Expert People. Better Decisions. XCG Carbon Management Program April 19, 2011 Energy & Environmental FORUM by Richard Rush

Presentation Outline Background Information Carbon Footprint Definition and Boundaries Overview of XCG Corporate Sustainability Program XCG Carbon Emissions Baseline 2008 & 2009 Challenges, Opportunities and Results to date Next Steps

Why are They Going Green! Chinas city of Rizhao RICA COSTA

Views of Our Fragile Planet The scientific evidence is now overwhelming: climate change represents a very serious global risk, and it demands an urgent global response.

The Debate is Over …

Top 4 Reasons for Going Green 1.Socially Responsible- ethical/environmental 2.Going green boosts sales and profits 3.Positioning for coming carbon regulations and taxes 4.Cutting carbon/energy cuts cost – directly

XCG Reasons for Going Green As an Environmental Consulting Firm XCG is committed to being a leader in Sustainability. In June 2009 we joined Sustainable Waterloo and set an aggressive goal of being Carbon Neutral by 2019.

Carbon Footprint A carbon footprint is defined as the total amount of greenhouse gases produced to directly and indirectly support human activities, usually expressed in equivalent tonnes of carbon dioxide (CO2) (in a given time, i.e. per year).

Carbon Footprint Greenhouse gas (GHG) inventory Statement of an organizations GHG sources and emissions But remember– almost everything has a carbon footprint

Carbon Footprint of a milk

ISO GHG Protocol

SW Carbon Accounting Tool Capital Investments Management practices Occupant behaviour Weather conditions Space usage Building age Provincial electricity grid

Key Carbon Footprinting Questions 1.What are the organizational boundaries? 2.What are the operational boundaries? 3.How are organizational changes accounted for? 4.Are performance metrics normalized or not?

XCG Kitchener Office

XCG Organizational Boundaries 5 offices – Kitchener, Oakville, Kingston, Edmonton, and Cincinnati. Canada and US – different corporations For SW RCI could just do Kitchener? Decision to do entire XCG Organization

Operational Boundaries

XCG Operational Boundaries Scope 1 – Owned and Controlled XCG– Heating, and company owned vehicles Scope 2 – Purchased – all offices Scope 3 – Indirect – Business Travel; Employee Commuting; Waste; Water

Absolute vs Intensity Based Absolute GHG is Tonnes of CO2e (period!) Intensity based could be GHG emissions: per employee; per area of facility; per unit of production; per $ of revenue; per billable time. XCG 2010 Absolute Reduction was approximately 16%

Intensity Based Reduction - area Office Square Foot Current Old Moved Cincinnati 4,037 3,494 Jun-09 Edmonton Oct-10 Kitchener 8,000 8,000 Kingston 4,300 3,400 Oct-08 Oakville 10,000 10,000 Total 27,757 26,314 Average GHG in baseline T CO2e/ Sq. Ft. Average GHG in T CO2e/ Sq. Ft reduction (intensity) = 19%

Effect of Employee Growth January 2008 = 73 Average 2008 = 79 Average 2009 = 81 Combined base = T CO2e / employee Average 2010 = T CO2e / employee 2010 GHG reduction (Intensity) = 21% Average if no growth = 4.4 T (15%) XCG selected Absolute Reduction for SW

Normalized Data - temperature MEAN TEMPERATURES -- Kitchener Nov Dec Jan Feb Mar Mean

XCGs Sustainability Statement We will operate in a sustainable and environmentally and socially responsible manner in every location and aspect of our business, with a goal of becoming a carbon neutral organization by 2019.

Main Components of XCG Sustainability Strategy 1.Part 1 - Internal Greening Program Based on SW RCI Program Carbon Management Plan Community Outreach 2. Part 2 - Sustainable Solutions Practice Reorganizing existing services New Sustainability Services

XCG Window of Sustainability Decision Matrix- capital and O&M costs - environmental impacts - energy consumption - GHG emissions - water use - waste generation - social implications - cultural considerations

XCG Baseline Carbon Footprint 2008 & 2009 combined base year: 417 T CO2e XCG Scope 1 and 2 emissions include: Fleet, heating, and electricity XCG Scope 3 emissions include: Business travel, employee commuting, and water

XCG Annual CO2e by Office

XCG Annual CO2e by Source

Emissions by vehicle type

Largest CO2e Contributors 1. Employee Commuting 2. Business Travel 3. Electricity & Heating 1. Kitchener Office – 2009: 150 tonnes 2. Oakville Office – 2009: 175 tonnes

Main Components of XCG Carbon Management Program Measuring XCG GHG emissions (carbon footprint) Forming and Training Green Teams Green Team Meetings and Conference calls XCG Carbon Management Work Plan XCG Carbon Management Work Plan Developing potential carbon reduction plans Implementing GHG reduction projects Greening XCGs IT Internal Communications and Training Internal Newsletter

Corporate Challenge

Its About the People

2010 Carbon Management Plan A Work Plan has been developed to gradually meet our goal of Carbon Neutrality by Detailed Work Plan focused on methods to reduce travel and to support telecommuting and teleconferencing. Telecommuting policy drafted and supported by IT. Green Teams started 7 projects Sustainable Procurement Policy being developed. Community Involvement Initiatives

XCG 2010 Carbon Footprint Total 2010 Emissions = T (66 T or 16% absolute reduction) 1.Commuting reduction = 99T 2. Business Travel reduction= 2T 3. Heating: Oakville and Kitchener 10T reduction (increased fleet, staff, and Cincinnati office size)

XCG TELECOMMUTING POLICY 1. Objective – reduce carbon emissions without compromising quality and security of services. 2. Definition - working at home or other location linked to main office by telecommunications and computer technology. 3.References Transport Canada Commuter Options Guide, Chapter 8 Canadian Telework Association Canadian Centre for Occupational Health and Safety: OHS Answers – Teleworking/Telecommuting

XCG TELECOMMUTING POLICY Eligibility / Criteria Teleworking Options Responsibilities(HR, Management, Employee) Agreement of Conditions Telecommunications and computer technology

XCG IT Greening Initiatives 1.Remote systems access\VPN 2.Video\Web conferencing 3.Server Virtualization 4.Hardware Ever-Greening 5.LED monitors 6.Eco friendly Fonts 7.Double sided printing

Enabling Work from Home

Enabling Video Conferencing

XCG IT Greening Initiatives 1.Remote systems access\VPN 2.Video\Web conferencing 3.Server Virtualization 4.Hardware Ever-Greening 5.LED monitors 6.More laptops. 7.Eco friendly fonts 8.Double sided printing

Green Computers = 6 X more efficient than Carbon Busters Home Energy Handbook, p. 85

Unplug It Carbon Busters Home Energy Handbook, p. 85 Turn off lights and computers Cut Phantom Loads Cut Vampire Loads Use smart power bars

Example Green Team Initiatives Commuting calendar has been posted in each office Carpooling - working on a system to ID where people live and coordinate car pooling Office wide energy efficiency policy is being produced to educate office staff Re-programming the HVAC systems Window films, turning off appliances; using timers, improving natural light in Cincinnati Office lighting update in Oakville Several community outreach initiatives

Summary XCG is committed to be carbon neutral by 2019 Joining Sustainable Waterloo was a key part of our Corporate Sustainability Strategy. XCG is making steady progress with our carbon footprint reduction. Significant capital investment will be needed to meet our long term goal. --- i.e., more IT technology, and renewable energy. XCG now delivers Energy Audits, GHG inventories and Sustainability Consulting Services, and enhanced traditional services. (i.e, Site Assessment & Remediation)

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Carbon Footprint Facts Producing a PC uses 2 Tonnes of materials and generates 220 lbs of CO2e Incandescent = 10 CFLs = 100 LEDs Saving 1 gallon of gas = 20 lbs of CO2e Switch 1 bulb to CFL in NA= 1 million cars off road In NA food ingredients travel 1500 miles Using wood vs cement saves GHG Unplugging appliances can save 10% electricity

Green Meetings are Catching On

Six Steps to Green Meetings 1.Location, Location, Location 2.Ban Plastic Water Bottles 3.Reduce Use of Virgin Paper and Minimize Waste 4.Eat Local and Organic 5.Engage the Local Community 6.Go Carbon Neutral