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State and Business State and Business Action on Climate Action on Climate
ChangeChangeJudi Greenwald Judi Greenwald
Director of Innovative SolutionsDirector of Innovative Solutions
Pew Center on Global Climate ChangePew Center on Global Climate ChangeFebruary 23, 2005February 23, 2005
California Public Utilities Commission: En Banc Meeting on Climate Change
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The Pew Center
• Founded in May 1998• Independent, non-profit,
non-partisan• Research (science and
impacts, policy, economics, solutions).
• Education and outreach• Business Environmental
Leadership Council
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The landscape of state policies
• Direct and indirect GHG emission reductions• Almost every state is doing something:
– Regional initiatives– Climate Action Plans– Electricity (Renewable energy mandates, carbon
adders, Public Benefit Funds, Green pricing)– Transportation (CA GHG vehicle standards,
smart growth, transportation management, cleaner fuels and vehicles)
– Ag and Forestry (sequestration, renewable energy, biofuels)
– Other (e.g., energy efficiency, waste management)
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Renewable Energy Mandates
HI: 20% by 2020
IA: 105 MW
MN: Xcel 1125 MW by 2010WI: 2.2% by 2011
AZ: 1.1% by 2020
CO: 10% by 2015
NM: 10% by 2011TX: 2000 MW New by 2009
CA: 20% by 2017
MA: 4% New by 2009
NY: 25% by 2013
ME: 30% by 2000
DC: 11% by 2022MD: 7% by 2008
NJ: 6.5.% by 2008
RI: 16% by 2009CT: 10% by 2010
PA: 18% by 2020
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Business Environment Leadership Council
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BELC Principles
• Accept that the science compels action• Businesses should take concrete steps
to manage their own emissions• Kyoto is a first step; more must be done
to and involve the rest of the world• Reasonable policies and strategies can
address climate change and sustain economic growth in the U.S.
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How companies act on climate change
• Reduce their own (direct) greenhouse emissions
• Reduce GHG emissions from their suppliers or use of their products
• Invest in the development of new technologies and industrial processes
• Invest and participate in emissions trading, and sequestration or other offsets projects
• Advocate for reasonable public policy
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Why do companies decide to act?
• Regulatory and price risks– Potential facility regulation
• State, federal or international
– Scenario planning
• Competitive positioning– Customer demand– Investor demand– Bottom line returns
• Corporate responsibility– Leadership– Employee recruitment and retention
• Shape emerging policies
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Emissions Inventories and Verification
• Keys to success:– Simplicity– Credibility– Comparability– Materiality– Flexibility
• Types of Inventories– Facility-level– Entity-wide– Project-specific– Life-cycle of a
product
• Need to measure before you can manage
•Assessment of the completeness and accuracy of reported GHG reductions•Key questions: who should verify; what to verify against; what purpose; what level of detail
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Choosing a corporate GHG target• Target type:
– Absolute/Relative– Direct/indirect/products– CO2/GHG/energy
• Parties to involve:– Those responsible for implementing the action
plan. – Those who will be making core investment and
operations decisions (especially if significant shifts in production technologies, products, or sources of energy supply are planned)
• Data from an environmental management system is valuable for setting a target
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Achieving the target
• Action Plan– Top-down (set at corporate level)– Bottom-up
• Companies find that “What gets measured gets managed”
• Communication of target is key– employees – general public– government regulators– investors
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Examples of Company Activities• Process Improvements
– Alcoa– Baxter
• Energy Demand and Supply Solutions– IBM– Green Power Market Development Group– AEP
• Waste Management– Air Products and Chemicals
• Transportation – Boeing– Best Workplaces for Commuters– California Fuel Cell Partnership– Toyota
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Conclusions and Insights• Corporate culture concerning
environmental citizenship plays an essential role in action on GHG
• Targets (usually profitably) drive:– Innovation– Ideas– Technologies
• Frequent reaffirmation of commitment to reducing GHGs by senior management (what and why), especially the CEO, is important
• Many options for type and scope of GHG action available
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Pew Web Resources/States
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Pew Web Resources/Businesses
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For More Information
www.pewclimate.orgBusiness web
resourceshttp://www.pewclimate.org/what_s_being_done/
in_the_business_community/
States web resourceshttp://www.pewclimate.org/what_s_being_done/in_the_states/index.cfm
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