Report
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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 Website: www.defra.gov.uk © Queen's Printer and Controller of HMSO 2007 This publication is value added. If you wish to re-use this material, please apply for a Click-Use Licence for value added material at: http://www.opsi.gov.uk/click-use/value-added-licence-information/index.htm Alternatively applications can be sent to Office of Public Sector Information, Information Policy Team, St Clements House, 2-16 Colegate, Norwich NR3 1BQ; Fax: +44 (0)1603 723000; email: hmsolicensing@cabinet-office.x.gsi.gov.uk Information about this publication is available from: SCP&W Evidence Base Defra Zone 5D, 5th Floor, Ergon House c/o Nobel House, 17 Smith Square London SW1P 3JR Email: scpevidence@defra.gsi.gov.uk 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%. Page 27 | 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. Page 28 | 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%. Page 29 | 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. Page 30 | 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. Page 31 | 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. Page 32 | 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). Page 33 | 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. Page 34 |