Comparison Of Energy Transition Governance In Germany

Key stakeholders and rationale on how these strategies were likely to meet their needs

Dsicuss about the Comparison Of Energy Transition Governance In Germany.

Origin Energy headquartered in Sydney is recognised as a publicly listed company with its stock in ASX. The company was seen to be formed in February 2000, as a result of the demerger of the “Australian conglomerate and Boral Limited”. In 2001 and 2002, the business was seen to be acquired by Victorian electricity retailer licence from the distributors such as Powercor and CitiPower. The sustainability aspect of the company is a five principles model. The first principle is based on managing the economy sustainability aspects, social environment and performance data. The second principle is considered with adding and distributing value which has summarised the “economic value added” factors and connected the financial report in the annual report. The fourth and fifth principles believes on diversity and transparency which is able to identify the diverse opinions of the stakeholders for identifying the sustainability aspects. The main discourse of the report will identify the key stakeholders for the major group of the stakeholders and also provide the rationale how they are able to meet their needs. The different discussions of the study have further included each strategy for the cause and effect relationship associated to the   objective and strategy. The next section has discussed the lag and lead indicators conducive for measure performance. The third section of the study has showed the balanced scorecard which has been suggested with the performance measures taken from the four-perspective from the balanced scorecard (Originenergy.com.au, 2018).

The key stakeholders of the company are identified as investors, customers, people communities and business partners. The identified has been further elaborated in each major group and explained how these strategies will be able to meet their needs (Originenergy.com.au, 2018).

It has been seen that the investors are interested in nonfinancial and financial performance of the company and how Origin is able to “identify, manage and mitigate risks across the business to deliver sustainable shareholder value”. The major strategies of Origin include hosting annual general meeting with the various analyst, investors and media briefings (Originenergy.com.au, 2018).

The customer looks for quality of service, energy affordability and ability to budget by removing the variability among the energy costs. Origin is engaged in offering services in form of service hubs which provides customers with the physical location which they can visit to address the concerns.(Van Timmeren et al., 2012)

Investors

The health and safety remain the top priority among these stakeholders. The employees are further seen to require inclusive workplace fair and equitable remuneration along with progressive career development. The company takes response from these stakeholders in form of survey, so that Origin can assist them in shaping their work environment. It has been further discerned that the company took “manager-led toolbox” talks with employees as a regular part of their process (Neugebauer et al., 2015).

The key interest areas include public policy related to the climate change emissions, water management, land access and coexistence. Origin is proactively involved in communicating wit these communities and traditional land owners for the operations and development.

Transparent relation with the company for delivering the shareholder value are some of the important interests of Business partners. Origin is proactively engaged in form of regularly communicating with the business partners in their daily operations and the procurement procedure is seen to be aligned with the expectations of the suppliers.

The origin’s strategy is depicted to be aligned with the various types of the objectives such as connecting the resources to the market and focus on the business which is depicted to be aligned with the priorities such as designed to drive continued improvement in the performance. The business strategy of the company is seen with being leader in the energy markets and hold regionally significant position in terms of the natural gas and production of LNG. The Australia Pacific “LNG project’s Local Content Policy” is associated with the strategy to include training and development to build capacity in local businesses and regional buy program. During this period, there has been more than 360 suppliers who were involved in attending the regional buy program workshop conducted at Surat Basin.

In order to achieve this objective Origin Energy has taken significant measures which are depicted to be observed with the strategy such as “decarbonisation rate of our portfolio’s life cycle emissions from 2014 against a target decarbonisation rate derived from the IEA to limit global warming to 2°C, with the objective of formally announcing our target by the end of the 2016 calendar year”.

Origin is responsible for supplying energy in the markets of Asia Pacific region, Australia and New Zealand. Some of the other main strategies of the company is depicted in these areas is seen with connecting the resources to the market with a clear focus on three main business areas along with four priorities in the energy sector for ensuring a continuous improvement in the performance of the company. The four main priority of the company is depicted with improving returns in energy markets, capital management and funding, delivering growth in the integrated gas business and growing capabilities by increasing investment in renewables. The board of director is responsible for bringing the vast experience of the governing activities and business strategies. The long-term investments of the company are focused on that strategies which will ensure that company relies mostly on low carbon and renewable energy solutions.

Customers

The four perspectives of the balanced score card has been prepared with financial perspectives, customer perspectives, internal business processes, learning and growth.

The underlying perspective of the financial performance has been understood with profit obtained from continuing operations which amounted to $ 354 million and further reduced to 41% in the previous year. This resulted in a strong financial performance for Origin’s energy market business pertaining to the LNG production carried out by Australia Pacific LNG. Despite of statutory loss from the operation amounting to $ 589, this was identified as an improvement of 10% compared to the previous year. Some of the other improvement areas and financial perspectives has been seen with significant progress in terms of improving cash flow, sales cost reduction and increased equity. The company has been also able to significantly improve the cash flow and reducing the net debt below $ 9 billion.

The important areas of customer perspectives are discerned with increased focus towards customer’s energy consumption. The improving initiatives for the customer’s perspective are considered with maintaining community support and goodwill for activities performed by the company. In general, it has been depicted that origin has supported the customer’s need by understanding and delivering the relevant competitive energy solution for meeting the need of today and future. Moreover, Origin energy has improved overall customer experience with the “strategic net promoter score (NPS)”, which has been conducive in measuring the relationship of stakeholder within the Origin brand. The company has been also able to provide continued support by interacting with the customers and understanding their problems (Franzitta et al., 2017).

In the financial year 2016 there had been several number of air quality measures to meet compliance which was maintained under the compliance of “Environmental Protection Authority (EPA)”. In addition to this, the contract management process utilizes several processes which is used to mitigate and identify the risk of suppliers engaged with the organization. The company has further ensured overriding duty towards the safety and health of the employees thereby reducing both safety and health impacts on the customers and communities in which it operates. The health and safety in the origin and workplace is maintained with the relationality sessions which are applicable to the operating environment. The main approach of the company towards health and safety is depicted to be governed with “Health, Safety and Environment (HSE) Policy’. This policy has been able to explain about the various plans and procedures for managing health, environmental risks and ensuring safety across all the business channels (Salata et al., 2015).

People

The company’s main aim is recognized with improving the visibility and able to sustain a greater insight into the incidents which can be captured by SIFR. It is helpful in supporting the ongoing safety culture development and learning process (Mardani, Jusoh, Zavadskas, Cavallaro, & Khalifah, 2015). In support of the “Reconciliation Action Plan (RAP)”, the company is able to implement the learning process and better understand the culture and histories of “Aboriginal and Torres Strait Islander peoples”. This initiative taken by the company is conducive in understanding the cultural diversity and extend a greater reach towards the sustainability aspect. In addition to this, Origin seeks to continuously learn and implement better ways information sharing and ideas (Laes, Gorissen, & Nevens, 2014).

The scope of fifth dimension in the balanced scorecard can be depicted with social aspect. This should focus on eliminating and managing the various types of hazards and practices which leads to injury, illness and accident among the employees working in origin. Another important scope of the social aspect is depicted with providing and maintaining a satisfying and rewarding work environment to all the employees at Origin (Wang et al., 2015). The measure of safety performance of the company is done with “Total Recordable Injury Frequency Rate (TRIFR)”, which is responsible for measuring the companywide work-related injuries occurred but million hours. As per the results of financial year 2016, the company recorded a TRIFR offers 4.2 against 3.2. Henceforth, the various steps of the aforementioned initiatives taken with the social aspect needs to be improved by setting a target of 4.2 against 3.2 for the period. The company should seek to efficiently use the employee share plan which could be conducive in understanding the various perspective of the employees in terms of bringing social welfare to the community (Cappelletti et al., 2014).

Conclusion

The evaluation of the information on key stakeholders has been able to suggest that investors are interested in nonfinancial and financial performance of the company and how Origin is able to “identify, manage and mitigate risks across the business to deliver sustainable shareholder value”. major strategies of Origin include hosting annual general meeting with the various analyst, investors and media briefings. In addition to this, customer looks for quality of service, energy affordability and ability to budget by removing the variability among the energy costs and these are duly recognized by the company. The health and safety remain the top priority among the general people and company takes response from these stakeholders in form of survey, so that Origin can assist them in shaping their work environment. Transparent relation with the company for delivering the shareholder value are some of the important interests of Business partners. Origin is proactively engaged in form of regularly communicating with the business partners in their daily operations and the procurement procedure is seen to be aligned with the expectations of the suppliers. The main lag in the financial indicator is discerned with increased Tax rate, Increase in the manufacturing cost and Statutory loss from total operations. The improvement in the learning and growth aspect of the company is identified with greater insight into the incidents which can be captured by SIFR. In addition to this, the scope of fifth dimension in the balanced scorecard can be depicted with social aspect.

Referenced

About Origin – Origin Energy. (2018). Originenergy.com.au. Retrieved 11 May 2018, from https://www.originenergy.com.au/about.html

Cappelletti, G., Ioppolo, G., Nicoletti, G., & Russo, C. (2014). Energy Requirement of Extra Virgin Olive Oil Production. Sustainability, 6(12), 4966–4974. https://doi.org/10.3390/su6084966

Franzitta, V., Curto, D., Milone, D., & Trapanese, M. (2017). Energy Saving in Public Transport Using Renewable Energy. Sustainability, 9(1), 106. https://doi.org/10.3390/su9010106

Laes, E., Gorissen, L., & Nevens, F. (2014). A Comparison of Energy Transition Governance in Germany, The Netherlands and the United Kingdom. Sustainability, 6(3), 1129–1152. https://doi.org/10.3390/su6031129

Mardani, A., Jusoh, A., Zavadskas, E., Cavallaro, F., & Khalifah, Z. (2015). Sustainable and Renewable Energy: An Overview of the Application of Multiple Criteria Decision Making Techniques and Approaches. Sustainability, 7(10), 13947–13984. https://doi.org/10.3390/su71013947

Originenergy.com.au. (2018). Retrieved 11 May 2018, from https://www.originenergy.com.au/content/dam/origin/about/investors-media/annual%20review%202017/FY2017%20Sustainability%20Report.pdf

Originenergy.com.au. (2018). Retrieved 11 May 2018, from https://www.originenergy.com.au/content/dam/origin/about/our-approach/docs/Origin-Sustainability-Report-2016.pdf

Neugebauer, G., Kretschmer, F., Kollmann, R., Narodoslawsky, M., Ertl, T., & Stoeglehner, G. (2015). Mapping Thermal Energy Resource Potentials from Wastewater Treatment Plants. Sustainability, 7(10), 12988–13010. https://doi.org/10.3390/su71012988

Salata, F., Golasi, I., Bovenzi, S., Vollaro, E., Pagliaro, F., Cellucci, L., … Vollaro, A. (2015). Energy Optimization of Road Tunnel Lighting Systems. Sustainability, 7(12), 9664–9680. https://doi.org/10.3390/su7079664

Van Timmeren, A., Zwetsloot, J., Brezet, H., & Silvester, S. (2012). Sustainable Urban Regeneration Based on Energy Balance. SUSTAINABILITY, 4(7), 1488–1509. https://doi.org/10.3390/su4071488

Wang, Q., Liu, P., Yuan, X., Cheng, X., Ma, R., Mu, R., & Zuo, J. (2015). Structural Evolution of Household Energy Consumption: A China Study. Sustainability, 7(4), 3919–3932. https://doi.org/10.3390/su7043919

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