Carbon Reporting: how innovation can help

In recent years, the conversation around sustainability and environmental responsibility within businesses has intensified.

The UK has set ambitious targets to reach net-zero carbon emissions by 2050 – with Greater Manchester setting itself the challenge of being carbon neutral by 2038 - and businesses play a crucial role in achieving this goal. Around 18% of the UK’s total carbon emissions come from commercial activity and businesses are increasingly being held accountable for their environmental impact. One crucial aspect of this accountability is carbon reporting.

The Streamlined Energy and Carbon Reporting (SECR) dominates the carbon reporting landscape in the UK. SECR requires organisations to disclose their energy use, their scope 1 and 2 greenhouse gas (GHG) emissions, their previous year’s figures for energy use and GHG, at least one emissions intensity ratio, and details of their energy efficiency measures in their annual reports.

Good for the environment; good for business

As we move towards a greener future, businesses that prioritise and transparently report their carbon footprint will be better positioned to thrive as the demand for sustainable products and services grows.

Transparent carbon reporting demonstrates a business’s dedication to reducing its environmental footprint, which can enhance its public image and attract eco-conscious customers and investors. Consumers are becoming more environmentally conscious so a business that demonstrates its commitment to sustainability and reducing its carbon footprint is significantly more appealing.

EcoVadis’ 2021 Sustainable Procurement Barometer revealed that 69% of respondents are taking sustainability performance into consideration when selecting new suppliers and renewing contracts, up from 51% in 2019 indicating a growing trend of companies prioritising sustainability in their supplier relationships.

Being proactive in carbon management can also future-proof businesses against stricter regulations and shifting market expectations. A 2014 study by the Carbon Disclosure Project (CDP) found that businesses that actively plan for climate change see an 18% higher return on investment than companies that don’t – and 67% higher than companies who refuse to disclose their emissions. In 2021, the UK became the first country in the world to require companies bidding for government contracts worth more than £5million a year to commit to achieving Net Zero emissions by 2050.

However, carbon reporting isn’t just about meeting regulatory requirements and enhancing your businesses reputation - it’s also a powerful tool for identifying inefficiencies. By analysing energy usage and emissions, your business can pinpoint areas where you are wasting resources and identify opportunities to implement energy efficient technologies, which will not only reduce your carbon emissions but also lead to substantial cost savings.

The power of innovation

Carbon reporting encourages businesses to look for innovative ways to cut down on their emissions. Often reports reveal where a business’ environmental impact is the greatest, providing valuable insights that spur innovation by encouraging the development of new services and processes.

The Energy Innovation Agency works with innovators and end-users to match innovative products and services with businesses, enabling the commercialisation of low carbon technologies via deployment within organisations with energy challenges looking to decarbonise. With quick wins addressed, innovative solutions can tackle the hard-to-reach emissions and energy wastage.

Access to low-carbon energy innovation does much more than simply support net-zero goals. Energy innovation can reduce energy bills, optimise energy consumption, and even make businesses more competitive.

How the Energy Innovation Agency can help

Solving these challenges is a time-consuming process and can be disruptive to the general running of a business but the Energy Innovation Agency can simplify this.

Through our network of over 130 innovators, the Agency can match your business needs and challenges with solutions offered by innovators that includes everything from the technology to help monitor your emissions to identifying investment priorities through to the solutions to help you address inefficiencies. By working closely to understand your sustainability and decarbonisation priorities for your business, the Agency can offer solutions tailored to your needs, and continuously review and monitor the market for access to new solutions. For more specific energy challenges, the Agency can reach out to its database of innovators with a request to create bespoke solutions.

The Agency is currently providing a limited decarbonisation project funding offer of up to £30,000 towards deployments of energy innovations within Greater Manchester, including project design and ongoing support.

To find out how the Agency can help you, get in touch.