Organizational Control of Sertony Ltd Pty - Case Study Example

Carbon Emissions Name: Lecturer: Course name: Course code: Date: i) Organizational control Emissions from facilities and vehicles leased by Sertony Ltd Pty (owned assets) are categorized as Scope 1, 2 or 3. This classification depends on the source of emissions, and the approach Sertony Ltd Pty takes to establish its organizational boundary, and which type of ownership arrangement is in place. To date, Sertony has approximately $15 billion AUD of assets under its management. The company’s organizational boundary emissions classified as Scope 1 or 2 are; gas, electricity and diesel, while those outside the company’s organizational boundary are classified under Scope 3 to include travelling expenses. If Sertony Ltd Pty is using the financial control approach or equity share method to determine its organizational boundary, then owned and leased assets fall within its organizational boundary are considered in financial accounting as wholly owned assets and are inputted categorically on the balance sheet. If the company is employing the operational control approach to determine its organizational boundary, all the leased assets would be considered within a company’s organizational boundary only with the existence of operating lease. Considerations of operating leases are defined for their absence on finance or capital leases terms. ii) Emissions calculations Scope 1 – Are direct emissions from owned sources or a company controlled, for instance diesel fuel and gas used by the company or employee vehicles. Scope 2 – Entails electricity emissions the company generated from coal fired power stations, and used to power computers, lights, and other appliances Scope 3 – Are other indirect emissions not from direct emission sources and owned by the company, for instance, emanating from supply chain, and business travel on commercial global airlines. Emissions levels Gas emissions=36490GJ Diesel emissions=11180kL Electricity consumed=50,009,236kwh Scope 1 emissions Are diesel and gas emissions = 47670 kl Scope 2 emissions Electricity consumed=50,009,236kwh Scope 3 emissions Are transport-related activities Taxi=$980,000 Car allowances= $234,000 Air flights=23,456,780 km iii) Risks associated with scope calculation methods There is usually a possibility of double counting emissions owing to mistaken placement in either scope 1, 2 and 3. The Green House Gases Protocol Corporate Standard was designed to rid off double counting of emissions over a range of companies within scope 1 and 2. For instance, the scope 1 emissions of Sertony Ltd Pty, which could be a generator of electricity, can be mistakenly counted as the scope 2 emissions of company X which is an end-user of electricity. Sertony Ltd Pty’s scope 1 emissions will not be counted as scope 1 emissions by firm Y, being a partner organization of Sertony Ltd Pty. This happens as long as Sertony Ltd Pty and firm Y regularly employ similar equity share approach or control when combining emissions. Again, scope 2 definition of does not permit double counting of emissions in scope 2, meaning that two separate companies do not mutually count scope 2 emissions from the procurement of the similar electricity. Averting double counting in scope 2 emissions creates usefulness in accounting levels for Green House Gas trading programs engaged in electricity end users regulation. When employed in outside initiatives such as Green House gas trading, the complexity of the scope 1 and 2 definitions joined with the regular use of either the equity share approach or control for establishing organizational boundaries permits only a single company to demonstrate ownership of scope 1 or scope 2 emissions. Realistically, Sertony Ltd Pty approach Scope 3 in very diverse ways by selecting out a few elements of Scope 3 to comprise their inventory like employee commuting and corporate travel. Few companies go to the harrows of conducting a comprehensive inventory analysis of Scope 3. Reasons range from challenging and expensive analytically rigorous Scope 3 analysis to undesirable generated results a company may wish not to see. iv) Risks and opportunities on upstream and downstream emissions With the company having a business face, environmental challenges can be put through analysis. For example, the business does funds management, investment, development and property investment banking. It has to put up with environmental challenges, realities of climate change, to bring into consideration the aspects of climate change and effects of the emissions from energy use. Upstream influences the supplier and distribution system emissions and operations while downstream entail emissions from consumers or clients driving to the store. Energy use arising from products traded in stores and issues influences possible carbon charges or constraints. There are numerous opportunities to launch eco-efficiency effort aimed at energy application and connected greenhouse gas emissions. So an example of cartons retailer can find out that from the challenges of climate change. The company could be facing risks from the energy use emissions applied internally in addition to their downstream customers and upstream suppliers. The opportunities exist in launching an eco-efficiency effort aimed at energy utility and connected to greenhouse gas emissions. The Sertony Ltd Pty can begin to analyze all environmental challenges to comprehend location of risks and opportunities. Eventually, it will be a good systematic and robust approach. v) Achievable Carbon management strategies Measuring and lowering greenhouse gas emissions is as significant to operating costs management and staying competitive in the marketplace, by measuring and lowering energy consumption. Greenhouse gas emissions and energy consumption management are yardsticks of operational performance, creating a broad gauge for building efficiency.  Buildings housing the offices of Sertony Ltd Pty account for a certain significant percentage of greenhouse gases (GHG) emitted in Australia, and managing and measuring this footprint is an important to state and Australian climate legislations. It is time the company understands the impact of its portfolio’s operations on climate in the sub-continent. A holistic approach to carbon management constitutes measuring and monitoring carbon emissions at all the building and portfolio level of the company. The company can also set achievable carbon reduction targets, and adopt portfolio-broad strategies for reducing carbon emissions. By the aid of a policy expertise, company clients will know state and national requirements and maximize on prevailing incentives for greenhouse gas and energy use reductions. vi) Opportunities for carbon emissions reduction The Australian Government is investing in excess of $5 billion in commercializing and developing technologies on clean energy. These technologies will be important for Australia's efforts to lower its carbon pollution emissions. These technologies will also be significant to the entire world as they also need to lower their carbon pollution. The company can develop a comprehensive plan aimed at establishing a carbon price and billions of Australian dollars in renewable energy. It constitutes developing the energy sector from high polluting sources like a diesel engine vehicles and adopts use of green vehicles. The company will also require assistance for it to take action. Since the Australian Government is assisting Australian businesses take responsibility and lower their emissions. The company can, through Clean Energy Future opportunities, open up in ongoing businesses as they shift operations into a clean energy future. Several companies currently produce less pollution since they have been able to increase efficiency after investing heavily in modern technology. New clean industries will jobs in renewable energy generation, sustainable design and carbon farming. To assist companies pay for energy efficiency improvements that are time and money saving. The Australian Government is developing the Australian Carbon Trust meant to bring all public and private funding, creative business approaches and professional knowledge to assist companies and community groups’ bank on energy efficiency and lower emissions. The company should also recognize the significance of training its employees and customers so that they will be equipped to join the new clean industries and grab the new green-collar jobs to come. Developing skills for the carbon challenge assists to develop and pilot training resources and credentials that impart green skills and sustainability principles across the entire branches of Sertony Ltd Pty. vii) Potential carbon offset strategy Despite the impoverished and dark times of the 2009 world's economy in, some surveys shows that green issues have been placed high on the agenda for top management and the board. The company will have to calculate its carbon footprint and consider actions to lower it, through adoption of energy efficiency measures, recycling activities, and waste reduction. This has economical rationale and idealizes some of the cheapest actions that the company can use. The company needs to show a strong interest in offsetting with the majority of its branches buying offsets and consider doing so before a target period. This will act as an incentive to the company to work harder in order to meet carbon neutrality targets that are compulsory. It can consider being carbon neutral, offset flights or have specific services or products. Few companies have stopped offsetting owing to negative anticipation when year starts. The consequences of voluntary market were lowered by the reduced confidence with the economic recession. If it chooses to offset, considerations will include budget concerns and standards consolidation. In addition, uncertainty of regulations is a great reason why the company chooses not to offset. It gives a reflection of waiting and depending on the government to act hence mirroring on objectives they could achieve without being compelled by emissions trading scheme was created. There are alternatives to carbon offsetting like choosing both internal emission reductions and community projects investment. This is closely followed by contributions to adaptation projects. Regionally, the franchises will strongly favor adaptation to counter situations where the impacts of climate change are often felt most. Geographically, the company should have positive attitudes towards offsetting by considering changes their views of their branches towards offsetting. The trend should show that opinions of employees have either stagnated or grown more positive or few to those who are discouraged. These bolster the idea that voluntary carbon market is increasing more credibility and positive effect on the development. The company’s reasons for offsetting should be clear and broad on environmental benefits, with emphasis on marketing, carbon neutrality and community service commitments to engender motivating factors. This will be in contrary to demands from customers who have lower reliability. It is perhaps more crucial to go through company’s perception that green activities will involve in expanding their brand strength instead of showing a direct push from clients. Many company buyers depict a clear taste for renewable energy projects, like solar and wind. Interest is developing into forestry projects, to avoid deforestation which is specially mentioned as very desirable when compared to other technologies. Carbon management strategies are slowly becoming very indispensable to companies who continue to give great insights into the market trends by helping show what is in and out of market consumption. viii) Stakeholders in carbon emissions management These include external Stakeholders like buyers and clients. Their identification depends on the client’s stakeholder grouping and the client’s current position compared to current external stakeholder groups. The stakeholders present a variety of scenarios to the company based on their aggression and degree of influence to the company. Carbon trading provides opportunities for the client or vendors to take strategic positions among other stakeholder groups to reap maximum benefits out of the available reduction targets.    Internal Stakeholders who include employees and staff families are keen to perceive the compliance of the company to established rules. These impacts on company’s confidence and general view because they have the wider perception and dealings of the company with others. It also influences their attitudes and willingness to participate in the proposed green programs and functions. Their input will determine how external stakeholders will consider taking heed of the company’s strategic plans. A survey can be done to capture employee attitudes towards say a carbon neutral program. They research can be analyzed in a number of ways by providing information regarding employee attitudes. Employees can become good advocates of green energy, travel and lighting by insisting on what is good for them. Company internal clients help a lot in carbon reduction scenarios by leveraging on the opportunities developed for strategic positioning within external stakeholders and reinforced by the tastes of their related internal stakeholders. In the nutshell, Sertony Ltd Pty will capitalize on the few emission reduction strategies which every company client should immediately begin to consider. References Barnes, D 2008, Operations Management: An International Perspective, Cengage Learning EMEA. Carey, RG & Lloyd, RC 1999, Measuring Quality Improvement in Healthcare: A Guide to Statistical Process Control Applications, ASQ Quality Press. Cleland, DI & Ireland, LR 2006, Project Management: Strategic Design And Implementation, McGraw-Hill Prof Med/Tech. Council, FF & Staff, NRC 1999, Environmental Management Systems and ISO 14001: Summary Report, National Academies Press. Evans, GJ 2006, A Framework for measuring Project Metrics, CVR/IT Consulting LLC. Kendrick, J 2009, Measures and Metrics for PMO success, P2C2 Group. Lyonnet, P 2001, Tools of Total Quality: An Introduction to Statistical Process Control , Springer. Sheldon, C & Yoxon, M 2004, Installing Environmental Management Systems: A Step-By-Step Guide, Earthscan. 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