Climate Change http://www.ceres.org daily 1 2011-02-17T20:47:42Z Benchmarking Air Emissions http://www.ceres.org/resources/reports/benchmarking-air-emissions This report analyzes the latest emissions from the 100 largest power producers in the U.S. The report shows that the electric industry cut emissions of NOx, SO2 and CO2 in 2011 even as overall electricity generation increased, largely due to increased use of natural gas and growing reliance on renewable energy. This report analyzes the latest emissions from the 100 largest power producers in the U.S. The report shows that the electric industry cut emissions of NOx, SO2 and CO2 in 2011 even as overall electricity generation increased, largely due to increased use of natural gas and growing reliance on renewable energy.

Based on the latest available data, the report also reveals that Wyoming, Kentucky, West Virginia, Indiana, and North Dakota had the highest CO2 emissions per megawatt-hour of power produced, while Idaho, Vermont, Washington, Oregon, and Maine had the lowest CO2 emissions rates. Nationwide, five power producers—American Electric Power, Duke Energy, FirstEnergy, Southern Company, and Tennessee Valley Authority—generate 25 percent of overall electric sector CO2 emissions, though some of these producers and others have significantly reduced emissions in recent years.

The Benchmarking Air Emissions report is the ninth in a series highlighting environmental performance and progress in the nation’s electric power sector.

]]> No publisher Megan Doherty 2013-05-15T12:10:00Z Resource INCR Listing Standards Drafting Committee Consultation Paper: Proposed Sustainability Disclosure Listing Standard for Global Stock Exchanges http://www.ceres.org/resources/reports/incr-listing-standards-drafting-committee-consultation-paper-proposed-sustainability-disclosure-listing-standard-for-global-stock-exchanges A group of leading global investors have created a Consultation Paper with recommendations for integrating sustainability disclosure requirements into listing rules for U.S. and global stock exchanges. A group of leading global investors have created a Consultation Paper with recommendations for integrating sustainability disclosure requirements into listing rules for U.S. and global stock exchanges.

The draft recommendations were developed by nearly a dozen investors who are part of the Ceres-led Investor Network on Climate Risk (INCR). BlackRock, British Columbia Investment Management Corporation, and the AFL-CIO Office of Investment are among those who participated on the INCR Listing Standards Drafting Committee.

The initiative is part of a growing effort by investors and stock exchanges, including NASDAQ OMX, to make sustainability disclosure a consistent requirement for corporate listings on stock exchanges. While several exchanges have adopted their own sustainability listing requirements and guidance, INCR members and NASDAQ OMX have set out to develop a uniform baseline standard that all stock exchanges can use.

]]> No publisher Megan Doherty 2013-04-08T13:10:00Z Resource Insurer Climate Risk Disclosure Survey 2012 http://www.ceres.org/resources/reports/naic-report This report summarizes responses from insurance companies to a survey on climate risk developed by the National Association of Insurance Commissioners (NAIC). In 2012 insurance regulators in California, New York and Washington required insurers that write in excess of $300 million in direct written premiums, and are licensed to operate in any of the three states, to disclose their climate-related risks using this survey. The aim of the survey and Ceres’ analysis of the responses is to provide regulators with substantive information about the risks to insurers posed by climate change, as well as steps insurers are taking in response to their understanding of climate change risks. This report summarizes responses from insurance companies to a survey on climate risk developed by the National Association of Insurance Commissioners (NAIC). In 2012 insurance regulators in California, New York and Washington required insurers that write in excess of $300 million in direct written premiums, and are licensed to operate in any of the three states, to disclose their climate-related risks using this survey. The aim of the survey and Ceres’ analysis of the responses is to provide regulators with substantive information about the risks to insurers posed by climate change, as well as steps insurers are taking in response to their understanding of climate change risks.

]]> No publisher Brian Sant 2013-03-06T18:35:00Z Resource Power Forward: Why the World’s Largest Companies are Investing in Renewable Energy http://www.ceres.org/resources/reports/power-forward-why-the-world2019s-largest-companies-are-investing-in-renewable-energy This report shows that a majority of Fortune 100 companies have set a renewable energy commitment, a greenhouse gas (GHG) emissions reduction commitment or both. The trend is even stronger internationally, as more than two-thirds of Fortune’s Global 100 have set the same commitments. Large corporations are increasingly turning to renewable energy to power their operations. Companies are investing in renewable energy because it makes good business sense: renewable energy helps reduce long-term operating costs, diversify energy supply and hedge against market volatility in traditional fuel markets. It also enables companies to achieve greenhouse gas (GHG) emissions reduction goals and demonstrate leadership on broader corporate sustainability and climate commitments.

This report shows that a majority of Fortune 100 companies have set a renewable energy commitment, a greenhouse gas (GHG) emissions reduction commitment or both. The trend is even stronger internationally, as more than two-thirds of Fortune’s Global 100 have set the same commitments.

Through two dozen interviews with Fortune and Global 100 executives and analysis of public disclosures, the report finds that clean energy practices are becoming standard procedures for some of the largest and most profitable companies in the world, including AT&T, DuPont, General Motors, HP, Sprint, and Walmart.

]]> No publisher Megan Doherty 2012-12-10T08:00:00Z Resource Investor Expectations for Improving Environmental & Social Performance in Canadian Oil Sands Development http://www.ceres.org/resources/reports/investor-expectations-for-improving-environmental-social-performance-in-canadian-oil-sands-development A group of 49 investors with $2 trillion in assets under management are calling on Canadian oil sands developers to dramatically reduce the environmental and social impact of their operations. A group of 49 investors with $2 trillion in assets under management are calling on Canadian oil sands developers to dramatically reduce the environmental and social impact of their operations by lowering greenhouse gas (GHG) emissions, managing water use, promoting land reclamation and consulting fully with First Nations and other communities affected by oil sands projects. The investors argued that these performance improvements “should be prioritized ahead of unmitigated growth ambitions for oil sands development.”

Oil sands development is significantly more resource-intensive than traditional oil development, creating environmental and social concerns that investors argue may threaten the sector’s long-term viability and growth.

In their statement, investors specifically called on Canada’s Oil Sands Innovation Alliance (COSIA) to:

  • Set goals and timelines for reducing the greenhouse gas intensity of oil sands production to at least that of conventional oil production, while also providing greater disclosure on research and development efforts and supporting provincial and federal regulations that would lead to significant reductions in GHG emissions.
  • Manage water risk by setting goals and timelines for minimizing net surface and groundwater withdrawals, and keeping withdrawals within science-based ecosystem limits.
  • Reduce the rate of land disturbance and increase reclamation, provide disclosure of liabilities, establish wetlands and biodiversity offsets and accept limits to the amount of land available to oil sands development at any given time.
  • In cooperation with government authorities, fully incorporate the principle of Free, Prior, and Informed Consent in their responsibilities to First Nations, Metis, Inuit and other communities affected by oil sands operations.
]]> No publisher Megan Doherty 2012-10-22T12:50:00Z Resource Incorporating Environmental, Social and Governance Factors into Investing: A Survey of Investment Consultant Practices http://www.ceres.org/resources/reports/incorporating-environmental-social-and-governance-factors-into-investing-a-survey-of-investment-consultant-practices This report shows that investment consultants retained by major asset owners such as pension funds, foundations and endowments have generally not considered environmental, social and governance (“ESG”) risks and opportunities as they advise their investor clients on their portfolios. A new Ceres report shows that investment consultants retained by major asset owners such as pension funds, foundations and endowments have generally not considered environmental, social and governance (“ESG”) risks and opportunities as they advise their investor clients on their portfolios. Of the 13 U.S. and international consulting firms surveyed for the report, few have developed expertise in ESG investing, fewer than half believe environmental and social factors can impact long-term financial risk and reward, and only one integrates ESG into its risk/return and asset allocation modeling.

The report, Integrating Environmental, Social and Governance Factors Into Investing: A Survey of Investment Consultant Practices, was prepared by the Investor Network on Climate Risk (INCR), a group of 100 institutional investors with more than $10 trillion in assets under management, and the nonprofit group Ceres, which advocates for sustainable business and investment practices.

]]> No publisher Megan Doherty 2012-10-05T07:00:00Z Resource Stormy Future for U.S. Property/Casualty Insurers: The Growing Costs and Risks of Extreme Weather Events http://www.ceres.org/resources/reports/stormy-future This Ceres report examines how extreme weather trends may be a harbinger of significant challenges ahead for a sector in which many companies are already confronting profitability and growth challenges. This analysis is based on a careful review of U.S. property/casualty insurance industry financial results as reported by A. M. Best Company in early 2012. This Ceres report examines how extreme weather trends may be a harbinger of significant challenges ahead for a sector in which many companies are already confronting profitability and growth challenges. This analysis is based on a careful review of U.S. property/casualty insurance industry financial results as reported by A. M. Best Company in early 2012.

]]> No publisher Brian Sant 2012-09-20T14:35:00Z Resource Sustainable Extraction? An Analysis of SEC Disclosure by Major Oil & Gas Companies on Climate Risk and Deepwater Drilling Risk http://www.ceres.org/resources/reports/sustainable-extraction-an-analysis-of-sec-disclosure-by-major-oil-gas-companies-on-climate-risk-and-deepwater-drilling-risk Disclosure of material business risk is a core underpinning of the modern global economy’s health. A new report says that investors aren’t getting a clear picture from companies of just how deep the material risks are. This report, based on annual financial filings submitted in Q1 2011 by 10 of the world’s largest oil and gas companies, finds that companies making extensive capital investments related to climate change and deepwater drilling are failing to adequately disclose their substantial material risks in areas such as new regulations, adverse environmental impacts and water availability constraints.

Investors are looking for substantial improvement in these disclosures. The SEC’s guidance for disclosure does not yet require complete, and therefore completely accurate, assessment of companies’ climate or deepwater drilling performance or risks. This report contains detailed recommendations for improving both disclosure and performance.

]]> No publisher Megan Doherty 2012-08-02T11:55:00Z Resource Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States 2012 http://www.ceres.org/resources/reports/benchmarking-air-emissions-of-the-100-largest-electric-power-producers-in-the-united-states A new report on U.S. power plant emissions from the top 100 power producers demonstrates the impact of the electric power industry’s current transition to cleaner energy sources. The latest data on top 100 power producers show declining SO2, NOx and CO2 emissions and increasing use of energy efficiency and renewables.

The 2012 Benchmarking report is the eighth report in a series highlighting environmental performance and progress in the nation’s electric power sector. The report is based on 2010 generation and emissions data from the Energy Information Administration and the Environmental Protection Agency, and also includes analysis of preliminary 2011 emissions data. The previous edition reported on 2008 data.

]]> No publisher Megan Doherty 2012-07-31T13:45:00Z Resource Global Investor Survey on Climate Change Report 2011 http://www.ceres.org/resources/reports/global-investor-survey-on-climate-change This report provides the results of the second global survey of investment practices coordinated by the three investor networks on climate change – the IIGCC, based in Europe, INCR, based in North America and the Australia/New Zealand IGCC. The report provides an overview of the leading investment practices around the world on climate change and analyses the drivers for those practices. Institutional investors are becoming increasingly concerned that climate change poses a serious challenge to their investments. Despite growing evidence produced by climate science, global emissions continue to increase, and national and international policy responses remain inconsistent. Thus, the urgency of action by investors, companies and policymakers on climate change continues to grow.

This report provides the results of the second global survey of investment practices coordinated by the three investor networks on climate change – the IIGCC, based in Europe, INCR, based in North America and the Australia/New Zealand IGCC. The report provides an overview of the leading investment practices around the world on climate change and analyses the drivers for those practices.

]]> No publisher Megan Doherty 2012-07-25T13:15:00Z Resource Physical Risks from Climate Change: A guide for companies and investors on disclosure and management of climate impacts http://www.ceres.org/resources/reports/physical-risks-from-climate-change The year 2011 set records for economic losses and insured losses caused by natural catastrophes, with extreme weather events accounting for 90 percent of the disasters and eight of the 10 most costly, resulting in overall losses of more than $148 billion and insured losses of more than $55 billion. Climate change is predicted to increase these trends. Climate change has already started to cause a wide range of physical effects— with serious implications for investors and businesses. While weather variability and extremes have always existed, the science shows that extreme weather events are becoming more frequent and intense, that incremental climatic changes are already underway, and that the impacts of climate change are expected to grow more severe over the coming years and decades.

The year 2011 set records for economic losses and insured losses caused by natural catastrophes, with extreme weather events accounting for 90 percent of the disasters and eight of the 10 most costly, resulting in overall losses of more than $148 billion and insured losses of more than $55 billion. Climate change is predicted to increase these trends.

]]> No publisher Brian Sant 2012-05-31T07:00:00Z Resource Investor Risks from Oil Shale Development http://www.ceres.org/resources/reports/investor-risks-from-oil-shale-development May 2012 - The Department of the Interior’s Bureau of Land Management (BLM) recently proposed limiting federal leases for development of oil shale to Research, Development, and Demonstration (RD&D) leases instead of commercial leases. Given the many risks surrounding oil shale development, including technological uncertainties, regulatory risks, and water constraints, BLM’s proposed RD&D approach makes sense. Investors should be similarly cautious in evaluating future investment in this technology. May 2012 - The Department of the Interior’s Bureau of Land Management (BLM) recently proposed limiting federal leases for development of oil shale to Research, Development, and Demonstration (RD&D) leases instead of commercial leases. Given the many risks surrounding oil shale development, including technological uncertainties, regulatory risks, and water constraints, BLM’s proposed RD&D approach makes sense. Investors should be similarly cautious in evaluating future investment in this technology.

]]> No publisher Megan Doherty 2012-05-30T13:15:00Z Resource The Road to 2020: Corporate Progress on the Ceres Roadmap for Sustainability http://www.ceres.org/resources/reports/the-road-to-2020-corporate-progress-on-the-ceres-roadmap-for-sustainability The Road to 2020: Corporate Progress on The Ceres Roadmap for Sustainability (www.ceres.org/roadto2020) assesses how U.S. businesses are progressing on sustainability and uses as a framework, The 21st Century Corporation: The Ceres Roadmap for Sustainability—a guide for integrating sustainability across a company’s entire enterprise. Specifically, it evaluates where 600 large publicly traded companies stand on sustainability issues in terms of governance, stakeholder engagement, disclosure and performance. The Road to 2020: Corporate Progress on The Ceres Roadmap for Sustainability (www.ceres.org/ceresroadmap) assesses how U.S. businesses are progressing on sustainability and uses as a framework, The 21st Century Corporation: The Ceres Roadmap for Sustainability—a guide for integrating sustainability across a company’s entire enterprise. Specifically, it evaluates where 600 large publicly traded companies stand on sustainability issues in terms of governance, stakeholder engagement, disclosure and performance.

]]> No publisher Brian Sant 2012-04-25T10:40:00Z Resource Practicing Risk-Aware Electricity Regulation: What Every State Regulator Needs to Know http://www.ceres.org/resources/reports/practicing-risk-aware-electricity-regulation This report is primarily addressed to state regulatory utility commissioners, who will preside over some of the most important investments in the history of the U.S. electric power sector during perhaps its most challenging and tumultuous period. This report seeks to provide regulators with a thorough discussion of risk, and to suggest an approach—“risk-aware regulation”—whereby regulators can explicitly and proactively seek to identify, understand and minimize the risks associated with electric utility resource investment. It is hoped that this approach will result in the effcient deployment of capital, the continued financial health of utilities, and the confidence and satisfaction of the customers on whose behalf utilities invest. This report is primarily addressed to state regulatory utility commissioners, who will preside over some of the most important investments in the history of the U.S. electric power sector during perhaps its most challenging and tumultuous period. This report seeks to provide regulators with a thorough discussion of risk, and to suggest an approach—“risk-aware regulation”—whereby regulators can explicitly and proactively seek to identify, understand and minimize the risks associated with electric utility resource investment. It is hoped that this approach will result in the efficient deployment of capital, the continued financial health of utilities, and the confidence and satisfaction of the customers on whose behalf utilities invest.

For more about this issue, listen to the Ceres Podcast episode with report author Ron Binz, former chairman of the Colorado Public Utility Commission and principle of Public Policy Consulting.

]]> No publisher Megan Doherty 2012-04-19T14:40:00Z Resource Fuel Economy Focus: Industry Perspectives on 2020 http://www.ceres.org/resources/reports/fuel-economy-focus-industry-perspectives-on-2020 In collaboration with Citi Investment Research and the Investor Network on Climate Risk, Ceres, along with Oakland University’s School of Business Administration, Baum and Associates, and Meszler Engineering Services simulated the impact that the proposed U.S. Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) emissions program might have on the industry in 2020. The analysis is meant to provide investors with a framework for evaluating the potential industry impact from tightening regulations. In collaboration with Citi Investment Research and the Investor Network on Climate Risk, Ceres, along with Oakland University’s School of Business Administration, Baum and Associates, and Meszler Engineering Services simulated the impact that the proposed U.S. Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) emissions program might have on the industry in 2020. The analysis is meant to provide investors with a framework for evaluating the potential industry impact from tightening regulations.

]]> No publisher Megan Doherty 2012-04-04T18:30:00Z Resource