Wisconsin Business Alliance October 3, 2014 Matt Frank Murphy Desmond, S.C.

 Wisconsin Companies produce and compete in a global economy.  Many businesses are part of a regional, national or global supply chain.  Mandatory and Voluntary Carbon reduction efforts are having an impact on large corporations and their suppliers.

Regional, National and International Regulation of Carbon  State Renewable Portfolio Standards  Regional Greenhouse Gas Initiative  Western Climate Initiative  European Union Cap and Trade  Securities and Exchange Commission climate change impacts disclosure rule  EPA rules on car and truck manufacturers  EPA Clean Power Initiative

Greenhouse Gas Emissions Reporting and Reduction  Both carbon reduction and broader sustainability initiatives Global Reporting Initiative: In 2011, 53% of the Standard and Poor’s 500 were making sustainability disclosures, including carbon.  Greenhouse Gas Protocol  Carbon Disclosure Project  Climate Registry  United States Green Building Council – LEED standards  Greenhouse Gas Accounting Standards – World Resources Institute  Center for Climate and Energy Solutions

Fortune 500 Companies  Kellogs, Walmart, Procter and Gamble, Hewlett Packard, Dell, Apple, Ford, Bank of America, Pepsi, McDonalds, Ikea Nike, General Motors Mitigate risks, decrease costs, differentiate from competition, increase growth Create business value while protecting the environment

Areas of Focus  Consumer packaging  Transportation  Product design  Process modifications  Life cycle analysis  Land use (especially forestry and agriculture)  Green building  Carbon offsets and carbon credit trading

Opportunities and Resources for Small- to Medium-Size Businesses  Software for measuring and reporting carbon emissions  Sustainability consultants  Wisconsin Manufacturing Extension Partnership – Profitable Sustainability Initiative  Cool Choices  Green Masters  Green Tier  Other Wisconsin businesses  Wisconsin Sustainable Business Council

Some Legal Issues for Small- to Medium-Size Businesses  Changes in contractual relationships with suppliers and customers  For entities subject to environmental regulation: Possible changes in permits  Renewable energy interconnection agreements with utilities  Marketing claims: Federal Trade Commission guidelines

References  Risky Business- The Economic Risk of Climate Change in the United States  “Supply Chain Energy Efficiency: Engaging Small and Medium Entities in Global Production Systems University of Minnesota- Northstar Initiative for Sustainable Enterprise. takes-aim-supply-chain-carbonhttp://discover.umn.edu/news/environment/new-pilot-program- takes-aim-supply-chain-carbon  Walmart Supplier Sustainability Assessment.  “Managing Supply Chain Greenhouse Gas Emissions- Lessons Learned for the Road Ahead.” Environmental Protection Agency.  “Mastering Carbon Management- Balancing Trade-offs to optimize supply chain efficiencies.” IBM Global Business Services.  “A Case for Supply Chain Carbon Management in the Consumer Packaged Goods Industry.” Center for Responsible Business.  Sustainable Supply Chain Foundation.  “A Corporate Accounting and Reporting Standard”. Greenhouse Gas Protocol. World Resources Institute.  Green Business Guide. Small Business Administration.  Federal Trade Commission Revised “Green Guides.” issues-revised-green-guideshttp:// issues-revised-green-guides