NQA, who have over 30 years’ experience in global certification delivering certification in over 90 countries, have awarded Auditel the prestigious title of Associate Partner status as part of their Associate Partner Programme (APP). The partnership follows on from Auditel’s Carbon Solution specialists leading the way in helping clients to gain PAS2060:2014, the only globally recognised specification for claims of Carbon Neutrality.

The Bottom Line Issue 15 Auditel’s latest newsletter, filled with articles to optimise your spending to achieve best value. In this issue: Mitigate rising costs Stakeholder Capitalism – A Gentle Nudge Highlights from the World of Packaging Becoming carbon neutral needn’t cost the earth What’s Hot in IT for 2022 ‘Bioplastics’ – A seemingly appealing alternative to oil-based Plastics An update on the Energy Markets

Blackrock Investment Management is the world’s largest money manager, and in January 2022 its total assets under management surged past the $10tn mark for the first time. Formed as a small startup just 34 years ago, the progress of the firm has been remarkable and it is now the benchmark for the “serious” face of business in the capital markets. For the past ten years, Blackrock’s CEO Larry Fink has written to the senior leaders of each of his firm’s investee companies about the growing importance of what he describes as Stakeholder Capitalism. He contends that “this is not about politics. It is not a social or ideological agenda. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper.” Increasingly Fink has made calls for a strategic long term approach to ensure sustainability, both in the financial and environmental sense. In this year’s letter Larry Fink 2022 he observes that the global pandemic has served to “turbocharge” the rate of change in the relationship between a company, its employees, and wider society. In a year that has seen such tumult in companies and markets, countries and economies, he calls out the responsibility of the leaders of large companies to take responsibility for putting “your company’s purpose at the foundation of your relationships with your stakeholders”. A consistent theme which emerges year after year is his belief that although capital markets are now larger than ever before (estimated to be worth around $400tn) – accessing that capital carries a burden of responsibility that is being defined in a new language. No longer is it sufficient to express your company’s goals in terms of Earnings or Return on Capital. As Fink puts it “most stakeholders now expect companies to play a role in decarbonizing the global economy.” It is instructional to consider these words, as they lend a useful perspective to the once maligned inputs of “environmentalists” within the business world. These voices were hitherto marginalised and found themselves sitting on the lunatic fringe of the conversation. Rarely did they have the opportunity to speak directly to corporate boards on these key topics. To hear these words coming from the mouths of key investment decision makers such as Fink is a paradigm shift. As someone who made colourful presentations to the Board of a UK listed organisation back in 2006 and received tolerant smiles and a very modest budget to begin addressing “change” I would consider myself as a Boardroom “activist.” With the likes of Blackrock and indeed the wider investment community moving in lockstep on the responsibilities of organisations it seems that perhaps the tide is turning – but there remains a role for such activism. It is such a broad and sweeping topic that many organisations simply do not know where to make the first step. Fink poses the simple question “every company and every industry will be transformed by the transition to a net zero world. The question is, will you lead, or will you be led?” and cites an example of the car industry. “In a few short years, we have all watched innovators reimagine the auto industry. And today, every car manufacturer is racing toward an electric future. The auto industry, however, is merely on the leading edge – every sector will be transformed by new, sustainable technology.” The fact is that virtually every sector in an economy will need to go through this coming change. Some companies will innovate and thrive, perhaps others will aim to simply survive, and undoubtedly some will die. The key requirement for business leaders is to get their heads up and try to discern what is coming. What are the risks and opportunities for you as a business? Fink underlines a clear requirement to make accurate disclosure in order that companies may continue to seek the support of the capital markets. Blackrock will require companies to set short-,medium-, and long-term targets for greenhouse gas reductions. These targets, and the quality of plans to meet them, are critical to the long-term economic interests of shareholders. It’s also why they are asking companies to issue reports consistent with the Task Force on Climate-related Financial Disclosures (TCFD): because they believe these are essential tools for understanding a company’s ability to adapt for the future. In signing off, Fink recognises that capitalism can be a powerful force for good in the transition to Net Zero, however he also calls for the fiscal and regulatory support that will help level the playing field for innovators. The fact is that there is still a proliferation of confusing disclosure requirements for companies and sectors and a language that is often opaque and misleading. Organisations can no longer afford to wait and see what might happen in this space. The time has come to learn a new language and to develop a more rounded scorecard of company performance. Your stakeholders demand it.

Auditel’s latest newsletter, filled with articles to optimise your spending to achieve best value. In this issue: COP26 – Phasing Out or Phasing Down? IPCC REPORT – AR6 Briefing Note The Green Skills Gap is the elephant in the room Decisive action in the battle against climate change Fossil Fuel Folly

Auditel’s latest newsletter, filled with articles to optimise your spending to achieve best value. In this issue: COP26 and the Waste & Resource Management Industry Introducing PAS2060 Happy Earth Day Progress towards the UK’s Net Zero 2050 Target The Role of Carbon Offsets & Negative Emissions Technologies Net Zero – An Inconvenient Truth

PAS 2060 is related to carbon neutrality. PAs 2060 is a carbon neutral certification that demonstrates an organisations commitment to reducing carbon emissions and its carbon footprint. The PAS 2060 standard was published by the British Standards Institution (BSI) in 2010 and enables individuals, businesses, and organisations to demonstrate their carbon neutrality claims are verified. While companies can calculate their carbon footprint and purchase carbon credits, the PAS 2060 standards provide a framework for certification and accuracy. This is becoming more and more important as companies and governments are moving towards being net-zero by 2050. You can read more about BSI PAS 2060 and how our team at Auditel help you get certified here: auditel.co.uk/carbon-solutions

Auditel, a leading UK cost and procurement consultancy, has announced its move and extension into the carbon management and solutions space in what it sees as a unique and complementary business service, helping organisations not just to navigate their path to Net Zero but to fund it through its cost savings and procurement expertise too. Our Mission is to help organisations become Carbon Neutral in a measurable, meaningful and potentially self-funding way. Auditel, a leading UK cost and procurement consultancy, has announced its move and extension into the carbon management and solutions space in what it sees as a unique and complementary business service, helping organisations not just to navigate their path to Net Zero but to fund it through its cost savings and procurement expertise too. Following a two-year development programme, the UK-wide consultancy network has repositioned itself as The Cost, Procurement & Carbon Solutions Company and will continue to offer its cost and procurement expertise, with the added carbon management and solutions service. BSI Partnership Auditel, has also partnered with the BSI to independently verify that an organisation has met its Carbon Neutral credentials, through its PAS2060 verification framework. Auditel carbon specialist now hold the title of BSI Associate Consultant. Auditel was founded in 1994, to primarily service the cost and procurement needs of SMEs in utilities and energy spend. Over the years, it has expanded its services and expertise across multiple indirect spend categories and market sectors including manufacturing and logistics, retail, not-for-profit, education and hospitality and leisure. Auditel’s Managing Director, Chris Aston said, “Our move into providing carbon solutions for organisations has been a natural evolution for us, reflective of the changing landscape and one that ties our investment in sustainability expertise with our heritage in cost management and procurement. We believe it’s unique too because we are able to provide end to end solutions providing expert guidance and resources so our clients can achieve a BSI recognised specification for carbon neutrality as soon as possible, while supporting them on the longer-term net zero journey. With the help of our procurement expertise, we can potentially self-fund our clients net zero journey or even make it more profitable through cost removal and cost transformation.” A recent British chamber of commerce survey revealed that just 11% of SMEs measure their carbon footprint and perhaps more significantly, cost is considered the biggest barrier with 30% claiming lack of finance is holding them back. It’s a statistic that Auditel recognised in its own research and client discussions and identified a gap to fill. “In effect, we can provide organisations with a blend of cost, procurement and carbon solutions. Identifying savings and reducing costs in an organisation to offset or part-fund the cost of getting to a verified Carbon Neutral status. And we’ve partnered with the BSI, because we believe that an independently verified framework that certifies carbon reduction is the only viable option to establish integrity in the process.” Auditel’s extended proposition includes a four-step process to get organisations to Net Zero: Measure; Reduce, Offset and Verify and is already working with both existing and new clients in its portfolio, finding solutions to reduce carbon emissions as well as fund them.

The definitive Standard created by the Building Engineers Services Association, BESA is SFG20. In response to the social and economic impact of COVID 19 this has been updated to SGF30 and provides detailed guidance on where organisations can take steps to mothball buildings. The risk assessment of each building will also need to take account of partial use - say of IT servers required to support home-working. This checklist should be followed by an action plan provided by a qualified Building Maintenance Contractor in consultation with your insurers.