1. 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

2. overview homework discussion –CNN.com: Rich, Poor and Climate Change –EPA: Systems vs. Sectors –Berkeley’s CoolClimate Carbon Calculator greenhouse gas emissions inventories –why bother? –what you measure: gases, activities and emissions –protocols, tools and emissions categories –setting inventory boundaries several activities throughout the day

3. Questions from last night’s homework? SAIC: LCA Principles and Practice The Climate Registry: GRP CNN.com: Rich, Poor and Climate Change UC Berkeley’s CoolClimate Carbon Calculator

4. pop quiz! 1.____________SF 6 2. ___________ 3._____________HFCsPFCs SCOPE 1 4. Circle one: Direct/Indirect SCOPE 3 6. Circle one: Direct/Indirect SCOPE 2 5. Circle one: Direct/Indirect 7. _______________ 8. _______________ 9. _____________________ 10. ________________________ 11. ________________________ 12. ________________________ 13. ________________________ 14. ________________________ 15. ________________________

5. Rich, Poor and Climate Change Were you surprised by anything in this article? homework discussion

6. 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

7. 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

8. two views of US emissions Source: EPA’s Opportunities to Reduce Greenhouse Gas Emissions through Materials and Land Management Practices homework discussion

9. Two US households: what’s different? (1) Source: UC Berkeley’s CoolClimate Carbon Calculator activity Household 1Household 2

10. Two US households: what’s different? (2) Source: UC Berkeley’s CoolClimate Carbon Calculator activity

11. 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

12. US emissions vs. world emissions Source: EPA’s Opportunities to Reduce Greenhouse Gas Emissions through Materials and Land Management Practices homework discussion

13. 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

14. 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! GHG inventory overview

15. 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 –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

16. defining the business case Cost savings Efficiency in use of energy, water, materials and other inputs = reduced environmental impact, sometimes also improved working conditions Increased revenue or market share Appeal to new markets and/or charge a price premium by delivering new form of value Risk reduction 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

17. example: cost savings from buildings sustainability: the business case Key Point: “The LED retrofit saves the restaurant chain approximately $120,000 on lighting bills annually.”

18. example: positioning on value not price sustainability: the business case

19. example: positioning on value not price

20. example: risk reduction sustainability: the business case 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 zero- emission 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.

21. savings, market share & reduced risk? sustainability: the business case

22. example: employee happiness sustainability: the business case ‘… 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..” ’ Daylighting & Productivity at Lockheed A daylit office building near San Francisco adds to corporate profits through energy savings and improved productivity

23. example: external stakeholders sustainability: the business case Quote: Mary L. Shapiro, S.E.C. Chairwoman. Source: http://www.nytimes.com/2010/01/28/business/28sec.html

24. Where is your business case? sustainability: the business case Cost savings Efficiency in use of energy, water, materials and other inputs = reduced environmental impact, sometimes also improved working conditions Increased revenue or market share Appeal to new markets and/or charge a price premium by delivering new form of value Risk reduction 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.

25. enterprise carbon footprints: three options 1.DIY 2.outsource 3.pay for capacity building, not spoon-feeding Things to think about to help you choose: What are your desired outcomes? –capacity building, glossy report, knowledge for emissions reductions, data for authentic claims, etc. What internal resources are available? –staff time, budget Are the right people available to help? Is the boss on board? GHG inventory overview

26. What do you measure? Kyoto gases and Global Warming Potential (GWP) carbon dioxide equivalent (MT CO 2 e) GHG inventory overview

27. class vote GHG inventory overview What percentage of global GHGs does CO 2 represent?

28. global GHG emissions by gas type Source: Vattenfall GHG inventory overview

29. 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

30. conducting a GHG Inventory – an overview 1.identify relevant protocols and tools 2.set inventory boundaries 3.collect data 4.revisit inventory boundaries 5.finish data collection 6.calculate emissions 7.write report 8.share results with stakeholders 9.develop climate action plan (Plan as much as reasonable. Be ready for loops.) GHG inventory overview

31. conducting a GHG Inventory – an overview 1.identify relevant protocols and tools 2.set inventory boundaries 3.collect data 4.revisit inventory boundaries 5.finish data collection 6.calculate emissions 7.write report 8.share results with stakeholders 9.develop climate action plan (Plan as much as reasonable. Be ready for loops.) protocols and tools

32. 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 ≠

33. 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

34. 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 protocols and tools

35. conducting a GHG Inventory – an overview 1.identify relevant protocols and tools 2.set inventory boundaries 3.collect data 4.revisit inventory boundaries 5.finish data collection 6.calculate emissions 7.write report 8.share results with stakeholders 9.develop climate action plan (Plan as much as reasonable. Be ready for loops.) boundaries

36. 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

37. Clif Bar: big boundaries methodology for quantifying air travel GHGs substantial data needs, non-trivial calculations boundaries

38. GHG accounting 101: Scopes 1, 2 and 3 Source: World Resources Institute boundaries

39. 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…

40. Feel free to contact me: Kelly Hoell kelly.hoell@goodcompany.com (541) 341-GOOD (4663), ext. 217 See you Tuesday. Have a good weekend!