We are now well on the road to the end of the initial year of the CRC.
We’ve had the scare stories, the organisations failing to register, or less organisations registering than were first thought. Early estimates from the Government suggested 5000 plus organisations would be full participants with a further 20,000 as info disclosures. We’ve had just over 3,700 full participants register, what does this tell us?
For me, based on my research, it tells me that a great deal of organisations didn’t understand what they needed to do. As an example, a automobile dealership, an example Defra utilized in their literature, if that dealership was a single franchise, SEAT as an example, then if a single SEAT dealer anywhere else within the UK had a half hour meter then ALL SEAT dealerships and SEAT firms were in, under the banner of SEAT, who had the responsibility of collating this info. That’s nice and easy, until you then look at if that same dealership had say SEAT and VW at the same premises, they’re out? Add to that the capability to register independently so the SEAT brand did not have to account for everything that traded under its name . . . confused . . . therein lies the difficulty!
At least the Con/Dem co-alition government has pushed back the full implementation of phase 1 of the CRC by 12 months, the exact same for Phase 2.They are also looking at making the scheme simpler, firstly by making it a Tax, no payments from the pot for those that reduce emissions the most, Very good or Poor?
For me it’s a bit of good and bad, organisations no longer being rewarded for reducing emissions will have to locate some other motivation to decrease emissions! The good side is that it is giving these organisation much more time to get to grips with the scheme, even so, as experience has shown, a good deal of organisation left it to the last minute prior to registering for the CRC, will they do the same again?
Initially Phase 1 reporting is primarily about Scope 1 & 2 emissions, Scope 1 being based on energy you produce, for instance if you had a wind turbine and selling electricity back to the grid, Scope 2 is for energy you purchase.
Nevertheless Phase 2 of the CRC is interesting, as it suggests that Scope 3 emissions will be included in a company’s declaration, a great way of introducing mandatory emissions reporting for all via the back door. Scope 3 covers everything from Travel to Suppliers.
If we take a look at suppliers for a large organisation, this could easily be inside the thousands, a local authority I recently met with, have in excess of 5000 suppliers, under phase 2 they will have to liaise with all 5000, collate the emissions data for those 5000 and submit under the local authorities umbrella.
This will be an administrative nightmare for the unprepared, both the supplier and the large organisation. This will mean that for those who tender for work from larger organisations it will no longer be just a tick box exercise for environmental policy, such as ISO14001, it will be a detailed report on emissions and those not able to submit such a report, will ultimately, not win any business.
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Ashish Kulkarni - Article Writer for Kulkarni Software - Glasgow Web Design SEO