December 21st, 2009 by Amit Chatterjee

While expectations were low for a binding agreement to come out of Copenhagen, the deal reached at the conference marks a promising milestone by major countries coming together to form an agreement. This is clearly a marathon and not a sprint, the only question being how far along the race course are we?  While the global warming clock is ticking, it’s encouraging that real progress is being made. What seems clear is alignment on the need for a global framework, which helps set the rules of the road for business – where the rubber hits the road when it comes to addressing climate change.  The post-carbon economy is coming.

For a summary take on the conference and outcomes check out the post-conference thoughts below that I shared with Bruce Richardson of AMR Research, posted on their The Future of Enterprise Software blog.

• I estimated that the event drew over 40,000 attendees and observers, including 30,000 from nongovernmental organizations, 5,000 government delegates, 5,000 from businesses, and a smattering of celebrities. While most of the business attendees were from the sustainability or energy management departments, I estimated that there were 200 to 300 CEOs and C-level executives.

• The utility industry was well represented. Several European governments are considering offering incentives to the utilities in exchange for helping enterprises consume less energy and/or decrease greenhouse gas (GHG) emissions. There was a lot of discussion about providing businesses with real-time data on energy consumption.

• Tied to operational efficiency, brand, and risk mitigation, carbon management is quickly emerging as a core element of corporate strategy. This is different than 12 months ago, when most of the focus was on compliance.

• Unilever and Coca-Cola jointly released a new consumer goods value chain how-to guide, “Moving Fast to a Cleaner Climate.”

• I saw tremendous alignment among the business leaders present on the need for a global framework and setting a price on carbon.

• While most of the press attention was focused on GHG, water was top of mind for many attendees. The combination of a rise in temperatures and lack of potable water could turn regions like Africa into “an incinerator,” as one attendee described it. For CPG companies, the primary issue is water conservation and reuse, while semiconductor manufacturers are worried about wastewater.

• MRV is the newest acronym. It stands for measure, report, and validate.

• Organizers will be hosting a follow-on event in July in Mexico City. There was some discussion about a return to Copenhagen.

December 11th, 2009 by Amit Chatterjee

I woke this morning wanting to summarize my first week in Copenhagen, highlighting the key aspects of the whirlwind of discussions, activities, and events I’ve participated in, and of course the implications of what is going to help cleantech. By 9 am this morning, that was thrown out the door.

While I was attending the WBCSD event for business leaders, Yvo de Boer, Executive Secretary for the UNFCCC challenged the role of business in climate change negotiations. He argued that at COP15, the voice of business was not represented during the negotiations and business was to be blamed for its lack of impact.

In fact, many of the businesses at the conference, including Duke Energy, Coca-Cola, Unilever, and E.On, have comprehensive plans and thoughtful ideas to impact climate change and the on-going negotiations. Needless to say, after Mr. de Boer’s comments, the audience was buzzing.

In a working group of 22 CEOs, including myself, we began to highlight why business has a critical role and voice. While not perfect, the role that business currently plays does matter:

1. Business can create a predictable, stable framework for carbon that government or NGOs cannot
2. Business can leverage capital more effectively and efficiently to launch new technologies on a global scale in the marketplace
3. Business understands that for the value chain to work, suppliers and consumers must collaborate to decrease the creation of carbon

I will readily admit that business would benefit from a more unified voice to the COP 15 delegates vs. numerous conflicting perspectives, but to say that business has not contributed to this effort is to ignore the very operational mechanism that will be required to make climate change a reality. You need operators.

And of course on cue, Coca-Cola and Unilever launched a supply chain initiative for consumer packaged goods at this event. Their goal is to tackle 5 billion tons of emissions emitted in the consumer packaged goods space. I find it fitting that business is responding the way it usually does, with action.

December 10th, 2009 by Amit Chatterjee

Since we started talking about Copenhagen, many people have been asking what we are doing at COP 15. With that in mind, we wanted to share information on an event that we are holding in Copenhagen on December 14, The Post-Carbon Economy: The View From Silicon Valley. Join me and leaders from the investor community, industry, government and NGOs for a reception and lively discussion to include:

• Why climate change and pricing carbon forever changes the economics of virtually every product and service.
• How leading companies such as Coca-Cola, News Corporation and the City of San Jose are already driving sustainability strategies across their enterprises
• Best practices and technologies that organizations can leverage to grow, profit, and compete while minimizing environmental impact

If you will be at COP 15 or are already here and interested in attending, please let us know using the comments below or send us an email and we will provide you with more information. We look forward to the possibility of seeing you at the conference.

December 8th, 2009 by Amit Chatterjee

To go or not to go… to COP 15? That’s the question we’ve been getting from many customers, partners, and investors for the past five months.  Is it relevant? Will anything really come out of it? Will the gathering of world leaders and great minds lead to agreements that would impact our customers, or will it result in a non-event?

We’ll be there – I board a plane for Copenhagen tomorrow. We made the decision to go before President Obama confirmed his presence and well before the EPA announced its landmark stance on greenhouse gases. Why? Because we see COP 15 like a water station in a marathon and we’re pacing for a long race.

Regardless of what policymakers determine, or what you think about Climategate, or where you stand on the naysayer-to-believer scale, we believe reducing greenhouse gas emissions isn’t just good for the environment – it’s good for business. For business leaders, carbon reduction isn’t about politics or an issue of corporate social responsibility. It’s becoming an operational and fiduciary imperative, particularly for those organizations that want to compete for the long term. Ultimately, it will be organizations, not governments, who will lead the charge in moving from a priced carbon economy to a post-carbon economy.  (For more of my thoughts on the topic, read yesterday’s editorial at Forbes.com).

For Hara, COP 15 is less about the end goal than about an opportunity to play a role in driving the conversation forward and helping bridge the gap from 2009 to the 2012 goals. We see an opportunity to stand alongside business and government leaders to work towards the new agenda. And whatever ultimately emerges from Copenhagen, we’re looking forward to bringing the view from Silicon Valley.

So, what do you think about COP 15?  We’d love to hear your thoughts.

Amit Chatterjee

CEO