Environmental Law update Summer John Mitchell, partner, Regulatory Risk & Compliance

Transcription

1 14/06/2016 1

2 Environmental Law update Summer 2016 John Mitchell, partner, Regulatory Risk & Compliance

3 EU referendum implications for environment 2013 Balance of Competencies review by UK government ESRC research ENDS survey of environmental professionals Candidates for repeal: Bathing Water Directive Habitats Directive Common Fisheries Policy 14/06/2016 3

4 Energy efficiency taxes Government has published response to its consultation which ended in Nov 2015 CRC is to be abolished from April 2019 Final reporting is to be due by July 2019 Rates of Climate Change Levy will rise from April 2019 CCL rates for different fuels will be rebalanced CCL discounts for Climate Change Agreement industries will be increased to ensure no adverse effect Consultation this year on the reporting framework 14/06/2016 4

5 Hazardous waste registration Until 1 April 2016, producers of >>500 kg annually of hazardous waste had to: Register their premises with the EA Unless exempt That obligation (Pt.5 of the 2005 Regulations) was abolished w.e.f. 1 April: registration is no longer required The requirements for hazardous waste consignment notes have changed 14/06/2016 5

6 Ecodesign March 2016 Marketwatch publishes a report highlighting wide-ranging breaches of the Ecodesign Directives April 2016 EU announces amendments to the Ecodesign Implementing Regulations to close the abuse of the permitted tolerances scheme Should be in force by October 2016 Light bulbs excluded indefinitely pending the review of the EU s lighting regulations 14/06/2016 6

7 Criminal penalties Water utilities Company Turnover Offence Fine Special factors Thames 1,900m Reckless, Cat 2 220k SSSI affected Thames 1,900m Negligent, Cat 3 250k 106 previous convictions Thames 2,028m Court thought it irrelevant 380k 106 previous convictions Thames 2,028m Court thought it irrelevant 1.0m 106 previous convictions South West 523m Negligent, Cat 2 300k 2 incidents, 4 offences Yorkshire 1,014m Negligent, Cat 2 600k Lake will take years to recover Yorkshire 1,014m Reckless, Cat 2 1.1m 3 offences 14/06/2016 7

8 Criminal penalties water pollution Company Turnover Fine Special factors Molson Coors 1,372m 100k 2 offences Miller Homes 470m 100k 14/06/2016 8

9 Criminal penalties - waste Donald Ward 83m 270k Poor record, length of time, further offences committed while under investigation Powerday Ltd 47m 1.0m 6 separate offences 14/06/2016 9

10 Environmental Law update Summer 2016 John Mitchell, partner, Regulatory Risk & Compliance

11 Carbon Measurement & Management Workshop 10 June 2016 John Buckley Managing Director Carbon Footprint Ltd Carbon Footprint Ltd Carbon Footprint Ltd 2016

12 Why do you need to do it? Legally obliged e.g. Mandatory Greenhouse Gas reporeng Energy Savings Opportunity Scheme EU Emissions Trading Scheme Stakeholder demands e.g. Customer Tenders Green MarkeEng Strategy ISO Staff engagement Social responsibility Carbon Disclosure Project Cost Savings Drive energy reduceon Carbon Footprint Ltd Carbon Footprint Ltd 2016

13 Workshop 3 Business Scenarios Small-size company Mid size company MulEnaEonal company Calculate the Carbon Footprint Set Targets Iden=fy Opportuni=es to Reduce Emissions Calculate the Business Case Selling the investment opportunity to your FD Carbon Footprint Ltd Carbon Footprint Ltd 2016

14 Step 1 Calculate / Measure Scenario provides annual energy, fuel, travel Emissions Factors provides info on how to convert into tco 2 e e.g. for electricity Amount of Electricity Used X Emissions Factor = Amount of CO 2 e Tip: Keep an eye on the units Carbon Footprint Ltd Carbon Footprint Ltd 2016

15 Present the Results Scope Source tco 2 e 1 Gas Diesel in Company Cars TOTAL SCOPE 1 2 Electricity GeneraEon TOTAL SCOPE 2 3 Staff Cars (Grey Fleet / Mileage Claims) Flights TOTAL SCOPE TOTAL (ALL SCOPES) 13.1 TIP: Consider reporeng a Growth Metric too? e.g. tco 2 e per employee or tco 2 e per M turnover Carbon Footprint Ltd Carbon Footprint Ltd 2016

16 Step 2 - Set a Target ConvenEonally a percentage reduceon May wish to consider this against a growth metric (so you can sell show improvements even if your business is growing) Make it =me bound, but give yourself enough Eme to achieve it Do you want to be carbon neutral? May be include that as a goal too TIP: You may want to come back and check your target is achievable following Steps 3 & 4 Carbon Footprint Ltd Carbon Footprint Ltd 2016

17 Step 3 Iden=fy Opportuni=es Each scenario has some clues on how to achieve the emissions reduceons There is a sheet of ideas with some costs and poteneal savings which may help! Time to be creaeve J Carbon Footprint Ltd Carbon Footprint Ltd 2016

18 Step 4 The Financials If you to invest some money how will you sell it to you CEO? Opportunity Cost to implement ( ) Annual Savings ( ) Payback (Years) Change lights to LED 10,000 5,000 2 Years e.g. For lights you ll need: number of lights that can be changed the power of the old the power of the new cost to replace an esemate of how long they are on for Carbon Footprint Ltd Carbon Footprint Ltd 2016

19 Ready to start? Split into teams Take a Scenario envelope IdenEfy a leader (Project Manager) Suggest you: Allocate 1 or 2 people to do footprint calc. Get others thinking about ideas to reduce Make sure you get the numbers checked! Keep an eye on the Eme (you have 40 minutes) Each group will have the chance to present their results You will be given a 2 minute slot to present I want to know The footprint results Your suggested reduceon target(s) Your recommendaeons and costs (with the business case) Carbon Footprint Ltd Carbon Footprint Ltd 2016

20 Remember: This task is to 1. Calculate your carbon footprint 2. Set reduceon target(s) 3. IdenEfy OpportuniEes 4. Present the business case Help is on hand if you need it just ask... Myself Georgina Bex Wendy Carbon Footprint Ltd Carbon Footprint Ltd 2016

21 Scenario 1 - Secure UK Security Services Company Turnover 2.8M, Net Profit (before tax) 120k 30 employees (grown from15 last year, expects to be 50 next) One office in the South (expanding into the Midlands next year) Most income from just 5 clients 4 of which request info on Carbon and Environment, and 1 off these is Carbon Neutral 20 Company Cars average 24,250 miles per year Staff choose vehicles (must be < 200 per month lease) Average efficiency is 35 mpg / 175gCO 2 /km 50% of electricity is used on lights (currently all T8 tubes) Elect usage: 21,250kWh Gas usage: 16,000kWh Company Cars: 63,000 litres of fuel Carbon Footprint Ltd Carbon Footprint Ltd 2016

22 Scenario 2 - Sonaré High end audio equipment light manufacture Turnover 21.3M and Net Profit (before tax) - 23k Large warehouse 25% of the total electricity is used for ligheng in warehouse Occupied 8am to 8pm 7 days a week No PIR sensors or zoning of ligheng Lights are T8s Have some esemates for ligheng upgrades Uses 70% of total Gas Heated to 20 o C 4 Company Cars Average 5000 miles each Av efficiency is 35mpg (175gCO 2 /km) Electricity usage : 1,200,000 kwh Gas usage: 200,000 kwh Diesel usage: 5,000 litres Carbon Footprint Ltd Carbon Footprint Ltd 2016

23 Scenario 3 - Insurios FTSE 350 Insurance company Turnover 48.3M, Profit 2.6M 500 Employees in the UK 150 London, 100 Noqngham, 250 home base / on the road sales team Employees in New York (50/50 split office and remote working) Staff use own cars (claim 45p per mile) Annual electricity usage London: 500,000 kwh Noqngham: 250,000 kwh New York: 500,000 kwh Annual gas usage: London: 0 kwh Noqngham: 1,500,000 kwh New York: 500,00 kwh Miles travelled in staff-owned vehicles: 1.5 million miles / year Air miles: 700,000 miles (virtually all are business class) Carbon Footprint Ltd Carbon Footprint Ltd 2016

24 Thank you Contact: John Buckley Carbon Footprint Ltd Carbon Footprint Ltd 2016

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