Report

Transcription

Report
Fact sheets: Emissions
embedded in UK service
sector supply chains
Sustainability Research Institute, University of
Leeds
A research report completed for the Department for Environment, Food
and Rural Affairs
February 2013
Published by the Department for Environment, Food and Rural Affairs
Department for Environment, Food and Rural Affairs
Nobel House
17 Smith Square
London SW1P 3JR
Tel: 020 7238 6000
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Fact sheets: Emissions embedded in UK service sector supply chains
Final Report to the Department for Environment, Food and Rural Affairs
February 2013
This research was commissioned and funded by Defra. The views expressed reflect the
research findings and the authors’ interpretation; they do not necessarily reflect Defra policy
or opinions.
Authors:
Kate Scott and John Barrett
Suggested citation:
Scott, K. and Barrett, J. (2013) Fact sheets: Emissions embedded in UK service sector supply chains,
Report to the UK Department for Environment, Food and Rural Affairs by the University of Leeds.
TABLE OF CONTENTS
1
Introduction ...................................................................................................... 5
1.1
1.2
1.3
1.4
Allocating emissions ................................................................................................................ 5
Defining service sectors .......................................................................................................... 5
Defining consumption-based emissions of service provision ................................................. 6
Context of service sector emissions in the UK economy ........................................................ 6
2
Wholesale and retail......................................................................................... 9
3
Public administration and defence ............................................................... 11
4
Hotels and restaurants .................................................................................. 13
5
Health and vets ............................................................................................... 15
6
Education ........................................................................................................ 17
7
Sewage and refuse ......................................................................................... 19
8
Finance, insurance and pensions ................................................................. 21
9
Real estate activities ...................................................................................... 23
10
Recreation and culture .................................................................................. 25
11
Social work ..................................................................................................... 27
12
Other business services ................................................................................ 29
13
Postal activities and telecommunications ................................................... 31
14
Other services not elsewhere classified ...................................................... 33
Page 4 |
1
Introduction
This fact sheet provides a supply chain analysis of greenhouse gas emissions of UK registered
services sectors for 2008. The analysis is supplementary to Scott and Barrett (20131), providing more
sector specific detail. Table 1 describes the information provided for each service sector.
Variable
Emissions
share
Emissions
origin
Emissions
growth
Emissions
scope
Description
Share of 2008 GHG emissions associated with global supply chains for UK registered
service sectors as shown in Figure 2 (i.e. from a consumption perspective).
Share of emissions associated with UK service consumption, divided into those that
are released from UK industry and those originating in industry abroad.
Rate of consumption growth compared to rate of efficiency improvement from 2004
to 2008 resulting in a sectoral emission increase or reduction
Share of emissions associated with UK service consumption emissions, divided into
emissions from on-site burning of fuels, emissions embodied in electricity throughout
the supply chain and emissions embodied in non-energy goods and services.
Supply chain Charts displaying the total supply chain emissions of UK services and their share
hotspots
distributed by the country and sector of origin. This enables identification of high
emission parts of a supply chain i.e. “hotspots”. The sector itself might appear in the
sector list, which are the direct emissions from their premises.
Table 1: Sectoral information provided
1.1
Allocating emissions
Emissions can be allocated to sectors in two ways: production emissions are allocated to the sector in
which they were emitted; consumption emissions are allocated to the final product in which they are
embodied. This comparison distinguishes between emission intensive industries and emission
intensive products, which is the difference between the emissions produced on-site from an industry’s
activities (e.g. burning fuel) compared to the emissions released indirectly along the supply chain of
the goods or services it sells to final consumers. The second therefore includes greenhouse gases
emitted overseas for production of goods consumed in the UK.
1.2
Defining service sectors
Private and public services included are defined by thr UK Standard Industrial Classification2 system.
Private sector services include wholesale, retail, hotels, restaurants, transport, communication,
financial services and business services. Public sector services include education and schools, health
and hospitals, administration and defence.
The mitigation potential of transport services (such as the rail, shipping and aviation sectors
themselves) is not covered. While we recognise that transport services play an important role as a key
emitter of GHG emissions and are part of the solution to a low carbon future, this analysis attempts to
capture parts of the service sector that has been largely unexplored in terms of mitigation options.
1
Scott, K. and Barrett, J. (2013) Investigation into the greenhouse gas emissions of the UK services industries, Report to the
UK Department for Environment, Food and Rural Affairs by the University of Leeds.
2
http://www.ons.gov.uk/ons/guide-method/classifications/archived-standard-classifications/uk-standard-industrialclassification-1992--sic92-/index.html
Page 5 |
1.3
Defining consumption-based emissions of service provision
When expressed from a production perspective emissions are those released directly by service
sectors from burning of fuels for heating and travel. When expressed from a consumption perspective,
emissions are the supply chain or life-cycle emissions embodied in the goods and services consumed
by the service sectors to provide their service.
To illustrate, Figure 1 depicts the provision of a service – a restaurant meal – to a UK householder in a
hypothetical six sector economy. To supply this service there are many upstream inputs creating a
complex supply chain with emissions embodied at every stage. Emissions will be embodied in the
buildings owned by the sector and all the materials used in their mining, manufacture and
construction3; the food grown and processed and the machinery and fertiliser requirements of the
farms; the furniture and cooking equipment used and their material and manufacturing requirements;
the transport required to deliver the food; the banking and financial services employed by the sector
and so forth. All these emissions are summed to calculate the consumption-based emissions of
services to the point of consumption. Waste treatment and disposal is allocated separately to the waste
sector.
Figure 1: Illustration of emissions included in a consumption-based account, using the example of
4
supply of the service of a restaurant meal for a UK householder (adapted from Foran et al., 2005 )
1.4
Context of service sector emissions in the UK economy
Services account for a relatively low share of UK emissions directly from their premises (73 Mt
CO2e). However, as significant procurers of products they are deeply rooted in emission intensive
manufacturing industries, resulting in emission intensive supply chains (353 Mt CO2e). Therefore
services are responsible for an increased share of emissions when adopting a consumption
perspective. In 2008 their share from a consumption perspective is 35% compared to 13% from a
production perspective. Over 40% consumption-based service emissions are from the public sector;
23% of emissions are from wholesale and retail; 15% from hotels and catering services and the
remaining 20% are from other private service sectors (see Figure 2).
3
Consumption-based emission accounts are calculated on an annual basis and therefore emissions embodied in pre-existing
buildings will have been accounted for in the year(s) of construction. Any new construction activities will be accounted
for in the year the financial transactions occur.
4
Foran et a. (2005) Integrating sustainable chain management with triple bottom-line accounting, Ecological Economics, 52
(2), 143 - 157
Page 6 |
Figure 2: Contribution of aggregated service sectors to consumption-based UK service industry
emissions in 2008?
Figure 3 indicates where emissions for UK consumption are released. 50% of consumption-based
emissions embodied in all UK services originate outside the UK. 19% originate in the UK service
sector itself and are attributed to on-site energy use, largely the burning of fuels (mainly gas and
petrol) to heat buildings and fuel cars. 14% of emissions embodied in UK services are emitted in UK
energy and water utilities. 98% of this is from electricity (i.e. emitted at a power station), with 2%
embodied in water utilities and the distribution of gas to the point of combustion. 7% emissions
embodied in UK services are emitted in the UK transport sector including rail, water, land and air
transport. 6% are emitted in UK manufacturing in the manufacture of goods used by UK service
providers. 4% emissions are released in the UK agriculture sector for cultivation and harvesting of
agricultural products along UK service sector supply chains and the remaining 1% is emitted in the
UK construction sector.
Figure 3: Origin/ source of consumption-based emissions of UK services
Page 7 |
Since 2004 to 2008, emissions embodied in UK services (originating in both the UK and overseas)
have declined. Emissions reductions occur when the pace of efficiency improvements are greater than
the growth in demand. Figure 4 shows for each service sector the rate of efficiency improvement in
providing the service compared to the demand (or consumption) for each service. Efficiency
improvements in those services falling above the straight diagonal line through the centre of the chart
have been greater than their demand resulting in emission reductions. Demand has outpaced
efficiency resulting in an increase in emissions in only two service sectors: finance insurance and
pensions; and sewage and refuse.
Figure 4: Rates of consumption growth vs. rates of efficiency improvements for service groups
consumed in the UK, identifying the number of sectors where emissions have reduced compared to
those which have contributed to an emission increase between 2004 and 2008
Page 8 |
2
Wholesale and retail
Wholesale is the final step in the distribution of merchandise to industry and retail is the final step in
the distribution of merchandise to final consumers such as shops, market stalls and mail order
companies. Operations associated with trade include sorting, grading and assembling of goods;
mixing (blending) of goods (e.g. wine); bottling (with or without preceding bottle cleaning), packing,
breaking bulk and re-packing for distribution in smaller lots; storage (whether or not frozen or
chilled); cleaning and drying of agricultural products; and additional cutting out of wooden
fibreboards or metal sheets.
Emissions embodied in wholesale and retail are those emissions along supply chain of goods and
services required in the operations described above. Supply chain emissions of merchandise sold to
consumers is not included within wholesale and retail consumption emissions, but is assigned to the
product.
Service industry emissions share: 23% of UK service sector emissions in 2008 were associated with
wholesale and retail (see Figure 2).
Emissions origin: 50% of emissions associated with wholesale and retail services consumed in the
UK are emitted in the UK and 50% are emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 18% and efficiency improvements
have grown by 25% (see Figure 4) resulting in an emissions reduction of 6%.
Emissions scope: 27% of emissions result from direct energy use and electricity originating in the
UK. 15% are emitted in the UK power sector. Electricity is used for lighting and electrical equipment
in outlets and is embodied in goods and services utilised by retail and wholesale from electricity used
in their production. 12% of emissions are emitted directly on-site (i.e. from burning gas), for example
to heat retail outlets. A further 12% are energy related and come from international electricity supplies
used in the production of goods and services used by retail and wholesale (but not those products sold
to final consumers). 61% are assigned to non-energy sectors and are related to production of goods
and services used by the sector outside of electricity and on-site energy use, notably agriculture;
material and fuel extraction and processing and transport. Almost two thirds of these emissions are
emitted in sectors outside the UK.
Supply chain hotspots (
Figure 5): The top ten emitting sectors along the supply chain make up two thirds of the emissions
(shared evenly between the UK and abroad). Emissions stemming from electricity and on-site energy
use account for almost 39% supply chain emissions, with the remainder originating in non-energy
sectors. Besides energy, 8% of consumption emissions of the sector originate in agriculture abroad;
6% in international oil and gas extraction activities; 5% in land transport on roads or via pipelines in
the UK; 4% in manufacture and first processing of basic iron and steel abroad and 3% in international
fuel and nuclear processing. A third of emissions remain (referred to as the rest) with all other sectors
contributing less than 2% each.
Page 9 |
Figure 5: Share of consumption emissions by region and sector of origin (i.e. where the emissions are released).
The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
Page 10 |
3
Public administration and defence
These are the public sector activities which are mainly administrative (not operational), for example
regulation of e.g. health care and education; foreign affairs; defence activities; public security; fire
service; and social security.
Emissions embodied in public administration and defence are those emissions along supply chain of
goods and services required in the operations described above. For example, emissions embodied in
electronic equipment, ammunition and office buildings are emitted in material extraction, processing,
product manufacture and transportation sectors and in the use of the equipment and machinery.
Service industry emissions share: 15% of UK service sector emissions in 2008 were associated with
public administration and defence (see Figure 2).
Emissions origin: 48% of emissions are released in the UK and 52% are emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 20% and efficiency improvements
have grown by 30% (see Figure 4) resulting in an emissions reduction of 8%.
Emissions scope: 29% of emissions originate in UK energy sectors – both the on-site burning of fuels
and UK electricity. 15% are emitted in the UK power sector. Electricity is used for lighting and
electrical equipment in public administration and defence operations and is embodied in goods and
services utilised by them. 14% of emissions are emitted directly on-site (i.e. from burning gas), for
example for heating and petrol. A further 16% are energy related and come from international
electricity supplies used in the production of goods and services used by public administration and
defence. 55% are assigned to non-energy sectors and are related to production of goods and services
used by the sector outside of electricity and on-site energy use. Two thirds of these are emitted in
sectors outside the UK.
Supply chain hotspots (Figure 6): Energy and energy intensive sectors feature heavily in the top 10
supply chain hotspots. Electricity alone makes up nearly a third of emissions (31%) with direct
emissions from Public administration (the burning of gas on-site) also contributing 14% of
consumption emissions. Following energy provision, 6% consumption greenhouse gases are emitted
in the manufacture and first processing of basic iron and steel abroad; 4% are emitted in the UK
sewage and refuse sector; 4% are emitted in international extraction of fuels; 3% are emitted in
agriculture abroad; followed by the UK air and land transport sector emitting 2% emissions each.
Page 11 |
Figure 6: Share of consumption emissions by region and sector of origin (i.e. where the emissions are released).
The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
Page 12 |
4
Hotels and restaurants
This sector covers provision to customers of lodging and/or prepared meals, snacks and beverages for
immediate consumption. It includes both accommodation and food services as the two activities are
often combined in one unit.
Emissions embodied in hotels and restaurants are those emissions along supply chain of goods and
services required in the operations described above. Examples of supply chain emissions include
emissions from growing food in the agricultural sector, manufacturing and processing food into
ingredients, transporting the food to catering facilities, and preparation and cooking; and extraction,
processing, transportation and burning of fuel for cooking and heating in hotels and restaurants.
Service industry emissions share: 15% of UK service sector emissions in 2008 were associated with
hotels and restaurants (see Figure 2).
Emissions origin: 50% of emissions from hotels and catering are emitted in the UK and 50% are
emitted by foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 15% and efficiency improvements
have grown by 24%(see Figure 4) resulting in an emissions reduction of 8%.
Emissions scope: 19% of emissions are from on-site energy use and electricity originating in the UK.
13% are emitted in the UK power sector. Electricity is used for lighting and electrical equipment in
catering and accommodation facilities and is embodied in goods and services utilised by hotels and
restaurants from electricity used in their production. 6% of emissions are emitted directly on-site (i.e.
from burning gas), for example for heating and cooking. A further 10% are energy related and come
from international electricity supplies used in the production of goods and services used by hotels and
restaurants. 71% are assigned to non-energy sectors and are related to production of goods and
services used by the sector outside of electricity and on-site energy use. 56% of non-energy sector
emissions are emitted in sectors outside the UK.
Supply chain hotspots (Figure 7): The sector contributing the highest share of emissions embodied
in hotels and restaurants is the agricultural sector, which contributes 29% consumption emissions.
23% of consumption emissions are embodied in electricity, whether for use in electrical equipment in
hotels and restaurants or embodied in products used in hotels and restaurants. Both are fairly evenly
split between domestic and international agricultural and power generation activities. After
agriculture, electricity and on-site emissions, 8% emissions originate in transport activities (mainly
UK land transport and pipelines); 7% in fuel extraction; and 6% in food processing sectors. Of the
food processing sectors, the majority of consumption emissions are from alcohol, followed by meat
and bread.
Page 13 |
Figure 7: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO2e.
Page 14 |
5
Health and vets
This includes public (the NHS) and private hospital activities, nursing homes, general and dental
practices, and vets. Emissions embodied in the health sector are those emissions along supply chain of
goods and services required in their operations. For example, emissions embodied in pharmaceuticals
will be emitted in chemical processing sectors; product manufacture; the paper, cardboard and plastic
sectors for manufacture of packaging; and transportation to distribute pharmaceuticals to hospitals and
pharmacies.
Service industry emissions share: 12% of UK service sector emissions in 2008 were associated with
health and veterinary care (see Figure 2).
Emissions origin: Only 35% of supply chain emissions occur in the UK, with 65% being emitted in
foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 33% and efficiency improvements
have grown by 39% (see Figure 4) resulting in an emissions reduction of 5%.
Emissions scope: 21% of emissions are energy related originating in the UK. 12% are emitted in the
UK power sector. Electricity is used for lighting and electrical equipment in hospitals, homes and
surgeries and is embodied in goods and services utilised by them. 9% of emissions are emitted
directly on-site (i.e. from burning gas). A further 18% are energy related and come from international
electricity supplies used in the production of goods and services used by the UK health sector. 60%
are assigned to non-energy sectors (e.g. pharmaceuticals and agriculture) and are related to production
of goods and services used by the sector outside of electricity and on-site energy use. Three quarters
of these are emitted in sectors outside the UK.
Supply chain hotspots (Figure 8): Besides electricity, emissions in the production of
pharmaceuticals are most significant (11% consumption emissions of health sector), with the
overwhelming majority (95%) being manufactured abroad. 50% of emissions in the provision of
health can be attributed to electricity, manufacturing of pharmaceuticals and on-site energy use. 5% of
emissions are released in international agriculture; 5% in international fuel extraction; 3% in UK
sewage and refuse; 3% in UK land transport; and the remaining sectors contribute 2% or less. Sectors
which feature in the higher end of these include production of medical equipment, chemical sectors,
manufacture of glass and plastic and soaps and detergents.
Page 15 |
Figure 8: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO2e.
Page 16 |
6
Education
Education includes primary, secondary, higher and adult education; both public and private.
Education includes oral, written, radio and television education. Adult education includes driving
schools, flying certificates and youth employment schemes. Education primarily concerned with
recreation is not included. Emissions will be embodied in the buildings, furniture, computers and
textbooks used in education and the material extraction, processing, manufacture and distribution of
them to education establishments; emissions will be embodied in the cars used in driving schools and
the material and manufacturing requirements to produce them and fuel used to run them and so forth.
Service industry emissions share: 6% of UK service sector emissions in 2008 were associated with
education (see Figure 2).
Emissions origin: 54% of emissions in the provision of education are emitted in the UK and 46% are
emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 30% and efficiency improvements
have grown by 39% (see Figure 4) resulting in an emissions reduction of 7%.
Emissions scope: 34% of emissions originating in the UK from on-sire energy use and electricity
provision. 18% are emitted in the UK power sector. Electricity is used for lighting and electrical
equipment in education establishments (e.g. schools and universities) and is embodied in goods and
services utilised by them (e.g. buildings and computers). 16% of emissions are emitted directly on-site
(i.e. from gas and petrol combustion). A further 10% are energy related and come from international
electricity supplies used in the production of goods and services used by the UK education sector.
55% are assigned to non-energy sectors and are related to production of goods and services used by
the sector outside of electricity and on-site energy use (e.g. agriculture and construction materials).
70% of non-energy sector emissions are emitted in sectors outside the UK.
Supply chain hotspots (Figure 9): A third of UK education supply chain emissions are emitted in the
UK electricity sector (18%) and from on-site fuel combustion (16%). 13% and 10% are emitted in
international agricultural and power sectors. A further 10% is emitted from fuel extraction and
processing; about 5% is emitted in transport; and 2% each is emitted in domestic agriculture, domestic
manufacture of cement, lime and plaster and domestic sewage and refuse disposal.
Page 17 |
Figure 9: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO2e.
Page 18 |
7
Sewage and refuse
This entails the collection and treatment of household and industrial waste not intended for further use
in an industrial manufacturing process. The aim is disposal and the resulting product is of little or no
value. Activities included in the sector are street cleaning, soil and water decontamination and snow
clearing. Emissions will be released directly at disposal sites such as landfill, and embodied in goods
and services used by the sector for sewage and waste disposal. Emissions will be released from
burning of fuels to transport waste and embodied in the production of trucks enabling transportation
of waste.
Service industry emissions share: 6% of UK service sector emissions in 2008 were associated with
sewage and refuse (see Figure 2).
Emissions origin: 91% of emissions are emitted in the UK with only 9% being emitted by foreign
industries.
Emissions growth: Between 2004 and 2008 demand has grown by 39% and efficiency improvements
have grown by 33% (see Figure 4) resulting in an emissions increase of 4%.
Emissions scope: 86% of emissions are from on-site energy use and electricity originating in the UK.
82% consumption emissions originate on-site at waste disposal facilities and from fuels used
transporting waste. 4% are emitted in the UK power sector. A further 2% are energy related and come
from international electricity supplies used in the production of goods and services used by the UK
waste sector. 12% are assigned to non-energy sectors and are related to production of goods and
services used by the sector outside of electricity and on-site energy use (e.g. construction materials).
Supply chain hotspots (Figure 10): The supply chain profile of this sector is quite different to all
others. Direct emissions contribute 82% of the sector’s emissions. The majority of these will be
methane emissions arising from waste disposed of to landfill (about 90%5). 6% supply chain
emissions of the UK waste sector are emitted in the power sector.
5
AEA and DECC (2011) Waste: GHG inventory summary factsheet
Page 19 |
Figure 10: Share of consumption emissions by region and sector of origin (i.e. where the emissions
are released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO2e.
Page 20 |
8
Finance, insurance and pensions
This covers activities obtaining and redistributing funds, for example banking, financial leasing,
insurance companies and pensions and activities closely related to these. The buildings, furniture,
office equipment and so forth will have embodied emissions from resource extraction, processing,
manufacture, distribution and use.
Service industry emissions share: 5% of UK service sector emissions in 2008 were associated with
finance, insurance and pensions (see Figure 2).
Emissions origin: 48% of emissions are released in the UK and 52% are emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 65% and efficiency improvements
have grown by 50% (see Figure 4) resulting in an emissions increase of 9%.
Emissions scope: 18% of emissions are from on-site energy use and embodied in electricity
originating in the UK. 15% are emitted in the UK power sector. Electricity is used for lighting and
electrical equipment in banks and offices and is embodied in goods and services utilised by them. 3%
of emissions are emitted directly on-site (i.e. from fuel combustion for heating and business
transport). A further 14% are energy related and come from international electricity supplies used in
the production of goods and services used by the UK finance sector. 68% are assigned to non-energy
sectors and are related to production of goods and services used by the sector outside of electricity and
on-site energy use (e.g. air transport and resource extraction). 56% of emissions outside energy
sectors are emitted outside the UK.
Supply chain hotspots (Figure 11): On-site emissions are not very significant and account for only
3% supply chain emissions. Three sectors contribute 40% of the supply chain emissions: UK and
international electricity (15 and 14% respectively) and UK air transport (11%). 7% consumption
emissions of finance, insurance and pensions are emitted in foreign fuel extraction sectors; 3% are
emitted in international agriculture; 3% in fuel processing in the UK and 3% in road transport and
transport via pipelines.
Page 21 |
Figure 11: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
Page 22 |
9
Real estate activities
Activities include the buying, selling and renting of private and commercial buildings. Expenditure on
rental houses is included, but the purchase of households is not. Rental properties will have emissions
embodied in the material requirements, manufacturing and construction processes; offices will have
emissions embodied in the building they’re housed in and the furniture, equipment, travel vehicles etc.
they use; emissions will be embodied in the financial services required for buying and selling
properties; and so forth. Emissions from heating, travel and electricity in rented properties are
assigned to the household or sector renting the building.
Service industry emissions share: 4% of UK service sector emissions in 2008 were associated with
real estate activities (see Figure 2).
Emissions origin: 49% of supply chain emissions are emitted in the UK and 51% are emitted abroad.
Emissions growth: Between 2004 and 2008 demand has grown by 29% and efficiency improvements
have grown by 29% (see Figure 4)resulting in stable emissions.
Emissions scope: 19% of emissions are from on-site energy use and embodied in electricity
originating in the UK. 13% are emitted in the UK power sector. Electricity is used for lighting and
electrical equipment in offices and estate agents and is embodied in goods and services utilised by
them (e.g. office equipment and furniture). 6% of emissions are emitted directly on-site (i.e. from fuel
combustion for heating and business transport). A further 13% are energy related and come from
international electricity supplies used in the production of goods and services used by the UK real
estate sector. 68% are assigned to non-energy sectors and are related to production of goods and
services used by the sector outside of electricity and on-site energy use (e.g. raw material extraction
and construction). Just over half (55%) emissions from sectors excluding energy are emitted outside
the UK.
Supply chain hotspots (
Figure 12): Whilst electricity and on-site energy accounts for the most significant share of emissions
(32%), 68% of emissions are outside energy provision. 6% emissions are released in the extraction of
fuels abroad; 5% are released from UK construction; 5% from UK air transport (includes freight and
passenger travel); and 4% are released in the processing of basic iron and steel overseas. Agricultural
activities, other transport and construction materials also release emissions to a lesser extent (around 2
to 3% individually).
Page 23 |
Figure 12: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
Page 24 |
10
Recreation and culture
Services include production and distribution of film, radio and television productions; museums,
theatres and other arts facilities; and sports centres and stadiums. Emissions will be embodied in their
construction and equipment relating to the resource inputs required. Examples are wide ranging and
one could be the plastic needed for seating in a stadium, their transport to the stadium, their
manufacture and assembly with any additional components, the moulding of the plastic, and the
processing of plastic back to raw material extraction.
Service industry emissions share: 4% of UK service sector emissions in 2008 were associated with
recreational and cultural activities (see Figure 2).
Emissions origin: 41% of emissions are emitted in the UK and 59% are emitted by foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 22% and efficiency improvements
have grown by 33% (see Figure 4) resulting in an emissions reduction of 10%.
Emissions scope: 21% of emissions are from on-site energy and embodied in electricity originating in
the UK. 12% are emitted in the UK power sector. Electricity is used for lighting and electrical
equipment in recreation and culture facilities and is embodied in goods and services utilised by them.
9% of emissions are emitted directly on-site (i.e. from fuel combustion for heating and business
transport). A further 16% are energy related and come from international electricity supplies used in
the production of goods and services used by the UK recreation and culture sector. 62% are related to
production of goods and services used by the sector outside of electricity and on-site energy use (e.g.
agriculture, fuel extraction and manufacture of fertilisers). 70% of these are emitted in non-energy
sectors outside the UK.
Supply chain hotspots (Figure 13): Whilst electricity and on-site energy accounts for the most
significant share of emissions (38%), 62% of emissions are outside energy provision. 10% emissions
are released in agricultural activities abroad; 4% are released from fuel extraction overseas; 3% from
UK air transport (includes freight and passenger travel); and 2% are released in the domestic
production of fertilisers.
Page 25 |
Figure 13: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO2e.
Page 26 |
11 Social work
Activities encompass those providing full or part-time assistance to children, the aged and those with
a disability requiring assistance. Examples include orphanages; children’s boarding homes, homes for
physically or mentally handicapped; rehabilitation centres; counselling; welfare guidance; community
activities etc. Emissions embodied in the social work sector are those emissions along supply chain of
goods and services required in their activities. For example, the provision of children’s boarding home
will have emissions embodied in the building from material extraction, processing, transportation of
materials and components, assembly and construction; emissions will be embodied from agricultural
practices, tractors and machinery, fertilisers etc. required to grow, harvest and process food for
catering and so forth.
Service industry emissions share: 4% of UK service sector emissions in 2008 were associated with
social work (see Figure 2).
Emissions origin: 55% of emissions are emitted in the UK and 45% are emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 15% and efficiency improvements
have grown by 28% (see Figure 4) resulting in an emissions reduction of 11%.
Emissions scope: A quarter of emissions is from on-site energy and embodied in electricity
originating in the UK. 12% are emitted in the UK power sector. Electricity is used for lighting and
electrical equipment in social work facilities and is embodied in goods and services utilised by them.
14% of emissions are emitted directly on-site (i.e. from fuel combustion for heating and business
transport). A further 9% are energy related and come from international electricity supplies used in the
production of goods and services used by the UK social work sector. 65% are related to production of
goods and services used by the sector outside of electricity and on-site energy use (e.g. agriculture,
fuel extraction and transport services). 54% of these are emitted in non-energy sectors outside the UK.
Supply chain hotspots (Figure 14): It is one of 2 (aggregated) UK service providers in which the
electricity sector in the rest of the world doesn’t feature in the top 3 supply chain hotspots, but also
electricity is not the number one big-hitter. On-site emissions from the burning of fuel (gas) contribute
14%, UK electricity production 12% and agriculture abroad 10%.
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Figure 14: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
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12
Other business services
These include renting of machinery, equipment and domestic goods; research and development; legal
activities; computer services; accounting; market research; architectural and engineering activities;
advertising; labour recruitment; investigation and security activities (e.g. surveillance); and industrial
cleaning. Already accounted for above and therefore excluded from this sector are financial
intermediation, insurance and pensions and real estate. The buildings, furniture, office equipment and
so forth will have embodied emissions from resource extraction, processing, manufacture, distribution
and use.
Service industry emissions share: 3% of UK service sector emissions in 2008 were associated with
other business services (i.e. excluding finance shown in section 8 and real estate shown in section 9)
(see Figure 2).
Emissions origin: 48% of emissions are released in the UK and 52% are emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 22% and efficiency improvements
have grown by 25% (see Figure 4) resulting in an emissions reduction of 3%.
Emissions scope: 29% emissions are from on-site energy and embodied in electricity originating in
the UK. 20% are emitted in the UK power sector. Electricity is used for lighting and electrical
equipment in business service facilities and is embodied in goods and services utilised by them. 9% of
emissions are emitted directly on-site (i.e. from fuel combustion for heating and business transport). A
further 14% are energy related and come from international electricity supplies used in the production
of goods and services used by UK business services. 57% are related to production of goods and
services used by the sector outside of electricity and on-site energy use (e.g. fuel extraction and
agriculture). Two thirds (67%) of these are emitted in non-energy sectors outside the UK.
Supply chain hotspots (Figure 15): Electricity contributes a third of supply chain emissions (20% of
these being outside UK territory); with primary industries such as agriculture, mining and extraction
taking this up to 50%.
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Figure 15: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
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13
Postal activities and telecommunications
Post and courier activities mainly involve collection, transport and delivery of mail, parcels and the
like. In addition to the transmission of information (e.g. TV and radio) telecommunications also
covers activities which offer access to a certain network, such as the Internet. Emissions embodied in
postal and telecommunications are those emissions along supply chain of goods and services required
in the operations described above. One supply chain would be the material extraction, processing,
manufacture and assembly into a television, and the necessary energy, materials and machinery
associated with each stage. Another would involve the textiles and manufacturing of clothes required
for postal workers uniforms. Another example would be the materials and construction for
communication pipelines, aerials, transmitters and receivers.
Service industry emissions share: 2% of UK service sector emissions in 2008 were associated with
postal activities and telecommunications (see Figure 2).
Emissions origin: 31% of emissions are emitted in the UK and 69% are emitted in foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 2% and efficiency improvements
have grown by 10% (see Figure 4) resulting in an emissions reduction of 8%.
Emissions scope: 20% emissions are from on-site energy and embodied in electricity originating in
the UK. 10% are emitted in the UK power sector. Electricity is used for lighting and electrical
equipment used for postal and telecommunications and is embodied in goods and services utilised by
them. 10% of emissions are emitted directly on-site (i.e. from fuel combustion for transport and
heating). A further 21% are energy related and come from international electricity supplies used in the
production of goods and services used by UK postal and telecommunications sector. 59% are related
to production of goods and services used by the sector outside of electricity and on-site energy use
(e.g. material extraction and manufacture of television, radio and telephone components). The
overwhelming majority (82%) of which are emitted in non-energy sectors outside the UK.
Supply chain hotspots (Figure 16): Electricity along the supply chain makes up almost a third of the
products emissions. Products purchased (excluding energy and transport) are largely sourced from
abroad.
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Figure 16: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
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14
Other services not elsewhere classified
These are all other services not elsewhere classified, for example, amongst others, membership
organisations (e.g. trade unions and religious organisations), hairdressers, dry cleaners, funeral
activities, and domestic staff. All services embody emissions along their multiple supply chains.
Service industry emissions share: 1% of UK service sector emissions in 2008 were associated with
other services not elsewhere classified (see Figure 2).
Emissions origin: 56% of emissions are emitted in the UK and 44% are emitted by foreign industries.
Emissions growth: Between 2004 and 2008 demand has grown by 22% and efficiency improvements
have grown by 31% (see Figure 4) resulting in an emissions reduction of 8%.
Emissions scope: A third (34%) emissions are from on-site energy and embodied in electricity
originating in the UK. 11% are emitted in the UK power sector. Electricity is used for lighting and
electrical equipment used for other service activities and is embodied in goods and services utilised by
them. 23% of emissions are emitted directly on-site (i.e. from fuel combustion for transport and
heating). A further 12% are energy related and come from international electricity supplies used in the
production of goods and services used by UK services not elsewhere classified. 53% are related to
production of goods and services used by the sector outside of electricity and on-site energy use (e.g.
sewage and refuse disposal and agriculture). 59% emissions from non-energy sectors are emitted
outside the UK.
Supply chain hotspots (Figure 17): Besides emissions from electricity, supply chain hotspots reflect
the UK registered services included in the sector – sewage and sanitation, activities of membership
organisations and UK households with employed persons (contribute 30% supply chain emissions).
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Figure 17: Share of consumption emissions by region and sector of origin (i.e. where the emissions are
released). The top ten high emitting sectors are disaggregated from the ‘rest’. Values are kt CO 2e.
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