Attitudes to EU emissions regulations revealed

The report, from LogicaCMG, illustrates that although many manufacturers are aware of the legislation, action has been slower than words. For although the EU ETS is a board level issue at 66 per cent of companies questioned, only 36 per cent have so far set a budget to move to full compliance.

This is surprising, considering that some 40 per cent expect that the ETS will have a negative impact on their profits - only 16 per cent of those questioned expect it to have a positive impact. And with seven out of ten firms believe that production departments and facilities will be the areas most affected by the new regulations, manufacturers should be acutely aware of the regulation.

The EU Emissions Trading Scheme (EU ETS) is one of the policies being introduced across Europe to tackle emissions of carbon dioxide and other greenhouse gases and combat the serious threat of climate change. The scheme comes into force on 1 January 2005.

Levels of knowledge of the scheme are low for a regulatory change of this scale. Across Europe, only one third are very well informed, slightly higher in Germany and Spain, and three out of every 10 companies admit tobeing poorly informed. These levels indicate a significant lack of in-depth knowledge for a scheme with such far-reaching impact, just a few months away from its intended start date.

Overall half the companies anticipate a prompt start to the ETS and three quarters expect it to be operational within 12 months of the proposed start date. Although only 1 in 5 companies think the format and detail of the ETS will stay exactly as it is now, few anticipate major modification. Furthermore, the vast majority - 85 per cent - believe that governments will enforce the scheme.

Companies are not only nervous about the impact of the ETS on profitability, but alsomany seem focused on how their customers will react if they fail to comply. Only onethird of companies do not feel this will be an important issue for their customers with afurther 17 per cent unsure about the stance their customers will take.

Faced with feelings of uncertainty, worries that profitability will suffer and concerns overcustomer reaction, most companies are now focused on taking appropriate action. Hardly any companiesare seriously considering doing nothing and just paying the fines. Across Europe nearly all companies - 91 per cent - intend to undertake the measures necessary to fully.

But two thirds of the companies that have not set a budget give the reason that it is too early.This further underlines the feeling that many companies are rather too complacentand are not allowing enough time to scope out and implement any changesrequired to prepare for the scheme.

In the UK, the environmental regulator has cautioned food and drink manufacturers that if they fail to comply with essential environmental legislation they risk hefty fines. To raise awareness of new regulations, a website has been launched to help small businesses understand their environmental obligations.

The NetRegs website​ was set up to provide essential reading for all companies involved in the processing and preserving of all types of food and drink, from the receipt of raw materials to storage of the final product. The site covers everything from the production, processing and preserving of meat and poultry and the manufacture of dairy products and beverages to fish and shellfish processing and the manufacture of prepared animal feeds.

LogicaCMG says that it should come as no surprise to find most companies at least claiming to be committed to taking the actions needed to fully comply. However, there is still too much complacency. Just a matter of months from the proposed start date levels of detailed knowledge of the scheme remain remarkably low and only one third of companies have allocated a budget to facilitate the changes they have identified as necessary.

LogicaCMG​ commissioned the industry survey to assess the preparedness ofEuropean companies ahead of the introduction of the EU Emissions Trading Scheme(ETS) and perceptions of the effects of the scheme on their business. In April and May 2004, 250 detailed telephone interviews were carried out, by independent researchers Coleman Parkes, with directors and senior managers in big CO2-emitting companies across seven EU countries.

LogicaCMG, together with environmental partner CarbonSim, have developed acomprehensive emissions inventory and compliance management solution, calledEmissions logic. The solution allows corporations to quantify and analyse their CO2emissions, to track their compliance against the EU obligation, to evaluate alternativeemission reduction strategies and to generate regular progress and audit reports.