According to a recently released report by the World Wildlife Fund, 58 of the United States’ Fortune 100 companies set goals in 2012 to either reduce greenhouse gas emissions or use more renewable energy in their operations. However, oil and gas companies are lagging far behind in this movement. Eight of 11 domestic energy companies on the Fortune 100 have not set internal energy goals.
This is in direct contrast to 68 of the planet’s 100 largest companies who recognize the impact of global warming and are making investments in greenhouse gas reductions and renewable energy goals. Sadly, energy companies represent the lowest participation rate of any industry worldwide. The few exceptions are Hess and Chevron who have both set renewable energy and greenhouse gas targets, and ExxonMobil who set a greenhouse gas target.
Why have three quarters of the nation's industrial companies voluntarily set some sort of environmental target? There are a variety of potential reasons including: policy pressures, public relations or perhaps even the forward thinking that sees renewable energy’s potential to someday be less expensive than, or at least competitive with, oil and gas.
And why haven’t most oil and gas companies voluntarily set environmental targets? It may be because the very products they put on the market directly contribute to climate change. There is also a lack of urgency to act; little pressure comes from investors or policies. An example of a type of policy that was successful in the past is the Environmental Protection Agency or EPA's Toxic Release Inventory, which worked by making large companies publically accountable for which potentially toxic chemicals they use and where they are released. Then the information is posted on the EPA’s website for anyone to see.
The planet would really benefit from a similar policy focusing on oil and gas company emissions, or better yet, a broader climate change policy such as a national carbon tax or cap-and-trade program. There are other options that could pave the way towards a cleaner energy future. The federal government could require that a certain percentage of electricity come from renewable sources and offer further tax incentives for wind and solar production. Many companies are setting their own internal goals, but for others such as the majority of the oil and gas industry, they’re not going to do anything about increasing efficiency and reducing their carbon footprints until someone makes them.
A survey released this week showed increasing oversight by top executives in their climate change strategies. Ninety-two percent of respondents indicated their company's board or high-level executive had oversight over climate strategies, which is an increase of six percentage points from the 2011 survey.
The Carbon Disclosure Project (CDP) received responses from 338 of the S&P 500 firms indicating progress in carbon emissions reduction goals as well as disclosing these results. CDP offers a system for cities and companies to measure and share their environmental action.
Companies such as Microsoft Corp, United Parcel Service, Hess Corp, Pepco Holdings, and Sempra Energy Utilities are not waiting to address the risks from climate change to their overall business goals. Man-made or not, these companies won’t wait around to figure out who caused climate change. They’re taking steps now to lessen their financial risk.
Eighty-one percent of survey respondents identified physical risk from climate change, with 37 percent considering the risks "a real and present danger" – an increase of 10 percent from two years ago. Eighty-three percent of companies reported that climate change had been factored into corporate risk management strategies, which was only at 75 percent in 2011.
These results directly contrast with a distinct hesitation in the regulation of greenhouse gases by U.S. lawmakers. Congress’ opinions on climate change run the gamut from ambivalence to skepticism to even outright disbelief. Fortunately businesses that are beholden to their shareholders see the value in planning for climate change since it will certainly impact their bottom lines.
Just when we were about to succumb to the gloomy picture that is global climate change, a ray of hope breaks through the clouds. A technical report released this month by the U.S. Energy Information Agency calculated that energy related U.S. carbon dioxide emissions, which account for about 98 percent of total CO2 emissions, for the first four months of 2012 decreased to around 1992 levels.
The dramatic decrease is attributed to a switch from dirtier burning coal to cleaner natural gas. Almost everyone in the energy and environmental industries believes the shift could have major long-term implications for U.S. energy policy.
Scientists didn’t predict the amount of carbon dioxide being released into the atmosphere in the U.S. falling to its lowest level in 20 years in part because the decrease is not attributed to legislation limiting greenhouse gases such as carbon dioxide. The switch to natural gas was driven by the market.
The state of the economy, increasing efforts for energy efficiency and a growing utilization of renewable energy are certainly aspects that contribute to lowering U.S. carbon emissions. However, at the moment, the lion’s share is due to the current low price of natural gas. There has been an upsurge in shale gas drilling in the northeast, Texas, Arkansas and Louisiana, which has made natural gas more affordable than coal per unit of energy generated. Gas production is on the increase because of the modernization of the process of hydraulic fracturing, also called fracking, where highly pressurized water, sand and chemicals are inserted to fracture shale rock which releases natural gas.
While natural gas is a cleaner-burning energy source than coal, it is not emission-free. There is still some carbon dioxide emitted and drilling can have environmental impacts such as contamination of ground water, air quality risks, migration of gases and hydraulic fracturing chemicals to the surface, and surface contamination from spills and flowback.
There are also concerns that the rise in use of natural gas could stall renewable energy efforts. The ultimate goal should still be a mix of increasing energy efficiency and clean energy with the balance kept to a minimum of natural gas.
So the upshot is that the U.S. energy picture is far from perfect, but the news concerning a drastic decline in U.S. carbon dioxide levels is welcome and positive because it reminds us that there is still time to turn around the fate of the planet’s climate.
Your carbon footprint is the total amount of greenhouse gases produced to directly and indirectly support your activities. It is usually expressed in equivalent metric tonnes of carbon dioxide (CO2).
The average American is responsible for a whopping 50,000 pounds of greenhouse gas emissions annually. Some examples of your carbon footprint are:
- When your car’s engine burns fuel it creates CO2, the amount generated depends on its fuel consumption and the driving distance.
- Heating your house with oil, gas, or coal also generates CO2.
- Even if you heat (or cool) your house with electricity, CO2 is emitted during the generation of electrical power, most of which comes from coal in the US.
- When you buy food and goods, the production of the food and goods creates CO2; again, the amount depends on where the foods and goods came from and how they were created.
- Traveling on a plane generates CO2 in the same ways a car does.
- Weddings even create CO2 emissions! See this past post for more information about how to reduce your wedding’s environmental impact.
- Also consider all the indirect emissions you are in part responsible for: the roads we drive on, the schools our kids attend, the mall and grocery story, our shared military and city hall. It all adds up.
The bottom line is your carbon footprint is the sum of all carbon dioxide emissions that were generated by your activities in a given time period, typically one year.
The carbon footprint is a powerful tool in understanding your personal impact on global warming. Most people are surprised by the amount of CO2 their activities create. If you personally want to reduce your contribution to global warming, the calculation and monitoring of your carbon footprint is critical.
Carbonfund.org offers helpful calculators to estimate your carbon footprint. Individuals can follow this link for more information. http://www.carbonfund.org/individuals There is also a calculator for businesses here.
We can do a lot as individuals to combat global warming. But it is undeniable that governments can do more since they harness the power of the collective. The Obama administration’s strategy is to control global warming emissions through regulation. This week a huge victory was given to both the administration and the Environmental Protection Agency (EPA) by the federal appeals court in the District of Columbia. The decision was unanimous in upholding the agency’s landmark rulings to control greenhouse gases.
The issue seems like a “no brainer” that the EPA should regulate greenhouse gases. However, dozens of lawsuits from industry groups and 14 states challenged four rules that aim to limit greenhouse gases. The biggest rule is the EPA’s 2009 “endangerment finding” and the foundation on which the other three rules rest. The EPA contended, and was vindicated in this ruling, that carbon dioxide and other greenhouse gas emissions constitute a danger to public health and therefore could be regulated under the Clean Air Act. The three-judge panel acknowledged and gave credence to climate change as a real and legitimate threat to public health and safety. So now climate change deniers have less of a leg to stand on; the EPA based its case on sound science and careful research which stood up to a rigorous judicial review and emerged victorious.
The ruling cleared the way for the EPA to proceed with clean car standards and restrictive permits on power plants and other major industrial polluters. Perhaps now power plants will put increased effort into developing cost-effective and reliable methods to capture carbon emissions, or at least offset them. If not, the future will certainly be in renewable energy sources now that there are stricter limitations on greenhouse gas emissions.