Reducing Energy and Cutting the Carbon Footprint of your business 13 April 2015 John Buckley Managing Director, 2015
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 2015
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 2015
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 2015
Legislation and Standards Update 2015
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 2015
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 2015
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 CO 2 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 2015
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 2015
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) 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 2015
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. 2015
The top 7 steps to cut carbon while you grow 2015
1. Get Board Level Buy-In Now 2015
tco2e 2. Set up robust process to assess and track your emissions and key indicators Breakdown of Carbon Footprint Rail Travel 14.1% Flights 7.8% 300 250 200 Total tco2e 2011-2013 Company Owned Car Travel 41.8% Site Gas 9.2% Site Electricity 27.2% 150 100 50 0 2011 2012 2013 2015
3. Define realistic targets and goals 2015
4. Generate ideas of projects rather than ad-hoc actions to meet targets 2015
5. Produce a Carbon Management Plan Action Who When Footprint Element Change T8 lights to T5 in Building 1 Investigate options for route planning systems Implement route planning Bob Smith Jill Black Jill Black Mar 2014 Building 1 Electricity Dec 2013 March 2013 Delivery Vehicles Delivery Vehicles Costs Annual Cost Savings Pay back period Annual Carbon Savings 5,000 2,500 2 years 20tCO 2 e 1 day - - - 1000 TBC 4000 TBC 2.5 years TBC 10tCO 2 e 2015
6. Consider whether carbon offsetting has a role to play 2015
7. Measure, track & report your ROI 2015
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 2015
Energy Saving for SMEs 2015
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-toenergy-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 2015
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. 2015
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 2015
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 CO 2 e a year. By adding occupancy sensors to its store area and toilets, an electronic components manufacturer is saving 813 and 5 tonnes of CO 2 e 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) 2015
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 CO 2 e a year Upgrading old spotlights with more efficient LEDs in communal areas is saving a medium-sized hotel 1,533 and 10 tonnes of CO 2 e 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 2015
Energy Monitoring in homes and small businesses Example of what can be seen 2015
Energy Monitoring (at my house) 2015
Energy Monitoring (During a Day) 2015
Energy Monitoring (During a Day) Cooker on cooking kids tea (oven on) 2015
Energy Monitoring (During a Day) Kids going to bed 2015
Energy Monitoring (During a Day) Mum and Dads tea being cooked 2015
Energy Monitoring (During a Day) Eating Dinner 2015
Energy Monitoring (During a Day) Time for a coffee 2015
Energy Monitoring (During a Day) Chill out watching TV 2015
Energy Monitoring (During a Day) Dishwasher goes on (has a double peak for energy) 2015
Energy Monitoring (During a Day) Night time base load is very low Just fridge freezer and maybe a few things on standby 2015
Energy Monitoring (During a Day) Time to get up and have a shower 2015
Energy Monitoring (During a Day) Kids on Easter holiday 2015
Energy Monitoring (During a Day) Another coffee 2015
Energy Monitoring (During a Day) Kids hungry, so had some toast 2015
Energy Monitoring (During a Day) Kids taken to the park 2015
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 2015
SME Advanced With Onsite Audit As SME Essential Plus Up to half day walk around survey of your site Cost from 950exVAT per site 2015
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 2015
Any questions? John Buckley Managing Director john.buckley@carbonfootprint.com 01256 345645 offer a full range of consultancy services to help you reduce your carbon footprint and improve your businesses sustainability credentials 2015