September 22, 2015
(Doors open at 8:45 a.m. for light breakfast. Program begins at 9:15.)
Bank of America Tower
One Bryant Park
New York, NY
Read the report and executive summary, watch video of the report launch and find additional resources on resilience.
How are companies are assessing and addressing climate vulnerabilities?
What is keeping them from doing more?
Which tools, data and partnerships can drive action to the next level?
Global Environmental Executive, Bank of America
Amy Luers, Ph.D.
Assistant Director, Climate Resilience and Information
Office of Science and Technology Policy
Executive Office of the President
Global Environmental Director, Diageo
Vice President of Public Policy
Corporate Sustainability Officer, PG&E
Weathering the Next Storm: A Closer Look at Business Resilience
Extreme weather and other climate-related impacts are becoming more frequent, and are imposing real costs on communities and companies. Companies have always navigated a changing business environment. But now they face a changing physical environment, as climate change affects their facilities and operations, supply and distribution chains, electricity and water, and employees and customers.
A new 2015 C2ES Report, Weathering the Next Storm: A Closer Look at Business Resilience, examines how companies are preparing for climate risks and what is keeping them from doing more. It also suggests strategies for companies and cities to collaborate to strengthen climate resilience.
The new report synthesizes public disclosures by S&P Global 100 companies, in-depth interviews and case studies, and workshops. It updates the groundbreaking 2013 report, Weathering the Storm, Building Business Resilience to Climate Change, which provided a baseline for how companies were assessing their climate vulnerabilities.
|Click above to see our Weathering the Next Storm infographic, with key takeaways|
- Most major companies recognize and report climate risks. Ninety-one percent of companies in the S&P Global 100 Index see extreme weather and climate change impacts as current or future risks to their business.
- Companies worry about climate impacts beyond their facilities. Almost all companies interviewed expressed concern about impacts to their supply chains and public infrastructure.
- There isn’t one right way to assess and manage climate risks. Many companies view climate change as a “threat multiplier” that exacerbates existing risks. This puts climate change into a familiar context, but could cause companies to overlook or underestimate the threats they face.
- Companies struggle to translate long-term, global climate data into short-term, local risks. Despite growing access to climate-related data and tools, companies say they need “actionable science” that helps them understand locally-specific risks or risk scenarios.
- Companies can start with a limited-scope vulnerability assessment – focusing, for example, on the most critical parts of the business – to raise internal awareness of climate risks.
- Companies should facilitate regular communication across departments involved in climate risk and resilience -- including sustainability, risk management, operations, and finance – and consider whether to change planning horizons to better incorporate climate risks.
- Companies, state and city governments, non-profits and local experts should explore partnerships to analyze data, evaluate climate risks, undertake cost-benefit studies, and implement resilience planning.
- Governments should look for ways to streamline climate risk reporting and provide more guidance on how to incorporate climate risks into financial disclosures.
- Governments should improve public infrastructure and provide opportunities for the private sector to contribute to resilience planning efforts and investments.
- Fact Sheet: Key Insights on Business State and City Collaboration for Climate Resilience
- Executive Summary of our 2015 report.
- Press release on the 2015 report.
- Blog: Are Businesses Prepared for Climate Impacts?
- Our 2013 report and infographic: Weathering the Storm, Building Business Resilience to Climate Change
- Video on our YouTube page from our 2013 presentations on Weathering the Storm: Building Business Resilience to Climate Change
- Business Resilience Workshop, March 24, 2015, Washington D.C.
- Climate Impacts and Resilience Workshop, July 26, 2014, Washington, D.C.
- The Executive Forum on Business and Climate, November 3-4, 2013.
- Business Resilience Webinar Series, September-December 2013.
- USA TODAY op-ed by National Grid US President Tom King and American Water CEO Jeff Sterba.
- Our Sept. 23, 2013, event at Climate Week NYC: agenda, photos, video interviews with speakers Preston Chiaro of Rio Tinto; Ken Daly of National Grid, New York; Alan Kreczko of The Hartford; and Lisa Shpritz of Bank of America.
- Our 2008 study, “Adapting to Climate Change: A Business Approach," which outlined an initial screening framework for assessing risks.
Video of our report launch
Building Resilience to Climate Change -- Why it's Crucial
Panel: Taking Business Resilience to the Next Level
November 12, 2015
Contact: Marty Niland, firstname.lastname@example.org, 703-516-0600
Fleet operators could save money with natural gas vehicles
WASHINGTON – Public and private fleet operators could save money by switching to natural gas vehicles using the business model that energy service companies (ESCOs) apply to energy efficiency projects, according to a guide released today by the Center for Climate and Energy Solutions (C2ES).
Although switching to natural gas vehicles (NGVs) can lower costs, many fleet managers have not converted their fleets. Strategic Planning to Enable ESCOs to Accelerate NGV Fleet Deployment: A Guide for Businesses and Policymakers helps investors and state and local policymakers make decisions about deploying natural gas vehicles in public and private fleets, which are among the most initially promising areas.
The findings are part of a two-year initiative, in partnership with the National Association of State Energy Officials (NASEO) and with funding from the U.S. Department of Energy’s Clean Cities Program, to develop innovative finance mechanisms aimed at accelerating the deployment of alternative fuel vehicles and fueling infrastructure.
The guide analyzes the cost-saving potential for switching tractor-trailer truck, school bus, and light-duty vehicle fleets. Among the key findings:
- Incorporating natural gas vehicles into fleets can significantly reduce petroleum use and harmful emissions, especially with tractor-trailer fleets.
- The major factors affecting the financial performance of natural gas vehicle fleets are the fleet’s vehicle technology and vehicle usage patterns.
- Natural gas vehicle projects for tractor-trailer fleets result in net cost savings under nearly every fleet size and travel scenario considered in the guide’s analysis.
- Using natural gas to fuel school bus fleets also results in net cost savings for fleets whose vehicles travel about 20,000 miles per year.
- An energy service provider can help with the transition to natural gas by familiarizing fleet managers with new technology, identifying a project’s greatest savings potential, reducing financial risk, and helping maximize financial payoff.
“Switching from diesel to natural gas is a net cost-saver for fleets in many cases. But even the most cost-conscious fleet manager can hesitate to switch to a new technology, especially in a time of low oil prices,” said Nick Nigro, a C2ES senior advisor and lead author of the report. “The fleet market can learn a lot from ESCOs and how they’ve deployed energy efficiency technologies by offering valuable services and training in exchange for a share of the cost savings.”
“Many of NASEO’s members, the 56 State and Territory Energy Offices, are eager for solutions and strategies supporting the use of domestic and clean transportation fuels,” added David Terry, Executive Director of NASEO. “The Strategic Planning Guide is an important addition to states’ toolboxes in their efforts to reduce reliance on imported oil, improve air quality, and stimulate economic growth.”
Read the report.
Learn more about the initiative.
The Center for Climate and Energy Solutions (C2ES) is an independent, nonprofit, nonpartisan organization promoting strong policy and action to address our climate and energy challenges. Learn more at www.c2es.org.
More than 300,000 electric vehicles (EVs) are already on the road in the United States, but to ramp up adoption of this technology, consumers will need more access to charging beyond their home or office.
C2ES has identified business models that, combined with near-term public support, could boost investment in publicly available EV charging and expand the environmental benefits of EVs.
The business models are detailed in a new C2ES publication, Strategic Planning to Implement Publicly Available EV Charging Stations: A Guide for Businesses and Policymakers. The guide draws on research from a two-year initiative in partnership with the National Association of State Energy Officials (NASEO) to explore innovative financing mechanisms aimed at accelerating the deployment of alternative fuel vehicles and fueling infrastructure.
Private investors concerned about high upfront costs and uncertainty about demand for charging services often choose to step back from public charging projects because they are unlikely to earn back their investment in five years or less.
Indirect revenue streams can make a big difference. For example, an automaker and an EV charging station operator could share the revenue generated by additional EV sales that could come from an expansion of charging services. Or a group of retail businesses could co-host a charging site, sharing the costs and attracting new customers.
These and other business models were analyzed using a tool, developed by C2ES and Cadmus Group, that helps investors evaluate the financial viability of publicly available charging station projects.
|The charging projects in Washington and New York assume 60 percent of the project capitalization cost is financed through debt. The baseline interest rate used was 8 percent, as indicated in this figure.|
Even with these business models, some projects may still not be profitable soon enough for investors. So the report recommends near-term public support, such as grants, low-interest loans, and vehicle purchase incentives. Grants help lower initial costs to speed return on investment, and low-interest loans provide access to investment capital. Incentives to buy EVs, like the wide array of policies outlined in a recent report on EV promotion in the 25 largest U.S. cities, can help expand the demand for charging stations.
Publicly available charging not only helps travelers with EVs get where they need to go; it also helps reduce emissions contributing to climate change that affects us all.
As with many new technologies, EV charging will need creative business models and public support to capture the environmental benefits of electric vehicles. With continued public support in the near term, new business models that capture indirect revenue can gradually make publicly available charging projects profitable for private businesses.
Strategic Planning to Implement Publicly Available EV Charging Stations: A Guide for Businesses and Policymakers
Can you feel the momentum?
With negotiators meeting in Bonn this week and only six weeks to go until Paris, the business community is not only stepping up to the plate, but is swinging for the fences on its support climate action (Yes, it’s playoff season, so baseball is also on my mind).
This week’s announcement that 69 companies have joined the White House’s American Business Act on Climate Pledge brings the total to 81. Many of these companies pledging to reduce their emissions, take other actions to tackle climate change and support a strong international agreement include a number of members of our own Business Environmental Leadership Council: Alcoa, Bank of America, GE, General Motors, HP, IBM, Intel and PG&E. Together the 81 companies represent a combined $3 trillion in revenue and 9 million employees.
And last week, 14 companies with a combined revenue of $1.1 trillion and 1.5 million employees signed a statement organized by C2ES in support of a Paris climate agreement, that began “Paris presents a critical opportunity to strengthen efforts globally addressing the causes and consequences of climate change, and to demonstrate action by businesses and other non-state actors. ”
But these companies aren’t just talking about climate change; they’re doing something about it. They’re making commitments to reduce their own emissions, and some are even committing to use 100% renewable energy through the RE100 campaign. They are also working both internally and with communities and cities to increase climate resilience.
Now it’s time to take this enthusiasm and put it to work. We know there is growing support for a strong agreement in Paris, and hopefully that’s what we’ll get in December. But that’s just the first step—we’ll need to ensure that countries live up to their commitments, and back here in the United States, we’ll be working with businesses, states, and cities to build partnerships that harness the power of the markets to reduce emissions, develop innovative financing for clean energy and strengthen our resilience to climate impacts.
We have some real momentum going now. Let’s make the most of it.
Cities and counties are increasingly emerging as climate leaders, becoming laboratories and incubators for climate solutions. These solutions take a fresh approach to emerging local challenges, and could drive progress at a larger scale.
Here are two key ways cities are stepping up:
· Local governments are creating an invaluable knowledge base for efficiency and sustainability efforts.
To reach your destination, you have to know where you are starting from. That’s why it’s so important that cities are taking advantage of ever-improving data collection and analytical capabilities to become the providers of rich databases of energy and water use in their jurisdictions.
Philadelphia's Energy Benchmarking program requires large commercial buildings to disclose their energy use. As a result, the city has a baseline of energy usage by nearly 2,000 buildings across multiple sectors. By sharing this data with building owners and energy managers, the city is focusing more attention on saving energy. And by sharing building data online with potential tenants, the city hopes to create a market for efficient buildings.
A similar program in New York City has had promising results. The disclosure policy corresponded with energy savings of nearly 6 percent - worth more than $260 million.
· Local governments are leveraging technology to save energy and reduce greenhouse gas emissions.
A partnership between the City of Charlotte and Envision Charlotte, a local nonprofit, was among the examples of this strategy featured at the recent Smart Cities week in Washington, D.C. Working with the city and Duke Energy, Envision Charlotte has installed shadow meters in uptown commercial buildings to gather real-time energy use data that informs customized training for building managers. Recent assessments document a 16 percent drop in energy use over a 2010 baseline.
Envision Charlotte plans to reach more buildings in the city and is developing an app to engage office tenants. It’s also partnering with the White House to launch the newly unveiled Envision America program, which aims to achieve similar energy savings in other cities.
In both of these cases, access to strong data is helping to identify candidates for educational programs and investment opportunities to improve building performance. Local leaders know that these activities can strengthen their communities and local economies, and cities have a growing track record of facilitating such projects and ensuring they are implemented and monitored successfully.
As programs like these show, cities can be valuable partners as states and companies seek to improve sustainability and save energy. They can also play a key role as states seek emissions-cutting strategies under the Clean Power Plan.
That’s why local governments are playing a key role in the new C2ES Solutions Forum initiative. By sharing their experiences with states and businesses, cities and counties will help inform decisions and promote climate solutions that work.
Photo by Amy Morsch
A volunteer from Escola University uses a model home to demonstrate energy-saving tactics at the first Brazilian Alcoa Green Fair in Poços de Caldas.
Seeing is believing, even if it’s a meticulously built model used to illustrate action in real life.
Take the model home Escola University volunteers displayed at a recent Alcoa Green Fair in Poços de Caldas, Brazil. From top to bottom, it demonstrated energy-saving actions in every nook to help visitors see how each small change can save kilowatts -- and money.
Communities can use the same concept to illustrate and communicate what actions will help save energy and reduce climate impacts.
The way we talk about climate and energy issues can either empower people to act or leave them overwhelmed. People won’t necessarily be moved to act just because they know about the challenges. More often, they will be moved because they feel a collective responsibility for a shared problem and understand how they can make a positive impact.
Through the Alcoa Green Fairs, C2ES and the Alcoa Foundation work to drive action on climate and energy issues in a positive and engaging way. Now, Alcoa and C2ES have pushed this successful U.S. program to the international stage. The first-ever fair in Brazil in August attracted 17 organizations and more than 750 people to Alcoa’s Poços de Caldas plant, about four hours north of the capital Sao Paulo, to see demonstrations, learn about resources, and discover new ways to be eco-friendly.
Events like the Alcoa Green Fairs highlight how organizations are stepping up to reduce their impacts, both collectively and one employee at a time. This leadership was evident when Alcoa plant managers, employee champions, the Alcoa Foundation, C2ES, and Sustainable Poços Association (APS) gathered at an early-morning roundtable discussion before the fair.
Weathering the Next Storm:
September 22, 2015
By Katy Maher and Janet Peace
Infographic with key takeaways
Increased extreme weather and climate-related impacts are imposing significant costs on society and on companies. While businesses are increasingly taking steps to assess risks and prepare for future climate changes, many companies face internal and external challenges that hinder efforts to move toward greater climate resilience. Building and expanding on an earlier review completed in 2013, C2ES examined how large companies are preparing for climate risk, who they are partnering with, and what is keeping them for doing more.
Download the infographic as a PDF