ARTICLES

Scene Setting: A world on fire, a business community looking away In the wake of stark warnings from the Intergovernmental Panel on Climate Change (IPCC), the imperative for global nations and the businesses that operate within them to expedite climate action has never been more urgent. Yet, 2024 offered a sobering backdrop. More than 60 countries went to the polls, including major players like the US, UK, India, South Africa, Pakistan, and Russia, but climate concerns scarcely featured in manifestos. Global temperatures soared, making 2024 the hottest year on record, breaching the Paris Agreement’s critical 1.5°C threshold with an average global rise of 1.6°C. Instead of urgency, we saw political backtracking on commitments and rising public scepticism, as nationalist politics across the US, UK, and Europe reshaped climate discourse. The second Trump Administration has already reversed U.S. environmental policies put in place by the Biden Administration, Russia’s approach was deemed “critically insufficient” by the Climate Action Tracker, and developing nations like India and Pakistan are prioritising growth over emissions reduction. Against this political backdrop, businesses are increasingly echoing the same short-termism. Today in 2025, the focus has shifted toward low-value investments, short-term paybacks and high percentage RoIs, rather than the long-term investments required to align with net zero. The reality is clear: governments and businesses alike are kicking the climate can down the road at the very moment when decisive action is most needed. In our experience, this is a big mistake. Taking a long-term view on sustainability and particularly on decarbonisation offers significant long-term benefits for organisations, increases asset and company valuation and supports growth. The Rise of Short-Term Thinking in Business Business leaders have long understood that shareholder expectations and competitive pressures drive decision-making. However, what we are now seeing is a dangerous narrowing of focus. Instead of aligning investment and strategy with the multi-decade challenge of decarbonisation, many firms are prioritising projects with immediate financial returns, often within a 2-3 year window. This shift is particularly troubling because: The carbon reporting landscape is becoming more complex. Regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the UK’s Transition Plan Taskforce (TPT) framework, and the growing alignment with the International Sustainability Standards Board (ISSB) are forcing businesses to measure and disclose with greater transparency. Yet, disclosure does not equal action. The window for effective transition is closing. Science shows that emissions must peak before 2030 and fall by nearly half by 2035 to stand a chance of limiting warming. A short-term financial focus is incompatible with this timeline. Competitive positioning is at risk. While some businesses see sustainability as an “extra cost,” those that fail to transition risk stranded assets, supply chain disruption and reputational decline as customers and investors demand evidence of resilience. The Shift Away from Net Zero: Sentiment vs. Reality Across boardrooms in 2025, there is a noticeable cooling of enthusiasm toward net zero. Where once CEOs boasted about ambitious targets, today there is a recalibration, or in some cases, a retreat. Several factors underpin this shift: Economic volatility. Inflationary pressures, higher interest rates, national insurance increases and supply chain disruptions have led many firms to re-evaluate capital deployment. Long-term sustainability projects are being deferred in favour of “business continuity”. Investor pressure for short-term returns. Despite growing ESG funds and sustainable finance frameworks, mainstream investors remain focused on quarterly earnings. Executives are rewarded for near-term profit, not 2040 climate goals. Perceived political cover. With governments themselves slowing climate ambition, businesses feel less exposed when reducing or delaying their own commitments. This sentiment shift is dangerous. Net zero is not a PR exercise but a structural economic transition. Those companies stepping back today risk not only missing climate targets but also creating vulnerabilities within their operations and missing out on significant financial benefits. The Inadequacies of Short-Term Planning 1. Misaligned Investment Horizons Sustainability, by its very nature, requires investments that yield benefits over decades. Renewable energy infrastructure, enhanced electrical supply infrastructure, electrification of fleets, electrification of heat, circular economy design, or large-scale efficiency retrofits often require 7–15 years to fully deliver ROI. A focus on 2-3 year payback periods screens out precisely the projects needed to build resilience and future profitability. 2. Greenwashing Over Governance Short-termism often leads to “optics over outcomes.” Companies spend on branding, marginal improvements, or low-cost offsets instead of transforming business models. This erodes trust among investors, employees, and consumers alike. 3. Regulatory Lag Becomes Risk Exposure The complexity of carbon reporting and disclosure requirements is accelerating, not slowing. Businesses that fail to prepare for robust compliance regimes will face mounting costs, penalties, and reputational damage. 4. Failure to Secure Financing Sustainable finance is evolving. Lenders and investors increasingly evaluate climate transition plans and exposure to transition risks as part of their risk models. Companies unable to demonstrate credible long-term planning will face higher financing costs or lose access to capital entirely. The Case for Long-Term Sustainable Investment Insight from investment research consistently shows that sustainability and profitability are not mutually exclusive. In fact: Firms with strong ESG performance often deliver higher risk-adjusted returns. Studies by MSCI and Morningstar suggest ESG-aligned portfolios have outperformed benchmarks over the past decade . Company Valuation. Investing in on-site technology and infrastructure that will support carbon reduction and energy efficiency will increase asset values which in turn will support valuation multiples. Resilience pays. Companies that invested early in renewable energy and efficiency are now benefiting from reduced exposure to volatile fossil fuel prices. Investor sentiment is shifting. Even though short-term profit dominates headlines, global frameworks such as the UN COP26 initiated Glasgow Financial Alliance for Net Zero (GFANZ) are embedding climate criteria into long-term capital allocation. The lesson is clear: businesses that look beyond the immediate payback horizon will be better positioned to attract capital, manage risk, and capture growth opportunities. What Businesses Need to do to Reframe Their Approach To break away from short-termism, businesses need to embrace three core principles: 1. Transition Planning as Strategy Carbon disclosures should not be viewed as a box-ticking exercise. Instead, businesses should integrate them into strategic planning, aligning investment horizons, operational transformation and risk management around a clear net zero pathway. 2. Investment Criteria Must Evolve Payback periods need to be redefined. Businesses should apply broader lenses, incorporating avoided carbon costs, resilience benefits, brand equity, and future financing conditions. A total value return approach, not just a financial one. 3. Align Incentives with Long-Term Outcomes Boards and investors should tie executive compensation not just to annual returns but to delivery against long-term climate and sustainability targets.  The edenseven View: From Short-Term Gains to Lasting Value At its heart, the danger of short-termism is not just the failure to reduce emissions; it is the erosion of business competitiveness, resilience, and relevance. The narrative of “we cannot afford sustainability” is inverted. In reality, businesses cannot afford inaction. Our advice is clear: Set credible financial and environmental targets align ed with net zero. Reframe investment decisions with a long-term lens that includes financial, environmental, and reputational dimensions. Engage proactively with regulators and stakeholders to shape and anticipate compliance requirements. Embed sustainability into corporate culture, governance, an d reporting. Ensure that your data capture and reporting processes are robust, consistent, compliant and assured. By doing so, companies move beyond compliance and optics into a position of leadership, attracting capital, customers, and talent while securing long-term viability Conclusion: A Call to Leadership The world in 2025 is defined by contradiction. On one hand, the climate crisis accelerates, with record-breaking temperatures and increasingly complex carbon reporting frameworks. On the other hand, business sentiment retreats, focusing narrowly on short-term paybacks. This is unsustainable. Businesses that prioritise immediate returns over long-term resilience are missing an opportunity for long-term growth. By contrast, those that embrace sustainable investment as a core strategy will not only meet compliance requirements but also unlock profitable growth, resilience, and trust. Kicking the climate can down the road only makes the future more expensive and challenging for businesses, investors, and society alike. The choice is clear: chase shadows in pursuit of short-term gains, or invest in the foundations of lasting value . Whilst writing this insight article, I am reminded of a Greek Proverb: ‘A society grows great when old men plant trees whose shade they know they shall never sit in.’ If you are working in a sustainability role or hold a senior role within an organisation, and the topic of this insight article resonates with you, please come and talk to us at edenseven . We are a business of practical thinking individuals who have real life experience of working in and running businesses. We understand the pressures of hitting short-term targets, but also the huge benefits a well-structured decarbonisation strategy can have on a business. If you want to talk more, please give one of our team a call. Contact edenseven: phone: +44 1223 750335 email: info@edenseven.co.uk

In today's rapidly evolving business landscape, Environmental, Social, and Governance (ESG) factors have moved from niche considerations to critical drivers of long-term value, investor confidence, and societal impact. Companies are increasingly recognising the imperative to address their environmental footprint, foster positive social contributions, and uphold robust governance standards. However, despite this growing awareness and investment, a significant hurdle remains for many organisations: the common misconception that ESG can simply be an add-on . Too often, we see ESG treated as a separate department, a compliance checklist, or merely a side project tacked onto existing operations. This "bolt-on" approach , while seemingly an easy entry point, is a primary reason why even well-intentioned ESG initiatives ultimately fail to deliver meaningful, transformative impact. When ESG isn't woven into the very fabric of a company's strategy, culture, and decision-making processes, it becomes just another isolated function, lacking the power and resources to drive real change and unlock genuine value. This article will delve into why this approach falls short and, more importantly, outline how a strategic, integrated approach to ESG can lead to tangible business outcomes and sustainable growth. The Challenge "We have a sustainability team of 3 people trying to transform a company of 10,000." This candid observation highlights the fundamental flaw in many organisations' approach to ESG. When ESG is treated as an isolated function, disconnected from the core business, it struggles to gain traction and deliver real transformation. Uncovering the Shortcomings of This Approach ESG treated as a separate function rather than core business strategy Sustainability goals disconnected from business objectives and KPIs Executive teams struggle to weave ESG into existing strategic planning processes ESG initiatives compete against business priorities instead of enabling them Lack of integration creates silos and limits transformation impact Solution Framework: Making ESG a Strategic Enabler What's The Solution? To move beyond the bolt-on approach, ESG must be strategically integrated into every facet of the business. This shift transforms ESG from a compliance burden into a powerful driver of competitive advantage and sustainable growth. This means businesses need to: Embed ESG considerations into annual strategic planning and budget cycles Align ESG materiality assessments with business risk and opportunity mapping Integrate sustainability metrics into core business dashboards and board reporting Make ESG performance criteria part of business unit strategy reviews Connect ESG goals to market expansion, operational efficiency, and innovation pipelines Train leadership teams on ESG as competitive advantage, not a compliance burden How edenseven Helps: Enabling Integrated ESG Strategies Are your ESG efforts feeling disconnected and underperforming? edenseven closes the gap between ambition and execution. We combine deep technology understanding with real-world market experience to empower companies to not just meet climate goals, but to achieve sustainable, profitable growth . We design bespoke, data-driven sustainability strategies that are fully integrated into your core business, turning ESG into a powerful strategic enabler that unlocks new opportunities and mitigates risk, rather than a costly, isolated add-on. If you would like to find out more about how we can deliver powerful ESG strategies for your organisation, send us a message today!

As energy prices climb, staff costs rise, and local authority budgets tighten, leisure centres across the UK are navigating choppy waters. Nowhere is this pressure felt more acutely than in facilities with swimming pools. These highly valued public assets are also among the most energy-intensive parts of any leisure operation, with heating, ventilation, water treatment, pumps and lighting systems operating almost constantly. According to a Lords report, between 2021 and 2024, 77 local authority managed leisure centres across the UK closed, many citing increases in utility costs as a contributing factor. In 2023, a medium sized operator of public leisure centres announced that it's utility costs had increased from £8m in 2021 to an estimated £24m in 2024. Yet, despite these pressures, swimming pools remain a vital part of the health and wellbeing infrastructure in our communities. The challenge is to safeguard their future by reducing operational costs and environmental impact while maintaining, or ideally improving, comfort and safety for bathers. This is where a focused, evidence-led approach to energy efficiency becomes not just a sustainability initiative, but a financial and operational necessity. Understanding the Challenges Operators of swimming pools in the public and private sectors are facing a perfect storm: Rising utility costs : Volatile energy markets and increasing wholesale prices mean that the cost of running a pool is often the single largest line item in an operator's budget. Ageing infrastructure : Many leisure centres were built decades ago, with plant and building fabric now well beyond their optimal design life. Staffing pressures : Increased employer National Insurance contributions, inflationary wage growth, and recruitment challenges in technical and operations roles strain budgets further. Local authority cuts : For council-run sites or those operated under local authority contracts, budget reductions mean less funding for capital improvements, making it harder to invest in long-term savings. In this environment, energy efficiency isn't just about sustainability; it is core to financial survival. Ten Focus Areas for Energy Efficiency in Swimming Pool Operations edenseven have worked with a wide range of leisure operators across the UK, from large national chains, local authority and privately run leisure centres and single-site independents. While every facility is unique, there are ten consistent focus areas that can help reduce costs and improve user experience.  1. Pool Hall Air Handling Systems Air handling units (AHUs) that serve the pool hall are often some of the most energy-intensive pieces of equipment in a leisure centre. Retrofitting systems with high-efficiency heat recovery, variable speed fans, and improved controls can yield significant savings. Maintaining optimal humidity and air temperature also reduces condensation and improves comfort and reduces building degradation. 2. Pool Water Heating and Temperature Management Upgrading boiler systems or integrating renewable sources such as heat pumps can drastically reduce energy usage. Modern controls, temperature stratification management, and insulation of pipework all contribute to system efficiency. Managing water temperatures to an optimal level reduces the need for backwashing. Higher pool water temperatures lead to increased microbiological growth and a higher need for backwashing and chemical dosing. 3. Lighting Efficiency LED lighting retrofits, particularly in pool halls and plant rooms, provide rapid returns on investment. Coupled with intelligent lighting controls (e.g., occupancy sensors in changing villages and toilets, and daylight dimming), this can lower costs while enhancing visibility and safety. 4. Building Fabric and Insulation Improved insulation of walls, roofs, and glazing can reduce heat loss, especially in pool halls where thermal demand is constant. Draught-proofing and maintenance of seals around windows and doors are low-cost measures that can have a noticeable impact. 5. Water Treatment System and Backwash Optimisation Advancements in filtration and chemical water treatment technologies, such as glass-media filtration and UV treatment, can reduce the need for chemical dosing and water changes. Smart controls help optimise chemical usage, water balance, and backwash schedules, lowering energy and water consumption. 6. Pool Covers and Evaporation Management Heat loss due to evaporation is one of the largest energy drains in any pool. High-quality, well-fitted pool covers can reduce overnight losses dramatically. Automatic covers also improve usability and safety. Consideration should be given to using surplus heat from other parts of the operation or other local businesses if possible - data centres or industrial processes could prove to be ideal partners. 7. Smart Controls and Building Management Systems (BMS) Many leisure centres are under-utilising their existing BMS or lack one altogether. Integrating systems and enabling real-time monitoring and automated control can unlock both energy and operational efficiencies. 8. Renewable and Low Carbon Technologies On-site solar PV, air or ground source heat pumps, and battery storage can help offset rising energy prices. While capital intensive, these measures may qualify for grant support or financing options that align with local authority decarbonisation plans. 9. Staff Training and Customer Engagement Empowering staff with energy awareness training and involving them in optimisation routines often leads to behavioural changes that enhance the impact of technical interventions. From plant operators to lifeguards, everyone has a role to play. Engaging with customers to shower before using the pool reduces biological loading and the need for chemicals and backwashing, saving water, energy and chemicals. 10. Data Monitoring and Continuous Improvement You can't manage what you don't measure. Installing sub-metering, using analytics platforms like cero.earth, and setting performance benchmarks allows leisure centre operators to track progress and target interventions more precisely. This data-led approach drives accountability and long-term success. Planning the Journey: From Audit to Action There is no one-size fits all solution, but there is a process. Most successful transformations start with a detailed energy and plant condition audit, tailored to the unique operational profile of the site. From here, a prioritised action plan can be developed, balancing short-term wins with longer-term investments. Understanding funding routes for public sector managed facilities is also critical. Many operators overlook opportunities for central government or local authority-backed capital funding. Our team has supported clients in identifying and securing funding through schemes such as the Public Sector Decarbonisation Scheme and local net-zero initiatives. Crucially, implementation must be done in a way that minimises disruption to operations and maintains health and safety standards. That means working closely with operational staff, technical teams, and supply chains. A Sustainable Future for Swimming At edenseven we believe that every leisure centre and swimming pool in the UK can be part of a more sustainable future, one where communities continue to benefit from the physical and mental wellbeing that swimming pools and leisure centre facilities offer, without shouldering unsustainable costs. Our role as a sustainability consultancy is not to offer off-the-shelf solutions, but to partner with clients to understand their context, build the right roadmap, and support delivery at every stage. From strategic advice and audits, through to technical specification and project management, our credibility is built on a track record of helping leisure operators navigate these exact challenges. If you are responsible for a facility that includes a swimming pool, now is the time to act, come and talk to us . Rising costs are unlikely to reverse themselves, but with the right expertise and a structured approach, they can be managed and even turned into opportunities to improve performance and bather comfort, engage with you customers and improve your leisure centre’s environmental impact.

Managing Partner, Pete Nisbet, explains more: Over 80% of consumers say they're willing to pay more for sustainable products. But here’s the catch: trust is fragile . Too many claims are vague, inconsistent, or unverifiable. And consumers are noticing. Greenwashing isn’t just a PR problem, it’s a business risk. Transparency and accountability are no longer optional. Credible data, third-party verification, and measurable outcomes are essential. They don’t just protect you, they future-proof your business. Because once trust is broken, it’s hard to rebuild. Over half of consumers say they’d stop buying from brands they believe mislead on sustainability. That’s not just reputational damage, it’s lost customers, investment, and talent. Why does this matter? For People: When companies walk the talk, people benefit through better working conditions, local job creation, and access to more ethical, healthier products. Trust builds loyalty. Transparent, credible action forges stronger relationships between businesses and the people they serve. For Profit: Sustainability isn’t a cost, it’s a growth strategy. Sustainable products grew 2.7x faster than conventional ones between 2015 & 2019. Over $30 trillion is now invested in ESG assets, and is expected to reach $40 trillion by 2030. For the Planet: The climate crisis is happening now. We need bold, credible action, not just pledges. Science-based targets, circular design, and effective net-zero strategies are essential. Turning Ambition into Action: At edenseven, we design, build, and implement sustainability strategies that deliver. We consistently see these benefits for the clients we work with: reducing costs, proving impact to customers and investors, and cutting regulatory risk. Most importantly, we help minimise your impact on the planet. If you want to see how much of an impact we can make for your business, send us a message! We’ll help you turn genuine sustainability efforts into clear, credible results that future-proof your business and resonate with your customers & key stakeholders.

On March 5th, 2025, Sustainability and FM Leaders captured the attention of Business Directors. By signing their Energy Savings Opportunity Scheme (ESOS) Action Plans, they collectively endorsed a strong business case with tangible opportunities to reduce energy consumption and costs, all in preparation for the reporting period ending on December 5th, 2027. Few businesses would dispute the benefits of focusing on energy efficiency. It not only reduces operational costs and enhances profitability but also contributes to decarbonisation efforts - an increasingly important factor for sustainability-conscious employees, customers, and shareholders. Time to Unlock Savings From Your List of ESOS Measures As part of Phase 3, approximately 11,900 UK businesses submitted their ESOS reports in August 2024. These were followed by the required Action Plans on March 5th, 2025. Moving forward, businesses must submit annual progress reports in the final Phase 4 assessment on the December 5th, 2027. The latest government guidance indicates that, instead of using the ESOS portal, companies subject to SECR may "report progress annually via the energy efficiency narrative section in SECR reports." (This flexibility depends on parliamentary time and scrutiny). Regardless of the method, demonstrating effective management of the Action Plan’s implementation is both a regulatory requirement and a best practice." A Business Case Approach to Prioritise Interventions edenseven's extensive experience in supporting customers with ESOS compliance has been overwhelmingly positive. Businesses were given the opportunity to tailor their energy-saving actions to align with their unique needs and strategies. Notably, ESOS guidance doesn't mandate a minimum number of Measures in the Action Plan. However, there is a hint of a reputational impact from September 2025, when the Environment Agency will publish action plans, including of companies that have not committed to any Measure. A well-structured action plan can significantly enhance a company's credibility. Businesses have the flexibility to choose energy-saving initiatives that align with their specific needs, considering factors such as budget, lifecycle assessments, estate strategy, and fleet procurement cycles. By thoughtfully balancing these considerations with broader sustainability goals, companies can achieve meaningful progress while maintaining financial and operational stability. Expertise and Tools to Make it Happen in Phase 4 With Phase 4 of ESOS now fully underway, meticulous planning and well-supported investment decisions are essential. Companies must build robust business cases that integrate technical, regulatory, and financial considerations. In response to this need, edenseven has advanced its cero.earth carbon accounting & management platform by introducing a dynamic Project Forecasting and Management module. Project Forecasting and Management Module cero.earth ’s project tools serve as a comprehensive database of all potential projects, enabling real-time impact analysis, including: Cost and savings projections CO2 emissions reductions Energy Use Intensity improvements These tools enable businesses to forecast the financial costs and benefits of their approved measures within an agreed timeframe. For example, a CFO can review scenario options that highlight the financial and environmental advantages of initiatives such as HVAC retrofitting, solar PV installation, or even building decommissioning.  Monitoring Energy Performance for ESOS Requirement Together with SECR Reporting cero.earth is already configured to automatically generate Streamlined Energy and Carbon Reporting (SECR) reports. While the Environment Agency has outlined the content expectations for the December 2025 progress update, formatting requirements remain unspecified. edenseven remains agile in supporting customers with both insights and tools to streamline their reporting. Prepare for the Future with edenseven The transition to a more sustainable business model requires proactive planning and strategic execution. Get in touch today to learn how edenseven can support your journey towards compliance and sustainability excellence.

We’re delighted to continue collaborating with Paythru, supporting their commitment to sustainability through comprehensive ESG solutions. Our partnership includes edenseven's in-depth measurement and analysis of their Scope 1, 2, and 3 emissions, alongside strategic guidance to help them achieve their wider sustainability goals. Paythru, a UK-based technology company, specialises in cloud-based payment solutions for electric vehicle (EV) charging and parking. Their innovative platform simplifies the EV payment experience by decoupling the charging process from physical hardware, staying true to their philosophy: "Experience first. Technology second." As part of this ongoing partnership, Paythru is utilising cero.earth , carbon accounting and management platform, to accurately measure, track, and reduce their carbon footprint. ESG reporting goes beyond compliance - it drives real impact. By precisely measuring their environmental footprint, companies can set meaningful targets, monitor progress, and lead tangible change. We, at edenseven, are proud to support Paythru in demonstrating their ongoing commitment to sustainability and shaping a greener future for EV infrastructure.

What Do Your Scope 3 Emissions Have to Do with Inflation? Scope 3 emissions cover everything outside your direct operations - the carbon footprint of your supply chain, purchased goods, logistics, business travel, and more. The higher your Scope 3 emissions, the more energy-intensive your supply chain is. And the more energy-intensive your supply chain, the more vulnerable you are to rising costs. Think of it this way: High Production Costs- If your suppliers are heavily dependent on fossil fuels, their production costs are rising fast. Price Volatility- If your supply chain lacks efficiency and resilience, price volatility will hit you harder. Locking in High Costs- If you’re not actively engaging with suppliers to reduce emissions, you’re locking in long-term cost increases that could have been avoided. Without accurate Scope 3 data and a clear engagement strategy , businesses are leaving themselves open to higher prices, lower margins, and greater financial risk . Why Businesses Struggle to Tackle This A major challenge is that Procurement and Sustainability teams often operate in silos: Procurement teams focus on cost and supplier relationships but often lack deep sustainability expertise. Sustainability teams focus on compliance and decarbonisation but aren’t typically measured on financial performance. This disconnect means emissions reduction is rarely treated as a financial opportunity —when in reality, cutting carbon from your supply chain is also one of the most effective ways to reduce exposure to cost inflation. The Businesses That Get This Right Will Win Leading organisations are already taking action. They are: Gathering detailed Scope 3 emissions data to map out cost risks in their supply chain. Engaging suppliers to drive efficiency, reduce emissions, and lower costs. Building resilience by shifting towards lower-carbon, more cost-stable alternatives. The result? Lower long-term costs, reduced financial risk, and a competitive edge over those stuck with inefficient supply chains. This is not just about sustainability compliance —it’s about smart financial decision-making. If You’re Not Taking Action, You’re Losing Money Every business will feel the impact of rising supply chain costs—but not every business will be prepared for them. If you don’t have accurate Scope 3 emissions data and an effective engagement strategy, you are: Paying more than you need to for essential goods and services. Exposing your business to long-term cost inflation. Missing out on opportunities to build a stronger, more resilient supply chain. The sooner you act, the better—for your bottom line and for the planet. Is your business ready to take control of its costs? Get in touch today.

In 2023, the UK Government announced plans to introduce a carbon border tax from 2027, known as the UK Carbon Border Adjustment Mechanism (UK CBAM). This policy aims to prevent carbon leakage (the practice of shifting emissions-intensive production to countries with weaker climate policies) by ensuring that imported goods are subject to a comparable carbon price as those produced domestically under the UK Emissions Trading Scheme (UK ETS). Ultimately, the goal is to drive global reductions in industrial emissions and support the transition to a low-carbon economy. What is the UK CBAM? The UK CBAM will apply to imported goods in emissions-intensive industries. Starting in 2027, businesses importing iron, steel, aluminium, ceramics, cement, fertilisers, glass and hydrogen into the UK will be required to: Mandatory Disclosures: Submit reports detailing the carbon emissions embedded in their products (embodied carbon). The UK CBAM will require reporting to detail the Scope 1 (direct emissions from production), Scope 2 (indirect emissions from purchased electricity), and select precursor product emissions embodied in imported products. Levy Payments: Pay a levy based on the carbon pricing of the exporting country. If the exporting country has little to no carbon pricing, UK importers will be subject to a higher tax rate. This initiative encourages businesses to source materials from suppliers with strong carbon policies, incentivising sustainable production methods. How Will it Work? The UK CBAM will require importers to report and pay for the emissions embedded in their products at the UK ETS carbon price. If a foreign producer has already paid a carbon price in the country of manufacture, this may be deducted from the payment charge under UK CBAM to avoid double taxation. The UK Government has proposed to have four accounting periods per year to align with the standard practices used by other taxes. How Does the UK CBAM Differ from the EU CBAM? While both mechanisms share the same overarching objectives, there are key differences: Scope of Products : The EU CBAM applies to cement, iron, steel, aluminium, fertilisers, electricity and hydrogen, whereas the UK CBAM excludes electricity imports but also applies to additional products, such as ceramics and glass Implementation Timeline : The EU CBAM has already begun its transitional phase (October 1, 2023), requiring emissions reporting, with full financial enforcement starting in 2026. The UK CBAM, however, will take effect in 2027. What Can Businesses Do to Prepare? To limit exposure and ensure compliance with UK CBAM, businesses should take the following steps: Assess Supply Chains: Assess your exposure to UK CBAM by reviewing your suppliers to understand where imported products and materials are being manufactured and their carbon intensity. Identify other suppliers with lower-carbon intensities. Engage Key Suppliers: Work with your suppliers to encourage the adoption of low-carbon technologies and practices that will reduce the carbon intensity of manufactured materials. Consider switching suppliers and sourcing materials from UK-based companies that already comply with UK ETS, to reduce exposure. Comprehensive Emissions Reporting: Ensure you have sufficient emissions accounting and reporting practices in place, to minimise disruption caused by mandatory reporting. We recommend businesses understand their Scope 1, 2 & 3 emissions to identify high-impact activities and inefficiencies within their operations and their supply-chain. How We Can Help edenseven is a sustainability consultancy with a proven track record in designing and delivering data-driven sustainability strategies. Our cloud-based carbon accounting and management platform, cero.earth , simplifies compliance and reporting for businesses of all sizes. Why Choose cero.earth? Regulatory Compliance: Aligns with the Greenhouse Gas Protocol (Scope 1, 2 & 3) to ensure accurate and compliant carbon reporting. Expert Support: Backed by a team of analysts who guide you through the process, making compliance straightforward. Seamless Data Integration: Easily upload and export data in required formats with our integrated report building tools, for effortless reporting and disclosure. Enhanced Credibility: Track and disclose detailed emissions data to investors and stakeholders with confidence, ensuring enhanced credibility. Reduce Costs: cero.earth identifies high emissions sources and inefficiencies within your operations and supply chain, enabling you to make informed decisions about where to implement impactful change, saving you cost with CBAM and ongoing operations. Net Zero Project Tracking: Design, implement and track your carbon-reduction projects and leverage our Net Zero Carbon (NZC) dashboard to visualize your pathway to Net Zero and set strategic carbon reduction targets. Flexible Packages: cero.earth offers tailored packages to suit all businesses. For businesses seeking a hands-off experience, our Strategic package allows us to handle the entire carbon accounting and compliance process on your behalf, ensuring a seamless and fully managed approach, allowing you to focus on what you do best. Prepare Your Business for the Future With the UK CBAM on the horizon, businesses must take proactive steps to manage their carbon impact and ensure compliance. cero.earth by edenseven, provides the tools and expertise needed to navigate these changes with ease. Start your journey towards sustainable and compliant operations today. Get in touch today to learn more about how we can support your transition and comply with the latest sustainability regulations.