SETTING THE STANDARD IN GREENHOUSE GAS MANAGEMENT

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CLIMATE LEADERS
SETTING THE STANDARD IN GREENHOUSE GAS MANAGEMENT
Indiana P2 Conference September 16, 2009 Melissa
Hulting, U.S. EPA Region 5
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What is Climate Leaders?

• Climate Leaders is a voluntary EPA program to
  assist companies in reducing their greenhouse gas
  emissions.
• Climate Leaders works with companies to develop
  credible corporate GHG strategies.
• 3 critical components to credible GHG 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

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What are the benefits to your company?

• Why should you join?
• Free technical assistance for inventory and
  reporting
• A credible GHG inventory and reduction goal
• Public recognitionIdentifies your company as a
  corporate environmental leader

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Who are our Partners?

• Over 280 Partners of all sizes in many sectors,
  with operations in all 50 states
• Half are Fortune 500 companies, but the number of
  small and medium-sized companies is growing
• Total annual U.S. revenue of Partners represents
  12 of the U.S. Gross Domestic Product
• Largest corporate greenhouse gas goal-setting
  program, with over 8 of U.S. GHG emissions
• Goals pledged in program reduce annual emissions
  equivalent to 9 million cars

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Growing Popularity of the Program

• 100 companies joined the program in 2008, and we
  are on target to have just as many join in 2009.
• Administrations attention on climate change and
  energy use
• Many companies are joining to understand and
  manage their carbon footprint, then set a
  reduction goal to lessen their impact on the
  global environment.

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The Company We Keep
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The Company We Keep In INDIANA!!!!

• "Cummins joining Climate Leaders is the right
  thing to do from both a stewardship and business
  perspective. Businesses like Cummins can and
  should take concrete steps to assess
  opportunities for emissions reductions, establish
  and meet emission reduction objectives and invest
  in new, more efficient products, practices and
  technologies. Christine Vujovich, VP, Marketing
  and Environmental Policy.
• The EPA Climate Leaders program is an excellent
  forum for Peerless to proceed with our
  environmental improvements and goals. The very
  nature of our products enable us to play a
  leading role in saving tons of carbon each year
  by the selection and optimum design of our
  premium high volume water movement systems.
• Berry Plastics is committed to managing our
  carbon footprint through five sustainability
  focus areas within our corporation emissions,
  energy, waste, materials, and packaging. Joining
  EPA's Climate Leaders program will allow Berry
  Plastics to establish our emissions baseline and
  create a corporate strategy around emissions
  reduction.

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Program Participation Steps
Partner Joins Program
EPA assists Partner in developing inventory and
inventory management plan (generally within 1
year)
Partner sets corporate wide 5-10 year GHG
reduction goal, domestic or global
Partner may participate in meetings, public
outreach, press events, etc.
Partner reports annual inventory data to EPA and
documents progress toward goal
Partner Achieves Goal
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First ComponentDevelop 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

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Second ComponentCreate an Inventory Management
Plan
Institutionalizes process Partners develop and
implement an IMP or a similar collection of
Standard Operating Procedures and document
process for EPA

• 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

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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)

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Third ComponentSet 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 Partners sector
• Climate Leaders publicizes goals through a
  national advertising campaign, web site,
  marketing materials and speaking engagements

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Types of GHG Reduction Goals

• Absolute
• Applied Materials pledges to reduce total global
  GHG emissions by 20 percent from 2006 to 2012.
• Normalized
• Interface, Inc. pledges to reduce U.S. GHG
  emissions by 15 percent per unit of production
  from 2001 to 2010.
• Index
• Ball Corporation pledges to reduce total U.S. GHG
  emissions by 16 percent per production index from
  2002 to 2012.
• Net Zero (Carbon Neutral)
• Melaver, Inc. pledges to achieve net zero U.S.
  GHG emissions by 2006 and maintain that level
  through 2009.

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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
• Special advertising opportunities in Forbes, Natl
  Geo, Economist
• Public Service Announcements (PSAs)
• 2007-8 campaign audience gt10 million in Forbes,
  Kiplingers, Audobon, Fast Company

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Program Positioning

• External
• Largest greenhouse gas goal setting program
• Other initiatives are registries
• Internal
• Energy Star and GPP can be components of Climate
  Leaders
• Many voluntary programs are looking at climate
• CL will operate as a complement to
  legislation/regulation

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Corporate Benefits

• Cost savings from energy efficiency IBM has
  saved 74 million from 2002-2006
• Preparation for regulation, understanding of
  policy
• Engage with other partner companies demonstrating
  climate leadership
• Credible climate management strategy
• Internal support and alignment for environmental
  goals
• Good corporate citizen important to
  shareholders, customers, employees
• Green reputation

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Investor Rankings

• Benefits of Climate Leaders participation in
  investor measurements of risk
• Carbon Disclosure Project
• Backed with 57 trillion in assets from 385
  global
• investors
• Dow Jones Sustainability Index, KLD Global
• Climate Index, Calvert Funds
• Climate Leaders participation is one criteria for
  inclusion
• Climate Counts Scorecard
• Climate Leaders participation avoids the red
  zone

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New for 2009

• Free webinar series www.epa.gov/climateleaders/ev
  ents
• Offsets guidance and project checklist
• Meetings and conferences guidance
• Annual conference for Partners December in DC
• Agenda of new Administration

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Contact Information

• Melissa Hulting
• EPA Region 5 Climate Change Coordinator
• [phone]
• hulting.melissa_at_epa.gov
• Verena Radulovic
• EPA Climate Leaders
• [phone]
• radulovic.verena_at_epa.gov
• www.epa.gov/climateleaders