Reference no: EM132373204 , Length: word count : 350
Answer the following Questions :
4. Define your company's financial metrics for project selection (e.g. IRR, NPV)
5. Select and justify a portfolio of 'no regrets' projects.
6. Present the graph of the emission reductions your portfolio of 'no regrets' projects would deliver from the compnay's BAU scenario that you completed in Milestone 1 (extracted from the EECO tool).
Assessment Task : Corporate Carbon Strategy
This assignment contributes towards the following learning outcomes:
1. acquire an understanding of climate change mitigation with respect to political, environmental, regulatory and economic impacts on business in the Australian and global context
2. acquire a working knowledge of the main market and regulatory mechanisms for mitigating GHG emissions
3. evaluate the supply and demand side aspects of industries that are the principal GHG emitters and their capacity to mitigate such emissions
4. assess the likely strategies that can be employed by businesses to comply with, and manage, carbon pricing obligations at least cost
5. acquire practical research skills including the ability to work in groups of diverse cultural and social backgrounds and investigate academic, institutional and public media sources
6. demonstrate the ability to evaluate, formulate, and articulate justifiable business strategies and tactics to address the impacts of market and regulatory changes arising from climate change in a summative assessment.
You are required to form a team of four people. These teams will be formed in your tutorial classes.
You are required to select one fictional company from the following shortlist and develop an emission reduction strategy for this company over a ten-year period.
? Locale
? Real Estate Company: With ever growing presence, Locale is a property group based in Australia with passion in the pursuit of innovation and sustainability to create enduring value. They have a reputation for providing unmatched product and service quality through their large portfolio of retail town centres, offices, residential sites and retirement living.
? AutoExpress
? Toll road developer and operator: AutoExpress is one of the largest toll-road operators in Australia dedicated to the financing, design, construction, maintenance and operation of Australia’s toll roads and tunnels. It aims to provide efficient and safe road network that enhances Australia’s quality of life.
? Telnet
? Telecommunications Company: Telnet is a leading provider of telecommunications networks, mobile devices, fixed line services, internet access and IT solutions. It strives to create a better future for Australia by keeping people connected in more ways than one.
Your team’s main aims will be to understand your company’s carbon footprint, the options for the company to reduce carbon emissions through investment in carbon abatement projects, and financial implications of these projects under a variety of scenarios. You will then use this understanding, and additional research, to develop and justify a carbon management strategy for your business.
You will be provided with the Energy and Emissions Cost Optimiser (EECO) tool (in Excel) which will support your analysis and presentation of results.
Milestone 1: Measuring and forecasting carbon emissions
Milestone 1 looks at how much greenhouse gas (GHG) your company is likely to emit under its forecasted business plan. This is also known as the Business As Usual (BAU) scenario. A BAU scenario assumes that the company would not be taking any additional action to reduce its carbon footprint beyond its current efforts. You must identify the linkages between the business activities of your chosen company and its GHG emissions and use key points of information to project your company’s emissions for a ten year period - 2020 to 2029.
To do this you will draw on provided information about your company’s historical energy and emissions data and current business strategies and use this information to develop robust assumptions about your company’s financial, energy and emission growth rates.
You will need to:
? understand both the financial and GHG emissions aspects of your company from information provided;
? forecast your company’s BAU energy use and emissions at a facility level;
? aggregate this information to provide a total BAU of energy use and emissions for your chosen company; and
? articulate and justify the assumptions you have made which inform your projections. Emissions under your BAU scenario provide the basic data needed for Milestone 2 and the final report. All your calculations should be done in the Company Profile tab of the EECO tool provided.
Assessment
You will be required to prepare a summary of your company’s BAU forecast.
Milestone 2: Identifying and assessing mitigation options
Milestone 2 looks at investing in various carbon abatement projects as part of a corporate Carbon Strategy. You are required to analyse a minimum of two projects per decarbonisation pillar1 (i.e. minimum of 8 in total, including similar projects undertaken in different facilities) and present a portfolio of ‘no regrets’ projects that your selected company can implement to reduce its carbon footprint.
You will be provided with information about common mitigation options. You will need to research further information from publicly available resources to complete your analysis.
This Milestone has two stages.
In Stage One you will need to:
1. Analyse a minimum of two mitigation project in EACH decarbonisation pillar (i.e. minimum of 8 in total, including similar projects undertaken in different facilities ).
2. Use the EECO tool to undertake a high level financial cost analysis leading to NPV, IRR, payback period (if applicable) and annualised cost expressed as $ per tonne of CO2e emissions abated for your identified projects.
Teams can choose to analyse a ‘DIY’ option (which requires greater independent research but allows exploration of an area of interest), with permission from your tutor.
In Stage Two you will need to:
1. Use the EECO tool to define and justify the uncertainty of key parameters - policy settings, energy costs, project costs, project delivery (energy savings) and projected emissions. For the parameters ‘project costs’ and ‘project delivery’ you will need to identify the key
uncertainties in your individual projects and take these into account when deciding on the overall level of uncertainty.
2. Identify best and worst case scenarios.
3. Assess the impact of your best and worst case scenarios on your identified projects.
4. Define your company’s financial metrics for project selection (e.g. IRR, NPV).
5. Select and justify a portfolio of ‘no regrets’ projects.
6. Present the graph of the emission reductions your portfolio of ‘no regrets’ projects would deliver from the company’s BAU scenario that you completed in Milestone 1 (extracted from the EECO tool).
Assessment
You are required to prepare a summary of your analysis and your portfolio of ‘no regrets’ projects for your company.
Final Report: Carbon management strategy and recommended target
Using the results from Milestones 1 and 2, you are required to develop a carbon management strategy for your company for the 10 year period 2020 - 2029.
Your report should be structured to address the following three sections:
? Measure and forecast carbon emissions: Understand the greenhouse gas (GHG) emissions arising from a business operation under the business-as-usual (BAU) scenario and assess the impact of a carbon price on your company’s profit.
? Identify and assess mitigation options, and identify a ‘no-regrets’ portfolio of projects: Identify opportunities to mitigate (reduce) GHG emissions across the ‘four pillars’ and assess the impact of different policy, cost, project delivery and forecasted emissions scenarios on
the financial viability of your projects. Identify and analyse a ‘no-regrets’ portfolio of mitigation projects.
? Develop a carbon management strategy: Develop a 10-year carbon strategy for your company including an emissions reduction target, a roadmap of projects and analysis of potential risks and opportunities for your company from adopting this strategy.
Word limit: 3000 words excluding references, figures and tables.
Attachment:- TELNET Assignment.rar