Under its Environmental Innovation initiatives, JLR has set targets to reduce the climate change impact of its vehicles and operational processes.
Investment in new product technology, research and development is driving a targeted reduction of European fleet average tailpipe CO2 emissions by 25 percent by 2015*.
And whilst emissions from vehicle use account for some 85 percent of a car's carbon footprint throughout its lifecycle, carbon reduction can also be achieved in other areas: JLR is working towards a 25 percent reduction in operating CO2 emissions, a 25 percent reduction in waste to landfill and a 10 percent drop in water consumption by the end of 2012*.
CO2 offsetting is a central pillar of JLR's overall carbon management plan.
 While the company strives to develop lower emission vehicles and more efficient manufacturing processes, offsetting provides a crucial balance by investing in projects that help reduce emissions in other parts of the world. It also enables customers to compensate for emissions from using their Jaguar or Land Rover vehicle, either through a bespoke programme from the Land Rover brand, or an online, voluntary service for the Jaguar brand.
Launched in 2006 for the Land Rover brand, the JLR offset programme is run in conjunction with ClimateCare, through whom JLR prioritises investment into renewable energy, energy efficiency and clean technology projects. "We estimate that our programme will offset approximately 3 million tonnes of CO2 by the end of 2012," says Fran Leedham, head of environment and sustainability at Jaguar Land Rover. The Jaguar brand joined the programme in April 2009.
 All manufacturing assembly CO2 emissions from JLR facilities at Castle Bromwich, Halewood and Solihull are offset. In 2010, this totalled 275,000 tonnes of CO2.
The programme currently invests in more than 50 diverse offset projects in 15 countries worldwide. These include wind and hydro power projects, and the provision of clean and efficient cooking stoves. All such projects are subject to rigorous validation and verification to ensure that emissions reductions are achieved. Projects follow United Nations protocols for carbon offsetting and, where applicable, comply with The Gold Standard, Voluntary Carbon Standard and Social Carbon Standard.
An operating committee, chaired by Forum for the Future and including representatives from Jaguar Land Rover and ClimateCare, meets on a quarterly basis to review progress.
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Customer engagement
Land Rover customers in 10 countries across the UK, Europe, Middle East and Asia (representing around 40 percent of 2010 global sales) have the first 45,000 miles/72,000 km of driving their new vehicles offset. In non-participating countries, customers can also elect to offset emissions directly with offset partner ClimateCare. Jaguar offers customers the opportunity to offset via their global website. In combination, the JLR offset programme is one of the largest retail-based programmes in the world.
The aim of the programme is to reduce levels of greenhouse gases in the atmosphere but clear additional benefits come in the form of helping to alleviate poverty, providing substantial health benefits and promoting biodiversity.
Veronica Ochiltree, Jaguar Land Rover project manager at ClimateCare, explains, "If selected and structured carefully, carbon reduction programmes can also make a real difference to people's lives. The health of approx 1.2 million people has been improved through JLR's fuel-efficient stoves programme alone. The Jaguar Land Rover offset programme is a class-leading initiative, which tackles both CO2 emissions, public health issues and poverty on a global scale."
Global CO2 offset projects
The JLR offset programme portfolio supports 12 wind projects worldwide producing more than 1.4 million MWhs of electricity, helping drive investment in alternative, clean energy. This portfolio strategy for wind power generation also enables:
- Reduced greenhouse gas emissions and the promotion of environmental stewardship.
- Promotion of long-term energy security.
- Provision of a viable alternative to fossil fuels, promoting sustained economic growth.
- Increased investor confidence and a raised profile of wind power (and other renewable energies) within the market.
Biomass energy production projects account for more than 900,000 tonnes of emission reductions in the JLR portfolio. Technologies have been developed so that waste biomass (organic matter found in trees, agricultural crops and urban waste) can be burnt and the power harnessed for electricity generation, heating or steam production.
In Mahapalli, in the state of Chhattisgarh in India, carbon finance from JLR has enabled the installation of a new 10MW biomass power plant to make use of the region's large volume of waste rice husk and other crop residues. Electricity is generated from the waste biomass and fed into the local grid. As well as reducing emissions of CO2 these kind of projects also:
- Decentralise power production, reducing transmission and distribution losses and improving reliability of supply in rural areas.
- Bring socio-economic benefits to rural populations who provide the waste biomass.
- Reduce soot and SO2 emissions associated with generating electricity through coal combustion.
- Reduce methane emissions and local water pollution from the decomposing biomass waste.
- Create higher value jobs from the building and maintenance of the biomass facilities.
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* based off 2007 levels
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