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News Release from: Barloworld Optimus
Edited by the Manufacturingtalk Editorial
Team on 13 February 2008
Firms will turn to IT to reduce carbon
'footprint'
IT software company predicts that seven out of ten UK companies will be relying on IT software to help them reduce their carbon-based emissions by 2013.
Consultancy Barloworld Optimus' CEO predicted that seven out of ten UK companies will have turned to technology to help drastically reduce their carbon emissions by 2013 Ewan French is chief operating officer of Solihull, UK-based Barloworld Optimus and is also co-developer of the CAST-CO2 supply chain carbon footprint optimisation software
This article was originally published on Manufacturingtalk on 28 Feb 2007 at 8.00am (UK)
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His comments came as figures revealed that 76% of the world's 2,400 leading companies reported implementing a greenhouse gas emissions reduction initiative last year - up from 48% in 2006.
According to French, proposed Government action as well as a rising tide of public demand to address the issue of global warming and corporate social responsibility are beginning to spark-off a dramatic surge in the number of companies actively seeking to reduce emissions.
He said that software tools like CAST-CO2 represent 'the only realistic way ahead' as the onus falls on businesses to act or suffer the consequences.
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French told manufacturingtalk.com: "Designing a supply chain to not only minimise operational costs, but also to minimise carbon emissions is the goal that all companies should now be considering".
He added that currently one in twenty UK companies is taking advantage of software that can effectively lead to reducing emissions by between 20% and 30%.
He said that big changes on the way, which will force companies to 'toe the line' on greenhouse gas emissions.
It will cause a 'marked switch' in the way they do business between themselves and with their customers.
* UK Climate Bill - the UK Climate Bill demands a 60% reduction in carbon dioxide emissions by 2050.
The EU has an agenda to cut carbon dioxide emissions by 20% by 2020.
Most countries in the world now view global warming as their biggest or second biggest concern over the next six months (Source: Nielsen on-line).
The UK Government's chief scientific advisor, Professor Sir David King, recently described climate change as 'the most severe problem that we are facing today'.
French said that all companies are going to have to take determined action to manage the carbon footprint of their products right across the supply chain if they are to mitigate the effects of climate change and increasing energy costs.
He said: "The pressures on them to do so are going to come from three directions - Government action in the form of existing and planned legislation, shareholder and vertical business pressure, and changing consumer attitudes".
He said that too many companies are continuing to equate carbon reduction with increased costs - a factor that, he said, doesn't stand up to scrutiny.
* Reducing operating costs - in typical applications, CAST-CO2 consistently shows the way to reduce transportation and other operating costs by up to 10%.
A recent application to evaluate multi-modal transportation alternatives for a European chemicals manufacturer ultimately led to CO2 emissions reduction of 28% alongside a 9% saving in cost, amounting to several million GBP.
Additionally, said French, verified emissions reductions may qualify for interest free energy efficiency loans or enhanced capital allowances and that remaining emissions may be offset through investment in approved projects as a consequence of reduction implementation plans.
* Opportunities - French said that UK firms are now faced with significant business opportunities to simultaneously reduce cost and carbon emissions through energy reduction.
Once they take on board the sound business sense of embracing the latest technology - typically highlighted by the startling conclusion that just taking one lorry off the road for a year is equal to the cost of the software - the sooner they will reap the benefits.
He added: "The only realistic way of testing and predicting the impact of alternative supply chains is through modelling, and as a powerful driver towards better business, new technology holds the key.
Companies are now faced with excellent opportunities to work collaboratively to reduce emissions with product and service suppliers and the consumer, and the 'sustainable' message can also be marketed across the products and through staff, supplier, shareholder and stakeholder training and awareness programmes".
French continued: "Add to that the potential to identify further opportunities to increase operational efficiencies, mitigate current and future risk, and enhance the reputation as a corporate citizen and the sound business advantages of accurate modelling become clear".
French concluded that the technology is there: "There's a growing will for it to happen and the winners will be those that harness the power.
That's why I predict that seven out of ten companies will turn to IT to reduce carbon over the next five years.".
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