# Presentation: 947582

## CLIMATE LEADERS

**Corporate Climate Change Strategy**:
- Components of an Effective GHG Management Plan

## Shareholder pressure/fiduciary responsibility
42 resolutions in 2007 proxy season; CERES; CDP; GRI
Public interest increasing
News stories, magazines, movies
Employee satisfaction
Want to feel employer is 
	good corporate citizen
Save $$ – bottom line 
benefits
15-30% IRR for efficiency
Business opportunities
GE, DuPont, UTC, Wal-Mart
Become well-informed player in policy discussions
Much activity at the federal & state level

- 42 resolutions in 2007 proxy season; CERES; CDP; GRI
**Public interest increasing**
- News stories, magazines, movies
**Employee satisfaction**
- Want to feel employer is
- 	good corporate citizen
**Save $$ – bottom line **
**benefits**
- 15-30% IRR for efficiency
**Business opportunities**
- GE, DuPont, UTC, Wal-Mart
**Become well-informed player in policy discussions**
- Much activity at the federal & state level

- Climate Change is an Important Strategic Issue for Companies

## Credible Corporate Climate Strategy

- Climate Leaders works with companies to develop a long-term comprehensive GHG management strategy
- Road-tested with over150 partners from every major sector across the country
- 3 critical components to credible strategy
- Complete Corporate-Wide GHG Inventory
- Develop Inventory Management Plan (IMP)
- Set Aggressive Corporate-Wide GHG Reduction Goal
- Annual reporting to EPA creates lasting record of accomplishments and identifies company as corporate environmental leader
- Total annual U.S. revenue of the partnership represents 9 percent of the U.S. Gross Domestic Product and 8 percent of total annual U.S. GHG emissions

## The Company We Keep

## Program Participation Steps

**Partner Joins Program**

**EPA assists Partner in developing inventory and inventory **
**management plan (generally within 1 year)**

**Partner reports annual inventory data to EPA and documents **
**progress toward goal**

**Partner may participate in meetings, public outreach, **
**press events, etc.**

**Partner sets corporate wide 5-10 year GHG reduction goal, **
**domestic or global**

**Partner Achieves Goal**

## First Component:Develop a Customized Inventory  

*Based on International WRI/WBCSD GHG Protocol*
- Required
- Corporate-wide (all U.S. operations)
- 6 major GHGs
- Direct emissions
- Indirect emissions from electricity, heat, and steam
- Optional
- International operations
- Offset projects
- Employee travel and commuting
- Product transport

## Second Component:Create an Inventory Management Plan

- EPA provides checklist of components for good IMP to use as guideline when preparing documentation
- EPA offers technical assistance to help companies complete IMP documentation

*Institutionalizes process*
- Partners develop and implement an IMP or a similar collection of Standard Operating Procedures and document process for EPA

## Inventory Management PlanInternal Benefits

-     EPA review of a company’s IMP provides assurance that Partners develop a high-quality inventory that is consistently maintained and updated over time
- Institutionalizes inventory process
- Leads to comprehensive & credible data management
- Increases efficiency/lowers costs by centralizing processes
- Increases accuracy and transparency
- Facilitates long-term emissions/goal tracking
- May facilitate documentation of capital savings
- Allows for continual improvement

## Ensuring Credibility of Inventory Data and Management Process

- EPA technical assistance for inventory/IMP development and reporting process
- Desktop reviews of corporate level inventory data and how IMP components are addressed
- Onsite review of implementation of IMP
- CL does not offer third-party verification, but meeting reporting requirements will ensure that credible/verifiable inventory process is in place
- Third-party verification option (must meet same criteria as CL reporting requirements)

## Third Component:Set an aggressive, long-term GHG reduction goal

- EPA offers flexibility in setting a GHG reduction goal because every company has a unique set of emissions sources and reduction opportunities. The goal must be:
- Corporate-wide (domestic or global)
- Based on the most recent base year for which data is available
- Achieved over 5 to 10 years
- Expressed as an absolute GHG reduction or as a decrease in GHG intensity
- Aggressive compared to the projected GHG performance for the Partner’s sector
- Climate Leaders publicizes goals through a national advertising campaign, web site, marketing materials and speaking engagements

## Free Technical Assistance

- Climate Leaders provides expert technical assistance to:
- 	Understand the Climate Leaders GHG Protocol
- 	Create a high-quality GHG inventory
- 	Develop an inventory management plan

## National Public Recognition

- Climate Leaders Partners
- receive high-level recognition via:
- Press events
- Page on CL web site
- Articles in local, national, and trade magazines
- Partner conferences, newsletters, speaking opportunities
- Public Service Announcements (PSAs) in mainstream consumer press
- 2006 PSA led to >$1 million in ad value

## Climate Leaders participation contributes to positive investor measurements of corporate action on climate change:

Carbon Disclosure Project
Backed with $40 trillion in assets from 280 global
 investors

Ceres Climate Change Governance Checklist 
Ranks 100 companies from most carbon-intensive sectors 
on a 100 point scale 
March 2006: Partners top list in 6 of the 10 sectors

KLD Global Climate Index, Calvert Funds 	
Climate Leaders participation is one criteria for inclusion

**Carbon Disclosure Project**
- Backed with $40 trillion in assets from 280 global
-  investors
**Ceres Climate Change Governance Checklist **
- Ranks 100 companies from most carbon-intensive sectors
- on a 100 point scale
- March 2006: Partners top list in 6 of the 10 sectors
**KLD Global Climate Index, Calvert Funds**** **
- Climate Leaders participation is one criteria for inclusion

- Investor Rankings

## Benefits of Partnership

- Reduce impact on the global environment
- Better manage greenhouse gas emissions and associated risks
- Realize cost savings through energy efficiency
- Receive expert EPA technical assistance on inventories
- Participate in national public recognition campaigns
- Engage with other partner companies demonstrating climate leadership
- Access the latest GHG tools, technologies & protocols
- Improve understanding of critical policy discussions
- Integrate climate change strategies with State, Regional, and International GHG accounting schemes

- Every year the Climate Leaders partnership prevents the equivalent of the emissions of more than 7 million cars from entering the atmosphere

## Program Contact Information

- Jim Sullivan,  Director
- (202) 343-9241, sullivan.jamest@epa.gov
- Manuel Oliva, Inventory & Reporting
- (202) 343-9094, oliva.manuel@epa.gov
- Bella Tonkonogy, Goal Setting & Reporting
- (202) 343-9183, tonkonogy.bella@epa.gov
- Deb Berlin, Marketing & Communications
- (202) 343-9231, berlin.deb@epa.gov
- www.epa.gov/climateleaders