GreenSky. A Solution for Aviation Emissions Reporting and Compliance to EU-ETS

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1 GreenSky A Solution for Aviation Emissions Reporting and Compliance to EU-ETS

2 2 Overview Climate change is a critical environmental issue gaining importance across the globe. Governments are making considerable efforts to control the impact of climate change by implementing appropriate environmental measures. Today, there is a visible shift in the focus of organizations towards sustainability development as part of corporate social responsibility. In the light of worldwide contributions and efforts to combat climate change and emission control, the aviation industry assumes a lot of significance due to the nature of direct into the atmosphere caused by air travel. The entire aviation community comprising of aircraft operators, aircraft manufacturers, fuel suppliers, airport operators and air navigation service providers, is expending considerable efforts in containing the level of atmospheric. Aircraft operators in particular are seeking to adopt measures to monitor, report and verify the level of their. Such measures can also be attributed to the need for brand management, the worldwide cause for green; or simply a need to comply with increasingly stringent requirements being enforced through various mandates worldwide. The case for Aviation Compliance The European Union Emissions Trading System (EU ETS) is a measure undertaken by the European Union (EU) to reduce CO2 by allowing a certain amount of CO2 to be emitted or produced per year. The European Commission considers aviation as one of the important sectors to reduce carbon. Hence, in order to mitigate the climate impact, the commission has introduced a legislation to include aviation under the purview of EU ETS [1]. The scheme covers any aircraft operator, whether EU or foreign-based, operating international flights on routes to, from or between EU airports [2]. Very light aircraft, military, police, customs and rescue flights, flights on state and government business and training or testing flights have been exempted [2]. This paper seeks to provide an automated solution approach to the aviation industry, specifically aircraft operators, to monitor and report carbon in order to comply with EU ETS norms.

3 3 Aviation Carbon Emission Reporting Process Aircraft operators who wish to apply for free allowances must submit their monitoring plan. The monitoring plan will outline the measures taken to monitor and report tonne-kilometer data and emission data for each flight, which will then be checked and approved by the competent authority. In accordance with the monitoring plan, aircraft operators need to Monitor Report & Verify (MRV) the tonne-kilometer and carbon emission data for each flight and generate the aggregated data for reporting. Once the aggregated data is available, the aircraft operator needs to contact the accredited verifier, approved by regulators, to verify the accuracy and correctness of the report. The verified tonne-kilometer and emission report needs to be submitted to the competent authority of their administering member state for free allowances. Monitoring Reporting Verification Challenges in Airline IT Process Automation to Accommodate EU ETS Requirements The aviation industry today, while recognizing the need for monitoring, reporting and verification of their, faces some ground realities from the perspective of their IT systems and their ability to accommodate stringent auditing and reporting requirements. Some of these challenges can be described as under: Complex IT landscape with disparate systems that makes it difficult to unify data requirements across systems. Heterogeneous fleets that cause issues with data access and fuel gauge accuracy. Cumbersome and error-prone processes for data collection, processing and reporting. Comprehensive needs for maintenance of audit trails with supporting information and documentation. Data archiving requirements.

4 4 HCL s GreenSky Solution An automated monitoring, reporting and pre-verification solution for airlines. With strong domain expertise in carbon reporting, innovative green solutions and offerings across verticals, HCL presents an end-to-end solution -- GreenSky -- for automating EU ETS aviation compliance and reporting. Through this solution, HCL brings a combination of aviation EU ETS expertise, a comprehensive solution framework and a rapid deployment methodology for airlines to achieve the most effective means of compliance. Figure 1 below depicts a high level overview of the timelines involved in compliance to EU ETS, and how the industry is adopting measures to comply with the same. Submit TK and Monitoring Plan Monitor Adoption of technology Submit verified report for 2010 Each Member State will publish the allocation allowances to each operator Submit verified report for 2011 Submit verified report for 2012 Aug 2009 Jan 2010 Mar 2011 Dec 2011 Mar 2012 Mar 2013 Exploration TK Tonne Kilometer Assessment & Evaluation Decision Making HCL Proprietary & Confidential Figure 1 GreenSky Solution Framework Diagram Airline Systems Fleet Master ERP Flight Planning Euro Control Data MRO Apps Payload Apps Regulatory Docs EU ETS Data Automation Layer EU ETS Data Integration Hub EU ETS Data StoreBased on RDBMS Carbon Management Layer Allowances and Mitigation Workbench Web Application Addon for Allowances Management EU ETS Process Application Layer EU ETS Process Automation Web Application Based on Flex Technology Airline Systems GreenSky Solution HCL Proprietary & Confidential EU ETS EU ETS Controls Controls Workbench Repository Layer Business EU ETS Business Logic Logic Engine Automation Layer Figure 2

5 5 Solution Highlights Business process automation to monitor and report tonnekilometer and carbon. Pre-verification services with accredited verifiers to identify and address compliance gaps. Robust and demonstrable EU ETS controlled environment with inbuilt rules engine. Comprehensive decision making tools (dashboards, statistical reports) for effective senior management decision making. Tracking data for audit trail requirements. Budgeting and forecasting engine. References Note [1]: European Commission Climate Action, Inclusion of Aviation in EU ETS /index_en.htm Note [2]: European Commission Climate Action, Reducing emission from Aviation Sector FAQ Section, htm Author Venkata Pani Ravi Chander Venkata Pani Ravi Chander is part of the Vertical Solutions Group of the Transportation He currently works with multiple customers across the globe in providing domain led solutions in the areas of Airlines, Airports, Railways, Logistics, Ports and Cargo. Contact us:

6 6 ABOUT HCL HCL Technologies HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on transformational outsourcing, underlined by innovation and value creation, and offers an integrated portfolio of services including software led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of Employees First which empowers our 72,267 transformers to create real value for customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 3.1 billion (Rs. 14,101 crores), as on 31st December 2010 (on LTM basis). For more information, please visit About HCL Enterprise HCL is a $5.7 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 79,000 professionals of diverse nationalities, who operate from 31 countries including over 500 points of presence in India. HCL has partnerships with several leading Global 1000 firms, including leading IT and Technology firms. For more information, please visit