Business Advantage On A Warming Planet Jonathan Lash World Resources Institute

Climate Competitiveness with the Auto Industry Source: World Resources Institute and Sustainable Asset Management

Comparison of Fuel Economy and GHG Emissions Standards around the World

Atmospheric Carbon Dioxide (CO 2 ) Concentrations Source : C.D. Keeling and T.P. Whorf, Atmospheric CO2 Concentrations (ppmv) derived from in situ air samples collected at Mauna Loa Observatory, Hawaii, Scripps Institute of Oceanography, August 1998. A. Neftel et al, Historical CO2 Record from the Siple Station Ice Core, Physics Institute, University of Bern, Switzerland, September 1994. See http://cdiac.esd.ornl.gov/trends/co2/contents.htm

Millennial N. Hemisphere (AD1000-1999) Source : IPCC TAR

Dramatic Changes: An Ice-free Arctic? 1979-2003: Progressive Loss of Arctic Ice

1960 – World’s 6 th largest lake 1963 – 2001 shrunk 95%, wetlands spoilt Source: UNEP – ONE PLANET MANY PEOPLE: Atlas of our Changing Environment Lake Chad Water withdrawals from rivers/lakes doubled since 1960

The Frequency of Weather Related Disasters Data from Swiss Re 2005

Global Ocean Currents

A More Poisonous Poison Ivy

U.S.: Emerging State-Level CO2 Regulation Source: CO2e.com

www.azfoo.net

Projections of CO2 and Temperature to 2100

Temperature Projections and Risk

2055 2005 14 7 Billion of Tons of Carbon Emitted per Year 1955 0 Currently projected path Flat path Historical emissions 1.9  2105 14 GtC/y 7 GtC/y Seven “wedges” Wedges O Source: Robert Socolw, www.princeton.edu/~cmi

Energy Efficiency Coal-based Synfuels with CCS Wind power Reforestation Mass transit Stabilization Triangle 2004 2054 7 GtC/y 14 GtC/y Fill the Stabilization Triangle with Seven Wedges Carbon Capture & Storage Adapted from: Robert Socolw, www.princeton.edu/~cmi Biofuels

Climate Risk Sector Level Company Level Products / Technology Litigation Reputation / Brand Political / Regulatory Supply Chain Physical Risk How Climate Risk Influences Corporate Value

August 28, 2005 Photo Credit: NASA/Jeff Schmaltz, MODIS Land Rapid Response Team Hurricane Katrina

Climate Risk Sector Level Company Level Products / Technology Litigation Reputation / Brand Political / Regulatory Supply Chain Physical Risk How Climate Risk Influences Corporate Value

Climate Risk Sector Level Company Level Products / Technology Litigation Reputation / Brand Political / Regulatory Supply Chain Physical Risk How Climate Risk Influences Corporate Value

Climate Risk Sector Level Company Level Products / Technology Litigation Reputation / Brand Political / Regulatory Supply Chain Physical Risk How Climate Risk Influences Corporate Value

New Patterns of Pest Damage The New York Times, June 25, 2002

Climate Risk Sector Level Company Level Products / Technology Litigation Reputation / Brand Political / Regulatory Supply Chain Physical Risk How Climate Risk Influences Corporate Value

Climate Risk Sector Level Company Level Products / Technology Litigation Reputation / Brand Political / Regulatory Supply Chain Physical Risk How Climate Risk Influences Corporate Value

Potential Climate Change Impacts on Cash Flows and Cost of Capital

M e MAC : 4 Steps to Business Advantage Measure - Quantify the Company’s Carbon Footprint Manage - Mitigating Climate Value at Risk Adapt - Use Knowledge Gained to Adapt to Climate Risk Compete - Develop a “Climate Competitive Advantage”

Measure - Quantify the Company’s Carbon Footprint

Manage - Mitigating Climate Value at Risk

Adapt - Use Knowledge Gained to Adapt to Climate Risk

Compete - Develop a “Climate Competitive Advantage”

Managing Risk: Measure/Manage

GPMDG Alcoa Inc. Cargill Dow LLC Delphi Corporation Dow Chemical Company DuPont FedEx Kinko's General Motors IBM Interface Johnson & Johnson NatureWorks LLC Pitney Bowes Staples Starbucks

Alcoa Inc.

Cargill Dow LLC

Delphi Corporation

Dow Chemical Company

DuPont

FedEx Kinko's

General Motors

IBM

Interface

Johnson & Johnson

NatureWorks LLC

Pitney Bowes

Staples

Starbucks

GE: Ecomagination

P roducing plastics, for packaging and fibers, from 100% annually renewable resources Photo courtesy of Sterling Planet Insert photo of PLA product Offset 100% of the company’s net greenhouse gas emissions from polymer production and the world’s largest lactic acid plant NatureWorks ® PLA is now the world’s first greenhouse-gas neutral polymer Business case 59 million kWh/year of Green-e ® certified RECs Generated by 22 MW of wind turbines in Great Plains 2005 new green power purchase

Offset 100% of the company’s net greenhouse gas emissions from polymer production and the world’s largest lactic acid plant

NatureWorks ® PLA is now the world’s first greenhouse-gas neutral polymer

59 million kWh/year of Green-e ® certified RECs

Generated by 22 MW of wind turbines in Great Plains

Interface – GHG’s Down, Returns Up

New York City circa 1950

New York City December 2001