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Why bold, low carbon action makes good business sense.


Foreword one
Foreword by ChrisTiana Figueres
Climate action was once perceived
These businesses, many of which Investments that flow—and flow by many governments and many
are household names, are setting at scale and with speed—into businesses as about sacrifice.
ambitious goals for reducing their a transformation of energy, carbon footprint, delivering on these transportation and manufacturing; Today, the value proposition is very targets and helping their suppliers
into the greening of cities and different. Today, it is the sacrifice
and customers to do the same.
infrastructure and into our forests, economies and communities will soils and other natural systems— increasingly have to make if the world These companies are seizing the that will also be at the center of a fails to address climate change and opportunity and developing a range the buildup of greenhouse gases.
of innovative products and services that can assist everyone to contribute an international agreement in Paris This is why I welcome the way leading to building a better future.
that puts in the pathways and the business groups have come together policies that supports a true business to establish We Mean BusIness. But we all know that the existing transformation can be the catalyst This unprecedented collaboration is policies, actions and opportunities will towards our shared, long-term aims.
a clear signal to governments that only take us so far. business is serious about tackling I would ask policymakers—both
climate change and is ready to lead. If the world wants to reach the goal at the national and international
of keeping a global temperature rise level—to listen to those business
It is part of a growing momentum under 2 degrees C, emissions need groups in the We Mean BusIness
for change that is happening in to peak within a decade, a deep, de- coalition calling for forward-
every corner of the globe and carbonization of the global economy thinking policy to cut carbon.
across economies, sectors and must occur and we must achieve communities—a momentum that can climate neutrality—also termed net The future will happen by default build the confidence of policymakers zero emissions—in the second half of or by design. Over the next 16 to ink a new universal climate the century.
months, governments and business agreement in Paris that is both alongside cities and citizens have the meaningful and visionary.
To realize that vision, business
opportunity to be the architects of needs more ambitious, clearer and
positive change that echoes to the This report demonstrates just how longer-term policy frameworks
needs and the aspirations of this many companies all around the
that enable bolder investments into generation and generations to come.
world are embracing a transition
a net zero carbon and resilient global to a low carbon economy by
their commitment to decouple
emissions from growth.
ChrIsTIana FIgueres
executive secretary un Framework Convention on Climate Change


Foreword two
Foreword by we mean business
The climate has changed. Climate
The low carbon revolution already second, we call on policymakers
as some of the leading business change is one of the planet's
offers huge opportunities for to create policies that enable more organizations on climate change greatest risks, yet tackling it is
business, the economy and society. companies to invest in a low carbon issues, we work with thousands of aron CraMer, President & CeO
Mark kenBer, CeO
also one of our greatest economic
Companies are saving billions by economy on a significant scale. They businesses and investors managing implementing energy efficiency need legislative encouragement and trillions who are ready to accelerate measures and revolutionary low market signals that only governments the momentum on investing in a Today, we have the data to show carbon technologies, and introducing can provide. Businesses need policies low carbon economy. although we that ambitious climate action makes new products and services at an that are forward looking, stable and recognize that transitioning from a business sense. and as we start to extraordinary rate.
long term. This will give them the high carbon to a low carbon economy see the impact of unchecked climate confidence to commit significant is more challenging for some sectors change around the globe, the costs of This innovation is generating capital to scale up clean energy than others, We Mean BusIness inaction for businesses, policymakers employment, reducing carbon and energy efficiency investments. represents an unprecedented Paul sIMPson, CeO
sandrIne dIxson-deClÈve, Director
and consumers continue to rise. footprints and saving money.
Good-paying jobs and more resilient opportunity for us—across all sectors companies and communities will be of the economy—to work together, But so much more can be done. We an added benefit.
commit and act on climate action. The evidence from CDP, on which need more business leaders to lead
this report is based, points to great and policymakers to put the right
so we ask policymakers to recognize We Mean BusIness because
opportunities for more companies to policies in place.
that investing in climate action is an make emissions reductions in their economic imperative with enormous own assets and operations. While We ask for two things.
this approach is important, we must MIndy luBBer, President
PeTer Bakker, President & CeO
recognize the additional need to First, we call on the rest of the private a new, cleaner-energy economy will
completely transform industries and sector to follow businesses that have improve public health, provide more society. We must aim for a net zero taken the lead—and have positive energy security and help alleviate emissions society in the long term, results to show for it. The time for poverty for billions of people around underpinned by a transformation incrementalism is over. We need the world. Many businesses are of the energy system and many bold comprehensive action—by all ready. now governments must act. completely different products and companies—to embrace change services. The partners in We Mean and participate in this transition BusIness are supporting companies to a low carbon economy. energy in their long-term planning for this companies in particular have a rajIv joshI, Managing Director
transformation, which recognize crucial role to play.
both the scale of expected demand increases and the trillion tonne cumulative carbon challenge.
table oF Contents
we mean business .vi
exeCuTive summary . viii
seCTion one: Making Good Financial Returns . 1
seCTion Two: Maximizing Carbon Returns . 9
seCTion Three: How to accelerate the Low Carbon economy . 21
anneX I: The science .29 anneX II: Methodology and Data sources .30 we mean business
We Mean BusIness is a coalition of organizations1 working with thousands of the world's most influential businesses and investors. These businesses recognize that the transition to a low carbon economy is the only way to secure sustainable economic growth and prosperity for all. To accelerate this transition, we have formed a common platform to amplify the business voice, catalyze bold climate action by all and promote smart policy frameworks.
we mean business asKs
poliCymaKers To help
aCKnowledge the
aCT to reduce
advoCaTe for
The privaTe seCTor go
The earth is on a path to a mean temperature rise of 1.5°C to 4.5°C Companies should actively support by the end of the century and Companies should set ambitious public policy to bring about a low establishing a clear long-term global governments have agreed that the sTabilize global
targets to reduce carbon emissions carbon transition and ensure that goal will provide the necessary global temperature rise should be emissions by 2020
across their value chain and plan all public policy advocacy by the direction to business decision kept to 2°C above pre-industrial and seT aggressive
investments and activities to deliver company (and bodies of which it is makers such as net zero emissions levels to avoid the worst climate these targets. This may involve a member) is consistent on climate well before the end of the century. major improvements in energy By 2015, we seek government efficiency, procuring renewably- action to increase the level of generated electricity and other low Companies can demonstrate urgency and ambition to stabilize carbon sources of energy, using an their dedication to the low carbon global emissions before the end of and enCourage
internal price on carbon for strategic agenda by publicly sharing best this decade.
planning, working with suppliers practice examples that illustrate the and other business partners to feasibility of ambitious leadership. We support continued We support improved transparency incentivize them to reduce their They can also communicate all implementation of domestic policies and accountability in monitoring emissions and providing carbon- of the above in a consistent and through to 2030 that support bold climate ambition and action. reducing options to others.
standardized way, using the CO e We want policy to help create a Protocol and a well-established business action to cut emissions, stable and predictable low carbon Companies should use ambitious process such as the annual CDP investment environment. and we targets to innovate and create new public disclosure process.
• eliminating subsidies that need continued scale up of public business opportunities—harnessing incentivize high carbon energy finance to support resilience- design and innovation to reduce the building and accelerate low carbon lifecycle impacts of products and • enacting meaningful pricing of investment by the private sector.
• ending deforestation Companies should also take meaningful action to improve the • putting in place robust energy resilience of operations, supply efficiency standards chains and communities in the • supporting the scale-up of low face of an uncertain climate in the future—including full assessment of • ensuring that all policy regimes climate-related risks and adequate dealing with fiscal, energy, investment in infrastructures and industry and trade-related capacity building to meet them.
issues provide actionable 1 BsR, The B Team, CDP, Ceres, The Climate incentives for an early transition Group, The Prince of Wales's Corporate Leaders Group and WBCsD to a low carbon future The climate has changed. Between 2012 and 2013, almost The most forward-thinking
1,450 companies reported carbon companies, those that have set
a group of companies identified
savings3 of just over 420M metric targets that align with the science
in this report are demonstrating
tonnes per year through internal and have reduced their emissions
bold leadership on climate
investment of more than us$170B intensity from 2012 to 2013, are
action driven by the risks
in low carbon projects. Within the achieving a better financial return and opportunities they know six regions4 highlighted in the study, on low carbon investment relative climate change will bring to their this included around us$140B to their peers. These companies7 businesses. smart policy from investment in nearly 5,500 projects invested 7.5% of the global total leading governments at all levels that are delivering annual carbon investments made by companies in is creating opportunities for low savings of a little over 320M metric this study and reported an average carbon innovation that is helping to IRR of 27% on us$8.2B invested. drive the transition to a low carbon Companies Can
The low carbon investments The reason they outperform
highlighted in section 1 of this others isn't because their attitude
But with global emissions report provide clear evidence that to climate change risks and
continuing to climb, we some measures simply make good opportunities is different, but
be ConFidenT
know that businesses and financial sense and that businesses because the way they act upon
policymakers need to and can do more now. For example,
them is different. Forward-thinking
must do more. and we the Internal rate of return [Irr]5
companies are quicker to spot ThaT CreaTing
must do this together. for process energy efficiency
opportunities to make smart, cost- measures in south africa is
effective business decisions that To understand the low carbon 46%. In the us, process energy
align with a low carbon economy. business case in more detail, efficiency measures get an even
They have made a strategic decision a low Carbon
We Mean BusIness carried higher Irr of 81%.
to set aggressive carbon reduction out a review of the actions and targets and to take low carbon investments companies reported In other cases, it is clear that policy actions that have high financial to CDP in 2013 and 2014.2 We is a key driver for investment in low returns. But these actions will need sTraTegy
wanted to see how companies are carbon action. Policy-driven action to be balanced with an increasing currently acting on climate change. is successfully reducing carbon number of investments that We looked at how corporate targets emissions in areas where a good deliver bigger carbon reductions align with the science and what is financial return alone would not going forward. The processes, maKes good
motivating companies to develop have justified the investment. For technologies and knowledge low carbon business strategies. and example, european renewable uncovered by taking these more we considered the role that policy energy policy ensured that 72% of challenging actions will in turn drive business sense is currently playing and how it can the continent's new power capacity improved returns in future projects.
support further action.
came from renewable sources in 2013 —just a decade ago, 80% came We also found that companies The data provides from fossil fuels6. However, the making the proportionately largest compelling evidence average IRR on low carbon energy investments (relative to overall many Companies are
that smart climate action installation in the european utility operating costs) in low carbon sector was 0%—an indication of the solutions get an equal if not higher makes business sense. success and importance of policy in rate of return than their peers in the driving company action.
same regions.
aChieving an average
irr oF 27% on Their low
3 We use ‘carbon' here as short-hand for ‘carbon dioxide equivalent' or ‘CO e'.
Carbon invesTmenTs.
2 analysis of CDP 2013 and CDP 2014 data - 2012 4 Brazil, China, eu, India, south africa, us and 2013 company performance data, respectively. The data set used for this study 5 IRR is a measure used by businesses globally to 7 Based on data from 85 of the 110 companies includes 1,763 companies. Of this 1,763, 1,455 determine the internal financial return of their referenced in section 2 who reported provided information that enabled further investments.
investments that passed the Investment and analysis of carbon reductions and investment in 6  REN21, Renewables 2014 Global Status Report, Carbon filters (see annex II for more details of low carbon actions.
the methodology used for this analysis).




FORWARD-THINKING BUSINESSES TAKE A BALANCED
APPROACH TO LOW CARBON INVESTMENT.
Overall, they achieve good financial returns and reduce their carbon emissions. PROJECTS WITH
LOW CARBON
Earn back cost of capital above MEDIUM TO
internally set hurdle rate.
Overall collection of projects Deliver processes, technologies deliver carbon emission and knowledge that reduce reduction targets and meet an carbon emissions and can drive acceptable IRR.
Increase the attractiveness of improved financial and carbon high carbon return measures.
returns in future projects.
SOME PROJECTS HAVE VERY ATTRACTIVE FINANCIAL RETURNS:
Employee engagement program to Implementation of LED lighting raise awareness of how to save and automated lighting control energy. Financial incentives and other benefits can help to maximize results.
Capture waste heat for use in industrial processes and space Investment in more energy efficient HVAC (heating, ventilation and air conditioning) units.
EMISSIONS T
SOME PROJECTS DELIVER SIGNIFICANT CARBON EMISSIONS
HURDLE RATE
REDUCTIONS WITH MEDIUM TO LONG-TERM PAYBACK PERIODS:
Retrofit of older building stock Replacement of old, oil-fired including insulation and boilers with new, energy-efficient implementation of building services control mechanisms.
Replacement of light vehicle and Installation of geothermal power company car fleet with electric generation plant.
The data also demonstrate that While these kinds of policies are It's clear that the business
the majority of companies are not not new, the findings of this report climate has changed - companies
yet on a low carbon pathway. and make it clear that they drive and around the world are making smart even the most forward-thinking enable businesses to create the low carbon investments that make companies in this study are still only products and services that are good business sense. The most making short-term commitments achieving carbon reductions successful companies are achieving to carbon reductions. For them today. and by ensuring smart this by taking a balanced approach to make more investments that policies and measures are to their low carbon investments – achieve aggressive carbon maintained and strengthened over complementing projects with high emissions reductions, targeted time, policymakers can provide financial returns and high carbon policy support is needed. businesses with incentives and certainty to make deeper emissions We can do more and cuts in the future. Overall collection Policy has already encouraged iT's Clear
of projects delivers carbon emission businesses into a low carbon reduction targets and meet an transition. More aggressive policy
Businesses that are not already
acceptable internal rate of return. is now needed to send the right
on a low carbon pathway can
signal to business about climate
be confident that creating a low
Based on the findings action that puts us on a low
carbon strategy makes good
in this report, it is also carbon path.
business sense. Investment in the
clear that different policy readily available options to reduce approaches may be business ClimaTe carbon and save energy will deliver
tangible benefits. and by balancing needed to help businesses those actions that have a high in different regions. financial return with those that We found that in India and south has Changed
deliver significant carbon reductions companies can ensure that— africa, companies are able to profit across their range of low carbon from early-mover opportunities investments—they are still achieving and get more carbon return out of financial returns acceptable to the their investments than their peers. CFO. This can also act as a powerful support will be needed to make poliCy is CreaTing The
driver of innovation for businesses sure that these companies, and in terms of the services or products others, continue to have access that they provide.
to the capital and technology CondiTions For privaTe
that will support a low carbon Policy can help to incentivize
companies to invest in measures
seCTor invesTmenT in low
that are more costly, but that
In the eu and the us, even the most result in higher levels of emission forward-thinking companies are
finding it challenging to focus on Carbon aCTion, buT more
reductions. The key lies in three
areas: 1) setting smart regulations the measures with higher carbon that create demand for low returns. extra incentives might be needed in key sectors where the needs To be done.
carbon products and services; 2) Developing policies and financial early win-wins are less available and incentives to make the low carbon for those measures that have the actions with the potential for the potential to reduce emissions on a biggest carbon cuts more financially transformational scale. attractive; and, 3) setting long-term targets that encourage companies to do the same and therefore enable more strategic business thinking about investment in low carbon action with a long-term The TransiTion
The report explores how companies are helping to shape the low To a low Carbon
carbon economy in three sections: FinanCial reTurns
action, so transforming the planet's
low carbon future.
section 1 looks at what low carbon actions can deliver a solid return on There are already tangible internal investment for companies. opportunities for businesses to These are easy wins in today's low
balance their internal investment is already
carbon economy‚actions that all
and carbon returns in a way that will businesses can take advantage
continue to develop the low carbon of now.
economy. But changes could happen much more rapidly and radically happening.
maKing good
if government and business work more closely together to focus on section 2 investigates the actions the opportunities that have not yet companies are taking that deliver been realized. The environment will a good carbon return (i.e., deliver benefit, consumers will benefit and good carbon savings or reductions) the economy will benefit. But it needs concerted, collaborative action.
as the low carbon economy but have longer payback periods. It Based on the information provided explores why companies make these evolves, key questions need by 1,763 companies in their CDP Constructive collaboration is the choices and whether it's enough to 2013 and CDP 2014 responses, this driving force behind the We Mean get us on a low carbon path—which report gives a global snapshot of what BusIness coalition.
means keeping temperature rise to • How does this transition impact the low carbon economy looks like within two degrees C.11 The results today and highlights key trends in show the limitations of today's low six strategic regions—Brazil,8 China,9 • What actions are companies carbon economy but demonstrate
europe (eu),10 India, south africa and taking to reduce carbon? there's a business appetite to do
the united states of america (us). It also looks at what the low carbon • Which companies are providing economy means for different industry the products and services that cut sectors, all of which are responding to a balanCed
a variety of pressures and making the • How can policy help? most of cost-effective opportunities.
section 3 uncovers the benefits of balancing carbon and financial maKing good
returns on investment. The conclusions highlight how more businesses can reap rewards by 8  Limited company information is available from making smart investments today Businesses must find Brazil.
9  Limited company information is available from and also how government policy responsible ways to deliver China. CDP's own China Report for 2013 explains can help unlock more opportunities. that, although reporting is on the increase, there substantial returns for is still limited information available, particularly These actions will enable us to
around emissions reporting (CDP, China Report: dramatically increase ambition and their shareholders. Low
Are Enterprises Ready for Carbon Trading? 2013) 10  austria, Belgium, Bulgaria, Croatia, Cyprus, Czech carbon investments give Republic, Denmark, estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, them this opportunity – Latvia, Lithuania, Luxembourg, Malta, netherlands, Poland, Portugal, Romania, slovakia, slovenia, spain, sweden, united Kingdom 11 See Annex I for further explanation of the science.


Businesses must find responsible ways to deliver substantial returns for their shareholders. Low carbon investments give them this opportunity—and some are taking it. The key is to make sure all businesses reap these rewards. FinanCial
seCTion one
low Carbon aCTions in Key regions
The colored sections on the charts represent low carbon actions,12 and the size of the colored section shows which actions have been used to
save the most emissions reductions in key region and sectors. The % figures on the charts show the internal rate of return for each action. The

chart tells us to what extent companies are investing in actions with the highest rate of return to reduce emissions.13 The figure in the middle of cross the world, and in many businesses
In some cases, the financial argument alone is worth the the charts indicates the annual carbon savings delivered by these climate actions. and sectors, companies are making
investment—the environmental benefits are a valuable investments to reduce their carbon
12  The list of low carbon actions presented here is not exhaustive, but it is based on the categorization used in the CDP questionnaire.
emissions and they are, in many cases,
13  The sample is based on reported data from investments in 7,676 projects between 2012 and 2013. Of these, 2,530 were in the eu and 1,752 were in the us.
achieving very high internal rates of
The figures below highlight the most financially attractive low carbon opportunities and the measures that have return (Irr).
resulted in the highest levels of emissions saved across key regions and sectors. low Carbon aCTions
energy eFFiCienT
Measures to improve energy efficiency of buildings, e.g., insulation. colored sections energy eFFiCienCy
Measures to improve energy efficiency of energy use in buildings, e.g., LeD in buildings
lighting, smart meter, efficient HVaC (heating, ventilation air conditioning).
proCess emissions
Measures to optimize energy and resource use in manufacturing and industrial processes, e.g., waste heat recovery. -21% -7% -2% 22% -21% 2% 28% -31% 109% 12% IRR IRR IRR IRR IRR -21% -7% -2% 22% -21% 2% 28% -31% 109% 12% energy eFFiCienT
Measures to reduce emissions in manufacturing processes, e.g., replacing IRR IRR IRR IRR IRR equipment or changes to operating systems. delivered <1% FugiTive emissions
Measures to reduce unintended industrial greenhouse gas leakages, e.g., reduCTions
natural gas pipeline leaks, CFC venting. low Carbon
Low carbon energy procured from the grid, e.g., renewable energy. low Carbon
Low carbon energy installed on-site or off-site, e.g., solar panels installed on FleeT emissions
Measures to reduce emissions from vehicles owned by the company, e.g., replacement of fleet with electric vehicles.
TransporT
Measures to reduce emissions from product transportation or employee travel, e.g., switching from air to rail freight.
behavioral
Measures to encourage changes in employee behavior that will reduce energy use or carbon emissions, such as switching off lights or cycling to work.
-7% -25% 280% 10% the internal rate -7% -25% 280% 10% sIMPle Changes
high emiTTers see The business
In BehavIor
eFFICIenCy
beneFiTs oF low Carbon aCTion
DeLIVeR easy WIns Of the mining companies reporting could be saving US$70B a year investment in low carbon projects in fuel—with no change in policy In some cases, there is no financial between 2012-13, the average IRR and using currently available Simple energy saving investment required. Many
Over the last 30 years, energy was approximately 115%, achieving steps like switching
companies appoint internal ‘energy consumption per tonne of steel has average annual carbon reductions off lights and computers
reduced by 50%. Steel companies of 34K tonnes CO e in developed or limiting use of air
management champions' who reporting low carbon investments countries and 160K tonnes CO e in can motivate staff with strategies conditioning and heating
between 2012 and 2013 gained emerging economies.
designed to reduce waste and use Carbon Capture and Storage (CCS) can deliver a massive
an average IRR of almost 25% and less water and electricity.
lobally, the average Irr
average annual emissions reductions South African mining company technologies have been used return on investment
for improving the energy
of around 7M tonnes CO e—in both HarMony Gold has a low carbon
successfully within the oil and across all business sectors
Care must be taken that potentially efficiency of industrial
developed and emerging economies.
strategy that involves closing carbon- gas sector for decades and when and locations—often, in less large cost savings from these
used for enhanced oil and gas processes is 23%.
intensive deep mining operations, than a year.
simple changes are not reinvested In India, Jsw steel's, Vijayanagar
using more renewable energy and recovery can make economic sense. in other activities that may undercut Works in Bellary invested US$11.6M investing in energy-efficiency projects. They have been identified by the In the us, where this is the biggest emissions savings. in a waste heat recovery plant. This It invested US$22.5M in 2012-13, and International Energy Agency and the source of emission savings, companies will reduce carbon emissions by forecasts annual emission reductions Intergovernmental Panel on Climate make a much higher return of 81%.
approximately 140K tonnes each year of 125K tonnes CO e.
Change as critical technologies for for the next two decades—saving a cost-effective transition to a low Process efficiency has also resulted 2.8M tonnes CO e over the lifetime of carbon economy. But to make it The small Things add up
in the highest levels of emissions the project and US$4.5M a year. tata
economically viable beyond the savings in India, south africa and steel is also seeing the cost benefits
oil and gas sector, it will need policy support to drive deployment Simple measures like switching off lights and Brazil, and the second highest in the of waste heat and gas recovery. Two The shipping sector has also been eu. The IRR rates for adopting these projects at its Jamshedpur steel works focused on improving efficiency. and provide the opportunity for computers at the end of the day, closing drafty measures are high across many saved an estimated 1.2M CO e tonnes CarGIll, along with 27 other major
research and development to warehouse doors and easing off on the air companies, actively prefer more improve the commercialization and regions and business sectors.
and US$750,000 per year, across conditioning need little upfront investment and direct operations and through the efficient vessels when moving their scalability of the technologies.
goods by sea. As the cargo-owner empower staff to look for ways to cut out waste It should be noted that although value chain.
pays for the fuel 70% of the time Based on the data reviewed for this and save energy. energy efficiency is crucial for arCelor MIttal invested US$207M
in the shipping industry, these study, companies reported 19 CCS reducing emissions in a cost-effective in low carbon projects in 2013 to companies have benefited from projects in 2012 to 2013. Half were way, there is a limit to how far it can Companies who said they measures like switching off support its target of reducing CO e reduced fuel costs and reduced in the oil and gas industry and half had taken action to change lights and air conditioning. carry us relative to the emissions emissions by 8% by 2020, from a carbon—helping hit company were in the utilities sector where behavior in 2012 and 2013 They estimate they cut CO e reductions that are ultimately needed.
baseline of 2007. As well as finding sustainability objectives and government support has helped saved 2.7M tonnes CO e with emissions by 230,000 tonnes ways of reducing its own emissions, improving the bottom line.14 The subsidize pilot projects.
an average IRR of 88%.
per year, with investment it's also developing new products for savings from choosing more efficient recouped after less than a electric vehicles, low carbon and more vessels are huge. The difference One of the largest new projects bt, a UK-based telecoms
resilient buildings, and infrastructure between a "B rated" and "F rated" reported is being led by CHevron.
company with well-established like flood defense systems.
vessel (scale goes from A to G) can The Gorgon project plans to capture employee engagement banCo santander has set
result in US$400,000 worth of fuel 3.4M tonnes CO e per year and programs, indicates that 78% an energy saving plan that savings and 2,000 tonnes of CO e store it underground. It is estimated of employees were actively targets employee behavior saved on a single journey from to cost US$37B for the first phase engaged in reducing energy change to help reduce energy Brazil to China.15 At scale, the industry of development, which is now 60% use. Employee engagement Mining companies are also making is key to driving behavioral savings by improving energy 14  The Carbon War Room, new shipping altron, a South African
changes and is helped efficiency, with knock-on benefits Report: Hidden Treasure: new Models for information technology via remuneration based of reduced water use, too—a major Retrofits, 2014.
company, instigated its energy on performance against advantage in areas where climate 15 The Carbon War Room, Calculating and savings campaign by asking sustainability objectives. change has led to water shortages.
Comparing CO emissions from the Global Maritime Fleet, 2013. employees to take simple


reneWaBle energy
ProduCT regulaTIon Has HeLPeD
Is a sMaRT InVesTMenT suPPORT WIn-WIn sTRaTeGIes FOR BusIness Based on the data used in
Product-based regulation has helped Overall, companies see product this report, it was found
The strong financial
returns from
to drive this. This type of policy has efficiency regulation as an opportunity that renewable energy
going 100% renewable
implementing low carbon
multiple benefits: it responds rather than a risk. (see section 2 for investments resulted in the
to customer demands for ways further information.) It provides a Three businesses that have put renewable energy investment solutions across sectors and
to reduce the amount they are useful ‘carrot' for the most innovative highest level of emissions
at the heart of their business and energy management regions are in part due to the spending on energy and it creates
companies that are set to thrive in the reductions globally.
strategies are IKEA, Apple and BT. decreasing cost of advanced
opportunities in the marketplace for low carbon economy. They are able low carbon technologies such new products, without specifying the
to allocate R&D spend to low carbon a great deal of this investment has as led lighting and energy
type of technology that needs to be and energy efficient solutions, safe been in the european utilities sector, IKea is committed to getting
energy capacity to 50MW, which efficient IT equipment.
used. This leads to product innovation in the knowledge that there will be a but increasingly a broad range of 100% of its power from generates 167 million kilowatt- renewable sources by 2020. So hours of renewable energy and enables customers to select the market for their products.
companies are installing their own far, it has installed 700,000 solar per year, enough to power the win-win efficiency opportunities that low carbon power. This is a trend panels across its retail stores, equivalent of more than 13,800 best fit their needs. also reported in Bloomberg new offices and factories and more homes. Since 2013, all Apple energy Finance's, Global Corporate than 200 wind turbines have data centers have been powered Renewable energy Index (CReX).
been built off-site. 1,425 GWh by 100% renewable energy—so of renewable energy has been iTunes customers have been produCTs ThaT are shaping The low Carbon eConomy
a company's motives for investing in generated—equivalent to over a assured that downloading won't renewable energy vary. For instance, third of total consumption. IKEA contribute to climate change.
potential for the grid to help store Companies are responding to it may be to combat inflated energy plans to invest a total of US$2B over the next five years.
bt has a contract to purchase
excess renewable energy Regulations product regulation and energy prices or increasing uncertainty 100% renewable electricity for all and financial incentives have helped efficiency standards such as the US over supply. For others, there are apple has committed to power
its UK operations, estimated to LED technology, which uses 50-70% to create market opportunities for EPA's Energy Star label. apple's
reputational benefits. and for more all of its offices, data centers represent approximately 0.75% less energy16 than conventional car companies to develop EVs. entire product range exceeds the and more companies, it simply makes and retail stores with 100% of all power use in the UK. They lighting, has enormous energy and Energy Star requirements and 98% good business sense. renewable energy. In fiscal year will purchase enough renewable cost-saving benefits for businesses, bMw, Ford, nIssan, tesla and
of lenovo's notebooks meet
2013, Apple invested more than energy from a Scottish wind households and cities. Government toyota are all carving a place in
the standards. Intel's fourth
Those companies whose best US$100M to double the solar farm to power its entire Scottish regulations phasing out incandescent the US EV market that grew by 35% generation processors help PC lighting gave this new low carbon in the first half of 2014.18 Over 60 manufacturers achieve this: they opportunity to reduce emissions is in and biogas fuel cell projects operations, which will equate to supporting its Maiden data an investment of almost US$0.5B technology a huge helping hand. of the companies included in this provide increased computer power, their building stock (the finance and center. The investment increased over the next 20 years. In 2013, over 400 companies study report investment in EVs in but require 50% less energy than retail sectors, for example) saw a 29% the data center's renewable report implementing LED projects 2013. This involved switching fleet, first generation models.
IRR on renewable energy investments to support their low carbon encouraging EVs through company such as installing solar panels on the commitments. Companies like car schemes and providing charging IT leaders are also helping roofs of offices and warehouses. For pHIlIps and osraM have seized
stations for employees and customers to reduce energy use in those in the industrial sectors, where this market opportunity—worth data centers. Hp has just launched a
the scale of investment in renewable US$4.8 billion in 2012 and predicted new server that uses up to 89% less to rise to US$42 billion by 2019.17 energy and costs 77% less than a energy is significantly larger, the traditional server. average return on renewable installations was 22%.
electric vehicles It is estimated that Information Mobile phone giant CHIna MobIle
and Communications Technology is reduced energy consumption There are clear opportunities for Governments see multiple benefits (ICT) could enable a 15% reduction of its networks by 38% each year, companies in India and south africa of electric vehicles (EVs). In addition in CO e by 2020 as a result of helping to reduce their customer's improved energy efficiency of where renewable energy projects to saving carbon emissions, they carbon footprint. And wIpro has
can improve air quality in urban products and helping customers result in an IRR of 20% and 10%, developed a number of energy areas and provide valuable battery manage energy in smarter ways.19 management software tools in respectively, and achieved the second response to the increased demand highest level of emission reductions in 16 The Climate Group, Lighting the Clean from clients looking for data both countries.
Revolution: The Rise of LEDs and What it 18 Brad Plumer, The Rise of the Electric Car in management tools that enable them Means for Cities, 2012 the US, in 6 Charts, Vox, 2014 to become more energy efficient.
17 Winter Green Research, LED Lighting: Market 19 The Climate Group, Smart 2020: Enabling the Shares, Strategies, and Forecasts, Worldwide, Low Carbon Economy in the Information 2013 to 2019, Researchmoz, 2013 Age, Global e-sustainability Initiative, 2008 maximizing
Companies don't only invest in the low carbon actions with the best financial return. They also invest in measures that have a good carbon return—those that deliver high levels of carbon emission savings. seCTion Two
For Companies aCross all seCTors,
enhanCing repuTaTion and adapTing To
Changing CusTomer demand are imporTanT
FaCTors inFluenCing Their ChoiCes.
Below we list a range of climate and low carbon drivers that impact on business
Many FaCTors MOTIVaTe BusIness
decision making. some key findings are as follows: TO TaKe LOW CaRBOn aCTIOn CorporaTe
poliCy covers a range of
weaTher impaCTs like
regulations and policy measures changes in rainfall and increasing repuTaTion is a major
inancial returns are only
motivation in all sectors, that create legal obligations for temperature extremes are one of the many factors
particularly for firms in the eu and companies. Many businesses reported as significant risks across that businesses consider
building For The FuTure
us. Companies are also seeing respond to the likelihood of more all sectors and regions, especially when developing low carbon
and responding to the changing environmental regulation given emerging economies where the the scientific evidence for the allocation of natural resources is The construction sector is innovating to ensure new needs of consumers and B2B buildings have a smaller carbon footprint and are more customers, for example, around need to address climate change.
also a key factor.
Many companies are already factoring resilient to changing climate conditions such as more products with improved efficiency.
Product efficiency regulation in the potential impact that climate extreme weather events and bigger temperature extremes. and labeling requirements change will have on their business Building standards such as LEED (Leadership in Energy & help businesses react to changing due to changing weather conditions, Environmental Design) and BREEAM (Building Research volunTary
ConsideraTions such
customer expectations and many resource scarcity, changing customer Establishment Environmental Assessment Methodology) agreemenTs are seen as
as increased risk of certain reporting to CDP cite them as needs, potential legislation and diseases and added strain on have helped to raise standards for new buildings and an opportunity in all regions and the likelihood of a price on carbon. sectors, although by a fairly small social conditions have an impact although the payback periods for retrofitting exiting ones. number of companies.
on people too. Businesses must Market mechanisms, certain low carbon investments be responsive, especially in those like fuel and energy taxes, carbon may not fit normal decision-making sKansKa has an ultimate goal
intensity of its products through parts of the world most vulnerable taxation and cap and trade criteria, the wider benefits and long for net zero primary energy in process efficiency technologies to climate change.
buildings and net zero carbon schemes (carbon pricing) are term value for shareholders means and using renewable energy. emissions in construction and arCelor MIttal is reducing
agreemenTs, in general, fall generally seen as slightly more of a
that smart businesses are investing in has already built some of the the carbon intensity of steel very closely on the line between risk than an opportunity. However, projects that will help them prepare world's greenest buildings. used for buildings construction. risk and opportunity for the in the utilities sector, where And companies like broad
majority of companies. In the cap and trade has had arguably Throughout the construction are continuously innovating to Transport sector they are seen the biggest impact to date, the For example, in europe, some of supply chain, companies are provide more energy efficient as slightly more as a risk, but for opportunity ranking for cap and the most cost-effective measures to working to reduce carbon technologies for heating, cooling the utilities they are one of the trade is higher. This probably improve building efficiency may have emissions. Cement producer and lighting that can dramatically top five opportunities. Compared underlines how uncertainty already been seized. However, the pretorIa portland in South
reduce energy use over the to other regions, international around some of these measures is findings in this study indicate that Africa is reducing the carbon course of a building's lifetime.
agreements are seen as more of driving the risk perception in other companies are still moving ahead an opportunity in India, Brazil and and investing in more aggressive also in the eu where companies opportunities for cutting energy would presumably benefit from a Renewable energy regulation bills. Motivations for this include more level playing field, with caps increasingly stringent building (such as feed-in tariffs) also being introduced across a greater regulations and increasing demand features as an opportunity driver number of regions.
for energy efficiency buildings for the utilities and we would to combat against rising energy expect to see more companies costs. across the value chain, the reporting this once feed-in tariffs construction sector is taking action.
are more widely used and better established. (even in europe, for example, the coverage for feed-in tariffs is mixed).
aRe CORPORaTe aCTIOns In moTivaTion For business aCTion
LIne WITH The ClIMaTe sCIenCe?
INCREASED #
OF COMPANIES
This chart shows various reasons for corporate climate action grouped into color-coded The risks and opportunities shown in the Motivation Most companies are not setting targets in line with the
for Business action chart influence how companies science.20 More ambitious targets are particularly important develop low carbon strategies, including investments they in regions with high historic and projected future levels of SK categories. It shows how many
make and emission reduction targets they set. But if these carbon emissions (the eu, us and China) and within the companies identified each driver companies are to meet scientific guidelines on carbon high emissions business sectors (utilities and heavy industry).21 as being important (the higher it reductions to prevent dangerous climate change, are is on the vertical axis, the more those considerations driving companies to be ambitious companies reported it) and the emphasis they placed on it being a risk (to the right of the broken line) versus an opportunity (to We compared carbon reduction targets set
20 The scientific case is outlined in annex I.
the left of the broken line). For by the companies in the study with required
21 The IPCC briefings by the university of Cambridge, working with a number of partners including BsR and WBCsD give a concise overview of of the challenges further details on the categories reduction levels needed under a low carbon
and opportunities associated with climate change in 11 key sectors. e.g. Climate of risk and opportunity, see pathway to analyze whether corporate
Change: Implications for Transport—Key Findings from the Intergovernmental Panel on Climate Change, 2014; Climate Change: Implications for extractive Table I on page 28. Fuel Taxes & Policy actions and ambition are on track.
and Primary Industries—Key Findings from the Intergovernmental Panel on Climate Change, 2014.
Droughts/Heavy Rainfall INDICATES EQUAL RISK Company TargeTs and
& OPPORTUNITY LEVELS Emissions Reporting Policy The low Carbon paThway
Increasing Temperatures Extreme Temperatures Product Efficiency Policy International Agreements Changes in Rainfall Impact on Natural Resources Environmental Policy Product Labeling Policy Air Pollution Policy Change in Rainfall Patterns Renewable Energy Policy Economic Impact on Consumer VOLUNTARY AGREEMENTS TARGETS BELOW THE LINE
ARE ON TRACK TO EXCEED
Voluntary Agreements THE LOW-CARBON PATHWAY
Community Impact IMPACT ON NATURAL RESOURCES % REDUCTION T
DECREASED #
OF COMPANIES
SIZE OF BUBBLE INDICATES RELATIVE SIZE OF EMISSIONS
In this chart, the dotted line shows the amount of emissions the target covers; and minimum reduction targets companies must the placement of the bubble in relation to indicates relative set to get onto a safe, low carbon pathway. the pathway shows how good the target is. size of emissions (See Annex I for further details about the If the bubble is below the line, the target is for that company22 science.) Each bubble represents a company good—representing emissions reductions target; the size of the bubble shows the beyond the minimum requirements. 22 All emissions data is normalized.
Companies seTTing The besT
Company TargeTs in Four Key seCTors
TargeTs in Their region23 24
INCREASINGLY BEHIND THE
INCREASINGLY BEHIND THE
LOW CARBON PATHWAY (%)
LOW CARBON PATHWAY (%)
SECTORAL
LOW CARBON
LOW CARBON
BELOW THE LINE =
ON TRACK TO EXCEED
THE LOW CARBON
BELOW THE LINE =
ON TRACK TO EXCEED THE
LOW CARBON PATHWAY
INCREASINGLY AHEAD OF THE
INCREASINGLY AHEAD OF THE
LOW CARBON PATHWAY (%)
LOW CARBON PATHWAY (%)
This chart shows how, in six key regions, Size of gray bubble represents relative CO e This chart shows how, in four key Size of gray bubble represents relative CO e the targets of all companies—and those emissions (excluding emissions from sectors,25 the targets of all reporting emissions (excluding emissions from of the Top Ten target setters—compare land-use changes) in 2010.
Weighted average gap companies—and those of the Top Ten land-use changes) in 2010.
Weighted average gap to the low carbon pathway. between emissions Target setters—compare to the low between emissions targets and the low carbon pathway. targets and the low 23 This sample includes 1,242 companies that reported meaningful scope 1 and 2 targets in their responses to CDP in 2013 and 2014, either absolute or based on intensity reduction. an explanation of how absolute and intensity based targets were normalized can be found in annex II.
25 Companies have been allocated to the 24 This report compares each company target to the global low-carbon pathway for its sector, a simple way to Top 10 Target Setters
Top 10 Target Setters
most appropriate IPCC sector. see annex gauge levels of corporate ambition that is most accurate for global companies operating across many II for further information.
countries. We acknowledge that the actual low carbon pathway will be different for each country, but defining these for all company country-level operations is outside the scope of this report.
Many COMPanIes aRe seTTInG The Bar hIgh TO ReDuCe
eMIssIOns, anD IT's WORKInG Iberdrola, a major Spanish electricity utility, has
another US$680M in an 182MW solar generation taken a strategic position to become a low carbon facility in California. It will spend US$15B over the next power provider. It has 14.4GW of renewable generation five years in transmission and electricity management capacity installed with an average investment of ased on the set of
emissions intensity between
that of the 20 Fortune 100 companies US$0.9B over 2012 to 2013 and has a further US$3.2B companies reviewed
2012 and 2013.
with targets that ended in 2012, 85% of investment planned for 2014 to 2016. A focus on low Another important element of decarbonizing the as part of this study, we
achieved their target and 80% have carbon power has enabled the company to achieve a power sector is to make sure the grid infrastructure 28% reduction of CO e per MWh in 2013. can support the increase of renewable energy. can see most are setting
But even among this group, there gone on to set greater targets, or natIonal GrId plays a major role in making this
targets behind the scientific
is a lack of post-2020 targets, which still have ongoing targets in other areas. However, renewing short- exelon, a US power company, is one of only two
happen in the US and UK. In 2013, it started work on a guidelines. In addition to
means there is little indication of term commitments gives us far less power utility companies to set a 100% carbon 600kV subsea HVDC link from Scotland to England to the Top Ten Target setters
what investments they will make to emissions reduction goal and aims to achieve it by support the export of renewable power. It successfully reduce emissions further. a positive certainty than setting clear targets in each sector and region,
2020 (verbund aG, an Austrian power company,
commissioned the first commercial biogas-to-grid indication that they will continue to into the future. longer-term policy
has set a 100% target by 2050). The company's low project in Doncaster and introduced "Smart Energy we identified 110 companies
set aggressive targets comes from frameworks are essential to
carbon strategy is based on a combination of nuclear Solutions" to 15,000 customers in the US, including who have not only set targets a recent study of us businesses
encourage more future thinking
and renewable energy. In 2013, it retired two oil-fired advanced meters and communications systems, to help that match or exceed the
undertaken by Ceres.26 They found and ambitious commitments.
generation units and increased its nuclear capacity customers make more informed decisions, improve scientific guidelines, but
through an investment of US$45M. It also invested energy efficiency and reduce emissions.
who have also reduced their
26 Ceres, Power Forward 2.0: How american Companies are setting Clean energy Targets and Capturing Greater Business Value, 2014.
WHen IT COMes TO LOW CaRBOn FinanCial
InVesTMenT, loCaTIon MaTTers
and Carbon
e can already see the impact (including conversion of conventional
reduction in subsidies that incentivize aChieved by
that policy frameworks
power plants to biomass). 96% of high carbon energy, are needed to are having in some regions.
emissions reductions by european make low carbon investments more action in the eu and us varies
utilities came from low carbon energy financially attractive. The business considerably. For example, the
installation, with an IRR of 0%. By case for us investment in low carbon ThinKing
average IRR in the eu for low comparison, in the us—where there's activities is clear but policymakers carbon investments is substantially traditionally been less climate and will need to encourage bigger lower than for us companies. energy regulation—90% of emissions reductions in emissions by promoting But the carbon returns are reductions in the utilities sector come more effective, if more expensive, substantially higher in the eu for from process efficiency, which has the measures. every us$ invested. This is due best IRR of 90%. Low carbon energy This log scale chart shows how, in four to more stringent eu regulation generation only accounts for 6% of Finding a balance
key regions, the forward-thinking group which encourages investment in carbon emissions reductions there.
between the ‘carrot' that
of companies (those who reduced low carbon actions that will cut incentivizes investment
emissions intensity from 2012-2013 The challenging financial returns that and the regulation ‘stick'
and have a target in line with the low companies in the eu data-set are carbon pathway) compare to their peers This difference is particularly marked facing in many areas is an indication by encouraging close
in terms of the overall internal rate of in the utilities sector. In the eu, that the low hanging fruit that collaboration between a
return on their low carbon investments previous action by utility companies delivers quick financial returns has positively engaged business
(shown on the vertical axis) and the amount of emissions savings they achieve means there are now fewer easy- already been harvested. To continue lobby and pragmatic
per US$1,000 invested (shown on the win efficiency options available for to make cuts in carbon emissions, policymakers is at the heart
horizontal axis). coal and gas plants, so regulation is policy measures such as financial of the We Mean BusIness
creating the drive towards renewables incentives, carbon pricing and (Tonnes CO Saved / US $1,000 investment) eMergIng eConoMIes RePORT
GOOD CaRBOn anD FInanCIaL ReTuRns On InVesTMenT The companies in India
and south africa, in the
sample reviewed as part
low Carbon innovaTion
of this study, show that
where iT's needed mosT
businesses can make strong
financial returns while
For some companies, the biggest opportunity for achieving high levels of
managing climate change risks and making the emissions reductions.
most of energy efficiency opportunities lie beyond their own operations. This is because these countries have more recently started out on their CDP's Supply Chain Program— unIlever is a long-standing
low carbon journey and have access which has 66 members with a sustainability champion and to proven and available technologies combined spend of US$1.3T— has set an ambitious goal to to achieve reductions in carbon provides a platform for cut carbon emissions across companies to help customers the lifecycle of its products by and suppliers reduce their 50% by 2020. So it's working But for these markets to keep with suppliers to help reduce enjoying financial and environmental emissions and also helping success, they need affordable access Eight companies in this program consumers reduce their footprint to the growing range of low carbon are part of the food and drink by using Unilever products—by technologies being developed and value chain and all recognize building on initiatives such as proven in other markets. This is that future business success will clothes detergents that work one of the crucial responsibilities of rely on the ability of suppliers at low-water temperatures to to tackle the physical impacts reduce the energy used in a both major exporters of low carbon of a changing climate, as well washing cycle.
technology and of the international as becoming more resource- climate process. enabling low efficient. Reputation is also a key MarFrIG, a food producer
carbon markets to flourish is a driver for going the extra mile. in Brazil, is collaborating with potentially significant financial ‘carrot'. All of these businesses have retailers to help reduce carbon. Technology for reducing emissions extremely visible and popular Meat farming requires different needs to be commercially available brands. Maintaining their value is technologies for reducing to emerging markets at the same of critical importance.
methane, one of the most potent time policies can help incentivize greenhouse gas emissions. companies in these regions to walMart has set an ambitious
Marfrig is finding ways to capture innovate and develop products and target to eliminate 20M tonnes and process methane, as well CO e from products it sells by as introducing more typical services that can be exported. 2015. nestlÉ also recognizes the energy efficient technologies with
need to work with suppliers, in payback periods of 1-3 years.
Companies in emerging economies particular to support their coffee will also be able to make the most growers in tackling climate of the low carbon opportunities on change impacts, as well as helping offer if they are supported by their them to reduce emissions.
international counterparts through supply chain initiatives and sharing of aCCeleraTe
Bold, forward-thinking businesses are taking advantage of today's low carbon economy. They are balancing investments to maximize financial returns while delivering aggressive cuts in carbon emissions. For businesses to take
study,28 illustrate what a low carbon Based on our findings, in this final advantage of today's low
portfolio looks like at the global level.
concluding section we address two ClimaTe aCTion
carbon economy, they need
key questions: First, how can more to balance their low carbon
using macroeconomic analysis businesses make the most of their to illustrate the different costs projects to make sure some
current low carbon investments? associated with various low carbon and second, how can policymakers have a high financial return
maKes good
solutions, they help inform a strategy support further investments which and others have a high
for lowering emissions at the best deliver beneficial carbon and financial carbon return.
price. They provide a top-down view. The analysis presented here shows business sense
The McKinsey cost curve27 and, more how businesses are maximizing the By answering both questions,
recently, The new Climate economy potential of such carbon portfolios we are able to draw significant
in different sectors and regions. It conclusions as to how business
provides the ground-up view.
and government can collaborate to
ensure a low carbon future.
27 McKinsey & Company, Pathways to a Low Carbon Economy Version 2 of the Greenhouse Gas 28 The new Climate economy, Better Growth, Better balanCed low Carbon porTFolios give
Abatement Cost Curve, 2009 good Carbon and FinanCial reTurns
By developing a portfolio of
on the chance of investing in projects different projects, businesses can
that cut carbon significantly, but deliver good carbon returns at the
currently fall just below this hurdle same time as meeting conventional rate.
financial returns.
If companies take a balanced To make the most of the balance approach to investment, not every between high carbon and high low carbon project needs to achieve financial returns, smart companies a high IRR because the portfolio as should look at the widely disparate a whole will exceed this. Portfolio IRRs available today—and they can investing opens doors to investments do this in response to their own risk that reduce emissions (i.e., have good profile and appetite for seizing the carbon returns), but don't necessarily meet an internal hurdle rate on their For example, in the us, a typical company might only approve internal This approach also means businesses investment on projects delivering a can make smarter, more strategic financial return of 15% or higher (i.e., decisions about investments. For projects that have a hurdle rate of instance, they might choose to 15% IRR). The low carbon projects deliver more projects that just fall reported by companies included in short of internal hurdle rates, or be this study that exceeded this hurdle more radical and concentrate on rate achieved an average return on opportunities that bring more long- investment of 78%—significantly term financial benefits.
outperforming the financial criteria needed to go ahead. However, by evaluating projects on such a case-by- case basis, companies are missing out smarT businesses Know The beneFiT oF balanCe
There is no downside To big invesTmenTs
The 110 companies that have set
The reason that the forward-
In India and south africa, where more Companies that make the biggest investments (relative to their operating costs)30 receive a slightly
carbon emission targets which
thinking group of companies
easy-wins are still on the table, the above-average Irr in all regions except south africa and Brazil.31 Clearly, there's no apparent disadvantage to
align with the low carbon pathway
outperforms others is not
top-performing companies pull away making proportionately large investments in low carbon solutions. In short, profitable low carbon investment appears —and who reduced emissions
necessarily because their attitude
from the pack to achieve better-than- to be scalable.
intensity during 2012 to 2013 (see
toward low carbon risks and
average results for both high carbon annex II for further details)—also
opportunities is different, but
and financial returns. benefit from a higher-than-average because the way they act on
rate of return on their investments them is.
Longer-term policy frameworks will maKing big invesTmenTs
in most regions.
encourage firms to plan and prioritize Forward-thinking companies (in low carbon investments. Policies maKes business sense
In the eu, although they perform well these regions) are good at choosing that make actions with high carbon This chart looks at those companies who invested the most in low carbon solutions financially, the average tonne of CO e cost-effective options for reducing returns more financially attractive will (top 25% by investment relative to operating they reduce per dollar invested is emissions and at setting leadership also help support business action.29 costs). It shows what their overall share less than the regional average. In the goals, but they will need extra of low carbon investment and emissions us, they are in line with the country incentives and longer-term policy savings is and what rate of return they get average, where all companies achieve frameworks to develop strategies that on their low carbon investment compared to an impressive financial return but a include the more expensive internal their peers. less-good carbon return. investments with higher carbon 29  Clear evidence of forward-thinking companies' (relative to operating costs) appetite for new policy development on climate change can be seen in the various communiqués TOP 25% OF INVESTORS
EMISSIONS SAVINGS (compared to all companies) 30 The top quartile of companies based on total investment/operating costs31 IRR study applied at the global level and in the eu and us only, where the IRR figures for the top quartile were 4% in the eu (compared to 1% for the whole eu sample) and 21% in the us (compared to 20% for the whole us sample). Globally the top quartile received an IRR of 12% compared to the average of 11%. business
poliCy Can maKe high Carbon
The sTrong business Case
reTurns more FinanCially
should give poliCymaKers
aTTraCTive
Policy can unlock investment in low carbon actions
The business case for low carbon action in India that can have significant carbon returns, but aren't
and south africa is striking. It is acknowledged currently financially attractive.
that the companies included in the sample used for this study are likely to represent the most bold poliCy
To encourage businesses to include more high carbon forward-thinking companies in these regions, but return measures in their low carbon portfolios, it provides a good indication of what is possible. policymakers can: With greater access to affordable capital and increased awareness about the potential business • eliminate subsidies that incentivize high carbon energy benefits of low carbon action, further projects can be encouraged. When negotiating for an
• enact meaningful pricing of carbon ambitious and fair global deal, officials from
poliCymaKers should noT
businesses sTill need
• put in place robust energy efficiency standards these countries can take confidence from their
doubT ThaT The low Carbon
national low carbon opportunities.
TransFormaTion is an
• support the scale-up of low carbon energy eConomiC opporTuniTy
a clear, long-term policy framework is essential if
ongoing publiC seCTor
companies are to develop thriving internal portfolios
• ensure that all policy regimes dealing with fiscal, invesTmenT is needed To geT
Between 2012 and 2013, some 1,450 companies reported of low carbon investment. Business has been asking for
energy, industry and trade related issues provide saving just over 420M tonnes of CO e per year through this for many years, and low-cost/high return measures actionable incentives for an early transition to a low The besT From business
internal investment of more than us$170B in low carbon should still be prioritized, but a more strategic approach While this report focuses on leveraging private sector
projects. Within the six regions highlighted in the study, will encourage businesses to focus on higher emission- action, the public sector also has a critical role to play.
this included around us$140B investment in nearly 5,500 reducing activities and longer-term gains.
These interventions are particularly important in high It can develop an infrastructure that supports a low
projects that are delivering annual savings of a little over impact sectors—for example, decarbonizing the power carbon economy—in particular the scale up of mass
320M tonnes of CO e.
This is why a clear and ambitious roadmap to 2050 is sector and finding low carbon alternatives to mass transit transit, the development of super grids, smart grids and so essential—because it will mean that businesses will and aviation fuel.
power storage. It also needs to consider investment in Forward-thinking companies invested 7.5% of the global be persuaded to make necessary, transformational adaptation measures to protect those most vulnerable to total, achieved 3.3% of carbon reductions and reported an investments sooner rather than later.
rising sea levels, temperature extremes, flooding, droughts average annual return of 27% on us$8.2B invested.
and extreme weather events. securing investment from and it would encourage the companies that can create financial institutions is not covered in this report, but However, some low carbon actions that businesses low carbon products and services to direct more research We Mean BusIness recognizes the importance that the need to take are not financially attractive. Often, the and development funding into markets that could flourish investor community has to play.
broader business case is not strong enough to shift in a low carbon economy. Many businesses have been transformational change—especially decarbonizing calling for a long-term climate policy framework for some the power sector and finding low carbon alternatives time, but this has not yet materialized. Business itself to mass transit and aviation fuel. These are areas need must up its game, stop negative lobbying, and work with policy carrots and sticks—and changes to subsidies that policymakers to give them the confidence they need to incentivize high-carbon energy.
make this a reality. anneX I: THe sCIenCe driver name
The potential impacts of public, stakeholder and customer perceptions of a company's carbon performance/climate change position.
One thing we know for certain is that to keep temperature The two-degree pathways used in this report (which we The change in demand for a product or service as a result of climate change. rise within two degrees Celsius, the world's emissions refer to as the low carbon pathway) are approximated trajectory needs to change.32 Global emissions since from the analysis presented in the fifth IPCC report and renewable energy
Regulation, standards or incentives that promote investment in or use of renewable energy.
industrialization need to be limited to 1,000 Gt CO e33 are intended to give an overall sense of what business but in 2011 we were already halfway towards that limit.34 ambition looks like in comparison to what is required to air polluTion limiTs
Regulation, standards or incentives that limit air pollution.
although there are a number of safe pathways we stay within a temperature increase of 2 degrees Celsius. Regulation, standards or incentives that address a range of could take, it is generally accepted that, by mid-century, When looking at the focus regions, we do not attempt to environmental issues such as waste, water and natural resources.
greenhouse gas emissions need to be 40% to 70% lower model different pathways based on regionally attributed compared to 2010, and near zero Gt CO e or below in targets, as we see this as the responsibility of the emissions reporTing
Regulation, standards or incentives that require international climate negotiations and know that there are companies to report carbon emission data.
many leading thinkers applying themselves to this problem Regulation, standards or incentives that require Recent analysis shows that under the current business- in the run up to Paris in 2016. Instead, we simply use the products to meet certain low carbon requirements.
as-usual scenario, emissions will grow by another 12% to overall global pathway to provide a comparison point and reach 58B tonnes of CO -equivalent per year by 2020. To to put regional emissions by the private sector in context. produCT eFFiCienCy
Regulation, standards or incentives that encourage low carbon and energy efficient products and services.
remain on track for 2 degrees, we would need them to be 14B tonnes lower. This difference has become known produCT labeling
Regulation, standards or incentives that require products or services to meet as the ‘emissions gap' and even if a range of government specific set of requirements to obtain a low carbon or energy efficiency label.
pledges (half of which are unconfirmed) were taken Regulation, standards or incentives that require companies to reduce carbon into account, the gap would still only be reduced by 6B Cap and Trade
emissions to a set level or to purchase credits to compensate. These regulations also specify requirements for how companies may create carbon credits.
Fuel Taxes and poliCy
Regulation, standards or incentives directed at fuel products, mainly relating to fossil fuels.
32 In December 2010, parties to the un Framework Convention on Climate Change (unFCCC) agreed to commit to a maximum temperature rise of 2°C Carbon Taxes
Financial mechanism for allocation a cost to carbon.
above pre-industrial levels, and to consider lowering that maximum to 1.5°C in the near future. (Carolyn symon, Climate Change: Action, Trends and Implications for Business, Briefing, Cambridge Judge Business school and Cambridge actions or targets for companies determined by internationally binding agreements Programme for sustainability Leadership, 2013) within united nations international conventions or any other internationally 33 Reduced to 790Gt when accounting for non CO forcings (stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor, s.K. allen, J. Boschung, a. nauels, y. Xia, V. Bex and P.M. Midgley (eds.), 2013: Summary for Policymakers. In: Climate Change 2013: The volunTary
volunTary
a contract agreed between a company and the state Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, IPCC, page 27, 2013) authorities, setting specific emissions targets. 34 stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor, s.K. allen, J. Boschung, a. nauels, y. Xia, V. Bex and P.M. Midgley (eds.), 2013: Summary for Policymakers. In: Climate snow and iCe
The effect of increased snow and ice on a company's operations.
Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, IPCC, Changes in rainFall
The effect of changes in rainfall patterns on a company's operations.
35 edenhofer, O., R. Pichs-Madruga, y. sokona, e. Farahani, s. Kadner, K. seyboth, inCreasing
a. adler, I. Baum, s. Brunner, P. eickemeier, B.Kriemann, J. savolainen, s. The effect of increasing average temperatures on a company's operations.
schlomer, C. von stechow, T. Zwickel and J.C. Minx (eds.), 2014: Summary for Policymakers, In: Climate Change 2014, Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel The effect of extreme temperatures, high or low, on a company's operations.
on Climate Change, IPCC, page 13, 2014 36 uneP, The Emissions Gap Report 2012, united nations environment Programme Change in rainFall
The effect of increasing or decreasing rainfall on a company's operations.
droughTs or heavy
The effect of droughts or heavy rainfall on a company's operations.
impaCT on naTural
impaCT on naTural
Changes in the availability of natural resources, e.g., water, foods, etc., due to the effects of climate change. Changes to social order, culture and prosperity of communities as a result of physical climate or regulation change.
Changes to social order, population distribution and magnitude of disaster relief as a result of physical climate or regulation change.
eConomiC impaCT
Changes to the availability and affordability of products and on The Consumer
services as a result of physical climate or regulation change.
anneX II: MeTHODOLOGy anD DaTa sOuRCes anneX II: MeTHODOLOGy anD DaTa sOuRCes company data sources This method is used to normalize both absolute and In each sector, the normalized (2010 base) and portfolio internal intensity targets to 2010-base year.
harmonized (intensity) reduction targets for each company CDP data used in this report is based on company rate of return (irr) are compared to the percent target interpolated from the information provided in CDP 2013 and CDP 2014 responses. intensity target harmonization appropriate IPCC 2°C sector pathway for the target year. Internal rates of return are computed for investments Financial data used in the analysis are those reported by with absolute emissions target These two points define a positive gap (when the company reported to CDP that include an associated annual Yahoo! Finance or Financial Times in august 2014.
monetary return and that also pass a filter for validity. For companies where the reported target that passes target is too low to achieve IPCC 2° sector pathway) or negative gap (company target is set in excess of that each investment is assigned a lifetime as noted in the currency conversion the validity filter is intensity-based, an estimated absolute comment field or using the default Measure Lifetime table emissions target (i.e., "harmonized") is computed using the required to achieve the IPCC 2°C sector pathway) between all currency data have been set to their equivalent $usD below, according to the activity Type designated for the following formula, for company i : the IPCC pathway and the most comprehensive target using the average annual exchange rate for the year in reported by each company.
which they were reported—2012 for CDP2013 and 2013 for CDP2014—as published by Oanda: http://www.oanda.com For any group of companies, i, the WaG is computed using the following formula: gics and ipcc sector mapping Companies in the CDP database have been assigned to the sectors analyzed and presented in IPCC, Working Behavioral change Group III, assessment Report 5, Technical summary and energy efficiency: building fabric the associated industry sector reports, chapters 7-11. Company Growth for each company is given as the most energy efficiency: building services Company emissions are the most recent scope 1 + scope Companies classed as utilities in the CDP dataset counted recent analyst consensus expected annual revenue energy efficiency: processes 2 emissions reported in either the CDP 2013 or CDP 2014 under the IPCC electricity sector. Those companies growth published in august 2014 by Yahoo! Finance or Fugitive emissions reductions where the majority of their carbon footprint relates to Financial Times. If not available, this value is set equal to Low carbon energy installation buildings were included in the Buildings sector group. the Regional Growth for that company.
The Transport sector group contains those companies Low carbon energy purchase providing transportation services, for example, rail and Regional Growth is derived from International Monetary Process emissions reductions logistics companies. The Industry sector group includes all Fund 2015 growth projections for advanced economies industrial companies and also those in oil and gas. none or the emerging Market and Developing economies, 2.3% carbon investment index of the reporting companies had ownership over emissions and 5.3% respectively.37 each company is assigned either Transportation: fleet in land use and forestry, so that sector has not been advanced or emerging38 growth rate according to the This index is created by summing all investments by a Transportation: use location of their headquarters as reported by CDP.
company reported to CDP as being made in a given year that also pass a filter for validity, and dividing this value by company emissions target weighted average gap (wag) to ipcc company overall operating costs in that year as reported by either Yahoo! Finance or Financial Times in august 2014.
filtering for validity 2°c sector pathways (430-480 ppm) investment carbon effectiveness a combination of mathematical filtering, category filtering To create an annual target pathway for each IPCC sector, (ice), tonnes co e saved (lifetime) per and expert judgment is used to select a single best target we read the projected median point off the chart of $usd of initial investment provided by each company, prioritizing those that apply absolute annual direct emissions in Gt CO eq/yr for all investments reported to CDP that include an associated to the largest amount of scope 1 and scope 2 emissions. each sector from the chart in IPCC, WGIII, aR5, Technical annual carbon emissions savings that also pass filters for see World Business Council for Sustainable Development for summary, Final Draft that describe the 2°C pathways for validity are pooled, set k, for a collection of companies and definitions of scope 1 and scope 2 emissions.
each sector with Carbon Capture and storage (Technical the ICe is calculated using the following formula: summary, page 43). Linear interpolation is used to define target 2010 base year normalization annual targets for each year between the years presented. To normalize all companies to a reduction target These are then converted to percent reduction for each in relation to base year 2010, linear interpolation/ year based on the sector total emissions estimated by extrapolation is performed according to the following formula for company i : 37  International Monetary Fund, WORLD eCOnOMIC anD FInanCIaL suRVeys World economic Outlook (WeO) Recovery strengthens, Remains uneven 38 Table 1.1, Overview of the World economic Outlook Projections, International Monetary Fund, WORLD eCOnOMIC anD FInanCIaL suRVeys World economic Outlook (WeO) Recovery strengthens, Remains uneven april 2014 The contents of this report may be used by anyone providing acknowledgement is given to CDP and We CdP: sara Law and Maxfield Weiss
Mean BusIness. This does not represent a license to Counter Culture: emily Farnworth, sophy Bristow
repackage or resell any of the data reported to CDP and Rebecca Harding and presented in this report. If you intend to repackage kite global advisors: Larry yu and sophie Lambin
or resell any of the contents of this report, you need to obtain express permission from CDP before doing PoInT380: Jason Denner, Ty Colman and Mark Rehnborg
so. CDP has prepared the data and analysis in this report based on responses to the CDP Worldwide 2013 and 2014 climate change information requests. no representation or warranty (express or implied) is Bsr: Ryan schuchard
given by CDP or the partners of We Mean BusIness or those third parties contracted to deliver this report B-Team: Peter Boyd
as to the accuracy or completeness of the information Ceres: anne Kelly
and opinions contained in this report. you should not CdP: Tom Carnac
act upon the information contained in this publication without obtaining specific professional advice. To the The Climate group: Damian Ryan
extent permitted by law, CDP, the partners of We Mean The Prince of Wales's Corporate leaders group:
BusIness and contracted third parties do not accept or eliot Whittington assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining WBCsd: Lara Birkes
to act, in reliance on the information contained in this We Mean Business secretariat: Jim Walker
report or for any decision based on it.
In the above disclaimer, "CDP" refers to Carbon Disclosure Project north america, Inc, a not–for-profit organization with 501(c)3 charitable status in the us and We Mean BusIness refers to a coalition of charities, joined by the common aim of avoidance of dangerous climate change. The partners of We Mean BusIness coalition are BsR, The B Team, CDP, Ceres, The Climate Group, The Prince This report was prepared on behalf of organizations of Wales's Corporate Leaders Group and WBCsD. The participating in We Mean BusIness ("We Mean coalition has no legal status separate from its partners.
BusIness partners"). It has been commissioned in support of the We Mean BusIness partners' shared 2014 CDP. all rights reserved.
mission and is based on responses to the CDP Worldwide 2013 and 2014 climate change information requests.
The We Mean BusIness partners work closely with thousands of businesses and other stakeholders. This report has benefited from the input of the organizations comprising We Mean BusIness, but does not represent the views or positions of the businesses with which these organizations work.
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Overview of cleaning validation white paper

Direct Swabbing and Surface Recovery with Ion Trap Mobility Spectrometry By Derek Brand, Mei Guo, Dr. Ralf Wottrich and Tim Wortley Abstract Ion Trap Mobility Spectrometry has been The FDA's "Guide to Inspections Validation of discussed as a fast and specific technique for

Tyv_int_ddg-taking-abc.indd

QUESTIONS TO ASK YOUR DOCTORTo get the most out of your care, it's important to take an active role in your treatment. This includes speaking openly with your doctor and sharing any concerns you have. Review these questions with your doctor, and fi nd out if you can do even more to manage your PAH. Am I doing OK with my PAH?Even if you feel like you're doing fi ne, ask your doctor if there is more you could be doing to manage your PAH.