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Tackling Climate Change Is Great for Profit, Says New Report

Date
06 October 2005
Tackling Climate Change Is Great for Profit, Says New Report

Huge savings have been made from companies' efforts to reduce their greenhouse gas emissions and by becoming more energy efficient, according to findings in The Climate Group's 2005 Carbon Down Profits Up released today. A significant $11.6 billion saving has been reported by 43 companies. There is an estimated further potential saving of $894 million to customers, through product use and energy efficiency. The 2005 report has been published on the second day of a major business conference in London on climate change.

The Climate Group hopes that by identifying, documenting and sharing what's happening on emissions reduction, it will create new momentum for other government and business leaders to take meaningful action on climate change. "In publishing the second edition of Carbon Down Profits Up, The Climate Group is able to show how much progress is being made. We are delighted that the information contained in the report reveals that an even greater number of countries, regions, cities and companies are reporting on action to tackle global warming," said Dr Steve Howard, CEO of The Climate Group.

"Every new activity we identify and share, adds an essential element to the debate. By demonstrating the growing momentum with simple reliable facts, we hope that Carbon Down Profits Up will continue to encourage government and business leaders to take up this global challenge," he added. "The Climate Group's strong message that carbon reduction goes hand in hand with profit creation, has already resonated with policy makers, commentators and decision makers around the world. The economic viability of reducing our carbon impact on the world is now clear for all to see."

This report has been sponsored by HSBC Holdings plc.

Summary information in the REPORT as follows:

CORPORATES
74 Companies (including 28 US companies)
18 Sectors
11 Countries (US, Japan, UK, Germany, Canada, Netherlands, Australia, France, Switzerland, Italy, and Finland)

This year 4 companies - from 4 sectors - have achieved absolute GHG reductions of 60% or more -- Bayer, BT, DuPont and Norske Canada, with total gross savings of US$4 billion.

25 companies - from 12 sectors - have achieved absolute GHG reductions of 25% or more -- 3M, Alcoa, BASF, Caterpillar, Deutsche Bahn, Deutsche Telekom, Dow, HP (PFC), HVB Group, IBM, Interface, Kirin Brewery, Nissan, PG&E (SF6), Prudential, Royal Bank of Scotland, STMicroelectronics, Telecom Italia, Tembec, Unilever and Westpac (plus list above) with total gross savings of US$10.9 billion.

CITIES
34 Cities
10 Countries (US, Germany, UK, Canada, Australia, Denmark, Finland, Netherlands, Spain, Sweden)

Total gross savings to cities (including city corporation and wider municipality) through emission reductions and energy efficiency US$745 million.

Highest reduction still comes from Woking 77.4% between 1990 and 2004.
Seattle is a close second with GHG emissions reduced by over 60% between 1990 and 2005
Highest cost saving reported was from the US city of Portland -- over US$300 million saved by the city and its residents.

REGIONS
16 Regions
5 Countries (US, Australia, Canada, Germany, Brazil)

Regions are beginning to report on emission reductions and estimating the potential benefits of programmes to address climate change and energy use.

Savings achieved by regions total US$20 billion, with additional projected savings of US$58 billion from programmes that will reduce GHG emissions.

Most of these savings come from California which estimates - US$20 billion already saved in natural gas and electricity expenditures; US$57 billion additional savings expected by 2011. Most interesting development on the regional government level is the increased focus on regional emissions trading in Australia and the US, both which are not Kyoto signatories.

Carbon Down Profits Up is available from www.theclimategroup.org or call +44 1932 268309.

For interviews/press enquiries please contact Denise Meredith on +44 208 288 0751/+44 7930 531128.

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