Document

ECO-FOOTPRINT MANAGEMENT, A LONG TERM BUSINESS BENEFIT, NOT JUST A SHORT TERM TREND

ANTONY BOURNE

© 2009 IFS

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GLOBAL INDUSTRY DIRECTOR

eMail : [email protected]

Web : www.ifsworld.com

Booth # 3

THE WORLD IS CHANGING

© 2009 IFS

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It began with the Brundtland report in 1987 defining Sustainability !   Development that meets the needs of the present without

compromising the ability of future generations to meet their own needs” -UN Conference ”Our Common Future”

Today, sustainability is a complex area integrating several business reporting processes !   Environmental !   Social !   Governance

WHO IS DRIVING THIS?

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!   Legislation !   REACH, RoHS, WEEE, EUP Directive...

!   Buying Power: Trade Standards and Certificates !   Svanen, EU-Flower, ISO-14000, Gruhne

Punkt...

!   Responsible Investors !   PRI, UN Global Compact...

FROM POLITICAL AWARENESS TO STANDARD BUSINESS PRACTICES

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1987 Our Common Future !  World Commission on Environment and Development

– The Bruntland Commission

1992 – The Earth Summit & Agenda 21 !  UNCED, UN Conference on Environment and

Development

1997 – GRI, Global Reporting Initiative !  CERES

2000 UN Global Compact

2005 PRI, Principles of Responsible Investments

DISCLOSURE ELIMINATES RISK

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!   The advantage of being proactive is becoming obvious and is seen through efforts like !  Marketing

Several green labels can be achieved through various efforts

The number of sustainability reports is increasing – Companies attach verified sustainability appendixes to their annual reports to attract investors

!  Sustainability Reports The number of sustainability reports is increasing – Companies attach verified sustainability appendixes to their annual reports to attract investors

ENVIRONMENTAL PRODUCT DECLARATION (EPD)

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!   Provide relevant, verified and comparable information about the environmental performance of products (goods and services) in a credible and understandable way.

!   Based on a standardized Lifecycle Analysis (cradle to gate or cradle to grave)

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“A central challenge in all sustainability discussions is that most are driven by gut feeling—a “that doesn’t seem right” approach—but companies must rapidly progress beyond well-meaning intuition. What’s needed is engineering-type methodology and

meaningful underlying data for serious environmental evaluations.”

Derek Prior, AMR Alert Article October 15, 2008.

THE ECO FOOTPRINT SUPPLY CHAIN

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HAVE YOU GOT CONTROL AND MANAGEMENT OF IT?

!   Efficient tools make it easier to: !   Calculate and analyze your operations’ environmental

impact !   Control costs !   Prepare for environmental legislations !   …and they must be tightly integrated with the ERP

systems to access all relevant data

LIFECYCLE ASSESSMENT (LCA) ESTIMATE THE ENTIRE LIFECYCLE AND ITS IMPACTS

INPUTS

OUTPUTS

DESIGN / BUILD

EXTRACTIONS USE

DISPOSAL

TRANSPORTATION

IMPACTS Global Warming Ozone Depletion Smog Formation Acidification Human Health Eutrophication Waste Hazardous Waste Energy Usage Abiotic Depletion

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TRACKING OF FOOTPRINT SUBSTANCES USER DEFINABLE !   Also includes items that are not substances in a strict sense, e.g. Energy

EQUIVALENT CALCULATIONS

!   Global Warming Potential (GWP100)

!   Ozone Depletion Potential (ODP100)

!   Human Toxicity Potential (HTP)

!   Eutrophication Potential (EP)

!   Acidification Potential (AP)

!   Photochemical Ozone Creation Potential (POCP)

By calculating equavivalents it is possible to sum the effect of different emmisions.

Example: CO2 has a GWP100 factor of 1, CH4 has 23 and C2F6 has 11900

TRANSPORTATION !   Emissions per transport mode, km and kilo

!   Multiplied by Supply Chain matrix and weight of part

BY SUPPLIER / PURCHASE PART

CONNECT EMISSIONS TO PARTS VIEW AT ANY LEVEL IN A STRUCTURE

DIRECT BY PART

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ROLL-UP TO GET ”STANDARD FOOTPRINT”

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DETAILED BREAK-DOWN

USAGE

END-OF-LIFE PHASE

ECO - EFFICIENCY LIFE CYCLE ASSESSMENT (LCA) CONCEPT

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PARETO VIEW OF WORST CONTRIBUTORS

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VIEW TRENDS

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SUMMED BY VOLUME AND PERIOD

QUERY PART EMISSION HISTORY

© 2009 IFS

IMPACT ESTIMATES

ENGINEERING

HOW CAN ECO-FOOTPRINT BE USED IN CAPITAL PROJECTS?

© 2010 IFS

CORPORATE PERFORMANCE MANAGEMENT

General Ledger Sales Ledger

Purchase Ledger Cash Ledger

Project Accounting Fixed Assets

Consolidation Budget Management

IFS FINANCE

CONTRACT MANAGEMENT

APPLICATION SOLUTIONS

BUSINESS PROCESSES

Project Planning Estimating

Work Breakdown Structure Resource Planning

Project Accounting Budget & Forecasting

Progress Revenue Recognition

SERVICE & ASSET MANAGEMENT

Sales Contract Sub Contract Service Contract

Estimating Scope/Requirements Revision Control

Variations Order Retentions Invoicing & Valuation

Payment Applications Certificates Work Instructions

PROJECT MANAGEMENT

Project Planning MS Project Integration Primavera Integration Project Templates Estimating Work Breakdown Structure Recourse Planning / Allocation

Time & Expenses Project Procurement Material Planning Progress Document Deliverables Budgeting/Forecasting S Curves

SUPPORT PROCESSES

PROCUREMENT

CONSTRUCTION &

INSTALLATION

SPARES & REPAIR

SERVICE & SUPPORT

RETIREMENT &

DISPOSAL

Human Resources, Time & Attendance and Payroll

Document Management

Customer Relationship Management

Fabricate & Build

Eco-Footprint

Supply Chain Management

Risk Management

Quality Management

Equipment Definition Preventive Maintenance Faults Call Center Scheduling SLAs Service Contracts

Work Orders Time and Expenses Mobile & Wireless Resource Allocation Material Management Equipment Monitoring Tools & Facilities Plant Hire

SO WHY IS THIS IMPORTANT TO ME?

SUMMARY

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ECO-FOOTPRINT

!   The regulatory momentum is increasing and will get worse

!   Pressure will not only come from organisations, it will also come from investors

!   Better to act now rather than play catch-up at a later date

!   Legislation will change over the lifetime of a project and you need to understand the risk

!   It does not need to be a separate system, it can be integrated with your business application

ANTONY BOURNE

© 2009 IFS

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GLOBAL INDUSTRY DIRECTOR

eMail : [email protected]

Web : www.ifsworld.com

Booth # 3

INTERESTED? COME AND SEE US OR CONTACT ME

QUESTIONS?