Inaccurate carbon data to incur fines

News Article - 23 March 2010
Category: Environment

KMPG has warned companies may face significant fines in addition to reputational damage when the Carbon Reduction Commitment (CRC) is introduced in just over a week. The Big Four firm said submitting inaccurate carbon output data will be the cause of most penalties, and that many companies are still inadequately prepared for the demands of the CRC.

Under the scheme, all companies that operate half-hour electricity meters will register with the Environmental Agency. Around 5000 of the top polluters, or those with electricity costs over £500,000 per annum, must track carbon output and supply detailed statistics to the government. This is expected to be extended to small and medium sized companies if successful.

Once this data has been collated, the government will produce an annual emissions table that will rank businesses based on the size of the organisation's carbon footprint. The most environmentally friendly firms will receive tax rebates and other incentives.

The main obstacle most companies will face with regards to the carbon tracking aspect of the CRC is how to track carbon output effectively and correlate this data into a usable form. With all business areas contributing to some extent to the overall carbon footprint, developing a system that takes into account all departments and operations can put a significant strain on a firm's resources.

Carbon tracking software is vital for companies to measure and monitor their carbon emissions. Access software offers a variety of features to ensure data collected is accurate; it also offers organisations the ability to breakdown carbon output by department or individual staff member. This allows companies to 'drill down' into the firm's carbon footprint and undertake analysis more easily.

By ensuring data supplied to the government is accurate, companies develop a strong environmentally-friendly profile that will become particularly beneficial as reputation becomes increasingly linked to the green agenda. As the government begins to put more pressure on businesses to reduce emissions, accurate carbon output data will also allow companies to more efficiently drive the behavioural change necessary to reducing the organisation's carbon footprint.

Please call Access on 0845 345 300 for more information on carbon reporting software.

Article keywords: Carbon Reduction Commitment, CRC, carbon tracking software, environmental agency, green accounting, carbon emissions reduction, carbon footprint

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