Saturday, January 27, 2007

Conversations With Corporate Decision Makers #2 Carbon Footprint

So, you're interested in carbon footprint? Here's how it usually goes.

Him/Her: So, with a name like Carbontrader you must be the guy to talk to about our "Carbon Footprint".
Me: Well, I did learn from a Londoner...

Him/Her: Ok, so we've heard alot about being carbon neutral and its our understanding that getting our carbon footprint done is the first step towards it.
Me: Precisely. Another thing to consider is that your Green Power (REC) purchase will actually cause your footprint to immediately require a smaller shoe.

Him/Her: I assume that was an attempt at humor and I'll ignore it.
Me: Well, yes. A certain modicum of levity never hurts in my opinion. But I digress.

Him/Her: Ok, so what do you need from me to make this carbon footprint happen?
Me: First we need your electricity bills for the past year. For 95% of businesses emissions arising indirectly from purchased grid generated electricity, steam, and chilled water are the largest factor in a carbon footprint.

Him/Her: Utility bills. Check.
Me: Next, if you generate electricity or steam onsite we will need your fuel consumption records.

Him/Her: Ok, that shouldn't be a problem...we purchase our natural gas from the same provider that we purchase electricty from.
Me: Next, mobile sources. Company cars. We'll need fuel consumption records, but if you don't have those we can work with the make/model and mileage travelled.

Him/Her: Okay, whats next.
Me: That's it. For most companies that's all we need. Utilities, manufacturing companies, companies that have distributed generation, and companies with significant refrigeration appliances will need more detailed analysis. However, most carbon risk companies can handle the various special cases.

Him/Her: How long will this process take and what does it entail?
Me: For most companies it will require one or two visits to corporate headquarters. Carbon emission estimates should be turned around with in a few weeks.

Him/Her: What are the added values?
Me: A carbon risk firm should help you develop a carbon risk managment program with a formal reporting process. They should also help you understand how your company might be affected by potential state or federal carbon dioxide regulations in the future and how voluntary reporting now under CCAR, US DOE 1605b, or RGGI might benefit from an experience or financial standpoint.

Him/Her: Anything else?
Me: Yes, they should be able to provide you options for reducing your footprint by providing pricing for various types of renewable energy (RECs) and carbon offsets (VERs, CERs, EUAs).

Me: Oh, and energy efficiency consulting. They should be able to refer you to a consultant for managing energy in an existing facility or an sustainable architect that can help you build new "GREEN" buildings.

Me: Oh, one more thing. They should be able to help you quantify and monetize any early carbon emission reduction projects or efforts that you make. Reducing emissions now will very likely have monetary value under a future US Cap & Trade scheme.

Him/Her: Ok, well. I think we are ready to go ahead get our carbon footprint done. So, what should I google?
Me: Try, carbon risk solutions. That should get you a list of companies that can help you define your risk and get you to "Carbon Neutral".

Him/Her: Great, appreciate the help. Next time, can we talk about Carbon Offsets?
Me: You got it.

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