Arla is the UK’s leading dairy company with an annual turnover of £2bn and a milk ‘pool’ of 3.2bn litres from more than 3,000 farmers.
Well-known for brands such as Cravendale, Anchor and Lurpak, Arla is the largest supplier of butter, spreads and cheese in the UK. The company employs around 4,000 people.
With a firm commitment to the environment, Arla was the first dairy processor to create an environmental strategy which applies also to their supplying members. The strategy means Arla is planning to source 30% of its energy from renewable sources by 2020 and meet challenging targets for reduced water consumption, improve packaging and supporting farmers to reduce on-farm emissions.
The project brief
We were engaged to assist Arla’s National Distribution Centre in Leeds to identify the potential eligibility of the site and enable participation within the Climate Change Agreement (CCA) Scheme.
The CCA scheme allows businesses to claim a rebate of up to 90% on the environmental tax they pay on their electricity invoices and up to 65% on the environmental tax they pay on their gas invoices. In return, members have to show they are achieving a measurable improvement in energy efficiency.
Initially we recognised that the processes carried out at site were eligible under the CCA Scheme and identified a relevant trade association through which an application could be made. We then developed a full application and supported this through to a successful conclusion on Arla’s behalf. This has provided a considerable financial saving to Arla, but also ensures a focussed effort to reduce energy consumption and ensure the environmental impact of the company is maintained.
Having successfully applied to join the CCA scheme, we now work with Arla to manage their CCA, which includes providing the required returns to the Trade Association and Environment Agency. Also, information on the energy used by the facility and performance against the CCA targets are reviewed regularly by IEC to ensure targets are achieved and the rebate is maintained.
By having a CCA in place it enables Arla to save around £14,000 per year in energy tax costs at their NDC cold storage site.
What the client says:
IEC is a great team to work with. They understand the CCA scheme inside out so they have guided us through the application process, ensuring everything ran smoothly.
What’s particularly helpful is their collaborative, longer-term approach. We will work with IEC on an ongoing basis to monitor energy usage and ensure we achieve our commitment in relation to the CCA.