10 Steps to Becoming a Carbon Neutral Business

Page 29 STEP 07: REDUCE YOUR EMISSIONS LM WIND POWER’S APPROACH TO RENEWABLE ELECTRICITY Due to the short timeline of our carbon neutrality pledge, we knew we would not be able to install a wind turbine or enter into a large-scale Power Purchase Agreement as the most likely ways to secure our clean electricity supply short term. We did manage to sign a solar PPA for one of our factories in India though, which took effect in March 2018, and which has delivered USD177k in cost savings in the first five months. While our immediate target meant we had to source RECs for the first year, we launched a parallel work stream to pursue PPAs and on-site installations to implement as soon as possible and eliminate the need for RECs. We preferred this approach because of the potential savings to be achieved and the direct link to our business and commitment to renewable energy. We quickly learned, however, that there is a reason why on-site installations and PPA projects take time to implement. Regulatory, technical and commercial challenges need to be addressed and balanced against the business situation and expectations for the future, and it requires a mix of different resources from the organization. We were fortunate to have a team of talents from a GE leadership program dedicated to help us identify the most attractive options. Their support has been invaluable to identify and develop specific opportunities to green our electricity supply while saving money. Now we need to take the next step and start implementing their recommendations.