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Energy Efficiency – Realising the potential

A set of teaching resources that educators can use to develop two-hour Interactive Seminars on energy efficiency for accountants and business managers

9 May, 2012

Referencing this material

> This material has been developed by UTS Business School and is supported by the NSW Government as part of the Energy Efficiency Training Program.

> If using this material please acknowledge as follows:– Benn, S., Brown, D., Brown, P., Crittenden, P., and Krithinakis, A.,

2012. Leadership & Change for Energy Efficiency in Accounting & Management – Interactive Seminar Training Materials. The project is supported by the NSW Government as part of the Energy Efficiency Training Program.

Using this material

> This slide set and notes are intended to be used by trainers and educators as a resource to develop teaching materials on energy efficiency.

> Examples of the way in which these materials have been adapted for particular target audiences are available from www.business.uts.edu.au/energyefficiency

Disclaimer

> This presentation presents the views of the authors, and not the views of UTS, or any other party.

> This presentation is for educational purposes only and does not contain specific or general advice.

> Please seek appropriate advice before making any financial decisions.

> Reference list is provided at the end of the presentation

Contents of the slide pack (1 of 2)

1. About the project: Leadership & Change for Energy Efficiency in Accounting & Management

2. Introduction to the interactive seminars

3. Energy Efficiency – Business risks & opportunities

4. How leading organisations are responding to energy efficiency – Business risks and opportunities

5. Barriers to energy efficiency improvement

Contents of the slide pack (2 of 2)

6. Energy efficiency – actions accountants & business managers can take

7. Insights from ‘The Business Case and Beyond’ Project

8. Questions to support interactive group work

9. Next steps

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1. About the project: Leadership & Change for Energy Efficiency in Accounting & Management

‘Leadership & Change for Energy Efficiency in Accounting & Management’ project funding

> Office of Environment and Heritage NSW funding

> The ‘Energy Efficiency Training Program’ aims to support the development and delivery of higher education courses that enhance energy efficiency knowledge and practice

> All project materials are publicly available

Key Project Partners

> UTS Business School> Ernst & Young> Chartered Institute of Management Accountants

(CIMA)> Westpac> TAFE NSW, Sydney Institute

Project Overview

Training Needs Analysis – Key Themes

> Organisational response to energy efficiency needs to be cross-disciplinary– Accountant as business partner

> Soft skills as well as analytical/ technical skills are important– Communication– Influencing others– Partnering– Change management– Team building– Problem solving

Training Needs Analysis – Key Themes

> The rationale for action/ importance of Energy Efficiency is a fundamental starting point

> Application/ approach will vary across:– Public and private sector– Type of industry sector– Firm strategy– Firm culture

Training Needs Analysis - Skills

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2. Introduction to the interactive seminar

Interactive Seminar - Aim

> To explore the role that accountants and business managers play in managing risk and delivering opportunities through energy efficiency in business

Interactive Seminar - Outcomes

> By the end of the seminar you will:– Learn from others about energy efficiency and the

role that accountants & business managers can play

– Share your own experience – Identify additional actions that you could take to

drive energy efficiency improvement in your organisation

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3. Energy Efficiency – Business Risks & Opportunities

What is Energy Efficiency?

> Energy efficiency primarily refers to end-use efficiency

> It involves delivering equal or greater levels of “energy services” with less energy supply

> Energy services include cooling, heating, lighting, driving motors, operating equipment and appliances

Dunstan et al. 2011, p.10

Global sources and use of energy

19http://www.newscientist.com/data/images/ns/sreport_graphic/energy-fuels-mg18725151500.jpg

Electricity generation by fuel type in Australia

Source: Geoscience Australia p. 34

The boundary

The electricity supply chain

Adapted from: National Academy of Sciences 2008, p. 8

2 units of light energy delivered

100 units of energy input

62 units lost2 units lost

34 units lost

The boundary

Energy efficiency example

End-use energy efficiency delivers benefits across the

electricity supply chain

Adapted from: National Academy of Sciences 2008, p. 8

Four key business risks that energy efficiency can address

> Cost containment> Carbon pricing> Compliance with legislation> Licence to operate

Business risk: Cost containment

> Electricity prices are rising> Oil price highly variable

Energy efficiency is effective in reducing the business impact of rising and variable energy costs

Source: Geoscience Australia 2010, p. 18

Source: Geoscience Australia 2010, p. 28

Business Risk: Carbon pricing

> From July 2012 - carbon price of

$23 a tonne, 2.5% increase p.a> Fixed for 3 years then market-based> Direct liability = Direct costs> Increased costs in the supply chain

= flow through impact on your business

Energy efficiency is the most cost- effective way of reducing the impact of a price on carbon

Business Risk: Compliance with legislation

> Some relevant current legislation:– National Greenhouse and Energy Reporting Act 2007 – Energy Efficiency Opportunities Act 2006– Renewable Energy (Electricity) Act 2000– Building Energy Efficiency Disclosure Act 2010 – Energy and Utilities Administration Act 1987– NSW Water and Energy Savings Action Plans– Competition and Consumer Act 2010 (formerly Trade

Practices Act 1974)– And other accounting, reporting, and auditing

standards

Business Risk: Compliance with legislation (con’t)

> Exposure draft ISAE 3410 Assurance Engagements on Greenhouse Gas Statements

> Environmental Claims in Advertising and Marketing Code

> ISO and other quality assurance guidelines

Legislative compliance associated with energy efficiency and greenhouse related

issues is increasingly complex

Business Risk: Licence to Operate

Some stakeholder perspectives:> Investors – Can energy efficiency provide a proxy

indicator of good management?> Community – Why isn’t this organisation acting on

cost effective opportunities to reduce greenhouse gas emissions?

> Regulators – Perceived market failures justify intervention

Organisational stakeholders are increasingly aware that energy efficiency has important

business, environmental and social benefits.

Other business drivers and opportunities

> Your competitors are doing it!

See public reports from companies in the Energy Efficiency Opportunities program to compare your performance www.energyefficiencyopportunities.gov.au

See the Carbon Disclosure Project

www.cdproject.net

Ethical Reasons (Greenhouse Gas Emissions)

32Source: Garnaut Climate Change Review 2008, p. 88

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4. How leading organisations are responding

Example - The GPT Group

Source: Accessed 6/9/11 from www.gpt.com.au/content.aspx?urlkey=Energy

Example - The GPT Group (con’t)

> Senior management support> Appropriate resourcing> Data measurement and reporting> Staff recruitment and training> Performance management system

The GPT Group have put the right systems in

place to deliver results.

Energy Efficiency is considered an opportunity to create a competitive advantage.

Source: http://eex.gov.au/energy-management/the-business-case-and-beyond/industry-case-studies/

Example - Linfox Australia

Source: Linfox Energy Efficiency Opportunities Public Report 2010, p. 17

Example - Linfox Australia

Source: Linfox Energy Efficiency Opportunities Public Report 2010, p. 17

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5. Barriers to energy efficiency improvement

Many cost effective energy efficiency projects are available ... But are not

being implemented … Why is this so?Source: McKinsey & Company, 2008.

Barriers to energy efficiency improvement in business

Dunstan et al. 2011, p.10

Example – Split incentives in the real estate sector

Source: WBCSD 2009, p. 12

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6. Energy efficiency – actions accountants and business managers can take

Energy Efficiency Fundamentals- Establish your energy base case

> Not just the level of energy> It is the expected level of energy, for an expected

level of activity> Expected Energy = Fixed Energy + Variable Energy * Activity

> How is this different from estimating ‘predetermined overhead rates’?– Units are different ($ and kilowatt-hours or Giga

Joules)– Energy complies with the laws of thermodynamics

(unlike people)

Establish your energy base case

> Estimation methods are similar to cost accounting:– Regression Analysis– Modelling/ simulation (like input/ output analysis)– Short term metering– Long term metering

> Engineering models and equipment are used, so work with a specialist– e.g. Consider the effect of weather on demand for energy

It is important to clearly identify organisational activities and boundaries

> Information ‘should’ link with existing accounting structures

> Base line review is likely to reveal opportunities, which will justify further expenditure as opportunities become known

Source: RET 2008

It is important to clearly identify organisational activities and boundaries (cont’d)

> We are familiar with the value chain approach, and the benefits of linking resources consumption with activities

> Figure of generic value chain (Porter, 1985) sourced from Cooremans (2011)

Energy Base case information

> Here are some examples of the type of information useful for identifying EE opportunities Source: RET 2008

Developing the business case for an energy efficiency project

> Clear identification of the costs and benefits– Translated into NPV, IRR, Payback etc– Opportunity cost

> Identifying direct costs and cost savings may rely on engineering analysis, as well as cost analysis– e.g. A process change effect on your base case

and on demand for labour > All costs and benefits should be included

– Information value, strategic value

For example

> A building in NT implemented a range of EE projectsTotal Annual Consumption for 04/05 in kWh: 1,605,138

Total Annual Consumption for 05/06 in kWh: 1,597,135

Naive Energy Saving in kWh: 8,003

> Linear regression was used to control for differences in weather (the base year had a cool summer)

Total Annual Consumption for 04/05 in kWh: 1,775,546

Total Annual Consumption for 05/06 in kWh: 1,597,135

Energy Saving in kWh: 178,411

Difference is a 10% saving vs a 0.5% saving in energy

Hints

> Start simply, and do something:

– Find out what is happening in your organisation

– Review electricity statements for different facilities

– Review energy supply contracts

Some suggested places to start

> Revisit your energy accounting system– http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/esmg/Pages/default.a

spx

> Set up a register and systems to identify and manage energy efficiency opportunities– http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/csm/Pages/default.as

px

> Obtain subsidised energy audits (for some NSW firms)– http://www.environment.nsw.gov.au/sustainbus/energyauditing.htm

> Visit our website– http://www.business.uts.edu.au/energyefficiency

Hints

> Organise data to match current reporting systems– e.g. batch vs process costing; KPIs

> Let people know what you are doing and make data transparent

Hints (cont.)

> Conduct an energy information audit: – Ensures your organisation captures new

knowledge

> Find champions in each major facility and department and let them loose with some decision making rights

Developing the business case for an energy efficiency project

> Improved product quality

> Increased reliability in production

> Improved temperature control

> Improved reputation

> Product quality> Greenhouse gas

reductions> Safety

Include all business costs and benefits to increase the chance of

success

Useful information for preparing the business case

> Costs are easier to identify than benefits– Labour, equipment, consultants etc

> To assist in the identification of benefits, we have provided a checklist:– The 6 key drivers of EE discussed in the beginning

of the presentation– a list of benefits identified in reviews of the

literature (Worrell et al 2003; Cooremans, 2011)• See additional slides at end of presentation

Building the Business Case – A new method for evaluating energy efficiency projects

> There are a number of problems with how some organisations evaluate energy efficiency projects– Exclusion of relevant cost and benefits

• Lack of education• Difficulty in assessing

– Not making the link between the project and the firm’s strategy (Cooremans 2011)

– Risk of project is not assessed/ presented well• Using firm-level hurdle rates (rather than risk adjusted)• Consider best vs worst case

– Using payback period as a key decision tool

What is wrong with payback and NPV?

Project Scenario: A B C D EInitial Investment $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 Life of project (years) 10 10 15 15 15 First year cash profit $ 25,000 $ 25,000 $ 25,000 $ 17,500 $ 17,500 Yearly growth rate for cash profit

0% 0% 0% 5.0% 5.0%Hurdle Rate 15% 8% 15% 15% 8%Payback Period (years) 4.00 4.00 4.00 5.20 5.20 Net Present Value (NPV) $ 25,469 $ 67,752 $ 46,184 $ 30,289 $ 101,037 Equivalent Annual Cashflow (EAC)

$ 5,075 $ 10,097 $ 7,898 $ 5,180 $ 11,804

Mutually Exclusive Projects with Unequal Lives

In many cases a choice will need to be made between projects that have differing lives.

The Equivalent Annual Cashflow method (EAC)Equivalent annual cashflow (EAC) is the calculation of an annuity value having the same term, rate of return and net present value as the project that it represents.

To determine the Equivalent Annual Cashflow (EAC) of a project:

1. Calculate the NPV of the project’s cashflows.2. Divide the NPV by the annuity factor relating to the time in years

and the relevant Discount Factor to determine an annual cashflow figure.

That is, the EAC of a project is calculated by dividing the NPV of the project by the annuity factor, relevant to the project life and the company’s cost of capital (refer to the calculation of the ‘PMT’, i.e. Payment, function using Excel).

Source: Pazmandy, G. and Brown, P. J. (Ed), 2008.

Illustrative Example - EACUsing two projects, Project A has a life of 2 years, and Project B with a life of 3 years. The company’s cost of capital is 10%. Cash flows are as follows:

Project A Project BInitial Cost -$4,800 -$8,200Annual After Tax Cash Inflows:

Year 1 +$3,000 +$3,500Year 2 +$3,000 +$3,500Year 3 +$0 +$3,500

Cost of Capital 10%

Solution to Illustrative Example - EAC:To select the most profitable project, they will need to be transformed to a uniform time period to enable the comparison to be effected.

Step 1 Calculate the Net Present Value of the Project Project A Project B

Project Net Present Value = +$406.61 +$503.98

The above NPVs are not comparable as Project A is for 2 years, whereas Project B has a 3 year life. To enable the comparison, the NPV has to be converted to an Equivalent ANNUAL amount.

Source: Pazmandy, G. and Brown, P. J. (Ed), 2008.

Illustrative Example – EAC (cont’d)

Step 2 Convert the Net Present Value to an Equivalent Annual Cashflow amount using the PMT (Payment) function in Excel or the formula

• Equivalent Annual Cashflow = NPV/ Annuity PV Factor• Project A has a useful life of 2 years

– The Annuity PV factor for 2 years is 1.7355– Therefore: 406.61 / 1.7355 = 234.29

• Project B has a useful life of 3 years.– The Annuity PV factor for 3 years is 2.4869– Therefore: 503.98 / 2.4869 = 202.66

Project AProject B

Equivalent Annual Cashflow = $234.29$202.66

Using the EAC method, Project A has the higher positive EAC and would be accepted in preference to Project B. Note that this is consistent with the decision made using the lowest common multiple time period method. Source: Pazmandy, G. and Brown, P. J. (Ed), 2008.

The Brown Marginal Abatement Cashflow Curve (BMACC)

> Extends the Marginal Abatement Cost Curves (MACC), such as the McKinsey MACC, which we have seen used in practice

> Different (better) to other MACCs because:– Uses Equivalent Annual Cashflow, not NPV or payback – Includes a risk distribution– Includes unique colour coding scheme– Includes other information

> Creative Commons licence

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Brown Marginal Abatement Cashflow Curve (BMACC)

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Source: Brown, P. J., Brown Marginal Abatement Cashflow Curve (BMACC), UTS Business School, URL: http://www.business.uts.edu.au/energyefficiency/project-material.html'

The Brown Marginal Abatement Cashflow Curve (BMACC) (cont.)

6 yr life

Controlling performance using budgets and variance analysis

Environmental and social performance can be controlled using standard Management Accounting technology such as budgets, in the same way as economic performance is controlled

Project evaluation budget: Economic, social and environmental impacts of possible projects are identified and considered during project evaluation. This involves doing a forecast and budget, and consideration of the strategic value of each project.

Formal budget: Once projects have been selected, a formal budget is prepared, this includes who is responsible for which tasks, the setting of targets and reward structures.

Project enacted: The project is enacted, and data is collected to allow management to track progress.

Variance analysis: At intervals (monthly, quarterly, yearly), the budget is compared to actual results using variance analysis. Variances are investigated and action taken to enhance performance.

Developing an energy budget using multiple regression

Example: Using multiple regression, Coles has identified that total energy usage is distributed between three main activities with the following activity drivers:

Therefore, the multiple regression model is: Total Electricity Usage (kWh) = 52,121 +

558 x Selling area (m2) + 852 x Cool with no doors (m2) +

922 x Frozen with doors (m2) +719,103 x No entrance air lock

kWh per Activity Activity Activity Driver

52,121 Fixed Usage -

558 Lighting Selling area (m2)

852 Refrigeration Volume Cool with no doors(m2)

922 Refrigeration Volume Frozen with doors (m2)

719,103 Air conditioning No entrance air lock

Adapted from RET 2008

Example (cont’d)

Coles wishes to assess the total electricity usage of store 2 using the following information:

Selling area (m2) = 3500Cool with no doors (m2) = 650Frozen with doors (m2) = 340No entrance air lock = False (0)

Calculate the total electricity usage for the Coles Gisborne branch.

Total Electricity Usage (kWh) = 52,121 + 558 x 3500 + 852 x 510 + 922 x 310 + 719,103 x 0 = 2,872,401 kWh

Therefore, if energy costs were expected to be 20c per kWh for the next year, the budget for store 2 would be: $545,092 (2,725,461*0.2)

Adapted from RET 2008

Source: RET 2010

Coles stores’ electricity consumption actual and predicted by regression

Variance Analysis using dollars

> Construct an energy budget model– Probably with some engineering assistance

> Apply well known variance analysis formulae

Energy Price Variance = Actual kWh*(Actual Price – Standard Price)

Energy Variance = Standard Price*( Actual kWh – Budgeted kWh)

> Standard price is your budgeted price

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7. Insights from ‘The Business Case and Beyond’ Project

Note: These slides on the project ‘The Business Case and Beyond’ have been adapted from a presentation first developed by Patrick Crittenden for the Energy Efficiency Opportunities Workshops in September 2011. The project was funded by the Australian Government, Department of Resources, Energy and Tourism.

Case studies and other material on the ‘The Business Case and Beyond’ project are available at www.eex.gov.au/energy-management/the-business-case-and-

beyond/.

‘The Business Case and Beyond’ project

Companies involved:

> Australia Post> Centennial Coal Co.> Downer EDI Mining> Foster’s Group> Linfox> National Australia Bank> New Hope Corporation> Newmont Asia Pacific

> Rio Tinto Iron Ore> Ron Finemore

Transport> Simplot Australia> Spotless Group> Sydney Water> The GPT Group> Woolworths

Adapted from: www.eex.gov.au/energy-management/the-business-case-and-beyond/

The question…

What do you do that helps get support and resources for energy efficiency projects?

> Piggyback on whatever is ‘hot’ in the business right now

> Solve an existing problem through your ‘energy efficiency project’

> Use compliance requirements to drive change

1. Link your project to business priorities

Adapted from: www.eex.gov.au/energy-management/the-business-case-and-beyond/

The GPT Group:530 Collins St Melbourne Upgrade

Source: http://eex.gov.au/case-study/the-gpt-group-energy-performance-contracting-for-cogeneration-and-energy-efficiency-initiatives-at-530-collins-st-melbourne/

The GPT Group:530 Collins St Melbourne Upgrade (cont.)

Source: http://eex.gov.au/case-study/the-gpt-group-energy-performance-contracting-for-cogeneration-and-energy-efficiency-initiatives-at-530-collins-st-melbourne/

You can’t work in silos. Get the right people with different expertise involved.

It is the only way to build a credible business case for a project .

2. Involve the right people

Ron Finemore Transport:Modification of trailers on bulk tipper trucks

Benefits:> The same amount of product is transported with 74

fewer truck trips/annum, resulting in 72,000 avoided truck kilometres travelled

> 38,000 litres of fuel saved per annum> Shared financial benefits for the customer and Ron

Finemore Transport> Reduction in greenhouse gas emissions of 103

tonnes CO2e-/per annum> Benefits to the community through fewer truck

movements.Adapted from: http://eex.gov.au/case-study/ron-finemore-transport-increasing-payload-capacity-on-bulk-tipper-trucks/

> Use existing communication forums such as management meetings

> Use the right ‘business speak’

> Use clear and focused messages and questions

3. Communicate with decision makers early

Adapted from: www.eex.gov.au/energy-management/the-business-case-and-beyond/

4. Identify and manage project risks

Thinking about a project from a risk perspective helps you reduce the chance of unforeseen things happening…it demonstrates

that you have thoroughly thought the project through

5. Consider all business costs and benefits

> Cost reduction> Salvage value > Maintenance

benefits> Deferred

CAPEX> Productivity

> Product quality> Greenhouse

gas reductions> OH&S> Corporate

reputation

Source: Worrell, E., Laitner, J., Ruth, M., & Finman, H., 2003

> R&D tax breaks

> Government funding

> Energy performance contracting

> Internal energy funds

6. Identify funding options

See: http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/consider-a-range-of-funding-options/

Six key strategies

See: http://eex.gov.au/energy-management/the-business-case-and-beyond/developing-your-business-case-six-strategies/consider-a-range-of-funding-options/

Some unexpected answers

This is what we do to influence our company culture, systems and processes to improve the success-rate of future projects…

> Budget for monitoring & verification as part of the the business case proposal

> Leave room to deliver more than you promise

> Make sure the right people know what has been achieved and keep it on record

1. Monitor, verify and promote success

See: http://eex.gov.au/energy-management/the-business-case-and-beyond/influencing-company-culture-systems-and-processes/monitor-verify-and-promote-successful-projects/

> Business drivers, risks and opportunities change – keep managers informed

> Communicate information about what your competitors are doing (or not!)

> Use relevant graphs and statistics – for example, how well you are tracking towards targets

2. Regularly brief management

See: http://eex.gov.au/energy-management/the-business-case-and-beyond/influencing-company-culture-systems-and-processes/regularly-brief-management-on-energy-risks-and-opportunities/

Consider:> Combining smaller projects into one larger

project

> Establishing an internal fund for energy efficiency projects

> Adding questions on energy impacts to capital expenditure approval processes

3. Adapt project approval processes

See: http://eex.gov.au/energy-management/the-business-case-and-beyond/influencing-company-culture-systems-and-processes/streamline-and-adapt-project-approval-processes/

An important message…

Get the technical detail right

(engineering and accounting)

AND

Develop strategies to

“win friends and influence people”

(getting support and resources for anything

is a political process!)

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8. Questions to support interactive group work

The exercise is to be introduced by the facilitator/ MC.

Ask participants to spend 5-10 minutes in pairs or triads

discussing the questions.

Interactive exercise #1

> How is energy efficiency managed in your organisation?

> What are some of the challenges?

> What results have been achieved?

Interactive exercise #2

> What role do you play in progressing your company’s energy efficiency performance?

> How else could you contribute to progressing your company’s energy efficiency performance?

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9. Next steps

Where to find helpful information about energy efficiency

> All teaching resources are available fromwww.business.uts.edu.au/energyefficiency

> NSW and Federal Government provide training and education materials.– For example, see:

www.environment.nsw.gov.au/

www.energyefficiencyopportunities.gov.au

Further training options

> NSW and Federal Government provide training and education materials: http://www.environment.nsw.gov.au/sustainbus/greenskills/eneftraining.htm

> NSW government has also provided information on where to access training. See: https://www.training.nsw.gov.au/programs_services/funded_apl/ssp/gsbi.html

Where to from here

> Some suggested places to start:– Revisit your energy accounting system

http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/esmg/Pages/default.aspx

– Set up a register and systems to identify and manage energy efficiency opportunities

http://www.ret.gov.au/energy/efficiency/eeo/resmaterial/csm/Pages/default.aspx

– Obtain a subsidised energy audit (for some NSW firms)

http://www.environment.nsw.gov.au/sustainbus/energyauditing.htm

References

> Australia Industry Group 2011. Energy shock: confronting higher prices. > Bureau of Meteorology & CSIRO. 2010. State of the Climate.> Benn, S., Brown, P., Brown, D., Crittenden, P., and Krithinakis, A., 2011, Leadership & Change for Energy Efficiency in

Accounting & Management: Training Needs Analysis, Version 1.0, September 2011, Report for the Office of Environment and Heritage NSW.

> Brown, P. J. 2012, Brown Marginal Abatement Cashflow Curve (BMACC), UTS Business School, URL: http://www.business.uts.edu.au/energyefficiency/project-material.html

> CIMA. 2010. Accounting for climate change. How management accountants can help organisations mitigate and adapt to climate change, September 2011 http://www.cimaglobal.com/Documents/Thought_leadership_docs/cid_accounting_for_climate_change_feb10.pdf

> Cooremans, C, 2011, Make it strategic! Financial investment logic is not enough, Energy Efficiency, vol. 4, No. 4, pp. 473 – 92

> Crittenden, Patrick and Helen Lewis 2012, The Business Case and Beyond, report developed for the Australian Government Department of Resources, Energy and Tourism, accessed April 2012, < http://eex.gov.au/energy-management/the-business-case-and-beyond/ >.

> Crittenden, Patrick and Helen Lewis. 2011. ‘Accelerating the uptake of energy efficiency in industry - a case study of the Australian energy efficiency opportunities program’, pp. 795-805 in Energy efficiency first: The foundation of a low-carbon society, European Council for an Energy Efficient Economy 2011 Summer Study , Belambra Presqu'île de Giens, France.

> Department of Resources, Energy and Tourism (RET) 2008, Energy Savings Measurement Guide. Canberra.

References

> Dunstan, Chris, Katie Ross, and Nicole Ghiotto. 2011, Barriers to Demand Management: A Survey of Stakeholder Perceptions, research report prepared for the Australian Alliance to Save Energy by the Institute for Sustainable Futures, University of Technology, Sydney.

> Geoscience Australia 2010, Australian Energy Resource Assessment. Commonwealth of Australia.> Hoffman, A. 2010, Carbon Strategies: How leading companies are reducing their climate change footprint, The

University of Michigan Press. > International Energy Agency 2011, World Energy Outlook .> Linfox 2010, Energy Efficiency Opportunities Public Report 2010, viewed April 2012, www.linfox.com

/~/media/Documents/PDF/Linfox_EEO%20Act%20PR%202010%20Appendix%20small.ashx> McKinsey & Company 2008. An Australian Cost Curve for Greenhouse Gas Reduction, McKinsey & Company,

Melbourne.> Newell, Graeme, John MacFarlane, and Nils Kok 2011. Building Better Returns'. A study of the Financial Performance

of Green Office Buildings in Australia. Research by the University of Western Sydney Australia and the University of Maastricht Netherlands in conjunction with Jones Lange LaSalle and CBRE for the Australian Property Institute and the Property Funds Association of Australia.

> National Academy of Sciences 2008. What You Need to Know About Energy. viewed April 2012, < http://www.nap.edu/catalog.php?record_id=12204>.

> Pazmandy, G. and Brown, P. J. (Ed) 2008, Readings in Business Analysis, 2nd Edition, McGraw Hill Custom Publishing.

> Porter, M. E., 1985, Competitive advantage. New York: Free.

References

> Productivity Commission 2011, Performance Benchmarking of Australian Business Regulation: Planning, Zoning and Development Assessments, viewed April 2012, < http://www.pc.gov.au/projects/study/regulationbenchmarking/planning/report >

> Reinaud, Julia, Amelie Goldberg, and Vita Rozite 2012, Policy Pathway on Energy Management Programmes for Industry: Gaining Through Saving, OECD/IEA and IIP, Paris.

> Sustainability Victoria 2010, Energy Efficiency Best Practice Guide Lighting, viewed April 2012, < http://www.resourcesmart.vic.gov.au/documents/BP_Lighting_Manual.pdf>

> RET 2008, Energy Savings Measurement Guide. Australian Government Department of Resources, Energy & Tourism (RET), Canberra.

> RET. 2010. Energy Efficiency Opportunities: Representative Assessment Guide, Australian Government Department of Resources, Energy & Tourism (RET), Canberra.

> RET 2011. Continuing opportunities. Energy Efficiency Opportunities program - 2010 report. A look at results for the EEO program 2006 - 2010. Australian Government Department of Resources, Energy & Tourism (RET), Canberra.

> The GPT Group 2011, Sustainability Report 2011. Viewed September 2011, www.gpt.com.au/content.aspx?urlkey=Energy.

> Total Environment Centre 2010. Demand management and energy policy development: A case study of New South Wales.

> World Business Council for Sustainable Development (WBCSD) 2004, Facts and trends to 2050.> World Business Council for Sustainable Development (WBCSD) 2009, Transforming the Market: Energy Efficiency in

Buildings.> World Economic Forum 2010. Energy Vision Update 2010. Towards a more energy efficiency world.> Worrell, E., Laitner, J., Ruth, M., & Finman, H. 2003, Productivity benefits of industrial energy efficiency measures,

Energy, 28(11), 1081–1098.

Appendix

> This information may be printed and provided as a handout rather than presented.

Some sources of competitive advantage from EE: REDUCED RISKS (from Worrell et al 2003 and Cooremans, 2011)

> Reduced hazardous waste> Reduced dust emissions> Reduced CO, CO2, NOx, Sox emissions> Increased facility reliability> Reduced wear and tear on equipment /machinery> Decreased liability> Legal risks> Carbon & energy price risks> Disruption of energy supply> Commercial risk

Some sources of competitive advantage from EE: REDUCED COSTS (from Worrell et al 2003 and Cooremans, 2011)

> Use of waste fuels> Reduced product waste> Reduced waste water> Materials reduction> Increased product yield> Improved equipment performance> Shorter process cycle time> Reduced dust emissions> Reduced CO, CO2, NOx, SOx emissions> Reduced wear and tear on equipment, machinery

Some sources of competitive advantage from EE: REDUCED COSTS (from Worrell et al 2003 and Cooremans, 2011)

> Decreased liability> Reduced need for personal protective equipment> Improved lighting> Reduced turnover, absenteeism and health costs

(improved worker morale, reduced noise, improved air quality and temperature control)

> Reduced needs for engineering controls> Lowered cooling requirements> Reductions for labor requirements> Delaying or reducing capital expenditure> Additional space