1. The Climate Leaders Partnership January 8, 2007 Leslie Cordes Chief, Energy Supply and Industry Branch Climate Protection Partnerships Division Environmental Protection Agency

2. Shareholder pressure/fiduciary responsibility 42 resolutions in 2007 proxy season; CERES; CDP; GRI Public interest increasing News stories, magazines, movies Employee satisfaction Want to feel employer is good corporate citizen Save $$ – bottom line benefits 15-30% IRR for efficiency Business opportunities General Electric, DuPont, United Technologies, General Motors, Become well-informed player in policy discussions Much activity at the federal & state level Climate Change is an Important Strategic Issue for Companies

3. Quick Stats on Climate Leaders Effective corporate climate strategy, road-tested with ~153 partners from every major sector across the country (53 new in 2007 alone) 10% US GDP 8% US Emissions 80 Partners have publicly announced goals Nearly 50 MMTCO2 annually ~8.7 million cars 11 Partners achieved their greenhouse gas reduction goals Every year the Climate Leaders partnership prevents the equivalent of the emissions of 7 million cars from entering the atmosphere!

4. Reasons to Participate in Climate Leaders Reduce impact on the global environment Better manage greenhouse gas emissions and associated risks Realize cost savings through energy efficiency Receive expert EPA technical assistance on inventories Participate in national public recognition campaigns Engage with other partner companies demonstrating climate leadership Access the latest GHG tools, technologies & protocols Improve understanding of critical policy discussions Integrate climate change strategies with State, Regional, and International GHG accounting schemes Get a jump start on new mandatory reporting requirements

5. Select Climate Leader Partners

6. Recruitment Channels Strategic recruiting: Large emitters Key sectors (cement, pulp and paper, manufacturing, steel, and chemicals) Fortune 500 Widely recognized companies Partner referrals Regional offices and other voluntary partnerships Speeches and conferences Other (PSAs, articles, trade associations)

7. Climate Leader Partnership Components The Partnership provides technical assistance and staff guidance to companies for carrying out the three major components of a comprehensive climate program: Complete a Corporate-Wide GHG Inventory Develop an Inventory Management Plan (IMP) Set Aggressive a Corporate-Wide GHG Reduction Goal Annual reporting to EPA creates lasting record of accomplishments and identifies company as corporate environmental leader

8. First Component: Develop a Customized Inventory Based on International WRI/WBCSD GHG Protocol 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

9. 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

10. 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

11. 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

12. 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 Public Service Announcements (PSAs) in mainstream consumer press 2006 PSA led to >$1 million in ad value

13. Successfully Leverage Resources Climate Leaders Partnership builds on its relatively modest budget by leveraging the following: Strong EPA technical and communications staff EPA Voluntary Partnerships (Energy Star, Green Power Partnership, Smart Way, Green Chill, etc) State and local climate initiatives In-house technical expertise within Partner companies Public Service Announcements, press & media stories on program, and other outreach Strong momentum for action on climate change

14. Summary of Climate Leader Benefits Free technical assistance Assistance in developing a GHG inventory Review of Partner’s Inventory Management Plan Assistance in setting a GHG reduction goal Peer exchange through Climate Leaders Partners meetings Credibility Assurance that Partners have created a high-quality GHG management process. A credible and aggressive GHG emissions reduction mechanism. National recognition Press events. Public service announcements and advertising opportunities. Speaking engagements at industry conferences. Case studies highlighting Partner achievements in articles, newsletters, and online. Partner profiles on Web site

15. Contact Information Leslie Cordes Chief, Energy Supply and Industry Branch Office of Air and Radiation (202) 343-9003 cordes.leslie@epa.gov www.epa.gov/climateleaders