risk intelligence. You will be able to avoid those missed opportunities of the
past, where efficiency could have been improved and risk/return portfolios
optimized, where your ultimate business predictability and shareholder value
could have skyrocketed but did not, all because you simply did not have the
tools needed to do the job.
Greening Manufacturing..............................................................................
Every company in business today needs to implement a program of culture
change, energy management, and green practices. However, if you conduct
business in the automotive, electronic, high tech, oil and gas, life sciences,
pharmaceutical, textile, food, consumer packaged goods, or cement industry
sectors, among others, complying with environmental regulations is a long-
standing practice (though of course, nearly all businesses can keep working
to deepen their shade of green). This section talks about the challenges faced
by these industries, starting with the C in GRC: compliance.
Green legislation .................................................................................
So far we’ve talked about how all companies can go green. However, for many
industries, going green is not a choice; the C in GRC kicks in, and companies
face compliance with a variety of regulations related to their processes. Here’s
an overview of green legislation applicable to processes. (Note that some
green legislation, such as REACH, relates to products and is discussed in
Chapter 12.)
Although federal governments have taken steps to address climate change in
the wake of startling new revelations about the potential dangers we face
should we continue to ignore the warning signs, it is the states or countries
themselves that have largely motivated the enactment of more green legisla-
tion. The moves have assumed a myriad of forms, from energy efficiency
rebate programs, renewable portfolio standards, and clean energy fund cre-
ations, to high-occupancy vehicle lane adoptions, reforestation, and low-
carbon technology tax incentives. But the last few years in particular have
seen increased public pressures on governments to step up engagement with
all climate matters.
The Northeastern, Mid-Atlantic, and Western states account for nearly 35 per-
cent of the U.S. population and just about a quarter of all consumed power.
No wonder they have exercised the greatest efforts toward creating such reg-
ulations as the Regional Greenhouse Gas Initiative (RGGI) and the Western
Governor’s Association (WGA), both of which seek to implement cap-and-trade
systems that create compliance carbon markets. Other green plans include
low-carbon automotive and fuel standards and greenhouse gas emissions
generator performance standards applied to power purchase contracts.
202 Part III: Going Green
