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March 2010
Samantha Putt del PinoCo-Director, Business Engagementin Climate and Technology
The Next Practice Advantage
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Agenda1. Evolution of corporate
climate leadership
2. Current and future challenges
3. The Next Practice Advantage
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Original action agenda (1998) Safe-Climate, Sound Business
Business partnershipsGreenhouse Gas ProtocolGreen Power MarketsCorporate vision/strategy
WRI collaborates with business to advance climate change solutions
3Corporate Leadership Current & Future Challenges Next Practice Advantage
Business case evolving, expanding
Reputation, brand enhancement
Cost savings
Profit opportunities
4Corporate Leadership Current & Future Challenges Next Practice Advantage
Yesterday’s cutting edge has become today’s best practice Verifying and registering data
Setting and updating performance targets
Identifying cost-effective GHG reductions
Managing internal communications
Capturing new business opportunities
Adapting to market-based solutions
2004
20095Corporate Leadership Current & Future Challenges Next Practice Advantage
GHGs starting to factor into key strategic decisions
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Investment priorities
Staffing, resources
Aligning long-term strategies
Corporate Leadership Current & Future Challenges Next Practice Advantage
Agenda1. Evolution of corporate
climate leadership
2. Current and future challenges
3. The Next Practice Advantage
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At a critical transition point in corporate climate leadership
8Corporate Leadership Current & Future Challenges Next Practice Advantage
Near term Long term
Climate Opportunity
New transformative activities
Business as usual
Visioning
Visioning
Tran
sition
We are here
Business as usualBusiness
as usual
BAU
Clim
ate
Lead
ersh
ip
Business leadership critical to a strong, climate-safe economy
policy framework
corporate innovation
technology & finance
9Corporate Leadership Current & Future Challenges Next Practice Advantage
Various roles to play
Industry
Ag & Land Use
Electric Power(users and producers)
Solutions
10Corporate Leadership Current & Future Challenges Next Practice Advantage
Cross-cutting challenges and opportunities
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Energy
Value Chains
Adaptation
Corporate Leadership Current & Future Challenges Next Practice Advantage
ENERGY: global consumption increases
IEA: WEO 2009 Reference Case
12Corporate Leadership Current & Future Challenges Next Practice Advantage
ENERGY: costly reliance on fossil fuel imports
Annual expenditure on oil & gas imports
IEA: WEO 2009 Reference Case
13Corporate Leadership Current & Future Challenges Next Practice Advantage
ENERGY: BUSINESS IMPLICATIONS
14Corporate Leadership Current & Future Challenges Next Practice Advantage
VALUE CHAIN: upstream and downstream GHG risks, reduction opportunities
Corporate Leadership Current & Future Challenges
high
risk
high risk
VALUE CHAIN
upstream
downstream
high
risk
high risk
Next Practice Advantage
VALUE CHAIN: new metrics, accounting standards, tools
www.ghgprotocol.org/standards/product-and-supply-chain-standard
Supply Chain, Product Standards www.ghgprotocol.org
16Corporate Leadership Current & Future Challenges Next Practice Advantage
VALUE CHAIN: BUSINESS IMPLICATIONS
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high
risk
high risk
VALUE CHAIN
upstream
downstream
high
risk
high risk
upstream
downstream
ADAPTATION: Protecting against global instability
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Water Scarcity Demography Crop Decline Hunger Coastal Risks Recent Conflicts
Corporate Leadership Current & Future Challenges Next Practice Advantage
ADAPTATIONBUSINESSIMPLICATIONS
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ADAPTATIONOTHER BUSINESSIMPLICATIONS
Products and services
Communities and markets
Corporate Leadership Current & Future Challenges Next Practice Advantage
Agenda1. Evolution of corporate
climate leadership
2. Current and future challenges
3. The Next Practice Advantage
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Getting to carbon-competitive
1. Trends, drivers, implications
2. Business case
3. Decision-making framework
22Corporate Leadership Current & Future Challenges Next Practice Advantage
no action
climate-centric planning
climate advantage
business-as-usual
long-term success
next practices
short-term planning
existing products
today’s strategies
Ostriches Paper Tigers
Opportunists Winners
ZERO CARBON
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Are you competitive in tomorrow’s markets?
The Next Practice Collaborative setting a new corporate climate agenda
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OUTPUTS
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Business implications
Strategic priorities
Results
Trends, Drivers
Business case
Decision criteria, metrics
WRIThoughtPiece
WRIThoughtPiece
WRIThoughtPiece
WRIThoughtPiece
Business caseBusiness case
Next Practice Next Practice approaches, approaches, frameworksframeworks
Insights on tomorrow’s Insights on tomorrow’s markets:markets:EnergyEnergyValue ChainsValue ChainsAdaptationAdaptation
Pilot test, next stepsPilot test, next steps
The bottom line…
26Corporate Leadership Current & Future Challenges Next Practice Advantage
Best Practice*BAU Carbon
Competitive
**For the sake of discussion, assume zero carbon goal as proxy for safe climate (i.e., 350-450 ppm).
02010 2020 2030 2040 2050
Glo
bal G
HG
Em
issio
ns
* Illustrative diagram only. For analysis of today’s best practice impacts, see CDP’s Carbon Chasm.
BUSINESS OPPORTUNITY
Samantha Putt del PinoCo-director, Business Engagement
in Climate and [email protected]
27Corporate Leadership Current & Future Challenges Next Practice Advantage
For more information:
