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by Beth Stackpole, Contributing Editor Posted on Monday, October 01, 2007 11:26:23 AM   | Abstract: | Pending regulations on greenhouse gases will likely require metals manufacturers to track and report on emissions, as well as execute credit transactions. Here's how IT systems are evolving to meet the need. |
A consolidated view of financials. Visibility into order demand throughout the supply chain. Accurate, up-to-date data on inventory levels and placement. These are all business metrics that metals manufacturers now commonly track, thanks, in part, to advances in enterprise software. Well, get ready to add a new metric to the mix. Widespread concerns about greenhouse gases and global warming have led to myriad regulations regarding carbon emissions, once the domain of scientists and environmental crusaders. As a result, metals companies - and other manufacturers - will soon be required to track and report on their carbon emissions. Europe has been the most aggressive in requiring businesses to track their carbon output, but the United States took its first significant steps this summer with the Low Carbon Economy Act of 2007, introduced by Sens. Jeff Bingaman, D-NM, and Arlen Specter, R-PA. The bill proposes limits on carbon emissions and sets the stage for a cap-and-trade system, modeled after Europe's, where companies can buy and sell carbon emissions credits on the open market. Although still a long way from ratification, the bill would likely mandate that companies track and report on their carbon emissions as well as execute credit transactions with other manufacturers. The problem is that most U.S. steel and metals makers don't have a clear picture of their carbon output. Nevertheless, most companies are committing significant portions of their IT budgets to environmental compliance, according to a recent survey by AMR Research Inc. In fact, nearly 54% percent of companies surveyed worldwide said they have already committed or plan in the next 12 months to commit IT dollars to environmental initiatives, specifically those relating to reducing energy use and emissions. [Click to continue] |