Interested in running a pilot in your business, not-for-profit, or government organization?
Climate change is one of the world’s most urgent issues, and bold leadership is needed.
While any organization can benefit from E-liability, organizations that make good pilots of E-liability accounting include:
– Those with significant upstream and direct emissions for a given product or service.
– Those with a potential competitive-advantage in GHG emissions from their own production and/or supply-chain.
– Those with GHG-sensitive customers and investors.
What does an E-liability pilot look like?
The goal of an E-liability pilot is to help an organization build a first iteration of a real-time, management-information system on the carbon content of its inputs, processes, and outputs via a bottom-up process.
Pilots should ideally compare more than one product or service, and consider how to engage and align relevant tiers of suppliers to get buy-in. Pilots are driven by an internal project team with the pilot organization, with support from the E-liability Institute. Pilots take roughly 6 months from initial scoping to completion, though this can be shorter depending on data availability.
The next stage in the pilot involves gathering emissions data. This involves mapping production processes flows to identify major emissions sources, engaging with the supply chain, and collecting internal and supply chain emissions data.
Once you have emissions data for key inputs, raw materials, and activities, the E-liability approach enables pilot organizations to calculate emissions at the level of individual products or services using an activity-based costing methodology, commonly applied to financial accounting. This requires inputting data into a cost-accounting software tool, analyzing the results, and checking for accuracy and completeness.
The initial pilot will provide organizations with a clearer understanding of the emissions of the relevant product or service, and how they could be reduced. The findings can then be socialized internally and externally, including with customers, and pilot organizations can continue to iterate and build on the work and data from the initial pilot.
If you’re interested in piloting E-liability within your organization, please contact us.
How does the E-liability Institute support the pilot?
We provide pro-bono advice to organizations interested in deploying the E-liability principles in pilot studies.
We then disseminate the results of these studies to encourage other organizations and regulators to embrace E-liability principles.
We work closely with all of our pilots throughout every stage of the process, from scoping to final presentation. You can find materials we use to kick-start our pilot projects below.
The playbook provides a step-by-step framework for organizations on how to pilot and implement the E-liability method for accurately tracking emissions through complex supply chains. It sets out key processes, considerations, and actions to successfully implement the E-liability approach, as well as supporting documents and FAQ.
Pilot Feasibility Charter
This charter helps us to jointly determine the focus, scope, and feasibility of an E-liability pilot in your organization.
Sample Emissions Worksheet
The Sample Emissions Worksheet is a simple annotated sample activity-based costing spreadsheet. This is intended to be a basic template to begin the process of collating and analyzing external and internal emissions data according to activity-based cost accounting standards.
Pilot Completion Report Template
The Institute seeks to capture the learnings and insights from pilots via a post-pilot report. The purpose of this report is to summarize the objectives, design, processes, and insights from the completed pilot project.
FAQ on the E-liability Approach
This FAQ provides more detail on the E-liability approach and how it operates, to support implementation. It sets out FAQ and suggested approaches on accounting treatment.