Product Owner: De La Rue
Describe the project
De La Rue has introduced a service that enables all customers to offset the carbon impact of their banknotes in a way that is simple and easy for the central bank. This service made history when the Central Bank of Samoa issued the world’s first carbon-neutral banknote to celebrate the XVI Pacific Games in 2019.
Carbon offsetting is a way that central banks can offset the carbon impact of the production, distribution, circulation and destruction of their banknotes.
The process is non-trivial, requiring an internationally recognised environmental impact assessment, specifically tailored for De La Rue by Thinkstep, across the six main stages of the life of a banknote (raw material production, substrate production, printing, transportation, circulation and end-of-life disposal). The assessment covers two main impact factors: the global warming potential (kg of CO2 equivalent) and non-renewable primary energy demand (MJ). It also considers four additional impact indicators: abiotic resource depletion potential, acidificaiton potential, eutrophication potential and photochemical ozone creation potential. The central bank is provided with an assessment report that can be shared with interested parties.
De La Rue then works with the central bank to identify and invest in a certified project (either via Carbon Footprint Ltd or direct in country) that meets the Quality Assurance Standard (QAS) for carbon offsetting, which requires a rigorous Third party audit. De La Rue then provides the central bank with a certificate acknowledging the tonnes of carbon dioxide that have been offset, issued by the Carbon Footprint organisation.
Date the project was implemented
Sustainability project locations
The scope of this service is global. The environmental impact assessment tool covers De La Rue manufacturing sites in the UK, Malta, Sri Lanka and Kenya. Furthermore the service is set up so that it can extend to any central bank location; the high level classifications required to run the assessments (e.g. country, region, cash cycle environment and size of country) has already been mapped for every central bank.
The first bank to partner with De La Rue was the Central Bank of Samoa, choosing the VCS (688) certified Indonesia Geothermal Power Project to offset the carbon footprint of their commemorative banknotes.
Commitment to sustainability
The carbon offsetting solution is consistent with our commitment to provide central banks with banknotes that have the lowest possible impact on the environment. For several years now De La Rue has been measuring and monitoring the environmental impact of banknotes. Multiple studies now indicate that polymer banknotes have a lower overall environmental impact than paper banknotes, in part due their greater durability and consequent longer life times. De La Rue’s Safeguard therefore has an important role to play in this area. When combined with the free of charge UK recycling service that De La Rue can facilitate (and considering that banknotes are rarely thrown away so will eventually get returned to the central bank) there is the potential to produce banknotes that are significantly more sustainable than they have ever been before.
All De La Rue manufacturing sites have achieved ISO14001 accreditation for their environmental management systems.
Conserve or manage energy, water, or other resources
The project helps to conserve and manage CO2 emissions. One carbon offset means compensating for emitting one tonne of CO2 into the atmosphere by preventing a tonne of CO2 from entering the atmosphere elsewhere on Earth (e.g. investing in renewable energy) or by removing a tonne of CO2 (e.g. planting trees). So the carbon footprint impact of De La Rue’s activities are directly compensated for elsewhere via third parties.
Offering a carbon offsetting service to central banks encourages maximum scrutiny of the carbon impact of De La Rue processes and products. Measuring and monitoring this area makes it easier to identify where to focus for future impact and the cost of carbon offsetting encourages a focus on reducing the carbon impact further.
Environmental consideration(s) generated from implementation
There is now considerable evidence in place that the CO2 produced whilst burning fossil fuels to provide energy is the main contributing factor towards global warming. Whilst it isn’t possible to avoid CO2 emissions during the manufacture, distribution, circulation and end-of-life decisions associated with banknote production it is possible to mitigate against that impact and plan ahead for decisions that can reduce that impact.
The tangible results of the project
The Central Bank of Samoa issued the world’s first carbon neutral banknote.
49.2 tonnes of carbon dioxide was offset for the 1 million commemorative Safeguard 10 Tala banknotes.
A geothermal power generation project in Indonesia was supported.
https://www.carbonfootprint.com/vcs_indonesia_geothermal.html
De La Rue has set up the tools and processes are set up to enable any other central bank to offset the carbon associated with their banknote production at De La Rue via this carbon offsetting service.
How does the project reduce harm to the environment?
Carbon offsetting reduces the impact on the environment by off-setting the carbon generated by a particular activity. The De La Rue Carbon Neutral Banknote Service calculates the carbon impact of banknote production – and can do this for the substrate only, the finished printed banknotes or the full production, circulation and end of life process. Through the focus on carbon impact central banks can choose to implement lower carbon emission decisions, such as substrate or method of destruction for a banknote. For instance Safeguard polymer banknotes can be fully recycled or more advanced forecasting of banknote demand can facilitate sea shipments and reduce the need for more impactful freight options such as ‘urgent’ orders by air.
The De La Rue service offers banks the ability to choose a project that compliments their own sustainability goals, whether that be a regional or national project.
Feedback from Stakeholders, Including the General Public
Governor of the Central Bank of Samoa, Maiava Atalina Emma Ainuu-Enari, commented: “We are extremely proud of the new commemorative banknote created to commemorate the XVI Pacific Games 2019 being hosted in Samoa, and are thankful to De La Rue for their close collaboration throughout this project and supporting us in developing our first carbon neutral banknote.”
In the Samoa Observer on 24th June 2019:
- The Minister of Finance Sili Epa Tuiti said “this banknote marks not only an important milestone for the Central Bank towards Samoa’s evolution for Samoa’s currency, but for the nation as well”
- Minister and Pacific Games Committee Chairman, Loau Keneti Sio said “No doubt this is a great milestone and I trust this will promote Samoa for miles, through this banknote and the Games to the countries overseas.”
The carbon offsetting solution is consistent with our commitment to provide central banks with banknotes that have the lowest possible impact on the environment. For several years now De La Rue has been measuring and monitoring the environmental impact of banknotes. Multiple studies now indicate that polymer banknotes have a lower overall environmental impact than paper banknotes, in part due their greater durability and consequent longer life times. De La Rue’s Safeguard therefore has an important role to play in this area. When combined with the free of charge UK recycling service that De La Rue can facilitate (and considering that banknotes are rarely thrown away so will eventually get returned to the central bank) there is the potential to produce banknotes that are significantly more sustainable than they have ever been before.
All De La Rue manufacturing sites have achieved ISO14001 accreditation for their environmental management systems.
Conserve or manage energy, water, or other resources
The project helps to conserve and manage CO2 emissions. One carbon offset means compensating for emitting one tonne of CO2 into the atmosphere by preventing a tonne of CO2 from entering the atmosphere elsewhere on Earth (e.g. investing in renewable energy) or by removing a tonne of CO2 (e.g. planting trees). So the carbon footprint impact of De La Rue’s activities are directly compensated for elsewhere via third parties.
Offering a carbon offsetting service to central banks encourages maximum scrutiny of the carbon impact of De La Rue processes and products. Measuring and monitoring this area makes it easier to identify where to focus for future impact and the cost of carbon offsetting encourages a focus on reducing the carbon impact further.
Environmental consideration(s) generated from implementation
There is now considerable evidence in place that the CO2 produced whilst burning fossil fuels to provide energy is the main contributing factor towards global warming. Whilst it isn’t possible to avoid CO2 emissions during the manufacture, distribution, circulation and end-of-life decisions associated with banknote production it is possible to mitigate against that impact and plan ahead for decisions that can reduce that impact.
The tangible results of the project
The Central Bank of Samoa issued the world’s first carbon neutral banknote.
49.2 tonnes of carbon dioxide was offset for the 1 million commemorative Safeguard 10 Tala banknotes.
A geothermal power generation project in Indonesia was supported.
https://www.carbonfootprint.com/vcs_indonesia_geothermal.html
De La Rue has set up the tools and processes are set up to enable any other central bank to offset the carbon associated with their banknote production at De La Rue via this carbon offsetting service.
How does the project reduce harm to the environment?
Carbon offsetting reduces the impact on the environment by off-setting the carbon generated by a particular activity. The De La Rue Carbon Neutral Banknote Service calculates the carbon impact of banknote production – and can do this for the substrate only, the finished printed banknotes or the full production, circulation and end of life process. Through the focus on carbon impact central banks can choose to implement lower carbon emission decisions, such as substrate or method of destruction for a banknote. For instance Safeguard polymer banknotes can be fully recycled or more advanced forecasting of banknote demand can facilitate sea shipments and reduce the need for more impactful freight options such as ‘urgent’ orders by air.
The De La Rue service offers banks the ability to choose a project that compliments their own sustainability goals, whether that be a regional or national project.
Feedback from Stakeholders, Including the General Public
Governor of the Central Bank of Samoa, Maiava Atalina Emma Ainuu-Enari, commented: “We are extremely proud of the new commemorative banknote created to commemorate the XVI Pacific Games 2019 being hosted in Samoa, and are thankful to De La Rue for their close collaboration throughout this project and supporting us in developing our first carbon neutral banknote.”
In the Samoa Observer on 24th June 2019:
- The Minister of Finance Sili Epa Tuiti said “this banknote marks not only an important milestone for the Central Bank towards Samoa’s evolution for Samoa’s currency, but for the nation as well”
- Minister and Pacific Games Committee Chairman, Loau Keneti Sio said “No doubt this is a great milestone and I trust this will promote Samoa for miles, through this banknote and the Games to the countries overseas.”
