1. Energy Efficiency –
Realising the potential
THINK.CHANGE.DO
A set of teaching resources that educators can use
to develop two-hour Interactive Seminars on energy
efficiency for accountants and business managers
9 May, 2012

2. Referencing this material
> This material has been developed by UTS Business
School and is supported by the NSW Government as
part of the Energy Efficiency Training Program.
> If using this material please acknowledge as follows:
– Benn, S., Brown, D., Brown, P., Crittenden, P., and
Krithinakis, A., 2012. Leadership & Change for Energy Efficiency in
Accounting & Management – Interactive Seminar Training Materials.
The project is supported by the NSW Government as part of the
Energy Efficiency Training Program.

3. Using this material
> This slide set and notes are intended to be used by
trainers and educators as a resource to develop
teaching materials on energy efficiency.
> Examples of the way in which these materials have
been adapted for particular target audiences are
available from www.business.uts.edu.au/energyefficiency

4. Disclaimer
> This presentation presents the views of the authors, and
not the views of UTS, or any other party.
> This presentation is for educational purposes only and
does not contain specific or general advice.
> Please seek appropriate advice before making any
financial decisions.
> Reference list is provided at the end of the presentation

5. Contents of the slide pack (1 of 2)
1. About the project: Leadership & Change for Energy
Efficiency in Accounting & Management
2. Introduction to the interactive seminars
3. Energy Efficiency – Business risks & opportunities
4. How leading organisations are responding to energy
efficiency – Business risks and opportunities
5. Barriers to energy efficiency improvement

6. Contents of the slide pack (2 of 2)
6. Energy efficiency – actions accountants & business
managers can take
7. Insights from „The Business Case and Beyond‟
Project
8. Questions to support interactive group work
9. Next steps

7. 1. About the project: Leadership & Change
for Energy Efficiency in Accounting &
Management
THINK.CHANGE.DO

8. ‘Leadership & Change for Energy Efficiency in
Accounting & Management’ project funding
> Office of Environment and Heritage NSW funding
> The „Energy Efficiency Training Program‟ aims to
support the development and delivery of higher
education courses that enhance energy efficiency
knowledge and practice
> All project materials are publicly available

9. Key Project Partners
> UTS Business School
> Ernst & Young
> Chartered Institute of Management Accountants
(CIMA)
> Westpac
> TAFE NSW, Sydney Institute

10. Project
Overview Training Needs Analysis
Interactive seminars
C-suite webinar Evaluation
Teaching
cases Modular 2-day course
Integrated university
offerings

11. Training Needs Analysis – Key Themes
> Organisational response to energy efficiency needs
to be cross-disciplinary
– Accountant as business partner
> Soft skills as well as analytical/ technical skills are
important
– Communication
– Influencing others
– Partnering
– Change management
– Team building
– Problem solving

12. Training Needs Analysis – Key Themes
> The rationale for action/ importance of Energy
Efficiency is a fundamental starting point
> Application/ approach will vary across:
– Public and private sector
– Type of industry sector
– Firm strategy
– Firm culture

13. Training Needs Analysis - Skills
Soft Energy Efficiency Fundamentals
Skills
Developing the business case for an Energy Efficiency project
Extending accounting tools to an Energy Efficiency context
Modifying information systems to support Energy Efficiency
Budgeting & Finance

14. 2. Introduction to the interactive
seminar
THINK.CHANGE.DO

15. Interactive Seminar - Aim
> To explore the role that accountants and business
managers play in managing risk and delivering
opportunities through energy efficiency in business

16. Interactive Seminar - Outcomes
> By the end of the seminar you will:
– Learn from others about energy efficiency and the
role that accountants & business managers can
play
– Share your own experience
– Identify additional actions that you could take to
drive energy efficiency improvement in your
organisation

17. 3. Energy Efficiency – Business
Risks & Opportunities
THINK.CHANGE.DO

18. What is Energy Efficiency?
> Energy efficiency primarily refers to end-use
efficiency
> It involves delivering equal or greater levels of
“energy services” with less energy supply
> Energy services include
cooling, heating, lighting, driving motors, operating
equipment and appliances
Dunstan et al. 2011, p.10

19. Global sources and use of energy
19
http://www.newscientist.com/data/images/ns/sreport_
graphic/energy-fuels-mg18725151500.jpg

20. Electricity generation by fuel type in Australia
Source: Geoscience
Australia p. 34

21. 62 units lost
2 units lost
The boundary
100 units of
energy input
The electricity
supply chain
34 units lost
2 units of light energy Adapted from: National Academy
delivered of Sciences 2008, p. 8

22. The boundary
Energy efficiency example
End-use energy
efficiency delivers
benefits across the
electricity supply chain
Adapted from: National Academy of Sciences 2008, p. 8

23. Four key business risks that energy
efficiency can address
> Cost containment
> Carbon pricing
> Compliance with legislation
> Licence to operate

24. Business risk: Cost containment
> Electricity prices are rising
> Oil price highly variable
Energy efficiency is effective in
reducing the business impact of
rising and variable energy costs

25. Source: Geoscience Australia 2010, p. 18

26. Source: Geoscience Australia 2010, p. 28

27. Business Risk: Carbon pricing
> From July 2012 - carbon price of
$23 a tonne, 2.5% increase p.a
> Fixed for 3 years then market-based
> Direct liability = Direct costs
> Increased costs in the supply chain
= flow through impact on your business
Energy efficiency is the most cost-
effective way of reducing the
impact of a price on carbon

28. Business Risk: Compliance with legislation
> Some relevant current legislation:
– National Greenhouse and Energy Reporting Act 2007
– Energy Efficiency Opportunities Act 2006
– Renewable Energy (Electricity) Act 2000
– Building Energy Efficiency Disclosure Act 2010
– Energy and Utilities Administration Act 1987
– NSW Water and Energy Savings Action Plans
– Competition and Consumer Act 2010 (formerly Trade
Practices Act 1974)
– And other accounting, reporting, and auditing
standards

29. Business Risk: Compliance with legislation
(con’t)
> Exposure draft ISAE 3410 Assurance Engagements
on Greenhouse Gas Statements
> Environmental Claims in Advertising and Marketing
Code
> ISO and other quality assurance guidelines
Legislative compliance associated with
energy efficiency and greenhouse related
issues is increasingly complex

30. Business Risk: Licence to Operate
Some stakeholder perspectives:
> Investors – Can energy efficiency provide a proxy
indicator of good management?
> Community – Why isn‟t this organisation acting on
cost effective opportunities to reduce greenhouse gas
emissions?
> Regulators – Perceived market failures justify
intervention
Organisational stakeholders are increasingly
aware that energy efficiency has important
business, environmental and social benefits.

31. Other business drivers and opportunities
> Your competitors are doing it!
 See public reports from companies in the
Energy Efficiency Opportunities program to
compare your performance
www.energyefficiencyopportunities.gov.au
See the Carbon Disclosure Project
www.cdproject.net

32. Ethical Reasons (Greenhouse Gas
Emissions)
32
Source: Garnaut Climate Change Review 2008, p. 88

33. 4. How leading organisations are
responding
THINK.CHANGE.DO

34. Example - The GPT Group
Source: Accessed 6/9/11 from www.gpt.com.au/content.aspx?urlkey=Energy

35. Example - The GPT Group (con’t)
> Senior management support The GPT
Group have
> Appropriate resourcing
put the right
> Data measurement and reporting systems in
> Staff recruitment and training place to deliver
> Performance management system results.
Energy Efficiency is considered an opportunity
to create a competitive advantage.
Source: http://eex.gov.au/energy-management/the-business-case-and-beyond/
industry-case-studies/

36. Example - Linfox Australia
Source: Linfox Energy Efficiency Opportunities Public Report 2010, p. 17

37. Example - Linfox Australia
Source: Linfox Energy Efficiency Opportunities Public Report 2010, p. 17

38. 5. Barriers to energy efficiency
improvement
THINK.CHANGE.DO

39. Many cost effective energy efficiency
projects are available ... But are not
being implemented …
Source: McKinsey & Company, 2008.
Why is this so?

40. Barriers to energy efficiency improvement in
business
Dunstan et al. 2011, p.10

41. Example – Split incentives in the real estate
sector
Source: WBCSD 2009, p. 12

42. 6. Energy efficiency – actions accountants
and business managers can take
THINK.CHANGE.DO

43. Energy Efficiency Fundamentals
- Establish your energy base case
> Not just the level of energy
> It is the expected level of energy, for an expected
level of activity
> Expected Energy = Fixed Energy + Variable Energy * Activity
> How is this different from estimating „predetermined
overhead rates‟?
– Units are different ($ and kilowatt-hours or Giga
Joules)
– Energy complies with the laws of thermodynamics
(unlike people)

44. Establish your energy base case
> Estimation methods are similar to cost accounting:
– Regression Analysis
– Modelling/ simulation (like input/ output analysis)
– Short term metering
– Long term metering
> Engineering models and equipment are used, so
work with a specialist
– e.g. Consider the effect of weather on demand for energy

45. It is important to clearly identify
organisational activities and boundaries
> Information „should‟
link with existing
accounting structures
> Base line review is
likely to reveal
opportunities, which
will justify further
expenditure as
opportunities become
known Source: RET 2008

46. It is important to clearly identify organisational
activities and boundaries (cont’d)
> We are familiar with the value chain approach, and the
benefits of linking resources consumption with activities
> Figure of generic value chain (Porter, 1985) sourced from Cooremans (2011)

47. Energy Base case information
> Here are some examples of the type of information
useful for identifying EE opportunities Source: RET 2008

48. Developing the business case for an energy
efficiency project
> Clear identification of the costs and benefits
– Translated into NPV, IRR, Payback etc
– Opportunity cost
> Identifying direct costs and cost savings may rely on
engineering analysis, as well as cost analysis
– e.g. A process change effect on your base case
and on demand for labour
> All costs and benefits should be included
– Information value, strategic value

49. For example
> A building in NT implemented a range of EE projects
Total Annual Consumption for 04/05 in kWh: 1,605,138
Total Annual Consumption for 05/06 in kWh: 1,597,135
Naive Energy Saving in kWh: 8,003
> Linear regression was used to control for differences
in weather (the base year had a cool summer)
Total Annual Consumption for 04/05 in kWh: 1,775,546
Total Annual Consumption for 05/06 in kWh: 1,597,135
Energy Saving in kWh: 178,411
Difference is a 10% saving vs a 0.5% saving in energy

50. Hints
> Start simply, and do something:
– Find out what is happening in your
organisation
– Review electricity statements for different
facilities
– Review energy supply contracts

51. Some suggested places to start
> Revisit your energy accounting system
– http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/esmg/Pages/default.a
spx
> Set up a register and systems to identify and manage energy
efficiency opportunities
– http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/csm/Pages/default.as
px
> Obtain subsidised energy audits (for some NSW firms)
– http://www.environment.nsw.gov.au/sustainbus/energyauditing.htm
> Visit our website
– http://www.business.uts.edu.au/energyefficiency

52. Hints
> Organise data to match current
reporting systems
– e.g. batch vs process costing; KPIs
> Let people know what you are doing and
make data transparent

53. Hints (cont.)
> Conduct an energy information audit:
– Ensures your organisation captures new
knowledge
> Find champions in each major facility and
department and let them loose with some
decision making rights

54. Developing the business case for an energy
efficiency project
> Improved product > Product quality
quality
> Increased reliability > Greenhouse gas
in production reductions
> Improved > Safety
temperature control
> Improved reputation
Include all business costs and
benefits to increase the chance of
success

55. Useful information for preparing the
business case
> Costs are easier to identify than benefits
– Labour, equipment, consultants etc
> To assist in the identification of benefits, we have
provided a checklist:
– The 6 key drivers of EE discussed in the
beginning of the presentation
– a list of benefits identified in reviews of the
literature (Worrell et al 2003; Cooremans, 2011)
• See additional slides at end of presentation

56. Building the Business Case – A new method
for evaluating energy efficiency projects
> There are a number of problems with how some
organisations evaluate energy efficiency projects
– Exclusion of relevant cost and benefits
• Lack of education
• Difficulty in assessing
– Not making the link between the project and the firm‟s
strategy (Cooremans 2011)
– Risk of project is not assessed/ presented well
• Using firm-level hurdle rates (rather than risk adjusted)
• Consider best vs worst case
– Using payback period as a key decision tool

57. What is wrong with payback and NPV?
Project Scenario: A B C D E
Initial Investment $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000
Life of project (years) 10 10 15 15 15
First year cash profit $ 25,000 $ 25,000 $ 25,000 $ 17,500 $ 17,500
Yearly growth rate for cash profit
0% 0% 0% 5.0% 5.0%
Hurdle Rate 15% 8% 15% 15% 8%
Payback Period (years) 4.00 4.00 4.00 5.20 5.20
Net Present Value (NPV) $ 25,469 $ 67,752 $ 46,184 $ 30,289 $ 101,037
Equivalent Annual Cashflow
(EAC)
$ 5,075 $ 10,097 $ 7,898 $ 5,180 $ 11,804

58. Mutually Exclusive Projects with Unequal
Lives
In many cases a choice will need to be made between projects that have
differing lives.
The Equivalent Annual Cashflow method (EAC)
Equivalent annual cashflow (EAC) is the calculation of an annuity value
having the same term, rate of return and net present value as the project
that it represents.
To determine the Equivalent Annual Cashflow (EAC) of a project:
1. Calculate the NPV of the project‟s cashflows.
2. Divide the NPV by the annuity factor relating to the time in years
and the relevant Discount Factor to determine an annual cashflow
figure.
That is, the EAC of a project is calculated by dividing the NPV of the
project by the annuity factor, relevant to the project life and the company‟s
cost of capital (refer to the calculation of the „PMT‟, i.e. Payment, function
using Excel).
Source: Pazmandy, G. and Brown, P. J. (Ed), 2008.

59. Illustrative Example - EAC
Using two projects, Project A has a life of 2 years, and Project B with a life of 3 years. The
company‟s cost of capital is 10%. Cash flows are as follows:
Project A Project B
Initial Cost -$4,800 -$8,200
Annual After Tax Cash Inflows:
Year 1 +$3,000 +$3,500
Year 2 +$3,000 +$3,500
Year 3 +$0 +$3,500
Cost of Capital 10%
Solution to Illustrative Example - EAC:
To select the most profitable project, they will need to be transformed to a uniform time
period to enable the comparison to be effected.
Step 1 Calculate the Net Present Value of the Project
Project A Project B
Project Net Present Value = +$406.61 +$503.98
The above NPVs are not comparable as Project A is for 2 years, whereas Project B has
a 3 year life. To enable the comparison, the NPV has to be converted to an Equivalent
ANNUAL amount.
Source: Pazmandy, G. and Brown, P. J. (Ed), 2008.

60. Illustrative Example – EAC (cont’d)
Step 2 Convert the Net Present Value to an Equivalent Annual Cashflow
amount using the PMT (Payment) function in Excel or the
formula
• Equivalent Annual Cashflow = NPV/ Annuity PV Factor
• Project A has a useful life of 2 years
– The Annuity PV factor for 2 years is 1.7355
– Therefore: 406.61 / 1.7355 = 234.29
• Project B has a useful life of 3 years.
– The Annuity PV factor for 3 years is 2.4869
– Therefore: 503.98 / 2.4869 = 202.66
Project A Project B
Equivalent Annual Cashflow = $234.29 $202.66
Using the EAC method, Project A has the higher positive EAC and
would be accepted in preference to Project B. Note that this is
consistent with the decision made using the lowest common multiple
time period method.
Source: Pazmandy, G. and Brown, P. J. (Ed), 2008.

61. The Brown Marginal Abatement Cashflow
Curve (BMACC)
> Extends the Marginal Abatement Cost Curves (MACC), such as
the McKinsey MACC, which we have seen used in practice
> Different (better) to other MACCs because:
– Uses Equivalent Annual Cashflow, not NPV or payback
– Includes a risk distribution
– Includes unique colour coding scheme
– Includes other information
> Creative Commons licence

62. The Brown Marginal Abatement Cashflow
Curve (BMACC) (cont.)
160
better
Brown Marginal Abatement Cashflow Curve (BMACC)
140
Equivalent Annual Cashflow*
or Project F Strong Strategic alignment
120
Medium Strategic alignment
100 Weak Strategic alignment
80
60
40
or Project A
20
6 yr life
2 yr life 3 yr life 4 yr life 5 yr life 6 yr life 7 yr life 1 yr life
0
Project A Project B Project C Project D Project E Project F Project G
-20
-40
-60
worse GHG Emissions Abatement (per year)#
Source: Brown, P. J., Brown Marginal Abatement Cashflow Curve (BMACC), UTS Business School, URL:
http://www.business.uts.edu.au/energyefficiency/project-material.html'

63. Controlling performance using budgets and
variance analysis
Environmental and social performance can be controlled using standard
Management Accounting technology such as budgets, in the same way as
economic performance is controlled
Project evaluation budget: Economic, social and environmental impacts of possible
projects are identified and considered during project evaluation. This involves
doing a forecast and budget, and consideration of the strategic value of each
project.
Formal budget: Once projects have been selected, a formal budget is prepared, this
includes who is responsible for which tasks, the setting of targets and reward
structures.
Project enacted: The project is enacted, and data is collected to allow management to
track progress.
Variance analysis: At intervals (monthly, quarterly, yearly), the budget is compared to
actual results using variance analysis. Variances are investigated and action taken
to enhance performance.

64. Developing an energy budget using multiple
regression
Example: Using multiple regression, Coles has identified that total energy usage is
distributed between three main activities with the following activity drivers:
kWh per Activity Activity Activity Driver
52,121 Fixed Usage -
558 Lighting Selling area (m2)
852 Refrigeration Volume Cool with no doors(m2)
922 Refrigeration Volume Frozen with doors (m2)
719,103 Air conditioning No entrance air lock
Therefore, the multiple regression model is:
Total Electricity Usage (kWh) = 52,121 +
558 x Selling area (m2) +
852 x Cool with no doors (m2) +
922 x Frozen with doors (m2) +
719,103 x No entrance air lock
Adapted from RET 2008

65. Example (cont’d)
Coles wishes to assess the total electricity usage of store 2 using the following
information:
Selling area (m2) = 3500
Cool with no doors (m2) = 650
Frozen with doors (m2) = 340
No entrance air lock = False (0)
Calculate the total electricity usage for the Coles Gisborne branch.
Total Electricity Usage (kWh) = 52,121 + 558 x 3500 + 852 x 510 + 922 x 310 +
719,103 x 0 = 2,872,401 kWh
Therefore, if energy costs were expected to be 20c per kWh for the next year, the
budget for store 2 would be: $545,092 (2,725,461*0.2)
Adapted from RET 2008

66. Coles stores’ electricity consumption actual
and predicted by regression
Source: RET 2010

67. Variance Analysis using dollars
> Construct an energy budget model
– Probably with some engineering assistance
> Apply well known variance analysis formulae
Energy Price Variance = Actual kWh*(Actual Price – Standard Price)
Energy Variance = Standard Price*( Actual kWh – Budgeted kWh)
> Standard price is your budgeted price

68. 7. Insights from ‘The Business Case and
Beyond’ Project
THINK.CHANGE.DO
Note: These slides on the project „The Business Case and Beyond‟ have been
adapted from a presentation first developed by Patrick Crittenden for the Energy
Efficiency Opportunities Workshops in September 2011. The project was funded
by the Australian Government, Department of Resources, Energy and Tourism.
Case studies and other material on the „The Business Case and Beyond‟ project
are available at www.eex.gov.au/energy-management/the-business-case-and-
beyond/.

69. ‘The Business Case and Beyond’ project
Companies involved:
> Rio Tinto Iron Ore
> Australia Post
> Ron Finemore
> Centennial Coal Co.
Transport
> Downer EDI Mining
> Foster‟s Group > Simplot Australia
> Linfox > Spotless Group
> National Australia Bank > Sydney Water
> New Hope Corporation > The GPT Group
> Newmont Asia Pacific
> Woolworths
Adapted from: www.eex.gov.au/energy-management/the-business-case-
and-beyond/

70. The question…
What do you do that helps get
support and resources for
energy efficiency projects?

71. 1. Link your project to business priorities
> Piggyback on whatever is „hot‟ in the
business right now
> Solve an existing problem through your
„energy efficiency project‟
> Use compliance requirements to drive
change
Adapted from: www.eex.gov.au/energy-management/the-business-case-
and-beyond/

72. The GPT Group:
530 Collins St Melbourne Upgrade
Source: http://eex.gov.au/case-study/the-gpt-group-energy-performance-
contracting-for-cogeneration-and-energy-efficiency-initiatives-at-530-
collins-st-melbourne/

73. The GPT Group:
530 Collins St Melbourne Upgrade (cont.)
Source: http://eex.gov.au/case-study/the-gpt-group-energy-performance-
contracting-for-cogeneration-and-energy-efficiency-initiatives-at-530-collins-st-
melbourne/

74. 2. Involve the right people
You can’t work in silos. Get the right
people with different expertise involved.
It is the only way to build a credible
business case for a project .

75. Ron Finemore Transport:
Modification of trailers on bulk tipper trucks
Benefits:
> The same amount of product is transported with 74
fewer truck trips/annum, resulting in 72,000 avoided
truck kilometres travelled
> 38,000 litres of fuel saved per annum
> Shared financial benefits for the customer and Ron
Finemore Transport
> Reduction in greenhouse gas emissions of 103
tonnes CO2e-/per annum
> Benefits to the community through fewer truck
movements.
Adapted from: http://eex.gov.au/case-study/ron-finemore-transport-increasing-payload-capacity-on-bulk-tipper-
trucks/

76. 3. Communicate with decision makers early
> Use existing communication forums such as
management meetings
> Use the right „business speak‟
> Use clear and focused messages and
questions
Adapted from: www.eex.gov.au/energy-management/the-business-case-
and-beyond/

77. 4. Identify and manage project risks
Thinking about a project from a risk
perspective helps you reduce the chance of
unforeseen things happening…it demonstrates
that you have thoroughly thought the project
through

78. 5. Consider all business costs and benefits
> Cost reduction > Product quality
> Salvage value > Greenhouse
> Maintenance gas reductions
benefits > OH&S
> Deferred
CAPEX > Corporate
> Productivity reputation
Source: Worrell, E., Laitner, J., Ruth, M., & Finman, H., 2003

79. 6. Identify funding options
> R&D tax breaks
> Government funding
> Energy performance contracting
> Internal energy funds
See: http://eex.gov.au/energy-management/the-business-case-and-beyond/
developing-your-business-case-six-strategies/consider-a-range-of-funding-options/

80. Six key strategies
See: http://eex.gov.au/energy-management/the-business-case-and-beyond/
developing-your-business-case-six-strategies/consider-a-range-of-funding-options/

81. Some unexpected answers
This is what we do to influence our
company culture, systems and
processes to improve the success-
rate of future projects…

82. 1. Monitor, verify and promote success
> Budget for monitoring & verification as part
of the the business case proposal
> Leave room to deliver more than you
promise
> Make sure the right people know what has
been achieved and keep it on record
See: http://eex.gov.au/energy-management/the-business-case-and-beyond/
influencing-company-culture-systems-and-processes/monitor-verify-and-promote-successful-projects/

83. 2. Regularly brief management
> Business drivers, risks and opportunities
change – keep managers informed
> Communicate information about what your
competitors are doing (or not!)
> Use relevant graphs and statistics – for
example, how well you are tracking towards
targets
See: http://eex.gov.au/energy-management/the-business-case-and-beyond/influencing-company-culture-
systems-and-processes/regularly-brief-management-on-energy-risks-and-opportunities/

84. 3. Adapt project approval processes
Consider:
> Combining smaller projects into one larger
project
> Establishing an internal fund for energy
efficiency projects
> Adding questions on energy impacts to
capital expenditure approval processes
See: http://eex.gov.au/energy-management/the-business-case-and-beyond/influencing-company-
culture-systems-and-processes/streamline-and-adapt-project-approval-processes/

85. An important message…
Get the technical detail right
(engineering and accounting)
AND
Develop strategies to
“win friends and influence people”
(getting support and resources for
anything
is a political process!)

86. 8. Questions to support
interactive group work
THINK.CHANGE.DO

87. The exercise is to be introduced by
the facilitator/ MC.
Ask participants to spend 5-10
minutes in pairs or triads
discussing the questions.

88. Interactive exercise #1
> How is energy efficiency managed in your
organisation?
> What are some of the challenges?
> What results have been achieved?

89. Interactive exercise #2
> What role do you play in progressing your company‟s
energy efficiency performance?
> How else could you contribute to progressing your
company‟s energy efficiency performance?

90. 9. Next steps
THINK.CHANGE.DO

91. Where to find helpful information about
energy efficiency
> All teaching resources are available from
www.business.uts.edu.au/energyefficiency
> NSW and Federal Government provide training and
education materials.
– For example, see:
www.environment.nsw.gov.au/
www.energyefficiencyopportunities.gov.au

92. Further training options
> NSW and Federal Government provide training and
education materials:
http://www.environment.nsw.gov.au/sustainbus/greenskills/eneftraining.
htm
> NSW government has also provided information on
where to access training. See:
https://www.training.nsw.gov.au/programs_services/funded_apl/ssp/gs
bi.html

93. Where to from here
> Some suggested places to start:
– Revisit your energy accounting system
http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/esmg/Pag
es/default.aspx
– Set up a register and systems to identify and
manage energy efficiency opportunities
http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/csm/Page
s/default.aspx
– Obtain a subsidised energy audit (for some NSW
firms)
http://www.environment.nsw.gov.au/sustainbus/energyauditing.ht
m

94. References
> Australia Industry Group 2011. Energy shock: confronting higher prices.
> Bureau of Meteorology & CSIRO. 2010. State of the Climate.
> Benn, S., Brown, P., Brown, D., Crittenden, P., and Krithinakis, A., 2011, Leadership & Change for Energy Efficiency in
Accounting & Management: Training Needs Analysis, Version 1.0, September 2011, Report for the Office of
Environment and Heritage NSW.
> Brown, P. J. 2012, Brown Marginal Abatement Cashflow Curve (BMACC), UTS Business School, URL:
http://www.business.uts.edu.au/energyefficiency/project-material.html
> CIMA. 2010. Accounting for climate change. How management accountants can help organisations mitigate and adapt
to climate change, September 2011
http://www.cimaglobal.com/Documents/Thought_leadership_docs/cid_accounting_for_climate_change_feb10.pdf
> Cooremans, C, 2011, Make it strategic! Financial investment logic is not enough, Energy Efficiency, vol. 4, No. 4, pp.
473 – 92
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97. Appendix
> This information may be printed and provided as a
handout rather than presented.

98. Some sources of competitive advantage from EE: REDUCED
RISKS (from Worrell et al 2003 and Cooremans, 2011)
> Reduced hazardous waste
> Reduced dust emissions
> Reduced CO, CO2, NOx, Sox emissions
> Increased facility reliability
> Reduced wear and tear on equipment /machinery
> Decreased liability
> Legal risks
> Carbon & energy price risks
> Disruption of energy supply
> Commercial risk

99. Some sources of competitive advantage from EE: REDUCED
COSTS (from Worrell et al 2003 and Cooremans, 2011)
> Use of waste fuels
> Reduced product waste
> Reduced waste water
> Materials reduction
> Increased product yield
> Improved equipment performance
> Shorter process cycle time
> Reduced dust emissions
> Reduced CO, CO2, NOx, SOx emissions
> Reduced wear and tear on equipment, machinery

100. Some sources of competitive advantage from EE: REDUCED
COSTS (from Worrell et al 2003 and Cooremans, 2011)
> Decreased liability
> Reduced need for personal protective equipment
> Improved lighting
> Reduced turnover, absenteeism and health costs
(improved worker morale, reduced noise, improved
air quality and temperature control)
> Reduced needs for engineering controls
> Lowered cooling requirements
> Reductions for labor requirements
> Delaying or reducing capital expenditure
> Additional space