Slides from Laura Musikanski's Triple Bottom Line Reporting workshop in Seattle, July 2010. See http://sustainableseattle.org/Programs/emergingppi/STARs/classes/20100715_TBL/ for background information and http://www.slideshare.net/sustainableseattle/getting-to-tbl-metrics for Burr Stewart's guest lecture at the same class.
- 1. Triple Bottom Line Reporting July 2010 Laura Musikanski, JD,
MBA, CEM, CELR Executive Director, Sustainable Seattle
[email_address]
2. Triple Bottom Line Reporting
-
- Definition, Background, History
-
- Burr Stewart Presentation
-
- GRI Revisited and TBL Examples
-
- Principles for TBL reports
3. Triple Bottom Line Reporting
-
- Morning Reflections & Revisit Goals
-
- Project TBL reporting and Decision Making
-
- Project TBL and Decision Making Discussion
4. Triple Bottom Line Reporting
5. Triple Bottom Line
6. Triple Bottom Line Reporting
7. Definition
- Triple Bottom Line reporting is accounting for environmental,
social and economic performance.
InternalExternal 8.
- Triple Bottom Line Reporting is Voluntary
- Financial Reporting is required by SEC
- Environmental reporting - Required under some environmental
regulations
Defining Triple Bottom Line Reporting 9. Defining Triple Bottom
Line Reporting
- Most commonly accepted definition of sustainability:
- Development that meets the needs of the present without
compromising the ability of future generations to meet their own
needs.
10. Areas of focus inOur Common Future, 1987 Security Oceans
UrbanGrowth Industry Energy Species &Ecosystems Population
&HumanResources FoodScarcity Economy SustainableDevelopment 11.
Defining Triple Bottom Line Reporting Sustainability is practiced
by managing environmental, social and economic impacts. Social
Economic Environmental SYNERGY 12. Establishing a common
language
- First step towards a new way of doing things
- Parallel to abuse and healing of individuals
13.
- Natural and Built Environment
Establishing a common language
People Profit Planet SYNERGY 14. Establishing a common language
Three Legged Stool 15. Establishing a common language - Graphics
Economy Jobs, Prosperity, Wealth creation Environment Natural
ResourcesBiodiversity Society SocialEquity Sense of community
Healthy Ecosystems ThrivingLocalEconomy SUSTAINABLEDEVELOPMENT 16.
Establishing a common language- graphics Environment Economy
Society
17. Establishing acommonlanguage
- Indigenous Peoples perspective of seven generations and
approach using the medicine wheel
- Medicine Wheel: An understanding of the Cyclical and
Interdependent nature of all
- Core: Fire, Earth, Water, Wind
- Seasons: Spring, Summer, Fall, Winter
- Natural Resources: Tobacco, Sweet grass, Sage, Cedar
- Animal SpiritsEagle, Wolf, Buffalo, Bear and
- Life cycle: Birth, Youth, Adulthood/Parents, Elder,
- Directions: East, South, West & North
18. And the issue of establishing a common language. How do we
do this? An Ecosystem Interconnected & interdependent 19.
Triple Bottom Line Reporting
- You cant manage what you dont measure
- You dont care about what you dont measure
20. TermsTriple Bottom Line CorporateResponsibility Citizenship
Reports Corporate Social Responsibility EMS Accountability
Environmental,Social andEconomic Stewardship Community Reports 21.
Terms
-
- Conservation, Restoration and Adaptation
22.
-
-
- - Stakeholders internal and external
-
-
- qualitative, quantitative and graphics
-
-
- Holistic, Interdependent and Cyclic
-
-
- Sustainability of natural, built, social and economic
systems
Triple Bottom Line Reporting 23. Triple Bottom Line
Reporting
24. Background Growth in reporting: 27 to over 3.600 from 1992 -
2009 25. Background Subject areas:Environmental: from 78% to 15%
Sustainability & CSR- 70% in 09 26. Background First Time
Reports:Over 700 in 2009 Just under 400 in 2005 27. Background
Growth in reporting:Europe North & Central America Asia South
America Australia African & Middle Eash 28. Background
- Integrated reporting: Financial and non-financial reporting
together, rather than stand alone reports
29. Background
-
- International Survey of Corporate Responsibility Reporting
2008
-
-
- 79% of Global Fortune 250
-
-
- 74 of 100 top revenue producing companies in 22 countries
-
-
- Ethics & Economics are the drivers
-
-
- 77% of reporting companies use GRI
-
- International Survey of Corporate Responsibility Reporting
2005
-
-
- 52% of Global Fortune 500
-
-
- Economics is the primary driver
30. Background
-
- 26,274 reports from 6527 entities
-
- 2006: 2378 reports recorded
-
- 2007: 2714 reports recorded
-
- 2008: 3270 reports recorded
-
- 2009: 3913 reports recorded
-
- Global Reporting Initiative
31. Background
- Industries in which reporting trend is up:
-
- Chemicals, Mining, Oil, Gas, Forestry, Pulp and Paper,
Utilities and Finance where Equator Principles apply.
- Industries showing changes
-
- Service industries, supply chain (more medium and small
companies are reporting)
32. Background
- 142 countries have standards or laws regarding some aspect of
sustainability reporting
-
- 65% are mandatory, 34% are voluntary
-
- Australia, Austria, Belgium, Brazil, Canada, Chile, Denmark,
Ecuador, Finland, France, Germany, Greece, Hungary, India,
Indonesia, Italy, Japan, Luxembourg, Mexico, The Netherlands,
Norway, Portugal, South Africa, South Korea, Spain, Sweden,
Switzerland, United Kingdom, United States
- Source: Carrots and Sticks- Promoting Transparency and
Sustainability UNEP. GRI, KPMG and Unit for Corporate Governance in
Africa, Stellenbosch Business School
33. US requirements
- Equal opportunity -The EEO-1 Survey: report diversity
report
- SOX Section 404 requirements for top executives to sign off on
detailed internal controls
- SEC Rule S-K, Item 103 Instruction5 - Environmental Claims:
disclose sanctions$100 000,any material capital expenditure or
legal proceeding
- Toxic Release Inventory (TRI), 1988 Companies with over 10 FTE
emissions data for specified toxic chemicals
- Coming: GHG emission, energy portfolio, energy use
- The National Association of Insurance Commissions (NAIC) :
insurance companies must disclose to regulators financial risk and
risk management actions from climate change and actions
34. Triple Bottom Line Reporting
35. Triple Bottom Line Reporting
- How is performance reported?
-
-
- Stand alone single document
-
-
- Integrated into financial annual report
-
-
- Stand alone multiple documents
-
- Internally management structure
-
- Within (Financial) Annual Report
-
- Other Communications (media, ads, etc)
36. Triple Bottom Line Reporting
37. Short History of TBL Reporting1790 Stock Market CrashSEC
FASB & GAAP 1929 1902 Census Bureau Created Great Depression
First US Census 1930 1972 1934 Securities Act 1933 38. Short
History of TBL Reporting1962 Silent SpringNational Environmental
Protection Act 1970 EMS Systems & Env Regs 1992 1983 Brundtland
Rio Declaration 1989 Exxon Valdez GRI 1997 Kyoto Protocol 2005
Katrina Inconvenient Truth, IPCC 4 2006 AB-32: CA Global Warming
Solutions Act2000 Enron 2002 SOX 39. Short History of TBL
Reporting2008 Climate Action and Green Jobs (HB 2815) 2010 RGGI
comes into effect American Clean Energy and Security Act(H.R. 2454)
Passed in House Jun 26, 2009 Senate?Cap & Trade, 17-percent
emissions reduction from 2005 levels by 2020, 80% by 2050, Electric
utilities- Renewable energy portfolio 20% by 2020.EPA to regulate
GHG emissions fromlight vehicles 2009 40. Short History of TBL
Reporting2008 2010 Sweden- Swedish Annual Accounts Act,Accounting
Modernisation Directive 2003/51/ECAmendment in 2007: state-owned
companies to present, from 2009, sustainability reports,
independent & in accordance with GRI 2007 France- Nouvelles
Rgulations Economique Australia Environment Protection and
Biodiversity Conservation Act 1999, S516A - Australian Government
agencies report on their sustainability performance as part of
Annual Reports. 2001 2003 Denmark Financial Statement Act. Large
companies must disclose corporate social responsibility SEC
guidance on climate change riskdisclosure ISO 26000 to be released
Watch- - Africa & South America 41. Triple Bottom Line
Reporting
42.
-
- A Story illustrating your direction
43. Triple Bottom Line Reporting
- Global Reporting Initiative
44. Frameworks for Triple Bottom Line Reports
- Global Reporting Initiative (GRI)
- Principles for Global Corporate Responsibility: Bench Marks for
Measuring Business Performance
- AA1000 AccountAbility Principles Standard (AA1000APS),
45. Global Reporting InitiativeEnvironment Labor Practices &
Human Rights Communication Public Relations Social Service/Good
Responsibility Economic &Financial BasicSustainability
Framework 46. Triple Bottom Line Subject Areas Social Economic
Environmental Financial Performance Product Responsibility Consumer
Issues Community Development Communication Materials Waste and
Recycle Biodiversity Governance Fair Operating Procedures Labor
Practices Human Relations Integration Energy Emissions Water 47.
GRI 48. GRI 49. GRI 50. GRI 51. GRI 52. GRI 53. GRI
-
- Logistics and Transportation
-
- Construction and Real Estate
54. GRI is a set of guidelines for reporting
- GRI is not normative (ought to be) nor prescriptive
(custom)
- GRI does not provide information about
- GRI is allied with the UN Global Compact
-
-
-
-
- Over 5 000 business participants
-
-
-
-
- 50% are companies with over 250 employees.
- Many SRI indices are based on GRI
55.
- Principle 1 : Businesses should support and respect the
protection of internationally proclaimed human rights; and
- Principle 2:make sure that they are not complicit in human
rights abuses.
- Principle 3 : Businesses should uphold the freedom of
association and the effective recognition of the right to
collective bargaining;
- Principle 4 : the elimination of all forms of forced and
compulsory labour;
- Principle 5 : the effective abolition of child labour; and
- Principle 6 : the elimination of discrimination in respect of
employment and occupation.
- Principle 7 : Businesses should support a precautionary
approach to environmental challenges;
- Principle 8 : undertake initiatives to promote greater
environmental responsibility; and
- Principle 9 : encourage the development and diffusion of
environmentally friendly technologies.
- Principle 10 : Businesses should work against corruption in all
its forms, including extortion and bribery.
56. Triple Bottom Line Reporting
57. Sustainability Integration Curve Percent organizations
Sustainability Integration 58. Triple Bottom Line Reporting
- Triple Bottom Line Reports
- Sustainability and Profit CHUBB and Santander
- Water and Basic Needs- Coca Cola Company and Coke
Enterprises
59. TBL example- GRI 60. TBL example- GRI 61. TBL example- GRI
62. TBL example- GRI 63. TBL example- GRI 64. TBL example- GRI 65.
TBL example- GRI 66. TBL example- GRI 67. TBL example- GRI 68. TBL
example- GRI 69. TBL example- GRI 70. TBL example-GRI accord
- Resources to produce the report
- Managing what is measured
71. TBL example-GRI accord 72. TBL Example- Profit and
Sustainability 73. TBL Example- Profit and Sustainability 74. TBL
Example- Profit and Sustainability 75. TBL Example- Profit and
Sustainability 76. TBL Example- Profit and Sustainability and
Operations 77. TBL Example- Profit and Sustainability 78. TBL
Example- Profit and Sustainability 79. TBL Example- Profit and
Sustainability 80. TBL Example- Profit and SustainabilityUnited
Nations Millennium Development Goals www.unmillenniumproject.org
81. TBL Example- Profit and Sustainability 82. TBL Example- Profit
and Sustainability 83. TBL Example- Profit and Sustainability 84.
TBL Example- Profit and Sustainability 85. TBL Example- Profit and
Sustainability 86. TBL Example- Profit and Sustainability 87. TBL
Example- Profit and Sustainability 88. TBL Example- Profit and
Sustainability 89. TBL Example- Profit and Sustainability 90. TBL
Example- Profit and Sustainability 91. TBL reports Water and Basic
Needs 92. TBL reports Water and Basic Needs 93. TBL reports Water
and Basic Needs 94. TBL reports Water and Basic Needs 95. TBL
reports Water and Basic Needs 96. TBL reports Water and Basic Needs
97. TBL reports Water and Basic Needs 98. TBL reports Water and
Basic Needs 99. TBL reports Water and Basic Needs 100. TBL reports
Water and Basic Needs 101. TBL reports Water and Basic Needs
Foreign Policy, Washington Post 102. Triple Bottom Line
Reporting
-
- Appoint Spokesperson 2 main points
103. Triple Bottom Line Reporting
104. Triple Bottom Line Reporting
- Principles for TBL Reports
105. Principles
-
- Stakeholder Inclusiveness
106. Criteria Barb Slob and Gerard Oonk, The ISO Working Group
On Social Responsibility Developing the Future ISO SR 26000
Standard, March 2007
- Respect for Internationally recognized Instruments
-
- International Labour Organization
- Recognition of stakeholder's rights
- Primacy of respect for fundamental human rights
107. Best Practices
-
- Stakeholder interest: What is important to them?
-
- Control and Influence: What can you really do?
-
- Numbers comparable and understandable
-
- Tell story in language & medium for audience
108. Triple Bottom Line Reporting
- Fill in Short form TBL report
- View 3 reports on CorporateRegister.com
-
- 3 reports from the same entity, consecutive years
-
- 3 reports from different entities, same year
109. Triple Bottom Line Reporting
110. Triple Bottom Line Reporting
111. Triple Bottom Line Reporting
-
- Morning Reflection & Revisit Goals
-
- Project TBL reporting and Decision Making
112. Triple Bottom Line Reporting
113. 114.
- Founded in 1991, Sustainable Seattle is a non-profit
organization dedicated to enhancing the long term quality of life
in the Central Puget Sound.
- Sustainable Seattle provides communities and individuals with
meaningful information that reflect their priorities and helps them
make sustainable choices.
115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127.
128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 138. 139. 140.
141. 142. 143.
- Choose three indicators for yourself.
Exercise 144. Triple Bottom Line Reporting
145.
- Law: Unfair Competition Laws, Cal. B&P 17200 and False
Advertising Claims, Cal. B&P 17600).
- Kasky sued Nike in 1998 for publishing that it had a code of
conduct for labor rights but not complying with it along its supply
chain. The California Supreme Court found Kasky has a right to sue
Nike. The U.S. Supreme Court first granted a certiorari then
determined not to hear the case and sent it back to California.
Nike Settled in 2003.
- US Supreme Court Decision 2002
- Issue: TBLs Commercial Speech?
-
- What about cause marketing?
Risks and Liabilities 146.
- Law: Alien Tort Claims Act of 1789
-
- [t]he district courts shall have original jurisdiction of any
civil action by an alien for a tort only, committed in violation of
the law of nations or a treaty of the United States
- Myanmar Villagers sued Unocal in 1997 for forced labor, murder,
rape, and torture. Unocal allowed governmental forces and others to
help them in constructing a gas pipeline. The help Unocal received
included forcing villagers with murder, rape and torture to work on
the pipeline.
- The court found Unocal is subject to liability because it knew
of the crimes.
- Unocal settled. Undisclosed amount 2005.
-
- Codes of conduct/voluntary policy
Risks and Liabilities 147.
- Wiwa v. Royal Dutch Shell
- Law: Torture Victim Prevention Act of 1991 (28 U.S.C. Section
1350)
- Royal Dutch Shell received help from the Nigerian government to
explore for oil. Protesters were rated, beaten and executed by the
government in 1995
- The Court found Royal Dutch Shell is subject to liability as
there wassubstantial cooperation between the government and Royal
Dutch Shell.
Risks and Liabilities 148. Other Constituency Statutes
- Model Business Corporations Act requires Directors to act:
-
- Ordinarily prudent person in similar circumstances
-
- Manner reasonably believed to be in the best interests of the
corporation
-
-
- with the BJR not gross negligence
- Revlon Duties: Hostile Takeovers and Friendly Mergers
-
- Directors may not consider the interests of
non-shareholders
-
- Narrow duty to maximize shareholder value
- Other Constituency Statutes:
-
- State statute that allows managers to take into account the
best interests of various non-shareholder constituencies
-
- Approximately 40 States not Delaware
149. Other Constituency Statutes
- Permissive -permit, but do not require, directors to consider
the interests of other constituencies
-
- Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kentucky,
Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi,
Missouri, Nevada, New Jersey, New Mexico, New York, North Dakota,
Ohio, Oregon, Rhode Island, South Dakota, Tennessee, Vermont,
Wisconsin, and Wyoming.
- Mandatory - require directors consider the interests of other
constituencies.
- Presumed validity of directors determination -explicitly
provide that shareholder interests need not be held above
stakeholders interests
-
- Action must be approved by a majority of disinterested
directors
-
- Must not be able to prove after reasonable investigation that
the disinterested directors did not act in good faith.
150. Risks and Liabilities
- Interfaith Center on Corporate ResponsibilityShareholder
Resolutions
CORPORATION ISSUE Abbott Laboratories Executive Compensation
Health Care Reform Principles - Pharma Right of Access to
Medicine/HIV Report Adobe Systems Incorporated Political
Contributions Aetna Health Care Reform Principles - Pharma AK Steel
Holding Corp. Sexual Orientation Discrimination Allegheny Energy,
Inc. Electric Power - GHG Report Allegheny Technologies
Sustainability Reporting (MI) Allergan, Inc. Report on Animal
Testing Alliant Energy Corp. GHG Reduction Through Energy
Efficiency Altria Group, Inc. Apply MSA/Kessler Ruling Globally
Health Care Reform Principles-Tobacco Stop Youth-Oriented Ad
Campaigns Two Cigarette Approach to Marketing 151. Risks and
Liabilities
- Some examples of shareholder proposals filed in 2008
include:
- The Sisters of Ste-Anne of Montreal have filed a resolution
with the worlds largest gold producer,Barrick Gold , whose massive
Pascua Lama mining project on the Chile-Argentina border presents
potentially serious environmental risks to both countries.
- EnCana , Canadas largest independent oil and gas producer, is
bein asked by one of its shareholders to incorporate the cost of
carbon emissions into its business strategy.
- Major Canadian airlines includingAir Canada, WestJet and Trans
AT have been asked to prepare annual sustainability reports, which
would involve in part discussing how they are responding to and
managing their impacts on climate change.
Kairos:Canadian Ecumenical Justice Initiatives 152. Risks and
Liabilities
- Executive Order 13423: Strengthening Federal Environmental,
Energy, and Transportation Management
- Conduct environmental, transportation, and energy-related
activities environmentally and economically sound, integrated,
continuously improving, efficient, and sustainable manner.
- 3% GHG emissions reduction
- Environmentally preferable products
- Waste prevention & recycling programs
- High Performance and Sustainable Buildings
153. Risks and Liabilities
- Executive Order 13423continued:
- Collection, analysis, and reporting of performance
- Environmental management training
- Extends to contractors for contractor operation of
government-owned facilities or vehicles
154. Risks and Liabilities
-
- Ocean (including tidal, wave, current and thermal)
-
- Certain hydroelectric generation
155. Risks and Liabilities
-
- Sustainability Represents a significant economic opportunity
for the State of Oregon
-
-
- Environment, Economy and Communities work together
-
-
- Agencies to develop Sustainability Plans
-
-
-
- Incorporate into bridge repair progra ms
156. Risks and Liabilities
- Federal Trade Commission GreenGuides
- 16 CFR Part 260,Section 5 of FTC Act to environmental
advertising and marketing
-
- promotional materials, etc. through words, symbols, emblems,
logos, depictions, brand names, etc. in connection with sale or
marketing of any product or package.
- Not enforceable regulations
- Does not preempt other regulations
157.
- Federal Trade Commission Green Guides
-
- Qualifications and disclosures should be clear and
prominent
-
- Must be a clear distinction between benefits of product and
package
-
- Do not overstate environmental attributes, expressly or by
implication
-
- Basis for comparative claims must be made clear, and advertiser
should substantiate claim
Risks and Liabilities 158.
- SOX: Section 404top execs sign off on detailed internal
controls, code of ethics
-
- Item 101(c)(1)(xii) mandates disclosure of cost to comply with
environmental laws where compliance costs are material
-
- Item 303: Management's discussion and analysis of financial
conditions and result of operations.
- EEO-1 US Equal Employment Opportunity Commission:
-
- Employee profiles: race and gender
-
- More than 10 FT employees submit data on emissions to EPA
Risks and Liabilities 159.
- Brundtland Commission Report
- Survival of the human and other species
-
- Environmental degradation
-
-
- Improving our lot in the environment in which we live
-
- New Norms of Behavior: campaigns, education and public
participation
Risks and Liabilities 1983 160.
- WWF Discussion Paper, CSR an overview
-
- Call for legally binding global rules
-
- Integrate sustainable development into core business
strategy
-
-
- Reactive to Passive to Proactive
-
-
- Risk Assessment and Branding to Change of Business Model
-
-
- Win-win to strategic investments
-
-
- Marketing to Responsible Marketing
Drivers 161. Drivers: The Triple Bottom Line Social Economic
Environmental Reduce Costs & Increase Revenues Emerging
marketsManage risks Resource Limitations Regulations &
LawsAttract & retain quality talentLicense to operate
Reputation HIGHESTPOTENTIAL 162. Drivers Ethics Quality ofLife Long
term value Alignment with Organization First to Market Goodwill
Branding Departmental and Agency Directives Stakeholder
Expectations Shareholder Resolutions Regulations andRequirements
163.
-
- Meta-analysis of 52 studies, representing 33,878
observations
-
- CSR is correlated to profitability
-
-
- CSR leads to reputation benefits,leading to public endorsement
from regulators ( EPA, OSHA)
-
-
- CSR integrate into strategy to enhance financial position.
Drivers 164.
- Results suggest that environmental information, particular in
the extreme, has value in the stock selection process.
- Results did not suggest that environmental ranking is
negatively correlated to price performance.
-
- Strong environmental performance translates into superior
equity performance (Derwallet al ., 2004: 15)
-
- Innovest ratings employing over sixty different environmental
criteria for S&P500 stock universe, employing the proprietary
quantitative investment model, US Active Equity Alpha, as
baseline
-
-
http://www.abanet.org/publicserv/environmental/SSgA_EcoEfficiency_Alpha.pdf
Drivers 165. Triple Bottom Line Reporting
166.
-
- WRI & WBCSD Greenhouse Gas Protocol
-
- The Climate Registry General Verification Protocol-DRAFT
-
- California Climate Action RegistryGeneral Reporting
Protocol
-
- EIA Voluntary Reporting of Greenhouse Gases
-
- API Compendium of Greenhouse Gases Emissions Methodology for
Oil and Gas Industry
-
- Petroleum Industry Guidelines. for Reporting. Greenhouse Gas
Emissions
-
- EPA Climate Leaders, Design Principles
-
- ISO 14064 Emerging Greenhouse Gas Accounting and Verification
Standard
GHG Emissions 167. GHG Emission Calculators
- Seattle Climate Partnerships Carbon Calculator Tool:
-
- http://www.seattle.gov/climate/SCPresources.htm
- EPA Personal Emissions Calculator
-
- www.epa.gov/climatechange/emissions/ind_calculator.html
- Lifecycle Climate Footprint Calculator
-
- bie.berkeley.edu/files/ConsumerFootprintCalc.swf
168.
- Main Issues in an inventory:
Components of a Climate Change Assessment 169.
GHG emissions Inventory 170. Greenhouse Gases Greenhouse GasCO2
equivalent units Carbon dioxide1 Methane21Nitric oxide310
Hydroflorocarbons 1,300 Perflorocarbons 6,500Sulfur
hexfloride23,900 171. 172. GHG Emission Drivers
- Electricity (production & consumption)
173.
-
-
- First year for which there is reliable data
-
-
- Target Year: i.e. Kyoto Protocol - 1990
-
-
- First Year of Reporting (no baseline) Used when the entity did
not exist before the inventory
-
-
- Rolling Baseline- used when an entity regularly merges,
acquires, etc .
Greenhouse Gas Emissions Inventory 174.
- Ownership, Equity and InfluenceDecision
- Control and InfluenceLiability
GHG Emissions InventoryControl Influence Importance Activity A
ActivityB
175. GHG Emissions Inventory
-
- Utilities Bill (Electricity, Gas, Alternatives)
176.
GHG Emissions Inventory 177.
- Scope 1 :Activities and propertycontrolled or owned by the
organization.
GHG Emissions Inventory 178.
- Scope 2:Purchased energyfrom off site sources for own use (i.e.
consumed by owned or controlled equipment or operations)
-
-
- Office/Facilities heat, cooling, air conditioning
-
-
- Electricity purchased for other purposes.
-
- Transmission & Distribution of electricity
-
-
- Electricity used during transmission and distribution is
reported by company that owns or controls the transmission &
distribution
GHG Emissions Inventory 179. GHG Emissions Inventory
- Scope 3: GHG emissions from production of purchased services or
goods- activities not controlled, owned or due to use and
purchasing of energy- Everything else
180.
- Most inventorying is based on activity data and a calculation
tool i.e.:
-
-
- AF x EF x CF = GHG emissions
-
-
- AF is Activity Factor gathered from fuel uses, utility bills,
structure sq. ft
-
-
- EF is Emission Factor gathered from a protocol (WRI, IPCC)
-
-
- CF is Conversion Factor converting units and global warming
potential units .
-
- Industry Specific WRI & 2006 IPCC Guidelines for National
Greenhouse Gas Inventories (Includes industrial process and product
use, Ag, Forestry and other land use, waste).
GHG Emissions Inventory 181. GHG emissions calculation tools
- Intergovernmental Panel on Climate Change
- Seattle Climate Partnership Tool
- ICLEI Local Government Protocol
- Construction Carbon Calcultor BuildCarbonNeutral.org
- Economic Input-Output LCA (Carneigie-Mellon Univ)
-
- Careful of embedded assumptions.question of offsetting
182. Boundaries and GHG emission inventories
- Boundaries are influenced by:
-
- Control, Influence and level of importance
-
- Risk preference for liability
183. GHG Emissions Inventory
-
- Climate Registry General Verification Protocol
-
- Accountants and Consultants
-
- Regulators (Clean Air Act)
-
- Voluntary non-binding agreements
-
- Voluntary binding agreements
184.
- Example GHG Emissions Inventory
-
-
- Climate Aspiration: Become a climate-neutral company by
2020
-
-
- Intermediate Climate Goal: Reduce our climate impact by 1/3
from 2006 baseline by 2009
185. GHG Emissions Partner with Bonneville
EnvironmentalFoundation Green Tags Program 1. Employee survey of
Employees atHQ sample size of 750 - actual miles traveled, type of
transportation & the number of days for each type. 2. Sample
processfor distribution center 3. Estimates for nationwide based on
initial survey and sampleCompany Travel booking software and CO2
estimates from Climate Neutral Network Based on estimates from
identified activitiesi.e.hydrofluorocarbon gas that escapes
fromair-conditioning systems during routine
maintenance2008REIStewardship Report 186. GHG Emissions Goods
Inbound: Sea Shipments : calculation based on container loads based
on the container-miles. CO2 per container mile data published by
the clean cargo group accounting for the average of all container
ships.Truck Transport : ton-mile calculation used the vendor
location, distance of the shipment and the freight weight to arrive
at a total ton-miles of freight CO2 impact per ton mile derived
from the average values published for "less than truckload" freight
shipmentsand based on company calculations Direct Delivery-total
ton-miles of freight multiplied by the average impacts of parcels
and company calculations 1. Goods inbound - from vendors or
factories to our distribution centers or stores 2. Intra-company
transfers - shipments from our distribution center to our stores,
between stores, or from stores back the distribution center.
Inter-company transfers Compute total freight ton-miles based on
total tons of cargo, number of deliveries and the distance from the
distribution center to each store & use national average truck
fleet data for fuel mileage (7 miles/gallon) and truck hauling
weight) along with a standard conversion from diesel fuel gallons
to pounds of CO2 (22.2 pounds/gallon) to arrive at a factor for
pounds of CO2 per freight ton-mile.2006 REI Stewardship Report 187.
GHG Emissions Kilowatt hours from electricity bills for stores,
headquarters and distribution center, with CO2 estimates based on
the EPA Power Profiler, except in WA based on Washington State
Department of Community Trade and Economic Developments (CTED) for
2005 .Natural Gas: Not stated Direct Fulfillment; Ground-assumed
the average shipping distance is 1342 miles CO2 based on average
package weight shipped with used the same CO2 factor computed for
truck delivery.Air-adjusted the average weight of a package
compared to a person with CO2 estimates based on Climate Neutral
Network. 2008 REI Stewardship Report 188. GHG Emissions 2006 REI
Stewardship Report 189. GHG Emissions GlobalSource: European
Commission, Joint Research Centre (JRC)/Netherlands Environmental
Assessment Agency (PBL). Emission Database for Global Atmospheric
Research (EDGAR), release version 4.0. /2009 .
http://edgar.jrc.ec.europa.eu 190. Greenhouse Gas Emissions
Exercise
- For your home or place of work
- Identify one of each emitters:
- For each: Control or Influence?
- One main takeaway, or, if you have already performed a ghg
emissions- lesson to share
191. Triple Bottom Line Reporting
- Risks, Liabilities and Drivers
192. Climate Change Impacts
- U.S. Climate Change Science Program Report
- A joint effort of more than a dozen government agencies
193. Climate Change Impacts-U.S. Climate Change Science Program
Report
- Abnormally hot days and nights, along with heat waves, are very
likely to become more common.
- Cold nights are very likely to become less common.
- Sea ice extent is expected to continue to decrease and may even
disappear in the Arctic Ocean in summer in coming decades.
- Precipitation, on average, is likely to be less frequent but
more intense.
- Droughts are likely to become more frequent and severe in some
regions.
- Hurricanes will likely have increased precipitation and
wind.
- The strongest cold-season storms in the Atlantic and Pacific
are likely to produce stronger winds and higher extreme wave
heights.
194.
- Adaptation Assessment Issues
- Bio-diversity and ecosystems
Climate Change Examples of several Climate Change Adaptations
Assessments available
www.heinzctr.org/NEW_WEB/PDF/Adaptation_Report_October_10_2007.pdf
195.
- Adaptation Assessment Issues
- Safety and Human Security
- Loss of tourism/recreational assets
- Storm activityExtreme weather events
Components of a Climate Change AssessmentImage from Climate
Change Impacts and Adaptation Strategies for Urban Systems in
Greater Vancouver 2003 196. GHG Emissions Source:
http://www.pewclimate.org/what_s_being_done/in_the_states/regional_initiatives.cfm
197. Greenhouse Gas Emissions
- Western Climate Initiative:
-
- An Memorandum of Understanding (MOU) to adopt legislation in
the state.
-
- GHG reductions to 15% below 2005 levels by 2020 through
market-based multi-sector mechanism & other policies
-
-
- Economy Wide Reduction goals
-
-
- Active in Climate Registry
-
- HB 2815 - Regulated: 10,000 Metric Tons CO2e scope 1
-
-
- Triggers Scope 2 accountability
198. Greenhouse Gas Emissions
- States with Renewable Portfolio Standards (most recently
Ohio)
Pew Center on Global Climate Change WA Initiative 937 199.
Renewable and Alternative Energy: 200. Greenhouse Gas Emissions
- Washington Initiative 937 passed on Nov. 7, 2006,
-
- Utilities serving 25,000 people or more.
-
- 15 percent of their energy using renewable sources by
2020.
-
-
- Qualifying Biomass Resources.
-
-
- Gas From Sewage Treatment Facilities
-
-
- Biodiesel fuel that is not derived from crops raised on land
cleared from old growth or first-growth forests
Position WAas leader
-
- Protect clean air and water
-
- Job creation and training
-
- Stabilize prices, economic growth ,
201. Climate Change To date, 1042 mayors have signed the U.S.
Mayors Climate Protection Agreement. 202. Climate Change
- U.S. Mayors Climate Protection Agreement
-
- Strive to meet or beat the Kyoto Protocol targets in their own
communities, through actions ranging from anti-sprawl land-use
policies to urban forest restoration projects to public information
campaigns.
- Advocate for State and Federal policies & programs
-
- Urge their state governments, and the federal government, to
enact policies and programs to meet or beat the greenhouse gas
emission reduction target suggested for the United States in the
Kyoto Protocol -- 7% reduction from 1990 levels by 2012.
-
- Urge the U.S. Congress to pass the bipartisan greenhouse gas
reduction legislation, which would establish a national emission
trading system
203.
- Development of market based system:
-
- Department of Ecology creates the reporting rule
Washingtons Climate Action & Green Jobs(HB 2815) Source:
Vertis 204. Washingtons Climate Action & Green Jobs(HB
2815)
-
- WA Dept of Ecology rule public meetings
-
-
- November 3 at Ecologys Regional Offices in Spokane,
Washington
-
-
- November 5 at Ecologys Headquarters in Lacey, Washington.
-
-
- Estimate ghg emissions before and after measures to reduce ghg
emission considered for the project
205.
- Benchmarks for reducing vehicle-miles traveled (VMT)
- Decrease annual per capita VMT
- Requires the Department of Transportation to develop strategies
to achieve the benchmarks
Washingtons Climate Action & Green Jobs(HB 2815) 206.
-
- Green economy jobs growth initiative
-
-
- Tripling the number of green jobs by 2020.
-
- Labor market research to establish a job training grant program
to be funded in 2009.
-
- Integration into existing workforce training institutions
-
-
- $50,000 in House budget for a study examining ways to encourage
women and minority-owned businesses to enter into clean energy
industries.
Washingtons Climate Action & Green Jobs(HB 2815) Social
Economic Environmental New Industry Social JusticeGHG Emissions
Reductions 207. Washington State GHG emissions reporting
- The Washington rule includes entities not included in federal
rule:
-
- food processors, industrial landfills
-
- natural gas extraction, processing, storage, transmission, and
distribution
- Threshold for stationary sources
-
- reporting year 2009 - 25,000 metric tons of CO2 per year
-
- 2010 and beyond- 10,000 metric tons
- Reach the threshold of direct emissions requiring
reporting
-
- must reportindirectemissions;
- Reports must be verified by a third-party not
self-certified.
208. EPA GHG emission reporting rule
- Threshold of 25,000 metric tons CO2 for all years, no indirect,
self reporting
-
- oil refineries, pulp and paper manufacturing, landfills, manure
management, and producers of aluminum, cement, iron and steel,
glass, and various chemicals, and facilities with large stationary
fuel burning sources.
-
- Some sources will have to report their GHG emissions regardless
of threshold
-
- producers, importers, and exporters of petroleum products,
natural gas, and industrial GHGs based upon the GHG content of the
fuels or gases they supply into the market
-
- excludes coal suppliers and underground coal mines (entities
generating electricity will report these emission)
-
- heavy-duty trucks, motorcycles, airplanes, and non-road
engines.
-
- No fleets, natural gas, food processors or industrial
landfills
209. Trends in Law
- Nuisance Case: Connecticut v. American Electric Power, No.
05-5104) (2nd Cir, Sept. 21, 2009)
-
- Anuisance claim against GHG emissions from the nation's largest
utilities goes forward. 2nd Circuit decision
-
- 8 states, City of NY & several private land trusts, sued
six electric utility companiesresponsible for ten percent of
worldwide carbon dioxide emissions from human activities. They
claim to represent the interests of 77 million people, their
environments, and economies,& cite the harmful impacts of
global warming on people, their environment & economies.
210. Trends in Policy
- RCW 39.35D High Performance Buildings
-
- All major facility projects of public agencies receiving any
funding in a state capital budget, or projects financed through a
financing contract as defined in RCW 39.94.020, must be designed,
constructed, and certified to at least the LEED silver
standard
-
- Coming: Capital Investments:
-
-
- Cost of development and operation
-
- Life-cycle assessment or life-cycle environmental
assessment
-
-
- Represents the full direct and indirect environmental
impacts
-
- Life -cycle benefit assessment
-
-
- Full functional contribution of a facility to the system or
degree of system enhancements or the community contribution
211. Climate Change
- Reduction of total state emissions by 2020
- Development and expansion of bioenergy resources
- Clean Car GHG Tailpipe Emissions and Fuel Efficient Tire
Standards
- Commercial Truck Stop Idling Reduction and Speed Limits
Enforcement
- Smart Growth Transportation Land Use Measures
- Co-benefits from agricultural practices: manure management,
no-till agriculture, planting shade- trees
- Potential environmental improvements: wildlife habitat,
biodiversity, water quality, soil stabilization
- Job creation and support for local economic development
- Non-GHG environmental benefits, such as local air quality
leading to direct health co-benefits from reduced mortality,
morbidity, and hospital visits from respiratory illness
- Lower energy bills and overall cost savings to consumers and
businesses
- Some Cost savings and some added costs for energy
producers,
- Reduce dependence on imported fuels and reduction in cost of
natural gas
- Lower vulnerability to energy price volatility
Effects of Regulations and Market driven initiatives 212. Triple
Bottom Line Reporting
213. Kyoto Protocol
- Life Cycle Analysis: Analysis of impacts throughout the life
cycle (extraction to end of use)
Life Cycle Analysis Material Extraction Manu- facturing Ware-
house &Packaging Package &Transport Use Recycle Reuse
Dispose Design 214. Life Cycle Analysis 215. Life Cycle Analysis
216.
- Patagonia Footprint Chronicles
Life Cycle Analysis Design MaterialExtraction Manufacture
Distribution Distance traveledCO2 emitted Waste generated Energy
Consumed 217. Life Cycle Analysis Timberlands Eco-label Climate
Impact Resource Consumption Chemical Use The Timberland Company,
2006 Corporate Social Responsibility Report 218. Life Cycle
Analysis Unilever 2006 Sustainable Development Report 219. Adapted
from Office of Sustainability and the Environment LifecycleSocial
BenefitAssessment LifecycleFiscalAssessment Building community and
enhancing social capital Improved pedestrian access Indoor
environmental quality andoccupant health Future proofingPublic art
/ improved aesthetics Deconstruction of existing facility/ building
re-use Water efficiency, rainwater harvest Stormwater management
and water recharge Energy and atmospheric impacts Habitat diversity
and ecological function Advancing thriving economy and social
justice Crime deterrence Initial capital costs Energy costs
Facility flexibility -- costs to upgrade or adapt Disposal costs
Materials and resource selection Water costs Staffing costs
Janitorial costs Maintenance costs equipment durability Integrated
universal access Preservation/ enhancement of neighborhood
character Green Building and Sustainable Development Ordinance TBL
LCA for Infrastructure LifecycleEnvironmentalAssessment Meeting
needs of historically underserved Community/neighborhood economic
development contributions Transportation connectivity Inclusive
public involvement process Revenue generation capacity 220. The
Stream King County Equity & Social Justice Initiative, Equity
Report 2008 Upstream:Everyone in all communities should have these
conditions Midstream:Move people from conditions that decrease
health & well-being to conditions that support them
Downstream:Act to change behaviors or conditions causing stress and
poor health Pro-Equity Policies No Racism Affordable Housing Access
to Transportation Good Paying Jobs Quality Education Healthy
Environment Low Birth Weight Incarceration Need action atSocietal
Level Need action at Individual and Family Level Safe Neighborhoods
Obesity Untreated Mental Illness Access to Healthcare PoorHealth
Status Homelessness Fair Standards of Living Physical Activity Need
action at Community Level 221. Triple Bottom Line Reporting
222. Stakeholders Stakeholders: Present And Future Customers,
Indigenous & Vulnerable Peoples & Media & Public
Shareholders & Investors EmployeesGovernmental Agencies &
Law Enforcement & Elected Officials Suppliers &
Distributors & Transportation Agencies Industry Partners &
NGOs & Associations 223. Stakeholders
-
- Dolphins Intelligent, creative, fend off attack
-
- Idea Generators and Opinion Leaders
-
- Business Partners and Competitors
-
- Investors and Risk Assessors
Danile Esty and Andrew Winston, Green to Gold 224. Stakeholder
Engagement
- Communication on Progress- United Nations Global Compact
225. Paper or Plastic: LCA 226. Triple Bottom Line Reporting
227. Triple Bottom Line Reporting
228.
- Tips for an effective TBL report
- Address stakeholder interest, provide feedback loop and respond
to stakeholder feedback
- Look backwards- Identify challenges and root causes of
such
- Look forwards- State goal and means to measure performance,
demonstrate programs for continual improvement & understanding
of sustainability as a journey
- Use Indicators that are relevant, comparable, and accessible to
the entity, in the industry and cross industries
- Indicators Index, third-party assurance &
recommendations
- Link to online updates, supplements and references
229. Tips for a writing a TBL report
-
- Importance- stakeholders, drivers
-
- GRI, competitors, cross-industry
-
- Integrated triple bottom line
-
-
- Internal & Across Time (Long Term) &
-
-
- Out in Environment, Society & Economy
230. Tips for writing a TBL report
-
- Set path for future accountability & management
controls
-
- Quantitative and Qualitative
-
- Material & Reliable: Use communication channels tailored to
your intended audience
231.
232. Triple Bottom Line Reporting
- Triple Bottom Line Reports
- Merck- Corporate Governance
- City Development dilemmas of development
233. GRI- Sustainability Report 2007/2008 234. GRI-
Sustainability Report 2007/2008 235. GRI- Sustainability Report
2007/2008 Environment Emissions 236. GRI- Sustainability Report
2007/2008 Labor Practices 237. GRI- Sustainability Report 2007/2008
Labor Practices 238. Corporate Governance & Society - Community
Impacts
- United Nations Millennium Development Goals
- Access to Medicines Index
239. Merck 2008 CR report
- United Nations Millennium Development Goals
- Access to Medicines Index
240. Global Compact 241. United Nations Millennium Development
Goals www.unmillenniumproject.org 242. Access to Medicines Index
www.atmindex.org 243. Merck 2008 CR report 244. Merck 2008 CR
report: Labor Practices- Diversity & Equal Opportunity 245.
Merck 2008 CR report: Society Corruption & Public Policy 246.
Merck 2008 CR report: Economic Indirect Impacts or Product
Responsibility- Customer Health & Safety? 247. Merck 2008 CR
report: Economic Indirect Impact orProduct Responsibility- Customer
Health & Safety? 248. City Development Sustainability Report
2009 249. City Development Sustainability Report 2009 250. City
Development Sustainability Report 2009 251. City Development
Sustainability Report 2009 Environment: Energy & Water 252.
City Development Sustainability Report 2009 Environment :
Emissions, Energy & Material 253. TBL Reports Mandated
- Australian Government Dept of Families, Housing, Community
Services and Indigenous Affairs
254. TBL Reports Mandated
- Australian Government Dept of Families, Housing, Community
Services and Indigenous Affairs
255. TBL Reports Mandated
- Executive Order 13423: Strengthening Federal Environmental,
Energy, and Transportation Management
256. TBL Reports Mandated
- Swedish Annual Accounts Act, Accounting Modernisation Directive
2003/51/ECAmendment in 2007: state-owned companies to present, from
2009, sustainability reports, independent & in accordance with
GRI
- SAS (apx. 21% state owned)
257. TBL Reports Mandated
- Swedish Annual Accounts Act, Accounting Modernisation Directive
2003/51/ECAmendment in 2007: state-owned companies to present, from
2009, sustainability reports, independent & in accordance with
GRI
- Green Cargo Government owned logistics company
258. TBL Reports Mandated
- Nouvelles Rgulations Economique
259. TBL Reports Mandated
- Nouvelles Rgulations Economique
