The report covered components of treasury operations-from cash and receivables collection to disbursements processing and storage of reports and other financial and customer data-and outlines best practices that are good for business and good for the environment.
Each section presents specific case studies that demonstrate the benefits of electronic treasury solutions. The report also introduces function-specific eco analysis worksheets that can help corporate treasurers calculate the benefits of going green.
The report highlighted a number of practices to help treasury departments move toward a ‘zero-return’ environment. Some of the practices include:
Reengineering Receivables: Many treasury departments spend time and money manually entering receivable and invoice information into their accounts receivable system to track payment status. Image capture and data capture in conjunction with web based data repositories provide faster and easier access to documentation and eliminate the cost of transporting paper from lockbox locations.
Streamlining Disbursements: An online disbursement platform can reduce the resources and hours required to initiate payments, research payment status and reconcile accounts. These platforms also reduce risk by providing safeguards against check fraud.
Online Reports and Statements: Bringing Treasury department reports online eliminates boxes of paper statements and the storage fees associated with them. With an electronic archive, treasury staff can use the search feature to locate specific transactions and other data.
Document Security: Paper documents pose significant security and business continuity risks. A paper less environment turns them into electronic images that are stored in a central online repository that can restrict access to sensitive information. New work flow processes can be developed for creating, saving, filing and accessing documents that factor in security and disaster recovery requirements, as well as regulatory considerations.
According to the 2009 PricewaterhouseCoopers 12th Annual CEO Survey, 60% of CEOs indicate that they have already made operational changes to address climate change or plan to do so within the next twelve months.
Migrating to electronic treasury processes can have a measurable impact on a corporation’s carbon footprint as large treasury operations can easily generate 5.5 tons of paper each year-the equivalent of 143 trees and 106 tons of greenhouse gasses.
Since JP Morgan Treasury Services’ ‘Go Green’ campaign began in 2007 the bank has helped treasury clients eliminate more than 101 million paper documents and save three million pounds of paper annually.
Gregory Long, vice president of JP Morgan Treasury Services, said: “Today’s economic climate is making it even more essential for treasury departments to go green. Many face tremendous pressure to trim costs, operate more efficiently and improve customer service. Electronic solutions help businesses automate work flow, give them instant access to financial data and eliminate the costs and risks of producing and storing paper.”
