Business Advantage On A Warming Planet Jonathan Lash World Resources Institute

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Business Advantage OnA Warming PlanetJonathan
Lash World Resources Institute
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Climate Competitiveness with the Auto Industry
Source World Resources Institute and Sustainable
Asset Management
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Comparison of Fuel Economy and GHG Emissions
Standards around the World
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Atmospheric Carbon Dioxide (CO2) Concentrations
Source C.D. Keeling and T.P. Whorf, Atmospheric
CO2 Concentrations (ppmv) derived from in situ
air samples collected at Mauna Loa Observatory,
Hawaii, Scripps Institute of Oceanography, August
1998. A. Neftel et al, Historical CO2 Record
from the Siple Station Ice Core, Physics
Institute, University of Bern, Switzerland,
September 1994. See http//cdiac.esd.ornl.gov/tre
nds/co2/contents.htm
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Millennial N. Hemisphere (AD1000-1999)
Source IPCC TAR
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Dramatic Changes An Ice-free Arctic?
1979-2003 Progressive Loss of Arctic Ice
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Water withdrawals from rivers/lakes doubled since
1960
Lake Chad
1960 Worlds 6th largest lake
1963 2001 shrunk 95, wetlands spoilt
Source UNEP ONE PLANET MANY PEOPLE Atlas of
our Changing Environment
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The Frequency of Weather Related Disasters
Data from Swiss Re 2005
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Global Ocean Currents
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A More Poisonous Poison Ivy
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U.S. Emerging State-Level CO2 Regulation
Source CO2e.com
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www.azfoo.net
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Projections of CO2 and Temperature to 2100
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Temperature Projections and Risk
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Wedges
Billion of Tons of Carbon Emitted per Year
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14 GtC/y
Currently projected path
Seven wedges
O
Historical emissions
7 GtC/y
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Flat path
1.9 ?
0
2105
2055
2005
1955
Source Robert Socolw, www.princeton.edu/cmi
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Fill the Stabilization Triangle with Seven Wedges
Reforestation
Biofuels
Carbon Capture Storage
14 GtC/y
Energy Efficiency
Stabilization
Wind power
Triangle
7 GtC/y
2004
2054
Mass transit
Coal-based Synfuels with CCS
Adapted from Robert Socolw, www.princeton.edu/cm
i
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How Climate Risk Influences Corporate Value
Climate Risk
Sector Level
Political / Regulatory
Physical Risk
Supply Chain
Company Level
Products / Technology
Litigation
Reputation / Brand
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Hurricane Katrina
August 28, 2005
Photo Credit NASA/Jeff Schmaltz, MODIS Land
Rapid Response Team
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How Climate Risk Influences Corporate Value
Climate Risk
Sector Level
Political / Regulatory
Physical Risk
Supply Chain
Company Level
Products / Technology
Litigation
Reputation / Brand
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How Climate Risk Influences Corporate Value
Climate Risk
Sector Level
Political / Regulatory
Physical Risk
Supply Chain
Company Level
Products / Technology
Litigation
Reputation / Brand
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How Climate Risk Influences Corporate Value
Climate Risk
Sector Level
Political / Regulatory
Physical Risk
Supply Chain
Company Level
Products / Technology
Litigation
Reputation / Brand
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New Patterns of Pest Damage
The New York Times, June 25, 2002
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How Climate Risk Influences Corporate Value
Climate Risk
Sector Level
Political / Regulatory
Physical Risk
Supply Chain
Company Level
Products / Technology
Litigation
Reputation / Brand
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(No Transcript)
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How Climate Risk Influences Corporate Value
Climate Risk
Sector Level
Political / Regulatory
Physical Risk
Supply Chain
Company Level
Products / Technology
Litigation
Reputation / Brand
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(No Transcript)
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Potential Climate Change Impacts on Cash Flows
and Cost of Capital
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MeMAC 4 Steps to Business Advantage

1. Measure - Quantify the Companys Carbon Footprint
2. Manage - Mitigating Climate Value at Risk
3. Adapt - Use Knowledge Gained to Adapt to Climate
   Risk
4. Compete - Develop a Climate Competitive
   Advantage

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Managing Risk Measure/Manage
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GPMDG

• Alcoa Inc.
• Cargill Dow LLC
• Delphi Corporation
• Dow Chemical Company
• DuPont
• FedEx Kinko's
• General Motors
• IBM
• Interface
• Johnson Johnson
• NatureWorks LLC
• Pitney Bowes
• Staples
• Starbucks

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GE Ecomagination
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Producing plastics, for packaging and fibers,
from 100 annually renewable resources
2005 new green power purchase
59 million kWh/year of Green-e certified RECs Generated by 22 MW of wind turbines in Great Plains
Business case
Offset 100 of the companys net greenhouse gas emissions from polymer production and the worlds largest lactic acid plant NatureWorks PLA is now the worlds first greenhouse-gas neutral polymer
Photo courtesy of Sterling Planet
Insert photo of PLA product
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Interface GHGs Down, Returns Up
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New York City circa 1950
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New York City December 2001
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