accounting for carbon emissions kevin misselbrook customer services director, access accounting ltd
TRANSCRIPT
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 ?