For the purpose of identifying mitigating factors and actions for Contex Limited regards the impact of new carbon pricing mechanism on the business, this report will implement a series of analyzing activities that are probably involved with calculation, estimation and giving recommendations. In addition, there are 6 different activities will be operated and each of them will be discussed and explained in depth. For activity 1-3, three scopes, which are the main source of greenhouse gas for Contex Limited and related data, will be quantified and calculated with reference to The National Greenhouse and Energy Reporting (Measurement) Technical Guidelines, 2011. Activity 4 will focus on the monitoring mechanism and its relation with accounting professions. Activity 5 will be discussing the financial impact of carbon pricing on Contex Limited and Activity 6 will be recommendations given under the current circumstances and future opportunities will also be identified.
As refer to The National Greenhouse and Energy Reporting (Measurement) Technical Guidelines, 2011, 4 different methods are established which aim to measure and calculate amount of emissions released, and each of them will be demonstrated as follows: Method 1: the National Greenhouse Accounts default method
Method 1 is likely to be most useful for emission sources where the source is relatively homogenous, such as from the combustion of standard liquid fossil fuels, where the emissions resulting from combustion will be very similar across most facilities. In other words, Method 1 is focus on the source of emission rather than the facility, which generate those emissions, and it is adopted where the single or similar source of emission is emerged.
Method 2: a facility-specific method using industry sampling and Australian or international standards listed in the Determination or equivalent for analysis of fuels and raw materials to provide more accurate estimates of emissions at facility level Method 2, which is conversely with Method 1, focus on the facility that produce the emission. In specific, the source of emission would be in varied forms.
Method 3: a facility-specific method using Australian or international standards listed in the Determination or equivalent standards for both sampling and analysis of fuels and raw materials Method 3 is similar to Method 2, however it requires the Reporters to comply with Australian or international documentary standards for sampling (of fuels or raw materials) or equivalent as well as documentary standards for the analysis of fuels. (The National Greenhouse and Energy Reporting (Measurement) Technical Guidelines, 2011)
Method 4: direct monitoring of emission systems, either on a continuous or periodic basis Method 4 is different from any of the approach mentioned above in a way that it focuses on either continuous or periodic monitoring of the emission system. In addition, the foundation of this approach is base on various activities within an organization. From The National Greenhouse and Energy Reporting (Measurement) Technical Guidelines 2011, ‘this approach can provide a higher level of accuracy in certain circumstances, depending on the type of emission process although it is more data intensive than other approaches.’ However, it can be argued that Method 1 is most suitable for Contex since in this case the scope 1 involved with similarity in source of greenhouse emission like from combustion liquid fossil fuels, and it satisfies the underlying requirement for Method 1.
Activity 2 will discuss the scope 2 emissions, which are from activities that generate electricity, heating, cooling or steam that is consumed by facility. In addition, the purchased electricity and the calculation involved measuring the emissions will also stated. According to NGER, 2011, the formula for electricity directly purchased from the main electricity grid in a State or Territory...