In 2007, The Australian Department of Climate Change and Energy Efficiency (The Department) issued the National Greenhouse and Energy Reporting Act 2007 (The NGER Act). The Act makes registration, and emissions reporting mandatory for corporations whose energy production, energy use or greenhouse gas emissions meet specific thresholds. In November 2011, Australia then passed a landmark law to impose a price on carbon emissions, provided for by the Clean Energy Act 2011. Companies involved will need to obtain a government-issued carbon unit for every ton of liable carbon emissions they produce. The initial price will be fixed, but will then be replaced by a flexible price on July 1, 2015, with the price of units being set by the market, with the number of available units capped, and a 'price ceiling' and a 'price floor'. Liabilities can also be managed by certain carbon offsets, although limits apply.
IT managers will need to find a way to reduce costs, rely on accurate data, and have the ability to proactively respond to meet the challenges of environmental reporting using existing organizational software. Organizations can use Oracle Environmental Accounting and Reporting (EA&R) to do this by treating captured emissions data in the same way as financial data – accurate, complete, and allowing emissions to be auditable, just as a financial report would be.
Oracle Environmental Accounting and Reporting (EA&R) captures the usage data, transforms it using the mandated emission factors and reports the greenhouse gas emissions taking into account all the relative criteria set out in the Act for reporting. Oracle EA&R follows the global Greenhouse Gas Protocol and embodies the following principles of Greenhouse Gas and Energy reporting stated in the NGER Act:
Transparency - Emission estimates must be documented and verified
Comparability – Emission estimates must be comparable with other similar corporations in an industry sector
Accuracy – Must be accurate within a 95% confidence level
Completeness – All identified emissions must be accounted for
You can help ensure your corporation's carbon records are accurate by capturing usage during invoice processing, allowing flexible recording of external events such as usages by subcontractors, and storing quantity or volume based non-invoiced emissions data such as fugitive and vented emissions and then applying the mandated emission factors. There is also a full range of historical information readily available. Forecasting becomes relatively easy, and you can set reduction targets according to "known" information.
The system is capable of recording at an industry sector level and uses the emission factors set out by the Department to allow comparability. Not allowing invoices and other transactions of carbon interest to be processed without the capture of the carbon usage information helps ensure completeness and accuracy.
Oracle Environmental Accounting and Reporting can monitor and calculate the liability and the carbon costs related to the Clean Energy Act. It allows you to monitor carbon cost trends on a monthly and quarterly basis, helping you to project and estimate the annual carbon liability cost and surrender and purchase an accurate number of carbon units throughout the compliance year. The Oracle Business Intelligence capabilities of the EA&R solution let you create ad hoc reports displaying the amounts of emissions produced annually, as well as the relative cost and the number of units required to meet your corporation's carbon liabilities.
Oracle EA&R helps enable compliance with the new legislation through ease of implementation, speed of implementation, low cost of implementation, reduced carbon compliance costs, and reduced carbon reporting costs.
RELATED SOLUTIONS FOR ENABLING THE ECO ENTERPRISE
For more information on how Oracle's solutions enable the "Eco-Enterprise" go to www.oracle.com/green.