1. SETTING THE STANDARD IN GREENHOUSE GAS MANAGEMENT CLIMATE LEADERS Indiana P2 Conference September 16, 2009 Melissa Hulting, U.S. EPA Region 5

2. What is Climate Leaders? Climate Leaders is a voluntary EPA program to assist companies in reducing their greenhouse gas emissions. Climate Leaders works with companies to develop credible corporate GHG strategies. 3 critical components to credible GHG strategy Complete Corporate-Wide GHG Inventory Develop Inventory Management Plan (IMP) Set Aggressive Corporate-Wide GHG Reduction Goal Annual reporting to EPA creates lasting record of accomplishments

3. What are the benefits to your company? Why should you join? Free technical assistance for inventory and reporting A credible GHG inventory and reduction goal Public recognition—Identifies your company as a corporate environmental leader

4. Who are our Partners? Over 280 Partners of all sizes in many sectors, with operations in all 50 states Half are Fortune 500 companies, but the number of small and medium-sized companies is growing Total annual U.S. revenue of Partners represents 12% of the U.S. Gross Domestic Product Largest corporate greenhouse gas goal-setting program, with over 8% of U.S. GHG emissions Goals pledged in program reduce annual emissions equivalent to 9 million cars

5. Growing Popularity of the Program 100 companies joined the program in 2008, and we are on target to have just as many join in 2009. Administration’s attention on climate change and energy use Many companies are joining to understand and manage their carbon footprint, then set a reduction goal to lessen their impact on the global environment.

6. The Company We Keep

7. The Company We Keep In INDIANA!!!! "Cummins joining Climate Leaders is the right thing to do from both a stewardship and business perspective. Businesses like Cummins can and should take concrete steps to assess opportunities for emissions reductions, establish and meet emission reduction objectives and invest in new, more efficient products, practices and technologies.” Christine Vujovich, VP, Marketing and Environmental Policy. “The EPA Climate Leaders program is an excellent forum for Peerless to proceed with our environmental improvements and goals. The very nature of our products enable us to play a leading role in saving tons of carbon each year by the selection and optimum design of our premium high volume water movement systems.” “Berry Plastics is committed to managing our carbon footprint through five sustainability focus areas within our corporation — emissions, energy, waste, materials, and packaging. Joining EPA's Climate Leaders program will allow Berry Plastics to establish our emissions baseline and create a corporate strategy around emissions reduction.” StatePartners IL12 IN4 MI11 MN8 OH12 WI7

8. Program Participation Steps Partner Joins Program EPA assists Partner in developing inventory and inventory management plan (generally within 1 year) Partner reports annual inventory data to EPA and documents progress toward goal Partner may participate in meetings, public outreach, press events, etc. Partner sets corporate wide 5-10 year GHG reduction goal, domestic or global Partner Achieves Goal

9. First Component: Develop a Customized Inventory Required Corporate-wide (all U.S. operations) 6 major GHGs Direct emissions Indirect emissions from electricity, heat, and steam Optional International operations Offset projects Employee travel and commuting Product transport Based on International WRI/WBCSD GHG Protocol

10. Second Component: Create an Inventory Management Plan EPA provides checklist of components for good IMP to use as guideline when preparing documentation EPA offers technical assistance to help companies complete IMP documentation Institutionalizes process Partners develop and implement an IMP or a similar collection of Standard Operating Procedures and document process for EPA

11. Ensuring Credibility of Inventory Data and Management Process EPA technical assistance for inventory/IMP development and reporting process Desktop reviews of corporate level inventory data and how IMP components are addressed Onsite review of implementation of IMP CL does not offer third-party verification, but meeting reporting requirements will ensure that credible/verifiable inventory process is in place Third-party verification option (must meet same criteria as CL reporting requirements)

12. Third Component: Set an aggressive, long-term GHG reduction goal EPA offers flexibility in setting a GHG reduction goal because every company has a unique set of emissions sources and reduction opportunities. The goal must be: Corporate-wide (domestic or global) Based on the most recent base year for which data is available Achieved over 5 to 10 years Expressed as an absolute GHG reduction or as a decrease in GHG intensity Aggressive compared to the projected GHG performance for the Partner’s sector Climate Leaders publicizes goals through a national advertising campaign, web site, marketing materials and speaking engagements

13. Types of GHG Reduction Goals Absolute Applied Materials pledges to reduce total global GHG emissions by 20 percent from 2006 to 2012. Normalized Interface, Inc. pledges to reduce U.S. GHG emissions by 15 percent per unit of production from 2001 to 2010. Index Ball Corporation pledges to reduce total U.S. GHG emissions by 16 percent per production index from 2002 to 2012. Net Zero (“Carbon Neutral”) Melaver, Inc. pledges to achieve net zero U.S. GHG emissions by 2006 and maintain that level through 2009.

14. National Public Recognition Climate Leaders Partners receive high-level recognition via: Press events Page on CL web site Articles in local, national, and trade magazines Partner conferences, newsletters, speaking opportunities Special advertising opportunities in Forbes, Natl Geo, Economist Public Service Announcements (PSAs): 2007-8 campaign audience >10 million in Forbes, Kiplingers, Audobon, Fast Company

15. Program Positioning External Largest greenhouse gas goal setting program Other initiatives are registries Internal Energy Star and GPP can be components of Climate Leaders Many voluntary programs are looking at climate CL will operate as a complement to legislation/regulation

16. Corporate Benefits Cost savings from energy efficiency – IBM has saved $74 million from 2002-2006 Preparation for regulation, understanding of policy Engage with other partner companies demonstrating climate leadership Credible climate management strategy Internal support and alignment for environmental goals Good corporate citizen – important to shareholders, customers, employees Green reputation

17. Benefits of Climate Leaders participation in investor measurements of risk Carbon Disclosure Project Backed with $57 trillion in assets from 385 global investors Dow Jones Sustainability Index, KLD Global Climate Index, Calvert Funds Climate Leaders participation is one criteria for inclusion Climate Counts Scorecard Climate Leaders participation avoids the “red” zone Investor Rankings

18. New for 2009 Free webinar series: www.epa.gov/climateleaders/events www.epa.gov/climateleaders/events Offsets guidance and project checklist Meetings and conferences guidance Annual conference for Partners: December in DC Agenda of new Administration

19. Contact Information Melissa Hulting EPA Region 5 Climate Change Coordinator (312) 886-2265 hulting.melissa@epa.gov Verena Radulovic EPA Climate Leaders (202) 343-9845 radulovic.verena@epa.gov www.epa.gov/climateleaders