Rob Bernard, Head of Sustainability, Microsoft Bruce Rauhe, Walt Disney Imagineering In the absence of a carbon tax or other top-down government-mandated mechanisms for sharp reduction of GHG emissions, what internal incentives could a company put in place to lead the way effectively? How do internal 'carbon budgets' work and why does it make business sense to charge business units an internal carbon fee?

1. Internal Carbon Fees to the Rescue
The New Metrics of Sustainable Business 2013
Rob Bernard, Microsoft
Bruce Rauhe, Disney

3. Accelerate
Research
Breakthroughs
Demonstrate
Responsible
Environmental
Leadership
Enable Energy
Efficiency
Data

4. Demonstrating Responsible Environmental Leadership
Be
green
by making more
environmentally responsible
choices with our energy, waste,
and water
Signing long-term renewable
power purchase agreements
Investing capital in new
renewable energy
projects
Connecting data centers
directly to innovative renewable
energy sources
Purchasing market RECs and
carbon offsets
Establishing reduction goals for
waste and water
Be
accountable
by quantifying our carbon
impact and holding groups
responsible
Setting a carbon price to
internalize the external
impact of our operations
Charging the teams
responsible for emissions
from data centers, offices,
labs, and air travel
Improving transparency
using emission-tracking
software and CDP reporting
Optimizing the supply chain
Engaging employees
through environmental
sustainability programs
Be
lean
by reducing energy
use and air travel through
technology-driven efficiency
Setting targets for reducing
energy consumption in our
data centers, labs, and
offices
Setting targets for reducing
air travel using Microsoft
collaboration technology
Controlling energy use in
our offices with an
enterprise-wide energy
management program

5. Set in consultation with the Office of the CFO based on the average
price of renewable energy and carbon offset projects globally
Product
groups
Data center
operations
Corporate
R&D
Central fund
Purchase of renewable energy
and carbon offsets
Corporate
operations
Sales and
marketing

6. Peru
Alto Mayo REDD+
Guatemala
Guatemala Water Treatment & Cookstoves
Turkey
Soma Wind Power
Ankara Landfill Gas to
Energy
Kenya
Meru & Nanyuki
Reforestation
Kasigau Corridor REDD+
India
Jogimatti Wind
Power
Tamil Nadu Wind
Power
Mongolia
Mongolian Insulation and Energy
Efficiency
China
Chifeng Wind
Power
Hebei Wind
Power
Cambodia
Oddar Meanchey Community
REDD+
Brazil
Acre Amazonian Rainforest
Conservation REDD+
Cerâmica Menegalli Biomass
Brazil Farm Methane
USA
FL & NC LFG Utilization
• 15 projects
• 10 Countries
• More than $3,000,000 invested in FY13
• 7 project types: Wind, Reforestation, REDD+, Ag Methane, Landfill Gas to Energy, Biomass Fuel Switch, Household
Devices

7. Chifeng Wind Power China Jogimatti Wind Power India Soma Wind Power Turkey Ankara Landfill Gas to Energy Turkey
Brazil Farm Methane Brazil Cerâmica Menegalli Biomass BrazilAcre Amazonian Rainforest Conservation
REDD+, Brazil
Oddar Meanchey Community REDD+,
Cambodia
Meru & Nanyuki Community
Reforestation, Kenya
Guatemala Water Filtration & Cookstoves,
Guatemala
Alto Mayo REDD+, Peru Mongolian Insulation & Energy Efficiency,
Mongolia

8. 8
Generation Data Center
Treatment
Sewage
Treatment
Plant
Data
Gas
Scalable and Cost Efficient
Renewable Energy
Extending Fuel Cell Benefits
WWTP Operational Experience
Best Practice for Recycling Biogas

12. © 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions,
it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

13. 



15. Operationalize ESB

17. Emerging Environmental
Technologies:
Reduction of Greenhouse Gases from Transportation
Bruce Rauhe, R&D Imagineering Principal, Walt Disney Imagineering R&D

18. Environmental Goals & Targets
18
• 2012 target – 50% to net zero direct emissions
Zero Net Direct Greenhouse Gas (GHG)
Emissions
• 2013 target – 10% reduction in electricity consumption compared to 2006 baseline in
existing assets
Reduce Indirect GHG Emissions from
Electricity Consumption
• 2013 target – Decrease tons of solid waste to landfill to 50% of 2006 levels (WDP&R
waste generated)
Zero Waste
• 2012 target – Develop Water Conservation PlansMinimize Water Use
• 2013 target – Apply our integrated approach to sustainable design, engineering, and
habitat protection for a pilot construction project
• 2009-2013 target – Increase the level of support from the Disney Worldwide
Conservation Fund each year
Net Positive Ecosystem Impact
• Multiple medium-term targets are in development to address the sustainability of paper
consumption and manufacturing for our non-licensed businesses
Minimize Product Footprint
• 2015 target – Connect 35 million kids and families with nature experiences
Inform, empower and activate
employees, business partners and
consumers
TargetsLong-Term Goals

19. Direct GHG Sources: Parks and Resorts
Cruise Ships
Land Mobile
Refrigerants
Stationary
4 Theme Parks
2 Cruise Ships
270 Bus Fleet

20. Direct GHG Sources: Parks and Resorts
Cruise Ships
249,600
Land Mobile
104,000
Refrigerants
36,400
Stationary
119,600
4 Theme Parks
3 Cruise Ships
285 Bus Fleet
Cruise Ships
Land Mobile
Refrigerants
Stationary

21. Cruise Ships
Land Mobile
Refrigerants
Stationary
Direct GHG Sources: Parks and Resorts
4 Theme Parks
4 Cruise Ships
300+ Bus Fleet
Cruise Ships
Land Mobile
Refrigerants
Stationary

22. GHG Goals and Targets
22

23. Direct Emissions – How to Meet Goals
Strategy for Reduction
1. Reduce
 Focus: Greenhouse gas from transportation
2. Offset
 Disney Climate Solutions Fund
 Internal Price on Carbon
23

24. DCSF Project Areas

26. Tactical Approach
 Burn Less: Efficiency
 Burn Different: Alternative fuels
 Clean After Burning: Scrubbing exhaust
Net Zero Direct GHG
26

27. Efficiency Example: Cruise Ships
Existing advances in efficiency
 Hull design and coatings
 Route optimization
 Highly efficient lighting and HVAC
Emerging Technologies
 Waste heat recovery for thermal loads
 Waste heat conversion to power
 Propulsion

28. Efficiency: Waste Heat Recovery
12 MW
3 MW
Efficiency Example: Cruise Ship
9 MW

29. 12 MW
3 MW
Efficiency Example: Cruise Ship
7 MW
Exhaust
Gas Boiler
Efficiency: Waste Heat Recovery

30. 12 MW
2 MW
Efficiency Example: Cruise Ship
7 MW
Exhaust
Gas Boiler
Efficiency: Waste Heat Recovery

31. Alternative Fuels
Fuel specific to application
 Buses: ultra low sulfur diesel
 Ships: heavy fuel oil and/or marine diesel oil
Possible alternatives?
 Electricity
 Biofuels
 Natural gas & other low-carbon fuels

32. Electricity as Fuel
 Zero-emissions at point of use
 Full impact depends on generation mix of
utility
32
Considerations
Buses
Ships
 Limited range, high capital cost
 Quiet, clean, low operating cost
 Shore power, “cold-ironing” in use
 Local reduction of criteria pollutants (NOx,
SOx, PM)
 Small (~1%) fraction of total energy on 7-
day cruise

33. Biofuels as Replacement
 Potentially significant GHG reductions
Strongly depends on feedstock
Life cycle assessment is critical

34. Timescale Petroleum vs. Biofuels
100Myears
+ pressure
OIL
1year
harvest, convert to bio-oil
BIOFUEL
100 years 1 year
Petroleum Biofuels

35. Biofuels as Replacement
 Potentially significant GHG reductions
Strongly depends on feedstock
Life cycle assessment is critical
 Other implications
Land use change
Food displacement
Other pollutants (SOx, PM)
Human health, acidification, eutrophication
 How to weigh different environmental impacts?

36. LCA Pathway Analysis

37. Total and Net Direct Emissions

38. http://thewaltdisneycompany.com/citizen
Infographic for Disney Climate Program