Energetics can work with your business to develop a strategy that identifies and minimises risks, establishes carbon abatement targets, prioritises and implements energy savings projects, lowers costs, advises on new technologies and explores opportunities to introduce new products and services. As the Australian economy lowers its carbon emissions, markets will be redefined and business brands will transform.
Financial markets favour organisations that disclose their risks, have a strategic plan in place and support a management culture of transparency. This in turn will direct a business’ longer term investment decisions and support the necessary structural changes.
Energetics has the expertise and depth of experience to partner your business to develop a rigorous, innovative and market-leading response to the challenges of energy and carbon management.
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Understanding the breadth of issues associated with energy and carbon cost impacts demands business management insight, technical expertise and implementation experience.
Many leading Australian organisations are working with Energetics to develop strategies that address the challenges presented by volatile energy costs and the carbon price, while unlocking new sources of competitive advantage.
Strategic planning factors:
The price on carbon has implications for the risk profile of a business, particularly as the pass through of carbon costs is subject to ACCC scrutiny. When working with clients, Energetics considers questions directly relating to business strategy such as:
Market differentiation and leadership can be achieved by taking a proactive approach to the carbon price by implementing corporate targets and carbon reduction activities.
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Do you have confidence in what you are measuring and reporting?
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Would a higher order methodology increase or decrease your emissions levels?
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How is liability allocated to different product streams?
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Is this process transparent and defendable under ACCC scrutiny? What does this mean for current and future supply contracts?
Energetics has facilitated workshops for clients to assist in the development of strategic priorities. Our team has also helped clients identify opportunities that have saved money and mitigated risk, including:
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footprint reduction activities
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purchasing renewable energy and/or offsets and managing the risks involved
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using carbon reduction activities as a market differentiator
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setting corporate targets
We take a holistic approach to energy, carbon, water and waste management strategy development by analysing clients’ operations and opportunities to drive efficiencies though their business, indirect influencers and supplier relationships within the supply chain, and marketplace behaviour including opportunities for incorporating low carbon products and design mechanisms, carbon markets, and response to Government policy and programs.
Energetics can partner with your business to build a carbon strategy that mitigates risk, identifies cost savings, fosters innovation, improves resource productivity and competitiveness.
Energetics is well positioned to provide strategic advice on the implications of a price on carbon for corporate profits, finance, planning, forecasting, risk management, compliance and investor relations.
Our industry experts have analysed the cost and profit impact of a price on carbon, how it will affect a business' customers and its supply chain, as well as the opportunities that lie in energy efficiency, carbon credits, low carbon product design, new technologies (renewable energy, control systems) and new services.
To position your business to best advantage, it is important to understand the impacts on sensitive customers and the ability to pass-through costs.
Energetics can help you develop a carbon strategy to:
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identify and minimise risk
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investigate opportunities to introduce new products and services
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establish carbon abatement targets
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pursue energy efficiency programs
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investigate new technologies and behavioural change campaigns
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implement robust systems to comply with the principles of comparability, completeness, accuracy and transparency
Energetics helps clients build a thorough understanding of their greenhouse gas emissions and reduction options. We do this by constructing a robust greenhouse gas emissions baseline and projections and by developing abatement cost curves to evaluate possible emissions reduction projects, resources and implementation schedules.
With these abatement cost curves, our clients can identify measures that will reduce costs, minimse risk and identify new opportunities.
Our greenhouse gas (GHG) abatement cost curve methodology provides a rigorous decision making framework, helping our clients make strategic decisions through:
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quantifying abatement potential at a specific time horizon, defining a realistic GHG abatement target and defining the likely options and costs of achieving this target
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evaluating and ranking abatement opportunities both within direct control and along the supply chain
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projecting capital expenditure requirements and prioritising RD&D efforts
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assessing different strategic options (e.g. change product mix, investing or divesting assets, energy supply options)
We work closely with our clients when implementing our methodology to build a deep understanding of their organisation, plans, and operational and capital constraints. This ensures that we develop meaningful findings and recommendations which reflect the environment in which our clients operate.
Energetics’ 8-step process is based on a robust assessment methodology to identify, quantify and rank alternative abatement opportunities with different scales of operation and investment and operating time periods. It ensures that all projects are assessed using a common and explicit set of assumptions, and allows our clients to readily run ‘what-if’ scenarios.
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Frame the abatement cost assessment in terms of time horizon(s), scope of emissions and system boundaries.
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Develop a greenhouse gas emissions baseline and reference baseline projections for all the assets and emissions sources in your organisation within the system boundaries.
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Identify all abatement opportunities available, now and over the timeframe being considered, and develop initial abatement potential and cost estimates.
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Build initial greenhouse gas abatement cost curve(s) using a structured bottom-up engineering approach with clear assumptions and screen all options based on your business risk criteria.
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Refine estimates for abatement potential, cost and lead time.
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Firm up opportunities with constraints by removing mutually exclusive abatement measures and considering inter-relationships between abatement measures.
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Construct the final cost curve(s) and perform a sensitivity analysis.
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Communicate findings and recommendations.
Abatement opportunities are ranked according to their cost effectiveness using a common investment appraisal procedure based on discounted cash flow valuation which considers life cycle costs, benefits and emissions reduction potential.
Energetics has significant experience in developing GHG abatement cost curves for clients in sectors as diverse as water supply/sewerage services, electricity supply, mining, retail banking, food retailing or postal services. We have helped these clients better position themselves in a carbon constrained economy.
While comparatively few are directly liable for their carbon emissions, every business will be impacted through their supply chain. The size of that cost impact will vary according to the carbon intensity of different business inputs.
Energetics helps clients understand their carbon exposure, risks and opportunities.
Considerations include:
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how a carbon cost changes suppliers and the availability and cost of inputs,
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the impact on your costs and profits, and
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impacts on your customers and their desire to buy your goods and services.
If your customers materially change their business in response to carbon, the impact on your business could be substantial.
Energetics can assist with analysis of these impacts throughout the supply chain, and help your business manage the risks and protect your profits.
Energetics can guide you on:
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managing the pass-through of costs
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reducing the carbon intensity of your business, as it may become preferable to source business inputs from an alternative supplier or location, or to switch to alternative products or processes
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identifying new low carbon opportunities
Energetics has globally recognised Life Cycle Assessment (LCA) specialists supported by energy, water and waste expertise. We can assist you to determine the total footprint of end products and likely impacts of shifts in policy, technology, innovation and consumer demand.