ghg ear webcast 517451

8/12/2019 GHG Ear Webcast 517451

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Integrating Environmental Reporting with ExistingBusiness Processes and Systems

Chris MinesSenior Vice President, Research Director, Forrester

Jon ChorleyChief Sustainability Officer & Vice President of Product Strategy, Oracle

Rich KroesDirector of Product Strategy, Oracle


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Agenda

The Evolving Carbon &Energy Software Market Market Drivers

Common Challenges

Stakeholder Engagement

Market Overview

Oracle EnvironmentalAccounting & Reporting Addressing the Operational Challenges

Key Features & Benefits

Q&A


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2011 Forrester Research, Inc. Reproduction Prohibited3 2009 Forrester Research, Inc. Reproduction Prohibited

The Evolving Carbon & Energy Software

Market

Christopher Mines, Senior VP, Research Director

Forrester Research

October, 2011


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2011 Forrester Research, Inc. Reproduction Prohibited4

Resource consumption and carbon emissions

are the newest corporate assets (and liabilities)that IT systems will track and manage.


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Corporate sustainability cuts across all businessfunctions and organizations

Its a business processand business performanceissue!
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Belief:

Our CEO took a heart-felt approach to ithe is a believer.

There were no specific drivers, it is just the right thing to do.

Transparency:

To respond to stakeholder requests

To meet regulatory requirements

Differentiation & Innovation:

To differentiate from our competitors

For attracting the best R&D talent

For identifying new revenue opportunities

Interviews with corporate sustainability leaders find avariety of sustainability drivers.

Source: Forrester interviews with 15 corporate sustainability leaders in Q2 2011.


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and a variety of quick wins from ECEM softwareimplementation

Reduce energy costs by: Identifying and eliminating billing anomalies

Turning up the temperature in data centers

Identifying inefficient equipment

Improve transparency and compliance by:

Making data gathering faster and more granular

Normalizing data from disparate sources

Generating multiple reports faster


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But early adopters also face a variety of barriers

Skills:

We lack experience.

We are uncertain about our ability to implement.

Data Sourcing and Integration:

We dont see how to link non-financial with financial systems.

Were not sure how to pull enterprise-wide data into a coherent

picture.

We have to consolidate and verify data from several business units.

No data standards exist yet.

Source: Forrester interviews with 15 corporate sustainability leaders in Q2 2011.


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Sustainability alone wont drive investment; it mustbe linked with other corporate priorities

Issue Top Two Priorities by Issue % Selecting

GrowthGrow overall company revenue 64%

Acquire and retain customers 54%

EfficiencyLower the firms overall operating costs 44%

Improve quality of products and/or processes 37%

InnovationImprove our ability to innovate as an organization 32%

Drive new market offerings or business practices 28%

TalentAcquire and retain talent 38%

Improve workforce productivity 31%

Responsibility

Comply with government regulations and requirements 14%

Improve corporate environmental sustainability and socialresponsibility

10%

Base: 2,691 business decision-makers

Source: Forrester Forrsights Business Decision-Makers Survey, Q4 2010

What are your firms five most important corporate business priorities over the next 12 months?


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Enterprise carbon & energy management linkssustainability with overall performance management

Source: November 17, 2009, Market Overview: The Advent Of Enterprise Carbon And Energy Management Systems Forrester report


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Carbon and energy management software adoptionlags other similar categoriesand will likely catch up

Software category Using Planning to use in the

next 12 months

Interested

in using

Total

Carbon and energymanagement software

8% 5% 11% 24%

Risk and compliancemanagement software

27% 8% 18% 53%

Business performancemanagement software

43% 10% 18% 71%

Base: 2,691 business decision-makers

Source: Forrester Forrsights Business Decision-Makers Survey, Q4 2010

What are your business groups/departments use of the following software applications?


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ECEM product functionality will evolve rapidly

From carbon reporting to energy management to a broader scope of

resource and emission planning & management

From facility to enterprise to entire value chain carbon measurement

From descriptive to predictive analyses

From historical to real-time data acquisition

From pure software vendor to platform-based ECEM service provider

Often in partnership with IT services or BPO provider


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Vendors approach the ECEM market from differentangles, and with different strengths



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Rapid growth for ECEM market, $1 B by 2013

Source: December 21, 2010, The Evolution Of Enterprise Carbon And Energy Management Software Forrester report


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Projecting the coming shifts in important dimensionsof the ECEM market



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In summary . . .

Resource consumption and carbon emissions are the

newest corporate assets (and liabilities) that IT

systems will track.

Enterprise carbon and energy management (ECEM)

software will become the corporate system of recordfor managing sustainability metrics.

Corporate finance and operations execs will emerge

as the key influencers for ECEM purchasing;

enterprise software companies will be the dominantsuppliers.


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2009 Forrester Research, Inc. Reproduction Prohibited

Thank you

Christopher Mines

[email protected]

@chrismines

http://blogs.forrester.com/chris_mines

www.forrester.com


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Agenda

The Evolving Carbon &Energy Software Market Market Drivers

Common Challenges

Stakeholder Engagement

Market Overview

Oracle EnvironmentalAccounting & Reporting Addressing the Operational Challenges

Key Features & Benefits

Q&A


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Lengthy reporting process with weak internal controls

Complex systems that cannot identify new opportunities

Disconnect between strategy and execution

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

Environmental Reporting OperationalChallenges

EnvironmentalImpactSources

Inefficiencies


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Oracle Environmental Accounting & ReportingAu tomated, Auditable Col lect ion o f GHG and Environmental Data

New Oracle Solution for Greenhouse Gas and

Environmental Data Collection and Reporting

Data collection using EBS or JDE Financials

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

Comply with Global Greenhouse Gas Regulations

Increase Data Collection Efficiency and Reliability

Improve Environmental and Financial Performance

Data collection in Financials

OBIEE Dashboards


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Oracle Environmental Accounting & Reporting

Enables you to

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Automate Environmental Data Collection

Leveraging Exist ing Business Processes

Calculate Greenhouse Gas Emissions

Auditable and in Line with Global Standards

Analyze KPIs and Comply with Regulations

Meet Internal Reduc tion Targets and Repor t Externally


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Key Features for Data CollectionLeveraging Existing Business Processes

New, native modules for Oracle e-Business Suiteand Oracle JD Edwards EnterpriseOne

Leveraging and extending existing setups,transactions and business processes

Reliable and scalable platform with full audit trail


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Integration Into Invoice Entry ScreenCapturing Necessary Data Directly in Existing Business Processes

Automatically detects when additional data needs to be entered

Values default data based on setup

On detectingan invoice asbeing a GHGtransaction, apop screenautomaticallyappears toenter usage


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The system willdetermine the Itemcode, sub -inventoryand unit of measurebased on setup

The User enters theusage & commits thetransaction

On selectingthe type, useris automaticallyprompted for theassociated Asset

Allocate Environmental Impacts to AssetsUsing the Standard Miscellaneous Transaction Screen In Inventory


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Uploads Via WebADI Templates from ExcelLeverage Existing Data Sources From Spreadsheets

Enables for mass upload of historical data from flat files

Provide Users with the option of using a familiar tool

Allows interim use of existing manual tools prior to shift to automation

Data can be batch uploaded from flat file output of meter or sensor systems


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Key Features for Emissions CalculationsAuditable and in Line with Global Standards

Automates the process of converting raw inputsto emissions and their associated aggregation

Simultaneously supports multiple greenhousegas protocols

Supports differences by date, source, assettype, organization


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United States

United Kingdom

Australia

Emissions &Generation ResourceIntegrated Database

USD

Department for

Environment, Foodand Rural Affairs

GBP

National GreenhouseAccounts Factors

AUDManaging multipleorganizations &geographies

Emissions Sources: Set UpDefine By Scope and Region


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Emission Sources & Factors Setup


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Example: Scope 2 Emissions Calculation

Environmental Specifications

Source Emission Factor (kg CO2-e/kWh)

Electricity Location CO2 CH4 N2O

CA 0.30890 0.00027 0.00088

NY 0.30993 0.00017 0.00139

Environmental Transactions

Source Transaction Quantity (kWh) Source Type Scope Transaction ModeElectricity 10,000 (7,000 CA & 3,000 NY) Consumed 2 (Indirect) AP Invoice Entry

Data Source: eGRID2010 Version 1.1 Year 2007 GHG Annual Output Emission Rates, US EPA

Environmental Accounting

Emissions

Emission Type Emissions in kg of CO2-e Scope

CO2 3,092.09 [(7,000 x 0.30890) + (3,000 x 0.30993)] 2 (Indirect)

CH4 2.4 [(7,000 x 0.00027) + (3,000 x 0.00017)]

N2O 10.33 [(7,000 x 0.00088) + (3,000 x 0.00139)]

Cumulative Total 3,104.82

Environmental

Emissions

Calculation


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Viewing Emissions Integrated to Invoice EntryEmissions Ledger Stores Emissions Associated With Invoice


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Enables you to

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Automate Environmental Data Collection

Leveraging Exist ing Business Processes

Calculate Greenhouse Gas Emissions

Auditable and in Line with Global Standards

Analyze KPIs and Comply with Regulations

Meet Internal Reduc tion Targets and Repor t Externally



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Key Features for Analytics and ReportingMeet Internal Reduction Targets and Report Externally

Leverages OBIEEOracles standard BI analytic tool Extensive, easy to extend pre-built KPIs and reports

Exposes the data for both internal performanceimprovement and for external compliance purposes


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Provide Visibility & Drive PerformanceWith Oracle Business Intelligence Analytics

View pre-built OBIEE reporting andanalytics tools

Configurable OBIEE dashboards totrack areas of risk

Manage performance against targets

Drill down into graphical output ofpast, current, and projected data

Analyze historical trends

Define variance thresholds andreceive alerts

Publish and distribute reportsin multiple formats

Emissions by Scope

Emissions by Facility

Emissions by Source


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Create Custom KPIsUser Defined Metrics

Define custom key performanceindicators to more deeplyanalyze key metrics

Normalize data to operationalmetrics

Use drag-and-drop environment

in OBIEE to create customreports

Rich end user interactionfeatures

Example: Water Usage per Number of Guests

Creating Custom KPIs


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We can view the greenhouse gas and energy figures for each of

our facilities on a daily basis. Before we had this solution in

place, we had to download the data from the JD Edwards

system and manipulate it in Microsoft Excel, which would take a

couple of months. Now, it takes a couple of days to get the data and enter it into the

Australian Government Web site. Data accuracy is far better too.

Ian Wade, Executive General Manager

Because our GHG emission reporting is now incorporated

into our financial reporting systems, and based aroundaccounts payable data entry, we now have complete

confidence that the data is an accurate measurement of energy consumption. Oracle

Environmental Accounting and Reporting Solution provides a solid foundation for

meeting Abigroups internal and external reporting requirements and also feeding into

our clientsown energy and emissions reporting obligations

Sarah Marshall, National Environment and Sustainability Manager

What Customers Are SayingCustomers Successfully Using the Solution

O &
http://www.google.com/imgres?imgurl=http://www.cooberpedy.sa.gov.au/webdata/resources/images/Thiess.JPG&imgrefurl=http://a7cd4.thport.com/thiess-group.html&h=614&w=661&sz=70&tbnid=2RV90Ti04DV9RM:&tbnh=128&tbnw=138&prev=/images?q=Thiess&zoom=1&q=Thiess&usg=__YRI438hPmRbC0-cEd1p1cUZQrNM=&sa=X&ei=xRg1TebjD82RgQeBsOzPCw&ved=0CEgQ9QEwBghttp://www.abigroup.com.au/Default.aspx


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Increase Data Collection

Efficiency and Reliability

Comply with GlobalGreenhouse Gas Regulations

Improve Environmental and

Financial Performance


Integrated with financialaccounting to leverage existingbusiness processes and maintaina single source of truth

Accurate, repeatable, and

verifiable methodologies forgreenhouse gas calculation inaccordance with global standards

Support for multiple reportingstandards, shorter reportingcycle times, internal KPI tracking,and flexible ad hoc reporting


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Q & A


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Wrap Up

Environmental Account & Reporting hasbecome a part of the New Normal

Embedding this in your existing businessprocesses maximizes rigor & value whileminimizing cost of ownership

Oracle has excellent out-of-the boxsolutions to address these requirements

For more information visit www.oracle.com/green


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ghg ear webcast 517451

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