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Accounting for carbon emissions
Kevin MisselbrookCustomer Services Director,
Access Accounting Ltd
Why is the Green Agenda important to my business ?
• Cost-saving efficiencies• CSR• Compliance• Business sustainability
Cost-Saving
• Higher cost of carbon usage• Tax burden• You can’t manage what you can’t measure • Good measurement highlights awareness
throughout the organisation
CSR
• Corporate and Social Responsibility• CSR reporting requirements• Customer attraction• Suppliers• Investor awareness • and ….
• Will day slide ?
Moral duty ? Moral duty ?
Stern Review•Overwhelming evidence of climate change•Impact : loss of between 5% - 20% of GDP each year !•Cost of controlling – as little as 1% of GDP
“The costs of stabilising the climate are significant but manageable; delay would be dangerous and much more costly”
Supply Chain Pressure
Compliance• Climate Change Bill
– “Cascade” effect on supply chain
• Climate Change Levy• Carbon Trading Schemes (expanding)• ISO 14001
– Environmental standard for businesses– ISO140064 – Carbon Reporting
Compliance• More legislation ? • Dept of Energy & Climate Change – (Oct 08)• Audit standards – Carbon Trust, IAASB• Government standard to be provided by Oct
2009• Companies Act changing by 2012 – mandatory
reporting
Sustainability
• Need to have a business model that operates in a carbon-efficient world
• Establish strategies for the future• Build a sustainable energy-efficient business
Measurement
Improvement Cycle
Carbon Measurement
• Expensive• Difficult• Process-intensive• Availability of results limited• Difficult to get Actual vs Budget
Methodologies• LCA
–LifeCycle Assessment• Modelling tool• Good for counting product CO2 cost• BSI PAS 2050 launched 29th October 2008
– Defines the method and approach to LCA calculations
36 pages of guidance !
LCA Assessment
Methodologies• LCA
• On line calculators
Methodologies• LCA• On line calculators• Carbon Audit (3rd party)• Company Modelling tools• Integrated within the Accounts function
Solution from Access
Solution from Access • Embodied within the finance system• Minimal additional keystrokes to collate
carbon data• Real time reporting
– By Division, Cost Centre, Individual
• Actual vs Budget• Short learning curve for staff
• Driven by DEFRA tables• Follows GreenHouse Gas protocol• The only solution integrated within the
accounts system• Affordable to SMEs
Accounting for Carbon Emissions
Key Standards Used• GreenHouse Gas Protocol• Scope 1
– Direct production of CO2 emissions• Burning fuel in transport, Chemical process release, creating
electricity
• Scope 2– Indirect use of power
• Scope 3– Other indirect carbon
• 3rd parties, supply chain etc etc
Key Standards Used• Defra Tables
– Sets out UK standards for CO2 calculations
Key Standards Used
Development Strategies
• LCA , Corporate Footprint, or both ?
Any Questions ?