The challenge of adding value to an array of source carbon models
As per Article 1, once you receive energy and electricity consumption data back from your business units, the onerous task will be on you to deliver some value-adding analysis.
Certain facilities or assets will report their data in different units, while some will lack credible and reliable data. The level of reporting detail will vary greatly across your business units. This will be reflected by the material contribution certain facilities or business units make to your Company’s overall energy consumption or carbon emissions.
The benefits of using a best-practice carbon finance model
Similar to a vanilla financial model, a carbon finance model will deliver a seamless reporting and analytical solution for your carbon needs. The model will be able to flex differing units of measure for source data. Your Company will be able to present a detailed report by business unit, which can be drilled down on to view individual fuel consumption. The carbon model will present summary analysis to identify the key drivers of energy consumption/production and emissions by business unit and facility. The following screen shots demonstrate this modelling capability.
The carbon finance model will also present your Company with graphical and dashboard summaries to succinctly illustrate drivers behind energy consumption or a potential carbon liability.
The solution to your carbon analytical challenges
Implementing a disciplined best-practice modelling regime into your Company’s energy and carbon reporting, will enable report users to undertake high-level analysis and commentary, scenario/sensitivity analysis and deliver ad-hoc reports to stakeholders. This will be particularly so in the future, when your Company may need to deliver a hypothetical carbon liability in its financial statements, if there will be a carbon tax or cap and trade market-based system.