National Priorities for Climate and Energy Policy

Dan Bakal, CeresElectricity Restructuring Roundtable

December 5, 2008

Ceres is…

A coalition of 130-plus investors, environmental, and public interest groups.

A network of more than 80 companies representing diverse industries & businesses.

A leader in bringing companies together with their stakeholders in a constructive dialogue on sustainability issues.

Initiator of the Global Reporting Initiative (GRI), and the Investor Network on Climate Risk.

Selected coalition members

Selected Ceres companies

Growing five-fold since 2003, now 70 + members and over $6 trillion in assets

Acting on their fiduciary duty to manage risks and capture the opportunities (e.g. clean energy)

Climate change is a financial & corporate governance issue

“Climate change is a topic that should be on the agenda of every Board of

Directors” (Goldman Sachs)

The Investor Network on Climate RiskThe Investor Network on Climate Risk

Seek full disclosure Evaluate companies Vote relevant proxies Engage in dialogue

with companies Promote best

practices

Assess investment managers

Share information Encourage SEC to require

risk disclosure Invest in low carbon,

cleantech sector

INCR Members Taking Action INCR Members Taking Action

“Shareowners need information to make informed investment decisions and assess costs associated with the impact to the environment.These risks may include operational, market, liabilities, policy, regulatory, and reputation risk.”-- Rob Feckner, President of CalPERS

65 investors and businesses worth more than $4 trillion call for:

National climate policy reduce GHG emissions 60-90% below 1990 levels by 2050

Realign energy and transportation policy to stimulate investment in clean technology

SEC guidance on climate disclosure

For a complete list of companies, see www.ceres.org

AlcoaAllianz SE

BP AmericaCon Edison

DupontGreen Mountain Coffee Roasters

National GridPG&E

Sun MicrosystemsTurner Enterprises

AFSCMECalPERSCalSTRS

SEIU Master Trust FundUNITE HERE

Boston Common Asset Mgmt.Calvert

Domini Social Investments Merrill Lynch

California, Connecticut, Kentucky, Maine, Maryland, New Jersey, New

York, North Carolina, Oregon, Vermont, Washington

New York City

Investors/Businesses for Climate Investors/Businesses for Climate PolicyPolicy

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Sun Microsystems, Starbucks, Nike, Sun Microsystems, Starbucks, Nike, Levi Strauss & Co., TimberlandLevi Strauss & Co., Timberland

BICEP Principles• Set GHG targets to at least 25% below 1990 by 2020

and 80% below 1990 by 2050.

• Establish an economy-wide GHG cap-and-trade that auctions 100% of allowances, promotes energy efficiency and accelerates clean energy technologies.

• Establish aggressive energy efficiency policies to achieve at least a doubling of our historic rate of energy efficiency improvement.

• Encourage clean transportation by promoting fuel-efficient vehicles, low-carbon fuels, and transit-oriented development.

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BICEP Principles cont’d• Increase investment in energy efficiency,

renewables and carbon capture and storage technologies while eliminating subsidies for fossil-fuel industries.

• Stimulate job growth through investment in climate-based solutions, especially “green-collar” jobs in low-income communities and others vulnerable to climate change’s economic impact.

• Adopt a national renewable portfolio standard requiring 20% renewable energy by 2020, and 30 percent by 2030.

• Limit construction of new coal-fired plants to those that have CCS, create incentives for CCS, and phase out existing coal-based power plants that do not have CCS by 2030.

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