The Climate Leaders PartnershipJanuary 8, 2007

Leslie CordesChief, Energy Supply and Industry BranchClimate Protection Partnerships Division

Environmental Protection Agency

Shareholder pressure/fiduciary responsibility• 42 resolutions in 2007 proxy season; CERES; CDP; GRI

Public interest increasing• News stories, magazines, movies

Employee satisfaction• Want to feel employer is

good corporate citizen

Save $$ – bottom line benefits

• 15-30% IRR for efficiency

Business opportunities• General Electric, DuPont, United Technologies, General

Motors,

Become well-informed player in policy discussions• Much activity at the federal & state level

Climate Change is an Important Strategic Issue for Companies

Quick Stats on Climate Leaders

Effective corporate climate strategy, road-tested with ~153 partners from every major sector across the country (53 new in 2007 alone)• 10% US GDP• 8% US Emissions

80 Partners have publicly announced goals• Nearly 50 MMTCO2 annually• ~8.7 million cars

11 Partners achieved their greenhouse gas reduction goals

Every year the Climate Leaders partnership prevents the equivalent of the emissions of 7 million cars from

entering the atmosphere!

Reasons to Participate in Climate Leaders

• Reduce impact on the global environment• Better manage greenhouse gas emissions and associated

risks• Realize cost savings through energy efficiency• Receive expert EPA technical assistance on inventories• Participate in national public recognition campaigns• Engage with other partner companies demonstrating

climate leadership• Access the latest GHG tools, technologies & protocols• Improve understanding of critical policy discussions• Integrate climate change strategies with State, Regional,

and International GHG accounting schemes• Get a jump start on new mandatory reporting requirements

Select Climate Leader Partners

Recruitment Channels

• Strategic recruiting:Large emittersKey sectors (cement, pulp and paper,

manufacturing, steel, and chemicals)Fortune 500Widely recognized companies

• Partner referrals• Regional offices and other voluntary

partnerships• Speeches and conferences• Other (PSAs, articles, trade associations)

Climate Leader Partnership Components

The Partnership provides technical assistance and staff guidance to companies for carrying out the three major components of a comprehensive climate program:• Complete a Corporate-Wide GHG Inventory • Develop an Inventory Management Plan (IMP)• Set Aggressive a Corporate-Wide GHG Reduction Goal

Annual reporting to EPA creates lasting record of accomplishments and identifies company as corporate

environmental leader

First Component:Develop a Customized Inventory

Based on International WRI/WBCSD GHG ProtocolRequired

• Corporate-wide (all U.S. operations)• 6 major GHGs • Direct emissions• Indirect emissions from electricity, heat, and

steam

Optional• International operations• Offset projects• Employee travel and commuting• Product transport

Second Component:Create an Inventory Management Plan

EPA provides checklist of components for good IMP to use as guideline when preparing documentation

EPA offers technical assistance to help companies complete IMP documentation

Institutionalizes processPartners develop and implement an IMP or a

similar collection of Standard Operating Procedures and document process for EPA

Third Component:Set an aggressive, long-term GHG reduction goal

EPA offers flexibility in setting a GHG reduction goal because every company has a unique set of emissions sources and reduction opportunities. The goal must be:

• Corporate-wide (domestic or global)• Based on the most recent base year for

which data is available• Achieved over 5 to 10 years• Expressed as an absolute GHG reduction

or as a decrease in GHG intensity• Aggressive compared to the projected

GHG performance for the Partner’s sector

Program Participation Steps

Partner Joins Program

EPA assists Partner in developing inventory and inventory management plan (generally within 1 year)

Partner reports annual inventory data to EPA and documents progress toward goal

Partner may participate in meetings, public outreach, press events, etc.

Partner sets corporate wide 5-10 year GHG reduction goal, domestic or global

Partner Achieves Goal

National Public Recognition

Climate Leaders Partnersreceive high-level recognition via:

• Press events• Page on CL web site• Articles in local, national, and trade magazines• Partner conferences, newsletters, speaking opportunities• Public Service Announcements (PSAs) in mainstream consumer press• 2006 PSA led to >$1 million in ad value

Successfully Leverage Resources

Climate Leaders Partnership builds on its relatively modest budget by leveraging the following:• Strong EPA technical and communications staff• EPA Voluntary Partnerships (Energy Star, Green

Power Partnership, Smart Way, Green Chill, etc)• State and local climate initiatives• In-house technical expertise within Partner

companies• Public Service Announcements, press & media

stories on program, and other outreach• Strong momentum for action on climate change

Summary of Climate Leader Benefits

Free technical assistance• Assistance in developing a GHG inventory • Review of Partner’s Inventory Management Plan • Assistance in setting a GHG reduction goal • Peer exchange through Climate Leaders Partners meetings

Credibility• Assurance that Partners have created a high-quality GHG

management process. • A credible and aggressive GHG emissions reduction

mechanism. National recognition

• Press events. • Public service announcements and advertising

opportunities. • Speaking engagements at industry conferences. • Case studies highlighting Partner achievements in articles,

newsletters, and online. • Partner profiles on Web site

Contact Information

Leslie CordesChief, Energy Supply and Industry

BranchOffice of Air and Radiation

(202) 343-9003 cordes.leslie@epa.gov

www.epa.gov/climateleaders