GET AHEAD OF THE WAVE
When recalcitrant holdouts like President Bush and the chairman of Exxon-Mobil suddenly concede that climate change is real, you can be sure of one thing: A political consensus of some kind cannot be far away. Some companies want to get ahead of that–and even influence it. At least that's the kind of thinking that recently led 10 major U.S. corporations to join with green lobbyists Environmental Defense to push for passage of a national cap on greenhouse emissions. The goal of the group, called U.S. Cap, is to cut domestic greenhouse gas emissions by 60% to 80% from current levels by 2050.
The companies–Alcoa, BP America, Caterpillar, Duke Energy, DuPont, Florida Power & Light, GE, Lehman Brothers, PG&E and PNM–are also pledging to cut their own emissions, regardless of national policy. A spokeswoman at E. I. du Pont de Nemours and Co. says the Delaware-based chemical manufacturer embarked on a plan to cut greenhouse emissions 17 years ago and has already reduced its carbon emissions globally by 72% from 1990 levels at a savings in energy costs of $3 billion. The company beat its deadline by three years and exceeded its goal by 7%. Now, it is aiming for another 7% by 2010.
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"We know carbon limits are coming," says Tom Williams, an energy efficiency and environmental spokesman for Duke Energy Corp., "and the sooner we know how it's going to be regulated, the better we can do with our investment decisions." Duke plans to invest more than $12 billion to $15 billion over the next decade in such projects as a new nuclear reactor, a pulverized coal plant and an integrated gasification carbon cycle operation. The investment is expected to increase generating capacity by 15%, while reducing carbon emissions by 13% to 15%.
House Speaker Nancy Pelosi (D-Calif.) has established a special climate change and energy committee and promises legislation to cut the nation's carbon emissions by July 4. "Companies will increasingly come to realize that thoughtful climate change legislation can not only create predictability, but also can create new markets," says David Yarnold, executive director of Environmental Defense.
TIGHT AND GETTING TIGHTER
Reporting and compliance needs at companies are putting strains on an already tight labor market and jacking up salaries for finance talent this year, according to Robert Half International, which based its estimates on several thousand placements. While hiring activity has remained steady in all areas of finance, the hottest jobs are to be had in the growing compliance and internal controls management areas. Chief compliance officers have especially been in demand, and the short supply is jacking up base salaries, which are expected to climb 14.4% in 2007, and performance payouts. "Businesses are growing and are finding that whatever compliance pieces and process enhancements they may have put in place have been outstripped by the continued growth of their businesses," says Alan Boris, Robert Half's director of permanent placement services. "There's a constant tweaking going on of processes and procedures." CFOs and treasurers at large companies should see base salaries rise 3.3%, while controllers can expect 7.7% more this year.
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