by Suzanne Andrews Dr. Chris Caplice May 20, 2009ctl.mit.edu/.../files/library/public/theses_2009_Andrews_Presentation.… · (GHG) emissions for which an entity is responsible (The

bySuzanne AndrewsDr. Chris Caplice

May 20, 2009

Global WarmingCorporate PerspectiveCarbon Footprint Methods

• Concerns• Benefits and Costs• Long-term Ramifications

The Full Environmental Picture

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The percent increase in greenhouse gas (GHG) concentration in the atmosphere maybe harmful.

How can a company classify and choose an appropriate method to measure its GHG output?

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To classify the current methods used by companies to measure their GHG output.

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GHGs:• Carbon Dioxide (CO2)• Methane (CH4)• Nitrous Oxide (N2O)

GHGs naturally absorb and re-radiate sun’s energy.Excessive amounts lead to Global Warming.

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GHG Lifetime (years) SourceCO2 50-200 Fossil fuel

combustion, land use conversion, cement production

CH4 12-17 Fossil fuels, rice paddies, livestock, waste dumps

N2O 120-150 Fertilizer, industrial processes combustion

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The total amount of greenhouse gas (GHG) emissions for which an entity is responsible (The Carbon Trust, 2008).

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Source: British Standards Institute 8

68%

16%

13%

3%

Individual/Household Industry

Office/Company Product

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There are so few because companies have not been able to figure out what to include or exclude in a GHG measurement.

The Greenhouse Gas Protocol Corporate Standard (GHG Protocol).

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Source: World Resources Institute 11

Source: Johnson (2008) 12

Source: PE International 13

Source: The Carbon Trust 14

Source: ESU Services 15

Criteria GHG Protocol PAS 2050Company Level Reporting √

Product Level Reporting √

Internal Reporting √

External Reporting √

Hotspot Analysis √ √

Detailed Analysis √

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GHG Protocol◦ Incomplete picture

Does not address customer-level concerns:How green is the product?

Cannot meet business-to-business requests for product-level information

For comparative purposes

PAS 2050◦ Incomplete picture

Does not address company-level concernsRegulatory and financial issues

Not designed for external reporting, therefore product-to-product comparisons are not possible

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First StepsCatalystsNeed for more holistic CF methods

But Global Warming is just one of several environmental effects that are perceived to be harmful.

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Photochemical oxidationAcidificationEutrophicationOzone layer depletionHuman and eco-toxicityLand competitionAbiotic depletionRadioactive wastes and emissions

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20 gallons of water to make a pint of beer 132 gallons of water to make a 2-liter bottle of soda500 gallons of water, including water used to grow, dye and process the cotton, to make a pair of Levi’s stonewashed jeans

Source: Wall Street Journal (Feb, 2009).

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No

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Thank You!

Questions?

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