Greenhouse Gas Emissions

In 2010, GE’s operational GHG emissions were 5.65 million metric tons of CO₂ equivalents, a reduction of 24 percent from our adjusted 2004 baseline. Each year GE adjusts its 2004 baseline to account for divestments and acquisitions. Our GHG emissions in 2004 were 12 million metric tons of CO₂ equivalents and our adjusted baseline is 7.43 million metric tons of CO₂ equivalents. Our baseline for energy use has been adjusted from 116 to 61.7 million MMBtu. We measure our progress toward our commitments against this adjusted baseline.

For perspective, the avoided GHG emissions associated with GE’s installed base of wind turbines has increased to 45.4 million metric tons of CO₂ equivalents, an increase of 21 percent over the prior year. In contrast, GE’s GHG emissions represent approximately 12% of GE’s installed base of wind turbines.

Although we exceeded our 2008 goal of 30 percent GHG emissions intensity (measured as CO₂-equivalent emissions/revenue in millions of U.S. dollars), we continue to track this metric. In 2010, our GHG emissions intensity reduction was 37.4% better than in 2004.

In 2010, GE’s energy use was 50.4 million MMBtu, an 18 percent reduction from the 2004 baseline year. This reduction is attributable to our focus on improving our energy efficiency, and to the continuing weakness in the economy throughout 2010. GE’s energy intensity (measured as MMBtu/revenue in millions of U.S. dollars) in 2010 has improved 32.8 percent since 2004, compared to 33.8 percent in 2009.

In early 2011, GE divested its controlling interest in NBCUniversal, and now has a minority ownership stake in the Company. Our 2010 data includes NBCU but, in accordance with the WRI/WBSCD GHG Accounting Protocol followed by GE, we will not include NBCU data for 2011 and subsequent years, and our baseline will be adjusted accordingly. For comparison purposes, if NBCU’s 2010 data were excluded, our overall GHG and energy use performance would improve by approximately 1 percent while energy intensity would stay relatively flat.

During the course of 2011, GE will complete several significant acquisitions, adding up to 100 manufacturing and service sites along with additional offices, warehouses and other locations that will have an as yet unquantified impact on results to be reported in 2012.

In 2010, GE recognized 35 of its sites as eCO₂ award winners. These sites had at least a 5 percent reduction in GHG emissions versus the baseline year, independent of changes in production levels. In the aggregate, the certified sites have reduced their emissions by more than 200,000 metric tons of CO₂ equivalents since 2004. In addition, several sites in the UK were recognized by the Carbon Trust for their progress on carbon emissions reduction efforts.

We continued to implement many GHG and energy reduction projects during 2010.

Energy Treasure Hunts

The Energy Treasure Hunt process, created by Toyota Motor Manufacturing North America, continues to both engage employees and identify projects that drive energy efficiency. Since GE began implementing the process, projects identified during these events have contributed to reductions in excess of 900,000 metric tons of CO₂ and saved nearly $160 million. Some of this CO₂ reduction has been overshadowed by growth and new facilities that did not exist during the baseline year and are therefore additive to GE’s GHG footprint.

In addition to energy treasure hunts, we have continued to implement energy efficiency and GHG reduction projects. GE’s Pollution Prevention and Energy Efficiency team, based at the Global Research Center in Niskayuna, New York, has loaned its technical expertise to several of GE’s sites that are looking for alternative processes that will continue to reduce non-fuel-related CO₂ emissions. This work has resulted in significant reductions at a few key sites in GE’s inventory. In addition to its technical support, this team drives processes such as Energy Treasure Hunt, and liaises with various teams internal and external to GE to share best practices.

In 2010, GE hosted its first Forum on Industrial Energy Efficiency at the GRC. This program, in which representatives from more than 35 of GE’s largest energy-using facilities participated, broadened the internal conversation about developing a path toward achieving GE’s aggressive goal for 2015 of improving its energy intensity by 50 percent. GE also benchmarked with other best-in-class companies that have successfully driven energy efficiency into their operations. Teams generating ideas at the forum continue to develop tools and programs that will sustain GE’s commitment to energy intensity improvement into the future.

One example of a best practice that was shared during the forum event, which GE is spreading globally, is the use of employee-managed teams to drive energy efficiency. This process, created by the Aviation-Evendale team, is referred to as “Energy Guardians.” It gives authority and responsibility for managing energy use in discrete areas of the operation to a team of employees, and it has sparked the imagination of employees and teams across the Company. Based on this process, Aviation’s Evendale site had one of the largest reductions in energy use during the 2009–2010 timeframe by driving operational improvements that reduce energy efficiency.

GE continues to drive projects that will both reduce non-CO₂-related GHG emissions at specific facilities and develop tools for broad use that will impact energy use at GE’s diverse sites across the globe.