Nys Annual Energy Conference

Advanced Energy Conference 2010 New York Hilton, NYC – November 8, 2010

Methodology on a Global Reporting Initiative: Defining, Benchmarking & Analyzing

Corporate Energy Usage

Dr. Andes Fortino, P.E., Associate Provost, NYU-POLYJeffrey Seigel, Adjunct Professor of Mgmt, NYU-POLYDr. Paolo Taticchi, Assistant Professor, Univ of Perugia Dr. Bala Balachandran, Professor Accounting, NYU-Stern Emanuele Raggi, Research Scholar, Univ of Perugia

http://www.poly.edu/

http://en.wikipedia.org/wiki/File:Unipg.png

http://www.stern.nyu.edu/index.htm

The Problem• Corporations use an exorbitant amount of energy amongst

their offices, manufacturing, shipping, employees, etc.• More and more corporations are reporting their sustainability

efforts in their in their integrative annual reports (the so-called triple bottom line)

• Reporting formats, statistics and methods are left up to the companies, no universal standards exist

• Just as there are GAAP standards for financial reporting, there should be similar standards for sustainability reporting so companies’ efforts can be easily compared and analyzed

The Solution

• Develop reporting standards for sustainability efforts to easily compare company results

• Start by studying current Corporate Sustainability Reporting standards to gauge how they define, analyze and benchmark organizational energy usage

• Propose a standard format for reporting

Linking GRI & CDP Standards

www.cdproject.net / 2010

http://www.cdproject.net/

https://www.cdproject.net/en-US/Respond/Documents/Linking-up-GRI-and-CDP.pdf

Global Academic Team• Project Team: Academic Staff from NYU-POLY,

University of Perugia and NYU-Stern

– Dr. Andes Fortino, P.E., Associate Provost, NYU-POLY– Jeffrey Seigel, Adjunct Professor of Mgmt, NYU-POLY– Dr. Paolo Taticchi, Asst Professor, Univ of Perugia – Dr. Bala Balachandran, Professor Accounting, NYU-Stern – Emanuele Raggi, Research Scholar, Univ of Perugia

http://www.poly.edu/

Why Corporate Energy Reporting?• Impacts Efficiency, Productivity & Profitability• Impacts Triple Bottom Line, Climate & Social Justice• Majority of S&P 500 Reporting Climate Risks• 80% of Global Fortune 500 Produce ESG Reports• Climate Change Risks & Opportunities

– Educates Stakeholders: Investors, Consumers, etc.– Enhances Brand Image and Reputation

• No Official Global Carbon Disclosure Framework• Linking GRI & CDP Methodology Created Foray into

Global Corporate Reporting Standardization

US CO2 Emissions by Sector

www.eia.gov / 2010

Our Efforts and Methodology• We intend to contribute to the corporate

reporting standardizing efforts by:– Reviewing the energy use reporting of several

multi-nationals who use the Global Reporting Initiative and / or the Carbon Disclosure Project

– Benchmark and analyze how the two reporting methodologies work in tandem

– Pose solutions for how standardized energy reporting can be brought to all companies

Report Summary • Corporations use Exorbitant Amounts of Energy• How do you Track Corporate Energy Usage?• Global Reporting Initiative Standards (GRI)• Carbon Disclosure Project Standards (CDP)• Global Team will Write a Methodology Report

– Defining, Benchmarking & Analyzing Corporate Energy Usage using the Exacting Standards of the GRI & CDP

– Energy Usage Impacts Efficiency, Productivity, Profitability, Climate Change, Economics Environment, Social Justice

– Corporate Energy Data Reported & Analyzed; Next Step?

Global Reporting Initiative (GRI)

www.globalreporting.org / 2010

Global Reporting Initiative (GRI)

• Multi-Stakeholder Nonprofit Organization• GRI Develops Sustainability Performance Guidelines

for Economic, Environmental & Social Performance• Created Sustainability Reporting G3 Guidelines• As of 1/09, more than 1,500 Organizations from 60

Countries use the GRI G3 Guidelines • 1,300 Organizations Published GRI Reports in 2009• Alliances-UNEP, UN Global Compact, Earth Charter

GRI Network Overview


G3 Energy Initiatives

• EN3 - Direct Energy Consumption• EN4 - Indirect Energy Consumption • EN5 - Energy Saved by Conservation • EN6 - Provide Renewable Energy • EN29 - Environmental Impacts of

Transporting Products


Carbon Disclosure Project

www.cdproject.org / 2010

Carbon Disclosure Project (CDP)

• Launched in 2000 to Gauge Climate Change• Helps Investors Gauge GHG, Carbon & Energy• CDP Focuses on Individual Companies • Largest Database Corporate Climate Change Data• 3,000 Organizations in 60 Countries Measure GHG• Act on Behalf of 534 Institutional Investors Holding

$64 Trillion in Assets Under Management• Backing from HSBC, JP Morgan, BofA, Merrill, etc.



Abridged GRI / CDP Linkage Table• GRI Assurance 3.13

– Policy and current practice with regard to seeking external assurance for the report…..

• CDP 20.1 External Verification/ Assurance– Please indicate the percentage of reported emissions that

have been verified/assured and attach .....

• Comments– The CDP focuses on emissions data and asks for …..– GRI asks companies to: “Explain the relationship between

the reporting organization and …..



• Why is this important? • Governments are making the environment a focus of

policy• But there are no standards to measure performance

in this area


Conclusion

• Global Energy Reporting Standards are needed

• A methodology has been identified• Our team is working on contributing to this

effort• Your feedback and collaboration is welcomed.

Contact Information• We welcome your input, questions and suggestions• Jeffrey S. Seigel

Adjunct Professor of Management Polytechnic Institute of NYU40 Saw Mill River Road Hawthorne, NY 10531 (917) 886 - [email protected]