1. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC Andrew Jones C.Eng. B.Eng. FIE MCIBSE Managing Director Sterling Carbon Management Coming ready or not! - The Carbon Reduction Commitment PART OF THE STERLING POWER GROUP

2. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC My talk will cover: - a little about my involvement with CRC (since 2006) - is it good for business & the bottom line - the experiences & readiness of companies - managing challenges & risks - The Carbon Reduction Commitment

3. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC- and me June 1996 – March 2008: Head of Energy & Built Environment for FTSE100 Retailer June 2006: seconded to DEFRA as business advisor Working within the ‘EPC’ team for Philip Douglas Early 2006: formed REF - The Retail Energy Forum April 2008: formed SCM … which now runs REF … and does CRC + work for some of them

4. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC- and business 2006 Mission Statement: - “to share best practice to reduce our carbon footprints” … the Retail Energy Forum - focus is on Climate Change, on risks … not just on costs!

5. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC- Climate Change … the risks

6. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC Announcements 15 July by BIS, DECC, DfT Low carbon Transition Plan –how the Government will meet the first five-yearly Carbon Budgets under the Climate Change Act Low carbon Industrial Strategy –Government plans to support the UK’s low carbon technologies and services sector Low carbon Transport Strategy –range of possible approaches for low carbon transport, including technology, alternative fuels, trading and behavioural changes Renewable Energy Strategy –how to meet the targets under the Renewable Energy Directive 15% increase - Climate Change … the policies Manage the bottom-line risk!

7. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC- in perspective Concentrate on the 8 pences not the half-pences. Save the lot not just the tax.

8. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC- in perspective … and in focus CRC

9. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC we need to mitigate & adapt to climate change we need to make our contribution to GHG reduction we need to manage the financial impact - and business business would like to have some control … not just be ‘hit’ by taxes the CBI favours cap & trade methods to e.g doubling CCL CRC provides - opportunity to trade - incentives for action - gets the attention of the Board … BUT

10. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC agreedisagreeunsure I have all the information I need to be able to participate fully when the scheme is launched next April 41 3920 I can comply with the Government’s requirements with existing staff I anticipate using external advice and support I think the scheme has a valuable contribution to make to a cleaner environment 40 2733 40 30 30 53 1730 I believe the way the scheme has been costed seems fair 1337 50 I would like to meet with a group of other large energy customers to compare notes 50 20 30 - are we ready?

11. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC Very complex and elaborate scheme. Scheme seems unfair to those companies who have already made investment to improve their efficiency & reduce carbon. Internal staff can deal with the CRC but we will make selective use of external staff for specific energy efficiency projects. We have concerns around the split of absolute/relative emission reductions in the reward mechanism, excessive penalties and the treatment of on-site renewable generation. Not enough focus on the financial management of the scheme – i.e. getting financial executives involved. I think it is important that the Government makes the right moves itself. We will not be full participants but I believe that one day the bar will be lowered so that we will have to join. - are we ready? “ “

12. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC Check Qualification Get ready to Register Develop Carbon Reduction Plans Pay Fees Register … Keep above the mid-point ‘for ever’?! Implement Carbon Reduction Plans Buy Allowances Report, report, report Keep going ‘for ever’ - are we ready? Get ready to Register Check Qualification APRIL 2010

13. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC- registration: be ready! What has to be done? 1.check if it means YOU. 2.if not full reporting.. then information disclosure? 3.get joined-up understanding in your company. 4.get your organisation mapped & contacts identified. 5.get your data marshalled and shipshape. 6.work out if applicable 90% is met from core sources.. prepare residual list? 7.decide if you want to report on 90% or 100%. 8.manage the impact by implementing CO 2 reduction actions.

14. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC “tacking climate change could create opportunities for a company to increase its value by up to 80% if it is well positioned and proactive. Conversely it could threaten up to 65% of value if the company is poorly positioned or a laggard” Carbon Trust and McKinsey 2008 Climate Change - a final thought

15. Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007Member of: CRC Andrew Jones C.Eng. B.Eng. FIE MCIBSE http://www.sterling-power.co.uk/ 0121 585 4080 - The Carbon Reduction Commitment PART OF THE STERLING POWER GROUP