1. Business responses to the CRC CR Reporting & Communications Summit 25 November 2009 Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 Pam Muckosy, Ethical CorporationCo-presenter on the CRC:Jane Dennet-Thorpe, DECC

2. Why regulate? Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 1/3 of UKs total emissions Emissions from non-energy intensive companies expected to increase 11% between 2010-2030 Encourage attention on an item representing as little as 1% of operating cost 1/3 in the UK do nothing & 1/5 say climate change is not on the agenda 3. How simple to implement Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 An incentive-based design A light touch, light penalties Facilitates gradual progress Easy reporting if you have measured Self disclosure 4. yet some challenges Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009

Not a panacea for climate change - does not cover non-CO2 gases, transportation, water, biodiversity, and other topics

Renewables fall under separate regulation

Challenges for transport

Ambitious enough? random audits and need for verification

Exceptions & boundaries

5. Case study: the tenant Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009

Long-term investment without long-term rewards

Different results & strategies

Lack of transparency

Shared facilities

6. Case study: the landlord Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009

Lack of control over use and management

Impact on business model and fees or service charge

Metering and monitoring

Initial cost burden when purchasing allowances

7. Case study: data collection Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009

M & A

Need for a mandate on suppliers

Estimated billing is not enough

8. Case study: abatement strategy Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009

Stalled progress due to planning permissions

A significant investment for grocery stores

Potential to game the system & manipulate league table rankings

9. Case study: renewables Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009

ROCs

Requested:

• Focus on consumption, not footprint

• Renewables as 0 carbon

• Maintain renewable subsidies

• Transparency to end consumer

10. Costs Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 11. What to watch for Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 Rise in current carbon cost from 30/tonne Companies doing more in-depth measurement April deadline; September deadline and fines Companies aiming to reach the top of the league table in year one 12. WWW.ETHICALCORP.COM/CRC Thank you If you would like internal training, or to be added to our research mailing list, please email me at Pam.Muckosy@ethicalcorp.comor visit www.ethicalcorp.com/training