Transcript Carbon Footprints & Climate Risk: Tools for business and

NRG 173: Carbon Footprints for
Climate Action in Complex
Organizations
Spring Term 2011
Class 2 of 20
March 31, 2011
Kelly Hoell
Good Company
Eugene, OR
overview
• homework discussion
– CNN.com: Rich, Poor and Climate Change
– EPA: Systems vs. Sectors
– Berkeley’s CoolClimate Carbon Calculator
• greenhouse gas emissions inventories
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why bother?
what you measure: gases, activities and emissions
protocols, tools and emissions categories
setting inventory boundaries
• several activities throughout the day
Questions from last night’s homework?
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SAIC: LCA Principles and Practice
The Climate Registry: GRP
CNN.com: Rich, Poor and Climate Change
UC Berkeley’s CoolClimate Carbon Calculator
pop quiz!
1.____________SF62. ___________ 3._____________HFCsPFCs
SCOPE 2
5. Circle one:
Direct/Indirect
SCOPE 1
4. Circle one:
Direct/Indirect
SCOPE 3
6. Circle one:
Direct/Indirect
10. ________________________
9. _____________________
7. _______________
8. _______________
11. ________________________
12. ________________________
13. ________________________
14. ________________________
15. ________________________
homework discussion
Rich, Poor and Climate Change
• Were you surprised by anything in this article?
homework discussion
Rich, Poor and Climate Change
• Were you surprised by anything in this article?
• What specific activities do wealthier people
engage in that cause their emissions to be
higher than poorer people?
homework discussion
Rich, Poor and Climate Change
• Were you surprised by anything in this article?
• What specific activities do wealthier people
engage in that cause their emissions to be
higher than poorer people?
• How does this relate to the Figures in the EPA
reading, “Opportunities to Reduce Greenhouse
Gas Emissions through Materials and Land
Management Practices?”
homework discussion
two views of US emissions
Source: EPA’s Opportunities to Reduce Greenhouse Gas Emissions through
Materials and Land Management Practices
activity
Two US households: what’s different? (1)
Household 1
Household 2
Source: UC Berkeley’s CoolClimate Carbon Calculator
activity
Two US households: what’s different? (2)
Source: UC Berkeley’s CoolClimate Carbon Calculator
homework discussion
assignment 1: carbon footprint & CAP
• pick a household: yours or someone you know
well where you can get actual data
• pick a timeframe (one full year)
• use Berkeley’s CoolClimate Carbon Calculator
• calculate your emissions
• play around to determine the scale of impact
from behavior changes and climate actions
• think about what those changes will cost or save
• make recommendations: think big, think easy
• be realistic!
homework discussion
US emissions vs. world emissions
Source: EPA’s Opportunities to Reduce Greenhouse Gas Emissions through
Materials and Land Management Practices
GHG inventory overview
carbon footprints
• carbon footprints: why bother?
• conducting an inventory
– big picture overview of the steps involved
– typical emission sources and issues
– inventory protocols and calculation tools
• setting boundaries for your carbon footprint
– control vs. influence
– data availability
– responsibility and mission-critical/related activities
GHG inventory overview
carbon footprints: why bother?
• save money
• understand your climate risk
– impending regulation
– impending non-regulatory risk (e.g., supply chain)
– potential disruption to your business model or practices
• live up to institutional commitments
– USMCPA / ACUPCC
• proactively manage a challenge that might
matter to stakeholders
– develop sense of scale of your emissions
– prioritize emissions reduction opportunities
• it might also be the right thing to do!
sustainability: the business case
defining the business case
• by “business case” we mean:
– why businesses bother with climate action
– how it can serve a business’s goals
– in what ways it can “make sense” for a business
• versions
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cost savings
increased revenue or market share
risk reduction
internal stakeholder buy-in
external stakeholder buy-in
Note: none of these can be taken for granted. Each
organization must examine which (if any) are relevant.
sustainability: the business case
defining the business case
Cost savings
Increased revenue
or market share
Risk reduction
Efficiency in use of energy, water, materials and
other inputs = reduced environmental impact,
sometimes also improved working conditions
Appeal to new markets and/or charge a price
premium by delivering new form of value
Reduce exposure to legal and image risk
associated with being barely compliant
Internal
stakeholders
Opportunities for higher morale and loyalty,
lower turnover, greater sense of purpose and
direction, clearer focus on goals
External
stakeholders
Goodwill in communities where facilities are
located or from which inputs are sourced,
reputation benefits with regulators and
advocacy organizations
There may also be alignment with mission.
sustainability: the business case
example: cost savings from buildings
Key Point: “The LED retrofit saves the restaurant chain
approximately $120,000 on lighting bills annually.”
sustainability: the business case
example: positioning on value not price
example: positioning on value not price
sustainability: the business case
example: risk reduction
Exelon Expanding Into Wind Generation with
Acquisition of John Deere Renewables
August 31, 2010
“…Not only does this acquisition add value for Exelon
shareholders, providing incremental earnings in 2012
and cash flows in 2013, but it also is one more way to
implement a clean energy future. Whether harmful
emissions are priced or regulated, our combined
capacity of nearly 19,000 megawatts of zeroemission wind, solar, hydro, landfill gas and nuclear
power remains a clear competitive advantage that
will only become more valuable.”
--John W. Rowe, Exelon chairman and CEO.
sustainability: the business case
savings, market share & reduced risk?
sustainability: the business case
example: employee happiness
Daylighting & Productivity at Lockheed
A daylit office building near San Francisco adds to corporate
profits through energy savings and improved productivity
‘…In their first year in “Building 157,” they saved half a
million dollars on energy bills and several times more due to
reduced absenteeism and improved employee productivity.
Possibly even more significant for their bottom line, the higher
productivity of employees in Building 157 gave Lockheed a
competitive edge that helped them win a coveted $1.5 billion
contract. The key to Lockheed’s good fortune is the building
design itself. Soft daylight floods the interior. Standing in the
central “litetrium,” surrounded by trees, one gets the sense of
almost being outdoors. Most importantly, though, the
employees love it. They love where they work, and they
are more productive because of it..” ’
sustainability: the business case
example: external stakeholders
Quote: Mary L. Shapiro, S.E.C. Chairwoman. Source: http://www.nytimes.com/2010/01/28/business/28sec.html
sustainability: the business case
Where is your business case?
Cost savings
Increased revenue
or market share
Risk reduction
Efficiency in use of energy, water, materials and
other inputs = reduced environmental impact,
sometimes also improved working conditions
Appeal to new markets and/or charge a price
premium by delivering new form of value
Reduce exposure to legal and image risk
associated with being barely compliant
Internal
stakeholders
Opportunities for higher morale and loyalty,
lower turnover, greater sense of purpose and
direction, clearer focus on goals
External
stakeholders
Goodwill in communities where facilities are
located or from which inputs are sourced,
reputation benefits with regulators and
advocacy organizations
There may also be alignment with mission.
GHG inventory overview
enterprise carbon footprints: three options
1.
2.
3.
DIY
outsource
pay for capacity building, not spoon-feeding
Things to think about to help you choose:
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What are your desired outcomes?
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What internal resources are available?
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capacity building, glossy report, knowledge for
emissions reductions, data for authentic claims, etc.
staff time, budget
Are the right people available to help?
Is the boss on board?
GHG inventory overview
What do you measure?
• Kyoto gases and Global Warming Potential (GWP)
Gas
Carbon dioxide
Methane
Nitrous oxide
Hydrofluorocarbons
Perfluorocarbons
Sul fur Hexafluoride
Chemical Formula
CO2
CH4
N2O
CxHyFz
CxFy
SF6
Global Warming Potential
1
21
310
12 - 11,700
6,500 - 9,200
23,900
Source: IPCC 2nd Assessment Report, 1996
• carbon dioxide equivalent (MT CO2e)
GHG inventory overview
class vote
• What percentage of global GHGs does CO2
represent?
GHG inventory overview
global GHG emissions by gas type
Source: Vattenfall
GHG inventory overview
typical emission sources
• building-based energy use (utilities)
– electricity
– natural gas
– other fuels (propane, fuel oil, coal, etc.)
• refrigerants (“fugitive emissions”)
• transportation
– fuel use for business travel (air, car, bus, train)
– fuel use for employee commute (single occupancy vehicle,
carpool, mass transport)
– distribution
• embodied GHGs in supply chain
• waste stream
• land use (on a large scale)
GHG inventory overview
conducting a GHG Inventory – an overview
1.
2.
3.
4.
5.
6.
7.
8.
9.
identify relevant protocols and tools
set inventory boundaries
collect data
revisit inventory boundaries
finish data collection
calculate emissions
write report
share results with stakeholders
develop climate action plan
(Plan as much as reasonable. Be ready for loops.)
protocols and tools
conducting a GHG Inventory – an overview
1.
2.
3.
4.
5.
6.
7.
8.
9.
identify relevant protocols and tools
set inventory boundaries
collect data
revisit inventory boundaries
finish data collection
calculate emissions
write report
share results with stakeholders
develop climate action plan
(Plan as much as reasonable. Be ready for loops.)
protocols and tools
remember: protocol ≠ tool
• protocol
– “code of correct conduct”
– “rules for determining data format and transmission”
• tool
– “an implement used in the practice of a vocation”
– “the means whereby some act is accomplished”
≠
protocols and tools
inventory protocols
• general application
– World Resources Institute (WRI) / World Business Council on
Sustainable Development (WBCSD), Greenhouse Gas
Protocol (www.ghgprotocol.org)
– The Climate Registry (TCR), General Reporting Protocol
– Council on Environmental Quality: Guidance on Federal
GHG Reporting and Accounting (expanded boundaries)
• specific application
– TCR / CCAR / CARB / ICLEI: Local Government Operations
– The Climate Registry (TCR): Electric Power Sector
– California Climate Action Registry (CCAR): industry specific
protocols for cement, forestry, power/utilities
– Climate Action Registry: GHG offset protocols for livestock,
landfill, forest and urban forest emissions reduction projects
protocols and tools
calculation tools – look at boundaries!
• on-line calculation tools from registries
– The Climate Registry Information System (CRIS)
• must be a member of The Climate Registry
– Climate Action Registry Reporting Online Tool (CARROT)
• must be a member of the California Climate Action Registry
• other inventory calculation tools
– Seattle Climate Partnership Carbon Calculator
• public domain, spreadsheets
– Clean Air-Cool Planet Campus Carbon Calculator™
• public domain for higher education institutions, spreadsheets
– ICLEI Clean Air and Climate Protection Software
• must be an ICLEI member, software program
– Berkeley’s CoolClimate Carbon Calculator
• public domain, household scale calculator
– Good Company’s Carbon Calculator (G3C)
• can be purchased by public or private clients
boundaries
conducting a GHG Inventory – an overview
1.
2.
3.
4.
5.
6.
7.
8.
9.
identify relevant protocols and tools
set inventory boundaries
collect data
revisit inventory boundaries
finish data collection
calculate emissions
write report
share results with stakeholders
develop climate action plan
(Plan as much as reasonable. Be ready for loops.)
boundaries
carbon footprints: setting boundaries
• What must the boundaries of your inventory be?
– regulatory requirements
– internal and external expectations
• What should your boundaries be?
– responsibility and/or liability: mission-critical or
mission-related activities
– control vs. influence
– owned vs. shared
• What can your boundaries be?
– data availability (proprietary data / trade secrets, state
of scientific/academic knowledge)
– trade-offs in the inventory process (staff time, available
resources, available data)
boundaries
Clif Bar: big boundaries
• methodology for quantifying air travel GHGs
• substantial data needs, non-trivial calculations
boundaries
GHG accounting 101: Scopes 1, 2 and 3
Source: World Resources Institute
homework
• read DEQ Home LCA executive summary
– Think about the steps of an LCA that are outlined in the
SAIC reading from last night. How does it apply?
– How does an LCA differ from a GHG inventory?
• start your personal carbon footprint and
climate action plan
- Consider having a classmate proofread your work…
See you Tuesday. Have a good weekend!
Feel free to contact me:
Kelly Hoell
[email protected]
(541) 341-GOOD (4663), ext. 217