Sustainable Practices in Facilities Management - Assignment Example

?A to Z Retail I - Sustainable Practices in Facilities Management Introduction The Sustainable Development is a process “that meets the needs of the present without compromising the needs of future generations to meet their own needs” according to Bruntland (1987). Corporate Social Responsibility (CSR) extends beyond the realm of shareholders to cover the interests of the various stakeholders in the business operations which include community welfare and environmental obligations aiming results of the business operations which are beneficial to the future generations as well. Due to increasing environmental concerns worldwide, the governments are under pressure to intervene in the affairs of the society through statutory regulations for streamlining the operations of the general public, local authorities, businesses and other agencies in the backdrop of global warming. “There is enough for everybody’s need, but not enough for anybody’s greed” – Mahatma Gandhi. Nilsson (2008) states “In the past, the statement (Ibid) might have been overlooked as being a somewhat idealistic point of view, but in the light of climate change, the truth becomes very evident”.  Industrial and technological developments leading to air pollution caused by the automobiles, water pollution by industries, depleting water table and deforestation as well as imbalances in ecosystem due to extinction of species necessitates coordinated actions at all levels as the pace of development at the current rate with uninhibited use of precious natural resources is not sustainable in the long run. The corporate community is expected to rise up to the occasion as they have been primarily responsible in the first place for this deplorable environmental phenomenon in the name of growth and industrial development. Carbon Intensity U.S. and China are the world’s two largest emitters, and reducing the Carbon intensity by these nations as well as the EU and fast developing countries such as India, Brazil and Russia holds the key for success by the world in climate change. However, the targets are mainly aimed at human induced Carbon-Di-Oxide (CO2) emissions only. However, in a comprehensive approach the need for land reuse, reforestation, biomass fuel cropping, recycling of waste and renewable energy and its perceived effects on ecosystem have also gained attention and lead the socially responsible people including corporate citizens to realize the need for their cooperation and participation, apart from the complex international negotiations starting from Kyoto Protocol. Finamore (2009) states “a carbon intensity target will require each province and major enterprise to measure, report and reduce their CO2 emissions and energy consumption, year-on-year, acting as a driver for greater efficiency and renewable”. UK is committed to 80% reduction in CO2 emissions by 2050 at the recent Copenhagen Climate Change Summit in December 2009.   A 2 Z Retail’s total carbon footprint Carbon footprint means the total amount of greenhouse gases produced by an organization (or individual) in its activities, expressed in terms of measurable units of carbon dioxide. The direct greenhouse gas emission by burning fossil fuels for various needs of energy and transportation is called as Primary Footprint. The Secondary Carbon Footprint is the total of the indirect emissions generated in relation to the manufacturing process involving use of several intermediary products, consumables and services. Total carbon footprint in relation to a company is the sum of all emissions of CO2 (carbon dioxide), including Primary and Secondary footprints in a given time frame, calculated usually for a year. The calculation is based on the consumption of different type of fuels by the different activities. For example, for each (UK) liter of Diesel consumed, 2.7 kg carbon dioxide (CO2) is emitted, and for each liter of heating oil, it works out to 3.0 kg. The activities such as travel by train or bus (public transportation) for a distance of 10 to 12 km or by plane for 2.2 km, operation of computer for 32 hours (60 Watt), production of 5 plastic bags or 2 plastic bottles each would add approximately 1 kg of CO2 in the calculation of footprint. The CO2 is called as greenhouse gas, and the carbon footprint could also be calculated and stated in terms of kilograms by multiplying CO2 with the factor of 0.27. For example 100 kgs of CO2 is equivalent to 27 kgs of carbon. (Time for change) Measurement of total carbon footprint is essential for taking effective steps by the organization to reduce their carbon emissions. The calculations are required to be made using emission factors in relation to the range of energy tariffs and consumption levels in line with the approved methodology. The calculation of secondary footprint is fraught with uncertainty which makes the estimation difficult. For the purpose of management decision making, monetary values of energy involving heating or cooling in buildings and other direct expenses attributable to emissions such as petrol and diesel for vehicles as reflected in the books of accounts in respect of gas, electricity and fuel could be considered. For the purpose of working out secondary carbon footprint, suitable overall basis for computation may be considered. For example, 15% of gas and electricity bills during the year. Otherwise, for the expenses under various heads, different suitable bases could be used and then summed up for total secondary footprint. The need for reduction of carbon footprint At the moment, the carbon intensity target is only a voluntary action and is not intended to be binding internationally. Pricewaterhouse Coopers (2009) states, “Lord Stern’s recent analysis suggests that this shortfall would have to be made up through even greater cuts in emissions over the longer term”. Therefore, it is in the interest of the individual companies by way of its corporate social responsibility policy to equip themselves with the expertise needed to cope up with the issue effectively, from the long term point of view of corporate sustainability. Carbon Reduction Commitment (CRC) Energy Efficiency Scheme proposed to cut carbon emissions by 1.2 million tonnes of carbon per year by 2020. Carbon footprint (2011) states “The CRC is targeting large non-energy intensive private and public sector organisations within the UK, whose combined electricity use through half hourly metering exceeds 6,000 MWh per year. Approximately 5,000 organisations with energy spend greater than ?500,000 will be obligated to take part”. Carbon Offsetting Carbon Offsetting can be considered by the organizations whereby carbon saving in certain divisions or processes could be set-off some unavoidable emissions. The Quality Assurance Scheme (QAS) of the UK Government encourages organizations by endorsing the brands as ‘Approved Carbon Offsetting’. This could be treated as Quality Assurance Mark signifying the company’s contribution to climate in its business in meeting the government’s environmental high standards. Offsetting could be more effective when the people and organizations take steps for reducing emission of greenhouse gases at all levels on overall basis after offsetting unavoidable emissions. Disclosure of Carbon Labels signifying the absence of negative environmental impacts to the brand would influence the consumers’ decision making, and it is likely to become mandatory in some countries. Trends in prices of fuels (Appendix I) The prices of the fossil fuels over the period of time have increased substantially due to increase in consumption and carbon tax imposed on fuels. This increase in the cost of energy has increased the competitiveness of the renewable energy on two counts, price and environment neutrality. In the appendix the prices of various fuels along with the electricity have been compared for the period from 2003 to 2009. Considering 2003 as a base year, ‘percentage changes’ in fuel prices has been worked out for trend analysis. It could be observed that the prices of all the fuels have been increasing steadily over the period of time. The consumption and pricing pattern of the electricity is also linked to consumption and prices of other fuels and the gravity of the crisis could be gauged from the overall trend. Electricity Prices Trend Analysis Using Percentage Changes Base Year: 2003 Average for fuels has been taken for the analysis 2003 2004 2005 2006 2007 2008 2009 Coal 100.00 111.31 130.97 128.21 136.61 177.22 175.14 Heavy Fuel Oil 100.00 100.77 133.93 170.77 176.80 257.61 247.84 Gas Oil 100.00 112.78 144.86 175.76 179.37 266.00 217.78 Electricity 100.00 109.00 147.73 192.02 189.99 238.37 253.49 Gas 100.00 118.79 171.45 222.99 182.20 261.36 235.60 Renewable energy technologies The alarming effect of greenhouse gas emissions on the environment and the government’s intervention consequent upon its global environmental commitments (For example, at the recent Copenhagen Climate Change Summit in December 2009, UK was committed to 80% reduction in CO2 emissions by 2050), made the business community to explore the possibilities of renewable energy and develop technologies to deal with the situation effectively not only from the view of environmental concerns, but also from the economic point on account of increasing cost of fuels. Faster depletion of natural resources could only be curtailed by tapping the abundant renewable energy sources available with little likely-hood of depletion. Here again, the pioneers in the field are advantageously placed to reap the benefits. For example the companies which embarked on projects of onshore wind resources long back enjoy superior location advantage over the projects which have entered the bandwagon later. Currently, the corporate companies are planning in a big way to tap offshore wind sources. The researches in the areas of solar, wind, tidal and several other resources of renewable energy are underway. The Photovoltaics’ installed capacity in the UK increased from 10.9 MW in 2005 to 14.3 MW in 2006, 18.1 MW in 2007, 22.5 MW in 2008 and an estimated 26.5 MW in 2009. (DECC, Chapter7, p.191). Solar energy in the European countries has been considered unviable on account of variations in intensity of the sun rays, sporadic nature and comparatively high cost of solar panels for industrial purposes, though it is environment friendly. However, it is used in limited scale in home segments for heating and cooking purposes. Offshore wind resources “The introduction of the Renewables Obligation (RO) has proved a more attractive incentive to developers than the NFFO it replaced and the rate of installation of new wind farms has increased since its introduction in April 2002…Offshore wind is expected to make the single biggest contribution towards the Government’s target of 15 per cent of energy from renewable sources by 2020”. (DECC, Chapter 7, p.191) UK is a pioneer as well as a large and leading force in offshore wind industry. Electricity generated from renewable sources - Renewables Obligation basis (in GWh) (p.206) Offshore Wind conference (2010, p. 27): “The study provides in–depth analysis of how the development of UK supply chains, new technologies, an emerging European super-grid and novel finance mechanisms could turn the UK into a global leader in renewable energy. It looks out to 2050 to estimate the potential benefits from an optimal exploitation of the offshore resource – in terms of exports of electricity, new jobs, energy security, and avoided carbon costs”. The developments in the field of wave and tidal stream energy make UK as the world leader in these technologies. Elefant and O’Neill (2007) state that combined offshore wind, wave and tidal projects, also known as "hybrids," hold great commercial potential down the line when wave and tidal technologies have become more established. The sharing of facilities and transmission lines in this case could make these ‘hybrids’ more cost effective. Analysis of options The strategy for a sustainable practice in facilities management needs to be multipronged not only with the view of meeting the statutory and moral obligations but also from the angle of Corporate Sustainability in view of the increasing cost of energy. Therefore, efficiency in utilization of energy and exploring opportunities in renewable energy considering the synergies in the operations would considerably reduce the dependence of energy generated from fossil fuels. The options available are required to be analyzed with reference to the broad divisions within the business, regrouped in terms of the objectives. General heating and lighting, transportation, recycling of packing materials, waste management apart from generation of electricity from renewable sources as outlined are the potential areas where the company can concentrate with specific programs to achieve the desired objectives with strategic planning. General heating, cooling & lighting There is enormous scope for energy saving in general heating, cooling and lighting. For example, introduction of variable speed drive to electric motors in the place of constant speed would result into energy savings. The efficiencies of the pumps and compressors could be improved thorough proper process controls. Therefore training and educational programs may be planned for the employees as it would go a long way in implementation of the strategies in understanding their responsibilities in proper perspective. “We hope to create 30,000 green M&S ambassadors by offering this energy efficient solution free of charge to our employees. It will… cut… their carbon emissions, cut their energy bills and, we believe, inspire them to become advocates for energy efficiency.” Richard Gillies, director of Plan A at M&S”. (Payne, 2010) Energy efficient supply chain There is a significant proportion of transportation cost in the pricing of the product, and decrease in transportation cost also reflects on reduced use of oil, consequently reduced pollution is a positive environmental initiative. “Marks and Spencer, for example, has a specific initiative under way to reduce “food miles,” sourcing its wares from nearby locales… Other initiatives will increase transportation efficiencies: A truck that once carried 150 items will now carry 300, or carry the same volume of goods with less fuel which will increase transportation efficiencies (Parry, Martha and Grenon, 2007). A comprehensive study of supply chain offers scope for savings in fuel cost and positive impact on carbon foot print. Waste Management and generation of electricity from waste Waste management involves recycling as well as generation of electricity from waste. McDermott (2009) states that UK supermarket chain Tesco can stick a feather in its waste-reduction cap: Its 2,300-odd stores have managed to divert 100% of their waste going into landfills nearly six months ahead of schedule -- a decidedly good thing. Tesco Plc (2009) states that they turn recycled carrier bags into refuse bags and recycle cardboard boxes to make new one. Tesco Plc states “Where possible, we ensure waste is used to make alternative sources of energy. 5,000 tonnes of waste meat generate about 2,500 megawatt-hours of renewable electricity”. Also, organic waste from various sources when composted in oxygen-free atmosphere results into biogas can be used to produce electricity. Conclusion The measurement of performance of the investments made in environmental protection programs by the companies in the recent years in terms of Social Return on Investment have justified investments from economic as well as social contexts. Voluntary self-reliance program of energy consumption at the user level is a prerequisite to meet the climate crisis looming ahead of the world and the future generations. Creation of separate department for ‘Sustainable Development’ can be considered for consolidating the fruits of the various efforts taken in this direction and for future development. The economic justification of CSR reflects in the direct and the indirect benefits arising out of the CSR programs on a very long term basis apart from the short term benefits such as sale of carbon credits by reducing emission of greenhouse gases. Reduction in overall carbon footprint leads to savings in operational cost and avoids penalties under regulations as well as creates opportunity to make profit by trading in carbon savings. 11 - Business Plan for a Sustainable Development Introduction Further to the report on “Sustainable Practices in Facilities Management”, as advised by the President, an outline of the business plan with reference to the Corporate Social Responsibility has been discussed in this paper. In this connection, the strategies for implementing a comprehensive program for reduction in carbon footprint have been analyzed. While working out the strategies, the paper aims to deal with the business plan in line with the statutory obligations; also emphasis is placed on energy security to the business with a long term point of view for sustainable development. However, the concept of return on investment, the associated benefits arising out of the investments, the areas where the investments are expected to yield better results and the priorities among these areas in implementation have been considered. CSR as a basis for Corporate Sustainability The seriousness of the environmental crisis faced by the humanity could be inferred from the news article from Associated Press (2010, p.20): Encroaching seas in the far Pacific are raising the salt level in the wells of the Marshall Islands. Waves threaten to cut one sliver of an island in two…What happens if the 61000 Marshallese must abandon their low-lying atolls? Would they still be a nation? With a UN seat?” The emission of greenhouse gases and deforestation causing imbalances in the ecosystem due to industrial activities and the use of products detrimental to the environment are the underlying causes for the unseasonal monsoons, floods, storms and droughts. The consequences of the environmental degradation as published by Chicago Press Release Services (2010): “Researchers…tested till receipts made from thermal paper which they collected from 22 popular retailers and cafes, and found that half of them were coated with large quantities of BPA…More than 130 studies over the past decade have linked even low levels of BPA to serious health problems, including breast cancer, obesity and early onset of puberty”. Therefore, regulatory measures introduced by various governments need to be complied with right spirit in a coordinated manner at all levels on a global basis. Rationale for investment According to Marilena (2008), the business community is responsible on three dimensions for sustainable development: “economical development, that generates profits and jobs; social development, as a guarantee for the well-being and for the compliance to human rights; environmental development, which must ensure the preservation of natural resources and the ability of the ecosystem to absorb and tolerate pollution”. The concept of Return on Investment is to be integrated in the strategies to the extent possible in the case of CSR projects, as a tool for the measurement of the efficacy of the projects for a strategy to be more meaningful, keeping in mind that the implication is, returns to the businesses and the communities as well. Hence, the targets or performance should be amenable to measurements in terms of returns. Investment opportunities Good corporate citizen (2007) states “Corporate citizenship recognizes that businesses have a responsibility to respect the individuals, the community and the environment in a way that when devising or implementing any rightful business strategy they will abide by laws and regulations, and adhere to high ethical standards”. Though the strategy is guided predominantly by the statutory obligations underlying the laws and regulations, the opportunities existing in the strategies for growth and sustainability should not be lost sight of. In respect of carbon footprint, the company is already above the minimum threshold of ?500,000 at ?800,000, and as per the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, according to Carbon footprint (2011), “approximately 5,000 organizations with energy spend greater than ?500,000 will be obligated to take part”. Investment Strategy The project envisages combination of energy saving, twin objective of waste management through recycling and generation of electricity from waste and generation of electricity from renewable energy sources. Implementation of Energy Efficient Measures Phase I is a first step to bring down the carbon footprint to ?500,000 level through implementation of Energy Saving measures, which involves replacement of some equipments and machines with energy efficient ones, modification or reworking of the existing equipments and machines to achieve energy efficiency and streamlining the entire operations for effective use of energy. Energy consumption at various levels should be constantly monitored by a special task group. Carrington (2011) states “Laptop computers, real-time energy displays and smarter heating have enabled the UK government department responsible for climate change to surpass its 10:10 campaign pledge to cut its carbon emissions by 10% in 2010. The Department of Energy and Climate Change (Decc) cut its carbon footprint by 20%, compared with 2009”. Therefore, a return on investment of about 10% on a conservative basis means that as long as the investment does not exceed ?800,000 in the project for implementation of energy efficient measures, the project is eminently justified. However, taking into account the reduction in carbon foot print, the effect of the project on the productivity apart from energy saving and other CSR related benefits, an increase in the outlay by 50% would be justifiable considering the all round improvement in performance. Wang, Zhong & Cui (2011, p.191) state “China has issued Energy Mid-Long term Development by 2020: First, technology about energy-saving and energy-effective; …” This is mainly due to the fact that there is the greatest potential in this area. Adopting energy efficiency measures is a continuous process. Investment ?800,000 x 150% 1,200,000 Energy savings 80,000 Other benefits (@ 25% of energy saved) 20,000 Return on investment 100,000 = 8.33% It is estimated that the financial outlay would be in the region of 900,000 to 1,100,000, and in that case, the rate of return would go up. Also, if the historical trend suggesting increase in electricity prices is factored into the calculations it may well exceed 10% in due course. Waste Management The phase II consists of generation of electricity from waste and recycling by way of efficient waste management. Disposal of waste is a great concern for retailers as land-filling has some environmental concerns for the community living around the waste disposal yard. Electricity from Waste In the case of waste as a feedstock to ‘waste-to-energy plant’, the economic value of the waste becomes significant. In this process, the heat generated in the combustion of the feed stock can be used to power turbines for electricity generation. The quality of waste with reference to its chemical properties determines the potential in this respect. This process is also environmental friendly. Alternative Energy (2008) state “waste-to-energy plants based on combustion technologies are highly efficient power plants that utilize municipal solid waste as their fuel rather than coal, oil or natural gas”. It has been estimated that at least ?240,000, that is 30% of the energy requirements at gross level that is about ?800,000, could be met from this source. The incineration of waste is the underlying concept of the process, and the project is not investment intensive. Land cost in the project has not been considered since the company owns the necessary land required for the project. Therefore, cost of furnaces, boilers and other equipments constitute the major portion of the project cost, which is estimated to be ?1,400,000, equivalent to 10 times of annual energy savings at the current cost. Though the cost of production per unit of electricity would be substantially lower compared to the average current cost of electricity per unit, 50% of the purchase price is taken into account for calculation purposes on a conservative basis. (in ?) Project cost 1,400,000 Energy produced (at the current average cost level) 240,000 Actual cost of production (Phase II) 140,000 ---------------- Savings in captive power generation 100,000 Add: Savings in the cost of disposal of waste 20,000 ---------------- Return on investment 120,000 = 8.57% If the historical trend suggesting increase in electricity prices is factored into the calculations ROI may well exceed 10% in future. Reduction in energy spend proposed Under the phase I and II there has been substantial reduction in energy spend to bring the company within the threshold limit of ?500,000. (in ?) Energy spend at the current level: 800,000 Reduction in spend in Phase I 80,000 Reduction in spend in Phase II 240,000 Total reduction in spend 320,000 ------------- Net energy spend 480,000 Recycling It is pertinent to note that the production of 5 plastic bags or 2 plastic bottles each would add approximately 1 kg of CO2 in the calculation of footprint. Therefore, waste management through recycling is considered significant in the scheme of the things. Conversion of waste products, especially paper, paper board and other packing materials used in the business for re-use also holds great potential for savings. The Body Shop Stakeholder Panel Review dt.31 August 2008 is a case in point for highlighting the potential in this respect. Plastic bags are replaced by 100% recycled paper bags from 2008. Materials used in store design are reviewed to ensure that all of its store fittings are 100% recyclable, recoverable or reusable at the end of their life 80% of all packaging contains recycled content The recycled content of all its PET bottles is doubled (currently 30%) – with the intro of 100% PCR PET bottle we are potentially the first global retailer to have such high PCR content in our PET bottles The recycled content of gift packaging is increased and secondary packing is reduced Recycling of packaging materials could be carried out with limited investment and is economical compared with land filling and carbon dioxide avoidance costs. Renewable Energy In Phase III, the company can explore the strategies for renewable energy from Off-shore wind resources. In view the increasing cost of fuels, the future consumption by the company and the potential for selling surplus energy generated, this project could be considered as diversification as well. The government has taken several initiatives for the purpose of meeting the EU ‘target of 15% of energy to come from renewable sources by 2020’, by supporting the investments in technologies relating to renewable energy by the industries. The land available around the company’s wastage disposal yard located near shoreline could be an ideal base to provide facilities required for this purpose as well as for generation of electricity from waste. In that case, the infrastructural facilities and the manpower proposed to be established for power generation could be shared by this project also. Hence, the project would be financially more viable compared to a stand-alone project which may need separate infrastructural facilities and manpower at the land base. An early entry into off-shore wind resources could pay rich dividend in the long run, as in the case of ‘Onshore Wind Mills’. The investment outlay varies based on the size and location of the offshore wind resources project. The investments made in offshore infrastructural facilities and transmission projects in offshore wind resources may be useful for diversification into tidal stream energy in future. Since the objectives at the minimum level has been achieved in phase I and II, the investment decision for phase III depends on the average and marginal cost of capital for the company and the opportunity cost of the funds. Benefits of CSR policies The CSR policies as adopted by the companies and its proper implementation enhance the reputation of the companies. The companies standing in the public would be greatly useful in labor recruitment. Retention of labor is ensured in a stakeholder-friendly environment, and the labor turnover in the industries and businesses will be very limited. The new products of the business would be well accepted in the market due to good brand image and customer loyalty, thereby making market penetration easier. The suppliers and contractors trust the management and rely on integrity in all dealings with these companies. Higher level of customer satisfaction enhances the brand equity of the companies. The CSR programs of the company, especially the ones related to environmental issues are viewed by the communities and the local authorities favorably. This enables these companies in getting preferential treatment in the allocation of public utility services and also paves way for reduced governmental intervention and restrictive regulations in its business activities. The comprehensive CSR policies with regard to pollution, water treatment, treatment of effluents, recycling, wastage disposal, labor relations, customer relations and taxation in the long run increases the productivity due to all round cooperation from the various stakeholders including communities and the government. Consequently, the increased productivity would be translated into better working conditions, reasonable wages and increased profits. The best corporate citizens outperform the other companies which illustrates importance of CSR strategies and policies. Verschoor (2002) states “Business Week Mean Ranking of Financial Performance of the 100 Best Corporate Citizens is 10.42 percentiles higher than that of the remaining companies”. The customers may be willing to pay more for the products from a carbon label company on account its commitment to the environment. Organization, Training & standards For any CSR mechanism to be more effective in the operation of the company establishment of committees and recruitment of professionals with balanced background in terms of experience and expertise in the field, gender and ethnicity to work as CSR Executives is essential. The CSR related activities inter alia include Labor welfare, Working Conditions, Environmental issues and Consumer protection. The committee’s interaction with the management and the employees at all level and various stakeholders would make the programs more effective and result oriented. The management may also consider reorganizing the office of the Public Relations, for integrating the CSR and Public Relations in a seamless manner. This will also avoid duplication of work because in addition to the internal issues the CSR executives should be in touch with all the stakeholders like Public Relations executives. For a retail group like A to Z Retail, the investment in CSR activities would translate into brand identity and brand awareness among the public. Therefore, training to the employees for understanding the CSR policies and strategies of the company in its proper perspective is very important. Similarly, educating the customers is also an ongoing process for the success of the CSR programs. International standards in CSR are evolving and Agencies like SAE International and OECD have developed standards and issued guidelines for voluntary compliance by the companies, and a number of companies have been adopting such standards. Apart from the mankind, in an ecological system various plants, animals and other living organisms are interdependant for their survival. The retailers’ contribution in ecological perspective is very important and its initiatives in respect of promotion of green label, its campaign for use of recycled produts, and reduction in the emission of gases will enhance the brand equity. Conclusion The clout of the pressure groups in the society has increased over the period of time. Engagement with the stakeholders at all levels is important and need to be integrated in the corporate policies and strategies in view of the stakeholder activism exhibited in public demonstrations, boycott movements against the corporate companies, negative campaigns and criticisms in media. The companies are under pressure to be vigilant against these social movements and reorient their strategies in tune with the growing expectations of the society to be successful in the business. However, these pressure groups are also responsible for rewarding the best CSR companies by extending support to their products and causes and investing in the instruments of such companies. The environmentally screened market instruments should be an eye opener for the companies to take note of the changes in the customers’ behavior. Also, tastes, fashions and sentiments of the consumers have undergone changes in recent times significantly, though it is a continuous process; preference for organic foods, green consciousness in dress, building and consumable materials including computers. For example products made by using child labor in third world countries are banned in the developed countries due to customer resistance to such products. When the customers are willing to pay more for green/carbon label goods, the socially responsible companies will be greatly benefited in the process. Appendix I Trends in Prices of Fuels                 Original units   Size of consumer 2003 2004 2005 2006 2007 2008 2009 Coal Small 57.76 62.69 73.85 78.21 79.58 95.83 120.19 (? per tonne) Medium 47.41 52.99 63.13 62.68 61.95 74.03 82.23 Large 31.49 35.09 41.17 40.03 43.43 57.44 54.82 All consumers: Average 34.03 37.88 44.57 43.63 46.49 60.31 59.60 Heavy fuel oil Small 167.4 167.6 236.7 297.6 300.5 483.0 421.9 (? per tonne) Medium 156.5 157.4 215.6 255.4 275.1 425.9 378.6 Large 146.1 147.8 188.5 254.5 258.3 348.2 376.5 Of which: Extra large 143.1 146.8 182.6 254.8 249.8 .. .. Moderately large 151.7 149.5 199.4 254.1 273.8 .. .. All consumers: Average 152.5 153.7 204.3 260.5 269.7 392.9 378.0 Gas oil Small 248.2 273.1 357.5 429.8 430.0 632.8 507.6 (? per tonne) Medium 236.0 261.0 346.1 414.3 427.4 617.8 506.0 Large 220.1 249.4 318.1 387.1 394.5 588.0 481.8 All consumers: Average 223.2 251.7 323.3 392.2 400.3 593.6 486.0 Electricity Small 4.251 4.634 5.631 6.964 7.574 8.661 9.817 (Pence per kWh) Medium 3.253 3.574 4.663 6.138 6.600 7.366 8.836 Large 2.611 2.835 3.964 5.154 4.850 6.490 6.484 Of which: Extra large 2.474 2.666 3.742 4.687 3.982 5.533 5.078 Moderately large 2.717 2.966 4.137 5.514 5.521 7.230 7.571 All consumers: Average 2.868 3.126 4.237 5.507 5.449 6.836 7.270 Gas Small 1.230 1.357 1.650 2.307 2.438 2.896 2.931 (Pence per kWh) Medium 1.042 1.175 1.539 2.084 2.081 2.379 2.534 Large 0.766 0.922 1.360 1.754 1.370 2.056 1.797 All consumers: Average 0.809 0.961 1.387 1.804 1.474 2.114 1.906 Firm 0.870 1.019 1.458 1.853 1.644 2.205 2.000   Interruptible 0.756 0.912 1.327 1.763 1.332 2.038 1.827 Source: Table 3.1.3 Annual prices of fuels purchased by manufacturing industry in   Great Britain excluding the Climate Change Levy       References Alternative Energy, 2008. 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