<Insert Picture Here> Empower Green Enterprise Reporting Why—and how—business is widening its focus to consider the needs of all stakeholders Ravi Tirumalai Marketing Director – Oracle Asia Pacific [email protected] April 20, 2010
Jan 13, 2015
<Insert Picture Here>
Empower Green Enterprise ReportingWhy—and how—business is widening its focus to consider the needs of all stakeholders
Ravi TirumalaiMarketing Director – Oracle Asia [email protected] 20, 2010
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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
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Confusing Terminology
GreenCorporate
Social
Responsibility
Sustainability
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A Debated Subject … The Capitalist View
Milton Friedman
“the social responsibility of
corporations is to maximize profits.”
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A Debated Subject … The Environmentalist View
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But Sustainability Is About Your Business Model
Michael Porter
“Don’t pit business against society, they are interdependent”
“Typically the more closely tied a social
issue is to a company’s business, the greater
the opportunity to leverage the firm’s
resources—and benefit society”
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Sustainability Strategies
Product and Service Design- meet customer needs
Sales and Marketing- sustainable attributes
Blue Ocean Strategies- defining a new market
Building Brand Value- being seen as a sustainability leader
Building The Upside
Improve resource productivity - efficiency
Cut environmental costs and regulatory burden – expense reduction
Value-chain leverage- upstream and downstream
Risk management- lobby for stricter regulations
Managing The Downside
Based on “Green to Gold”, Daniel Esty and Andrew Winston
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Various Indices Focus on Sustainability
• Standard & Poors Corporate Governance Scores
• FTSE4GOOD
• Dow Jones Sustainability Indices
• Ethibel Sustainability Indices
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Functional View of SustainabilityIntelligent Management of Carbon, Energy and Other Natural Resources
Risk & Performance Management
Data Collection & Contextualization
IT Infrastructure
Supply Chain & Operations Management
Sustainability Business
Intelligence
Sustainability Management
Environmental Compliance & Risk Management
Environmental Compliance & Risk Management
Sustainability ReportingSustainability Reporting
Natural Resource Planning and Budgeting
Natural Resource Planning and Budgeting
Carbon Cap & Trade, Offset Management
Carbon Cap & Trade, Offset Management
Digital Content Management
Digital Content Management
Workload ManagementWorkload Management
Application ConsolidationApplication Consolidation
Software-as- a-ServiceSoftware-as- a-Service
Server & Storage Virtualization
Server & Storage Virtualization
Design for the EnvironmentDesign for the Environment
Sustainable ProcurementSustainable Procurement
Supply Chain PlanningSupply Chain Planning
Green ManufacturingGreen Manufacturing
Environmental Health and Safety
Environmental Health and Safety
Intelligent Asset Management
Intelligent Asset Management
TransportationTransportation Reverse LogisticsReverse Logistics DematerializationDematerialization Smart Utility
GridsSmart Utility Grids
ERP & SCM IntegrationERP & SCM Integration
Emissions CalculationsEmissions Calculations
Meters, Building & Energy Systems Integration
Meters, Building & Energy Systems Integration
Shop Floor Control and MES
Shop Floor Control and MES
Data AggregationData Aggregation
Operational AnalyticsOperational Analytics
Enterprise AnalyticsEnterprise Analytics
Policy MgmtPolicy Mgmt
Controls MgmtControls Mgmt
Data Verification
Data Verification
Copyright ©2009, Oracle. All rights reserved. Oracle Confidential
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The Big Sustainability Picture for Oracle
MiddlewareDatabaseHardware
Virtualization
Applications – SCM, HR, Financials, GRC, Agile etc.
BI & EPM
Server Consolidation and Energy Savings
– “Green IT”
Social Compliance, Reduce, Reuse, Recycle, “Green
Supply Chain”, etc.
Sustainability Reporting, Planning and Management
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<Insert Picture Here>Sustainability andEnterprise Performance Management
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Source: PricewaterhouseCoopers
Increasing Demand for Non-Financial Information
New metrics for valuation
Board-level focus on reputation, social responsibility and sustainability
Publishing of key non-financial information along side financial data
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Increasing Popularity of CSR Reporting• More than 2000 companies publish some kind of Sustainability Report*• 80% of G250 produce sustainability reports in 2008 survey vs. 50% in
2005 and more than 75% use GRI framework for sustainability reporting**
* Business for Social Responsibility** KPMG Global Sustainability Survey, October 2008
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GRI Reporting
Profit
People Planet
Direct Economic ImpactCustomers, Suppliers, Employees, Providers of capital, Public
sector
Environmental•Materials•Energy•Water•Biodiversity•Emissions, effluents, and waste
•Suppliers•Products and services
•Compliance•Transport
Social•Labor Practices and Decent Work
•Human Rights•Society•Product Responsibility
www.globalreporting.org
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The Benefits are Becoming Clearer
• Avoidance of Penalties or Lawsuits• Improved Reputation With Stakeholders
• Investors
• Credit agencies
• Customers
• Employees
• Attract Capital from “Green” Investors• Enhanced Brand Value• Improved Business Performance
• Operational Efficiency & Cost Savings
• Risk Assessment and Management
• = Long-term, Sustainable Financial Value
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The Tools Approach Falls Short
• Spreadsheets
• Text Documents
• Desktop Publishing
• Point Solutions
• Missing:
Workflow Approvals Validations Audit Trails Data transmission Repeatable Process
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Regulatory Developments Driving Sustainability Closerto Mandatory Financial Reporting
Voluntary SustainabilityReporting
Mandatory Financial
Statements
ShareholdersShareholders StakeholdersStakeholders
Accounting standards (New requirements for
Sustainability Reporting)
Voluntary Reporting Guidelines (GRI)
Corporate ReportingCorporate Reporting
EU: Financial Accounting directives require disclosure about environmental and HR issues in the annual statement.
EU Emissions trading starts 2005. Links to IAS 20 and 37.
U.S: Sarbanes-Oxley brings new requirements for listed companies regarding risk management and reporting
NRE in France requires listed companies to include social and environmental data in their board of directors’ review.
Companies Act in the UK will require social and environmental disclosure.
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Sustainability Data Comes from Financial, Operational and Other Systems
Riskmanagement
Environmentalperformance
Economic Performance
Social Performance
StakeholderEngagement
F&CPolicies
monitoringERP
Energy, Facility mgmt
HRCRM, SCM
SourcingProcess control
Corp Sust.
Report
Financial Metrics
Operational Metrics
Corp
Functions
Divisions
Operations
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Oracle’s Hyperion Financial Management
Our “Green” Solution
NON-FINANCIAL
2Future Application for Sustainability Reporting
+
Economic
Social
Environment
Capture
Report
Store
FINANCIAL
P&LCashFlow
Balancesheet
ROCE
EBITA
P/E
etc.
Reporting & Analysis Tools Report/Model/ Analyze/Benchmark
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• Sustainability Chart of GRI-based Indicators
• Conversion Factors and Calculation Rules
• Target setting and Scenarios
• Full Audit trail, Process Management and Security
• Modules for Stakeholder Dialogue and Policy
Management
• Report Templates and Dashboards
Key Elements of the Solution
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Sustainability Scorecard
UnderstandEnv.legislationand guidelines
UnderstandEnv.legislationand guidelines
UnderstandCustomer Use
Patterns
UnderstandCustomer Use
Patterns
Understandcurrent env.
footprint
Understandcurrent env.
footprint
Est. product tracking
capabilities
Est. product tracking
capabilities
Design for
Remanufacture
Design for
Remanufacture
Comply withEnvironmental
Policy
Comply withEnvironmental
Policy
Ease ProductUpgrade/Renewal
Ease ProductUpgrade/Renewal
Maintain Cust.Intimacy over
time
Maintain Cust.Intimacy over
time
MinimizeTCO / Disposal
MinimizeTCO / Disposal
Ease Product Return at EOL
Ease Product Return at EOL
Recover RawMaterials
Recover RawMaterials
Increase SalesIncrease Sales
IncreaseProfits
IncreaseProfitsLower COGSLower COGS
EnsureOpen Markets
EnsureOpen Markets
MinimizeEnvironmental
Impact
MinimizeEnvironmental
Impact
MinimizeCarbon Credit
Needs
MinimizeCarbon Credit
Needs
SustainableEnterprise
SustainableEnterprise
Get CustomersTo Return Products
Get CustomersTo Return Products
Learn
ing
Pro
cess
Cust
om
er
Fin
an
cial /
Bott
om
Lin
e
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Carbon Planning
`
Cost
Turn offLights at night
Switch to moreEfficient Light
globes
Fitting SolarPanel for power
generation
Decreasing level of
C02 emission
Each block represents an abatement projectX-axis defines expected C02 saving
Y-axis defines expected cost of projectCost saving projects should be executed first
(i.e. left of Curve)
Projects of abatement are modelled intoa marginal cost of abatement curve
E-prise Carbon Planning
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Oracle’s Enterprise Performance Management System
EPM WORKSPACE
OLTP & ODSSystems
Data WarehouseData Mart
SAP, Oracle, Siebel,PeopleSoft, Custom
ExcelXML
BusinessProcess
OLAP
Fusion Middleware
Business Intelligence Foundation
BI Applications
Web AlertsOffice MobileDesktop Search
PERFORMANCE MANAGEMENT APPLICATIONS
StrategyManagement
BusinessPlanning
ProfitabilityManagement
FinancialReporting &Compliance
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<Insert Picture Here>Customer Examples
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IndustryStora Enso is an integrated paper, packaging and forest product company producing publication and fine papers, packaging boards, and wood products areas in which the Group is a global market leader.
OverviewIn 2007, Net Revenue of € 13,3 Billion with 39,000 employees in 40 countries
Stora Enso Streamlines Sustainability Reporting
Stora Enso wanted to unify Financial and Non Financial reporting:
• Sustainability Reporting is critical e.g.
climate change, rising energy costs, acceptability of fibre, etc.
• Enhanced reporting and analysis for internal use
• Link financial and sustainability performance analysis
• Ability to monitor data quality globally for 150 operating sites
• Same reporting process and schedule for the whole annual reporting package
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Key Takeaways
• Sustainability Reporting is mandatory in many countries, voluntary in the US – for now
• Many business benefits• Avoidance of Penalties or Lawsuits• Improved Reputation With Stakeholders• Attract Capital from “Green” Investors• Operational Efficiency & Cost Savings• Improved Business Performance
• Oracle’s EPM/BI tools can streamline the reporting process – extend to planning and management
• Leverage the experience of Oracle and partners
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<Insert Picture Here>Sustainability and Oracle
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• First software company to participate in the U.S. EPA Climate Leaders Program
• Member of the U.S. EPA Green Power Partnership Program
• Member of the Climate Savers Initiative
• Participate in Demand Response Programs
• 14 European and South African operations are certified to the ISO 14001 environmental standard
• Best Workplace for Commuters Award Winner
• Conservation and recycling programs ranging from water, paper, waste, etc.
Oracle: Industry Leader in Environmental Issues
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Oracle’s Commitment - Learn More
www.oracle.com/commitment
• Oracle’s Corporate Citizenship Report
• Oracle’s 2007 Corporate Citizenship Summary Report
• Oracle’s 2007 Oracle and the Environment Summary
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Questions?
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