Matt Drum and Ray Kan of Ndevr present Oracle's Environmental Accounting and Reporting solution in E-Business Suite R12, and JD Edwards EnterpriseOne, as well as a full demonstration of the sustainability reports that can be generated from these modules using BI.
Data Sheet for GHG Accounting Software - JD Edwards EnterpriseOne
Carbon Footprinting Compliance Schemes - Australia
1. Carbon Footprinting for
Compliance Schemes
matt.drum@ndevr.com.au
ray.kan@ndevr.com.au
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2. 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
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3. 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
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4. Carbon Emissions’ Scopes
Scope 1-3 emissions sources
(2008, National Greenhouse and
Energy Reporting Guidelines,
Australian Government,
Department of Climate Change,
p. 10)
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5. Measuring Emissions
• The four challenges
• Uncertainty
• Methods 1 to 4
• Data source and factors uncertainties
• Energy
• Penalties
• Up to $1.1M for CPM - serious non-compliance
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6. 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
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7. Pressure Everywhere
Regulatory Pressure Stakeholder Pressure
• How do I meet my regulatory • How do I meet increasing
reporting requirements? demands for transparency?
• How do I report more efficiently • How do I protect and build the
and with a higher level of organization’s brand?
confidence?
Collect Data Calculate & Analyze Report
Cost Reduction Increased Competition
• Where can I reduce environmental • How can I respond to the peer
impacts while also reducing costs? activity in the space?
• How do benchmark and share best • How can I increase margins and
practices across the organization? gain market share?
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8. Operational Challenges
Facilities
Multiple, Fragmented Systems
• Silos of information • Inefficiencies
Environmental Impact Sources
Mobile Assets Manual, Error-Prone Processes
• Data extraction and transformation
• Adjustments and eliminations
Aggregation
Suppliers
Accounting Challenges
• Standards • Currencies
• Access Control • Auditability
Other Sources Lack of Actionable Business Data
• Unreliable • Latency
Lengthy reporting process with weak internal controls
Complex systems that cannot identify new opportunities
Disconnect between strategy and execution
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9. 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?
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10. Oracle Environmental Accounting & Reporting
• Automated, Auditable Collection of GHG and Environmental Data
• 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
Data collection in Financials
• Proven solution built on market leading technology
Increase Data Collection Efficiency and Reliability
Comply with Global Greenhouse Gas Regulations
Improve Environmental and Financial Performance OBIEE Dashboards
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11. 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
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12. Oracle Environmental Accounting & Reporting
Business Intelligence Dashboards
Energy Emissions Metrics Usage Transactions Reporting
Environmental Data Warehouse
Environmental Data
Load Concurrent Request
Environmental Ledger
Emissions Calculation Engine
Environmental Data Collection
Invoice Inventory Manual Excel
Processing Issues Batches (WebADI)
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13. Oracle EA&R - Making Your Life Easier
Location/
GeoData
Reporting
Flex
Account
Segments
Emission
Facility
Source
Project
CO2 &
Energy
Rates
Company
Environ
Ledger
Business
Unit
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14. Oracle EA&R - Process Overview
Manual PO with
Invoice Inventory
Accounts
PO AP Payable
without Open
Inventory Interface Emissions Warehouse
Engine Builder
Source
Orgs
Facility Environ. Facility
Environ.
Ledger Warehouse
Calculation Emissions
Manual
Emission WEBADI
Batches EA&R
Accounting
Emissions Software
Open
Interface
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15. Reporting Dashboard
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16. Reporting Dashboard
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17. Implementation Overview
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30. Complexity is Hidden
Environmental Specifications
Source Energy (Content) Factor (GJ/t) Emission Factor (kg CO2-e/GJ)
Black Coal 27.0 CO2 CH4 N 2O
88.2 0.03 0.2
Data Source: National Greenhouse Accounts (NGA) Factors, Department of Climate Change, Australian Government
Environmental Transactions
Source Transaction Quantity (t) Source Type Scope* Transaction Mode
Black Coal 20,000 Consumed 1 (Direct) Manual Entry
* Based on GHG Protocol Emission Scope
Environmental Accounting
Energy Consumed Emissions
Environmental
in GJ
Calculation
Emissions
Emission Type Emissions in kgs of CO2-e Scope
540000 CO2 47,628,000 (20,000 x 27.0 x 88.2) 1 (Direct)
CH4 16,200 (20,000 x 27.0 x 0.03)
N 2O 108,000 (20,000 x 27.0 x 0.2)
Cumulative Total 47,752,200
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31. EBS Invoice Processing
This will allow
you to allocate
On detecting the usage
an invoice as across
being a EA&R distribution
transaction, a lines
pop screen
automatically
appears to
enter usage
Pressing this
button will
create the
emissions and
shutdown the
• Automatically detects when additional screen
data needs to be entered
• Values default data based on setup
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32. EBS Emissions Overrides
Override
Rates
Override criteria and justification
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33. Associate Environmental Impact
to Assets
• Leverage Assets already defined in ERP
• Set up external Assets as needed
Trans Type – Engine Type
EXTERNAL Will have different emission factors
assets are
ones that do
not exist in
Oracle
Assets
INTERNAL
assets are
ones that do
exist in
Oracle
Assets
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34. Allocate Environmental Impact
to Assets Issue Fuel Consumption To Fleet
The system will Vehicles Or Other Assets
determine the Item The User enters
code, sub -inventory the usage &
and unit of measure commits the
based on setup transaction
On selecting
the type, user
is automatically
prompted for the
associated
Asset
Using the Standard Miscellaneous
Transaction Screen In Inventory
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35. Assets
Trans Type –
EXTERNAL Engine Type
assets are
ones that
do not exist
in Oracle
Assets
INTERNAL
assets are
ones that
do exist in
Oracle
Assets
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36. EA&R KPIs
User Defined Metrics
• Define custom key performance
indicators to more deeply analyze
key metrics
• Normalize data to operational
metrics Creating Custom KPIs
• 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
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37. 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
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38. 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
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39. 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
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40. 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
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41. 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
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42. 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
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43. Key Benefits for Data Collection
Leveraging 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
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44. Key Benefits for Data Collection
Emissions
• 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
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45. Key Features for Emissions Calculations
Control 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
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46. Key Benefits for Emissions Calculations
Auditable 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
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47. Key Features for Analytics and Reporting
Meet 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
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48. Provide Visibility & Drive Performance
With Oracle Business Intelligence Analytics
Emissions by Scope
• 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
Emissions by Facility
• Manage performance against targets
• Drill down into graphical output of past,
current, and projected data
• Analyze historical trends
• Define variance thresholds and receive alerts Emissions by Source
• Leverage BI Publisher for report submission
• Publish and distribute reports in multiple formats
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49. Key Benefits for Analytics and Reporting
Meet 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
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50. Questions/Resources/Thank You
Clean Energy Regulator
Website
www.cleanenergyregulator.gov.au
Ndevr Website
www.ndevr.com.au
Ndevr Blog
matt.drum@ndevr.com.au
ray.kan@ndevr.com.au
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