Dupont

Sector: Corporate

Carbon Footprint:

> 13,550,000 metric tonnes CO₂e (2005)

TARGETS

> 65% greenhouse gas reduction on 1990 levels by 2010
> hold energy use constant at 1990 levels
> source 10% of global energy from renewables

Achievements

> 67% reduction in CO₂e emissions since 1990
> 9% reduction in energy use below 1990 levels (during 35% increase in production)
> 3% of energy from renewables

Benefits

> $2 billion saved through increased energy efficiency
> $10-15 million saved annually through use of renewables

Low Carbon Solutions

Background

In part due to its success in addressing the depletion of the ozone layer by developing alternatives to chlorofluorocarbons (CFCs), DuPont was an early actor in addressing global climate change. As early as 1991, the company began to inventory its greenhouse gas emissions, and identify point source reductions in a number of different greenhouse gases across its global operations. 

To help reach its greenhouse gas targets in a cost-effective manner, DuPont has helped to start up several external emissions trading programmes, including the Chicago Climate Exchange and the UK Emissions Trading Scheme. DuPont believes that participation in these markets has enabled it to meet several goals, including generating cash flow to defray the cost of reductions and educating managers on the value of investing in reductions. This proactive stance has also helped the firm to develop the tools, information, and strategies necessary for competitive advantage as emissions markets develop.

In the mid-1990s, DuPont adopted an aggressive corporate energy policy focusing on three areas: maximising energy efficiency; lowering the environmental impact of energy consumption; and renewing the company’s power infrastructure. In order to achieve this, energy teams were set up across DuPont’s business units and facilities worldwide. Each month, the teams calculated detailed metrics for energy used per pound of product, and the steam and electricity usage for every building. This allowed them to see how improvements could be made in the areas of efficient lighting, heating, cooling, compressed air, and cogeneration. “Environmental stewardship was never hard to sell to DuPont’s business and plant sites,” according to a representative from DuPont. “It was a natural extension of the company’s safety culture.” DuPont’s investment in energy efficiency allowed the company to hold energy use flat between 1990 and 2000 while increasing production 35% and saving the company $2 billion.
Amongst DuPont’s climate change initiatives, energy efficiency opportunities have provided the greatest cost savings. However, despite this, the company has found that energy efficiency projects are not always a natural choice when allocating available capital within the firm. Internal rates of return (IRR) on efficiency measures tend to be lower than for many mainstream manufacturing projects, and investment in emissions reduction has been viewed by some as less ‘strategic’. To lower the barriers to implementation, DuPont plans to identify projects with IRRs greater than 20% by extending responsibility for the energy saving programme to the Asset Productivity Leadership Team.
With DuPont’s aggressive business growth targets over the next decade, it will be a challenge to maintain flat energy use. “To meet the energy efficiency goal,” says Ed Mongan, Director of Energy and Environment, “the key will be to have strategies, performance commitments and leadership at the business unit and site level.”

Dupont invested $50 million to retrofit facilities in Texas, Canada, the UK, and Singapore in order to reduce the nitrous oxide ({N2O}) emissions from nylon production. Nitrous oxide has 310 times the potency of carbon dioxide (CO₂), and these process changes at a select number of facilities allowed the company to reduce greenhouse gas emissions from operations by approximately 55% globally. “The company’s major stretch goal for global operations is to achieve zero injuries, illnesses, incidents, wastes and emissions,” says Paul Tebo, DuPont’s Vice President for Safety, Health & Environment.

DuPont is exploring the climate benefits of its products. Tyvek©, a protective material that when used in construction provides greater insulation, allows houses to be built without roof ventilation systems. Its use lowers heating costs, and translates to an energy saving of about 10% per month. The firm is also active in the automotive sector, where it is working on electronic systems for hybrid vehicles, lightweight auto components, and fuel cells for Taiwan’s electric scooter market. “As energy prices stay high in the US, and the rest of the world takes climate change seriously, there is a growing market for products and technology that reduce climate impacts,” says Paul Tebo, DuPont’s Vice President for Health, Safety and Environment.

In order to meet its goal of sourcing 10% of its energy requirements with renewable energy DuPont is purchasing 170 million kWh per year of renewable energy certificates (RECs) generated by projects that produce electricity from biomass and landfill gas. Although the company currently sources 2% of its renewable energy from conventional hydropower, it is exploring other direct sources of renewable energy that could be cost competitive with fossil fuels.

Corporate Case Study: DuPont
Produced by the Green Power Market Development Group - Europe, in collaboration with WRI.

DuPont’s 1,450 acre Chambers Works in New Jersey was able to drop energy use by one-third per pound of product, and carbon dioxide emissions by nearly one-half between 1993 and 1997.
In the field of solar power, DuPont has developed a polyvinyl fluoride (PVF) used as the backing sheet for photovoltaic modules because of its strength, weather resistance, UV resistance, and moisture barrier properties.
DuPont has partnered with Asia Pacific Fuel Cell Technologies (APFCT) to commercialise proton exchange membrane (PEM) fuel cells for the Taiwan electric scooter market. The company is also working with the Taiwanese government to supply hydrogen for the vehicles, and anticipates the first commercialisation of fuel cell powered scooters in Taiwan by 2005.