SETTING THE STANDARD IN GREENHOUSE GAS MANAGEMENT

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CLIMATE LEADERS
SETTING THE STANDARD IN GREENHOUSE GAS MANAGEMENT
Corporate Climate Change Strategy Components of
an Effective GHG Management Plan
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Climate Change is an Important Strategic Issue
for Companies

• 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

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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

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The Company We Keep
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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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Inventory Management PlanInternal Benefits

• EPA review of a companys 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

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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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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
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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
• Public Service Announcements (PSAs) in mainstream
  consumer press
• 2006 PSA led to gt1 million in ad value

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Investor Rankings

• 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

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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
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Program Contact Information

• Jim Sullivan, Director
• [phone], sullivan.jamest_at_epa.gov
• Manuel Oliva, Inventory Reporting
• [phone], oliva.manuel_at_epa.gov
• Bella Tonkonogy, Goal Setting Reporting
• [phone], tonkonogy.bella_at_epa.gov
• Deb Berlin, Marketing Communications
• [phone], berlin.deb_at_epa.gov
• www.epa.gov/climateleaders