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Tag: energy efficiency

Sustainable Operations Require Business Engagement

by Daniel Stouffer on Oct.26, 2009, under Government

We have all got to come to terms with how we impact our surroundings and the environment in general. We know that we cannot maintain a status quo position and must think of future generations ahead of us as we strive to reduce our overall footprint and become more aware. Likewise, the organizations that produce products and service for our use must also learn to comply and understand that whatever their size they must understand and implement a process of sustainable operations if they are to be allowed to conduct business at all in the future.

The term “sustainable operations” refers to the ability of the organization to endure, from an environmental perspective. We know that we have caused considerable damage through unrestricted consumption and a disregard for the environment all around us. There is growing pressure on a daily basis to ensure that we are as self-sufficient as possible and that we do not place too many unreasonable requirements just to maintain life.

Senior management at any organization must fully adopt the principle of sustainable operations and must drive this understanding downwards and throughout the operation. It cannot be delegated within a particular division nor can it become the subject of a glorified public relations campaign. Morally, the enterprise is fully under the spotlight.

While major organizations around the world, maybe as many as eight out of ten, seem to fully understand and embrace the idea of sustainable operations, we can nevertheless see that the vast majority of companies do not. They are only now analyzing and understanding what they have to do in the future to comply.

As some organizations panic when they realize that they are not maintaining sustainable operations, they rush to try and analyze the position and promote the fact that they are doing so. Without a full understanding of the footprint in relation to their energy use, carbon emissions, water management and waste disposal then any statements they make in due course will be accused of “greenwashing,” or mistaking their position.

For an organization to understand its true position it must conduct a comprehensive lifecycle analysis, where they scrutinize, reveal and understand their entire operation and the consequent impact on the surroundings. Only then will they be ready to take action.

There are different levels of carbon emissions to understand and all must be reported and be the subject of restrictive action in future. Senior management must understand that carbon emissions represent the biggest problem. When it comes to energy production and use they must now know all about scope one and scope two emissions, while scope three emissions, referring to supply chain, postproduction and end-of-life disposal, are more difficult to analyze but nevertheless significant.

Sustainable operations management will help to bolster the bottom line of the company as it will by definition be paying particular attention to the efficiency of every asset. As such, as each asset must be made ultimately efficient, a benefit in terms of a greater return on investment can be expected.

Daniel Stouffer has much more information about sustainable operations and how a visit to www.verisae.com can benefit you.

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Environmental Management Solutions

by Nigel Evans on Oct.17, 2009, under Government

There was a time when environmental management was the domain of politicians, scientists and earth lovers, but is now something that has been adopted within industry and commerce on a widespread basis. Up until the latter third of the last century the concept had been largely ignored, but is now being recognized in no uncertain terms as we come to grips with the challenge facing us all.

For the longest time, big business decisions were based on how much better and how much bigger we could become and driven by consumption needs. Fossil fuels were seen as the best way forward to create energy for our burgeoning needs. Sustainability was far from people’s minds and our environment was constantly ravaged as we sought to go the extra mile.

The Clean Air Act and the Clean Water Act of the 1960s finally started the trend toward the adoption of environmental management solutions. The European Eco-management and Audit Scheme was closely followed by the International Standardization Organization’s 14001 series standard. With the standards laid down, organizations now felt that it was the right thing to do to focus on these areas and to be seen to do so.

There are a number of environmental management solutions, based on or complementing the ISO 14001 standard. For some organizations, full compliance with the main standard is too onerous and may be too challenging, and for certain upstart businesses and developing countries this could have adverse trading repercussions.

The United Nations suggests that environmental management solutions represent a “natural capital.” By adopting the triple bottom-line philosophy and changing an approach to accounting in general, social performance and ecological issues are put in focus.

Some proponents of alternative environmental management solutions advocate self-regulation as a better way to proceed rather than through enforced compliance, auditory checks and other standards. As an example, consumable and durable products would then be seen as distinct from “unsalables,” otherwise classified as toxic products.

Every member of an organization has a significant role to play in the world of environmental management solutions, as each department has its own contribution within the overall lifecycle of the organization in general. As more emphasis is placed on the reduction of greenhouse gases, this approach is being widely adopted.

Environmental management solutions can form part of a wider goal to help ensure that an organization achieves sustainability. As particular focus is placed on reducing a carbon footprint, the organization must also ensure that it is environmentally efficient as a whole. Wastage at all levels will not be tolerated from a societal or economic point of view, with the twin threats of reputational harm and regulatory penalty ahead.

Daniel Stouffer has much more data about environmental management solutions and how a visit to www.verisae.com can be of use to you.

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UK Climate Legislation Means Business

by Daniel Stouffer on Sep.20, 2009, under Government

Since the dawn of the industrial era, which we are led to believe was 1750, we have had a seemingly never ending thirst for energy and products produced through the use of fossil fuels. Over the centuries we were not aware of the damage that we were causing and it has been only in relatively recent times that we have come to terms with the significant and threatening effects that we have caused to our environment.

The principal emitters of dangerous greenhouse gases have been identified under the new UK climate legislation which aims to take on the problem of climate change head on. These entities must take significant steps to reduce the large amounts of carbon dioxide emissions or face financial penalties appropriately.

Sadly it is not enough to just understand that excessive consumption can have significant adverse environmental effects. It would be nice to think that this thought process could be converted into action, but politicians are aware that this is very rarely the case. As corporations are the largest contributors to the problem and are ultimately driven by profits, UK climate legislation seeks to go further than the attempt of some to embrace environmental issues by forcing compliance.

Ultimately, the success or failure of a company is dictated by powerful market forces. This has not really had an effect on carbon emissions to this point, but UK climate legislation changes all of that. Companies now face a cap on the amount of emissions that they are responsible for before penalties are imposed.

The conversion to the role of a commodity means that an organization must now achieve efficiencies to reduce its reliance on fossil fuels. UK climate legislation will ultimately have a big effect on carbon emissions by controlling the amount that each organization may “purchase” It is in the company’s best interests to cut down on its carbon bill.

If we look into the future, it seems clear that a majority of forward thinking countries will adopt some kind of cap and trade scheme as the consequences of inaction are becoming increasingly and more vividly obvious to us on a daily basis.

Opponents of UK climate legislation felt that its imposition would create unnecessary and prohibitive barriers to global trade and additional obstacles within the international trading arena. Nevertheless, the bill was among the first to specify mandatory engagement by major organizations.

The Climate Change Act of 2008 gave birth to the Carbon Reduction Commitment, and these activities will surely be watched with keen interest around the world. Many feel that the government of the United States will adopt something similar to the UK climate legislation, especially as the administration has indicated so. It remains to be seen what emerges from Congress.

Daniel Stouffer has a lot of information about the UK climate legislation and how a visit to www.verisae.com will be of use to you.

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Expect a Carbon Reduction Bill

by Nigel Evans on Sep.19, 2009, under Government

The pressure has been growing on individual companies, producers and emitters of greenhouse gases to try and restrict the output. Up until this time, it has been voluntary to report carbon emissions but legal initiatives are now underway to make this mandatory. A carbon reduction bill has already been put in place in the UK and may soon come out in the US.

The carbon reduction bill in the UK is known as the Carbon Reduction Commitment and is in the process of rollout during 2009. Companies that are affected, estimated to be 5,000 of Britain’s largest carbon emitters, must get ready for registration by assessing whether they are liable by looking back to 2008 for information.

The Climate Change Act was the catalyst for the British government to introduce a carbon reduction Bill. Going back to the Kyoto Protocol, a number of benchmarks have been set but this is the first time that far-reaching legislation has been imposed upon companies that are contributory to the problem, causing them to actively reduce their carbon footprint.

Many in the US are wondering whether legislators within Congress will have the stomach to pass a carbon reduction bill with as sweeping a change as that currently under scrutiny in the UK. While the US House of Representatives narrowly passed something akin to the UK legislation, known as the ACES Act, there is considerable doubt that the Senate will embrace in its original form.

Companies that need to comply and participate in the carbon reduction Bill, have been selected according to their annual usage of electricity. It is deemed that if they use at least 6000 MWh per year, measured through half hourly meters, that they are major emitters of carbon gases. Organizations will face considerable repercussions should they fail to perform according to the set standards, although some of the finer details are still to be worked out.

It is certainly true that the change in administration within the United States may lead to a considerable change in the approach to a carbon reduction Bill. Most industrialized nations have called for something like this for a long time and the UK situation could be now mirrored in the USA.

While they are waiting to see whether they may be impacted in the future, US organizations that fear a carbon reduction bill could now look at the Chicago Climate Exchange for a version of a voluntary carbon trading scheme. Within this market, allowances and offsets are traded on a voluntary basis, although rules must be strictly adhered to once a company has agreed to participate.

As more and more evidence comes to the surface pointing to a dangerous acceleration of global warming and climate change, it is likely that carbon reduction bills and legislation will appear in increasing number worldwide.

Daniel Stouffer has a lot of data about the carbon reduction bill and how a visit to www.verisae.com can aid you.

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British Carbon Reduction Forges Ahead

by Daniel Stouffer on Sep.13, 2009, under Government

The British carbon initiative outlined within the Climate Change Act of 2008 is getting a lot of attention worldwide as it is the first legislative approach of its kind. The British have been very forward reaching in this area and do not intend to throttle back at anytime in the near future.

The Climate Change Act prompted the UK government to outline its aims for the future. British carbon initiatives plan “to improve carbon management and help the transition towards a low carbon economy in the UK and to demonstrate strong UK leadership internationally, signaling that we are committed to taking our share of responsibility for reducing global emissions in the context of developing negotiations on a post-2012 global agreement at Copenhagen next year.”

British carbon reduction plans have been implemented immediately in advance of a landmark, post-Kyoto protocol agreement expected in 2012. Evidences has shown that our climate situation is getting worse and that aggressive actions are required to try and address this situation as soon as possible. The British push is part of this.

By the year 2050, the UK government says that it expects greenhouse gas emissions to have been reduced by at least 80%. To enable it to achieve measurable goals towards an ultimate target, the Climate Change Act calls for a carbon budgeting system. This project will run over a set of five year periods, with the first budgets running between 2008 and 2022.

While there are likely to be a number of international actions as well, it is interesting to see that the British carbon legislators have said that they “have regard to the need for UK domestic action on climate change,” which may mean that they will place this first before any conformity to other standards.

The Carbon Reduction Commitment followed immediately on the heels of the Climate Change Act of 2008. This heralded the first legislative emissions trading scheme of its kind. Mandatory participation is required subject to qualification and there are a number of economic incentives for those who can reduce the size of their carbon footprint.

While it is anticipated that only 5,000 organizations will be forced to participate in the UK’s cap and trade scheme to address carbon emissions and climate change, these companies are considerable contributors to the problem, as they are by definition consumers of large amounts of electricity independently. It’ll be interesting to see how market forces can control a gradual decline in carbon pollution.

If the British carbon reduction plans are successful, a similar route of legislation may also be successful within the United States. While legislators are taking their time to process through debate and delay, they are nevertheless keeping a close eye on what is happening across the ocean.

Daniel Stouffer has a lot of information about British carbon and why a visit to www.verisae.com can benefit you.

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Understanding DEFRA Carbon Plans

by Daniel Stouffer on Sep.11, 2009, under Government

The British have, like all of us, their own fair share of acronyms, but consolidated some of them when DECC absorbed DEFRA and BERR in an attempt to more effectively address the big problem of climate change. They have certainly made massive strides forward as the government promptly introduced the first far-reaching, legally binding legislation to the marketplace.

The DEFRA carbon approach resulted in the Carbon Reduction Commitment, a child of the Climate Change Act of 2008. The British certainly moved quickly on this to meet what are termed carbon budgets for the first years of the program. The CRC is an innovative climate change and energy saving program which has been designed to create a quantum shift away from traditional thinking.

It is likely that many will seek to mirror the effects of the British government’s novel approach, should the DEFRA carbon scheme be successful. The British government has worked with considerable speed, especially when you consider the traditional constraints of the European Union system.

The British government is adamant that the Carbon Reduction Commitment will represent a net benefit to those who are forced to participate, rather than being another burden to adopt. The scheme places a financial value on carbon, by establishing it as a commodity, fixing a price per ton and giving a significant incentive for an organization to reduce its emissions.

As the UK government is set to emphasize, benefits to participants in the DEFRA carbon scheme may amount to around $1 billion by the year 2020. Any revenues derived from the scheme will be neutral to the exchequer, the UK version of the Treasury Department. Revenues will be recycled to participants in this way.

While the government is ready to encourage and provide financial incentives, in a sense at least, it is not afraid to wield a stick in addition to dangling the carrot. Participants in the DEFRA carbon scheme known as the Carbon Reduction Commitment may face reputational harm if they are not able, for one reason or another, to perform well in terms of carbon reduction. A league table will be published for all to see and judge.

Is expected that as many as 20,000 organizations in the United Kingdom will be expected to participate in the CRC, but that only 5,000 will actively participate by documenting their carbon liabilities and by purchasing allowances from the government.

The UK has taken the lead in the fight against global warming and climate change by introducing sweeping legislation which is designed to commence in April of 2010. The target is to reduce carbon equivalent emissions of at least 4MTCO2 per year within 10 years. Compared to a 1990 baseline, this is a reduction of about 26% of greenhouse gas emissions, yet represents only the start of a push to huge reductions by the year 2050.

Daniel Stouffer has a lot of information about DEFRA carbon and how a visit to www.verisae.com can aid you.

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