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Business Case For Carbon Management Software

Date: 04 August 2009

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Executive Summary

During the last 5 years an increasing number of firms have launched a project to measure their enterprise carbon footprint. Until now, dispersed problem ownership and a lack of urgency damped down demand for a technology-enabled carbon footprint process. But proximate CO2 compliance deadlines will soon put CFOs under pressure to invest in software for carbon data management. Managers in sustainability, corporate responsibility and environmental roles who are keen to implement carbon software need to model the future costs of carbon compliance, assess financial returns and articulate the added value benefits to execs of a technology-enabled carbon management process. The Verdantix analysis suggests a $5 billion revenue chemicals firm will achieve a 145 per cent return on investment over 3 years, with a 0.9 year payback period. Additional management benefits include reduced fire-fighting, spotting energy cost savings, better management control and enhanced carbon communications.

TABLE OF CONTENTS

WHAT WILL TRIGGER FIRMS TO INVEST IN CARBON SOFTWARE?
Dispersed Ownership And A Lack Of Urgency Damp Demand
Proximate CO2 Compliance Deadlines Will Drive Spending Needs
CFOs Need To Get In The Driving Seat On Carbon Management

CUSTOMERS NEED TO LOOK BEYOND FINANCIAL RETURNS
Model The Future Cost Of Carbon
Assess The Financial Returns From Carbon Management Software
Articulate The Benefits Of Carbon Software For Executives

THE CUSTOMER JOURNEY WILL EXPAND INTO SUSTAINABILITY

TABLE OF FIGURES

Figure 1. By 2012 Firms Will Be Hit By A Wave Of Climate Change Regulations
Figure 2. Carbon Data Management Cost Drivers For A $5 Billion Chemicals Firm
Figure 3. Linear Cost Increases For Carbon Data Management Are Unrealistic
Figure 4. Carbon Data Management Costs Will Be Driven By Process Change
Figure 5. Carbon Management Software Significantly Reduces Change Costs
Figure 6. Costs To Implement Carbon Management Software
Figure 7. Financial Returns From Carbon Management Software