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Rothschild & Co | Annual Report 2017
Corporate Social Responsibility
Total energy use
Total energy use in MWh
01/01/17
31/12/17
(12 months)
01/04/16
31/03/17
(12 months)
Total Energy Consumed
18,082.1
17,640.0
MWh/FTE
6.28
6.23
4.3.2.4 LAND USE
No sites are located in or adjacent to areas of high biodiversity value and
the Group does not consider its land use to be of material environmental
risk. However, it remains mindful of the impacts of land use and will protect,
as far as practicable, biodiversity affected by the Group’s operations.
4.4 Climate Change
4.4.1 Adaptation to the consequences
of climate change
In the 2016/2017 financial year, Rothschild & Co outlined its position
on climate change (please refer to page 103 In the same financial year
Rothschild & Co established its Group Environment Policy. This policy will
help it adapt to climate change challenges.
4.4.2 Significant greenhouse gas emissions items
generated as a result of the Group’s activity,
particularly by the use of goods and services
provided
Rothschild & Co’s greenhouse gas (“GHG”) emissions are calculated
as tonnes of carbon dioxide equivalent (tCO
2
e), a universal unit of
measurement expressing the impact of each of the Kyoto GHGs in terms
of the amount of CO
2
that would create the same amount of warming.
Rothschild & Co calculates tCO
2
e by multiplying its activity data, for example
waste incineration, landfill and miles travelled by air, by the UK DEFRA-
approved conversion factors.
The Group’s emissions reporting is in respect of its operational activities
and includes Scope 1 and 2 emissions, and Scope 3 emissions in respect
of business travel, water supply and wastewater treatment, materials, waste
disposal, and electricity transmission and distribution losses.
The GHG emissions data table below does not include emissions associated
with investments from Asset Management and Merchant Banking divisions.
Rothschild & Co recognises that, although not quantified, Scope 3
emissions from Asset Management and Merchant Banking divisions are
a significant source of impact
(1)
.
In line with reporting from last financial year and best practice, Rothschild &
Co has again produced a “dual report” for Scope 2 GHG emission. This
“dual reporting” uses both location and market-based reporting methods.
The location-based method is the historical way in which Rothschild & Co
reports GHG emissions. This method uses energy grid average emission
factors in location specific geographies and over specific timeframes.
Using guidance from the GHG Protocol, Rothschild & Co now also reports
GHG emissions using market-based methodology.
The Scope 2 market-based figure reflects emissions from electricity
purchasing decisions that Rothschild & Co makes. When quantifying
emissions using the market-based approach, and where possible, a tariff
specific emissions factor is used (for example, some office locations choose
to purchase electricity generated from 100% renewable sources, and can
therefore account emissions associated with electricity consumption at
these sites as zero). Where tariff specific emission factors are unavailable,
a supplier specific emissions factor is used, and where there is a lack of
availability of tariff specific emissions factors, a residual mix emissions
factor is used. As a final option, whereby the three previous emissions
factors are not available, the location-based grid emissions factor is used.
This approach is in line with the GHG Protocol Scope 2 Data Hierarchy.
Scope 2 location-based GHG emissions from electricity use have fallen. This
is due to in part to some office reconfigurations which reduced occupied
floor space, and the drop in some location based emissions factors. This
is the second year the Group has reported on Scope 2 market-based GHG
emissions; this figure continues to be influenced by offices moving to
purchase 100% renewable electricity.
The reduction in Scope 2 emissions has been negated by an increase in
Scope 1 and 3 emissions, namely from business travel, hence total Group
GHG emissions have increased by 5% overall.
Greenhouse Gas emissions data
Group Scope 1, 2 & 3 emissions
(Scope 3 emissions being split between business travel and other Scope 3
emissions)
Scope 2 – Energy
Indirect Emissions,
(e.g. from purchased
electricity or heat)
Scope 3 – Other
Indirect Emissions
from Business Travel
Scope 3 – Other
Indirect Emissions
from Other Sources
(e.g. material use)
Scope 1 – Direct
Emissions, (e.g. from
owned sources like
vehicles or boilers)
76%
4%
4%
16%
(1) Over the next 12 months, Rothschild & Co will look in more detail at quantifying this impact, as a first step to taking more appropriate measures.