A New Energy Landscape: What COP 21 Means for Your BusinessModerator: Jeremy Mohr, Director, Sustainability & Resource OptimizationPanel: Andrea DeWees, Manager, Carbon Management Solutions, Adam Maier, Senior Demand Solutions Manager and Matt Clark, Sales Strategy Analyst

February 4, 2016

Jeremy MohrDirector, Sustainability & Resource Optimization

Andrea DeWeesManager, Carbon Management Solutions

Adam MaierSenior Demand Solutions Manager

Matt ClarkSales Strategy Analyst

Meet the Panel

Today’s Topics

What is COP 21?

How will this impact accounting, reporting & strategy

What this means for renewable energy sources

Impacts to utility energy generation

How will it affect my business?

Why does it matter?

Is it legally binding?

What is the Paris Agreement?

What is COP 21?

A Framework to Navigate Through a Global Energy Transformation

United Nations (UN) agreement by 195 nations

Intended for developed as well as developing countries

Outlines a path towards limiting the worst effects of climate change

Is COP 21 Legally Binding?

YesNo

ShouldShall

Does it Matter?

The Energy Transformation is Here to Stay

Expect increased momentum and continued change to world wide markets, business and investor relations

How Will it Affect Business?

Does not change the direction of corporate responsibility, but does solidify it’s importance

How Will it Affect Business?

The “Paris Effect” has permeated the private sector

Wall Street is “mainstreaming” the low carbon economy

Non-state, private sector actors will be challenged to align with the Paris Agreement in 3 key areas:

1. Enhanced Disclosure in Public Reporting2. Performance Action toward Deep

Emission Cuts3. Strategic Energy Procurement &

Adoption of Renewables

The “Paris Effect” in Numbers

U.S. companies signed the American Business Act on Climate Pledge

Global companies signed the Ceres Climate Declaration

Global companies committed to adopt a science-based carbon reduction target with Commit to Action

Global companies committed to procure 100% of electricity from renewable sources with Commit to Action

81

1,000+

117

53

How Will it Affect Business?

Enhanced Disclosure in Public Reporting– New Scope 2 Guidance & the Market-based Method– CDP (Carbon Disclosure Project) New Questions & Scoring Methodology

Performance Action toward Deep Emission Cuts– Setting a science-based emission reduction target– Alignment of capital investment strategy with efficiency improvements– Year-over-year reductions

Strategic Energy Procurement & Adoption of Renewables – Consideration of environmental attributes with energy procurement– On-site electricity production

Distributed Energy Resources

Regulatory LandscapeGovernment commitments & corporate pressure will lead to favorable policy change

Distributed Energy Resources

Financing & Access to CapitalCOP21 commitments will strengthen investor confidence in emerging DER technologies

Distributed Energy Resources

Technological InnovationCOP21 commitments will increase R&D budgets and drive innovation

Distributed Energy Resources

Regulatory Landscape

Financing & Access to Capital

TechnologicalInnovation

Role of the Clean Power Plan

June 2013 – President Obama directs the EPA to work closely with states, industry and other stakeholders to establish carbon pollution standards for both new and existing power plants

August 2015 – EPA finalizes the Clean Power Plan (CPP) rule regulating power plants as the largest U.S. source of carbon pollution under the authorities of the Clean Air Act:

– Section 111(d) – Existing power plants

– Section 111(b) – New & modified power plants

CPP Goal: 32% CO2 Reduction by 2030

Source: EPA, http://cleanpowerplanmaps.epa.gov/cpp

State Carbon Reduction Goals

Clean Power Plan Timeline

2015Aug. 3

2016Sept. 6

2018Sept. 6

2022Jan. 1

2030Jan. 1

Final Clean Power Plan

States Submit Final Plan, or Request Extension

States with Extensions Submit Final Plan

Compliance Period Begins

CO2Final Reduction Goals

Legal Challenges Supreme Court

Summary

Paris Agreement sends a clear signal the energy transformation is here to stay

Businesses will need to continue to evolve from carbon disclosure to performance

Current regulatory and financing environments in the United States make taking action through Distributed Energy Resources (DER) likely attractive

Domestic energy trending adds inevitability of the transformation

Upcoming Webinars

INSIDE ENERGY & SUSTAINABILITY Q1 Energy Market Outlook – February 18th, 11A PST

Q&A

Thank You!