Environment

Introduction

Every person on the planet is dependent on the natural resources that make up our environment—our "natural capital."1 We sometimes take it for granted, but this capital is vital for sustainable economic and social progress.2 Energy is a key driver of economic progress throughout the world, yet the development, transport, and use of energy from all sources impact the environment.3 So how do we protect our "natural capital" while ensuring an ongoing supply of reliable and affordable energy?

  1. For example, forests provide wood and paper, as well as oxygen; oceans provide food to eat; agriculture is dependent on fertile soils, etc.
  2. Our economies are dependent on raw materials taken from the natural environment.
  3. Tomorrow's Markets, World Resources Institute, p. 24.

Air

The air we breathe day in and day out has a significant impact on our health.4 And while air quality in many cities in North America and Europe has improved significantly over the last two decades, many cities in both developed and emerging economies have severe air pollution problems.5 As economies and urban center populations continue to grow, the air quality challenge will grow as well. The burning of fossil fuels for power generation and transport has been a significant contributor to urban air pollution.6 That’s changing for the better in many places with the spread of low sulfur fuels which are less polluting.7 And while switching to renewable energy sounds like an obvious solution, the generating capacity and cost of alternatives remain significant obstacles.8 Meanwhile, technology, regulation, and consumer choices can all play a role in reducing the impact of our energy use on the air we breathe.9, 10

  1. Ibid., p. 26.
  2. Ibid., pp. 26, 27.
  3. Ibid., p. 26.
  4. American Public Transportation Association
    http://www.apta.com/services/intnatl/intfocus/lowsulfur.cfm
    Asthma Regional Council
    http://www.asthmaregionalcouncil.org/about/focus_diesel.html.
  5. International Energy Outlook 2004.
  6. Urban Air Quality Management, World Bank.
  7. For example, more energy efficient industrial process, minimum efficiency standards, and energy conservation practices.

Water

Energy development and delivery requires the use of, or affects, water in many different ways. Water is used in the extraction of oil and gas, and as a heat exchanger in refineries, gas plants and nuclear power plants.11 Crude oil, gasoline and LNG are often transported on rivers and across oceans. And hydro dams use water directly to generate electricity. But many parts of the world face a scarcity of clean water, and the crisis is expected to grow.12 Over the past century, world water withdrawals have increased almost twice as fast as population growth, and in many places currently exceed recharge capacity.13 In other areas, industrial, residential and agricultural development have impaired water quality.14

  1. 2002 ChevronTexaco Corporate Responsibility Report, p. 47.
  2. Tomorrow's Markets, World Resources Institute, p. 37.
  3. Ibid., p. 36.
  4. Ibid., p. 36.

Global Climate Change

One of the most critical environmental challenges facing the world today is reducing long-term growth in greenhouse gas (GHG) emissions.15 The use of fossil fuels to meet the world's energy needs has contributed to an increase in GHGs—mainly carbon dioxide and methane—in the earth's atmosphere.16 Many think this increase is leading to climate change, with potentially adverse effects on people, economies, and the environment—from coastal flooding, to droughts, to changes in ecosystems and biodiversity.17, 18 Many governments and businesses agree on the importance of addressing the risk of climate change.19 The challenge is to do so while still providing the energy required to meet the demands of growing populations and economies.

  1. So say business leaders at the 2005 World Economic Forum.
    http://www.weforum.org/site/knowledgenavigator.nsf/Content/_S1531?open.
  2. Chevron website
    http://www.chevron.com/globalissues/climatechange/actionplan/.
  3. Chevron website
    http://www.chevron.com/globalissues/climatechange/actionplan/.
  4. Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report: Climate Change 2007.
    http://www.ipcc.ch/ipccreports/assessments-reports.htm.
  5. Kyoto Protocol Signatories
    http://unfccc.int/essential_background/kyoto_protocol/status_of_ratification/items/2613.php.

Ecosystems and Biodiversity

Ecosystems support our livelihoods and well-being. The world’s grasslands, forests, oceans, coastal areas, and rivers provide the food, water, air, biodiversity, and climate stability we need to thrive. But many of the world’s ecosystems are under significant stress; 10% of all known plant species are under threat of extinction. Wetlands and forests are disappearing.20 Dams built for irrigation and energy generation fragment rivers and destroy aquatic habitats.21 Acid rain resulting from power plant emissions harms forests, lakes and agriculture lands.22 Deforestation of land to make way for housing, farming, grazing, roadways and resource extraction reduces biodiversity, accelerates species extinction, and compromises climate stabilization.23 And populations which are growing in numbers and wealth will only increase the pressure on the ecosystems that sustain us.

  1. Tomorrow's Markets, World Resources Institute, p. 32
  2. International Development Studies Network
    http://www.idsnet.org/Resources/Dams/Development/impact-enviro.html.
  3. EPA, Effects of Acid Rain
    http://www.epa.gov/acidrain/effects/index.html.
  4. Vital Signs, pp. 92-93.

Workable Solutions

So how do we address the world’s expanding need for, and impact on, "natural capital," without diminishing its availability in the future? That will require awareness, vision, thoughtful assessment, creativity, political will, and cooperation.

Technology is critical to lessening energy development’s impact on our environment (for example, directional drilling reduces the footprint of exploration and production)24 and advanced engines reduce pollution and greenhouse gas emissions.25 The rise of alternative energy sources can make a positive contribution.26 Regulation has a role to ensure that all companies meet minimum public expectations. And every one of us, companies and individuals alike, need to understand that our own behaviors and consumption patterns impact the environment, and do what is within our ability to protect the resources we all depend on.

  1. American Petroleum Institute
    http://api-ec.api.org/environ/index.cfm?bitmask=001003002001000000.
  2. Union of Concerned Scientists
    http://www.ucsusa.org/clean_vehicles/.
  3. 2002 ChevronTexaco Corporate Responsibility Report, p. 41.