EventAugust 07, 2013
While manufacturing is a critical part of the U.S. economy, it’s struggled over the last several years—both financially and environmentally. Overall U.S. manufacturing employment has dropped by more than one-third since 2000. Meanwhile, U.S. industry—of which manufacturing is the largest component—still uses more energy than any other sector and serves as the largest source of U.S. and global greenhouse gas emissions.
The good news is that energy efficiency can help U.S. manufacturing increase profits, protect jobs, and lead the development of a low-carbon economy. The Midwest’s pulp and paper industry is a case in point: New WRI analysis finds that the pulp and paper sector—the third-largest energy user in U.S. manufacturing—could cost-effectively reduce its energy use in the Midwest by 25 percent through use of existing technologies. These improvements could save hundreds of thousands of jobs, lower costs, and help the United States achieve its goal of reducing emissions by 17 percent by 2020. As the White House moves to cut carbon dioxide pollution in America, energy efficiency improvements in Midwest pulp and paper mills are a tangible example of the win-win-win emissions-reduction opportunities in U.S. industry.
Hundreds of companies and organizations around the world are using GHG Protocol standards and tools to manage their GHG emissions and become more efficient, resilient, and prosperous organizations.
This post was co-authored with Carita Chan, an intern with WRI's forests initiative.
As the crisis of tropical deforestation reaches a new level of urgency due to forest fires raging in Indonesia, an important question is how can the world satisfy the growing demand for forest products while still preserving forest ecosystems? This week, some of the world’s largest companies will join U.S. and Indonesian government officials in Jakarta at the Tropical Forest Alliance 2020 (TFA 2020) meeting to discuss this issue.
The meeting comes three years after the Consumer Goods Forum (CGF), a group of the world’s 400 largest consumer goods companies from 70 countries, announced their commitment to source only deforestation-free commodities in their supply chains and help achieve net-zero deforestation by 2020. The TFA 2020, a public-private partnership established in 2012 at the Rio+20 Summit, aims to provide concrete guidance on how to implement the forum’s pledge.
The world’s two largest greenhouse gas emitters—the United States and China—have been forging a growing bond in combating climate change. Just last week, President Obama and President Xi made a landmark agreement to work towards reducing hydrofluorocarbons (HFCs), a potent greenhouse gas. And both the United States and China are leading global investment and development of clean energy. The United States invested $30.4 billion and added 16.9 GW of wind and solar capacity in 2012. China invested $58.4 billion and added 19.2 GW in capacity.
U.S.-China cooperation on clean energy was the topic of discussion at an event last week at the Woodrow Wilson International Center’s China Environment Forum. Experts from the World Resources Institute and the American Council on Renewable Energy (ACORE) looked at this cooperation from a seldom-discussed viewpoint – China’s renewable energy investments in the United States.
China’s Growing Overseas Investments in Renewable Energy
As new WRI analysis shows, Chinese companies have made at least 124 investments in solar and wind industries in 33 countries over the past decade (2002 – 2011). The United States is the number one destination of these investments, hosting at least eight wind projects and 24 solar projects. The majority of the investments went into solar PV power plant and wind farm development, while a few investments went into manufacturing or sales support.
Measuring, mapping and understanding water risks around the globe.
Scientific understanding of the chemicals that contribute to climate change is constantly improving. So, too, is the Greenhouse Gas Protocol (GHGP), as we work to keep abreast of such advances and ensure that they are reflected in our tools and standards.
One recent example concerns the greenhouse gas (GHG) nitrogen trifluoride (NF3), a chemical that is released in some high-tech industries, including in the manufacture of many electronics. The GHG Protocol now requires NF3 to be included in GHG inventories under the Corporate Standard, Value Chain (Scope 3) Standard, and Product Standard. A new GHGP Amendment updates the existing requirements.
How does this update affect my organization?
NF3 is used in a relatively small number of industrial processes. It is primarily produced in the manufacture of semiconductors and LCD (Liquid Crystal Display) panels, and certain types of solar panels and chemical lasers. To the extent that these processes occur in your company’s direct operations or value chain, they may need to be reflected in future inventories to ensure conformance with GHG Protocol standards.
Investors need to understand a wide variety of business and market risks facing the companies in which they invest. In the 21st century, that includes water risks.
An increasing number of companies are experiencing detrimental water-related business impacts, including operational or supply chain disruptions and property damage from flooding, to name a few. These impacts can be costly--in 2011 they cost some companies up to $200 million--and have caught the attention of investors around the world.
As a result, the movement toward increased Corporate Water Disclosure is gaining speed. The deadline for companies to respond to the CDP 2013 Water Disclosure Questionnaire is six weeks away. To make the reporting process easier, WRI has aligned our Aqueduct Water Risk Atlas with CDP’s water questionnaire. Together, we are providing step-by-step guidance on how to measure and report exposure to water-related risks.
This webinar – co-hosted by WRI and CDP – takes a close look at how companies can use Aqueduct and respond to the 2013 CDP Water Questionnaire.
A number of programs that require businesses to report their greenhouse gas (GHG) emissions have emerged in the past decade at the regional, national, and sub-national levels. Most of these programs operate in developed countries, but some developing countries are also showing an interest in adopting mandatory emissions disclosure programs.
Establishing these programs is a resource- and time-intensive exercise. It can be a daunting task for developing countries with competing priorities and limited resources. So where can these countries begin as they consider setting up their greenhouse gas reporting schemes?
WRI’s new working paper, Designing Greenhouse Gas Reporting Systems: Learning from Existing Programs, reviews corporate and facility-level greenhouse gas reporting programs in Australia, California, Canada, the European Union, France, Japan, the United Kingdom, and the United States. The paper identifies steps to implement a mandatory reporting program and discusses factors to be considered at each step in designing the program.
It also discusses some strategies for developing countries keen to set up reporting programs. Developing countries may find it easier to adopt a gradual, phased approach to develop a reporting program. Engaging in the following three key steps allows developing nations to make the most of their more limited resources:
WRI’s New Ventures project identifies, mentors, and provides small and medium-sized enterprises (SMEs) with access to investment. New Ventures operates in five of the world’s most vibrant emerging economies – Brazil, China, India, Indonesia, and Mexico – where current business and development trends will impact the entire world. In 2007, New Ventures Mexico launched an independent institution – Centro de Negocios Sustentables. With a $400,000 grant from Mexico’s Ministry of Economics, the Center, the first of its kind in Mexico, provides sustainable SMEs with a wide range of services from business acceleration and incubation to market access through the Green Pages. Since its founding, New Ventures has provided comprehensive support to over 150 entrepreneurs and facilitated $38 million in investments for sustainable companies.
Four years ago, few financial firms factored climate change impacts into their operations. Now, due in large part to WRI’s work to examine the risks and opportunities that climate change is creating for business, industry leaders such as ABN AMRO, Bank of America, Citi, Goldman Sachs, HSBC, JPMorgan Chase, and Lehman Brothers are committing significant resources and billions of dollars toward cleaner technologies and climate change solutions. What started as “boutique research” is now a mainstream issue. WRI believes that financial markets attuned to environmental issues will create powerful incentives for companies to improve their environmental performance, while also ensuring better returns for investors.
In early 2007, the politics of climate change experienced a tectonic shift when the CEOs of ten major corporations and four national environmental groups – including WRI – joined together in calling on the U.S. government to quickly enact strong national legislation requiring significant reductions in greenhouse gas (GHG) emissions. The U.S. Climate Action Partnership (USCAP) and its bold proposals have advanced the policy debate in Congress. As USCAP membership grows (now at thirty one participating organizations representing over 2 million people in membership and over $2 trillion in market capitalization) so does the number of climate bills introduced. WRI was instrumental in the formation of USCAP, which is the result of a ten-year effort to engage the private sector in the design of business strategies and market-based policies to achieve strong national GHG reduction goals.
The Case of Midwest Pulp and Paper Mills
This report highlights the critical role of energy efficiency in improving the economic and environmental performance of Midwest pulp and paper mills. WRI’s analysis finds that less efficient facilities could realize significant annual energy cost savings, and decrease their greenhouse gas...
The Asian Development Bank was established in 1966 to help its forty eight developing member countries reduce poverty and improve the quality of life of their citizens. In 2009, the Bank launched a new program of technical assistance to encourage the growth of small- and medium-enterprises (SMEs) in India and Indonesia that provide environmental and social benefits.
Ella Delio works in WRI’s New Ventures project, which promotes business solutions that align the need for sound financial returns with environmental and social goals. She and her team were the Bank’s primary advisors in developing the new program. “SMEs,” Delio explains, “are the engines of equitable economic growth in emerging market nations. Accounting for an average of 34% of the GDP and employing in excess of 60% of the labor force, SMEs are great sources of innovation and often provide strong linkages to poor communities. They have the capacity to transform the economic development paradigm by delivering business models that are pro-poor and pro-environment.”
Alexander Perera leads WRI’s work in renewable energy. Looking back to the year 2000, he recounts how few companies were thinking about green power options and how few utilities offered them. “Commercial and industrial use of renewable energy in the U.S. totaled less than 250 megawatts – equal to just one quarter the output of a large coal-fired power plant.”
Nine years later, a pioneering group of fifteen U.S. companies quadrupled this output, reaching a collective goal of purchasing 1,000 megawatts of new, cost competitive green power generated from renewable resources. In reaching this landmark, the Green Power Market Development Group (GPMDG) has helped catalyze a dramatic scale up of the domestic renewables industry.
WRI convened the Group and has worked with companies to explore workable renewable energy technologies, financing strategies, and partnership arrangements. It also helped the Group establish best practices for green power purchasing. “Companies now obtain green power from a variety of sources,” says Perera, “including solar and wind power, biomass, low-impact hydropower, and landfill gas.”
Core members of the GPMDG include Alcoa, Dow Chemical, DuPont, FedEx, GM, Georgia-Pacific, Google, IBM, Interface, J&J, Michelin NA, Natureworks, Pitney Bowes, Staples, and Starbucks.