>> Sreenivasan: FOR MORE ON

EFFORTS BY COMPANIES TO

VOLUNTARILY BE MORE GREEN, I

RECENTLY SPOKE TO PAULA DiPERNA,

SPECIAL ADVISOR TO C.D.P., AN

ORGANIZATION THAT HELPS TRACK

ENVIRONMENTAL DISCLOSURES BY

COMPANIES.

THE, THE BIG QUESTION HERE: AS

THE UNITED STATES PULLS BACK ON

ITS COMMITMENTS THROUGH THE

PARIS ACCORDS, THE CLEAN POWER

PLAN, CAN CORPORATIONS STEP UP

AND FILL THAT GAP?

>> YES, THE CORPORATIONS OF THE

WORLD ARE STEPPING UP AND

FILLING THAT GAP.

FIRST OF ALL, CLIMATE CHANGE,

ADDRESSING CLIMATE CHANGE IS NOT

A PUNISHMENT.

IT'S A PHENOMENAL OPPORTUNITY TO

CREATE JOBS, AND UNLEASH

INNOVATION, AND KIND OF TRY TO

GET THE MAXIMUM EFFICIENCY OUT

OF ENERGY, WHICH IS A REAL

CHALLENGE, AND A VERY EXCITING

CHALLENGE.

SO A LOT OF COMPANIES HAVE

UNDERSTOOD THAT THIS IS AN

OPPORTUNITY, AND THEY HAVE BEGUN

TO STEP UP.

AND MANY, MANY COMPANIES, AT THE

RATE OF 150 A YEAR, SINCE THE

AGREEMENT OF THE PARIS ACCORD,

HAVE AGREED TO TAKE ON THE

SCIENCE-BASED TARGET.

THERE'S SOMETHING LIKE 450

COMPANIES THAT ARE NOW,

ACTUALLY, SETTING THEIR TARGETS

IN RELATIONSHIP TO THAT

SCIENTIFICAL.

>> Sreenivasan: ARE THESE

SCIENCE-BASED TARGETS BASICALLY

A FORM OF REGULATION, IS IT JUST

THAT IT'S VOLUNTARY?

>> WELL, IT'S VOLUNTARY IN SOME

JURISDICTIONS, LIKE OUR OWN, BUT

INCREASINGLY AROUND THE WORLD,

IT IS NOT VOLUNTARY.

SO IF YOU'RE A MAJOR COMPANY,

YOU NEED TO BE SMOOTHING OUT

YOUR OPERATIONAL COSTS ACROSS

YOUR GEOGRAPHICAL BOUNDARIES.

>> Sreenivasan: IT LOOKS LIKE

COMPANIES ARE TACKLING THIS ON

TWO FRONTS-- ON THEIR OWN

EMMISSIONS, IS ONE THING, ON

HOW THEY DO BUSINESS.

AND THEN ALSO, THE PRODUCTS OF

THE BUSINESS THEMSELVES.

GIVE US A COUPLE OF EXAMPLES.

>> YES, SO, I MEAN, YOU TAKE,

FOR EXAMPLE, L'OREAL OR WALMART.

I MEAN, WALMART HAS A GOAL OF

REDUCING EMMISSIONS BY A

STAGGERING NUMBER OF TONS

THROUGHOUT ITS SUPPLY CHAIN.

AND I THINK WE ALL KNOW AS

CONSUMERS THAT IT'S INCREASINGLY

DIFFICULT TO GO AND BUY

SOMETHING WHERE YOU'RE NOT

CONFRONTED WITH THE GREENHOUSE

GAS POTENTIAL, OR THE CARBON

FOOTPRINT.

IT'S A LITTLE BIT LIKE WHEN YOU

BUY SANDWICHES, AND IT'S

SUDDENLY TELLING YOU THE

CALORIES, YOU KNOW.

YOU KIND OF THINK TWICE.

WELL, DO I REALLY NEED BOTH OF

THOSE SANDWICHES, OR SHOULD I

JUST HAVE ONE?

>> Sreenivasan: THERE SEEMS TO

BE A NECESSARY ALIGNMENT HERE

BETWEEN THREE DIFFERENT

STAKE-HOLDERS.

YOU'VE GOT THE MANAGEMENT OF A

COMPANY, THE INVESTORS IN THAT

COMPANY, AND THEN ULTIMATELY,

THE CONSUMERS OF THE PRODUCT,

WHO ALL HAVE TO HAVE SOME LEVEL

OF VALUE FOR A COMPANY TO START

TO MAKE THESE CHANGES.

>> YEAH, WELL, THAT'S WELL PUT.

I MEAN, IF YOU THINK ABOUT A

SLOT MACHINE, YOU KNOW, YOU WANT

TO GET CHERRIES ALL ACROSS, SO,

THE CHERRIES ALL ACROSS IN

CLIMATE CHANGE IS LINING UP

SCIENCE, POLICY, AND CAPITOL.

SO, INVESTORS ARE INCREASINGLY

LOOKING AT, YOU KNOW, IS A

COMPANY ORGANIZED WELL FOR THIS

SCIENTIFIC IMPERITIVE?

WHICH MEANS REDUCING EMMISSIONS.

REDUCING EMMISSIONS IS AN

OPERATIONAL AND FINANCIAL TOOL.

IT'S A WAY OF GAUGING, IS THE

COMPANY WELL MANAGED?

JUST THE WAY WE'RE NOW LOOKING

AT WHETHER A COMPANY HAS

DIVERSITY ON ITS BOARD.

BLACK ROCK, ONE OF THE LARGEST

INVESTORS IN THE WORLD, THE

CHAIRMAN HAS CALLED ON ALL OF

THE COMPANIES IN WHICH THEY

INVEST TO BE ADRESSING AND COME

INTO COHERENCE WITH THE PARIS

AGREEMENT.

VOLUNTARY ENVIRONMENTAL

DISCLOSURE, WHICH C.D.P.

PIONEERED, IS NOW INCREASINGLY

GOING TO BECOME MANDATORY AROUND

THE WORLD THROUGH WHAT IS CALLED

THE TASK FORCE ON CLIMATE

RELATED DISCLOSURE, WHICH MEANS

THAT YOU HAVE TO TELL YOUR

INVESTORS HOW YOU'RE MANAGING

CLIMATE CHANGE, OR SUFFER THEIR

ANGER.

AND THEY MAY DIVEST, THEY MAY

SELL THEIR STOCK, AND YOU KNOW,

JUST AN INTERESTING FACTOID:

ABOUT TWO YEARS AGO, ONE IN $12

INVESTED IN THE UNITED STATES

WAS SCREENED FOR ENVIRONMENTAL

OR SOCIAL IMPACT, OR GOOD

GOVERNANCE.

TODAY, THAT NUMBER IS ONE IN $5.

THAT MEANS THAT INVESTORS ARE

REALLY LOOKING TO MANAGE CLIMATE

CHANGE, SO ON SOME LEVEL, THE

ECONOMY IS GETTING A LOT GREENER

THAN WE THINK.

IT'S JUST THAT WE HAVE TO DO A

TREMENDOUS AMOUNT MORE.

WE'RE TALKING ABOUT MILLIONS OF

TONS THAT HAVE TO BE EITHER

STOPPED FROM RISING OR REMOVED

FROM THE ATMOSPHERE, ONE WAY OR

ANOTHER.

>> Sreenivasan: IN THESE

VOLUNTARY DISCLOSURES, HOW DO

YOU TRUST BUT VERIFY TO MAKE

SURE THIS ISN'T, YOU KNOW,

ESSENTIALLY A MARKETING PLOY TO

TRY TO GREEN-WASH AND IMPROVE

THEIR IMAGE, THAT THEY'RE

ACTUALLY DOING WHAT THEY SAY

THEY'RE GOING TO DO?

>> THERE'S A LOT OF SKILL WITHIN

THE COMPANIES TO LOOK AT THIS IN

MANAGEMENT, MANAGE IT.

THERE'S A BIG INDUSTRY-- AGAIN,

OPPORTUNITY, JOBS-- OF

CONSULTANTS WHO HELP THE

COMPANIES.

BUT ON THE THING ABOUT

GREEN-WASHING, I THINK WE MIGHT

OVERSTATE THE DEGREE OF

GREEN-WASHING, IN THE SENSE OF

OUTRIGHT LIE, BUT I THINK THAT

THERE PROBABLY ARE A NUMBER OF

PEOPLE WHO DON'T REALLY, FULLY

GET THE MAGNITUDE OF THE

CHALLENGE, IN TERMS OF THE

TONNAGE.

BUT BY THE SAME TOKEN, IF

EVERYONE IS DOING A LITTLE BIT,

THEY'RE GRADUALLY UNLEASHING

THAT, UNLOCKING THAT POTENTIAL

TO REVEAL NEW OPPORTUNIES FOR

EFFECIENCY, NEW PRODUCTS.

YOU KNOW, IT'S VERY EXCITING.

A LITTLE THING LIKE A FROST-FREE

MEMBRANE, THAT DOESN'T SOUND

GLAMOROUS, BUT A FROST-FREE

MEMBRANE IN A REFRIGERATOR OR

A FREEZER REALLY REDUCES THE

ENERGY DEMAND OF THAT PRODUCT.

SOMEBODY'S OUT THERE INVENTING

THAT, AND SOMEBODY'S OUT THERE

TRYING TO INVENT A BETTER ONE.

AND YOU CAN GO THROUGH ALMOST

EVERY LITTLE UNGLAMOROUS WIDGET

AND, IT'S A COMBINATION OF

ENGINEERING, IMAGINATION.

IT'S ALL VERY EXCITING.

WE HAVE TO RE-- RETROFIT,

RE-FIT, RE-DO, RE-DESIGN, JUST

ABOUT EVERYTHING IN THE WORLD.

>> Sreenivasan: ALL RIGHT, PAULA

DiPERNA, THANKS SO MUCH FOR

JOINING US.

>> THANK YOU VERY MUCH.