CRC Reporting Requirements

Please note: The content of this article is in the process of being updated to reflect the latest CRC scheme design. Updated content will be posted shortly. The Department of Energy and Climate Change (DECC) website contains complete details on program requirements and design.

An Introduction to the CRC Energy Efficiency Scheme (CRC)

Both in the United States and in the United Kingdom, initiatives are currently underway to force certain categories of business to proactively reduce the size of their carbon footprint and to produce a series of carbon reports to prove their progress.

The new law will require eligible companies to purchase credits from the government which must be effectively traded back in relation to their carbon emissions. Companies that do not use up all their emissions may sell unused allowances to other organizations for financial benefit.

Conversely, those companies who are not as efficient will effectively suffer the equivalent of a financial penalty.

CRC Energy Efficiency Reporting Requirements
The UK government has taken the first initiative with the introduction of the CRC Energy Efficiency Scheme (CRC) legislation which will force an estimated 5,000 companies, directly affected by the law, to take part in a “cap and trade” scheme and to produce carbon reports.

Within the United States, the Obama administration has proposed a similar cap and trade program which has so far met with mixed response and only narrowly passed its first legislative hurdle in the House of Representatives.

The need for production of corporate sustainability reports goes hand-in-hand with the expected and projected calls for submission of carbon reports. Some confusion exists amongst those who are directly affected and those who are not sure whether or not they will be called upon to comply.

The Climate Disclosure Standards Board Procedures

As such, an international climate change body, the Climate Disclosure Standards Board is producing a proposal to help corporations integrate sustainability and environmental information in their reports and procedures.

There will clearly be a need for better understanding of the specific policies, procedures and methods of implementation. Even though the UK government has agreed to - and the US government likely to follow - the implementation of harsh penalties for noncompliance, the better course of action is likely to be the realization of financial benefits that are possible should an organization better it's government mandated performance standards.

A Carbon Footprint Includes Waste & Energy Management

Within the need to reduce the company's carbon footprint most companies need to focus on the fuel generated power usage and transportation generated fuel usage. These two areas most directly affect the size of a company's carbon footprint and its need to compile carbon reports. Outside of the core footprint, a company’s waste and recycling activities also have a direct link to emissions.

Corporate sustainability reports must identify all sectors, programs and departments within an organization that directly and indirectly have an effect on emissions and such data should be included within carbon reports. For example, individuals within the company who travel by air for business purposes should detail this activity according to class of travel, airline, aircraft and route taken to provide detailed information with which to determine an impact on the overall footprint.

Once industry wide benchmarks are achieved and documented, the performance of individual companies can be more accurately determined.

About Verisae

Verisae helps measure, manage and reduce equipment and energy costs including the related business and environmental impacts of carbon emissions. The Sustainability Resource Planning (“SRP”) software platform improves operational efficiency, protects brand integrity and helps ensure regulatory compliance for distributed enterprises across many industries. Verisae delivers a broad range of sustainability solutions to dozens of clients globally with thousands of daily users including an extended network of third-party suppliers. Verisae’s integrated sustainability platform actively tracks millions of assets across thousands of sites worldwide.

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