Transcript 022802GGPARR (Title of speaker`s segment goes here)

The Journey to Sustainable
Growth:
DuPont’s Energy and Greenhouse
Gas Reduction Goals
(Image or color to replace
gray area)
Michael Parr
NGA Workshop
February 28, 2002
•DuPont delivers Science-based solutions...
– Food & Nutrition
– Health Care
– Apparel
– Home & Construction
– Electronics
– Transportation
•From a global company
– 94,000 employees in 70 countries
– 200 facilities in the US
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Sustainable Growth
“Creating shareholder and societal value while
decreasing our environmental footprint”
…. along the value chain
Chad Holliday - 1999
NGA Workshop
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DuPont and Climate Change
• Shaped by active participation in global scientific effort
(IPCC)
• Involvement began with ozone depletion
• Concluded in 1991 that there is cause for concern
• Analyzed DuPont emissions profile
– Large CO2 emissions despite decades of energy efficiency gains
– Significant N2O, CFC-23 emissions
• Contributing to the problem.
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DuPont Climate Change Goals
• Established goals for 1990’s to:
– Reduce global GHG emissions 50%, focus on non-CO2 gases
– Increase energy efficiency by 15%, continues decades of effort
• Driven by
– Science of climate change
– Recognition of DuPont’s “environmental footprint”
– Goal of sustainable growth
– Desire to contribute to the solution
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How Have We Done?
• Reduced greenhouse gas emissions from operations
>60% globally
• Energy consumption flat, despite 36% increase in
production volume
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%
‘90
DuPont Early Reductions
+50
BAU
+25
0
-25
Impact of DuPont
Early Actions
-50
-75
1990
1995
2000
2005
2010
2015
%
‘90
DuPont Early Reductions
+50
BAU
+25
0
-25
Impact of DuPont
Early Actions
-50
Environmental
Benefit
-75
1990
1995
2000
2005
2010
2015
%
‘90
DuPont Early Reductions
+50
BAU
+25
0
-25
Impact of DuPont
Early Actions
-50
Credit?
-75
1990
1995
2000
2005
2010
2015
How’d We Do That?
Greenhouse gases
•Nitrous oxide abatement in adipic acid process
•HFC23 abatement in fluorochemical process
Energy Efficiency
• 1/2 gains from efficiency projects, powerhouse
modernization
• 1/2 gains from changes in our processes and product mix
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Marginal Cost of Greenhouse Gas Reduction Projects
Greenhouse Gas
Reduction
+
+
+
+
+
*
*
Priority For Investment
*
Cost
Environmental
Benefit
The “80-20” Rule
100%
80%
You accomplish 80%
of the environmental
benefit with the first
20% of costs.
60%
40%
20%
20%
40%
60%
80%
100%
Cost
Goals For The Current Decade
• Reduce global carbon equivalent emissions by 65% using 1990 as a base
year
– Kyoto basket
• Hold total energy use flat using 1990 as a base year
– More “knowledge-intensive” products
– Reaching practical limits on yield and utilization gains
• Source 10% of our global energy in 2010 from renewable resources
– Heavily dependent upon external forces to ensure competitive pricing
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DuPont Kyoto Greenhouse Gas Reductions 1990 - 2010
30.0
25.0
Million metric tons carbon equivalents
PFCs &
Other HFCs
20.0
HFC-23
15.0
59% Reduction
65%
Reduction
N2O
10.0
5.0
Indirect CO2
Direct CO2
0.0
1990
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1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2004E
2010E
Why Are We Doing This?
•Climate change poses a serious long term challenge
•The human community will respond to that challenge
•That response will have dramatic economic implications
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A LONG TERM ISSUE
Concentration
(ppmv)
1000
Kyoto
Protocol
Potential Concentration Targets
Stabilization at:
1000
800
650
600
2X PreIndustrial
450
400
2000
Total
Emissions
( CtC/yr)
20
2100
2200
Related Emission Pathways
“Business as usual”
15
10
Total
current
emissions
Toward
Stabilization
at:
1000
5
Developing
country
emissions 0
650
450
2000
2100
2200
Our Business Challenge...
To Position DuPont for the Future
• Get ahead of the curve
– Ensure that DuPont businesses are positioned to
compete globally in a market place increasingly
dependant upon getting more from less
• Position our businesses to be part of the solution
– Gain the insight, and experience to help our industries
and our customers prosper in that market place
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The Interlocking Values of
Sustainable Growth
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