Building a Sustainable Economy

Transcription

1 Building a Sustainable Economy March , Facebook and Ben & Jerry's: Corporate Strategies to Reduce Carbon Pollution Bill Weihl, Director of Sustainability, Facebook Christopher Miller, Social Activism Manager, Ben & Jerry s Sarah Severn, Coordinator for Washington State Businesses for Climate Action 1

2 ASBC S CARBON TAX PRINCIPLES Comprehensive, with no exceptions Setting a meaningful price Tax the highest CO2 emitters at the source Protecting US competitiveness Using the revenue to benefit the economy

3 UPCOMING EVENTS Apr. 11 event in Arizona Apr. 14 webinar - state carbon tax initiatives Apr. 19 webinar - federal legislation

4 SARAH SEVERN Following over a decade in the advertising industry Sarah joined the Nike brand marketing team in Europe to establish their consumer insights department. A passionate advocate for environmental issues enabled her to change track in 1995 and relocate to Nike World Headquarters in Oregon as Global Director of the Environmental Action Team. From 1995 to 2000 she catalyzed the introduction of sustainability into the business, from operations and supply chain through to product design and manufacturing. Following that she had a number of senior sustainability roles focused on leading environmental stakeholder engagement activity, and tracking emerging issues and futures work. Sarah led the development of Nike s climate change advocacy strategy and initiated the BICEP coalition (Business for Innovative Climate and Energy Policy), and the ZDHC (Zero Discharge of Hazardous Chemicals) business coalition. Sarah is currently advising Washington Business for Climate Action and the Alliance for Clean Jobs and Energy. Current Board and Advisory Board roles Advisory Board member, U.S Forum for the Future, 2014 to date Board Member, American Council for Sustainable Business

5 Reducing GHG s through Clean and Renewable Energy (CaRE) Bill Weihl Sustainability Director, Facebook March 31, 2016

6 Facebook infrastructure Data centers MW 90% load factor Some of the most efficient in the world Open Compute Project 4 owned data centers operating in North Carolina, Oregon, Iowa and Sweden; 2 under construction in Texas and Ireland Some leased facilities as well Offices HQ in Menlo Park CA Smaller leased facilities elsewhere

7 Clean energy goals Access to cost based clean energy is a key variable in site selection Cost and reliability are critical But: clean energy is equally important Data centers in Sweden, Iowa, Texas, and Ireland are 100% CaRE Looking for CaRE solutions for other sites Long-term: want 100% CaRE

8 Why 100% CaRE? Operational business benefits (sometimes) Reduce energy costs Reduce cost volatility and exposure to price increases Corporate responsibility Climate change is a critical issue Internal and external stakeholders Long-term: Good for the planet, for the global economy, and hence our business

9 Near- and medium-term goals are key We use an internal renewable portfolio standard (RPS) Long term goal is clear: 100% CaRE But: how to measure and drive progress? First goal: set target (in 2012) of 25% CaRE in 2015 Surpassed it public numbers to be released later this spring Next goal: doubled that target to 50% CaRE in 2018 Will continue to stairstep higher over time

10 Pragmatic approach to CaRE On-site in some cases (esp. HQ) Scale of data centers pushes for off-site Iowa: 100% new wind, built by the utility Economics work well for us, for the utility, and for other ratepayers Texas: Open market, choice of energy providers We ll consider working with the utility, or doing direct PPAs, CFDs, etc where necessary

11 Challenges De-regulated locales: buy what we want relatively straightforward Regulated service territories More complicated One-on-one negotiations tend to be slow (often too slow for site selection) We need to start changing the landscape well in advance of any particular deal

12 Challenges De-regulated locales: buy what we want relatively straightforward Regulated service territories Internal buy-in and budget Key was to get agreement on long-term goal and then on stairstep approach More complicated One-on-one negotiations tend to be slow (often too slow for site selection) We need to start changing the landscape well in advance of any particular deal Energy procurement is managed centrally makes things simpler We felt this was more effective than setting an internal carbon fee, which seemed unlikely to drive the change we wanted fast enough

13 The power of collaboration REBA Renewable Energy Buyers Alliance 100+ companies, 4 NGOs (BSR, WRI, WWF, RMI) Focused on 3 key issues Awareness on the part of companies, utilities, regulators, etc Capacity internal or external so companies can do transactions Policy expanding options so deals can be done in more places

14 The power of collaboration REBA Renewable Energy Buyers Alliance Component initiatives: 100+ companies, 4 NGOs Awareness RE100 (and the other 3) Focused on 3 key issues Awareness on the part of companies, utilities, regulators, etc Capacity internal or external so companies can do transactions Policy expanding options so deals can be done in more places Capacity RMI Business Renewables Center (BRC) Policy Corporate Renewable Energy Buyers Principles (WWF and WRI) Data center sector: BSR Future of Internet Power (FoIP)

15 Renewable Energy Buyers Principles Distill key elements we all need to meet our RE goals Choice Cost-competitive Longer and variable-term contracts Additionality (new projects) Streamlined financing Wider range of options with utilities

16 Renewable Energy Buyers Principles Distill key elements we all need to meet our RE goals Choice Cost-competitive Longer and variable-term contracts Additionality (new projects) Streamlined financing Cross-sector, large and small companies: Tech: Facebook, Google, Microsoft, Salesforce, Retail: Walmart, Staples, Hospitality: Hilton, Starwood, Food & Bev: Kellogg s, Mars, Starbucks, Manufacturing: GM, Intel, P&G, Volvo, Over 50 companies today Wider range of options with utilities

17 Buyers Principles Distill key elements we all need to meet our RE goals Choice Cost-competitive Longer and variable-term contracts Additionality (new projects) Streamlined financing Wider range of options with utilities Our collective voice is very powerful and people are listening NARUC ALEC Governors Economic development agencies Legislators And utilities! The hope and goal is to create more and better options in many locales over the next couple of years

18

19 What can you do? Sign the buyers principles add your voice Join the BRC to build internal capacity and access external capacity learn how to do deals (Data center companies) Join the BSR FoIP to learn from and work with peers If you re ready: set a 100% CaRE target

20 Ben & Jerry s Internal Carbon Pricing Program

21 Company wide focus on our footprint Drive efficiencies across our value chain Create a fund to invest in innovation within our value chain Proof point that pricing carbon is good for business Why Do It?

22 Our Hoofprint EMISSIONS BY LIFE CYCLE STAGE

23 The Boundaries

24 Climate and Energy Goals Reduce greenhouse gas emissions, per unit of production, by 40%, compared to a 2014 baseline, by 2025 Transition to 100% clean and renewable energy by 2025, with a mix of both onsite and offsite sources. To peak absolute emissions in 2026, despite aggressive growth projections. Increase investments in building climate-resiliency in our supply chain $10 million by Develop long-term business strategies to achieve our science based midcentury goal in line keeping global average temperatures rise below 2ºC.

25 $10 / MT across scope 1-3 = $30ish / MT on scope 1 and 2 >$2mm Invest in direct supply chain Our Carbon Tax

26 Projects On-farm Technology Management systems Solar and efficiency at Manufacturing Sites Logistics Freezer Technology

27

28 Thank You

29 WORKING WITH ASBC Provide business leaders to testify at hearings and briefings Develop Policy Recommendations Advocate for Policies at Federal and State Level Change how the Media Reports on What Business Thinks (Write/Place Op-Eds) Craft Business Cases to Support Legislation Fly-In s Polling Contact: Richard Eidlin reidlin@asbcouncil.org 1401 New York Avenue, Suite 1225 Washington, D.C