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Carbon Footprint Ltd www.carbonfootprint.com

© Carbon Footprint Ltd 2015

Reducing Energy and Cutting the Carbon Footprint of your business

13 April 2015

John Buckley

Managing Director, Carbon Footprint Ltd



What we’ll cover …

• Legislation & Standards Updates

• 7 Steps to cut carbon while you grow

• Energy Savings For Small Businesses

• An example of better energy monitoring



Why focus on carbon management?

• Legislation

• Sales tender demands

• Market differentiation

• Increased brand reputation with stakeholders

• Reduce risks of bad PR

• Attract investors

• Cost reductions and boost in profits



M&S Plan A – The Business Case

• Started out as a 5 Year Programme

• Cost / Investment £200m

• Benefit after 5 years recouped investment +£135m in energy savings

“Sustainability isn’t just about the financial benefits. Not all benefits can or should be monetised. Think employee motivation, supply chain resilience and brand halo.”

Adam Elman, Head of Delivering Plan A, M&S



Legislation and Standards Update

Carbon Footprint Ltd



What’s being introduced or updated…

• Key bits of legislation – Mandatory Greenhouse Gas (GHG) Reporting

– CRC Energy Efficiency Scheme Update

– ESOS - Mandatory Energy Audits

• Standards – ISO 14001

– ISO 50001



Mandatory GHG Reporting

• Impacts – UK registered companies &

– Listed on the major stock markets

(LSE, European, NYSE, NASDAQ)

• Started in October 2013

• Report on at least Scope 1 & 2 emissions

• All 6 x Greenhouse Gases (GHGs)

• Emissions Reported in Directors Report section of the companies Annual Report

• To be review in 2015 – decision expected in 2016 on whether to extend to all large companies



Carbon Reduction Commitment Energy Efficiency Scheme

• Phase 1 – April 2011 to March 2014

• Phase 2 – April 2014 to March 2019 – Simplifies to include just Gas and Electricity (rather than 29 in phase 1)

– Qualification is 6000MWh through settled HHMs

• Energy supplied to Climate Change Agreements and EU ETS facilities is excluded

– Each year collate energy information and submit report to the Environment Agency

– Buy and surrender carbon allowances to cover you CO2 emissions

• Forecast Sale = £15.60/t

• Compliance Sale = £16.40/t

– First compliance year was April 2014 – March 2015

• 31 July 2015 surrender annual report

• 30 October 2015 surrender allowance



ESOS • EU directive 2012/27/EU on Energy Efficiency – published

November 2012

• Energy Savings Opportunity Scheme (ESOS) – Mandatory for large Enterprises

• >250 employees

• Or Turnover > €50 million AND has an annual balance sheet which is over €43 million

– Voluntary for SMEs

– Covers Energy and Travel (‘direct’ travel that you control)

– Compliance by 5 Dec 2015

– Then repeated at least every 4 years



ESOS – What you need to do…

• Find out if you are in it • Total Energy Calculation (12 months taking in 31 Dec 2014) • Any past energy audits that may qualify (since 2011)? • Decide how to use the 10% de-minimus rule • Audit the remaining 90%

– Desk based & – Some walkabout site aduits

• Produce Opportunities Report – With cost analysis (pay backs, ROIs and lifecycle costs)

• Maintain an evidence pack • Get sign off by a Director • Get sign off by an ESOS Lead Assessor • Complete Submission (by 5 December 2015)



ISO 14001:2004 ISO 14001:2015

• ISO 14001 – sets out a criteria for an Environmental Management Systems (EMS) – Follows a Plan Do Check Act cycle

• Key changes for 2015 – Align it with the Annex SL Structure (also being revised for

other management systems- e.g. ISO 9001) – To define the context of the organisation before defining the

scope. – Bigger focus on Protecting the Environment and the link to

climate change – Environmental Performance --> considers life cycle

considerations – Bigger focus on Senior Management Team involvement

• Expected in September 2015 • 3 Year Transition Period



ISO 50001:2011

• Energy Management System (EnMS) – Develop a policy for more efficient use of energy

– Fix targets and objectives to meet the policy

– Use data to better understand and make decisions about energy use

– Measure the results

– Review how well the policy works, and

– Continually improve energy management.



The top 7 steps to cut carbon while you grow…



1. Get Board Level Buy-In Now



2. Set up robust process to assess and track your emissions and key indicators

Site Electricity

27.2%

Site Gas 9.2%

Company Owned Car

Travel 41.8%

Rail Travel 14.1%

Flights 7.8%

Breakdown of Carbon Footprint

0

50

100

150

200

250

300

2011 2012 2013

tCO

2e

Total tCO2e 2011 - 2013



3. Define realistic targets and goals



4. Generate ideas of projects rather than ad-hoc actions to meet targets



5. Produce a Carbon Management Plan

Action Who When Footprint Element

Costs Annual Cost Savings

Pay back period

Annual Carbon Savings

Change T8 lights to T5 in Building 1

Bob Smith

Mar 2014 Building 1 Electricity

£5,000 £2,500 2 years 20tCO2e

Investigate options for route planning systems

Jill Black

Dec 2013 Delivery Vehicles

1 day - - -

Implement route planning

Jill Black

March 2013

Delivery Vehicles

£1000 TBC

£4000 TBC

2.5 years TBC

10tCO2e



6. Consider whether carbon offsetting has a role to play



7. Measure, track & report your ROI



7 Steps to Success

1. Get Board Level Buy-in Now

2. Set up Robust Process to assess / track your emissions & KPIs

3. Define achievable suitable targets and goals, linked to the goals of the business

4. Generate ideas of projects rather than ad hoc actions to meet your targets

5. Produce a Carbon Management Plan

6. Consider if carbon offsetting has a role

7. Measure, track, report your Return on Investment



Energy Saving for SMEs



Energy Saving – for SMEs

The EU Energy Efficiency Directive governments to support SMEs regarding energy efficiency.

• 99.9% of the UK’s businesses are SMEs

• UK Government has published the “SME Energy Efficiency

Guide” on 26 March 2015 https://www.gov.uk/government/publications/sme-guide-to-energy-efficiency

• 82 pages sets out low-cost measures and steps that small and

medium sized business (SMEs) can take to start saving energy and money on their bills

https://www.gov.uk/government/publications/sme-guide-to-energy-efficiency













SME Energy Efficiency…

“Based on experience, the average SME could reduce its energy bill by 18-25% by installing energy efficiency measures with an average payback of less than 1.5 years. And it is estimated 40% of these savings would require zero capital cost.”



Energy Audit…

• Energy Profile – Chart from Bills, Half Hourly Meters, Sub meters – Annual, Weekly, Daily Energy Usage

• Heating Programmers (timings and temperatures) • Building Management Systems • Building fabric (drafts, insulation etc.) • HVAC • Lighting (including controls) • IT equipment • Compressors • Motors • Specialist Equipment • Processes • Staff Behaviors



Case Studies…

• By installing a £100 timer to its existing heating system, the Chinese Contemporary Arts Centre in Manchester is saving £4,363 and 17.6 tonnes of CO2e a year.

• By adding occupancy sensors to its store area and toilets, an electronic components manufacturer is saving £813 and 5 tonnes of CO2e a year. The initial £225 investment paid for itself in three months.

• DJS Research, a market research company, has installed timer switches to turn off its two water coolers out-of-hours, saving £144 a year (paying back in 35 days)



Case Studies

• By fixing just 9 leaks in its compressed air system, a small printing machine manufacturer, is saving £1,265 and 7 tonnes of CO2e a year

• Upgrading old spotlights with more efficient LEDs in communal areas is saving a medium-sized hotel £1,533 and 10 tonnes of CO2e a year. The energy saving measure paid for itself in just under a year and, due to the longer life of LEDs, requires less maintenance than previous lighting



Energy Monitoring in homes and small businesses

Example – of what can be seen



Energy Monitoring (at my house)



Energy Monitoring (During a Day)




Cooker on – cooking kids tea (oven on)




Kids going to bed




Mum and Dads tea being cooked




Eating Dinner




Time for a coffee




Chill out watching TV




Dishwasher goes on (has a double peak for energy)




Night time base load is very low Just fridge freezer and maybe a few things on standby




Time to get up and have a shower




Kids on Easter holiday




Another coffee




Kids hungry, so had some toast




Kids taken to the park



SME Essential - Remote Audit

• You get a single channel energy monitor (for you to keep)

• Expert analysis of data from the energy monitor

• Analysis of 12 month of energy bills data analysis (Gas & Electricity)

• You complete a 40 point survey about your business energy usage

• Summary Report – Summary of key findings from

– Recommendations to save energy, showing estimated costs & paybacks

• Cost from £550 exVAT per site



SME Advanced – With Onsite Audit

• As SME Essential

• Plus – Up to half day walk around survey of your site

• Cost from £950exVAT per site



Key messages covered today…

• Increasing number of drivers to cut carbon and energy within business (legislation, sales&marketing, cost savings)

• Outlined - 7 Steps to cutting carbon in your business

• Lots of cost effective energy savings opportunities for businesses of all sizes

• Energy monitoring can help you understand your energy usage and identify easy opportunities to save money



Any questions?

John Buckley

Managing Director

Carbon Footprint Ltd

[email protected]

01256 345645

Carbon Footprint Ltd offer a full range of consultancy services to help you reduce your carbon footprint and improve your businesses sustainability credentials

mailto:[email protected]

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