Download Moral duty

Accounting for carbon emissions
Kevin Misselbrook
Customer Services Director,
Access Accounting Ltd
Why is the Green Agenda
important to my business ?
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Cost-saving efficiencies
CSR
Compliance
Business sustainability
Cost-Saving
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Higher cost of carbon usage
Tax burden
You can’t manage what you can’t measure
Good measurement highlights awareness
throughout the organisation
CSR
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Corporate and Social Responsibility
CSR reporting requirements
Customer attraction
Suppliers
Investor awareness
and ….
Moral duty ?
• Will day slide ?
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
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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
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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
On Line CO2 Calculators
1000
900
800
700
600
500
400
CO2 Tonnes
300
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100
0
Source : S.Wrigley,
Lancaster University
Methodologies
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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
Accounting for Carbon Emissions
• Driven by DEFRA tables
• Follows GreenHouse Gas protocol
• The only solution integrated within the
accounts system
• Affordable to SMEs
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 ?