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This episode is the second of our 7-part mini-series explaining our Carbonology service, a 7 step methodology to help companies become Carbon Neutral.

We’re joined by our resident Carbonologist David Algar to talk through the second step of the Carbonology process, Quantify.

What does the Quantify Step entail?

Calculating your emissions : This will be carried out for Scope 1 2 and 3 emissions.

• Scope 1 refers to sources you own, and are direct emissions from combustion or fugitive emissions from systems that contain GHGs, so gases that have escaped from somewhere they shouldn’t have such as an AC system.
• Scope 2 are emissions from imported energy, this refers to electricity for most organisations but can also include steam, heating and cooling. For ISO 14064 and PAS 2060 you’ll need to quantify 100% of the Scope 1 and 2 emissions within boundaries
• Scope 3 refers to all other indirect emissions from sources you don’t own or necessarily have control over. For example business travel in vehicles your staff own. Scope 3 makes up the majority of emissions for most organisations and is generally more complex to gather data for.

What information do you need to quantify your emissions?

You’ll need to collect and process data. This can be:

• Activity or financial data on a specific source. Common examples include utilities bills, meter readings and expense reports for business travel or fright
• Interviews and surveys. For instance a survey to better understand how staff commute to work, or the proportion of staff that work from home.

Why is Transparency so important?

There are 6 key principles of ISO 14064, but one David is particularly mindful of is Transparency.

• Ultimately your work will be made publicly available, and not everyone may agree with your methods, but you’ll need to record all estimates, assumptions, exclusions, and uncertainties associated with your methods. As well as generally being good practice, being transparent allows the end user of the work you produce to make informed decisions with a reasonable degree of confidence.

So what’s the purpose of quantification?

As well as giving you a total footprint for a specific time period, calculating your carbon footprint will enable you to do a few things:

• Firstly you’ll be able to see what are the most emission-intense areas of your organisation, i.e. where the emissions are coming from, whether this is a specific location, or activity or even department

• Secondly, by using this information you will be able to prioritise the areas that need to have their emissions reduced. This will form the basis of your Carbon Footprint Management Plan which we will go into more detail on in the next few episodes.

What are the Outcome and Deliverables?

One outcome of this exercise is a GHG Inventory. This is a requirement of ISO 14064 and put simply, is a big list of categorised emission sources, and the specific GHGs they produce. Here you’ll also list all emission conversion factors you used to turn activity data into tonnes of specific GHGs.

Another useful outcome is that you’ll be able to instantly and credibly respond to any tenders that require you present green credentials. As we’ve mentioned in previous podcasts, in the UK it is now a requirement for most large public sector contracts for the tendering organisation to outline its emissions.

Being able to easily present your carbon footprint to a potential tender could help in winning new business, particularly if you’ve completed this in line with an international recognised standard

Join us next week as we move onto the next step, Commit.

If you need assistance with implementing ISO 14064, PAS 2060, or another standard – Contact us!

David Algar is also available for a free Carbonology consultation until the end of March – Book your slot Here

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Today, we’re joined by our resident Carbonologist David Algar to discuss SECR.

What is SECR?

SECR stands for Streamlined Energy and Carbon Reporting, it stemmed from The Companies Act (2006) which was updated in 2013 to require quoted companies to report annual emissions in their directors’ report.

In 2018, the regulations were updated and an additional disclosure requirement for quoted companies was brought in. They now require energy use and associated GHG emissions to be reported by quoted companies, as well as by large, limited liability partnerships (LLPs).

Why was it introduced?

To increase awareness of a business’ energy use and emissions and to encourage the introduction of initiatives to reduce energy usage.

To provide organisations with the relevant data to make informed decisions.

To help increase visibility to key decision makers who may not have been aware of how much carbon their organisation is producing.

Provides transparency on an organisation’s emissions and energy use to external stakeholders.

Is it applicable to you?

SECR reporting is designed to apply to all quoted companies in the UK, as well as unquoted companies and LLPs defined as ‘large’ under the Companies Act 2006.

To be defined as ‘large’ under the Companies Act and therefore qualify for SECR reporting they must meet 2 or more of the following criteria:

• Have a turnover of £36m or more.
• Have a balance sheet of £18m or more.
• Have 250 or more employees.

Who does it not apply to?

Low energy users, those using less than 40MWh per year.

If disclosing energy use data could inadvertently reveal sensitive information about your business, or seriously detrimental to the interests of your business.

Not all public bodies are required to report.

If your data would not be practical to obtain.

What needs to be included?

This is where it gets slightly more complex as this is where reporting guidelines specify what you must report depending on if you are a quoted company compared to a large unquoted or LLP.

Similarities (what everyone needs to report):

• Their energy use in kWh and GHG emissions in tonnes of CO2 equivalent.
• Scope 1 and scope 2 emissions you are responsible for and a subset of scope 3 emissions relating to transport.
• Methodologies, at least one intensity ratio and finally, everyone must report on energy efficiency improvements.

Differences:

• A key difference between quoted companies and the other two types is that quoted companies must reference their global Scope 1 and 2 emissions they are responsible for, and what proportion of their emissions comes from international sources.
• For unquoted companies and LLPs there is more of a focus on Scope 3 emissions. You will need to report on the energy and emissions associated with Scope 3 transport. This mainly refers to leased road vehicles and vehicles staff own but use for business purposes (grey fleet), but also covers larger vehicles such as ships, planes and trains if you have directly paid for the fuel yourself.

What are the benefits for your organisation?

You would have quantified a significant proportion of your emissions, which paints a good picture of where your largest emission sources are from.

You would have just taken one of the first steps towards achieving carbon neutrality.

SECR also helps provide greater transparency for investors and other stakeholders.

It also supports other reporting such as ESOS and the new requirement for businesses looking to obtain large government contracts to have a carbon reduction plan in place.

How can Blackmores help?

By quantifying your emissions for your reporting period, in the long term we can help quantify any remaining emissions that are not referred to in SECR, specifically any remaining Scope 3s

We can also help provide clarity on the definitions of each scope and the subcategories within them.

We have various templates that we have created and refined to help simplify the process.

We can produce the SECR report, meeting all the requirements of UK Environmental Reporting Guidance, and as well as the main SECR report, we can produce the summary of your Director’s Report.

We’d love to hear your views and comments about the ISO Show, here’s how:

• Share the ISO Show on Twitter or Linkedin
• Leave an honest review on iTunes or Soundcloud. Your ratings and reviews really help, and we read each one.

If you’d like further information on how we can help you with Carbon verification, SECR or Carbon Neutrality, check out our Carbonology Service.