From 1st April 2013, UK organisations listed on the London Stock Exchange, non-UK registered, AIM listed and privately owned will be required by law to actively participate in emission reporting year on year.
From 1st April 2013, UK organisations listed on the London Stock Exchange, non-UK registered, AIM listed and privately owned will be required by law to actively participate in emission reporting year on year. But, according to Peter Leggett, Carbon & Energy Consultant at IMServ Europe, the UK’s largest independent energy management provider, many businesses are unclear as to what is required and are failing to understand the potential financial benefits.
“This should be seen as an opportunity for businesses to focus on energy use and efficiency, drive down energy costs and reduce their environmental impact,” believes Peter. “It will help companies to initiate longer-term environmental challenges, and generally make the progression towards a resource efficient and low carbon economy easier to achieve.”
“Increased regulation has created a step change in carbon measurement and reporting, but what’s vital is that organisations see how it can add value for the business. It’s not just about compliance, it has to be about making commercial sense and using the regulatory legislation as an opportunity to push new carbon strategies and potential financial savings.
“The complexity of an organisation’s structure and whether it is process, service or building driven will to an extent dictate the key areas for analysis.”
The obligations set out in the European Energy Performance of Buildings Directive (EUEPBD) and European Energy Efficiency Directive (EUEED) is to engage with ‘energy consumers to reduce emissions’. One of the stated targets of thegovernment is to reduce 1990 emissions levels by 50% by 2025.
“The first area to address for any UK private organisation with a small workforce will be nominating an environment and sustainability champion. Liaising with the finance director or company secretary to establish whether their company falls within the scope of the Mandatory Greenhouse Gas Reporting legislation will be a key priority,” explains Peter.
“The champion will then need to ensure that the company has a comprehensive energy data management and reporting structure in place to ensure that greenhouse gases can be reported.
What will companies need to report on?
Companies will be required to report on their scope one and scope two greenhouse gas emissions, including the six primary Kyoto gases and converted to a CO2 equivalent:
- Scope one emissions (direct): From activities owned or controlled by organisations that release emissions straight into the atmosphere. For example, process fuel, boilers, vehicles and emissions from process leakage.
- Scope two emissions (indirect): This includes emissions being released into the atmosphere associated with an organisation’s consumption of purchased electricity, gas, oil or LPG and heat/steam.
The requirement is that the annual report and accounts must include a statement concerning the six recognised Greenhouse Gases (GHGs) in terms of TCO2 equivalent.
Such statements will be subject to normal audit processes and over time the annual statement must incorporate comparison over a number of years activity and include an intensity metric.
“Organisations must consider promptly and vigilantly how this information will be reported, and what governance and related processes will be required to meet these requirements. Getting advice and guidance from an industry expert can take a lot of pressure off SMEs.”
How can this be achieved?
“There is equipment and specialised products that can assist organisations with reducing scope one emissions such as boiler firing control and leakage detection. Organisations with specific plant and machinery can explore information gathering directly with their equipment and maintenance providers to help report this aspect of their annual statement.” explains Peter.
“In order to measure scope two emissions, the most effective way to achieve this is via smart metering. We at IMServ, as a leading UK utility meter and data provider, have long been associated with management and analysis through our EDV platform, helping organisations across all sectors to review consumption and patterns of use in order to investigate opportunities to save energy, reduce utility costs and control emissions.”
Smart meters provide accurate information on how much gas, electricity, oil LPG or other measurable utilities are being used. This access to data allows businesses to make informed decisions about their consumption, i.e. how and why usage occurs. This then enables organisations to identify areas where savings can be made, either via modifying infrastructure or via behavioral changes.
The UK is the first country to make it compulsory for companies to include emissions data for their entire organisation in their annual reports. The new regulations have been introduced from April 2013 and will be reviewed again in 2015.
Forthcoming webinar:
Learn how to become an energy savvy landlord
Date: 11th June, 2013
Location: Online.
From April 2018, as part of the Government’s Energy Act, commercial property could see themselves being forced to be energy efficient. In this free 1 hour webinar, Michelle Giles will talk you through how IMServ can help and turn the burden of legislation in to a bonus for your profits.
More details
Editor’s Notes
About IMServ
IMServ Europe Ltd is the UK’s largest independent energy management provider. The company offers carbon and energy management solutions, helping organisations across all sectors to save energy, reduce costs and control carbon emissions.
IMServ offers an all-inclusive portfolio that covers data collection, analysis, reporting and carbon management. To date over 180,000 sites in England, Scotland and Wales are benefiting from its solutions.
For further information, please contact:
Justine Smith, PR Director
KISS Public Relations
T: 01223 911123
justine@kisscom.co.uk
For interviews, comment, photography, or interest in by-lined articles please contact laura@kisscom.co.uk
