Carbon Management Solution_IBM Value Prop

8/8/2019 Carbon Management Solution_IBM Value Prop

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Building a Base for Sustaining Growth:Carbon Management Strategy and Intelligence with IBM and Oracle

Lin Gardner


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STOP TALKINGSTART DOING

Copyright IBM Corporation 2008


Why and Why Now IBM and Oracle Carbon Management

Intelligence Solution Why IBM and Oracle Getting Started


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Businesses and institutions everywhere today have an imperative to

Reduce COST and comply with new Regulationsby cutting carbon emissions

Source: Carbon Trust

Carbon Management White Paper

Company

Regulation

To reduce emissions such as: ClimateChange Levy, EU Emissions TradingScheme, Building Regulations, CRCs

(from 2010)

New BusinessDevelopments in products,

knowledge and new technologies

Stakeholder

PressureInvestors, employees and

consumers

Costs

Rising costs of energy, transport,waste disposal and raw materials


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Company

Regulation

To reduce emissions such as: ClimateChange Levy, EU Emissions TradingScheme, Building Regulations, CRCs

(from 2010)

Kyoto Protocol Ratified by 55 parties except the US and

Australia emission limits agreed for a 'first

commitment period' of 2008-12 on

average from a base year of 1990

GHG reduction targetunder the Kyoto ProtocolSwitzerland, Central and East European

states, the European Union -8%

United States** -7%

Japan, Canada, Hungary, Japan -6%

Russian Federation and Ukraine +0%

Norway +1%

Australia** +8%Iceland +10%

UK Climate Change Programme A mandatory emissions

trading/reporting scheme, targetingemissions currently not included inthe EU ETS or Climate ChangeAgreements. Covering allorganisations whose electricityconsumption through half hourlymeters is greater than6,000MWh/yr equivalent to anannual electricity bill of ~500k.


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Legal Compliance

Reporting scope

CO 2 SF 6 CH 4 N2O HFCs PFCs

Purchased Electricityfor Own use

Scope 2

Indirect

Scope 1

DirectScope 3

Indirect

EmployeeBusiness

Travel

WasteDisposal

Production of Purchased MaterialsCompany Owned

Vehicles

Product Use

Fuel Combustion Outsourced Activities

Reporting CO 2 Emissions from Scopes 1 and 2 are mandatory for large corporations

Carbon

Intelligence


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Company

Stakeholder Pressure

Investors, employees andconsumers

Stakeholder Pressure From investors, market andfinancial analysts, employees or consumers about theenvironmental and economicconsequences of climate change

Consumer pressure to reduceproduct packaging, their desire topurchase products and services

from sustainable sources Employee pressure to work for

business with ethical andtransparent practices/processes

Investor pressure to maintainreturns in the light of changing

markets Desire to maintain market positionin the eyes of financial analystswho predict change due toenvironmental conditions

Provides positive visibility toINVESTORS,

REGULATORS, ANDCUSTOMERS


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Company

New BusinessDevelopments in products,

knowledge and new technologies

New Business -Developments in markets,knowledge and newtechnologies, which enablebusiness to cut their carbonemissions while increasingproductivity and finding potentialnew revenue opportunities

Desire to maintain market share

in the light of changing opinion Necessity to change productionof product components due todesire to be green

Creation of new greener productsto take advantage of newmarkets

Investment in research anddevelopment around greenproducts/ processes

Promotes employeeinnovation to create new

products + increasesinvestment


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Company

Costs

Rising costs of energy, transport,waste disposal and raw materials

Costs Increase in costs as raw

material availabilityreduces

Rising fuel prices Punitive costs around

waste disposal Costs of preparation of

waste prior to recycling Rising energy prices for

heat, lighting Mandatory business

requirement to report inraw material usage

Gives opportunity to decrease

cost during the current globaleconomic crisis


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Making the Case for a Carbon Management Strategy

Reduce your environmental emissions footprint

Build a base for sustaining growth maintain competitive differentiation strengthen brand image develop a competitive advantage

be better positioned to enter new markets

Help establish leadership position among your peers

Attract high calibre workforce support your brand's commitment to green


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If your Customers pose these questions.

Then this is thesolution

What are theBusiness

challenges /drivers / triggersto going Green?

What solutionshould I

implement tobe

compliant?

How will goinggreen affect

my business/marketplaceposition?

What business results/ expectations are

required byStakeholders and

Employees?


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Business Benefits

Protect financial objectives by meeting all legal and regulatory requirements

Minimize costs andrisk exposures,even if foregoingsome sustainableopportunities

Limit SP activity towhat is required tooperate thebusiness

Enhanceearnings by mitigating risk exposures and contributing tosociety

Balance SPcommitments withdesired returnsfrom SP initiatives

Invest in programsthat reduce riskswhile garneringbenefits for thecompany

Protection Enhancement Leadership Pull FactorsPush Factors

Legislation

Specification

IPCC EU

National Govt

Local Govt

Energy prices

Differentiate thecompany and create a market advantage viainnovativeactivities and commitments

Manage risks andcosts associatedwith new, innovativeprograms and

SocialResponsibility

Customer demand


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Overview

Strategy components Install Carbon Intelligence

Create baseline emissions reporting Perform Green Sigma process engineering Measure improvement

Solution components OBIEE Base data

Extraction tool/ Warehouse


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Business Travel

Air (including class of ticket and type of flight) Private car (by individual car emissions) Taxi Train (including class and type of ticket) Hire car

Estimating the CO 2 Emissions of business travel (not includingcommuting) by :

Captured at point of data entry via expense

report or direct feed from travel agentCategorised by Dept/Project/Individual whereapplicable


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Business Energy

Energy Type (Electricity, Gas, Renewable) Scope 1 (Owned and controlled) Scope 2 (Imported)

Estimating the CO 2 Emissions of Energy used by business by :

Captured at point of data entry viaremote metering or by using invoices/other forms of data entry

Categorised by site where applicable

Hydro

2%

biomass & waste11%

Geothermal solar & wind0%


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Distribution

Transport TypeHGV by class, axleOther carriage methods

Distance travelled

Commodity moved

Estimating the CO 2 Emissions of Distribution Activities by :

Captured at point of scheduling fromDistribution centres

Categorised by driver/site whereapplicable


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Manufacturing

Along the full product life cycle:Categorising green credentials of rawmaterials including packaging

Broken into bill of materials

Estimating the CO 2 Emissions of Manufacturing :

Categorised by site whereapplicable


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Internal Controls

Integrating all CO 2 measures into Internal Control Manager

Reporting across all business processesIntegrating with workflowProviding Business Modelling across What-if scenariosIncluding auditing criteria


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Data Sources

Oracle

OBIEE

Process Flow

Administration Server Presentation Services


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Comparison to target monthly year-to-date rolling 12-month cumulative reductions

Trends

month-on-month YTD vs. last year month vs. year ago

Benchmarking internal

external

What if / scenario analysis carbon impact of business changes

Breakdown, by: region

building department project individual

Ratios, by: FTE workstation m 2

mile travelled

Summaries, by: Scope of emission carbon reduction initiative any of the above metrics

Types of Reports/ Analysis Example Deliverables


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Building a Base for Sustaining Growth:

Carbon Management Strategy and Intelligence with IBM and Oracle




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Why Choose IBM?

Although 3 rd party Carbon Emissions reporting solutions exist. No major ERP vendor has an offering ready for market.

IBM are industry leaders providing sound Thought Leadership onCarbon, advising Government bodies and industry alike.

IBM have produced proprietary software which measures carbon and

have used it successfully both within industry and at Defra.

IBM and Oracle have a strong stable relationship. Oracle have expresseda desire to work with IBM on addressing this gap in Carbon Reporting.


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More than 2,000 client projects1,000 IBMers trained and deployed

Green specialization program for IBM Business PartnersIBM Virtual Green Data Center Over 1.5 billion lbs. of IT equipment recycled since 1996Over 35,000 in green-community-of-interest

New Enterprise Data Center strategy is green by design

Progress Toward Our Goals


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IBM and the green agenda:We have a 37 year old environmental commitment

1 2 3

Between 1990 and 2006 , IBMsglobal energy conservation actions

reduced or avoided CO2 emissionsby an amount equal to 44% of our 1990 emissions.

New goal: to extend the above

achievement by reducing CO2emissions by 12% between 2005and 2012 .

44%44%44%

First in our industry to establish numeric goal for reducing PFC emissions

First in ComputerWorlds Top 12 Green ITvendors.

Charter memberships in World WildlifeFund's Climate Savers program, World ResourcesInstitute's Green Power Market DevelopmentGroup, U.S. EPA Climate Leaders and ChicagoClimate Exchange

Member of U.S. EPAs SmartWay TransportPartnership and Green Grid Consortium

17yrs17yrs17yrs 1st1st1st

Annual corporate environmentalreports released every year since1990

U.S. Dept. of Energy's VoluntaryGreenhouse Gas Emissions Reporting for

13 years (since inception)

Reported to the Carbon Disclosure

Project for 5 years (since inception)

Set substantive goals - Effectiveglobal goals should documentintegrated results from across allaspects of your business

Be transparent and verifiedDeclaration alone is not acceptable themarket demand is for 3 rd party recognition of progress against targets

Demonstrate leadership in your industry - Partnerships and collaborationsare important if you want to improveenvironmental performance of your supplychain.


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IBM Qualifications

Green Expertise Innovation for the planet Greener solutions Energy-efficient IT Environmental stewardship DEFRA client project

Functional Expertise SCM FM BI ERP

CRM

Oracle Product Expertise Deep Applications Expertise Extensive Technical Resource

Thought leadership Studies White papers


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Call to Action

Who do I contact at IBM?Lin Gardner [email protected] 07876 683419

Who do I contact at Oracle?Philippe Reveillon [email protected] +33 6 26 08 08 68

Identify Target Accounts/Sectors Discuss/Form Strategy/Opportunities

Plan Outreach


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Questions

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