The Retailer Winter Edition 2023

WI NT ER 202 3

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4. Use renewable energy sources The most common way to procure renewable energy has typically been to choose a green tariff from an electricity supplier, meaning that consumption is backed by Renewable Energy Guarantees of Origin (REGOs). These certificates are purchased from renewable generators, rewarding them for their clean energy. However, certificates alone are not truly an investment, as they do not necessarily result in additional generation being added to the grid. More recently, businesses have looked to procure renewable energy via Power Purchase Agreements (PPAs) with a generator or by investing in projects directly. PPAs can provide an effective hedging mechanism to protect businesses from the volatility of commodity markets. 5. Invest in Net Zero tech PPAs are just one method to approach Net Zero tech investments and are particularly appropriate to premises either owned or with long-term leases. These ownership structures can support larger investments such as onsite energy generation (e.g. rooftop solar PV). Landlords are now having to followmandatory requirements to improve their EPC ratings. Therefore, where sites are more energy efficient, lease renewal, asset value, and higher savings are more likely. Alternatively, grants are available at both regional and national levels, where government will fund up to 70% of energy efficiency projects, such as LED upgrades and control improvement. 6. Remember Scope 3 Scope 1 and 2 usually only account for approximately 20 to 30% of an organisations’ emissions; the remaining are classified as Scope 3 and includes all the emissions associated with your product and service, right until its end of life. The amount of data involved is colossal and most inhouse Environmental, Social, Governance (ESG) teams need additional support to create a reduction plan for the 15 Scope 3 categories. It is crucial to start measuring elements now to create a baseline and to reduce the burden of complying. Making small changes in how, or what, data is collected will allow Scope 3 processes to be built and associated carbon to be measured, monitored, and reduced.

7. Knowthe relevant legislation Environmental legislation is a fast-moving, ever-changing landscape. Where some Non-Governmental Organisations (NGOs), charities, and businesses have already tested thewaters by reducing their environmental impact, local, national, and international governments are enshrining these minimum standards in legislation and regulation. For example, the Task Force for Climate Disclosure (TCFD) is beginning to become a requirement for more businesses year-on-year. TCFD requires companies to mitigate and plan for climate-related risks and opportunities in a tangible (e.g. flooding) and more intangible (e.g. climate change migration) approach. The questions and requirements posed by UK and international law ensure climate is considered in boardrooms across multiple industries, and therefore reach the forefront of business agendas. Regardless of the size of the initiative, progress is progress, and imple menting the aforementioned steps is the best place to begin. Whether you follow one of the above tactics, or all seven, you will be joining the movement to be part of something bigger. The best time to start your journey to Net Zero was yesterday, but the second best is today.

Contact Amber to learn more about taking the first steps of your Net Zero journey

AndrewWalker aj.walker@amber.net amber.net