In 1997, as part of its strategic marketing transition to 'Beyond Petroleum', leading energy company British Petroleum committed to reducing its greenhouse gas emissions to 10% below its 1990 levels by 2010. BP achieved this target nine years earlier, by 2001, saving the company US$650 million.
A key mechanism to achieving this target was the use of an internal emissions cap-and-trade system. BP implemented the internal cap-and-trade system across its 150 business units in over 100 countries. Each unit was assigned a quote of emissions permits and was given the option of achieving compliance through emissions reduction or purchasing reduction credits from other BP units. ( click here for more information )
"At the time, we did not know how to reach the target, but the very fact of its existence permitted - in fact mandated - our managers to find a way. Coupled with an internal emissions "cap and trade" system to ensure efficient capital allocation, this mandate was enough to see us meet the target nine years early in 2001 - and unlock 650 million US dollars of value in the process."
Leading Australian renewable energy company Pacific Hydro announced its entry into the Brazilian energy market following the successful acquisition of German wind subsidiary, SES Ltda. This acquisition will see Pacific Hydro expand its market share in South America (its regional headquarters based in Chile) and capture further opportunities for carbon credits. ( click here for more information )
"This acquisition will see us investing more than half a billion Australian dollars in the coming years to develop over 300MW of clean energy assets in Brazil. This will not only assist Brazil in meeting its growing energy demand, but also its target of 10% renewable energy by 2020."
One of the world's largest mining & natural resources companies, BHP Billiton, is offering support and expertise in emissions trading to its customers to meet their EU ETS obligations, in conjunction with other emissions reduction strategies related to emissions intensity reduction, management plans and pricing carbon in decision-making.
Carbon pricing sensitivity analysis is considered in BHP Billiton's decisions on new projects and investments emitting greater than 100,000 tonnes CO2-eq per annum, including a range of prices for both developed and developing countries over time. The analysis is also used in strategy development. ( click here for more information )
"At BHP Billiton we recognise the intrinsic link between sound sustainability performance and long-term business viability. Our business Strategic Framework reflects this understanding, presenting Licence to Operate as a key Framework element."
One of Australia's leading banks, Westpac in 2006 began trading in the European Union's Emissions Trading Scheme. Recognising the severe implications of climate change on business risk, Westpac were recognised through the Carbon Disclosure Project's (CDP) global Climate Leaders Index for their leading management and disclosure practices. The CDP, a partnership of investors with over $31.5 trillion in assets, gathers information on risks and opportunities associated with climate change from more than 2,000 companies globally. ( click here for more information )
"With widespread acceptance that climate change is real, business has a tiger by the tail. There are critical risks but also real business opportunities - from lending in a water and carbon-constrained environment to valuing next generation assets."
