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Press Release: PNM Resources Joins Pew Center's Business Environmental Leadership Council
Press Release
July 18, 2007
Pew Center Contact: Katie Mandes, (703) 516-4146
PNM Contact: Don Brown, (505) 241-2849
New Mexico-Based Energy Company Supports Action on Climate Policy
WASHINGTON, D.C. - The Pew Center on Global Climate Change announced today that PNM Resources has joined the Pew Center's Business Environmental Leadership Council (BELC) and its efforts to address global climate change.
PNM Resources, an energy company with significant operations in New Mexico and Texas and a supplier of energy throughout the Southwest, has set environmental sustainability goals that include reducing carbon dioxide emissions by 7 percent below 2002 levels by 2009. The company also aims to cut nitrogen oxide, sulfur dioxide, and particulate matter emissions as well as reduce its use of fresh water for power production during the same time period. In addition, PNM Resources is a national leader in providing and promoting renewable energy. The PNM Sky BlueTM wind energy program ranks eighth in the nation in customer participation among investor-owned utilities.
As a founding member of the U.S. Climate Action Partnership (USCAP) along with the Pew Center, PNM Resources is playing an active role in formulating comprehensive policy solutions to address climate change. USCAP is an unprecedented collaboration of 25 major corporations and 6 leading nongovernmental organizations that is calling on Congress to enact legislation including a cap-and-trade system at the earliest date possible that slows, stops, and reverses the growth of greenhouse gases.
"Because climate change is a problem of such immense scale, successfully addressing it will require an extraordinary degree of collaboration and cooperation across industries, political parties, and international borders," said Jeff Sterba, Chairman, President, and CEO of PNM Resources and current chairman of the Edison Electric Institute. "This effort by the Pew Center puts that concept into action, and we are proud to be counted as a member."
"Leadership from major energy companies is critical to effectively deal with climate change," said Eileen Claussen, President of the Pew Center on Global Climate Change. "PNM Resources has a clear understanding of the growing risks from climate change, as well as the economic opportunities that new, clean technologies present. I welcome their expertise as we work to develop and enact sound climate policy in this country and globally."
Based in Albuquerque, N.M., PNM Resources serves 835,000 electricity consumers in New Mexico and Texas and 492,000 natural gas customers in New Mexico. Its subsidiaries are PNM, Texas-New Mexico Power, First Choice Power and Avistar. PNM Resources' stock (ticker symbol: PNM) is traded primarily on the New York Stock Exchange. For more information on PNM Resources visit its web site at www.pnmresources.com.
The BELC was established by the Pew Center in 1998, and the Center is a leader in helping these and other major corporations integrate climate change into their business strategies. The BELC is comprised of mainly Fortune 500 companies representing a diverse group of industries including energy, automobiles, manufacturing, chemicals, pharmaceuticals, metals, mining, paper and forest products, consumer goods and appliances, telecommunications, and high technology. Individually and collectively, these companies are demonstrating that it is possible to take action to address climate change while maintaining competitive excellence, growth, and profitability. The BELC is the largest U.S.-based association of corporations focused on addressing the challenges of climate change, with 44 companies representing over 3.8 million employees and a combined market value of $2.8 trillion.
The other members of the BELC are: ABB; Air Products; Alcan; Alcoa Inc.; American Electric Power; Bank of America; Baxter International Inc.; The Boeing Company; BP; California Portland Cement; CH2M HILL; Citi; Cummins Inc.; Deutsche Telekom; DTE Energy; Duke Energy; DuPont; Entergy; Exelon; GE; Georgia-Pacific; Hewlett-Packard Company; Holcim (US) Inc.; IBM; Intel; Interface Inc.; John Hancock Financial Services; Lockheed Martin; Marsh, Inc.; Novartis; Ontario Power Generation; PG&E Corporation; Rio Tinto; Rohm and Haas; Royal Dutch/Shell; SC Johnson; Sunoco; Toyota; TransAlta; United Technologies; Weyerhaeuser; Whirlpool Corporation; and Wisconsin Energy Corporation.
For more information about global climate change and the activities of the Pew Center and the BELC, visit www.c2es.org.
American College and University Presidents Climate Commitment Summit
June 12, 2007
Thank you. I am very happy to be here and to welcome many of you to Washington. I don't know if you saw it, but there was a recent report stating that Washington and other eastern U.S. cities will reach summer temperatures of 110 degrees over the next 50 years. In a related story, Washington is considering a new license plate slogan: Perspiration Without Representation.
And the interesting thing is we're already seeing evidence of a changing climate in this part of the country. More and more species from the deeper South are making their presence known here in Washington, like crape myrtles and camellias, and a telegenic former Republican Senator from Tennessee. Think it's a coincidence that our last two presidents are from Arkansas and Texas? They're moving north, I tell you.
It's gotten so bad that many people actually welcome a new Cold War with Russia. They think it will keep a lid on global warming. And now a congressman has been caught with money in his freezer. What better way to keep cool during a hot Washington summer than to slip an ice-cold hundred-dollar-bill into your pocket?
All joking aside, it is an honor to be here at your first Leadership Summit. I am delighted to see so many of the nation's leading colleges and universities make the commitment that your institutions are making—you have set out to be a part of the solution to climate change, not a part of the problem. And I am certain that your leadership on this issue will inspire others to do their part as well.
Today, I want to use my remarks to talk about leadership and climate change. In my view, leaders are those who help us understand, in the words of the English biologist Thomas Huxley, that "the great end of life is not knowledge but action." They help us see when the time has come to do something based on what we know about a challenge or about an opportunity that lies before us. Yes, aspiring to a fuller understanding of our world is to be admired. It helps to focus our attention, and to pinpoint our actions. But waiting for perfect knowledge is cowardice, not leadership.
Moving from knowledge to action. From what we know to what we must do. This is what I want to talk with you about today. And I want to start with a brief summary of what we know about the scope of the climate crisis and how to solve it.
Let's start with the science. Most of you are familiar with the facts by now. The most recent report from the Intergovernmental Panel on Climate Change projected that global temperatures will increase between 3.2 and 7.2 degrees Fahrenheit by 2100. Sea levels will rise by as much as a foot to a foot-and-a-half. Many species will be lost. In addition, there is a 90-percent or greater chance that the world will see more hot extremes, heat waves and heavy precipitation events. And it is likely we will see more droughts as well.The science, in other words, is clear: if left unabated, climate change will have tremendous negative consequences for our country and our world.
The science also tells us there is no longer any doubt about what is causing this problem: greenhouse gas emissions from human sources—and, more specifically, from three key sectors: electricity; transportation, primarily automobiles; and buildings. Consider this: China is building a new coal-fired power plant every week to 10 days. And it's not just China and other developing countries. Emissions have been growing in the U.S. as well—as of 2006, they were up nearly 18 percent compared to 1990.
This is what we know about the science, and it seems we are learning more every day. And we also know something else. We know there are solutions—real technologies that can deliver real reductions in greenhouse gas emissions. We know, for example, that we can reduce carbon dioxide emissions from cars. We know there are clean energy sources. We know there are ways to burn coal more efficiently, and ways to potentially store coal-related carbon emissions underground. And we know we can increase efficiency in the building sector.
But still there's the same problem: we haven't yet put all this knowledge we have to good enough use. And that, I believe, is where policy comes in. We need strong policies at the national and international levels, policies that make it absolutely clear that continuing with the status quo will have both an environmental and an economic cost.
In weighing what types of policies we need, I believe it's important to look back at where we've been. Because in the same way that we know from the science that we need to take strong action to protect the climate, we know from history what policies will and won't work.
The global effort to try and address this problem kicked off in 1992, you will recall, when another President Bush was in the White House, and when the nations of the world gathered in Rio de Janeiro for what was billed as the Earth Summit. This was the event where more than 150 countries signed an agreement called the United Nations Framework Convention on Climate Change.
The UNFCCC, as it is known, sets an ambitious long-term objective: to stabilize greenhouse gas concentrations in the atmosphere at a level that would – and I quote – "prevent dangerous anthropogenic interference with the climate system." This is a goal that the United States, and virtually every other nation, has embraced.
As a first step to achieving this goal, industrialized countries agreed to a voluntary emissions target: they aimed to reduce their greenhouse gas emissions to 1990 levels by the year 2000. But before long, it became clear that the targets would not be met and that voluntary commitments could not deliver what was needed. So the United States and other countries began to negotiate a new agreement, one with binding targets, and they agreed at the outset that these new commitments would extend only to the industrialized countries, which so far have contributed the most to the problem.
Remember: this was more than 10 years ago, and already the world, including the United States, had recognized some very important things about responding to climate change. First, we recognized that voluntary action was not sufficient. Second, we recognized that we needed a global framework with binding commitments. And third, we recognized that, consistent with the Framework Convention, the developed world would have to take the lead.
Well, how quickly some of us forget.
Five years after the Rio summit, there was another international gathering on this topic in Kyoto, Japan. This was where the United States and other countries signed the new agreement known as the Kyoto Protocol. And what the Protocol did was to require developed countries to reduce or limit their emissions of greenhouse gases in relation to 1990 levels, with different countries agreeing to different targets. The agreement also included a number of features advocated by the United States to ensure countries a high degree of flexibility as they worked to achieve their targets. They could make actual emission reductions at home, buy emission credits from others, and use "sinks" such as farms and forests to remove carbon from the atmosphere.
This was another important principle that would serve us well to remember today: the need to combine binding commitments with flexible ways of achieving them.
During the negotiations in Kyoto, Vice President Al Gore flew to the ancient Japanese capital to help hammer out the deal. And the American negotiators ultimately agreed to a binding 7-percent reduction in U.S. emissions below 1990 levels by 2012.
But there was a problem: It was 1997, and U.S. emissions had already risen over 1990 levels by more than 8 percent. In other words, we had pledged to reduce our emissions by nearly 15 percent and we didn't have any kind of program in place to do this, nor did we have the political will to put such a program into place.
Another problem was that the United States Senate, under the Byrd-Hagel resolution, had already voted unanimously—unanimously—that the United States should not sign any climate treaty that–quote–"would result in serious harm to the economy of the United States." The resolution also put the Senate on record against requiring the United States and other developed countries to reduce emissions without also mandating—quote—"specific scheduled commitments … for Developing Country Parties within the same compliance period."
So the fact of the matter is that the Kyoto Protocol had virtually no proponents on Capitol Hill. And the Clinton administration did next to nothing to try to bring about the ratification of this treaty that its people had made such a big deal of signing. We clearly were not prepared to deliver at home what we were promising abroad. Not a sterling example of leadership, I must say.
And then, in 2000, American voters elected another President Bush, and within months of entering office, his administration made a unilateral decision to reject the Kyoto Protocol—not to modify it, not to explain the changed circumstances, not to suggest an alternative, but to reject it out of hand. And in taking this step, the White House raised the ire of other nations that had persevered through years of difficult negotiations and that had acceded to U.S. demands early on that the treaty include emissions trading and other business-friendly mechanisms.
It took the Bush administration fully six years to put forward any kind of alternative to Kyoto, as it did in the run-up to the G8 meeting last week. And, adding insult to injury, the President's proposal completely disregarded much of what we thought we had learned about how to spur effective global action on this issue—most importantly, the need for binding commitments that will truly change the world's emissions growth path.
That, my friends, is not leadership. For a glimmer of real leadership, you have to look to the other end of Pennsylvania Avenue, where Congress is devoting an unprecedented amount of energy to developing legislation that would (finally) put the United States on track to addressing this issue in a serious way.
Already this year, there have been more than 70 hearings on the climate issue on Capitol Hill—serious, substantive hearings convened to help members of Congress draft mandatory climate legislation. In the U.S. Senate alone, there are five bills proposing some form of cap-and-trade program for greenhouse gas emissions, and a total of 80 bills that deal in some way with the climate change issue. And the leadership of the House has made it clear that they want to pass legislation as soon as possible.
I have given entire speeches this year on what's happening on this issue on Capitol Hill, and I don't want to do that here. But suffice it to say that Congress is taking this issue very seriously, and we may, in fact, see real climate legislation by 2008, and if not by then, almost certainly by 2010.
But, for real action on this issue, real effort to reduce emissions, you need to travel outside of Washington.
You can find leadership in Bentonville, Arkansas, for example, where executives at Wal-Mart have launched a program to reduce their company's greenhouse gas emissions. And what is extraordinary about Wal-Mart's entree to the climate arena is the magnitude of the company's reach. Wal-Mart has pledged to work to reduce its emissions, both internally and externally, and the company's external reach encompasses more than 40,000 suppliers. The ability of Wal-Mart to transform the debate and reduce energy use and emissions cannot be matched by most countries.
Among the company's goals: reducing energy use in Wal-Mart stores by 30 percent, with a corporate goal of eventually being fueled 100 percent by renewable energy. Wal-Mart also is working to reduce the carbon footprint of its vehicle fleets. Wal-Mart operates 3,300 trucks. In 2005, these vehicles drove 455 million miles to make 900,000 deliveries to 6,500 stores. Wal-Mart has set a goal of doubling the fuel efficiency of its new heavy-duty trucks from 6.5 to 13 miles per gallon by 2015, thereby keeping some 26 billion pounds of carbon dioxide out of the air between now and 2020.
You can also find leadership on climate change in Fairfield, Connecticut, home to a little company called GE. As part of its Ecomagination initiative, GE has committed to doubling its investment in environmental technologies to $1.5 billion by 2010. This is the equivalent of starting a new Fortune 250 company focused exclusively on clean technology.
And you can find leadership in Sacramento, California. Not content with establishing an ambitious set of greenhouse gas emission targets—such as reaching 1990 levels by 2020—California lawmakers have gone the next step and passed legislation, with real enforcement, to give the targets the force of law.
Of course, California is not the only state to be exercising a leadership role on this issue. For example, 24 states, including large emitters like Texas, have required that electric utilities generate a specified amount of electricity from renewable sources. Twenty-eight states have climate action plans. And many states are working across their borders to reduce emissions in a cooperative way.
California and five other western states, for example, have agreed on a regional target for greenhouse gas emissions. By August 2008, the states will establish a market-based system to enable companies and industries to meet the target as cost-effectively as possible. A similar effort including 10 Northeastern and Mid-Atlantic states is aimed at reducing carbon dioxide emissions from power plants in the region.
And then there are 522 mayors representing 65 million Americans who are aiming to reach the U.S. Kyoto target of a 7 percent reduction below 1990 levels by 2012.
That is leadership. And we can also find leadership on the campuses of the colleges and universities that all of you represent. There are wonderful stories on the Presidents Climate Commitment website about colleges and universities reducing their emissions in real, tangible ways.
However, despite all the great things you are doing on your campuses, and despite the leadership of the states, cities and businesses I have mentioned, U.S. emissions still are trending up not down. Voluntary action is great, but it is not enough.
We need mandatory policies that will light a fire under what's happening now to address this issue, policies that will take us to another level of action and commitment. In the view of the Pew Center, what we need more than anything else is an economy-wide cap-and-trade system. This is when you place a cap on emissions and allow companies to achieve their targets either by reducing emissions outright or by purchasing emission credits from others who may be able to do it more cheaply.
Cap-and-trade, in fact, is the focal point of an effort involving the Pew Center and other NGOs, along with a number of leading companies. The group, which now numbers 27, is known as the U.S. Climate Action Partnership (USCAP for short), and we have issued a cap-and-trade proposal with specific targets and timetables—a real plan of action to slow, stop and reverse U.S. emissions. In addition to cap and trade, the USCAP group embraced an array of other policies aimed at building a low-carbon energy economy.Another example of leadership.
Another example of people and organizations making the shift from knowledge to action on this issue.
But whether we are talking about USCAP, or about what is happening in the states—or, indeed, about the things you are doing on your college and university campuses—the leadership ranks on this issue remain far too thin. And this is where you come into the picture in your role as educators.
Responding to global climate change will be a decades-long challenge. We know a great deal about how to get started solving this problem right now, as I have said. But we still need to learn more. We need to learn more about how to develop and deploy new, low-carbon technologies around the world. We need to learn more about what types of policies will drive technology development. And yes, we need to learn more about the science of climate change so we can refine our understanding of exactly what's happening, and what it will take to avert and adapt to this crisis.
Your institutions will be the places where much of this learning takes place. America's colleges and universities are the incubators for the next generation to lead the climate fight. It is crucial that you lead by example through efforts to limit your own emissions. And it is crucial that you educate your students about what you are doing—if only to show them that progress is possible. But even more crucial is that you make sure this next generation is able to gain the knowledge it needs to act on an issue that will have a profound impact on their lives and on the world they inherit from us.
Climate change is an issue that touches on science, policy, technology, ethics, international relations and other fields of study. That means encouraging a multidisciplinary approach to the study of climate change. It means enabling students and professors to work across the disciplines so they can see how all the pieces fit together. It means creating new majors, new academic programs that enable students and professors alike to give this topic the attention it deserves. It means following the words of the Presidents Climate Commitment that all of you have signed by—I quote—"integrating sustainability into the curriculum."
And it also means looking at what you can do outside the classroom to educate your students and others—by facilitating and encouraging dialogues on this issue on your campuses.
"Education is not the filling of a pail, but the lighting of a fire," said the poet William Butler Yeats. We need to light a fire in this next generation so they can see the urgency of this issue, explore solutions, speak out for action, and act.
Today, I am pleased that the climate debate has moved from focusing on what we know to what we must do. Now, the challenge is to build a common understanding among the young and not-so-young alike …. a common knowledge of what it is going to take to address this enormous problem … and a shared sense of responsibility on the part of today's—and tomorrow's—leaders.
Meeting this challenge will take perseverance, and yes, a certain amount of perspiration as well. But I believe we are up to the task. Thank you very much.
Business Environmental Leadership Council (BELC)
C2ES's Business Environmental Leadership Council (BELC) was created in 1998 with the belief that business engagement is critical for developing efficient, effective solutions to the climate problem. We also believe that companies taking early action on climate strategies and policy will gain sustained competitive advantage over their peers.
Starting with 13 companies, the BELC is now the largest U.S.-based group of corporations focused on addressing the challenges of climate change and supporting mandatory climate policy. The BELC is comprised of industry leading, mostly Fortune 500 companies across a range of sectors with combined revenues of $2 trillion and 3.5 million employees. Many different sectors are represented, from high technology to diversified manufacturing; from oil and gas to transportation; from utilities to chemicals.
While individual companies hold their own views on policy specifics, they are united with C2ES in the belief that voluntary action alone will not be enough to address the climate challenge. In 2011, the BELC members accepted the following guiding principles:
- We accept the scientific consensus that climate change is occurring and that the impacts are already being felt. Delaying action will increase both the risks and the costs.
- Businesses can and should incorporate responses to climate change into their core corporate strategies by taking concrete steps in the U.S. and abroad to establish and meet greenhouse gas (GHG) emission reduction targets, and/or invest in low and zero GHG products, practices and technologies.
- The United States should significantly reduce its GHG emissions through economy-wide, mandatory approaches, which may vary by economic sector and include a flexible, market-based program. Complementary policies may also be necessary for sectors such as buildings, electricity generation, forestry, agriculture, and transportation that will help drive innovation and ease the transition to a low-carbon economy.
- Climate change is a global challenge that ultimately requires a global solution. An international climate framework must establish fair, effective, and binding commitments for all developed and major developing economies.
BELC Member Profiles
Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina, operating in 31 countries. Alcoa's products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications.
Climate Initiatives
For nearly two decades, Alcoa has been a leader in reducing greenhouse gas emissions from its operations, making its first voluntary reductions in the early 1990s. In 1998, Alcoa established a Climate Change Strategy Team that developed and promoted its long-term goal to reduce direct greenhouse gas emissions by 25 percent below 1990 levels by 2010. Achieving that goal well ahead of schedule, Alcoa has continued to establish ambitious targets. Currently, it is committed to reduce its U.S. greenhouse gas emissions by 50 percent from a 2005 baseline, and also demonstrate a net reduction of greenhouse gas emissions from the use of its products equal to three times the emissions created by production—all by 2025.
Alcoa's climate change strategy allows it to:
- Incorporate the potential physical impacts of climate change into growth decisions and operational planning for existing assets;
- Integrate carbon risk into capital planning and valuation of mergers and acquisitions; and
- Establish a prioritized action plan for mitigating carbon risk and maximizing business opportunities.
Alcoa Foundation and C2ES have partnered on Make an Impact – a unique community focused project aimed at raising awareness and mobilizing action on climate change in Alcoa communities.
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Bank of America
Bank of America is a bank holding company and a financial holding company serving individual consumers, small- and middle-market businesses, large corporations and governments, offering banking, investing, asset management and other financial and risk management products and services. The company operates in more than 40 countries and is headquartered in North Carolina.
Climate Initiatives
In support of the environment, Bank of America has established targets to improve its operations, which include reducing greenhouse gas emissions, and energy, paper and water consumption, as well as divesting waste from landfills. The company also employs an environmental management system to identify, manage and mitigate environmental risk and improve environmental performance across their corporate real estate portfolio.
Bank of America is also leveraging its global financial capabilities to drive positive environmental change. In 2015, the company increased its second and current environmental business initiative from $50 billion to $125 billion in low-carbon business by 2025 through lending, investing, capital raising, advisory services and developing financing solutions for clients around the world.
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Berkshire Hathaway Energy
Berkshire Hathaway Energy is a holding company of locally managed businesses that share a vision for a secure and sustainable energy future. These businesses deliver affordable, safe and reliable service each day to more than 11.6 million electric and gas customers and end-users around the world, with approximately one third of their owned and contracted generating capacity coming from renewable and non-carbon sources.
Climate Initiatives
As part of the company's expansion into the renewables market, Berkshire Hathaway Energy developed BHE Renewables to oversee solar, wind, hydro and geothermal projects, which makes it the owner of one of the largest renewable energy portfolios in the United States.
In its commitment to responsible environmental management, BHE also developed their Environmental RESPECT Policy, which guides their corporate efforts in the areas of Responsibility, Efficiency, Stewardship, Performance, Evaluation, Communication and Training.
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BHP Billiton
BHP Billiton is a leading global mining, metals and petroleum company whose purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. The company owns and operates a diverse range of businesses in different countries and ecosystems around the world.
Climate Initiatives
BHP Billiton aims to minimize or avoid environmental impacts from its operations. The company focuses on reducing emissions, increasing its preparedness for physical climate impacts, and working with others to enhance the global response to climate change.
BHP Billiton's current targets, set in 2013, include maintaining total greenhouse gas emissions below 2006 levels by 2017, and financing the conservation and continuing management of areas of high biodiversity and ecosystem value.
From 2015 to 2015, BHP Billiton reduced its total greenhouse gas emissions 6 percent to 38.3 million tonnes of carbon dioxide equivalent (Co2-e).
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BP is one of the world's leading international oil and gas companies. It provides customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving, and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging.
Climate Initiatives
Oil and natural gas companies generate greenhouse gases in almost every aspect of their operations. Acknowledging their impact on climate change, BP aims to manage its emissions through energy efficiency, reductions in flaring (the controlled burning of natural gas), methane management and the design of new projects.
BP considers placing an economy-wide price on carbon –either through carbon taxes or a cap-and-trade system– as the best solution to limit greenhouse gas emissions, and it is playing its part by calling for a price on carbon, providing lower-carbon products including natural gas and renewables, pursuing energy efficiency and supporting research. BP already requires its businesses to use an internal carbon price –currently set at $40 per ton of carbon dioxide (CO?) equivalent for industrialized countries– in evaluating large new projects.
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CBRE Group, Inc., is one of the world's largest commercial real estate services and investment firms. The company offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting.
Climate Initiatives
As a leader in its industry, CBRE understands it has both a responsibility and an opportunity to minimize environmental impact by influencing the way buildings are built, sourced, managed, occupied and sold. Thus, the company has made it its policy to implement environmentally sustainable best practices and to meet both the letter and the spirit of all environmental laws and regulations where it does business. In 2010, CBRE became the first company in its industry to achieve carbon neutrality in its operations.
The sustainability programs developed by CBRE to help reduce buildings impact on the environment and, at the same time, create positive effects on communities, include resource management and procurement initiatives, employee training and academic collaboration.
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- CBRE Group Corporate Website
- CBRE Group 2011 Corporate Responsibility Website
- CBRE Group Environmental Sustainability Policy
Delta Air Lines
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally, offering service to nearly 340 destinations in 64 countries. Delta also provides aircraft maintenance, repair, and overhaul services for other aviation and airline customers, as well as staffing services, professional security and training services, and aviation solutions; vacation packages; and aircraft charters.
Climate Initiatives
As part of its commitment to be a transparent and responsible industry leader, Delta publishes an annual Corporate Responsibility Report, which includes their environmental sustainability strategy and data on sustainability performance. The company's goals include improving fuel efficiency by an average of 1.5 percent annually from 2009 to 2020; stabilizing emissions with carbon neutral growth from 2020; improving air quality; reducing water use and waste; and preventing or minimizing fuel spills.
The delivery of more efficient aircraft in 2015 onward, in addition to other fuel saving initiatives like the continued installation of drag-reducing wingtip devices and the installation of split-scimitar winglets on all future Boeing 737-900ER deliveries, will help push Delta towards the 1.5 percent goal. The replacement of smaller jets with larger more efficient Airbus and Boeing aircraft helps to generate the same capacity levels with fewer departures, contributing to improvements in fuel efficiency.
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Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 25,700 megawatts of generation, 12,200 miles of natural gas transmission, gathering and storage pipeline, and 6,500 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 933 billion cubic feet of storage capacity and serves more than 5 million utility and retail energy customers in 14 states.
Climate Initiatives
Renewable energy is an important and growing aspect of Dominion's diverse generating portfolio. In the near term, green power –solar, hydro, wind and biomass generation– helps lower the company's carbon intensity and reduce its exposure to unpredictable fuel price swings. Between 2008 and 2014, the company reduced its total CO2 emissions by 37 percent, and their carbon intensity rate by 28 percent. Currently, 50 percentof its electric output is emissions-free nuclear and renewable energy. Longer term, it is an important element of Dominion's climate change strategy and the nation's transition to a low-carbon economy.
The company's initiatives to reduce its environmental footprint also include "greening" its vehicle fleet; increasing the amount of water reused or recycled in its operations; and protecting biodiversity and habitats surrounding its facilities.
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Dow Chemical Company combines the power of science and technology to drive innovations essential to human progress. The company extracts value from the intersection of chemical, physical and biological sciences to help address many of the world's most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity.
Climate Initiatives
Dow is committed to applying its science and engineering expertise to create sustainable solutions to these challenges. Since 2006, the company has established sustainability goals to help lead the transition to sustainable planet and society. Through its most recent commitment, the 2025 Sustainability Goals, they are continuing to reduce its own footprint; deliver ever-increasing value to customers and society through its products and solutions; and lead in developing a blueprint for a sustainable planet.
Dow's goals include integrating public policy solutions, science, technology and value chain innovation; increasing confidence in chemical technology; maintaining world-leading operations performance in natural resource efficiency, environment, health and safety, among others.
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DTE Energy
DTE Energy Co. is a diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its largest operating subsidiaries are DTE Electric and DTE Gas. Together, these regulated utility companies provide electric and/or gas services to more than three million residential, business and industrial customers throughout Michigan.
Climate Initiatives
Beyond the delivery of safe, reliable and economical energy products and services, DTE is committed to enhancing the quality of life for today's society and future generations. Among the steps its has taken to reduce and offset greenhouse gas emissions are: participating in research on new technologies to make carbon capture and geologic carbon storage practical for both new and existing fossil-fuel power plants; exploring carbon trading markets as an option; developing renewable alternative energy resources in Michigan; helping customers reduce energy usage and becoming more energy efficient; developing landfill-gas capture systems; and converting small coal-fired power plants to run on biomass fuels.
DTE Energy is directly investing approximately $1 billion in renewable energy, most of which is investment in wind projects. An additional $1 billion is being invested in third-party owned Michigan-based renewable energy facilities. These investments contribute significantly to the Pure Michigan Business Connect Initiative.
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Duke Energy
Duke Energy is the largest electric power holding company in the United States, supplying and delivering energy to approximately 7.4 million U.S. customers. Our commercial and international businesses own and operate diverse power generation assets in North America and Latin America, including a portfolio of renewable energy assets.
Climate Initiatives
Duke Energy's mission is to provide clean, reliable and affordable energy to customers, and it is taking steps to plan for success in the low-emission, decarbonized economy, and develop responsible energy and environmental policy. In 2015, the company increased its 2020 goal to own and purchase solar, wind and biomass by 33 percent.
The company is active in bringing more renewable energy to the market, investing in new technologies, expanding the use of energy efficiency as the "fifth fuel," and providing customers low-carbon options. It has also made progress in protecting and enhancing the quality of air, land and water resources by installing emissions control equipment on power plants, participating in stewardship projects, and forming comprehensive lake management plans.
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Entergy Corporation is an integrated energy company, engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power.
Climate Initiatives
Entergy was the first U.S. utility to voluntarily commit to stabilizing CO2 emissions. In 2011, the company adopted Environment 2020, a comprehensive environmental strategy and management system that covers six areas of strategic action: environmental footprint, proactive adaptation, compliance leadership, energy efficiency, clean generation and stakeholder engagement. Its current commitment is to maintain CO2 emissions from Entergy-owned power plants and controllable power purchases through 2020 at 20 percent below year-2000 levels. More than half of the energy it supplies to meet utility demand comes from efficient natural gas-fired generation and clean nuclear generation.
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Exelon Corporation is one of the nation's leading competitive energy providers, with approximately $23.5 billion in annual revenues. The Exelon family of companies participates in every stage of the energy business, from generation to competitive energy sales to transmission to delivery.
Climate Initiatives
Exelon was among the earliest energy companies to focus on addressing its carbon emissions. In 2008, Exelon launched Exelon 2020, an ambitious program to reduce, offset, or displace more than 15 million metric tons of greenhouse gas emissions per year by 2020. The company reached more than 18 million metric tons in 2013, seven years ahead of schedule.
Exelon's owned generation fleet CO2 emission rate is 93 percent lower than the industry average, making the company among the most sustainable in the industry. Exelon is also working to improve watershed management. More than 98 percent of the company's current water use is non-consumptive.
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General Electric
Founded in 1892, General Electric (GE) is a diversified technology, media, and financial services company focused on solving some of the world's toughest problems. GE's company segments are Energy Infrastructure, Technology Infrastructure, Capital Finance, and Consumer & Industrial Products.
Climate Initiatives
Ecomagination is GE's strategy to enhance resource productivity and reduce environmental impact through commercial solutions for their customers and in the company's own operations. Through this initiative, in 2015 GE had reduced its greenhouse gas (GHG) emissions by 12 percent and fresh water use by 17 percent from 2011 levels.
GE has committed to continue this progress through a 2020 commitment to reduce GHG emissions and fresh water use by 20 percent from 2011 levels, and to invest an additional $10 billion in Ecomagination.
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General Motors
Founded in 1908, General Motors (GM) is one of the world's largest automakers. The company sells its cars and trucks to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. GM also works to develop innovative technologies to shape the future of the automotive industry through the establishment of GM Ventures.
Climate Initiatives
GM is the leading automaker for voluntary carbon reductions, and has a solar footprint at 18 facilities equal to the size of 130 football fields. The company also has 73 facilities that meet the voluntary EPA EnergyStar Challenge for industry.
GM is well on the way to achieving its 2020 goal to decrease energy consumption to 20 percent below 2010 levels, with a reduction of 14.3 percent as of 2015. The company's renewable energy portfolio, which includes solar, landfill gas, hydro, and waste-to-energy has more than doubled in the past six years to a current generating capacity of 125 MW.
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Holcim (US), Inc. is one of the largest manufacturers and suppliers of cement and mineral components in the United States. Holcim's (US) business segments are Commercial Builders, Residential Builders, Architects, and Public Works.
Climate Initiatives
Holcim is a corporate leader in sustainability through its 2030 Plan, a set of targets which support the UN "Sustainable Development Goals." As part of this plan, Holcim has committed to produce 40 percent less net CO2 per ton of cement than the company did in 1990, and to reduce the among of fresh water used to produce each ton of cement by 30 percent.
The LafargeHolcim Foundation for Sustainable Construction, created in 2003, works to raise awareness of the important role that architecture, engineering, urban planning and construction have in achieving a more sustainable future.
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The world's largest technology company, HP brings its innovative expertise together with a portfolio than spans printing, personal computing, software, services, and IT infrastructure to solve customer problems. HP's operations are organized into five business groups: Enterprise Group, Enterprise Services, HP Software, HP Printing and Personal Systems Group, and HP Financial Services.
Climate Initiatives
HP achieved its supply chain greenhouse gas (GHG) emissions intensity goal and operational GHG emissions goal in 2015, both five years early. The company set new goals in 2016 to continue these reductions, including to achieve 40 percent renewable electricity usage in global operations by 2020 and a goal to someday reach 100 percent. HP also has a goal to achieve zero deforestation associated with HP brand paper by 2020. The company's CO2 and water footprint were both more than 10 percent less in 2015 than in 2014.
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IBM strives to lead in the invention, development, and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems, and microelectronics. The company translates these technologies into solutions for its customers through its professional solutions, services and consulting businesses.
Climate Initiatives
Through its internal energy conservation projects, IBM has conserved 7 million MWh of electricity and avoided 4.3 million metric tons of CO2 emissions from 1990-2015. In 2015, the company surpassed its annual goal to achieve a 3.5 percent reduction in total energy use, achieving a 6.3 percent reduction. Last year, the company also decreased its generated hazardous waste by 32 percent from 2014, and recycled 58 percent of its waste.
More Information
- IBM Corporate Website
- IBM Environmental Sustainability Website
- IBM 2015 Environmental Corporate Responsibility Report
As the world's largest semiconductor chip maker, Intel develops advanced integrated digital technology products, and supplies the building blocks that are the "ingredients" of computers, servers, networking, and communications products. Intel is successfully evolving from a company with a primary focus on the design and manufacture of semiconductor chips to a computing computer that delivers complete solutions in the form of hardware and software platforms and supporting services.
Climate Initiatives
Since 2008, Intel has been the largest voluntary purchaser of green power in the US and has recycled more than 75 percent of the total waste generated through its operations. The company has an ambitious set of 2020 environmental goals to drive reductions in greenhouse gas emissions, energy, waste, waste and green buildings and to increase the use of alternative energy.
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JPMorgan Chase & Co.
JPMorgan Chase & Co. is a leading global financial services firm, servicing millions of consumers, small businesses and many of the world's most prominent corporate, institutional, and government clients.
Climate Initiatives
JPMorgan Chase & Co. is undertaking a range to actions to reduce greenhouse gas (GHG) emissions, increase renewable energy use, and maximize green buildings and sustainable paper use. The company purchases Verified Emission Reduction credits to offset all GHG emissions associated with employee air travel.
JPMorgan Chase & Co. is partnering with the Nature Conservancy on its NatureVest initiative to create and transact a pipeline of investable deals that deliver both meaningful conservation results and financial returns for investors.
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Lockheed Martin
Lockheed Martin is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The company is the largest provider of IT services, systems, integration, and training to the U.S. Government.
Climate Initiatives
Lockheed Martin is pursuing an ambitious set of targets to reduce energy use by 25 percent, water use by 30 percent and carbon emissions by 35 percent by 2020 from a 2010 baseline. As of 2015, the company had achieved 18 percent, 25 percent, and 23 percent reductions in energy, water, and carbon emissions.
More Information
- Lockheed Martin Corporate Website
- Sustainability at Lockheed Martin
- Lockheed Martin 2015 Sustainability Report
Microsoft is a platform and productivity company for the mobile-first, cloud-first world, and is a worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential.
Climate Initiatives
Microsoft has implemented an internal carbon fee, which is used to improve energy efficiency, increase renewable energy purchasing, and fund community projects that offset carbon and advance sustainable development worldwide. The company has been carbon neutral since June of 2012, and powered completely by renewable energy since 2014.
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Microsoft Sustainability Website
National Grid
National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. In the North Eastern U.S., National Grid connects more than seven million gas and electric customers to vital energy sources.
Climate Initiatives
In 2015, National Grid achieved a 62 percent reduction in its scope 1 and 2 greenhouse gas emissions compared to a 1990 baseline. The company has a long-term commitment to reduce its greenhouse gas emissions by 80 percent before 2050, with an interim target of 45 percent by 2020. National Grid has also set a UK target to reuse or recycle 100 percent of recovered assets by 2020. In 2015, 95 percent of the company's waste was recycled.
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NRG is one of the country's largest power generation and retail electricity businesses. Its diverse power generating facilities are capable of supporting almost 40 million homes, and its retail electricity providers and thermal energy division serve more than two million residential, business, commercial and industrial customers in 16 states.
Climate Initiatives
With ongoing development of solar, wind, modern natural gas and other clean energy generation, NRG has set the stage to become the premier company moving clean and affordable energy forward. The company is the No. 5 top wind generator in the U.S, with 36 wind farms across 12 states that have a total 2,759 MW capacity. NRG has a goal to reduce its carbon emissions 50 percent by 2030 and 90 percent by 2050 from a 2014 baseline. The company is on the way to achieving this goal, iCO2 emissions decreased by 16 percent from 2014 to 2015.
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PG&E Corporation
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation, is one of the largest combined natural gas and electric utilities in the United States. The company delivers some of the nation's cleanest energy to 15 million people in Northern and Central California.
Climate Initiatives
In 2014, PG&E achieved a 13 percent reduction in water use at office facilitates and service yards. In the same year, 27 percent of power delivered to customers came from eligible renewable resources. This achievement was possible in part due to PG&E's Solar Choice initiative, which gives customers the option to purchase up to 100 percent of their power from solar energy.
PG&E was recognized for the quality of its climate change reporting by being named to the 2015 Climate Disclosure Leadership Index. The company earned a perfect score of 100, and was one of only four U.S. utilities to make the list.
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Public Service Enterprise Group
Public Service Enterprise Group Incorporated (PSEG), through its subsidiaries, operates as an energy company primarily in the Northeast and Middle Atlantic States. The company operates nuclear, coal, gas, oil-fired, and renewable generation facilities with a generation capacity of approximately 13,146 megawatts. PSEG also transmits electricity; and distributes electricity and gas to residential, commercial, and industrial customers, as well as invests in solar generation projects and implements energy efficiency and demand response programs.
Climate Initiatives
PSEG established a goal to reduce its greenhouse gas emissions by 25 percent from 2005 levels by 2025. The company achieve this target in 2011, 14 years ahead of schedule. Since 2011, PSEG has reduced methane emissions by 2 percent annually, equaling a total of 32,000 million tons of CO2 equivalent.
In 2014, PSEG awarded a $1 million grant to Montclair State University to create the PSEG Institute for Sustainable Studies, an initiative to support research and educational programs that will foster a sustainable and resilient New Jersey. In 2010, the company also opened its Energy & Environmental Resource Center, which is focused on building a greater understanding of the environmental and energy challenges we face and developing strategies to balance energy demand and environmental stewardship.
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Rio Tinto
Rio Tinto is a leading international mining and exploration group. The company finds, mines and processes the earth's mineral resources – metals and minerals essentials for making thousands of everyday products that meet society's needs and contribute to improved living standards.
Climate Initiatives
In 2008, Rio Tinto set a target to achieve a 10 percent reduction in greenhouse gas emissions by 2015. By this year, the company had reached a 21.1 percent reduction in emissions. The target has now been extended to aim for a 24 percent reduction from a 2008 baseline by 2020. Rio Tinto has been an active participant and investor in initiatives and organizations to accelerate the commercialization of carbon capture and storage (CCS). The company has invested more than $100 million in CCS development over the last 15 years.
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- Rio Tinto Corporate Website
- Sustainability at Rio Tinto
- Rio Tinto 2015 Environmental Responsibility Report
Sempra Energy
Based in San Diego, Sempra Energy is a Fortune 500 energy services company that combines deep industry expertise with rigorous risk management to deliver superior shareholder returns. The Sempra Energy companies develop energy infrastructure, operate utilities, and provide related products and services to more than 32 million consumers worldwide.
Climate Initiatives
Sempra Energy's emissions decreased by 9 percent from 2014 to 2015, excluding emissions related to a natural gas leak. In 2015, the company also returned 90 percent of withdrawn water to its source and diverted nearly 14,300 metric tons of waste from landfills through its recycling programs. In the same year, Sempra Energy received a transparency score of 100 on CDP's annual climate change survey, and was named to its Carbon Disclosure Leadership Index.
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Shell is a global group of energy and petrochemical companies with an average of 93,000 employees in more than 70 countries. Shell uses advanced technologies and an innovative approach to help build a sustainable energy future. The parent company of the Shell group is Royal Dutch Shell PLC, which is incorporated in England and Wales.
Climate Initiatives
In 2010, Shell exceeded its voluntary target set in 1998 for direct greenhouse gas (GHG) emissions from facilities it operates to be at least 5 percent lower than 1990 levels. Shell's GHG emissions in 2010 were around 25 percent lower than 1990 levels. A subsequent voluntary target has not been set, but the company is continuing to reduce emissions each year. In 2015, Shell's GHG emissions were 6 percent lower than 2014 levels.
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As the world's second-largest automaker, Toyota designs, tests, manufactures, sells and services vehicles and vehicle components in more than 170 countries. Toyota is committed to being a good corporate citizen in the communities where it does business and believes in supporting programs with long-term sustainable results.
Climate Initiatives
Toyota reduced, recycled, reused or composted more than 96 percent of its waste in 2015. Twenty-eight of the company's North American facilities meet the U.S. Zero Waste Business Council's definition of a Zero Waste Business. By using creative techniques such as collecting rain water, Toyota saved more than 54 million gallons of water in 2015.
Toyota achieved its target to reduce energy use by 12 percent per vehicle by 2016, from a 2010 baseline. This goal was met ahead of schedule, and the company has achieved a 16.6 percent reduction so far. Toyota set a similar target to reduce greenhouse gas emissions by 12 percent by 2016. This goal was also met early, with an achieved 16 percent reduction to date.
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|Visit our low-carbon innovation project to learn about the most effective methods used by companies today to bring low-carbon technologies to market
External Business and Climate Reports
The following reports focus on some of the key issues confronting businesses as they address the climate change challenge. The reports (all pdfs) were produced by companies, investment firms and other non-governmental organzations and do not necessarily reflect the views of the Center.
The following reports are from other nongovernmental organizations and companies and are organized under seven categories:
- Corporate Governance
- Finance
- Investor Resources
- Clean Technology and Low Carbon Economy
- Sector-Specific Resources
Corporate Governance
Ceres: Corporate Governance and Climate Change: Consumer and Technology Companies (December 2008). This Ceres report is the first comprehensive assessment of how 63 of the world's largest consumer and information technology companies are preparing themselves to face this colossal challenge. The report employs a "Climate Change Governance Framework" to evaluate how 48 US companies and 15 non-US companies are addressing climate change through board oversight, management execution, public disclosure, GHG emissions accounting and strategic planning and performance.
Ceres: Corporate Governance and Climate Change: The Banking Sector (January 2008). This report is the first comprehensive assessment of how 40 of the world's largest banks are preparing themselves to face the colossal challenge posed by climate change. It pays particular attention to how corporate executives and board directors are addressing the governance systems that will be needed to minimize climate risks while maximizing investments in solutions that mitigate and help society adapt to climate change.
Ceres: Corporate Governance and Climate Change, Making the Connection (March 2006). In this report, Ceres surveys 100 of the world's largest companies in 10 industry sectors and uses a "Climate Change Governance Checklist" to evaluate how these companies are addressing the issue.
Carbon Disclosure Project: CDP4 (2006). The Carbon Disclosure Project is a forum used by institutional investors to request information on greenhouse gas emissions from some of the world's largest companies. This report, the fourth in a continuing series, contains data on individual company's CO2 emissions and mitigation plans, and also includes analyses of new climate developments.
Corporate Strategies
Deloitte & Touche LLP: The Risk Intelligent Energy Company: Weathering the Storm of Climate Change (October 2007). The energy industry has always dealt with risk. However, when the scope, complexity, and interdependency of risk factors increase, or when an emerging risk simultaneously presents significant opportunities, more comprehensive and integrated approaches are necessary. This Deloitte & Touche LLP paper provides insight into identifying key climate change risks, discusses how a Risk Intelligent approach to Enterprise Risk Management helps to manage these risks, and offers guidance on how to adapt business models to the implications of climate change.
Harvard Business Review: Competitive Advantage on a Warming Planet (March 2007). This article by Jonathan Lash and Fred Wellington of the World Resources Institute argues that companies that manage and mitigate their exposure to the risks associated with climate change while seeking new opportunities for profit will generate a competitive advantage over rivals in a carbon-constrained future. This article offers a systematic approach to mapping and responding to climate change risks. (Please note: clicking on the link above will take you to HBR's download center where you can purchase the article for $6).
The Climate Group: Carbon Down, Profits Up (2007). The Climate Group, an international non-governmental organization, in the third edition of its "Carbon Down, Profits Up" report, describes actions taken by many companies to reduce greenhouse gas emissions. The report also highlights the advantages gained by firms that take early action to address climate change.
Business for Social Responsibility: Offsetting Emissions: A Business Brief on the Voluntary Carbon Market (December 2006). This report from Business for Social Responsibility is intended for companies considering the purchase of voluntary offsets for their greenhouse gas emissions. It offers clear steps that guide early assessments and enable corporate decision makers to become educated consumers within voluntary carbon markets.
Ceres and the Investor Network on Climate Risk: Managing the Risks and Opportunities of Climate Change: A Practical Toolkit for Corporate Leaders (January 2006). This Ceres toolkit provides a guide for corporations interested in developing climate strategies. It lists a series of steps corporations should take and includes case studies of companies that have successfully established such strategies.
California Management Review: Climate Change Strategy: The Business Logic Behind Voluntary Greenhouse Gas Reductions (2005). Many companies are taking advantage of the lack of a mandatory U.S. GHG emission reduction program to set targets at their own pace and in ways that complement their own strategic objectives, writes Dr. Andrew Hoffman of the University of Michigan in this California Management Review (CMR) article. They are doing so in order to prepare for the long term should GHG emission reductions become mandatory, while at the same time attempting to reap near-term economic and strategic benefits should new regulations not emerge. (Please note: clicking on the link above will take you to CMR's download center where you will be given the option of purchasing the article.)
Business Roundtable: Every Sector, One Resolve (September 2004). This is a progress report on BRT's Climate RESOLVE program, which is a multi-sector, CEO-led initiative to promote voluntary action to reduce the GHG intensity of the U.S. economy. BRT reports that as of July 1, 2004, 107 companies were taking action to reduce their emissions under the RESOLVE program.
Harvard Business Review: Winning the Greenhouse Gas Game (April 2004). Companies voluntarily reducing their greenhouse gases are helping to shape the governmental regulations that are coming soon. Dr. Andrew Hoffman of the University of Michigan and author of C2ES report "Getting Ahead of the Curve: Corporate Strategies That Address Climate Change" writes in this Harvard Business Review (HBR) article that if companies do not act now, they will find their competitors will write the rules for them. (Please note: clicking on the link above will take you to HBR's download center where you will be given the option of purchasing the article.)
Ceres: From Risk to Opportunity 2008: Insurer Responses to Climate Change (April 2009). Hundreds of new insurance initiatives, including coverage for green buildings, renewable energy, carbon risk management, and officers' liability are being offered to tackle climate change and rising weather-related losses in the U.S. and globally, according to this report by the Ceres investor coalition.
Swiss Re: The Economic Justification for Imposing Restraints on Carbon Emissions (August 2007). This insights report discusses why government intervention is needed to impose restraints on carbon emissions and why an international policy is necessary. According to the authors, cap-and-trade policy is likely to be the most successful way of reducing carbon emissions. The report examines the economic reasons for government intervention, as well as mitigation policy options and issues.
Marsh: A Change in the Weather (January 2007). This article from insurance services company Marsh looks at the unique legal and regulatory risks climate change poses to companies. It also examines the fact that corporate behavior is being scrutinized more closely by shareholder activists.
Trucost: Carbon Counts US: The Carbon Footprints of Mutual Funds in the US (April 2009). Trucost's analysis of 91 US mutual funds, with a combined value of $1,551,067 million, reveals a wide variation in carbon footprints. The highest carbon fund is found to be 38 times more carbon intensive than the lowest. The research covers 75 of the largest equity funds and 16 major sustainability/SRI funds, and examines greenhouse gas emissions associated with eight investment styles. The study highlights opportunities to manage fund carbon risk as climate change regulations are introduced.
Standard & Poor's: CreditWeek Special Issue: The Credit Impact of Climate Change (May 2007). Features of this S&P special report on the credit impact of climate change include the varied credit effects of a portfolio approach to coping with climate change, the costs of potential regulatory compliance and their effect on U.S. utility credit, and the impact of stringent environmental legislation on the world's automakers.
New Energy Finance: Global Clean Energy Investment Overview (September 2006). In this report, New Energy Finance, a financial services firm that specializes in low-carbon energy, analyzes the latest trends in clean energy investing. Investment in renewable energy and low-carbon technologies has more than doubled over the last two years, according to the report.
World Wildlife Fund and the Allianz Group: Climate Change and the Financial Sector: An Agenda for Action (June 2005). WWF and the Allianz Group -- a financial services firm -- teamed to produce this report, which identifies risks for the financial community arising from climate change and provides recommendations for how the sector can turn these risks into opportunities. Special attention is paid to financing low-carbon energy projects.
Goldman Sachs: Energy, Environmental and Social Index (February 2004). This report identifies specific environmental and social issues likely to be material for company competitiveness and reputation in the oil and gas industy, and attempts to quantify their potential impact on stock prices. Goldman Sachs concludes that BP and Royal Dutch Shell stand out for their environmental and social track record compared to their industry peers.
Investor Resources
Ceres: Mutual Fund Industry Opposition to Climate Change Resolutions Begins to Thaw (April 2008). The mutual fund industry's previously apprehensive attitude toward climate change shareholder resolutions is beginning to change as Wall Street starts to recognize the financial risks and opportunities of global climate change. This report analyzes the 2004-2007 voting records of 1,285 funds of 62 leading mutual fund firms, which illustrate that historic opposition toward such resolutions is softening. Some fund firms support many climate resolutions outright, and others abstain on most or all resolutions after opposing them in the past. Still, many mutual funds are acting inconsistently on climate change -- offering new climate-related funds and research products while continuing to oppose virtually all climate-related resolutions.
Goldman Sachs: Capital Markets at the Crossroads (September 2006). In this presentation to the Clinton Global Initiative, Goldman Sachs says that an "Eco-Efficiency Premium" may now be increasing as more investors focus on environmental characteristics when making investment decisions. Goldman Sachs also believes that opportunities in climate change and investing will continue to grow.
Goldman Sachs: Environmental Portfolio Strategy (August 2005). This paper provides a primer on socially responsible investing (SRI), with a particular focus on the investment implications of climate change. Goldman Sachs argues that climate change is an issue that all investors should consider, not just those interested in the SRI market.
Clean Technology and Low Carbon Economy
ACEEE: The Size of the U.S. Energy Efficiency Market: Generating a More Complete Picture (May 2008). This report frames energy efficiency as an invisible powerhouse and an underappreciated investment opportunity. ACEEE seeks to quantify the size and scope of current investments in energy efficiency technologies both in terms of dollars invested and labor employed. The core question driving the current assessment is "How Big Is Energy Efficiency in the U.S.?" Despite the many obstacles and challenges, the authors develop estimates of current spending on efficiency and discuss how those investments compare to annual investments in conventional energy supply. The results suggest that the U.S. is not aware of the role that energy efficiency has played in satisfying our growing energy service demands. (Registration is required to view the full report.)
McKinsey & Company: Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost (December 2007). McKinsey & Co. worked with leading companies, industry experts, academics, and NGOs to develop a detailed, consistent fact base estimating costs and potentials of different options to reduce or prevent GHG emissions within the United States over a 25-year period. The study finds that the U.S. could reduce GHG emissions in 2030 by 3.0 to 4.5 gt of CO2e using tested approaches and high-potential emerging technologies. These reductions would involve pursuing a wide array of abatement options with marginal costs less than $50 per ton. Further information can be found at McKinsey's Climate Change Special Initiative.
Appollo's Fire: Igniting America's Clean Energy Economy (March 2007). This Web site, established by Congressman Jay Inslee and Bracken Hendricks, a senior fellow at the Center for American Progress, contains stories from businesspeople, engineers and others, who are working to advance the clean energy economy. Visitors to the site can submit their own stories about how they are promoting clean energy and helping fight global warming.
Sector-Specific Resources
World Business Council for Sustainable Development (WBCSD): Water, Energy and Climate Change (March 2009). This report makes the case for collaborating on solutions for climate change, energy and water, making the case that the problems are naturally linked, and that solutions should also be connected.
Carbon Disclosure Project: CDP Supply Chain Report 2009 (March 2009). This CDP report presents the results of an initiative aimed at identifying and addressing opportunities to reduce emissions of greenhouse gases in the supply chain.
World Business Council for Sustainable Development (WBCSD): Energy Efficiency in Buildings: Business Realities and Opportunities (August 2007). This WBCSD report summarizes the first year's work of the Energy Efficiency in Buildings (EEB) project co-chaired by Lafarge and United Technologies Corporation. It presents a picture of the challenge of energy use in buildings and a preliminary, high-level approach to addressing that challenge.
Harvard Business Review: Building the Green Way (June 2006). Well designed green buildings yield lower utility costs, greater employee productivity, less absenteeism, and stronger attraction and retention of workers than standard buildings do. So building green is no longer a pricey experiment; just about any company can do it on a standard budget by following the 10 rules outlined by author Charles Lockwood, in this Harvard Business Review (HBR) article. (Please note: clicking on the link above will take you to HBR's download center where you will be given the option of purchasing the article.)
World Resources Institute: Hot Climate, Cool Commerce: A Service Sector Guide to Greenhouse Gas Management (2006). This report offers a step-by-step approach for service sector companies that want to reduce their greenhouse gas emissions. It includes information on quantifying emissions and offers recommendations on how to reduce those emissions.
BELC Company GHG Reduction Targets
Many of our BELC companies have greenhouse gas (GHG) reduction targets. Some of these companies have achieved their targets and are currently evaluating new goals, while other companies are considering first-time targets. To learn more about the process of GHG target-setting, read our report Corporate Greenhouse Gas Reduction Targets (pdf).
ü Achieved Targets o In Progress
o An additional 7 percent reduction in energy consumption at our large air separation units per quantity of gas produced by 2015.
o An additional 7 percent reduction in fuel and feedstock consumption per quantity of hydrogen produced at our hydrogen, carbon monoxide and synthesis gas plants by 2015.
ü Reduce GHG emissions by 25 percent from 1990 levels by 2010 through improved resource use. Actual reduction was 26 percent.
o Reduce GHG emissions by 50 percent from 1990 levels by 2010 through improved resource use, assuming success with commercializing inert anode technology.
o Reduce total US GHG emissions by 4 percent from 2008 to 2013
o Starting in 2010, reduce 2005 levels of total CO2 intensity in Alcoa's Global Primary Products business (refining and smelting) by 20% by 2020 and 30% by 2030.
o RerRerrr Reduce the intensity of GHG emissions by 20 percent from 2008 levels by 2015.
o Reduce GHG emissions per volume of water it produces by 16 percent from 2007 levels by the year 2017.
ü Reduce total U.S. GHG emissions by 9 percent from 2004 levels by 2009. Actual reduction was 18 percent.
ü Reduce GHG emissions by 7 percent in energy and utility customers' operations from 2004 levels by 2008.
ü Reduce total U.S. GHG emissions by 18 percent from 2004 levels by 2009.
o Reduce its absolute GHG emissions by 15 percent from 2011 to 2015, based on its 2010 baseline
o Bayer HealthCare will decrease its absolute GHG emissions by 5 percent from 2025 levels by 2020
o Bayer CropScience will decrease its absolute GHG emissions by 15 percent from 2025 levels by 2020
o Bayer MaterialScience will decrease its specific GHG emissions per ton of sold prodict by 25 percent from 2025 levels by 2020
o Reduce CO2 emissions from vehicles by 20 percent from 2007 levels by 2012
ü Reduce GHG emissions from operations by 10 percent from 1990 levels by 2010.
o Maintain net GHG emissions at or below 2001 levels over the next decade.
ü Reduce global GHG emissions by 25 percent per dollar revenue from 2005 to 2010. Actual reduction was 28 percent.
o Reduce CO2 emissions from its production activities by 20 percent from 2007 levels by 2015 emissions by 10 percent from 2005 levels by 2011.
o Reduce its CO2 emissions from its new European passenger fleet by 30 percent from 2007 levels by 2016
o Reduce the fuel consumption by heavy-duty commercial vehicles by an average 20 percent per ton-kilometer by 2020 compared to the base year of 2005.
ü Improve CO2e per RTM (revenue-ton mile, i.e. one payload of passengers or cargo transported one mile) by 10 percent from 2000 levels by 2010. Actual improvement was 28.2 percent.
o Delta will set a new goal for 2015.
ü In 2010, slightly more than half (56 percent) of Dominion's total electricity production was fossil-fired. The rest was carbon-free nuclear and renewable energy.
ü Between 2000-2010, we reduced the average CO2 emissions rate per unit of output at our generation fleet by about 21 percent, while fleet capacity grew significantly. Dominion attributes this achievement to the balance and diversity of our fuel mix, combined with sustained productivity improvements at our power stations and a growing reliance on conservation and efficiency programs. Dominion expects its carbon intensity to continue to decline as the pieces of its climate change strategy fall into place in the coming years.
ü Since 2000, Dominion has added over 2,600 MW of non-emitting nuclear generation and over 3,500 MW of new lower-emitting natural gas-fired generation
o Dominion is proceeding with expanding the DSM program, a community solar program, and demonstration of smart grid technologies.
o Dominion has announced the retirement or conversion of 2,668 MW of coal fired power generation
o Reduce global intensity (Btu/lb) of its operations by 25 percent by 2015 based on a 2005 baseline.
o Reduce GHG intensity 2.5 percent per year from 2005 to 2015.
ü Reduce or offset power plant CO2 emissions by 5 percent from 1999 levels by 2005.
o Reduce CO2 emissions intensity (tons/megawatthour) of its electricity generation three to five percent from a 2000-2002 levels by 2012
o Reduce the carbon intensity (tons of CO2 emitted per net megawatt-hour of electricity produced) of the total generation fleet from 0.63 in 2005 to 0.50 by 2020.
o Reduce total global GHG emissions of Duke's US generation fleet by 17 percent from 2005 levels by 2020.
ü Reduce GHG emissions by 65 percent from 1990 levels by 2010. Actual reduction was 67 percent.
ü Hold total energy use flat at 1990 levels through 2010. Actual use in 2010 was 19 percent below 1990 levels
o Reduce total global GHG emissions by 15 percent from 2004 to 2015
o Source 10 percent of global energy use from renewable resources by 2010.
ü Stabilize CO2 emissions from U.S. generating facilities at 2000 levels through 2005. Actual reduction was 23 percent below target.
ü Reduce total U.S. GHG emissions from operating plants by 20 percent from 2000 levels by 2010.
ü Reduce total U.S. GHG emissions by 8 percent from 2001 levels by 2008. Actual reduction was more than 35 percent.
o Reduce, offset or displace more than 15 million metric tons of GHG emissions per year by 2020
o Reduce energy usage at company facilities by 23% from 2008 levels by 2020
o Reduce total global GHG emissions by 1 percent from 2004 levels by 2012.
o Reduce intensity of GHG emissions by 30 percent from 2004 levels by 2008.
o Reduce total global GHG emissions by 25 percent from 2004 levels by 2015
o Improve energy efficiency by 30 percent from from 2004 levels by 2012
ü Reduce on-site GHG emissions by 18 percent from 2005 levels by 2006. Actual reduction was 31 percent.
ü Reduce PFC emissions by 10 percent from 1995 levels by 2010.
o Reduce the combined energy consumption of operations and products 20 percent below 2005 levels by 2010.
o Reduce the GHG emissions from HP-owned and HP-leased facilities 20% below 2005 levels by 2013 on an absolute basis. HP has set an interim target to reduce the energy consumption in its facilities by 7% (the remaining percentage in this goal) below 2008 levels by the end of 2010.
o Reduce the energy consumption and associated greenhouse gas (GHG) emissions of all its products to 40 percent below 2005 levels by the end of 2011
ü Reduce global average net specific CO2 emissions by 20 percent from 1990 levels by 2010.
o Reduce CO2 emissions per ton of cement by 25 percent, compared to 1990 levels, by 2015
ü Achieve an absolute 10 percent reduction in PFC emissions from semiconductor manufacturing processes from 2000 levels by 2005.
ü Reduce average annual CO2 emissions equivalent to 4 percent of emissions associated with worldwide annual energy use from 2000 levels by 2005. Actual reduction was 6.2 percent.
ü Achieve annual energy conservation savings equal to 3.5% of IBM's total operational energy use. Actual reduction or avoidance was 5.4 percent in 2009.
o Reduce total global GHG emissions (from operational energy used and PFC emissions from semiconductor operations) by 7 percent from 2005 levels by 2012.
o Reduce total global GHG emissions (from operational fuel and electricity use) by 12 percent from 2005 to 2012
o Reduce total PFC emissions from semiconductor operations 25% from 1995 levels by 2010
o Reduce total emissions reduction of 6% from a baseline of the average annual North American GHG emissions from 1998 - 2001, by 2010
ü Reduce PFC emissions by 10 percent from 1995 levels by 2010. Actual reduction by 2010 was 45 percent in absolute terms and over 80% on a per chip basis
ü Reduce global GHG emissions by 30 percent per production unit from 2004 levels by 2010. Acutal reduction by 2010 was 45 percent below 2004 levels on a per chip basis.
ü Reduce the absolute global-warming gas footprint from Intel operations 20% below 2007 levels by 2012. Actual reduction as of the end of 2010 was 40 percent
ü Reduce GHG emissions per dollar revenue by 30 percent from 2002 to 2012. This was achieved in 2008.
o Reduce GHG emissions per dollar of revenue by 30 percent from 2008 levels by 2018
ü Reduce US GHG emissions rate 21 percent from 2001 levels by 2008.
o Reduce US GHG intensity 27 percent from 2009 levels by 2024
ü Reduce CO2 emissions by 31% from 2000 levels by 2010.
o Reduce tons of CO2 megawatt hour from 0.8 tons to 0.5 tons by 2025, with an intermediate goal of 0.7 tons by 2015.
ü Reduce overall energy use at 88 facilities by 18 percent from 1999 levels by 2003.
ü Reduce annual sulfur hexafluoride (SF6) emissions by 50 percent from 1998 levels by 2002.
ü Reduce SF6 emissions by 60 percent from 1998 levels by year-end 2007.
o The company expects to meet California's requirement that 20 percent of electric sales come from qualifying renewable energy resources, which emit no or minimal GHG emissions, by 2010.
o PG&E has customer energy efficiency savings goals for the three year period 2010 to 2012 of 3,100 GWh.
o PG&E has customer energy efficiency savings goals for the three year period 2010 to 2012 of 48.9 million therms.
o Reduce energy use at PG&E offices and service yards by 25 percent from 2009 levels by 2014
o Administer the California Solar Initiative, part of a statewide program to install 3,000 megawatts of new customer-owned solar by 2017.
o Sign contracts for 1,360,777 million metric tons of greenhouse emission reductions by 2011 for ClimateSmart program customers. As of the end of 2009, the ClimateSmart program has successfully contracted for almost 1.2 million metric tons of GHG emission reductions.
o Develop up to 500 megawatts (MW) of solar photovoltaic (PV) power by 2010
o Reduce CO2 emissions, or equivalents, by 7 percent per megawatt hour from 2002 levels by 2009.
o Obtain 10 percent of total energy comes from renewable sources by 2011 and 20 percent by 2020.
ü Reduce on-site GHG emissions per ton of product by 4.8 percent from 1990 levels by 2001.
o Reduce total GHG emissions per ton of product by 4 percent from 2003 levels by 2008.
o Reduce energy use per ton of product by 5 percent from 2003 levels by 2008.
o Reduce GHG emissions per unit of commodity production in by six percent from 2008 levels by 2013. Further reduce GHG emissions per unit of commodity production by 4 percent by 2015
ü Reduce GHG emissions from operations by 10 percent from 1990 levels by 2002.
o Maintain GHG emissions from operations at 5 percent below 1990 levels through 2010. In 2009, its direct (scope 1) emissions were around 35% below its 1990 level
ü Reduce energy consumption per unit of production by 15 percent from 2000 levels by 2005.
ü Reduce energy consumption, measured in Btus per building square foot (Btu/ft2) by 18 percent by 2011 from a 2001 baseline. Achieved in 2007.
ü Reduce energy consumption, measured in Btus per building square foot (Btu/ft2) by 26 percent by 2011 from a 2001 baseline. Achieved in 2011.
o Reduce energy consumption, measured in Btus per building square foot (Btu/ft2) by 32.6 percent by 2011 from a 2001 baseline.
o Reduce total energy use in North American operations by 27 percent per vehicle produced from 2002 levels by 2011. Not on target.
o Reduce CO2 emissions per unit of production from U.S. assembly operations by 10 percent from 2002 levels by 2012. Not on target.
o Reduce energy consumption by 10% from all Toyota Canada facilities by 2010
ü Reduce GHG emissions to 1990 levels by 2000.
ü Beginning July 1, 2007, reduce GHG emissions intensity by 12 percent from average intensity between 2003 and 2005.
o Achieve zero net GHG emissions from the company's Canadian operations by 2024.
o Reduce GHG emissions by 40 percent from 2000 levels by 2020 through greater reliance on renewable fuels.
Press Release: Citi Joins Pew Center's Business Environmental Leadership Council
Press Release
April 18, 2007
Pew Center Contact: Katie Mandes, (703) 516-4146
Citi Contact: Val Hendy, (212) 559-3362
Global Banking Giant Pledges to Take Immediate Action
WASHINGTON, D.C. – The Pew Center on Global Climate Change announced today that Citi has joined the Pew Center's Business Environmental Leadership Council (BELC) and its efforts to address global climate change.
One of the world's pre-eminent financial services companies, Citi has committed to a 10 percent reduction in GHG emissions by 2011, invested in and financed alternative energy and clean technology, and published equity research that highlights the relevance of climate change to various sectors of the global economy.
In a February 2007 position statement, Citi wrote that climate change poses significant potential risks to the global economy that require urgent action. Citi recognizes that climate change requires a global solution – and that U.S. national action and leadership are critical elements of a successful effort.
The company also supports a market-based national policy to reduce GHG emissions. As their February 2007 climate policy states, "Citi recognizes that establishing a price for carbon dioxide and other greenhouse gases is essential for reflecting the impacts of these emissions…Given the necessity to address emissions from all regions of the U.S. and the world, a national legislative framework will be the most effective and economically efficient response for the United States."
"The leading financial firms have the most influential voice of any in the business community when it comes to core economic concerns," said Eileen Claussen, President of the Pew Center on Global Climate Change. "I am delighted that Citi has committed to public leadership on this issue. By calling for a strong, market-based U.S. climate policy and new global approaches, they are protecting the long-term interests of their customers and the communities they touch."
"Citi is honored to be joining the Pew Center's Business Environmental Leadership Council to work together with Pew and other companies on the critical issue of climate," said Chuck Prince, Chairman and Chief Executive Officer, Citi Inc. "Citi recognizes the importance of business leadership on environmental issues, has demonstrated its value through initiatives such as the Equator Principles, and looks forward to contributing to this important work led by Pew, learning from our peers, and further developing Citi's responses."
The BELC was established by the Pew Center in 1998, and the Center is a leader in helping these and other major corporations integrate climate change into their business strategies. The group is comprised of mainly Fortune 500 companies representing a diverse group of industries including energy, automobiles, manufacturing, chemicals, pharmaceuticals, metals, mining, paper and forest products, consumer goods and appliances, telecommunications, and high technology. Individually and collectively, these companies are demonstrating that it is possible to take action to address climate change while maintaining competitive excellence, growth, and profitability. The BELC is the largest U.S.-based association of corporations focused on addressing the challenges of climate change, with 43 companies representing over 3.8 million employees and a combined market value of $2.8 trillion.
The other members of the BELC are: ABB; Air Products; Alcan; Alcoa Inc.; American Electric Power; Bank of America, Baxter International Inc.; The Boeing Company; BP; California Portland Cement; CH2M HILL; Cummins Inc.; Deutsche Telekom; DTE Energy; Duke Energy; DuPont; Entergy; Exelon; GE; Georgia-Pacific; Hewlett-Packard Company; Holcim (US) Inc.; IBM; Intel; Interface Inc.; John Hancock Financial Services; Lockheed Martin; Marsh, Inc.; Novartis; Ontario Power Generation; PG&E Corporation; Rio Tinto; Rohm and Haas; Royal Dutch/Shell; SC Johnson; Sunoco; Toyota; TransAlta; United Technologies; Weyerhaeuser; Whirlpool Corporation; and Wisconsin Energy Corporation.
For more information about global climate change and the activities of the Pew Center and the BELC, visit www.c2es.org.
Climate Change Politics: A Landscape Transformed
It is wonderful to be here in Albuquerque. I am honored to be a part of this conference, and to kick off Session III of these proceedings.
And what a journey you have been on. Your agenda shows that you have moved from the Desert Dryland of Session I through the Middle Ground of Session II . . . and today you have reached Session III: Oasis. I am just glad this Convention Center has ample parking for all of your camels.
Your journey reminds me of an old New Yorker cartoon. It shows a caravan in the desert with the camels piled high. A child in the group asks his mother the age-old question: "Are we there yet?" And the irritated mother replies: "Of course not, we're nomads!"
So let me begin by paying tribute to the Xeriscape Council of New Mexico for bringing all of us—all of you—together. The Council understands that, when it comes to issues of how we use water and how we interact with the natural environment, we simply cannot continue blindly on our current course. We cannot keep treating the environment as an instrument for meeting our every whim and need. Or, at least, we cannot do this and expect our actions not to have repercussions, some of them quite severe.
I am here this morning, of course, to talk about climate change. And, given the Council's interest in water issues, I want to talk a little bit about the relationship between climate change and water supplies. But, mostly, I want to talk about politics.
Now, I know what you're thinking. You're thinking: Oh, great. Someone is here from Washington to talk about politics. As if we don't get enough politics in the news already.
But what I want to talk about is the politics of climate change—and how the political landscape in this country is changing in favor of stronger action to protect the climate. And it is changing for the same reason that events such as this conference are attracting more and more participants. Because people recognize that we have some very serious environmental problems on our hands—and because people see that there are solutions.
Of course, I am talking about people like you. And I am also talking about people like New Mexico's governor, Bill Richardson.
Just last week, as I am sure you know, Governor Richardson joined with the chief executives of four other western states in a bold agreement to reduce greenhouse gas emissions and address climate change. I'll talk more about this later, but for now I merely want to alert you to the fact that solutions to climate change are sprouting up right here in your own backyard. New Mexico and its neighbors, in fact, are at the vanguard in showcasing the new politics of climate change that I want to talk about today.
But let me start with a few words about water. Earlier this year, a United Nations panel called the Intergovernmental Panel on Climate Change (IPCC) issued a highly anticipated report on the current science of climate change. This report represents the combined efforts of hundreds of top scientists from around the world. And it received a great deal of attention in the media—chiefly, for confirming once and for all that sea level and global temperatures both increased at an accelerating pace during the 20th century.
Also newsworthy was the fact that the IPCC expressed a much higher level of confidence than in past reports (a greater than 90-percent certainty, in fact) that the changes we are seeing are the result of human actions. The primary culprit, of course, is emissions of carbon dioxide and other greenhouse gases from the burning of fossil fuels.
But there was other news in the IPCC report as well—and a lot of it had to do with water. For example, the report confirmed that mountain glaciers and snow cover have declined on average in both the northern and southern hemispheres. It also found that more intense and longer droughts have been observed over wider areas since the 1970s, particularly in the tropics and subtropics.
And that just covers what has happened to date. The IPCC also issued projections for the decades ahead. And, again, the news is not good. Global temperatures, according to the report, will rise by 3.2 to 7.2 degrees Fahrenheit by 2100, and sea levels will rise one-half to two feet. In addition, there is a 90-percent or greater chance that the world will see more hot extremes, heat waves and heavy precipitation events. And it is likely that we will see more droughts as well.
There it is: the dreaded D-word. The likelihood of more droughts is an obvious concern for people across the Southwest. The American Meteorological Society held a briefing on the IPCC report the other week in Washington, and Dr. Richard Seager of Columbia University made some very sobering points.
He said the report essentially confirms that the southwestern United States began a transition to a drier climate at the end of the 20th century, and that a new, drier climate is, in fact, well established as the 21st century gets under way. According to state-of-the-art models, conditions approximating a perpetual 1950s-style drought are likely to become the new climate of the Southwest in the decades to come.
In other words: If you want to keep a garden in New Mexico, and if you're not into xeriscaping now, there is a 90-percent or greater chance you will be soon. There is no doubt about it: the changing climate will have serious implications for the Southwest. It will affect development, the allocation of water resources, cross-border relations with Mexico, everything.
And that's just the forecast for the Southwest. Looking more broadly, the most recent IPCC report confirms beyond any reasonable doubt that climate change is a real problem, that it is caused in large part by human activity, and that it will accelerate in the years to come. If there is any silver lining in the contents of this report, it is this: the IPCC has provided the latest in a long line of scientific studies and pronouncements that have helped to change the political landscape on this issue in favor of solutions. And that is what I would like to talk about during the remainder of my remarks.
In his January State of the Union address, President Bush called global climate change a "serious challenge." And, while his answers to the challenge fall far short of doing what's needed, it is a remarkable rhetorical (and political) u-turn for this White House to even acknowledge that this is a challenge, let alone a serious one.
The reason for the u-turn can be found in part, as I said, in the increasing scientific certainty about climate change. Every month, it seems, the scientific case for action has become stronger—to the point that no responsible, thinking person can any longer deny that this is a real problem.
But science is not the only force that has compelled this White House and others to see that it is in their political interest to go public with their concern about this challenge. Equally important, I believe, is the fact that this Administration has become politically isolated on this issue, as governors and congressional leaders have stepped up and not only acknowledged the challenge but tried to shape real solutions.
The announcement last week by the five Western governors is a perfect example of this. People are not happy about the lack of leadership on this issue from Washington, and they're setting out to fill the void.
Under the western governors' agreement, New Mexico would join with Arizona, California, Oregon and Washington to set a regional target for greenhouse gas emissions. And, by August 2008, the states will establish a market-based system to enable companies and industries to meet the target as cost-effectively as possible. These five states combined emit more carbon dioxide than Canada, while accounting for more than 11 percent of total U.S. emissions. So this is a significant achievement.
New Mexico also is one of 12 U.S. states that have adopted their own statewide targets for capping and, ultimately, reducing their greenhouse gas emissions. And New Mexico's are among the most ambitious targets out there--emissions will reach 2000 levels by 2012, they will be 10 percent below 2000 levels by 2020, and 75 percent below 2000 levels by 2050.
In December, Governor Richardson signed an executive order to help the state reach its targets. Among the steps he approved were the creation of a greenhouse gas registry, advances in technology to capture and store carbon emissions from power plants, and the promotion of renewable fuels.
New Mexico is the first major coal, oil and gas-producing state to set targets like these. New Mexico also is working with its neighbors in Arizona on a plan called the Southwest Climate Change Initiative. The goal: to pursue collaborative opportunities to reduce emissions.
The residents of this state deserve to be proud of all of the forward-looking things that are happening right here to address climate change. But New Mexico is not alone among the states. Over the past several years, lawmakers from coast to coast have been embracing new programs and policies to reduce their states' greenhouse gas emissions.
California, like New Mexico, established an ambitious greenhouse gas emissions target—and California has gone the next step and passed legislation, with real enforcement, to give the targets the force of law. California also has taken steps to begin regulating carbon dioxide emissions from cars and trucks (a policy that 10 other states are poised to follow if it survives a legal challenge from the automakers). If the courts uphold it, California's new standard for vehicles will reduce annual greenhouse gas emissions in the state by 30 million tons by 2020.
Many, many states are taking steps to rein in their emissions. For example, 22 states, including large emitters like Texas and California, have required that electric utilities generate a specified amount of electricity from renewable sources. Twenty-eight states have climate action plans.
And other states are working across their borders in the same spirit as New Mexico and its western neighbors. Seven Northeastern and Mid-Atlantic states have signed their own regional initiative. Known as RGGI, it is aimed at reducing carbon dioxide emissions from power plants in the region.
Now, you might think that one state's actions could not possibly affect a global problem like climate change. But if you combine the RGGI states with the five western states that are taking collaborative action, that's 22 percent of U.S. emissions that could soon be subject to emission targets under a market-based system. If all of these states were a single country, they would be the fourth largest emitting nation in the world. And consider this: California's emissions exceed those of Brazil. Texas comes out ahead of Canada, the UK and Mexico. And Illinois produces more CO2 than the Netherlands.
States are a significant part of the climate problem, and many of them are showing they can be a significant part of the solution as well.
The states also are showing that it is politically possible to take action on this issue. In November, Governor Richardson was reelected to office with the support of 69 percent of New Mexico voters. It was the largest margin of victory for any governor in the history of the state. Think his support for serious action on climate change hurt him at the polls? Doesn't look like it.
The same goes for California Governor Arnold Schwarzenegger. Polls have confirmed that his strong support for climate action helped him enormously with California voters in the 2006 election. The governor won the election with a strong 56-percent majority of the vote, vs. 39 percent for his Democratic opponent.
So, yes, the politics of climate change are different today. And it is not only because state leaders are stepping up and advancing solutions to the problem. Business leaders, too, have gotten into the act—making the case that it is possible to protect the climate while also protecting—and, in many cases, advancing—our goals for economic growth.
At the Pew Center, we work with a council of leading businesses that are committed to protecting the climate. Our Business Environmental Leadership Council began with 13 companies; it now includes more than 40 companies representing more than 3 million employees and with a combined market value of over $2.4 trillion. Members include a who's who of U.S. corporate leadership, from Alcoa and GE to IBM and Intel, and many more. What are these companies doing to protect the climate? Here are a couple of examples: Over the last 20 years, Alcoa has reduced the electricity required to produce a ton of aluminum by 7.5 percent. Another Council member, IBM, has instituted energy conservation measures that resulted in a savings of 12.8 billion kilowatt hours of electricity between 1990 and 2002. The resulting reduction in carbon dioxide emissions: 7.8 million tons. And the resulting savings to the company's bottom line: $729 million in reduced energy costs.
We can't cut emissions? These companies don't think so. And they're showing it's possible to do so in ways that do not compromise economic growth.
For many if not all of these companies, addressing climate change is about both opportunity and risk. Many business leaders see real risks to their operations from climate change. According to the global insurance giant, Allianz, climate change already is increasing the potential for property damage at a rate of between 2 and 4 percent every year. Tourism, agriculture, insurance, finance … all of these industries (and more) face serious and compelling risks. And consider the risks for electric utilities and other businesses that do nothing to address this issue now—and then are forced to play a costly game of catch-up down the road as governments finally (and inevitably) get serious about reducing emissions.
On the other hand, there are also many obvious opportunities tied to developing and deploying new and emerging low-carbon technologies. GE, for example, has committed to doubling its investment in environmental technologies to $1.5 billion by 2010. That is the equivalent of starting a new Fortune 250 company focused exclusively on clean technology.
Ten years ago, corporate America was a reliable ally for those opposed to any kind of serious action to address climate change. Well, that's just not the case any more. And, in fact, many of the companies we work with are combining independent, voluntary action to reduce their emissions and develop climate-friendly technologies with high-profile public support for new policies to protect the climate.
Just last month, several of the businesses on our Council joined with the Pew Center and others in a high-profile appeal for U.S. government action to address climate change. The group is known as the U.S. Climate Action Partnership, and this wasn't just a blanket call for government to do something. Rather, the USCAP group issued a specific proposal with specific targets and timetables—a real plan of action to slow, stop and reverse U.S. emissions.
Among the companies that were part of this unique call-to-action was Albuquerque's own PNM Resources. PNM, of course, is the energy holding company whose utility and energy subsidiaries provide power to 941,000 homes and business in New Mexico and Texas.
Now, think for a moment about how an announcement like this changes the political landscape on this issue. When Fortune 500 CEOs take a stand for policies that in the past were tagged by private sector leaders as extreme or unwarranted, and worse, it moves the politics to a new place. Like the state leaders who have come out in favor of strong and effective policies, the business leaders we're working with are sending a clear message to Washington, and the message is this: We must act to address this issue now, and we can do it without putting our economy at risk.
And Washington, finally, is beginning to listen. Beyond the President's rhetorical bows to climate change, our nation's elected leaders are laying the groundwork for substantive action on this issue in the months and years ahead. In 2005, the U.S. Senate passed a bipartisan measure calling for a national, mandatory, market-based program to slow, stop and, ultimately, reverse the growth in U.S. greenhouse gas emissions. Although the measure was nonbinding, it marked the first time the Senate has gone on record to support mandatory action on this issue.
And now, there is a new Congress in place with leaders who are strong supporters of climate action. The change at the top of the U.S. Senate committee with jurisdiction over climate change is a case in point. Gone as chairman is Senator James Inhofe of Oklahoma, who infamously referred to climate change as a quote-unquote "great hoax." Replacing him is Senator Barbara Boxer of California, who could not pose more of a contrast as author of one of the most aggressive climate bills yet introduced in Congress.
In addition to Senator Boxer at the head of the Environment and Public Works Committee, we now have a Senate Majority Leader and a Speaker of the House who consistently have supported mandatory climate action. And we have leaders of other key committees on both sides of Capitol Hill who have expressed their support for action.
House Speaker Nancy Pelosi has signaled her intention to have the House pass a climate bill by July 4. And the biggest political development of the year on this issue may be that Congressman John Dingell of Detroit now agrees that it's time to act.
As chairman of the powerful House Committee on Energy and Commerce, Congressman Dingell has long been considered an obstacle to serious action on climate change. But now he is saying that his committee will report a bill by early June. And his support for action, I believe, is very likely to bring in other Democrats who have been less than enthusiastic, and more Republicans too.
What all of these developments point to, if all the stars align, is a so-called "cap-and-trade" bill emerging from Congress, potentially before the 2008 elections. In the Senate alone, there are currently five bills proposing some form of cap-and-trade program for greenhouse gas emissions
Cap-and-trade, as most of you know, is a policy that requires emissions reductions while allowing companies to trade emission credits. The most important benefit of this approach: it establishes a value for emissions reductions, as well as an economic advantage for technologies that can achieve them.
The cap-and-trade model already has proven successful in this country in reducing emissions of the pollutants that cause acid rain. We know it can work. Cap-and-trade, in fact, is how California intends to achieve its emission targets. It is also the basis for the multi-state plans I mentioned here in the West and back East as well.
So there is, in fact, a great deal of movement on this issue in Washington. And there is additional pressure for solutions due to the upcoming 2008 Presidential contest. (Well, I suppose you can't call it an "upcoming" contest anymore—sadly for all of us, it is already well under way).
In any case, on the Democratic side you have a number of candidates who have pledged to make climate change an important part of their platforms. And, among the Republicans there is U.S. Senator John McCain, who co-wrote the first cap-and-trade bill in the U.S. Congress way back in 2003. Conveniently, his measure currently is co-sponsored by two colleagues named Obama and Clinton (meaning we could see at least one point of agreement during the 2008 presidential debates).
Given the support for climate action among these high-profile contenders for President, I believe that the words "cap and trade" will become an important part of the political dialogue in this country in the lead-up to the 2008 election. And I also believe that, given the changed politics on this issue, it is plausible that the United States could have this kind of mandatory policy in place by 2008, and it's likely we will have such a policy by 2010.
But implementing a cap-and-trade policy, while critical, is not all we need to do. We need a wider range of policies. We need to invest in research to develop some of the most critical, long-term, climate-friendly technologies. And we need policies to ensure that technologies that reduce emissions can gain a solid foothold in the marketplace.
And then there are policies aimed at specific sectors of the economy. For example, governments around the world have adopted more stringent policies than the United States to reduce tailpipe greenhouse gas emissions and/or increase the fuel economy of cars and trucks. Even China has higher standards than we do. If all of these countries are doing this and we aren't, that says to me that it's possible—that, despite the automobile companies' resistance, technologies exist to reduce emissions from this sector. And by adopting tougher but reasonable standards, we can hasten the rollout of cost-effective, commercially available technology to reduce vehicle emissions.
It is also going to take international policies. This, too, is not in question. Climate change is a global problem requiring global action. Even if we were to get smarter about reducing the United States' contribution to climate change, global energy use will continue to surge and climate change will remain a significant threat. We cannot protect the climate without a global framework that enlists all countries to do their part to reduce emissions, and that provides poorer countries with the support they need to do so.
And, in fact, a number of countries around the world already are taking action on this issue, which is another factor that has changed the political landscape here in the United States. The European Union, for example, has adopted its own emissions trading scheme. And countries like the United Kingdom have embraced ambitious goals for reducing their emissions and developing low-carbon energy sources.
While all of these other countries are moving forward, however cautiously, and trying to figure out how to reduce their emissions, the United States until now has remained largely on the sidelines. And we have remained on the sidelines despite the enormous risks that climate change poses for our economy—and the enormous economic opportunities as well.
As both the risks and the opportunities become clearer to U.S. leaders, the political landscape will continue to change. And we will see our country come around, once and for all, and embrace real action to protect the climate—and to ensure that our water supplies and other resources are protected as well.
And, by real action, I am talking about more than a prevention-only approach. Although reducing greenhouse gas emissions is critical to limiting the ultimate damage caused by climate change, it is clear that we must also adapt to what is already here and coming in the near future. The latest IPCC report tells us that, even if we stopped emitting greenhouse gases today, the average temperature of the earth would continue to rise significantly for decades to come, precipitation patterns would continue to change, and sea level would continue to rise for hundreds of years because of the inertia in the climate system. Obviously, we will not stop emitting greenhouse gases today, so the changes to come will be significant. We are going to have to adapt.
By reducing your water demand, you—the xeriscape community—are in the vanguard of the grassroots adaptation movement. But in the same way that voluntary action alone is not enough to prevent the worst effects of climate change, voluntary action alone will not ensure we can adapt. There is an essential role for government and public policy, including lots of planning at the local and state levels for droughts, storms, water shortages, extreme heat and other consequences. Water supplies, storm drainage, peak power capacity, emergency care and relief systems, evacuation planning—all of these and more will have to be enhanced.
There will be large costs associated with adaptation but there will be no choice, as the alternative is simply to suffer. Fortunately, we do have an opportunity, through aggressive mitigation, to minimize both the ultimate costs of adaptation and the amount of human suffering that our children and grandchildren will have to endure in the future. Every dollar spent avoiding climate change will save more dollars spent later on adapting to and repairing the damage.
Looking forward, the challenge of reaching agreement on effective national climate policies is not all that different from the challenges you face as gardeners. We need to prepare the soil by making our opinions known. We need to turn all of these buds and shoots I have talked about into healthy, thriving plants. And we need to pay close attention to issues of design—how we design policies to work together in the most effective ways.
In closing, I will go back to the question posed by the child in the caravan of camels: "Are we there yet?" And the answer is, we are certainly not. But unlike the nomads in the cartoon, we at least have a clear destination. We just need to get going.
Thank you very much.
Speak Now or Forever Hold Your Peace: The Business World Looks at Climate Change
Full article available (PDF)
Building Solutions to Climate Change
November 2006
This In-Brief describes how the built environment can make an important contribution to climate change mitigation while providing more livable spaces. It concludes that with current technologies and the expansion of a few key policies, significant reductions in greenhouse gases can be realized in the near term. Furthermore, combining technology research and development with clear and sustained climate and energy policies would drive more dramatic reductions over time.
Download the In-Brief (pdf)
This In-Brief draws heavily on the Pew Center report entitled Towards a Climate-Friendly Built Environment.
Press Advisory: Pew Center Addresses Building Industry at Denver Conference
Media Advisory
November 16, 2006
Contact: Katie Mandes, (703) 516-0606
Pew Center Addresses Building Industry at Denver Conference
Denver, CO- Energy used in residential, commercial, and industrial buildings produces about 43 percent of U.S. emissions of carbon dioxide, and these emissions are growing as Americans build more buildings and bigger homes. This makes the building sector the largest source of American emissions of the greenhouse gases (GHGs) that cause climate change. Numerous stakeholders have begun acting to address the built environment's role in climate change, and it is imperative that their commitment to green principles and innovation increases so that the building sector can reduce its contribution to climate change.
During a speech yesterday at the Greenbuild International Conference and Expo in Denver, Colorado, Eileen Claussen, President of the Pew Center on Global Climate Change, called on the building sector to play a more definitive role in America's efforts to address climate change. "Building standards need to be strengthened and we need to factor the very real threat of climate change into every new building that is constructed. Low or zero emission buildings should be our goal." Ms. Claussen challenged the sector to provide the foundation for U.S. climate solutions. The speech was given in conjunction with the release of a new In-Brief by the Pew Center entitled "Building Solutions to Climate Change."
The In-Brief describes how the built environment can make an important contribution to climate change mitigation while providing more livable spaces. It concludes that with current technologies and the expansion of a few key policies, significant reductions in greenhouse gases can be realized in the near term. Furthermore, combining technology research and development with clear and sustained climate and energy policies would drive more dramatic reductions over time.
Ms. Claussen implored the building community to take the lead in cutting emissions of greenhouse gases. "If we do it right, protecting the climate could mean new industries, new markets, and new jobs for localities, states, and nations that successfully position themselves as centers of innovation and technology development for a low-carbon world."
A copy of the latest In-Brief, "Building Solutions to Climate Change," is available on the Pew Center's web site, www.c2es.org.
The Pew Center was established in May 1998 by The Pew Charitable Trusts, one of the United States' largest philanthropies and an influential voice in efforts to improve the quality of the environment. The Pew Center is an independent, nonprofit, and non-partisan organization dedicated to providing credible information, straight answers, and innovative solutions in the effort to address global climate change. The Pew Center is led by Eileen Claussen, the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs.