Reducing CO2 emissions

Andrew McCormick has just sent me a case study that he has put togther to show how employing local subcontractors reduces the carbon footprint of the project and helps the local economy.
In delivering to the Decent Homes objectives, H&P addressed both environmental sustainability as well as strong local economic development through the use of local people and businesses.As part of our training and skills plans, H&P are using the Government-recognised ‘LM3’ methodology to measure our local economic impact. LM3 stands for ‘Local Multiplier 3’ and calculates how H&P’s business activities directly generate income for the local economy, in terms of both salaries to local people as well as payments to local businesses. Use of the LM3 methodology enables H&P to maximise the local economic benefits of every pound the company earns. The LM3 score for this project is 2.00, which means that every pound we budgeted for this project generated an additional pound for the local economy, or double the original value of the project. This high score was achieved due to our active local recruitment strategy for the project as well as our approach to developing a local supply base for our projects. The breakdown of our LM3 score for this project is:

Round 1: £535,000 [H&P budget]
Round 2: £317,177 [Direct spend on local staff and suppliers]
Round 3: £219,187 [Local expenditure by H&P’s staff/suppliers]
Total: £1,071,364 [Total of all Rounds]
LM3: 2.00 [Local multiplier effect]

H&P cut its CO2 emissions by four-fifths in comparison to a similar project carried out in Goole. H&P attained this significant reduction through the company’s extensive localisation of labour and suppliers. H&P can support carbon reduction alongside local economic development in any locality by applying the same approaches to the localisation of labour and suppliers used for Places for People. Furthermore, H&P has the capacity to measure both its economic and environmental impacts, which allows the company to maximise both its local multiplier effect as well as its environmental sustainability over the course of the project.
In defining what constituted a local supplier we analysed the location of each supplier by postcode. The figures were as follows:

Number of suppliers/subcontractors: 1
Within a 0-5 mile radius of the site: 105
Within a 5-10 mile radius of the site: 6
Within a 10-30 mile radius of the site: 123