We proudly present: our Carbon Forecasting Model
Using a driver-based approach to forecast different scenarios and policy impacts
At Deloitte, we believe we have a responsibility to help society transition to a more sustainable future. We do this by guiding our clients, providing pro-bono support through our Deloitte Impact Foundation, and... by becoming more sustainable in our own operations. Read how we’ve created a Carbon Forecasting model using Anaplan to help us measure our future emissions.
WorldClimate
WorldClimate is our global strategy to make more responsible choices within our organisation and beyond. Globally, we focus on becoming net zero by 2030 for our own operations (Deloitte Netherlands aims to be carbon neutral for its own operations by 2025), embedding sustainability in our processes, empowering individuals and engaging ecosystems. In order to achieve our carbon neutrality goal, we need to significantly reduce our travel footprint resulting from air travel and our fleet, as well as submissions in our supply chain. This is why, last year, we introduced new air travel and lease car policies based on multiple analyses and assessments.
Our Carbon Forecasting Model, explained
To keep track of and monitor our emissions, we have developed Carbon Forecasting Model using Anaplan – a cloud based planning solution. The Carbon Forecasting Model uses a driver-based approach (e.g. kWh of electricity and kilometres flown) to forecast different scenarios and policy initiative impacts. The drivers are modelled with different conversion factors to get to emission levels – e.g. business-class flying does have a larger impact than economy-class. Anaplan enables integration between our carbon forecasting model and strategic workforce -and financial planning models, which facilitate cohesive decision-making at board-level.
Model capabilities:
- Processing data and generating a baseline forecast of emissions based on historical trends (with the option to exclude non-relevant periods like the COVID-19 period);
- Examine different scenarios based on external impacts, e.g. ‘working from home’ vs. ‘new-normal’ or the introduction of hydrogen planes;
- Delivering insights on the effects of emission reduction policy decision options and historical decisions (e.g. reducing air travel will increase rail travel);
- Ongoing monitoring by comparing plans to actuals in relation to targets
Watch the video below in which our COO Oscar Snijders explains what the tool is and what it can do.
How the team delivered
Leveraging both the sustainability- and technological knowledge and experience of our Finance & Performance consultants, we were able to quickly develop a Minimal Viable Product that met our business- and reporting requirements. These are four critical success factor that we have discovered:
- Develop a strong narrative: Demonstrate how the organisation is steering on KPIs that matter. Avoid a complex, mechanical and compliance (only)-driven approach. Ensure that the approach is ‘purpose-led’ and that people, planet, prosperity and regulatory requirements are linked with sustainability strategies.
- Engage your people: Leverage the energy and ambition in the organisation. Sustainability is on the rise and people seek to contribute. Early engagement with your people across the organisation achieves buy-in and leverages the knowledge inside the organisation.
- Accelerate execution: Develop a Minimum Viable Product (MVP) to quickly engage business and policy owners and test functionality and value. Use this as a template to roll out a full suite of KPIs to achieve the decarbonisation strategy.
- Connect stakeholders & deal with data: Develop a focused, feasible and broadly supported plan to achieve the reporting, sustainability and procurement objectives within broader transformation programmes, ensuring sufficient capacity is available.
Connect with us
Please reach out to us to learn how we can build a Carbon Forecasting Model for your organization.
