Government organizations and private sector businesses need to realize that greenhouse gas management can no longer be viewed as a tactic to appease socially conscious citizens or shareholders but rather should be recognized as a critical component of long term organizational success.

Over the next two blog entries will discuss how a greenhouse gas management program mitigates the risks associated with future regulatory changes and its usefulness as a cost management metric.  We will also briefly explain the basics of the greenhouse gas management process.

Regulatory Pressures

The threat of global warming and climate change is being taken more seriously by the general public and government officials.  As a result, regulations are becoming more aggressive in their reduction targets and timelines. A good example of this is President Obama’s 2009 EO 13514.  EO 13514 introduces new greenhouse gas (GHG) emissions management requirements, expands water reduction requirements for federal agencies, and addresses waste diversion, local planning, sustainable buildings, environmental management, and electronics stewardship. Organizations unprepared to adapt their business operations to increasingly aggressive regulations put themselves at a competitive disadvantage and risk heavy fines or penalties.  Being proactive now will ensure that organizations can effectively adapt to new regulations in the future.

Cost Management Metric

An understanding of your greenhouse gas emissions will allow you to identify inefficiencies in your operation and lower the cost associated with those inefficiencies.  Categorizing and quantifying emissions can yield valuable insight into your energy expenditures and provide justification for implementing new energy saving programs.   In addition to the direct benefit of cost reduction, a green house gas management program also serves to mitigate the risks associated with the price volatility of fossil fuels.  Greenhouse gas emissions are a measure of the intensity of fossil fuel use.  As fossil fuel prices become more volatile, organizations cannot afford to not have an understanding of their emissions. Managing greenhouse gas emission will allow organizations to reduce the amount of fossil fuel consumed and, as a result, lower the risks associated with fossil fuel price volatility. 

Coming Up Next:

Join us tomorrow as we explain the basics of the greenhouse gas mangement process. 

Let Us Hear From You:

How is your organization being proactive to ensure effective adaptation to new regulations in the future?  What do you think about the usefulness as a cost management metric?

Tim Fain is an Associate Partner and Service Area Leader within IBM’s Global Business Services Public Sector. Mr. Fain has more than 30 years of technical, managerial, and consulting experience. Specifically his experience involves developing organizational, economic development and environmental and energy sustainability strategies; improving business models and processes; and helping organizations develop transformation roadmaps. He uses his extensive knowledge of Federal regulatory and budgetary processes, e-Government principles and methodologies, and strategic planning to help public sector clients address policy, service, and transformational challenges.

Prior to joining IBM, Tim spent eight years at the Office of Management and Budget where he worked on a broad range of Federal government information technology and policy issues. A former US Navy Submarine Officer, Tim holds a BS in Metallurgical Engineering, a MA in National Security Studies, and a MPP in International Trade and Finance.

Tim Fain (tfain@us.ibm.com)

Brian Dunne is a Consultant with IBM’s Strategy and Innovation practice. He has been actively involved in S&I’s environmental offerings development since he joined IBM in 2009. Mr. Dunne studied Economics and Political Science at James Madison University. Brian Dunne (Brian.Dunne@us.ibm.com)

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