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BEIJING CHARLOTTE CHICAGO GENEVA HONG KONG HOUSTON LONDON LOS ANGELES NEW YORK NEWARK MOSCOW PARIS SAN FRANCISCO SHANGHAI WASHINGTON, D.C.
• According to Energy Information Administration's Annual Energy Outlook 2011 for the period 2010 to 2035, 223 gigawatts of new generating capacity will be needed:
• 93% of Accenture-surveyed CEOs see sustainability as important to their company’s future success (A New Era of Sustainability, UN Global Compact-Accenture CEO Study 2010 (“Accenture Study”, at 10, 19)
• 96 % of Accenture-surveyed CEOs believe sustainability should be fully integrated into the strategy and operations of a company (Accenture Study, at 32)
• 88% of Accenture-surveyed CEOs believe that sustainability should be integrated through their supply chain (Accenture Study, at 35)
Sustainability: The Traditional Paradigm • Defensive, Involuntary, Regulatory Compliance • Laws and regulations requiring compliance • Driver, avoidance of civil and sometimes criminal penalties • Energy
• Renewable Portfolio Standards (CA, 33%) • Energy Independence • Competition with fossil-fuel generation (Coal, Gas) • Purchaser Monopsony Utilities • Economic focus on comparative price of electron • Fossil-fuels win, externalities and commercial value ignored.
Sustainability: The Traditional Paradigm • Environmental
• Clean Air and Water Acts (Federal and state) • Climate Change Initiatives (Federal, state, international (Kyoto)) • Greenhouse Gas Emission Reductions (AB 32, CA) • Federal and state Environmental Protection Agencies • State Regulators and lawmakers • Issues of penalty to competitiveness of business and jobs • Economic impact on states with high dependency on fossil-fuel
generation and stakeholder interests (oil, coal, gas companies, utilities, and labor unions)
• Recent barrage of federal legislation to block EPA and federal governments from regulating emission reductions
• Offensive, Voluntary, Commercial Strategic Plans • Economic Proposition, the “Green” Product • Voluntary spending by corporations for economic gain
• Responding to demands by customers (wholesale) • Responding to demands by consumers (retail) • Responding to demands by Board Members and Shareholders • Sustainability evaluations in procurement
• Value proposition no longer losing comparison with electron from traditional fossil-fuel generation
• Value proposition is commercial value of “Green” products and services (Marketing “Green”)
• Economic, Commercial Value Proposition is significant game changer as compared to playbook of last three decades
• Externalities and commercial values weigh in decision making • Cost of “Green” no longer solely electric ratepayer issue • Higher cost of electron absorbed in market and sales
• Fritolay (SunChips) • Dow Chemical • The Proctor & Gamble Paper Products Co. • Walmart
• Seen by leading companies as essential to their future • Compelling data from CEOs and Executive Managers