Carbon could cost you more if you don't get your numbers right
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Organisations across the UK face penalties unless they comply
with the Government’s new Carbon Reduction Commitment (CRC) due to
come into force at the start of April.
KPMG, the business advice group that covers Kent from its
Gatwick office, warns that the penalities will hit their bottom
line, even before carbon trading begins in 2011.
Organisations with annual electricity bills of approximately £1
million or more must start measuring and accurately reporting their
energy usage to Government auditors. Those that submit late or
inaccurate data could be penalised and publicly chastised.
KPMG has found that compliance failures, such as incorrect
reporting, pose the greatest immediate risk to both reputation and
the bottom line. It claims that two thirds of businesses are
currently misstating their carbon numbers by a margin that will
incur fines.
From April 2011, the Government will publish league tables
ranking participants on their success at managing and reducing
their carbon emissions.
Vincent Neate, UK Head of Sustainability at KPMG, said:
"Organisations that understand the scheme have an opportunity to be
rewarded for improved energy efficiency while others will be
penalised and face reputational damage. The scheme effectively
creates a financial and reputational price for not being
green."
KPMG has this advice:
- Determine if you have any mandatory half hourly meters - if you
do, you are caught by the scheme
- Determine the level of 2008 electricity use through any half
hourly meter. If this is less than 6000MWh, you still have to
report but won’t have to pay for carbon. If it is more than 6000MWh
(approx £1m spend) then you are likely to have to report and trade
in full from 1 April
- Collate and retain copies of energy bills and statements from
2008
- Build a register of fixed source energy use and emissions
- Recognise any emissions where landlord/tenant confusion might
arise
- Familiarise yourself with all the deadlines for registration
and data submission
- Start measuring your full carbon footprint within the scheme
from 1 April 2010
Monday, March 08 2010
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