US Firms Need A Carbon Strategy Refresh
Published: 01 July 2010
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4 pages, 2 figures
Executive Summary
In 2009, US GDP declined by 2.4% due to the recession. As business activity fell, energy demand and the associated carbon emissions also dropped. The US Energy Information Administration has revealed that in 2009, CO2 emissions were 7% lower than 2008 levels. Falling GDP, the economy’s decreasing energy intensity, and declining carbon intensity of energy supply drove this reduction. These macro-level drivers show little influence of the collective efforts of US firms’ carbon management programmes. Instead, 2009 reductions in corporate carbon emissions are primarily the result of reduced business activity and associated declines in fuel and energy consumption. This disconnection between actions and results creates risks for individuals responsible for carbon management. Carbon management programmes are at particular risk from a combination of executive overconfidence and corporate carbon emissions rebound. In order to mitigate this risk and achieve real, sustainable reductions, firms need to refresh emission reduction goals, invest in carbon forecasting capacity and continue executive engagement.
TABLE OF CONTENTS
RECESSION CREATES UNCERTAINTY FOR US SUSTAINABILITY LEADERS
US Carbon Dioxide Emissions Dropped A Record 7% in 2009
The Recession Opens The Door To Carbon Strategy Problems
Successful Carbon Management Will Require A Carbon Strategy Refresh
TABLE OF FIGURES
Figure 1. Four Macro-Scale Factors Drive Carbon Emissions
Figure 2. Three Factors Contributed To The Record 2009 Drop in CO2 Emissions
COMPANIES MENTIONED
ArcelorMittal, BA, Hilton Worldwide, HP, US Energy Information Administration (EIA)