Hospitality sector hit by 30 million carbon tax + more reporting requirements

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This summer reality hit companies under the government mandatory Carbon Reduction Commitment scheme. Deferred since 2011, companies affected finally had to pay out for their carbon allowances effectively a tax on energy usage amounting to 30 million for the 30 hospitality sector companies involved.  In addition, under the new Mandatory Carbon Reporting scheme taking affect from April 2013, all listed companies will have to calculate and report their carbon emissions in their annual accounts. Despite an additional 12 months to budget for this, hospitality companies, particularly the hard pressed pub and fast food sector, will need to sell an additional 97 million pints of beer or an equivalent 60 million burgers to cover these costs , or find additional energy savings, claims Carbon Statement a leading carbon management company.
 
"On top of the 15-20% increases in energy prices, a stagnant economy and the dismal summer, this latest carbon tax - the equivalent to an additional energy cost increase of 8-9% - might be a pivotal moment for some organisations. The good news is that a number of leading brands are already achieving the equivalent of a 5% increase in sales through energy saving measures and carbon reductions," says Mark Chapman, director of Carbon Statement.

 
"Developing and implementing plans to reduce energy consumption and changes in employee behaviour, however, remain critical for the sector and to pay for the new tax. The alternative is to grow like for like sales by 5% just to stand still. At the same time sharing best practice to accelerate change is essential," Chapman claims. The new requirements under the Mandatory Carbon Reporting scheme will mean companies have to  calculate and report their company's operating carbon emissions.  Given the large number of properties hospitality companies operate, this is a complex task requiring a programmed approach to get accurate figures.
 
At the next Hospitality Carbon Reduction Forum in September, where leading industry members have been meeting since April 2011 under the guidance of Carbon Statement, members will share best practices on reducing carbon emissions from energy, water and waste consumption.  At the next meeting on 18th September in London Mandatory Carbon Reporting will be on the agenda. Companies wishing to join the forum or learn more need to visit http://www.carbonstatement.com/hospitality/default.aspx to sign up.