ies webinar: public reporting today and in the future
TRANSCRIPT
Public Reporting Today and in the Future
Presenters: Jeremy Mohr, Director, Energy & Sustainability Analytics and Pat Everitt, Manager, Custom Analytics, both with Ecova; with Meaghan Krohn, Sector Lead, Disclosure Services, CDP
May 7, 2015
Agenda Motivations and value drivers
Prerequisites for successful reporting
Current public reporting paradigm
What is happening around the globe and the future of reporting
Q&A
Motivations & Value Drivers for Reporting
Global Drivers – Energy – Climate – Population – Resource scarcity
Drivers in the Energy Market:
– Decentralization, – Digitization, – Deregulation, – Decline (De-
carbonization)
Industry – Expense – Regulatory – Competition – Stakeholders – Brand – Employees – Physical – Moral
Prerequisites for Success – Complexity Simplified
Data: Intelligent Decision-Making Focus resources on high-impact areas and provide quantitative feedback for adaptive decision making.
Portfolio/ Asset Data Management
Complete Utility Bill Data Capture
Smart Meter & Sub-meter Deployment
Additional Resource/ Emissions Data Capture
Multipoint Variable Normalization
Internal & External Benchmarking
Supply Chain Information Requests
Single Platform Data Storage, Calculation & Reporting
Reporting Cadence & Review Responsibilities
Why Should You Care?
The associated cost for that consumption is over $190 billion
Responsible for 18% of U.S. carbon dioxide emissions
U.S. Environmental Protection Agency claims that 30% of all consumption is wasted
Current State of Play
The HOW of reporting: – Clients are becoming more savvy, collaborative &
forward-thinking
The WHAT of reporting: – The standards: energy & carbon – Becoming standards: waste & water
The WHERE of reporting:
The Value of Energy Performance Benchmarking
Energy benchmarking compares
− Past performance
− Similar buildings nationwide
Benefits
− Promote culture of energy awareness
− Evaluate effectiveness of current operational practices
− Identify billing or operational anomalies
− Identify outlier facilities based on equipment efficiency
− Set priorities for energy conservation measures
Benchmarking with ENERGY STAR®
0
25
50
75
100 Eligible for ENERGY STAR Recognition
Operational Change
Retrofit Candidate
Capital Evaluation
Energy Performance Rating
Possible Interpretations
ENERGY STAR & New Reporting Complexity
Regulatory Reporting – Legislation quickly spreading – Complexities between jurisdictions – Potential fines for non-compliance
ENERGY STAR Certifications – Potential to reduce compliance
requirements – ES label is recognized by 87%
of households – Competitive public recognition – Property asset value – Rental / occupancy rates
The Value of Responding to CDP
Investor demand in driving growth in transparency:
– Climate change first introduced in 2003
– Grown by nearly 38% in past 5 years
– Investor led programs are being added
• Water Program added in 2010
• Forests Program added in 2012
Leverage to improve company’s environmental and financial performance
CDP – The Future of Reporting
Driven by investors’ interests
Comprehensive, robust
No instructions on materiality
Global Trends
Regulatory requirements – Australia – EU – Japan – Annex I – Kyoto Protocol* – South Africa – UK – USA
Integrated reporting <IR>: financial + ESG information
– IIRC – CDSB
Climate Disclosure Standards Board (CDSB)
8 businesses, environmental organizations
Climate change reporting framework
Incorporating climate change risks into mainstream financial reports
E of ESG
Aligns with regulatory requirements
Speak investors’ language
CDSB Connections
Additional CDSB Connections
cdsb.net/ CrossReferences
Summary
Carbon Reporting has become standard business practice
Quality data is king – and it begins with energy
Current avenues for telling your story
The Future of Reporting:
– Elevating ESG reporting
– Standard business practice to mandatory
– Reducing reporting burden through <IR>
Upcoming Webinars
INSIDE ENERGY & SUSTAINABILITY
3 Myths Stopping You from Maximizing the Value of Meter Data – May 21st at 11a PST
Energy Outlook, Q2 Market Intelligence Update – June 2nd at 11a PST
Questions, comments, suggestions? [email protected]
Q&A
Thank you!