No More Hiding: US EPA Lifts Lid On GHG Emissions
On January 11, 2012 the US Environmental Protection Agency (EPA) publically revealed the greenhouse gas (GHG) emissions of over 6,700 US emission-intensive facilities and fossil fuel suppliers. This is the first time the US EPA has released comprehensive GHG data accounting for over 80% of the country’s total emissions. Under the US EPA’s GHG Mandatory Report Rule (MRR) facilities emitting more than 25,000 tCO2 per year (as well as entities supplying fossil fuels) have been mandated to monitor and report emissions since January 2010.
The data reveals in 2010 the largest sources of GHGs in the US were power plants (2,324 facilities accounting for 72% of emissions), followed by refineries (183, 6%) and chemicals facilities (175, 5%). Other sectors are conspicuous by their absence from the list. For example the GHG performance of US retailers remains in hiding as their emissions typically fell below the facility-level reporting threshold, despite having large environmental footprints through their global supply chain. The reality that businesses have environmental impacts beyond their GHG footprints, witness Wal-Mart with over 100,000 suppliers globally, underpins the shift in focus from climate change to sustainability in sustainable business strategies.
As the US EPA lifts the lid on facility-level GHG emissions there is no more hiding for big polluters. Whilst the GHG MRR contains no requirement for GHG reductions, the US EPA’s GHG data release will make energy and facilities managers more conscious of their emissions profile and raise awareness of GHG performance among stakeholders. This may lead to a reduction in emissions if poor performance is seen to be a reputational risk. Our analysis on the 2011 UK Carbon Reduction Commitment Performance League Table finds that brand risk from poor GHG performance is driving the retail sector to invest in energy efficiency. The question still remains over whether the US EPA’s ‘naming and shaming’ of big emitters such as power plants and chemicals facilities, typically not exposed to consumer pressures, will lead to any emissions reductions.
