Why your housing association cannot ignore carbon reporting

Andrew Grover, CEO at Advantage Utilities offers some practical advice to getting your organisation on the right track.

On 20 April 2021, the UK government committed to reducing Greenhouse Gas Emissions (GHG) by 78% by 2035 compared to 1990 levels – the world’s most ambitious climate change target that will be legally binding by the end of June 2021.

This would bring the UK more than three-quarters of the way to net zero carbon emissions by 2050 – the original target the government signed us all up to in 2019.

As you’ll most likely know, net zero refers to achieving a balance between the amount of GHG emissions produced and the amount removed from the atmosphere.

In the housing sector alone, the challenge is enormous. Just to reach the government’s interim target for housing by 2035 means retrofitting 1.2 million UK homes every year. Buildings are particularly challenging to decarbonise and progress has been slow to date, with emissions remaining flat or rising for the last five years. In 2018, less than 5% of the energy used for heating homes and buildings was from low-carbon sources. Direct greenhouse gas emissions from buildings in 2019 were around 17% of the UK total. More than three quarters (77%) of this was from homes. With limited resources, as well as significant financial pressures, any decarbonisation efforts must be cost-effective, and social housing landlords must also consider the impact on their customers when making any changes to housing stock.

 Given current trends, emissions from the social housing sector will continue to fall modestly up to 2050. However, this fall will not be anywhere near substantial enough to meet the original 80% reduction target, let alone the newly adopted target of net-zero.

Between 2019-2035, building emissions need to fall by just under 50% on the way to reaching near-zero by 2050. By 2033, according to the roadmap, all of the UK’s buildings should be energy efficient and all boiler replacements should use low-carbon technologies such as heat pumps. Alternatively, they should be part of a zone for district heating, or possibly a hydrogen option. Easier said than done, I hear you say.

With the coronavirus pandemic presenting social housing organisations with more than a few challenges recently, committing to achieving net zero may seem like a step too far. But there are business benefits to be gained.

Working towards net zero doesn’t simply mean expense for your organisation. In fact, there could be savings to be made. With so many companies switching to renewable energy options, the price of wind and solar is dropping. Similarly, improving energy efficiency can significantly reduce energy bills. Providers of social housing can work towards net zero by embracing the opportunities for self-generation too. Could there be a saving right in front of you?

What happens if you do nothing?

Many larger companies, multinationals and public sector organisations, like the NHS, have made net zero pledges, committing to ambitious science-based carbon reduction targets.

If you have partners or supply chains, for example, net zero requirements for some are already becoming par for the course in the decision-making process. Being able to present the right information to your partners and suppliers will provide commercial advantage not to mention offer the added benefit of strengthening your organisation’s marketing position to end-users.

It’s also useful to know that some banks are now linking finance to your carbon impact. Not being committed to net zero or taking action and progressing with a net zero plan can affect your ability to borrow.

 On the flip side, there can be financial incentives for organisations looking to make green improvements.

First step: Measure your carbon footprint

Becoming a carbon neutral company starts with measuring your business’ carbon footprint – the sum of all GHG emissions. From assessing processes, products and services, supply chains, transport and logistics; you need to understand where your organisation currently stands in relation to its carbon emissions.

For example, does your business have high-energy outgoings from its operations or is it highly dependent on transport? This data can be obtained from the likes of energy bills and travel expenses.

Gathering this information will enable you to create a benchmark for carbon reporting going forward, allowing you to track progress towards net zero month-on-month and year-on-year.

How does a business start gathering the right carbon emissions reporting information?

The path to adoption of net zero reporting can be gradual. Some companies try to do it themselves while others feel it’s out of their comfort zone and look for support, freeing them to focus on their core business. An expert independent advisor can execute the necessary steps for you. They will bring insight from hundreds of previous energy efficiency projects and be able to advise on and implement cost-effective energy strategies and technology solutions that will take your business towards the goal of becoming carbon neutral.

Working towards accreditation standards like Future Net Zero also provides a simple and cost-effective process that allows smaller and mid-market organisations to gather basic information to be able to record data, monitor progress and benchmark against competitors. Verified and audited by Future Net Zero, it offers a pathway to developing your green credentials.

Where can housing associations seek out net zero support?

There’s plenty of support available to help get you on the right track and create a tailored net zero roadmap. Look for a specialist business utilities consultant that can help to:

• Identify the relevant metrics for your business such as, per employee, per £1,000 turnover or per metre square of building space, or kWH of electricity

• Establish what measurement you will use for example, CO2 emissions in kg

• Understand the breakdown of carbon in the energy your business uses and where it’s coming from

• Scope out your organisation’s journey to net zero for you and provide support with recording the data and carbon reporting – especially when your business has multiple sites for example

• Assist your business with setting net zero targets that can be measured and shared with end user customers, investors and employees

• Highlight net zero opportunities for your business including carbon emissions reduction, energy efficiency through green technologies and potential utilities savings.

Take your first step to net zero

Tackling net zero can seem expensive and time-consuming but you will reap the business benefits. It’s not going to happen overnight but taking action now to become a carbon neutral company is, most definitely, a step in the right direction.

Advantage Utilities are a preferred partner of the National Housing Federation and we work with several housing associations already. We have made our pledge and are already working towards net zero. Let us use our experience to assist your business one step at a time.