March 2010 Samantha Putt del Pino Co-Director, Business Engagement in Climate and Technology The Next Practice Advantage 1

Agenda 1.Evolution of corporate climate leadership 2.Current and future challenges 3.The Next Practice Advantage 2

 Original action agenda (1998) Safe-Climate, Sound Business  Business partnerships  Greenhouse Gas Protocol  Green Power Markets  Corporate vision/strategy WRI collaborates with business to advance climate change solutions 3 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

Business case evolving, expanding  Reputation, brand enhancement  Cost savings  Profit opportunities 4 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

Yesterday’s cutting edge has become today’s best practice Verifying and registering data Setting and updating performance targets Identifying cost-effective GHG reductions Managing internal communications Capturing new business opportunities Adapting to market-based solutions Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

GHGs starting to factor into key strategic decisions 6  Investment priorities  Staffing, resources  Aligning long-term strategies Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

Agenda 1.Evolution of corporate climate leadership 2.Current and future challenges 3.The Next Practice Advantage 7

At a critical transition point in corporate climate leadership 8 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage Near termLong term Climate Opportunity New transformative activities Business as usual Visioning Transition We are here Business as usual Business as usual BAU Climate Leadership

Business leadership critical to a strong, climate-safe economy policy framework corporate innovation technology & finance 9 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

Various roles to play Industry Ag & Land Use Transport Electric Power (users and producers) Solutions 10 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

Cross-cutting challenges and opportunities 11 Energy Value Chains Adaptation Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

ENERGY: global consumption increases IEA: WEO 2009 Reference Case 12 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

ENERGY: costly reliance on fossil fuel imports Annual expenditure on oil & gas imports IEA: WEO 2009 Reference Case 13 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

ENERGY: BUSINESS IMPLICATIONS 14 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

VALUE CHAIN: upstream and downstream GHG risks, reduction opportunities Corporate LeadershipCurrent & Future Challenges suppliers high risk VALUE CHAIN upstream downstream high risk Next Practice Advantage

VALUE CHAIN: new metrics, accounting standards, tools Supply Chain, Product Standards 16 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

VALUE CHAIN: BUSINESS IMPLICATIONS 17 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage suppliers high risk VALUE CHAIN upstream downstream high risk VALUE CHAIN upstream downstream competitive advantage competitive advantage

ADAPTATION: Protecting against global instability 18 Water Scarcity Demography Crop Decline Hunger Coastal Risks Recent Conflicts Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

ADAPTATION BUSINESS IMPLICATIONS 19 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

20 ADAPTATION OTHER BUSINESS IMPLICATIONS Products and services Communities and markets Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

Agenda 1.Evolution of corporate climate leadership 2.Current and future challenges 3.The Next Practice Advantage 21

Getting to carbon-competitive 1. Trends, drivers, implications 2. Business case 3. Decision-making framework 22 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

no action climate-centric planning climate advantage business-as-usual long-term success next practices short-term planning existing products today’s strategies OstrichesPaper Tigers OpportunistsWinners ZERO CARBON 23 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage Are you competitive in tomorrow’s markets?

The Next Practice Collaborative setting a new corporate climate agenda 24 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage

OUTPUTS 25 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage VISIONING GROUP Business implications Strategic priorities Results CORPORATE INNOVATORS Trends, Drivers Business case Decision criteria, metrics WRI Thought Piece WRI Thought Piece WRI Thought Piece WRI Thought Piece Business case Next Practice approaches, frameworks Insights on tomorrow’s markets: Energy Value Chains Adaptation Pilot test, next steps

The bottom line… 26 Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage Best Practice* BAU Carbon Competitive **For the sake of discussion, assume zero carbon goal as proxy for safe climate (i.e., ppm) Global GHG Emissions * Illustrative diagram only. For analysis of today’s best practice impacts, see CDP’s Carbon Chasm. CLIMATE RISK BUSINESS OPPORTUNITY

Samantha Putt del Pino Co-director, Business Engagement in Climate and Technology Corporate LeadershipCurrent & Future ChallengesNext Practice Advantage For more information: