Pohjoismaisen ilmastoraportin julkistamistilaisuus Ilmarisessa 4.10. klo 9.30-12
Carbon Disclosure Project Nordic Results Launch Helsinki 4 October 2007
Tilaisuuden ohjelma 09.00 Ilmoittautuminen, aamukahvi 09.30 Tilaisuuden avaus Viestintäjohtaja Satu Mehtälä, Ilmarinen 09.35 FT 500 The Global Report CEO Paul Dickinson, Carbon Disclosure Project 10.00 Talous, politiikka ja ilmastonmuutos Eduskunnan puhemies Sauli Niinistö 10.20 Ilmastonmuutos sijoittajan näkökulmasta Arvopaperisijoitusjohtaja Mikko Mursula, Ilmarinen 10.35 First Nordic Report Key Findings Executive Vice President Ulrika Hasselgren, Ethix SRI Advisors Ab 10.50 Paneeli + yleisökeskustelu Nokian, Finnairin ja Outokummun edustajat kertovat ympäristöohjelmistaan 11.45 Closing remarks Director Amanda Haworth Wiklund, CDP Scandinavian Secretariat 12.00 Tilaisuus päättyy
FT 500 The Global Report CEO Paul Dickinson Carbon Disclosure Project
2007 Results and Key Findings Paul Dickinson, CEO October 2007 5
Context: UK Government Stern Report Climate change is expected to reduce GDP by at least 5% of each year; if more dramatic predictions come to pass, the cost could be more than 20% of GDP To stabilise at manageable levels, emissions would need to stabilise in the next 20 years and fall between 1% and 3% after that. This would cost 1% of GDP The benefits of strong, early action considerably outweigh the costs Each tonne of CO2 we emit causes damages worth at least $85, but emissions can be cut at a cost of less than $25 a tonne Shifting the world onto a low-carbon path could eventually benefit the economy by $2.5 trillion a year By 2050, markets for low-carbon technologies could be worth at least $500bn 6
Carbon Disclosure Project (CDP) Background CDP Mission: To facilitate a dialogue between investors and corporations supported by quality information from which a rational response to climate change will emerge CDP provides a coordinating secretariat for institutional investor collaboration Create a lasting relationship between shareholders and corporations regarding the implications for shareholder value and commercial operations presented by climate change CDP is a not for profit organisation, independent with US charitable status 501(c)3, application to be UK charity CDP supported financially by donations, sponsorship and the governments of USA, France, UK, Australia and Sweden 7
Carbon Disclosure Project Overview Launched at No.10 Downing Street in 2000 2007 information request supported by 315 investors with assets of $41 trillion and sent to 2,400 companies Over 1,300 large corporations answer the questions Participation from blue-chip institutions globally: ABP, AIG, Allianz, Aviva, AXA, Barclays, CalSTRS & CalPERS, Credit Suisse, Goldman Sachs, HSBC, JP Morgan Chase, Merrill Lynch, Munich Re, Mitsubishi UFJ, Rabobank, Royal Bank of Scotland, UBS Now entering its sixth iteration, CDP has become the standardised GHG reporting mechanism, and hosts the largest registry of corporate GHGs in the world at www.cdproject.net Now moving into Supply Chain. Wal-Mart partnership 8
Key Findings from CDP5 FT500 Sample Highest response rate ever 77% (72%) Improved carbon accounting; more robust responses Corporatesclosing the awareness/action gap Strategic opportunities as well as risk (82%) Wide variations in risk exposure between and within sectors Increased FT500 commitment to renewables and energy efficiency FT500 CDP respondents spend $128 billion on energy 9
Carbon Beta Varies Widely Both Between and Within Sectors 30.00% CO 2 Regulatory Cost of Compliance as Percentage of EBITDA Cost of Compliance as EBITDA% 25.00% 20.00% 15.00% 10.00% 25.24% American Electric Power 21.45% Xcel 10.49% Eastman Chemicals 15.94% International & Flavours Fragrances 9.72% Alcoa Union Pacific 7.76% Mylan Laboratories 9.09% 5.00% 0.00% Exelon 1.23% Electric Power Companies - N. America PG & E 0.10% Multi-Utilities & Unregulated Power Du Pont 1.42% Diversified Chemicals Praxair 3.11% Newmont Mining 1.14% CSX Corp. 2.92% Johnson & Johnson 0.04% Specialty Chemicals Metals & Mining Surface Transport Pharmaceuticals Max case Min case 10
The First 5 Years What Have We Learned So Far? The global industrial restructuring towards a low carbon future has already begun Risks and opportunities are much more broadly and unevenly distributed than previously thought Corporations are closing the awareness/action gap rapidly Both companies and investors can in fact make money from climate change and some are already doing so For investors, climate risk has four dimensions, not just one! Analysis must consider: Risk/carbon footprint - risk management capability - market-driven upside opportunities - Performance improvement vector 11
CDP Moving into Supply Chain Corporations already responding to CDP are aware that up to 90%+ of their emissions (Retail) are held in their Supply Chains In order to develop and deliver robust and effective Carbon Management Strategies they are increasingly aware of the need to look into Supply in greater detail There is a growing body of Corporate (and Public Sector) interest in collaborating, as the investor community does, to produce a cohesive Supply Chain questionnaire CDP is working with several retail and FMCG corporations and local and national governments to deliver this work via its trusted third party status 12
Wal-Mart Supply Chain Project Due to our size and scope, Wal-Mart is uniquely positioned to have an impact on our world, perhaps like no company before The Wal-Mart supply chain is large and diverse, ranging from very small companies to FORTUNE 50 corporations. We do not yet have an accurate assessment of our supply chain GHG foot print; however, for strategy development purposes we estimate it to be 10 times the Wal-Mart GHG footprint. Over the next two years we intend to develop supplier score cards to evaluate the environmental footprint of suppliers which, we expect, to include GHG reporting Wal-Mart has 68 000 suppliers 13
New developments, Climate Disclosure Standards Board Convened at WEF in 2007 Carbon Disclosure Project provide the Secretariat Inlcudes leading authorities in corporate GHG reporting: California Climate Action Registry CERES - International Emissions Trading Association -The Climate Group -International Emissions Trading Association - World Resources Institute Plans focus on harnessing the power of the global accounting profession CDSB work plan created for 2007 to 2009 CDP in the news.. Last 10 days Wall Street Journal and New York Times as well as BBC, CNBC, Bloomberg, Reuters, FT, Washington Post, LA Times, Time Magazine, Economist, Guardian, International Herald Tribune, Forbes and many others 14
Would you like to partner with us? Carbon Disclosure Project www.cdproject.net Paul Dickinson Paul.dickinson@cdproject.net +44 7958 772864 Thank you 15
Talous, politiikka ja ilmastonmuutos Eduskunnan puhemies Sauli Niinistö
Ilmastonmuutos sijoittajan näkökulmasta Arvopaperisijoitusjohtaja Mikko Mursula Ilmarinen
Sijoitusjakauma 30.6.2007, 24,5 miljardia 8,4 % 4,7 % 41,8 % Lainasaamiset 44,6 % Joukkovelkakirjat Käteinen 0,5 % Osakkeet ja osuudet Kiinteistösijoitukset Sijoituslinjalla 62 henkilöä
Ilmarisen noteeratut osakesijoitukset 31.12.2006 Kehittyvät markkinat 14,8 % Japani 4,9 % Suomi 39,9 % USA 10,6 % Eurooppa 29,7 %
Ilmarisen vastuullisen sijoittamisen periaatteet Ilmarisen sijoitustoimintaa sääntelee viranomaisohjeiden ja -lakien lisäksi myös Ilmarisen hallituksen hyväksymä Omistajapolitiikka Omistajapolitiikka määrittelee sijoitustoiminnan vastuullisuuden periaatteet: Vähimmäisvaatimus: lainsäädäntö kansainväliset sopimukset kuten esimerkiksi: OECD:n ohjeet monikansallisille yrityksille Global Compact (YK:n ohjeistus yrityksille) ILOn ohjeet YK:n lastenoikeudet Näistä mm. OECD:n ohjeet ja Global Compact käsittelevät ympäristöasioita.
SRI-markkinan kasvu 250 200 150 100 UNPRI:n allekirjoittaneiden määrä 150 132 139 120 106 73 82 89 93 162 173 182 194 50 0 05/06 06/06 07/06 08/06 09/06 10/06 11/06 12/06 01/07 02/07 03/07 04/07 05/07 400 300 200 100 0 CDP:n allekirjoittaneiden määrä 35 95 10000 155 21000 225 31000 CDP 1 CDP 2 CDP 3 CDP 4 CDP 5 315 50000 41000 40000 30000 20000 10000 0 miljardia dollaria Allekirjoittaneet Sijoitusvarallisuus
Miten ilmastonmuutos vaikuttaa sijoituskohteiden arviointiin Ilmastonmuutos vaikeuttaa ennustettavuutta tulevaisuuden mallintaminen historiadatan perusteella vaikeutuu, ääritapahtumien todennäköisyys kasvaa Pyrittävä arvioimaan ns. yleisiä ja kaikkiin toimialoihin vaikuttavia muuttujia kuten esim. energian hintanousu ja hintaheilunta säätilan muutokset (myrskyt, tulvat ) aikajänteestä riippuen 200 600 milj. ihmistä uudelleensijoitettava ilmastonmuutoksen seurauksena kuluttajakäyttäytymisen pysyvämmät muutokset muutokset ja viivästykset lopputuotteiden ja raaka-aineiden logistiikkaketjussa tiukentuvat ympäristönormit, päästökaupan laajeneminen uusille sektoreille
Miten ilmastonmuutos vaikuttaa sijoituskohteiden arviointiin (jatkuu) Pyrittävä myös arvioimaan toimialakohtaisia asioita kuten rahoitustoimialan muuttuva toimintaympäristö ympäristöriskien arviointi osana rahoituspäätöstä investoinnit kokonaan uusille alatoimialoille + energiasektorin lisääntyvä pääomatarve päästökaupan vaikutukset toimialakohtaisesti (hyötyvät vs. kärsivät yhtiöt toimialan sisällä) autoteollisuuden haasteet malliston uudelleensuunnittelussa raaka-ainekilpailu (paperiteollisuus vastaan energiatuotanto); (ruokateollisuus vs. energiatuotanto) jne.
SWOT-analyysi ilmastonmuutoksen vaikutuksista Vahvuudet Heikkoudet Ilmastonmuutoksen vaikutukset sijoituskohteelle Luoko ilmastonmuutos uusia mahdollisuuksia liiketoiminnalle? Onko ilmastonmuutoksella myönteisiä vaikutuksia yhtiölle? Verrattuna kilpailijoihin? Ilmastonmuutoksen kulut Heikentyykö yhtiön kilpailukyky ilmastonmuutoksen seurauksena? Mahdollisuudet Innovatiivisuus/ resursointi Identifioidut mahdollisuudet vahvuuksiksi Liiketoiminnan kehittämisen kautta heikkoudet vahvuuksiksi Uhat Ilmastonmuutoksen riskit Epävarmat/ epätodennäköiset ilmastonmuutosvaikutukset Ennustettavuus heikkenee -> sijoituskohteiden arviointi vaikeutuu
Ilmastonmuutoksen sijoitusteemat Vähäpäästöinen energiatuotanto Aurinko-, tuuli- ja ydinenergia, bioenergia, kaasu, maalämpö/ vesi, jne. Energiatehokkuus ja -huolto polttoainetehokkaat autot, energian käyttöä tehostavat innovaatiot, rakennustekniset ratkaisut (mm. lämpö- ja kosteuseristäminen) Vesi, jäte ja päästöjen vähentäminen Vedenpuhdistusjärjestelmät/menetelmät, jätteiden käsittely jne. Rahoitussektori Päästökauppa, ilmastoteeman ympärille rakentuvat sijoitusyhtiöt/rahastot
Mistä sijoittaja saa tietoa? Konsulttien analyysit -> sijoittajalle räätälöityä tietoa, kustannus suhteutettavissa halutun tiedon määrään Ympäristöratingien käyttö -> soveltuu salkun riskityökaluksi, kallista tietoa Yritysten ympäristö- ja vastuullisuusraportit -> raporttien kohderyhmä on laaja === kaikkea kaikille Kansalaisjärjestöt -> tiedon luotettavuus, arvolatauksen näkyminen laadussa Sijoittajien yhteistyöverkostot (UNPRI, CDP ) -> edellyttää riittävästi resursseja sijoittajalta
Missä mennään per nyt (CDP raportti 2007) The report concluded that investor response to climate change, such as introducing strategies to profit from companies taking steps to reduce emissions, had not shown any signs of increase. The CDP said its role was to provide investor-relevant information about climate change to enable such action, but noted that: until governments take clearer action on material taxation or regulation of greenhouse gas emissions, then investors will lack sufficient incentives to act, more systematically and in greater numbers. The CDP said this came despite increased evidence of corporate awareness: 82% of companies said they saw commercial opportunities for existing and new products as a result of climate change issues, while 79% also identified commercial risks from the same phenomena. The report said investors, outside of a handful of leading pension funds, were failing to grasp the significance of regulation such as the EU carbon emissions trading system on company profits.
Yhteistyön edut Ilmarisen näkökulmasta Sijoittajien yhteisprojekti/ raportti sijoittajien näkökulmasta -> yritysten toimet ovat kehittyneet merkittävästi mutta sijoittajat eivät vielä ole suunnitelmallisesti ottaneet näitä asioita sijoituspäätöstensä tueksi Ammattimaiset ja dedikoidut raportinkirjoittajat ja tiedon analysoijat -> hyvä opetusväline sijoitusalan ammattilaisille Tehokkuuden maksimointi myös kohdeyrityksen näkökulmasta (yli 300 sijoittajaa mutta 1 lomake) Kansainvälinen tunnettuus = hyvä vastausprosentti
First Nordic Report Key Findings Executive Vice President Ulrika Hasselgren Ethix SRI Advisors Ab
Carbon Disclosure Project Nordic Report 2007 On behalf of 315 investors with assets of $ 41 trillion Summary of Key Findings Carbon Disclosure Project Nordic Report 2007 ethix SRI ADVISORS
The first Nordic CDP Report 125 largest listed companies by market capitalisation - Denmark: 24, Finland: 25, Norway: 24, Sweden: 52 Questions focus on - Climate Change Risks, Opportunities and Strategy - Greenhouse Gas Emissions Accounting - Greenhouse Gas Emissions Management & Climate Change Governance Two sections: A) All companies, B) Carbon intensive companies Carbon Disclosure Project Nordic Report 2007
Promising first performance 67% response rate: 84 of the 125 companies responded - Denmark: 50%, Finland: 72%, Norway: 67%, Sweden: 73% - CDP Global Report response rate 77% Strong response on key climate change issues such as: - identified risks and opportunities - strategies to manage risks and opportunities - disclosure of greenhouse gas emissions data However, quality of data varied considerably Carbon Disclosure Project Nordic Report 2007
The first Nordic CDP Report Airlines & Airports Pharmaceuticals & Biotechnology Construction, Engineering & Machinery Telecommunications Retail Paper & Forest Products Metals & Mining Industrial Finance & Insurance Other services Energy Real EstateManagement & Development Healthcare Electronics & IT Surface Transport Carbon Disclosure Project Nordic Report 2007 0 10 20 30 40 50 60 70 80 90 100 % of respondents
Identified risks and opportunities The potential business risks between Climate Change and Wärtsilä s products are related to regulatory emissions restrictions and change in customer attitudes for using combustion engines. Wärtsila TietoEnator As we operate IT services, the information systems we deliver to customers can decrease the environmental burden. The efficient use of IT & communication equipment can reduce the need of transport and can optimize the processes. These impacts are indirect, but as the need for saving the environment increases the need of new ways of working and doing increases Carbon Disclosure Project Nordic Report 2007
Emissions disclosure data 76% disclosed Greenhouse Gas emissions data Majority of emissions disclosed by carbon intensive sectors - Energy: 41% - Paper & Forest Products: 23% - Industrial: 19% Encouraging that many low-intensive companies voluntarily responded to the questions aimed at carbon-intensive companies Carbon Disclosure Project Nordic Report 2007
Strong awareness weak action Developing a good carbon footprint is the first step in defining business case opportunities to reduce emissions and meet our stakeholders expectations. Stora Enso Energy efficiency is an important area for continuous performance improvement at Nokia. Nokia Group Impressive awareness of climate change issues However, only 23% disclosed reduction targets and timelines Although strong climate change awareness, companies have largely failed to take action to reduce their emissions Carbon Disclosure Project Nordic Report 2007
Climate Disclosure Leadership Index Highlights best and worst practice in the Nordic region 2 sets of rankings: low intensive and carbon intensive companies 10 best low intensive companies: - Gunnebo, TeliaSonera, Ericsson, Nokia, Cloetta Fazer, Kesko, Coloplast, Getinge, Nobia, Telenor 10 best carbon intensive companies: - Fortum, Statoil, Norsk Hydro, Stora Enso, Holmen, SAAB, Trelleborg, Novozymes, Outokumpu, Neste Oil Carbon Disclosure Project Nordic Report 2007
Good foundation for tackling emissions Learning from Carbon Disclosure Leadership Index best in class peers High level of board or upper level management responsibility for climate change issues Strong platform for companies to take action to reduce their Greenhouse Gas emissions Investor influence at board/top management level Carbon Disclosure Project Nordic Report 2007
Conclusion Impressive 67% response rate in its first year High awareness level about climate change and the need for emissions reductions Weak on action especially operating reduction targets As investors begin to address climate factors more systematically, risks will be detected, and opportunities will be exploited Carbon Disclosure Project a tool for both companies and investors to address climate change Carbon Disclosure Project Nordic Report 2007
Carbon Disclosure Project Nordic Report 2007 Contact: Ethix SRI Advisors +46 8 407 00 10 ulrika.hasselgren@ethix.se Carbon Disclosure Project Nordic Report 2007 ethix SRI ADVISORS
Paneeli + yleisökeskustelu Nokian, Finnairin ja Outokummun edustajat kertovat ympäristöohjelmistaan
CDP Helsinki launch 4.10.2007 Nokia Environmental Strategy highlights Kirsi Sormunen VP, Head of Environmental Affairs Nokia Company Confidential 42 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Leadership calls for responsibility Cornerstones of Nokia Environmental Strategy Based on Nokia culture and values Life-cycle thinking Full integration to business operation Environmental and financial benefits go hand in hand Company Confidential 43 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
N95 Business = environmental benefits Nokia Talkman Nokia Cityman 120g 2007 All-in-one Functionalities of many separate products Weight only 12% of Nokia Talkman Nokia 2110 Nokia 6110 Nokia 8210 10kg 1984 770g 1987 236g 1994 137g 1997 79g 1999 Company Confidential 44 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Substance management Recycling Energy efficiency Company Confidential 45 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
ICT and climate change Use 31% EOL 0% Travel 4% Office 4% Components 39% ICT industry accounts for less than 2 % of global CO2 emissions Most of this indirect ICT and mobile technology can contribute to combating climate change Logistic 18% Manufacturing 4% Nokia s indirect and direct CO2 emissions Company Confidential 46 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Nokia Climate Strategy key targets Mobile Devices 50% reduction of Nokia chargers average no-load stand-by energy consumption by 2010 Operations and logistics Energy efficiency or CO2 reduction targets agreed with global suppliers Further optimization of global logistics mode Work and management practices Aim to reduce business travel by increasing the amount of videoconferencing and teleworking, and introducing voluntary carbon offsetting Facilities and sites Further savings up to 8% of total electrical energy consumption by 2012 vs 2005 Green energy 25% of electricity needs during 2007-2009, to 50% in 2010 Company Confidential 47 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Meeting stakeholder requirements Company Confidential 48 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Role of financial markets increasingly important Company Confidential 49 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Nokia ja CDP Are investment fund managers building climate change risk considerations into their planning? A new report commissioned by UK communications firm The HeadLand Consultancy says no. The study surveyed nineteen fund management houses overseeing nearly $6 trillion in assets about their attitudes toward climate change, its impact on their investment philosophy, and their perspective on the role of climate change regulation. It follows a report released in July 2007 by Trucost, which ranked 185 UK investment funds according to their carbon footprint. That report found 37% of funds are exposed to greater potential carbon liabilities than the FTSE All-Share Index. The HeadLand study found that fund managers see incorporating climate change considerations into their investment decisions as being outside their institutional mandate. Only those funds specifically focused on socially/environmentally responsible investing took such considerations into account. While managers are aware of the reality of climate change, the survey reported that their goal to maximize returns keeps them focused on quarterly performance as their sole priority. Climate change is beyond their event horizon. To the managers, the longest term is defined as three years, so they are not looking at 2012, let alone 2050 Company Confidential 50 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
You must be the change you want to see in the world Mahatma Gandhi Company Confidential 51 2005 Nokia V1-Filename.ppt / yyyy-mm-dd / Initials
Carbon Disclosure Project 4.10.2007 Taneli Hassinen viestintäpäällikkö, sijoittajasuhteet
Finnair kannattaa kestävää kehitystä Euroopan lentoliikenne edustaa 0,5 % maailman kasvihuonekaasuista Tuemme IATAn tavoitetta hiilidioksidin nollapäästötasosta Päästökaupan tulee olla globaalia ja kilpailuneutraalia Vapaaehtoiset lentoliikenteen päästömaksut todettu tehottomiksi Yrityksiä tulee vertailla myös ympäristövaikutusten osalta Ympäristömyötäisyys edellyttää jatkuvaa investointia moderniin kalustoon, mikä parantaa myös kannattavuutta Kulmakivinä moderni, vähäpäästöinen laivasto ja lyhimmät lentoreitit
Moderni laivasto jo 2010 Airbus A330/A340 Kaukoliikenne -11-15 konetta -270 paikkaa Airbus A319/A320/A321 Eurooppa ja kotimaa -29 konetta -105-196 paikkaa Embraer 170/190 Syöttöliikenne -20 konetta -76-100 paikkaa
Uudet koneet parantavat tehokkuutta jatkossakin Vuosina 2007-10 yhteensä enintään 15 koneen A330/A340- laivasto Vuosina 2014-16 yhteensä enintään 15 koneen A350-laivasto
Suoraan Aasiaan Seoul LYHIMMÄT LENTOREITIT EUROOPAN JA AASIAN VÄLILLÄ ALHAISIN ISTUINPAIKKA- KOHTAINEN POLTTOAINEEN- KULUTUS
Carbon Disclosure Project 04102007 Outokumpu Climate Change Combat Jorma Kemppainen www.outokumpu.com
Stainless steel a contemporary material with excellent green credentials (Cr, Ni, Fe, Mo, Mn) Corrosion-resistant High-strength Hygienic Aesthetic Low life-cycle costs Fully recyclable Catering & Household 34% Welded tubes 5% Main end use segments Other 5% Construction 15% Transport 16% Industrial equipment 25% Source: CRU, February 2007, for all CR stainless steel flat products 2006
Not all steel is stainless -global steel production Stainless steel ~28 Mtpa Top 5 global stainless steel producers By slab capacity 2006 2006-2008E Thyssen- Krupp 2.84 0.30 3.14 ArcelorMittal 2.82 0,40 3.22 Acerinox 2.73 0.35 Outokumpu 2.55 2.55 POSCO 2.10 0,50 2.60 Carbon steel ~1 200 Mtpa Source: CRU, Outokumpu
CO 2 -sources, Tornio integrate Sheffield Avesta No COgas as a source Degerfors Avesta No COgas as a source Nyby Kloster Avesta No COgas as a source CO 2 CO 2 CO 2 CO 2 Concentrate Ferrochrome plant CO 2 -sources coke -> COgas raw materials electrodes FeCr CO Steel making and continuous casting CO 2 -sources propane CO- gas raw materials alloying elements lime electrodes Continuously cast slab Hot rolling mill CO 2 -sources propane oil CO-gas Black hot rolled strip Cold rolling mill CO 2 -sources propane CO- gas Cold rolled sheet and strip ToVo Oy SMA Saxo Mineral Oy CO CO 2 CO 2 2 Needed just in emergency, when ToVopower plant is in operation Boiler house CO 2 -sources CO- gas heavy oil Steam District heat CPH Power Plant CO 2 -sources REF Woodchips Beat CO- gas oil Electrical Power District Heat Lime production CO 2 -sources lime stone oil Lime
Direct CO 2 -Emissions, 2006 (t) Tornio Integrate Avesta Integrate SMACC Degerfors Nyby Others Total ETS 733 511 44 159 - - - - 777 670 Non ETS - 107 003 44 055 26 664 16 663 77 945 272 330 Total 733 511 151 162 44 055 26 664 16 663 77 945 1 050 000 FeCr 236 623 - - - - -
Electricity, 2006 ELECTRICITY: (GWh) Tornio: 2 131 Avesta: 420 SMACC: 214 Degerfors: 57 Nyby: 58 Others: 253 Total: 3 133 FeCr: 857 SUPPLY: Renewable sources: 56 % Nuclear: 34 % Fossile and peat: 10 % Nord Pool Electricity Production 2006, 384 TWh 19 % 50 % 23 % 8 % Hydropower Other renewable Nuclear Fossile
Supply chain contributions to stainless steel CO 2 -emissions, cradle to gate Virgin Raw Materials: FeCr,FeNi,FeMo,MoO 3, Etc. Ni- containing grade Cr- Grade 9 % 20 % 91 % 80 % Site Upstream Site Upstream Source:ISSF, 2007
Measures against the Climate Change Improvements in energy and materials efficiency in production processes. Additional drivers: Energy Saving Agreements in Finland, Sweden and in the UK. Integration of the material- and energyflows in production units, waste heat recovery Use of high efficiency electrical motors and a.c.- drives Process and operations design for better energy- and materials efficiency Technical development for better equipment and installations, oxy- fuel burners, pre-heaters More efficient power generation; boiler house CPH Promoting the increase of non- fossile electricity sources, wind- mills, Rajakiiri Oy, nuclear, Fennovoima Oy Optimizing the use of recycled materials, steel and recovered waste fractions instead of virgin materials Increase the Tornio FeCr- production Participation in national, European and global steel industry- wide collaboration in development of breaktrough techniques and sequestration i.e. IISI CO 2 -Breakthrough Project, European ULCOS, Tekes Climbus.
Actual and through efficiency programs achieved CO 2 -emission savings at Outokumpu Tornio Works 1 200 000 1 000 000 Actual Emissions Avoided Emissions 800 000 t CO2 600 000 400 000 200 000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Recycled content (%) Source Americas Europe Japan Other Asia and ROW Global average Outokumpu Stainless + carbon steel ratio ISSF 2000 ISSF 2004 80 N/A 67 69 52 36 45-70 61 58,3 59,6 N/A 70,2 Stainless ratio ISSF 2004 N/A 34 16 18 25,4 44,9 The long term growth rate of use is about 5 %/a => available end-of-life products for recovery: 20 years life: 35% of today s production 30 years life: 20% of today s production Thanks to an efficient scrap recovery industry, we reach max end-of-life- material content in current products= 25%
FeCr- Supply pattern in Europe, year 2006 FeCr- Supply to Europe, 2003 kt FeCr- Production in Europe, 453 kt 10 % 2 % 2 % 3 % 22 % 12 % 4 % 8 % C.A.G.R. 4,7 % 1997-2006 30 % 54 % 53 % Production in Europe South Africa Zimbabwe Kazakhstan India Others Russia Finland Sweden Turkey Others
Outokumpu FeCr at Tornio, Climate issues Outokumpu technology is world leader in energy and carbon efficiency, 30 % better in electricity and almost 50 % better in primary carbon than the conventional technology. It is documented as Best Available Techniques (BAT Ref.) by the European Commission. Next generation on the drawing board is still better. Own orebody and mine at 40 km distance from FeCr- plant. It is already built for double production. The only practical reserves of Chrome ore in Europe are at Keminmaa and in Turkey. Definite use of CO- gas on site, which further enhances the energy effectiveness of the integrate FeCr, stainless, CHP- power plant. Favourable elecrical energy supply pattern in the Nord Pool Area. Electricity supply, South Africa Electricity supply, Nord Pool 0 % 5 % 23 % 2 % 19 % Electricity supply, Kazakhstan 0 % 12 % 0 % 8 % Source: IEA 93 % 50 % Fossile Hydro Other renewable Nuclear 88 % Source: IEA
CO 2 -savings, if 250 kt FeCr is produced at Tornio and used by European mills instead of importing it from South Africa Savings, tonnes of CO 2 Energy- and carbon benefits from Outokumpu technology and Nord Pool grid. Technology coverage in South Africa is about 55 % of the FeCr- capacity Use of CO- gas from the FeCr- process on site. In South Africa about 30 % of the Outokumpu technology based capacity is able to utilize COgas. Sea transportation from Cape Town to Rotterdam, 11 000 km. Internal rail transportation in South Africa, 1500 km Transportation from Tornio to other mills. Mixed sea and rail, 2000 km TOTAL 542 300 422 000 53 000 8000-8000 1 017 300
CO 2 -impact on electricity futures prices? 20 Eur/ MWh Spot price Forwards 27.07.2007
Closing remarks Director Amanda Haworth Wiklund CDP Scandinavian Secretariat
Carbon Disclosure Project Nordic Region Secretariat Helsinki 4 October 2007 Amanda Haworth Wiklund
Start-up and partners September 2006 Secretariat opens with seed money from Nutek October 2006 launch of FT500 CDP4 Report at Folksam November 2006 Folksam becomes Partner April 2007 KLP Asset Management becomes Norwegian Partner
Political cooperation -a vital element July 2007 Minister Maud Olofsson sends letter of support September 2007 Prime Minister Fredrik Reinfeldt addresses United Nations press briefing for CDP5 in New York
First year achievements Increase by 120% of Signatory Investors for Nordic Region 125 companies contacted and processed, additional 3 voluntary responders Cooperation with report writers results in first CDP Nordic Report
CDP6 in the Nordic Region Looking forward to more corporate and investor cooperation for CDP6 Thank you! Amanda Haworth Wiklund amanda.haworth@cdproject.net
Kiitos!