Business Decarbonisation Support London Borough of Havering May 2022
Business Decarbonisation Support
Report For
Acknowledgements
The London Borough of Havering and businesses in the Borough.
Our thanks to the London Borough of Havering for support and guidance. Specifically, we would like to acknowledge the contributions from:
Prepared By
Louise Warner Howard Swift
Zoe Boulderstone, Ummar Kasujee,
Cynthujaa Satchithananthan
Jessica Fairbrother, Elena Holtkotte
Daniel Moore Nick Kingham
Approved By
Jodie Gutteridge
Eunomia Research & Consulting Ltd 37 Queen Square Bristol BS1 4QS United Kingdom
Alex Massie (Project Director)
Tel +44 (0)117 9172250 Fax +44 (0)8717 142942 Web www.eunomia.co.uk
Disclaimer Eunomia Research & Consulting has taken due care in the preparation of this report to ensure that all facts and analysis presented are as accurate as possible within the scope of the project. However, no guarantee is provided in respect of the information presented, and Eunomia Research & Consulting is not responsible for decisions or actions taken on the basis of the content of this report. Copyright © 2022. Eunomia. All rights reserved.
Business Decarbonisation Support
Version Control Table Version
Date
Author
Description
V1.0
23/03/22
Eunomia
First draft (issued to client)
V2.0
04/04/22
Eunomia
Second draft (issued to client)
V3.0
07/04/2022
Eunomia
Third draft (issued to client)
V3.1
19/05/2022
Eunomoa
Final draft (issued to client)
Business Decarbonisation Support
Executive Summary
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Business Decarbonisation Support
Background In 2019, the UK announced its intention to become ‘Net Zero’ by 2050, requiring it to drastically reduce its greenhouse gas (GHG) emissions as compared to 1990 levels. GHGs describe the group of gases (such as carbon dioxide – CO2 – or methane) that are responsible for the greenhouse effect; the high concentration of GHGs in the atmosphere caused by human activity are the drivers of anthropogenic (human-induced) climate change. Net Zero refers to refers to a state in which the GHG emitted / added to the atmosphere are balanced by the removal of the equivalent volume of GHG from the atmosphere. The UK Net Zero target is now legally binding. In August 2021, The London Borough of Havering (‘Havering’) announced its intention to be ‘carbon neutral’ by 2040 and to measure and report GHG emissions on a regular basis. Carbon neutrality refers to a state in which the volume of GHG emissions is compensated for by the equivalent volume of offsetting activities (e.g. tree planting), maintaining the overall balance of GHG in the atmosphere. The Havering Climate Change Action Plan (HCCAP) was approved by Cabinet on 10 November 2021 and outlines all key initiatives, goals, and objectives to meet the Council's carbon neutral ambitions by 2040. This will require the Borough to take action to decarbonise (i.e. reduce GHG emissions) and find a way of facilitating carbon reduction activities of the broad spectrum of businesses in operation. This report outlines key support, advisory services and low-carbon, money-saving tips available to businesses situated in Havering to kick-start this necessary decarbonisation journey. It also provides an overview of the business sectors with the highest emissions in the Borough to allow for targeted support. A glossary of key terms is included in the Glossary.
Approach The London Borough of Havering commissioned Eunomia to identify how best local businesses could be supported to decarbonise. Key aspects of the analysis included:
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•
Providing sector specific information to support decarbonisation of key emitting business sectors
•
Identifying and analysing sectors in Havering with the highest greenhouse gas (GHG) emissions
•
Providing a list of business support programmes which represent the greatest potential for positive impact
Business Decarbonisation Support
Business Advice Directory This is a short guide to direct businesses to the best resources for decarbonising, including tips and ideas to get started. The purpose of the information within this guide is to support businesses with: •
A list of support services which could help businesses to decarbonise
•
General and sector specific advice and guidance for decarbonisation
•
A checklist of key actions businesses can take to decarbonise, with indications where this can be cost-effective.
Emissions by Business Sector Sectoral analysis of Havering’s businesses was undertaken to help identify the highest emitting sectors in terms of GHG. The analysis of GHG emissions attributed to businesses in Havering combines the latest national industrial emissions data and local employee population information, to provide top-down estimates of current GHG emissions for business sectors in Havering. Top 5 GHG emitting sectors:
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•
Transportation and storage
•
Water supply; sewerage, waste management and remediation activities
•
Manufacturing
•
Construction
•
Wholesale and retail trade; repair of motor vehicles and motorcycles
Business Decarbonisation Support
Table of Contents Executive Summary .........................................................................................................................................2 Background ............................................................................................................................................... 3 Approach ................................................................................................................................................... 3 Business Advice Directory ............................................................................................................. 4 Emissions by Business Sector ........................................................................................................ 4 1.0 Introduction .............................................................................................................................................. 6 1.1 Background ........................................................................................................................................ 7 1.2 Context ............................................................................................................................................... 7 1.3 Havering Business Profile ............................................................................................................... 8 1.4 Report Structure ............................................................................................................................... 9 2.0 Business Advice Directory ................................................................................................................. 10 2.1 General Support Sevices .............................................................................................................. 12 2.2 Advice and Guidance for Decarbonisation............................................................................... 14 2.2.1 General Advice for Key Emission Sources ..................................................................... 14 2.2.2 Sector Specific Advice ....................................................................................................... 21 3.0 London Borough of Havering Business Emissions ........................................................................ 27 3.1 Business Emissions ........................................................................................................................ 28 3.1.1 LB Havering Business Profile ........................................................................................... 28 3.1.2 Sectoral Emissions .............................................................................................................. 30 3.1.3 Key Findings ......................................................................................................................... 35 3.2 Implication for Supporting Decarbonisation ............................................................................ 36 3.2.1 Sectoral Support .................................................................................................................. 36 3.2.2 SMEs vs. Large Businesses – What is the Balance and where does the responsibility lie? ........................................................................................................................... 36 3.2.3 Recommended Approach .................................................................................................. 38 3.3 Current Business Social Responsibility Programmes ............................................................. 39 3.3.1 Next Steps for Havering .................................................................................................... 44 4.0 Appendix ................................................................................................................................................ 45 4.1 Glossary ........................................................................................................................................... 46 4.2 Emissions by business sector - Method .................................................................................... 50 4.2.1 Objectives ............................................................................................................................. 50 4.2.2 Estimates of GHG Emissions in the London Borough of Havering .......................... 50 4.2.3 Methodology Limitations .................................................................................................. 51 4.2.4 Tables .................................................................................................................................... 52
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Business Decarbonisation Support
1.0
Introduction
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Business Decarbonisation Support
1.1 Background Eunomia was commissioned by the London Borough of Havering (‘Havering’) to undertake research to identify the highest carbon emitting business sectors in the area and suggest how businesses in these groups could be best supported to decarbonise. Eunomia was also tasked with developing a list of resources, guidance, and support services to assist businesses through their decarbonisation journey within the wider context of Havering’s ambitions of reaching the 2040 carbon neutrality goal for the Borough. This report summarises the outputs of this research.
1.2 Context In August 2021, Havering announced its intention to be carbon neutral by 2040 and to measure and report greenhouse gas emissions on a regular basis. The Havering Climate Change Action Plan (HCCAP) was approved by Cabinet on 10 November 2021 and outlines all key initiatives, goals and objectives to meet the Council's carbon neutral ambitions by 2040. The Borough has taken some progressive steps in developing an enabling environment for businesses. For example, the CEME campus located in Rainham is home to over 100 businesses, fostered through training programmes, access to resources and information. The Borough is also home to low-carbon technology investments, such as the Cranham Solar Farm and London’s first established hydrogen fuel station in Rainham. The challenge of tackling the climate emergency is like no other. It will require every part of the economy and society to play its part. Yet with this challenge comes opportunity for businesses to adapt, innovate and capitalise on the growth of the green economy. The low carbon and renewable energy (LCRE) economy is worth around £44.5 billion, having grown 6.8% from £41.7 billion in 2016. Analysis reveals that more than 1.2 million people are employed in the low carbon industry – more than four times greater than those employed in the manufacturing industry.1 The UK Government’s own recently published Net Zero Strategy: Build Back Greener forecasts an additional 500,000 jobs and £90 billion of private sector investment by 2030. However, whilst many corporates are already seizing the initiative to tap into opportunities emerging as part of the green economy, some small and medium-sized enterprises (SMEs) are still grappling with what Net Zero and carbon neutrality means in practice and how to get started on decarbonisation. With the majority of businesses in Havering being small in scale, targeted support is required to provide businesses with the resources and tools to allow them to make informed decisions on their decarbonisation journey.
https://kmatrix.co/wpcontent/uploads/2021/08/kMatrix_LCEGS_UK_2007_08_to_2020_21_with_forecast_2025_26_final.pdf 1
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Business Decarbonisation Support
1.3 Havering Business Profile This section provides a brief snapshot of businesses and their emissions in Havering. A more detailed analysis of Havering’s business profiles and sources of emissions can be found in Chapter 3.0. As can be seen in Figure 1-1, Havering employs a much larger proportion of people in Micro businesses than the UK average, demonstrating that micro businesses will be a very important group to support to enable decarbonisation to occur.
Figure 1-1: Employees by Business Size
Source: Business counts data from BEIS
Looking at the business sectors generating the most emissions in Havering is also important for understanding where most action is likely to be needed. Table 1-1 shows the top 10 emitting sectors in the Borough, highlighting land transport, waste collection and treatment, and manufacture of non-metallic mineral products as the biggest sectors.
Table 1-1: Havering’s Top 10 Highest Emitting Sectors (2-digit Division) SIC (2 digit) Division
Number of
Total
Businesses
Emissions (ktCO2e)
49: Land transport and transport via pipelines
335
102
38: Waste collection, treatment and disposal activities; materials recovery
30
43
23: Manufacture of other non-metallic mineral products
15
35
43: Specialised construction activities
1,755
34
37: Sewerage
5
28
50: Water transport
15
27
47: Retail trade, except of motor vehicles and motorcycles
665
21
46: Wholesale trade, except of motor vehicles and motorcycles
355
19
42: Civil engineering
145
16
86: Human health activities
235
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Business Decarbonisation Support
Of course, total emissions do not give the entire picture. Whilst ‘Manufacture of other nonmetallic mineral products’ and ‘Specialised construction activities’ have almost the same total emissions attributed to them, the number of businesses associated with these emissions is vastly different (15 compared to 1,755). This demonstrates that attempting to reduce these emissions will be very different in practice between these sub-sectors. When the average amount of emissions for each business is assessed, a slightly different Top 10 emerges as shown in Table 1-2 below.
Table 1-2: Havering’s Top 10 Business Sub-Sectors by Emissions Intensity Number of
Average Emissions per
Businesses
Business (ktCO2e)
37 : Sewerage
5
5.52
23 : Manufacture of other non-metallic mineral products
15
2.35
50 : Water transport
15
1.78
38 : Waste collection, treatment and disposal activities;
30
1.43
5
1.16
35 : Electricity, gas, steam and air conditioning supply
10
1.03
22 : Manufacture of rubber and plastic products
20
0.41
10 : Manufacture of food products
20
0.37
49 : Land transport and transport via pipelines
335
0.31
27 : Manufacture of electrical equipment
10
0.30
SIC (2 digit) Division
materials recovery 21 : Manufacture of basic pharmaceutical products and pharmaceutical preparations
Overall, there are low numbers of businesses registered in many of these intensive sectors. For example, the top three categories are dominated by 35 businesses and therefore support programmes can be very effective with only a small number of businesses needing to be engaged. However, whilst targeting the most intensive sectors can lead to dramatic reductions, it is often the case that many of these sectors are some of the hardest to decarbonise. By contrast, it is also possible to focus on easier to decarbonise sectors (for example retail), but which have larger number of businesses, making engagement and support more challenging.
1.4 Report Structure This report first provides a directory of resources and advice for businesses, and highlights examples of existing corporate responsibility programme examples from businesses in Havering to serve as inspiration for other businesses in the Borough. The report then identifies key business sectors with the highest emissions in Havering based on the latest available data to allow the Council to target its support towards high emitting sectors and business segments. A glossary of key terms can be found in Glossary for reference.
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Business Decarbonisation Support
2.0
Business Advice Directory
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Business Decarbonisation Support
Welcome to our guide for decarbonisation ideas for businesses in the London Borough of Havering. This is a short guide we have developed to direct businesses to the best resources for decarbonising and also some ideas to get started. The recommendations we have included are tailored towards the profile of businesses found in the Borough (for further information, see 3.0). The purpose of the information within this guide is to support businesses with: •
A list of support services which could help businesses to decarbonise
•
General and sector specific advice and guidance for decarbonisation.
The guide is structured as follows: 1. General Support Services (2.1) includes links to support services that offer support and guidance to businesses. 2. Advice and Guidance for Decarbonisation (2.2) offers general advice to reduce emissions from key sources and industry specific advice. i. General Advice for Key Emission Sources (2.2.1) includes general advice to help businesses minimise emissions from transport, energy, materials, water and waste. ii. Advice for specific industry sectors (2.2.2) includes specific advice for:
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•
Manufacturing businesses
•
Construction
•
Transportation & storage businesses
•
Water supply, sewerage, waste management and remediation activities
•
Electricity, gas, steam and air conditioning
•
Retail-based businesses
•
Hospitality-based businesses
•
Office-based businesses
Business Decarbonisation Support
2.1 General Support Sevices Table 2-1: General Support Services for Businesses Support type
Carbon footprinting tools Business support programmes/ consultancy
Support Service
Summary
Website
Spherics
Provides a breakdown of carbon usage that can be updated in real time because it is linked to business spending.
www.spherics.io/sme
Normative
A carbon footprinting tool to help calculate scope 1-3 emissions.
https://normative.io/
Better Futures+
The Mayor of London is providing businesses across the capital with access to free business support to help drive responsible recovery and growth.
london.gov.uk/what-wedo/environment/betterfutures
Some businesses will be eligible to apply for half a day with a specialist consultant to review net zero plans and receive sector specific advice. GOV.UK
Funding is available to help UK businesses become greener as part of the Government’s commitment to reach net zero emissions by 2050.
www.gov.uk
Carbon Literacy Training
Maintain skills and education throughout the organisation to ensure climate actions are rolled out effectively. For example, training programmes for all staff and new joiners on the importance of achieving net zero carbon emissions.
https://carbonliteracy.com
Networking groups
Peer Networks
This organisation matches businesses with others in the same sector so that businesses can pool ideas and share successful strategies in decarbonising.
www.peernetworks.co.uk
Networking groups
CEME
Offer fully-funded business support programmes and online courses. They also organise and run a number of networking events for businesses in London.
www.ceme.co.uk/businesssupport
Grants/funding
Training
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Business Decarbonisation Support
General Support Services for Businesses - Continued Support type
Support Service
Summary
Website
BeeNetZero
Simple and easy to use 10 step guidance ‘Your Journey to Net Zero’ covering steps SMEs can take to reduce carbon emissions.
https://beenetzero.co.uk
Business Climate Hub
The SME Climate Hub provides tools and resources to help SMEs take concrete steps towards climate action. The site has a friendly user interface and allows SMEs to easily filter available resources by broad category, action and progress cycle stage.
businessclimatehub.org
Business Growth Hub
BGH has online resources which offer guidance on a range of topics including business strategy development, operational efficiency, innovation and sustainability. The Business Growth Hub plans on publishing a comprehensive sector focused guide on resource efficiency for businesses, and we suggest checking the website for further information.
www.businessgrowthhub.com
Circular Revolution
Circular Revolution offers a blog that shares information with businesses on what a circular design is and what ‘circular economy’ means for businesses going forward.
www.circularrevolution.wales
Innovation Support Directory
The Innovation Support Directory is an online guide bringing together details of the range of innovation support schemes, programmes, and organisations available for London’s climate innovation community.
https://climateinnovators.uk/
London Business Hub
This organisation has a wealth of resources and advice on decarbonisation and sustainability that is suited for businesses in London. Among their offerings are action frameworks for various businesses.
www.businesshub.london
ReLondon
This is run by the Mayor of London and offers resources on how to manage waste and implement circular economy models. They offer business advice and occasionally offer grant funding as well for programmes in waste reduction and circular economy.
https://relondon.gov.uk/
Online guidance/ advice
Online guidance/ advice
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Business Decarbonisation Support
2.2 Advice and Guidance for Decarbonisation 2.2.1 General Advice for Key Emission Sources This section provides general recommendations and sources of information and guidance which will help your business decarbonise by minimising emissions from transport, energy, materials, water, and waste. Each recommendation has been given an estimated cost and resource intensity / effort score:
Table 2-2. Scoring explanation Icon
Explanation of estimated cost and resource intensity scoring This icon is for the approximate cost of implementing each recommendation. This is just an indicative cost and will likely vary depending on your business. We have scored each tip on a scale of 0 to 5 pound signs where 0 shows a recommendation that is unlikely to cost you anything except your time and 5 is a high cost or investment. These scorings are approximate and based on our best judgement – we think they are best used comparatively. Make sure you do your own research to understand likely costs in detail. This icon is for the approximate effort needed to implement each recommendation. This is intended to be indicative of roughly how much time a recommendation will take you to implement and will change depending on your business. We have scored each tip on a scale of 1 to 5 clock faces where 1 shows a tip that is quick to implement and 5 shows one that probably needs quite serious planning.
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Business Decarbonisation Support
2.2.1.1 Transport Checklist
Advice/ guidance Reduce transport where possible (i.e., arrange for staff to work remotely and utilise video calls) and be more efficient with journeys if they are essential (i.e., set up a lift sharing scheme for commuting staff). Sign up to the cycle to work scheme. Promote the electric car salary sacrifice scheme. Develop a travel plan for your business. Sign staff up for subsidised fuel-efficient driver training. Install cycle parking on your premises and provide a few company bikes that can be used by employees to get to meetings or site visits. Ideally, these would be folding bikes that could be taken on trains or trams for visits that are further away. Deliveries can be carried out by zero-emissions logistics providers who use bikes to transport goods or invest in cargo bikes if you carry out local deliveries yourself. Install electric vehicle (EV) charging points on your premises (including fast-charging stations). The Government will pay up to 75% of the installation cost, capped at £350/station for up to 40 charging points on one site. If you have company vehicles, replace them with an electric alternative. A Government grant can take £3,000 off the cost of a small van and £6,000 off a large one.
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Estimated cost
Estimated resource
Business Decarbonisation Support
2.2.1.2 Energy Checklist
Advice/ guidance Remind employees to turn machines or lights off when not in use and close windows / doors when the heating or air conditioning is on. Check radiators and thermostats regularly so you know if they’re on. If you rely on timers for heating, you may end up heating your space unnecessarily, especially between seasons. Install occupancy sensors to turn your lights off automatically. Switch your energy provider to one that offers 100% renewable energy. If you’re replacing old appliances, look for energy efficiency labels and make sure to choose Arated products wherever possible. If your business has draughty windows and doors, think about using draught excluders to stop unwanted cold air coming in. You can fit draught curtains to doors that can’t be closed. You can also explore applying for energy saving grants. If you are buying machinery, get it from the world leading Energy Technology List created and monitored by the UK Government. Ask an experienced builder to inspect your business and recommend energy efficiency measures. When looking for new premises, check the Energy Performance Certificate (EPC) and look for an A or B rating. Look out for BREEAM (Outstanding, Excellent or Very Good) and SKA (Gold or Silver) ratings for buildings and fit outs. For space heating in open and high spaces like workshops, buy directional infra-red heaters (these heat people rather than the air). Destratification fans (these keep the heat circulating rather than gathering in the roof space) can also make a big difference for more open spaces. You can get up to 75% off the purchase and installation costs of electric charging points from the UK Government Workplace Charging Scheme.
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Estimated cost
Estimated resource
Business Decarbonisation Support
Energy - Continued Checklist
Advice/ guidance Replace your gas boiler, or other gas heating, when it starts to be problematic/inefficient. A local specialist will identify affordable and sustainable options such as heat pumps.
Install solar panels to generate your own green energy on site. If you generate more than you need, you might be able to sell the excess back to the national grid.
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Estimated cost
Estimated resource
Business Decarbonisation Support
2.2.1.3 Materials Checklist
Advice/ guidance Pledge to reduce single use plastic items and become a member of the UK Plastics Pact. Go paperless with digital alternatives to receipts and internal documents. If you need to use paper, use recycled paper from sustainable sources. Look for the label. If you want to be ambitious, go for FSC (Forest Stewardship Council) 100% as this is the most sustainable. If you have unwanted or unneeded equipment, donate, or sell it to someone who could use it. Buy refurbished or fully remanufactured items such as furniture, IT equipment, or tools. If you need occasional access to equipment that you don’t currently own, hire it instead of buying it – or look to share with other local business. There are various tools and equipment sharing and peer to peer rental apps (e.g. Olioex and Warp-IT for equipment and furniture, for example); alternatively, you can set one up locally. Instead of replacing items when they’re broken or worn, get them repaired or refurbished. Switch your suppliers to ones that have similar ambitions around climate change (e.g., have a NetZero strategy) and sustainability. Take the necessary steps to comply with the Plastic Packaging Tax which is being brought in from April 2022.
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Estimated cost
Estimated resource
Business Decarbonisation Support
2.2.1.4 Water Checklist
Advice/ guidance Consult your local water supplier (e.g. Anglian Water) for more advice on saving water. Add signs to remind employees and customers to turn off taps once they’ve finished using them (if not automated). If you have outside space, install a water butt to collect rainwater. You can use this for things like watering plants or washing cars at zero cost. Purchase appliances that use less water – check the label (part of the A to G Energy Label for things like dishwashers and washing machines). Although this can cost a little more upfront, it will soon pay back through ongoing savings. Prepare your business for winter by insulating tanks, cisterns, and external pipework. This prevents any potential costs from damage and leakage due to freezing temperatures. A plumber can help you with this. If your premises are being refurbished, or you are moving into a new-build, consider installing rainwater harvesting tanks or tanks to allow the diversion of grey water (water from sinks, washing machines and dishwashers) to provide non-potable services like flushing toilets or washing vehicles.
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Estimated cost
Estimated resource
Business Decarbonisation Support
2.2.1.5 Waste Checklist
Advice/ guidance Audit the waste that you create. Depending on your business this might mean weighing food waste, tracking the weight of residual (general) waste, or just looking in your bins to see what is there. Do this once every few months to help you track progress. Check how full your bins are on average when they are emptied. If they are less than 2/3rds full you should ask your waste contractor to either provide smaller bins. That will save you money and also reduce waste collection vehicle movements, helping the environment. Implement recycling bins in your office/ on your premises. Think about using equipment sharing, reuse and waste exchange platforms such as Olioex and Warp-IT for IT and furniture, for example. Provide Terracycle recycling point for customers to return their harder-to-recycle packaging such as crisp packets, cosmetics containers, and pharmaceutical tablet packs. Ask your suppliers if they can deliver goods to you in returnable packaging such as refillable containers. If your current suppliers can’t, there may be others who can. Check to see if your Council offers fresh food collection services for local businesses (e.g. through emailing CommunityHubs@havering.gov.uk). If not, you will need to look at working with a private food waste collection company to safely dispose of your food waste to prevent it from going to landfill. Choose suppliers that take back products at end-of-life for reuse or recycling. Note that e-waste, such as phones or old computers, should (as a default) be taken-back and recycled free of charge by the supplier (if you haven’t signed away that right – check supply contracts before signing). Partner with other local businesses to create joint collection schemes for waste and recyclable materials. This might consist of having a shared set of recycling bins or a shared Terracycle point, that can bring together several similar businesses in one small area. This will reduce costs, disruption and pollution in the area as fewer collection vehicles will be needed.
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Estimated cost
Estimated resource
Business Decarbonisation Support
2.2.2 Sector Specific Advice This section looks at specific guidance and advice to help some of the top emitting sectors identified in section 3.0 to decarbonise.
Table 2-3: Sector Specific Advice for Businesses Sector
Advice/ Guidance
Link
Manufacturing
The Manufacturing Growth Programme is the UK’s largest business support programme for SME Manufacturers. It supports SME Manufacturers to grow by identifying, understanding, and removing barriers to growth. The offering is tailored to match each individual business, and includes: • A dedicated, experienced, Manufacturing Growth Manager to provide on-going support • A comprehensive business diagnostic tool specifically designed for manufacturers • Connections with external experts to implement changes • Funding for a percentage of the cost of implementing an improvement project.
Manufacturing
A platform that offers specific manufacturing advice on how to reach Net Zero. They have a number of tailored
The BEE,
tools and methods for reducing the impacts of manufacturing businesses. The rates for this service are
Manufacture 2030
Growth Programme , UK Government
competitive. Read the UK Government’s Industrial Decarbonisation Strategy.
GOV.UK
Your waste products may be useful for other local businesses or the local community. Advertise through
Freecycle,
physical signs and online apps (such as Facebook Marketplace, Freecycle, Gumtree and Globechain) that there
Globechain
are ‘valuable’ spare materials that people can take for free. Construction
Read out ‘Net zero-building: Where do we stand?’ (World Business Council for Sustainable Development -
WBCSD, Royal
WBCSD) and ‘Decarbonising construction: building a new net zero industry’ (Royal Academy of Engineering).
Academy of Engineering
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Sector Specific Advice for Businesses - Continued Sector
Advice/ Guidance
Link
Construction
The UK Green Building Council (UKGBC) has developed a framework definition for net zero carbon buildings which provides clarity on how to achieve net zero carbon in construction, and also provides a feasibility study into the design, delivery and costs of new net zero carbon buildings.
Framework,
London Energy Transformation Initiative (LETI) has developed a climate emergency design guide which explains how new buildings can meet the UK’s climate change targets.
LETI
The Royal Institute of British Architects (RIBA) 2030 Climate Challenge (Version 2, 2021) sets voluntary operational energy and waste use and embodied carbon performance targets for architects in the construction sector. The report also includes a checklist to help architects meet the Challenge’s targets.
RIBA
Construction Online offers some helpful tips and guidance to get started on embedding sustainability into construction.
Construction Online
Attend events and conferences, such as the Construction News’ Decarbonising Construction conference (June 2022), which provides the opportunity to learn about the steps you can take to reduce emissions in the construction sector.
Decarbonising
Read the UK Governments Decarbonising Transport Strategy.
GOV.UK
The National Grid facilitates and drives the transition to cleaner transport in the UK and has a ‘Decarbonisation of Transport’ team which can answer any questions.
National Grid
Transportation &
Feasibility study
Construction conference
Storage Businesses
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Business Decarbonisation Support
Sector Specific Advice for Businesses - Continued Sector
Advice/ Guidance
Link
Transportation &
Consider freight consolidation to reduce emissions from the transport of goods. Freight consolidation is where many suppliers have goods delivered directly to a place (consolidation centre or delivery hub) where it is stored and then when needed is combined into a single fuller load for the onward journey, such as into the city centre.
Travel West
Read the International Transport Forum’s ‘Decarbonising Transport Initiative’. As a think tank, the forum publishes resources and materials and convenes policy makers. It regularly publishes a decarbonisation newsletter and think pieces around decarbonising your transport operations, so worth keeping an eye on.
International
The ‘Transport Climate Action Directory’ by the International Transport Forum provides a list of 80 practical mitigation measures backed by evidence on the impact on GHG emissions to allow you to assess the effectiveness of each measure and their suitability for your business.
Transport
‘Eco-safe’ driving assessments offered as part of the practical driving test to drive more efficiently, save fuel and lower emissions.
Eco-safe driving test
Read the Environment Agency’s ‘A Low Carbon Waste Industry in 2050’ Report.
GOV.UK
Ofwat have developed a ‘Net zero principles position paper’– this paper sets out the expectation and key areas which guide waste companies planning on net zero.
Ofwat
The Association of Drainage Authorities (ADA) is currently developing a workstream to define and promote carbon reduction measures to support its members.
ADA
Storage Businesses
Water supply, sewerage,
Transport Forum
ClimateAction Directory
waste management and remediation activities
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Business Decarbonisation Support
Sector Specific Advice for Businesses - Continued Sector
Advice/ Guidance
Water supply, sewerage,
Opt for a green electricity supplier for pumping the water.
waste management and remediation activities
Link
Redundant pipes can be used for routing communication services. The Climate Change Committee developed ‘The Sixth Carbon Budget – Waste’ report which explores options
Climate Change
for reducing emissions in the waste sector and puts forward policy recommendations to meet the UK carbon
Committee
targets. The London’s Environment Strategy sets targets on waste reduction and Emissions Performance Standard
Mayor of London,
goals for the waste sectors. The UK Government has also published a Resources and Waste Strategy which
GOV.UK
sets overarching targets on recycling rates and waste minimisation in England. Electricity, gas, steam
Iberdrola’s top tips can be used to utilise renewable energy in order to improve energy efficiency and
and air conditioning
decarbonise the electricity sector.
Iberdrola
The UK Government has developed a plan to decarbonise UK power systems by 2035.
GOV.UK
Ofgem’s ‘Decarbonisation Action Plan’ highlights actions on how they will support the UK government to
Ofgem
decarbonise the energy sector. The Royal Society provides a synopsis on the key technology and policy options for decarbonising the UK
Royal Society
energy sector. Retail-based businesses
Sign up and become a collection point for certain types of waste (i.e., plastic bags/ film and textiles).
Terracycle
The British Retail Consortium (BRC) provides information on how to reach net zero in the retail industry and
BRC
sets out a climate action roadmap.
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Business Decarbonisation Support
Sector Specific Advice for Businesses - Continued Sector
Advice/ Guidance
Link
Retail-based businesses
Visit Forbes to see top tips for retailers to reduce the carbon footprint from online shopping.
Forbes
For retail specific guidance and online tools to reduce the carbon emissions associated with retail businesses
RMS Retail Merchant
visit the RMS Retail Merchant Services website.
Services
At a retail outlet, an adjustment of display case temperatures reduced refrigeration electricity consumption by
The Green
approximately 50% and resulted in an improvement in the quality of the product.
Consultancy
Hospitality-based
Net Zero Now offer support to hospitality businesses as well as digital agencies or accountants. They will
Net Zero Now
businesses
create a carbon footprint for your business and then ongoing advice on how to bring down the emissions as well as to offset any unavoidable emissions. For hotel specific decarbonisation advice check out Sustainable Hospitality Alliance’s Global Hotel
Sustainable
Decarbonisation Report.
Hospitality Alliance
Save 40% or more of the refrigeration energy use by retrofitting doors onto chiller cabinets.
Carbon Trust Refrigeration Guide
The Waste & Resources Action Programme (WRAP) Food Waste Reduction Roadmap for tips on how to
WRAP
reduce food waste. Sign up to be a part of the national refill scheme. This will connect customers with your refillable food and drink offerings.
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City to Sea
Business Decarbonisation Support
Sector Specific Advice for Businesses - Continued Sector
Advice/ Guidance
Hospitality-based
Get involved in food redistribution – Apps like Too Good to Go and OLIO allow you to share surplus food with
businesses
consumers close to your business. Alternatively, you can use a programme like FareShare or Plan Zheroes.
Link
When you are buying new monitors and gadgets, look for models with ‘A’ energy ratings.
Energy Label
Make sure staff know what goes in each bin, especially confidential waste to avoid the extra energy and costs
WRAP
of shredding. You can find free resources like posters and stickers at WRAP. Avoid single-use stationary items with short lifespans, and purchase paper and stationery with high recycled
FSC certification,
content and from sustainable sources. Look out for FSC certification and PEFC logos when purchasing wood
PEFC
products.
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Business Decarbonisation Support
3.0
London Borough of Havering Business Emissions
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Business Decarbonisation Support
3.1 Business Emissions This section provides a sectoral analysis of emissions from businesses in the London Borough of Havering. The intention is to identify where support might best be targeted to reduce emissions in the most effective manner. At present, there are no datasets which provide a breakdown of UK greenhouse gas (GHG) emissions from private businesses by sector at a local level.2 In the absence of available datasets, the analysis of GHG emissions attributed to businesses in Havering combines the latest national industrial emissions data and local employee population information to provide top-down estimates of current GHG emissions for business sectors in Havering. This means that while the data is imperfect, it is sufficient to identify the biggest emitting sectors. Further background on the methodology and limitations of this approach as well as the supporting data tables are included in Appendix 4.2.
3.1.1 LB Havering Business Profile Before understanding what emissions come from the businesses of Havering, it is helpful to understand how the size and type of businesses in the Borough compare with the UK as a whole, as this will inform the approaches required. Figure 3-1 below provides an overview of the size of businesses in Havering compared to the UK based on the number of businesses registered and thus percentage of businesses located in each business size category.
Figure 3-1: UK Businesses and Havering Businesses by Business Number
Source: Business counts data from BEIS
2
https://www.british-business-bank.co.uk/wp-content/uploads/2021/10/J0026_Net_Zero_Report_AW.pdf
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Business Decarbonisation Support
Based on the above, over 99% of businesses in Havering are SMEs, 92% of which are MicroSMEs with 0-4 employees. Whilst the proportion of SMEs is in line with the UK average, Havering has a greater proportion of Micro SMEs compared to the rest of the UK. Splitting up the above figures further by the number of employees engaged by each business type (see Figure 3-2 below) shows that the majority of Havering employees are engaged in the Micro-SME category, followed by the small- to medium-sized category. This is in contrast to the profile of the UK as a whole where the majority of employees are engaged by large businesses.
Figure 3-2: UK Business and Havering Businesses by Number of Employees
Source: Business counts data from BEIS
In terms of thematic focus, business sectors in Havering are dominated by Construction, accounting for a quarter of businesses registered in the Borough. Professional scientific and technical services, as well as Retail make up 14% and 13% of businesses respectively, closely followed by businesses in the IT and Administrative support sectors who make up 9% of businesses registered each. These trends match those at a national level, with these sectors appearing within the top 5 at a national level as well. Figure 3-3Figure 3-3 below provides an overview of the number of employees engaged in each sector in Havering compared to the UK average. Based on employment data, the business profile of Havering shows both similarities and differences when compared to the UK average. Whilst Construction, for example, makes up 25% of businesses in the Borough, the sector only employs 9% of total employees working in Havering. The largest employment sectors in Havering are the retail sector, health and social care activities and administrative and support service activities. From an employment perspective, Havering mirrors trends at a national level with these employment sectors also representing the top 3 employment sectors across the UK.
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Business Decarbonisation Support
Figure 3-3: Employment in Havering and UK by Sector (SIC Section)
Source: Business counts data from NOMIS (https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49)
A detailed overview table of the number of businesses in Havering in each sector differentiated by business size can be found in Appendix 0.
3.1.2 Sectoral Emissions With the context of the size and type of businesses in the Borough, it is then useful to understand the quantity of emissions associated with each sector so that decarbonisation action support can be targeted. Business emissions broken down by Standard Industrial Classification (SIC) section3 in Havering are shown in Table 3-1Table 3-1 below. The total number of businesses in each sector is also provided for reference.
3
https://onsdigital.github.io/dp-classification-tools/standard-industrial-classification/ONS_SIC_hierarchy_view.html
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Business Decarbonisation Support
Table 3-1: Havering’s Top 10 Highest Emitting Sectors (SIC Section) SIC Section
Number of
Total Emissions
Businesses (2019)
(ktCO2e)
Transportation and storage
535
143
Water supply; sewerage, waste management
40
71
and remediation activities Manufacturing
405
70
Construction
2475
58
Wholesale and retail trade; repair of motor
1325
49
vehicles and motorcycles Human health and social work activities
415
19
Administrative and support service activities
860
17
Electricity, gas, steam and air conditioning
10
10
supply Accommodation and food service activities
475
7
Education
150
7
Source: Business counts data from NOMIS (https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49) and EMSI Labour market data.
Based on the above, at the highest SIC Section level (i.e. largest sector grouping based on standard UK industrial classifications), ‘Transportation and storage’, followed by ‘Water & Waste’ and ‘Manufacturing’ are the highest emitting sectors in Havering. Breaking these down further into subsectors (i.e. SIC 2-digit division) highlights the specific activities driving most of the emissions: 1. Division 49 – ‘land transport’ (subsector of ‘transportation and storage’); 2. Division 38 – ‘Waste collection, treatment and disposal; materials recovery’ (subsector of ‘Water & Waste’); and 3. Division 23 – ‘Manufacture of other non-metallic mineral products’ (subsector of ‘Manufacturing’) Table 3-2 below shows the Top 10 emitting sub-sectors. This shows that ‘land transport’ is the single largest emitting sub-sector by a substantial amount, being more than double the next most emitting sub-sector. This demonstrates that it will be vital to address this sector to be effective at decarbonising commercial activities in the Borough. Other notable sectors include water transport (which covers transporting passengers or freight over water, including sightseeing cruises, boats, ferries, water taxies, etc.), which has a higher value than it would for many boroughs and is challenging to decarbonise due to the fuel used in this sector. Specialised construction activities are also of note as these will involve diverse activities that will be harder to target for decarbonisation than for many of the other sectors.
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Business Decarbonisation Support
Table 3-2: Havering’s Top 10 Highest Emitting Sectors (2-digit Division) SIC (2 digit) Division
Number of
Total
Businesses
Emissions (ktCO2e)
49: Land transport and transport via pipelines
335
102
38: Waste collection, treatment and disposal activities;
30
43
23: Manufacture of other non-metallic mineral products
15
35
43: Specialised construction activities
1,755
34
37: Sewerage
5
28
50: Water transport
15
27
47: Retail trade, except of motor vehicles and motorcycles
665
21
46: Wholesale trade, except of motor vehicles and
355
19
42: Civil engineering
145
16
86: Human health activities
235
13
materials recovery
motorcycles
Source: Business counts data from NOMIS (https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49) and EMSI Labour market data.
Of course, total emissions do not give the entire picture. Whilst ‘Manufacture of other nonmetallic mineral products’ and ‘Specialised construction activities’ have almost the same total emissions attributed to them, the number of businesses associated with these emissions is vastly different (15 compared to 1,755). This demonstrates that attempting to reduce these emissions will be very different in practice between these sub-sectors as there will be a very big difference in the number of businesses that will need to be engaged to achieve similar reductions. The following Figure 3-4 demonstrates the dynamic between total emissions and number of businesses. It is relatively easy to see three distinct groupings. The first is the large number of sub-sectors close to the origin of the chart demonstrating low emissions and (relatively) low numbers of businesses. These sub-sectors will need to be engaged and supported but might not be a priority. There is then a grouping of lower emissions per business but where emissions are still notable. These will be particularly challenging to support due to the high number of businesses involved. Finally, there is the higher emissions per business grouping where relatively few businesses will need to be engaged to make a difference (not taking into account the challenge of decarbonising the sub-sector).
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Business Decarbonisation Support
Figure 3-4: Comparison of Havering Business Sector Emissions against Number of Businesses
Lower emissions per business
Higher emissions per business
Source: Business counts data from NOMIS (https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49) and EMSI Labour market data.
Looking at the higher emissions per business grouping, it is possible to draw up a different ‘top 10’ which is demonstrated in Table 3-3 below.
Table 3-3: Havering’s Top 10 Business Sub-Sectors by Emissions Intensity Number of
Emissions Intensity
Businesses
per Business (ktCO2e)
37 : Sewerage
5
5.52
23 : Manufacture of other non-metallic mineral products
15
2.35
50 : Water transport
15
1.78
38 : Waste collection, treatment and disposal activities;
30
1.43
5
1.16
35 : Electricity, gas, steam and air conditioning supply
10
1.03
22 : Manufacture of rubber and plastic products
20
0.41
10 : Manufacture of food products
20
0.37
49 : Land transport and transport via pipelines
335
0.31
27 : Manufacture of electrical equipment
10
0.30
SIC (2 digit) Division
materials recovery 21 : Manufacture of basic pharmaceutical products and pharmaceutical preparations
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Business Decarbonisation Support
Source: Business counts data from NOMIS (https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49); Emissions data from EMSI employee counts data; Eunomia analysis of emissions intensity.
Examining the emissions intensity per business between different sectors in Havering (see Table 3-3 above) can help identify businesses in intensive sectors where there is the potential for large emissions reductions. There are low numbers of businesses registered in many of these intensive sectors. For example, the top three categories are dominated by 35 businesses and therefore support programmes can be very effective with only a small number of businesses needing to be engaged. It should be noted that Table 3-3 takes an average of the total emissions for all businesses in that sector, assuming that all businesses will be emitting at similar levels regardless of their size. It may be the case that some businesses in a specific sub-sector are responsible for the majority of emissions emanating from that sector; nonetheless Table 3-3 provides a useful starting point, highlighting a leaderboard of emissions for the Borough. Whilst targeting the most intensive sectors can lead to dramatic reductions, it is often the case that many of these sectors are some of the hardest to decarbonise. This could be due to the core business revolving around highly intensive materials or processes (e.g., manufacture of plastic, generation of energy from fossil fuels), or sectors involving transportation who are reliant on transport electrification and the decarbonisation of the grid in order to reduce their emissions. By contrast, it is also possible to focus on easier to decarbonise sectors (for example retail), but which have larger number of businesses, making engagement more challenging. This has the advantage of creating a sense of greater engagement in the Borough with the challenge of decarbonisation which can lead to ripple effects across the Borough. Given this context, if support is to be offered based on economic sectors it is likely to be beneficial to: •
Target the sub-sectors that have high total emissions regardless of number of businesses (see Table 3-1);
•
Ensure particular exploration of support to the handful of sectors with very high emissions per businesses in case dramatic improvements can be achieved (see Table 3-3);
•
Provide a broader support to sectors with lower total emissions but where the challenges are similar.
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Business Decarbonisation Support
3.1.3 Key Findings Drawing on this data and analysis, the following key findings appear important in designing support for business in Havering to decarbonise: •
A much larger proportion of Havering’s workers are employed by micro-SMEs than the UK as a whole, meaning that particular focus will need to be given to this group of businesses that will have very limited capacity to consider and make change.
•
The top employing sectors of Havering’s economy are generally sectors where emissions are lower.
•
Havering is home to a substantial number of construction sector businesses and employees, which is a particularly hard sector to decarbonise.
•
The largest emitting sectors of Havering’s economy with more than 20 kt CO2e per annum are:
•
o
49: Land transport and transport via pipelines (subsector of Division H – Transportation and storage’)
o
38: Waste collection, treatment and disposal activities; materials recovery (subsector of Division E – Water supply; sewerage, waste management and remediation activities’)
o
23: Manufacture of other non-metallic mineral products (subsector of Division C – ‘Manufacturing’)
o
43: Specialised construction activities (subsector of Division F – Construction’)
o
37: Sewerage (subsector of Division E – Water supply; sewerage, waste management and remediation activities’)
o
50: Water transport (subsector of Division H – ‘Transportation and storage’)
o
47: Retail trade, except of motor vehicles and motorcycles (subsector of Division G – Wholesale and retail trade’)
When number of businesses is taken into account, a different list of major emitters is evident, showing where engaging with a smaller number of businesses may have a bigger impact: o
37 : Sewerage (subsector of Division E – ‘Water supply; sewerage, waste management and remediation activities’)
o
23 : Manufacture of other non-metallic mineral products (subsector of Division C – ‘Manufacturing’)
o
50: Water transport (subsector of Division H – ‘Transportation and storage’)
o
38: Waste collection, treatment and disposal activities; materials recovery (subsector of Division E – ‘Water supply; sewerage, waste management and remediation activities’)
•
However, often where the average emissions for each business is high, these subsectors are very challenging to decarbonise. So whilst they will need to be engaged with as a priority, they may not provide rapid gains.
•
Given this context, if support is to be offered based on economic sectors it is likely to be beneficial to:
35
o
Target the sub-sectors that have high total emissions regardless of number of businesses
o
Ensure particular exploration of support to the handful of sectors with very high emissions per businesses in case dramatic improvements can be achieved
Business Decarbonisation Support
o
Provide a broader support to sectors with lower total emissions but where the challenges are similar
3.2 Implication for Supporting Decarbonisation The following section describes the implications of the results in 3.1 to assist with the prioritisation of business support programmes to help decarbonise businesses in Havering. There are several factors at play when considering the best approach to reduce emissions from business. The potential impact of different types of support programmes can vary between sectors given the way emissions are clustered around certain sectors and top emitting businesses.
3.2.1 Sectoral Support Sectoral support is where support is targeted into specific sectors or sub-sectors of the economy. This has a number of advantages: •
Messaging can be tailored to the sector, increasing the likelihood of engagement by businesses
•
Detailed advice can be given where there are specific technical challenges in the sector (as currently delivered by programmes such as Manufacture 2030)
•
Trade bodies can be used as vehicles for sharing material and creating engagement
•
Effort can be focussed on areas because they have strategic importance, for example: o
They are high emitting sectors
o
They are a major part of the local economy
o
There are fewer organisations, making it easier to reach them
There are disadvantages to taking a sectoral approach. It is often difficult to engage businesses in decarbonisation and by restricting focus to specific sectors, there may well be many organisations that might have acted but will not do so as they are not targeted. Sectoral support is therefore an important approach, but with limitations.
3.2.2 SMEs vs. Large Businesses – What is the Balance and where does the responsibility lie? An alternative (though potentially complementary approach) is to explore engagement with specific sizes of business.
3.2.2.1 Large Businesses Larger businesses are likely to be ahead of SMEs on their decarbonisation journeys, and will be more exposed to regulatory changes, mandatory reporting requirements, and voluntary
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Business Decarbonisation Support
programmes which will drive action across all sectors (e.g., Task Force on Climate-related Financial Disclosures (TCFD) – made mandatory in the UK as of April 2022; CDP – a non-forprofit charity that runs the global disclosure system for investors, businesses, and other entities to manage their environmental impacts). These businesses have a greater availability of capital and staff resources in order to deliver decarbonisation projects, as well as having a greater degree of capacity relating to net zero and carbon neutrality, climate change, and climate risks. Whilst large businesses are likely to have greater emissions on a per business basis, it is important to bear in mind that they make up less than 1% of Havering’s businesses.
3.2.2.2 SMEs Whilst many corporates are already seizing the initiative that the green economy represents, research studies and publications point towards how SMEs are still grappling with what Net Zero and carbon neutrality means in practice, and often struggle to navigate implementation of a decarbonisation strategy. SMEs make up most of the economy – in the UK (and Havering) they represent 99% of all businesses, and hence they have a significant environmental footprint on aggregate, but also make important contributions to reaching carbon neutrality through their innovations and greening efforts4. In Havering, SMEs employ almost 90% of the local workforce, demonstrating just how important they are in terms of targeting engagement. Despite the critical role of SMEs in supporting global Net Zero targets, the recent British Bank Survey5 revealed that 76% of SMEs are mostly at the early stage of Net Zero transition, although attitudes are split, with only around half (57%) aware of the UK Government’s commitment to reach Net Zero by 2050. The most pressing barriers hindering action on Net Zero strategy and implementation cited by the survey respondents included feasibility (32%) and cost (35%), with upfront capital costs of Net Zero actions identified as being particular obstacles. These factors were identified as being more important than capacity or willingness to act (18%), or information (12%). SMEs are much less likely to have the resources to work on decarbonisation action, especially as they have been disproportionately impacted by COVID-19 and many are struggling to continue in business under inflationary pressures. As a result, this scale of business is not only the most common in the borough, it is also the type of business most in need of support. It therefore follows that support targeted at SMEs would be an appropriate approach to take for supporting local business.
4 5
https://www.oecd-ilibrary.org/energy/no-net-zero-without-smes_bab63915-en https://www.british-business-bank.co.uk/research/smaller-businesses-and-the-transition-to-net-zero/
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Business Decarbonisation Support
3.2.3 Recommended Approach Given the above, it is suggested that the following approach is likely to yield the best outcomes initially in Havering: •
•
A general support programme for SMEs where awareness is raised and support signposted to enable SMEs to understand the situation and what they can do about it. It should include: o
Clear description of what carbon neutrality and Net Zero are and why they matter
o
Clear explanation of how carbon neutrality and Net Zero action and requirements for larger organisations will eventually cascade down supply chains to impact SMEs
o
Clear description of the key areas of action
o
Clear signposting of more detailed support
o
Structures to enable engaged organisations to get together and share experiences, tips, knowledge and best practice.
Targeted support for key emitting sectors and/or flagship areas of Havering’s economy that can act as exemplars or big win stories and create momentum. Three recommended sectors for support (and justification) are: o
Land transport. This is the single biggest emitting sub-sector as well as a sizable component of the local economy. Technologies exist (electric vehicles, e-cargo bikes) to dramatically decarbonise at least some of the sector.
o
Waste treatment and recovery. This has both a high footprint and a small number of businesses to engage. Whilst there are fundamental challenges associated with this sector due to the nature of treatment of residual waste through incineration or landfill, maximising the amount of waste that is recycled reduces emissions substantially and also builds towards a circular economy. Therefore, focussing on this area can yield both emissions reductions and, potentially, an important part of a newly emerging area of the economy.
o
Manufacture of other non-metallic mineral products. This may not be a clear priority as it depends on the exact nature of the production of minerals in Havering. It therefore needs additional exploration. Some mineral production produces emissions because of the nature of the land extraction activities, and these are very hard to decarbonise. Other processes produce emissions from the machinery used to extract and refine them rather than from the land. Where this is the case there can be scope to produce electricity locally from renewables. This would need to be investigated before any substantive engagement was undertaken.
This balanced approach of broad SME support and specific targeted programmes for two or maybe three specific sectors would likely deliver the greatest potential benefits and support those businesses most in need. Of course, this could be expanded subsequently if desirable.
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3.3 Current Business Social Responsibility Programmes This section highlights examples of Corporate Social Responsibility (CSR) programmes from businesses in the top high emitting sectors identified in previous sectionsTable 3-1: Havering’s Top 10 Highest Emitting Sectors (SIC Section) SIC Section
Number of
Total Emissions
Businesses (2019)
(ktCO2e)
Transportation and storage
535
143
Water supply; sewerage, waste management
40
71
and remediation activities Manufacturing
405
70
Construction
2475
58
Wholesale and retail trade; repair of motor
1325
49
vehicles and motorcycles Human health and social work activities
415
19
Administrative and support service activities
860
17
Electricity, gas, steam and air conditioning
10
10
supply Accommodation and food service activities
475
7
Education
150
7
Source: Business counts data from NOMIS (https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49) and EMSI Labour market data.
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Business Decarbonisation Support
Based on the above, at the highest SIC Section level (i.e. largest sector grouping based on standard UK industrial classifications), ‘Transportation and storage’, followed by ‘Water & Waste’ and ‘Manufacturing’ are the highest emitting sectors in Havering. Breaking these down further into subsectors (i.e. SIC 2-digit division) highlights the specific activities driving most of the emissions: 4. Division 49 – ‘land transport’ (subsector of ‘transportation and storage’); 5. Division 38 – ‘Waste collection, treatment and disposal; materials recovery’ (subsector of ‘Water & Waste’); and 6. Division 23 – ‘Manufacture of other non-metallic mineral products’ (subsector of ‘Manufacturing’) Table 3-2 below shows the Top 10 emitting sub-sectors. This shows that ‘land transport’ is the single largest emitting sub-sector by a substantial amount, being more than double the next most emitting sub-sector. This demonstrates that it will be vital to address this sector to be effective at decarbonising commercial activities in the Borough. Other notable sectors include water transport (which covers transporting passengers or freight over water, including sightseeing cruises, boats, ferries, water taxies, etc.), which has a higher value than it would for many boroughs and is challenging to decarbonise due to the fuel used in this sector. Specialised construction activities are also of note as these will involve diverse activities that will be harder to target for decarbonisation than for many of the other sectors. Table 3-2: Havering’s Top 10 Highest Emitting Sectors (2-digit Division). It is worth noting that the majority of businesses in Havering are relatively small and hence do not offer a CSR programme. However, the below offer a starting point and their positive impact and possible multiplier effect on smaller businesses should not be under-estimated. It is important that progressive business practices are highlighted to serve as inspiration for other businesses working in similar sectors. Table 3-4 below showcases a select number of examples of CSR practices from businesses in Havering. Please refer to the Glossary for key terms.
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Business Decarbonisation Support
Table 3-4. Example CSR Programmes of Businesses in Havering Sector
Business
Corporate Social Responsibility (CSR) Programme example
Transportation and
Argo Limited
Argo established a Sustainability Working Group that coordinates sustainability and Environmental, Social, and Governance (ESG) activities and plans across the company. The Sustainability Working Group is sponsored at the board level and led by senior executives. The group has committed to a 33% reduction in scope 3 GHG emissions and a 20% reduction in scope 2 GHG emissions in 2021. These targets aim to be achieved through sustainable employee commuting (including the introduction of a hybrid working model which mitigates the need for staff to commute) and a sustainable building programme (which includes utilising digital technology such as video conferencing to reduce transport for meetings).
Geo. Copsey & Co.,
Copsey states that they recognise they have an obligation to carry out activities in a responsible and sustainable manner and state that their social performance provides a positive impact on the environment, clients, employees, communities and stakeholders. They have partnered with St Francis Hospice and pass on furniture that their clients no longer wish to keep free of charge.
storage
Example CSR Programmes - Continued Sector
Business
Corporate Social Responsibility (CSR) Programme example
Transportation and
Uniserve Limited
Uniserve promotes policy statements outlining their environmental and ethical aims. They state that they are committed to the principles of good corporate governance and ensure that their business is properly directed and managed for the benefit of its stakeholders, including its managers, employees and customers.
Waste supply;
Reuse Technology
sewerage, waste
Group Ltd
Reuse Technology Group is ISO14001 Environmental Management Certified and committed to promoting Environmental Sustainability. They have developed a Sustainability Policy which all staff are committed to implementing, they also make their clients and suppliers aware of their Sustainability Policy and encourage them to adopt sustainable management practices.
storage
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Business Decarbonisation Support
management and remediation Manufacturing
Tilda
Tilda state that they are committed to safeguarding the long-term sustainability of Basmati rice farming. Tilda have developed an Impact Report which outlines what they are doing as a business to tackle climate change, including: • Working with packaging supplier to ensure all their packaging is recyclable in the countries where it is sold • Carrying out ethical audits of suppliers Supporting community causes such as The Felix Project and Mary’s Meals
Construction
Chisholm & Winch
Chisholm & Winch state that they recognise that they must integrate their business values and operations to meet the expectations of stakeholders, including customers, employees, suppliers, the community and the environment. In order to do so, they have developed environmental policies and objectives as part of the business planning cycle.
Example CSR Programmes - Continued Sector
Business
Corporate Social Responsibility (CSR) Programme example
Construction
Breyer Group
Breyer Group have a CSR Legacy Statement which sets out their aims, those that are most likely to benefit and how they intend to reach their goals. • The Breyer Group set up the Breyer Foundation which raises funds to support those most in need and boost employment and economic development
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Business Decarbonisation Support
•
Implemented the Place of Change approach which brings together expert partners to provide a range of courses and opportunities for young people and the community
Developed a carbon reduction plan Wholesale and retail
Roomes
trade; repair of motor vehicles and motorcycles
Roomes is a furniture store who are working to improve their sustainability and minimise the impact of their business. This has included, but not limited to: • Reducing packaging where possible • Installing LED store lights • Installing 150 roof mounted solar panels for renewable energy Mattress recycling and the removal and recycling of packaging
Specsavers
43
Specsavers state that they work with local communities. They state that they employ local staff (all of which have access to regular training and development) and raise funds for a range of local charities.
Business Decarbonisation Support
3.3.1 Next Steps for Havering Previous sections have outlined recommended approaches to supporting businesses. The council has a particular role to play in achieving this as a convener of local stakeholders to engage in these issues. Before programmes are developed, it would be strongly recommended to engage with local groups such as the Chambers of Commerce as well as the Business Improvement Districts in Rainham and Romford to produce a coordinated approach to supporting businesses. It is also recommended to work with pan-London bodies, such as the GLA, to identify carbon reduction programmes or funding sources to tackle carbon emissions.
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4.0 Appendix
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4.1 Glossary Table 4-1: Glossary of Terms Key Term
Definition
BREEAM
An international sustainability assessment used for infrastructure and building projects. Ratings are based on a mix of environmental, social, and economic factors.
Carbon footprint
The amount of carbon dioxide released into the atmosphere from the activities of an individual, organisation, or community in a given period (usually one year).
Carbon neutral
Carbon neutrality refers to a state in which the level / volume of carbon dioxide (CO2) emissions is compensated by the equivalent volume through carbon offsetting activities (e.g. tree planting, protection of existing forests). It refers to CO2 only, and any volume of emissions can be offset. This differs from Net Zero (see below)
6
Carbon Disclosure Project (CDP)
A non-for-profit charity that runs the global disclosure system for investors, businesses, and other entities to manage their environmental impacts.
Circular economy
A form of economy where all energy and materials within a product’s life are repeatedly reused, resold, repaired, and refurbished.
CO2 emissions
Carbon Dioxide emissions only.
CO2e emissions
‘Carbon dioxide equivalent’ includes CO2 and other greenhouse gases such as methane, ozone, and nitrous oxide. This gives a fuller picture of the environmental impact of an activity.
Cycle to Work scheme
A government scheme which allows employees to buy bikes through their employer. The cost is tax-free and spread over 12 months.
Decarbonisation
The process by which countries, individuals or other entities (such as business) aim to reduce and eliminate GHG emissions. This typically refers to a reduction of the carbon emissions associated with electricity, industry and transport.6
Electric vehicle (EV)
Vehicles that are either partially or fully powered by electricity. They use rechargeable batteries rather than fuel.
End-of-life
A product at the end of its useful life, becoming waste.
Energy consumption
Total energy used to perform an action. Can include electricity, gas, and water.
https://www.ipcc.ch/sr15/chapter/glossary/
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Business Decarbonisation Support
Energy Performance Certificate (EPC)
A certificate required when a property is built, sold, or rented. Contains information about a property’s energy use and costs, which includes an energy efficiency rating from A (best) to G (worst). Also suggests ways to reduce energy use.
Environment Agency
A public body which aims to protect and improve the environment and support sustainable growth.
ESG
‘Environmental, Social, and Governance’ (ESG) criteria describe a set of standards for a company’s operations that socially conscious investors use to screen potential investments.
E-waste
Electronic products that are unwanted, not working, or at their end-of-life. Includes computers, TVs, stereos, and phones.
Fast-charging stations
A place to rapidly recharge electric vehicles. Reaching full charge can take 3-4 hours for a small vehicle. Stations are typically found on street-sides, shopping centres, and parking areas.
Fuel-efficient driving
Driving techniques which lower a vehicle’s fuel consumption. They include gentle acceleration and maintaining a steady speed.
Green tariffs
When a supplier promises to match all or some of the electricity you use with renewable energy supply, taken from the National Grid. The more green tariffs there are, the greater the need for green energy supply into the national supply.
Greenhouse Gas (GHG)
Greenhouse gases (GHGs) are those that absorb or emit radiation at specific wavelengths within the spectrum of terrestrial radiation emitted by the Earth’s surface, the atmosphere and by the clouds causing the greenhouse effect. The most well-known GHG is carbon dioxide (CO2), while others include nitrous oxide, methane, and ozone.7 In the context of human-induced climate change we often refer to ‘anthropogenic GHGs’ to describe the impact of human activities on the concentration of GHGs in the atmosphere. Greenhouse Gas emissions are presented in carbon dioxide equivalent units (CO2e) which accounts for all GHG emissions (not just CO2).
Heat pumps
A heating system which takes energy from the outside air or ground and transfers it inside a building even when the building is at a higher temperature than the air or ground outside.
Landfill
A site for the disposal of waste. Also known as a dump or tip.
LED
A form of lighting which lasts far longer than conventional (incandescent) lights and often only 10% to 20% of the energy.
Net Zero
Net zero refers to a state in which the greenhouse gases (GHG) emitted / added to the atmosphere are balanced by the removal of the equivalent volume of GHG from the atmosphere. The residual amount of emissions that can be balanced is often limited to a small proportion of 2020 emissions. The UK declared a legally-binding net zero emissions by 2050 target in 2019.
7
https://www.ipcc.ch/sr15/chapter/glossary/
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Business Decarbonisation Support
Occupancy sensors
Detect the presence of a person through motion sensors. Often used to automatically turn lights on when you walk into a room.
Office of Gas and Electricity Markets (OFGEM)
An industry watchdog and regulator for the UK’s gas and electricity supply. Has the power to control prices and enforce regulations.
Race to Zero
The UN’s voluntary decarbonisation standard which includes a Net Zero definition and guidance and support for participating organisations.
Recycling
The process of converting waste into reusable material.
Refillable bags/containers
Durable storage products which can be reused multiple times to transport goods without using plastic. Can include bags, jars, and pouches.
Remanufactured item
An item which is made from old, used, or worn-out materials to create a new one.
Renewable energy
Energy that comes from natural sources which can never run out. Includes solar, wind, tidal, wave, geothermal, and biomass.
Science Based Targets Initiative (SBTi)
The Science Based Targets Initiative is a popular voluntary code for organisations to use for decarbonisation planning and goal setting. It includes a definition of Net Zero and has some sector-specific guidance.
Scope 1-3 emissions
Greenhouse gas emissions are typically categorised into three groups (scopes). Scope 1 covers direct emissions from owned or controlled sources; scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the business/entity; scope 3 includes all other indirect emissions that occur as part of business’s value chain. 8
Single-use product
An item which is designed to be used only once before it is thrown away or recycled.
SKA
An environmental rating which assesses the interior of buildings. This includes electrics, decorations, and furnishings.
Small and medium-sized enterprise (SME)
The UK government definition of SMEs covers micro (<10 employees; annual turnover <€2m), small (<50 employees; annual turnover <10m) and medium-sized (<250 employees; annual turnover <€50m) businesses.9
Smart meter
A replacement to traditional gas, electricity, and water meters. They measure how much you are using and what it’s costing you. This information is displayed on a digital screen in real time.
Solar panels
A panel designed to absorb the sun’s rays and convert it into electricity. It does so by heating up water. They are often located on roofs of buildings to capture maximum sunlight.
https://www.carbontrust.com/resources/briefing-what-are-scope-3emissions#:~:text=Scope%201%20covers%20direct%20emissions,in%20a%20company's%20value%20chain. 9 https://www.gov.uk/government/publications/fcdo-small-to-medium-sized-enterprise-sme-action-plan/small-tomedium-sized-enterprise-sme-action-plan 8
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Business Decarbonisation Support
Speed limiters
A safety device placed in cars which restrict the flow of fuel to the engine when a pre-determined speed is reached.
Sustainable supplier
A supplier which integrates social, ethical, and environmental considerations into their operations.
TCFD
Task Force on Climate-related Financial Disclosures (TCFD) requires firms to disclose climate-related financial information, ensuring they consider the risks and opportunities they face as a result of climate change. TCFD reporting was made mandatory in the UK as of April 2022.
Terracycle recycling point
Points where you can drop-off and recycle almost any form of waste.
Thermostat
A device which detects temperature changes and signals to a heating system to keep the room temperature constant.
Water efficiency
Minimising water waste through conservation methods.
Water meter
A device which measures the volume of water that passes through a pipe.
Zero-emissions
All greenhouse gas emissions from an activity are prevented or removed from the atmosphere through reduction measures.
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Business Decarbonisation Support
4.2 Emissions by business sector Method 4.2.1 Objectives The objective of this task was to identify which business sectors in the London Borough of Havering create the most GHG emissions based on publicly available data.
4.2.2 Estimates of GHG Emissions in the London Borough of Havering Several data sources and methods were explored when calculating Havering’s emissions in an attempt to calculate the most accurate estimate of emissions considering the limitations in data. The estimates of the emissions described in Section 3.1 were calculated matching the latest available versions of the following data sources: • BEIS (the Department of Business, Energy, and Industrial Strategy): UK GHG Emissions by Standard Industrial Classification (2019). The dataset provides GHG emissions data for individual industry sectors by Standard Industrial Classification (SIC) sections and by 2-digit division; • Economic Modelling Specialists, Intl (EMSI): industries by employee number (2019) – provides datasets showing the total number of employees by 2-digit SIC division at a national and local authority level. Other datasets also looked at included: • UK Business Counts: Enterprises by Industry and Employment Size Band (2019) - Office for National Statistics. Provides datasets showing the total number of enterprises by SIC section and 2-digit division and employment size band at a national, and local authority level. To prepare the data for making estimates, the SIC codes attributable to private businesses were identified and the data for these was included, while the following SIC codes were excluded as these do not relate to private businesses: • 84 : Public administration and defence; compulsory social security • 97 : Activities of households as employers of domestic personnel • 98 : Undifferentiated goods- and services-producing activities of private households for own use • 99 : Activities of extraterritorial organisations and bodies Following this, the UK GHG estimates from BEIS were matched to UK employee data from EMSI based on the SIC section they related to. This allowed us to get an idea of the total number of employees that made up the emissions from each sector. By dividing the total emissions by number of employees in each sector, we arrived at an emissions intensity per employee for each sector across the UK.
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Business Decarbonisation Support
To understand the emissions solely from businesses in Havering, the nationwide intensity values were then multiplied by the total number of employees in Havering in each (2-digit SIC code) sector. This provided estimates for the total emissions from each sector respectively. A similar approach was taken with the ONS data; however, the number of employees in each sector was estimated based on business counts within each employment size bands. This assumption reduces the accuracy of the emissions output and, therefore, the results from the EMSI data were used to show the sector emissions presented in 3.1.2.
4.2.3 Methodology Limitations Without publicly available data relating to Havering’s emissions from businesses disaggregated by sector, our analysis relied on using a top-down estimation approach. Data from EMSI was also rounded, with sectors with <10 jobs assumed as having 0 employees. This leads to higher uncertainty regarding employee counts at a national, and local authority level. The emissions estimates in this project cover the Kyoto gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3) and are expressed as kt Carbon Dioxide equivalent (ktCO2e). The emissions are ‘territorial’ meaning they cover emissions released in the UK, excluding emissions from UK businesses and residents that occur abroad, including shipping and aviation. It also excluded any emissions embedded within the supply chain of goods and services imported into the UK. These emissions can be reported either on a source or end-user basis. The data used in this project is reported on a source basis, meaning the emissions are attributed to the sector that emits them directly (e.g., emissions from a power station are allocated to the power station as opposed to the users of the electricity it generates). This is in comparison to some of the existing territorial CO2 data published by BEIS which disaggregates emissions at a local authority level10 which is reported on an end-user basis and only covers carbon dioxide emissions.
UK local authority and regional carbon dioxide emissions national statistics: 2005 to 2019 https://data.gov.uk/dataset/723c243d-2f1a-4d27-8b61-cdb93e5b10ff/uk-local-authority-and-regional-carbondioxide-emissions-national-statistics-2005-to-2019 10
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Business Decarbonisation Support
4.2.4 Tables Table 4-2: BEIS UK National GHG Emissions by SIC (07) Group SIC(07)
Group name
group
2019 Emissions
(ktCO2e)
1
Products of agriculture, hunting and related services
46,678
2
Products of forestry, logging and related services
95
3
Fish and other fishing products; aquaculture products; support
526
5
services to fishing Mining of coal and lignite
688
6
Crude petroleum and natural gas
19,888
7
Mining of metal ores
3
8
Other mining and quarrying products
787
9
Mining support services
280
10.1
Processing and preserving of meat and production of meat products
910
10.2-3
Processing and preserving of fish, crustaceans, molluscs, fruit and
880
10.4
vegetables Manufacture of vegetable and animal oils and fats
71
10.5
Manufacture of dairy products
772
10.6
Manufacture of grain mill products, starches and starch products
578
10.7
Manufacture of bakery and farinaceous products
1,173
10.8
Manufacture of other food products
1,253
10.9
Manufacture of prepared animal feeds
363
11.01-06
Manufacture of alcoholic beverages, including spirits, wine, cider, beer
1,108
11.07
and malt Manufacture of soft drinks: production of mineral waters and other
122
12
bottled waters Tobacco products
23
13
Textiles
889
14
Wearing apparel
249
15
Leather and related products
31
16
Wood and of products of wood and cork, except furniture; articles of
795
17
straw and plaiting materials Paper and paper products
1,998
18
Printing and recording services
379
19.1
Manufacture of coke oven products
870
19.2
Manufacture of refined petroleum products
12,840
20.11 +
Manufacture of industrial gases and non-nitrogen-based inorganic
1,944
20.13
chemicals
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Business Decarbonisation Support
BEIS UK National GHG Emissions Table - Continued SIC(07)
Group name
group
2019 Emissions
(ktCO2e)
20.15 /1
Fertilisers
682
20.15 /2
Other nitrogen compounds
967
20.14+20
Manufacture of petrochemicals
5,753
Manufacture of dyestuffs, agro-chemicals
923
20.3
Manufacture of paints, varnishes & ink
165
20.4
Manufacture of cleaning & toilet preparations
301
20.5
Manufacture of other chemical products & man-made fibres
531
21
Basic pharmaceutical products and pharmaceutical preparations
640
22.1
Rubber products
400
22.2
Plastics products
2,762
23.1-4 &
Manufacture of glass, refractory, clay, other porcelain and ceramic
2,669
23.7-9
products, Stone, & abrasive products
23.51
Manufacture of cement
6,998
23.52 /1
Manufacture of lime
1,492
23.52 /2
Manufacture of plaster
13
23.6
Manufacture of articles of concrete, cement and plaster
691
24.1-3
Manufacture of basic Iron & Steel
10,838
24.4-5
Manufacture of other basic metals & casting (excl. Nuclear fuel &
772
(not 24.42 24.42 nor
Aluminium) Aluminium production
481
24.46) 24.46
Processing of nuclear fuel
2
25.1-
Fabricated metal products, except machinery and equipment,
2,680
3+25.5-9
excluding weapons and ammunition
25.4
Manufacture of weapons and ammunition
102
26
Computer, electronic, communication and optical products
693
27
Electrical equipment
653
28
Machinery and equipment n.e.c.
1,647
29
Motor vehicles, trailers and semi-trailers
1,181
30.1
Building of ships and boats
200
30.3
Manufacture of air and spacecraft and related machinery
403
30.2+4+9
Manufacture of other transport equipment, excluding ships, boats, air
105
.16+20.1 7+20.6 20.12+20 .2
and spacecraft
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Business Decarbonisation Support
BEIS UK National GHG Emissions Table – Continued SIC(07)
Group name
group
2019 Emissions
(ktCO2e)
31
Furniture
801
32
Other manufactured goods
562
33.15
Repair & maintenance of ships
12
33.16
Repair & maintenance of aircraft & spacecraft
39
33 (not
Rest of repair; Installation
276
35.1/1
Electricity production - gas
45,325
35.1/2
Electricity production - coal
7,236
35.1/3
Electricity production - nuclear
97
35.1/4
Electricity production - oil
124
35.1/5
Electricity production - other
5,682
35.2-3
Manufacture of gas; distribution of gaseous fuels through mains and
5,844
33.1516)
steam and air conditioning supply 36
Natural water; water treatment and supply services
867
37
Sewerage services; sewage sludge
2,565
38
Waste collection, treatment and disposal services; materials recovery
21,188
services 39
Remediation services and other waste management services
5
41
Buildings and building construction works
2,372
42
Constructions and construction works for civil engineering
5,723
43
Specialised construction works
5,129
45
Wholesale and retail trade and repair services of motor vehicles and
2,021
motorcycles 46
Wholesale trade services, except of motor vehicles and motorcycles
7,083
47
Retail trade services, except of motor vehicles and motorcycles
6,373
49.1-2
Rail transport
2,102
49.31/9
Buses, coaches, trams and similar public urban transport n.e.c
3,726
49.31/1
Underground, metro other non-interurban rail services
13
49.32
Taxis and other renting of private cars with driver
3,457
49.4
Freight transport by road and removal services
11,449
49.5
Transport via pipeline
86
+ 49.39
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Business Decarbonisation Support
BEIS UK National GHG Emissions Table - Continued SIC(07)
Group name
group
2019 Emissions
(ktCO2e)
50
Water transport services
2,140
51
Air transport services
1,722
52
Warehousing and support services for transportation
1,836
53
Postal and courier services
1,688
55
Accommodation services
917
56
Food and beverage serving services
2,647
58
Publishing services
56
59
Motion picture, video and television programme production services,
130
sound recording and music publishing 60
Programming and broadcasting services
12
61
Telecommunications services
298
62
Computer programming, consultancy and related services
296
63
Information services
30
64
Financial services, except insurance and pension funding
73
65.1-2
Insurance & Reinsurance
30
65.3
Pension funding
1
66
Services auxiliary to financial services and insurance services
154
68.1-2
Buying and selling of own real estate: renting and operating of own or
676
leased real estate, excluding imputed rent 68.3
Real estate activities on a fee or contract basis
291
69.1
Legal activities
145
69.2
Accounting, bookkeeping and auditing activities: tax consultancy
121
70
Services of head offices; management consulting services
633
71
Architectural and engineering services; technical testing and analysis
381
services 72
Scientific research and development services
250
73
Advertising and market research services
90
74
Other professional, scientific and technical services
142
75
Veterinary services
71
77
Rental and leasing services
1,129
78
Employment services
191
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Business Decarbonisation Support
BEIS UK National GHG Emissions Table - Continued SIC(07)
Group name
group
2019 Emissions
(ktCO2e)
79
Travel agency, tour operator and other reservation services and
142
80
related services Security and investigation services
154
81
Services to buildings and landscape
921
82
Office administrative, office support and other business support
717
84 (not
services Public administration; compulsory social security services
2,745
84.22
Public defence services
1,968
85
Education services
2,542
86
Human health services
3,873
87
Residential care services
728
88
Social work services without accommodation
831
90
Creative, arts and entertainment services
115
91
Library, archive, museum and other cultural services
48
92
Gambling and betting services
79
93
Sporting services and amusement and recreation services
794
94
Services furnished by membership organisations
268
95
Repair services of computers and personal and household goods
65
96
Other personal services
620
97
Services of households as employers of domestic personnel
46
84.22)
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Business Decarbonisation Support
Table 4-3: EMSI UK Number of Employees by 2-digit SIC Division (2019) SIC (07) group
UK Jobs (2019)
01 : Crop and animal production, hunting and related service activities
238,287
02 : Forestry and logging
12,209
03 : Fishing and aquaculture
8,174
05 : Mining of coal and lignite
1,517
06 : Extraction of crude petroleum and natural gas
13,157
07 : Mining of metal ores
0
08 : Other mining and quarrying
21,959
09 : Mining support service activities
18,260
10 : Manufacture of food products
392,400
11 : Manufacture of beverages
45,970
12 : Manufacture of tobacco products
156
13 : Manufacture of textiles
62,430
14 : Manufacture of wearing apparel
26,017
15 : Manufacture of leather and related products
9,145
16 : Manufacture of wood and of products of wood and cork, except
76,266
furniture;manufacture of articles of straw and plaiting materials
17 : Manufacture of paper and paper products
54,966
18 : Printing and reproduction of recorded media
93,452
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Business Decarbonisation Support
EMSI UK Number of Employees Table - Continued SIC (07) group
UK Jobs (2019)
19 : Manufacture of coke and refined petroleum products
9,011
20 : Manufacture of chemicals and chemical products
93,884
21 : Manufacture of basic pharmaceutical products and pharmaceutical
42,722
preparations
22 : Manufacture of rubber and plastic products
162,273
23 : Manufacture of other non-metallic mineral products
85,842
24 : Manufacture of basic metals
68,211
25 : Manufacture of fabricated metal products, except machinery and equipment
289,971
26 : Manufacture of computer, electronic and optical products
117,271
27 : Manufacture of electrical equipment
73,612
28 : Manufacture of machinery and equipment n.e.c.
182,453
29 : Manufacture of motor vehicles, trailers and semi-trailers
161,607
30 : Manufacture of other transport equipment
141,286
31 : Manufacture of furniture
91,036
32 : Other manufacturing
77,246
33 : Repair and installation of machinery and equipment
129,144
35 : Electricity, gas, steam and air conditioning supply
134,741
36 : Water collection, treatment and supply
43,198
37 : Sewerage
21,293
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Business Decarbonisation Support
EMSI UK Number of Employees Table - Continued SIC (07) group
UK Jobs (2019)
38 : Waste collection, treatment and disposal activities; materials recovery
135,868
39 : Remediation activities and other waste management services. This division
7,629
includes the provision of remediation services, i.e. the cleanup of contaminated buildings and sites, soil, surface or ground water.
41 : Construction of buildings
476,983
42 : Civil engineering
209,803
43 : Specialised construction activities
814,901
45 : Wholesale and retail trade and repair of motor vehicles and motorcycles
584,679
46 : Wholesale trade, except of motor vehicles and motorcycles
1,184,824
47 : Retail trade, except of motor vehicles and motorcycles
2,861,532
49 : Land transport and transport via pipelines
608,754
50 : Water transport
14,616
51 : Air transport
75,768
52 : Warehousing and support activities for transportation
552,618
53 : Postal and courier activities
250,471
55 : Accommodation
505,838
56 : Food and beverage service activities
1,845,797
58 : Publishing activities
121,248
59 : Motion picture, video and television programme production, sound recording
117,921
and music publishing activities
60 : Programming and broadcasting activities
59
39,952
Business Decarbonisation Support
EMSI UK Number of Employees Table - Continued SIC (07) group
UK Jobs (2019)
61 : Telecommunications
214,601
62 : Computer programming, consultancy and related activities
742,944
63 : Information service activities
78,376
64 : Financial service activities, except insurance and pension funding
503,343
65 : Insurance, reinsurance and pension funding, except compulsory social security
113,257
66 : Activities auxiliary to financial services and insurance activities
451,953
68 : Real estate activities
529,477
69 : Legal and accounting activities
693,582
70 : Activities of head offices; management consultancy activities
791,016
71 : Architectural and engineering activities; technical testing and analysis
582,501
72 : Scientific research and development
152,747
73 : Advertising and market research
160,899
74 : Other professional, scientific and technical activities
199,216
75 : Veterinary activities
84,806
77 : Rental and leasing activities
167,870
78 : Employment activities
949,718
79 : Travel agency, tour operator and other reservation service and related
100,362
activities
80 : Security and investigation activities
60
218,841
Business Decarbonisation Support
EMSI UK Number of Employees Table - Continued SIC (07) group
UK Jobs (2019)
81 : Services to buildings and landscape activities
726,788
82 : Office administrative, office support and other business support activities
551,012
84 : Public administration and defence; compulsory social security
1,363,914
85 : Education
2,673,171
86 : Human health activities
2,368,445
87 : Residential care activities
737,744
88 : Social work activities without accommodation
947,548
90 : Creative, arts and entertainment activities
107,427
91 : Libraries, archives, museums and other cultural activities
106,900
92 : Gambling and betting activities
87,320
93 : Sports activities and amusement and recreation activities
455,699
94 : Activities of membership organisations
245,047
95 : Repair of computers and personal and household goods
57,491
96 : Other personal service activities
322,165
97 : Activities of households as employers of domestic personnel
0
98 : Undifferentiated goods- and services-producing activities of private
0
households for own use
99 : Activities of extraterritorial organisations and bodies
61
0
Business Decarbonisation Support
Table 4-4: EMSI Havering Number of Employees by 2-digit SIC Division (2019) SIC (07) Group
London Borough of Havering Jobs (2019)
01 : Crop and animal production, hunting and related service activities
15
02 : Forestry and logging
10
03 : Fishing and aquaculture
0
05 : Mining of coal and lignite
0
06 : Extraction of crude petroleum and natural gas
0
07 : Mining of metal ores
0
08 : Other mining and quarrying
0
09 : Mining support service activities
0
10 : Manufacture of food products
485
11 : Manufacture of beverages
0
12 : Manufacture of tobacco products
0
13 : Manufacture of textiles
30
14 : Manufacture of wearing apparel
0
15 : Manufacture of leather and related products
18
16 : Manufacture of wood and of products of wood and cork, except
145
furniture;manufacture of articles of straw and plaiting materials
17 : Manufacture of paper and paper products
62
0
Business Decarbonisation Support
EMSI Havering Number of Employees Table - Continued SIC (07) Group
London Borough of Havering Jobs (2019)
18 : Printing and reproduction of recorded media
105
19 : Manufacture of coke and refined petroleum products
0
20 : Manufacture of chemicals and chemical products
12
21 : Manufacture of basic pharmaceutical products and pharmaceutical
387
preparations
22 : Manufacture of rubber and plastic products
422
23 : Manufacture of other non-metallic mineral products
255
24 : Manufacture of basic metals
0
25 : Manufacture of fabricated metal products, except machinery and equipment
355
26 : Manufacture of computer, electronic and optical products
23
27 : Manufacture of electrical equipment
336
28 : Manufacture of machinery and equipment n.e.c.
56
29 : Manufacture of motor vehicles, trailers and semi-trailers
0
30 : Manufacture of other transport equipment
89
31 : Manufacture of furniture
59
32 : Other manufacturing
180
33 : Repair and installation of machinery and equipment
122
35 : Electricity, gas, steam and air conditioning supply
22
36 : Water collection, treatment and supply
0
63
Business Decarbonisation Support
EMSI Havering Number of Employees Table - Continued SIC (07) Group
London Borough of Havering Jobs (2019)
37 : Sewerage
229
38 : Waste collection, treatment and disposal activities; materials recovery
274
39 : Remediation activities and other waste management services. This division
195
includes the provision of remediation services, i.e. the cleanup of contaminated buildings and sites, soil, surface or ground water. 41 : Construction of buildings
1,660
42 : Civil engineering
575
43 : Specialised construction activities
5,463
45 : Wholesale and retail trade and repair of motor vehicles and motorcycles
2,497
46 : Wholesale trade, except of motor vehicles and motorcycles
3,126
47 : Retail trade, except of motor vehicles and motorcycles
9,636
49 : Land transport and transport via pipelines
2,994
50 : Water transport
182
51 : Air transport
0
52 : Warehousing and support activities for transportation
1,476
53 : Postal and courier activities
1,280
55 : Accommodation
467
56 : Food and beverage service activities
4,505
58 : Publishing activities
19
64
Business Decarbonisation Support
EMSI Havering Number of Employees Table - Continued SIC (07) Group
London Borough of Havering Jobs (2019)
59 : Motion picture, video and television programme production, sound recording
132
and music publishing activities
60 : Programming and broadcasting activities
15
61 : Telecommunications
329
62 : Computer programming, consultancy and related activities
1,695
63 : Information service activities
141
64 : Financial service activities, except insurance and pension funding
524
65 : Insurance, reinsurance and pension funding, except compulsory social
44
security
66 : Activities auxiliary to financial services and insurance activities
1,503
68 : Real estate activities
1,194
69 : Legal and accounting activities
810
70 : Activities of head offices; management consultancy activities
1,045
71 : Architectural and engineering activities; technical testing and analysis
466
72 : Scientific research and development
0
73 : Advertising and market research
32
74 : Other professional, scientific and technical activities
293
75 : Veterinary activities
101
77 : Rental and leasing activities
691
78 : Employment activities
1,942
65
Business Decarbonisation Support
EMSI Havering Number of Employees Table - Continued SIC (07) Group
London Borough of Havering Jobs (2019)
79 : Travel agency, tour operator and other reservation service and related
311
activities
80 : Security and investigation activities
596
81 : Services to buildings and landscape activities
4,493
82 : Office administrative, office support and other business support activities
3,797
84 : Public administration and defence; compulsory social security
2,323
85 : Education
6,910
86 : Human health activities
8,001
87 : Residential care activities
3,088
88 : Social work activities without accommodation
2,850
90 : Creative, arts and entertainment activities
141
91 : Libraries, archives, museums and other cultural activities
161
92 : Gambling and betting activities
220
93 : Sports activities and amusement and recreation activities
1,529
94 : Activities of membership organisations
342
95 : Repair of computers and personal and household goods
103
96 : Other personal service activities
1,100
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Business Decarbonisation Support
Table 4-5. Number of Businesses in Havering by Employment Size Band
MediumMicro (0 to Small (10 sized (50 to Large (250+ SIC Section 9 to 49 249 employees) employees) employees) employees) F : Construction M : Professional, scientific and technical activities G : Wholesale and retail trade; repair of motor vehicles and motorcycles J : Information and communication N : Administrative and support service activities H : Transportation and storage I : Accommodation and food service activities Q : Human health and social work activities C : Manufacturing S : Other service activities L : Real estate activities K : Financial and insurance activities P : Education R : Arts, entertainment and recreation E : Water supply; sewerage, waste management and remediation activities A : Agriculture, forestry and fishing D : Electricity, gas, steam and air conditioning supply B : Mining and quarrying
2,400
65
10
0
1,330
35
10
0
1,210
110
10
0
845
15
5
0
775
65
15
5
490
40
5
0
410
55
5
5
275
120
15
5
355
40
10
5
355
25
0
0
255
20
0
0
145
5
5
0
95
40
10
5
105
15
5
0
35
5
0
0
25
5
0
0
10
0
0
0
0
0
0
0
Source: NOMIS https://www.nomisweb.co.uk/query/select/getdatasetbytheme.asp?theme=49
67
Business Decarbonisation Support
68
Eunomia.co.uk
