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The technicalities of sustainability

David turner largeThe UK government’s carbon transition plan and renewable energy strategy, released this month, have pushed green initiatives back on the agenda for businesses and the public sector.

This is not new, but up until now many of these organisations have not had to take such green initiatives that seriously. First, previous initiatives have only been recommendations and second, there has been a lack of detail about how organisations have complied and monitored their carbon footprint and addressed the sustainability challenge.

There is also a major disparity. On the one hand, the target to have 15% of the UK’s energy being sourced from renewable sources by 2020 is galloping towards us. On the other, the government has still to convince how it can encourage genuine and effective investment that spurs the business world into action.

The sooner targets and strategies are put in place, the easier it will be for businesses to adapt to the new efficiency-driven economic climate. With CO2 output the most important focus of this new economic imperative, it will inevitably be given a financial value for all companies (not just the biggest producers, as it is today) and this is the key to driving reductions in consumption.

The starting point for companies will be to measure their carbon footprint with a reasonable level of accuracy and consistency – only then will they be able to move on to any reduction programmes.

And since business software is already used to monitor financial performance, it’s not a great stretch to imagine how such systems can play a role in measuring and monitoring carbon efficiency performance. Such systems can also be used to help plan and implement a company-wide strategy aimed at meeting efficiency goals.

UK software suppliers have been working on these topics and many have recently signed up to the Business Application Software Developers Association’s (BASDA) Green Charter. Signatories of this pledge take pro-active steps to increase their own efficiency, enhance their software solutions so they can help customers become a part of a carbon efficient economy and also to directly engage in the green debate.

Clearly, business systems will play an important role in measuring and monitoring an organisation’s carbon footprint, and will provide a crucial element for companies needing to change and reduce their energy use. However, there is an understandable concern about the costs that this might impose on businesses. Tough economic times mean it’s easy to put off investing in what many see as costly new software and tools to track emissions.

However, it’s a fallacy to think that this would demand a huge investment or a complete overhaul of existing IT systems. Businesses shouldn’t need special, complex additional technology in addition to their current systems – they need their current systems to help account for CO2 in the same way as they do their finances. There are several simple and practical steps that businesses can take that should not involve a large amount of time or resource.

One of the key challenges for larger organisations is the Carbon Reduction Commitments (CRC’s) legislation which is due to kick off in less than a year, in April 2010. This will be mandatory for many large organisations such as supermarkets, offices, government departments and other large local authorities.

Organisations can prepare for this by analysing what their main emissions are now and where their heaviest consumption lies. This can be done, even in rough terms, by assessing the major carbon creating activities such as travel, utilities and procurement. DEFRA publishes carbon equivalents for all key items consumed, providing a good starting point and template for measuring carbon footprint.

The message is simple. Those that prepare early will not only to be ahead of the game but will also be in the best position to attract clients while maintaining and growing existing business.

David Turner is group marketing director for Unit 4 Agresso

One Response to “The technicalities of sustainability”

  1. Joe Taylor says:

    Good article. As someone involved in the design and implementation of Finance and Business Intelligence systems for over 20 years now I fully agree with the authors sentiments.

    Measurement simply needs to be consistent initially, to create the desire amongst companies to exploit green credentials. Refinement can come later to progress towards accuracy.

    Companies then would want to be producing a ‘carbon budget’, and measuring against plan, regularly. Being consumer led, this would transmit throughout the supply chain.

    The systems can cope easily as really it’s about indexation, and it would seem that DEFRA have made a start on this. Decent Financial and planning software can easily incorporate other measures and dimensions.

    Perhaps what is really needed is a reporting standard, which maybe should come from the government or accounting bodies??

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