Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.
-
Upload
arthur-powers -
Category
Documents
-
view
220 -
download
4
Transcript of Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.
![Page 1: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/1.jpg)
Accounting for carbon emissions
Kevin MisselbrookCustomer Services Director,
Access Accounting Ltd
![Page 2: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/2.jpg)
Why is the Green Agenda important to my business ?
• Cost-saving efficiencies• CSR• Compliance• Business sustainability
![Page 3: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/3.jpg)
Cost-Saving
• Higher cost of carbon usage• Tax burden• You can’t manage what you can’t measure • Good measurement highlights awareness
throughout the organisation
![Page 4: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/4.jpg)
CSR
• Corporate and Social Responsibility• CSR reporting requirements• Customer attraction• Suppliers• Investor awareness • and ….
![Page 5: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/5.jpg)
• Will day slide ?
Moral duty ? Moral duty ?
![Page 6: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/6.jpg)
Stern Review•Overwhelming evidence of climate change•Impact : loss of between 5% - 20% of GDP each year !•Cost of controlling – as little as 1% of GDP
“The costs of stabilising the climate are significant but manageable; delay would be dangerous and much more costly”
![Page 7: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/7.jpg)
Supply Chain Pressure
![Page 8: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/8.jpg)
Compliance• Climate Change Bill
– “Cascade” effect on supply chain
• Climate Change Levy• Carbon Trading Schemes (expanding)• ISO 14001
– Environmental standard for businesses– ISO140064 – Carbon Reporting
![Page 9: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/9.jpg)
Compliance• More legislation ? • Dept of Energy & Climate Change – (Oct 08)• Audit standards – Carbon Trust, IAASB• Government standard to be provided by Oct
2009• Companies Act changing by 2012 – mandatory
reporting
![Page 10: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/10.jpg)
Sustainability
• Need to have a business model that operates in a carbon-efficient world
• Establish strategies for the future• Build a sustainable energy-efficient business
![Page 11: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/11.jpg)
Measurement
![Page 12: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/12.jpg)
Improvement Cycle
![Page 13: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/13.jpg)
Carbon Measurement
• Expensive• Difficult• Process-intensive• Availability of results limited• Difficult to get Actual vs Budget
![Page 14: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/14.jpg)
Methodologies• LCA
–LifeCycle Assessment• Modelling tool• Good for counting product CO2 cost• BSI PAS 2050 launched 29th October 2008
– Defines the method and approach to LCA calculations
![Page 15: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/15.jpg)
36 pages of guidance !
![Page 16: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/16.jpg)
LCA Assessment
![Page 17: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/17.jpg)
![Page 18: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/18.jpg)
Methodologies• LCA
• On line calculators
![Page 19: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/19.jpg)
![Page 20: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/20.jpg)
Methodologies• LCA• On line calculators• Carbon Audit (3rd party)• Company Modelling tools• Integrated within the Accounts function
![Page 21: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/21.jpg)
Solution from Access
![Page 22: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/22.jpg)
![Page 23: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/23.jpg)
Solution from Access • Embodied within the finance system• Minimal additional keystrokes to collate
carbon data• Real time reporting
– By Division, Cost Centre, Individual
• Actual vs Budget• Short learning curve for staff
![Page 24: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/24.jpg)
• Driven by DEFRA tables• Follows GreenHouse Gas protocol• The only solution integrated within the
accounts system• Affordable to SMEs
Accounting for Carbon Emissions
![Page 25: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/25.jpg)
Key Standards Used• GreenHouse Gas Protocol• Scope 1
– Direct production of CO2 emissions• Burning fuel in transport, Chemical process release, creating
electricity
• Scope 2– Indirect use of power
• Scope 3– Other indirect carbon
• 3rd parties, supply chain etc etc
![Page 26: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/26.jpg)
Key Standards Used• Defra Tables
– Sets out UK standards for CO2 calculations
![Page 27: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/27.jpg)
Key Standards Used
![Page 28: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/28.jpg)
Development Strategies
• LCA , Corporate Footprint, or both ?
![Page 29: Accounting for carbon emissions Kevin Misselbrook Customer Services Director, Access Accounting Ltd.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649e525503460f94b47e21/html5/thumbnails/29.jpg)
Any Questions ?