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Case Study: Carbon Compliance Services (ESOS)

Customer Overview

Omnicom Group Inc. is a leading global advertising and marketing communications services company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and other specialty communications services.

Challenge

With an annual electricity bill of approximately £3m, Omnicom was seeking a total energy solutions provider to support the following key areas: compliance with the ever-changing EU and regional regulations, streamlined energy procurement, and fixed cost reduction.

World Fuel Solution

World Fuel carried out a comprehensive energy audit within Omnicom HQ for the first phase of Energy Saving Opportunity Scheme (ESOS) and executed an energy procurement exercise.

World Fuel delivered ESOS Phase 1 compliance to protect against financial and reputational penalties, identifying energy, cost and carbon emission savings.

We managed Omnicom’s mandatory participation in the Carbon Reduction Commitment (CRC) legislation, ensuring all reporting, carbon purchase, and allowance surrender deadlines are met.

World Fuel identified additional annual savings where Omnicom were able to reduce their load in times of high cost, such as the TRIAD periods in the Winter months.

The procurement strategy review recognised an additional £100,000 in fixed cost savings, while our forensic bill auditing found and rectified more than £50K in incorrect charges and overpayments from energy suppliers

Our engineers determined that the site-wide uninterruptible power supply & backup generating facilities could be employed to support the National Grid’s Demand Side Response (DSR) programme – providing an additional revenue stream and substantially reducing invoiced electricity costs.

Business Impact

Due to the World Fuel’s custom ESOS provision, Omnicom was fully ESOS-compliant, with easy access to all required reporting. The provision saved over £350K equating to a reduction of 1,500 tons of CO2 a year. TRIAD management reduced load and annual electricity costs by £124K. Additional revenues of £100K per year are forecasted for the DSR program. Omnicom gained a total energy solutions provider who can provide continuous advice on Phase 2 of ESOS and many other energy and carbon reduction opportunities in the future.

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Reduction of 1,500 tonnes of CO2 per year

€100K/YR additional DSR revenue

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€350K in ESOS provision savings

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€124K in triad electricity savings

“With an ever-changing energy and compliance landscape, we need an energy expert we can trust to not only advise, but deliver on our behalf. World Fuel understands our business and the challenges we face, delivers value in a competitive market place, and ensures we comply with the letter of all environmental legislation.”

TONY PHIPKIN DIRECTOR OF FINANCE, OMNICOM MANAGEMENT EUROPE