Supply chain engagement, as part of your sustainability strategy, will make your business stronger
24 May 2022
Don't fear Scope 3, embrace it
Momentum is vital if you want to deliver an effective and on-time sustainability strategy. But it’s often a challenge for organisations to create.
As time ticks on, your teams face a mountain that gets steeper and steeper. This inevitably causes a ‘rabbit in the headlights’ effect, intensified by business resource shortages and diary backlogs.
The longer you leave it, the steeper that curve gets.
First, you must quantify the size of the task ahead: where have you set the boundaries and what is the 'Scope' you have signed up to?
Every strategy is different, as no industry is the same. No matter what sector your company sits in and no matter how well you think you know your business, capturing the right data in a timely and effective manner, and harnessing ‘momentum’, brings many challenges.
That said, there are ways to make this process focussed and more efficient.
We will explain more below, but first let’s start with a definition of Scope and your responsibilities as a business.
What are the three Scopes?
The Greenhouse Gas Protocol divides emissions in three categories:
- Scope 1: Emissions released directly from a business
- Scope 2: Indirect emissions released from the energy purchased by an organisation
- Scope 3: Indirect emissions, accounting for upstream and downstream emissions from a product or service and emissions across your supply chain
As a business, Scope 1 and Scope 2 are pretty much in your control: you own the data and to a certain extent have control of the people and processes.
Scope 3 can put fear into even the most experienced sustainability professional.
Why the fear?
It's big: At least 90% of your overall footprint and in some instances even more, depending on the industry
It's hard to organise: It can be a bit like 'herding sheep'. You have multiple suppliers from potentially different sectors, different attitudes to sustainability, and different stages of 'carbon maturity'.
It's complicated: Some will have data, some will not. It might be very manual at the start. Your suppliers might be in different countries, speak different languages and have different legislation. How do you summarise your findings to give them value?
Ultimately, this is the right thing to do. A net zero strategy which covers Scope 3 communicates clear intent to make a difference to the way you operate. Tackling Scope 3 will embed sustainability into your overall culture and BAU operations sooner rather than later; before the mountain becomes too steep.
A three-step approach
If your organisation doesn’t cover Scope 3 in your targets don't immediately worry; but do start planning to extend your horizons. If you do have it embedded in your targets but haven’t engaged with your supply chain, once again don't panic.
Below are a few simple thoughts on how to achieve your goals and thrive in the process.
Step One: Be Organised
As with most things we deal with in the world of energy and sustainability, if you don't know the start position, how will you know what you've achieved? Scope 3 is an enormous element of your overall carbon footprint, so you need to understand the problem in detail.
This can be done through realistic assumptions and estimates to start with, but ultimately going straight to the source and asking 'simple' and straightforward questions is going to be the most effective way of building clear data sets. We would like to emphasise the word 'simple'. You don't want to turn suppliers off before you've even started. Build 'data confidence' over time.
Start with a simple survey, which takes no more than 10 minutes to complete. Then build from this starting point. Once you have a base line of information, you can progressively expand the questions over time.
Step Two: Be Engaged
Using data requests in a new procurement process is an effective way of gaining the data quickly. However, engaging with an already established supplier is a slightly different process. Demanding that legacy suppliers give you 100 separate pieces of data by next week might work, but it is likely to damage a relationship rather than enhance it.
We are finding that organisations who outline their own intention for net zero and why they are asking for this information will get better long-term results from their supply base. This moves it from a purely transactional relationship to one which is a true embedded partnership.
If you can articulate what you need and why, it's amazing what suppliers will do. If you can’t do this then, you don’t have a well-considered plan.
Step Three: Be Consistent
Have a plan and let your suppliers know about it. Tell them what you are doing and what has worked in the past and what hasn't. Achieving net zero is a multi-layered process and one which will have many twists and turns along the way. Your customers will demand change and your supply chain needs to be aware of it. This will take time and needs continuous focus. Don't expect it to happen overnight.
Bring structure to your plan. Examples of how this can be done are:
- Creating a simple and easy data capture process (preferably an online platform rather than spreadsheets)
- Create sustainability forums with suppliers included
- Build a communication hub outlining key achievements and announcements
- Ring fence green 'funds' to subsidies capex programmes
- Develop joint community events across your business regions
These actions will ease the pain and really move things forward for your engagement plan.
It isn't easy, but the rewards are huge
One thing is for certain, sustainability and carbon reduction programmes will become part of standard business practice. If they are not embedded into BAU operations, customers and policymakers will make it very hard for organisations to remain financially viable.
There is a business need to create true joined up engagement across the whole supply chain. Increasing dialogue and forming a common link between each organisation in your network of businesses can only improve your ability to adapt to change through the sharing of innovative ideas and building true partnerships.
If you would like to talk to the edenseven team about effective steps to implement Supply Chain Engagement programmes, please get in contact with us.
As energy prices climb, staff costs rise, and local authority budgets tighten, leisure centres across the UK are navigating choppy waters. Nowhere is this pressure felt more acutely than in facilities with swimming pools. These highly valued public assets are also among the most energy-intensive parts of any leisure operation, with heating, ventilation, water treatment, pumps and lighting systems operating almost constantly. According to a Lords report, between 2021 and 2024, 77 local authority managed leisure centres across the UK closed, many citing increases in utility costs as a contributing factor. In 2023, a medium sized operator of public leisure centres announced that it's utility costs had increased from £8m in 2021 to an estimated £24m in 2024. Yet, despite these pressures, swimming pools remain a vital part of the health and wellbeing infrastructure in our communities. The challenge is to safeguard their future by reducing operational costs and environmental impact while maintaining, or ideally improving, comfort and safety for bathers. This is where a focused, evidence-led approach to energy efficiency becomes not just a sustainability initiative, but a financial and operational necessity. Understanding the Challenges Operators of swimming pools in the public and private sectors are facing a perfect storm: Rising utility costs : Volatile energy markets and increasing wholesale prices mean that the cost of running a pool is often the single largest line item in an operator's budget. Ageing infrastructure : Many leisure centres were built decades ago, with plant and building fabric now well beyond their optimal design life. Staffing pressures : Increased employer National Insurance contributions, inflationary wage growth, and recruitment challenges in technical and operations roles strain budgets further. Local authority cuts : For council-run sites or those operated under local authority contracts, budget reductions mean less funding for capital improvements, making it harder to invest in long-term savings. In this environment, energy efficiency isn't just about sustainability; it is core to financial survival. Ten Focus Areas for Energy Efficiency in Swimming Pool Operations edenseven have worked with a wide range of leisure operators across the UK, from large national chains, local authority and privately run leisure centres and single-site independents. While every facility is unique, there are ten consistent focus areas that can help reduce costs and improve user experience. 1. Pool Hall Air Handling Systems Air handling units (AHUs) that serve the pool hall are often some of the most energy-intensive pieces of equipment in a leisure centre. Retrofitting systems with high-efficiency heat recovery, variable speed fans, and improved controls can yield significant savings. Maintaining optimal humidity and air temperature also reduces condensation and improves comfort and reduces building degradation. 2. Pool Water Heating and Temperature Management Upgrading boiler systems or integrating renewable sources such as heat pumps can drastically reduce energy usage. Modern controls, temperature stratification management, and insulation of pipework all contribute to system efficiency. Managing water temperatures to an optimal level reduces the need for backwashing. Higher pool water temperatures lead to increased microbiological growth and a higher need for backwashing and chemical dosing. 3. Lighting Efficiency LED lighting retrofits, particularly in pool halls and plant rooms, provide rapid returns on investment. Coupled with intelligent lighting controls (e.g., occupancy sensors in changing villages and toilets, and daylight dimming), this can lower costs while enhancing visibility and safety. 4. Building Fabric and Insulation Improved insulation of walls, roofs, and glazing can reduce heat loss, especially in pool halls where thermal demand is constant. Draught-proofing and maintenance of seals around windows and doors are low-cost measures that can have a noticeable impact. 5. Water Treatment System and Backwash Optimisation Advancements in filtration and chemical water treatment technologies, such as glass-media filtration and UV treatment, can reduce the need for chemical dosing and water changes. Smart controls help optimise chemical usage, water balance, and backwash schedules, lowering energy and water consumption. 6. Pool Covers and Evaporation Management Heat loss due to evaporation is one of the largest energy drains in any pool. High-quality, well-fitted pool covers can reduce overnight losses dramatically. Automatic covers also improve usability and safety. Consideration should be given to using surplus heat from other parts of the operation or other local businesses if possible - data centres or industrial processes could prove to be ideal partners. 7. Smart Controls and Building Management Systems (BMS) Many leisure centres are under-utilising their existing BMS or lack one altogether. Integrating systems and enabling real-time monitoring and automated control can unlock both energy and operational efficiencies. 8. Renewable and Low Carbon Technologies On-site solar PV, air or ground source heat pumps, and battery storage can help offset rising energy prices. While capital intensive, these measures may qualify for grant support or financing options that align with local authority decarbonisation plans. 9. Staff Training and Customer Engagement Empowering staff with energy awareness training and involving them in optimisation routines often leads to behavioural changes that enhance the impact of technical interventions. From plant operators to lifeguards, everyone has a role to play. Engaging with customers to shower before using the pool reduces biological loading and the need for chemicals and backwashing, saving water, energy and chemicals. 10. Data Monitoring and Continuous Improvement You can't manage what you don't measure. Installing sub-metering, using analytics platforms like cero.earth, and setting performance benchmarks allows leisure centre operators to track progress and target interventions more precisely. This data-led approach drives accountability and long-term success. Planning the Journey: From Audit to Action There is no one-size fits all solution, but there is a process. Most successful transformations start with a detailed energy and plant condition audit, tailored to the unique operational profile of the site. From here, a prioritised action plan can be developed, balancing short-term wins with longer-term investments. Understanding funding routes for public sector managed facilities is also critical. Many operators overlook opportunities for central government or local authority-backed capital funding. Our team has supported clients in identifying and securing funding through schemes such as the Public Sector Decarbonisation Scheme and local net-zero initiatives. Crucially, implementation must be done in a way that minimises disruption to operations and maintains health and safety standards. That means working closely with operational staff, technical teams, and supply chains. A Sustainable Future for Swimming At edenseven we believe that every leisure centre and swimming pool in the UK can be part of a more sustainable future, one where communities continue to benefit from the physical and mental wellbeing that swimming pools and leisure centre facilities offer, without shouldering unsustainable costs. Our role as a sustainability consultancy is not to offer off-the-shelf solutions, but to partner with clients to understand their context, build the right roadmap, and support delivery at every stage. From strategic advice and audits, through to technical specification and project management, our credibility is built on a track record of helping leisure operators navigate these exact challenges. If you are responsible for a facility that includes a swimming pool, now is the time to act, come and talk to us . Rising costs are unlikely to reverse themselves, but with the right expertise and a structured approach, they can be managed and even turned into opportunities to improve performance and bather comfort, engage with you customers and improve your leisure centre’s environmental impact.
Managing Partner, Pete Nisbet, explains more: Over 80% of consumers say they're willing to pay more for sustainable products. But here’s the catch: trust is fragile . Too many claims are vague, inconsistent, or unverifiable. And consumers are noticing. Greenwashing isn’t just a PR problem, it’s a business risk. Transparency and accountability are no longer optional. Credible data, third-party verification, and measurable outcomes are essential. They don’t just protect you, they future-proof your business. Because once trust is broken, it’s hard to rebuild. Over half of consumers say they’d stop buying from brands they believe mislead on sustainability. That’s not just reputational damage, it’s lost customers, investment, and talent. Why does this matter? For People: When companies walk the talk, people benefit through better working conditions, local job creation, and access to more ethical, healthier products. Trust builds loyalty. Transparent, credible action forges stronger relationships between businesses and the people they serve. For Profit: Sustainability isn’t a cost, it’s a growth strategy. Sustainable products grew 2.7x faster than conventional ones between 2015 & 2019. Over $30 trillion is now invested in ESG assets, and is expected to reach $40 trillion by 2030. For the Planet: The climate crisis is happening now. We need bold, credible action, not just pledges. Science-based targets, circular design, and effective net-zero strategies are essential. Turning Ambition into Action: At edenseven, we design, build, and implement sustainability strategies that deliver. We consistently see these benefits for the clients we work with: reducing costs, proving impact to customers and investors, and cutting regulatory risk. Most importantly, we help minimise your impact on the planet. If you want to see how much of an impact we can make for your business, send us a message! We’ll help you turn genuine sustainability efforts into clear, credible results that future-proof your business and resonate with your customers & key stakeholders.
Fuel Type Breakdown Britain’s electricity generation in April 2025 saw a notable shift, with gas reclaiming its position as the leading source of electricity generation. Contributing 26% of the energy mix, gas usage rose by nearly 10 percentage points compared to April 2024. Despite this, gas consumption remained below levels seen in April 2021, 2022, and 2023. The rise in gas was largely a response to a substantial drop in wind energy generation, which fell by more than 10 percentage points year-on-year to 22%. This was wind’s second-lowest April contribution in the last five years. The shortfall in wind output played a critical role in driving up reliance on fossil fuels, undermining progress toward a cleaner energy mix. Likely as a result of favourable weather conditions, solar generation rose sharply, from 6% in April 2024 to 11% in April 2025. This marks its highest April contribution in five years and highlights solar’s growing potential in Britain’s energy transition. Conversely, nuclear power continued to decline, contributing just 14% to the electricity mix, down from 16% the previous year and its lowest April share in half a decade. The consistent drop in nuclear output, coupled with weak wind performance, placed additional pressure on other sources to fill the gap. Biomass remained stable at 7%, matching its highest April contribution in the last five years, while hydropower fell slightly to 1%. Together, these sources provided limited compensation for the downturn in wind and nuclear output. Coal contributed 0%, following its complete phase-out in September 2024. For context, coal had still accounted for 1% of electricity generation in April 2024. Electricity imports increased by 3 percentage points to 18%, the highest April share in five years, suggesting growing reliance on cross-border supply to maintain grid stability. Similarly, storage technologies contributed 2% to the mix, their highest April level to date, signaling incremental progress in energy flexibility and resilience. Zero-Carbon Sources & Carbon Intensity Zero-carbon sources, comprising wind, solar, nuclear, hydro accounted for 46% of electricity generation in April 2025. This represented a 13% decline from April 2024, and was accompanied by a sharp rise in carbon intensity to 133 gCO₂/kWh, a 45% year-on-year increase. Over a longer timeframe, the 12-month rolling average for zero-carbon generation stood at 49%, down 2% from the previous year. Meanwhile, the 12-month rolling average carbon intensity stood at 131 gCO₂/kWh, only 8% lower than the year before and a sharp contrast to the 22% year-on-year reduction recorded ju st six months earlier in October 2024. This underscores a concerning stagnation in Britain’s clean energy momentum. Concluding Remarks April's mixed performance highlights a concerning slowdown in Britain's progress towards a decarbonised energy grid. The decline in the share of renewables over the last 12-months, coupled with only an 8% year-on-year reduction in carbon intensity, highlights a loss of momentum in decarbonising the grid. While the increased supply from solar and storage is a positive development, the decline in wind, nuclear and hyrdo is concerning. Although wind's decline may reflect temporary weather conditions, the broader trend signals an urgent need to ramp up investment into renewables. To restore progress toward a resilient, net zero power system and reduce dependence on imports, Britain must accelerate the deployment of renewables and strengthen its commitment to long-term energy security. Britain's Electricity Summary Charts
Fuel Type Breakdown In March 2025, gas was the leading source of Britain's electricity generation, contributing 31% of the energy mix, a 7% increase from March 2024. However, this was the second-lowest gas share for March in the last five years. Wind energy accounted for 26%, down 7% from March 2024. Solar contributed 7%, up 3% year-on-year, it's highest contribution for March in the previous five years. Hydro and storage maintained consistent contributions of 3% and 1%, respectively, matching their performance for every March in the last five years. Biomass contributed 5%, the same as March 2024; however, 3% below it's share in March 2021. Coal contributed 0%, following its phase-out in September 2024. For comparison, coal made up 1% of the mix in March 2024. Zero-Carbon Sources & Carbon Intensity Zero-carbon sources delivered 45% of Britain's electricity in March 2025 - 6% lower than March 2024 and the second-lowest March share in the past five years. This decline led to a higher carbon intensity, with emissions at 146 gCO₂/kWh, up 15% from March 2024. The rolling 12-month average for zero-carbon electricity remained at 50%, unchanged from the previous period, indicating stagnation in renewable integration. However, carbon intensity over this 12-month period continues to be the lowest of the past five years, at 127 gCO₂/kWh, and 14% lower than the previous 12-month period. Increasing renewable electricity generation remains crucial to achieving net-zero goals, enhancing energy security, and reducing reliance on imports. Britain's Electricity Summary Charts
edenseven are following trends in the renewable energy sector closely, as decarbonising the energy sector is vital for ensuring a sustainable future and achieving Net Zero. Considering the recent DESNZ quarterly update of the renewable energy planning database, we have produced a consolidated summary of projects in the United Kingdom that have received planning permission. We will continue to release updates each quarter. INSIGHT In 2024, the UK approved 592 solar PV projects , the third-highest of any year in the last 15 years. However, the energy capacity expected to be delivered by these projects is 24% lower than in 2023. 2024 ranked 11th out of the last 15 years for the total number of onshore wind projects granted planning permission. These projects will deliver the lowest energy capacity for onshore wind approved for any year in the last 15 years, and is down 59% year-on-year. Energy capacity from offshore wind projects granted planning permission in 2024 saw a 62% drop compared to 2023, despite the same number of projects being approved as the prior year. Overall, the total approved renewable energy capacity from wind and solar projects dropped by 43% compared to 2023 , with offshore wind seeing the steepest decline. However, the average capacity per solar PV project increased by 50% , while onshore and offshore wind saw reductions of 63% and 62% , respectively. These findings suggest that we are not implementing wind and solar renewable energy projects quickly enough in the UK to achieve a decarbonised energy network by 2030.
In February 2025, gas accounted for 33% of Britain’s electricity mix, making it the largest contributor, slightly ahead of wind energy, which supplied 32%. This marks a 6% increase in gas-generated electricity and a 3% decline in wind energy compared to February 2024. The highest-ever wind energy contribution for February was recorded in 2022, when it made up 40% of Britain's electricity mix. Solar, biomass, and storage delivered the same contributions as in February 2024, contributing 2%, 7% and 1% respectively. Nuclear energy saw a 1% increase, supplying 12% of Britain's electricity in February 2025 - its highest share for February in the past three years. However, this remains 2% below the levels recorded in February 2021 and 2022. Hydro contributed 2% of Britain’s electricity generation, a 1% decrease from its 3% share in February 2024. Coal, which was phased out of UK electricity generation in September 2024, contributed 0% in February 2025. For comparison, coal accounted for 1% of electricity generation in February 2024. Zero-carbon sources delivered 48% of Britain’s electricity in February 2025, 3% lower than in February 2024 and the third highest for February in the last five years. However, the rolling 12-month average for zero-carbon electricity remains at 50%, the highest of the past five years. The carbon intensity of electricity generation in February 2025 was 147 gCO₂/kWh, 11% higher than in February 2024 and the third highest of the last five years. Despite this, the rolling 12-month average carbon intensity stands at 126 gCO₂/kWh, the lowest in five years and 17% lower than the previous 12-month period. Increasing renewable electricity generation remains crucial to achieving net-zero goals, enhancing energy security, and reducing reliance on imports.
On March 5th, 2025, Sustainability and FM Leaders captured the attention of Business Directors. By signing their Energy Savings Opportunity Scheme (ESOS) Action Plans, they collectively endorsed a strong business case with tangible opportunities to reduce energy consumption and costs, all in preparation for the reporting period ending on December 5th, 2027. Few businesses would dispute the benefits of focusing on energy efficiency. It not only reduces operational costs and enhances profitability but also contributes to decarbonisation efforts - an increasingly important factor for sustainability-conscious employees, customers, and shareholders. Time to Unlock Savings From Your List of ESOS Measures As part of Phase 3, approximately 11,900 UK businesses submitted their ESOS reports in August 2024. These were followed by the required Action Plans on March 5th, 2025. Moving forward, businesses must submit annual progress reports in the final Phase 4 assessment on the December 5th, 2027. The latest government guidance indicates that, instead of using the ESOS portal, companies subject to SECR may "report progress annually via the energy efficiency narrative section in SECR reports." (This flexibility depends on parliamentary time and scrutiny). Regardless of the method, demonstrating effective management of the Action Plan’s implementation is both a regulatory requirement and a best practice." A Business Case Approach to Prioritise Interventions edenseven's extensive experience in supporting customers with ESOS compliance has been overwhelmingly positive. Businesses were given the opportunity to tailor their energy-saving actions to align with their unique needs and strategies. Notably, ESOS guidance doesn't mandate a minimum number of Measures in the Action Plan. However, there is a hint of a reputational impact from September 2025, when the Environment Agency will publish action plans, including of companies that have not committed to any Measure. A well-structured action plan can significantly enhance a company's credibility. Businesses have the flexibility to choose energy-saving initiatives that align with their specific needs, considering factors such as budget, lifecycle assessments, estate strategy, and fleet procurement cycles. By thoughtfully balancing these considerations with broader sustainability goals, companies can achieve meaningful progress while maintaining financial and operational stability. Expertise and Tools to Make it Happen in Phase 4 With Phase 4 of ESOS now fully underway, meticulous planning and well-supported investment decisions are essential. Companies must build robust business cases that integrate technical, regulatory, and financial considerations. In response to this need, edenseven has advanced its cero.earth carbon accounting & management platform by introducing a dynamic Project Forecasting and Management module. Project Forecasting and Management Module cero.earth ’s project tools serve as a comprehensive database of all potential projects, enabling real-time impact analysis, including: Cost and savings projections CO2 emissions reductions Energy Use Intensity improvements These tools enable businesses to forecast the financial costs and benefits of their approved measures within an agreed timeframe. For example, a CFO can review scenario options that highlight the financial and environmental advantages of initiatives such as HVAC retrofitting, solar PV installation, or even building decommissioning. Monitoring Energy Performance for ESOS Requirement Together with SECR Reporting cero.earth is already configured to automatically generate Streamlined Energy and Carbon Reporting (SECR) reports. While the Environment Agency has outlined the content expectations for the December 2025 progress update, formatting requirements remain unspecified. edenseven remains agile in supporting customers with both insights and tools to streamline their reporting. Prepare for the Future with edenseven The transition to a more sustainable business model requires proactive planning and strategic execution. Get in touch today to learn how edenseven can support your journey towards compliance and sustainability excellence.
We’re delighted to continue collaborating with Paythru, supporting their commitment to sustainability through comprehensive ESG solutions. Our partnership includes edenseven's in-depth measurement and analysis of their Scope 1, 2, and 3 emissions, alongside strategic guidance to help them achieve their wider sustainability goals. Paythru, a UK-based technology company, specialises in cloud-based payment solutions for electric vehicle (EV) charging and parking. Their innovative platform simplifies the EV payment experience by decoupling the charging process from physical hardware, staying true to their philosophy: "Experience first. Technology second." As part of this ongoing partnership, Paythru is utilising cero.earth , carbon accounting and management platform, to accurately measure, track, and reduce their carbon footprint. ESG reporting goes beyond compliance - it drives real impact. By precisely measuring their environmental footprint, companies can set meaningful targets, monitor progress, and lead tangible change. We, at edenseven, are proud to support Paythru in demonstrating their ongoing commitment to sustainability and shaping a greener future for EV infrastructure.
What Do Your Scope 3 Emissions Have to Do with Inflation? Scope 3 emissions cover everything outside your direct operations - the carbon footprint of your supply chain, purchased goods, logistics, business travel, and more. The higher your Scope 3 emissions, the more energy-intensive your supply chain is. And the more energy-intensive your supply chain, the more vulnerable you are to rising costs. Think of it this way: High Production Costs- If your suppliers are heavily dependent on fossil fuels, their production costs are rising fast. Price Volatility- If your supply chain lacks efficiency and resilience, price volatility will hit you harder. Locking in High Costs- If you’re not actively engaging with suppliers to reduce emissions, you’re locking in long-term cost increases that could have been avoided. Without accurate Scope 3 data and a clear engagement strategy , businesses are leaving themselves open to higher prices, lower margins, and greater financial risk . Why Businesses Struggle to Tackle This A major challenge is that Procurement and Sustainability teams often operate in silos: Procurement teams focus on cost and supplier relationships but often lack deep sustainability expertise. Sustainability teams focus on compliance and decarbonisation but aren’t typically measured on financial performance. This disconnect means emissions reduction is rarely treated as a financial opportunity —when in reality, cutting carbon from your supply chain is also one of the most effective ways to reduce exposure to cost inflation. The Businesses That Get This Right Will Win Leading organisations are already taking action. They are: Gathering detailed Scope 3 emissions data to map out cost risks in their supply chain. Engaging suppliers to drive efficiency, reduce emissions, and lower costs. Building resilience by shifting towards lower-carbon, more cost-stable alternatives. The result? Lower long-term costs, reduced financial risk, and a competitive edge over those stuck with inefficient supply chains. This is not just about sustainability compliance —it’s about smart financial decision-making. If You’re Not Taking Action, You’re Losing Money Every business will feel the impact of rising supply chain costs—but not every business will be prepared for them. If you don’t have accurate Scope 3 emissions data and an effective engagement strategy, you are: Paying more than you need to for essential goods and services. Exposing your business to long-term cost inflation. Missing out on opportunities to build a stronger, more resilient supply chain. The sooner you act, the better—for your bottom line and for the planet. Is your business ready to take control of its costs? Get in touch today.
In 2023, the UK Government announced plans to introduce a carbon border tax from 2027, known as the UK Carbon Border Adjustment Mechanism (UK CBAM). This policy aims to prevent carbon leakage (the practice of shifting emissions-intensive production to countries with weaker climate policies) by ensuring that imported goods are subject to a comparable carbon price as those produced domestically under the UK Emissions Trading Scheme (UK ETS). Ultimately, the goal is to drive global reductions in industrial emissions and support the transition to a low-carbon economy. What is the UK CBAM? The UK CBAM will apply to imported goods in emissions-intensive industries. Starting in 2027, businesses importing iron, steel, aluminium, ceramics, cement, fertilisers, glass and hydrogen into the UK will be required to: Mandatory Disclosures: Submit reports detailing the carbon emissions embedded in their products (embodied carbon). The UK CBAM will require reporting to detail the Scope 1 (direct emissions from production), Scope 2 (indirect emissions from purchased electricity), and select precursor product emissions embodied in imported products. Levy Payments: Pay a levy based on the carbon pricing of the exporting country. If the exporting country has little to no carbon pricing, UK importers will be subject to a higher tax rate. This initiative encourages businesses to source materials from suppliers with strong carbon policies, incentivising sustainable production methods. How Will it Work? The UK CBAM will require importers to report and pay for the emissions embedded in their products at the UK ETS carbon price. If a foreign producer has already paid a carbon price in the country of manufacture, this may be deducted from the payment charge under UK CBAM to avoid double taxation. The UK Government has proposed to have four accounting periods per year to align with the standard practices used by other taxes. How Does the UK CBAM Differ from the EU CBAM? While both mechanisms share the same overarching objectives, there are key differences: Scope of Products : The EU CBAM applies to cement, iron, steel, aluminium, fertilisers, electricity and hydrogen, whereas the UK CBAM excludes electricity imports but also applies to additional products, such as ceramics and glass Implementation Timeline : The EU CBAM has already begun its transitional phase (October 1, 2023), requiring emissions reporting, with full financial enforcement starting in 2026. The UK CBAM, however, will take effect in 2027. What Can Businesses Do to Prepare? To limit exposure and ensure compliance with UK CBAM, businesses should take the following steps: Assess Supply Chains: Assess your exposure to UK CBAM by reviewing your suppliers to understand where imported products and materials are being manufactured and their carbon intensity. Identify other suppliers with lower-carbon intensities. Engage Key Suppliers: Work with your suppliers to encourage the adoption of low-carbon technologies and practices that will reduce the carbon intensity of manufactured materials. Consider switching suppliers and sourcing materials from UK-based companies that already comply with UK ETS, to reduce exposure. Comprehensive Emissions Reporting: Ensure you have sufficient emissions accounting and reporting practices in place, to minimise disruption caused by mandatory reporting. We recommend businesses understand their Scope 1, 2 & 3 emissions to identify high-impact activities and inefficiencies within their operations and their supply-chain. How We Can Help edenseven is a sustainability consultancy with a proven track record in designing and delivering data-driven sustainability strategies. Our cloud-based carbon accounting and management platform, cero.earth , simplifies compliance and reporting for businesses of all sizes. Why Choose cero.earth? Regulatory Compliance: Aligns with the Greenhouse Gas Protocol (Scope 1, 2 & 3) to ensure accurate and compliant carbon reporting. Expert Support: Backed by a team of analysts who guide you through the process, making compliance straightforward. Seamless Data Integration: Easily upload and export data in required formats with our integrated report building tools, for effortless reporting and disclosure. Enhanced Credibility: Track and disclose detailed emissions data to investors and stakeholders with confidence, ensuring enhanced credibility. Reduce Costs: cero.earth identifies high emissions sources and inefficiencies within your operations and supply chain, enabling you to make informed decisions about where to implement impactful change, saving you cost with CBAM and ongoing operations. Net Zero Project Tracking: Design, implement and track your carbon-reduction projects and leverage our Net Zero Carbon (NZC) dashboard to visualize your pathway to Net Zero and set strategic carbon reduction targets. Flexible Packages: cero.earth offers tailored packages to suit all businesses. For businesses seeking a hands-off experience, our Strategic package allows us to handle the entire carbon accounting and compliance process on your behalf, ensuring a seamless and fully managed approach, allowing you to focus on what you do best. Prepare Your Business for the Future With the UK CBAM on the horizon, businesses must take proactive steps to manage their carbon impact and ensure compliance. cero.earth by edenseven, provides the tools and expertise needed to navigate these changes with ease. Start your journey towards sustainable and compliant operations today. Get in touch today to learn more about how we can support your transition and comply with the latest sustainability regulations.
