Blackmores ISO Consultancy Service: The creators of isology®

Businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets.

As a result, we’re seeing an increase in both mandatory and voluntary regulations that require carbon emissions reporting to verify your net zero claims.

In this episode, Mel continues the ESG Reporting Disclosures series by explaining what The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) are, the emissions reporting and verification requirements and who qualifies for ISSB S2.

You’ll learn

• What is ISSB S2?
• What is the scope of ISSB S2
• What are the emissions reporting requirements for ISSB S2?
• Emissions verification requirements
• Who qualifies for ISSB S2?

Resources

• Carbonology
• ISSB S2

In this episode, we talk about:

[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.

[02:10] Episode summary: Over the course of September, Mel will be exploring the latest climate change regulations that may affect your organisation. In this episode she dives into The International Sustainability Standards Board Climate-related Disclosures (ISSB S2).

[03:20] What is ISSB S2? – The International Sustainability Standards Board Climate-related Disclosures (ISSB S2) is a new global standard that mandates entities to provide comprehensive information about climate-related risks and opportunities.

The ISSB S2 was issued by the International Sustainability Standards Board on the 26th of June 2023 and is effective for annual reporting periods beginning on or after the 1st January 2024. The new standard ensures that companies disclose physical and transition risks and their potential impact on the move towards a low carbon economy.

[04:20] Further learning with Carbonology: Carbonology have created a half-day course which walks you through all of the various carbon reporting disclosures and sustainability disclosure reporting requirements.

If you would like to learn more, get in touch with Carbonology.

[07:00] What does ‘Acute and Chronic Physical risks’ mean in the context of ISSB S2? Climate related physical risks are risks resulting from climate change that could be event driven, so an example of an acute physical risk could arise from weather related events like storms, floods and heatwaves, which are increasing in frequency.

These could have a knock-on effect to businesses, taking a heat wave as the example, you will need to consider:

• Can your IT systems and datacentres cope with it?
• Have you got resilience built in to your operations to be able to deal with that sort of disruption to your organisation?

Chronic physical risks arise from longer term shifts in climatic patterns, including changes in precipitation and temperature, which could lead to sea level rises and reduced water availability and changes in soil productivity.

These risks could carry a weighty financial burden either through direct damage to assets, or indirectly through supply chain disruption.

[09:35] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo.

[11:43] What does ‘Transition risk’ mean in the context of ISSB S2? This is looking for a climate related transition plan, which should include targets, actions and resources for the transition towards a lower carbon economy.

This would include actions such as reducing greenhouse gas emissions.

[12:30] What is the scope of ISSB S2? This Standard applies to:

• climate-related risks to which the organisation is exposed, which are:
• climate-related physical risks; and (ii) climate-related transition risks; and
• climate-related opportunities available to the entity.

Climate-related risks and opportunities that could not reasonably be expected to affect an organisation’s prospects are outside the scope of this Standard.

• The Standard covers:-
• Governance
• Strategy
• Climate related risks and opportunities
• Business Model and Value Chain
• Financial position, financial performance and cash flows
• Climate resilience
• Risk Management

[14:10] What are the emissions reporting requirements for ISSB S2? –  Under ISSB S2, companies are required to measure and disclose their greenhouse gas (GHG) emissions across three scopes:

• Scope 1 Emissions: Direct emissions from owned or controlled sources. For example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.
• Scope 2 Emissions: Indirect emissions from the generation of purchased energy. This includes emissions from the production of electricity, steam, heating, and cooling consumed by the company.

• Scope 3 greenhouse gas emissions: Indirect greenhouse gas emissions (not included in Scope 2 greenhouse gas emissions) that occur in the value chain of an entity, including both upstream and downstream emissions. Scope 3 greenhouse gas emissions include the Scope 3 categories in the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011).

[16:20] Emissions verification requirements –  Under ISSB S2, companies are required to have their reported greenhouse gas (GHG) emissions data verified.

Verification can provide users of financial reports confidence that the information is complete, neutral and accurate.

Disclosure of inputs to Scope 3 greenhouse gas emissions needs to disclose information about the measurement approach, inputs and assumptions it uses.

[18:30] Who qualifies for ISSB S2? – ISSB S2 applies to all entities that are required by law, regulation, or administrative provision to prepare financial statements. This includes, but is not limited to:

• Publicly listed companies
• Large private companies
• Financial institutions such as banks and insurance companies
• State-owned enterprises

Entities are encouraged to adopt the ISSB S2 voluntarily, even if they are not mandated by law or regulation. Early adoption is permitted and encouraged to enhance transparency and accountability in climate-related disclosures.

If you would like some help with your carbon emissions reporting, please get in touch with Carbonology.

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.

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As the urgency to address the climate emergency heightens, businesses are coming under increasing pressure to monitor, report and reduce their energy use and carbon emissions to meet net zero targets.

As a result, there is an increase in regulations to ensure that companies are taking the climate emergency seriously and not pay lip service to climate action.

During September, we’ll be taking a look at a few of the latest regulations that may affect your organisation, including:

In this episode, Mel Blackmore breaks down what Streamlined Energy and Carbon Reporting (SECR) is, its reporting requirements, it’s qualifiers and how it can work in tandem with other carbon management initiatives.

You’ll learn

• How do these regulations relate to ESG reporting?
• What is Streamlined Energy and Carbon Reporting?
• What are the SECR Emissions Reporting Requirements?
• Who qualifies for SECR?
• How can SECR work with other carbon management initiatives?

Resources

• Carbonology
• SECR

In this episode, we talk about:

[00:30] Join the isologyhub – To get access to a suite of ISO related tools, training and templates. Simply head on over to isologyhub.com to either sign-up or book a demo.

[02:10] Episode summary: Over the course of September, Mel will be exploring the latest climate change regulations that may affect your organisation. In this episode she dives into Streamlined Energy and Carbon Reporting (SECR).

[03:20] How do these regulations relate to ESG reporting? – ESG requirements include a commitment to sustainability, and reducing your overall impact. All of these regulations contribute towards an organisations ESG reporting requirements, as they require tangible proof to back up your ESG claims.

They will require you to provide comprehensive emissions reporting, the level of detail of which will depend on the specific applicable regulation.

[04:05] Future content to look forward to: During September Mel will look at involuntary emissions reporting schemes, but in October she will be looking into the voluntary schemes that many are already adopting as part of their Stakeholder requirements.

This will include:

• CDP (Carbon Disclosure Project)
• EcoVardis

[05:50] What are the SECR Emissions Reporting Requirements?: SECR has been around since April 2019, and was originally introduced to replace the Carbon Reduction Commitment Scheme.

This is a mandatory scheme, so it is a legal requirement for those that meet it’s criteria. For those that are familiar with ESOS (The Energy Savings Opportunity Scheme), it functions in a very similar way.

This scheme isn’t solely focused on reporting energy usage and carbon emissions, it’s also looking for organisations to report on efficiency measures that are undertaken on an annual basis. Which is reflected in the financial reporting that you will also have to submit.

It’s important to note that SECR has specific requirements for the disclosure of greenhouse gas (GHG) emissions and energy consumption. Emission reporting requirements vary slightly between quoted companies and large unquoted companies and LLPs.

For quoted Companies:

• Global Scope 1 and 2 GHG emissions must be reported. Scope 3 emissions reporting is strongly recommended but voluntary.

For large unquoted companies and LLPs:

• UK based Scope 1 and Scope 2 emissions and associated energy consumption. Scope 3 emissions from the combustion of fuel in vehicles or equipment not owned by the company.

[10:10] Join the isologyhub and get access to limitless ISO resources – From as little as £99 a month, you can have unlimited access to hundreds of online training courses and achieve certification for completion of courses along the way, which will take you from learner to practitioner to leader in no time. Simply head on over to the isologyhub to sign-up or book a demo.

[12:05] Who qualifies for SECR?:  All UK Quoted Companies: Any company that has shares listed on the UK Stock Exchange is required to comply with SECR.

Large Unquoted Companies and Large LLPs: These are companies and Limited Liability Partnerships (LLPs) that are not listed on the UK Stock Exchange but meet two or more of the following criteria:

• Turnover: More than £36 million per annum.
• Balance Sheet Total: More than £18 million.
• Number of Employees: 250 or more employees.

These criteria ensure that SECR framework targets large organisations that have a significant impact on the UK’s energy consumption and carbon emissions. By complying with SECR, these organisations can contribute significantly to the UK’s sustainability goals.

[14:10] When is the SECR disclosure made? SECR reporting must occur alongside financial reporting, being included within annual reports and Directors’ Reports, which are then filed with Companies House.

[14:30] The importance of Accurate SECR Reporting and Carbon Reduction –  The reporting process can unlock valuable insights and opportunities for operational improvements, leading to enhanced energy efficiency and reduced carbon emissions over time.

Demonstrating your organisation’s commitment to energy efficiency and carbon reduction can enhance brand perception and foster positive relationships with stakeholders, including investors, clients, and regulators.

[16:05] Integrating SECR Reporting with Other Carbon Management Initiatives –  You are missing a trick if you’re keeping your SECR reporting separate from the rest of your business activities. It should be included as a part of your sustainability umbrella, and can be invaluable if you’re going for other reporting requirements such as EcoVardis and CSRD.

There’s no need to reinvent the wheel if you already have something like an Environmental Management System in place, simply weave the additional requirements in with your usual annual maintenance. Established systems will already be adhered to across the business, meaning any new requirements will soon become business as usual.

You could incorporate this as part of your Net Zero strategy, or Carbon Reduction Plan if PPN 06/21 is one of your reporting requirements. You could also incorporate this into your supply chain emissions reporting.

If you would like some help with SECR, please get in touch with Carbonology.

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.

Subscribe to keep up-to-date with our latest episodes:

Stitcher | Spotify | YouTube |iTunes | Soundcloud | Mailing List

Today we’re joined by Will Richardson, Founder and Managing Director of Green Element, to discuss how he helps other organizations become more environmentally friendly.

Will established Green Element in 2004 with a desire to help as many businesses as possible to go green.

A pioneer and early adopter of many now-mandatory environmental standards, his visionary approach, and inspiring leadership are exemplary.

Will also runs a podcast that is constantly featured in the top of the eco podcasts, and is a current board member and Chairman of the British Kitesports Association; the NGB to Kitesports; helping push kite sports within the Olympic sporting ecosystem.

In 2018, Will conceived Compare Your Footprint in response to demand from companies that want to reduce their carbon footprint but were not ready to engage with experts.

This episode, he shares how companies can most effectively tackle their energy and carbon management, and the science behind carbon reductions…

You’ll learn

• How Will helps organizations find the carbon footprint of their products.
• The importance of knowing the life cycle of your products.
• How to find out how much of an effect on the environment your product has.
• How long it takes to find out the life cycle of a product.
• How ‘Compare your Footprint’ helps organizations understand their carbon footprint and benchmark it.
•  Different types of benchmarking you can do and how to do it.
• The science we know around carbon reductions.
• Why offsetting causes organizations to increase their emissions.

Resources

• Blackmores
• The Green Element Website
• Compare your Footprint
• Sustainable Business Podcast
• Science Based Targets

In this episode, we talk about:

[01:10] How Will got involved with sustainable energy and carbon management.

[02:14] Why Will started his own business and how it’s changed over the years.

[03:58] How Green Element helps organizations become more environmental.

[05:15] The difference between the life cycle analysis for products or services.

[06:24] How long it takes to work out a product’s life cycle.

[07:30] The two different ways there are to look at carbon footprinting.

[10:51] Different types of benchmarking you can do and how to do it.

[14:26] How to successfully carry out energy data reporting and why you shouldn’t rush it.

[17:59] The problems with net carbon zero and carbon neutral targets, and the benefits of Science Based Targets.

[22:36] The complex nature of effective environmental strategies.

If you need assistance with implementing sustainable practices – Contact us!

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.

Subscribe to keep up-to-date with our latest episodes:

Stitcher | Spotify | YouTube |iTunes | Soundcloud

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.