Despite the threat of increased legislation, most of the UK’s largest companies do not currently measure their carbon footprint, a survey has found.
Three quarters (74 per cent) of
finance heads from UK companies with more than 500 employees said their companies have not yet measured their
carbon footprint in a poll published today by the
Carbon Trust.
Nearly half (48 per cent) did not have a clear corporate target for
carbon reduction and a further 16 per cent didn’t know if their company had a target or not.
This is despite the fact that most of the 200
finance heads surveyed said they anticipated all businesses will be required to measure their carbon footprint (72 per cent) and pay a price for the carbon they emit (76 per cent) within the next decade (59 per cent).
The findings have been published just weeks before the registration deadline for the
Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, the Government’s cap and trade scheme designed to improve the
energy efficiency in large, low energy-intensive organisations not already covered by the UK Climate Change Agreements and the European Union Emissions Trading System. Around 5,000 large public and private sector organisations, such as supermarkets, water companies, banks and local authorities, will need to purchase carbon allowances to cover their emissions from April 2011 under the scheme. However, Government figures show that less than half of those organisations required to register for the scheme, have so far done so.
"The debate about whether or not carbon footprinting and payment will become mandatory for business appears to be over as far as finance heads are concerned," commented Harry Morrison, general manager of the Carbon Trust Standard Company, which offers independent certification for businesses that measure, manage and reduce their carbon emissions. "Yet only a minority have taken action so far and these early movers have a clear advantage. Building carbon management into the DNA of the business now not only ensures preparedness for future compliance requirements but also brings immediate cost and efficiency benefits and competitive edge."
The survey was conducted among finance decision-makers in six key sectors – retail, professional services, financial services, technology and communications, fast moving consumer goods (FMCG) and leisure and entertainment.
Low carbon opportunities While more than a third (43 per cent) of those interviewed believed the low carbon economy provided an opportunity for their business, there were marked differences in outlook between industries. The majority of technology and communications organisations (88 per cent) and FMCG companies (63 per cent) viewing the low carbon economy as an opportunity. However that figure was much lower among professional services (22 per cent) financial services (30 per cent) and retailers (31 per cent).
Low carbon drivers
When asked what the drivers were for their companies’ switchover to a low carbon economy, most of those surveyed cited increased efficiency and reduced costs by reducing energy use (97 per cent), complying with carbon
legislation (95 per cent), meeting customer (78 per cent) and employee expectations (76 per cent) and protecting corporate reputation (74 per cent). Less than half (48 per cent) believed it would create new market opportunities or win business. Meanwhile, less than half (45 per cent) of all respondents cited investor expectation as important, but this figure almost doubled among finance heads at technology and communications companies (88 per cent).
"About half of businesses appear to be on the front foot, seeing the business development opportunities in the low carbon economy rather than simply reacting to legislative requirements and cost incentives," said Morrison.
Rachel Sinha, sustainability manager, Institute of Chartered Accountants of England and Wales (ICEAW) said it was important for finance heads to play a role in "guiding" their organisations’ carbon management strategy. "They, therefore, need to be prepared to provide the evidence base and framework for their organisations to be able to turn this time of change into a competitive advantage."
Like this story? Please subscribe to our free weekly e-newsletter at the top of the page for more stories like this.
Related content:
Related links: