Measuring and Reporting Energy and GHG Emissions Savings
At Novartis, we report on identified energy improvement opportunities at all sites, not just commercial buildings. We use a standardized approach to ensure consistency of Energy Project Accounting and to facilitate comparison across internal and external organizations.
Four savings indicators on energy use, energy cost and GHG emissions and the investments in energy/GHG improvements (energy investments) provide the necessary information to be collected in this accounting process. They represent the minimum information being collected for Energy Project Accounting. They may be broken down into different types of energy sources or GHG emission categories. We evaluate all figures at the time of reporting as accurately as possible. The four indicators are defined as follows:
- Annual Energy Savings: Amount of energy use reduction (in GJ) for each individual project, consisting of annual savings of electricity, steam, natural gas and/or other energy types. Energy savings are additive if one project allows savings on more than one type. Increased use of any type of energy related to the project (e.g. for co-generation) is to be subtracted from the savings.
- Annual GHG Emissions Savings: Reduction of GHG emissions (in tCO2e), for each individual project, consisting of annual savings of all types of GHG emissions (Scope 1, Scope 2), determined with specified GHG emission factors.
- Annual Cost Savings from Energy projects: Cost savings (in USD or in local currency), calculated for each individual project using energy prices or carbon costs as defined in the site specific parameters section, for all energy sources and all GHG emission categories involved.
- Annual Energy Investments: Capital expenditure (in USD or in local currency) for the energy project or the energy/GHG saving part of a project at the site. If only part of the project provides the energy/GHG saving, we estimate the respective proportion of the investment. In the case the investment for the more energy efficient/GHG emission reduced alternative is lower, than for the business-as-usual alternative, i.e. such difference is a negative amount, we report this negative amount for this project.
Apart from these four main indicators, we also include where appropriate economic indicators in the list of energy projects or other saving information and commentary. These could include:
- Payback information (simple payback or Net Present Value)
- Total project savings, including other savings than on energy and carbon costs
- Total investment for the project, including other investments than for energy improvements / GHG emission reduction
- Savings / environmental improvements on other aspects (e.g. reduction of waste, water, raw materials, packaging)
- Commentary and other information, where appropriate and meaningful
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