Carbon Foresight

Greenhouse Gas Reporting in Ontario

2010-03-07T15:09:00.000-05:00

As North America attempts to address the issue of climate change, Ontario has begun efforts to implement a cap and trade system to reduce its greenhouse gas (GHG) emissions. A cap and trade system (also known as emissions trading), is a market-based mechanism that has the potential to reduce GHGs as well as foster economic growth and job creation. The theory is that market forces will determine the most efficient way to reduce GHG emissions – those that can reduce emissions most cheaply will do so, with the ability to sell those emission credits to others who may not be able to reduce emissions as cheaply. In a cap and trade system, the government sets a limit or cap on the total amount of GHGs that can be emitted from regulated facilities. Individual facilities are issued emission permits (or credits) that allow the permit-holder to emit specified amounts of GHGs. Permit-holders that increase their emissions must find a way to offset them. One way to do so is to buy credits from others. The transfer of credits is known as the ‘trade’. Over time, the limits are gradually reduced in line with the government's emission reduction and climate change goals.

As the reporting of GHG emissions is one of the initial steps necessary to implement such a system, Ontario filed a Greenhouse Gas Emissions Reporting Regulation in December 2009. Moreover, the Regulation is intended to align Ontario's proposed system with programs being developed in other parts of North America, including those by the Western Climate Initiative and the United States Environmental Protection Agency.

Commencing on January 1, 2010, the Greenhouse Gas Reporting Regulation applies to facilities in Ontario emitting greater than 25,000 tonnes of carbon dioxide equivalent per year from a list of identified sources. Facilities emitting between 10,000 and 25,000 tonnes will not be subject to the reporting requirements. But, the Ministry of the Environment plans to encourage smaller emitters to report emissions voluntarily to ensure that they are prepared to adapt to emerging North America-wide requirements.

Ontario's reporting threshold aligns with the U.S. Environmental Protection Agency's mandatory GHG reporting threshold of 25,000 tonnes of CO2 and the introduction of the American Clean Energy and Security Act to establish a cap and trade system. However, unlike the U.S. approach, Ontario does not currently regulate fuel suppliers to report emissions attributable to the combustion of their products in transportation, residential, commercial or other industrial sectors. The emitters (between 200 and 300 facilities) include general stationary combustion, electricity generation, and petrochemical production among others are required to report on 30 Greenhouse Gases listed in the Regulation for inclusion in their CO2 calculations. The various reporting requirements contained in the Regulation will be phased in over the next three years in order to allow facilities to develop the necessary capacity to comply with the standardized emissions quantification methods as well as third party verification requirements.

In response to a number of comments on the costs and administrative burden associated with third party verification of emissions data, the Ministry of the Environment says it will continue to look for ways to "streamline" the verification requirements, in accordance with its other cap-and-trade partners. It will also work with accreditation agencies and verification service providers to ensure sufficient capacity is in place when the verification provisions take effect in the 2011 reporting period. A number of concerns were also raised about the protection of confidential business information. The Ministry has removed from the final regulation data submission requirements that are "not essential for the design of a future cap-and-trade program or for a high level quality assessment of the reported emissions." In addition, much of the sensitive information does not have to be submitted, but can be kept on site by the company for audit by the Ministry.

In conclusion, the implementation of this Regulation may serve as a wake up call to companies who believed that the government would not intervene on the issue of climate change. Moreover, it may be to companies’ benefit as the development of sustainability strategies can result in energy saving which translate directly to their bottom line.

Sustainable Tourism

2010-02-15T11:07:00.002-05:00

There is no denying that tourism is a climate-dependent industry, and many destinations owe their popularity to their pleasant climates. Furthermore, clear evidence exists that climate change is impacting the tourism industry and that, simultaneously, the industry and tourists are contributing to climate change through fossil fuel consumption and consumptive behaviors. In an attempt to escape from the worry and stress of everyday life, tourists (on average) indulge in greater levels of consumerism. Research has revealed that tourists consume greater amounts of energy, water and materials while on vacation than they do at home.

If one takes into account the fact that about 1 billion people travelled internationally in 2009 and that this number is expected to rise to 1.6 billion by 2010, the severity and urgency of the problem becomes evident. Tourism is one of the world’s fasted growing industries (generating over 10.4% of global GDP) and so the issue of sustainability needs to be not only addressed, but resolved.

On a positive note, there is some evidence that shows the tourism industry is becoming more environmentally conscious. Consumers are beginning to comprehend the environmental implications of their own consumptive behaviors. The emergence of tourism-specific organizations such as Tourism Concern suggests a growing consumer awareness of the environmental consequences of tourism activity. With this new found knowledge, tourists are becoming more selective in their choice of destinations.

Meanwhile, a recent European Tourism Research Institute paper highlighted the business opportunity for operations that employ renewable energy and encourage reuse and recycling. And consequently, tourism operators are providing ecologically friendly alternatives for their clients. By incorporating more environmental and social sustainability principles into their business operations, these tourism operators are creating opportunities for product differentiation, enhanced brand image and stronger community stakeholder support that reduce business transaction costs.

Being green can translate into a tourist operator’s bottom line in several ways. When energy-saving measures are introduced, such as energy management systems, fluorescent bulbs, ceiling fans, motion sensors for public rest rooms and exercise rooms, energy bills are reduced. Also, when water-saving equipment and techniques are introduced, such as low-flow showerheads, 1.6 gpm dishwashing valves, and low-flow toilets, water bills are reduced dramatically. These measures can also have tremendous environmental implications as the average Canadian household uses 326 liters of water per day while a luxury hotel room guest uses 1800 liters of water per person per night! Lastly, waste hauling is a large expense for hotel operators which can be lowered drastically through recycling and avoiding wastefully-packaged products. The New Orleans Intercontinental started a recycling program and hired staff to separate their disposed materials. The hotel management was shocked to discover that employees were extracting $1,000 a month of hotel property (i.e. towels, spoons) out of the waste stream which had been discarded prior to the implementation of the program. In conclusion, such corporate sustainability actions eventually translate into a better competitive position that will bring guests back time and time again as well as a stronger ‘triple bottom line’.

Psssstt...Canada Sets 17% Carbon Emission Reduction Target From 2005 Levels

2010-02-09T11:46:00.009-05:00

In case you haven’t heard, the Canadian federal government officially informed the United Nations on January 30th that it has set a 17% reduction in carbon emissions from 2005 levels in the next 10 years. It is Ottawa's commitment to the Copenhagen deal on climate change.

Countries that attended the climate change conference in December were supposed to outline their own emission-reduction targets before the UN's final deadline of Jan. 31. The Copenhagen Accord, which isn't legally binding, offers money to developing nations to help them fight global warming, but it doesn't set new greenhouse gas reduction targets. Instead, countries are to set their own targets, without mandatory limits.

Canadian Environment Minister Jim Prentice pointed out that Canada’s target is similar to those set by the United States, which Ottawa had indicated it would follow during the Copenhagen conference. The United States, on January 28 officially stated a goal to cut carbon emissions by 17 per cent by 2020 off 2005 levels and said it “anticipated” that Congress would approve legislation to meet the target.

Canada and the US are unique in setting their targets against 2005 levels, as most nations, for instance, have set their reductions to be measured by the common UN standard of 1990 levels - the European Union has agreed to 20% carbon reductions from 1990 levels by 2020. US & Canada are in favour of a 2005 baseline as their carbon emissions have ballooned steadily since 1990. In fact, the US target is only 3.4% below 1990 levels. In Canada, the target actually increases emissions, not decreases them as the new target is 2.5 percent higher than the 3 percent cut over 1990 levels announced by Ottawa in 2006.

There hasn’t been much buzz about the target announcement, partly because it’s rather uninspiring and lacking in detail. Some say the low-key target is needed to harmonize regulations with the US to protect Canadian industries that are subject to competitive trade with US firms, while others say it seeks to protect the oil and gas industry in Alberta – where the oilsands contain the second-largest petroleum reserve in the world after Saudi Arabia with an estimated 174 billion barrels.

Despite the timid target, there is a greater recognition from industry and government of the climate change risk from environmentalists and ‘regular’ consumers who call oilsands’ crude “dirty oil" because of the amount of greenhouse gases that are produced when it's refined. In fact, environment Minister Jim Prentice recently told a Calgary business audience that while the Harper government supports continued expansion of the oilsands, large energy companies need to do more as Canada seeks to reach its targets under the Copenhagen climate change accord. He also acknowledged that “Canada risks becoming the international poster child of unsound resource development if it doesn't do a better job of developing the oilsands”.

Timid target or not, industry and government get the picture - a lower carbon economy is real and here to stay.

Greenhouse Gas Reporting – Here and Now.

2010-01-25T13:14:00.007-05:00

The future is now. On January 1^st, Ontario's Greenhouse Gas Emissions Reporting Regulation took effect - requiring between 200 and 300 facilities (such as electricity generators, steel & cement manufacturers, and petroleum refiners) emitting 25,000 tonnes or more per year of carbon dioxide equivalent (CO2e) to report their emissions on an ongoing annual basis. The regulation is intended to obtain accurate emissions data to inform the development of Ontario's proposed cap-and-trade system.

Ontario has also announced that while small emitters (facilities emitting between 10,000 and 25,000 tonnes per year) are not currently required to report under the Regulation, the Ministry will develop a program to encourage voluntary reporting in anticipation of inclusion of these smaller emitters in the future in emerging North America–wide requirements, with which Ontario will likely align.

The 25,000-ton limit is comparable to the emissions from burning 131 rail cars of coal or the annual energy use of about 2,200 homes, while a typical coal-burning power plant emits several million tons of carbon dioxide a year.

Ontario's reporting threshold aligns with the U.S. Environmental Protection Agency's mandatory GHG reporting threshold of 25,000 tonnes - which impacts 14,000 large US sources of carbon dioxide. The Regulation represents a further step towards implementation of a cap and trade system in Ontario which will be harmonized to the requirements of a North America–wide system. Ontario has pledged to work with the federal government and other provinces as well as with the other provinces and U.S. states that are members of the Western Climate Initiative ("WCI") to harmonize Canada's carbon regime with the emerging U.S. carbon regime.

Greenhouse gas reporting is no longer a question of "If?" or "When?"...its right here, right now.

Airline Sustainability: The Sky is the Limit

2010-01-19T12:53:00.002-05:00

Sixty years ago, civil aviation (private and public air travel) was an industry that was responsible for a minute proportion of all forms of transport. In recent decades, there has been rapid growth in aviation as a form of mobility, and subsequently there has been significant growth in energy use. Today it is an integral part of the world economy, accounting for approximately 9% of global GDP and carrying over 2 billion passengers each year.

Most aviation fuels are jet fuels originating from crude oil. Crude oil is a non-renewable energy resource and reports indicate that the world’s crude oil production is close to the maximum level and that it will start to decrease after reaching this maximum. Aviation fuel production is predicted to decrease by several percent each year after the crude oil production peak is reached - resulting in a substantial shortage of jet fuel by 2026. At the same time, it is predicted by the aviation industry that aviation traffic will keep on increasing. This is of particular importance for the airline industry as the price of fuel represents as much as 40% of an airline's expenses. Between 2001 and 2005, airlines lost over $35 billion (US dollars) and high fuel prices will continue to challenge airline profitability.

Aviation fuel consumption also brings about environmental concerns as it contributes to the increase in atmospheric CO2 concentrations. Although the aviation industry claims that it generates only 2% of global CO2 emissions, it is one of the fastest-growing carbon polluters around. The Federal Aviation Administration predicts that passenger levels will double in 10 years and perhaps triple by 2025 and that CO2 emissions will increase by more than 110 % between 2005 and 2025.

With regard to aircraft emissions, strong public pressure to reduce the environmental impact has resulted in improvements in both technologies and the way airline systems operate. A sustainable approach is necessary to ensure continuing growth in the aviation industry where cost reduction is critical and environmental performance is improved.

Improving the fuel efficiency of aircrafts is an important aspect of technological development, since it directly improves airlines’ direct operating costs. Technological improvements involve aerodynamic changes, weight reductions, more fuel efficient engines, and increased operational efficiency. For example, the Boeing 787 Dreamliner is attempting to incorporate energy efficiency into its design. The airplane is expected to use 20% less fuel than its contemporary counterpart. The key technologies include lightweight structures, highly efficient engines, and aerodynamic improvements to the body and wings. As much as 50% of the primary structure on the B787 will be made of composite materials. The advanced engines for the new airplane are expected to contribute as much as 8% of its increased efficiency. According to the Boeing Company, it will be possible to eliminate 1500 aluminum sheets and 40,000–50,000 fasteners by manufacturing a one-piece fuselage section, and to attain greatly improved aerodynamic and structural efficiency.

Another way for airlines and passengers to reduce their environmental impact is to become carbon neutral. Becoming carbon neutral involves the purchase of carbon offsets to neutralize the pollutants added to the environment. Carbon offsetting occurs when an individual or organization emits a given amount of greenhouse gas (GHG) but invests in measures that will pull the equivalent volume of GHG out of the atmosphere or prevent other emissions from taking place at all. Carbon offsets include programs such as wind power, solar power, and other such projects that focus on energy efficiency and renewable resources. Carbon offsetting is becoming prominent in the airline industry. For example, Virgin America offers the opportunity to buy carbon offsets based on the length of your flight. Also, Ethiopian Airlines has planted 7.5 million trees in Ethiopia, one for each passenger flown since 2005 at no extra charge to their customers.

As consumers become more aware of the environmental effects of aviation on global air quality and demand airlines to reduce their engine emissions to climate change, the industry will need to make adjustments in order to stay competitive. Innovations in aircraft technology and carbon offsets are two important steps toward sustainable air transport that have the potential to generate industry profit growth while protecting the environment.

Clean Energy Initiatives: A Winning Situation For All

2009-12-18T11:05:00.004-05:00

During the Copenhagen Climate Change Conference last week, a global 10 billion US dollar annual fund was proposed to assist developing countries in averting their carbon emissions prior to when the new treaty comes into effect in 2012. Critics claim that this proposal is insufficient and one proposal put forward involves shifting some of the International Monetary Fund’s investments into financing clean-energy projects in the developing world.

In the developing world, agriculture is a primary economic activity, accounting for about 30 percent of their GDP. Lack of access to adequate, affordable, and convenient sources of energy is one of the key challenges faced daily by rural inhabitants. Worldwide, 2.4 billion people rely on biomass for cooking and heating while another 1.6 billion have no access to electricity whatsoever. The UN reports that such an energy gap "entrenches poverty…and erodes environmental sustainability at the local, national and global levels."

It is undeniable that access to clean, reliable, and affordable energy is critical to sustainable development. Research indicates that sustainable energy technologies and programs can directly contribute to development as they offer an income source, improve health, air and water quality, and provide amenities such as heat and light.

In particular, renewable energy can be beneficial for developing countries. In rural areas transmission and distribution of energy generated from fossil fuels can be complicated and costly. Producing renewable energy locally can reduce such a financial burden.

There is increasing awareness that conventional, ‘top-down’ development approaches have failed to deliver results that satisfy the needs of the developing world. An alternative to top-down development approaches is provided by initiatives that aim at increasing local participation. This ‘bottom-up’ approach has been adopted by organizations such as Wisions, and Grameen Shakti who acknowledge that local participation allows projects to better reflect local needs rather than sole instruction from the professionals who are working with them.

The Ashden Awards for Sustainable Energy is an organization that awards and brings to light inspiring sustainable energy solutions in the UK and the developing world and helps to ensure that these solutions are promoted more widely. Grameen Shakti, a non-profit organization in Bangladesh, was a recipient of the award in 2006. The organization’s goal involves “rescuing rural poor from energy poverty which undermines their social and economic development” by empowering rural people through access to environmentally friendly and sustainable energy at affordable costs, while providing them with income-generating activities, and access to a better quality of life. Grameen Shakti is involved in a range of activities related to small-scale photovoltaic (PV) systems, including: marketing, sales, servicing, training, research and development, credit provision, payment collection, and credit guarantees.

Through small micro-credit loans, self-employment is provided to the country’s rural families. Buyers of PV systems have reported increases in income and productivity by extending working hours after dusk and due to the introduction of computers powered by PV. Grameen Shakti is training technicians in PV installation and maintenance, thereby creating employment for local people, facilitating technological transfers, and developing skilled technicians in rural areas. Funding for the micro-credit system comes from the World Bank and Global Environment Facility via the Infrastructure Development Company Limited (IDCOL).

Energy is central to economic development: there is a clear correlation between energy consumption and living standards. And, microfinance is one solution that can meet large and small scale needs. Unlike commercial loans, no collateral is required for a micro-loan and it is usually repaid within six months to a year. Those funds are then recycled as other loans, keeping money working and in the hands of borrowers. Government investments into renewable energy projects in the developing world will also benefit the global economy. The EU's Project Catalyst estimates such global investment will generate about $100 billion by 2020. It is evident that clean energy initiatives world yield financial and social benefits to citizens and businesses alike.

Peak Water: Crisis or Opportunity?

2009-12-01T15:50:00.005-05:00

Many experts report that global water supplies are dwindling and that it poses a risk to businesses which will have impacts more far-reaching than oil. While alternative sources for oil exist, there is no substitute for water: it’s a necessity for human survival and many industrial processes.

One of the most important considerations for business is access to clean water. It’s used for things such as power generation, cooling of air conditioning systems, amenities, process needs, and so on. Companies across industrial sectors could be affected by water shortage issues directly and indirectly through their supply chains, with even non-water intensive companies realizing higher costs as suppliers deliver higher costs.

The impacts of climate change on water will be felt in the form of droughts and changing precipitation patterns while population growth and rising consumption patterns will increase demand and further stress water supplies. In fact, the Organization for Economic Co-operation and Development (OECD) forecasts that, as early as 2030, 47% of the global population will be living in areas of high water stress.

This water challenge provides businesses the opportunity to develop and implement solutions both locally and internationally. Companies need to plan now for the impact of water shortages on their business operations. However, for most companies, water does not appear on the bottom line as awareness and understanding of water-related risks and opportunities is lacking.

In an attempt to bring companies together and to take action, the Water Disclosure Program was created which aims to “provide critical water-related data from the world’s largest corporations to inform the global market place on investment risk and commercial opportunity.” In 2010, a questionnaire will be sent to 300 of the world’s largest water-intensive companies which will assess the risks and opportunities companies face in relation to water; water usage and exposure to water stress in companies’ own operations and in their supply chains; and companies’ water management plans and governance. The data will be utilized to move investment towards sustainable water use.

It’s a reality that corporate reputation represents a large percentage of a company’s market capitalization. Companies that treat water risks as a strategic challenge will be far better positioned in future as investors are already urging companies to measure, disclose and reduce their environmental risks. And, people are more likely to invest in a company that has a high rating in terms of environmental and social performance.

Being proactive and using water proactively will reduce the water footprint of any business. In fact, studies reveal the commercial sector has the potential to save on average 39% of their water use. So what can businesses do to reduce their water consumption? Toilets and urinals account for more than one-third of the water consumed in office buildings. Installing waterless urinals and low flow dual flush toilets use only a small fraction of water when they are adjusted to the minimum amount of water required per flush. Water saving bathroom fixtures can also eliminate a large percentage of gallons annually for businesses. Adding aerators to existing faucets can cut water consumption in half but faucets should first be checked for leaks. Lastly, water use on outdoor landscapes can be reduced if the sprinkler timer is adjusted with the seasons and if it is watered early in the morning or late at night to minimize loss.

“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.” - Jack Welch

Looking Ahead to the Copenhagen Climate Change Conference: The Future of Energy

2009-11-23T16:45:00.004-05:00

With the Copenhagen Climate Change Conference approaching, it will be interesting to see how the topic of energy will be addressed. There is considerable evidence demonstrating that the overconsumption of fossil fuels has contributed to climate change. In fact, the last two decades alone have seen more energy consumed than all human history combined. Another issue correlated with the overconsumption of fossil fuels is oil depletion (better known as ‘peak oil’). The decline of oil has produced a decline in the ‘net energy’ of conventional oil. This means that not only is less oil being produced, but the remaining oil is more difficult and costly to extract. Combined, these issues compromise human health, global economies and the environment on a massive scale.

One would hope that such threats to human existence would arouse action from government leaders but so far, the response of most governments has been inadequate. Solutions have included desperate attempts to find the few, untapped oil reserves and mining the Canadian tar sands. These proposed solutions perpetuate the problem rather than solve it.

Renewable energy use is one alternative that has been postulated to mitigate issues of climate change and fossil fuel depletion. As such, its implementation needs to be high on the policy agenda of nations. However, the reality is that renewable energy technologies will not be able to completely replace oil and satisfy growing energy demands. A real answer to the current energy issue must involve renewable energy plus efforts toward conservation, efficiency, and reduced consumption.

On a positive note, the impending energy crisis provides businesses an opportunity to adopt sustainable practices that are not only eco-friendly, but also cost efficient. Businesses should first identify the specific outcomes they want to achieve. Outcomes could include saving money for the year, having a longer-term goal to replace outdated equipment, or demonstrating green credentials to customers and suppliers. Next, businesses should perform an energy audit. A professional energy audit will demonstrate how efficiently energy is being used and highlight opportunities for energy cost savings. It can also show ways to improve productivity. Energy audits include everything from basic audit of the efficiency of the products and appliances used on the premises to a detailed analysis of machinery, cooling towers, waste systems etc. Lastly, businesses can adopt green building technologies and materials by using more energy-efficient lighting, the latest in innovative window glazing, higher R-value insulation, as well as room occupancy sensors.

It’s a simple fact that when businesses manage their energy well, their profits improve. Energy use is not a fixed cost. There is plenty businesses can due to reduce their consumption patterns while still maintaining their profit margins.

Carbon Foresight signs Copenhagen Communiqué on Climate Change

2009-09-14T08:57:00.005-04:00

Carbon Foresight has joined a prestigious group of international businesses in signing the Copenhagen Communiqué on Climate Change. The Communiqué was initiated by The Prince of Wales’s Corporate Leaders Group on Climate Change (CLG) in June of 2009 and has been endorsed by the likes General Electric, Sun Microsystems, Deloitte, and many others.

Carbon Foresight signed the communiqué in the lead up to the United Nations Climate Change Conference, or COP 15 in December to call for a strong political response and clear guidelines for states and organizations globally. Without clear political objectives and legislative mandates, organizations are not likely to go beyond their current business strategies and further integrate sustainability into their core business strategy, drive clean technologies, develop environmentally beneficial products, or increase their operational efficiencies.

The Copenhagen Communiqué calls for an ambitious, robust and equitable global deal on climate change that responds credibly to the scale and urgency of the crises facing the world today – and includes the following recommended actions:

Any agreement must establish a global emissions cap and long-term reduction pathway for all greenhouse gas emissions and sources, for the period 2013 to 2050 (with interim targets). These targets will need to be guided by science to ensure global greenhouse gas concentrations are stabilized below critical thresholds. When stating this, we understand that there is an emerging consensus behind an objective of limiting global average temperature rise to less than 2 degrees Celsius compared to pre-industrial levels and that this will require global emissions to peak and begin to decline rapidly within the next decade.
Developed countries need to take on immediate and deep emission reduction commitments that are much higher than the global average, and which are backed up with credible strategies to de-carbonize their economies. The developed countries need to demonstrate that low-carbon growth is both achievable and desirable.
Developing countries will need to play their part by drawing up their own emission reduction plans in line with their common but differentiated responsibilities and capabilities. The least developed economies need additional assistance including increased and adequate financing, and expanded cooperation to help them adapt to and join the new low-carbon economy.

Key supporting elements of any agreement should include:

Credible measurement, reporting and verification of emissions which are vital to measuring progress against the objectives of an effective climate treaty.
Measures to deliver a robust global greenhouse gas emissions market in order to provide the most effective, efficient and equitable emission reductions. It would be comprised of a growing series of national or regional “cap-and-trade” markets linked together, in which the “caps” are brought down in line with the targets that have been adopted for emission reduction.
Additional policy measures, because a strong carbon price alone will not be enough to deliver the level and nature of change required across each economy. Measures will be needed; to deliver a step-change in energy efficiency, to promote the rapid development, demonstration and wide deployment of low-carbon technologies and also to stimulate new markets for low-carbon goods and services.

The strength of an agreement will be judged on its ability to drive substantive action both inside and outside the UN process, at national and international levels, but in line with the principles agreed in Copenhagen. A strong, effective and equitable international climate framework will stimulate the domestic policy interventions, bilateral and regional deals that are needed as a matter of urgency to deliver on intermediate and long-term reduction targets and accelerate construction of the low-carbon economy.

The problem of climate change is solvable – many of the technologies required are available today while others can be developed if the right incentives are in place. The policies needed are relatively clear, and the costs of transition are manageable, even in the current economic climate.

The one thing we do not have is time. Delay is not an option.

SAP aims to slash greenhouse gas emissions

2009-03-02T17:34:00.002-05:00

Software giant SAP AG plans to cut its greenhouse gas emissions in half during the next decade as part of a broad sustainability initiative. The Walldorf, Germany-based company (NYSE: SAP) is striving for a 51% reduction of its direct and indirect emissions of carbon dioxide and other heat-trapping gases by 2020. Hitting the target would return SAP to its year-2000 emissions level of 250,000 metric tons of CO2.
In addition to slashing its carbon emissions, SAP plans to roll out software that would help its more than 80,000 customers in 120 countries track their energy consumption as well as manage environmental risks in their supply chains. The firms account for about 5 billion metric tons of greenhouse gases, which is one-sixth of the total amount generated by humans and 10,000 times the amount generated by SAP. Read on...

The Elephant in the Room: Carving Up Scope 3 Emissions Across a Value Chain

2009-02-27T11:17:00.002-05:00

For a Fortune 1000 company today, it is easy to be casual about Scope 3 emissions. When it comes to measurement guidance, the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) GHG Protocol considers the quantification of Scope 3 emissions as optional when preparing an overall corporate GHG inventory.

As for current or pending regulation, it is unlikely that companies will be held accountable for their Scope 3 emissions. And when it comes to reputation, it is understandable that companies choose to ignore a category that typically represents an exponentially larger footprint than their Scope 1 and 2 emissions. Logical decisions all.

But in the aggregate, these decisions have led to three unintended effects: one pedantic, one peculiar and one perilous.... Check out the full article from Emma Stewart,Corporate Environmental Strategy Consultant.

"Lost Generation": A Sustainability Manifesto

2009-02-13T19:51:00.003-05:00

Flips everything on its head.
...have a look.

Ray Anderson on Sustainability

2009-02-10T22:00:00.005-05:00

Ray Anderson is founder and chairman of Interface Inc., the world's largest manufacturer of modular carpet for commercial and residential applications and a leading producer of commercial broadloom and commercial fabrics.

He is "known in environmental circles for his advanced and progressive stance on industrial ecology and sustainability." Since 1995, he has reduced Interface's waste by a third, and plans to make the company sustainable by 2020.

Alex Steffen: "A Shpiel on Sustainability"

2009-02-10T20:04:00.004-05:00

An intro to sustainability, its challenges and opportunities:

The Story of Stuff

2009-02-10T17:55:00.004-05:00

From its extraction through sale, use and disposal, all the stuff in our lives affects communities at home and abroad, yet most of this is hidden from view. The Story of Stuff is a 20-minute, fast-paced, fact-filled look at the underside of our production and consumption patterns.

The Story of Stuff exposes the connections between a huge number of environmental and social issues, and calls us together to create a more sustainable and just world. It'll teach you something, it'll make you laugh, and it just may change the way you look at all the stuff in your life forever.

Carbon Footprint Reduction Services

2008-12-09T11:33:00.006-05:00

There are numerous services that allow you to pay into a fund to offset your carbon footprint. But how does it actually work?

Let Carbon Foresight show you the right way of doing things.

Source: Thanks to 'the onion'

“It was the best of times, it was the worst of times.”

2008-09-28T17:00:00.006-04:00

In light of the US housing crash, the financial meltdown, and some form of impending recession - the big question is whether corporate sustainability is only a luxury to be had when economic times are good or is CSR even more fundamental to success in this new ‘environment’. Will consumers and corporations revert back to their traditional bottom line focus or will these events trigger a mushrooming rejection of a greed culture and the possible emergence of a new way of doing business?

As is usually the case, the reality will likely reflect neither of these extremes. However, one common element we are likely to see is that a thoughtful, well implemented sustainability strategy will yield benefits in any economic landscape - good or bad.

In difficult times, organizations are looking to trim costs and boost productivity across the organization - from reducing discretionary travel and property costs, to increasing employee efficiency. Companies are also looking to keep existing customers and grow their business but not by cutting prices or risking quality. A properly implemented and communicated sustainability strategy allows your organization to differentiate itself to customers and employees while cutting energy and other costs.

In good times, organizations are looking to keep their best and brightest and attract the leading talent in their industry. They are also looking ahead to see the next opportunity while hedging against any possible risk. Again, an effective sustainability strategy can put your organization ahead of others with minimal investment and risk.

In this particular time of turmoil, we could be witnessing a broad cultural shift in which new forms of value might take shape. Sustainability offers a lens through which an organization might find it's next incarnation - one for the 21st century. More on this next time...

Up, down, or sideways - sustainability will help guide your organization through turbulent times.

Journey to Nowhere? The Corporate Environmental Road Trip

2008-09-09T11:27:00.000-04:00

Geothermal, passive solar systems, compact fluorescent, carbon footprint, LEED, corporate social responsibility, telecommuting - this is the technical language of the new sustainable organization. Add to these the many low-tech-low-cost solutions, and its clear that the solutions exist, the technology is available, and the expertise is obtainable. Yet, it is rare to hear of overwhelming corporate sustainability based successes.

Why are relatively few businesses reaping the promised rewards of environmental strategies such as quick returns on investment, new business, reduced costs, fresh sources of revenue, and improved staff recruitment and retention? Why are senior managers asking why their recycling program have 5% utilization, why only 2% of employees are choosing to use their remote offices, and why their teleconference facility is rarely leveraged?

It seems organizations are intent on focusing on only one of three areas critical to the success of any sustainability initiative. While environmental technical solutions are well thought out, the organizational alignment and strategic foresight required to implement them are woefully missing. What is most often neglected in developing and implementing climate change strategies is a solid understanding of the complex organizational dynamics of implementing change. Understanding how to develop and implement a climate change strategy that aligns with an organization's business landscape, culture, and management style is critical. Moreover, an understanding of which strategies will be robust in an uncertain future is required to fully realize the business benefits of sound environmental strategy.

Consider, the example where you and your family decide to take a road trip to your favorite destination. You're confident that the trip will be inexpensive, relaxing, and bring your family closer together. Leading up to the trip, you research the size and individual needs of your family, the length and terrain of the trip, and then purchase a state of the art vehicle that will meet those needs in the most fuel efficient way. You marvel at car's hybrid synergy drive engine, the aerodynamic shape, and the integrated audio video system.

On the day of the trip everyone piles in to the car. Only then does it occur to you that your family hasn’t agreed on a destination, nor is there a second driver who is trained on how to drive the car. You also realize that the car is not equipped with a dashboard so you have no idea how fast you are going or how far you’ve gone! Despite these small considerations you decide to depart anyways. As you approach the highway, construction detours your route and you notice ominous storm clouds ahead. You realize that your map is outdated, the weather is unpredictable, and price of gas is changing rapidly. How do you read the signs of change and adjust your course appropriately? You'll need an approach to getting to your destination that is flexible, adaptable and still focused on arriving safely.

In much the same way, organizations are embarking on sustainability trips, confident that they will arrive at some unknown destination despite lacking any strategic direction or organizational preparedness. These journeys to oblivion also oftentimes lack any goals or measurement systems so that even when progress is made, it is unclear and uncoordinated. These problems are only magnified when the physical environment, regulatory and market conditions change rapidly and unpredictably.

Organizations need to understand that in the same way as their primary services or products are integrated into their strategy and organizational alignment, so to do their environmental policies. These policies need to have the support of the business as well as fit within a well defined and communicated overall strategy. Organizations must ensure that the journey is well planned, the destination clearly defined, and the approach to reaching the goal is flexible, adaptable and robust across a variety of conditions. The technology is only one part of the equation - don’t get blinded by the cruise control and heated seats. Bon voyage.