ecomagination

To make ecomagination truly viable from a business perspective at its inception, GE set very real, aggressive targets, one of which is to improve the energy efficiency of GE operations and reduce GE’s greenhouse gas emissions. Our plan to achieve this is called 1-30-30.

The 1 reflects the percentage (versus 2004 levels) by which GE will reduce its absolute greenhouse gas (GHG) emissions worldwide by 2012. This is a major goal, given that GHG emissions would otherwise have grown substantially by approximately 30 percent based upon current business growth projections. GE also committed to reducing the intensity of its GHG emissions 30 percent by 2008 and improving energy efficiency 30 percent by the end of 2012 (also versus 2004 levels). Improving energy efficiency translates into significant energy cost savings for GE, another way ecomagination is rewarding investors.

By making a public commitment and then tracking the results, GE is leading by example and demonstrating how one company can make a difference.

Operational GHG emissions

In 2008, GE’s GHG emissions were 6.49 million metric tons, a reduction of 13 percent from our 2004 baseline. In addition to the continued implementation of many GHG and energy reduction projects in 2008, some of the emission reductions are attributable in part to the slowing of the global economy. Our performance against GE’s GHG Intensity and Energy Efficiency goals, which use revenue as a denominator thus reflecting economic conditions, showed continued progress, improving by 41 percent and 37 percent respectively, compared to 2004. GE has now achieved the first of its three GHG and energy goals to reduce GHG Intensity by 30 percent by the end of 2008.

Each year, GE adjusts its 2004 baseline to account for divestments and acquisitions in accordance with the World Resources Institute/World Business Council for Sustainable Development (WRI/WBCSD) greenhouse gas accounting protocol. Although the number of large sites in the GE GHG Inventory is approximately the same as in 2004, our adjusted baseline inventory is now approximately 46 percent lower than the initial 2004 inventory.

We continue to recognize the hard work of our employees through the eCO2 awards and certification program, recognizing those sites that achieve at least a 5 percent absolute GHG reduction independent of changes in production levels. During 2008, we certified 41 sites which collectively achieved an aggregate reduction of 180,000 metric tons of CO₂. We also gave special recognition ecomagination awards to ten sites for extraordinary results. Five of these sites, located in Hungary, implemented programs using GEs Jenbacher engines in combined heat and power projects at their manufacturing sites. Our outreach efforts continue as well, as we share our approach with suppliers, customers and partners.

Download the full PDF of GE’s 2008 Greenhouse Gas Inventory

GE Energy Financial Services Investments

GE also is reporting GHG emissions from investments in power projects through GE Energy Financial Services. GE Energy Financial Services invests in power projects in a number of ways: equity, lease and debt. We are reporting emissions for investments in which GE Energy Financial Services has an equity interest in the operation of the project based upon the business units percentage of equity ownership.

In 2008, GE Energy Financial Services greenhouse gas emissions totaled approximately 9.80 million metric tons of CO₂ equivalent from 24 investments. Seven of these investments, representing 4.37 million metric tons, are subject to CO₂ emissions regulation in the United States or Europe. By comparison, GE Energy Financial Services held an equity interest in 25 power projects in 2007, which emitted 9.71 million metric tons of CO₂ equivalent. In addition, the renewable energy projects in which GE Energy Financial Services has purchased equity interests avoided 5.06 million metric tons of CO₂ equivalent in 2008.

In 2006, GE Energy Financial Services demonstrated leadership by becoming one of the first financial services companies to report greenhouse gas emissions associated with power project equity investments. In 2007, the GE unit continued this leadership, outlining its guidelines on emissions involving these investments:

• Establish a long-term goal to balance investments in new coal-fired power plants with renewable energy, clean technology investing and greenhouse gas emissions cuts.
• Focus investments in new coal power plants on efficient, super critical technology, and projects with sequestration potential.
• Price CO₂ for coal and other fossil fuel plants into deal approval processes.
• Engage with non-governmental organizations through USCAP on policy recommendations to ensure that new coal-fired generating units are designed to take into account the future cost of carbon.
• Voluntarily report emissions.
• Explore increasing focus on investments in energy conservation and efficiency.