The Supply Chain Sustainability School
FMC makes a ground-breaking commitment on carbon emissions
An Action Sustainability client 1.5 years; FMC Technologies Ltd, launched its Greenshoots Fund on 9th September 2009 with guest of honour, Minister for Enterprise, Energy and Tourism Jim Mather at Offshore Europe (Aberdeen); one of the oil and gas industry's largest exhibitions. An innovative scheme, Greenshoots is designed to partially mitigate the environmental impact resulting from the manufacture, sale and distribution of its core product - large installations known as subsea trees placed below sea level ? used in the extraction of oil and gas.
FMC Technologies has long been committed to carrying out its core values of innovation, collaboration and accountability throughout the areas of the world it operates. The Greenshoots Fund aims to reinforce these established values and develop relationships with communities further, by directly funding local projects to help reduce carbon emissions, and deliver real economic benefits.
Devised by a team at the company's Dunfermline plant and advised by Action Sustainability Director Shaun McCarthy, the Greenshoots Fund will also give FMC Technologies the opportunity to work in partnership with its customers and suppliers, with the view that the Fund will become known, and eventually adopted, more widely throughout the industry.
David Currie, Managing Director, FMC Technologies Ltd explained: "Greenshoots is a very exciting development in the company's corporate responsibility strategy and directly progresses one of our core principles, which is to ensure we are good neighbours wherever we operate.
"Not only does the Greenshoots Fund give us the opportunity to examine the way that we conduct our operations and set us the challenge of reducing our own carbon omissions, but it also allows us to strengthen ties with the local communities on a long-term basis.
"But it is important to recognise that although this in an FMC Technologies initiative, and we as a company will invest in the Fund we are not acting alone, we are also relying on the support of customers to contribute and play their part in the environmental impact associated with the production of oil and gas equipment. And we have been very encouraged by the positive response we have received from colleagues, customers and suppliers internationally."
Revenue will be made available to non-profit organisations which require funding for project which will deliver carbon reduction and economic benefits. Examples of potential projects include local community energy schemes or housing upgrades to create more energy efficient buildings.
The Fund will be managed by a steering group made of representatives from the company's customer base, FMC Technologies staff and experts from the fields of sustainability and finance. The group will be responsible for evaluating applications and awarding funding of up to £50,000 to suitable projects.
Steering group member, Shaun McCarthy from Action Sustainability sees the Fund as an opportunity to get involved in the industry's challenge to examine the way it operates with regards to carbon reduction.
Shaun commented: "In all my work with leading companies, governments and major projects such as the London Olympics, my message is consistent. Organisations that are going to be successful in the future need to start taking responsibility for the impact they have on the environment. Greenshoots is a truly leading edge commitment by FMC Technologies. By setting an example and taking responsibility for their carbon emissions across the whole value chain, they are having a profound impact on their suppliers and customers and benefiting the community around them. This is best practice in corporate responsibility."
Revenue for the fund is being generated from two sources. FMC Technologies will pay a levy on staff air travel, and customers will be given the option to pay a voluntary fee with orders. This fee will be based on a combination of raw material and manufacturing data which will be used to calculate the average carbon emissions resulting from the production of each subsea tree.
The Greenshoots Fund is just one initiative in FMC Technologies ongoing 2007 - 2010 green strategy to reduce its impact on the environment. The business has already achieved a ninety-six per cent recycling rate ? this figure includes waste across the business such as scrap metal, packaging and paper - but it aims to cut the amount of waste it sends to landfill to zero by 2010. In addition, the company's water consumption is set to be reduced by twenty-five per cent, and plans to install a 1.5-megawatt wind turbine to support its renewable energy target has just been confirmed. The turbine will be situated at the Dunfermline plant, and will supply some sixty per cent of the site's electricity, and reduce carbon emissions by around thirty per cent.
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