Hi All, Here are the slides we presented at Arizona State University last week as part of the CAM-I quarterly conference. This is an introduction to Sustainable Management which considers both Financial and Environmental Sustainability simultaneously. This provides data to help organizations transition to a lower emissions business in a financially sustainable way. For the slide pack I have assumed the audience would have zero knowledge of sustainability, climate change or carbon accounting, so there are a number of basic introductory slides at the beginning. One thing that might be of interest is the actual pilot model we are currently building for King County (Washington State) - USA - where the Fleet Services Division have a requirement to migrate their 3000 ish vehicles to EVs and trying to figure out the cost of this transition and the resultant reduction in emissions. Any questions/comments please add here or DM me 🙂 Cheers, Lea https://www.pilbaragroup.com/wp-content/uploads/2024/03/Lea-Patterson-and-Chauntelle-Hellner-Introduction-to-Sustainable-Management-20240223.pdf
Sustainable Management I'm happy to share that I will be joining Chauntelle Hellner - Director, Fleet Services Division, King County (Washington) to present our joint Sustainable Management project at the CAM-I, Arizona State University, W.P. Carey School of Business, Innovation Assembly Tuesday, March 5. Sustainable Management considers both financial and environmental sustainability at the same time. During the presentation we will explain what this involves in practice, introduce the E-liability Institute methodology and show a real example with the King County model who are using it to help them switch their 3000 vehicles to EVs. This event is free to attend, and you can choose to attend virtually. If interested, please register here: https://www.cam-i.org/index.php/meeting-training/register-for-meeting The program can be found here: https://www.pilbaragroup.com/wp-content/uploads/2024/02/CAM-I_W.-P.-Carey-Innovation-Assembly.pdf
Lea Patterson
11 w
Climate risk is financial risk, and companies and their boards should manage it as such. Climate risk can be quantified, measured, and mitigated. It can represent a strategic opportunity for competitive differentiation as long as the company's claims for differentiation can be audited and are meaningful to its customers. It matters how a company does its carbon accounting. Management and the board need rigorous emissions accounting to understand and mitigate risks and seize opportunities. Excellent discussion between Dr. Sabine Dembkowski from Better Boards Ltd. and Michael Mahoney from the E-liability Institute - you can learn more about the E-liability methodology at their website: https://e-liability.institute/ https://podcasts.apple.com/gb/podcast/can-accounting-save-the-world-and-your-company/id1481001004?i=1000643730769
The Better Boards Podcast Series: Can accounting save the world and your company? on Apple Podcasts
Show The Better Boards Podcast Series, Ep Can accounting save the world and your company? - 31 Jan 2024
https://podcasts.apple.com/gb/podcast/can-accounting-save-the-world-and-your-company/id1481001004?i=1000643730769
Lea Patterson
18 w
When it comes to alternative energy sources, solar is the winner at the moment. Wind is having issues and just read about Siemens Energy financial issues related to wind turbines in the latest edition of The Economist magazine. Nuclear is expensive, according to the Carbon Copy podcast by Canary Media Inc. the big costs of nuclear are permitting and construction. Best practice countries have the one organization build and manage nuclear power and given the expense, there seems to be more of a push to large builds rather than small modular, to get efficiencies of scale. https://www.afr.com/policy/energy-and-climate/renewables-are-cheapest-even-with-poles-wires-and-batteries-added-in-20231219-p5esl6
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18 w
I think we can agree solar power is doing pretty well at the moment but we need to improve on it's production and on wind power as well
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18 w
I second you solar panels is relatively cheaper and no cost incurred after buying it
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Solar energy is definitely a standout in the alternative energy sector. Its popularity as a renewable energy source has increased significantly in recent years due to its cost-effectiveness, accessibility, and environmental benefits.
Lea Patterson
19 w
“Today I ask for your income and expense, tomorrow I will be asking for your income, expenses and carbon footprint – it’s a virtual certainty that will happen,” this means companies will have to have the same rigor around Carbon Accounting as they do for Financial Accounting which is where the E-liability Institute and Consortium for Advanced Management - International (CAM-I) methodology comes into play! https://amp-smh-com-au.cdn.ampproject.org/c/s/amp.smh.com.au/business/banking-and-finance/reduce-carbon-footprint-if-you-want-cheap-finance-nab-20231207-p5epwy.html
Lea Patterson
20 w
What the hell is this!!?? A half page ad in The Weekend Australian. I don’t know who “The Climate Study Group” are, but a quick search tells me they are a group of seven conservative Australian men - sigh! 😫 #climaterisk #disinformation
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19 w
The media is also responsible for the mess we are in because they support such policies and problems
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Lying should be illegal.
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19 w
Horrible!!
Lea Patterson
21 w
What if assumptions made about implementing sustainable practices turn out to be wrong? By implementing robust Carbon Accounting solutions you can use data based approaches to determine the environmental impact of changes made at organizations and its actual impact on the environment. A new article, published yesterday in the Harvard Business Review, describes a project undertaken by Japanese electronics giant Hitachi and three of its suppliers in conjunction with the E-liability Institute to understand where CO2 emissions were produced in the value chain for the copper used to manufacture its transformers and how different sourcing of the copper would affect the quantity of emissions produced. A key finding of the project was that recycled copper can produce significantly more CO2 emissions than mining copper, if the recycling process is itself high emitting and if the mining process is low-carbon. This highlights the value of applying a systematic and robust approach to measuring carbon emissions such as the E-liability method used in the project. Professor Karthik Ramanna of the University of Oxford’s Blavatnik School of Government, and Harry Kirk of the E-liability Institute co-authored the article. https://hbr.org/2023/11/why-recycled-materials-dont-always-generate-greener-products
Lea Patterson
22 w
Professor Karthik Ramanna from the Blavatnik School of Government at the University of Oxford discussing the E-Liability Methodology. On the current state of Carbon Accounting “It would be like the Security and Exchange Commission or the IASB saying ‘oh if you don’t know your gross margins, you don’t know your cost of goods sold, no problem just find some industry average and use that, that’s totally fine.’ We couldn’t run a business, we couldn’t run an economy like that, the stock market would crash because there was no information. In fact that was like the world we lived in the 1920s that lead to the stock market crash of 1929. So if we are really serious about addressing climate change, then at the heart of it is good carbon accounting!” https://www.youtube.com/watch?v=DqCzHkYSbD4
Lea Patterson
22 w
The current GHG-accounting standard discourages supply-chain decarbonization. Whereas the E-liability Institute method will stimulate aggressive decarbonization actions along the supply chain. https://hbr.org/2022/04/we-need-better-carbon-accounting-heres-how-to-get-there
We Need Better Carbon Accounting. Here’s How to Get There.
Any effective system of greenhouse gas (GHG) accounting needs to measure each company’s supply-chain carbon impacts accurately, providing visibility and incentives for it to make more climate-friendly product-specification and purchasing decisions. The authors’ recent HBR article, “Accounting for Climate Change” (Nov-Dec 2021), noted how the current dominant system for carbon accounting, the GHG Protocol, misses this critical point by allowing companies to guestimate upstream and downstream emissions. To address this shortcoming, they introduced an E-liability accounting system, based on well-established practices from inventory and cost accounting, for accurately measuring GHG emissions across corporate supply-chains. In this follow-up piece, they describe the basic flaw inherent in the GHG Protocol, explain why it has persisted, and offer a way forward for robust carbon accounting that does not involve rescinding the Protocol, which has been widely embedded in many global climate agreements. They conclude by identifying which companies stand to gain most from accurate GHG accounting and could be early adopters of the E-liability system.
https://hbr.org/2022/04/we-need-better-carbon-accounting-heres-how-to-get-there
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This is very insightful! Do you work with this topic?
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