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The most comprehensive Oracle applications & technology content under one roof
Carbon Footprinting for
Compliance Schemes
The most comprehensive Oracle applications & technology content under one roof
Objectives
1. Introduction – policy and legislation
2. Emissions scopes – brief overview
3. Reportable emissions and liable emissions – NGERs vs. CPM
4. Thresholds – NGERs vs. CPM
5. Methods for measurement
6. Data capture and management – IT systems
7. Overview Oracle Environmental Accounting and Reporting
8. Accounting for Carbon
9. Daily Processing JDE and E-Bus
10. Implementation Overview
11. After the Implementation
The most comprehensive Oracle applications & technology content under one roof
Mandatory Reporting NGERs & CPM & More
NGERs
National Greenhouse and Energy Reporting (NGER) Act 2007
– Originally designed to closely underpin the emissions trading system which was shelved
CPM
Carbon 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 Reports
International
– 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
Carbon Emissions’ ScopesScope 1-3 emissions sources
(2008, National Greenhouse and
Energy Reporting Guidelines,
Australian Government,
Department of Climate Change,
p. 10)
The most comprehensive Oracle applications & technology content under one roof
• The four challenges
• Uncertainty
• Methods 1 to 4
• Data source and factors uncertainties
• Energy
• Penalties• Up to $1.1M for CPM - serious non-compliance
Measuring Emissions
The most comprehensive Oracle applications & technology content under one roof
Principles of the Measurement
1. Completeness
2. Accuracy
3. Comparability
4. 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
Pressure Everywhere
Regulatory Pressure
• How do I meet my regulatory reporting requirements?
• How do I report more efficiently and with a higher level of confidence?
Stakeholder Pressure
• How do I meet increasing demands for transparency?
• How do I protect and build the organization’s brand?
Cost Reduction
• Where can I reduce environmental impacts while also reducing costs?
• How do benchmark and share best practices across the organization?
Collect Data Calculate & Analyze Report
Increased Competition
• How can I respond to the peer activity in the space?
• How can I increase margins and gain market share?
The most comprehensive Oracle applications & technology content under one roof
Operational Challenges
Facilities
Mobile Assets
Suppliers
Other Sources
Multiple, Fragmented Systems
• Silos of information
Manual, Error-Prone Processes
• Data extraction and transformation
• Adjustments and eliminations
Aggregation
Accounting Challenges
• Standards
• Access Control
Lack of Actionable Business Data
• Unreliable
• Currencies
• Auditability
• Latency
Environm
enta
l Im
pact S
ourc
es
• Inefficiencies
� 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
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
Oracle Environmental Accounting & Reporting
• Automated, Auditable Collection of GHG and Environmental Data
Data collection in Financials
OBIEE Dashboards
� Comply with Global Greenhouse Gas Regulations
� Increase Data Collection Efficiency and Reliability
� Improve Environmental and Financial Performance
• 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
• Proven solution built on market leading technology
The most comprehensive Oracle applications & technology content under one roof
Oracle Environmental Accounting & Reporting
Enables 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
Oracle Environmental Accounting & Reporting
Environmental Data Collection
Excel (WebADI)
Invoice Processing
Inventory Issues
Emissions Calculation Engine
Business Intelligence DashboardsEnergy Emissions Metrics Usage Transactions Reporting
Environmental Data Load Concurrent Request
Environmental Ledger
Environmental Data Warehouse
Manual Batches
The most comprehensive Oracle applications & technology content under one roof
Oracle EA&R - Making Your Life Easier
FacilityEmission
Source
Environ
Ledger
Account
Segments
Project
Location/
GeoData
Reporting
Flex
CO2 &
Energy
Rates
Company
Business
Unit
The most comprehensive Oracle applications & technology content under one roof
Oracle EA&R - Process Overview
Environ.
LedgerCalculation
Facility
Source
Environ.
WarehouseEmissions
Facility
Orgs
Warehouse
Builder
Emissions
Engine
Accounts
Payable
EA&R
Accounting
Software
PO with
Inventory
Manual
Invoice
AP
Open
Interface
PO
without
Inventory
Manual
Emission
Batches
WEBADI
Emissions
Open
Interface
The most comprehensive Oracle applications & technology content under one roof
Reporting Dashboard
The most comprehensive Oracle applications & technology content under one roof
Reporting Dashboard
The most comprehensive Oracle applications & technology content under one roof
Implementation Overview
The most comprehensive Oracle applications & technology content under one roof
Management Reporting
Organisations
Levels 1
through 12
Organisations
Levels 1
through 12
The most comprehensive Oracle applications & technology content under one roof
NGERS Reporting
The most comprehensive Oracle applications & technology content under one roof
Implementation Overview
The most comprehensive Oracle applications & technology content under one roof
Invoice Processing – Emissions Detail with Gas Breakdown
The most comprehensive Oracle applications & technology content under one roof
Reporting Dashboard
The most comprehensive Oracle applications & technology content under one roof
Reporting Dashboard
The most comprehensive Oracle applications & technology content under one roof
Reporting Dashboard
The most comprehensive Oracle applications & technology content under one roof
Answers Analysis
The most comprehensive Oracle applications & technology content under one roof
Answers Analysis
The most comprehensive Oracle applications & technology content under one roof
Answers Reporting
results tab to
run report
The most comprehensive Oracle applications & technology content under one roof
Answers Analysis
Organisations
Levels 1
through 12
Organisations
Levels 1
through 12
The most comprehensive Oracle applications & technology content under one roof
JD Edwards Environmental
Accounting and Reporting
The most comprehensive Oracle applications & technology content under one roof
Complexity is HiddenEnvironmental Specifications
Source Energy (Content) Factor (GJ/t) Emission Factor (kg CO2-e/GJ)
Black Coal 27.0 CO2 CH4 N2O
88.2 0.03 0.2
Environmental Transactions
Source Transaction Quantity (t) Source Type Scope* Transaction Mode
Black Coal 20,000 Consumed 1 (Direct) Manual Entry
Data Source: National Greenhouse Accounts (NGA) Factors, Department of Climate Change, Australian Government
Environmental Accounting
Energy Consumed
in GJ
Emissions
Emission Type Emissions in kgs of CO2-e Scope
540000 CO247,628,000 (20,000 x 27.0 x 88.2) 1 (Direct)
CH4 16,200 (20,000 x 27.0 x 0.03)
N2O 108,000 (20,000 x 27.0 x 0.2)
Cumulative Total 47,752,200
En
vir
on
me
nta
l
Em
iss
ion
s
Ca
lcu
lati
on
* Based on GHG Protocol Emission Scope
The most comprehensive Oracle applications & technology content under one roof
EBS Invoice Processing
Pressing this
button will
create the
emissions and
shutdown the
screen
This will allow
you to allocate
the usage
across
distribution
lines
On detecting
an invoice as
being a EA&R
transaction, a
pop screen
automatically
appears to
enter usage
• Automatically detects when additional
data needs to be entered
• Values default data based on setup
The most comprehensive Oracle applications & technology content under one roof
EBS Emissions Overrides
Override
Rates
Override criteria and justification
The most comprehensive Oracle applications & technology content under one roof
Associate Environmental Impact
to Assets
Trans Type – Engine Type
Will have different emission factorsEXTERNAL
assets are
ones that do
not exist in
Oracle
Assets
INTERNAL
assets are
ones that do
exist in
Oracle
Assets
• Leverage Assets already defined in ERP
• Set up external Assets as needed
The most comprehensive Oracle applications & technology content under one roof
Allocate Environmental Impact
to AssetsThe system will
determine the Item
code, sub -inventory
and unit of measure
based on setup
The User enters
the usage &
commits the
transaction
On selecting
the type, user
is automatically
prompted for the
associated
Asset
Using the Standard Miscellaneous
Transaction Screen In Inventory
Issue Fuel Consumption To Fleet Vehicles Or Other Assets
The most comprehensive Oracle applications & technology content under one roof
Assets
Trans Type –
Engine TypeEXTERNAL
assets are
ones that
do not exist
in Oracle
Assets
INTERNAL
assets are
ones that
do exist in
Oracle
Assets
The most comprehensive Oracle applications & technology content under one roof
EA&R KPIs
User Defined Metrics
• Define custom key performance
indicators to more deeply analyze
key metrics
• Normalize data to operational
metrics
• 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
Creating Custom KPIs
The most comprehensive Oracle applications & technology content under one roof
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
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
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
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
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
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
Key Benefits for Data CollectionLeveraging 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
Key Benefits for Data CollectionEmissions
• 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
Key Features for Emissions CalculationsControl 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
Key Benefits for Emissions CalculationsAuditable 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
Key Features for Analytics and ReportingMeet 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
Provide Visibility & Drive PerformanceWith Oracle Business Intelligence Analytics
• 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
• Manage performance against targets
• Drill down into graphical output of past,
current, and projected data
• Analyze historical trends
• Define variance thresholds and receive alerts
• Leverage BI Publisher for report submission
• Publish and distribute reports in multiple formats
Emissions by Scope
Emissions by Facility
Emissions by Source
The most comprehensive Oracle applications & technology content under one roof
Key Benefits for Analytics and ReportingMeet 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
Questions/Resources/Thank You
Clean Energy Regulator
Websitewww.cleanenergyregulator.gov.au
Ndevr Websitewww.ndevr.com.au
Ndevr Blog