Anthesis Acquires UK-based Energy Specialists Padd Energy

July 19, 2022 | News,
padd energy part of anthesis

Anthesis, the world’s largest dedicated group of dedicated sustainability experts, has acquired UK-based energy specialists, Padd Energy.

This deal marks the third M&A announcement for Anthesis in six months following the acquisition of Canadian agri-food sustainability consultancy Provision Coalition Inc, and Climate Neutral Group, a Net Zero authority based in the Netherlands, Belgium, and South Africa.

Established in 2013, Padd Energy is a specialist energy engineering consultancy passionate about creating power and energy from renewable and sustainable sources whilst reducing emissions from fossil fuels. Dedicated to supporting high carbon emitters and solving complex issues, Padd Energy works with some of the world’s largest corporations to identify, agree and meet net-zero commitments, such as Arla, Reckitt and Nestlé. Specialising in Waste-to-Energy and Biofuels to Renewables and Heat Networks, Padd Energy has delivered projects, from strategy to implementation, for clients across all major sectors and in locations including Europe, Asia and South America.

We’re very pleased to welcome the Padd Energy team to Anthesis. Since the beginning of 2022, the global energy crisis set a new level of priority for low-cost, clean energy, compounded by the war in Ukraine, the steep rise in inflation and the climate emergency. Our new combined powerhouse of energy expertise, bolstered by the broadest range of sustainability specialisms in the market, provides our clients and partners with the optimal support needed to navigate through these complex and challenging times.

Brad Blundell
Managing Director of Anthesis Europe, Middle East, Latin America and Africa

 
 
The 12-strong firm of impact-led engineers, with offices in London, Harrogate and Glasgow, is led by Managing Director Chris Paddey, a former EMEA Managing Partner and Board Director of ERM.

Padd Energy’s decade of energy sector expertise will complement and bolster Anthesis’ established Energy Systems team, working together to help tackle the global energy crisis and transition our clients and partners on their net-zero journey by reducing carbon emissions and providing greater importance on energy security.

This announcement is another significant milestone in Anthesis’ growth strategy following its investment from Palatine last year and marks Anthesis’ 16th merger and acquisition deal since establishing in 2013.

“We are extremely excited to join Anthesis, the largest group of sustainability professionals on the planet. Over the last nine years, I have grown Padd Energy to address some of the most complicated and pressing issues surrounding decarbonisation of complex high energy-use companies along with advising them on self-generation of renewable energy. Today, we join a hugely successful firm of sustainability professionals in tackling the same issues with the same passion and commitment as ourselves. We look forward to working together with our new colleagues and clients to offer the full suite of sustainability services from initial concept through to implementation.”

Chris Paddey
Managing Director, Padd Energy

 
 
 
Tristan Craddock, Impact Partner at Palatine commented, “Aiding the transition to net-zero is one of the key priorities of Palatine Impact so we are delighted to support Anthesis in this strategic acquisition – the third since our investment last year – which will further expand and enhance their sustainability solutions.

Padd Energy is at the cutting edge of the energy sector, working closely with global businesses to help them reduce their carbon emissions, and I am confident Chris and the team will make a significant contribution to Anthesis moving forward.

Having supported the Group as it has grown to more than 1,000 experts, we are continuing to work with the Anthesis leadership team to identify similar complementary acquisitions which will help them to deliver their sustainability mission of eliminating 3Gt of CO2 by 2030.”

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The Energy Crisis Should Be a Wake-up Call to Tackle Inefficiency

June 14, 2022 | Insights,

Portrait photo of Ben Lynch

Ben Lynch, Director for Energy

Rising energy prices and the war in Ukraine make tackling energy wastage a moral as well as an economic imperative, writes Ben Lynch, Director for Energy at Anthesis.

The war in Ukraine and the surging price of oil and gas have put the spotlight on our energy security in a way not seen in decades. How we produce our energy – from nuclear, onshore wind and solar farms – is hitting the headlines like never before. But very little attention has been paid to the role that businesses should play in tackling our current energy crisis.

There has never been a stronger moral or economic case for companies to rethink their energy use – ESG considerations, the climate crisis and compelling cost savings are all piling on the pressure for businesses to act.

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The moral imperative

ESG has become a Board-level discussion in recent years, meaning that businesses are now being held to higher levels of accountability by shareholders, clients, and consumers.

The war in Ukraine has illustrated the risks of relying on autocratic nations to supply us with fossil fuels. European governments are wrestling with how to wean themselves off Russian gas since Putin invaded Ukraine. It is now more apparent that businesses need to question their own role in buying and effectively supporting petrostates that have questionable human rights records. The power of investor and consumer action is escalating at pace, with social media campaigns playing a major role in why dozens of Western brands, from McDonald’s to Shell, have halted their Russian operations.

We have already seen such moves when it comes to climate change, with the UK Government forcing big companies to disclose their climate transition plans and private equity firms increasingly focused on reducing emissions through their portfolio companies. If businesses do not start to address their own energy usage as part of their wider sustainability strategies, consumers and investors will be asking difficult questions in the years to come.

“From the tech titans of Silicon Valley, such as PayPal, to the financial services industry’s HG, and the energy providers themselves (SSEN), Anthesis has supported them to make significant greenhouse gas reductions in the real economy.”

The climate crisis

The climate crisis is an existential threat to our planet, and the most recent report by the IPCC said that it is “now or never” to limit planetary warming. The globally respected International Energy Agency (IEA) has been a particular champion of energy efficiency, saying in a report in November that acting on energy efficiency was crucial to keeping the world on track to avoiding a climate disaster by the middle of the century. It added that tackling “energy efficiency offers some of the fastest and most cost-effective actions to reduce CO2 emissions”. The IEA predicts that if the world were to implement the cost-effective energy efficiency opportunities available today, demand for energy could fall by 15% by 2040.

Frankly, tackling energy inefficiency should have been a priority within ESG strategies even before the war in Ukraine.

According to BEIS, UK businesses currently produce around 90 million tonnes of carbon dioxide each year, equivalent to a fifth of the UK’s greenhouse gas emissions. So squeezing energy efficiency could have a demonstrable effect on the UK’s overall carbon emissions and reduce the demand on our already stretched grid, which will need to produce ever more low carbon electricity in the years to come.

It is also the most economically viable way to reduce emissions, with energy waste filtering out of a business across many channels, from premises lacking basic insulation, overheated workplaces to further infield powering data centres. Whilst many companies may have made Net Zero pledges, the time has come for them to truly demonstrate to consumers and stakeholders that these are not just empty promises. Our work with clients has shown the role that energy can play in kick-starting and potentially funding other emission reduction activities. These issues permeate all industries and need to be taken into consideration by everyone. From the tech titans of Silicon Valley, such as PayPal, to the financial services industry’s HG, and the energy providers themselves (SSEN), Anthesis has supported them to make significant greenhouse gas reductions in the real economy.

“Businesses waste energy because no one has ever sat down and created a coordinated strategy to reduce demand and improve performance.”

Compelling savings

If the moral imperative of ESG isn’t enough, there has never been a stronger economic case for companies to act. Traditionally, only companies in energy-intensive industries, such as manufacturing or construction, have paid attention to their energy usage and discussed it at the Board level. However, soaring prices have made energy a material issue in many organisations for the first time. It is a cost that can no longer be ignored, given that it is often the second-highest controllable spend for many businesses and those rising prices are now affecting margins across the board.

Businesses waste energy because no one has ever sat down and created a coordinated strategy to reduce demand and improve performance. Responsibility is often dispersed across the organisation; perhaps the engineering team sets the controls for the server room, the facilities team oversee offices; and no one has ever thought to look at the key energy generation or consumption assets.

Industry analysts predict energy prices to stay high until at least 2030, so having a coordinated and focused plan to improve energy efficiency is a simple way that chief executives can cut costs and save money for the long term. The return on investment of energy efficiency upgrades has come down dramatically in the past year. Pairing rising energy prices with improving technology and digital tools, many previously overlooked technologies, such as Building Management System upgrades, heat recovery and lighting controls, now pay for themselves within two to three years. After that, the savings are locked in.

“Businesses should not ignore this wake-up call to act on energy inefficiency now.”

Wake-up call

The war in Ukraine and volatility in energy markets will continue to cause problems for Western governments, consumers and businesses in the years to come. With ESG considerations and the climate emergency only mounting in importance, and potential cost savings not to be overlooked, there has never been a stronger case for tackling energy waste. Businesses should not ignore this wake-up call to act on energy inefficiency now.

See our energy services

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Episode 26: Decarbonising our Energy Systems to Deliver Environmental & Socio-economic Impact

December 21, 2021 | Podcast,

In this Activating Sustainability episode, our host Chris Peterson is joined by Anthesis Energy leaders Ben Lynch and Agneta Persson to discuss the transformational change required to shift a historically stable, reliable and conservative energy industry into new renewable business models to reduce carbon emissions by 50% in the next 10 years.


Activating Sustainability
Activating Sustainability
Ep. 26 Decarbonising our Energy Systems to deliver environmental and socioeconomic impact
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Join them, as they explore:

  • Progress on decarbonising the industry and the improving business case for energy efficiency
  • Challenges and opportunities for businesses within the global energy system
  • The impact of the electrification of transport
  • The socio-economic benefits of energy efficiency
  • Variable approaches to addressing the future of energy across different countries and geopolitical landscapes

 If you have any feedback on the podcast, get in touch with our host Chris Peterson at: Chris.Peterson@anthesisgroup.com

 

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Turning on Energy Savings for Hot Water: Instantaneous Hot Water

September 9, 2021 | Insights,

Huw Blackwell

Huw Blackwell, Associate Director at Anthesis
Huw is co-author of a new CIBSE guide on reducing domestic hot water temperatures safely in heat networks and buildings

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This is an adaptation of an article that first appeared in the CIBSE journal in July 2021.

Making hot water is energy intensive. As insulation and renewables continue to reduce and decarbonise energy consumption, heating hot water now accounts for a greater proportion of domestic energy use.

Some minor gains have been made with the introduction of energy efficiency guidance, such as Part L and Part G of the Building Regulations in the UK, but energy consumption cannot be reduced to minimal levels easily. However, a new guide published by the Chartered Institution of Building Services Engineers (CIBSE) explains how instantaneous hot water systems could provide a solution to reducing energy consumption from domestic hot water by safely supplying water at lower temperatures.

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The risks of domestic hot water

There are two potential health risks with domestic hot water.

The one commonly cited in the building services world is Legionnaires’ disease, which comes with potentially severe implications for public health. Legionnaires’ disease is a notifiable disease caused by inhaling Legionella bacteria in water aerosol (i.e., water spray). The disease may be contracted through water systems and needs to be treated seriously by any sensible designer or facilities manager.

The second, less debated, risk is scalding, which can cause significant injury, particularly for vulnerable people. Typically, the risk of scalding is managed in modern design using thermostatic mixing valves (TMVs), devices that control the temperature of water before it reaches a tap, which can be assessed within risk management and maintenance processes.

Fundamentally, these two risks drive the operating temperatures of domestic hot water systems.

Prevention of Legionnaires’ disease requires that water is supplied at 50°C to the outlet and stored at 60°C.
The risk of scalding increases from 43-44°C upwards, with the duration of safe exposure reducing rapidly as temperature increases.

 

 

The premise of the work is based upon the existing design solutions that are:

  • Currently able to mitigate both risks
  • Generally acceptable to relevant statutory bodies – for example, building regulators and the Health and Safety Executive
  • Commercially available for wider deployment

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Balancing act

There is a balancing act to perform between these two requirements in the design of systems. If we factor in how much energy is used to heat water, it becomes yet more complex. Water has a high specific heat capacity, meaning that it requires a lot of energy to increase the temperature compared to other substances. This highlights that there are useful energy efficiency gains to be obtained from reduced water heating, however, it is not straightforward to deliver when also considering the Legionnaires’ risk.

Last year, a group formed within CIBSE started looking at this problem to understand the scope for clarifying guidance around all three issues with the hope of unlocking energy savings while balancing the associated risks. The group members have just released their first publication.

Early observations

An early observation made by the CIBSE committee was that a common approach to reducing the risk of Legionnaires’ and scalding, as well as energy consumption, is the use of point-of-use or low-storage (≤15 litres) water heaters. The ‘lower temperatures’ used in these systems are relative to current practice, with water temperatures still warm enough for baths, showers and washing up, but by generating water instantaneously, there is the potential to avoid the temperatures required to prevent keep stored hot water safe. HSE guidance specifically states that these are low-risk systems. Typically, these are electric systems directly linked to mains drinking water beneath a sink, serving a basin or similar with low volumes of hot water. The challenge with these systems is that when demand for hot water is high, they usually struggle to provide a reliable supply.

A similar system is the electric shower, which supplies instantaneous, higher-power hot water, where temperature is often regulated by varying the volume of cold water supplied directly. Although these systems tend to be limited by the volume they can produce, compared with storage systems like water tanks, and have a high instantaneous electrical requirement, they are particularly interesting because they heat water to the supply temperature required with no excess. They also remove the issue of potential failures of mechanical TMVs. Legionnaires’ risk is often controlled with a timed flush of water from the system or equivalent approach.

As well as reducing the risks described above, the mechanical approach has the potential to solve the production and volume constraints of conventional point-of-use electrical systems, as well as offer efficiency benefits to mechanical systems.

New guidance

The new CIBSE guidance on domestic hot water temperatures seeks to extend this current practice for electrical point-of-use systems to mechanical point-of-use systems. Mechanical, or conventional heating systems, can typically provide greater volumes of hot water centrally at a lower cost than electrical point-of-use systems.

The mechanical analogue and electrical point-of-use system may be considered a plate heat exchanger, where plates are used to transfer heat to the water, producing hot water instantaneously from a building’s primary hot water system. Provided the water storage volume within the plate heat exchanger and between pipework and the hot water outlets for mechanical systems is ≤15 litres, and the system can produce hot water at 50°C, it is understood that this may also be considered a ‘low risk’ approach, equivalent to the electrical point-of-use systems described above.

None of the approaches provided in the guidance are ‘zero’ risk with respect to Legionnaires’ disease, and they do not release the designer or building operator from the need to undertake a risk assessment and appropriate management and maintenance under health and safety law. However, they may be considered acceptable and, for certain situations, preferable design solutions to the production of hot water. Together with other good design practices – for example, the elimination or minimisation of cold-water storage tanks, use of copper (biocidal) distribution pipework – this may help minimise and control this design and operational risk.

As well as reducing the risks described above, the mechanical approach has the potential to solve the production and volume constraints of conventional point-of-use electrical systems, as well as offer efficiency benefits to mechanical systems.

Examples of energy efficiency benefits

Using the example of communal residential properties, such as a block of flats or apartments, we can see the potential energy efficiency benefits of mechanical point-of-use systems. Communal residential properties can be served by heat interface units, which provide heating and hot water from a central heat source (e.g., heat pump) rather than a heat source in each property. Using mechanical point-of-use systems, system flow temperatures may be lowered to produce domestic hot water at 50°C (with the 15-litre volume constraints remaining) and, therefore, building primary distribution circuits may be operated at around 60°C. This leads to reduced thermal losses through the distribution system (pipework and storage) compared to conventional systems operating at 80°C. It also increases the scope for the use of heat pumps in these systems as the operational efficiency of heat pumps is improved as the production temperature is lowered.

Even standalone heat pump systems at the domestic or commercial scale may benefit. As thermal storage is effectively transferred to water in the heating system (primary side), not the hot water being directly consumed (which requires storing at a minimum 60°C), it may be operated at lower temperatures, providing energy benefits including lower thermal losses and higher efficiency production. In this solution, Legionnaires’ risk may be reduced by removing the storage from the drinking water supply. As water-supply temperatures are typically lower (50°C), the scalding risk is also reduced, though TMVs are likely to still be required in some circumstances. The guidance covers this in greater detail, particularly considering approaches to compliance with Part G of the UK Building Regulations, where cut-off of the hot water supply is required upon cold supply failure.

System water quality

One thing not to miss in the newer, low-flow system temperatures proposed in the approaches discussed above (and the draft Part L of the UK Building Regulations) is the increased importance of system water quality. Systems operated at below 60°C primary flow temperatures have an increased risk of biological fouling of the system water, as there is no high-temperature pasteurisation effect. So, this risk also requires managing when considering overall system design.

The paper aligns with CIBSE CP1: Heat networks: Code of Practice for the UK (2020) with regards to requiring a standard for quality of hot water supply, with a minimum time to achieve a minimum hot water supply temperature. This reduces water wastage from waiting for supplies to warm up.

The guidance improves clarity for building service engineers and facilities managers who are applying the current regulations. In doing so, the working group hopes to bring a better balance to the assessment of the risks of Legionnaires’ disease, scalding, and excess energy consumption for hot water systems.

See the article in the CIBSE Journal

See the full guidance

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Heat Network (Metering and Billing) Regulations Compliance and Guidance

January 11, 2021 | Guidance,

Changes to the regulations

In November 2020, BEIS released the second part of the regulations requiring heat network operators to determine whether they must install heat meters or heat cost allocators in their buildings. At this point, BEIS introduced three building classes and a new cost-effectiveness tool.
Heat network operators now have until the 27th November 2021 to define which class each building is in and, if necessary, complete a viability exercise.
Download the HNMBR Guide

This page was updated in January 2021 to reflect the new amendments to the Heat Network Metering and Billing Regulations 2020.

The Heat Network (Metering and Billing) Regulations (HNMBR) affect suppliers of heat networks in the UK. The regulations require heat network operators to notify the Secretary of State about their heat networks every four years and, where necessary, to install heat metering devices on those networks.

HNMBR is regulated by the Office for Product Safety and Standards (OPSS),  part of the Department for Business, Energy and Industrial Strategy (BEIS).

In 2014, BEIS published the HNMBR as part of the UK’s response to the EU Energy Efficiency Directive (EED). The regulations aim to drive energy efficiency and transparency within heat networks to ensure that customers can monitor their energy usage and are provided with competitively priced energy.

The Purpose of HNMBR

Prior to 2014, heat networks’ carbon emissions and monitoring were unrecorded. The introduction of the heat regulation saw the beginning of a purposeful drive towards validated decarbonisation in heating. The HNMBR provides a pathway for reduced carbon emissions in heating through the metering and billing of heat networks within the UK. Under these regulations, operators must submit notifications for heat networks under their control and, where appropriate, install metering devices.

Explore the Guidance

  1. Heat Network Eligibility
  2. Requirements
  3. New Building Classes
  4. Compliance Guidelines & Key Dates
  5. How We Can Help
  6. Download the HNMBR Guide

Heat Network Eligibility

You may need to comply with heat network regulations if you charge for the supply of heating, cooling or hot water to an end customer in the UK through either of the following:

  • A district heating network – two or more buildings with at least two end-users
  • A communal heat network – a single building, with two or more end-users, such as an apartment or office block

heat network infographic

Requirements

Part 1 – Notification Requirements

The first part of the heat regulations, launched in 2014, requires heat network operators to complete a notification of data from all qualifying heat networks to BEIS.

The deadline for part one of the regulations was 31 December 2015, and the process must be repeated every four years from the date of the original submission.

Future notifications will require additional information regarding building classes (see part 2 below).

Part 2 – Viability Assessment Requirements

The second part of HNMBR came into effect on the 27 November 2020 and requires heat network operators to determine if they must install heat meters or heat cost allocators into their buildings.

To define which networks will be required to install, BEIS has introduced three building classes:

  • Viable – Those who must install heat meters
  • Open – Those who must complete a viability exercise to determine if they are required to install meters or heat cost allocators
  • Exempt – No action required

If buildings fall into the open class, heat network operators are required to complete a tool to assess whether it is cost-effective to install heat metering devices. The deadline to determine building classes and to complete the cost-effectiveness tool is the 27th November 2021.

Social Housing
For social housing, this means that any existing communal or district heating systems that are not defined as supported housing fall into the open class, and you must complete the viability exercise to determine if you must install heat meters or heat cost allocators.

This includes self-contained social housing that is communally heated or district heated blocks. This covers a large proportion of social housing.

BEIS Heat Network Building Classes

Viable – Those who must install heat meters

  1. Buildings connected to a district heat network since 27 November 2020.
  2. Buildings connected to a communal heat network since 1 September 2022 (unless in the exempt or open class).
  3. Buildings within district heat networks that have undergone major renovations (over 25% of the value of the building, excluding land cost) since 27 November 2020.
  4. Buildings within a district heat network where meter installations have previously been mandatory.

Open – Those who must complete a viability exercise to determine if they should install heat meters or heat cost allocators

  1. New buildings connected to a communal heat network between 27 November 2020 and 1 September 2022 (unless in the exempt class).
  2. New buildings connected to a communal heat network after 1 September 2022 that are used for supported housing, Almshouse accommodation, or purpose-built student accommodation*, or have more than one entry points for pipes (unless in the exempt class).
  3. Existing buildings that are not in the viable class but have heat meters or cost allocators installed within the building.
  4. All other buildings that do not fall into the viable or exempt categories.

Exempt – No action required

  1. New buildings (connected to a communal heat network after 27 November 2020) and existing buildings not consisting of mainly of private dwellings where heat is supplied by a system other than hot water or the cooling distribution system uses a transfer fluid other than water (unless viable).
  2. Existing buildings used for supported housing, Almshouse accommodation or purpose-built student accommodation* (unless in the viable class).
  3. Existing buildings covered by a lease that contains a provision that prevents billing based on metered consumption.

*You can find BEIS’ definition of Almshouse accommodation, supported housing and student accommodation, here.

heat network metering and billing regulations timeline

Complying with the regulations

All heat network operators that are required to comply with part one of the notifications should continue to notify every four years, including the additional information on building classes required after 1st September 2022.

Under part two of the heat network regulations, existing heat network operators must now determine which class their buildings fall into.

If your heat network falls into the open class, you must complete by 27th November 2021. As a considerable amount of building and heating information is required to complete the tool, Anthesis may be able to assist you with this process.

If heat meter or heat cost allocator installation is required (i.e., those in the viable class or with a “yes you must install” result from the tool), you must complete the installation of all required devices by 1st September 2022.

Why Anthesis?

Anthesis has supported BEIS with the regulations from the outset, including presenting alongside them at many HNMBR events.

Our team has significant experience with HNMBR having compliantly notified over 2,400 networks representing over 15% of all notifications made nationally during round one. Additionally, Anthesis was commissioned by BEIS to design and deliver the heat network database into which all HNMBR notifications are uploaded.

Through our market-wide research on heat meter supply and installation costs, we are ideally placed to support you with your notification requirements, as well as to provide informed and accurate advice on the completion of the viability tool and costings on any required heat meters or heat cost allocators.

We also have a large in-house M&E engineering team with specialists in all types of buildings and heating systems, up to and including district heating systems. If you require support with the Heat Network (Metering and Billing) Regulations or heating systems, please get in touch using the form below.

Download our HNMBR PDF guide

Click here to see the full regulations

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SECR: Streamlined Energy and Carbon Reporting Guidance

January 3, 2021 | Guidance,

This guidance was updated in January 2021

What is SECR?

Streamlined Energy and Carbon Reporting (SECR) is a mandatory reporting scheme that requires qualifying UK companies to prepare and file energy and carbon information in their Directors’ Report. SECR came into effect in April 2019.

Why was it introduced?

SECR was introduced by the UK Government in April 2019 under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 with the intention of streamlining, and as a result simplifying, emissions reporting requirements for qualifying organisations.

What does it replace?

For a number of organisations, SECR replaces the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme that ended in 2019. The scheme also replaces and extends Mandatory Greenhouse Gas Reporting (MGHG), which requires quoted companies only to report their annual GHG emissions.

SECR Compliance Criteria Diagram

Who Needs to Comply?

You must comply with SECR if you are:

  • A quoted company
  • A “large” unquoted company or
  • A Limited Liability Partnership (LLP)

Quoted companies are those whose shares can be bought or sold on the stock exchange. A “large” unquoted company is defined as one which satisfies two or more of the following requirements:

  • An annual turnover of £36 million or more
  • A balance sheet total of £18 million or more
  • 250 or more employees

What about Low Energy Users?

Low Energy Users are defined as companies who fit the above criteria but consume 40MWh or less during the reporting period. Low Energy Users are not required to disclose energy and carbon information, however, they are required to state why it is not being disclosed.

What Do You Need To Disclose?

To comply with SECR, qualifying companies must disclose:

  • Their energy use and greenhouse gas (GHG) emissions for their financial year / reporting period
  • At least one intensity ratio
  • A ‘narrative description’ of any energy efficiency actions taken
  • The methodology used to calculate the required information

What if I am already reporting through ESOS?

The Energy Savings Opportunity Scheme (ESOS) and SECR are two separate pieces of legislation with different aims and timelines. ESOS is mandatory for large companies whereby they must submit an energy report to the Environment Agency every four years.

Where should companies report?

Qualifying companies will need to include information on carbon and energy use as part of their annual accounts in line with the SECR framework in their Directors’ Report, or an equivalent Energy and Carbon Report for LLPs, for financial years beginning on or after 1 April 2019. The disclosure may be made in the Strategic Report instead, however a statement in the Director’s report should be made to indicate and explain this decision.

What if I can’t obtain the information?

If energy and carbon information is not practical to obtain, you can exclude this information from your report. However, you must state what information is excluded and say why. BEIS recommends that you set out the steps you are taking to acquire the information.

Anthesis supports businesses to help meet their SECR requirements.

Get In Touch

SECR 2021 deadlines

SECR reporting has been mandatory for financial reports since April 2019. Reporting deadlines are in line with that of your annual filings for the qualifying financial year.

 

Why Anthesis?

We help our clients to understand what their data is telling them so that the information disclosed in corporate reports is meaningful, and motivational to staff, customers and other stakeholders.

We have been assisting clients for many years to realise the benefits of sustainable operations, and compliance just becomes a minor task within the wider approach. Our experienced team have a long history of delivering similar projects related to MGHG, CDP and support organisations looking to implement the recommendations of the Financial Stability Board’s TCFD. Anthesis offers professional SECR guidance to help companies successfully report on their energy and carbon emissions.

SECR Update – COVID-19

If you are unable to meet your company accounts filing deadline due to COVID-19, you may apply for up to a 2-month extension. Please note that you must apply for the extension before the report is due. See Government guidance for more information.

As you don’t require a site visit for SECR, we can still support you to complete your SECR report on time. However, as the data collection required may take longer to complete in current conditions, and multiple companies seeking an extension may lead to an increase in demand for support, we recommend that you start the SECR process as soon as possible.

We would be delighted to discuss how we can support you to complete your SECR report.

Guidance for Asset Owners & Managers

Understand how SECR will affect your business and the relevant disclosure requirements.

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Episode 17: Implications for U.S. Climate Action Under a Biden Administration

December 15, 2020 | Podcast,

President-elect Joe Biden has laid out a climate plan that would put the U.S. on course to achieve net zero emissions by 2050 or sooner, making his plan the most ambitious of any U.S. presidential administration.

In this episode, we hear from Anthesis Executive Directors George Favaloro, Energy & Renewables lead, and Josh Whitney, Net Zero lead and Director of Anthesis Ventures, who share their perspective on the biggest opportunities and obstacles for climate action under this administration. George and Josh discuss various noteworthy elements of the proposed climate plan, including insights from participating in the “Clean Energy for Biden” working group of clean economy experts who are putting together the policy proposals to advise the Biden administration. They address the pressing challenges ahead, and the implications of this climate plan for the market.

 

Activating Sustainability
Activating Sustainability
Ep 17: Implications for U.S. Climate Action Under a Biden Administration
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Get in touch with Chris Peterson on: Chris.Peterson@anthesisgroup.com


Useful links to learn more about climate action under the Biden administration:

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A Guide to the Public Sector Decarbonisation Scheme

October 15, 2020 | Guidance,

The New Grant Scheme

The UK Government Department for Business, Energy and Industrial Strategy (BEIS) has launched the £1bn Public Sector Decarbonisation Scheme (PSDS), combining the Capital Grant Scheme and the Public Sector Low Carbon Skills Fund. The scheme will provide the opportunity for public sector bodies in England to access funding for energy efficiency and heat decarbonisation projects within public sector non-domestic buildings. The funding will be delivered by Salix Finance.

Anthesis is encouraged to see UK government taking positive action on the decarbonisation of the public sector in this, the decisive decade. The announcement of these schemes is a real gamechanger for our public estate, with the potential to transform the carbon intensity and operational costs of our public buildings.

The focus on whole building retrofit and the decarbonisation of heat also has broader industry benefits in taking learnings to buildings outside of the public realm, something that we have been promoting for some time. We’re now working with our clients to take action – supporting them from project identification all the way through to implementation.

Our Energy Systems Team, comprising Chartered Engineers, Quantity Surveyors, and Energy Managers, bring the expertise and additional capacity needed to allow clients to maximise the opportunity from this funding.

key dates for the low carbon skills fund and capital grant scheme

About the available Grant Schemes

The PSDS aims to provide grant funding for heat decarbonsiation and energy efficiency measures across the public sector, non-departmental public bodies and central government departments. There are two funding pots available, including the Capital Grant Scheme and Low Carbon Skills Fund.

The Capital Grant Scheme

The Capital Grant Scheme offers £1bn of grant funding for capital energy efficiency and heat decarbonisation projects within public sector non-domestic buildings.
The scheme allows public sector bodies (PSBs) to apply for a grant to finance up to 100% of the costs of capital energy-saving projects that meet the scheme criteria.

The Low Carbon Skills Fund (LCSF)

The Public Sector Low Carbon Skills Fund will provide grants to help all eligible public sector bodies to source specialist and expert advice to identify and develop energy efficiency and low carbon heat upgrade projects, in preparation for application to the Capital Grant Scheme.

As part of the Low Carbon Skills Fund, there will also be an opportunity to apply for implementation funding to engage the expert skills required to deliver your project and to either put in place or improve your existing Heat Decarbonisation Plan.

Key Dates

Both the Capital Grants Scheme and Low Carbon Skills Fund opened for applications on 30th September 2020, however the closing dates depend on the type of organisation.

For the Capital Grant Scheme, public sector bodies that require funding to be transferred between departments must submit their applications by 9th November. The Scheme will then close for all applicants on 11th January 2021.

The LCSF has a shorter window for application, with the central government application date now over (30th October) and the final deadline for other public sector bodies being 4th December.

Who is Eligible?

  • Central government departments and non-departmental public bodies
  • For central government departments where their roles are reserved, funding may be used for estates located anywhere within the UK
  • Emergency services
  • Institutions of further and higher education
  • Local authorities
  • Maintained schools within the state education system
  • Nursery schools maintained by a local authority
  • NHS Trusts and Foundation Trusts
  • Non-departmental public bodies

For the grant scheme, a joint application can be made for more than one eligible public sector body.

PSDS Exclusions

  • Street lighting
  • Boiler upgrades without certain conditions explained in Category 4
  • Projects that will also utilise the renewable heat incentive (RHI)

Which Technologies are Eligible for the Public Sector Decarbonisation Scheme?

To be eligible for the Public Sector Decarbonisation Scheme, projects must also fit into one or more of the categories below:

  1. Technologies that directly contribute to the heat decarbonisation of a building by installation of a low carbon heating technology, e.g. heat pumps and connections to low carbon heat networks.
  2. Technologies that reduce overall energy demand, e.g. IT solutions, HVAC, hot water, insulation, controls, solar PV.
  3. Technologies that enable future heat decarbonisation projects to take place, e.g. metering, battery storage.
  4. Technologies that are used to replace coal or oil-fuelled heating systems and in Salix’s reasonable opinion it has been demonstrated that it is not viable for a low-carbon heating system to be installed, e.g. gas boiler replacement.

Projects in categories 1, 2 and 4 are subject to lifecycle carbon eligibility criteria of £500/tCO2e.

 

Important Considerations

  • Good governance of public money requires Salix to be diligent in ensuring that Public Sector Decarbonisation Scheme funding is spent for the purposes given.
  • The final Salix funding grant payment is provided on completion and a Completion Certificate being issued by the applicant.
  • Good project design will also give consideration to the future estate strategy and demonstrate that a range of options have been considered.

Our interpretation of the guidance is that clients need to take a holistic approach to the identification and implementation of projects to give confidence to the funder at each stage of the process.

This means that you will need to evidence:

  • Establishment of firm costs and calculated estimated savings
  • Reasonable project sequencing and due care to ensure no double counting of savings when considering multiple projects on the same site
  • Selection of suitable supplier(s) following procurement procedures
  • Details of an effective project management approach
  • Project progress through regular reporting
  • Post project completion activities including any verification of savings

The Process

Discover the process of applying and utilising the Capital Grant Scheme and Low Carbon Skills Fund and the support that we can offer:

Stage Our Support
   
Apply to the Low Carbon Skills Fund – Provision of cost estimates for project identification and heat decarbonisation plans
– Building physics and Dynamic Simulation Modelling (DSM)
 
Identify – ‘Investment grade’ energy audits up to RIBA stage 2
– Energy analytics and production modelling
 
Business Case – Technical and commercial due diligence
– Cost consultancy and CapEx schedules
– Procurement strategy
– Supplier engagement
 
Apply for capital – Risks and mitigation
– Monitoring and reporting plan
– Provision of evidence for grant application
 
Implement – Detailed design to RIBA Stage 3/4
– Client-side programme management
– Construction project management
 
Report – Contract administration and contractor management
– Risk Assessment, CDM and Health & Safety

How We Can Help

Anthesis has a long history of supporting the public sector to realise the challenge of estate decarbonisation.

In working on this latest iteration of public sector funding support, we are committed to providing:

  • Impartial advice – independent of contractor or manufacturer interest
  • Comprehensive coverage – Stakeholder Engagement, Quantity Surveying, Engineering and Project Management support allowing us to support clients through the journey from project identification to Operation & Maintenance
  • Competency – guiding our clients through the application process and managing risk

 

To support our public sector network to maximise the opportunity of this funding and the carbon saving potential that it offers, Anthesis hosted a series of webinars to share our expertise and experience. Click here to find out more and view the webinar recordings.

Related Insights

SBTi’s New Paper on Setting Science-Based Net Zero Targets in the Corporate Sector

September 15, 2020 | Insights,

The recent SBTi net-zero “Foundations” paper
The SBTi net-zero “Foundations” paper provides recommendations and guiding principles to standardize corporate net zero targets to better align with the global transformation required to limit warming to 1.5 °C.

Anthesis executive Director Lisa Grice contributed to the paper and provides a summary here.

To meet the goal of keeping global warming below 1.5°C, the Intergovernmental Panel on Climate Change (IPCC) confirmed in 2018 that we must halve emissions by 2030 and reach net-zero CO2 emissions by mid-century. We are in the decisive decade where corporate action is paramount to achieve net zero global carbon emissions by 2050. As our understanding of net zero grows, so too has the number of companies with net zero commitments. According to Race to Zero, a quarter of global CO2 emissions are covered by net zero commitments by private actors. And yet, there is inconsistency in the corporate approach to achieve these targets, the metrics to measure them, and the timeline to reach them, and most notably there may be inconsistencies between how companies have defined net zero and the actions necessary to reach net zero on a global level.

Learn more about Net Zero from Anthesis

The recent SBTi net-zero “Foundations” paper provides recommendations and guiding principles to standardize corporate net zero targets to better align with the global transformation required to limit warming to 1.5 °C. The paper serves to present the foundations upon which SBTi intends to build a stakeholder engagement process to establish detailed criteria and guidance for corporate net-zero targets. As the full paper from SBTi is lengthy and in-depth, we’ve provided a brief synopsis with key points. Visit SBTi’s paper for the full context and detailed descriptions around this summary.

Three Principles for Corporate Net zero Targets


SBTi’s paper outlines three principles for corporate net zero targets to align with global climate goals and drive success in the net zero economy.

  • Principle 1: Reaching net-zero emissions for a company involves achieving a state in which its value chain results in no net accumulation of carbon dioxide in the atmosphere and in no net-impact from other greenhouse gas emissions.
  • Principle 2: In accordance with the best available science, the Paris Agreement and Sustainable Development Goals, companies should transition towards net-zero in line with mitigation pathways that are consistent with limiting warming to 1.5°C with no or limited overshoot.
  • Principle 3: The mitigation strategy followed by the company should inform long-term strategies and investments that mitigate exposure to climate-related transition risks, ensuring that the business model of the company will continue to be viable in a net-zero economy.

10 Recommendations for companies setting net zero targets:

  1. Boundary
  2. Transparency
  3. Abatement
  4. Timeframe
  5. Accountability
  6. Neutralization
  7. Compensation
  8. Mitigation
  9. Environmental & Social Safeguards
  10. Robustness

Tactics to put these Principles into Practice


SBTi translated these guiding principles into 10 initial recommendations for companies setting net zero targets.

  1. Boundary: A company’s net-zero target should cover all material sources of GHG emissions within its value chain.
  2. Transparency: Companies should be transparent about the sources of emissions included and excluded from the target boundary, the timeframe for achieving net-zero emissions, the amount of abatement and neutralization planned in reaching net-zero emissions, and any interim targets or milestones.
  3. Abatement: Companies must aim to eliminate sources of emissions within its value-chain at a pace and scale consistent with mitigation pathways that limit warming to 1.5°C with no or limited overshoot. During a company’s transition to net zero, compensation and neutralization measures may supplement, but not substitute, reducing value chain emissions in line with science. At the time that net zero is reached, emissions that are not feasible for society to abate may be neutralized with equivalent measure of CO2 removals.
  4. Timeframe: Companies should reach net-zero GHG emissions by no later than 2050. While earlier target years are encouraged, a more ambitious timeframe should not come at the expense of the level of abatement in the target.
  5. Accountability: Long-term net-zero targets should be supported by interim science-based emission reduction targets to drive action within timeframes that are aligned with corporate planning and investment cycles and to ensure emission reductions that are consistent with Paris-aligned mitigation pathways.

6.Neutralization: Reaching net-zero emissions requires neutralizing a company’s residual GHG emissions with an equivalent amount of carbon removals. An effective neutralization strategy involves removing carbon from the atmosphere and storing it for a long-enough period to fully neutralize the impact of any GHG that continues to be released into the atmosphere.

7. Compensation: While reaching a balance between emissions and removals is the end goal of a net zero journey, companies should consider undertaking efforts to compensate unabated emissions in the transition to net-zero as a way to contribute to the global transition to net-zero.

8. Mitigation hierarchy: Companies should follow a mitigation hierarchy that prioritizes eliminating sources of emissions within the value chain of the company over compensation or neutralization measures. Land-based climate strategies should prioritize interventions that help preserve and enhance existing terrestrial carbon stocks, within and beyond the value chain of the company.

9. Environmental and social safeguards: Mitigation strategies should adhere to robust social and environmental principles, ensuring amongst others, protection and/or restoration of naturally occurring ecosystems, robust social safeguards, and protection of biodiversity, amongst others.

10. Robustness: Compensation and neutralization measures should: (a) ensure additionality, (b) have measures to assure permanence of the mitigation outcomes, (c) address leakage and (d) avoid double counting.

Anthesis is constantly excited and honored to be working with companies seeking to define the front line on combating climate change. SBTi’s work is critical for helping companies to align their net zero aspirations with the reductions that science dictates are required to mitigate the worst human, economic, environmental impacts of climate change.

Lisa Grice
Executive Director, Anthesis

What’s next for science-based net-zero targets?

Following publication of this paper, the SBTi intends to develop the following outputs following a robust and transparent process:

  • Criteria for the formulation of science-based net-zero targets in the corporate sector;
  • A validation protocol to assess net-zero targets against the set of criteria to be developed as part of this process;
  • Detailed guidance for science-based net-zero target setting in the corporate sector, including guidance for credible claims.

As the corporate community increasingly takes net zero targets into consideration, a standardized approach in the corporate sector will help all actors better understand how the targets contribute to our global carbon emission goals. Look out for more guidance and technical resources from Anthesis on the process of setting and reaching corporate science-based net zero targets.


Additional Resources

— Visit our dedicated SBT resources page to learn how to set and reach a Science Based Target.
— Listen to our net zero podcast series for a discussion of the key challenges and topics on the net zero journey.

Contact us

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Anthesis has offices in the U.S., Canada, UK, France, the Netherlands, Belgium, South Africa, Ireland, Italy, Germany, Sweden, Spain, Portugal, Andorra, Finland, Colombia, Brazil, China, the Philippines and the Middle East.

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