Transcript GEMI Benchmark Survey Water Use, Issues & Management

GEMI Survey
Climate Change – Where Do We Stand?
March 2003
Carl Wirdak
Occidental Petroleum Corporation
Outline
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Survey Recap
Strategies
Goals
Inventories
Voluntary Initiatives
External Organizations
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Survey Overview
• Survey addresses the topic of climate change
as it applies to a company’s business activities
• Survey response rate = 50%
– Augmented with information from other GEMI
member websites (brings response to 75%)
– Not all companies completed all questions
• Broad industry coverage
• Thank you to all participants!
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Strategy Overview
climate
change
strategy
86%
strategy
within 2
years
7%
no plans
for
climate
strategy
7%
• Survey defined strategy broadly
– requires conscious decision to link current or future plans
and action to the climate change issue, but…
– no prescribed elements, format or scope
• 28 of 30 GEMI companies have or will have a
climate change strategy within 2 years
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Strategy Basis
• Why do companies have a climate change
strategy?
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.
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ie
n
O
th
er
Sc
y
Is
su
e
t.
A
Ke
50%
M
gm
Bu
s.
C
as
e
en
Pr
ud
75%
Em
be
dd
ed
100%
25%
0%
Science doesn’t drive actions
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Strategy Elements
• Top tier – “no
regrets” actions
Energy efficiency
Voluntary initiatives
GHG inventory
Public reporting
• Middle tier – tough
stuff that takes real
$$ to do
Prod/Serv redesign
GHG reductions
Fuel switching
`
R&D
• Bottom tier – mostly
Kyoto driven, but
since it hasn’t been
ratified…
Credits / trading
Sequestration
Kyoto alignment
External verification
JI / CDM
0%
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25%
50%
75%
100%
6
Strategy Adoption
2000+
97-99
94-96
90-93
Pre 1990
0
2
4
6
8
10
12
14
• Climate strategies are a recent phenomena
• In nearly every case, the strategy applies
across the company
• Strategies sanctioned by Board = 23%
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Public Communication of Position
Number of Companies
Climate Change Strategy
• Companies with
a climate
change strategy
communicate
their position
• Absence of
discussion does
not mean that
there is no
climate change
strategy
3
23
3
1
No
Yes
Communicate Position Publicly
No. of companies = 30
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Goals
• 73% of the GEMI
companies with a
climate change
strategy have
associated goals
• Preference is for
numeric goals
• 90% of those
companies that
have goals disclose
them publicly
Type of goals
Vs. Baseline
Normalized
Energy Eff.
Absolute
Qualitative
Numeric - other
0%
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25%
50%
75%
No. of companies = 19
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Climate VISION
• Feb. 12, 2003 - Bush administration
announces agreements in which companies
will voluntarily meet targets to reduce, avoid,
or sequester greenhouse gas emissions
• Climate VISION = Climate, Voluntary
Innovative Sector Initiatives: Opportunities
Now
• 16 GEMI companies indicated that they are
part of an industry association that pledged
support
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Inventories - Overview
Inventory
Business
unit
17%
No
inventory
13%
Baseline Year
2002+
22%
Pre 1990
4%
1990-1993
13%
1994-1997
17%
Companywide
70%
1998-2001
44%
>85% of firms have inventories and most use recent baselines
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Inventory - Gases
# of GHGs in
inventory
100%
75%
Six
31%
One
38%
50%
25%
Three
19%
0%
CO2
CH4
N2O
HFCs
PFCs
SF6
Two
12%
• Carbon dioxide is most common GHG in
company inventories
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Inventories - Scope
• Electricity / energy
production (direct
and indirect) and
processing are top
categories
• Just over half of the
companies that
assemble a GHG
inventory use a
published protocol
Activities considered in inventory
Production of heat, electricity
and steam
Indirect emissions
Physical or chemical processing
Fugitive emissions
Materials transport by company
Employee commuting
Employee business travel
Third party transportation
0%
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20%
40%
60%
80% 100%
13
Voluntary Initiatives
• 24 of the 30 GEMI companies included
in the survey participate in voluntary
climate change initiatives
Climate VISION
Pew Climate Change
EPA Climate Leaders
API climate initiative
EPA Green Power Partnership
ACC climate initiative
EPA WasteWise
Australian Greenhouse
Challenge
EPA SmartWay Transport
Canada, UK, Netherlands
programs
DOE 1605b
BRT Climate RESOLVE
NJDEP GHG Action Plan
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Voluntary Programs - Incentives
• What’s in it for
companies that
participate in
voluntary climate
change programs?
Stakeholder relations
Company PR
Org. learning
Investor relations
– Enhances
Technical assistance
relationships with
Marketing
variety of external
constituents
Create credits
– Helps company learn
Other
how to deal with the
0%
specific issues
– Other benefits
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20%
40%
60%
80%
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External Organizations
U. S. Department of Energy
13
2
0
U. S. EPA
13
1
1
World Resources Institute
12
1
1
EPA Climate Leaders
10
3
0
WBCSD
8
2
1
Nature Conservancy
7
2
1
Pew Center
5
4
1
• Results of poll
ranking 29 NGOs
and other
organizations
• Screened to show
only those receiving
votes from at least
½ of survey
respondents
• Not helpful
– CERES
– Greenpeace
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Information Sources
Common
What are the top web sites?
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•
•
•
Dept. of Energy
EPA
GEMI
World Resources Institute
• Pew Center
• WBCSD
• United Nations Environment
Program
Less common
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External Inquiries
No
response
8%
• Carbon Disclosure Project
– www.cdproject.net
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•
•
•
Target: FTSE 500
CEO was recipient
SRI fund backing
24 of 30 GEMI companies
received questionnaire
Full
response
46%
Partial
response
46%
• Innovest Advisors - summary report
– Most companies (80%) acknowledge risks
– Most have not informed shareholders of financial risks
– Companies that take steps to address climate change can
mitigate losses and even gain competitive advantage
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Climate Change Nuggets
• There’s a “rising tide” of company climate
strategies
• Resistance to goals is “thawing”
• Public disclosure is more than a bunch of “hot air”
• Most GHG baselines are “frozen” in year 2000
• GHG emissions inventories are a “gas”
• Companies have “warmed-up” to voluntary
climate-related initiatives
• The “heat is on” from external organizations
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Closing Comments
• Questions / comments / discussion
• June benchmarking will look at EHS
information management systems
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