Electricity (per kWh) : 0.23 kg CO2e
Petrol (per liter): 2.35 kg CO2e
Water (per 1000 liters): 0.69 kg CO2e
Waste (per kg): 0.80 kg CO2e
Food (per kg): 15.00 kg CO2e (representing a mix of meat and vegetables)
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Each year CO2 production per KWH is expected to go down by 3% per year as
the electricity supplier gets more green energy online:
o
o
o
o
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Year 1: 0.2300 kg CO2e per kWh
Year 2: 0.2231 kg CO2e per kWh
Year 3: 0.2164 kg CO2e per kWh
Year 4: 0.2099 kg CO2e per kWh
Year 5: 0.2036 kg CO2e per kWh
Year 6: 0.1975 kg CO2e per kWh
Year 7: 0.1916 kg CO2e per kWh
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Scope 1: Emissions resulting from on-site activity.
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Scope 2: Emissions arising from purchased electricity.
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Scope 3: Emissions that result from activities in the wider value chain of the
organization, including from products and services purchased by the organization
(upstream) or emissions arising from the use of the organization's products or
services (downstream). Since Scope 3 emissions take place outside the firm's
immediate boundaries, they are difficult to measure accurately but can be
substantial.
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Each hotel room cost $250 per night.
80% of the rooms were booked on average.
This means the hotel made $200 per room per night on average (RevPAR).
Total yearly income, including restaurants and parking, was $41 million.
The hotel’s profit was $6.9 million.
Demand for rooms stays the same.
Prices for rooms, salaries, and most costs do not go up—except for electricity,
which becomes 4% more expensive each year.
The hotel has 500 rooms.
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The hotel's total GHG emissions for the year were 3,023 tonnes of CO2
equivalent (CO2e) right now
Annual Emissions (t CO2e)
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Electricity = 1.6k
Petrol = 43
Water = 28
Waste = 269
Food = 548
Purchasing = 500
Electricity Consumption (kWh)
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Rooms (Airco & Heating) = 3.5 million
Rooms (Other) = 1.5 million
Gym = 45,000
Common Areas = 1.5 million
Restaurants =365,000
Laundry =233,600
Emissions by Scope (t CO2e)
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Scope 1 = 43
Scope 2 = 1.6k
Scope 3 = 1.3k
Installing Solar Panels on the Roof
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The hotel has limited roof space, but it can install solar panels.
These panels will produce 250,000 kWh of electricity per year which represents a
3.62% reduction of your total annual electricity consumption of 6,911,143 KWH
per year. It represents 105,000 kg of CO2 emissions eliminated which is about
2.39% of total annual emissions.
One-time emissions cost: Making and installing the panels adds 300,000 kg of
CO₂ (Scope 3) in the first year. So essentially it only starts working to reduce
emissions in year 4.
Cost: The project costs $500,000, paid off over 20 years at $25,000 per year.
Maintenance: The hotel must also pay $10,000 per year to keep the system
running.
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Total annual cost $35,000 per year.
Switching to LED Lights
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Most guest rooms still use old incandescent bulbs.
Replacing them with LED lights will cut lighting electricity use by 50%.
Lighting electricity accounts for 414,669 kWh per year so this would eliminate
207,334 kWh per year.
Annual CO2 reduction: 207,334 kWh × 0.42 kg CO2/kWh = 87,080 kg CO2
(87.08 tonnes) per year. A one time cost of 10,000 kg CO2 (10 tonnes).
Reduce your total electricity consumption by approximately 3% (207,334 kWh out
of 6,911,143 kWh)
Reduce annual CO2 emissions by about 87 tonnes (approximately 2% of your
total emissions)
Producing the LEDs adds 10,000 kg of CO₂ (one-time impact).
Cost: A one-time payment of $50,000.
No disruption: The installation won’t affect room availability or revenue.
The carbon payback period is less than 2 months (10 tonnes embodied carbon
vs. 87 tonnes annual savings)
The financial payback period would depend on your electricity price, but is
typically 1-3 years for LED lighting upgrades
The one-time carbon cost of 10 tonnes is significantly lower than the annual
savings of 87 tonnes, making this a very effective carbon reduction initiative.