UK Retail Organisations Slow to Recognise Business Benefits Associated With CRC Compliance
Retailers are lagging behind other major industries in realising the positive impact compliance can have on improved image and sales success
Sep 10, 2010 10:00 AM ET
( 3BLMedia/theCSRfeed) Ditton Park - September 10, 2010 – CA Technologies (NASDAQ:CA), a provider of sustainability, carbon and energy management solutions, today announced the results of an independent carbon management study commissioned by the company entitled “CRC Inspires Carbon Management Leadership”. It reveals that UK retail organisations are slow to recognise that adherence to the UK Government’s Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (EES) can drive incremental sales by improving brand image. Only 40% of retail companies believe enhanced brand image will drive sales, compared with 77% of telecommunications and technology firms, 75% of fast-moving consumer goods (FMCG), and 52% in financial services.
The report by independent analyst research firm Verdantix also reveals that 56% of UK retailers agree that firms achieving leadership in the CRC will deliver significant energy efficiency cost savings. This perception lags behind FMCG/pharmaceutical organisations (in this sector, 85% agree it will deliver cost savings) and financial services firms (69%), but is marginally ahead of telecommunications and technology companies (52%). However, 76% of UK retail organisations are of the belief that companies achieving a leadership position in the CRC league table in October 2011 will avoid CRC penalties and fines from non-compliance. This compares with 80% in telecommunications and technology, 75% in FMCG, and 73% in financial services.
“Retail organisations in the UK appear to be sceptical over the improved profile that leaders may receive in the CRC.” says Sonny Masero, VP of CA ecoSoftware for CA Technologies. “As other industries already recognise, carbon management leadership can help increase sales via enhanced brand image, while simultaneously delivering significant energy efficiency and cost savings. Although the CRC EES does require up-front investment in carbon allowances, this liability can be reduced through the effective management of emissions reduction projects. Organisations may also avoid fines from non-compliance by improving data quality.”
Carbon management has implications for an organisation’s brand value, competitive positioning, share value, and energy costs―and the CRC Energy Efficiency Scheme is central to the UK government’s strategy for improving energy efficiency and reducing carbon emissions. Launched on April 01 2010, the scheme is designed to raise awareness in large organisations, especially at a senior level, and encourage changes in energy and carbon management behaviour. The scheme features an annual performance league table that ranks participants on energy efficiency and carbon management performance.
Turning to what UK retail respondents consider the requirements for CRC leadership to be, 30% consider carbon management software is essential for CRC leadership (compared to a cross-industry average of 50%)―and 20% already rely on the technology. The majority (83%) still use spreadsheets to manage energy and carbon data, despite concerns about their ability to scale to meet requirements for compliance.
CA Technologies innovative CA ecoSoftware is an energy, carbon and sustainability management solution designed to help organisations reduce carbon emissions, manage natural resource consumption, and cut energy costs. Organisations can leverage CA Technologies solutions to measure, assess and report their environmental impact and performance, align sustainability initiatives with business goals, and to automate the overall sustainability process across geographic and functional boundaries―helping to accelerate their energy and sustainability efforts.
The independent research survey “CRC Inspires Carbon Management Leadership” was conducted by Verdantix, an independent analyst research firm, on behalf of CA Technologies during January and February 2010. Verdantix interviewed 202 carbon management experts in some of the UK’s largest organisations, 55% of which have revenues above $1 billion.
To download a copy of the CA Technologies report, please use this link: www.ca.com/Files/WhitePapers/verdantix_crc_inspires_carbon_239429.pdf
About the UK Government’s CRC Energy Efficiency Scheme
The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) is the UK's mandatory climate change and energy saving scheme which started on 1 April 2010. It is central to the UK’s strategy for improving energy efficiency and reducing carbon dioxide (CO2) emissions, as set out in the Climate Change Act 2008. It has been designed to raise awareness in large organisations, especially at senior level, and encourage changes in behaviour and infrastructure. The scheme's amended title serves to better reflect the CRC’s focus on increasing energy efficiency (source: Department of Energy and Climate Change).
To learn more about CA Technologies energy, carbon and sustainability solutions, visit:
- On the Web: http://www.ca.com/ecoSoftware
- Product demo: http://www.ca.com/us/products/collateral.aspx?cid=238596
- Sustainability Perspectives Blog: http://community.ca.com/blogs/greenit
- On Twitter: http://www.twitter.com/CAecoSoftware
