How to tackle a poor CRC league table ranking?
Disappointing CRC league table performance will leave some well-known brands not only facing a media backlash, but the loss of clients who switch to their higher ranking rivals, following publication by the Environment Agency today [November 8, 2011].
If you fare less well than expected Ed Brewster and Karimi Gitonga of carbon consultancy, Envido, outline how to minimise reputational damage and optimise your Year 2 ranking.
Firstly, lower ranking CRC participants must consider exploiting the remaining early actions, according to Mr Brewster.
“Installing automatic metering won’t be included in the Year 2 league table score. Tactically however, gaining certification through BS EN 16001 or the Carbon Trust Standard will carry a forty per cent weighting towards your CRC score. This represents the single biggest gain for those in the lower echelons of the league table.
“Communicating that your organisation has got its certification underway can also combat negative market perceptions if your competitors sit above you in the table.”
Strategically, two new metrics that will affect 2011/12 scoring should be where your longer term focus should sit, not just to minimise CRC liability, but also to maintain competitiveness, says Mr Gitonga.
The absolute and growth metrics, both of which focus on energy and carbon reduction, will account for 60% of the 2011/12 scoring, rising to 100% in year four of the scheme. League table ranking and the cost of purchasing allowances are drivers but the major real issue is cost reduction.
“General economic conditions are poor so anything that can help raise the bottom line becomes attractive. Emitting a tonne of carbon can be estimated at £200. Putting in place a programme of energy efficiency to eliminate this cost makes plain business sense,” he explains.
“Having exploited early action metrics you should identify and put a cost on energy efficiency projects. Assuming smart sub-metering is coupled with an AM&T system, such as, EnSMART, energy management can target and prioritise the opportunities that save the greatest amount of carbon at the lowest cost per tonne.”
So what are the typical projects CRC participants should consider?
For those that have not been actively managing energy, Mr Gitonga advises enlisting a CIBSE qualified assessor to visit your sites. “They will be able to objectively work to identify and quantify the financial costs and benefits from changing building and plant controls. Similarly, voltage optimisation and installing variable speed drive to HVAC fans and pumps have sub-three year paybacks. Boiler replacement is often an area that, although more expensive, can deliver good financial results over the longer term.
“Social measures that engage staff through green initiatives, such as switch-off campaigns often generate further savings of 10% or more with little upfront investment and very short paybacks.”
Unlike many carbon consultancies, Envido has in-house engineers and psychologists that can deliver carbon and energy savings through installation of low carbon technologies and staff engagement projects.
“As well as identify and put a cost on opportunities we guarantee them,” adds Mr Gitonga.
If you need a solution to help boost your CRC performance and reduce carbon energy consumption, contact envido.co.uk on 0207 199 0090.