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

Voluntary Corporate Climate Change

Activities and Drivers for Participation

Cynthia CummisClimate Protection Partnerships

DivisionU.S. EPA

A Number of Climate Change Developments Affecting U.S. Companies

Federal State Non-Governmental Organizations International Financial Community

Federal Developments

EPA’s Climate Leaders companies complete corporate-wide GHG inventory and

track progress on entity-wide targets currently 67 Partners with 28 announced targets

Dept. of Energy’s 1605(b) Program allows companies to register entity-based reductions and

to report other information revised version to be released in 2005

Climate VISION sector agreements includes agreements with 13 industry sectors commitments range from 3-10% intensity improvements BRT has goal of 100% participation of members in Climate

RESOLVE

State Developments

Registries in place CA, NH, WI others in development

GHG reduction programs CA auto efficiency, OR power plant CO2

mitigation, MA, NH - CO2 cap & trade, North East RGGI – cap and trade, WI, ME, CT – reporting requirements

GHG reduction goals NE/E. Canada, NY, CT WA, OR and CA under development

NGO Developments

Chicago Climate Exchange GHG emission reduction and trading pilot program

WWF’s Climate Savers works with 8 companies that agreed to absolute GHG

reduction targets ED’s Partnership for Climate Action

companies set reduction target, publicly report, and trade emissions credits

World Economic Forum GHG Registry only global GHG registry

International Developments

Kyoto comes into force in February 2005 Emissions reduction and trading schemes

Japan - 6% below 1990, Environment Ministry proposing carbon tax

EU - 8% below 1990, trading scheme began January 2005 involving 12,000 facilities

Canada - 6% below 1990, trading scheme planned with price cap

Voluntary GHG reporting schemes WRI/WBCSD Corporate GHG Protocol (

www.ghgprotocol.org) - published second edition in 2004

ISO 14000 series GHG accounting standards – Draft International Standard available for comment

Financial Community Developments

28 shareholder resolutions filed on climate change in 2004 - up from six in 2001 and 19 in 2002. i.e. Cinergy, AEP, General Motors

New investor initiatives: UN Investor Summit on Climate Risk in 2004 explored

connection between climate risk and fiduciary responsibility (+$1 trillion in assets represented)

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)

Carbon Disclosure Project requests 500 largest companies disclose GHG emissions (95 investors are signatories,+$9 trillion assets)

Drivers for Participation in Voluntary Initiatives

demonstrate effectiveness of voluntary approach

cost savings shareholder resolutions risk management approach competitive advantage corporate image CEO believes it is the right thing to do influence direction of climate change policy educate themselves on the issue

The Company We Keep

Contact Information

Cynthia CummisU.S. EPA

Climate Protection Partnerships Division

202/[email protected]