Tuesday, August 3, 2010

Notes from NAEM GHG Conference Chicago

Congrats to the NAEM team, Carol Singer Neuvelt, Virginia Hoekenga, and Mike Mahanna, for a successful conference in Chicago Aug3-4

Results of 125 NAEM members on GHG reporting

. EHS owns data and process at most companies
. tracking: - most companies still using spreadsheets
. reduction efforts focused on energy efficiency
. public reporting to CSR/Web, CDP, EPA mandatory reporting, TCR, CTS, WWF Climate Savers, DJSI
. supply chain request increasing
. concerns with duplicative reporting CARB, EPA MRR, TitleV
how to normalize data
oconcerns about supply chain trends, ability to accurately measure or even to reduce, manage multiple requests

GHG Regulation policy update

. globally: no binding agreement
. US federal: no agreement
. CA: AB 32. CA may push for
. EPA direct regulation
endangerment finding
light duty vehicle is heart of this
mandatory reporting rule (MRR) and WCI
. June 3 Tailoring Rule (under Clean Air Act)
stationary source
numerous legal challenges
initial threshold was 25K, now 50K

Regional cap and trade programs
RGGI: fossil fuel.
WCI: to begin 2012. applies to major industrial and commercial sources
CA, NM only US states ready to roll out

AB 32
planning its own cap and trade jan 1 2012
subject to election November: will seen as referen Prop 23 would suspect AB 32 three quarters.

NACI: North American Climate Initiative (new group. expect to hear more about this)

Lessons from Scope 3 Working Draft
- Speakers: David Rich, WRI;
Scope 3 basics
. upstream (emissions from purchased goods: , business travel, etc.)
. downstream (emissions from sold product, use of sold products)
. other: employee commuting
. Sep 2010: second draft for public comment
. Dec 2010: final standard
. Road testing: 70 companies have test

SC Johnson, Frank Ericson, Director Environmental, Safety
. scope 1 and 2 since 2002.
. very active in EPA CL (8% absolute reduction, 5 year goals)
. 40% of electricity from renewable/green (co gen, wind, bio fuels)
. motivated to help WRI scope 3 become global standard
. 5 of 16 categories of Scope 3 used; other categories did not apply
. 7 upstream, employee, rest downstream
. distribution (Walmart, Tesco) VERY interested in this data from JCJohnson (consumer products manufacturer)
. initial conclusions
good exercise to understand hotspots; help to prioritize investments
help build awareness beyond our internal operations (scope 1 and 2)
requires more internal partnership from multiple internal groups (raw materials, product design, sales, outside vendors)
. plan to set scope 3 goals for next 5 years
feedback to WRI on Scope 3 standards
like to adjust baseline when better data becomes available
. 80% of tier 1 suppliers provided data for base year 2009
. Comparability of scope 3 across companies is not design or goal of WRI scope 3 standard

Ford: Christina Bosch, Supply Chain Sustainability
. goals: identify hotspots. use phase of cars is ~90% of emissions
. huge supply chain: 1600 direct suppliers; 4600 sites; 130,000 parts
. too many parts to do traditional LCA
. limited Scope 3 WRI
. focused on feasibility
. sent request to 25 suppliers (use excel as data collection tool)
. response rate
80% of 25 responded; 80% of those had emission
50% had reported emissions
60% had done some type of LCA
1 supplier had requested info from it’s suppliers
. lessons
trade offs because data will never be completely accurate and supplier compliance will vary
. cross functional team involvement MUCH higher for Scope 3 than scope 1 and 2
. Recommendations to WRI on scope 3: more flexibility on data accuracy with suppliers

Different tools for GHG management

PPG Industries, Liz McMeekin, Environmental Manager, PPG
. $12B, 150 mfg facilities, gather scope 1 and 2, 5 year goals to reduce GHG emissions; formed “Energy security and climate change committee” which reported to Board member
. Gather energy data monthly, report internally quarterly
. Initially used Plantware later purchased by ESS (now part of I H S)
. tool was designed for plant level, did not have hierarchy for organizational level reporting and tracking
. extensively customized from 2000-4
. lessons
Board level/senior management commitment essential
document roles and responsibilities
local champions are essential for large facilities
regular and broad internal reporting of progress is necessary to sustain the process.
. lessons – technical/tactical
avoid at ALL costs specialization of vendor database
routine reminders for data submission a must
tie in to existing business unit data evaluations where possible to ensure consistent KPIs
plan for flexibility for unit conversions (e.g natural gas usage reported in ft3, kwh, btu)

Fuji Film, Brian Stenson, Manager, EHS,
. overview: 50,000 ee ww, 5,000 in US; external reporting to TCR
. needs: data, reporting, minimize duplication of effort, data consistency, reconcile year to year
. key requirements: SaaS, customizable (but supported), powerful, secure
. selected Enviance
. using system for internal incident reporting, corporate metrics, EHS Compliance calendar (really task manager, cc to manager, late, done, etc.), GHG reporting
. reporting carbon, waster, waste
. Lessons
critical to show how tool makes job easier for internal user
make sure everything is visible to all internal users

Abbott Labs, Sacha Boon, Principal Environmental Specialist
. overview: 85,000ee, 85 mfg facilities, scope 1 and 2 reported for years
. lessons learned
single person responsible for data entry at facility
attachment upload critical for data entry and auditing
go for data entry person to see previously entered data (threshold values, deviation reports)
Try to use automation when possible. for instance, engineer tech at facility were reading meters on hand written log. logged were scanned/fax, then engineering entered into spreadsheet,

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