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Making carbon reduction 
strategies pay 
Business cost-cutting through intelligent monitoring of energy use 
An Advanced Business Solutions white paper 
Introduction 
As the Coalition Government promises to tear out large sections of the rulebook and relax targets in an 
attempt to ease the strain on struggling UK businesses, it is tempting to conclude that environmental 
sustainability initiatives can be put on a backburner. In crisis mode, the country and its commercial entities 
surely have more pressing concerns? 
Keeping the lights on remains one of them and this demands that organisations can continue to balance 
their books. Evidence has shown that there is a direct correlation between energy efficiency and cost 
efficiency for a business. As a result, the attention paid to carbon emissions monitoring and management 
is no longer something that is automatically handed over to corporate social responsibility and marketing 
teams. 
At more astute companies, the discipline is now firmly on the radar of the finance department. If 
international pledges and government targets around global warming have done anything positive for 
businesses, it is to encourage them to measure and gain an appreciation for just how much wastage goes 
on in companies – and how much this is costing them. 
The following white paper assesses the current landscape for carbon emission monitoring, exploring not 
only companies’ regulatory responsibilities for behaving in a more environmentally sustainable way but also 
how, through systematic, integrated measuring and reporting, they can substantially reduce their internal 
costs at a time when energy prices and other business costs are escalating at a punishing rate. 
Why bother with carbon reduction? 
Although it may not be a company directors’ most pressing priority, carbon reduction is incumbent on 
every business, every home and every individual. Not only ethically, but in order that mandatory targets 
are met so that companies are not fined and so that the UK does not fall short of the promises it has made 
as part of international treaties on climate change. 
Meeting targets 
Although the Government has other preoccupations at the moment, it has committed to meeting some 
onerous targets on curbing carbon emissions in a relatively tight timeframe. The Climate Change Act, 
which the UK adopted in 2008, defines a commitment to reduce carbon emissions to 80% below 1990 
levels by 2050. This, in turn, has prompted a whole host of Government policies, many of which affect the 
majority of UK business – some with significant penalties for non compliance. 
A good source on the latest measures affecting UK businesses is the Carbon Trust (see http://www. 
carbontrust.co.uk/Pages/Default.aspx). Its web site sets out guidelines targeted at different sizes and 
types of organisations, and highlights the following schemes as having direct impact on UK companies’ 
energy consumption and carbon production habits: 
www.advancedcomputersoftware.com/abs 
Version 2.1 0810 Copyright Advanced Business Software and Solutions Limited 2011 
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• Energy Efficiency Scheme (CRC) 
• Building regulations 
• Feed-in tariffs (FITs) 
• The EU Emissions Trading Scheme 
• Climate Change Agreements/Climate Change Levy 
• Renewable Energy Strategy 
Full details can be found in appendix 1 
Most recently, the Government has introduced the Greening Government ICT strategy. Again designed to 
feed into the UK’s overarching environmental targets, the scheme is intended specifically to minimise the 
impact of the UK Government on the environment through the way it uses IT, with a series of targets set 
out over the next three years. The strategy covers all central and local government offices. 
The particular importance of this individual development is that it highlights the positive contribution IT can 
make to reducing carbon emissions, particularly around exploiting ICT for the reduction of travel and use 
of paper, and encouraging behavioural changes within Government in support of greener working practices. 
As the Government is a major user of ICT, it must play a key role in driving change and set an example for 
other organisations, in the private sector. 
Corporate social responsibility & brand perception 
Setting an example is another strong motivator for organisations to get their houses in order 
environmentally. Corporate social responsibility commitments demand it, and companies owe it to their 
shareholders, staff and customers to do the right thing. In a business-to-business environment, it could 
affect who an organisation is able to trade with – a large powerful customer may veto or sanction suppliers 
based on their documented carbon performance if their own commitments to the environment dictate this. 
In numerous situations, a company with strong green credentials can expect to have an easier time – as an 
employer trying to attract the best talent, as a supplier trying to win new business in a difficult economic 
climate, and in broader PR terms. 
Greener is leaner: Cutting carbon also means cutting costs 
From a purely commercial perspective, the real driver for businesses to ‘go green’ is the parallel 
opportunities for significantly reducing operating costs through a measured reduction in wasteful practices. 
Any cut in travel, electricity use, paper distribution and inefficient IT practices should automatically 
translate into money added to the bottom line. The cynical could look to the hotel industry, which ‘in the 
interests of the environment’ asks guests to think twice before putting towels out to be laundered, or 
banks and utility companies that are pulling out all the stops to get customers to switch on online rather 
than paper billing. Such practices may indeed be part of a commitment to environmentally responsible 
business management, yet coincidentally such measures also reduce the associated workload and conserve 
the organisation’s resources (power use, processing and distribution costs, etc). 
Similarly, if a business reduces its carbon footprint by being more frugal in the way it manages its lighting, 
travel, IT data centre, it is not only able to tick sustainability boxes with all that means for good PR and 
compliance with targets, it is simultaneously delivering cost-efficiency wins for the board. 
The latest calculations by the Carbon Trust indicate that organisations across the public and private sectors 
could save £700 million a year on energy simply by using their lighting more efficiently (source: http://
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www.greenwisebusiness.co.uk/news/700m-in-energy-savings-to-be-made-on-lighting-says-carbon-trust- 
2871.aspx). 
The Trust, which claims that even low-cost measures such as switching lights off and adjusting basic 
controls and settings could add up to savings of up to £350 million a year, has just published a guide 
advising on cost-effective measures to address the wastage, including lighting refurbishment and sensor-based 
controls. Depending on the type of organisation, individual premises can expect to save anything 
between 20-50% of their annual lighting costs by taking a more intelligent approach to associated power 
consumption. 
Taking action 
So why aren’t more organisations proactive about making the requisite changes? Predominantly this is due 
to a lack of prioritisation: companies just aren’t making the time to (a) explore the potential and (b) plan 
and implement the necessary measures. Believing this requires resources and budget they cannot readily 
allocate to the initiative, many companies never quite get round to making a start. 
This is unfortunate, especially given that there is a wealth of advice, help and ‘friendly’ funding available to 
encourage companies to implement green strategies. And, once organisations start measuring their carbon 
emissions, giving them an idea of the scope for dual savings, the business case takes care of itself. 
Defra notes that all businesses can save money by using resources such as water, energy and raw 
materials more efficiently. It estimates that 2% of UK business profits per year may be lost through 
inefficient use of resources and that UK businesses could save around £23bn per year by making simple 
changes to use resources more efficiently and help protect the environment and natural environment. The 
call to action on its website is quite clear: “Businesses that don’t use resources more efficiently will miss 
out on potential commercial opportunities and will lose out as prices for scarce commodities rise.” 
Sources of financial help 
Of such perceived importance are greener businesses to the UK’s ability to meet its carbon reduction 
targets that the Government and its partners are offering a series of incentives for organisations willing to 
meet them half way. Although current austerity measures have resulted in a curbing of grants, new funding 
schemes are emerging which range from energy-efficiency loans, to grants encouraging greener forms of 
transport. 
One scheme is the so-called Green Deal, due to launch in October 2012, providing a number of sweeteners 
designed to encourage businesses and households out of their environmental apathy. A further £200 
million of funding has now been earmarked for the initiative, which is a measure of how committed the 
Government is to reducing global warming despite brutal budget cuts. 
The Green Deal will give building owners access to loans for loft and cavity wall insulation, lagging and 
other energy-efficiency measures. One of the terms of the scheme is that repayments - made via a 
surcharge on energy bills - are never more than the savings realised. 
In the meantime, the Carbon Trust offers leases, loans and other financing options from £1,000 upwards - 
with no maximum - to all types of organisations. Again, payments are calculated to ensure they are offset 
by the anticipated energy savings. (Visit http://www.carbontrust.co.uk/cut-carbon-reduce-costs/products-services/ 
financing/business-financing/pages/finance-overview.aspx.) 
If businesses are able to finance their own initiatives, the same principle applies – any money invested 
will be returned to them with dividends because of the long-term savings associated with less wasteful 
practices.
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Measuring and reporting on emissions 
Although they will have a good indication from the experiences of similar companies, organisations won’t 
know how much they themselves could save until they start monitoring their energy consumption and 
carbon output. Those qualifying as big carbon producers will be obliged to measure and report on this 
anyway, but this is a discipline that all companies should adopt as an extension of their general business 
performance accounting and reporting – never more so than now because of soaring energy prices. 
The good news is that carbon emissions information is being included increasingly on invoices and 
statements, making it easier for companies to collate, analyse and report on this data without having to fix 
monitoring technology to individual electronic devices or meters to wall sockets. 
Forecasting, budgeting & targets 
The most logical and effective way of measuring and managing carbon emissions is to integrate the process 
into organisations’ standard financial reporting systems. For all of the reasons outlined above, carbon 
accounting should no longer be thought of as a discrete activity. To have maximum benefit to the business, 
the information being collated needs to be considered for its impact on costs and budgets – not just for 
carbon reporting compliance purposes. 
For optimum insight and impact, any carbon accounting solution should feed into the company’s core 
financial system, which means choosing a solution that has been designed to integrate with other business 
software in this way – perhaps being a specialist module within a broader accounting software suite. Many 
large organisations that have been obliged to measure carbon emissions for some time have found that the 
software they are using limits their scope for broader cost and budgeting analysis using the carbon-based 
data. 
Given that electricity and gas bills and the like already contain carbon emissions data, the purchase 
ledger is one of the best places to monitor associated findings and cost implications. A fully functional 
and integrated carbon management module, incorporated within an accounting software suite that has 
been updated to recognise and extract CO2 data, will be able to extract or calculate carbon emissions and 
associated cost data from ALL accounting transactions. 
When it is processing expenses claims, for example, it will automatically assign CO2 statistics relating to 
car mileage, calculated according to the particular vehicle used and the type of fuel it uses. 
This, in turn, makes it much easier to forecast future CO2 emissions, and assess how changes in company 
behaviour will affect them – and with what impact on business costs. If car mileage is found to be a 
significant contributor to the company’s emissions, managers can explore the likely difference made by a 
change of vehicle, or the deployment of video conferencing as a replacement for some meetings. Similarly, 
an organisation can calculate the likely payback if introducing a more efficient and intelligent lighting 
system throughout its buildings. In this way, companies can begin to determine more reliably whether 
CO2 reduction targets are achievable, whether planned measures will go far enough and how much the 
reduction could save the business in real terms. 
Crucially, business managers will be able to drill down into the data too, to identify which departments emit 
the most carbon or practise the most wasteful habits, making teams and individuals more accountable. 
Specific functionality to look for 
A carbon accounting software system should enable an organisation to: 
• Enter relevant data, or extract this from other accounting systems 
• Convert data into carbon equivalents
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• Budget for future use 
• Compare actual usage with budgets 
• Produce summary and detailed reporting 
It should be possible for specific document types (including purchase invoices, journals and cashbook 
payments) to be flagged as relevant to carbon reporting, and default types and categories stored against 
GL expense codes, project activity codes and resources. Carbon data should be entered at line level for 
documents by selecting an emission type and category, and the values recorded in the units defined 
accordingly. These values will then be converted into carbon equivalent values and stored, at a transaction 
and summary level. 
The actual carbon values entered in this way can then be viewed in standard reports and enquiries within 
both General Ledger and Project Costing to: 
• Establish emission types/categories 
• Identify documents for carbon entry 
• Establish budgets 
• Enable reports & enquiries, for example: 
• Carbon formats within summary & detail reports 
• New balance types in summary balances report 
• Carbon actuals and budgets on all screens 
• Facilitate EDR reporting (GL/PJ/CA) 
Bringing about reductions 
Once organisations have a greater handle on their main sources of emissions and the associated 
opportunities for CO2 reduction and cost-cutting, they can begin to take action - by implementing more 
environmentally sustainable technologies, systems and processes, and by encouraging changes in 
employee behaviour. 
The biggest gains are typically possible through the following areas (see also Sources & Resources section 
below for links to numerous articles and sources of advice on ‘quick wins’ for businesses): 
• Lighting - Compact fluorescent lamps (CFL) offer reduced energy usage and a longer rated 
life compared to traditional incandescent bulbs, while LED lamps consume between 1 and 3 watts, 
potentially yielding a 94.5% saving. An LED lamp should last around 12 years. 
• Changing the culture - Careless or lazy staff are a company’s biggest enemy when it comes to 
trying to reduce carbon emissions. Leaving lights or monitors on, or printing every document, may 
seem inconsequential to the individual, but soon add up to costly wastage if half of the office is doing it. 
Initiatives should be led from the top, and best practices actively encouraged. 
• Open the blinds - Avoid artificial lighting as much as possible. It’s healthier, cleaner and cheaper 
to let natural light in. If an employee works in a dark corner, equip them with a lamp rather than turn 
on all the lights on. To avoid wasteful practice, use automatic sensors to turn lights off when no-one 
needs them.
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• Digitise - Avoid paper wherever possible, reducing printing and distribution costs, consuming less 
power and ensuring that content can be found easily because it’s all stored centrally and can be called 
up on any screen. Banking, invoicing, HR communications and newsletters, even payslips, can all be 
managed online now. It’s good for the environment, costs a lot less than managing paper, and is much 
easier to administer, track and manage for all concerned (encouraging greater personal accountability 
and information self-service). Storing paper is fraught with risk in any case: documents can be easily 
lost, and are vulnerable to fires and flooding, etc. They also take up a lot of physical space which could 
be put to better use. 
• Heating/air-conditioning - Turn the heating down or, if it’s hot, open a window. Adjusting the 
thermostat by just one degree can cut a company’s heating bill by around 8% a year, according to The 
Carbon Trust. Ideally, the thermostat should be no higher than 19 degrees. 
Carbon reduction technologies 
For organisation-wide carbon reductions, organisations should consider investing in technologies that 
replace high carbon emitting processes with more energy-efficient solutions. In addition to more efficient 
insulation, heating and lighting systems, the following solutions offer the double benefit of carbon and cost 
reduction: 
Document management systems 
Most organisations are trying to reduce their dependency on paper because it is inefficient in almost 
every conceivable way. The finance and HR departments are typically among the biggest generators and 
receivers of paper, between them handling contract, invoices, purchase orders, statements and CVs. 
By reducing the amount of paper that is produced and circulated, using document management and 
imaging systems, organisations can substantially reduce their carbon emissions. This is because cutting the 
printing, distribution and storage of paper reduces the use of power-consuming, heat-generating printers 
and photocopiers, not to mention the need for carbon-generating transport as documents are sent out 
by post or courier. Demonstrable ROI for document management solutions tend to have a relatively swift 
payback on the initial investment. 
Electronic procurement 
Procuring goods and services can prove an especially paper-intensive activity, which is driving 
organisations to manage the process electronically. A number of technologies can be used to automate 
the different stages of the procurement cycle, from electronic purchase requisition solutions to invoice 
authorisation and electronic payment technologies. As well as reducing the paper usage levels these 
systems also free up time by automating time consuming manual processes. 
Electronic payslips 
Organisations also need to consider how they communicate with their people. Payslips, for example, are 
often printed out and posted to staff on a monthly, even weekly basis. This is not only costly, but is energy 
consuming, sometimes occupying office printers for days on end. According to independent research, 
the production of a single paper payslip emits 2.8 grams of CO2. Electronic payslip technology enables 
payslips to be produced electronically and emailed out to all staff automatically, removing the need for the 
production and postage of paper payslips. 
Self-service solutions 
Online information portals and e-forms provide a further means of interacting with staff more efficiently 
and eco-consciously. Here, authorised managers and employees are able to serve themselves more readily,
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by checking their records, applying for holidays, tracking the process of applications, or updating their own 
details – such as bank account information or a change of address. Again, this is a powerful example of 
paper-based procedures being replaced with less carbon emitting automated processes, and delivering cost 
reduction and enhanced efficiency in a number of other areas. 
For the best results, companies should develop a clear strategy and assign managers to driving positive 
change through a structured programme of actions which is reviewed regularly. A proposed structure for 
such initiatives is provided on the web site of carbon management consultancy, Carbon Footprint: (see 
http://www.carbonfootprint.com/businesssolutions.html). 
Three examples of good carbon and cost efficiency in action are set out below. 
A case in point (1): Changeworks 
Changeworks is a Scottish environmental charity, providing innovative services and businesses in energy 
and waste prevention. 
Given the organisation’s remit, Changeworks prides itself on following best practice when it comes to 
carbon and cost efficiency. To this end, it uses a comprehensive, integrated software suite which looks after 
financial management, electronic procurement and human capital management, and includes self-service 
functionality. 
Changeworks sought a flexible system to improve organisation-wide efficiency because it has staff located 
in remote locations such as the Highlands and Scottish islands who need to quickly access and distribute 
comprehensive financial information wherever they are. By streamlining invoice authorisation and expenses 
processes and approving everything electronically, the charity is now able to significantly reduce paper 
consumption and carbon emissions, supporting its green agenda. 
In HR, Changeworks can now easily store, update, retrieve and process employee information with 
automated functionality that replaces manual processes and spreadsheets. Not only does this give 
managers real-time staff information, but employees can now serve themselves by directly accessing and 
updating HR information such as annual leave requests and personal data. 
A case in point (2): Cornwall College 
Cornwall College is the third largest further and higher education college in the UK, serving 45,000 
students. It has implemented a financial management system with integrated budgeting, forecasting and 
planning functionality. This is cutting the time taken to budget and forecast, and enables the electronic 
circulation of over 100,000 documents. 
Document imaging functionality combined with integrated workflow functionality will enable the paperless 
circulation, approval and storage of business documents, largely eliminating the College’s reliance on paper 
across eight sites. 
A case in point (3): The Royal Parks 
The Royal Parks (TRP) is an executive government agency responsible for administering and maintaining 
London’s Royal Parks. It chose to implement a financial management system with integrated electronic 
document imaging and workflow functionality to replace time-consuming paper-based procurement 
processes and improve the visibility of financial information. The system will also give the agency tighter 
control over its project management costs. HR self-service and workflow functionality are also part of TRP’s 
plans. 
The new software will enable staff to raise purchase orders and approve purchase invoices remotely,
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eliminating inefficient paper-based processes. Budget holders will also be able to electronically create, 
circulate and access financial reports directly from the system, creating a paperless office while maintaining 
high levels of visibility of key financial details. Crucially, reporting will be improved, both in terms of speed 
and the availability of information that is produced. This will make it easier for non-finance staff to drill 
down and understand comprehensive financial data without requiring further clarification, and free up the 
finance team’s time. 
Further plans include adding in a budgeting and forecasting system to enable users to easily enter, process 
and view financial data directly from the desktop in real time, replacing the time-consuming manual 
consolidation of spreadsheets. 
The carbon clincher 
In each of these examples, the potential to further introduce carbon accounting, management and 
reporting into the mix would enable substantial additional benefits. This would add a further dimension 
through which these organisations would be able to drive down costs and promote new internal efficiencies 
- while boosting their environmental credentials and complying with government targets around carbon 
reporting and performance improvements. 
Any organisation refreshing or expanding their existing accounting systems would be wise to consider this 
valuable additional functionality. 
Summary 
The days of organisations’ environmental policy being led by the marketing department are long gone. 
The economy may be in the red, but this should not detract from the green agenda. The Government still 
has strict targets to hit, and cannot hope to meet them without the full cooperation of the UK’s public and 
private sectors. 
To maximise the results of any environmental sustainability initiative, an organisation’s Board needs to 
drive the agenda from the top down. A critical success factor will be ensuring that waste – and successful 
waste reduction – is measured. Also, that the organisation’s culture and practices change in conjunction 
with the new strategy and any corresponding investments in ‘green’ technology – whether new lighting 
systems, low-energy computer equipment, employee self-service, e-procurement or e-payslip software. 
Combing environmental sustainability programmes with an internal efficiency drive is the best way to make 
a green strategy pay. But if that isn’t enough to persuade organisations of the value in carbon reduction 
initiatives, consider the penalties for companies that drag their feet. It is generally accepted that it is only 
a matter of time before all UK organisations will be required to comply with carbon measurement and 
reduction schemes, or else risk fines and poor public ratings, so inertia is a risky state to maintain. 
In the public sector, which is rapidly taking the lead on climate change because of the imperative of the 
Government to lead from the front, the results speak for themselves about what’s possible. Over the past 
eight years, the Carbon Trust has helped over 2,500 public sector bodies cut 12 million tonnes of CO2 and 
save £426 million (net of project costs) through projects that typically pay back in less than five years 
(source: Carbon Trust, November 2011: http://www.carbontrust.co.uk/news/news/press-centre/2011/ 
Pages/public-sector-carbon-targets.aspx). 
Based on projects currently in the pipeline, the Trust has identified a further £2bn in potential cost savings 
and 80 million tonnes in potential carbon reductions. To date, carbon management projects have included 
292 local authorities, 102 NHS Trusts, 17 central government organisations and 110 higher education 
institutions. 
Private businesses could learn a lot from such initiatives.
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Sources & resources: 
Carbon Trust: Why save carbon? http://www.carbontrust.co.uk/cut-carbon-reduce-costs/reasons/why-save- 
carbon/pages/why-save-carbon.aspx 
UK SMEs losing £7.7bn a year through energy inefficiency (article): http://www.inspiresme.co.uk/ 
news/green/uk-smes-losing-%C2%A37-7bn-a-year-through-energy-ineffi-06679/ 
Carbon reduction commitment http://www.carbontrust.co.uk/policy-legislation/business-public-sector/ 
pages/carbon-reduction-commitment.aspx 
CRC requirements: http://www.decc.gov.uk/en/content/cms/emissions/crc_efficiency/crc_efficiency.aspx 
Defra advice and details of potential savings: http://www.defra.gov.uk/environment/economy/ 
business-efficiency/ 
101 Ways UK Small Businesses Can Save Energy And Lower Their Costs (source: GreenWise): 
http://www.greenwisebusiness.co.uk/news/101-ways-uk-small-businesses-can-save-energy-and-lower-their- 
costs-2841.aspx 
Five easy ways to cut your business energy bill (article): http://www.inspiresme.co.uk/green/ 
carbon-reporting/five-easy-ways-to-cut-your-business-energy-bill/ 
Details of available incentives for business sustainability initiatives (source: GreenWise): http:// 
www.greenwisebusiness.co.uk/resources/green-grants-and-funding-16.aspx 
Carbon Trust finance for green initiatives: http://www.carbontrust.co.uk/cut-carbon-reduce-costs/ 
products-services/financing/business-financing/pages/finance-overview.aspx & http://www.carbontrust. 
co.uk/cut-carbon-reduce-costs/products-services/financing/Pages/financing.aspx 
Details of Advanced Business Software’s carbon accounting software: http://www. 
advancedcomputersoftware.com/abs/news/carbon-accounting.php 
Where to look for carbon efficiency gains (Guardian article, July 2011): http://www.guardian. 
co.uk/sustainable-business/carbon-efficient-offices-energy-savings 
The low carbon workplace: http://www.lowcarbonworkplace.com/ 
How to cut carbon emissions from business buildings (source: Business Link): http://www. 
businesslink.gov.uk/bdotg/action/detail?itemId=1080445942&type=RESOURCES 
Office equipment and energy efficiency: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1 
086891850&type=RESOURCES 
5 ways a company can reduce its carbon footprint: http://www.howto-guidebook.com/4119/5-ways-a- 
company-can-reduce-its-carbon-footprint 
A proposed Energy Performance Programme (source Carbon Footprint, a carbon management 
consultancy): http://www.carbonfootprint.com/businesssolutions.html 
Changeworks case study: http://www.advancedcomputersoftware.com/abs/news/changeworks-implements- 
coa-solutions.php 
Cornwall College case study: http://www.advancedcomputersoftware.com/abs/news/cornwall-college. 
php 
The Royal Parks case study: http://www.advancedcomputersoftware.com/abs/news/royal-parks-
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January 2012 
finance-system.php 
Appendix 1: The latest measures affecting UK businesses is the 
Carbon Trust see http://www.carbontrust.co.uk/Pages/Default.aspx). 
Energy Efficiency Scheme (CRC) - Effective as of 2010, this currently applies only to organisations 
consuming more than 6,000 MWh of electricity in 2008 (equivalent to an annual electricity bill of about 
£500,000). These organisations must purchase and surrender allowances each year to cover their CO2 
emissions. More details can be found at http://www.carbontrust.co.uk/policy-legislation/business-public-sector/ 
pages/carbon-reduction-commitment.aspx. Although this does not apply directly to smaller 
and mid-sized organisations at present, it is likely to be only a matter of time before requirements are 
broadened. 
Building regulations - Because buildings are responsible for 40% of UK emissions, the Government has 
taken measures to ensure that new-build premises meet stringent environmental sustainability and energy 
efficiency criteria (all new commercial buildings must be carbon neutral by 2019), while mandatory energy 
certificates ensure that a building’s energy performance is measured consistently and objectively. All 
commercial buildings now require an Energy Performance Certificate (EPC) by law when built, sold or put 
up for rent. 
Feed-in tariffs (FITs) - These provide a financial incentive for businesses to make use of small-scale 
renewable technologies. Small-scale low carbon electricity generators receive payment for electricity 
produced and for the excess exported to the grid. 
Energy-intensive industries, meanwhile, have other commitments they must meet, complying with: 
The EU Emissions Trading Scheme - This puts a cap on the CO2 emitted by business and creates a 
market and price for carbon allowances. 
Climate Change Agreements/Climate Change Levy - This applies a tax on energy bills across the 
business and public sector to encourage energy efficiency. 
Renewable Energy Strategy - This sets out how the UK aims to increase the amount of energy it gets 
from renewable sources to 15% by 2020. 
Further information and advice can be found on the Defra web site at http://www.defra.gov.uk/ 
environment/economy/business-efficiency/. 
About Business Solutions 
Advanced Business Solutions, an Advanced Computer Software Group plc company, provides leading integrated business applications and services that enable 
public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. 
It’s award-winning software systems comprise core financial management, procurement, human resource and payroll systems, integrated with a range 
of collaborative, document management and business intelligence solutions . It also provides managed and bureau service options. 
Advanced Computer Software Group plc is the UK’s leading supplier of software and IT services to the health, care and commercial sectors. 
It comprises 3 main divisions and has 7000 customers and 800 staff worldwide. 
For more information 
Advanced Business Solutions is a brand name of Advanced Business Software and Solutions Limited, registered in England, company 
number 03214465. Registered office: Munro House I Portsmouth Road I Cobham I Surrey I KT11 1TF. 
t: +44 (0) 08451 606 162 f: +44 (0) 1932 584 001 e: marketing@advancedcomputersoftware.com www.advancedcomputersoftware.com/abs 
Advanced Business Software and Solutions Limited recognises the trademarks of other companies and their respective products in this document.

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Making carbon reduction strategies pay

  • 1. Making carbon reduction strategies pay Business cost-cutting through intelligent monitoring of energy use An Advanced Business Solutions white paper Introduction As the Coalition Government promises to tear out large sections of the rulebook and relax targets in an attempt to ease the strain on struggling UK businesses, it is tempting to conclude that environmental sustainability initiatives can be put on a backburner. In crisis mode, the country and its commercial entities surely have more pressing concerns? Keeping the lights on remains one of them and this demands that organisations can continue to balance their books. Evidence has shown that there is a direct correlation between energy efficiency and cost efficiency for a business. As a result, the attention paid to carbon emissions monitoring and management is no longer something that is automatically handed over to corporate social responsibility and marketing teams. At more astute companies, the discipline is now firmly on the radar of the finance department. If international pledges and government targets around global warming have done anything positive for businesses, it is to encourage them to measure and gain an appreciation for just how much wastage goes on in companies – and how much this is costing them. The following white paper assesses the current landscape for carbon emission monitoring, exploring not only companies’ regulatory responsibilities for behaving in a more environmentally sustainable way but also how, through systematic, integrated measuring and reporting, they can substantially reduce their internal costs at a time when energy prices and other business costs are escalating at a punishing rate. Why bother with carbon reduction? Although it may not be a company directors’ most pressing priority, carbon reduction is incumbent on every business, every home and every individual. Not only ethically, but in order that mandatory targets are met so that companies are not fined and so that the UK does not fall short of the promises it has made as part of international treaties on climate change. Meeting targets Although the Government has other preoccupations at the moment, it has committed to meeting some onerous targets on curbing carbon emissions in a relatively tight timeframe. The Climate Change Act, which the UK adopted in 2008, defines a commitment to reduce carbon emissions to 80% below 1990 levels by 2050. This, in turn, has prompted a whole host of Government policies, many of which affect the majority of UK business – some with significant penalties for non compliance. A good source on the latest measures affecting UK businesses is the Carbon Trust (see http://www. carbontrust.co.uk/Pages/Default.aspx). Its web site sets out guidelines targeted at different sizes and types of organisations, and highlights the following schemes as having direct impact on UK companies’ energy consumption and carbon production habits: www.advancedcomputersoftware.com/abs Version 2.1 0810 Copyright Advanced Business Software and Solutions Limited 2011 White Paper January 2012
  • 2. White Paper January 2012 • Energy Efficiency Scheme (CRC) • Building regulations • Feed-in tariffs (FITs) • The EU Emissions Trading Scheme • Climate Change Agreements/Climate Change Levy • Renewable Energy Strategy Full details can be found in appendix 1 Most recently, the Government has introduced the Greening Government ICT strategy. Again designed to feed into the UK’s overarching environmental targets, the scheme is intended specifically to minimise the impact of the UK Government on the environment through the way it uses IT, with a series of targets set out over the next three years. The strategy covers all central and local government offices. The particular importance of this individual development is that it highlights the positive contribution IT can make to reducing carbon emissions, particularly around exploiting ICT for the reduction of travel and use of paper, and encouraging behavioural changes within Government in support of greener working practices. As the Government is a major user of ICT, it must play a key role in driving change and set an example for other organisations, in the private sector. Corporate social responsibility & brand perception Setting an example is another strong motivator for organisations to get their houses in order environmentally. Corporate social responsibility commitments demand it, and companies owe it to their shareholders, staff and customers to do the right thing. In a business-to-business environment, it could affect who an organisation is able to trade with – a large powerful customer may veto or sanction suppliers based on their documented carbon performance if their own commitments to the environment dictate this. In numerous situations, a company with strong green credentials can expect to have an easier time – as an employer trying to attract the best talent, as a supplier trying to win new business in a difficult economic climate, and in broader PR terms. Greener is leaner: Cutting carbon also means cutting costs From a purely commercial perspective, the real driver for businesses to ‘go green’ is the parallel opportunities for significantly reducing operating costs through a measured reduction in wasteful practices. Any cut in travel, electricity use, paper distribution and inefficient IT practices should automatically translate into money added to the bottom line. The cynical could look to the hotel industry, which ‘in the interests of the environment’ asks guests to think twice before putting towels out to be laundered, or banks and utility companies that are pulling out all the stops to get customers to switch on online rather than paper billing. Such practices may indeed be part of a commitment to environmentally responsible business management, yet coincidentally such measures also reduce the associated workload and conserve the organisation’s resources (power use, processing and distribution costs, etc). Similarly, if a business reduces its carbon footprint by being more frugal in the way it manages its lighting, travel, IT data centre, it is not only able to tick sustainability boxes with all that means for good PR and compliance with targets, it is simultaneously delivering cost-efficiency wins for the board. The latest calculations by the Carbon Trust indicate that organisations across the public and private sectors could save £700 million a year on energy simply by using their lighting more efficiently (source: http://
  • 3. White Paper January 2012 www.greenwisebusiness.co.uk/news/700m-in-energy-savings-to-be-made-on-lighting-says-carbon-trust- 2871.aspx). The Trust, which claims that even low-cost measures such as switching lights off and adjusting basic controls and settings could add up to savings of up to £350 million a year, has just published a guide advising on cost-effective measures to address the wastage, including lighting refurbishment and sensor-based controls. Depending on the type of organisation, individual premises can expect to save anything between 20-50% of their annual lighting costs by taking a more intelligent approach to associated power consumption. Taking action So why aren’t more organisations proactive about making the requisite changes? Predominantly this is due to a lack of prioritisation: companies just aren’t making the time to (a) explore the potential and (b) plan and implement the necessary measures. Believing this requires resources and budget they cannot readily allocate to the initiative, many companies never quite get round to making a start. This is unfortunate, especially given that there is a wealth of advice, help and ‘friendly’ funding available to encourage companies to implement green strategies. And, once organisations start measuring their carbon emissions, giving them an idea of the scope for dual savings, the business case takes care of itself. Defra notes that all businesses can save money by using resources such as water, energy and raw materials more efficiently. It estimates that 2% of UK business profits per year may be lost through inefficient use of resources and that UK businesses could save around £23bn per year by making simple changes to use resources more efficiently and help protect the environment and natural environment. The call to action on its website is quite clear: “Businesses that don’t use resources more efficiently will miss out on potential commercial opportunities and will lose out as prices for scarce commodities rise.” Sources of financial help Of such perceived importance are greener businesses to the UK’s ability to meet its carbon reduction targets that the Government and its partners are offering a series of incentives for organisations willing to meet them half way. Although current austerity measures have resulted in a curbing of grants, new funding schemes are emerging which range from energy-efficiency loans, to grants encouraging greener forms of transport. One scheme is the so-called Green Deal, due to launch in October 2012, providing a number of sweeteners designed to encourage businesses and households out of their environmental apathy. A further £200 million of funding has now been earmarked for the initiative, which is a measure of how committed the Government is to reducing global warming despite brutal budget cuts. The Green Deal will give building owners access to loans for loft and cavity wall insulation, lagging and other energy-efficiency measures. One of the terms of the scheme is that repayments - made via a surcharge on energy bills - are never more than the savings realised. In the meantime, the Carbon Trust offers leases, loans and other financing options from £1,000 upwards - with no maximum - to all types of organisations. Again, payments are calculated to ensure they are offset by the anticipated energy savings. (Visit http://www.carbontrust.co.uk/cut-carbon-reduce-costs/products-services/ financing/business-financing/pages/finance-overview.aspx.) If businesses are able to finance their own initiatives, the same principle applies – any money invested will be returned to them with dividends because of the long-term savings associated with less wasteful practices.
  • 4. White Paper January 2012 Measuring and reporting on emissions Although they will have a good indication from the experiences of similar companies, organisations won’t know how much they themselves could save until they start monitoring their energy consumption and carbon output. Those qualifying as big carbon producers will be obliged to measure and report on this anyway, but this is a discipline that all companies should adopt as an extension of their general business performance accounting and reporting – never more so than now because of soaring energy prices. The good news is that carbon emissions information is being included increasingly on invoices and statements, making it easier for companies to collate, analyse and report on this data without having to fix monitoring technology to individual electronic devices or meters to wall sockets. Forecasting, budgeting & targets The most logical and effective way of measuring and managing carbon emissions is to integrate the process into organisations’ standard financial reporting systems. For all of the reasons outlined above, carbon accounting should no longer be thought of as a discrete activity. To have maximum benefit to the business, the information being collated needs to be considered for its impact on costs and budgets – not just for carbon reporting compliance purposes. For optimum insight and impact, any carbon accounting solution should feed into the company’s core financial system, which means choosing a solution that has been designed to integrate with other business software in this way – perhaps being a specialist module within a broader accounting software suite. Many large organisations that have been obliged to measure carbon emissions for some time have found that the software they are using limits their scope for broader cost and budgeting analysis using the carbon-based data. Given that electricity and gas bills and the like already contain carbon emissions data, the purchase ledger is one of the best places to monitor associated findings and cost implications. A fully functional and integrated carbon management module, incorporated within an accounting software suite that has been updated to recognise and extract CO2 data, will be able to extract or calculate carbon emissions and associated cost data from ALL accounting transactions. When it is processing expenses claims, for example, it will automatically assign CO2 statistics relating to car mileage, calculated according to the particular vehicle used and the type of fuel it uses. This, in turn, makes it much easier to forecast future CO2 emissions, and assess how changes in company behaviour will affect them – and with what impact on business costs. If car mileage is found to be a significant contributor to the company’s emissions, managers can explore the likely difference made by a change of vehicle, or the deployment of video conferencing as a replacement for some meetings. Similarly, an organisation can calculate the likely payback if introducing a more efficient and intelligent lighting system throughout its buildings. In this way, companies can begin to determine more reliably whether CO2 reduction targets are achievable, whether planned measures will go far enough and how much the reduction could save the business in real terms. Crucially, business managers will be able to drill down into the data too, to identify which departments emit the most carbon or practise the most wasteful habits, making teams and individuals more accountable. Specific functionality to look for A carbon accounting software system should enable an organisation to: • Enter relevant data, or extract this from other accounting systems • Convert data into carbon equivalents
  • 5. White Paper January 2012 • Budget for future use • Compare actual usage with budgets • Produce summary and detailed reporting It should be possible for specific document types (including purchase invoices, journals and cashbook payments) to be flagged as relevant to carbon reporting, and default types and categories stored against GL expense codes, project activity codes and resources. Carbon data should be entered at line level for documents by selecting an emission type and category, and the values recorded in the units defined accordingly. These values will then be converted into carbon equivalent values and stored, at a transaction and summary level. The actual carbon values entered in this way can then be viewed in standard reports and enquiries within both General Ledger and Project Costing to: • Establish emission types/categories • Identify documents for carbon entry • Establish budgets • Enable reports & enquiries, for example: • Carbon formats within summary & detail reports • New balance types in summary balances report • Carbon actuals and budgets on all screens • Facilitate EDR reporting (GL/PJ/CA) Bringing about reductions Once organisations have a greater handle on their main sources of emissions and the associated opportunities for CO2 reduction and cost-cutting, they can begin to take action - by implementing more environmentally sustainable technologies, systems and processes, and by encouraging changes in employee behaviour. The biggest gains are typically possible through the following areas (see also Sources & Resources section below for links to numerous articles and sources of advice on ‘quick wins’ for businesses): • Lighting - Compact fluorescent lamps (CFL) offer reduced energy usage and a longer rated life compared to traditional incandescent bulbs, while LED lamps consume between 1 and 3 watts, potentially yielding a 94.5% saving. An LED lamp should last around 12 years. • Changing the culture - Careless or lazy staff are a company’s biggest enemy when it comes to trying to reduce carbon emissions. Leaving lights or monitors on, or printing every document, may seem inconsequential to the individual, but soon add up to costly wastage if half of the office is doing it. Initiatives should be led from the top, and best practices actively encouraged. • Open the blinds - Avoid artificial lighting as much as possible. It’s healthier, cleaner and cheaper to let natural light in. If an employee works in a dark corner, equip them with a lamp rather than turn on all the lights on. To avoid wasteful practice, use automatic sensors to turn lights off when no-one needs them.
  • 6. White Paper January 2012 • Digitise - Avoid paper wherever possible, reducing printing and distribution costs, consuming less power and ensuring that content can be found easily because it’s all stored centrally and can be called up on any screen. Banking, invoicing, HR communications and newsletters, even payslips, can all be managed online now. It’s good for the environment, costs a lot less than managing paper, and is much easier to administer, track and manage for all concerned (encouraging greater personal accountability and information self-service). Storing paper is fraught with risk in any case: documents can be easily lost, and are vulnerable to fires and flooding, etc. They also take up a lot of physical space which could be put to better use. • Heating/air-conditioning - Turn the heating down or, if it’s hot, open a window. Adjusting the thermostat by just one degree can cut a company’s heating bill by around 8% a year, according to The Carbon Trust. Ideally, the thermostat should be no higher than 19 degrees. Carbon reduction technologies For organisation-wide carbon reductions, organisations should consider investing in technologies that replace high carbon emitting processes with more energy-efficient solutions. In addition to more efficient insulation, heating and lighting systems, the following solutions offer the double benefit of carbon and cost reduction: Document management systems Most organisations are trying to reduce their dependency on paper because it is inefficient in almost every conceivable way. The finance and HR departments are typically among the biggest generators and receivers of paper, between them handling contract, invoices, purchase orders, statements and CVs. By reducing the amount of paper that is produced and circulated, using document management and imaging systems, organisations can substantially reduce their carbon emissions. This is because cutting the printing, distribution and storage of paper reduces the use of power-consuming, heat-generating printers and photocopiers, not to mention the need for carbon-generating transport as documents are sent out by post or courier. Demonstrable ROI for document management solutions tend to have a relatively swift payback on the initial investment. Electronic procurement Procuring goods and services can prove an especially paper-intensive activity, which is driving organisations to manage the process electronically. A number of technologies can be used to automate the different stages of the procurement cycle, from electronic purchase requisition solutions to invoice authorisation and electronic payment technologies. As well as reducing the paper usage levels these systems also free up time by automating time consuming manual processes. Electronic payslips Organisations also need to consider how they communicate with their people. Payslips, for example, are often printed out and posted to staff on a monthly, even weekly basis. This is not only costly, but is energy consuming, sometimes occupying office printers for days on end. According to independent research, the production of a single paper payslip emits 2.8 grams of CO2. Electronic payslip technology enables payslips to be produced electronically and emailed out to all staff automatically, removing the need for the production and postage of paper payslips. Self-service solutions Online information portals and e-forms provide a further means of interacting with staff more efficiently and eco-consciously. Here, authorised managers and employees are able to serve themselves more readily,
  • 7. White Paper January 2012 by checking their records, applying for holidays, tracking the process of applications, or updating their own details – such as bank account information or a change of address. Again, this is a powerful example of paper-based procedures being replaced with less carbon emitting automated processes, and delivering cost reduction and enhanced efficiency in a number of other areas. For the best results, companies should develop a clear strategy and assign managers to driving positive change through a structured programme of actions which is reviewed regularly. A proposed structure for such initiatives is provided on the web site of carbon management consultancy, Carbon Footprint: (see http://www.carbonfootprint.com/businesssolutions.html). Three examples of good carbon and cost efficiency in action are set out below. A case in point (1): Changeworks Changeworks is a Scottish environmental charity, providing innovative services and businesses in energy and waste prevention. Given the organisation’s remit, Changeworks prides itself on following best practice when it comes to carbon and cost efficiency. To this end, it uses a comprehensive, integrated software suite which looks after financial management, electronic procurement and human capital management, and includes self-service functionality. Changeworks sought a flexible system to improve organisation-wide efficiency because it has staff located in remote locations such as the Highlands and Scottish islands who need to quickly access and distribute comprehensive financial information wherever they are. By streamlining invoice authorisation and expenses processes and approving everything electronically, the charity is now able to significantly reduce paper consumption and carbon emissions, supporting its green agenda. In HR, Changeworks can now easily store, update, retrieve and process employee information with automated functionality that replaces manual processes and spreadsheets. Not only does this give managers real-time staff information, but employees can now serve themselves by directly accessing and updating HR information such as annual leave requests and personal data. A case in point (2): Cornwall College Cornwall College is the third largest further and higher education college in the UK, serving 45,000 students. It has implemented a financial management system with integrated budgeting, forecasting and planning functionality. This is cutting the time taken to budget and forecast, and enables the electronic circulation of over 100,000 documents. Document imaging functionality combined with integrated workflow functionality will enable the paperless circulation, approval and storage of business documents, largely eliminating the College’s reliance on paper across eight sites. A case in point (3): The Royal Parks The Royal Parks (TRP) is an executive government agency responsible for administering and maintaining London’s Royal Parks. It chose to implement a financial management system with integrated electronic document imaging and workflow functionality to replace time-consuming paper-based procurement processes and improve the visibility of financial information. The system will also give the agency tighter control over its project management costs. HR self-service and workflow functionality are also part of TRP’s plans. The new software will enable staff to raise purchase orders and approve purchase invoices remotely,
  • 8. White Paper January 2012 eliminating inefficient paper-based processes. Budget holders will also be able to electronically create, circulate and access financial reports directly from the system, creating a paperless office while maintaining high levels of visibility of key financial details. Crucially, reporting will be improved, both in terms of speed and the availability of information that is produced. This will make it easier for non-finance staff to drill down and understand comprehensive financial data without requiring further clarification, and free up the finance team’s time. Further plans include adding in a budgeting and forecasting system to enable users to easily enter, process and view financial data directly from the desktop in real time, replacing the time-consuming manual consolidation of spreadsheets. The carbon clincher In each of these examples, the potential to further introduce carbon accounting, management and reporting into the mix would enable substantial additional benefits. This would add a further dimension through which these organisations would be able to drive down costs and promote new internal efficiencies - while boosting their environmental credentials and complying with government targets around carbon reporting and performance improvements. Any organisation refreshing or expanding their existing accounting systems would be wise to consider this valuable additional functionality. Summary The days of organisations’ environmental policy being led by the marketing department are long gone. The economy may be in the red, but this should not detract from the green agenda. The Government still has strict targets to hit, and cannot hope to meet them without the full cooperation of the UK’s public and private sectors. To maximise the results of any environmental sustainability initiative, an organisation’s Board needs to drive the agenda from the top down. A critical success factor will be ensuring that waste – and successful waste reduction – is measured. Also, that the organisation’s culture and practices change in conjunction with the new strategy and any corresponding investments in ‘green’ technology – whether new lighting systems, low-energy computer equipment, employee self-service, e-procurement or e-payslip software. Combing environmental sustainability programmes with an internal efficiency drive is the best way to make a green strategy pay. But if that isn’t enough to persuade organisations of the value in carbon reduction initiatives, consider the penalties for companies that drag their feet. It is generally accepted that it is only a matter of time before all UK organisations will be required to comply with carbon measurement and reduction schemes, or else risk fines and poor public ratings, so inertia is a risky state to maintain. In the public sector, which is rapidly taking the lead on climate change because of the imperative of the Government to lead from the front, the results speak for themselves about what’s possible. Over the past eight years, the Carbon Trust has helped over 2,500 public sector bodies cut 12 million tonnes of CO2 and save £426 million (net of project costs) through projects that typically pay back in less than five years (source: Carbon Trust, November 2011: http://www.carbontrust.co.uk/news/news/press-centre/2011/ Pages/public-sector-carbon-targets.aspx). Based on projects currently in the pipeline, the Trust has identified a further £2bn in potential cost savings and 80 million tonnes in potential carbon reductions. To date, carbon management projects have included 292 local authorities, 102 NHS Trusts, 17 central government organisations and 110 higher education institutions. Private businesses could learn a lot from such initiatives.
  • 9. White Paper January 2012 Sources & resources: Carbon Trust: Why save carbon? http://www.carbontrust.co.uk/cut-carbon-reduce-costs/reasons/why-save- carbon/pages/why-save-carbon.aspx UK SMEs losing £7.7bn a year through energy inefficiency (article): http://www.inspiresme.co.uk/ news/green/uk-smes-losing-%C2%A37-7bn-a-year-through-energy-ineffi-06679/ Carbon reduction commitment http://www.carbontrust.co.uk/policy-legislation/business-public-sector/ pages/carbon-reduction-commitment.aspx CRC requirements: http://www.decc.gov.uk/en/content/cms/emissions/crc_efficiency/crc_efficiency.aspx Defra advice and details of potential savings: http://www.defra.gov.uk/environment/economy/ business-efficiency/ 101 Ways UK Small Businesses Can Save Energy And Lower Their Costs (source: GreenWise): http://www.greenwisebusiness.co.uk/news/101-ways-uk-small-businesses-can-save-energy-and-lower-their- costs-2841.aspx Five easy ways to cut your business energy bill (article): http://www.inspiresme.co.uk/green/ carbon-reporting/five-easy-ways-to-cut-your-business-energy-bill/ Details of available incentives for business sustainability initiatives (source: GreenWise): http:// www.greenwisebusiness.co.uk/resources/green-grants-and-funding-16.aspx Carbon Trust finance for green initiatives: http://www.carbontrust.co.uk/cut-carbon-reduce-costs/ products-services/financing/business-financing/pages/finance-overview.aspx & http://www.carbontrust. co.uk/cut-carbon-reduce-costs/products-services/financing/Pages/financing.aspx Details of Advanced Business Software’s carbon accounting software: http://www. advancedcomputersoftware.com/abs/news/carbon-accounting.php Where to look for carbon efficiency gains (Guardian article, July 2011): http://www.guardian. co.uk/sustainable-business/carbon-efficient-offices-energy-savings The low carbon workplace: http://www.lowcarbonworkplace.com/ How to cut carbon emissions from business buildings (source: Business Link): http://www. businesslink.gov.uk/bdotg/action/detail?itemId=1080445942&type=RESOURCES Office equipment and energy efficiency: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1 086891850&type=RESOURCES 5 ways a company can reduce its carbon footprint: http://www.howto-guidebook.com/4119/5-ways-a- company-can-reduce-its-carbon-footprint A proposed Energy Performance Programme (source Carbon Footprint, a carbon management consultancy): http://www.carbonfootprint.com/businesssolutions.html Changeworks case study: http://www.advancedcomputersoftware.com/abs/news/changeworks-implements- coa-solutions.php Cornwall College case study: http://www.advancedcomputersoftware.com/abs/news/cornwall-college. php The Royal Parks case study: http://www.advancedcomputersoftware.com/abs/news/royal-parks-
  • 10. White Paper January 2012 finance-system.php Appendix 1: The latest measures affecting UK businesses is the Carbon Trust see http://www.carbontrust.co.uk/Pages/Default.aspx). Energy Efficiency Scheme (CRC) - Effective as of 2010, this currently applies only to organisations consuming more than 6,000 MWh of electricity in 2008 (equivalent to an annual electricity bill of about £500,000). These organisations must purchase and surrender allowances each year to cover their CO2 emissions. More details can be found at http://www.carbontrust.co.uk/policy-legislation/business-public-sector/ pages/carbon-reduction-commitment.aspx. Although this does not apply directly to smaller and mid-sized organisations at present, it is likely to be only a matter of time before requirements are broadened. Building regulations - Because buildings are responsible for 40% of UK emissions, the Government has taken measures to ensure that new-build premises meet stringent environmental sustainability and energy efficiency criteria (all new commercial buildings must be carbon neutral by 2019), while mandatory energy certificates ensure that a building’s energy performance is measured consistently and objectively. All commercial buildings now require an Energy Performance Certificate (EPC) by law when built, sold or put up for rent. Feed-in tariffs (FITs) - These provide a financial incentive for businesses to make use of small-scale renewable technologies. Small-scale low carbon electricity generators receive payment for electricity produced and for the excess exported to the grid. Energy-intensive industries, meanwhile, have other commitments they must meet, complying with: The EU Emissions Trading Scheme - This puts a cap on the CO2 emitted by business and creates a market and price for carbon allowances. Climate Change Agreements/Climate Change Levy - This applies a tax on energy bills across the business and public sector to encourage energy efficiency. Renewable Energy Strategy - This sets out how the UK aims to increase the amount of energy it gets from renewable sources to 15% by 2020. Further information and advice can be found on the Defra web site at http://www.defra.gov.uk/ environment/economy/business-efficiency/. About Business Solutions Advanced Business Solutions, an Advanced Computer Software Group plc company, provides leading integrated business applications and services that enable public, private and third sector organisations to retain control, improve visibility and gain efficiencies whilst continually improving corporate performance. It’s award-winning software systems comprise core financial management, procurement, human resource and payroll systems, integrated with a range of collaborative, document management and business intelligence solutions . It also provides managed and bureau service options. Advanced Computer Software Group plc is the UK’s leading supplier of software and IT services to the health, care and commercial sectors. It comprises 3 main divisions and has 7000 customers and 800 staff worldwide. For more information Advanced Business Solutions is a brand name of Advanced Business Software and Solutions Limited, registered in England, company number 03214465. Registered office: Munro House I Portsmouth Road I Cobham I Surrey I KT11 1TF. t: +44 (0) 08451 606 162 f: +44 (0) 1932 584 001 e: marketing@advancedcomputersoftware.com www.advancedcomputersoftware.com/abs Advanced Business Software and Solutions Limited recognises the trademarks of other companies and their respective products in this document.