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ACHIEVING CARBON NEUTRALITY – Continued from page 39
followed the framework and begun their progress toward carbon neutrality. As discussed in the Realcomm webi-
nar, Ryan Tinus of Hudson Pacific Properties shared his company’s Better Blueprint for carbon neutrality focuses on achieving net zero carbon across all operations using a sus- tainable, healthy, and equitable approach. Hudson Pacific Properties is building on a strong foundation of health and energy efficiency, including third party validation through certifications and adding off-site renewables, electrification, and green energy procurement.
Similarly, Sara Neff with Kilroy Realty shared that CEO John Kilroy’s goal is to not just be a leader in ESG but to help move the market towards carbon neutrality by announcing Kilroy Realty’s commitment to carbon-neutral operations in September of 2018. For years, the company had been com- mitted to efficiency, innovation, and deployment of on-site renewables and in 2018 executed an offsite power purchase agreement to purchase 100 percent renewably-powered energy for the remainder of the energy consumption.
These successful leaders and others follow a process
that starts with a critical first step: an investigation of the portfolio and consideration of the implications, and options for determining the right approach, end goal, and timeline to climate neutrality. What is the end goal?
• Is it “net zero emissions” which refers to achieving zero carbon dioxide emissions by eliminating, reducing, and finally offsetting portfolio emissions, or “carbon neutrali- ty” which does not specifically address the elimination of carbon from the portfolio?
• What emissions scope(s) will be addressed and how will reporting boundaries be established?
• What approach makes short- and long-term business sense?
• What is the regulatory landscape for the portfolio–and what is it likely to be in the future?
• What is the carbon intensity of the portfolio’s electric grid(s)?
• What is the suite of incentives available for energy effi- ciency, electrification or developing on-site renewables?
• What interventions, in which order and over what time- frame will allow progress to be made and goals to be met in a way consistent with business needs?
• Will the goal comport with the evolving demands of regulators and investors for measurable and transparent results?
Determining the right end goal—and the milestones along the way—should be part of developing a comprehensive carbon management strategy.
The next step is developing a greenhouse gas/carbon inventory that aligns with the scope and boundaries deter- mined at the outset. An accurate and complete inventory not only sets a baseline to against which to measure (and show progress), but is an essential component in setting realistic, achievable interim targets and demonstrating ongoing credibility through tracking and reporting.
The most straight forward framework is the GHG Proto- col’s Corporate Accounting and Reporting Standard. Anoth- er framework available as companies evolve in their carbon neutrality approach is the Science-Based Target Initiative. This organization works with companies to set carbon reduction targets that are aligned with what climate science considers necessary to limit global warming to below 2°C or 1.5°Celcius as defined in the Paris Climate Accord.
After a GHG emissions inventory has been developed, opportunities to evaluate ways to reduce emissions can be assessed, prioritizing efficient operations and appropriate updating of inefficient systems and equipment as well as using innovations such as those described by Jon Schoen- feld, with Buildings IoT, and process approaches like those described by Chris Cayten, CodeGreen Solutions on the Realcomm Achieving Carbon Neutrality webinar.
All of these best practices coalesce around reducing emis- sions as the primary focus, maximizing the use of on- and off-site renewable energy sources, and then purchasing “off- sets” for the remainder of the emissions as the “last step.” As Joel Makower wrote recently in GreenBuzz, “Companies may be relying far too much on the ‘net’ and far too little about the ‘zero’; we can’t continue to run a business as usual approach and just write a check for offsets.”
Another important aspect of a carbon management plan that must be considered at the outset is the ability, willing- ness, and methodology for tracking and reporting progress.
The ability to measure consistently and identify and track key components of the plan are fundamental to reporting progress toward goals, as well as assessing and, if neces- sary, adjusting strategy to stay on track.
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