In Senge’s book “The Necessary Revolution”, the road to sustainability is presented as a transformation of business ethos, embracing a proactive approach and moving beyond compliance on a journey that will increase stakeholder value, brand reputation and market share. But to move beyond compliance requires a firm to be compliant in the first place – and this is where CRC could kick-start a firm’s journey.
Stages to Sustainability [Adapted from Senge, 2008: "The Necessary Revolution"]
CRC has mandated many UK firms to report energy consumption and purchase allowances based on that consumption. The huge additional cost associated with energy emissions means that emissions must be measured and reported accurately – hence good data management processes and systems are paramount. But the real benefit comes from stepping beyond compliance and using data to inform decision making and drive strategy.
Simply complying with CRC will not save firms money but it will reduce the risk of being fined by the Environment Agency. In fact, compliance will end up costing a firm through annual subsistence fees and independent audits, not to mention the internal costs associated with managing compliance. However, using energy data intelligently will enable consumption profiles to be measured, monitored, and reduced - resulting in the double benefit from reducing energy spend and CRC liability.
And once the benefits of managing energy are realised then the systems and processes in place can be expanded to include the wider carbon agenda, resources, waste, etc. all the while becoming easier to demonstrate commitment and leadership in sustainability. For large corporations this can add value directly because it becomes easier to participate in schemes such as the Carbon Disclosure Project and the Dow Jones Sustainability Index and demonstrate a firm’s green credentials.
Year on year this will begin to snowball, in a positive way as good data informs good decision making and target setting that in turn leads to further progress and achievements - providing a narrative that can be included in corporate annual reports, and environmental and CSR reports. And evidence from M&S, Co-op, Coca-cola Enterprises, and O2 (to name a few) suggests that this brings with it a sustainable future with increased stakeholder value and a fortified brand. Complying with CRC is just the first step.
Simply complying with CRC will not save firms money but it will reduce the risk of being fined by the Environment Agency. In fact, compliance will end up costing a firm through annual subsistence fees and independent audits, not to mention the internal costs associated with managing compliance. However, using energy data intelligently will enable consumption profiles to be measured, monitored, and reduced - resulting in the double benefit from reducing energy spend and CRC liability.
And once the benefits of managing energy are realised then the systems and processes in place can be expanded to include the wider carbon agenda, resources, waste, etc. all the while becoming easier to demonstrate commitment and leadership in sustainability. For large corporations this can add value directly because it becomes easier to participate in schemes such as the Carbon Disclosure Project and the Dow Jones Sustainability Index and demonstrate a firm’s green credentials.
Year on year this will begin to snowball, in a positive way as good data informs good decision making and target setting that in turn leads to further progress and achievements - providing a narrative that can be included in corporate annual reports, and environmental and CSR reports. And evidence from M&S, Co-op, Coca-cola Enterprises, and O2 (to name a few) suggests that this brings with it a sustainable future with increased stakeholder value and a fortified brand. Complying with CRC is just the first step.
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