Reducing your footprint

What are the ground rules for signing up to carbon reduction? Amanda Sheppeard answers the key questions.

WHEN Medical Observer and the Carbon Reduction Institute (CRI) teamed up last year to conduct their first carbon audit of a typical general practice (Medical Observer, 13 June 2008), there was little inkling of just what would follow.

Many practices, including the George Street Medical Centre in Sydney (MO, 5 June 2009) have answered the call and are taking steps to become either ‘low carbon’ or ‘no carbon’ practices.

The partnership between MO and the institute has seen the launch of the Low Carbon Doctors Initiative, which provides doctors with access to a simple and financially viable program to become either low- or no-carbon practices.

It is one of the many carbon initiatives practices can sign up to.

The process of becoming a low- or no-carbon practice is simple. In a nutshell, practices provide statistical details to an auditor who calculates their carbon output. This output then is reduced using the auditor’s recommendations and, if needed, the purchase of accredited carbon audits.

Beyond the feel-good benefits of being community leaders on an issue impacting health, practices also gain the marketing benefit of being able to promote themselves as low carbon, or for the more committed, no carbon.

But with the benefits are attached responsibilities, including the legal requirements practices must meet to promote themselves as low or no carbon, and maintain their contractual requirements.

IF I SIGN UP AM I BOUND TO MEET MY REDUCTION QUOTA?

According to Gavin Pereira, environmental director at the CRI, the green accreditation process is both simple and affordable and should not create a great deal of extra work for busy general practices.

But he says it is important to understand that it is a contract you are signing and that carries contractual responsibilities.

“We provide an emissions monitoring agreement that binds the company to ensure that it meets its pledged emissions reduction level,” he explains.

If the agreement is not kept, the practice loses the right to promote itself as being low or no carbon.

“They have a contractual obligation to ensure that the reduction level is met. The emission reduction progress is metered annually through re-audits to measure their carbon footprints.”

WHAT IS REQUIRED?
In most cases, GPs will be required to sign a contract with the certifying company. The general requirements for this will usually include:

• Agreement that the practice participate in an annual carbon audit
• Agreement that the practice will buy enough carbon credits to fulfil the certification requirements they agree to
• Agreement that practices will not alter logos or use them in association with business arms that are not certified.

SO WHAT DO I HAVE TO DO?

Mr Pereira explains that with institute clients “we ask for all the data and provide easy checklists and instructions to compile it”.

This data includes utility bills, such as gas, power and water, equipment details and other incidentals that contribute to the practice’s overall footprint.

“We then complete the audit, which calculates their footprint and the number of credits they need to buy to become certified,” he explains.

“The data is easy to compile – it should take a practice manager around two hours to get together, which is not much for an annual process.”

The certification company audits the practice at agreed intervals to ensure targets are being met.

HOW MUCH DOES IT COST?

CRI’s Mr Pereira says past audits put the annual accreditation costs at around the $2000 mark per year for the average practice. This includes the carbon audit, ongoing emissions monitoring and the cost of the carbon credits.

Generally, one carbon credit offsets one tonne of CO₂ and costs on average, in the vicinity of $15 to $20 which is included in the annual audit cost of, on average, $2000. As an example, one nine-doctor Sydney practice paid $1100 for the process in total.

The good news is that apart from helping reduce CO₂ emissions, the practice will save money on its power bills.

WHAT HAPPENS IF YOUR PRACTICE FAILS TO MEET ITS COMPLIANCE AGREEMENT?

It is important to note that practices may be able to renegotiate their agreement with their green accreditation supplier, but if they fail to do that and do not fulfil their end of the bargain, the practice will lose their green certification and be asked to remove any green logos from their premises.

To avoid this, the practice could buy additional carbon credits to cover the shortfall – that is, the difference between the emissions level and the necessary requirement.

Mr Pereira points out though, that there have not been any cases in which this has occurred, and he puts this down to the fact that compliance costs are low.

“This is great news because it means that the costs of saving the planet are small and that businesses can afford to do the right thing,” he says.

IF I DON’T MEET MY QUOTA, CAN I STILL DISPLAY THE GREEN LOGO?

When it comes to the use of logos, Mr Pereira says practices should be aware of their obligations. Practices that claim to be low- or no-carbon sites must ensure they can prove it – and that means achieving certification.

If you fail to meet the requirements, you will have to remove the logo, or you may find yourself in breach of the Trade Practices Act and could be fined.

The Australian Competition & Consumer Commission last year produced an issues paper in response to what it describes as “consumer concerns about the veracity of carbon-offset claims”.

ARE ALL CARBON REDUCTION INITIATIVES THE SAME?

It is important that practices shop around before signing up with any certification company.

Mr Pereira says practices should do their homework and seek third-party endorsements from colleagues and environmental non-governmental organisations (NGOs) and the prospective certification company’s client base in order to help them decide which certifier is right for their business.

It is especially important to confirm that the company you sign with has a good track record in fulfilling its end of the bargain – the investment in certified carbon offset products.

No carbon or low carbon?

According to the Carbon Reduction Institute, GPs should opt for no-carbon certification – commonly known as NoCO₂ certification, as additional costs are quite small and the overall environmental statement is far more powerful.

So what’s the difference?

• NoCO₂ Certification – these practices are carbon neutral and have accounted for, reduced and offset the greenhouse gas impacts from all inputs into their practice. This includes emissions from sources such as medicines, wrappings, equipment, services purchased and staff travel.
• LowCO₂ Certification – these practices measure, reduce and offset a percentage of their emissions from staff travel, flights, energy use and waste.

Where do carbon credits come from?

Carbon credits are purchased from a range of projects, which include energy-efficient and renewable energy systems, tree plantations and methane combustion and abatement programs.

Due diligence

ALISON Choy Flannigan, a partner at law firm DLA Phillips Fox in Sydney, says GPs should exercise due diligence and ensure that the company they choose for certification is accredited by their state government authorities.

Practices must also understand their legal requirements and ensure that any contract sets out the obligations of all parties involved.

They should be aware that they will be legally required to deliver the agreed carbon offsets, and that failure to do this might constitute a breach of the Trade Practices Act – and potentially attract a fine.

While GPs may opt out of the program, Mr Pereira warns if they do so before the carbon credits are offset and continue to display the ‘green practice’ logo, it may be seen as deliberate misrepresentation and once again could constitute a breach of the Trade Practices Act.

MO MAKES GOING GREEN EASY

The Low Carbon Doctors Initiative is designed to help you reduce your carbon footprint at a level that works for you and your practice. For more info visit medicalobserver.com.au/green.