Ernst & Young and Greenbiz Group Survey Released: 2013 Six Growing Trends in Corporate Sustainability

Recently, Ernst & Young "a global leader in assurance, tax, transactions and advisory services" and Greenbiz Group, an information service provider that assits companies to "integrate environmental responsibility into their operations" released a collaborative survey titled, 2013 Six Growing Trends in Corporate Sustainability (2013). According to the press release for 36-page document available here:

Despite the decreasing likelihood of regulation to address climate change — at least in the United States — greenhouse gas reporting and reduction efforts remain strong, and interest in water usage, efficiency and stewardship is on the rise.

Also rising is stakeholder interest in the sustainable sourcing and availability of raw materials intrinsic to a company’s ability to operate. And sustainability-focused surveys and questionnaires from customers, NGOs, investor groups, analysts, media organizations and others continue to grow in importance.

These trends suggest that sustainability efforts are now well-integrated into the corporate fabric of a growing number of large and midsized companies.
But the effectiveness of such efforts may be limited by internal systems that don’t allow companies to effectively measure, track and optimize their sustainability impacts, or to understand and manage the risks of insufficient action. To do so will require new levels of engagement by the C-suite, and more sophisticated methods of sustainability reporting and assurance. 

Passing the starting line: nuclear construction risk -- Ernst & Young

This report from Ernst and Young finds that there is a growing momentum for investment in nuclear power, with 65 reactors1 under construction in 15 countries, a further 120 being actively pursued and many existing reactors being refurbished.

These major capital projects come with a multibillion-dollar price tag and a correspondingly high level of risk. To attract investment and earn a good rate of return, the nuclear industry needs to demonstrate that it can deliver these projects on time and on budget. Unfortunately, its track record in previous phases of investment has been weak. Should a significant number of these new projects fail, the entire industry could be penalized with higher financing costs and fewer investors.

The key is to focus on areas that matter the most, and to build in flexibility from the onset; for example:
• The regulatory environment: this represents one of the greatest risks to prospective nuclear new build, as changes can have a large impact on the viability of projects. We look at the importance of modeling the various contingencies that have to be built in from the start.
• Lack of planning: the classic mistake in the nuclear industry is to skimp on planning and rush into construction, but it’s in the early phases that project owners have the greatest chance to influence the project’s success.
• Operational experience: many utilities do not have the organizational expertise to deliver major capital programs due to the lack of recent experience with large-scale construction projects. Bringing in the right expertise to manage these projects is essential.

Renewable Energy Country Attractiveness Indices -- Ernst & Young

Issue 27 of the Country Attractiveness Indices sees a new world order emerging in the clean energy sector – with China now the clear leader in the global renewables market, and also the inclusion of four significant new entrants to the CAI: South Korea, Romania, Egypt, and Mexico.

China’s record spending on its wind industry this quarter represented nearly half of all funds invested in new wind projects around the world. South Korea leads the new entrants to secure 18th position, on the back of its ambitious targets, strong incentives, and robust supply chain. Romania and Egypt both achieved a ranking of 22 as a result of their fast-growing wind markets, while Mexico completes the new line up, ranking 25th, benefiting from challenging targets and strong wind and solar resources.

The lead article discusses progress post the credit crunch, highlighting the differing pace of recovery between Western and BRIC (Brazil, Russia, India and China) nations, and analyzing the effect of commodity and carbon prices. This issue is supplemented by a technology focus article on solar CSP, discussing the key markets, the four major technologies, regulatory drivers and recent news.

Carbon capture and Storage Country Attractiveness Index -- Ernst & Young

The Ernst & Young Carbon capture and storage country attractiveness index provides scores for national energy markets, energy infrastructures and their suitability for CCS technologies. The index provides scores out of 100 and is updated on a regular basis. The methodology is based on the long running Ernst & Young Renewable Energy Country Attractiveness Index.

The long-term CCS index considers structural aspects of the energy market in each country which will impact on large-scale CCS deployment beyond 2015, such as the proportion of coalfired generation and proximity to geological storage. The nearterm CCS index takes a view until 2015 on the attractiveness of investing in CCS demonstration projects.