Transport

Commentary

Background An extra 39 billion miles were travelled by road vehicles in 2001, compared with 1990.i If no action is taken, UK road traffic is predicted to rise by a further third over the next 20 years. Although new vehicle technologies have resulted in a 53% decrease in nitrogen oxides and particulate emissions over the last 15 years, there has been little progress with total carbon dioxide emissions. The small reduction in CO2 emissions per mile in new vehicles is far outweighed by additional vehicles on the road, and the extra distance people now drive.

Context The bank has reported on its transport impacts since 1997, and on the current indicators since 2000. Until 2003, CIS captured information for its business travel mileage and carbon dioxide emissions only.

Business mileage (excluding freight) During 2003, CFS' business mileage decreased by 2.8% (excludes Financial Advisers). Since 2000, business mileage has reduced by 9%,
or 1.7 million miles. For virtually all aspects of business mileage, CFS can accurately track trends. If someone uses a train, plane or their own vehicle, each journey is captured for office-based staff. However, with regard to Financial Advisers,ii accounting systems, whilst improved in 2003, are still not considered sufficiently accurate. The reported impact is extrapolated from the 27% of Financial Advisers (2001: 16%) who supplied an estimate of miles travelled in 2003 whilst undertaking CIS business. This 'voluntary' approach to data capture was developed in 2002, in co-operation with USDAW, the Financial Advisers' trades union. The environmental impact of Financial Advisers is not consolidated with that of the rest of the business, but stated separately. It is hoped that a more robust methodology can be devised, and agreed, in the future.
Business mileage - Bank Total mileage for 2003 has decreased by 11%. Reductions have been observed in mileage from virtually all travel activities.
Business mileage - CIS In 2003, business mileage, excluding Financial Adviser miles, experienced a slight increase (1%). Financial Advisers' reported mileage reduced by 22% in 2003. However, as stated earlier, accounting systems in this area are not yet considered sufficiently robust for definitive conclusions to be drawn.

Carbon dioxide emissions Across CFS, CO2  emissions have remained relatively static since 2000; a 17% fall at the bank has been countered by a 13% increase at CIS (excludes Financial Advisers). The bank's transport CO2 emissions increased slightly  (1%) during 2003, although CO2 emissions per customer account decreased by 7%. At CIS, a 6.9% increase in CO2 emissions during 2003 can be attributed to an increase in air and car travel. CO2 emissions arising from CIS Financial Advisers' travel are estimated to be 10,900 tonnes during 2003.

Other emissions - Bank The reduction in business travel, and improved performance of car hire and bank company car fleets, has reduced sulphur dioxide emissions by 13%, and particulate emissions by 17% in 2003. The combined emissions of nitrogen oxides and volatile organic compounds decreased by 18% (now 4,162kg).

Company cars The bank's company car fleet reduced by 3% (seven vehicles) during 2003 and has fallen by 42% since 1997. Concerned about the emissions of particulates from diesel cars, in 1998 the bank introduced a 'petrol-only' policy (this was despite generally higher CO2 emissions). In 2001, the policy was amended when diesel vehicles fitted with a particulate trap (FAP) became available. The Peugeot diesel FAP range now makes up 74% of the bank's company car fleet.iii The particulate trap works by destroying microscopic particles before they can leave the engine, thus virtually eliminating particulate emissions, which are a major contributor to various lung ailments. Additionally, by switching to the Peugeot 307 FAP range, drivers are on average £600 better off, due to a reduction in fuel costs and 'benefit in kind' preferential taxation. During 2003, the bank re-affirmed, as part of a joint procurement exercise with the rest of the Co-operative Group, that a further order of Peugeot 307 diesel FAP vehicles would be the preferred option. During 2004, opportunities will be explored with suppliers for further reductions in CO2 across CFS. CIS operates a car scheme which, in return for a salary sacrifice, provides vehicles, insurance and servicing for staff who travel more than one thousand business miles per year. There are currently no environmental restrictions on the 533 vehicles in the scheme. CFS will reappraise its car benefits during 2004.

Freight CFS freight activity consists principally of external mail, cheques and cash. Royal Mail (external mail) can provide environmental impact data for that proportion of their business actively derived from CFS. Others, such as Securitas, Sunwins and Securicor, cannot. CIS has experienced a 6% increase in external mail CO2 emissions in 2003, whilst the bank has experienced a 19% increase. Mailings increased by 7.7 million items in 2003; the majority of the rise was associated with increased CFS cross-sales activity Follow this link for details of increased mailings.
 
Car hire During 2003, CFS and the rest of the Co-operative Group entered into a new supplier relationship with Hertz. As part of this contract, CFS has taken steps to restrict staff use of more polluting vehicles (CO2 emissions per hire car vehicle mile decreased by 4%). The advent of this contract has allowed CIS to track car hire mileages for the first time, which were found to be low relative to the bank. During 2003, bank miles travelled in hire cars decreased by 25%.

Alternative fuels Biodiesel is produced from waste vegetable oil. As plants absorb CO2 during their growth cycle, biodiesel has lower net carbon dioxide emissions than fossil fuels, such as standard petrol or diesel. During 2003, CFS identified that the majority of its diesel van fleet could be converted to run on biodiesel. However, while biodiesel production takes place locally, there is no dispenser in the Manchester area. A project will be carried out during 2004 to assess the feasibility of locating biodiesel filling tanks at selected main offices.

Video conferencing Video conferencing facilities are available at five of CFS' main offices. It is has been calculated that use of these facilities negated 304,596 miles of travel, equivalent to 29 tonnes of CO2. Efforts will be made in 2004 to promote increased use of video conferencing. During 2003, the bank held a total of 79 meetings using video conferencing, with an average of five attendees at each. The facilities were used 31% less than in 2002. At CIS, an average of four members of staff attended a total of 96 meetings using the video conferencing facilities.

Personal travel During 2003, 87 season ticket loans were taken up by bank staff. Uptake of loans has fallen each year since 1997, when 213 were taken out. During 2003, 325 season ticket loans were taken up by CIS staff. The bank has not achieved its target to research and introduce a secure car share scheme for staff commuter travel. However, the CIS car share scheme is now available to bank staff based at CIS premises. The CIS car share scheme has an average of 25 users per day.

Car parking During 2003, the bank sought planning permission for two car parks, one at the Pyramid, Stockport, and one at Salford. In both instances, these are options of last resort and are a business necessity, as both sites
are poorly served by public transport. At the Pyramid, Stockport, planning permission has been granted for 95 additional car park spaces. This is subject to the implementation of Section 106 requirements,iv such as the development of a staff travel plan. Additionally, the bank will be required to fund improvements to public transport facilities in the Stockport area. At Salford, a proposal to extend the car park by a further 70 spaces, using wasteland adjacent to Olympic House, is currently awaiting planning permission. It is proposed that youth recreation facilities will form part of the development, with some of the land being used as a football pitch and skate park.

Motor insurance In 2003, CIS started to conduct an environmental cost/benefit analysis of motor insurance claims, in partnership with Forum for the Future. Unfortunately, personnel changes at Forum have led to a delay in completing this project and, as such, efforts to quantify environmental impacts associated with insurance products are not yet complete.

 By comparison, according to their Sustainability Report 2002, Credit Suisse Group air travel amounts to 3,183km per employee (cf. 142km per employee at CFS). It should be noted that Credit Suisse Group has operations worldwide, whilst CFS is largely UK-based.

Sustainability value analysis

• Annual cost of providing interest-free season ticket loans totalling £343,235 (£128,230 for bank, £215,005 for CIS) is £14,829, based on a discount rate of 8%.

i www.defra.gov.uk/environment/statistics/supp/index.htm
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ii Financial Advisers act as a large, home-service sales force. They spend most of their time working away from the office, either working from their own homes, or in customers' homes.
iii www.peugeot.co.uk
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iv Section 106 of the Town and Country Planning Act 1990 is designed to ensure that the impact of a proposed development is minimised. This can be achieved via a request for investment in local infrastructure. For example, a proposal for a car park extension might have to be accompanied by investment in local public transport.