GreenLane Luncheon Presentation Climate Change Series: Part 2 & 3 May 4, 2016 Hilton Hotel, Eugene, OR Business Actions to Mitigate Climate Change Roger McFadden President, Senior Scientist McFadden and Associates, LLC roger@mcfaddenassociates.com McFadden and Associates, LLC
Picking up where Dr. Philip Mote Left Off Last Month Source: Dr. Philip Mote Presentation in April 2016
United Nations Paris Climate Agreement 175 nations sign historic Paris climate deal on Earth Day 2016 – Including the two largest emitters China and U.S. McFadden and Associates, LLC
Over 375 Businesses Sign White House Pledge on Climate Change Action Global companies sign White House pledge on climate change action McFadden and Associates, LLC
What Business Leaders Are Saying About Need for Climate Change Action McFadden and Associates, LLC
Traditional Media, Social Media and The Awakening Consumer McFadden and Associates, LLC
There is only ONE Planet Earth McFadden and Associates, LLC
Current Status of the Environment Decline Snow Packs/ Glaciers Fisheries Wetlands Top Soil Forests CO 2 Concentration Earth Temperature Population Waste Pollution/Toxins Increase McFadden and Associates, LLC
Climate Change Threatens Human Health Environmental consequences of climate change , such as extreme heat waves, rising sea-levels, changes in precipitation resulting in flooding and droughts, intense hurricanes, and degraded air quality, affect directly and indirectly the physical, social, and psychological health of humans . http://www.niehs.nih.gov/research/pr ograms/geh/climatechange/health_im pacts/index.cfm McFadden and Associates, LLC
Risk and Uncertainty for Business and Environment • Possibility of harm to human health and ecosystems that arise from some human activity • Possibility of financial damage to a business that arises from environmental change or from social concern about the environment • Possibility of personal liability or criminal penalties for executives that arises from their business’ environmental activities. Source: Down to Earth, Forest Reinhardt Harvard Business School Press, Page 133 McFadden and Associates, LLC
Drivers Why Take Climate Change Action for Businesses • Government Policy • Incentives, regulations and R&D Funding • Consumer Demand • Demand for green products, services and companies • Technology Innovation • New products and new opportunities McFadden and Associates, LLC
Drivers for Businesses • Awakening Consumer – Communicates through social and traditional media. • Business customer commitments to reduce GHG Emissions • Public procurement initiatives that expect accountability • Executive orders from state, local and federal governments. • Foreign and domestic legislation. • Emerging science revealing human health impacts. • NGO campaigns focused on businesses. • Innovative alternatives McFadden and Associates, LLC
Risks Why Take Climate Change Action for Businesses • Climate Change Policy Risk • World wide governmental commitment • Market Risk • Price volatility in carbon and energy • Climate Change Impact • Adverse weather conditions • Reputational Risk • Public pressure – activist disruption • Credit Risk • Pressure on credit ratings • Financial Risk • Investor pressure McFadden and Associates, LLC
Business Why Take Climate Change Action Actions • Adaptations • Comply with regulations and improve efficiencies • New Investment Opportunities • Invest in strategic technologies and market opportunities • New Revenue Streams • Modify existing products and services, gain a competitive advantage and capture climate change revenue McFadden and Associates, LLC
Business Sector Risks Resulting from Physical Effects of Climate Change • Electric Utilities – Demand could exceed capacity • Integrated Oil and Gas – Hurricanes and tornadoes • Food and Beverage – Food supply interruptions • Building Design and Construction – Design standards • Building Operations – Supply and value chain interruption • Insurance – Risk models change • Agriculture – Water/soil impacts, livestock impacts • Motor Transport – Vulnerable transport systems • Retail – Supply and value chain interruptions McFadden and Associates, LLC
Company and Regulatory Emissions Policy • Create an open and transparent dialogue with your suppliers, customers and regulators. • Many countries, states, provinces and cities already use carbon pricing mechanisms. • More than 25% of the U.S. population live in a state with a price on carbon and some states are considering policy as a way to implement new power plant emissions standards. McFadden and Associates, LLC
Monitor, Report, and Verify GHG Emissions • Building a GHG inventory allows a company to : • better understand its direct and indirect emissions. • Help anticipate the company’s exposure to new carbon pricing regulation. • Early establishment of MRV systems and practices provides a company with more time to prepare internally for regulatory reporting requirements. McFadden and Associates, LLC
From Crisis to Opportunity • Solar Panels • Geothermal Power Stations • Fluorescent Lightbulbs • Green Roofs • Hybrid Cars • Hydrogen Fuel-Cell Mass Transit Vehicles • Wind Power McFadden and Associates, LLC
Engagement with Stakeholders • Create an open and transparent dialogue between business, government and community. • Early leadership role on climate change can build credibility. • Collaboration with other businesses, environmental groups, and key stakeholders can help build consensus on policy design and result in better outcomes. McFadden and Associates, LLC
Adaptation Adaptation refers to dealing with the impacts of climate change. Mitigation means dealing with the causes of climate change by reducing emissions. • Public health • Energy • Biodiversity • Agriculture • Coast Zones • Forests • Soil & Water Resources McFadden and Associates, LLC
Economy and Sustainability OLD THINKING NEW THINKING Businesses exist to make money The economy and sustainability are and doing good is the business of not enemies; on the contrary, not philanthropy and faith based only can they live together, but they organizations. actually need each other. McFadden and Associates, LLC
Proactive Prevention OLD THINKING NEW THINKING Whenever possible, prevent the use of chemicals that contribute to greenhouse effect. Wait until the problem happens and then take action When elimination is not possible then reduce emissions as much as possible. McFadden and Associates, LLC
Radical Transparency Builds Trust OLD THINKING NEW THINKING Radical transparency and Corporate Jargon disclosure builds credibility and trust. Basic Compliance Beyond Compliance can become a competitive advantage McFadden and Associates, LLC
Managing Greenhouse Gas Emissions OLD THINKING NEW THINKING Eliminate greenhouse gas Design controls to reduce emissions from product and/or emissions. process at design stage. If the greenhouse gas is not in the product then it cannot contribute to greenhouse gas emissions. McFadden and Associates, LLC
Create Shared Value OLD THINKING NEW THINKING Enrich shareholders Enrich lives Create shared value for customers, community and company. McFadden and Associates, LLC
Don’t Argue With Status Quo Create a New Model “You never change something by fighting with the existing reality. To change something, build a new model that makes the existing model obsolete .” Buckminster Fuller McFadden and Associates, LLC
Thank You Contact Information: Roger McFadden President, Senior Scientist McFadden and Associates, LLC roger@mcfaddenassociates.com Phone – 503-915-4640 McFadden and Associates, LLC
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