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Mounting pressure on rail to reduce carbon footprint

Community manager for rail and transport at Achilles, Suzanne O’Keane, discusses the pressures rail companies are facing in creating a more sustainable supply chain.

Rail companies should reconsider their sustainability efforts, since research suggests that most businesses are failing to reduce energy use and carbon emissions in their supply chain. 

In a market survey, about two-thirds (64%) of large UK companies said managing carbon emissions and energy consumption was going to become more important this year. The research also found a quarter (25%) did not monitor their own carbon emissions and energy use. 

Further, more than two-thirds (70%) did not monitor the carbon emissions or energy use of their main suppliers – despite these contractors being involved in carbon and energy-intensive activities such as tunnel drilling and concrete pours. 

The market survey was commissioned by Achilles, which provides services for the Railway Industry Supplier Qualification Scheme (RISQS), to pre-qualify and verify suppliers. Achilles also runs CEMARS (Certified Emissions Measurement And Reduction Scheme) in the UK. It allows companies to measure their greenhouse gas emissions, put in place reduction plans and gain independent certifications. The survey was conducted by independent research company IFF, which interviewed 106 UK companies with more than 250 employees. 

The results come at a time when some large rail firms are beginning to track their energy use under ESOS (Energy Savings Opportunity Scheme) – the UK’s response to an EU agreement to cut emissions by 20% by 2020. The legislation, which came into effect at the beginning of the year, requires firms to audit energy use, identify a cost-effective energy savings scheme and notify the Environment Agency by 5 December. 

But, why aren’t rail firms doing more to reduce carbon emissions and energy consumption in their supply chain? 

In our experience, it is only when rail companies are requested by clients to reduce their carbon emissions and energy use that they begin to take action. All too often that action is restricted to specific projects rather than resulting in firm-wide changes. 

Government pressure on the rail industry to take action to reduce its carbon footprint is expected to increase in coming years. 

The 2015 Budget confirmed rail infrastructure expansion was going to continue for years to come, with the government making new commitments to rail travel. These included the northern rail infrastructure expansion, which takes in High Speed 3; the electrification of the Selby to Hull line; the Croxley rail link; and the development of the Wet Dock Crossing in Ipswich. 

Further, the UK is among the 193 countries which will have their carbon reduction targets for 2030 evaluated by the United Nations by the end of the year.

With rail businesses required to comply with ESOS and the industry expected to come under pressure to take steps to help reach the 2030 targets, it makes sense for companies to take steps now to reduce carbon emissions and energy use. 

It is likely the UK government will require any rail company working on new rail infrastructure to have a comprehensive plan in place to manage their carbon emissions and energy use. 

While the pressure is mounting for many rail companies, many don’t know where to start because they are suffering from insufficient information about their own impact and that of their suppliers. 

It has been our experience that those rail companies that are the most successful at reducing their carbon footprint are those that have worked with their suppliers to increase their sustainability. 

Companies cannot hope to achieve this without first knowing who their suppliers are. This is achieved through storing all supplier information in a centralised, up-to-date database; one that allows companies to store business-critical information as well as suppliers’ sustainability credentials. 

This will then allow rail businesses to determine which of their suppliers are involved in carbon-intensive activities. Rail firms can then ask those companies to provide details of any actions they are taking to reduce carbon emissions and energy consumption. 

Reducing a carbon footprint does not only have benefits as far as compliance with regulations are concerned. 

Rail firms, like all other businesses, are under pressure to protect ever-tightening margins – a situation exacerbated by rising energy costs. The smartest businesses can protect those margins by making sustainable decisions that not only cut carbon, but also energy costs. 

The increasing economic and regulatory pressure to reduce carbon emissions and energy consumption means any rail company looking to get ahead should be seriously thinking about ways to improve the carbon footprint of their supply chain.

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