Colin Challen is Labour MP for Morley and Rothwell, one of eight parliamentary constituencies in Leeds and Chair of the Cross Party Parliamentary Climate Change Group in UK Parliament. He launched the group with the CarbonNeutral Company and Stephen Byers MP. It has attracted unprecedented interest from over 100 MPs from the three main parties and businesses from all major sectors. The Group aims to deliver material and meaningful progress on climate change by creating an arena in which interested and relevant parties can discuss and formulate policy options and encourage the application of those that offer greatest promise. Before being elected in 2001, Colin stood as a Parliamentary Candidate in East Yorkshire. Before entering politics, he was a self-employed printer and publisher for 12 years.

Tell us about what the Group is working on now.

"The group continues to hold a very full agenda of meetings in the House. We are particularly focusing on what needs to happen in the Bali Roadmap process. In addition we are exploring ways that countries in the Commonwealth may make a bigger impact on the process. The Commonwealth contains countries of all developmental states and would be an ideal forum in which to progress and inform arguments about how we tackle climate change. We are considering doing this using new technology which would cut out the need for people to fly all over the planet."

Briefly, how did the Group come into being?

"The group was formed in June 2005, noting that there was no other group in Parliament directly looking at climate change, least of all the 'constitutional' mechanisms, be they trading, offsetting or per capita rights. The group was formed with significant assistance from the Carbon Neutral Company, which now acts as Secretariat."

What are the proudest achievements of the APPCCG?

"I think we have influenced the debate, but it's hard to pin down quite how - many more MPs are now taking a positive interest in the issue. We have also contributed to the debate through an inquiry into cross-party consensus building."

What are the biggest challenges you face in your role and how do you deal with them?

"Convincing people of the urgency of the problem is the biggest challenge, but increasingly I think the sceptics will begin to exercise a degree of influence - the general public will not like measures that bite, and they will seek solace in the arms of the sceptics - this needs a firm response based on the science."

Why did you become the Chair of the Group?

"I was elected to it and have sought to fulfil the task by promoting debate."

Sum up the aims of the Group in just a few lines.

"To promote understanding of the institutional changes required to tackle climate change. We do not spend so much time on the 'hardware' such as renewables, since PRASEG already does that." [PRASEG is the Associate Parliamentary Renewable and Sustainable Energy Group, the cross party group for UK politicians and senior industry stakeholders that promotes sustainable energy issues in Parliament and the wider political community].

In which ways is UK Government leading the way in mitigating the effects of climate change and in which ways is it lagging?

"It has led the way through promoting the scientific understanding of climate change and by introducing the concept of targets and carbon budgets, but lags well behind in implementation."

Are current UK Government climate change targets realistic in your view?

"No - they need to be much tougher if we are to stay within the two degrees increase - there sometimes seems to be a disjuncture between our scientific awareness and our willingness to translate that into action."

How can Government avoid gaining a reputation for 'greenwash?'

"Only by consistently telling it like 'it is' - not by trying to fool people into believing that simply by changing their light bulbs will we solve the problem."

What climate change trends do you predict?

"The worst possible trend is that we find ourselves increasingly caught in adaptation mode and invest less in mitigation. This would be like throwing in the towel. But immediate problems demand immediate political responses and this is what may well happen."

What would you advise someone taking on a role similar to yours?

"Give up your day job."

Low Carbon Board Report

The Ingredients Of A Strategic Approach To Energy

Just a few years ago energy wasn’t an issue in most boardrooms. Mounting public concern about the evidence for climate change, and increases in energy prices changed all that, says Keith Webster, head of the climate change practice at the Enviros consultancy.

“Industry saw price rises before consumers did. From around 2003 companies saw energy prices rising by up to 50 per cent, and as a result there wasn’t a cat in hell’s chance of them hitting their budgets. The city analysts spotted that here was a real threat to profitability, and all of a sudden companies found themselves under pressure to mitigate the price increases,” he says.

Doing so requires many companies to change the way they think about energy. Contrary to common belief, energy costs are not a fixed overhead, and there is often great potential for savings, says the Carbon Trust. It estimates that most organisations can save up to 20% on their fuel bills simply by managing energy use and investing in cost-effective measures.

Towards a business case for energy management

Even before 2003, companies in energy intensive sectors were under pressure with the introduction of the Climate Change Levy (CCL), a tax designed to be neutral with respect to the Exchequer, and incentivise cuts in energy consumption. Businesses subject to a Climate Change Agreement with the Government businesses are eligible for up to an 80% reduction in their CCL in return for cuts in their energy use.

It is important to take the right approach to energy management if a company is to see the benefits, combining a well thought out strategy with effective practical measures. This will involve leadership and active participation by key decision makers and action from every employee on a day-to-day basis.

Appointing a board member to be responsible for the strategy is an important first step, sending out a powerful message about the importance of energy to the whole business and empowering the managers tasked with implementing the strategy.

Setting out the business case will help to win support from senior managers. This will include cutting the direct costs mentioned above, and mitigating taxes where applicable, but its scope needn’t end there. For example, the business case may also include gains in competitive advantage. Consumers especially, but increasingly investors too, prefer businesses that are seen to take a responsible approach to their impact on the environment.

Similar pressures can affect the long term security of a company’s place in the supply chain, particularly if its customer is a well recognised brand with a public reputation to uphold. More generally, how well a company adapts to the demands of energy efficiency are likely to be seen as important indicators of how well run it is, the quality of its leadership, and how well it responds to change.

Starting points and future directions

Cutting costs are the best starting place for an energy management strategy, suggests Sarah Beacock, Professional Affairs Director at the Energy Institute, the professional body for energy industry. “In the past, the approach of most companies was to change their supplier. But once you have done that a few times you have exhausted the possibilities,” she says.

Improving energy efficiency will require changes to business processes, and in people’s behaviour. It also requires accurate data about the present situation, says Keith Webster. “You need measurement otherwise it’s guesswork,” he says. “That can be quite difficult for some companies – for example a retailer with a lot of small units,” he says.

Establishing the baseline data can throw up surprises, says Sarah Beacock. “One of the first questions you can ask is: are you being charged the right amount? You would be surprised at the number of companies that aren’t and don’t even notice,” she says.

But even when a company is billed correctly, the data may reveal trends or issues that prompt a rethink. Linking energy data to routine company metrics such as turnover, clients served, or tonnes of material processed can help an organisation recognise how it is performing and identify areas where savings can be made.

An energy management strategy will include an implementation plan with Key Performance Indicators (KPIs). A range of KPIs may be appropriate, most obviously the company’s reduction in energy consumption or emissions compared with internal benchmarks, or for comparable organisations. Other possible KPIs could be the proportion or ROI of energy expenditure committed to reducing consumption; improved awareness of staff; or the number of key personnel given energy training.

Embedding energy management in policy and culture

Winning support for the energy management strategy from staff is essential, and there are easy wins that help to demonstrate its effectiveness. “There are low cost and no cost ways of reducing energy consumption,” says Sarah Beacock. The obvious candidates – such as switching off heating and lighting when it is not needed – have been well aired, but there are plenty of other checks that can be carried out, she says. “Some companies use a lot of equipment that uses compressed air, for example. Leaks can waste a significant amount of energy,” she says.

Purchasing is an important part of an energy management strategy. The energy costs of running equipment may be significantly higher than the purchase price, which may justify spending more on efficient equipment. Companies may also consider contracting out energy provision via an Energy Services Contract, suggests the Carbon Trust. Typically, such contracts specify how much energy is likely to be needed for production, or to keep work premises heated, for example.

More ambitious strategies may include investing in technologies for generating energy on-site. This approach is better suited to some sectors than others, says Sarah Beacock. “Some supermarkets are active in this area. Part of the reason for this is that supermarkets typically build new sites, and it can be easier to integrate into a new build than retro-fit,” she says. Companies may be disinclined to invest in on-site generation because of the long pay-back times involved, she says.

Measuring progress will ensure the strategy is on track, but it may also throw up unexpected barriers, says Keith Webster. “It could turn out that by spending 10 million pounds a company can cut emissions by 10 per cent, but would have to spend 40 million pounds to cut emissions by 15 per cent, for example. It’s an emerging science, and we’re all learning,” he says.

Reporting progress can be an important way of motivating and rewarding the efforts of employees, says Sarah Beacock. In some companies this can take the form of financial incentives, she says. “It helps to make it part of the policy and culture of a company,” she says.

Key questions:

· What are we doing to tackle our energy costs?
· What data do we have on our energy consumption?
· Which director is best placed to lead our energy strategy?