Local Government Lawyer - Into the real world

Into the real world

Wednesday, 26 May 2010

Within public organisations, monitoring and reporting of carbon has typically been done on Excel spreadsheets, requiring significant investment of time and effort. With increasing reporting frequency and complexity this approach is fast becoming unmanageable. Hugo Seymour, Carbon Consultant at Greenstone Carbon Management, explains how to progress to ‘on demand’ carbon reporting while increasing accuracy and reducing the time and effort required.

Carbon reporting is an increasingly important activity for public organisations. Showing leadership on climate change action is a high priority for all political parties and will continue to be expected of public sector bodies under the new Government. The ability to produce regular, accurate carbon reports is consequently an essential requirement.

Until recently, energy use and carbon emissions were generally only calculated once a year. This process was, and in most cases still is, conducted by an individual or small team tasked with collecting data from all relevant sources ranging from utilities for electricity and water use to expenses systems for travel data. Raw data collected in spreadsheets is analysed for the relevant information, re-formatted and summarised to enable the correct emission factors to be applied and the corresponding carbon emissions calculated.

Maintaining and applying emission factors to the collected data is a time consuming and challenging exercise. Each methodology (eg. Defra, CRC, GHG) defines its own emission factors and these are revised at least annually. Given that it’s not unusual for a methodology to include over 500 factors the constant monitoring and updating of these is a job in itself.

Further, the sheer volume of data involved is a significant challenge in itself. The acquisition and inevitable manipulation and data formatting requirements increase the risk of introducing human error into the calculations, particularly when individuals are faced with the output of a utility or expenses system with which they are unfamiliar. There are also the limitations of spreadsheets themselves: some organisations have already run out of columns in their spreadsheets as their data reporting has multiplied.

Using spreadsheets increases risk of reporting error

These issues not only result in a high manpower cost but also increase the risk of mis-reporting. This is particularly important in the context of the CRC Energy Efficiency Scheme, where errors in reported data above a 5% tolerance level are subject to a financial penalty. However, it is also very important for other reporting purposes such as National Indicators or annual reports. Calculation or data handling errors can result in the publication of false reductions in emissions. The subsequent rises when these errors are discovered and rectified can affect confidence amongst a sceptical workforce or public.

There are two possible options for avoiding these potential pitfalls. Organisations could greatly increase the amount of resource devoted to this area, by recruiting new people with specialist skills to focus on data handling, spreadsheet configuration and number crunching. This would obviously put additional pressure on already tight budgets without increasing the likelihood of achieving emission reductions. Alternatively, they could invest in a carbon management software application which effectively outsources a number of these challenges and allows the relevant staff to focus on carbon reduction activities and the achievement of savings.

Making data collection and analysis easier

Such software offers particular benefits for public sector organisations. The level of understanding of carbon issues and requirements can vary significantly across public sector organisations. Often people can be supplying data uncertain of the purpose or importance and leave out essential information. Carbon accounting software systems can integrate with recording and analysis applications to automatically download the required data directly from the source, or raw data can be uploaded without the need for prior manipulation in spreadsheets. Those responsible for data gathering are also able to log into the system and easily view the results of the calculation, increasing their understanding of the purpose of the process and the importance of high quality data.

However, many data systems throughout the public sector are in need of modernisation, making it difficult to hold or extract the necessary data. The processes associated with the collection of carbon emission source data are being evaluated closer than ever before and highlighting errors which can take time to rectify. Having a system with the flexibility to update and backdate data is essential. In addition to taking the burden of calculating and reporting, carbon accounting software can give a long term view of which data is required, enabling organisations to adapt and optimise their systems and processes.

Forecasting and scenario planning

Carbon accounting is not just about reporting. Public organisations are responsible for a complex range of infrastructure and services ranging from schools and care homes to recycling and street lighting, all of which have a carbon impact. With growing pressure to continue reducing emissions while facing budget constraints, it will be increasingly important to forward plan accurately for energy usage and carbon emissions. Monitoring detailed energy usage, assessing trends and predicting future service requirements can be complicated in a network of ad hoc created spreadsheets. Using functions such as scenario planning and forecasting, which are built into carbon accounting software based on real and accurate data, public sector organisations can test carbon reduction ideas, initiatives and projects before they are implemented. They can therefore make informed decisions about where to allocate their resources for maximum impact at minimum cost.

Greenstone Carbon Management Limited is a specialist carbon solutions company – based in London. For further information please visit: www.greenstonecarbon.com

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