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Carbon Footprinting Compliance Schemes - Australia

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Matt Drum and Ray Kan of Ndevr present Oracle's Environmental Accounting and Reporting solution in E-Business Suite R12, and JD Edwards EnterpriseOne, as well as a full demonstration of the sustainability reports that can be generated from these modules using BI.

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Carbon Footprinting Compliance Schemes - Australia

  1. 1. Carbon Footprinting for Compliance Schemes matt.drum@ndevr.com.au ray.kan@ndevr.com.au The most comprehensive Oracle applications & technology content under one roof
  2. 2. Objectives1. Introduction – policy and legislation2. Emissions scopes – brief overview3. Reportable emissions and liable emissions – NGERs vs. CPM4. Thresholds – NGERs vs. CPM5. Methods for measurement6. Data capture and management – IT systems7. Overview Oracle Environmental Accounting and Reporting8. Accounting for Carbon9. Daily Processing JDE and E-Bus10. Implementation Overview11. After the Implementation The most comprehensive Oracle applications & technology content under one roof
  3. 3. Mandatory Reporting NGERs & CPM & MoreNGERsNational Greenhouse and Energy Reporting (NGER) Act 2007 – Originally designed to closely underpin the emissions trading system which was shelvedCPMCarbon Pricing Mechanism – provided for by the Clean Energy Act 2011 – Introduced carbon price on the economy – Very much an upstream liability focus - 300 liable entities (CPM) vs. 800 (NGERs)Voluntary Schemes – GRI – NCOS (carbon neutral) – General Sustainability reporting – often tied to Annual ReportsInternational – NZ ETS – California ETS – begins 1 January 2013 – China – seven major provinces kicking-off from 2013 The most comprehensive Oracle applications & technology content under one roof
  4. 4. Carbon Emissions’ Scopes Scope 1-3 emissions sources(2008, National Greenhouse andEnergy Reporting Guidelines,Australian Government,Department of Climate Change,p. 10) The most comprehensive Oracle applications & technology content under one roof
  5. 5. Measuring Emissions• The four challenges• Uncertainty• Methods 1 to 4• Data source and factors uncertainties• Energy• Penalties • Up to $1.1M for CPM - serious non-compliance The most comprehensive Oracle applications & technology content under one roof
  6. 6. Principles of the Measurement1. Completeness2. Accuracy3. Comparability4. Transparency• Can be difficult to achieve for large sprawling organisations• Multiple sites, thousands of energy and supply accounts The most comprehensive Oracle applications & technology content under one roof
  7. 7. Pressure EverywhereRegulatory Pressure Stakeholder Pressure• How do I meet my regulatory • How do I meet increasing reporting requirements? demands for transparency?• How do I report more efficiently • How do I protect and build the and with a higher level of organization’s brand? confidence? Collect Data Calculate & Analyze ReportCost Reduction Increased Competition• Where can I reduce environmental • How can I respond to the peer impacts while also reducing costs? activity in the space?• How do benchmark and share best • How can I increase margins and practices across the organization? gain market share? The most comprehensive Oracle applications & technology content under one roof
  8. 8. Operational Challenges Facilities Multiple, Fragmented Systems • Silos of information • InefficienciesEnvironmental Impact Sources Mobile Assets Manual, Error-Prone Processes • Data extraction and transformation • Adjustments and eliminations Aggregation Suppliers Accounting Challenges • Standards • Currencies • Access Control • Auditability Other Sources Lack of Actionable Business Data • Unreliable • Latency Lengthy reporting process with weak internal controls Complex systems that cannot identify new opportunities Disconnect between strategy and execution The most comprehensive Oracle applications & technology content under one roof
  9. 9. NGER’s Reporting• What did you do last week?• How did your firm total your NGER’s data? – spreadsheets, templates, pivot tables, vlookups, trim, if(isna) … – photocopies of invoices – photocopies of scans of invoices – subcontractor energy use• Transparent, Comparable, Accurate, Complete? The most comprehensive Oracle applications & technology content under one roof
  10. 10. Oracle Environmental Accounting & Reporting • Automated, Auditable Collection of GHG and Environmental Data• Data collection using EBS Financials Release 12.1/JD Edwards Release 9• Emissions calculation following Greenhouse Gas Protocol• Pre-built OBIEE reporting and analytics tools, including responses to the Carbon Disclosure Project• Rapid implementation as embedded ERP system component Data collection in Financials• Proven solution built on market leading technology Increase Data Collection Efficiency and Reliability Comply with Global Greenhouse Gas Regulations Improve Environmental and Financial Performance OBIEE Dashboards The most comprehensive Oracle applications & technology content under one roof
  11. 11. Oracle Environmental Accounting & ReportingEnables you to… Automate Environmental Data Collection Leveraging Existing Business Processes Calculate Greenhouse Gas Emissions Auditable and in Line with Global Standards Analyze KPIs and Comply with Regulations Meet Internal Reduction Targets and Report Externally The most comprehensive Oracle applications & technology content under one roof
  12. 12. Oracle Environmental Accounting & Reporting Business Intelligence Dashboards Energy Emissions Metrics Usage Transactions Reporting Environmental Data Warehouse Environmental Data Load Concurrent Request Environmental Ledger Emissions Calculation Engine Environmental Data Collection Invoice Inventory Manual Excel Processing Issues Batches (WebADI) The most comprehensive Oracle applications & technology content under one roof
  13. 13. Oracle EA&R - Making Your Life EasierLocation/GeoData Reporting Flex AccountSegments Emission Facility Source Project CO2 & Energy Rates Company Environ Ledger Business Unit The most comprehensive Oracle applications & technology content under one roof
  14. 14. Oracle EA&R - Process OverviewManual PO withInvoice Inventory Accounts PO AP Payable without OpenInventory Interface Emissions Warehouse Engine Builder Source Orgs Facility Environ. Facility Environ. Ledger Warehouse Calculation EmissionsManualEmission WEBADIBatches EA&R Accounting Emissions Software Open Interface The most comprehensive Oracle applications & technology content under one roof
  15. 15. Reporting Dashboard The most comprehensive Oracle applications & technology content under one roof
  16. 16. Reporting Dashboard The most comprehensive Oracle applications & technology content under one roof
  17. 17. Implementation Overview The most comprehensive Oracle applications & technology content under one roof
  18. 18. Management ReportingOrganisations Levels 1 through 12 The most comprehensive Oracle applications & technology content under one roof
  19. 19. NGERS Reporting The most comprehensive Oracle applications & technology content under one roof
  20. 20. Implementation Overview The most comprehensive Oracle applications & technology content under one roof
  21. 21. Invoice Processing – Emissions Detail with Gas Breakdown The most comprehensive Oracle applications & technology content under one roof
  22. 22. Reporting Dashboard The most comprehensive Oracle applications & technology content under one roof
  23. 23. Reporting Dashboard The most comprehensive Oracle applications & technology content under one roof
  24. 24. Reporting Dashboard The most comprehensive Oracle applications & technology content under one roof
  25. 25. Answers Analysis The most comprehensive Oracle applications & technology content under one roof
  26. 26. Answers Analysis The most comprehensive Oracle applications & technology content under one roof
  27. 27. Answers Reporting results tab to run report The most comprehensive Oracle applications & technology content under one roof
  28. 28. Answers AnalysisOrganisations Levels 1 through 12 The most comprehensive Oracle applications & technology content under one roof
  29. 29. JD Edwards EnvironmentalAccounting and Reporting The most comprehensive Oracle applications & technology content under one roof
  30. 30. Complexity is Hidden Environmental Specifications Source Energy (Content) Factor (GJ/t) Emission Factor (kg CO2-e/GJ) Black Coal 27.0 CO2 CH4 N 2O 88.2 0.03 0.2 Data Source: National Greenhouse Accounts (NGA) Factors, Department of Climate Change, Australian Government Environmental Transactions Source Transaction Quantity (t) Source Type Scope* Transaction Mode Black Coal 20,000 Consumed 1 (Direct) Manual Entry * Based on GHG Protocol Emission Scope Environmental Accounting Energy Consumed EmissionsEnvironmental in GJ Calculation Emissions Emission Type Emissions in kgs of CO2-e Scope 540000 CO2 47,628,000 (20,000 x 27.0 x 88.2) 1 (Direct) CH4 16,200 (20,000 x 27.0 x 0.03) N 2O 108,000 (20,000 x 27.0 x 0.2) Cumulative Total 47,752,200 The most comprehensive Oracle applications & technology content under one roof
  31. 31. EBS Invoice Processing This will allow you to allocateOn detecting the usagean invoice as acrossbeing a EA&R distributiontransaction, a linespop screenautomaticallyappears toenter usage Pressing this button will create the emissions and shutdown the • Automatically detects when additional screen data needs to be entered • Values default data based on setup The most comprehensive Oracle applications & technology content under one roof
  32. 32. EBS Emissions OverridesOverride Rates Override criteria and justification The most comprehensive Oracle applications & technology content under one roof
  33. 33. Associate Environmental Impact to Assets• Leverage Assets already defined in ERP• Set up external Assets as needed Trans Type – Engine TypeEXTERNAL Will have different emission factorsassets areones that donot exist inOracleAssetsINTERNALassets areones that doexist inOracleAssets The most comprehensive Oracle applications & technology content under one roof
  34. 34. Allocate Environmental Impact to Assets Issue Fuel Consumption To Fleet The system will Vehicles Or Other Assets determine the Item The User enters code, sub -inventory the usage & and unit of measure commits the based on setup transaction On selecting the type, user is automatically prompted for the associated AssetUsing the Standard MiscellaneousTransaction Screen In Inventory The most comprehensive Oracle applications & technology content under one roof
  35. 35. Assets Trans Type –EXTERNAL Engine Type assets are ones thatdo not exist in Oracle AssetsINTERNALassets are ones thatdo exist in Oracle Assets The most comprehensive Oracle applications & technology content under one roof
  36. 36. EA&R KPIs User Defined Metrics• Define custom key performance indicators to more deeply analyze key metrics• Normalize data to operational metrics Creating Custom KPIs• Use drag-and-drop BI Answers environment in OBIEE to create custom reports• Rich end user interaction features Example: Diesel Oil Consumed per Kilometer traveled The most comprehensive Oracle applications & technology content under one roof
  37. 37. Implementation Overview• Organisations• Facilities• Reporting Structures (Hierarchies) • Legislative, Management, Responsibility• Configuration • Locations, Transport Types, Emission Types, Measurement Criterion• Emission Sources (energy factors, emission factors) • Parent-Source-Activity • Over-ride factors The most comprehensive Oracle applications & technology content under one roof
  38. 38. Implementation Overview• Payables Business Processes• Environmental Suppliers• Environmental Assets (cars, stationary, transport type)• Environmental Inventory• External Measurements (meters, solar, flows, volumes)• EA&R KPI’s The most comprehensive Oracle applications & technology content under one roof
  39. 39. Implementation Overview• JDE EA&R • EA&R Company Constants • Organization to Business Unit Mappings• E-Business EA&R • Profile Options • Operating Unit Parameters • Project Parameters • Account Segment Values to Facilities The most comprehensive Oracle applications & technology content under one roof
  40. 40. Post Implementation – The Findings• Accurately measure and monitor carbon footprint• Replace laborious, time-consuming spreadsheets used to produce sustainability reports• Reduce human error and save on staffing costs• Comply with the Australian government’s national greenhouse and energy reporting (NGER) Act• Data already available for Clean Energy Act The most comprehensive Oracle applications & technology content under one roof
  41. 41. Key Competitive Benefits• Reduced time taken to generate data for sustainability and NGER reports from three to four months to almost instantaneously• Improved sustainability reports accuracy from 20% error margin to 1% to 2%• Reported accurate breakdown of energy consumption and emissions, such as electricity, gas, and fuel• Removed the need to hire temporary staff• Enabled mining and construction project managers to generate energy consumption graphs and reports• Easy to meet external obligations as a sub-contractor• Reduced external implementation - reuse in house JDE/E-Bus abilities The most comprehensive Oracle applications & technology content under one roof
  42. 42. Lessons Learnt• JDE/E-Bus EA&R and BI EA&R are separate apps (or are they?)• IT and the business must work together• EA&R is intuitive for current users of JD Edwards/E- Bus• Easy to use and produces instant outcomes• EA&R has minimal impact on business processes• Sustainability requirements is not EA&R• Reporting - upfront, flexible, rapid changes• Enable the business with ad-hoc answers reporting The most comprehensive Oracle applications & technology content under one roof
  43. 43. Key Benefits for Data Collection Leveraging Existing Business Processes• Reduced environmental data management costs• Ensure data completeness and avoid manual errors• Flexibility and scalable data collection mechanisms• Leverage existing IT investments• Leverage existing ERP data• Minimize organizational impact• Maintain data integrity and security with single source of truth• Consistent end user experience• Rapid time to value• Seamless integration• Standard look and feel JDE/E-Bus The most comprehensive Oracle applications & technology content under one roof
  44. 44. Key Benefits for Data Collection Emissions• Multiple data entry options• Identify missing data sets• Automate creation of emissions where possible• Support multiple hierarchies for reporting• User access control• Full audit trail, including supporting documentation• Reliable and scalable platform The most comprehensive Oracle applications & technology content under one roof
  45. 45. Key Features for Emissions Calculations Control and Consistency• Identify emission sources and classify by type• Set roll-up aggregation levels• Define emissions factors by source• Set custom emissions factors• Manage emissions factor changes with date effectiveness• Support multiple protocols• Automatically convert units of measure The most comprehensive Oracle applications & technology content under one roof
  46. 46. Key Benefits for Emissions Calculations Auditable and in Line with Global Standards• Ensures compliance with regulatory standards for GHG reporting• Identifies of Scope 1, 2, and 3 emissions• Automatically determines correct emission factor• Enables easy changes to emissions factors over time• Provides complete audit trail for entries and updates• Reduces data assurance costs The most comprehensive Oracle applications & technology content under one roof
  47. 47. Key Features for Analytics and Reporting Meet Internal Reduction Targets and Report Externally• Derive useful business information from raw production and consumption data• Normalize emissions to square footage, number of employees, revenue, or other operational metrics• Link emissions output reductions, energy savings, and other sustainability initiatives to bottom line savings• Pre-built OBIEE dashboards with dynamic user interaction• Custom KPI definition and ad hoc reporting• Set thresholds and management targets• Comparative analysis and benchmarking, including versus baseline• Create scenario based models to answer what-if questions• Support for carbon offset accounting The most comprehensive Oracle applications & technology content under one roof
  48. 48. Provide Visibility & Drive Performance With Oracle Business Intelligence Analytics Emissions by Scope• Derive useful business information from raw production and consumption data• View pre-built OBIEE reporting and analytics tools• Configurable OBIEE dashboards to track areas of risk Emissions by Facility• Manage performance against targets• Drill down into graphical output of past, current, and projected data• Analyze historical trends• Define variance thresholds and receive alerts Emissions by Source• Leverage BI Publisher for report submission• Publish and distribute reports in multiple formats The most comprehensive Oracle applications & technology content under one roof
  49. 49. Key Benefits for Analytics and Reporting Meet Internal Reduction Targets and Report Internally• Scalable and market leading business intelligence platform• Rapid creation of environmental reports• Formatted reports to meet external reporting needs such as the Carbon Disclosure Project• Flexible reporting capabilities for quick ad hoc analyses• Multiple delivery formats including spreadsheets, email, and PDF• Enables management to targets and continuous improvement• Powerful insights into high opportunity areas for emissions reductions, energy savings, and cost savings The most comprehensive Oracle applications & technology content under one roof
  50. 50. Questions/Resources/Thank YouClean Energy RegulatorWebsitewww.cleanenergyregulator.gov.auNdevr Website www.ndevr.com.auNdevr Blogmatt.drum@ndevr.com.auray.kan@ndevr.com.au The most comprehensive Oracle applications & technology content under one roof

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