Carbon Accounting Presentation to the MasterPiece Users Group of South Australia

1. Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Carbon Accounting Framework Jon F. Mortensen, February 2009

2. 2 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Whether you believe in Global Warming or not is no longer the issue. The truth of the matter is that Government policy is now being driven by the fact that it believes that the majority of the electorate does. Introduction Jon F. Mortensen – Executive Green Consultant– February 2008.

3. 3 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Australia and Climate Change - Today The Australian Government’s climate change strategy is based on three pillars: Reducing Australia’s Greenhouse Gas Emissions Adapting to climate change that we can not avoid Helping to shape a global solution Fundamental to the Governments climate change strategy is a Carbon Pollution Reduction Scheme (CPR). This will impact in two ways on Australian Business: The introduction of a cap and trade scheme; and The refining of the previous Federal Government’s “National Greenhouse and Energy Reporting Act, 2007”

4. 4 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Focusing on NGER The NGER Act requires controlling corporations to register and report if they emit greenhouse gases, produce energy, or consume energy at or above specified quantities per financial year (1 July to 30 June).

5. 5 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. What is being Reported? In Australia we are reporting CO2 equivalence including: CO2 CH4 N2O SF6 HFCs PFCs The data that you capture should be: Required for Reporting purposes; and/or Relevant to future decision making purposes As with the budgeting/planning process too much detail confuses the process rather than helps it

6. 6 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Who does NGER encompass? Constitutional Corporations As defined by paragraph 51 of the Australian Constitution Controlling Corporations Where non-Australian companies control companies in Australia A Corporation is considered to have operational control over a facility if it has the (greatest) authority to introduce and implement: Operating; Health and Safety; and Environmental policies.

7. 7 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Who does NGER encompass? 80 Floors of office space will get you there (on lighting and power points alone) National Greenhouse and Energy Reporting Act 2007

9. Waste

11. 10 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. How do you Report? Online System (For) Comprehensive Activity Reporting OSCAR will also be the application that is used by corporations required to report their emissions and energy use under the National Greenhouse and Energy Reporting (NGER) Act 2007 and the Energy Efficiency Opportunities (EEO) program.

12. 11 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. OSCAR To reduce the burden of duplicative reporting, OSCAR also facilitates the cross-program sharing of common data, saving time and effort. Greenhouse Challenge Plus Other Federal/State/Territory Programs Currently being modified to meet NGER requirements Electronic Data Capture will be available Comments on Discussion Paper has now been closed Expecting XBRL output format to be adopted

13. 12 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. How should the data be collected & stored? Transparency Comparability Accuracy Completeness

14. 13 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Transparency Processes are auditable – i.e. if you are chosen for audit will the auditors be able to see how you arrived at your results Did you make any assumptions? What are your data sources (measurement, AGEIS, …)? How did you calculate your results? Why did you do it the way you did?

15. 14 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Comparability Document, Document, Document Using the same methodology allows Easier Auditability Allows comparisons from reporting period to reporting period Enables trend analysis Assists decision making

16. 15 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Accuracy You are required to provide your results within a 95% confidence level Penalties Apply if you are audited and you can not demonstrate

17. 16 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Completeness You need to account for all sources and activities Energy Consumption (Electricity, Gas etc) Production (Chemical reactions, waste gases etc) Fuel Consumption (Petrol, Diesel etc) If you don’t include something Disclose it Justify it

18. 17 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. What will a Carbon Accounting Framework Require Ability to add consumption and production data at the facility level Manually or automated

19. 18 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. What will a Carbon Accounting Framework Require Ability to add consumption and production data at the facility level Manually or automated Calculate Emissions Calculate Energy

20. 19 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. What will a Carbon Accounting Framework Require Ability to add consumption and production data at the facility level Manually or automated Calculate Emissions Calculate Energy Consolidate Data

21. 20 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Ability to add consumption and production data at the facility level Manually or automated Calculate Emissions Calculate Energy Consolidate Data Set Targets What will a Carbon Accounting Framework Require

22. 21 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Ability to add consumption and production data at the facility level Manually or automated Calculate Emissions Calculate Energy Consolidate Data Set Targets Manage Emission Factors Government Factors Company Factors Fixed Factors Variable Factors What will a Carbon Accounting Framework Require

23. 22 Copyright © 2008 Infor. All rights reserved. www.infor.com. Content is directional information only and is non-committal and may change at Infor's discretion. Facility Dashboard – Unique Facility Entry Point Admin Update Costs Targets Status