corporate social responsibility Archives

What is driving corporate sustainability?

Posted on 25th March 202125th March 2021 by Evelyn Chapman

Rising interest in climate change means businesses are facing increased scrutiny over the environmental and social impacts of their practices. Mandatory carbon reporting already makes corporate sustainability obligatory for many big energy users. And securing funding in the future may entirely rely on a company’s ESG strategy thanks to financial guidelines like the TCFD.

Fortunately, there are many benefits to embracing corporate sustainability beyond ticking boxes. An organisation’s green credentials will only rise in value as the UK races towards its net zero target. Not to mention, at the heart of decarbonisation and sustainability is energy efficiency, which can uncover considerable cost savings.

There are various forces driving corporate sustainability, including a shift in consumer behaviour, policy changes and more ambitious government targets. These forecast a more permanent transformation in the business and finance sectors.

The race to net zero

The real fuel behind the environmental movement at the moment is the global race to net zero. Over the past year, the UK government has introduced new policies and plans to achieve net zero emissions by 2050. This includes new energy efficiency standards, increased renewable generation, hydrogen development, and a ban on petrol vehicles from 2030.

What is clear is that the green wave is coming. To stay competitive, businesses will have to create sustainable strategies that prepare them for a net zero economy.

EIC can be your partner in this journey, from the first energy audit through to accreditation. Along the way, we help manage all your energy admin and take the stress out of complex carbon legislation. The path to net zero can be difficult to navigate, but our experienced in-house team of energy specialists provide end-to-end simplification. Giving you peace of mind, and your organisation a green, resilient future.

The Task Force on Climate-related Financial Disclosures (TCFD)

In November 2020, Chancellor Rishi Sunak announced plans to make alignment with the TCFD guidelines mandatory in the UK. This will apply to most sectors of the economy by 2025 including listed companies, banks, and large private businesses.

The Task Force on Climate-related Financial Disclosures was established in 2015 by the international Financial Stability Board. It is based on the growing consensus that climate change has immediate effects on economic decisions.

This new step towards mandatory transparency will require a more holistic view of a company’s environmental footprint. It also confirms that investors are growing more aware of climate-related risks and are putting more faith in organisations that plan ahead. For this reason, it can be beneficial for organisations to follow TCFD guidelines, whether they are obligated to do so or not.

Impact investing and the rise of ESG

Environmental, Social and Governance strategies are not new to the corporate sector, but they have become more important in recent years. Now with a heightened focus on climate change and social justice, ESG is becoming essential for securing future investments.

This goes hand-in-hand with the rise in impact investing, which goes beyond mitigating risks and asks – how is your organisation positively impacting the planet? This trend has seen a rise in companies with social or environmental missions.

Why choose true sustainability?

The rise in climate action has led to some companies ‘greenwashing’. This is essentially when a company markets themselves as being ‘green’ without taking real action to reduce their environmental footprint.

There are many benefits to genuine environmental sustainability. The most important being an organisation’s longevity in a changing market.

If the recent shift in policy and finance has taught us anything it is that total transparency will be essential in the future. While ‘greenwashing’ may have some rewards now, it is poor preparation for a net zero economy. And though it may be cheaper in the short term, organisations that are ignoring their energy efficiency are missing out on significant long term savings.

Why choose EIC on your journey to net zero?

At EIC we know that building an environmentally and ethically sound business is not only the smart thing to do, it is the right thing to do. Our in-house team can guide you through energy monitoring, carbon footprinting, green procurement and compliance legislation. Our aim is to provide you with holistic energy management and sustainable solutions that boost your green reputation and financial savings.

TCFD: 4 key points from the recommendations

Posted on 20th November 202023rd March 2021 by Evelyn Chapman

The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015 by the international Financial Stability Board. It is based on the growing consensus that climate change has immediate effects on economic decisions. Investors are growing more aware of climate-related risks and putting more faith in organisations that are planning ahead.

In a recent series of environmental measures from the government, Chancellor Rishi Sunak announced plans to make alignment with the TCFD guidelines mandatory. This will apply to most sectors of the economy by 2025 including listed companies, banks, and large private businesses. This part of the green recovery plan aims to bolster the UK’s position as a global leader for green finance.

“By taking as many equivalence decisions as we can in the absence of clarity from the EU, we’re doing what’s right for the UK and providing firms with certainty and stability.”
– Chancellor Rishi Sunak

Can increased transparency help achieve net zero and a stable green economy? We look at the key points and benefits of the guidelines for the TFCD.

What are climate-related risks?

The Task Force broke down climate-related risks into two major categories:

risks related to the transition to a lower-carbon economy, and
risks related to the physical impacts of climate change.

Transition risks include shifts in policy and litigation, market, technology and reputation. Organisations are already seeing this impact with climate-related litigation and policy changes rising. Costs of operation, raw materials, and products are all vulnerable to shifts in policy, technology, and markets. And changes in consumer preferences and customer behaviour must also be taken into account.

Physical risks involve the effects of climate change on the natural world. These are broken down into two categories: acute and chronic risk. Acute risk involves extreme weather events such as wildfires or floods. Chronic risk refers to longer-term shifts in climate patterns. These could affect anything from an organisations supply chain to their employees’ safety.

What are climate-related opportunities?

In light of the potential risks posed by climate change, the TCFD also recommends several opportunities. These are solutions that can reduce risk and provide organisations with long-term stability.

Resource efficiency: Making your buildings and transportation as efficient as possible by integrating intelligent energy management, reducing water usage and consumption, and recycling.
Energy source: Implementing the use of clean energy sources through procurement or onsite generation and taking advantage of policy incentives.
Products and services: Developing low-emission goods or services and/or innovative climate-related products.
Markets: Having access to new markets and assets and use of public-sector incentives.
Resilience: Boosting financial and reputational stability by adopting sustainable solutions such as energy efficiency and supporting renewable energy.

What are the recommended disclosures?

There are four recommendations laid out by the task force for disclosures.

Governance: Disclosure of the board’s oversight on, and management’s role in, assessing and managing climate-related risks and opportunities.
Strategy: Disclosure of the short and long term climate-related risks and opportunities, their impact on the organisation, and the resilience of the strategy in place to manage those risks and opportunities.
Risk Management: Disclosure of the organisation’s process for identifying, assessing and managing risks, and how this is integrated into the organisation’s overall risk management.
Metrics and Targets: Disclosure of the metrics used to assess risks – Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, the risks they pose, and the targets in place to manage risks and opportunities.

What are the benefits of implementing TCFD?

In the future green economy, disclosures like these will be crucial for a company’s sustainability and resiliency. Implementing TCFDs will help companies to identify and assess the risks posed by climate change. They can then address their structural weaknesses and implement mitigation and adaptation efforts to future-proof their business. Organisations that do this will have a competitive advantage over those that don’t when it comes to future funding and investments.

At EIC we are experienced in helping clients mitigate climate-related risks. Through our unrivalled energy management services and cutting-edge technology, we can help with most of the TCFD’s recommendations. From resource efficiency and clean energy to your carbon compliance, our goal is to simplify your sustainability journey. For more information on future-proofing your organisation, contact us at EIC.

Climate risk disclosure and the new green bond

Posted on 13th November 202017th December 2020 by Josh Ellison

Earlier this week, Rishi Sunak and the FCA announced that climate risk disclosure would become mandatory for many of the UK’s largest organisations by 2025. As part of the announcement, Sunak also revealed a new green bond designed to stimulate sustainable growth and reinforce Britain’s position as a global green finance centre. We explore what these two developments mean for UK businesses and how best to prepare.

Doubling down

Climate risk disclosure describes a voluntary process whereby large organisations would assess how the effects of global warming could influence their practices and success in the near-midterm future.

The purpose of these disclosures is to better prepare both companies and their investors for unforeseen circumstances due to climate change. On Monday, Rishi Sunak announced a roadmap that would see these disclosures become mandatory for a wide range of organisation types.

This roadmap dictates that the fulfillment of new criteria will arrive gradually over the next five years. The FCA will publish the first set of rules at the end of 2021.

The FCA’s decision most immediately affects financial institutions with a premium listing. It will foster investor confidence as the UK tries to rebuild its economy. Banks, building societies, insurance companies, and occupational pension schemes worth more than £5bn are among the types of organisations affected. They will be expected to provide their reports by late 2022.

The roadmap then stipulates how these requirements will be extended across other sectors leading up to 2025.

The UK is the first G20 country to introduce mandatory climate disclosure and it’s an interesting gambit from the FCA. Obviously, the hope is that investors will recognise the long-term risk of climate change and that the shift will bolster their confidence in UK finance.

If this is the case, the disclosures will advertise the UK as a financing powerhouse despite climate change uncertainties.

“Mandating climate disclosure in alignment with the TCFD recommendations will increase the critical mass of data needed by investors and other stakeholders to accelerate measurement and management of a broad set of environmental issues…”

-Paul Simpson, chief executive of CDP

Green funding and future intelligence

Unlike mandatory climate risk disclosure, green bonds are not a new concept. The UK will be following countries like Germany and Sweden in opening this new avenue for green investment.

The bond becomes available in 2021 as a part of the government Covid-19 stimulus package. The announcement came after vocal support from a group of major UK investors. Collectively, the 30 individuals that lent support for a green bond manage over £10 trillion in assets.

Sunak also announced that the UK would deliver a universal framework for determining the sustainability of different economic activities. The intention is to create objective criteria to judge which projects should be deemed appropriate to benefit from the bond.

The takeaway from both these announcements is that the value of data on carbon emissions and usage continues to grow. Current plans for disclosure only include financial institutions. However, the momentum of action on climate change suggests that more and more companies will need to disclose.

Our metering service can help you build interactive reports on energy usage, as well as identify areas for improvement. Our energy management services include procurement expertise as well as guidance on carbon compliance schemes that can maximise the value of any current or future metering technology you may invest in.

Active engagement with your carbon footprint and its reduction demonstrates a commitment to mitigate climate risk to would-be investors. For further information on these services get in touch.

Public Sector Decarbonisation Scheme: Time running out

Posted on 3rd November 20209th November 2020 by Josh Ellison

The launch of the Public Sector Decarbonisation Scheme last week presents an opportunity for public sector organisations to reduce their emissions using government funding. Organisations should begin formulating applications now to have the best chance of being funded.

Subsidising Energy Efficiency

Salix Finance is backing the scheme and it combines two major funds. First, the Capital Grant Scheme (CGS) aims to support heat and electricity decarbonisation efforts in certain public sector buildings. The second will help create thousands of jobs within the green development sector.

Under the CGS, public sector bodies can apply for financing for up to 100% of the costs of capital energy-saving projects fitting certain criteria. The criteria are split into four categories, which, in tandem, take a holistic view of decarbonising building heating.

This scheme will act as a non-domestic version of the Green Homes Grant, helping to address the carbon footprint of heating in UK commerce and public bodies.

Since applications to the fund will be subject to Salix’ discretion, organisations must have a robust understanding of their current energy expenses as well as accurate means to estimate the savings they stand to make.

The technologies supported by CGS are all focused on driving down the CO2 emitted in building heating. Naturally, low-carbon heating solutions like heat pumps and heat networks are deemed eligible.

Technology able to reduce heat demand or offset energy from the National grid also qualifies. Solar PV, battery storage, and metering systems fall under this category.

Window closing fast

Organisations can use this fund to subsidise the cost of external support for decarbonisation projects in a variety of ways. This includes the employment of technical expertise in putting together applications for the fund, support for project delivery, and guidance on creating a long-term decarbonisation plan.

However, applications must be submitted by the 11^th of January and any planned projects delivered by the end of March 2021. Organisations should take this timeline into account when considering the scale of any project they wish to undertake.

Four months is a considerably small window for an infrastructural overhaul. That means organisations with a decarbonisation framework already in place will have a head start over those that don’t.

However, that is all moot unless applications are in before the deadline in just over ten weeks’ time. It is important to note that the scheme has been open since September 30^th and that there is no ceiling on how much of the fund individual projects can apply for.

£1bn might sound like a lot, but it is still finite and approvals are on a first-come, first-served basis.

Organisations are already in a race against time and will want to start approaching sustainability specialists as soon as possible.

At EIC, our 360° Strategic Review offers a variety of channels through which you can boost your decarbonisation efforts. Key amongst these is a focus on implementing appropriate infrastructure for your organisation. A comprehensive solution that includes sub-metering, lighting solutions, on-site solar generation and CHP.

For further information on how we can support your decarbonisation journey, contact us.

Success is negative: Carbon negative office spaces

Posted on 27th July 202031st July 2020 by Josh Ellison

EIC explores the carbon-negative office spaces that are emerging, their role in the green recovery and the technology that make them possible.

Favour the bold

The path to net zero is fraught with obstacles and among these is the carbon intensive nature of the mainstream construction sector. Materials like concrete are extremely resource intensive to produce.

While often offset on a citywide scale, some firms are beginning to focus on the buildings themselves and work sustainability into their initial designs.

Blazing the smoke-free trail are Norwegian architects Snøhetta, who will design exclusively carbon-neutral buildings over the next decade.

The aim is then that from 2030 onwards, Snøhetta will focus on creating carbon-negative designs.

Carbon negative structures either generate more energy than they consume, or sequester more carbon than they produce. The figure includes expenses from initial construction and materials, as well as operation and decommissioning.

Elusive costs like these are problematic, with 85% of building emissions generated by materials and construction, before the structure is ever used.

“For the next 10 years, we have the ambition of having projects on the table that will become CO2 negative in the cradle-to-cradle definition… This means we have to understand the embodied energies and all the materials used.”

-Snøhetta co-founder Kjetil Thorsen

Balancing the books

Since less intensive materials suited to large scale construction are not yet widely available, balancing through generation will be key. Solar is central to Snøhettas plans, with structures taking about 60 years to hit carbon negative with embedded generation. The architect recently completed its Powerhouse Brattørkaia project, which boasts an identical timeline for net negative. The Powerhouse also sports a cutting edge ‘wedge’ shape designed to maximise exposure to the sun’s rays.

While this may seem like a life sentence for business leaders, it is refreshing that groups like Snøhetta are beginning to think in terms of multi-generational gains.

Bywater Properties are leading a similar development project aimed to create the lowest-carbon workplace in London. The office, named ‘Paradise’ for the road it occupies: Old Paradise Street. Supermarket, Iceland has already secured the majority of this space, planting a green flag for the brand in the minds of its customers.

My generation

It is no secret that the attraction of short-term gains have significantly contributed to the environmental challenges we now face.

However, vision extending beyond the next board meeting can help transform the UK and global economy to reach net zero. Carbon negative buildings are a part of that vision.

Unfortunately, that can feel exclusionary to firms that have already established their sites and do not have the luxury of completely retrofitting them.

The complex, modular nature of structures does mean that while carbon negative may not be feasible, ‘carbon-light’ might be possible.

Intelligent building control is one of the most effective ways to improve your carbon profile. Primarily because it streamlines the carbon-producing elements of a building, mainly utility consumption, and shrinks carbon footprint as a result.

A holistic ally in carbon reduction is the addition of green spaces to working environments, since these also sequester carbon.

On-site generation further reduces your reliance on the grid and the subsequent sequestered carbon in meeting demand – particularly across long distances.

Other benefits include improved energy supply security, added leverage in procurement talks and a better carbon profile for crucial legislation.

EIC understands that intelligent building design and frugality around resource-use work in hand in glove. As such, EIC offers a comprehensive carbon service combining building management, intelligent procure and compliance acumen.

Marriage of these three pillars means unlocking the full potential of sites, and leveraging for the benefit of all. EIC’s full offering is on its services page.

Summer Economic Update

Posted on 13th July 202027th July 2020 by Josh Ellison

EIC explores Rishi Sunak’s Summer Economic Update and what it means for businesses looking to gain a head start in the green revolution in the UK’s future.

A brave new world

The build back better campaign received a large, public endorsement from Chancellor of the Exchequer Rishi Sunak this week, who pledged in the Summer Economic Update that £3bn would be committed to the new green economy. While this is only a drop in the proverbial bucket of the £160bn Covid-19 recovery package, it has been met with great enthusiasm from both business leaders and the public.

An E.on survey conducted earlier this year, polling 500 UK-based business leaders, demonstrated that 72% felt that the pandemic has given them cause to re-evaluate their organisations priorities regarding the environment.

During the announcement, the Chancellor revealed the two major fields of improvement to be energy efficiency in public structures and a £2bn Green Homes Grant for those not in social housing. The remaining £1bn will be invested in improving the carbon usage and profile of public sector buildings through measures including double or triple glazing and smart energy meters.

“Improving the energy efficiency of buildings is crucial for reducing our emissions…. this announcement of £3bn is a welcome first step… This funding needs to be part of a comprehensive plan to improve the whole of the UK’s building stock, creating tens of thousands of jobs for the long term, not here-today-gone-tomorrow.”

UKGBC chief executive Julie Hirigoyen

Sunak also announced that £50m worth of funding would be used to support trials into early-stage energy efficiency and flexibility technology for the UK’s least efficient sectors.

The majority of respondents to E.on’s survey believe that the primary responsibility for the UK’s green revolution lies with business leaders, and the UK public, it seems, agrees.

Dancing in the dark

One of the unforeseen gifts of the pandemic has been a heightened awareness both of our potential effects on each other within our society but also the affect that our species is having on the planet. It is no secret that human behaviour is partially responsible for large-scale disease outbreaks and as a result, consumers are becoming ever more cautious about which companies to whom they declare allegiance.

The Capgemini Research Institute has also conducted a recent survey that showed almost 70% of respondents are concerned the effect that their spending habits are having on the natural world. The institute also reports that 80% have altered spending habits in the last year in response to social and environmental issues.

However, while there is clearly a market trend developing in favour of sustainable business practices, ‘greenwashing’ and a lack of transparency threaten to shake consumer trust on a mass scale. Six in ten business leaders consider their clients to be well informed of their sustainability efforts but over half of consumers have stated difficulty in confirming corporate sustainability claims.

“…when baked into an organization’s mission and purpose, sustainability has the potential to entirely change an organization’s relationship with its customers and partners… As businesses focus on transformation in the wake of the pandemic, they should put sustainability at the heart of their efforts.”

Capgemini’s VP for consumer goods and retail Kees Jacobs said.

Getting a head start

Legislation will be one of the major lynchpins in the UK’s approach to a green economic recovery, however clearly signposted legislation could also help to bolster consumer trust.

SECR stands as not only an ethical benchmark for firms that are invested in a cleaner economy, but also a declaration of intent to consumers. Compliance to such legislation demonstrates to consumers that emissions reductions is a company-wide objective and therefore representative of your brand as a whole.

The palatability of SECR is also a major benefit, while it is a complex piece of legislation; the objective is simple and easily explained to non-energy professionals. Employment of the strategies necessary to ensure compliance, be they energy efficiency measures, supply chain reorganisation or on-site generation raises a green flag to would-be clients.

Fortunately, each of these listed strategies is covered under EIC’s carbon management team, who are able to utilise over four decades of experience to create a bespoke carbon strategy for your firm. The EIC services page contains full details of its compliance offering.

IETA’s net zero plan

Posted on 2nd July 202027th July 2020 by Josh Ellison

EIC breaks down the IETA’s proposed ideas to help guide Europe towards net zero 2050, specifically the role cap and trade practices may play and why we must raise ambitions.

Rowing together

Last month the International Emissions Trading Association (IETA) announced its 2020s forecast for the price of carbon emissions, expected to rise to €32 per CO2 tonne equivalent.

The IETA, in a report published last week, also outlined several ways in which international carbon trading, spurred by the increased price, could aid the fight against climate change.

The report outlined that some countries and firms were better equipped than others to reduce and replace carbon-intensive practices. Infrastructure, resources and trade exports are among the variables that can impede or hasten an organisations ability to stay within allotted carbon allowances while remaining soluble.

The trading of such allowances frees individual states and firms up to offset one another’s emissions in order to achieve the collective goal of limiting global temperature rise.

Moreover, it is effective; the European Union’s Emissions Trading System (EUETS) reported a drop of 29% in emissions from stationary structures when comparing 2018 to 2005, thanks largely to such ‘cap and trade’ schemes.

Cap and trade is not a novel concept, it has been suggested as a market-led solution to polluting industry for years. During his presidency, Barack Obama met with a lot of criticism for introducing a bill in support of such schemes with pundits calling it a “sledgehammer to freedom”.

The concern was not unjustified since it was predicted that Carbon intensive industry would simply be undercut by foreign interests able to offer more competitive energy rates to consumers.

However with international cooperation now being actively encouraged, the attraction and probability of price gouging between domestic and international firms is likely to reduce.

The price is right

Alongside the proposed price rise has emerged a surge of concern that, while ambitious, the UK will fall behind on its own national targets unless an even higher charge is established.

The IETA’s forecast would mean an increase on the €27 price that was in effect from June 2018-19 however, think-tank Carbon Tracker believes this would still fall short of the targets stipulated in the UK’s Green New Deal.

A report released by the Zero Carbon Commission has estimated that the IETA’s price would need to be increased by almost 100% to €60 by 2025 to stay within established carbon budgets.

“We need to introduce a stronger, more consistent carbon price signal across more sectors of the economy if we want to accelerate the transition to a low-carbon economy.”

Sam Fankhauser

Assuming that Fankhauser’s perspective is adopted in the UK, carbon allowance trading promises to become a lucrative venture for firms that are able to significantly reduce their carbon emissions ahead of time. Any shortfall between emissions and allowance could be traded with more carbon intensive firms, thereby effectively doubling the value of carbon emissions saved.

Intelligent utility management, on-site generation and smart procurement are all methods to increase the gap between emissions and allowance and, subsequently, its potential value in cap and trade. EIC offers all of these services as well as over forty years of direct experience in integrating and applying them to the benefit of its clients.

Alone, together: Mental health during lockdown

Posted on 27th May 202027th July 2020 by Josh Ellison

EIC looks back on the recent Mental Health Awareness Week UK, this year’s theme of kindness and some of the stories of kindness that have emerged from the energy sector since lockdown began.

Kindness to all

The theme of kindness could not have been more appropriate for this year’s Mental Health Week UK, with so many struggling under the emotional, financial and medical burdens of COVID-19 and the subsequent lockdown.

Indeed, kindness, solidarity and generosity are things that have been in great demand as a result of the widespread concerns wrought by coronavirus. Despite the added pressure felt simultaneously by the commercial energy sector, it’s proponents have responded with a magnanimity seldom anticipated by their customers.

Orsted

Danish renewables supplier, Orsted, has promised more than £165,000 to various health and charity organisations across the UK to help support them through the crisis, beneficiaries include Guy and St. Thomas’ Hospital and Liverpool University Hospitals NHS Foundation Trust. Duncan Clark, the supplier’s UK region head, impressed the importance of solidarity between companies and their customers:

“Across the UK, the current situation is having a profound effect on families and communities.. It is at times like these that we must come together to do what we can to support each other.”

Duncan Clark, Orsted

British gas

Big six supplier British Gas stated their allegiance to customer welfare early on in the lockdown by announcing that vulnerable customers would be issued with 2 weeks of discretionary credit for electricity. The support will be pre-loaded onto keys or cards while gas customers will receive £5 credit, British Gas is also offering a remote version of the same service for those customers with smart meters.

Emergency measures

Emergency credit limit for gas and electricity has been extended across the board by many major suppliers in the UK, with E.ON raising the limit tenfold from £5 to £50 and nPower raising emergency credit limits from £7 to £45.

Hands across the oceans

The trend of solidarity hasn’t stopped in the UK, energy companies across Europe are taking up the cause of customer support during the challenges of COVID-19. Italy was infamous for being one of the worst affected European countries and taken as an omen to be heeded by other EU states, domestic energy giant ENEL has answered with vigour. The supplier has donated €23m to support Italian healthcare professionals by funding hospitals, beds and machinery and president Patrizia Grieco framed this move as an act of duty from ENEL.

“We are an Italian multinational with strong ties with the territory. It’s natural but also a duty to aid the territories where we operate and the communities we work with every day.”

Meanwhile in France, multinational ENGIE, has also contributed to Italy’s fight against the virus by providing free electricity and technical assistance on the construction of new medical units.

A kinder world

The primary beneficiary of the lockdown measures however, might be an unexpected one, with the slowing of economic activity and the subsequent drop in emissions, the planet is receiving a long overdue dose of kindness from our entire species.

COVID-19 may have given us an opportunity to reflect on our current practices as well as a vision of what the world could look like with better, greener behaviour from us.

EIC are champions of sustainable business practices through an end-to-end approach that can support you from initial procurement of your utilities, through to maximising their efficiency with IoT in order to faster deliver a sustainable commercial culture.

The strides EIC is taking to help the UK build a green commercial sector and reach climate targets are myriad and you can find out how to engage with them on our website.