In business planning, a scenario is a set of assumptions used to explore potential outcomes by adjusting key variables like costs, revenues, or market trends. It helps assess risks and prepare strategies for different future conditions.
For Emissions Accounting the approach is similar. Out of the box CorEST has a number of best practice scenarios for setting long-term emissions reduction targets, i.e. the outcomes, as well medium and short-term scenarios for developing strategies to steering the organisation to the reduction targets.
Scenarios
Out of the box CorEST best practices have the following roles scenarios:
- Target Scenario
- Projections Scenario
- Initiatives Scenario
- Actuals Scenario
Additional scenarios can be added, and IBM Planning Analytics includes features for ‘sand boxing’ to allow users to develop and test scenarios before publishing them to a wider audience. You will also see a number of other scenarios in scenario lists. These are used for manging and delivery CorEST tables and graphs. Please ignore these.
Target Scenario
This scenario is the long-term reductions destination that your organisation is aiming to achieve.
A target is a percentage reduction on Actual emission from a start year. It can have multiple legs, base year to 2030 and 2030 to 2050 for example. Target can be for selective on what GHGP scope(s) and or business unit(s).
This scenario(s) is defined in the Setup Tab in the CorEST Admin Book during the execution of the Setup Plan. This Scenario is plotted on the Emission Projections Graph.
Projections Scenario
This scenario is the medium-term budget for emissions reductions that your organisation is aiming to achieve.
The Projections Scenario is requested year-on-year change for emissions activities for Business Units. We see this Scenario as being defined by organisational leadership as part of an annual planning cycle for multiple years ahead. It is a top-down figure that Business Units are expected to achieve.
For example, your organisation sets a 5% year-on-year reduction in all emissions across all business units over the next 3 years. It can be selective on what emission activities and what business units, as well as set fix as well as percentage changes. Best practice CorEST has the Projections Scenario reviewed again the Actuals as part of the Quarterly Planning Plan and Annual Planning Plan.
This scenario(s) is defined in the Planning Tab in the CorEST Book during the execution of the Annual Planning Plan. This Scenario(s) is plotted on the Emission Projections Graph.
Initiatives Scenario
This scenario is the short-term plan for emissions reductions that your organisation is aiming to achieve.
The Initiatives Scenario is short-term planned changes in business activity by a Business Units to achieve the medium-term budget set by the Projections Scenario. It is the bottom-up response by a Business Unit to achieve the emissions budget.
For example, your organisation sets a 5% year-on-year reduction in all emissions across all business units over the next 3 years. The business unit identifies implementing an employee commute programme will deliver first year reductions while initiatives second- and third-year initiatives for switching to local manufacturers to reduce freight delivered those reductions.
It can be selective on what emission activities and what business units, as well as set fix as well as percentage changes. Best practice CorEST has Initiatives set as part of the Annual Planning Plan and review against actuals during the Quarterly Plan.
This Scenario is defined in the Initiatives Tab in the CorEST Book. This Scenario is plotted on the Emission Projections Graph.
Actuals Scenario
While the not a scenario in the truest sense the Actuals Scenario contains all historic emission data from the first -year actual data is entered in CorEST to the current year.
This data plays a critical role in setting the starting points for other scenarios as well as tracking their progress to their end points. The comparison is part of Quarterly Planning and Annual Planning Plans.
This actual emission data that populates the Actual Scenario is entered in the Actuals Tab in the CorEST Book as part of the Monthly Plan. This Scenario is plotted on the Emission Projections Graph.
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