Meeting the CRC Objectives: Compliance, Competitive Advantage and Employee Engagement

Only 30% of the companies subject to the United Kingdom’s Carbon Reduction Commitment Energy Efficiency Scheme (CRC) are prepared to meet their April 1, 2010 compliance deadline, according to a recent survey conducted by the global financial consultancy KPMG. Many of them have misstated the amount of carbon they produce while others have failed to recognise that they are regulated under the legislation. Regardless of the reason for noncompliance, they face fines and penalties for noncompliance. Equally important, they may be at a competitive disadvantage in a marketplace increasingly attuned to sustainability and corporate responsibility.

The CRC is a mandatory cap and trade program designed to reduce carbon emissions generated by organisations with operations in the UK. Those organizations, which had not been regulated until now, represent a broad cross section of sectors, from banking and retail to government agencies. Companies regulated under the three-phase law must register with CRC between April and September of 2010, identifying their electricity use in 2008. Additional requirements are imposed annually until 2013.

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