Our Commitment 2005 and 2006 saw a growing public awareness about the immediate consequences and long-term risks of climate change. In our 2004 report, we recognized the value of taking action to mitigate long-term harm, and we committed to making more efficient use of energy, which accounts for 75 percent of our greenhouse gas (GHG) emissions. We have committed to the following goal:
Improve energy efficiency* by 10 percent by the year 2010, compared to 2004.
* Energy efficiency is measured as total weight of energy-related greenhouse gases (measured in tons CO2 equivalents) divided by units of marketed product produced.
Reflecting Genentech's commitment to addressing its greenhouse gas emissions, and recognizing the potential future impact of the new California Climate Change law, AB321, Genentech has joined the California Climate Action Registry. Membership to the Registry involves Genentech reporting annually with third party verification regarding its greenhouse gas emissions, in line with a protocol that reflects current best practice in greenhouse gas emissions reporting.
Our Progress Based on current usage and production patterns, we are on track to meet our greenhouse gas goal. Even with the significant growth in production and the physical expansion at our South San Francisco campus, our energy-related greenhouse gases grew by only one percent in 2005 when compared with the 2004 baseline. Because of this sharp rise in production and small increase in energy use, our greenhouse gas efficiency improved by 13 percent in 2005.
As with water, the growth in energy use during 2006 was outpaced by the growth in production, and we are pleased to report that our greenhouse gas efficiency in 2006 improved by 27 percent when compared to the 2004 baseline.
Behind the Numbers As with water, the two major factors leading to the improvement in energy efficiency were manufacturing efficiency gains and energy management projects. Manufacturing efficiency gains are discussed in the water section. Energy management projects in 2005 and 2006 included the following:
- A reduction in the hours of operation of our heating, ventilation and air conditioning (HVAC)2 systems in South San Francisco. This project has alone saved 1,000,000 kilowatt-hours per year (kwh/year), approximately equivalent to the annual electricity used by 100 American households3. This reduction also equates to avoidance of 279 tons of carbon dioxide equivalents per year (CO2e/yr).
- Lighting retrofits completed in a number of our South San Francisco buildings. These retrofits achieved energy savings of 2,000,000 kwh/yr, equivalent to 560 tons CO2e/yr, or 200 American households.
In 2007, a range of energy management projects will be completed including improvements to our lighting and HVAC systems, with anticipated annual energy savings of 2,500,000 kwh per year. Green building design also plays a prominent role in our energy management strategy. For one example of this, see the story "South Campus Green Design" in the Environmental Commitment section of this report. Look to future reports for updates on our progress on these and other projects.
Our energy management efforts earned external recognition during 2006. Genentech received an award for participation in the 2006 Business Energy Coalition and specifically for helping, along with other Coalition members, to mitigate electrical demand constraints during peak summer conditions. In addition, two of our South San Francisco campus buildings received an Energy Star designation from the US Environmental Protection Agency for reducing standard building energy consumption by more than 25 percent. The Genentech buildings were the only San Francisco Bay Area facilities out of a total of 41 California facilities to be awarded the designation during 2006.
Energy use generates about 75 percent of Genentech's greenhouse gas emissions; most of the other 25 percent comes from transportation. To learn more about Genentech's efforts to reduce transportation greenhouse gases, see the story on Employee Commuting in the Greenhouse Gases section of this report.
1 California Global Warming Solutions Act of 2006 will require mandatory reporting of GHG emissions for significant sources and sets emission limits to cut the state's GHG emissions to 1990 levels by 2020.
2 Heating, Ventilation and Air Conditioning
3 The American Wind Energy Association estimates that the average American household consumes 10,000 kwh electricity per year.
