ACT- Addressing the Climate Threat

Why addressing the climate threat

makes business sense

Richard Mason

ACT- Addressing the Climate Threat

ACT- Addressing the Climate Threat

Why fighting the climate threat makes business sense

In order to achieve the ambitious EU emission reduction targets businesses in all sectors will have to change the way they produce, deliver and consume energy

There are examples from all over the world, of businesses from all sectors already taking action to combat the effects of climate change

ACT- Addressing the Climate Threat

It’s not just cooperatives

This is not just about saving the planet

it’s also about profit

Why else would companies owned by shareholders be taking action?

ACT- Addressing the Climate Threat

Focus on retailers

• Important energy consumers• Influence on consumer purchasing • Engaging and educating customers

ACT- Addressing the Climate Threat

The Co-operative Group 2008– 99% of electricity sourced from renewables – 15% from own renewable sources – 25% energy reduction target by 2012

– Packaging reduction– Carbon offset linked with a number of products

– Campaigning with Friends of the Earth and WWF– Green Energy for Schools - £3m committed– Engagement with members, staff and customers

ACT- Addressing the Climate Threat

Our customers opinions1 of top 3 priorities

ACT- Addressing the Climate Threat

Direct greenhouse gas emissions 2003 - 2007

2003 2004 2005 2006 2007The Co-operative Group 451,696 340,903 275,633 238,564 246,580United Co-operatives 100,453 49,071

339,017 295,651

CO2e tonnes / £m turnover 55.5 46.7 32.8 37.2 31.7

Energy Consumption: 43,185t CO2e

Refrigeration: 123,413t CO2e

Transport: 129,053t CO2e

ACT- Addressing the Climate Threat

Recognition and business benefits

• Energy efficiency programme to save £17m / year

• Positive media coverage of £3m in 2007

• Brand

ACT- Addressing the Climate Threat

The others that think this is a good idea!

• Wal-Mart, Carrefour, Tesco and Ikea to name a few.

• Doing it for business benefits

• In a declaration the retailers said they will cut energy use per square metre by at least 20 per cent by 2020 and "work towards exceeding" a proposed target on renewable energy.

• Welcomed by EU commission

ACT- Addressing the Climate Threat

Marks and Spencer

ACT- Addressing the Climate Threat

ACT- Addressing the Climate Threat

Sainsbury’s

Many energy efficiency initiatives 25% reduction by 2012

Support for wind farms in Co-operative Group & others

Internal Communications

Membership magazine

Issue 1 Issue 3Issue 2

ACT- Addressing the Climate Threat

Informing and motivating

ACT- Addressing the Climate Threat

Campaigning

ACT- Addressing the Climate Threat

Housing Sector

• Buildings represent 40% of GHG emissions

• Offers the most affordable way to cut emissions

ACT- Addressing the Climate Threat

Housing sector

Investments are largely offset by energy cost savings

Efficiency measures in residential buildings offer better cost recovery than in commercial buildings.

Social and co-operative housing account for 12% of Europe's residential housing stock.

ACT- Addressing the Climate Threat

Cooperative Advantages

• Most housing companies look for energy saving technology that pays for itself within 5 years.

• Co-operatives, without the need to meet shareholder demands can take a longer term view.

ACT- Addressing the Climate Threat

How can energy efficient housing become a reality?

• The technology to hit global emission reduction targets of 50% by 2050 is already available

• Many co-operatives are already significantly decreasing energy consumption to their advantage

ACT- Addressing the Climate Threat

To talk about this is

Dr Hachmann of CECODAS