Carbon Footprint Report 2014

Carbon Footprint Report 2014 Explanatory Document to Carbon Report

Classification: Date: Author: Version: Status:

Public 2/18/2015

Colin Wingham V1.2.4 To publish

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Document Information Version Control Version

Date of Change

Originator of Change

Comments

1.0 1.1 1.2 1.2.1 1.2.2

27/01/15 30/01/15 03/02/15 05/02/15 06/02/15

CW CW CW CW CW

1.2.3

09/02/15

CW

1.2.4

18/02/15

CW

Creation of doc Updated Version for submission Updated following Deloitte review Updated St Helens Gas details Explanation of Gas calculation in 2.1 Further explanation required in multiple sections Grammatical updated for final submission

Distribution List Version

Date

Amlin

1.1 1.2 1.2.1 1.2.2 1.2.3 1.2.4

30/01/15 03/02/15 05/02/15 06/02/15 09/02/15 18/02/15

GL

Other (Name & Company)

Deloitte Deloitte Deloitte Deloitte Deloitte

Document Approval Approved by

Position

Sign off date

PP

Chief Operations Officer

06/02/15

Comments

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Contents DOCUMENT INFORMATION ..................................................................................................... 2 Version Control ......................................................................................................................... 2 Distribution List ......................................................................................................................... 2 Document Approval .................................................................................................................. 2 CONTENTS ................................................................................................................................. 3 1

OVERVIEW ......................................................................................................................... 4

2

METHODOLOGY ................................................................................................................ 5 2.1

Scope 1 – Direct Emissions ............................................................................................ 5

2.1.1 Gas ................................................................................................................ 5 2.1.2 Direct Fleet Emissions ................................................................................... 5 2.2

Scope 2 – Indirect Emissions sources from the consumption of purchased electricity..5

2.2.1 Electricity ....................................................................................................... 5 2.3

Scope 3 – Other indirect emissions ................................................................................ 5

2.3.1 Water ............................................................................................................. 5 2.3.2 Waste ............................................................................................................ 6 2.3.3 Travel............................................................................................................. 6 2.4 3

Missing Offices ............................................................................................................... 8

LOCATIONS ........................................................................................................................ 8 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9

Carbon Conversion Factors ............................................................................................ 8 Commuter Survey ........................................................................................................... 8 London ............................................................................................................................ 8 Bermuda ......................................................................................................................... 9 AUK (Chelmsford, Nottingham, Basingstoke, Norwich) ...............................................10 Amlin Europe ................................................................................................................10 France ...........................................................................................................................11 Zurich........................................................................................................................................ 11 Singapore ................................................................................................................................ 11

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1 Overview This report sets out to explain the rationale behind the methods we used, and the exceptions, difficulties or discrepancies that we encountered. All numbers for the Carbon Footprint Report are included in the templates submitted by business units. The evidence for these numbers is found in the Supporting Data tab, folder or correspondence. Amlin’s 2014 Carbon Footprint calculation is based upon our reporting year of 1st January to 31st December and includes data from Group companies over which financial control was exercised for the full twelve months. Due to a change in legislation under the Companies Act 2006, all UK quoted companies are required to report their carbon emissions into the Director’s report as part of their annual report and accounts. We have therefore needed to accelerate the timetable for gathering, consolidating and auditing our reported data to ensure it receives assurance prior to going to print. This has resulted in projections being made for the final months of the year where data is not available; these projections are detailed in the supporting data provided. Amlin is an insurance company with offices in the United Kingdom (London, Chelmsford, Basingstoke, Norfolk, Norwich, Nottingham and West Malling) France, Belgium, the Netherlands, Bermuda, Zurich, USA (New Jersey), Germany (Hamburg) and Singapore. At 31st December 2014 we had a total of 1,754 permanent employees in these locations. RaetsMarine staff totals 121 in four separate offices (London, Paris, Singapore and Rotterdam). For data gathering and emissions calculations we have also included contract staff, raising the total to 1933 employees overall. The rationale being that these staff are engaged in long-term contracts and therefore contribute to our corporate footprint. We collected data on energy and water consumption, waste output, business travel and commuting because we believe it to be pertinent to our corporate footprint. We applied the GHG Protocol toolkit and scoping guidance for office-based and service sector organisations. As a UK-listed corporate we used the conversion factors from the “2014 Greenhouse Gas Conversion Factor Repository” using the Carbon Smart conversion site to obtain CO2e measures for our footprint. DEFRA also provide conversion factors for electricity for overseas countries and we have applied these where relevant. Amlin was a tenant in each of our offices worldwide, with the exception of Amlin House Chelmsford, during the 2014 reporting year. In these cases we were therefore reliant upon data supplied by the landlord or head lessor in each case and we apportioned the data dependant on the partial occupancy of each building. Where possible we have obtained supporting documentation for this data. Where data were unavailable we have made assumptions either based on previous year’s data or have used an average volume per person. The data were provided by local management and collated within the Facilities function.

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2 Methodology 2.1

Scope 1 – Direct Emissions

Amlin’s direct emissions comprise total mains gas consumed and direct fleet emissions. Due to an outstanding issue in St Helens with the current provider related to metering, the readings used for July to December 2014 were taken from the 2013 figures of the same period. The figure for June 2014 was also not available so an average between May and July 2013 was taken and used. For Direct Fleet Emissions company car petrol expenses were taken and mileage calculations arrived at using Amlin mileage allowances. 2.1.1

Gas

Gas is measured in total kilowatt hours and multiplied by the natural gas conversion factor from the 2014 DEFRA conversion tool. Gas consumption data were obtained from a combination of bills and information provided by landlords/managing agents. The following premises do not use gas supply; London (Bury Street LYUL), Norwich, Norfolk, West Malling, Bermuda, Singapore, Rotterdam and France. 2.1.2

Direct Fleet Emissions

Emissions are measured based upon mileage allowances. In the case of chauffeur vehicles data on spend was not provided for 2014 so fuel costs for 2013 were assumed and used. Vehicle mileage is converted to kilometres and multiplied by the relevant conversion factors from the 2014 DEFRA conversion tool.

2.2

Scope 2 – Indirect Emissions sources from the consumption of purchased electricity

For St Helen’s, electricity data were calculated by obtaining total data for the office building and pro rating the data based upon the number of floors occupied by Amlin within the building. The usage for the last two months of the year was taken from the data of the last two months of 2013 to complete the 2014 total. 2.2.1

Electricity

Indirect emissions are calculated on the basis of total kilowatt hours consumed, multiplied by the grid 1 year average conversion factor from the relevant 2014 DEFRA conversion tool. Electricity consumption data were obtained from a combination of bills and information provided by landlords/managing agents with the exception of Amlin House, Chelmsford where own billing data was used.

2.3 2.3.1

Scope 3 – Other indirect emissions Water

Conversion calculations are based upon the conversion factor for water supply in the 2014 DEFRA conversion tool.

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3

Amlin water usage is measured in m and obtained from a combination of bills and information provided by landlords/managing agents with the exception of Amlin House, Chelmsford where own billing data were used. For St Helen’s premises the water usage was calculated by obtaining total data for the office building and pro rating the data based upon the number of full time and contract staff employed by Amlin, occupying the building. 2.3.2

Waste

Conversion calculations are based upon the conversion factor for waste in the 2014 DEFRA guidelines. We have used the “Refuse – Municipal Waste to Landfill conversion figure” as we feel that this best reflects the general waste produced outside of the paper recycling. Additionaly paper recycling takes place across the offices and is recorded in the General Waste recycled column. Waste is measured in tonnes and was requested from landlords/managing agents or direct waste providers. For St Helen’s premises waste was calculated by obtaining total data for the office building and pro rating the data based upon the number of full time and contract staff employed by Amlin, occupying the building. 2.3.3

Travel

For offices outside of the United Kingdom travel data has been obtained directly from site level templates or contracted travel agents. For UK offices travel expense data has been obtained from site level templates, General Ledger data and from travel management agencies. The Expense data obtained from the finance team includes train, taxi and bus travel. As a small percentage of the item narratives do not always contain descriptors to identify the different forms of travel, an assumption has to be applied. Any travel items over £20 were assumed to be made by train and items under this threshold were assumed to be taxi travel as we feel that this is a conservative approach. Expense claims have been included for all employees including both permanent and contract staff. •

Air

Previously DEFRA’s conversion factors have not automatically included a distance uplift or the influence of radiative forcing. We no longer need to account for the distance uplift manually as it is now included in the conversion tool. We have however reported without a radiative forcing uplift as this is in line with previous years’ reporting. Flight data includes all air travel for business purposes. Carbon conversion factors for domestic and international (short haul and long haul) flights and cabin class were taken from the 2014 DEFRA conversion tool.

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•

Car

The Petrol claim ledger for private car business usage was used to establish the total car mileage. Site level and General ledger expenses data for petrol claims were converted at £0.45p per mile and converted to km by formula = 0.45*1.609344. This decision was made in line with company policy that staff are reimbursed 45 pence per mile up to the first 10,000 miles, and 25p per mile on each additional mile over 10,000 miles. The conversion factor used is the average car (unknown fuel) kilometres using the DEFRA conversion tool. •

Taxis

This includes the use of black cabs and regional taxis. Expense data were obtained either directly from site level templates or from Amlin’s General Ledger. Taxi conversion factors were applied to convert expenses to kilometres. Cost to distance conversion is sourced from TFL Taxi passenger rates referenced (https://www.tfl.gov.uk/modes/taxis-and-minicabs/taxifares) and average £7.00 per mile converted to km by kms = ((Fare)/7))*1.609344. The conversion factor then used is the average of black cab and regular cab rates for Vehicle Kilometres using the 2014 DEFRA conversion tool. •

Bus

Expense data were obtained from site level data or Amlin’s General Ledger and converted to distance using Transport for London Report 7 (2014) – Composite Bus/Tube fare per passenger/km 22.4 (pence per km). For 2014 the 2013 composite measure was used +2% inflation as was the difference between 2012 and 2013.

Conversion factors used were taken from the 2014 DEFRA conversion tool. •

Train

Train kilometre data were obtained from corporate travel agents, site level data for overseas offices and General Ledger data. Train expense claims converted to km distance using a per passenger per kilometre figure from the Office of Rail Regulation Statistics Report – 2013-14 Table 12.10 = 13.74 (pence per km). Conversion factors used were taken from the 2014 DEFRA conversion tool. •

Tube

Expense data were obtained from site level templates or from Amlin’s General Ledger and converted to distance using Transport for London Report 7 (2014) – Composite Bus/Tube fare per passenger/Km 22.4 (pence per km). For 2014 the 2013 composite measure was used +2% inflation as was the difference between 2012 and 2013. Conversion factors used were taken from the 2014 DEFRA conversion tool. •

Staff Commuting

This includes the carbon emissions from staff commuting based upon an online staff survey completed in December 2014. The survey was completed by 28% of all employees, both permanent and contract, and averaged to 100% of office population.

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Emissions are calculated on the basis of the distance travelled, days worked, mode of transport and in respect of own vehicles, fuel type and engine size. Conversion rates are used from the 2014 DEFRA conversion tool.

2.4

Missing Offices

Due to Company restructuring and responsibility changes it was not possible to obtain the submissions for the RaetsMarine, Hamburg or New Jersey offices. These offices have therefore been included in the total Carbon Footprint calculated on the average CO2 perperson basis. These include the following RaetsMarine offices: • • • •

London x 5 employees. Paris x 6 employees. Singapore x 17 employees. Rotterdam x 93 employees.

The New Jersey office was opened in late 2013 and consists of 4 employees. The Hamburg office opened in early 2014 and consists of 13 employees.

3 Locations 3.1

Carbon Conversion Factors

All Carbon Conversion Factors are taken from the “2014 Greenhouse Gas Conversion Factor Repository Carbon Smart conversion site”.

3.2

Commuter Survey

The number of people in the commuter survey includes additional staff from satellite offices; Glasgow (two employees) and Manchester (four employees). This accounts for six extra employees in the commuter survey compared with the total staff number used for other scope 1-3 reporting. RaetsMarine staff have been added into the total staff figure separately as they are outside of our IT systems and therefore were not included as part of the survey.

3.3

London

The London “Service Companies”, Lead Yacht Underwriting Ltd (LYUL), Crowe Livestock and Haven Knox Johnson, have been included as additional lines within the London section, and supporting documents can be found in the London folder. Air travel has increased by 13% over last year which is due, in the main, to travel associated with the restructuring of the company. The data were sourced through Amlin’s travel agents; Tzell and the travel nominal from the General Ledger.

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Rail travel has increased 27% and this variance is due in the main to more accurate analysis of the expense data received from finance. As the data are combined, due to restrictions of the system, the data are not defined as to the form of travel and the descriptors continue to be vague for a large percentage of transactions. Based on the noticeable difference in cost for individual transactions of trains over cabs an assumption was made that the majority of the higher costs in this field were in relation to Train travel. Further investigation was also made this year which enabled more accurate analysis where more of these transactions fell into rail instead of Car travel. Car travel however has increased by 93% in support of client intimacy and associated travel necessary for the organisational changes made over the last year. Gas usage across St Helen’s has decreased 6% on last year. This is due to the warmer spring/summer and closer monitoring and changing of the Building Management System settings. Water use in St Helens has increased 12%. The building has humidity control and due to having a drier 2014 more water has been used. In addition the buildings cooling towers have been drained and chlorinated and this process uses a large volume of water. Waste has increased in St Helens by 76%. This is due to refurbishment works taking place throughout the building. Amlin’s waste is included in the overall figure although it is understood that the refurbishment waste is not split out so cannot be fully understood. Our waste volume has therefore been worked out based on a percentage of personnel in the building.

Crowe Livestock The 32% reduction in electrical use and 66% reduction in water are due to reduction in staff numbers and where more staff have been working from the London office from August onwards. All travel has decreased over last year due to the closure of the Crowe office in Barnham. Taxi and fuel expenses have reduced dramatically also due to the planned closure of the office, business trips have significantly reduced and a change of staff member who travelled extensively in 2013. Haven A 98% decrease in train travel is associated to a reduction in European business visits on 2013. Fuel Expenses have increased by 284% due to increased broker visits and additional staff “on the road” as part of their role.

3.4

Bermuda

Bermuda have used their finance data and used assumed splits for travel to determine monetary amounts spent. They have used an average exchange rate, and standard assumptions to convert from £ to KM.

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Water usage has decreased 15% from last year. This is a result of bottled water now being provided to the office for staff consumption, as an alternative to using the in-house filtered water systems. With the Bermuda office leading the Reinsurance SBU on the North American region, travel to the United States in support of client intimacy increased in 2014. This had the net effect of the Short Haul flights increasing by 50%. Long Haul flights however have decreased by 20% as the use of the Amlin video conferencing system has increased to facilitate meetings. This has contributed to the decrease in travel from Bermuda to the UK and Europe, specifically. The car travel distance has decreased 14% as a result of utilising less expensive air fare deals to fly on short haul flights to travel from client to client in the US, rather than use car rentals.

3.5

AUK (Chelmsford, Nottingham, Basingstoke, Norwich)

Electricity has increased 26% due to the extended use of extra heaters at Belvedere House in the winter. Rail travel increased 295% and car travel has decreased 16% and these variances are due in the main to more accurate analysis of the expense data received from finance. As the data are combined, due to restrictions of the system, the data are not defined as to the form of travel and the descriptors continue to be vague for a large percentage of transactions. Based on the noticeable difference in cost for individual transactions of trains over cabs an assumption was made that the majority of the higher costs (over £20) in this field were in relation to Train travel. Further investigation was also made this year which enabled more accurate analysis where more of these transactions fell into rail instead of Car travel. Waste Recycled at Amlin and Fenton House has reduced by 22% but this is in line with the total waste produced reducing and continued promotion of shredding and recycling of all paper waste.

3.6

Amlin Europe

Air travel has increased by 523% which is due to the associated travel necessary for the organisational changes made over the last year. Rail travel has also increased significantly for the same reason. We have had the first full year in our new office in Antwerp. This building has a different type of infrastructure supporting the building which has highlighted a 110% increase in electricity usage. Since we have moved into the Office in Antwerp it has not been possible to obtain the usage for water or gas and therefore this information is excluded from the report. Due to a change in the landlord for Amstelveen the figures were unavailable for Water consumption. The 2014 water consumption has therefore been calculated based on a pro rata headcount on last years usage.

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Waste for Amstelveen and Brussels has increased by 25% and 50% respectively. The waste in Rotterdam has decreased by 67%. Due to the centralised process for the collection of waste in each of these multi-tenanted buildings we are not able to measure this effectively. The figure provided has therefore been based on an estimation of the total waste produced by each building.

3.7

France

Due to underwriters being in contact with brokers more often National Train travel has risen by 28%. It is not been possible to obtain the usage for water for the office and therefore this information is excluded from the report. Electricity has risen 9% due to an increase in staff and more extreme and prolonged winter/summers where the air conditioning (hot / cold) was used more extensively.

3.8

Zurich

Long Haul Business has increased 278% in support of client intimacy in 2014 and due to the associated travel necessary for the organisational changes made over the last year.

3.9

Singapore

Long Haul Business and Short Haul Economy flights have increased by 42% and 34% respectively due to overseas conference events taking place in 2014, more trips made back to London by Underwriters and claims personnel and more people travelling business class in line with the company policy. Long Haul Economy has therefore decreased by 64%. Electricity has increased by 10% on 2013 but this is in line with the headcount increase in the office. It has not been possible to obtain the usage for water for the office and therefore this information is excluded from the report.

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