Carillion is committed to the continued reduction of energy use and the associated Carbon Dioxide emissions by reducing the need to travel, using resources more efficiently and utilising sustainable sources of energy

Climate change is enhanced by the emission of greenhouse gases. The most significant of these is Carbon Dioxide (CO₂), which is produced whenever fossil fuels are burned. For example, in car engines and power stations. Therefore we must reduce;

The emissions from car engines by:
	Reducing the number of miles driven
	Reducing the number of company cars we provide
	Providing cars which are fuel efficient
	Providing an option for staff to down grade car types
The emissions associated with generation of electricity by:
	Reducing the amount of energy used
	Increasing our use of sustainable sources of electricity

Please refer to the transportation section of the report for further details on the reduction of CO₂ emission from transport.

Energy consumption

Approximately one third of the UK's total CO₂ emissions are from power stations (ref 1). Therefore, we are reducing our reliance on such energy and increasing our consumption of sustainable energy. For example, we are taking active steps to increase the number of facilities that utilise hydroelectric power, a renewable source of electricity. During 2001 52 facilities used hydroelectric power, compared to only our Head Office Facilities in 2000.

The use of hydroelectric power creates a significant saving in terms of CO₂ emissions. For example, our Head Office Facility (ref 2) saved 1,275,334 kg of CO₂ emissions by purchasing electricity from a hydroelectric source.

Whilst hydroelectric power does not generate carbon dioxide emissions in the way that power stations do, it is not exempt from the Climate Change Levy (CCL). During 2001 Carillion as a whole paid £23,314.43 to the CCL. All business groups contributed to the cost of the CCL depending on the type of energy purchased. The proportion of the CCL costs for each business group can be viewed graphically. It is our intention to reduce our contribution to the CCL by reducing our consumption of electricity and by purchasing energy for sustainable sources that are exempt from the CCL.

The table below demonstrates that during 2001 electricity and gas consumption at our Head Office buildings in Wolverhampton increased when compared to 2000. This was is partly due to the increase of staff operating from Head Office following the closure of regional offices as a result of our restructuring. However, the table also demonstrates that the amount of CO₂ generated in 2001 was greatly reduced. This was due to the procurement of electricity from a renewable source.

* 1,275,334kg of Carbon dioxide were saved due to use of hydroelectric power.

**The conversion factor for electricity KWh to Kg CO₂ was adjusted to 0.43 in line with Government Climate Change Levy reporting guidelines.

The table below demonstrates that although consumption has slightly risen in 2001 (except for oil) the buildings are continuing to perform better that a typical type 3 office.

Head office buildings are between type 2 and type 3 offices.

It is our intention to strive toward good practice. Therefore, an environmental survey and analysis of the building services was undertaken and during the latter part of 2001 the following works were commissioned:

• Replacement of the two, 1970’s, cast iron boiler with four high efficiency gas boilers.
• Resurrection of the "Trend" Building Energy Management System to control the heating, but with capacity to take on monitoring and control of other elements of the building environment.

It is anticipated that energy savings of some 15% will be achieved as a result of this work, with significant improvement to the internal environment for the benefit of the occupants.

Energy use on projects

Due to the nature of construction projects it is inherently difficult to meaningfully measure the amount of energy consumed. This is due to many factors including:

	Many clients prefer to pay for the electricity consumption of the construction and operation of the new building or refurbished buildings
	Project electricity consumption will vary depending on the project programme, activities being undertaken and the type of project

For example, a year on year comparision of energy usage on one project would not provide information on energy efficiencies as the activities and working hours would vary greatly.

All the above have prevented meaningful assessment of energy consumption level at project levels. However, this is an area where we strive to improve our understanding.

In contrast our facilities management projects are more able to measure and control energy consumption. Indeed the management of energy consumption is often part of the facilities management contract. e.g. from Doug.

 Minimising Energy Use at the Design Stage

Our biggest opportunity to reduce energy use in buildings is by designing energy efficient buildings. This is particularly possible for the Private Finance Initiative (PFI) projects where we are able to design construct and assist in operating constructed infrastructure.

Please refer to our Sustainable Design section which highlights the ways in which we are improving our knowledge and understanding of sustainable issues within the design process.