2011 Key Themes and Highlights
behavioral change activities having a payback period of less than one year. These activities include the training and education of staff in appropriate behaviors such as low carbon commuting and maximizing energy efficiency of IT stations. Through their products and interactions with clients, companies are also trying to change customers’ attitudes to climate change. Labeling and direct marketing were also noted as activities to change people’s behavior. The range of responses from the Global 500 provides further insight into these types of activities:
“A Green IT Hardware Purchasing Policy, which was defined in 2010 and came into force in 2011, requires all IT hardware purchasing requests for proposals to include a Green IT section. Energy Star and EPEAT have been adopted as Group-wide standards for all IT product purchases. This measure is voluntary in nature and an ongoing activity with an indefinite time horizon.” Allianz
“By providing incentives, education and awareness on environmental matters to its employees and suppliers, we encourage people to make the right choices and promote sustainable behavior both at work and in their domestic situations. In 2010, UBS provided training and awareness raising to some 10,000 employees.” UBS
Figure 12 also shows that companies have implemented activities across a range of timeframes. 152 companies undertook 329 initiatives with expected paybacks of less than one year; 188 companies undertook 502 initiatives with expected paybacks of between one and three years; and 193 companies undertook 570 initiatives with an expected payback of greater than three years. This willingness to invest in activities with a medium to long term
payback – such as building services (119 activities) and low carbon energy installations (106 activities) – is evidence that companies regard energy and emissions reduction as an important strategic priority.
“ReCon and Green Teams in Manufacturing Sites and Offices. This is a voluntary initiative impacting scope 1 and 2. This goal is on-going as PepsiCo is constantly striving to train, re-train, and improve our workforce on reduction of energy and climate change causing greenhouse gases. This is a long term initiative expected to last greater than 20 years.” PepsiCo
“APM Terminals has embarked on a program to convert and retrofit more than 400 Rubber-Tired Gantry Cranes (RTGs) in use. The new hybrid cranes at our terminals will reduce CO2 emissions up to 80% compared to ports with conventional diesel-powered cranes.” A.P. Moller – Maersk
“PSE&G had invested approximately $135 million in its EE programs by directly installing measures and/or providing grants, loans and incentives to almost 9,000 residential customers, 185 municipal entities, 19 hospitals and 532 small to medium sized businesses and achieving lifetime savings of approximately 400 GWh.” Public Service Enterprise Group
Companies are also embracing ‘quick win’ projects which have a rapid return on investment and have reported savings of up to ten times the value of the investment. Typical activities included the refurbishment of buildings to reduce emissions and improve energy efficiency.
“Since the launch of its Energy Best Practices Program in 2004, the Company continues to challenge
property managers to examine their operating practices and adapt best practices to trim energy costs without affecting comfort, safety or reliability. Under the Best Practices Program, substantial energy savings are generated through low cost/no cost measures, e.g. by minimizing energy use in vacant spaces or by keeping tight control over hours of operation for all lighting systems in the common area, parking lots, and back of the house areas to minimize costs without affecting comfort, safety, or reliability.” Simon Property Group
Integrating Low Carbon growth into Business Strategy
Companies have improved the linkage between their climate change strategy and their core business strategy, and the involvement of senior managers in this. This is all part of the clear drive for profitable, low carbon growth and provides a base from which companies can work to meet the emissions reduction required to avoid dangerous climate change. Indeed, the proportion of respondents with responsibility for climate change at the board or other senior management level increased to 93% (368) this year, up from 85% (328) in 2010.
Integration of climate change into business strategy has seen an impressive 20 percentage point increase from 48% (187) of companies in 2010 to 68% (269) in 2011. This is a reflection of the growing importance placed by companies on climate change. The value of placing climate change on the agenda of business strategy is increasingly being recognized by companies, with 72% (286) of companies rewarding employees through incentives linked to climate change. 65% (259) of respondents have monetary incentives in place (2010: 49%, 188). The remaining 7%
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