Facebook and Ben & Jerry's: Corporate Strategies to Reduce Carbon Pollution
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Bill Weihl, Director of Sustainability, Facebook Christopher Miller, Social Activism Manager, Ben & Jerry’s Sarah Severn, Coordinator for Washington State Businesses for Climate Action Richard Eidlin, Vice President of Policy, ASBC (moderator)
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Facebook and Ben & Jerry's: Corporate Strategies to Reduce Carbon Pollution
- 1. 11 Building a Sustainable Economy March 31 2016, Facebook and Ben & Jerry's: Corporate Strategies to Reduce Carbon Pollution View later or download at asbcouncil.org/webinars Bill Weihl, Director of Sustainability, Facebook Christopher Miller, Social Activism Manager, Ben & Jerry’s Sarah Severn, Coordinator for Washington State Businesses for Climate Action
- 2. ASBC’S CARBON TAX PRINCIPLES • Comprehensive, with no exceptions • Setting a meaningful price • Tax the highest CO2 emitters at the source • Protecting US competitiveness • Using the revenue to benefit the economy View later or download at asbcouncil.org/webinars
- 3. UPCOMING EVENTS • Apr. 11 event in Arizona • Apr. 14 webinar - state carbon tax initiatives • Apr. 19 webinar - federal legislation
- 4. Following over a decade in the advertising industry Sarah joined the Nike brand marketing team in Europe to establish their consumer insights department. A passionate advocate for environmental issues enabled her to change track in 1995 and relocate to Nike World Headquarters in Oregon as Global Director of the Environmental Action Team. From 1995 to 2000 she catalyzed the introduction of sustainability into the business, from operations and supply chain through to product design and manufacturing. Following that she had a number of senior sustainability roles focused on leading environmental stakeholder engagement activity, and tracking emerging issues and futures work. Sarah led the development of Nike’s climate change advocacy strategy and initiated the BICEP coalition (Business for Innovative Climate and Energy Policy), and the ZDHC (Zero Discharge of Hazardous Chemicals) business coalition. Sarah is currently advising Washington Business for Climate Action and the Alliance for Clean Jobs and Energy. Current Board and Advisory Board roles Advisory Board member, U.S Forum for the Future, 2014 to date Board Member, American Council for Sustainable Business SARAH SEVERN
- 5. Reducing GHG’s through Clean and Renewable Energy (CaRE) Bill Weihl Sustainability Director, Facebook March 31, 2016 View later or download at asbcouncil.org/webinars
- 6. Facebook infrastructure Data centers ▪ 20-120 MW – 90% load factor ▪ Some of the most efficient in the world ▪ Open Compute Project ▪ 4 owned data centers operating in North Carolina, Oregon, Iowa and Sweden; 2 under construction in Texas and Ireland ▪ Some leased facilities as well Offices ▪ HQ in Menlo Park CA ▪ Smaller leased facilities elsewhere View later or download at asbcouncil.org/webinars
- 7. Clean energy goals ▪ Access to cost based clean energy is a key variable in site selection ▪ Cost and reliability are critical ▪ But: clean energy is equally important ▪ Data centers in Sweden, Iowa, Texas, and Ireland are 100% CaRE ▪ Looking for CaRE solutions for other sites ▪ Long-term: want 100% CaRE View later or download at asbcouncil.org/webinars
- 8. Why 100% CaRE? ▪ Operational business benefits ▪ (sometimes) Reduce energycosts ▪ Reducecost volatility and exposure to price increases ▪ Corporate responsibility ▪ Climate change is a critical issue ▪ Internal and external stakeholders ▪ Long-term: ▪ Good for the planet, for the global economy, and hence our business View later or download at asbcouncil.org/webinars
- 9. Near- and medium-term goals are key ▪ We use an “internal renewable portfolio standard” (RPS) ▪ Long term goal is clear: 100% CaRE ▪ But: how to measure – and drive – progress? ▪ First goal: set target (in 2012) of 25% CaRE in 2015 ▪ Surpassed it – public numbers to be released later this spring ▪ Next goal: doubled that target to 50% CaRE in 2018 ▪ Will continue to “stairstep” higher over time View later or download at asbcouncil.org/webinars
- 10. Pragmatic approach to CaRE ▪ On-site in some cases (esp. HQ) ▪ Scale of data centers pushes for off-site ▪ Iowa: ▪ 100% new wind, built by the utility ▪ Economics workwell for us, for the utility, and for other ratepayers ▪ Texas: ▪ Open market, choice of energy providers ▪ We’ll consider working with the utility, or doing direct PPAs, CFDs, etc where necessary View later or download at asbcouncil.org/webinars
- 11. Challenges ▪ De-regulated locales: buy what we want – relatively straightforward ▪ Regulated service territories ▪ More complicated… ▪ One-on-one negotiations tend to be slow (often too slow for site selection) ▪ We need to start changingthe landscape well in advance of any particular deal View later or download at asbcouncil.org/webinars
- 12. Challenges ▪ De-regulated locales: buy what we want – relatively straightforward ▪ Regulated service territories ▪ More complicated… ▪ One-on-one negotiations tend to be slow (often too slow for site selection) ▪ We need to start changingthe landscape well in advance of any particular deal ▪ Internal buy-in and budget ▪ Key was to get agreement on long-term goal ▪ … and then on stairstep approach ▪ Energy procurement is managedcentrally – makes things simpler ▪ We felt this was more effective than setting an internal “carbon fee”, which seemed unlikely to drive the changewe wantedfast enough View later or download at asbcouncil.org/webinars
- 13. The power of collaboration ▪ REBA – Renewable Energy Buyers’ Alliance ▪ 100+ companies, 4 NGOs (BSR, WRI, WWF, RMI) ▪ Focused on 3 key issues ▪ Awareness– on the part of companies, utilities, regulators, etc ▪ Capacity – internal or external – so companies can do transactions ▪ Policy – expanding options so deals can be done in more places View later or download at asbcouncil.org/webinars
- 14. The power of collaboration ▪ REBA – Renewable Energy Buyers’ Alliance ▪ 100+ companies, 4 NGOs ▪ Focused on 3 key issues ▪ Awareness– on the part of companies, utilities, regulators, etc ▪ Capacity – internal or external – so companies can do transactions ▪ Policy – expanding options so deals can be done in more places ▪ Component initiatives: ▪ Awareness– RE100(and the other 3) ▪ Capacity – RMI Business Renewables Center (BRC) ▪ Policy – Corporate Renewable Energy Buyers’ Principles (WWF and WRI) ▪ Data center sector: BSR Future of InternetPower (FoIP)
- 15. Renewable Energy Buyers’ Principles ▪ Distill key elements we all need to meet our RE goals ▪ Choice ▪ Cost-competitive ▪ Longer and variable-term contracts ▪ Additionality (new projects) ▪ Streamlined financing ▪ Wider range of options with utilities
- 16. Renewable Energy Buyers’ Principles ▪ Distill key elements we all need to meet our RE goals ▪ Choice ▪ Cost-competitive ▪ Longer and variable-term contracts ▪ Additionality (new projects) ▪ Streamlined financing ▪ Wider range of options with utilities ▪ Cross-sector, large and small companies: ▪ Tech: Facebook, Google, Microsoft, Salesforce, … ▪ Retail: Walmart, Staples, … ▪ Hospitality: Hilton, Starwood, … ▪ Food & Bev: Kellogg’s, Mars, Starbucks, … ▪ Manufacturing: GM, Intel, P&G, Volvo, … ▪ Over 50 companies today View later or download at asbcouncil.org/webinars
- 17. Buyers’ Principles ▪ Distill key elements we all need to meet our RE goals ▪ Choice ▪ Cost-competitive ▪ Longer and variable-term contracts ▪ Additionality (new projects) ▪ Streamlined financing ▪ Wider range of options with utilities ▪ Our collective voice is very powerful – and people are listening ▪ NARUC ▪ ALEC ▪ Governors ▪ Economic development agencies ▪ Legislators ▪ And utilities! ▪ The hope – and goal – is to create more and better options in many locales over the next couple of years View later or download at asbcouncil.org/webinars
- 19. What can you do? ▪ Sign the buyers’ principles – add your voice ▪ http://buyersprinciples.org ▪ Join the BRC to build internal capacity and access external capacity – learn how to do deals ▪ http://www.rmi.org/business_renewables_center ▪ (Data center companies) Join the BSR FoIP to learn from and work with peers ▪ http://www.bsr.org/en/collaboration/groups/future-of-internet-power ▪ If you’re ready: set a 100% CaRE target ▪ http://there100.org/ View later or download at asbcouncil.org/webinars
- 20. Ben & Jerry’s Internal Carbon Pricing Program View later or download at asbcouncil.org/webinars
- 21. Why Do It? • Company wide focus on our footprint • Drive efficiencies across our value chain • Create a fund to invest in innovation within our value chain • Proof point that pricing carbon is good for business View later or download at asbcouncil.org/webinars
- 22. EMISSIONS BY LIFE CYCLE STAGE Our Hoofprint View later or download at asbcouncil.org/webinars
- 23. The Boundaries View later or download at asbcouncil.org/webinars
- 24. Climate and Energy Goals 2015 2020 2050 Reduce greenhouse gas emissions, per unit of production, by 40%, compared to a 2014 baseline, by 2025 Transition to 100% clean and renewable energy by 2025, with a mix of both onsite and offsite sources. To peak absolute emissions in 2026, despite aggressive growth projections. Increase investments in building climate-resiliency in our supply chain $10 million by 2025. Develop long-term business strategies to achieve our science based mid- century goal in line keeping global average temperatures rise below 2ºC. View later or download at asbcouncil.org/webinars
- 25. • $10 / MT across scope 1 - 3 • = $30ish / MT on scope 1 and 2 • >$2mm • Invest in direct supply chain Our Carbon Tax View later or download at asbcouncil.org/webinars
- 26. Projects • On-farm Technology – Management systems • Solar and efficiency at Manufacturing Sites • Logistics • Freezer Technology View later or download at asbcouncil.org/webinars
- 28. Thank You View later or download at asbcouncil.org/webinars
- 29. WORKING WITH ASBC • Provide business leaders to testify at hearings and briefings • Develop Policy Recommendations • Advocate for Policies at Federal and State Level • Change how the Media Reports on ‘What Business Thinks’ (Write/Place Op-Eds) • Craft Business Cases to Support Legislation • Fly-In’s • Polling Contact: Richard Eidlin reidlin@asbcouncil.org 1401 New York Avenue, Suite 1225 Washington, D.C. 20005