For those that have already dabbled in reducing their CO2 emissions, the benefits of lower energy bills and the potential advantage it gives when it comes to winning new business are already a reality. Come April, companies that have gone down this route look set to have a further advantage over carbon-reducing novices as the turn of the month marks the onset of a new government scheme to reduce the carbon emissions of UK industry.
The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (see box on p18) will provide financial incentive to companies to reduce their carbon emissions from energy use by putting a value on emissions, giving companies a target emission rate, which they pay for in advance, and allowing them to earn money back if they reduce their emissions below that target. They also have the financial benefits of reduced energy bills, as well as improving the environmental profile of their company.
The Environment Agency envisages it could save 11.6m tonnes of C02 per year by 2020 - the equivalent of taking around 4m cars off the road.
To qualify for the scheme, companies, or public sector organisations, must have a half-hourly electricity meter and have used at least 6,000MWh of energy during 2008.
"These companies have to make a declaration of their electrical consumption and have to register for the scheme," explains Malcolm Fergusson, head of climate change at the Environment Agency.
He adds: "They will have allowances each year to cover their energy consumption - both gas and electricity and some oil. They will have to buy credit at a fixed price initially that will cover the amount of energy that they expect to consume in the year coming up. If they find that they have more than they wanted, they can sell that later, or if they don't have enough, then they can buy it."
Apart from reducing the amount of C02 industry emits, the Environment Agency believes that the scheme will have a knock-on benefit of changing company's attitudes to energy usage. It is hoped they will recognise that if you change the way you use electricity and gas, then you'll save money. It is something Heanor, Derbyshire-based Easibind International has already cottoned on to.
Harry Skidmore, manager director, claims that his company is ahead of the environmental game and it's strategy is now starting to pay dividends. Around four years ago, the company overhauled its environmental policies and invested in more energy efficient kit and procedures.
"Our basic costs have been reduced dramatically," he says. "It has made us more competitive in the marketplace and once you have gone down this route, you have to keep committing to improving."
Part of that improvement has come through investments in new equipment. The company installed a Manroland 500 press that incorporates a heat exchange system plus eco-efficient UV lamps. As Skidmore points out, to get that level of efficiency, you have to spend money as a 10-year-old press will not get those energy bills down.
Press attention
James Thomas, area sales manager at Manroland GB, agrees that printing presses have a massive role to play in a greener future for the industry, especially as legislation limiting carbon output will soon become a reality for most businesses. "For Easibind, we were able to specify a heat reclaim system to re-distribute heat around the facility," explains Thomas. "The reduction effect this has had on the carbon footprint of both the press and the energy used to heat the premises has been of great value to the company."
The payoff isn't just financial. Easibind has recently become a Carbon Trust Standard Bearer. The honour is awarded to organisations that measure, manage and reduce their carbon footprint.
"We have worked hard so that we could understand key timings and plan ahead," explains Skidmore. "If you tried to do everything in one go then it would be overwhelming."
Easibind is now rubbing shoulders with some big names in the public and private sector. Other Carbon Trust Standard t Bearers include Asda, Marks & Spencer, Friends Provident, First Direct and B&Q. At the moment, there are only five print companies that have the standard: Easibind, Guardian Print Centre, Smurfit Kappa UK, DS Smith Packaging and Abbey Corrugated.
"There are 17 main categories for everyone to fit into," adds Skidmore. "However, there are many companies that have applied, or will be applying, to meet the standard. We expect the industry to meet the challenge and support the top 6,000 organisations."
For print, Skidmore says the scheme has a potential benefit that could pay further dividends in the long run. Many of those standard bearers, in both the public and private sector, have significant print buying power. And, as members of that scheme, they will obviously be looking for similar environmental strategies from their suppliers to the one's they adopt themselves.
"The important thing is to be awake to your supply chain - the benefits are enormous," he says.
Rob Norwell, environmental and compliance manager at Stralfors, agrees, adding that carbon emissions are becoming an increasing concern for those buying print.
"Different customers have a wide range of demands - you can have 10 clients with 10 very different views," he adds. "But carbon footprinting has moved up clients' list of priorities to a degree."
Green pedigree
Direct mail, business forms and transactional printer Stralfors, based in Redruth, has an impressive green
pedigree. The PrintWeek Environmental Printer of the
Year for 2009 measures its carbon emissions and takes regular steps to save energy. Since 2005, the company has reduced its carbon emissions by 700 tonnes achieving a £140,000 saving. In addition, it has implemented a lighting system that has saved around £11,000 per year and 60 tonnes of C02.
"We keep it very, very clear and simple - every environmental project that we have in place has to be measureable. It also must have payback in 24 months - we have clear rules in place," says Norwell.
The company isn't afraid to share its gains with others in the industry and, thanks to the measures it's put in place, Stralfors is below the 6,000MWh threshold for the CRC Scheme. "We aren't part of the CRC Scheme at this stage, but we expect that threshold to be lowered in the future," adds Norwell. "Without reducing our emissions, we would not have gone through the 6,000MWh ceiling, but we would have been a lot closer to it."
Firms that are part of the scheme have to pay a registration fee and then pay for credits. This is one area where Norwell
is critical. "My concerns about the CRC scheme stem
from what happens to the money that's been raised," he says "It seems to be going into an emissions trading scheme. But
if we were paying for it we would like to see how the contribution was being used. Rather than investing in an offset trading scheme, you need to encourage people to use CRC money to invest in reducing their own consumption - the money needs to be ploughed into schemes for organisations to buy into."
Second thoughts?
James Deacon, head of corporate responsibility at Ricoh UK, also has reservations about the scheme. Like Easibind, Ricoh is a Carbon Trust Standard Bearer and has taken significant steps over the years to reduce its emissions. For a supplier, it sets a positive example to customers and its green focus filters into the technology of its digital presses. But Deacon believes that the CRC Scheme's league tables, designed to show transparency, may present Ricoh in a different light.
"We have less energy to save, which may count against us in the league table," he says. "Other companies will make dramatic reductions in emissions and will be ahead of us, as our capacity to make significant reductions has diminished because we have already invested in a green infrastructure."
He's also concerned about calculating a company's carbon footprint. Ricoh is able to calculate a customer's carbon emissions, but it's a different way of measuring compared to its rivals in the market. "At the moment, you're not comparing apples with apples," adds Deacon.
It will be interesting to see exactly how the CRC Scheme will work. While it has its critics, the drive to reduce carbon emissions will ultimately benefit the UK and, if it reduces energy bills, individual companies. The registration period runs from April to September, so by the end of the year we should get a better idea of what glitches will need to be ironed out.
But while the government's carrot-and-stick approach may appear to be burdensome for a business, it's worth remembering that an active effort to reduce emissions can save energy bills, boost profits and win new business.
TOP TIPS
According to the Environment Agency, the print industry spends around £67m on energy bills per year, resulting in an estimated 2m tonnes of C02 emissions. The Carbon Trust also says that the print industry could cut its energy bills by 15% through basic energy saving measures.
? Running motors and drivers uses almost two thirds of the electricity. Higher efficiency motors can save 3-5% of energy
? Around 40% of the energy in the UK goes on heating and drying. Up to 10% can be saved through heat recovery systems, effective insulation on steam pipework and well-maintained boilers
? Install de-stratification fans. These can reduce energy by 20% by blowing warm air down to ground level where it’s needed
? While it costs money to re-equip your business, help is at hand. Your Regional Development Agency and the Carbon Trust may be able offer loans to assist in financing your green needs
THE SCHEME
The scheme comes into effect in April and affected companies, those that have at least one half hourly meter and consume at least 6,000MW of electricity, have until September to register.
When registering, a company will be either a participant or an information declarer. A participant is an organisation that has consumed at least 6,000MW during 2008, while an information declarer is a company that has consumed less. The upshot is that the participant is signing up fully to the scheme, while the information declarer is simply registering but won’t be involved. The Environment Agency has the power to fine companies that fail to register and can prosecute organisations that deliberately falsify data.
The CRC scheme has an initial four-year timeline:
2010 Organisations must register by 30 September
2011 The first sale of allowances takes place in April. Participants can buy allowances at a fixed price of £12 per tonne of C02 Participants will only have to purchase allowances to cover their forecast emissions for 2011 and 2012.
2012 The third compliance year
2013 The first capped phase begins with the auctioning of carbon allowances
