Virgin

Sector: Corporate

Employees:

Over 25,000 people in more than 200 companies worldwide.

TARGETS

> Plans to invest $3 billion in renewable energy initiatives from 2006-2016.
> Plans to invest $400 million in renewable energy projects from 2006-2009.
> Partnership with global aviation industry to reduce 150 tonnes CO₂e per year.

Achievements

> Pendolino electromagnetic tilt train with regenerative braking returns 17% of the electricity consumed back to the National Grid.
> Establishment of recycling facilities at Virgin-operated train stations, with over 1 tonne of paper a week collected at Crewe station alone. 
> Virgin Atlantic Global Flyer carbon-composite jet which consumes less fuel per hour than an SUV.

Benefits

> Virgin Atlantic has achieved reductions in operational fuel costs through investing in techniques to lighten the weight of aircraft and reduce amounts of fuel needed. 

Low Carbon Solutions

Background

From the initial establishment of the Virgin Records music shop in 1972, the UK-based Virgin Group has grown to comprise of 200 companies worldwide and employs over 25,000 people. In 2006, the head of the Virgin Group, Sir Richard Branson, committed $3 billion over the next 10 years to fight climate change. Virgin became a Climate Group member in October 2006.

Aviation is a globally significant industry, emitting about 2% of global CO₂ emissions annually, and generating about 8% of the world’s GDP. Since its establishment in 1984, Virgin Atlantic Airways’ fleet has grown to 36 vessels flying to 31 destinations (2006) and has become Britain’s second-largest aircraft carrier with a turnover of over £1.9 million reported for 2005/2006. Virgin is working to increase airline energy efficiency by reducing the weight of the aircraft in the air through a range of strategies, including: using lighter paint to cover the aircraft surface; creating lighter fittings onboard; changing oxygen bottles and cargo bins from metal to lighter, stronger carbon fibre; and even seeking to remove empty champagne and beer bottles before leaving the stand, so they can be recycled. The airline is also employing methods that reduce unnecessary fuel-burn, like the “Continuous Descent Approach”. By starting final descent much earlier from high altitude, pilots are able to set up a slow, smooth landing approach with a more efficient speed requiring less fuel – and consequently reducing carbon emissions. Virgin Atlantic is also evaluating alternative construction materials to be used for the aircraft body, and has successfully developed a prototype carbon-composite jet known as the Virgin Atlantic Global Flyer. Operating at very high altitudes, the jet has flown around the world while consuming less fuel per hour than an SUV. Virgin considers the Global Flyer to be a precursor to the high energy efficiency aircraft that will be introduced to the market within the next 20 years.

As an alternative to the domestic UK aviation industry, Virgin became involved in developing a low carbon energy efficient long-distance rail service in 1997 to be competitive with air service. The result of this project was the Pendolino, an all-aluminium electromagnetic tilt train with regenerative brakes built by Alstom. The regenerative design uses brake friction to create electricity, and can return 17% of the electricity consumed back to the National Grid. Carbon benefits from this design can by quite significant, with Pendolino service between London and Glasgow emitting 9 times less CO₂ per passenger than the equivalent Boeing 737 flight.

Virgin is actively developing a business model for the 21st century that incorporates energy consumption and carbon output; a strategy called the Gaia Capitalism Project. Since 1999, all Virgin Group companies have adjusted their business models to reflect the anticipation that energy prices will rise dramatically, regardless of the actual price of oil. The Gaia Capitalism Project is Virgin Group’s overall business strategy for managing investments in renewable energy, potentially supporting bioethanol, biodiesel, wind power, solar, or even small-scale nuclear projects. Additionally, individual members of the Virgin Group have their own environmental initiatives, such Virgin Atlantic’s Corporate Responsibility Policy and Strategy for Environmental Sustainability that focuses on improving fuel efficiency and reducing emissions.

To involve customers in strategies to reduce the airline’s carbon footprint, Virgin Atlantic plans to announce a new scheme in 2007 in which passengers can choose to offset emissions from their flights.

In December 2006, Branson proposed several new strategies the aviation industry could implement that have the potential to eliminate of over 150 million tonnes of carbon emissions a year (roughly 25% of the aviation industry’s total annual emissions). One of the most effective strategies he suggests involves establishing “starting grids” to manage all aircraft departures. These holding areas, close to the runway, would enable the aircraft to be towed nearer the runway before takeoff - thus reducing the amount of fuel needed for taxiing. Branson estimates that such measures would reduce pre-takeoff fuel consumption and on-the- ground carbon emissions for Virgin Atlantic aircraft by over 50% at London’s Heathrow airport, and by almost 90% for Virgin Atlantic aircraft at New York’s JFK Airport. As a further benefit, aircraft flying from JFK to Heathrow could carry almost 2 tonnes less weight in the air; burning less fuel and reducing CO₂ emissions further. Branson also called for a single European air traffic control centre (to replace the current 35 separate centres) which could optimise air routings and further improve environmental performance. Savings in fuel costs could be reinvested into additional innovations to improve efficiency, reduce costs for passengers, and cut additional carbon emissions. 

In September 2006, Sir Richard Branson announced plans to invest $3 billion in renewable energy initiatives over the next ten years as part of the Gaia Capitalism Project. These funds will be managed under the new investment unit Virgin Fuels, which is set to invest up to $400 million in renewable energy projects over three years. Virgin Fuels has already committed to two biofuel investments; allocating $75 million to Cilion of California, and $40 million to EGP of Tennessee.

Virgin Trains is owned jointly between Virgin Management (51%) and Stagecoach Group (49%) and is managed through a joint board called Virgin Rail Group. Virgin Rail Group holds the two franchises West Coast Trains Ltd and CrossCountry Trains Ltd, and travels roughly 31.6 million miles throughout Britain every year. Of internally generated waste, Virgin Trains estimates that about 60% of onboard waste is paper and cardboard and about 80% of office waste is paper. Recycling facilities have been established at 6 of the 17 Virgin run stations, and plans are being developed to increase the number of facilities. The pilot recycling facility was established at Crewe in 2003, which now recycles roughly 1 tonne of waste paper and cardboard a week. Where Virgin Trains disposes of waste at stations not under their management, it works with other train operating companies to encourage the establishment of recycling facilities. Virgin Trains also encourages waste reduction in its supply chain by working with food supplier Rail Gourmet on measures including: streamlining food delivery; establishing cardboard recycling at 4 of the largest Rail Gourmet depots; providing reusable plastic boxes to replace cardboard or polystyrene boxes; and replacing previously unrecyclable plastic snack boxes with 95% recyclable material. To further reduce office waste, Virgin Trains recycles used printer cartridges from its offices; donating the proceeds to charity.

Virgin Mobile also focuses on recycling office and supports Fonebak recycling programmes for mobile phones and accessories, and provides free, pre-paid envelopes in Virgin Megastores and online at Virgin Mobile’s main website.