25th March 2010
The Carbon Reduction Commitment, (CRC), Energy Efficiency Scheme will affect around 20,000 businesses in the UK but few realise the potentially deep impact the new regime will have on existing accounting systems and processes. Let’s face it, few finance professionals have any background in environmental management and the CRC represents a whole new vocabulary and library of business risks.
The financial implications are significant, not only on the profit and loss account but also in cash flow terms. Recording the information required and adding to it as the scheme takes effect is going to be a major undertaking. But this isn’t a hotch-potch of loosely assembled ideas. The CRC has real financial impacts and the whole topic of accounting for carbon and gaseous emissions is going to assume a high degree of importance over the coming years. This week, senior FSN writer, Niki Leahy gets under the skin of the regulations and starts to demystify the jargon, suggesting what you need to measure to comply. Niki has huge experience in this field and I recommend that you read her take on what you need to do to prepare.