Carbon Accounting and the Importance of Having a Strategy in Place

Background 

Carbon or CO2 emissions are released into the atmosphere when we use carbon based fossil fuels, principally coal, oil and gas. Climate science is firmly of the opinion that these CO2 emissions are the root cause of global warming and that minimising them is essential to prevent irreversible environmental damage. 

What is a corporate carbon footprint? 

A corporate carbon footprint is a measure of the amount of CO2 released into the atmosphere by the day-to-day activities of a business over a given period of time. Carbon accounting and footprinting provide businesses with a means to measure, monitor and report on CO2 emissions and carbon reduction strategies. 

Why are carbon emissions important? 

The Climate Change Act of 2008 mandates the UK Government to implement policies that will deliver a 34% reduction in CO2 emissions from 1990 levels by 2020. The Government wants to stimulate UK wide business investment in energy efficiency technologies and the CRC Energy Efficiency Scheme is a comprehensive piece of legislation that targets large energy users. It requires organisations that spend over £500k per annum on electricity, to implement CO2 reduction strategies in line with the 2020 target. The CRC covers large corporates and all of the public sector. It is anticipated that he CRC will be extended to the SME sector as the scheme develops. 

Why should a business measure and manage its carbon emissions? 

There are four main reasons: 

1)    Energy prices are rising rapidly and are forecast to double by 2020. Controlling energy price risk is now vital for all sizes of business.

2)    Understanding how you use energy and generate carbon emissions enables you to assess energy usage and identify energy efficiency measures. Substantial sums of money are involved - a carbon saving is a cost saving!

3)    It is anticipated that the CRC will be extended to regulate the SME sector, and

4)    Many large businesses and all Government departments now require suppliers to have carbon management and reduction strategies in place. 

What can Orchard Growth Partners do to help you? 

Orchard has devised some simple methodologies to help you measure and manage your carbon footprint. Using a mixture of our own expertise and trusted partners we can offer following services 

• Carbon footprinting – Measuring, managing and reducing your carbon footprint (MMR)
• Energy reduction strategies - identification, costing, prioritisation and payback
• Strategic advice – engaging with customers, key stakeholders, suppliers and competitors
• Corporate finance – looking at the wider opportunities provided by a green investment strategy
• Tax – identifying any available tax incentives and devising a strategy to take advantage of these
• Carbon audits – independent verification of your Carbon footprint for third parties
• People management – change management skills to ensure successful implementation of sustainability strategies 

These services can enable a business to successfully implement a sustainability strategy that offers real competitive advantage and bottom line benefits through the measurement and management of its Carbon footprint. 

For a free no obligation discussion contact Andrew Hine on 0845 3700 303 or andrewh@orchardgrowth.com.