At the Rio+ 20 Earth Summit this summer, Nick Clegg announced the Mandatory GHG Emissions Scheme. Is it relevant for your business? What do you have to do?
The Mandatory Emissions Reporting Scheme will become compulsory for approximately 1400 businesses listed on the London Stock Exchange, to measure and report their GHG emissions from April 2013. The UK is the first country to implement such a scheme, as another tool to help achieve ambitious carbon reduction targets of 50% by 2025 and 80% by 2050.
DOES IT APPLY TO ME?
Only to companies listed on the Main Market of the London Stock Exchange. In other words, a company that is UK incorporated and whose equity share capital is officially listed by UKLA; or is officially listed in an EEA State; or is admitted to dealing on either the New York Stock Exchange or Nasdaq. The scheme excludes non-UK registered companies, privately owned companies or companies listed on the Alternative Investment Market.
If you are unsure whether your company is a quoted company, you may wish to check with your finance director.
You may not be in this group, but you may still be interested in what it means for business, so read on.
WHAT AM I REPORTING?
The Mandatory Emissions Reporting Scheme requires companies to publish annual reports of greenhouse gas emissions to meet specified requirements. These include:
- All six Greenhouse Gases (GHGs) as defined by the Kyoto Protocol measured in CO2 equivalent.
- Both scope 1 (direct) and scope 2 (indirect emissions from purchased electricity, heat and cooling) emissions.
- Reporting of global emissions by listed companies and not just UK emissions.
HOW AND WHERE DO I GO ABOUT REPORTING?
How: Many companies are already voluntarily striving to reduce their GHG emissions. If you’re a WECC member, you’re already doing this and well prepared. However, if this is new to your business, or you require more information, DEFRA has provided a guidance report which you can find here. As we know from our experience in the region, WECC, it is important to be prepared for carbon reporting by ensuring you have the necessary systems, procedures and resources in place.
Where: Your GHG emissions should be reported in the Director’s report of the Annual Report and Accounts.
WHEN DO I HAVE TO REPORT?
The regulations are expected to come into force for reporting years ending after 6th April 2013. It is expected that emissions will be first reported in the 2013/2014 annual company reports.
WHAT’S IN IT FOR ME
Reporting GHG emissions allows your company to engage with your stakeholders around future climate risk and energy security. According to the Carbon Disclosure Project (CDP), 37% of companies are now reporting ‘physical risks’ from climate change such as extreme weather events. This shows an increasing trend by 17% from 2010.
WHAT IF I DON’T REPORT?
As yet, there has been no mention of enforcement rules applied to the Mandatory Emissions Reporting Scheme, however research by the CDP in their Global 500 Climate Change Report suggests that only a small proportion of Global 500 companies don’t presently report despite lack of enforcement.
Conversely, penalties have been given for the CRC Energy Efficiency Scheme for reporting failures (details here) and therefore such penalties cannot be ruled out for the future of the Mandatory Emissions Scheme.
SO WHAT ABOUT THE CRC?
Implemented in 2008, the CRC Energy Efficiency Scheme, aimed at businesses using over 6000 MWh of power a year, was the first attempt by government to start monitoring large non-energy intensive organisations, link in the cap and trade system and create Performance League Tables. It remains, though there is likely to be further simplification and adjustments to Performance League Tables so that leaders in different sectors can be more easily observed. Updates on the CRC Energy Efficiency Scheme can be followed through the Environment Agency.
For those wishing to contribute to the consultation on the draft regulation of the Mandatory Emissions Reporting Scheme, you can find the relevant information here. The closing date for the consultation is October 17th, 2012.
EnergyDeck, our energy and carbon management partner has annouced new unlimited features, exclusively for WECC members. Your account has been upgraded for free! So check out the new features.
WECC works with online platform EnergyDeck, to help members measure and manage their energy and carbon, as well as benchmarking and learning from others. EnergyDeck is now offering new unlimited features including up to three sites, unlimited manual meters per site and have one smart meter / AMR to connect a live data feed.
If you’re not yet using EnergyDeck, here is what it’s all about…
SO WHAT IS ENERGYDECK?
EnergyDeck is a community-based software tool to help your business monitor and reduce consumption, costs and emissions and what’s more, this tool allows you to benchmark your performance against others and learn from other success.
The partnership with EnergyDeck allows WECC to have more consistent and accurate data reporting, the ability to share the data, and create an accessible and open database of savings measures for different types of businesses and buildings.
WHAT’S IN IT FOR ME?
For individual organisations, EnergyDeck provides an array of benefits including:
- The tracking of all your energy and carbon metrics in a single web platform which minimises both the risk of error and the sheer volume created by spreadsheets.
- The facilitation of data and project input by staff across your organisation.
- Peer to peer learning via the sharing of performance data and best practices with members in your organisation and groups.
EXCLUSIVE FEATURES FOR WECC MEMBERS
WECC participants can now get free access to a Community version of EnergyDeck. The recently upgraded version now allows members to track an unlimited number of meters (e.g. data input sources such as gas and electricity) alongside one smart meter, and includes up to three sites. Further, by signing up to the WECC group on EnergyDeck, participants can compare themselves against aggregate peer benchmarks and view savings measures (fully anonymised) implemented by others in the group.
Most importantly, the benefits in terms of WECC, include:
- The opportunity for your business to benchmark itself against others in WECC and therefore your local area.
- The use of the analytics tools to create graphs allowing visual evidence of trends in your resource consumption and footprint.
To see these benefits in more detail, you can take a tour of the EnergyDeck software by clicking here.
HOW TO GET STARTED
We are encouraging all WECC members to join EnergyDeck. To get started, it’s simple:
- Follow the website link here
- Click on the ‘Sign Up’ button
- Enter details and submit
- Once your account is live, you need to follow the online instructions under ‘User Guide’ to:
- Set up your site (you will need to know/estimate floor space and insert the site type e.g. offices etc.)
- Set up your meters e.g. electricity, gas.
- Input past and current meter data
- Join the WECC group (Click on ‘Groups’ -> ‘Discover Groups’ -> find and click on ‘WECC’ -> Click ‘Join Group’.
If you need any more information or advice on using EnergyDeck, please get in touch with us. We look forward to seeing you in our online community.
Our 2012 Carbon Champion, HEFCE cut 17% of their footprint last year in their leased office without costing the earth. How did they manage it?
When renting office space, spending money on energy reduction measures can feel like paying even more to your landlord for their long term benefit. Yet, by creatively using the terms of the lease and through working with their landlord, HEFCE has managed to upgrade their leased building. This has allowed reductions in both costs and carbon emissions via substantial energy savings, together with an improved workplace for staff.
The Higher Education Funding Council for England (HEFCE) employs 230 staff in a 3,700 sq metre, 3 storey office leased from the University of the West of England (UWE). The long term contract held between UWE and HEFCE includes a dilapidation clause, much like the damage deposit on a rented property. Under this clause, money would normally be spent on the minimum maintenance and repairs, followed by full repairs at the end of the lease.
The HEFCE facilities management team, however, identified a number of on-going maintenance issues within the office including inefficient boilers, chillers and windows in need of upgrade. Through working with UWE, HEFCE were able to make the necessary repairs within the lease period by investing money at the start rather than the end of the lease. By taking this novel approach, the building tenants benefited from improved running and maintenance costs together with higher internal standards.
The list of new measures included new:
- Top hung, clear glass thermal glazing including trickle vents. Through allowing effective opening of these windows, the mechanical ventilation is used less.
- Motion detection corridor lights that dim and brighten according to activity.
- Low energy luminance and presence fittings which replaced office light fittings (This means that the light level at desk height throughout the entire office is constant, taking into account natural light).
- Two new efficient boilers which replaced the three old ones.
- Thermostatic Radiator Control Valves (TRV) and Building Management Systems (BMS).
- Roof chillers.
Such measures, whilst an office is in use, normally create large disruption to both staff and work. However, HEFCE managed to work around this problem by running a staff engagement program which produced both engaged and enthused staff as well as keeping them informed via the intranet, displays and team managers. Keeping the staff on board was critical to the success of this major upheaval.
Furthermore, in order to monitor and prove that the new equipment was delivering the expected savings, an independent company was employed to conduct sub-metering around the site. This enabled confirmation of energy savings alongside discovery of any anomalies.
HEFCE’s innovative way of allowing building adjustments, without soaring costs, achieved a 17% reduction in their emissions and demonstrates that you just need your landlord on-side!
The HEFCE’s case study stood out as a major achievement in reaching major carbon reductions in just one year. If you want to learn from other WECC organisations, like HEFCE, who have successfully implemented carbon reduction strategies and achieved fantastic results, you can view our WECC Annual Report.
Furthermore, you can attend our next networking event to hear from our Carbon Champions themselves on the 27th September.