(image or color to replace gray area) the journey to sustainable growth: dupont’s energy and...
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The Journey to Sustainable Growth:DuPont’s Energy and Greenhouse Gas Reduction Goals
Michael ParrNGA Workshop February 28, 2002
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•DuPont delivers Science-based solutions...
– Food & Nutrition
– Health Care
– Apparel
– Home & Construction
– Electronics
– Transportation
•From a global company
– 94,000 employees in 70 countries
– 200 facilities in the US
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Sustainable Growth
“Creating shareholder and societal value while decreasing our environmental footprint” …. along the value chain
Chad Holliday - 1999
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DuPont and Climate Change
• Shaped by active participation in global scientific effort (IPCC)
• Involvement began with ozone depletion
• Concluded in 1991 that there is cause for concern
• Analyzed DuPont emissions profile
– Large CO2 emissions despite decades of energy efficiency gains
– Significant N2O, CFC-23 emissions
• Contributing to the problem.
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DuPont Climate Change Goals
• Established goals for 1990’s to:
– Reduce global GHG emissions 50%, focus on non-CO2 gases
– Increase energy efficiency by 15%, continues decades of effort
• Driven by
– Science of climate change
– Recognition of DuPont’s “environmental footprint”
– Goal of sustainable growth
– Desire to contribute to the solution
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How Have We Done?
• Reduced greenhouse gas emissions from operations >60% globally
• Energy consumption flat, despite 36% increase in production volume
1995 2000 2005 2010 20151990
+50
+25
-25
-50
-75
DuPont Early Reductions% ‘90
0
BAU
Impact of DuPont Early Actions
1995 2000 2005 2010 20151990
+50
+25
-25
-50
-75
DuPont Early Reductions% ‘90
0
Environmental Benefit
BAU
Impact of DuPont Early Actions
1995 2000 2005 2010 20151990
+50
+25
-25
-50
-75
DuPont Early Reductions% ‘90
0
BAU
Impact of DuPont Early Actions
Credit?
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How’d We Do That?
Greenhouse gases
•Nitrous oxide abatement in adipic acid process
•HFC23 abatement in fluorochemical process
Energy Efficiency
• 1/2 gains from efficiency projects, powerhouse modernization
• 1/2 gains from changes in our processes and product mix
Greenhouse Gas Reduction
Cost
Marginal Cost of Greenhouse Gas Reduction Projects
****
++++
++++++
********
Priority For Investment
100%
20% 40% 60% 80% 100%
80%
60%
40%
20%
Environmental Benefit
Cost
The “80-20” Rule
You accomplish 80%of the environmental benefit with the first 20% of costs.
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Goals For The Current Decade
• Reduce global carbon equivalent emissions by 65% using 1990 as a base year
– Kyoto basket
• Hold total energy use flat using 1990 as a base year
– More “knowledge-intensive” products
– Reaching practical limits on yield and utilization gains
• Source 10% of our global energy in 2010 from renewable resources
– Heavily dependent upon external forces to ensure competitive pricing
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DuPont Kyoto Greenhouse Gas Reductions 1990 - 2010
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2004E 2010E
Mill
ion
me
tric
to
ns
carb
on
eq
uiv
ale
nts
Direct CO2
Indirect CO2
N2O
HFC-23
PFCs &Other HFCs
59% Reduction65%Reduction
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Why Are We Doing This?
•Climate change poses a serious long term challenge
•The human community will respond to that challenge
•That response will have dramatic economic implications
A LONG TERM ISSUEConcentration
( ppmv)1000
800
600
400
Stabilization at:1000
650
450
2X Pre- Industrial
Potential Concentration Targets
2000 2100 2200
2000
Total Emissions
( CtC/yr)
2100 22000
5
10
15
20
Toward Stabilization at:
1000
650450
Developing country
emissions
“Business as usual”
Related Emission Pathways
Total current emissions
Kyoto Protocol
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Our Business Challenge...
To Position DuPont for the Future
• Get ahead of the curve
– Ensure that DuPont businesses are positioned to compete globally in a market place increasingly dependant upon getting more from less
• Position our businesses to be part of the solution
– Gain the insight, and experience to help our industries and our customers prosper in that market place
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The Interlocking Values ofThe Interlocking Values ofSustainable GrowthSustainable Growth
