1. Empower Green Enterprise Reporting Whyâand howâbusiness is widening its focus to consider the needs of all stakeholders Ravi Tirumalai Marketing Director â Oracle Asia Pacific [email_address] April 20, 2010
2. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracleâs products remains at the sole discretion of Oracle.
6. But Sustainability Is About Your Business Model Michael Porter â Donât pit business against society, they are interdependentâ â Typically the more closely tied a social issue is to a companyâs business, the greater the opportunity to leverage the firmâs resourcesâand benefit society â
10. The Big Sustainability Picture for Oracle Middleware Database Hardware Virtualization Applications â SCM, HR, Financials, GRC, Agile etc. BI & EPM Server Consolidation and Energy Savings â âGreen ITâ Social Compliance, Reduce, Reuse, Recycle, âGreen Supply Chainâ, etc. Sustainability Reporting, Planning and Management
12. Increasing Demand for Non-Financial Information Source: PricewaterhouseCoopers New metrics for valuation Board-level focus on reputation, social responsibility and sustainability Publishing of key non-financial information along side financial data
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17. Regulatory Developments Driving Sustainability Closer to Mandatory Financial Reporting EU: Financial Accounting directives require disclosure about environmental and HR issues in the annual statement. EU Emissions trading starts 2005. Links to IAS 20 and 37. U.S: Sarbanes-Oxley brings new requirements for listed companies regarding risk management and reporting NRE in France requires listed companies to include social and environmental data in their board of directorsâ review. Companies Act in the UK will require social and environmental disclosure . Voluntary Sustainability Reporting Mandatory Financial Statements Shareholders Stakeholders Accounting standards (New requirements for Sustainability Reporting) Voluntary Reporting Guidelines (GRI) Corporate Reporting
18. Sustainability Data Comes from Financial, Operational and Other Systems Risk management Environmental performance Economic Performance Social Performance Stakeholder Engagement F&C Policies monitoring ERP Energy, Facility mgmt HR CRM, SCM Sourcing Process control Corp Sust. Report Financial Metrics Operational Metrics Corp Functions Divisions Operations
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21. Sustainability Scorecard Understand Env.legislation and guidelines Understand Customer Use Patterns Understand current env. footprint Est. product tracking capabilities Design for Remanufacture Comply with Environmental Policy Ease Product Upgrade/Renewal Maintain Cust. Intimacy over time Minimize TCO / Disposal Ease Product Return at EOL Recover Raw Materials Increase Sales Increase Profits Lower COGS Ensure Open Markets Minimize Environmental Impact Minimize Carbon Credit Needs Sustainable Enterprise Get Customers To Return Products Learning Process Customer Financial / Bottom Line
22. Carbon Planning E-prise Carbon Planning Each block represents an abatement project X-axis defines expected C0 2 saving Y-axis defines expected cost of project Cost saving projects should be executed first (i.e. left of Curve) Projects of abatement are modelled into a marginal cost of abatement curve
23. Oracleâs Enterprise Performance Management System EPM WORKSPACE OLTP & ODS Systems Data Warehouse Data Mart SAP, Oracle, Siebel, PeopleSoft, Custom Excel XML Business Process OLAP Fusion Middleware Web Alerts Office Mobile Desktop Search PERFORMANCE MANAGEMENT APPLICATIONS Strategy Management Business Planning Profitability Management Financial Reporting & Compliance Business Intelligence Foundation BI Applications
Youâre spending the shareholders money. Of it is means increasing prices, the money of your customers. In any case, your spending taxpayerâs money.
Singling out one area of responsibility: environment. âEverything must be green.â Products must be green, electricity must be green, transportation must be green. Alternative energy sources. â The only good thing about the almighty dollar is that it is green tooâ
Porter describes CSR as a factor for competitive differentation
Show hierarchy? Embedded in business Information Operational Excellence Sustainability Reporting â includes scorecarding EH&S â includes incident mgmt? Data Verification â includes transaction control governor Intelligent Asset Management â EAM and smart buildings
A recent study by PWC discusses the future of corporate reporting. The valuation methods used by analysts will include new metrics â such as social performance and intellectual capital to more accurately assess the net worth of a company. It goes on to discuss how⊠The majority of companies in Europe and the United States will assign Board-level responsibility for areas of reputation, sustainability and social responsibility, and finallyâŠ. The majority of multinational businesses will publish a broader range of key non-financial information alongside financial data , covering areas such as business ethics, environment, diversity and community
Key message: We are recognized as a leader for our industry in environmental programs: Hereâs a snapshot of some of the programs in which Oracle is a member: U.S. EPA Climate Leaders Program: voluntary industry-government partnership that encourages companies to develop long-term, comprehensive greenhouse gas emission reduction goals. Oracle will achieve these reductions through implementation of its energy efficient strategy. (note: we report to EPA â do not produce a public report.) U.S. EPA Green Power Partnership Program: buying green power an easy and cost effective way to reduce the environmental impacts associated with conventional electricity use. Green power is power generated from environmentally preferable renewable resources such as solar, wind, geothermal, low impact biomass, and low impact hydro-mass. Sets goals that member companies purchase 3% of their power from green sources. Oracle has exceeded that percentage. Climate Savers: requires commitment that we proactively enable energy saving features available on our systems, such as âsleep modeâ and âstand-by.â Demand response program: stabilizing our requirements/demand during crisis so no one loses power. 14 countries meet ISO 14001 (Accounts for 80% of our footprint in EMEA) holistic environmental standards that sets minimum goals across a range of areas that impact the environment â energy, water, paper, etc. Must meet a minimum requirement to be certified. Best Workplace for Commuters Awards Winner Conservation and recycling programs ranging from water, paper, toner, industrial waste, batteries, organic waste (where supported by local community) ( About communicating our goals : Our approach to date has been to focus on setting internal goals and targets, and then to communicate our programs and share what we learn)
You can to the links listed here to find out more information on how Oracle Solutions enable organizations to be greener as well as details on what Oracle is doing itself as a company to reduce its impact on the environment. At Oracleâs OpenWorld event in a few weeks we will have a dedicated âGreen Roomâ in the Yerba Buena auditorium next to the Moscone convention center. This program will feature some great speakers including thought-leaders, customers, partners, and Oracle executives. Our goal is to provide a forum for the IT world and the sustainability world to come together to collectively address the challenge that lies ahead of us. Also feel free to contact me at rich.kroes@oracle.com with any questions. This is going to have to be a very collaborative effort to address this challenge that we face so I look forward to working with many of you as we move forward on this journey. Thank you for joining us for this iSeminar on Empowering the Green Enterprise.
Topic of the Day Market shift with momentum Itâs About Running a Business Cost savings Meeting rising governmental regulation Marketing opportunities What it Means for Oracle Customers look to Oracle to help manage, execute, and measure their green Supply Chain initiatives Competitive differentiator Marketing opportunity