Intel Makes a Major Investment in Renewable Energy

About 5 percent of global corporations consider climate change a major priority. One of the notable companies moving in that direction is Intel (Nasdaq:INTC), which is now the largest corporate purchaser of renewable energy in the U.S.

Intel has agreed to buy renewable energy certificates (REC) for more than 1.3 billion kilowatt hours per year, which is equivalent to 46 percent of its total U.S. energy use.

Though company officials did not list the length of its agreement, it is likely a significant commitment. Intel’s investment is expected to drive construction of new renewable energy generation facilities, spur similar investments by other companies and eventually drive sufficient demand to lower costs. It also ensures that Intel will be using energy from renewable sources such as wind, the sun and biomass.

Intel has been buying wind power in Oregon for its plant there for years, and this year will purchase 25 million kilowatt hours of wind power.

Intel has always been a leader in environmental monitoring and management at its semiconductor manufacturing facilities and has received numerous awards from environmental groups.

Second among firms buying renewable energy credits is a company that might surprise you: PepsiCo is buying 1.1 billion kilowatt hours of REC per year.

Add comment January 31st, 2008

Campaign Calls for Commercial Buildings to Increase Energy Efficiency by 50 Percent

What is the 2030 Challenge?

It is a standard now being promoted by the U.S. Conference of Mayors mandating 50 percent energy consumption reductions for commercial buildings. It is also a response by the building industry to the specter of climate change, and an example of industry taking the lead to solve this enormous problem.

In America, we emit an estimated 20 billion tons of CO2 per year. Some experts believe that if emissions don’t level out and begin a downward trend within seven years, CO2 levels in the atmosphere could reach 385ppm, a significant tipping point. This controversial position suggests that major climate change could result if current trends are not abated.

There are powerful voices on both sides of this issue. However, despite the controversy, a growing number of industry leaders worldwide are now taking steps — like acquiring information management tools — to reduce their emissions and increase energy efficiency.

A 50 percent reduction in building energy consumption, vehicle miles traveled, water consumption and infrastructure power consumption, which has been referred to as the 2030 Challenge is another major step in that direction. Consumers are already focused on it, as are public policy experts. Now the building industry, too, steps up.

Add comment January 21st, 2008

More Companies Responding to Demands for Transparency of Risk Reporting

Unless you are involved in corporate governance, you probably aren’t aware that there is an organization called The Corporate Library, that provides reports that assess corporate governance reporting on behalf of investors and insurance companies. The Corporate Library is a repository of reports and information such as corporate policies, SEC filings, and executive compensation. This information, available for purchase, provides corporate reporting and evaluates whether a company’s documentation offers sufficient detail to prevent shareholder lawsuits and satisfy investors’ and insurers’ requirements for transparency. In addition to selling information to the financial community, the Library also provides reports to the enterprises themselves to help them benchmark their performance against other companies.

In a recent report, The Corporate Library found that some well-known companies are not reporting enough detail about their CO2 emissions and the costs involved in cleaning up those operations. Toy company Hasbro (HAS); fiber-optic maker Corning (GLW, Fortune 500); railroad company Burlington Northern Santa Fe (BNI, Fortune 500), Royal Caribbean (RCL) cruise line; and lawn and garden company Scotts (SMG) all scored below average in the report. Meanwhile most utilities and other companies that are known for emitting significant amounts of carbon dioxide have long detailed their emissions and potential costs in financial filings. Those organizations scored much better.

Companies that expect to maintain industry leadership in a market environment that demands more transparency need to invest in monitoring and reporting platforms that will help them satisfy these new investor requirements for reporting risk management data. The Corporate Library sells a product called the “Board Analyst,” that analyzes whether a company’s governing board is proactive and effective in demanding transparency from executives. If I were a corporate board member in these times, I’d be asking my company’s executives to invest in integrated monitoring platforms that can efficiently collect and report this data to improve their transparency rating.

Add comment January 14th, 2008

Duke Energy, Alcoa Among Companies Recognized for Sustainability Reporting

Duke Energy and Alcoa, both industry leaders, as well as ESS clients, have been chosen as finalists for the Ceres 2007 North American Sustainability Rewards. According to a news release, “the awards are not intended to endorse or reward corporate sustainability performance, but rather to acknowledge exemplary disclosure that places performance in the broader context of sustainability challenges, risks and opportunities.”

Ceres is a leading network of investors, environmental groups and other public interest organizations that work with companies to address sustainability challenges such as global climate change. Ceres also directs the Investor Network on Climate Risk (INCR), comprised of over 60 institutional investors who collectively manage more than $4 trillion in assets.

Award nominees were evaluated based on criteria that address completeness, credibility and quality of communication. The panel of 13 judges includes North American leaders and experts representing a broad spectrum of backgrounds.

The Association of Chartered Certified Accountants (ACCA) has been giving these awards for fifteen years to promote transparency in reporting sustainable business practices. This year, 87 companies entered reports, and 21 finalists were chosen. Since 1999, ACCA has teamed up with Ceres to present the awards for sustainability. This year’s entrants included a wide variety of industries from mining to automotive manufacturing to apparel.

Duke Energy, Alcoa and the other award nominees are leading a powerful new trend in which companies are leveraging EHS information management systems to communicate their sustainability performance to external stakeholders. As a result, their efforts are being recognized by organizations like Ceres.

Add comment January 10th, 2008