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Hello everyone I'm Doctor Bruno Gallotta lecturing operations management at the University of Derby and today I'll be talking about carbon footprinting made easy. This webinar is part of the High Peak Skills programme and has been developed by the University of Derby in partnership with High Peak Borough Council and funded by the UK Government.
The programme has been developed to support businesses within the High Peak to develop digital green and employability skills.
Whether you're self-employed looking to re enter the workforce or exploring a career change, this programme offers flexible access, both skills training to enhance employability. We'll focus on work readiness, transferable skills and signposts to further training and qualifications, catering to diverse background and experiences. This flexible programme supports both in person and online learning options in reaching skills.
Development in the High Peak economy. Each session is designed to be practical, impactful, and adaptable to your business needs.
Ensuring your learning journey is engaging and accessible, whether in person or online.
Just mention this. This is the second one that is focused on green skills. We had the first one, which is focused around.
Net zero pathways that you can access in a separate in a separate video.
So before we actually start with me talking about carbon footprinting about how to calculate your carbon emissions, I'll just like to just have a quick touch base on some pre session activities. So before joining the carbon footprinting made easy practical steps for students business. We were just inviting. Just ask you to do the following activities. So this you should have received this.
Prior to this event.
So the first one is to use an online carbon footprint calculator. So as an example here I've included the one from double double F carbon footprinting calculated to estimate your personal carbon footprint. So over the next 20 to 30 minutes, if you haven't done so, just answer just a few questions about your lifestyle, including travel energy, use, diet and waste.
Record the results and reflect on which are the biggest contributions for your own individual carbon footprint.
So you can access the calculator at dot footprint.wwf.org.uk. So if you use that you can calculate your own individual carbon emissions. I'm going to touch base about the results of this later on this session. I'm just going to give some minutes for you to complete this. Feel free to post this video whenever you feel the need to do.
The activities.
The second activity involves in investigating the sustainable practises implemented at your workplace, so as instructions research how your company measures and reduces if it's carbon footprint. So if they have any measures in place, if they have anything in place, everything's to consider sourcing. So thinking about our sustainable materials or products used.
And it's used. So what are the energy saving measures that are in place, like energy efficient lights?
Those kinds of things and waste management. So how does the company manage waste if there are any recycling programmes, if there are any programmes focused on the reduction of single use plastics, for instance, and so on, so and other things related to this?
I'd just like you to prepare if you have already done that. That's great. A very short summary. So one to two paragraphs just to share during the workshop. So there's going to be 1 space during the workshop where the participants, they can share their outputs again same, same as I've mentioned before.
I'm just gonna wait a few more minutes. You're more than welcome to pause this video if you haven't done this activity just to write, this should take between 5:00 to 10:00 minutes.
I think we're ready to start.
So before start here, I'd just like to.
Give just an overview about the type of contents and what it's going to be covered today, so it starts usually with a welcome introduction. I'll talk about carbon footprinting why carbon footprinting is important to business, how to calculate carbon emissions in your organisation. I believe that most of you would be mostly interested about this specific topic. What are the quick wins for reducing your carbon footprint? What are the long term strategies for sustainable business just.
Going to have the opportunity for some discussions, the commitment to action and conclusion and then talking about what's next.
What are the government grants and incentives for energy efficiency and renewable energy adoption?
So before we start, I'd just like to introduce myself. So I've doctor brina galota. I'm a lecture in operations management at Dean, University of Derby and I've been involved with the university for a number of years. So I joined the University of Derby as a staff in 2018 and since then I have worked across different projects within the university. So I've worked.
At ERDF, the carbonised project, the RDF innovate for a project that accompanies Smart Factory project, which was a sub project within the Decomnise project.
And the shared Prosperity fund project, so many other projects across the university and as a consequence, we have created what we call the 12 opportunities on the journey to net zero, which are very practical guides in that SM ES that cover different elements that SM ES. They could focus to reduce their carbon emissions across their operations. And some of them outside their operations as well.
We also have created the low Carbon Business Podcast, so we are going to.
At sign point, all of those different.
Resources that are going to be available to you. So later on during this presentation, I'm going to be mentioning about some of them just mentioned some of my research interests. They are related to sustainability strategies, circular economy, the application of sustainability, net zero concepts apply to SMEs, and I have a little bit of a focus on industry, 4.0 and digitalization as well.
So before we get to the actual cabinet missions and discuss about cabinet missions, I know that I discussed about this topic with.
Little bit more broad death in the net, zero in the Net Zero event net zero pathways event. But before we start I think that is always important to give a bit of a context. So thinking about why net zero is important, why do we talk a lot about net 0 nowadays and why we are talking about carbon footprinting in this presentation.
So of course that we need to start with the basics of basics, so we need to.
Refer to the global scenario of the climate crisis that we are currently facing, so we know that the climate has changed naturally through the heat to the Earth history, but natural causes they cannot explain the particularly rocket warming. See over the last century, according to the United Nations climate body, the Intergovernmental Panel on Climate Change, so the IPCC. So if we look.
To the charts, the one on the left hand side, we can see the temperature of the Earth's surface.
And if we look into the chart from the 2nd in your right hand side, we can see the CO2 levels.
Over the years and we can see that over the last century, the levels of CO2, they have skyrocketed to to certain levels, so very high levels in comparison. We can see that there is been observed an increase in the temperature as well as we can see in the left hand side.
So if we look about to the last year, so 2024, we have already reached the scenario that we call the 1.5 scenario, which when researchers they were studying this so more specifically in 2015 during the Paris agreements, we were defining that the targets to reach 1.5° were in 2100. So we are quite advanced in terms of the temperatures.
And we know that climate change has already had huge effect on the environment. So just include the more frequent and intense extreme weather like heat waves.
Rainfall. So we have observed that we if we look not only in our regions of thinking about the region that we are the region that I am at the moment. So think about the whole region within the dervant. So think about Dharby, matlog and some other cities we had last year actually 2023, you have a lot of rainfalls that I discussed with a little bit more that.
Into the other workshop, but also if we look to examples like.
Or if we look to examples in the United States, or again so many other countries, we have loads of examples of, well, this we have more frequent and intense extreme weather. So thinking about heat waves. So last summer, for instance, in the South of Spain, the temperature was about 40°. This year if we get to the temperature in some regions in Australia, in Brazil.
So we have been experiencing several.
Events of heavy rainfall and heat waves as well, and as a consequence, we know that there is a rapid melting of glaciers and ice sheets as well contributing to sea level rise and declining on the Arctic sea ice. And of course that we know that warmer oceans, they can have a lot of consequences. So including more intense storms, hurricanes, damaged wildlife like coral reefs, coral reefs and etcetera.
So I discussed this a little bit more in depth into the water, the other web than the one focus about the net zero pathways. But this is just to mention that there is an emergency that we are facing a current emergency associated with the climate crisis.
So of course that we discuss a lot the element associated with net zero and before we get to the actual point about how are the ways to calculate your carbon footprint, how to do that, I believe that is important to define what is net zero. So net zero means achieving a balance between the greenhouse gases that we put into the atmosphere and the ones that we are taking out. So the balance or what we call the net zero will happen when the amount of carbon that we add to the atmosphere is no more than the amount that we.
So usually when we are explaining what is net zero, the main analogy is to think about the bat up. So think about what we are adding, what is an input of water and the output of water is like the drain. So what we are saying about that series that we want to keep the level of water in this bathtub in the same level. So the amount that we are removing from.
From the atmosphere should be the same that we are including within the atmosphere, if not in a negative way, so that two main concepts that we discussed a lot within this topic. So one of them is.
Neutrality and the other one is at 0, so just to give a bit of a difference, a definition of those two because they are similar, but they are a little bit different in terms of the applicability of them. So thinking about carbon neutrality, we're thinking about the aspects that are associated with the operational emissions of a company. So that mainly the direct emissions of companies and the things that the companies, they can control very much.
So we are looking so if a business want to become carbon neutral.
The to offset the cabinet directly meet the atmosphere and look at the energy that they are using. So basically we are talking about scope one and scope, two types of emissions, but I'm going to discuss later on what is the meaning of scope one scope 2. But this for now I'm just going to mention this when we are thinking about net zero. We're thinking about companies that want to take a step further, so covering not only the direct but also the indirect.
Emissions from that particular business and involves more up front work to collect and process and process data. So achieving that zero requires more investment and buying from all of the areas of a specific business.
So what we usually say is that cabin neutrality is a good starting point, but that's there should be the ultimate goal from the organisations and currently we discuss a lot in academia. What we say is the need for sustainability. So businesses nowadays they feel that they need to make a transition, so this might be related to SG.
Metrics. This might be related to other aspects at their organisations, so there are several reasons that might justify that.
So this might be because of a consumer preference, for instance so.
According to a research from McKinsey and Neilson, more than 60% of 1 specific survey in 2020, they responded that they would be willing to pay more for a product that would be coming in a sustainable packaging. More specifically, thinking about the United States scenario, more than 78% of the consumers, they mentioned that sustainable life style is.
Important to that and indication from McKinsey is suggests that products that are making ESG related claims average 28% cumulative growth over the past five years period versus 20% of products that made no such claims. So there is an aspect associated with that thinking about the investment side. So there was a report by Morgan and Stanley that found that 85% of individual investors they are interested.
Sustainable investing and early 75% of millennials, they express interest in sustainable investment opportunities.
And investors, they want to know more about the companies, about the values of sustainability as well. Thinking about regulatory pressures. So nowadays thinking about some specific regions. So for instance, the European units or the European Union in 2019 launched and introduced a Green Deal that aims to make Europe the first climate neutral continent by 2050, which includes a lot of strict regulatory regulations on emissions.
Sustainability practises so as part of the European Union Green Deal.
They introduced the circular economy action plan that aims to target how the products they are designed promote circular economy processes, encourages sustainable consumption and aims to ensure that waste is prevented and the resources used are kept into the European Union economy as long as possible. So think about the UK most specifically, just to give one example about the UK. So if you are from.
If you have your, if you're a part of a specific organisation and you want to be part of a larger supply chain, so think about the region that we are like rose price or thinking about the NHS for instance. You need to have sustainability credentials because as part of the sustainable procurement programmes.
That suppliers they need to provide that they have sustainable practises. So there is regulatory pressure, there is a market pressure associated with that.
Thinking about financial performance, so there was a study from the Harvard Business School that indicates that companies that prioritise sustainability report better financially in terms of performance. So firms that adopted sustainable practise, they outperformed and appears an average of 5% in terms of return on equity. And there are even some specific papers that are focused about.
The sustainability practises and what is the impact associated with the financial performance?
Specifically thinking about the operational side of things there is there are a lot of research that indicates that companies that.
Are more sustainable. They have a tendency to be more resilient to changes. So whenever we see a growing market or market that is changed quite constantly, a company that has been doing some practises around sustainability, they are quite likely to succeed in this. So just there are few papers that correlated what was happening during the COVID pandemic.
At the rate of companies that succeeded during that time and the aspects associated with sustainability as well.
Another key impact associated with this is risk mitigation as well. So we know that in a global business landscape marked by constant change, understanding and navigating risks is an integral part of building organisational resilience and solidifying reputation and by incorporating sustainability into operations, the companies can mitigate regulatory risks.
Associated with new environmental laws and compliance requirements. So just to give this example about the European Union, so thinking about the European Union and Green Deal deal and the implication and the of the circular economy practise. So think about like if you have a company that don't have any practises around sustainability is not thinking in terms of circular economy from one day to another, there is a regulation change. So you need to adapt to that. So if you were already doing that, it would be easy.
Just to give another example associated with this, so a few years ago I was working with a company that wanted to change the fuels that they were using, so they were using a fuel that is called red diesel.
And.
There was some rumours and there was some talks about changing the regulations and actually if Philip was in 2023, I think it was in April 2023 and there was a change into the legislation and businesses. They were not allowed anymore to use red diesel. Some more just mentioned some within agricultural landscapes. They could still use that, but not all of the businesses. So a business come to work came to us in 2022.
Asking for alternatives. So we did a feasibility study for that specific company and we helped them to do a study on a few that is called HVO, which is basically a biodiesel plant.
And as a consequence, the company actually ended up saving some money, so about 10% on the fuel and reducing their carbon emissions in 90%. So of course there is a strong element associated with efficiency as well.
Last but not least, there is the aspect associated with talent as well, so that has been a service from 2021 from LinkedIn, indicating that 75% of the job seekers they consider a company's commitment.
Sustainability when they are applying for jobs, so there is a survey from the last year from 2024 from Deloitte with more than 22,000 of people from Gen Z and Gen Y. So millennials in 44 different countries that indicated that more than 70% of the respondents mentioned that they they considered prospective employers, environmental policies and practises.
When they are searching for a job and a quarter of Gen Z and millennials, this mentioned that this has already impacted whether or not they would accept a job and companies they are thinking about this specifically within Gen Z and millennials because companies they are thinking in a strategic way because of course that those, those people, especially Gen Z's, we are thinking about mainly entry level jobs nowadays.
However, companies are already planning for the future, so they are thinking about who are going to be the managers who are going to be going to be the directors.
And 1520 years time. So if you end up losing a good talent because you don't have sterile practises, this is not a very good thing. So again, all the all the different reasons associated with that.
Now I want to get into more specifics around the carbon footprint team.
So before when I was talking about the difference between net zero and carbon neutrality, I was mentioning score one, scope two and SCOPE 3.
So to explain, what are the different scopes, they are quite easy to understand, so scope one is what we call the direct emissions from sources that are an organisation owns or controls. So everything that is happening within within the short floor within a specific organisation. So we're thinking about the cars, the vehicles, that specific organisation has the fuel combustion, the boilers.
At the furnace in the refrigeration leaks, all of those aspects, so things that are directly related to the operations of a specific company.
We think we can, we can think about the scope 2 type of emissions, which are the indirect emissions from the generation of purchased or acquired electricity, steam heat and cooling. So usually it's called bond is the direct emissions scope. Two we're talking about mainly energy. And then we have scope 3, which are the all of the other indirect emissions.
Are occurring in a specific value chain of the organisation and we might be thinking about the upstream and downstream activities, so including emissions from business travel, waste disposal, production, transportation of goods and services, and one of the main discussions that we have in this topic. And again, this is just part of the discussion that we were seeing about carbon neutrality and net zero is that.
Some companies, whenever they are thinking about thinking about sustainability, whenever they're thinking about that serial transition.
They tend to think about what are the easiest steps to do this and what are the most straightforward ways to reduce your carbon emissions. And this includes scope one and scope 2 because it's much easier for you to change the lights that are using to led, for instance, or to change your supplier for electricity to one that is pre environmental or to install some solar panels. So those are things that are in the control of the organisation most of the time.
Scope tree. They tend to be a little bit harder.
And because it involves basically the supply chain of a specific organisation, so you're not accounting for the things that you can actually control, those are the things that are happening elsewhere. And one of the challenges that is associated with that is that most of the company missions of a specific organisation, they are not in the scope one, they are not in the scope. Two, they are within the scope, 3 type of emission and the literature discussed this a lot.
So there are some.
Does that estimate that? If we're thinking about manufacturing companies, we're thinking about 70 to 80% around scope, 3 type of type of emissions. However, one study from McKinsey actually estimated that scope 3 emissions, they are typically representing around 90% of a company's total emissions.
But of course that this this figure can vary from industry and from company. But one of the things that is important to think about is that to achieve their emissions reduction targets, a wide variety of organisations, they have made scope 3 missions.
One of the higher priorities in their agenda.
So of course that there are different ways that companies can reduce that.
So just a SEC.
And I'm going to be discussing about some of those ways to do that later on. So before we get to more details associated with that, I was talking about supply chains and of course that's to understand a little bit more about cabin emissions to understand a little bit more the impact within the value chain of a specific company. It's important to understand the concept around supply chain. So just to give a very brief overview, very brief definition.
Of that, there is a definition of supply chain supply chain management, which is a complete set of approaches.
Used to integrate all of the partners of a supply chain, so including suppliers, manufacturers, distributors, retailers, warehouses and consumers. So basically when we have the landscape including displayers manufacturing, distributor, retailer and consumers, we have a supply chain. Whenever we're thinking about an effective supply chain management, we are thinking about the system that minimises cost, waste and time within the production cycle.
So the industry standards has become the just in time supply chain where retail sales automatically see no replenishment orders to manufacturers.
And retail shelves can then be restocked almost as quickly as products are sold.
And one of the ways that we can improve this is how to analyse data from supply chain partners to see whether improvements they can be made. I was mentioning in terms of.
Time waste and cost. And of course this is very much also related to sustainability as well to carbon emissions as well. So one of the things, one of the roles that I do have at the University of Barbiz teaching topics associated with that and teaching topics on how to reduce the carbon emissions associated to this different stages and I'm going to be covering some of those elements later on today.
Just to give some examples of supply chain. So whenever I'm teaching this to my students, I like to explain that our supply chain can be something as simple as making a cupcake. So phrases, if we have the example from Leah's cupcake show, she is a caterer, so she would need to have the flower. But of course that for us to have the flower does need to come from the wheat for you to have the wheat you need to plant the wheat. So we need to have a producer of the wheat.
We need to have sugar as well. She's getting sugar from sugar cane, so also something that is planted. You need to have butter. Butter, butter is coming from the milk. You need to have eggs. You need to have the cases for that. So understanding what are all of those processes we are talking about a supply chain, but this can be a little bit more complex. So we might be thinking about an aeroplane for instance. So we might be thinking about.
A very complex scenario manufacturing scenario where you have the different parts of the aeroplanes that are made in different places in the world. So then it starts to get a little bit more complex. Before I was mentioning elements associated with upstream and downstream supply chain just to mention this because this is a little bit technical in terms of supply chain management. Whenever we're thinking about the upstream supply chains.
We're thinking about activities that are related to the organisation suppliers.
So maybe purchase goods and services business, travel, fuel and energy related activities, transportation and distribution and more.
Just to mention, the main points associated with upstream supply chain are green procurement, business, travel, fuel energy and Brit transportation and distribution. So those are some ways that companies can reduce their carbon emissions associated with each one of those activities.
I'm just going to leave this slide for a few minutes.
So you can have a look at this. So I just invited invite you to pause this video for just a few minutes to think about the upstream supply chain activities and think about what you're doing at your operations at your organisation. If you're doing things that are good or if there are ways that you can improve the ways that you are doing and this might be thinking about what are the materials that you are using. So for instance, a few years ago, I worked with a company.
An engineering company that was using a lot of steel as part of their operation.
And the seal process generates a lot of carbon emissions. So one of the suggestions that I was giving to this company is to change the source of the seal that they were using. So maybe using secondary waste or recycled waste recycled still would be one possibility for them.
We might have the example of business travel as well, so companies can reduce their amount of business travel. They can encourage more efficient lower meeting modes of travel, thinking about fuel and energy, transportation and distribution as well. I'm just going to leave this slide for just a few minutes in here. Feel free to pause this and to reflect about what your company can do to reduce your emissions on the upstream supply chain.
Thinking about.
Thinking about the downstream supply chain activities, so whenever we're thinking about the downstream supply chain activities, we're thinking about the ones that are post manufacturing, so namely transporting and distributing the product to the final customer and the use of the products and end of life. So there are several ways that companies can reduce that. So think about in the UK, more specifically, if we think about retailers like.
Amazon or or if we think about Tesco, Sainsbury's, Ocado.
Nowadays, it's quite common for us to see the electric delivery vans, but of course this was not a reality a few years ago, so I remember, like about 10 years ago it was not common to see electric vans. Nowadays, they are pretty much all of the ones that are making those deliveries. So in a similar way to what I was asking for you to complete a spot, the upstream supply chain activities, think about your downstream supply chain activities. So what's happening with.
The products that you are manufacturing after you're manufacturing, so how?
Are they transported to your customers? How they are distributed, how they are used? What is the end of life of your products? Do you produce a lot of plastic materials? Do you use a lot of materials that are bland in terms of composition?
So I would just like you to have a few more a few minutes to think about the downstream activities, same as before. Feel free to post this video and to think about the downstream activities of your supply chain.
So moving on now, we guess now that you had some experience on understanding what are your company missions associated with your supply chains, I would just like you to think about what are your main challenges for the transition to a more greener supply chain and how do you think that the collaboration with suppliers, customers and other stakeholders could help to improve the sustainability of your supply chain?
I'd just like you to have a think about this.
Try to think about this within 10 minutes time.
Again, same as before. Feel free to pause this video and come back at this in 10 minutes time.
So one of the things that we'd like to discuss a lot specifically when we're thinking about concepts around operations management is why do we, are we measuring what we are measuring because of course those are relevant elements. So there is a famous quote from Deming that says that if you can measure it, you can manage it. And if you cannot manage it, you cannot improve it.
So of course there are several ways that we can start to measure.
'Cause, it's important to understand the different elements associated with it, because we can think about the material input, we can think about the manufacturing process, the distribution they use, the end of use, and this can be very complex. So I'd just like to mention about different ways for us to calculate our carbon emissions and explain that there are different tools available for that.
So before starting this there's webinar.
I asked you to complete the double double F calculator. The carbon footprint from double double F that's one that is focus around your individual carbon emissions. So have you done that? Have you already completed that? If you haven't done that yet, I just invite you to go back at the first slide and to complete this activity. So I'm just going to give you some time to think about that.
Now that we're back.
Of course, that is important to think about that your carbon footprint gives an indication about your impact in the environment. So which is caused by the burning of fossil fuels like oil and gas.
And this is measured in tonnes of carbon dioxide emitted per year. Carbon dioxide is a greenhouse gas and as such increases global warming. I discussed more about the technical aspects associated with this in the other webinar, so feel free to access the pathways of at zero. We know that different fuels, they meet different volumes of carbon emissions during the production of fuel, the distribution.
Of it's your local forecourt and through driving so.
One of the things that is important to understand is there are.
Front waist to calculate your carbon emissions and there are several tools that would be available for specific scenarios, so WWF and carbon footprint they are ones that are quite interesting for people to understand their carbon emissions. The individual carbon emissions. But if you're thinking about as a company, as an organisation is that is doing this, you can do it in different ways so you can use.
Specific.
So you can use specific services like the UK climate Hub or Zella for instance.
That provide a tailored based and helps you to create a specific dashboard to measure your company missions and think about activities. You can think it from a financial perspective so you can use the calculator from the HSBC. You can use the practises from the greenhouse gas protocol. There is one specifically aimed at SME's that it was designed from Carbon Trust as well.
But of course you can find all of the different.
Conversion factors in the Department for Energy and Security and that's your website as well.
And I'm going to mention now some ways for us to calculate your company missions so.
Just to give one example how to calculate your energy related company, which is how to calculate the carbon emissions associated with your own organisation, you can use the one from the calculator from Carbon Trust. That's a free a calculator and you have the link in the bottom here. So basically it's going to ask you some information. So for doing this activity here.
I filled with information from the University of Derby. So basically I got an electricity bill from the university and I'm having put the data that they were asking me in this form here. So basically they ask you, what is the Bishop type and they ask you what is the amount. So since this I'm just talking about electricity. Of course the unit of measurement in this case it was kWh.
Just to give an example about this. So basically when you have an electricity bill.
Of course that you need. We need to look to specific things. So one of the main things that we need to consider are the units that we are consuming on a specific on a specific bill, so phrases this electricity bill was from October 2023. So you can see that.
This was from the 1st of October of 2023 to the 31st of October of 2023, and the university consumed 5007 seven kilowatt hours.
So understanding kWh is a big part of making sense of your bills on reducing your carbon footprint and keeping an eye on energy costs.
So basically a kWh. So this is just to explain the technical elements around. This is a measure of how much energy you are using. So despite the name, it doesn't mean the number of kilowatts that you were using per hour, so this would be kilowatts per hour. So kWh is a unit of measurement, so one kWh is the amount of energy that you you would use.
If you want to keep a 1000 Watt appliance running for one hour, but we know the different appliances and different products that we had, they use different amounts of energy. So for example an alarm clock uses a lot less power than an electric kettle. So when you look to the prices for energy plants and tariffs of your energy bills, you see that electricity and gas they are measured in kWh.
So understanding that is quite important. So if we were looking.
Just from a conversion element associated with this.
We would only be using the 5877 kilowatts hour and then we would be converting that into carbon emissions, so using the conversion factors from the UK Government, this would get us approximately 1.1 tonnes of CO2 emissions, CO2 equivalent emissions associated with that. So we would assume that those would be the carbon emissions associated with electricity with energy consumption.
At the University of Derby.
There are some things that we need to consider as well as part of the electricity as well.
The University of Derby has one specific tariff that is called the 0 carbon for business, 100% from EDF, which means that technically speaking, the carbon emissions that are associated with the electricity of the university, they are 0. Although researchers disagree and they discuss about the elements, that is not necessarily zero because.
The House, the manager that is lost during the transmission process, we can consider that the cabin missions associated with companies that are using 0 carbon for business electricity, they are 0. So in this case, although the university consume this amount of energy, the total carbon emissions associated with that is 0 because the source of it was net zero.
Another factor that is important for companies to think about when they are reading their electricity bill is a concept that is called the power factor. So if you look into the power information summary, we can see the power factor of the university being 0.8956.
And this is a little bit technical into electrical engineering. So I'm not an expert on this, but I know just some some overviews associated with this. So just to mention power factor is the measure of how effic effectively the incoming power is used in electrical system. High power factor indicates that the power supply to the electrical system is effectively used and a system with low power factor doesn't effectively consume the incoming electric.
Supply and results and losses so.
There is no power factor involved in the C circuits due to 0 frequency, but A/C circuits the value of power is always between zero and one.
So ideally speaking, we want the power factor to be as close to one as possible, meaning that you're using electricity, that you're paying for a very efficient with minimal waste. However, this is not so straightforward because this depends a lot from company to company.
Because if we are looking for instance, a manufacturing manufacturing company.
When we are comparing to a service organisation, usually the power factor of a manufacturing company is going to be lower than than.
Then the service based company and this is related to the types of equipment and the energy demands of the different sectors. So usually when we are thinking about a manufacturing company, we are looking to a power factor of .65 to .85 because this specific type of organisation uses a lot of inductive loads like electric motors, Transformers and welding equipment.
So those devices they draw significant amount of reactive power.
Contribute to a lower back lower power factor.
Service based organisations, they're going to have a bit higher, so thinking about between something between .85 to .95 because they are probably using lights in computers and other office equipments. So those devices, they are mostly resistive in nature and they are less reactive power leading to higher power factor. So thinking about the one from the university, a power factor of .89, this can be considered.
The typical range, but it's slightly in the high side. This might be because.
Of different regions.
Reasons associated with that.
The second.
However, one of the things that I I just like to mention that it's important because.
Apologies for that because you might be thinking oh, but why are you talking about power factor? How is this related to my organisation? So basically a few years ago we did a work with a specific company and this specific company they were based in the big district and they were.
Distributive of a specific product. I'm not going to get into the details of that, but they were just distributing a specific product, so they have a large warehouse where they were keeping that specific product.
They were not manufacturing here in the UK, they were manufactured in China, so they were just storing those products and they were selling those products. OK, fine. They were having massive electricity bills and they didn't understand why they were having massive electricity bills. So they asked us at the university to do an assessment on batten to and try to understand that basically they were part of our.
Smart Factory Smart factory project. So.
What are the first steps of this project was to assess that to understand what are, what were the company missions? What were the power factor? What were the uses of that, and try to understand what was going on. So basically we found out that this organisation previously was a heavy industry, was a heavy manufacturing company. So the power factor was I think it was .65 when in reality.
It could be point 85.9. So this means that means that they would not.
The full electricity that they were paying for, so they were paying more electricity than they had to be paying. So in the end of that they started to save 30% of the electricity. So again, if you are in one facility that used to be part of a heavy manufacturing company. And if you think that your electricity bills, they are too expensive for the service, for the products that you are manufacturing or that you are producing or the things that you are doing.
Have a look at your power factor that this might be a cause of that. And of course there is a direct aspect associated with the company missions as well because if you are.
Show me more electricity than you need. The units. Your your kilowatts up kilowatts hour that you are consuming more than what you should. You should be consuming in the first place.
I'd just like to mention some benchmarks for energy efficiency, because this is something that we are asked a lot because of course we know the different sizes of companies, they tend to have different annual usages of electricity.
So large businesses, they will often have more than 25 employees and use more energy than SM es, especially those with large businesses, premises that are operating across multiple sites.
But of course there are some cases where businesses with less than 2250 employees, they are just going to be as an intensive as all the companies. So thinking about manufacturing companies. So if we were comparing a manufacturing company and a large service based organisation, of course it's very likely that they're going to have average similar annual usage of electricity. So you have a link in here just to see where I'm basing this information.
AME thing will be applied to gas when we are thinking about the use the gas usage as well. One of the things that is important to mention when we are talking about gas usage more specifically about heat.
He's thinking about location because we know that location play a role in business energy consumption, so businesses in code, the climates they may use more heat while those in warmer climates, they may use more air conditioning. So additionally, businesses in rural areas might have higher electricity costs to business in urban areas as well. So again, it's all, as I've mentioned before, it is important that those are just averages and the actual energy consumption of any given business.
Depends. A lot depends on a lot of factors, so to actually.
Assess your business consumption. You can use a utility bill analysis tool or to to hire a qualified energy auditor. As part of this process as well.
One of the fees that I'd like to mention as well is the aspect associated with sustainable business practises as well. So whenever I'm talking about sustainable business practises, I'm talking about strategies and processes that businesses use to reduce environmental impact, increase positive social impacts and create long term value for the stakeholders.
So companies can reduce their greenhouse gas emissions, reduce their energy consumption, travel sustainably, sourcing sustainable materials, reducing waste, conserve water, support for labour practises, and that give back to communities. However, whenever we're thinking about carbon emissions more specifically, we are looking at mainly the ones that are in the green.
Area because we might have examples of companies that are going to have good practises in terms of.
Carbon emissions, but they're not going to be conserving water. They're not going to be supporting fair Labour practises. They're not going to be giving back to the communities.
So just as a quick exercise very quickly.
Have a look online. Just look at your phones. Think about one specific brand of clothes or your choice. This could be Zara, could be Levi's, could be hfm prima. Doesn't matter. Have a look at those.
Look at water that is needed to manufacture a pair of dining, a pair of jeans.
And then look about sustainable practises of this specific organisation.
Try to do this within the next 5 minutes. Again, same as before. Pause this video that is quick that come back.
If you have done that, you will see that a typical pair of jeans take about 3000 litres of water to be manufactured, which is quite a lot and most of those companies, they're going to claim that they're going to have tenable practises. They're going to have reduced greenhouse gas emissions, reduced energy consumption at the same time, they are still using a lot of water.
Think about some quick wings for carbon reduction. So one of the quickest one of the easiest ways for companies to reduce their carbon emissions is around lighting. So energy efficient lighting helps to lower electricity bills and carbon dioxide emissions without reducing the quality of light in a specific business. So if you replace all of the bulbs in your home with LED lights races, you can reduce your carbon emission.
In 50 kilogrammes a year just to give an equivalent, this is equivalent to the common emissions by driving a car for 145 miles. If we're thinking about the household of the household in the UK, lighting makes up to 11% of the UK household electricity consumption. So when you're doing the switch, you can also save money on that.
If we're thinking about organisation, lighting can account between to 20 to 40% of the electricity.
Bills. So when you change it to led, you're making it a little bit more efficient as well because led is they consume around 80% less electricity than any kind of some bulbs and they switch on instantly, unlike fluorescent bulbs as well.
Heating is another element because we know that if we understand how the heating and cooling systems in our workplace operate, you can take advantage of that. So phrases turning off heating and cooling and UN occupied rooms and ensuring windows and doors they are closed when using heating or air conditioning to optimise efficiency. The optimization and regular servicing of boilers is a key thing in this so.
Usually one way of thinking about a typical workplace or typical office or typical office heating would be the most significant energy cost associated with that. So accounting for 40% of the energy used in a non domestic building, which is massive.
So preventing heat loss from topping up insulation and blocking draughts can significantly reduce heating costs, so those are very good ways to start improving energy efficiency.
So a few things for your consideration. So a few things that I would like you just to have a think after finishing.
This webinar here.
Think about when where the heat is a boiler last serviced.
Are there any staff that are using portable heaters? Are the heating and air conditioning operating at the same time in the same place? So place this happens? I've seen this happening before our hot water tanks, boilers and pipes insulated. Have you installed heating reflectors? Do you have smart heating controls? Who is responsible for changing the heating times at a different times of the year?
Are the windows open when the heating is on? So I've seen several businesses, even the University of Derby. Sometimes we see the heat on.
Well, at the same time, we have the windows open, so this is not very efficient.
There are different ways for competitors rediscover emissions. One of the ways is related to paperless, paperless office. So avoid printing all together by encouraging electronic only communications and document storage. So the savings and benefits they can be significant and include productions and paper, paper waste in cartridges and electricity. So thinking about a typical UK office, the workers they would use.
10,000 sheets of a four in an ear and 75% of those would end up in the waist paper bin. So there was an example from Adobe based on a case study from them as a small business in the cafeteria work with less than 10 people gradually went paperless, and in the first year they saved more than 6000 lbs.
In paper, in paper ink cartridges and hardware. So it's massive.
The amount that is reduced and we tend to think that this is a bit irrelevant, but if we look to the bigger picture, we know that this paper has a lot of impacts associated with that. So and whenever I'm talking about Dave, but not only in terms of financial costs, not only in the stationary budget because.
To to make one single shift of V4, it takes 5 litres of water and each of its workers papers usage adds up to 50 thousand, 50,000 litres every year.
So even the small business of 10 also employees is looking half a million of litres annually. So there is the impact of the Pope and the paper industry, which is responsible for around 30 or 40% of the share of industry, would trade globally has the in the woods forests sold 200 million trees are cut down each day to make paper that's on every 2.5 seconds.
So again, there are several benefits of going paperless.
I've mentioned here the element associated with Redis costs, but also eco friendliness because paper can waste energy, contribute to deforestation, release toxic ink and toner into the environment, and also add to landfill. But also it can increase security as well. So cloud based paperless documents management and storage, they are considered to be more secure than physical equivalents. So backups, password security credentials and data encryption. They can help to protect documents.
That a filling cabinet and of course more efficient.
Office space. So if you've ever been to an office that were full of papers, it can be very messy on that second element. That could be quite easy as well. Simply recycling the waste. So implementing a comprehensive waste reduction and recycling programme can decrease the company environmental impact. So encouraging employees to minimise waste and recycle materials wherever possible.
This is just one data here in the UK only 35% of the SMU waste is recycled, so not great low carbon transport. So we're encouraging employees to use public transportation, carpool or to opt for electric or hybrid vehicles as possible.
By promoting sustainable commuting options, your company can reduce the carbon emissions associated with the stuff travel. Another option would be to to increase the remote work as when possible, so remote work.
Not only enhances the work life balance, but reduces the need for employees to commute to the office daily. This leading to decreased covet emissions for transportation and reduce demand for office space. So just to give one example, I after the COVID pandemic, the university changed the work pattern from the staff. So nowadays I go to the office usually like twice in a week. So mainly in the days that I'm teaching in the other days.
I'm working from home like what I'm doing today.
So of course that different people, they're gonna have different concentrations associated with that. But this is just one option.
Now I would like it to have a few minutes to think about the key areas within your company's operations that contribute to carbon emissions or or environmental impact. What is their organisation doing to reduce its carbon footprint? What are the key challenges that are facing to reduce the organisation carbon emissions? So you have AQR code, so basically use your fault pointed to the screen, use the secure code.
And answer those questions. So I'm just going to give you about 10 to 20 minutes to feel.
This activity again just like I mentioned before, feel free to pause this video. Complete this activity and then feel free to move on. I'm just going to add some water.
So as I was mentioning before, if you want to calculate your own carbon emissions, if you want to go through the more technical sides of things, you can always access the conversion factors from the UK they have, they are, they are found within the Department for Energy Security and that's your page. You have the link directly to that.
You be be mindful that this one, for instance, is the one from 2023 and every year the UK releases a new one with the new calculation.
Conversion factors just mention a little bit of the research that we have been doing at the University of Derby. So as part of the FDA's project, we created something that we call the Decarbonized cycle and decarbonise impact will. So basically the decarbonization cycle starts with a collection of data. So the data collection, then we calculate the carbon footprint. We identified emissions by scope, we rank the carbon footprint into different categories we identify.
We develop our action plans. We understand that the communisation interventions and then we evaluate the progress towards the carbon reduction. So basically we use something that we call the carbonised impact will which has six main points including fuels, transport, water, raw materials, waste and emissions. So basically we were asking questions regarding those.
Specific specific topics. So for instance, if we are thinking about.
Are you using any reduced? Maybe none, but we might have roof space. Are we using electricity? Yeah. What is the source of this electricity? So why are you using the electricity for lighting, for heating? For machinery? What are you doing? So, for instance, for lighting. Is it possible to change the lighting to led? Is it? If you're using machinery? So if you're using a compressor, have you done the leak test on that?
If you're using gas, do you have manufacture heating? Do you have? Do you need to have a new controller? What are the other things that are in here?
Thinking about raw materials. So for instance, if you're using widgets, where are you sourcing it from? Can you source it closer? Are you using cardboard boxes? So can you reuse those boxes? If you're using filling, you can use thread where it's cardboard in that. So just give me alternatives to the organisations so this is just to show a little bit of the work that we were doing for some of the organisations. So for instance, for this company in particular.
We did a specific study, so we have the dashboard where the ME emissions by the different categories in here. So we can see in the left hand side the breakdown of the cabin emission. So we can see that 42% they are associated with cost 36 associated with electricity, nine with materials that in the right hand side we can see different scopes that are related. So for this specific organisation, most of the Cabinet missions they were associated with scope one.
So some of the suggestions that we were making to them was the first transition to electric vehicles, considering cutting energy costs and moving to renewables and adapting to circularity principles. So we had some carbon emissions, potential reduction and some cost savings potentials as well. And then we were providing some specific highlights to the organisation. So I'm providing all of the different calculations and explaining what would be the impacts associated with them.
Of course, there are some long term changes for carbon reduction as well.
So some of the things that companies that businesses could do in a long term to reduce their carbon emissions could include include replacing your boiler with a heat pump so heat pumps, they use cleaner electricity and are significantly more efficient than traditional boilers. So you can reduce your business energy usage. So at the moment, the UK Government has is offering grants up to 7.5000.
Pounds of the cost of a heat pump to properties across England and Wales.
O you can click in this link if you don't have one. If you're interested in that, you can click in this link and you can find a little bit more about this. Also the UK has a page dedicated to energy efficient products and there's a specific list provide businesses with government approved energy efficient products to save your business, energy and money. So it has over 8000 products ranging from heating, lighting and building insulation to energy efficient machinery for specific sector.
So same thing, you have the link in here, so you can always click in this link here.
Thinking about longer term changes as well. Again, as I was mentioning before, this involves also the element associated with sustainable supply chains.
So a supply chain that is environmentally friendly can help businesses to reduce their carbon footprint, saving money, promoting a positive public image. And there are different ways that companies can make their supply chain more sustainable, like sourcing products and services from great suppliers, using green energy suppliers, selling low carbon or circular products, creating competitive advantage and meeting the increased demands.
Of consumers that are seeking environmentally friendly products and services.
Last but not least, I like to mention the aspect associated with setting ambitious carbon reduction targets, so establishing clear and measurable carbon reduction goals aligned with the international climate agreements and industry standards. So regulatory regularly tracking progress and continuously refining strategies to achieve those targets.
Those are some of the resources that are available to us, Mason to companies that want to reduce their company emissions, so be certified, for instance, using business of the force for good SME. Climate Hub has a lot of resources associated with that. The exponential road map 1.5 the playbook is a key SM ES Climate Hub resource.
Carbon Trust also has a lot of resources associated with the journey to net zero.
Associated with that me, so I strongly recommend you to explore those different links and those different.
Organisations.
A lot of the things that I was discussing.
Previously today they are related to the pathway to business sustainability. Of course in the other webinar and the one focused about the pathway to net 0I focus about those elements with a little bit more depth. But of course it's important to mention that whenever we're thinking about monitoring our carbon emission.
Doing changes associated with sustainability. We're not. We're not talking about things that are happening from one day to another. All of this is involved in the process. So for instance, the United Nations Global Compact has developed.
A road map that provides guidance for companies on how to integrate sustainability related goals and strategies across the organisation so the best practises they are illustrated and the value that can be created across 5 stages.
Sustainability, integration that are highlighted. So the typical journey of integrating sustainability into organisation follows 5 states, so this model here explains how companies can move from a mostly reactive approach.
Aimed at protecting the brand and reducing risks to a more proactive approach where sustainability become the source of resource optimization and value creation. So despite stage model help to identify corporate functions within the companies that are most important to engage at each step and continue the contributions to functions to make facilitate the progress.
So it starts with.
With the responsible business ethics, ethics of thinking about what are the business ethics of the organisation and how.
Responsible business, what responsible business means for that specific organisation? It can think about decarbonization and resource efficiency. So the aspects that I was discussing today thinking about the carbon calculators, thinking about what are the sources thinking about the materials, all of that thinking about product or service, eco innovation thinking about how you can further move on to that, how you can reduce your use of your products, how you can think about the end of life of your products?
Future fit business models. So when you're not only thinking about the company missions, but you're thinking about the other environmental aspects, you're thinking about what a management you're thinking about, CSR.
You're thinking about the overall contribution to society, and then we have the last step, which are related to sustainable supply chain leadership, where you are leading your specific sector where you have specific sector influence and system transformation in that. And of course, whenever we are talking about a pathway to business sustainability, we're not talking about individual sides of specific.
Organisations we're thinking about the Board of directors. We're thinking about the finance accounting we're thinking about.
The government relations, marketing, branding, performance, management, research, development, strategic planning, supply chain, procurement, engineering, all of the various departments that are part of a specific organisation, again in a similar way to what I was mentioned before, one of the things that SME is they need to have in their mind is the road map to net zero journey. Again, I detailed this a little bit more.
Into the pathways to net zero work webinar, but this is just to mention that.
It starts with the company's thinking about themselves, so thinking about reducing their own emissions again, thinking about what we were discussing in the beginning of today's session about carbon neutrality, about thinking about what are the scope, want, what are the scope 2? How can companies reduce those carbon emissions that when companies decide and they are happy with the efforts that are made, they can start thinking about.
Ways to reduce the value chain emissions.
So thinking about targeting net zero as a first, having emissions in the last 10 years, prioritising planning and reducing scope, tree type of emissions, that means identifying what are your main carbon emissions associated with scope 3, how to reduce them? What are you doing to calculate your company missions and what are the actions that you're doing to do that. Then it goes to integrating climate into business strategies or moving towards products and services that are helping customers.
To avoid remove emissions and implement circular business models.
Last but not least, influencing climate and action in society so.
Accelerating climate action by working with the industry, government and employees in a civil society groups. So funding, quality climate projects, counter balancing remaining residual emissions as well.
Thinking about how we want to see the future clean growth net zero and reimagining the future. So a few years ago Mark Carney, who was the head of the Central Bank of England.
Called into a question about the existence of corporations that don't adhere to the steep emissions reductions required to limit warming in 1.5° basically what he was saying, that those that failed to adopt, they will cease to exist. So since then, the continuing rise of emissions has led to a multi pressures on companies from employees, regulatory bodies and activist investors like the recent success of investors activism at Exxon Mobil.
God is prophecy may soon be coming to pass. So is it possible for corporations to be part of the transformation of change required or will they remain complicit into the status quo? So this is just one of the reflections to think about that.
Just to mention about a few things about some modern resources that we have. So this is part of the hype programme, but this is just important to mention that there is some additional support for SMS so you can go for the DAB Innovation accelerator programme. You can look at the Derby City Council, the East Midlands Chamber of Commerce. They did two and two growth hub. They innovate UK website.
You're gonna have some support from a national level as well, so the clean Growth strategy announced the government's ambition to provide 20 million support to clean technology early stage investment between 2020 and 2013.
Green finance strategies or financial mechanism to produce products and incentives to support response to climate change concerns innovative care, common trust, clean growth, OK, CBI, FSB.
There are some. There are some. There are some specific information about energy efficiency. So for a lot of information on energy efficiency, I strongly advise you to explore the website from the Energy Saving Trust.
They have a lot of gate studies and a deficient resources and run events to help businesses to make informed choices, including supply chain advice. A lot of the things that we were discussing today, they have specific events associated with that small business. Also, smallbusiness.co.uk also provides a range of online energy efficiency news for small business owners, including startups and the government UK Energy technology list. So if you're planning to.
Buy to source a new plant equipment it covers independently, verified energy efficient products like boilers.
Air conditioning, refrigeration equipment. So they have a list of all those products.
Some of the government grant for energy efficiency and really doable energy adoption. So many government schemes offer loans, grants, subsidised energy saving measures to support small business with reducing their impacts on the environment. So they normally help with energy efficient measurements up front. Cost of investing in energy efficient equipment, waste management and reduction initiatives.
Understandable development initiatives. So you have the links to access that you can also click at Grandson Line. So you can see what are the grants that are available from the government and you can find more about energy grants at smallbusiness.co.uk at small business energy grants what's available.
Some solutions for business support for net zero, so this was from AIMA. So working with the Department for Energy Security and it zero. We are supporting training provides to obscure workforce in a range of low carbon energy efficient skills.
To achieve the Uks government targets to be net 0 by 2050, we noted more professionals. They need to be trained to stop, maintain energy efficient measures like insulation, low carbon technology and more. So there are several skills trainings, competitions that.
That IIMA has here for for helping up skilling the workforce at across a range of different work packages. So I have included a few links in here so you have the net zero Accelerator, Midlands net Zero hub.
And you have some links here that you more than welcome to explore. Just mention some of the other University of Derby workshops, digital and green skills modules as part of the high tech programme. So we do have the digital marking marketing skills. We have, the digital transformation skills and we have the pathways to net zero as well.
What is the help that is available from the University of Derby so you can access date steps on the pathway?
And at 0 so you can access this link and you can. We'll see what we're doing in terms of our research, if you click on.
Get a net 0 guide book. You will see the 12 opportunity guides that I was mentioning in the beginning of today's session talking about a lot of different aspects associated with reducing carbon emissions from an SMA perspective. So when we were creating those guides, we aim to create them to.
Smaller organisations, so those are very much focused on SMEs. So thinking about getting carbon savvy, thinking about energy efficiency, think about waste elements, low emission transport, creating a supply chain, green funding and finance, all of those different things, those guides, they are 4 to 5 pages long, so they are not very big. So I'm not asking you to read.
A massive book, so they're just very short with very actionable.
Resources with a lot of links with a lot of resources available on those.
Bad books.
So here you have.
The individual, the individual guides.
Lately we created the 13th opportunity on the journey to net zero as well connect Nature Connected Organisation handbook as well. So again same as before you can access it by clicking in this link in here.
You can always access the resources and request any support that you might have at derbyac.uk/smenet 0 pathways, so you have the link in here so you can always access that.
This is just no review about the things that we have done in the past and some of the things that we are doing as well. So as part of the university, we had a lot of projects associated with low carbon emissions, about decarbonisation. So just giving examples about the low carbon Business Network, the low Carbon Business Podcast, the EDF decarbonise project, the Green interpreters programme, sustainable supply chains programmes.
We partnership with the Cabot Literacy project as well.
And we are changing the way that we are organising the universities, so we have the new Cavendish building that is going to be a very sustainable building that is going to be starting with the university in September and the year the new academic year. So this is just to mention that there are a lot of things that are happening in the region and a lot of things that the University of Derby is doing in terms of sustainability into that zero transition and into movement to a more low carbon future.
So you have the links in here, so if you will have any specific requirements from us. If you want to know how we can support you, you can always access the WACWKS MB S net zero pathways page and then type your query in here.
And just to finish this session today, what's next? So think about what what is your next step on the pathway to net zero and how the University of Derby can help you to achieve this?
Like before, get your mobile phones, use this QR code and then you this is going to lead you to a puzzle it where you can put your input on what is your next next step on the pathway to net zero and how can the university help you to do that.
There are some other resources that are available, so after the session.
If you could just click on the climate change website if you can explore the Stanwell Development Goals page, circular economy future fit net zero pathways, some other resources. They would include the climate change, MIT Climate Portal Podcast, which is a very good podcast. Then it's economics, which is a very good book. The drawdown project has a lot of very good things, very actionable things in terms of.
And net zero discussions Stanwell development goals as D GS circular economy from the LMC Carter Foundation, future fit lots of actionable resources in that decade for action. The ULD net 0 pathways and low Carbon Business Podcast as well.
So just to finish this, we have some jargons in terms of sustainability, so this is just for yourself. So if you were just a bit unsure.
About one specific concept, or if you don't remember what is the meaning of that, you can always come to this list of resources or think about aspects associated with climate change, about sustainable development, about greenhouse gases, carbon footprint, renewable energy, carbon neutrality, net zero. So, for instance, if you don't remember what our greenhouse gases, you can always go back to the source and you can read. So gases that absorb and trap heat from the sun.
In the Earth's atmosphere, including the following gases, carbon dioxide.
Nitrous oxide, hydrofluorocarbons, perflow, carbon, sulphur, exceptlorite and nitrogen trifluoride.
If you have any questions or if you have any comments, feel free to contact me at b.gallotta@derby.ac.uk
So if you can't, as always, you can pause this video. You can get my e-mail address if you have any queries. If you have any questions. If you have any comments, you're more than welcome to send me any comments at my e-mail address.
So again, if you have any questions or comments that we have for you and that's it for me today. So thank you very much. This is the end of the cabinet for trend made easy.
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