ARTICLES
ARTICLES
26/03/2024 – edenseven is excited to announce that they have, within a consortium led by Peterborough City Council (PCC), been awarded a £2.75m grant by Innovate UK, part of a total £3.2m project, to boost the local authority’s ability to achieve net zero. This success is testament to PCC’s ambition to deliver a Net Zero City, the essential role that local authorities play in delivering carbon reductions nationwide, and the goal shared by edenseven and the rest of the consortium to support this journey. Working alongside edenseven and PCC, this consortium includes Cambridgeshire County Council, Nordic Energy, Energy Systems Catapult, and PECT. The shared aim of this team is to deliver ‘Peterborough Accelerated Net Zero (PANZ)’ over the next 18 months. This venture is designed to encourage healthier living, reduce costs, and develop a sustainable green skills market. Peterborough was one of the first cities in the UK to adopt a Local Area Energy Plan, which considered the current and future energy demands of heating, electricity, and transport, and laid out its pathway to reach Net Zero. PANZ will pioneer an approach to build on this Local Area Energy Plan, tailoring solutions to the needs of community and place. The project will support the Council in selecting projects that deliver on both carbon reduction and the Council’s many other aspirations for the city. It will encourage financial bundling of projects to create portfolios that can attract private investment, including district heating, and it will enable the Council to track the progress and impact of city-scale projects, making sure investment is directed toward the biggest environmental, social, demographic, and economic impact. edenseven aims to transform the way Local Authorities navigate the complex transition to Net Zero by developing an intuitive, tailor-made, carbon accounting and management platform that can provide a complete view of city-wide emissions and decarbonisation plans. It will give the Council a clear understanding of its current position against Net Zero targets, create insight to identify areas where action is required, and uses the reporting functionality to measure progress. Pete Nisbet, Managing Partner for edenseven, said: “In these pivotal years for decarbonisation in the UK, edenseven is thrilled to be collaborating with Peterborough City Council and the consortium on their Net Zero strategy. We recognise the critical role local authorities play in decarbonising the UK economy and are delighted to partner with forward-looking councils such as Peterborough and Cambridgeshire. This partnership creates a cross functional team equipped to deliver immediate actions for the local economy, as well as supporting the efficient future management of Net Zero projects. It marks the inception of a unique partnership across the public. private and third sectors and showcases our commitment to pioneering sustainable solutions that create social impact.” For more information about the Innovate UK funding, visit Innovate UK invests over £25m in net zero projects – UKRI About edenseven edenseven is a sustainability consultancy and technology provider that uses data and market experience to enable companies and their supply chains to play their part in tackling climate change while achieving sustainable growth. edenseven uses the combined power of data, advanced analytics, and pragmatic project management to help companies baseline their status, identify improvement opportunities in the short, medium, and long terms, and plan and implement those opportunities. For more information, visit our website: www.edenseven.co.uk
What is it? The International Financial Reporting Standards (IFRS) announced two international sustainability standards in 2023, IFRS S1 & S2. IFRS S1 is for sustainability-related financial disclosures and IFRS S2 is for climate-related disclosures. The two standards are designed to be applied together. The standards fully incorporate the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). This means that organisations that comply with the requirements of IFRS S1 and S2 will also be meeting the requirements of TCFD. The standards are voluntary unless adopted into national legislation. The UK is strongly considering adopting the standards into the UK Sustainability Disclosure Standards (UK SDS), currently being developed and due to be announced in July 2024. Who does it apply to?
What is it? The Corporate Sustainability Reporting Directive (CSRD) is an EU directive announced in 2021 to improve corporate transparency, data accuracy, and comparability of their sustainability performance and their associated sustainability risks for investors and stakeholders. CSRD replaces the Non-Financial Reporting Directive (NFRD) and seeks to address its shortcomings by increasing the number of companies in-scope from around 12,000 to 50,000, requiring third party assurance, ensuring a machine-readable format, and requiring additional disclosures covering a broader range of sustainability topics. Additionally, CSRD was developed to align with other frameworks and standards, such as the EU Taxonomy and TCFD, creating harmonised reporting. Who does it apply to?
What is it? The Task- Force on Climate-Related Financial Disclosures (TCFD) was created in 2015 by the Financial Stability Board (FSB), to increase the number of company’s reporting climate information and improve the quality of disclosures. In 2023, TCFD was disbanded as it was deemed to have fulfilled its role. However, in-scope companies are still required to disclose TCFD information. The International Financial Reporting Standards (IFRS) has taken over the monitoring of disclosures. Companies that comply with IFRS sustainability standards, S1 and S2 will also meet TCFD recommendations because these recommendations have been incorporated into the standards. The UK is considering implementing the IFRS S1 and S2 requirements into the UK Sustainability Disclosure Standards (UK SDS), which are expected be announced in July 2024. Businesses should prepare to be compliant with IFRS standards in preparation for upcoming regulation. Who does TCFD apply to?
Well, kind of. In October 2023, TCFD was disbanded after fulfilling its purpose of enhancing corporate climate reporting by creating a widely utilised climate reporting framework. The International Financial Reporting Standards (IFRS) Foundation has taken responsibility for monitoring corporate TCFD disclosures. So, what does this mean for UK businesses? UK businesses within the scope of TCFD reporting are still required to report. IFRS has developed sustainability standards which fully incorporate the TCFD recommendations, known as IFRS S1 and S2. IFRS S1 is for sustainability-related financial disclosures and IFRS S2 is for climate-related disclosures. This means that organisations that comply with the requirements of IFRS S1 and S2 will also be meeting the requirements of TCFD. Does this mean UK businesses will be required to comply with IFRS S1 & 2? Presently, IFRS S1 and S2 remain voluntary disclosures as they have not been adopted into UK legislation. However, this is expected to change. The UK government has expressed interest in adopting IFRS S1 & S2 into its UK Sustainability Disclosure Standards (UK SDS), currently being developed by the Department for Business and Trade. These standards are expected to be released in July 2024 and are likely to then be adopted into UK legislation. When this happens, businesses will need to disclose more information than currently under TCFD. This is likely to include sustainability disclosures that go beyond climate change, such as for water, pollution, biodiversity, resource use and management, whilst also focusing on the social and governance of the business, including the internal and external workforce, and business conduct. What businesses need to do With the increasing regulatory landscape, businesses must focus on data and accelerate their sustainability journeys. Businesses will need to identify, collect and analyse sustainability-related data to ensure they are prepared for upcoming regulations. This includes understanding the environmental impact from their operations and their supply chain. It is also essential to formulate an actionable pathway to Net Zero. cero.earth, our carbon accounting and management platform, provides a seamless solution to ensuring compliance. Capturing and analysing your data, giving you a comprehensive picture of your carbon emissions across scopes 1, 2 and 3, the ability to map carbon scenarios, input business defined targets, create action plans and track performance. The ‘Managed’ solution means all the data capture and reporting is done for you by our expert team, and with the ‘Strategic’ option so is all your compliance reporting – taking the problem away from you entirely.
As global climate regulations come into effect, businesses are facing a growing demand to disclose carbon emissions arising from their operations and their supply chain. However, navigating carbon reporting standards such as TCFD , CSRD , and IFRS can be daunting for businesses. Their complex disclosure requirements combined with differing applicability criteria and staggered timelines puts organisations at risk of reputational damage and fines for non-compliance. cero.earth from edenseven is cloud-based carbon accounting and management platform. Designed to support organisations of all sizes, cero.earth and expert analysts from edenseven will simplify reporting and disclosure, ensuring your business is compliant with all relevant climate regulations.
25/01/2024 - Iceland Foods Limited (Iceland), one of the UK's best known supermarket chains with almost 1000 locations, has signed a long-term agreement with edenseven to report and monitor all classes of emissions through their online carbon reporting and management platform, cero.earth. Built by edenseven's in-house software engineers, cero.earth is a cloud-based carbon accounting and management platform that provides a complete view of a business' emissions and decarbonisation plan. Monitoring emissions across all three scopes, cero.earth gives a business a clear understanding of its current position against net zero targets, creates insights to identify areas where action is required, and uses the reporting functionality to help meet regulatory requirements. Capturing data from all of Iceland's stores, food warehouses, distribution centres, and supply chain, cero.earth will help Iceland to report their Scope 1, 2, and 3 emissions, monitor their existing decarbonisation programmes, and build insight to create momentum across their whole portfolio and supply chain. Pete Nisbet, Managing Partner of edenseven, said: "cero.earth has been built to give businesses like Iceland a resource which will help them make a material change to their overall emissions footprint and meet regulatory reporting requirements. With the seamless data input process, clear reporting functionality, and analytical support, cero.earth will free up Iceland's resources to focus on the deployment of programmes of work to deliver against their net zero ambitions." Graham Ireland, Head of Energy and Mechanical Services at Iceland, said: "As a proud signatory of The Climate Pledge and with a target for our own operations and supply chain to be net zero by 2040, Iceland has a clear focus on emission reduction. At Iceland, we believe that every business has a responsibility to take action against climate change and reduce its carbon footprint. Using a resource like cero.earth will allow us to easily report on all 3 Scopes of emissions, enabling Iceland to achieve our targets through clear insight and easy project tracking, as well as helping to meet regulatory reporting requirements." About edenseven edenseven is a sustainability consultancy and technology provider that uses data and market experience to enable companies and their supply chains to play their part in tackling climate change while achieving sustainable growth. edenseven uses the combined power of data, advanced analytics, and pragmatic project management to help companies baseline their current status, identify improvement opportunities in the short, medium, and long terms, and plan and implement those opportunities. For more information, visit our website: www.edenseven.co.uk About Iceland Foods Limited Iceland is one of Britain's fastest-growing and most innovative retailers, recognised as one of the best companies to work for in the UK. Iceland seeks to build a growing, profitable, and responsible business that does the right thing for their colleagues and customers, the communities they serve, the planet, and future generations. Iceland has almost 1000 locations across the UK.
The UK Government has announced plans to implement a carbon border tax from 2027, known as the UK Carbon Border Adjustment Mechanism (UK CBAM). What does this mean for UK businesses? From 2027, any business importing iron, steel, aluminium, ceramics, and cement into the UK will be subject to mandatory disclosures and required to pay a fee based on the amount of carbon associated with the production of the product (known as embodied carbon). The fee will be worked out based on the carbon pricing of the export country. Products purchased from countries with a lower or no carbon price will be in-scope for the application of a carbon tax. Why are the UK and the EU implementing levies on products? The UK and the EU are both implementing a carbon border tax to reduce the risk of companies offshoring their emissions (i.e., purchasing carbon intensive products from countries with lower climate action/less comprehensive climate policies). The hope is that the higher costs will discourage businesses from purchasing and importing products from highly polluting countries by creating a more price competitive market for products produced more sustainably domestically. How does the UK’s CBAM differ from the EU’s CBAM? Whilst the UK’s CBAM applies to imports of iron, steel, aluminium, ceramics, and cement, the EU’s CBAM will additionally apply to fertilisers, hydrogen, and glass. Additionally, the EU’s CBAM commenced its transitional phase on the 1st October 2023, requiring disclosures on applicable products, with certificates and payments required from 2026. Whilst the UK’s CBAM will begin in 2027. How can we help? edenseven is a sustainability consultancy with an award-winning track record helping businesses design and deliver data-driven sustainability strategies. cero.earth from edenseven is cloud-based carbon accounting and management platform. Designed to support organisations of all sizes, cero.earth and expert analysts from edenseven will simplify reporting and disclosure, ensuring your business is compliant with all relevant climate regulations. Report with confidence: cero.earth follows the Greenhouse Gas Protocol’s recommendations (scope 1, 2 & 3), ensuring you can report with confidence and remain compliant with regulation. Expert support: A team of analysts sit behind the cero.earth platform, able to guide you through the process. Simplified reporting: Seamless ingestion of data into the platform enables a quick upload process, whilst data can be easily exported into desired formats for inclusion in reports, saving you time and resources. Increase transparency: cero.earth enables you to measure and track your scope 1, 2 & 3 emissions, ensuring you can easily disclose your emissions to your stakeholders and shareholders, instilling confidence in your transparency. Progress to Net Zero: Track your progress to Net Zero with cero.earth’s Net Zero Carbon (NZC) dashboard, enabling you to visualise your pathway to Net Zero and your projected Net Zero date.
The Paris Agreement calls for a strong global effort to reach Net Zero by 2050. According to the Intergovernmental Panel on Climate Change (IPCC), global emissions must peak before 2025 and roughly halve by 2030 if we are to limit warming to 1.5°C. However, global emissions continue to increase, requiring immediate action to meet the 1.5°C target. One-fifth of total UK emissions are generated by businesses, so it is essential that they measure their carbon footprint and implement strategies to achieve Net Zero. Scoping out the Problem A company's carbon footprint is made up of different categories, or 'scopes'. Scope 1 covers a company's direct emissions from its owned vehicles and fuel combustion at company facilities (e.g., in furnaces and boilers). Scope 2 covers the emissions from the electricity and heat or steam that a company purchases. Scope 3 covers a company's indirect emissions, such as business travel, employee commuting and product distribution, purchased goods from suppliers, use of sold products, and product end-of-life. For many businesses, scope 3 is the largest source of emissions, accounting for over 70% of their total footprint. Scope 3 emissions are particularly difficult to measure because they are not under the direct control or oversight of the reporting company. Measuring scope 3 emissions often requires collaboration with suppliers and life-cycle assessments (LCAs) of products to determine the full extent of emissions associated with a business. This can be expensive and time-consuming, so many businesses hire external consultants to conduct assessments and develop action plans. A Business Matter A new report by edenseven, reveals that the FTSE 250 companies are far from achieving Net Zero goals and have serious gaps in their emissions reporting. According to the report, the FTSE 250 companies emitted more than 129 million tonnes of CO2 equivalent (CO2e) in 2022, equivalent to the annual emissions of 35 coal-fired power plants. Moreover, the report shows that the FTSE 250 emissions rose by 9% compared to the previous year, indicating a lack of progress and urgency in reducing their carbon footprint. The report shows that only three-quarters of the FTSE 250 companies report their Scope 1 and 2 emissions, and less than half disclosed their Scope 3 emissions for 2022 and a baseline year. This raises doubts about the alignment of these companies with the Paris Agreement, and suggests that many of them are either unaware or unwilling to reveal their full emissions impact. This implies that the 129 million tonnes CO2e figure is an underestimate, and that the actual problem is much bigger. This puts some companies in a position where they cannot make informed and credible decisions to cut their emissions. It also exposes them to the risk of non-compliance with upcoming climate regulations, such as the EU’s CSRD and the ISSB’s IFRS S1 and S2, which require scope 1-3 reporting among other disclosures. The report shows that many FTSE 250 companies are not taking sufficient action to align their Net Zero goals with the Paris Agreement, which aims to limit global warming to well below 2°C, and preferably 1.5°C, compared to pre-industrial levels. More than a third of FTSE 250 companies have not stated a target year for reaching Net Zero, and a mere 4% have adopted science-based targets through the Science-Based Targets initiative (SBTi). Science-based targets are crucial, as they ensure that businesses decarbonise at the rate necessary to meet global climate objectives and reach Net Zero. How edenseven Can Help To simplify the process of measuring and reducing carbon emissions, edenseven has developed cero.earth, a comprehensive management tool that calculates and manages the full scope of emissions sources (scopes 1-3). Using cero.earth, businesses can visualise their emissions, identify areas for improvement, and monitor the impact of their reduction initiatives. By using cero.earth, businesses can make informed and effective decisions to help them reach Net Zero and comply with upcoming regulations. There is a small window of time left to meet the Paris Agreement and minimise the worst effects of climate change. To find out more about cero.earth or how edenseven can accelerate your journey to Net Zero, send us a message.
