March 2010

1. The Next Practice Advantage Samantha Putt del Pino Co-Director, Business Engagement in Climate and Technology March 2010

2. Agenda • Evolution of corporate climate leadership • Current and future challenges • The Next Practice Advantage

3. WRI collaborates with business to advance climate change solutions • Original action agenda (1998) Safe-Climate, Sound Business • Business partnerships • Greenhouse Gas Protocol • Green Power Markets • Corporate vision/strategy Corporate Leadership Current & Future Challenges Next Practice Advantage

4. Business case evolving, expanding • Reputation, brand enhancement • Cost savings • Profit opportunities Corporate Leadership Current & Future Challenges Next Practice Advantage

5. Yesterday’s cutting edge has become today’s best practice • Verifying and registering data • Setting and updating performance targets • Identifying cost-effective GHG reductions • Managing internal communications • Capturing new business opportunities • Adapting to market-based solutions 2004 2009 Corporate Leadership Current & Future Challenges Next Practice Advantage

6. GHGs starting to factor into key strategic decisions • Investment priorities • Staffing, resources • Aligning long-term strategies Corporate Leadership Current & Future Challenges Next Practice Advantage

7. Agenda • Evolution of corporate climate leadership • Current and future challenges • The Next Practice Advantage

8. At a critical transition point in corporate climate leadership New transformative activities Visioning Climate Leadership Visioning Climate Opportunity BAU Business as usual Transition We are here Business as usual Business as usual Near term Long term Corporate Leadership Current & Future Challenges Next Practice Advantage

9. Business leadership critical to a strong, climate-safe economy policy framework corporate innovation technology & finance Corporate Leadership Current & Future Challenges Next Practice Advantage

10. Various roles to play Solutions Industry Electric Power (users and producers) Transport Ag & Land Use Corporate Leadership Current & Future Challenges Next Practice Advantage

11. Cross-cutting challenges and opportunities Energy Value Chains Adaptation Corporate Leadership Current & Future Challenges Next Practice Advantage

12. ENERGY: global consumption increases IEA: WEO 2009 Reference Case Corporate Leadership Current & Future Challenges Next Practice Advantage

13. ENERGY: costly reliance on fossil fuel imports Annual expenditure on oil & gas imports IEA: WEO 2009 Reference Case Corporate Leadership Current & Future Challenges Next Practice Advantage

14. ENERGY: BUSINESS IMPLICATIONS Corporate Leadership Current & Future Challenges Next Practice Advantage

15. high risk high risk VALUE CHAIN: upstream and downstream GHG risks, reduction opportunities upstream VALUE CHAIN suppliers high risk high risk Corporate Leadership Current & Future Challenges Next Practice Advantage downstream

16. VALUE CHAIN: new metrics, accounting standards, tools Supply Chain, Product Standards www.ghgprotocol.org www.ghgprotocol.org/standards/product-and-supply-chain-standard Corporate Leadership Current & Future Challenges Next Practice Advantage

17. competitive advantage -- -- -- -- competitive advantage competitive advantage -- -- -- -- competitive advantage high risk high risk VALUE CHAIN: BUSINESS IMPLICATIONS upstream upstream VALUE CHAIN VALUE CHAIN suppliers high risk high risk Corporate Leadership Current & Future Challenges Next Practice Advantage downstream downstream

18. Water Scarcity Demography Crop Decline Hunger Coastal Risks Recent Conflicts ADAPTATION: Protecting against global instability Corporate Leadership Current & Future Challenges Next Practice Advantage

19. ADAPTATIONBUSINESSIMPLICATIONS Corporate Leadership Current & Future Challenges Next Practice Advantage

20. ADAPTATIONOTHER BUSINESSIMPLICATIONSProducts and servicesCommunities and markets Corporate Leadership Current & Future Challenges Next Practice Advantage

21. Agenda • Evolution of corporate climate leadership • Current and future challenges • The Next Practice Advantage

22. Getting to carbon-competitive • Trends, drivers, implications • Business case • Decision-making framework Corporate Leadership Current & Future Challenges Next Practice Advantage

23. Are you competitive in tomorrow’s markets? ZERO CARBON climate advantage Opportunists Winners next practices existing products climate-centric planning short-term planning long-term success today’s strategies no action Ostriches Paper Tigers business-as-usual Corporate Leadership Current & Future Challenges Next Practice Advantage

24. The Next Practice Collaborative setting a new corporate climate agenda Corporate Leadership Current & Future Challenges Next Practice Advantage

25. OUTPUTS VISIONING GROUP CORPORATE INNOVATORS Trends, Drivers Business case Decision criteria, metrics Business case Next Practice approaches, frameworks Insights on tomorrow’s markets: Energy Value Chains Adaptation Pilot test, next steps WRI Thought Piece WRI Thought Piece Business implications Strategic priorities Results WRI Thought Piece WRI Thought Piece Corporate Leadership Current & Future Challenges Next Practice Advantage

26. The bottom line… BAU Best Practice* Carbon Competitive CLIMATE RISK Global GHG Emissions BUSINESS OPPORTUNITY 0 2010 2020 2030 2040 2050 * Illustrative diagram only. For analysis of today’s best practice impacts, see CDP’s Carbon Chasm. **For the sake of discussion, assume zero carbon goal as proxy for safe climate (i.e., 350-450 ppm). Corporate Leadership Current & Future Challenges Next Practice Advantage

27. For more information: Samantha Putt del Pino Co-director, Business Engagement in Climate and Technology sam@wri.org 202-729-7660 Corporate Leadership Current & Future Challenges Next Practice Advantage