20% of Utility Supply Chain Measures Emissions

by | Apr 13, 2010

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emissions4Only about 20 percent of utility industry suppliers are measuring their greenhouse gas emissions and setting voluntary goals to reduce them, according to a new report from the Electric Utility Industry Sustainable Supply Chain Alliance.

Of the remaining 80 percent, only 15 percent plan to do so within the next 12 months.

With that in mind, the group has set some goals for its members, as outlined in its Strategic Plan (PDF).

By the end of the year, the group said it plans to establish a voluntary goal for reducing supply chain emissions, with the goal that a majority of suppliers be measuring GHG emissions by 2012. The group also would have suppliers set voluntary GHG emissions targets.

The effort revolves around three areas:

– Supply chain operations of electric utilities

– Products and services sourced by electric utilities

– Operations of suppliers to the electric utility industry

According to the group’s survey of suppliers, about 43 percent of suppliers see federal regulations mandating GHG reductions as an opportunity. About 17 percent see the regulations as a risk.

Utilities are likely to be the first to fall under federal emissions regulations, as administered under the Clean Air Act.

However, EPA’s endangerment finding has been under fire from several industry groups over the past few months leading to EPA’s head to release a timetable for regulating large, medium and small emitters over the next several years.

Currently, the EPA is facing several lawsuits from industry groups, conservative think tanks, lawmakers and three states.

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