ct making the carbon reduction business case

8/7/2019 CT making the carbon reduction business Case

1/29

Making the business casefor a carbon reduction projectHow to wi over the boardad iece people

Maagemet gide CTV039

enter


2/29

02Makig the bsiess case

People i yor positio eergy or evirometal

maagers, acilities maagers ad works egieers

have always od it hard to compete or dig

becase historically their projects were i a

discretioary category. These projects have

ot bee see as essetial to the srvival

o the bsiess; or are they sally madatory

rom a legal or reglatory perspective.

They also ted to be smaller scale tha other

projects beig dealt with by yor board o directors

or other decisio makers, dimiishig their

perceived importace. Frthermore, these projects

ca be techical (or eve iqe i the boards

experiece), which icreases their perceived

riskiess ad makes rejectio a comortable choice.

The advice which ollows shold eable yo

to overcome these challeges. It is based i part

o iterviews with people who hold, or have held,

seior exective positios i sbstatial

orgaisatios, ad the athors are gratel

or their time ad assistace.We begi by askig

dametal qestios abot who makes the

decisios ad what they are lookig or, ad the

work logically throgh the steps o gatherig data

ad evidece, bildig the case (icldig

cosideratios o face ad risk), dratig the

proposal, presetig it, ad the maitaiig

mometm. Explaatios o key facial

evalatio techiqes have bee pt ito a

appedix or the beeft o those who are ot

already amiliar with them.

Last, a word abot the scope ad philosophy

o this gide. It is ot jst abot how to do a

facial appraisal o a capital project ad preset

a proposal to yor board. It talks abot carbo

redctio projects i the widest sese: a example

might be a chage o policy to limit the choice

o compay cars provided or employees. Secod, it

views makig a bsiess case as a log-term

cotios process, ad ot a isolated evet.

Introduction

This guide will help you ensure that your projects or cutting energy

costs and reducing carbon emissions get a air hearing and the bestpossible chance o implementation.

MEnu

help


3/29


Yor board o directors (or trstees, cocil

members or other eqivalet decisio makers,

as the case may be) will be iterested i cost

redctio or sbject to iteral criteria improved

evirometal perormace or ehaced corporate

reptatio. The project or orgaisatioal chage or

which yo are tryig to make a bsiess case mst,

thereore, oer a compellig facial retr ad,

i possible, worthwhile additioal beefts.

Bt jst as importat as what yo preset is how

yo preset it. As we will repeat at greater legth

later, yo shold preset a cocise, clear proposal

clmiatig i a sigle recommedatio or reqest.

It shold be spported by a appropriate aalysis

o the costs, beefts, risks ad implemetatio

timetable.

Proposals or eergy savig projects are ote

at a disadvatage compared with other cadidates

or capital ivestmet. Capital ivestmet meas

oe-o expeditre o plat, machiery ad

bildigs or pblic relatios ad marketig

campaigs to geerate icome i the tre.

This is distict rom revee expeditre

represetig wages, el, materials, maiteace

ad other ogoig aal costs.

Ad that is oe hrdle: i some orgaisatios,

it may be istittioally difclt to recogise

ad accot or revenuesavigs arisig rom

capitalexpeditre. A more importat hrdleis that eergy ad carbo-savig capital projects

are discretionary. They are ot essetial or

sstaiig or growig the bsiess (like prodctio

machiery), or or reglatory compliace

(like eqipmet or improved dst abatemet).

These obstacles are compoded by the act that

eergy projects are perceived as risky. It does ot

matter that a marketig campaig might actally

etail morerisk; yor eergy or carbo project is

amiliar territory, somewhat techical, ad maybe relatively small i scale. The sae optio is to

reject it.

Later o we provide gidace o overcomig

these disadvatages, bt it mst be stressed

that eve the most solid bsiess case cold ail

to get spport i it is badly arged ad preseted.

What are decision makers looking or?

Your proposition will have the best chance o acceptance i it oers the decision

makers something they want and is presented in a way they can understand.

Typical pitalls

usig explaied jargo or ambigos terms.

Failig to address ay isses o relevace to

the board.

Failig to cosider other optios. Failig to idetiy ad deal with risk actors.

not sig the appropriate facial appraisal

method.

Givig a ramblig presetatio.

not givig a sigle clear recommedatio.

Key point

Yor seior decisio makers wat sod

projects, ad yo ca deliver them.

MEnu

help


4/29


5/29


Find an ally

It ca make a big dierece i yo ca elist the

spport o someoe at a appropriate level

who ca be yor ally ad sposor. I a small

orgaisatio this might be a board member

whom yo kow to be iterested i eergy adthe eviromet. I a large compay it might

bea departmet head or seior maagemet

represetative.

This perso will lfl a mber o valable ctios.

They will help yo to derstad the perspective o

the decisio makers yo are tryig to iece.

They will also have a wider appreciatio o related

bsiess isses that eed to be take ito accot.

Most importatly, they ca act as a advocate

or yor recommedatios ot oly o the day

the decisio is take, bt i the crcial phase

beorehad whe other seior iterested parties

eed to be soded ot, coslted ad reassred.

Build a record or success

Reptatio is a key actor. Pttig orward a case or

ivestmet or chage is always mch easier

i yo have become kow or promotig sesible

ad eective ideas or savig moey, eergy or

carbo. This is oe reaso or portrayig makiga bsiess case as a cotios process rather

tha a discrete evet. Each sccess is yor oothold

o the ext opportity. I yo are cosistetly

sccessl yo cold fd seior maagemet start

askig yo or project ideas, rather tha yo havig

to take the iitiative.

A sesible strategy, the, is to start with a iitiative

that is easy to get approval or (or costs othig

ad is easy to implemet). Record ad pblicise

the reslts. Meawhile, start lookig or rther,more sbstatial opportities that will eed

more dig, or edorsemet at a higher level

o maagemet, ad pick oe that yo ca

garatee will scceed. Yo caot aord to select

aythig bt a wier at this poit becase yo will

be askig the orgaisatio to back it; the reslt mst

be positive i yor reptatio is goig to beeft.

Establish infuence and reputation

Lie will be a lot easier i you can develop and maintain a reputation or sound

ideas, and engage the help o someone who moves in the circles youre tryingto inuence.

What your sponsor can do or you

Help yo derstad the decisio makers

perspectives.

Steer yo away rom optios compromised. by

actors yo are ot privy to.

Be yor ambassador drig the developmet

o the project proposal.

Act as a advocate i the presetatio.

MEnu

help


6/29


Good reptatios are hard to wi ad qickly lost;

likewise the spport o yor seior maagemet

sposor.

Try to ollow these priciples:

Evalate projects diligetly ad ever promote

somethig yo are sre o.

never make exaggerated claims.

Try to leave yorsel headroom to deliver more

tha yo promised.

Whe yo get approval or somethig,

implemet it withot delay ad do everythig

yo ca to esre its sccess.

Make sre people kow what yo have achieved,

ad keep it all o record.

Keep p with the ews. Yo wat to be see

as the perso i the orgaisatio that kows abot

the world eergy sitatio, the state

o play with emissios tradig schemes,

the otlook or prices ad so o. Let yor speriors

treat yo as a athority o the sbject.

Last, do ot be shy abot ivolvig yor seior

maagemet sposor throghot the process

o idetiyig ad developig projects. Oe o theseior exectives we iterviewed described a case

where a sites egieers had ivited him to visit

ad discss some otlie plas or a major eergy

project. He said it iclied him to give the project

active spport becase he kew how hard they

had worked o it.

Key point

Develop ad deed yor reptatio.

MEnu

help


7/29


The facial case or yor proposal rests o the

balace betwee projected costs ad savigs.

How these are aalysed ad preseted is covered

i a appedix, bt clearly the argmet will oly

be as sod as the evidece o which it is based.

Direct fnancial benefts

I this sectio we emphasise the developmet

o the facial case ad treat ay o-facial

beefts as boses. This is eqally tre o carbo

savig: eve i yor orgaisatio has a declared

policy o redcig its carbo emissios, it is

likely to be prepared to do so at ay cost.

Larger orgaisatios wold most probably

bechmark proposals agaist the market price

or traded carbo.We will deal frst with the expected savigs i

eergy cosmptio or carbo emissios. Here, the

eergy maager is sally o sae territory, as i

may cases it is possible to estimate the eects o a

proposed chage with reasoable certaity. This is

particlarly tre where a eective moitorig ad

targetig scheme is i se or where a sfcietly

detailed eergy adit has bee codcted.

Veriy your numbers

Where estimates o savigs may have bee

rished by eqipmet sppliers, it is reasoable

to expect that their fgres will be optimistic,

ad yo shold veriy their estimate sig a

appropriate degree o diligece. At least fdot what assmptios were made, ad sbstitte

yor ow i yo cosider them qestioable.

I ecessary, get reereces rom other cstomers

who ca voch or the techology. However, bear

i mid that ot all cstomers moitor reslts

objectively, ad o those that do, oly a miority

wold wat it to be kow that they had made

a bad decisio. Ideed, people have bee kow

to give edorsemets to prodcts based o

completely radlet claims. O this poit,i yo are i dobt abot claims or a prodct,

check whether it appears o the Eergy Techology

List (www.eca.gov.uk/etl ) or other athoritative

register. I importat cases, commissio a

idepedet assessmet.

Building the case

It is essential to prepare thoroughly by collecting the most reliable

data and evidence you can obtain, and subjecting your propositionto rigorous evaluation.

Your business case must

identiy and discuss all the

possible downside risks,

in order to show yourdirectors that they have

been considered and are

containable or controllable

MEnu

help
http://www.eca.gov.uk/etlhttp://www.eca.gov.uk/etl


8/29


Where the savigs have bee estimated by a

idepedet cosltat i the frst place (as part

o a eergy adit, or example), some probig

qestios will be i order. Remid the cosltat

that there cold be a claim agaist his or her

proessioal idemity israce (regardless

o disclaimers) i they have ailed to exercise

sfciet care i the calclatio o savigs.

Exaggeratig the savigs cold lead to a project

with a seriosly disappoitig otcome. This

ot oly wastes resorces, it will damage yor

reptatio ad make tre progress more difclt.

I some circmstaces yo might wat to cosider

iitially makig a proposal or a pilot project oly.Reslts rom that cold the be sed to back p

the case or wider replicatio throghot yor

orgaisatio. Ask the board to commit to the ll

programme sbject to a stated objective target

beig reached i the pilot.

Obtain orward estimates

Bearig i mid that savigs are sally estimated

i eergy or carbo terms, yo will eed to obtai

orward estimates o prices i order to express the

estimate i facial terms. I yo sbscribe to a

eergy market itelligece service, its aalysts will

be providig yo with credible projectios. I ot,

yo shold glea what itelligece yo ca rom

specialist eergy jorals ad geeral bsiess

press, ad orm yor ow view.

Discss yor assessmet with yor seior

maagemet sposor ad get his or her backig or

yor positio. This is importat, becase eve i he

or she has o particlar view o the sbject, theremay be oe or more board members whose

opiios do ot coicide with yors, ad who may

cosider themselves greater experts tha yo o

market tres.

However wrog yo may cosider their positios,

the case yo pt orward mst accommodate them.

I ot, they may challege yor assmptios drig

yor presetatio ad scpper it.

How to build your case

3 Kow the residal lie o aected assets

3 Evalate the project cost

3 Evalate the reqiremets o other projects

3Calclate the cost, eergy ad carbo

savigs

3 Estimate the project lie

3 Idetiy sorces o dig

3 Work ot a project timetable

3Calclate the iteral rate o retr ad the

et preset vale

3 Carry ot risk aalyses

3Coslt other iterested parties

3Fid ay available precedets, case stdies

or techology reereces

3 Idetiy ay o-facial beefts

MEnu

help


9/29


Additional benefts

Eergy savig projects will ote yield additioal

beefts, some o which cold eve have sigifcat

facial vale i their ow right. For example: A ew lightig istallatio might be cheaper to

maitai, thaks to icreased itervals betwee

lamp replacemets.

The sot-start eect o a variable speed drive ca

icrease the lie o both the motor ad mechaical

drive trai by redcig electrical stresses ad

mechaical shocks. This exteds the mea time

betwee ailres ad coseqet bsiess

iterrptio.

Ay cotrol which redces idle rig will also

exted the lie o eqipmet.

For a site operatig ear the physical limits o its

spply coectios, redcig peak demad cold

remove the eed or capital expeditre o spply

reiorcemet whe the bsiess is expadig.

Redcig emissios cold help meet major

cstomers spply chai reqiremets.

no-facial beefts have sometimes bee

idetifed as expected boses ater eergy

projects have bee implemeted. Examples

iclde:

Redced oise i vetilatio systems ater

covertig as to variable-speed operatio.

Icreased maiteace itervals as a reslt

o moitorig eergy cosmptio o eqipmet,

where deterioratig perormace idicates

wear ad tear.

Improved comort ad redced sta trover

i commercial kitches ater traiig ad

awareess campaigs showed the beefts

o ot leavig cookig eqipmet rigecessarily.

Ehaced reptatio ad pblic relatios

advatage.

It is worthwhile cosiderig whether there are

likely to be ay sch beefts complemetig

the facial retrs expected rom the projects

yo are promotig.

MEnu

help


10/29


Implementation costs

This is aother case where a eqipmet sppliers

view is likely to be optimistic ad a cosltat may

be able to give a reliable estimate.It is risky to rely o a sppliers estimate o project

costs. First, the salesma has targets to reach ad

(except i the case o a small compay) is relatively

islated rom the coseqeces o over-sellig.

Secod, eve the most cadid salesma does ot

have access to all the acts, ad has to make

assmptios abot matters sch as how difclt

it will be to istall the proposed eqipmet,

or eve jst to gai access.

A sigle sppliers estimate, eve whe tested

with some probig qestios ad moderated

with more realistic assmptios, will rarely

do more tha help yo decide i the project

is worthwhile evalatig rther. So what are

the optios at this poit?

Gather intelligence

I possible, talk to other cstomers with similar

istallatios ad ask what their experiece was.

What were the actors that icreased their costs?

There will sally be some. I yo caot get this

iormatio rom other cstomers, qiz the spplier

abot what the cost risk actors are, ad apply yor

ow commo sese ad experiece. For istace,

i the cost o istallig cablig is a major kow,

yo or yor colleages may have some experiece

rom other related projects at the site i qestio.

Armed with a view o the likely spread o project

costs, yo ca ow do a prelimiary evalatio o

the project, repeatig the aalysis with dieretassmptios to yield a sesitivity aalysis. I yo

are very lcky, yor project will prove viable der

all reasoable scearios, makig it sae to proceed

with the proposal.

More sally, yo will fd that frm qotatios

really are ecessary beore yo ca decide to take

the idea rther. This cold preset a difclty

as gettig reliable qotatios will mea preparig

specifcatios, schedles ad desig drawigs.

normally sch activities are part o the eergy

maagers brie, ad the ee costs ca be

absorbed by existig bdgets. I ot, yo will frst

have to make a bsiess case or the desig ad

tederig exercise.

Fortately, approval or a prelimiary stdy ca

sally be sactioed at a lower level o

maagemet, ad yor had will be stregtheed

by havig the reslts o yor sesitivity aalysis

to idicate the probability o a viable otcome.

I your proposal is not entirely justifable on fnancial groundsalone, show how it helps to ulfl a concrete objective that

the organisation has previously set itsel

MEnu

help


11/29


Financing

I yo are cotemplatig a capital project ad do ot

already kow how it wold be faced, fd ot.

Yor seior maagemet sposor or facial

cotroller may be able to help. I some

orgaisatios there are ormal capital bdgetig

rods, ad this may dictate whe yor project

cold commece as yo may ot be able to access

the crret years allocatio. Other orgaisatios

have a more exible approach ad some (otably

i the pblic sector) may eve have rig-eced

ds earmarked or this class o work.

Some projects may ot etail capital expeditre.

However, they may be aordable ot o reveeexpeditre becase they recover their costs

very qickly. Eergy traiig ad awareess

campaigs sally all ito this category. I sch

circmstaces, yo will eed to approach the

perso who holds the bdget or el ad electricity

to agree a way orward. Timig is importat:

the work will eed to be completed early i the

bdget year.

Sbject to certai limitatios, the Carbo Trst

ca provide iterest-ree loas ad small

bsiesses may be able to access grats rom

Bsiess Lik der its Bsiess Trasormatio

ad Resorce Efciecy programmes. Bt

remember that eve these sorces may ot help

i the additioal borrowig has a sigifcat impact

o the balace sheet.

Whatever the circmstaces i yor case, yo eed

to be prepared to aswer qestios abot how the

project wold be faced, ad abot the criteria

sed to evalate it.

Your analysis should alsodiscuss the risks attached

to notproceeding with

the project

MEnu

help


12/29


Risk

A eergy or carbo savig project may be

amiliar territory to the board members

cosiderig yor proposal. I their mids, thereore,

it will etail a high level o perceived risk ad will

start at a disadvatage compared with projects

related to reglatory compliace ad to developig

or protectig the core bsiess.

Yor bsiess case mst thereore idetiy ad

discss all the possible dowside risks, i order to

show yor directors that they have bee cosidered

ad are cotaiable or cotrollable.

Technical riskThis will be oe o the hardest to deal with,

especially i the proposed project is the frst o its

kid that yor compay has dertake. Pt simply,

will it yield the savigs that yo claim? I extreme

cases, there may be a risk o the techology ot

ctioig at all. For istace, the corrosive atre

o exhast air rom a swimmig pool cold damage

a heat-recovery it, ad slphr i the methae

rom a sewage treatmet works cold damage the

egie o a combied heat ad power system.This is where specifc prodct edorsemets rom

the same type o ser are idispesable.

Cost risk

This is the possibility that either the capital cost

or the ogoig rig costs ed p higher tha

yo have bdgeted or. Yo eed to esre that

estimates ad qotatios are as reliable as possible.

Operational risks

Cold the project i ay way compromise otpt?

For istace, it may reqire a shtdow o acilities

or processes. Qestios to ask wold the iclde:

What wold happe i the works overra?

Might the work clash with other shtdow

projects?

Are the ecessary persoel goig to be available?

Oce istalled, cold the ew eqipmet adversely

aect prodct qality, or the reliability or availability

o key services? Cosider the implicatios o there

beig teethig problems with the techology, ad

whether the ew eqipmets maiteace

reqiremets cold potetially impact yor

operatios. Most importatly, thik abot the eect

o the workorce beig amiliar with,

or hostile to, the ew eqipmet.

Market risks

Cosider what eergy prices might do relative

to other costs. What i the price o carbo-emissio

permits were to collapse? What abot iterest

rates? I yo are a techical proessioal yo may

well eel comortable dealig with these kids

o isse, bt they mst be aced becase yor

board members will probably have expertise

(or opiios) o sch sbjects. This is aother

area where yor seior maagemet sposor

may be able to advise yo.

MEnu

help


13/29


Circumstantial risks

Extraeos actors cold aect the viability

o yor project. This might iclde plas or:

Closre or relocatio o the bsiess Reddacies or otsorcig

Takeover o the bsiess

Chage o prodct mix

Eterig ito a eergy services cotract.

To yo, may o these evetalities may be

oreseeable. However, yor seior maagemet

sposor may be well aware o them ad althogh

they may be cofdetial, he or she cold idicate

whether certai hypothetical scearios sholdbe iclded i yor sesitivity aalysis.

Impedig closre or disposal is a very

commo objectio to eergy savig ivestmet,

bt it deserves special cosideratio as i some

cases a capital project cold have some residal

vale to a ew ower. This is especially tre o

improvemets to bildigs, where a improved

Eergy Perormace Certifcate (EPC) ratig cold

add to their market vale.

Fially, yor aalysis shold also discss the risks

attached to ot proceedig with the project. I

particlar, cosider the reglatory risks posed by

impedig legislatio, ad perhaps reptatioal risk.

Energy Efciency Loans

Energy Efciency Loans rom the Carbon Trust

are a cost eective way to replace or upgrade

your existing equipment with a more energy

efcient version. Businesses can borrow

rom 3,000 to 100,000* on an unsecured,

interest-ree loan payable over a period

o up to our years. There are no arrangement

ees and applying is straightorward.

Go to www.carbontrust.co.uk/loans to see

i you qualiy.

*Sbject to eligibility. Regioal variatios apply.

Key point

Be diliget abot evalatig projects becase

yo caot aord to back a dd.

MEnu

help
http://www.carbontrust.co.uk/loanshttp://www.carbontrust.co.uk/loans


14/29


Understand your audience

The board or other decisio makers that yo wat

to iece will dobtedly have their ow

preoccpatios ad objectives. Yo eed to fd ot

what these are, so that yo ca alig yor bsiess

case with their goals. This will help yo avoidsitatios that either coict with their objectives or

create potetial problems (real or imagied).

Remember that yo will ot oly have to satisy

corporate objectives, bt perhaps idividal

ambitios as well. This is partly why it is so

importat to have a ally i the orm o a seior

maagemet sposor.

Perhaps the most importat qestio yo shold

ask yorsel as yo prepare yor proposal ad

presetatio is: What do I have to say, that the

board members wat to hear? That will defe yor

opeig gambit.

Brevity, clarity, certainty

Pray iorm me, o hal a sheet o paper

The way Sir Wisto Chrchill sed to rame

reqests or critical wartime briefgs says it all. The

seior exectives we coslted agree that

a writte proposal mst have, o the frst page,the complete story i simple terms. Details are

ot relevat here: they ca ollow i the body

o the docmet.

Geerally speakig, at board meetigs i ay

sbstatial orgaisatio, the ageda will be

accompaied by a thick stack o papers. Yo mst

make it easy or members to absorb yor message

qickly, ad etice those who are iterested (ad

have the time) to read o. Do ot expect everyoe

to have read the paperwork beore the meetig.

The body o the proposal mst be writte i

a clear ad logical style. I, as is likely, the project

is techical i atre it will be very helpl to

iclde a laymas explaatio o the techology

i qestio beore goig o to say how yo propose

to apply it. Strctrig the writ te proposal well

meas ot oly that yor target adiece will be

able to ollow it, bt more importatly, yo will

be able to direct them qickly to the appropriate

tables, diagrams ad so o drig the presetatio.

Drating the proposal

Your written proposal needs to make it easy or people to see at a glance

what you want rom them and why; but it will also need to give sufcientdetail to satisy the needs o the diligent critics among them.

Fact

Redcig eergy sage meas lower

carbo emissios. Thats great ews

or the eviromet.

MEnu

help


15/29


Ask yor seior maagemet sposor or examples

o past proposals that he or she wold regard

as exemplary.

Ideally, yo shold give jst oe clear

recommedatio that the board ca edorse.

There may be alteratives (i which case

it is a good idea to show that yo have cosidered

them), bt i yo leave the board with optios

to choose betwee, yo have ot doe yor

preparatio properly.

Remember that you are more expert than they

i eergy ad carbo maagemet, ad they

will accept that. Yo may react to this by sayig that

the decisio cold be ieced by circmstacesor actors that yo are ot privy to. While this is

tre, cosltig yor ally o the board will help

yo to elimiate the less avorable optios.

Keep it real

There is a dager whe promotig carbo savig

iitiatives o makig the propositio too abstract.

This will be particlarly tre i the facial case

is weak ad yo are playig the corporate social

resposibility card. It is temptig to exploit crret

media iterest i climate chage ad to preset

these global or moral cocers as drivers or actio;

however, this is a hazardos tactic.

I yor proposal is ot etirely jstifable o

facial grods aloe, or advice is to show

how it helps to lfl a cocrete objective that the

orgaisatio has previosly set itsel. I other

words, show that it helps the board to keep apromise they have already made. This is oe o the

reasos or developig ad adoptig a corporate

eergy policy. It is a statemet o itet that eables

certai types o decisio to be made qickly

becase the isses have bee debated already.

Typical objections

Beore presetig yor proposal, thik how

yo wold deal with these commo objectios:

We are not convinced because

the problem is ot clear

we dot derstad yor soltio

there is o evidece it wold work

we disagree with yor assmptios.

We like the project, but

istallig it sods like it wold be disrptive

we are ot sre how log we are goigto retai this bildig/process/eqipmet

the workorce wold ot accept it

we do ot have ay moey available to d

the project

the ecessary sta resorces are eeded

or other work

oe o s has got a better idea

why havet yo doe aythig abot thisisse beore?

Tips rom senior management

Citing what competitors are doing can be seen

as disloyal, unless you keep it positive (we cando better)

John OKeee ormer Director o Thames Televisio ad

ex Maagig Director o Limehose Stdios

MEnu

help


16/29


Watch your language

Icosiderate se o jargo, acroyms ad

specialist techical termiology is oe o the mai

reasos or proposals beig rejected at board level.

So whe ramig yor writte proposal, or whe

presetig it i perso, be carel to defe or

explai ay specialist techical terms that yo se.

Better still, avoid sig them i they are ot

essetial to the argmet.

Avoid sig emotive terms, ad be wary o adverse

comparisos with yor competitors, which may

be see as disloyal. I yo eed to make sch

comparisos be positive: ot we are laggig

behid bt we ca do better tha them.

It is importat to bear i mid that ew, i ay,

o the decisio makers will have specialist

kowledge o eergy or carbo maagemet.

That may be tre eve o a techical director,

whose expertise is ar more likely to relate to the

orgaisatios core bsiess tha to eergy

systems. Aother more sbtle aspect to the

lagage barrier is that some o the ordiary

words yo se (asset, or target, or istace)

will mea dieret thigs to dieret people.use more cocrete ad specifc terms i possible.

Where possible, se diagrams rather tha tables

o mbers. Iclde relevat visal material like

plas ad photographs, which will make the

docmet more attractive ad easier to ollow.

It may be that some o the people yo are tryigto iece are ot eve amiliar with the site

yo are talkig abot, ad havig a pictre

o it will help to make yor proposal more cocrete

i their mids.

uless yo express yor ideas i lagage the

board ca derstad, the most sympathetic

o them may give p the strggle to iterpret

the argmet behid yor recommedatios

ad opt or the sae respose: rejectio.


Ask yoursel: what does the board want

to hear, that I want to tell them? Billy Davidson Grop Property Director, Vodaoe

Key point

Start with a cocise smmary ad pt the

detail i appedices.

MEnu

help


17/29


This sectio assmes that yo will be presetig

the bsiess case i perso. That teds to be

preerable becase yo will be the best perso

to deed yor proposal i depth i board members

challege it or ask searchig qestios. I, however,

yo caot be there yorsel, we all back o or

earlier advice to fd a seior maagemet sposor.

Coslt ad ivolve them throghot the

developmet o the proposal, so that they ca be a

eective ad committed advocate o yor behal.

I yo have a techical backgrod yo ace two

isses. Oe is that yo may ot be accstomed

to makig what is, i eect, a iteral sales pitch.

The other is that yo will always be tempted

to ocs o techical detail. So let s start with

some poiters o makig a eective pitch.

Be prepared

First, beore yo eve get to the presetatio,

prepare thoroghly: kow the saliet acts abot

the project ad be prepared to deed it i depth.

Try to aticipate qestios (perhaps with help rom

yor seior maagemet sposor). Fid ot how

log yo have bee allocated. Rehearse, ot

ecessarily word or word, bt at least the key

waymarks.

Secod, be very wary o sig compter-projected

presetatios. They are easy to do badly, ad

iexperieced sers orget that yo caot

maitai eye cotact whe trig to read rom

the scree. There is also o worse way to start tha

fddlig with cables ad eqipmet.

Do yo thik that yo eed a presetatio i order

to show tables, fgres ad charts? I so, cosider

the simple alterative o pttig them i the

spportig paperwork, which yo ca reer to

drig yor presetatio. Board members cold

well eel more comortable beig able to stdy

them at their ow pace rather tha tryig to keep

p with a slideshow.

See i there are ay relevat props yo ca se,

sch as a model or a sample piece o kit. It is ar

easier to sell somethig physical tha a abstract

cocept. For example, to promote a cotrols

project, had arod a example o some key

compoet.

Presenting the proposal

However well-written your proposal, its chances could be diminished

i you do not present it in a convincing way.

Smile, be confdent, be respectul

and dont be arrogant

Key point

Be brie ad to the poit, bt dot assme that

everyoe has read yor writte proposal.

MEnu

help


18/29


On the day

The whe the day comes ad yo are stadig

i rot o the board:

Be sre that everyoe ca see yo comortably:i all bt the smallest meetigs, stad rather

tha sit.

Itrodce yorsel briey.

Set the scee with a clear statemet idetiyig the

corporate goal that yo are addressig,

ad i simple smmary, what yo propose the

orgaisatio shold do.

Explai that yor presetatio is oly a smmary

ad that all the acts, assmptios ad backgrod

details are i the writte proposal.

I ecessary, give some techical backgrod

i the simplest possible terms.

Elaborate o the proposed corse o actio.

Focs o the objective, which is to get agreemet

to yor recommeded corse o actio. Dot get

distracted ad orget to come to the poit.

Restate yor recommedatio.

Aswer qestios.

I yo do ot get a clear decisio, ask or oe.

Stop whe yo get the decisio. Resist the

temptatio to keep talkig.

Thak yor adiece ad leave.

Throghot yor presetatio try to keep makig

eye cotact with everyoe i tr. Smile, be

cofdet, be respectl ad dot be arrogat.


Graphs and diagrams are better than tables

o numbers. Use photos, plant layout plans

or even mock-ups to help people see what

you are proposing Sandy Manson Wester Eropea Egieerig Maager or iteratioal brewers Ibev

MEnu

help


19/29


I yo get the decisio yo wated, be prepared to

act o it straight away. I yo let a approval lapse

yo will damage yor hard wo reptatio ad

perhaps alieate yor seior maagemet sposor

i yo have oe. The reslt will be that yo fd

it harder to arge or tre projects.

Whe the project has bee completed, moitor

it to veriy the savigs that are achieved. This is

importat i two respects. First, yo eed evidece

with which to bolster yor reptatio (ad that o

yor sposor), to vidicate the boards origial

decisio to spport yor idea, ad perhaps to jstiy

replicatig the project elsewhere.

Secod, there is always a risk that the project does

ot work, i which case yo eed to kow abot

it so that yo ca pt it right. For example, improvedatomatic cotrols may eed proper

commissioig or tig to have their ll eect.

Agai, with yor hard-wo reptatio i mid,

make sre that yo pblicise yor sccesses ad

keep a list o them or se i the tre. Make se

o itraet pages, sta ewsletters ad other

iteral commicatio chaels to keep everyoe

i the pictre ad to elicit eedback.

Give credit where it is de ackowledge ay

spport yo have had rom colleages or members

o the workorce. A ote o thaks goes a log way.

Be prepared to cocede credit to yor seior

maagemet sposor i that seems to be what they

wat. Their spport cold be yor key to gettig

rther backig.

Fially, be ready with yor ext brilliat idea.

Always have a ew i the pipelie, as the board may

start askig yo to come p with rther projects.I some orgaisatios they ca be a valable way

o sig bdget srplses ear the ed o the

facial year. Bt remember: oly back wiers.

Maintaining momentum

Implementing the proposed project and monitoring its success

are as much part o the process as getting approval in the frst place.

Key point

Treat the whole exercise as part o a

cotios process, ot a isolated evet.

Make sure that you publicise your successes

and keep a list o them or use in the uture

MEnu

help


20/29


I the moey or the project is borrowed, the savigs

eed to exceed the cost o iterest paymets. I the

moey comes rom reserves, the savigs eed

to exceed the icome that cold have bee eared

by depositig the moey i the bak or ivestig

it elsewhere or example, i a competig project

that also oers cost savigs or icreased revee.

Simple payback

Table A1 provides two hypothetical (ad simplistic)

scearios which illstrate the sbtle difclties

o choosig betwee projects. Project X will save

5,000 a year or three years, while Project Y saves

oly 4,500 bt will last fve years. Both projects

cost 10,000 to implemet.

The most amiliar way o evalatig ad expressigthe cost eectiveess o projects is the simple

payback period (SPP). Dividig the projects cost by

the aal savigs tells s how log it will take to

recop the iitial otlay. We ca see here, or

example, that Project X has a SPP o 10,000/5,000

= 2.0 years, while Project Y achieves a SPP o

10,000/4,500 = 2.2 years.

O those grods, Project X seems preerable.

Yet the et retr rom Project Y is 12,500 over its

lietime compared with oly 5,000 or Project X,

makig Project Y preerable. Clearly, simple

payback is ot tellig s the whole story.

Aother o the drawbacks o simple payback is that

it tells s othig abot the absolte vale o the

proposal: replacig a flamet lamp with a compact

orescet wold give a stigly short SPP, bt

will oly have a egligible impact o yor

orgaisatios carbo ootprit.

A rther, more sbtle, objectio is that qotig

the payback period is a slightly weak propositio.

To say this project will pay back its costs i two

years is ot qite as powerl as sayig this

project will repay its cost every two years.The latter wordig stresses the cotiity

o tre savigs ad sods like a positive choice.

The ormer wordig is slightly deesive ad

cosciosly sggests that the beeft is short-

lived (dot worry, yo will get yor moey back,

bt oly ater two years).

Appendix A: Financial appraisal methods

Most energy and carbon saving projects incur up-ront costs

and yield annual savings.

Table A1 Two competing projects

Project X Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Cost o project (10,000) (10,000)

Savigs 5,000 5,000 5,000 15,000

Cash ow (10,000) 5,000 5,000 5,000 0 0 5,000

Project Y Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Cost o project (10,000) (10,000)

Savigs 4,500 4,500 4,500 4,500 4,500 22,500

Cash ow (10,000) 4,500 4,500 4,500 4,500 4,500 12,500

MEnu

help


21/29


SPP gives s a rogh-ad-ready way to compare

alterative projects, bt most importatly, it is ot

the method sed or evalatig ivestmet choices

i facially-savvy orgaisatios.

Discounted cash ow

To captre the vale o cotied savigs i the

tre, ad to show how the proposed project

compares with other possible ivestmets, most

accotats wold se a assessmet method

based o discoted cash ow (DCF). I DCF

calclatios, all the projects crret ad tre

costs ad savigs are aggregated ito a sigle

lietime fgre, bt with de allowace made or

the act that cash ows i the ar tre have less

weight tha those i the ear tre.

This example illstrates how we weigh p the

relative vales o cash received i the tre.

Let s assme that yo ca ear 4% iterest o

moey i the bak. now sppose that yo are

oered a choice o three cash gits o coditio

that yo dot sped the moey til fve years

rom ow. Yo ca have:

822 today; or

889 i a years time; or

1,000 i fve years time.

Which shold yo choose? The aswer is that give

or take a ew pece, it does ot matter. To ivest

822 or fve years or 889 or or years, both yield

1,000 at 4% compod iterest, meaig that the

paymet o 1,000 i fve years time is eqivaletto 822 received today. Accotats call the 822

the present valueo the 1,000 i qestio, ad the

4% the discountrate.

The higher the discot rate, the lower the preset

vale. Table A2shows the preset vale o 1,000

i fve years time, at varios discot rates.

We ca also compare the preset vales o a certai

cash sm paid at dieret poits i the tre, bt

at a particlar discot rate. Table A3shows thepreset vale o 1,000 payable i the tre at a

10% discot rate.

Table A2

Discount rate Present value o 1,000 fve

years in the uture

4% 821.93

10% 620.92

20% 401.88

Table A3

Years Present value o 1,000

0 1,000

1 909.09

2 826.453 751.31

4 683.01

5 620.92

MEnu

help


22/29


Applying discount actors to the

assessment

Net present value

Let s retr to Projects X ad Y itrodced earlier

ad evalate them sig discoted cash ow. For

the prposes o illstratio, we will se a discot

rate o 10%. Table A4is the same as Table A1, bt

cash ow has bee relabelled simple cash ow

ad two additioal rows have bee added. Oe is

the discot actors, which are the ratios betwee

the preset ad tre vales i

each tre year (yo ca see these same ratios i

Table A3above). The other additioal row is the

discoted vales o the tre cash ows i each

year. I each case, this is the simple cash ow .

mltiplied by the discot actor or that year.Lookig at the right-had colms i Table A4yo

will otice that Project X, which yielded a et retr

o 5,000 i terms o simple cash ow, yields a et

retr o 2,434 i terms o discoted cash ow.

This is called its net present value(nPV) becase

it is the sm o all the expeditre ad icome,

discoted to preset vales. Project Y, meawhile,

has a nPV o 7,059.

This gives s a mch clearer pictre o which

project to choose. Doig project Y is the eqivalet

o a cash gi t o 7,059, while Project X is oly

worth 2,434.

I act (i we cold fd the face) both projects

are worth prsig as both have nPVs greater tha

zero. Bt this coclsio does ot hold good i the

discot rate is mch higher.

Table A4Discounted cash fow analysis at 10% discount rate

Project X Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Totals

Cost o project (10,000) (10,000)

Savigs 5,000 5,000 5,000 15,000

Simple cash ow (10,000) 5,000 5,000 5,000 0 0 5,000

Discount actor 1.000 0.909 0.826 0.751 0.683 0.621

Discounted cash ow (10,000) 4,545 4,132 3,757 2,434


Cost o project (10,000) (10,000)

Savigs 4,500 4,500 4,500 4,500 4,500 22,500

Simple cash ow (10,000) 4,500 4,500 4,500 4,500 4,500 12,500

Discount actor 1.000 0.909 0.826 0.751 0.683 0.621

Discounted cash ow (10,000) 4,091 3,719 3,381 3,074 2,794 7,059

MEnu

help


23/29


Table A5compares the projects at a discot rate

o 25%, der which circmstaces oly Project Y is

viable, becase Project X gives a negativenPV:

Yor orgaisatio will probably have a policy abot

what discot rate to se i assessmets. High

rates make it harder to pass the test, ad are

sometimes sed as israce agaist risk.

Internal rate o return

Project X was viable at a 10% discot rate bt

ot at 25%. The discot rate at which it jst ails

(yieldig a nPV o zero) works ot at 23.4%.

This is called its iteral rate o return (IRR).

There is o aalytical method o calclatig IRR;

traditioally it was doe by trial ad error or

by sig graphs. However, spreadsheet programs

provide a IRR ctio which makes lie easy.

The IRR or Project Y, icidetally, is 34.9%.

The example o Project Y is tellig. It has a simple

payback period o 2.2 years, ad or may

orgaisatios it wold ail the typical hrdle

o oe or two-year payback applied to eergy

projects. Bt whe oe realises that it gives a

34.9% iteral rate o retr, it sods ad is

mch more compellig. What other ivestmet

wold give a better retr?

Table A5Discounted cash fow analysis at 25% discount rate

Project X Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Totals

Cost o project (10,000) (10,000)

Savigs 5,000 5,000 5,000 15,000

Simple cash ow (10,000) 5,000 5,000 5,000 0 0 5,000

Discount actor 1.000 0.800 0.640 0.512 0.410 0.328

Discounted cash ow (10,000) 4,000 3,200 2,560 (240)


Cost o project (10,000) (10,000)

Savigs 4,500 4,500 4,500 4,500 4,500 22,500

Simple cash ow (10,000) 4,500 4,500 4,500 4,500 4,500 12,500

Discount actor 1,000 0.800 0.640 0.512 0.410 0.328


MEnu

help


24/29


More complex scenarios

The Project X ad Y examples were deliberately

simplistic. Real lie aalyses may be more complex.

For example:

There may be ogoig rig costs. For example,

a heat recovery system that saves gas might

reqire electrical power. Possible maiteace

costs are aother cosideratio.

Depedig po the projects timig, there may be

some savigs i Year 0.

Savigs may vary rom year to year, otably

becase o real iatio o eergy prices relative to

other commodities.

It may be the orgaisatios policy to accot

explicitly or tax costs.

Where ecessary, the DCF table ca be elaborated

by addig rows or specifc cost items, or to

separate savigs or gas ad electricity (or

example) i their prices relative to each other are

expected to vary.

Table A6illstrates a more complex case.

First, some savigs are expected i the year

o implemetatio. The, as well as the capital

expeditre, there are aal maiteace charges

(lower i year 1 bt higher i year 3). Fially, the

techology icrs additioal electrical costs which,

like the savigs i gas costs, have bee assmed

to iate at 20% relative to geeral iatio.

However, the (literal) bottom lie is always the

same. Each years et cash ow is calclated

ad discoted.

Table A6Illustration o a more complex case

Project Z Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Totals

Cost o project (10,000) (10,000)

Maiteace (500) (750) (1,500) (750) (750) (4,250)

Electrical power (100) (250) (300) (360) (432) (518) (1,960)

Savigs 2,000 5,000 6,000 7,200 8,640 10,368 39,208

Simple cash ow (8,100) 4,250 4,950 5,340 7,458 9,100 22,998

Discount actor 1.000 0.811 0.657 0.533 0.432 0.350


MEnu

help


25/29


Risk cover and sensitivity analysis

Dieret orgaisatios apply dieret criteria

i terms o the discot rate they apply to

discretioary capital projects (which is the same

thig as the threshold or the IRR they expect).

I theory, the discot rate shold jst be the cost

o capital (iterest charged o borrowigs, or

oregoe o alterative ivestmets), bt sally

it is mch higher. Why is this? usally it is to cover

the orgaisatio agaist risk. Aother hedge

agaist risk is to set a short time horizo or

evalatio, or example limitig the aalysis to fve

years eve i the project has a mch loger lie.

However, do ot be tempted to evalate a projectregardless o risk o the grods that yor

corporate assessmet criteria wold flter it ot.

It may be so risky that it cold ltimately ail eve

ater clearig a high threshold. It is preerable

to carry ot a sesitivity aalysis, which with

the aid o a spreadsheet is ot too oeros.

The frst step is to decide what actors are sbject

to sigifcat certaity. These will almost

certaily iclde:

The implemetatio cost

Maiteace or other additioal rig costs

Savigs achieved (i it terms)

Eergy prices relative to other iatio idices

Project lie.

next, cosider what the likely rage o each o these

actors is. usig yor spreadsheet model,

try the worst ad best case assmptio or each

certai item ad ote the resltig IRRs.

I ay oe o the worst case assmptios gives

a acceptably low IRR, there is a chace that

yor project will ail.

With a little trial ad error yo ca establish the

poit at which the project ails (or example, the

percetage cost over-r which gives zero nPV).

I yo cosider the risk o that evetality beig

too great, yo shold abado the project.

However, all may ot be lost. We kow that

IRR thresholds are sally set high to provide

a measre o risk cover, so yor argmet

might go like this: I project costs over-r by x%,

the project wold ail to meet the compays IRRcriterio. However, we thik there is oly a oe

i x chace o this happeig ad the worst case

sceario still gives a IRR o z%.MEnu

help


26/29


Taxation, ination and depreciation

Taxation

All other thigs beig eqal, i yo ca claim the

etire cost o yor project agaist tax i the frst

year, the eect o taxatio is etral: the iteral

rate o retr is idetical o the pre-tax ad post-tax

cash ow.

Yo will be able to write dow the whole

expeditre agaist tax to the frst year i:

Yo treat it as revee expeditre (maiteace,

or example) rather tha capital.

It alls withi the Aal Ivestmet Allowace

(AIA) itrodced i the 2008 bdget.

It qalifes or the Ehaced Capital Allowace

scheme.

The tax eect is etral becase it is proportioal

to the icome ad expeditre i each year.

I yo are ot able to claim the project cost agaist

tax i the frst year yo will oly be able to claim

or 20% each year o a redcig-balace basis.

Postpoig the tax beeft has a sigifcat impact:

at a 15% discot rate over eight years adassmig 28% corporatio tax, the et preset

vale will be redced by abot 10% o the origial

ivestmet cost. The loss o vale trs ot to

be idepedet o the level ad profle o savigs,

ad projects with simple payback periods o abot

fve years ca go rom positive to egative nPV

i sch a case.

Fortately, the adverse impact wold be similar

or all projects evalated agaist the same criteria,

which is why early all assessmets are doe

o pre-tax fgres.

Ination

This is also sally assmed to aect all competig

projects eqally, ad thereore is ot ormally

accoted or. However, there is a strog argmet

or assmig derlyig real iatio o eergy

prices relative to other commodities.

The eect o this is to icrease the tre vale o

each kWh saved, ad there are two ways to accot

or this. Oe is to show savigs icreasig i aal

vale as time goes by. The other is to redce the

discot rate, which is arithmetically the same thig

i yo expect a fxed aal percetage rise i real

eergy costs.

O the two methods, the frst is preerable

becase it does ot ivolve apparetly chagig

the assessmet criteria. It is also clearer,

especially i yo wish to show a sesitivity aalysis,

makig dieret assmptios abot the tre

o eergy prices.

Depreciation

This ever eeds to be take ito accot, becase

it is ot a cash ow. It merely records the loss o

vale o a asset as it ages. Depreciatio oly has

a eect i the evalatio is carried o a post-tax

basis (becase it aects year-by-year tax liabilities).

Eve the its eect is idirect: it is the tax amots

themselves that eed to be accoted or, ot the

depreciatio. However, i practice, post-tax aalysis

is sal. Pre-tax aalysis is easier ad the more

commo optio.

Further help online

A facial aalysis tool ca be od o or

website to help yo with yor facial

appraisal. Go to www.carbontrust.co.uk/

projectplanningtool

MEnu

help
http://www.carbontrust.co.uk/projectplanningtoolhttp://www.carbontrust.co.uk/projectplanningtoolhttp://www.carbontrust.co.uk/projectplanningtoolhttp://www.carbontrust.co.uk/projectplanningtool


27/29


28/29

Carbon Footprint Calculator Or olie calclator will help yo calclateyor orgaisatios carbo emissios.

www.carbontrust.co.uk/carboncalculator

Interest Free Loans Eergy Efciecy Loas rom the C arbo Trst are a costeective way to replace or pgrade yor existig eqipmet with a more eergy

efciet versio. See i yo qaliy.

www.carbontrust.co.uk/loans

Carbon Surveys We provide srveys to orgaisatios with aal eergy billso more tha 50,000*. Or carbo experts will visit yor premises to idetiy eergy

savig opportities ad oer practical advice o how to achieve them.

www.carbontrust.co.uk/surveys

Action Plans Create actio plas to implemet carbo ad eergy savig measres.

www.carbontrust.co.uk/apt

Case Studies Or case stdies show that its ote easier ad less expesivetha yo might thik to brig abot real chage.

www.carbontrust.co.uk/casestudies

Events and Workshops The Carbo Trst oers a variety o evetsad workshops ragig rom itrodctios to or services, to techical eergy

efciecy traiig, most o which are ree.

www.carbontrust.co.uk/events

Publications We have a library o ree pblicatios detailig eergy savigtechiqes or a rage o sectors ad techologies.

www.carbontrust.co.uk/publications

Need urther help?

Call our Customer Centre on 0800 085 2005Or Cstomer Cetre provides ree advice o what yor orgaisatio

ca do to save eergy ad save moey. Or team hadles qestios

ragig rom straightorward reqests or iormatio, to i-depth

techical qeries abot particlar techologies.

* Sbject to terms ad coditios.

Go online to get more

The Carbon Trust provides a range o tools, services and inormation to help

you implement energy and carbon saving measures, no matter what your levelo experience.

MEnu

help
http://www.carbontrust.co.uk/carboncalculatorhttp://www.carbontrust.co.uk/loanshttp://www.carbontrust.co.uk/surveyshttp://www.carbontrust.co.uk/apthttp://www.carbontrust.co.uk/casestudieshttp://www.carbontrust.co.uk/eventshttp://www.carbontrust.co.uk/publicationshttp://www.carbontrust.co.uk/publicationshttp://www.carbontrust.co.uk/eventshttp://www.carbontrust.co.uk/casestudieshttp://www.carbontrust.co.uk/apthttp://www.carbontrust.co.uk/surveyshttp://www.carbontrust.co.uk/loanshttp://www.carbontrust.co.uk/carboncalculator


29/29

The Carbon Trust receives unding rom Government including the Department o Energy and Climate

Change, the Department or Transport, the Scottish Government, the Welsh Assembly Government

and Invest Northern Ireland.

Whilst reasonable steps have been taken to ensure that the inormation contained within this publication

is correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warrantyand make no representation as to its accuracy and accept no liability or any errors or omissions.

Any trademarks, service marks or logos used in this publication, and copyright in it, are the property

o the Carbon Trust. Nothing in this publication shall be construed as granting any licence or right to use

or reproduce any o the trademarks, service marks, logos, copyright or any proprietary inormation

in any way without the Carbon Trusts prior written permission. The Carbon Trust enorces inringements

o its intellectual property rights to the ull extent permitted by law.

The Carbon Trust is a comp any limited by guarantee and registered in England and Wales under Company

number 4190230 with its Registered Ofce at: 6th Floor, 5 New Street Square, London EC4A 3BF.

Published in the UK: May 2010.

Queens Printer and Controller o HMSO CTV039v2

The Carbon Trust is a not-or-proft company with the mission to accelerate the move to a low

carbon economy. We provide specialist suppor t to business and the public sector to help cut

carbon emissions, save energy and commercialise low carbon technologies. By stimulating

low carbon action we contribute to key UK goals o lower carbon emissions, the development

o low carbon businesses, increased energy security and associated jobs.

We help to ct carbo emissios ow by:

providing specialist advice and fnance to help organisations cut carbon

setting standards or carbon reduction.

We redce potetial tre carbo emissios by:

opening markets or low carbon technologies

leading industry collaborations to commercialise technologies

investing in early-stage low carbon companies.

www.carbontrust.co.uk

0800 085 2005

ACT ON CO2

is the Governments initiative to help

individuals understand and reduce their carbon ootprint.

Visit http://actonco2.direct.gov.uk or more inormation.

CTV039

ct making the carbon reduction business case

Documents