Reducing a Heavy Carbon Footprint

A major US energy company asked Analysis Group to devise a strategy to establish voluntary commitments to reduce its carbon footprint -- the amount of emissions for which the company is responsible -- while protecting profits.

As part of advising our client on potential approaches to carbon footprint reduction within the context of continued profitability, we:

• Developed and assessed alternative approaches to measuring the company's carbon footprint (including addressing what types of emissions are included, how to include emission reductions from avoided energy production and use, and how to address emissions offsets in the program);
• Advised on different ways the company could "commit" to voluntary reductions (such as binding and nonbinding commitments), given different financial and physical resource implications of the different approaches;
• Consulted on communications strategies to raise consumer awareness of voluntary commitments, including potential utility partnership with environmental groups; and
• Assisted in identifying how the design of different national climate policies might affect the company and its competitors, with or without its voluntary commitments.

Based on our recommendations to the CEO, our client was able to outline a realistic plan for committing to carbon footprint reduction.