1. Voluntary Corporate Climate Change Activities and Drivers for Participation Cynthia Cummis Climate Protection Partnerships Division U.S. EPA

2. A Number of Climate Change Developments Affecting U.S. Companies u Federal u State u Non-Governmental Organizations u International u Financial Community

3. Federal Developments u EPA’s Climate Leaders Ø companies complete corporate-wide GHG inventory and track progress on entity-wide targets Ø currently 67 Partners with 28 announced targets u Dept. of Energy’s 1605(b) Program Ø allows companies to register entity-based reductions and to report other information Ø revised version to be released in 2005 u Climate VISION sector agreements Ø includes agreements with 13 industry sectors Ø commitments range from 3-10% intensity improvements Ø BRT has goal of 100% participation of members in Climate RESOLVE

4. State Developments u Registries in place Ø CA, NH, WI Ø others in development u GHG reduction programs Ø CA auto efficiency, OR power plant CO 2 mitigation, MA, NH - CO 2 cap & trade, North East RGGI – cap and trade, WI, ME, CT – reporting requirements u GHG reduction goals Ø NE/E. Canada, NY, CT Ø WA, OR and CA under development

5. NGO Developments u Chicago Climate Exchange Ø GHG emission reduction and trading pilot program u WWF’s Climate Savers Ø works with 8 companies that agreed to absolute GHG reduction targets u ED’s Partnership for Climate Action Ø companies set reduction target, publicly report, and trade emissions credits u World Economic Forum GHG Registry Ø only global GHG registry

6. International Developments u Kyoto comes into force in February 2005 u Emissions reduction and trading schemes Ø Japan - 6% below 1990, Environment Ministry proposing carbon tax Ø EU - 8% below 1990, trading scheme began January 2005 involving 12,000 facilities Ø Canada - 6% below 1990, trading scheme planned with price cap u Voluntary GHG reporting schemes Ø WRI/WBCSD Corporate GHG Protocol (www.ghgprotocol.org) - published second edition in 2004www.ghgprotocol.org Ø ISO 14000 series GHG accounting standards – Draft International Standard available for comment

7. Financial Community Developments u 28 shareholder resolutions filed on climate change in 2004 - up from six in 2001 and 19 in 2002. Ø i.e. Cinergy, AEP, General Motors u New investor initiatives: Ø UN Investor Summit on Climate Risk in 2004 explored connection between climate risk and fiduciary responsibility (+$1 trillion in assets represented) Ø 10-point “Call for Action” – 10 major investors request steps by the U.S. Securities and Exchange Commission, corporate boards, and Wall Street firms to increase disclosure of the risks posed by climate change (+$250 billion in assets) Ø Carbon Disclosure Project requests 500 largest companies disclose GHG emissions (95 investors are signatories,+$9 trillion assets)

8. Drivers for Participation in Voluntary Initiatives u demonstrate effectiveness of voluntary approach u cost savings u shareholder resolutions u risk management approach u competitive advantage u corporate image u CEO believes it is the right thing to do u influence direction of climate change policy u educate themselves on the issue

9. The Company We Keep

10. Contact Information Cynthia Cummis U.S. EPA Climate Protection Partnerships Division 202/343-9232 cummis.cynthia@epa.gov