Within the carbon reduction commitment, energy consumption is divided into 'core sources' and 'non-core sources'.

Core sources will typically include all electricity and non-transport fuel those provided as a constant supply and invoiced on a regular or monthly basis. It will be mandatory for all organisations to report their core sources of energy,

Within the carbon reduction commitment, energy consumption is divided into 'core sources' and 'non-core sources'.

Core sources will typically include all electricity and non-transport fuel those provided as a constant supply and invoiced on a regular or monthly basis. It will be mandatory for all organisations to report their core sources of energy,

Under the carbon reduction commitment, local authorities will be held legally and financially responsible for state funded schools within their geographical area. As such, the CRC aims to increase energy management practice between local authorities and the schools that fall under their umbrella.

The government has proposed that state-funded schools (including academies) within Great Britain, will participate within the carbon reduction commitment scheme under the umbrella of their local authority. In doing so, it is the carbon footprint of the local authority that will be legally and financially responsible for participation in the carbon reduction commitment scheme, rather than the individual schools.

It is also the local authority that will be positioned within the carbon reduction commitment, rather than the individual schools.

The Carbon Reduction Commitment will typically result in a range of costs for participating organisations. These could include administration and consultancy advice, implementation of new technology, as well as the potential for fines and penalties due to non-compliance or poor performance.

However, in the long term, it is likely that most organisations will enjoy significant financial benefits due to improved efficiency and lower energy costs.

All participants in the Carbon Reduction Commitment will be required to produce evidence packs in case of an audit. The evidence pack must include:

Structural Records - with clear definitions for the structure of the organisation. Information on implmentin early action metrics and growth metric across all subsidiaries.

As the growth metric is based on the percentage change based on production unit turnover, it may not always be possible to identify a measurable unit of production. In these circumstances, the growth metric will be based on emissions per unit of revenue.

Where the growth metric is based on revenue, the measurement will apply to the organisation's total revenue, rather than just the area covered by the measured energy consumption.

If an organisation changes its structure or operations, the information will not be updated in the CRC until the start of the second phase.

Where a landlord and tenant arrangement exists, regardless of who owns the property, who occupies the property or ultimately who uses the energy. In all situations, the responsibility to report under the CRC will lie with whichever organisation has a direct contract with the energy supplier.

This arrangement exists for both the half hourly electricity consumption liability and preliminary reporting, as well as the CRC's requirement for annual compliance.

The Carbon Reduction Commitment presents a number of benefits to organisations that fall within the scheme.

Brand and Marketing

With the carbon reduction commitment league tables being published each year, the media will have full access to the performance information of all organisations that fall within the scheme. As such, the best performing organisations will benefit from recognition of their achievements.

Corporate Social Responsibility