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The Journey to Sustainable
Growth:
DuPont’s Energy and Greenhouse
Gas Reduction Goals
(Image or color to replace
gray area)
Michael Parr
NGA Workshop
February 28, 2002
•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
NGA Workshop
Page 2
Sustainable Growth
“Creating shareholder and societal value while
decreasing our environmental footprint”
…. along the value chain
Chad Holliday - 1999
NGA Workshop
Page 3
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.
NGA Workshop
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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
NGA Workshop
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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
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%
‘90
DuPont Early Reductions
+50
BAU
+25
0
-25
Impact of DuPont
Early Actions
-50
-75
1990
1995
2000
2005
2010
2015
%
‘90
DuPont Early Reductions
+50
BAU
+25
0
-25
Impact of DuPont
Early Actions
-50
Environmental
Benefit
-75
1990
1995
2000
2005
2010
2015
%
‘90
DuPont Early Reductions
+50
BAU
+25
0
-25
Impact of DuPont
Early Actions
-50
Credit?
-75
1990
1995
2000
2005
2010
2015
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
NGA Workshop
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Marginal Cost of Greenhouse Gas Reduction Projects
Greenhouse Gas
Reduction
+
+
+
+
+
*
*
Priority For Investment
*
Cost
Environmental
Benefit
The “80-20” Rule
100%
80%
You accomplish 80%
of the environmental
benefit with the first
20% of costs.
60%
40%
20%
20%
40%
60%
80%
100%
Cost
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
NGA Workshop
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DuPont Kyoto Greenhouse Gas Reductions 1990 - 2010
30.0
25.0
Million metric tons carbon equivalents
PFCs &
Other HFCs
20.0
HFC-23
15.0
59% Reduction
65%
Reduction
N2O
10.0
5.0
Indirect CO2
Direct CO2
0.0
1990
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1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2004E
2010E
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
NGA Workshop
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A LONG TERM ISSUE
Concentration
(ppmv)
1000
Kyoto
Protocol
Potential Concentration Targets
Stabilization at:
1000
800
650
600
2X PreIndustrial
450
400
2000
Total
Emissions
( CtC/yr)
20
2100
2200
Related Emission Pathways
“Business as usual”
15
10
Total
current
emissions
Toward
Stabilization
at:
1000
5
Developing
country
emissions 0
650
450
2000
2100
2200
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
NGA Workshop
Page 17
The Interlocking Values of
Sustainable Growth
NGA Workshop
Page 18