Sustainable.Business.Network.. North.Hampshire. · culpability: £450,000 up to £3mil for Large organisation £9,000 up to £95,000 for Micro organisation • Scene set for large

www.futuresolent.org.uk.

Sustainable.Business.Network..North.Hampshire.

!  Events'Networking'Advice'Innova4on'!  For'a'greener'future'!  Sponsored'by'Basingstoke'and'Deane,'Rushmoor'and'

Hampshire'Chamber'of'Commerce'

!  Chair'Dr'Wendy'Buckley'Carbon'Footprint'Ltd'


Saving'Energy'–'‘ESOS'or'Not’''!  Legal.Update.–'Claire'Wallace,'Blake'Morgan'

!  Saving.Energy.–’ESOS.or.Not’,'Dr'Wendy'Buckley,'Carbon'Footprint'Ltd'

!  Energy.ReducDon.at.University.of.Winchester.–.Case.Study.–'Mat'Jane,'University'of'Winchester'

!  Sustainable.Transport.for.all.Businesses.–'Nick'Farthing,'SusTrans''''''

Legal Update – Legal Developments affecting the Environment and your Business

Claire Wallace, Solicitor

Blake Morgan LLP

3 July 2015 3

Sentencing Guidelines - update

•  3 June 2015 – First Court of Appeal decision on Environmental Sentencing Guidelines

•  R v Thames Water Utilities [2015]

•  Guidelines came into affect July 2014 – hugely increased scope of fines for breaches of environmental regulations

•  Apply to individuals over 18 years and organisations

3 July 2015 4

•  Different categories of harm (Category 1 = most serious, Category 4 = least serious)

•  Four levels of culpability: Deliberate, Reckless, Negligent or Low/None

•  Sentencing then decided based on size of organisation: Large (£50mil+); Medium (£10mil - £50mil); Small (£2mil - £10mil); Micro (less than £2mil)

•  ‘Very Large’ organisations dealt with separately

3 July 2015 5

Sentencing Guidelines - recap

Sentencing Guidelines – recap

•  Range of sentence for Category 1 harm with high culpability: £450,000 up to £3mil for Large organisation

£9,000 up to £95,000 for Micro organisation

•  Scene set for large fines – now confirmed by Court of Appeal in R v Thames Water Utilities [2015]

3 July 2015 6

R v Thames Water Utilities [2015]

•  Thames Water = operator of pumping station •  Negligence on part of Thames Water

•  Crown Court sentence: £250,000 plus costs

•  Thames Water appealed sentence

•  Turnover of Thames Water = £1.9 billion / Profits of £346 million = Very Large Organisation

•  Court of Appeal judgement: Sentence must be just and proportionate. Start with turnover, but must also consider profit

06/07/2015 7


•  Objectives are Punishment, Deterrence and Removal of Gain

•  “May well result in a fine equal to a substantial percentage, up to 100% of the Company’s pre-tax profit for the year in question…even if this results in fines in excess of £100 million”

•  Direct comparisons made with penalties in the financial services market

06/07/2015 8


•  Court of Appeal: Starting point in current case would have been a seven figure sum. A number of previous convictions but no routine disregard for environmental objectives

•  £250,000 was extremely lenient

•  “Would have had no hesitation in upholding a very substantially higher fine”

•  Appeal dismissed

06/07/2015 9

•  Conclusions to be taken from ruling are: –  Financial circumstances highly relevant – information

must be accurate

–  Regulatory environment for offences now much harsher – fines exponentially higher

–  Similar draft guidelines in pipeline for Health and Safety offences – all businesses need to be aware

–  Mitigation very important – early self-reporting and significant steps taken to address issue and make reparation

06/07/2015 10

Enforcement undertakings

•  Powers of Environment Agency (EA) to accept Enforcement Undertakings (EU) as an alternative now extended to offences committed under Environmental Permitting Regulations 2010.

•  Only where EA feels it is an ‘appropriate regulatory outcome’ (not likely for Category 1 offences)

•  Considered more favourably if offered early, and reparation has been made

•  Breaches of Permitting Regulations make up bulk of EA’s enforcement actions

•  More clarity still required for when this will be considered acceptable by EA

06/07/2015 11

Other legal sector updates

•  Government has brought forward end to on-shore wind farm subsidies – 1 April 2016

•  Local resident veto now also possible

•  Possibility that UK will miss 2020 targets? Gov says no. European Commission says yes.

•  Move towards fracking to provide energy needs for the future

•  Calls for a specialist regulator for fracking industry by Task Force

•  Currently regulated by DECC, EA and HSE

06/07/2015 12

Other legal sector updates

•  Proposed new regulator would be accountable to DECC and DEFRA

•  However: New regulator is called for by fracking Task Force and…

•  …the Task Force funded by Cuadrilla, Centrica, Total, Weir Group, Dow Chemical and GDF Suez E&P UK – motives?

•  Cart before the horse – first application rejected in Lancashire

•  Finally – Supreme Court ruling on UK air pollution

06/07/2015 13

Carbon'Footprint'Ltd' www.carbonfootprint.com.©'Carbon'Footprint'Ltd'2015'

Saving.Energy.&.Cost.–.‘ESOS.or.Not’..

3'July'2015'

''Dr.'Wendy'Buckley'

Client'Director,'Carbon'Footprint'Ltd'


How.much.has.M&S.Spent.on.Their.Plan.A?.


How.much.has.M&S.Spent.on.Their.Plan.A?.

£200M'Invested'over'5y'programme''


Return.on.Investment.from.Plan.A?...


Return.on.Investment.from.Plan.A?...

Investment'returned'within'5y'plus''£135M'savings'(and'counTng!)''


Savings.&.Value.beyond.the.bills…..

�Sustainability.isn�t.just.about.the.financial.benefits..Not'all'benefits'can'or'should'be'mone4sed.'Think'employee'mo4va4on,'supply'chain'

resilience'and'brand'halo.�'

Adam'Elman,'Head'of'Delivering'Plan'A,'M&S'


What.we’ll.cover.….

•  Why'do'it''['�What�s'the'law�'–'ESOS'or'Not'

•  How'to'do'it'–'Energy'Profiling'–  Building/process'–  Transport'– My'house'

•  How'to'do'it'–'Site'&'Transport'Audits'•  Nasty'surprises'['Bills'&'Brokering…'•  Payback'Tme'•  Funding….''


ESOS.–.If.you.are.in.you.need.to.complete.by.5.Dec.15..

•  Got.a.LeUer.from.the.Environment.Agency?.•  Who�s.In?.

–  ALL'large'trading'organisaTons'•  >250'employees'•  Or'Turnover'>'€50'million'AND.has'an'annual'balance'sheet'which'is'

over'€43'million'

•  �But'we�re'a'charity�….'•  �We'have'1000'employees'but'only'249'FTEs�'….'

•  �We�re'a'private'equity'firm'–'we'just'own'a'big'company�….'''

•  BUT'Voluntary'for'SMEs'–  Covers'Energy'and'Direct'Transport'–  Compliance'by'5'Dec'2015'–  Then'repeated'every.4.years.


‘Mini.ESOS’.–.for.SMEs.

•  UK'Government'has'published'the'�SME'Energy'Efficiency'Guide�'on'26'March'2015'

'hfps://www.gov.uk/government/

publicaTons/sme[guide[to[energy[efficiency'

•  82'pages'sets'out'low[cost'measures'and'steps'that'small'and'medium'sized'business'(SMEs)'can'take'to'start'saving'energy'and'money'on'their'bills'


You.don�t.need.to.implement.any.energy.savings.….but.your.landlord.might.have.to.

•  Minimum'Energy'Performance'Standards'2018''


Other.legislaDon.&.supply.chain.reasons.why.it�s.good.to.save.energy…...

•  Carbon'ReducTon'Commitment'–'carbon'costs'you'£15.60.per.tonne.•  More'energy'–'more'Climate.Change.Levy.costs.•  Climate'Change'Agreements'(CCAs)'–'avoid.fines'•  ReporTng'within'the'Carbon.Disclosure.Project.(CDP).–.points.&.reputaDon...•  Tendering'–including'your'carbon'footprint'result'(Is'it'Bad?)''

Carbon'Benchmark'–'How'Good'are'You?'hfps://carbon.knackhq.com/''


How.high.or.low.is.your.energy.use.(buildings,.processes.and.transport)?.

OrganisaDon.type. Range.Tonnes.CO2e.per.person.

Rough.spend,.£.per.person.

Office'based' 2'to'4' 600[1200'

Manufacturing' 5'to'15' 1500[4500'

Transport'focused'(logisTcs,'maintenance/service,'cleaning)'

5'to'10' 1500[3000'

Calculate'your'CO2'emissions''hfp://www.carbonfootprint.com/calculator1.html''''


ESOS�s.3.Stages.make.good.pracDce.for.all.organisaDons….

•  Stage'1''–  Assess'your'Total'Energy'Use'(Total'Energy'

CalculaTon)''–  IdenTfy'90%'use'sources'for'further'evaluaTon'

•  Stage'2'–  Carry'out'a'desk'based'energy'profile'of'use'(by'HHM,'

by'monthly'billing'etc)''–  IdenTfy'the'�hot'spots�'

•  Stage'3''–  On[site'energy'audit'of'highest'uses/hot'spots''–  IdenTfy'opportuniTes'for'reducTon'–technical,'process'

or'behavioural'–  Don�t'forget'to'analyse'your'energy'supply'cost'(tariff)'–  Work'out'the'ROI/payback''&'report'it'to'your'Top'

Team''''

Final.Stage.is.to.Report.to.the.EA.…if.you.are.not.in.you.won�t.need.to.do.this….'


Stage.1.c.What.an.ESOS.Total.Energy.CalculaDon.looks.like.

IdenTfy'top'90%'and'focus'in'on'it'for'your'energy'audits.'''

Here'in'Spend'–'you'can'also'present'kWhr'


Q:'What'was'turned'on'at'about'8am'on'5'January'2015,'which'hasn’t'been'turned'off'since?'This'is'using'about'11kWh'/'half'hour'(i.e.'22kW'of'power,'cosTng'about'£370'per'week'to'run).''

0'

5'

10'

15'

20'

25'

30'

35'

00:30'

01:30'

02:30'

03:30'

04:30'

05:30'

06:30'

07:30'

08:30'

09:30'

10:30'

11:30'

12:30'

13:30'

14:30'

15:30'

16:30'

17:30'

18:30'

19:30'

20:30'

21:30'

22:30'

23:30'

Average'12[16'January'15'

Saturday,'17'January'15'

Sunday,'18'January'15'

Average'14[18'July'

Saturday,'19'July'14'

Sunday,'20'July'14'

Stage.2c.ESOS.c.Desk.based.profiling.of.a.site.


Energy.Profiling.…at.my.house!.

Cost'of'meter'£100''['Clip'on,'wireless,'on[line'App['e.g.'Owl''


Energy.Monitoring.(During.a.Day).



Cooker'on'–'cooking'kids'tea'(oven'on)'



Kids'going'to'bed'



Mum'and'Dads'tea'being'cooked'



EaTng'Dinner'



Time'for'a'coffee'



Chill'out'watching'TV'



Dishwasher'goes'on'(has'a'double'peak'for'energy)'



Night'Tme'base'load'is'very'low''Just'fridge'freezer'and'maybe'a'few'things'on'standby'



Time'to'get'up'and'have'a'shower'



Kids'on'Easter'holiday'



Another'coffee'



Kids'hungry,'so'had'some'toast'



Kids'taken'to'the'park'


Stage.3.c.Have.a.Checklist.for.your.Site.Audit….

•  HeaTng'Programmers'(Tmings'and'temperatures)'•  Building'Management'Systems'•  Building'fabric'(drass,'insulaTon'etc.)'•  HVAC'•  LighTng'(including'controls)'•  IT'equipment'•  Compressors'•  Specialist'Equipment'•  Processes'•  Staff'Behaviors'


Stage.3.–.OncSite.Audit.…Deep.Dive.where.is.all.that.energy.being.used?..

Gas.heaDng.and.hot.water.

24%.

Cooling.and.venDlaDon.

20%.LighDng.30%.

Other.electricity.

11%.

CompuDng.15%.


Stage.3.c.Transport.Audit.

Look'for'anomalies'[ Expected'seasonal'variaTons?''[ ….or'is'something'else'going'on'


Stage.3.–.Vehicle.choice.can.make.a.big.difference…..

…but.so.does.driver.behaviour….vehicles'�underperforming�'–'i.e.'much'few'mpg'than''expected'or'much'greater'distances'are'warning'signs''['poor'maintenance''['fuel'being'used'for'own'usage?'[ Heavy'right'foot/sharp'braking?'[ Long'route'round'to'claim'extra'mileage?'

''''


Stage.3.c.Transport.–.AcDons.&.Payback.

•  Fuel.Performance.Monitoring.within.Vans/HGVs.–.TelemaDcs'–  Track'fuel'performance'alongside'exisTng'fuel'cards'system,'across'all'cars,'

vans'and'HGVs'to'improve'fuel'monitoring'against'accurate'vehicle'acTvity.'Set'reducTon'targets/KPIs'.'Driver'engagement'–'Monthly'cash'incenTves.'

•  Reduce.all.company.cars.emission.below.120gCO2/km'


!.Unexpected.Hot.Spots.!..

•  Unexpected'quiet'hours'energy'use'….usually'has'a'more'legiTmate'reasons….'

•  Errors'in'Bills'•  Look'at'your'tariffs'&'Switch!'


Gejng.Funding/loans.

•  Private.Sector.–  Manufacturing'Advisory'Service'(MAS)/'ERDF'

–  hfp://www.mas.businessgrowthservice.greatbusiness.gov.uk'

–  Enhanced'Capital'Allowances'–'Energy'Savings'Tech'list'–  hfps://www.gov.uk/energy[technology[list'–  Siemens'loans'(Carbon'Trust)'

–  Green'Deal'•  Public.Sector.

–  Salix'–  'hfp://salixfinance.co.uk'


ESOS.is.easy.….even.for.SMEs…they.key.is.to.use.to.save.costs.and.drive.performance...

•  ESOS'3'Step'process'is'a'simple'one'any'business'can'follow'

•  Buildings''assessments'can'idenTfy'10[20%'cost'reducTons'

•  Transport'assessments'can'idenTfy'10[30%'(someTmes'more)'''

•  May'be'useful''with'your'landlord'

•  Measure,'reduce'&'promote'your'carbon'footprint'

•  Improve'your'sustainability'credenTals'to'enhance'sales'tender'chances''


Saving.Energy.&.Cost.–.‘ESOS.or.Not’..

3'July'2015'''Dr.'Wendy'Buckley'Client'Director,'Carbon'Footprint'Ltd'[email protected]'01256'345645/07757'499376'


Click'Here'for'Prezi'Based'Case'Study.

Nick'Farthing'Area'Manager'

Sustrans'

What’s'in'it'for'Us!?''''''Sustainable'Transport'for'all'Businesses'

• 172 million working days lost to the British economy

•  costs £20 billion to the business and public sector

•  and £100 billion to the wider economy'

Healthy employees benefit the employer •  reduced absenteeism

Daily mobility On average, people make three trips per day, spending one hour travelling

Activities Only one in five trips is work-related

Spatial orientation Five out of six trips begin or end at home

Car trips 10% are not further than 1km, 30% are not further than 3km and 50% are not further than 5km

Analysis of travel behaviour shows very significant potential for change to more active modes

•  Car Share

•  Parking Spaces

•  Staff Turnover

•  Travel Planning

Cost-effective Transport •  walking and cycling for short journeys •  increased use of public transport

•  car-free days (Commuter challenge)

•  car sharing and car clubs

•  home-working •  grants •  electric vehicles

Lower Running Costs!! •  Smarter-driving

•  Public Transport

•  “Free” Holiday!!

•  “Free” payrise

Alternative Transport •  Bus

•  Rail

•  Taxi

•  Walk

•  Cycle

•  Carshare

Eco-driving •  Anticipate traffic flow

•  Maintain speed at steady RPM

•  Change gear earlier

•  Check tyre pressures

•  Start of in morning in forward gear

Information •  My Journey

•  Energy Saving Trust

•  Liftshare

•  Transport providers

•  Future Solent

•  Carbon Footprint Ltd

more physical activity - can reduce the risk of obesity, heart disease & diabetes

safer roads & public spaces - nicer for communities and can help reduce accidents

lower C02 emissions - and savings in carbon emissions

Re-allocation

Thank you'

Documents

Sustainable.Business.Network.. North.Hampshire. · culpability: £450,000 up to £3mil for Large organisation £9,000 up to £95,000 for Micro organisation • Scene set for large