Facebook and Ben & Jerry's: Corporate Strategies to Reduce Carbon Pollution

1 1

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

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


UPCOMING EVENTS

• Apr. 11 event in Arizona

• Apr. 14 webinar - state carbon tax

initiatives

• Apr. 19 webinar - federal legislation

https://attendee.gotowebinar.com/register/6481206902831718145

https://attendee.gotowebinar.com/register/4828899311559755521

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

Reducing GHG’s through Clean and Renewable Energy (CaRE)

Bill Weihl

Sustainability Director, Facebook

March 31, 2016


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


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


Why 100% CaRE?

▪ Operational business benefits

▪ (sometimes) Reduce energy costs

▪ Reduce cost 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


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


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 work well 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


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 changing the landscape well in

advance of any particular deal


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 changing the 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 managed centrally –

makes things simpler

▪ We felt this was more effective than setting an

internal “carbon fee”, which seemed unlikely to

drive the change we wanted fast enough


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


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 Internet Power

(FoIP)

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

Renewable Energy Buyers’ Principles


RE goals

▪ Choice






▪ 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


Buyers’ Principles


RE goals

▪ Choice






▪ 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


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/


http://buyersprinciples.org/



http://www.rmi.org/business_renewables_center

http://www.rmi.org/business_renewables_center

http://www.bsr.org/en/collaboration/groups/future-of-internet-power








http://there100.org/

http://there100.org/

Ben & Jerry’s

Internal Carbon Pricing Program


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


EMISSIONS

BY LIFE

CYCLE STAGE

Our Hoofprint


The Boundaries


Climate and Energy Goals

2015 2020 2050

Reduce greenhouse gas emissions, per unit of production, by 40%, comparedto a 2014 baseline, by 2025

Transition to 100% clean and renewable energy by 2025, with a mix of bothonsite 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.


• $10 / MT across scope

1 - 3

• = $30ish / MT on

scope 1 and 2

• >$2mm

• Invest in direct supply

chain

Our Carbon Tax


Projects

• On-farm Technology

– Management systems

• Solar and efficiency at ManufacturingSites

• Logistics

• Freezer Technology


Thank You


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

[email protected]

1401 New York Avenue, Suite 1225

Washington, D.C. 20005