Carbon Management and Your Business A guide to tracking carbon output. White Paper

Transcription

1 Carbon Management and Your Business A guide to tracking carbon output White Paper

2 Carbon Management and Your Business A guide to tracking carbon output Abstract As the industrial world evolves, its impact on the environment becomes more and more evident. We recognise the devastating effect of chemical pollutants on our air, our water, and the land itself. The world reacts to practices that deplete the ozone layer, affect the food chain, and endanger the oceans. Business, in turn reacts by finding ways of mitigating their impact, either voluntarily, or in reaction to social, government, and international pressures. Currently, the most widely used method of monitoring this is through carbon tracking. Carbon tracking is one method organisations use to track and control their carbon emissions. History and Background The tracking and management of energy, in particular carbon output, has become common practice for businesses around the world as they seek to reduce their carbon footprint. According to the Australian Bureau of Statistics, Australia only accounts for around 1.4 per cent of global emissions of Carbon Dioxide (CO2), although its emissions per person are relatively high compared with other OECD countries i. This whitepaper looks at the methods, management and benefits of carbon tracking for businesses. Page 2 White Paper

3 Total Emmissions CO2 Emmission per person Victoria s CO2 Emmission 250t 200t 20t 15t 30% Small to medium size enterprises 150t 10t 100t 5t 50t Australia United States China 24% Residential Quarterly Year Update: Since 1990, emissions from the electricity sector have increased by 50.2%, reaching Mt CO2-e in the year to December 2011, compared to Mt CO2-e in the 1990 base year (year to June). However, annual emissions from electricity remain below their peak, at t CO2-e in Australia is responsible for 20.6 tonnes per person in carbon emissions while the US is 19.8 tonnes and the Chinese are 4.6 tonnes. Individually, the average carbon footprint of small to medium size enterprises may not be considered significant. However, when aggregated, this footprint is significant, accounting for 30% of Victoria's total emissions, which is 24% larger than the total residential emissions for the same time period. Australian Goverment, Department of Climate Change & Energy Efficiency, 2011 The Guardian, 2009 Eco Voice At a Glance: Key Carbon Facts Australia s Carbon Emissions Australia s Energy Consumption Global Climate Change TAS 8.2 mil NT 17.3 mil ACT 1.2 mil TAS NT SA 30.8 mil WA 77.1 mil NSW mil SA 348 WA 1,025.8 NSW 1,600 QLD mil VIC mil QLD 1,300 VIC 1,400 Tonnes Petajoules 70%+ New South Wales has the highest rate of carbon emissions with million tonnes per year compared with other Australian states. New South Wales and Victoria dominate Australia's energy consumption with NSW measuring 1,600 Petajoules and Victoria registering 1,400 Petajoules over one year. More than 70% of the world s largest fortune 500 companies are now addressing global climate change in their corporate reporting. Australian Bureau of Statistics, 2011 Australian Bureau of Statistics, 2011 Queensland Health, 2009 Pronto Software Page 3

4 Carbon Footprint Defined The typical measurement format for carbon output is classified as a carbon footprint. The term carbon footprint is described as the measurement of total greenhouse gas emissions outputted directly and indirectly by a person, organisation, event or product ii. A carbon footprint takes into consideration all six of the Kyoto Protocol greenhouse gases: Carbon dioxide (CO2), Methane (CH4), Nitrous oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and Sulphur hexafluoride (SF6) iii. Plan to Manage Being energy efficient, green, environmentally friendly, whichever way you phrase it, is an aspirational goal that may seem out of reach for some business managers. However, many businesses around the world have boldly taken the challenge and are now reaping the rewards. For instance, technology firm HP reduced travel costs by 43 per cent after identifying travel as a carbon hotspot and deploying videoconferencing technology to reduce its carbon footprint iv. Another example is car brand Renault, which took steps to reduce its carbon footprint ahead of European Union regulation which in 2012 made it mandatory for manufacturers to take responsibility for end-of-life vehicle disposal. Renault reacted early to the EU regulation by training engineers and designers in environmental issues and its custom-designed Index of Recyclability. Recycling end-of-life vehicles made 400 million for Renault in 2007 from the recovery of metals, rubber and plastics v. Today, technology has evolved to make the management of carbon footprints simple, accurate and intuitive. Implementing technology such as Enterprise Resource Planning (ERP) and Business Intelligence (BI) gives businesses transparency around and access to information from all areas of the business. The Linfox experience Linfox is an iconic Australian brand operating in an industry that is often challenged by public perception in relation to its contribution to national greenhouse gas emissions. The company is the largest privately owned supply chain solutions organisation in the Asia Pacific region. It is also one of the most progressive companies on the planet when it comes to building a strategy and commitment to reducing its carbon footprint. Linfox presents a unique example of how a business operating in transport, supply chain and distribution a carbon intensive sector can cut its carbon footprint dramatically over a relatively short period of time. It is working toward cutting its COS-e emissions by 50%, by 2015 compared to FY07 emissions and has made considerable progress to meet this target already. According to Linfox s last audit, the company had reached a reduction rate of 36%. The Linfox strategy was built in cooperation with PriceWaterhouseCoopers and involves the One Planet framework. Its strategy is also being successfully implemented as the company grows at record rate. Between 2006 and 2011 it has reportedly doubled in size. So, how do companies accomplish these goals in the face of a tougher market conditions and without impacting growth plans? ERP and BI software developers such as Pronto Software are now including carbon management tools to make in-house carbon tracking a reality. Page 4 White Paper

5 What is a carbon hotspot? A carbon hotspot is an area where carbon is output at an excessive rate This will vary depending on industry By identifying and monitoring the carbon hotspot you can find ways to reduce energy and costs For example, in retail this may be inventory transportation with the delivery of goods and the costs of electricity to power stores. In the service industry the carbon hotspot will likely be waste management and disposal, and in manufacturing the typical carbon hotspot will be energy use and costs involved with using metal based materials. If you can identify these carbon hotspots, you can manage the output and ultimately set measures to reduce your costs. Measurement of carbon output If you can t measure it, you can t manage it Every business sector will have a different carbon hotspot, this is an area of activity where energy may be outputting at a dramatic rate. This is the first place a business owner should look to reduce its carbon footprint. Recording and reporting the carbon emissions is only one part of the total management of a carbon footprint. Pronto Software Managing Director David Jackman believes individual business leaders must make the necessary time to plan a carbon tracking approach that works specifically for them. As each business is unique, no single plan will suit every business. By investing the time to research technology platforms and developing a strategic plan, managers are better places to see results sooner where it matters most, said Mr Jackman. The following is an outline of the suggested steps an organisation may take to measure and manage their carbon footprint. Pronto Software Page 5

6 Step 1: Set the wheels in motion Select the management team responsible for making carbon tracking decisions. Together, decide the broad objective and plan the scope. Step 2: Have goals in sight Establish baselines and targets to guide activities.. At a Glance: Managing Carbon Step 3: Develop your tracking system Identify the technology platform best suited to track energy. Use this solution to collect data to develop reports and enquiries. Step 4: Scope all options Be aware of your risks and opportunities Step 5: Review and strategise Review findings and develop a strategy to cut emissions Step 6: Get tracking Implement the strategy and over time adjust the plan to meet the current needs Page 6 White Paper

7 The Pronto Approach Pronto Software has taken a holistic approach to carbon measurement by providing a fully integrated, easy to use solution. The Pronto Software carbon management tool is available to all Pronto Xi customers as part of their existing Enterprise Resource Planning (ERP) and Business Intelligence (BI) solution. With the ability to seamlessly integrate with business functionalities, this tool does all the work for you from calculating to reporting, you are handed the ability to accurate monitor carbon output in real-time. We re always ready to adapt Pronto Xi to perfectly fit your unique requirements. For more information on what we can do for your business, contact us at 1300 PRONTO ( ) or find us at: i. ii. iii. iv. v. Pronto Software Page 7

8 Tailor-made business software solutions. Pronto Software has been developing award-winning business management software for over 30 years. With in-built intelligence, flexibility and an easy-to-use interface, its flagship product, Pronto Xi, enables users to discover rich business insights PRONTO ( ) Find your moment: pronto.net Pronto believes in the power of actively listening to clients, adapting our product to meet their needs and finally revealing the best solution. It s how we continually surpass client expectations, delivering moments of utter surprise and delight.