Software experts SAP has echoed the UK Government’s calls for businesses to sign up to the Carbon Reduction Commitment scheme.
Here Martin McCann, Head of Sustainability at SAP UKI, explains the need for organisations to be prepared during the countdown to the introduction of the CRC.
McCann explains: “As the September 30th deadline approaches for CRC registration it is perhaps unsurprising that many companies still haven’t registered. A study, commissioned by SAP in November 2009, found that many companies were struggling to prepare for the CRC; in fact 20% had not even started planning or had no idea what measures they needed to take.
“However, SAP can only encourage companies to listen and act on the Government’s call for registration. Whether at a local, national level or through increased supply chain and consumer pressure, companies will inevitably encounter carbon measurement policies.
“Therefore they should aim to look beyond the CRC as just another compliance hurdle and find ways to make their businesses more cost efficient and competitive.
“Registering is not complex, however there is much confusion in industry as to what needs to be incorporated in the schemes’ first submission to the Environment Agency in 2011. This process can take time but early registration maximizes preparation time helping companies get a head start in making sure they have the right infrastructure in place to reduce emissions and cut costs.
“Companies have generally never collected energy and fuel data to this level of accuracy before. Many registered companies are engaging in a huge spreadsheet manipulation task expecting that this will enable CRC reporting.
“However, spreadsheets, don’t make for easy auditing, making it likely that errors will be introduced into the CO2 equivalent conversion factors and final submission, and critically don’t enable companies to mange energy reduction - the objective of the scheme.
“Phase 2 of the scheme commences in 2013 becoming a ‘cap and trade’ legislation. This places additional planning, forecasting and analysis requirements on organizations. Those companies that do not put the systems in place today to develop world class carbon allowance trading strategies, risk facing significantly higher than optimal carbon costs in phase 2 of the scheme.
“For UK plc to compete in the new and vibrant economy of the future, moving to a low carbon/energy cost base is imperative.”
SAP has developed a 5 step approach to guide and prepare companies for CRC. With this approach and its Carbon Impact programme, companies can be ready for the CRC in as little as 30 days
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