified by an independent scheme, such as the Gold Standard104.

100 101 102 103 104

https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/free-allocation/carbon-leakage_en https://www.fdf.org.uk/globalassets/resources/publications/guidance/compressed_fdf-net-zero-handbook-final-111021.pdf https://www.carbonbrief.org/direct-CO2-capture-machines-could-use-quarter-global-energy-in-2100/ https://sciencebasedtargets.org/how-it-works https://www.carbonfootprint.com/offsetprojects.html

42

Road to Net Zero

Figure 25. Progress to Net Zero105.

Companies that use this approach to reducing their emissions should produce and publish a clear carbon offsetting policy highlighting the following106: 1.

2.

3.

4.

5.

Provide a statement explaining that the company will prioritise the reduction of direct emissions within their own operations and the wider value chain over the use of offsetting.

Give a clear description of the offsets that the company are using.

Explain the reason for the use of the offset and why certain emissions are unavoidable. This may be because the technology might not be available yet to reduce emissions in certain parts of a company’s value chain; for example, non-zero HGVs are not expected to be widely available until after 2040.

Use high quality offsets, which should clearly demonstrate how emissions are reduced and should be verified and correctly accounted for in accordance with the GHG Protocol. The offsets should also be of low risk and should have assessed the potential for unintended negative consequences to people and the environment.

Explain the review process for offsets and include the frequency of the review. As best practice, there will be less need for the use of offsetting as the direct reduction of emissions within a company’s own operations and across the entire value chain becomes more achievable, for example when new technology becomes available.

Carbon offsetting can be a complicated area. BCF members may wish to refer to additional guidance on principles and standards for further information (refer to Appendix C).

105 106

https://www.fdf.org.uk/globalassets/resources/publications/guidance/compressed_fdf-net-zero-handbook-final-111021.pdf https://www.smithschool.ox.ac.uk/sites/default/files/2022-01/Oxford-Offsetting-Principles-2020.pdf

Road to Net Zero

43

RECOMMENDATIONS FOR GOVERNMENT 44

Road to Net Zero

The inevitable transition to a Net Zero economy may be a significant challenge for the paints, coatings, printing inks and wallcoverings industry.

Some actions needed to help the industry meet its targets will require the creation of new infrastructure and commercialisation of emerging technologies. In these areas, Government leadership and support will be required. BCF suggests the following recommendations for Government to provide a clearer direction, to build infrastructure and to increase funding for innovation.

1.

Create a secure environment for business to invest in more sustainable and Net Zero-related infrastructure. Clarity and certainty of policy is required, over the medium to long-term, if businesses are to be able to plan and invest in required major upgrades of equipment.

2.

This should include increased support to industry via the Industrial Energy Transformation Fund 107, or newly created funds, to spur businesses on to developing and installing innovative new technology and processes leading to greater and faster decarbonisation.

3.

Alternative measures might look at tax relief, or a deduction for capital expenditure, specifically on ‘green’ investments aimed at decarbonising industrial processes.

4.

Measures to help SMEs recognise and meet their Net Zero goals would also be helpful. In particular, smaller companies need help in identifying their scope 3 emissions, as well as putting together an action plan to prioritise and tackle them. A scheme along the lines of Help to Grow 108, which previously offered small-scale support to help businesses digitise, could instead provide vouchers or funding for SMEs to buy in Net Zero planning consultancy support or software.

5.

At the same time, Government needs to continue with policies to scale up, at pace, emerging technologies such as low carbon hydrogen, carbon capture utilisation and storage, and modular nuclear, which are essential for industry to be able to meet future Net Zero commitments. As Make UK notes, ‘the UK needs to leverage its net zero ambitions to achieve greater energy independence, which in turn should keep energy bills stable and affordable. Achieving energy security requires a shift towards abundant, low carbon energy. Failure to implement low-carbon policies and reduce carbon emissions would put the UK’s energy security at risk.’

6.

Improve access to green skills across businesses, continuing to fund apprenticeships and incentivising those that focus on climate and sustainability. This will support the training required to develop the knowledge, abilities, values and attitudes in order to implement more sustainable practices within business and throughout society.

7.

Finally, chemicals regulations in the UK need to be clarified as soon as possible, ensuring that whatever process of registration and enforcement is put in place does not lead to new, sustainable substances being withheld from the UK market due to cost or bureaucracy. The current interim REACH NRES (New Registration of an Existing Substance) process is beginning to create just this negative situation and it needs resolving as a priority.

107 108

https://www.gov.uk/government/collections/industrial-energy-transformation-fund https://helptogrow.campaign.gov.uk/

NEXT STEPS

This is only the first issue of the BCF Net Zero Roadmap: the first sectorial roadmap for the coatings industry. It is clear that the Net Zero journey is potentially one of the biggest business opportunities in history, but also possibly one of the biggest business threats. There will be ups and downs on the way, however long term, the direction of travel must lead towards achieving Net Zero.

These are the next steps in our Net Zero journey: 1.

BCF to distribute this roadmap – and accompanying ‘Quick Start Guide’ – across its membership.

2.

Members to feedback on the roadmap content with suggestions on useability to influence design and content of the next full report, as well as the ‘Quick Start Guide’.

3.

BCF to continue to organise webinars and seminars for members to better understand recording and reporting of carbon emissions, especially scope 3.

4.

BCF to continue working with smaller members (SMEs) to calculate scope 3 emissions in the near future, so that they can be incorporated into our industry’s baseline (and targets) as data becomes more available and accurate.

5.

Continue to gather and refine carbon emissions data from members with the aim of publishing an updated roadmap in 2024/5, and periodically thereafter giving members updates on progress.

6.

Critical waypoints in 2030, 2035 and 2040 will allow reviews and the chance to offer targeted assistance at those members who may not be making as much progress as others.

7.

Net Zero – and broader sustainability issues – to be a key part of future BCF Council and Committee meetings.

8.

BCF to work with other trade associations and businesses making up the coatings sector supply chain to push for practical decarbonisation measures and timeframes, both upstream and downstream.

9.

BCF to lobby Government for additional measures to assist companies make the Net Zero journey.

ACKNOWLEDGEMENTS

Thanks to the BCF members for their contribution to this work, including the submission of their carbon emissions data and participation in the consultation stage. Special thanks to the BCF Sustainability Committee for their helpful comments.

Thanks to Whittle Industry Data for their insights and support on Coatings Care data and statistics.

We are grateful to CEPE and the Chemical Industries Association (CIA) for supporting this work.

Road to Net Zero

45

APPENDICES 12.1. Appendix A: BCF members’ Net Zero roadmaps Organisation

Carbon reduction targets

Other commitments / key points

Beckers

•

•

•

55% absolute reduction of scope 1 and scope 2 carbon emissions by 2030 50% intensity reduction of 3rd party logistics carbon emissions by 2030

• • • • • • • • • •

Fujifilm

Net Zero carbon emissions by 2030.

• • • •

Siegwerk

Carbon neutral for scope 1 and 2 emissions globally.

• •

• •

Sun Chemical

Net Zero carbon emissions by 2050.

• • • •

• •

46

Road to Net Zero

Link to roadmap

https://sustainability-re50% of revenue from BSI Achiever class by 2030 port.beckers-group.com/ Zero products from BSI Concern class by 2030 100% of all new products from BSI Achiever class by 2030 70% Renewable energy use by 2030 Increase operational energy efficiency by 23% by 2030 30% reduction of VOC emissions by 2030 Zero landfill waste by 2030 33% reduction in waste intensity by 2030 50% reduction of water withdrawal by 2030 100% of sourcing aligned with our Responsible Sourcing Strategy by 2030 Zero accidents by 2030 Address climate change.

Promote recycling of resources.

Address energy issues towards a decarbonised society.

Ensure product and chemical safety.

https://holdings.fujifilm. com/en/sustainability/ plan/svp2030/environment

Ensure 100% of their suppliers are https://www.siegwerk.com/ committed to the principles of the UN en/sustainability/sustainaGlobal Compact. bility.html Innovate and manage their portfolio so that 75% of all products and services sold enable reducing, reusing or recycling of packaging, renewable or recyclable packaging.

Establish product environmental footprint data for 100% of their products.

Be the trendsetter for the safest inks and coatings by proactively improving our products and setting new industry standards in consumer and environmental safety.

Set improvement targets for energy and water consumption, GHG emissions, and solid waste emissions.

Measure and report these parameters, regularly, by site and by product.

Establish actions to improve, then recheck and re-measure.

A structured and robust approach to product development that includes risk management and eco-efficiency improvements as key criteria.

An infrastructure for product stewardship that leads the industry.

Proactive approach in working with suppliers, customers, and industry trade groups to promote best practices.

https://www.sunchemical. com/our-approach/

Organisation

Carbon reduction targets

Other commitments / key points

Link to roadmap

Sherwin Williams

Reduce absolute scope 1 and scope 2 GHG gas emissions by 30%.

•

Increase electricity from renewable resources to 50% of total electricity usage.

Increase operational energy efficiency by 20%.

Reduce waste disposal intensity by 25%.

Established the Sustainability by Design Stage-Gate Process as a standard part of the product innovation and development processes.

Enhanced the supplier engagement component of our Product Blueprint strategy.

Refined our definition of “sustainably advantaged products” to be clearer and more verifiable – with the SherwinWilliams definition as “products that achieve a level of third-party green chemistry, ecolabel or similar recognition”.

Enhanced our culture of internal engagement to further embed sustainability into the business and into our products.

https://corporate.sherwin-williams.com/sustainability.html

50% of revenue from sustainable solutions by 2030.

100% circular use of materials in our own operations by 2030.

100,000+ members of local communities empowered with new skills by 2030.

Energy efficiency – new low-curing powder coatings in the agriculture, construction and equipment market segment help our customers reduce energy consumption.

Reduced solvent emissions – we continued switching wood care and trim paints to water-based technology, which is making up more than half of our volume in Decorative Paints EMEA in 2022.

Circular solutions – we scaled up the use of bio-based renewable raw materials in our wood finishes for the furniture market.

https://report.akzonobel. com/2022/ar/sustainability/our-approach-to-sustainability.html

In addition to its science-based emission targets, PPG’s other 2030 ESG targets against a 2019 baseline are: 50% of sales from sustainably advantaged products.

15% reduction in water intensity at priority sites.

25% reduction in waste intensity.

Reuse, recycle or recover 100% of process waste. $5 million additional COLORFUL COMMUNITIES® funding, with each project incorporating an element of sustainability, making the total investment $15 million since 2015.

100% of key suppliers assessed against sustainability and social responsibility criteria.

100% of employees go home safely each day.

5% annual reduction in spill and release rate.

https://www.ppg.com/sustainability/en-US

• • •

• •

•

AkzoNobel

Half carbon emissions by 2030.

• • • •

•

•

PPG

Reduce absolute emissions from its own operations (scope 1 and 2) by 50% by 2030 from a 2019 base year.

• • • • • •

• • •

Road to Net Zero

47

Organisation

Carbon reduction targets

Other commitments / key points

Link to roadmap

Graham & Brown

Remain carbon neutral.

•

The UK arm of our business moved to renewable electricity at the end of 2021.

Renewable electricity made a 29% reduction in our carbon emissions in scope 2.

Our digital factory uses 100% renewable energy.

https://eu-assets.contentstack.com/v3/assets/ blte635d907602e0a9c/ blt4703c920fbee673a/641b33f093c37b080a501866/ sustainability_report_ feb_2023.pdf

50% absolute reduction of scope 1 and 2 GHG emissions by 2030, sourcing at least 50% of electricity from renewable sources.

10% reduction of process waste, VOC emissions, and water use from operations (normalised to production).

80% of new technology and innovation developments will have a sustainability benefit.

Increase by at least 20% the percentage of net sales from products, services, and tools that offer sustainability benefits to our customers, markets, and communities.

https://www.axalta. com/corporate/en_US/ sustainability.html

Protection of the environment by reducing the environmental impact of our business activity.

Prevention of pollution through continually improving our environmental performance.

Fulfilling our compliance obligations through working closely with our local authority.

Continual improvement of the environmental management system to enhance environmental performance.

Promoting environmental sustainability throughout the supply chain.

https://dacrylate.co.uk/ sustainability/

Net Zero GHG emissions across HP value chain by 2040, beginning with supplies business achieving carbon neutrality by 2030.

Reduce HP value chain GHG emissions 50% by 2030.

Reach carbon neutrality and zero waste in HP operations by 2025.

Reach 75% circularity for products and packaging by 2030.

Maintain zero deforestation for HP paper and paper-based packaging.

Counteract deforestation for non-HP paper used in our products and print services by 2030.

https://press.hp.com/us/ en/press-releases/2021/hpinc-announces-ambitiousclimate-action-goals.html

Bring sustainable innovations to the market.

Ensure our products are designed for recycling.

Help customers become more energy efficient and reduce waste.

Deliver products and services that help customers reduce their own GHG emissions.

Lower the carbon footprint of our core products.

Using more sustainable raw materials.

Zero waste to landfill by 2030.

Reduce water use by 5% by 2030.

https://www.flintgrp.com/ media/646066/flint-groupsustainability-brochure.pdf

• •

Axalta

Carbon neutrality in our operations by 2040.

• • • •

Dacrylate

•

•

Reduce carbon emissions by at least 2.5% each year.

Aim to reduce carbon emissions by 5% each year.

• • • • •

HP

Carbon neutrality by 2030.

•

• • • • •

Flint

•

•

48

Net Zero across scope 1 and 2 emissions by 2050.

Reduce GHG emissions versus 2019 46% reduction in scope 1, 2 and 3 emissions by 2030.

Road to Net Zero

• • • • • • • •

Organisation

Carbon reduction targets

Other commitments / key points

Hempel

•

Hempel A/S commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2026 from a 2019 base year.

Hempel A/S also commits to reduce absolute scope 3 GHG emissions 50% by 2030 from a 2019 base year.

Hempel’s sciencebased targets are approved by the Science Based Targets initiative (SBTi).

•

50% reduced carbon footprint for scope 1 and 2 by 2030 (baseline 2017).

• •

No specific Net Zero targets set.

•

•

•

Jotun

Trimite

• • • •

• • •

• •

•

Link to roadmap

https://www.hempel.

Reducing CO₂ emissions in our own operations and in our value chain and com/en-gb/inspiration/ switching to renewables. sustainability Pursuing resource efficiency and circularity and reducing harmful substances.

Committed to health and safety and the promotion of diversity and inclusion.

Promoting ethical behaviour and good environmental practices in our supply chain.

Collaborating widely and pursuing effective partnerships.

70% Renewable electricity.

40% Female managers at Jotun headquarters.

30% Female managers globally.

Zero fires.

Zero injuries.

https://www.jotun. com/de-en/aboutjotun/sustainability/ sustainability-at-jotun

Recognise that environmental and https://www.trimite.com/ sustainable management is a business sustainability/ priority that should be integrated into all our processes, from the procurement of raw materials through to the manufacture and shipment of our finished goods.

Promote the use of clean energy and reduce our carbon footprint across all our business operations.

Develop an environmentally aware culture, providing the time and resources required to educate employees, consultants, contractors and stakeholders on our sustainability commitments.

Contribute to the achievement of the ‘UN Sustainable and Development Goals’.

Road to Net Zero

49

12.2. Appendix B: Other sectors’ Net Zero roadmaps Organisation

Carbon reduction targets

Other commitments / key points

Link to roadmap

Automotive (SMMT)

Net Zero carbon emissions by 2050.

•

https://www.smmt. co.uk/wp-content/ uploads/sites/2/SMMTSustainability-Report-2021. pdf

•

The report lists the signatory members of SMMT that have committed to Net Zero by 2050 or before, providing the commitments per company in more detail.

The report details the commitment to decarbonise the manufacturing process by using alternative greener energy to gas, which is currently used for the paint shop ovens. A point is made on the potential challenges to switching to hydrogen, which will require investment in new infrastructure but could also create process challenges, such as reducing paint quality due to the increased moisture that is created in the environment from using hydrogen.

Aerospace (ADS)

Net Zero carbon emissions by 2050.

•

Lists the following initiatives needed to https://www. achieve Net Zero by 2050: sustainableaviation.co.uk/ • 4.3 Million tonnes of carbon dioxide (MtCO₂) saving due to carbon pricing impact on demand.

• 3.1 MtCO₂ saving from better air traffic management and operating procedures.

• 23.5MtCO₂ saving from introduction of known and new, more efficient aircraft.

• 14.4MtCO₂ saving from sustainable aviation fuels.

• 25.8 MtCO₂ saving from effective market-based measures.

• The report makes reference to the role that new paint technology can have in achieving Net Zero, specifically paint that decreases drag due to being ‘ice-phobic’.

Builders Merchants Federation (BMF)

•

Halve GHG emissions by 2030.

Net Zero carbon emissions by 2040.

•

Signatory to the SME Climate Commitment. https://www.bmf.org.uk/ BMF/News/BMF-commits-to-zero-carbon-operations.

British Plastics Eliminate Federation avoidable plastic (BPF) waste by 2042.

•

The roadmap focusses on the recycling rates of plastic, which is an important aspect for other industries to reach Net Zero, rather than Net Zero for the plastics industry as a whole.

The roadmap forecasts that, with the interventions detailed in the roadmap implemented, by 2030 there will be: • 4 times more plastic recycling tonnage.

• 50 times less tonnage to landfill.

• 6 times more energy recovery tonnage.

•

•

50

Road to Net Zero

https://bpf.co.uk/ roadmap#Report%20 isssuu%20iframe

Organisation

Carbon reduction targets

Other commitments / key points

British Retail Consortium (BRC)

To achieve Net Zero by 2040 for all retail products sold in the UK (Scope 3 emissions) by working with Government and the entire value chain.

•

•

Link to roadmap

The roadmap details 5 pathways needed https://brc.org.uk/climateroadmap/ for the retail industry to achieve Net Zero: • Pathway 1: Placing GHG data at the core of business decisions.

• Pathway 2: Operating efficient sites, powered by renewables.

• Pathway 3: Moving to low carbon logistics.

• Pathway 4: Sourcing sustainably.

• Pathway 5: Helping our employees and customers to live a low carbon lifestyle.

Pathway 4 details the retail industry’s commitment to drive demand for emerging low or zero carbon materials through product innovation.

Chemical Industries Association

To achieve direct Net Zero carbon emissions by 2050 and to support the reduction of indirect Net Zero carbon emissions by 2050.

•

The report details how the chemicals industry is a strong contributor to tackling climate change, with innovative solutions enabling other areas of the value chain to reduce their carbon footprints; as well as decarbonising direct chemical manufacturing through the implementation of carbon reduction processes.

https://www.cia.org.uk/ Media-Centre/Details/ The-UK-Chemical-Industry-An-Essential-Partner-in-Delivering-Net-Zero-2050

Confederation of Paper Industries (CPI)

Net Zero carbon • emissions by 2050, focussing on scope 1 and 2.

The roadmap details several joint actions between Government and industry that need to be focussed on in order for the sector to achieve Net Zero, including the following: • Action 8: Value Chain Collaboration in the UK pulp and paper sector. To collaborate with the entire value chain to identify and deliver improvements with regards to feedstock (both recycled and virgin), production and products.

https://assets.publishing. service.gov.uk/government/ uploads/system/uploads/ attachment_data/ file/652141/pulp-paperdecarbonisation-actionplan.pdf

Food and Drink Federation (FDF)

To achieve Net Zero by 2040 by reducing the amount of embodied carbon from food and drink products sold in the UK (Scope 1, 2 and 3 emissions) by working with Government and the entire value chain.

•

To achieve a 60% absolute reduction in CO₂ emissions by 2025 against the 1990 baseline.

The roadmap encourages engagement with packaging suppliers to increase the recycled content of packaging and to identify the lowest carbon packaging formats that fulfil all functional requirements of the product.

The roadmap encourages engagement with packaging suppliers to increase the recycled content of packaging and to identify the lowest carbon packaging formats that fulfil all functional requirements of the product.

https://www.fdf.org.uk/ globalassets/resources/ publications/guidance/ compressed_fdf-net-zerohandbook-final-111021.pdf

To achieve Net Zero by 2050 across the UK manufacturing sector by working with government and the entire value chain.

•

To achieve a 67% reduction in scope 1 and 2 emissions by 2035 (compared to a 2018 baseline).

To achieve at least a 90% reduction in scope 1 and 2 emissions by 2050 (compared to a 2018 baseline).

https://www.makeuk. org/insights/reports/ manufacturing-sector-netzero-roadmap

Make UK

•

•

•

Road to Net Zero

51

Organisation

Carbon reduction targets

Other commitments / key points

Link to roadmap

Military of Defence (MoD)

Net Zero carbon emissions by 2050.

•

By 2025 commercial contracts will be awarded with sustainability as an integral part of the decision-making process.

https://assets.publishing. service.gov.uk/government/ uploads/system/uploads/ attachment_data/ file/973707/20210326_ Climate_Change_Sust_ Strategy_v1.pdf

UK Steel (subsidiary of Make UK)

Decarbonise ore-based steel production by 2035.

•

The roadmap details the need to improve the quality of, and increase the utilisation of, scrap steel within the UK market.

Further investigate the potential to use advanced coatings to support the development of steel with cutting edge properties designed to improve the maintenance, re-use and recycling of steel.

https://www.makeuk.org/ about/uk-steel/net-zerosteel---a-vision-forthe-future-of-uk-steelproduction

Water UK

Net Zero carbon emissions by 2030, focussing on scope 1 and 2 emissions.

•

The roadmap details the need for other actors in the supply chain to develop water efficient products and to increase the recycling rates of grey water to reduce wholesome water demand.

https://www.water.org.uk/ routemap2030/

Cement and Concrete

To achieve net negative, removing more carbon dioxide from the environment than is emitted to the atmosphere, each year, by 2050.

•

The roadmap lists the following technology levers and their potential decarbonisation reductions for the sector: • Indirect emissions from decarbonised electricity: -4% CO₂ • Decarbonising transport: -7% CO₂ • Innovation of low carbon cements and concretes: -12% CO₂ • Fuel switching: -16% CO₂ • Carbon capture, usage and storage: -61% CO₂ • Carbonation, the process of concrete absorbing CO₂ from the atmosphere: -12% CO₂ • Utilise the thermal mass properties of concrete and cement to efficiently heat and cool buildings: -44% CO₂

https://thisisukconcrete. co.uk/TIC/media/root/ Perspectives/MPA-UKCRoadmap-to-Beyond-NetZero_October-2020.pdf

52

Road to Net Zero

•

12.3. Appendix C: Net Zero guidance Net Zero guidance

Link to guidance

Description

Carbon Offset Guide

https://www.offsetguide. org/

The Offset Guide is for companies and organizations seeking to understand carbon offsets and how to use carbon offsets in voluntary greenhouse gas (GHG) reduction strategies. It is also an educational resource for technical experts in academia and Government.

Carbon Trust

https://www.carbontrust. com/

Carbon Trust provides advice for businesses, governments and the public sector on strategy, risks and opportunities, target setting, carbon reduction plans and transitioning to a low carbon world.

CEPE Eco footprint tool

https://ecofootprint. ecomatters.nl/admin/login

CEPE have developed a standard industry Life Cycle Inventory (LCI) database; this is called the Ecofootprint Tool. It is an online tool that enables companies to calculate Life Cycle Assessments (LCAs) for their products.

Circular Ecology Embodied Carbon – The ICE Database

https://circularecology. com/embodied-carbonfootprint-database.html#.

XKX_oJhKhPY

The ICE (Inventory of Carbon & Energy) database is a useful source of embodied carbon data and is available for free from this page.

Climate Change Committee

https://www.theccc.org.uk/

The UK’s independent adviser on tackling climate change.

Gov.UK Policy paper ‘Net Zero Strategy: Build Back Greener’

https://www.gov.uk/ government/publications/ net-zero-strategy

This strategy sets out policies and proposals for decarbonising all sectors of the UK economy to meet our Net Zero target by 2050.

Gov.UK Policy paper ‘Powering up Britain’

https://www.gov.uk/ government/publications/ powering-up-britain

Plans setting out how the Government will enhance our country’s energy security, seize the economic opportunities of the transition, and deliver on our Net Zero commitments.

Icon

https://www.theicon.org.uk/

ICON exists to empower energy and environmental practitioners to achieve their full potential, both personally and in their workplace.

International Trade Centre (ITC) – SME Trade Academy

https://learning.intracen. org/course/info.php?id=326

E-learning course: Becoming a Climate Resilient SME.

Science Based https:// Targets sciencebasedtargets.org/

Science Based Targets (SBTs) provide companies with a clearly defined path to reduce emissions in line with the Paris Agreement goals.

SME Climate Hub

https://smeclimatehub.org/

The SME Climate Hub is a non-profit global initiative that empowers small to medium sized companies to take climate action and build resilient businesses for the future.

Supply Chain Sustainability School

https://www. supplychainschool.co.uk/ topics/sustainability/

The School provides free, practical support in the form of e-learning modules and training workshops, tailored assessments and action plans, benchmarking tools, networking opportunities, and access to thousands of online resources.

Road to Net Zero

53

Net Zero guidance

Link to guidance

Description

The Carbon Literacy Project

https://carbonliteracy.com/

An awareness of the carbon dioxide costs and impacts of everyday activities, and the ability and motivation to reduce emissions, on an individual, community and organisational basis.

UK Business Climate Hub

https://businessclimatehub. uk/

The UK Business Climate Hub is a collaboration between the UK Government, businesses and business groups across the UK. The Hub is the UK partner of the SME Climate Hub and provides Net Zero advice for SMEs in the UK.

United Nations Climate Change resources

https://unfccc.int/resources

Includes access to climate change reports, webinars, podcasts, etc.

United Nations Race to Net Zero campaign

https://unfccc.int/climateaction/race-to-zerocampaign

Race To Zero is a global campaign to rally leadership and support from businesses, cities, regions, investors for a healthy, resilient, zero carbon recovery that prevents future threats, creates decent jobs, and unlocks inclusive, sustainable growth.

Walmart Sustainability Hub

https://www. walmartsustainabilityhub. com/ reporting#:~:text=Your%20 Sustainability%20Portal%20 account%20isn,and%20 other%20Private%20 Brand%20surveys

To participate in Project Gigaton™, the first step is to create a Sustainability Portal account. Once you’ve logged into your account, you can sign up for Project Gigaton, share your SMART sustainability goals, and report on your progress.

World https://centres.weforum.

Economic org/centre-nature-andForum Centre climate/home for Nature and Climate

54

Road to Net Zero

A multistakeholder platform that seeks to safeguard our global commons, and drive systems transformation for a sustainable future.

12.4. Appendix D: Government grants and funding BCF believes the Government will need to offer more financial support to industry in order to enable changes to infrastructure and a swifter move to Net Zero.

Funding

Link to funding

Description

Gov.UK Guidance ‘Find funding to help your business become greener’

https://www.gov.uk/ guidance/find-fundingto-help-your-businessbecome-greener

Almost £5 billion of funding is available to help UK businesses become greener as part of the Government’s commitment to reach net zero emissions by 2050.

Gov.UK Guidance ‘Workplace Charging Scheme: guidance for applicants’

https://www.gov.uk/ guidance/workplacecharging-schemeguidance-for-applicants

What the Workplace Charging Scheme is, eligibility criteria for applicant organisations and how to apply.

Gov.Scot Guidance ‘Scotland’s Heat Network Fund: application guidance’

https://www.gov.scot/ Information on the Heat Network Fund, including eligibility and publications/heat-network- how to apply. fund-application-guidance/

Gov.UK Notice ‘Green Heat Network Fund (GHNF): guidance on how to apply’

https://www.gov.uk/ government/publications/ green-heat-network-fundghnf

Capital grant support is available for the development of new and existing low and zero-carbon heat networks: this page contains guidance and details of how to apply via Triple Point.

Gov.UK Innovation Funding Service

https://apply-forinnovation-funding.service. gov.uk/competition/search

Innovation competitions.

Gov.UK Collection ‘Industrial Energy Transformation Fund’

https://www.gov.uk/ government/collections/ industrial-energytransformation-fund

The Industrial Energy Transformation Fund (IETF) supports the development and deployment of technologies that enable businesses with high energy use to transition to a low carbon future.

Gov.Scot Collection ‘Scottish Industrial Energy Transformation Fund (SIETF)’

https://www.gov.scot/ collections/scottishindustrial-energytransformation-fund-sietf/

Collection of guidance and application forms for funding to stimulate commercial interest and investment in decarbonising Scotland’s energy intensive industries to contribute to positive progress towards Net Zero targets.

Gov.UK Collection ‘Net Zero Innovation Portfolio’

https://www.gov.uk/ government/collections/ net-zero-innovationportfolio

The Net Zero Innovation Portfolio provides funding for low carbon technologies and systems, to help enable the UK to end its contribution to climate change.

Road to Net Zero

55

Funding

Link to funding

Description

Gov.UK Form ‘Industrial Energy Efficiency Accelerator (IEEA): successful projects’

https://www.gov.uk/ government/publications/ industrial-energyefficiency-accelerator-ieea

The IEEA programme aims to increase the number of technologies available to industry to reduce energy consumption, maximise resource efficiency, and cut carbon emissions.

Gov.UK Policy paper ‘UK hydrogen strategy’

https://www.gov.uk/ government/publications/ uk-hydrogen-strategy

This strategy sets out the approach to developing a thriving low carbon hydrogen sector in the UK to meet our increased ambition for 10GW of low carbon hydrogen production capacity by 2030.

The page includes hydrogen strategy updates to the market.

56

Road to Net Zero

12.5. Appendix E: The world’s Net Zero commitments The Net Zero Tracker 109 keeps track of the Net Zero commitments made by countries around the world. As of 5 October 2023, their data explorer showed that, of a total of 151 countries, 6 countries had self-declared they have achieved Net Zero. It says that a further 27 countries have a pledge in law, 51 in a policy document, 8 another kind of declaration or pledge, and 59 countries are discussing or proposing a pledge.

An extract of the data is summarised in the table below.

Country name Geographic region

End target

End target status

Interim target

Austria

Europe

Climate neutral by 2040

In law

55% reduction by 2030

Denmark

Europe

Net Zero by 2050

In law

70% reduction by 2030

Finland

Europe

Climate neutral by 2035

In law

60% reduction by 2030

France

Europe

Net Zero by 2050

In law

55% reduction by 2030

Germany

Europe

Climate neutral by 2045

In law

65% reduction by 2030

Greece

Europe

Climate neutral by 2050

In law

55% reduction by 2030

Hungary

Europe

Net Zero by 2050

In law

40% reduction by 2030

Iceland

Europe

Carbon neutral(ity) by 2040

In law

55% reduction by 2030

Ireland

Europe

Net Zero by 2050

In law

55% reduction by 2030

Luxembourg

Europe

Net Zero by 2050

In law

55% reduction by 2030

Portugal

Europe

Carbon neutral(ity) by 2050

In law

40% reduction by 2030

Spain

Europe

Climate neutral by 2050

In law

23% reduction by 2030

Sweden

Europe

Net Zero by 2045

In law

63% reduction by 2030

Switzerland

Europe

Net Zero by 2050

In law

50% reduction by 2030

Belgium

Europe

Carbon neutral(ity) by 2050

In policy document

55% reduction by 2030

Italy

Europe

Climate neutral by 2050

In policy document

55% reduction by 2030

Czech Republic

Europe

Climate neutral by 2050

Proposed / in discussion

30% reduction by 2030

Bulgaria

Europe

Net Zero by 2050

Proposed / in discussion

40% reduction by 2030

Canada

North America

Net Zero by 2050

In law

45% reduction by 2030

Mexico

North America

Net Zero by 2050

Proposed / in discussion

35% reduction by 2020

United States of America

North America

Net Zero by 2050

In law

52% reduction by 2030

China

East Asia

Carbon neutral(ity) by 2060

In policy document

65% reduction by 2030

Japan

East Asia

Net Zero by 2050

In law

46% reduction by 2030

South Korea

East Asia

Net Zero by 2050

In law

40% reduction by 2030

109

https://zerotracker.net/

Road to Net Zero

57

This publication has been produced with due consideration to the environment, and has been printed by a carbon balanced printer. Paper used for this publication has been recycled - please recycle again after reading.

British Coatings Federation Westwood Way, Westwood Business Park Coventry, CV4 8HS www.coatings.org.uk info@bcf.co.uk