2011 Ford F-Series Super Duty power stroke Diesel is cleanest ever; fuel economy greatly improved
The all-new 2011 Ford F-Series Super Duty delivers best-in-class torque, horsepower, towing and payload capability – and does it all more efficiently, resulting in less fuel usage and extended maintenance intervals that can translate directly into bottom-line savings for customers.
“The 2011 Super Duty is not only the most powerful, most capable and fuel-efficient heavy-duty pickup truck on the road, it performs the tough jobs with even more efficiency than ever before,” said Doug Scott, truck group marketing manager. “Customers can be confident that Super Duty’s class-leading capability comes with Ford’s ‘and solution’ of best-in-class fuel economy.”
All-new diesel and gas engine powertrains are the backbone of the 2011 Super Duty’s best-in-class towing (26,400 pounds for F-550 chassis cab with fifth-wheel hitch) and payload capability (6,520 pounds for F-350 dual rear-wheel pickup). The Ford-designed, Ford-engineered and Ford-built 6.7-liter Power Stroke V-8 turbocharged diesel engine produces best-in-class 735 ft.-lb. of torque at 1,600 rpm and best-in-class 390 horsepower at 2,800 rpm. The new engine is compatible up to B20 biodiesel fuel as well.
The new 6.2-liter V-8 gasoline engine also boasts best-in-class numbers of 405 ft.-lb. of torque at 4,500 rpm and 385 horsepower at 5,500 rpm. The new engine is E85 compatible.
Mated to each engine is the all-new 6R140 heavy-duty TorqShift six-speed automatic transmission. The added feature content and overall efficiency of the transmission are the main reasons for the improved fuel economy. The all-new 2011 Ford F-Series Super Duty equipped with the 6.7-liter Power Stroke diesel averages an 18 percent improvement for pickup models and up to 25 percent improvement for chassis cabs versus 2010 models. Trucks equipped with new base 6.2-liter V-8 gas engine average a 15 percent improvement versus 2010 models.
“The new transmission is a ‘clean-sheet’ design, developed specifically to handle the significantly increased torque produced by the new diesel engine and the higher rotational speeds produced by the new gas engine, and to deliver the power to the wheels seamlessly and efficiently for heavy-duty truck customers,” said Al Bruck, transmission engineering manager. “Each system and component was scrutinized to deliver optimum performance.”
Here’s a closer look at what was achieved and the benefits to the customer:
– New torque converter that locks at a far lower rpm than the competition: The new, stronger torque converter is core to the improved transmission performance. One key component is the long-travel turbine damper that allows the transmission to lock earlier, at a lower rpm, which translates to less slip and more fuel efficiency. The new transmission locks down to 900 rpm, which is about 200 rpm less than the outgoing product and more than 100 rpm less than competitors. The second key component of the torque converter is the closed-piston design. This design allows for better control of the lock-up clutch, which enables controlled converter clutch slip during lock-to-lock upshifts that are seamless to the customer.
- Customer fuel economy benefit: Locked converter operation at lower speeds means less wasted heat energy and better fuel economy.
– Optimized shift and converter lock-up schedule: After analyzing the entire shift schedule, Ford calibration engineers fine-tuned it by measuring and optimizing the fuel flow. The system recognizes light or heavy throttle use, and puts the transmission in the right gear for best performance and efficiency. The entire operating range has been optimized to get the best fuel economy by locking up the converter as soon as possible and as much as possible.
- Customer fuel economy benefit: Optimizing the shift schedule and lock schedule ensures customers automatically operate in the most efficient gears and save fuel.
– Gearing and double-overdrive: The 6R140 transmission has a ratio span of about 5.9, which is quite a bit wider than competitors. This wider span means the transmission has a deeper first gear that allows customers to get the load moving quicker, and a tall overdrive ratio for good highway efficiency. While the gearing itself is important, the key to overall efficiency is matching that gearing to the correct axle. With the diesel engine, up to four axle ratios are available on the pickups – 3.31, 3.55, 3.73 and 4.30. Matching up the gearing with the right axles means better overall efficiency.
- Customer fuel economy benefit: The double-overdrive gear means even if a customer gets a downshift on the highway, the transmission remains in overdrive. Also, the F-450 pickup went from a 4.88 axle to a 4.30 axle at launch for the 2011 model mated to the wide ratio span of the transmission. This and other optimizations mean the F-450 now has about a 30 percent improvement in fuel economy.
– Optimized pumping pressure: A certain amount of pressure is required to hold the clutches together so they don’t slip. The trick is to have the right amount of pressure to do the job. Too much pressure wastes fuel. The solution is to optimize the size of the pump and precisely control the pressure for all operating conditions.
- Customer fuel economy benefit: At highway speeds, for example, the line pressure is reduced, which helps save fuel. The system maintains the right amount of pressure for any given speed range. The less energy needed for internal pump pressure means less fuel used.
– Optimized drainback to reduce spin losses: A main objective is to get the fluid through the main barrel to lubricate and cool components, and get it back to the sump as quickly as possible. This reduces windage and parasitic loss. The clutch friction plates were designed to allow fluid to flow through them efficiently for cooling and reduced drag. Clutch housings, connecting shells and the main case housing were optimized to quickly drain the fluid out of rotating components and back into the sump.
- Customer fuel economy benefit: Fewer parasitic losses due to reduced churning of fluid increases fuel economy.
– Warmer operating temperature: Tied in with spin losses, the 6R140 cooling system has been optimized to allow for the proper amount of cooling when towing heavy loads in high ambient temperatures, while running at an overall higher stabilized temperature. This higher stabilized temperature lowers the viscosity and helps the fluid flow more easily, which reduces parasitic losses and saves fuel. The fluid also warms up faster because it does not flow to the cooling circuit until properly warmed up. Faster warm-up also reduces overall parasitic losses.
- Customer fuel economy benefit: Fewer parasitic losses due to reduced fluid viscosity translates to less internal drag on the system and increases fuel economy.
Lighter, more efficient than competition
The 6R140 transmission is about 25 pounds lighter than those of competitors. The new engines are lighter than the outgoing products as well, which altogether means much more efficient power flow on a pound-for-pound basis. The 6R140 also has a 150,000-mile fluid change interval, which is 2-1/2 times greater than the outgoing product. A patent-pending high-efficiency dual-media filter is the main reason for the extended maintenance interval, which is another savings for customers.
Cleanest Power Stroke ever
The new 6.7-liter Power Stroke V-8 turbocharged diesel employs an aftertreatment system to help comply with 2010 federal regulations to reduce NOx levels in diesel emissions by more than 80 percent compared with the previous standard. The Ford aftertreatment system is a three-stage process; a key component is the use of Diesel Exhaust Fluid (DEF).
Injection of DEF to reduce NOx is a proven technology that’s been used throughout the automotive industry. Unlike other strategies used to control NOx, the DEF system allows the diesel engine to run at its optimum range in terms of fuel mixture. Some systems require the engine to run richer – which can be harmful to diesel engines – in order to control the NOx.
The aftertreatment system works like this:
Step One: Cleaning and Heating – The first step in cleaning the diesel exhaust occurs when the exhaust stream enters the Diesel Oxidation Catalyst (DOC). The role of the DOC is twofold. First, it converts and oxidizes hydrocarbons into water and carbon dioxide. This conversion happens at about 250 degrees Celsius.
Second, the DOC is used to provide and promote heat, using specific engine management strategies, into the exhaust system. Through appropriate thermal management, this heat increases the conversion efficiency of the downstream subsystems in reducing emissions.
Step Two: Knocking Out the NOx – The next step in the process is what’s known as Selective Catalytic Reduction (SCR). In this process, the NOx in the exhaust stream is converted into water and inert nitrogen, which is present in the atmosphere and harmless. Before the exhaust gas enters the SCR chamber, it is dosed with DEF, an aqueous solution that is approximately 67.5 percent water and 32.5 percent pure urea.
When heated, the DEF splits into ammonia and carbon dioxide. These molecules are atomized and vaporized, then enter a mixer that resembles a corkscrew. This twist mixer evenly distributes the ammonia within the exhaust flow. The ammonia enters the SCR module, which contains a catalyzed substrate, and through chemical reactions combines and converts the NOx and ammonia into the harmless inert nitrogen and water. Dosing occurs between 200 and 500 degrees Celsius.
Step Three: Scrubbing Away the Soot – The final part of the cleansing system for the diesel exhaust gas involves the Diesel Particulate Filter (DPF). The DPF traps any remaining soot, which is then periodically burned away, known as regenerating, when sensors detect the trap is full. The regeneration process sees temperatures in excess of 600 degrees Celsius to burn away soot.
This industry-proven technology ensures that the new 6.7-liter diesel is the cleanest Power Stroke ever, as well as the most fuel-efficient.
“Having this diesel designed in-house at Ford meant we were able to work on optimizations and refinements right from the start,” said Tim Ogilvie, vehicle energy supervisor. “We’re able to deliver to customers a more refined, more fuel-efficient Super Duty, with class-leading torque and horsepower and the class-leading capability they demand.”
Lexus and Scholastic announce Lexus Eco Challenge #2 winners
All Winning Teams Invited to Participate in the Final Challenge for $270,000 in Grants and Scholarships
Creating rain gardens, building a biodiesel processor, and promoting the use of solar chimneys were some of the actions taken by the winning teams in the second round of the Lexus Eco Challenge, an educational program and contest that empowers young people to make a positive difference for the environment. The 15 winning middle and high schools teams in Challenge #2 were awarded $10,000 each and are now qualified to participate in the Final Challenge for a chance at one of two $30,000 grand prizes and 14 $15,000 first-place awards. In all, Lexus will award a total of $500,000 in grants and scholarships throughout this year’s program. All award money is shared among the students, teacher advisor and school.
“Since launching the Lexus Eco Challenge three years ago, we’ve enjoyed watching as thousands of students have stepped up to protect our environment, and this latest round of entries did not disappoint us,” said Mark Templin, Lexus group vice president and general manager. “We’ve been impressed, humbled, and most of all, inspired by the dedication of the teams and their teacher advisors.”
For each of the challenges, teams are required to define an environmental issue that is important to them, develop an action plan to address the issue, implement the plan, and report on the results. The Challenge #2 winning teams that best addressed environmental challenges associated with air and climate were (winners listed in alphabetical order by state along with city, team name. school name, and each project’s subject).
High School Winners:
– Florida (Newberry) – “P.A.N.T.H.E.R. – Providing a New Way to Help Environmental Restoration” – Newberry High School – “Green” Christmas initiative
– Georgia (Atlanta) – “Westminster Greencats” – The Westminster Schools – Reducing greenhouse gases and investing in renewable energy sources
– Hawaii (Honolulu) – “LEXgo” – W.R. Farrington High School – Preservation and recycling
– Illinois (Chicago) – “McAuley EcoMacs: Operation Haiti” – Mother McAuley High School – Built a biodiesel processor and solar-thermal heating system
– Missouri (St. Louis) – “Team Neon” – Parkway North High School -Addressed destruction of natural prairies
– New Jersey (Manalapan) – “Project Blue Sky” – Manalapan High School – Educated about renewable energy sources
– Pennsylvania (Souderton) – “SAVE – Students Against Violating the Earth” – Souderton Area High School – Encouraged use of solar chimneys
– Utah (Orem) – “R.A.W.R. – Rocky-Mountain Area Wildlife Research” – Timpanogos High School – Environmental research and education about effects of climate change
Middle School Winners:
– Florida (Boca Raton) – “Tap In Too” – Logger’s Run Middle School – Recycling plastic water bottles and switching to reusable water bottles
– Kentucky (Lexington) – “E.F.B.S. – Eco-Friendly Bag Savers” – SCAPA Bluegrass – Impact of plastic and paper bags on the environment
– New York (East Greenbush) – “Goff Gone Green” – Howard L. Goff Middle School – Conservation of fossil fuels
– New York (Rosedale) – “The Eco Team” – PS 270 – Air pollution reduction
– South Carolina (Hanahan) – “HMS Hawks” – Hanahan Middle School – Conserving fossil fuels by reducing energy use.
– Utah (Holladay) – “Unplug the Thug” – Olympus Junior High – Energy conservation by unplugging cell phone chargers
– Wisconsin (Milwaukee) – “Bayside Pollution Revolution” – Bayside Middle School – Energy conservation by reducing use of electricity
This year’s Lexus Eco Challenge launched on Sept. 28, 2009, and concludes with the announcement of the first place and grand-prize-winning teams during Earth Month in April 2010. All winners from Challenges #1 and #2 have been invited to participate in the Final Challenge with an entry deadline of March 16, 2010.
In addition to the ongoing contest, the Lexus Eco Challenge also includes educational materials developed by Scholastic to encourage teachers to integrate creative lesson plans into their classrooms to help teach students about the environment. For each challenge, the Web site (www.scholastic.com/lexus) has lesson plans and teacher instructions including questions to help guide a discussion about the current challenge, facts about the topic, and guidelines for a specific classroom project.
The Lexus Eco Challenge is part of The Lexus Pursuit of Potential, a philanthropic initiative that generates up to $3 million in donations each year for organizations that help build, shape and improve children’s lives.
Recycling in Post Offices expanding
More than 200,000 tons, and counting. That’s how much paper, plastics and other waste the U.S. Postal Service recycled in 2009, representing a decrease in its greenhouse gas emissions of approximately 1.67 million barrels of oil.
An integral part of that undertaking is the Post Office Box Lobby Recycling program which is expanding to include an additional 2,435 Post Offices, including those in a number of U.S. national parks. That brings the total number of participating sites to more than 8,064, an increase of 150 percent from 2005, when the Post Office Lobby recycling effort started. This program is based on the success of similar mail recycling programs in the northeastern part of the United States, which began more than 10 years ago.
Postal customers are being encouraged to “read, respond, recycle” their P.O. Box mail in Post Office lobbies as a convenient and environmentally responsible alternative to taking it home to discard.
“Lobby recycling helps divert paper waste from landfills, eliminating greenhouse gas emissions from solid waste disposal,” said Deborah Giannoni-Jackson, vice president, Employee Resource Management. “In 2009, the Postal Service sold raw materials from recyclables, diverting them from landfills, making us greener and producing a positive impact on our bottom line.”
Secure recycling bins in Post Office lobbies are locked and the opening is slim — about the width of a magazine, so the mail, and customer privacy, are ensured. P.O. Box customers are encouraged to open their mail (read), take whatever action is necessary (respond) and place the rest of it in the bin (recycle). A complete list of participating “Read, Respond, Recycle” Post Offices can be found at usps.com/green on the recycle page by clicking on Earth911.com. Type the word “mail” in the search engine for a list by ZIP Code.
“This Post Office Box recycling program is part of a comprehensive approach to mail production, delivery and recycling that helps create a sustainable future for generations to come,” said Sam Pulcrano, vice president, Sustainability. “It makes it even easier for Post Office Box customers to go green by recycling their discarded P.O. Box mail right at the Post Office.”
Pulcrano added, another way customers can go green is with 100 percent recyclable Postal Service packaging supplies. The Postal Service is the only mailing and shipping company to earn Cradle to Cradle(TM) certification for the environmentally friendly design and health standards of Priority Mail and Express Mail supplies, and Ready Post envelopes, tape and labels. Priority Mail and Express Mail supplies are free to the customer and can be delivered at no charge. They can be ordered from the Post Office that’s always open, 24 hours a day, at usps.com/green. Visit usps.com/green for the latest information about all the Postal Service’s green initiatives, tools and products.
P.O. Box Lobby Recycling is one more way the Postal Service is demonstrating its commitment to environmental stewardship, Pulcrano said. The Postal Service has won more than 75 environmental awards, including 40 White House Closing the Circle, 10 Environmental Protection Agency WasteWise Partner of the Year, Climate Action Champion, Direct Marketing Association Green Echo, and the Postal Technology International Environmental Achievement of the Year, 2009.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.
Source: U.S. Postal Service
Next Generation Weather Environmental Satellite Marks Major Milestone
The development of a new series of weather and environmental monitoring satellites has marked a significant milestone with the delivery and the beginning of spacecraft integration efforts for a key science instrument.
The Visible Infrared Imaging Radiometer Suite (VIIRS) will be one of five instruments to fly on the National Polar-orbiting Operational Environmental Satellite System (NPOESS) Preparatory Project (NPP) spacecraft. VIIRS is regarded as a key component in NPP’s suite of instruments because it will provide highly detailed imagery of clouds, vegetation, snow cover, dust storms, sea surface temperature and other environmental phenomena.
NPP is a joint mission to extend the time series environmental data records initiated with NASA’s Earth Observing System, including measurements made by the Terra, Aqua, and Aura satellites, and to provide risk reduction for NPOESS instruments, algorithms, ground data processing, archive, and distribution prior to the launch of the first NPOESS spacecraft.
“The delivery of the VIIRS instrument marks a long awaited and huge step towards completing the integration of the NPP mission. VIIRS will be the fourth flight instrument integrated onto the NPP spacecraft, only the CrIS instrument remains,” said Ken Schwer, NPP Project Manager at NASA’s Goddard Space Flight Center in Greenbelt, Md.
The Raytheon Corporation, El Segundo, Calif., built VIIRS under contract to the NPOESS prime contractor, Northrop Grumman. The ITT Corporation, Fort Wayne, IN, is building CrIS also under contract to the NPOESS prime contractor, Northrop Grumman. Ball Aerospace and Technologies Corp., Boulder, Colo., under contract to the NASA Goddard Space Flight Center built the NPP spacecraft and is performing the integration and checkout of the NPP spacecraft.
NPP is scheduled for launch in Fall 2011 aboard a Delta rocket from Vandenberg Air Force Base, Calif.
The NPP Project is a joint effort of the NPOESS Integrated Program Office (IPO), the National Oceanic and Atmospheric Administration (NOAA) and NASA. NASA’s Goddard Space Flight Center manages the NPP mission on behalf of the Earth Science Division of the Science Mission Directorate at NASA Headquarters.
NPOESS represents the next-generation low-Earth orbiting weather and climate monitoring satellites that will provide operational and long-term weather and climate data for both military and civilian use for the next two decades.
The NPOESS will collect a massive amount of very precise earth surface, atmospheric and space environmental measurements from a variety of on-board sensors. This volume of data will allow scientists and forecasters to monitor and predict weather patterns with greater speed and accuracy.
For more information about NPOESS, visit: http://jointmission.gsfc.nasa.gov/
National Challenge inspires U.S. cities to recycle over 125 million Aluminum cans
“Cans for Cash” Winners Announced at U.S. Conference of Mayors Winter Meeting
The U.S. Conference of Mayors, Novelis Inc. and Keep America Beautiful, Inc. (KAB) announced the winners in the sixth annual Cans for Cash: City Recycling Challenge at the U.S. Conference of Mayors 78th Winter Meeting in Washington, D.C. The “Challenge” pits cities of comparable sizes in a competition of creativity and execution, offering monetary awards to the cities that conduct the most innovative campaigns and collect the most aluminum cans. During October 2009, more than 40 cities collected over 125 million used beverage cans.
“The United States Conference of Mayors applauds all the participants of the 2009 Cans For Cash City Recycling Program,” said Tom Cochran, CEO and Executive Director of The United States Conference of Mayors. “These cities had an opportunity to bring the benefits of recycling to the forefront of their communities, demonstrating that recycling does begin with ‘I Can’. Congratulations to the winning cities. Their commitment to environmental stewardship is unmatched. Once again, they are leading the way towards a greener and more sustainable tomorrow.”
“Novelis is committed to increasing the recycling rate for used aluminum beverage containers in the U.S. from 54% today to 75% by 2015,” said Jean-Marc Germain, President, Novelis North America. “Each year, Americans still discard over 50 billion aluminum cans which end up in landfills. Through campaigns such as this, awareness of the importance of recycling is increased and the message is spread that every can recovered is turned back into a new beverage can – saving energy, reducing greenhouse gas emissions, and decreasing the use of natural resources.”
The 2009 campaign categories were modified to improve opportunities for smaller-size cities and encourage more innovative campaigns to promote aluminum can recycling. The Most Cans Collected category was determined by the ratio of the city population to the total pounds of cans recycled.
The winners of the $5,000 awards for the most aluminum cans recycled are:
– First Place: Milwaukee, WI – Mayor Tom Barrett
– Second Place: Mobile, AL – Mayor Sam Jones
– Third Place: Fontana, CA – Mayor Mark Nuami
– Fourth Place: Bowling Green, KY – Mayor Elaine Walker
To spurn innovation and creativity in local initiatives, a $5,000 prize rewarded originality in public education and awareness campaigns. Winners used the funds to further their recycling efforts. The top three cities recognized for the Most Innovative Ideas in 2009 are:
– First Place: Irvine, CA – Mayor Sukhee Kang
– Second Place: Canfield, OH – Mayor Bill Kay
– Third Place: Wellington, FL – Mayor Darell Bowen
Additionally, the Challenge rewarded creative partnerships between cities and local affiliates of Keep America Beautiful, a national nonprofit focused on litter prevention, waste reduction and beautification. The campaign awards the winning city $5,000 and the local KAB affiliate $2,500.
– First Place: Montgomery, AL – Mayor Todd Strange/Montgomery Clean City Commission
– Second Place: LaGrange, GA – Mayor Jeff Lukken/Keep Troup Beautiful
– Third Place: Angleton, TX – Mayor Patrick Henry/Keep Angleton Beautiful
– Fourth Place: Newport News, VA – Mayor Joe Frank/Newport News Public Works Recycling
“Keep America Beautiful encourages public/private partnerships that engage individuals in reducing waste and recycling,” said Keep America Beautiful President & CEO Matthew McKenna. “We’re proud that, through this partnership, our network of affiliates are helping communities save energy, reduce their carbon emissions, protect natural resources and raise awareness about the significant impacts of individual choices and actions.”
In November 2009, Cincinnati was announced as the winner of The American Recycler Video Award, a fun, new component of the national challenge. The winning short, web-based film promoting aluminum can recycling will be featured in the upcoming 2010 Cans for Cash National Recycling Campaign.
For a complete list of cities that participated in the 2009 Cans for Cash program and to view the “Recycling Starts with I Can” video, please visit: www.cans4cash.com.
Source: Novelis Inc.
Survey uncovers what consumers really think about being green
According to a recent online survey by Whirlpool Corporation, the majority of consumers (68 percent) want to live “green” but only if it is convenient to their lifestyle. The study, conducted on its behalf by Harris Interactive®, found that while finances are top of mind and consumers are still on the hunt for a good bargain, many are unwilling to compromise; searching until they find the right product at the right price.
Overall, the survey demonstrates that consumers are becoming more and more savvy about how best to spend – and save – their hard-earned money. In fact, more than half of adults (59%) said they would rather spend more money now to save energy (and money) later when it came to home appliances. With that in mind, Whirlpool Corporation continues to lead the industry when it comes to efficiency, offering more than 300 ENERGY STAR® qualified appliances, more than any other manufacturer.
“As consumers begin to adopt a greener lifestyle, and the concept moves from trend to norm, we wanted to see if the collective mindset was shifting,” said Monica Teague, senior manager brand business teams, Whirlpool Corporation. “We also know that people are still watching their wallets. What we discovered is that consumers want the easiest path toward efficiency and cost-savings, and will not compromise until they find it.”
A previous online survey of 2,042 U.S. adults ages 18 and over conducted by Harris Interactive between December 29-31, 2008 and on behalf of Whirlpool Corporation found that there were several gaps – be they marital, gender or generational – in terms of high-efficiency awareness with regards to laundry-appliances(1). The 2008 survey found that the majority (84%) of consumers rate energy efficiency (as opposed to water or time) as the most important efficiency feature, however this year’s survey revealed that, at the same time, one-fifth of all adults are willing to sacrifice certain features or eco-efficiency to get a more affordable price.
Sixty-eight percent of adults said they do their best to be green to the extent that it fits into their lifestyles and their finances. Fortunately, Whirlpool Corporation offers some of the most water and energy efficient products on the market, in the kitchen and the laundry room and across all price points.
The survey also found that the majority of adults (68 percent) said they will search until they find the product they are looking for at the right price. Opinions varied by region with those from the South indicating that they will search until they find the product they are looking for at the right price (77%), while Midwesterners indicated that they will buy what is on sale (25%).
And, no surprise here, men and women had different opinions. More women (71 percent), as opposed to men (65 percent), are willing to search until they find the product they are looking for at the right price. Interestingly, 35-44 year-old men are more willing than women to sacrifice certain features and/or eco-efficiency to spend less (24% vs. 21% respectively).
This survey was conducted online within the United States by Harris Interactive on behalf of Whirlpool Corporation from November 20-24, 2009 among 2,089 adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
Source: Whirlpool Corporation
New Ceres Report: Investment managers still lagging in response to climate change risks and opportunities
Nearly half of money managers surveyed ignoring climate risks, considering it ‘non-material’
Although there is overwhelming scientific consensus that climate change is underway and governments are imposing regulations to curb greenhouse gases, the vast majority of the world’s largest investment managers are not factoring climate-related trends into their short- and long-term investment decision-making, the result being significant ‘hidden risks’ in the trillions of dollars of investment portfolios they are managing.
This is the key conclusion of a new Ceres report released today that surveyed leading assets managers in 2009 on their responses to the increasing business risks and investment opportunities associated with climate change. The survey was sent to the world’s 500 largest asset managers, according to the Pensions & Investments Global 500 Survey.
“Despite the growing recognition of the far-reaching impacts climate change will have on the global economy, only a handful of asset managers are integrating climate risks and opportunities throughout their investment practices,” said Mindy S. Lubber, president of Ceres and director of the Investor Network on Climate Risk. “These findings make clear that the investment community is overly focused on short-term performance and ignoring longer-term business trends such as climate-related risks and opportunities. The recent subprime mortgage meltdown is a painful reminder of the fallout for investors who ignored ‘hidden’ long-term risks.”
“The survey results, collected in early 2009, highlight the lag of major financial markets to deal with climate change, even as strong state and national climate policies are being adopted globally,” Lubber said.
The survey was done at the request of the Investor Network on Climate Risk, a network of 80-plus pension funds and other institutional investors who rely on asset managers to manage their investment portfolios. Eighty-four asset managers managing $8.6 trillion in assets completed the survey, including 66 in the P&I top 500 list and 18 others who responded at the specific request of INCR client members.
The report shows that while a large number of asset managers are in the preliminary stages of including climate risks in their due diligence, only a small percentage are considering a broad range of climate risks, such as regulatory, litigation, physical and competitive risks, as part of their due diligence process for evaluating companies. Nearly half of the respondents – 44 percent – said they do not consider climate risks at all because they do not believe that climate change is financially ‘material’ to investment decision-making.
A key problem identified in the report is that asset owners, such as pension funds and other institutional investors, are either not asking their asset managers to include climate risk and opportunity analysis, or are only beginning to raise the subject. This is hugely important because nearly half of the respondents – nearly 49 percent – said they did not analyze climate risks because their investor clients did not ask them to. Another shortcoming identified in the report: incentive structures and benchmarks that asset owners use for evaluating asset managers are heavily weighted towards short-term performance focusing primarily on quarterly returns where climate risks are far less likely to show up.
The report recommends that institutional investors push harder to get asset managers, consultants and others in the investment community to boost their attention to climate-related issues. The reports suggests that this be done through requests for proposals (RFPs), other hiring procedures or as part of managers’ performance reviews. Today, in an effort to do just this, a leading INCR member, the California State Teachers’ Retirement System (CalSTRS), announced it will engage its active equity managers on their climate risk analysis. Specifically, CalSTRS will highlight the need for each manager to have expertise in climate change and other sustainable investment analysis and to adapt their corporate governance voting practices to address climate risks.
“As a long-term investor, CalSTRS wants to invest in well-managed companies that can address the physical risks of climate change and adapt to the changing regulatory and market realities of a carbon-constrained economy,” said Jack Ehnes, chief executive officer of CalSTRS, the nation’s second largest public pension fund, with more than $130 billion of assets under management. “Our asset managers need to ask the right questions and critically evaluate how companies are positioned so that we’re sure that our investments will produce outstanding risk-adjusted returns for our members.”
The report, “Investors Analyze Climate Risks and Opportunities: A Survey of Asset Manager Practices,” highlights a handful of asset managers – MFS Management and F&C Management Ltd., among those – that are integrating climate risks and opportunities throughout their investment practices, including asset allocation, portfolio valuation and overall due diligence. “Like companies that are rethinking and retooling their business strategies in response to climate change, these asset managers are positioning themselves to capture the opportunities and understand and manage the risks of climate change across their portfolios,” the report said.
“To achieve the climate change goals necessary to avoid catastrophic climate change, companies will need to reduce their own greenhouse gas emissions and develop products and solutions to help the world shift onto a low-carbon growth path,” said Alexis Krajeski, associate director of Governance & Sustainable Investment at F&C Management Limited. “As long-term global investors, we want to invest in companies at the forefront of that change and view those lagging behind with caution. To make these assessments, we have developed requisite expertise and processes to incorporate climate-related risks into our investment decision-making. In time, we believe such enlightened investment thinking will lead to better investment performance and support the growing demand we see from clients.”
Other report highlights include:
- Nearly three-quarters of asset managers do not expressly consider climate risks in their overall due diligence.
- Firms offering “green” investment opportunities are more likely to analyze climate risks for all their investments than their traditional counterparts.
- Half of all asset managers believe that some sectors have significant exposure to climate risks, yet nearly half of those do not conduct climate risks analysis in their due diligence process.
- Less than one-third of asset managers incorporate climate risk into their corporate governance analysis. Even in sectors where asset managers believe that climate risk may be important, three-quarters have not changed their analysis of governance to include that risk.
- Fewer than one-third of asset managers have proxy voting policies for scrutinizing climate-related shareholder resolutions filed with companies.
Download a copy of the full survey report here: http://www.ceres.org/
Source: Ceres, Boston, MA
Consumers Energy: Clean coal plant project reaches major milestone with air permit
Consumers Energy’s clean coal power plant reached a major milestone today with the issuance of an air permit for the $2 billion-plus project.
The 830-megawatt plant is expected to create 1,800 construction jobs, about 2,500 indirect jobs, and then more than 100 permanent jobs after it is operating in 2017. Overall, the plant is projected to provide a $1.2 billion economic boost to Michigan.
“The issuance of the air permit for our new clean coal plant is good news for Michigan. This permit moves our project a step closer to creating badly needed jobs and boosting the state’s economy,” said John Russell, Consumers Energy’s president and chief operating officer.
“It also provides best-in-class protection for the environment with an offset for carbon dioxide emissions from the new plant and a substantial net reduction in overall emissions from our coal-fired generating fleet. It also will allow us to fully implement our balanced energy plan and provide customers with reliable, competitively priced electricity in the future.”
The new plant is part of Consumers Energy’s Balanced Energy Initiative. That comprehensive plan calls for a portfolio of diverse energy resources to meet the power needs of the utility’s 1.8 million electric customers over the next 20 years.
A recent analysis of the plan details how two-thirds of the projected new energy resources needed to serve customers through 2018 will be provided by renewable energy sources, energy efficiency and demand side management (reducing customer usage during peak periods).
The utility launched its energy efficiency initiative in July with programs to help business and residential customers save energy and save money. In its first six months of operation this initiative has benefited more than 170,000 Michigan homes with energy-saving measures.
Consumers Energy plans to invest more than $1.2 billion to build 450 megawatts of wind generating capacity and has secured wind development easements for more than 57,000 acres in Mason, Tuscola and Huron counties. The utility already is the largest supplier of renewable energy in Michigan, with more than 4 percent of the power that it supplies to customers coming from renewable sources.
The air permit for the new clean coal plant includes a commitment from Consumers Energy to retire up to seven of its older, less efficient coal units after the new unit begins operating at the company’s Karn/Weadock Generating Complex, near Bay City. Five of these older units will be retired following operation of the new unit, with retirement of the additional two older units dependent on customer need. The utility has the oldest fleet of coal plants in the nation with an average age of 50 years.
Russell said the plant retirements are consistent with the company’s Balanced Energy Initiative and will substantially reduce overall emissions from the company’s coal-fired fleet. The Balanced Energy Initiative approach – the new plant plus the eventual retirements of some existing plants and expanded renewable energy and energy efficiency – is expected to provide emissions reductions by 2018 from the current levels from the company’s existing coal fleet. Emissions are expected to be down as much as 91 percent for sulfur dioxide; 83 percent for nitrogen oxides; and 81 percent for mercury.
“The new coal plant will use state-of-the-art technology and be one of the cleanest coal power plants in the world. We’ve said all along that building the new unit would have an environmental benefit because it would allow us to retire some of our older units and result in emissions reduction,” Russell said.
The new plant will be designed to utilize carbon capture and storage technology once it becomes commercially and economically viable. Consumers Energy has been working with Western Michigan University scientists to evaluate the suitability of the geology surrounding the plant site to store carbon dioxide. Preliminary analysis indicates that the geology surrounding the plant site looks promising for carbon sequestration.
The next major step for the project is filing a certificate of necessity application with the Michigan Public Service Commission. The company expects to file that application in 2010.
“The certificate of necessity process is new for Michigan and was established in the state’s new energy law, put in place last year. With that process, the Michigan Public Service Commission conducts a comprehensive evaluation of the new power plant and evaluates alternatives. It also gives all stakeholders the opportunity to analyze and comment on the project,” he said. “This forward-looking regulatory process is one of many public policy improvements made in the state’s new energy law.”
The Balanced Energy Initiative is a key part of Consumers Energy’s Growing Forward strategy, which calls for investing more than $6 billion in the utility over the next five years. That includes significant investments in energy efficiency, renewable energy, environmental and customer service enhancements, and new power generation.
The substantial investments make Consumers Energy one of the largest – if not the largest – investor in the state of Michigan. Those investments will help the utility maintain and improve service to customers, create jobs, boost the state’s economy, and expand the state’s tax base.
Source: Consumers Energy
10,000 companies prepare to start low carbon diet plans on Jan. 1
President Obama and the EPA are gearing up to put the nation on a low-carbon diet and their strategy would do Weight Watchers proud: Count first, cut later.
The counting begins on Jan. 1, 2010 when some 10,000 companies and other entities, including municipalities and even some universities, must start measuring their greenhouse gas (GHG) emissions.
And while it’s uncertain when mandatory cuts will be announced – and whether Congress or the EPA will act first – the law firm of Plunkett Cooney said today that polluters might want to start dieting sooner rather than later because their GHG emissions, down to the plant level, will become part of the public record after March 31, 2011.
“New regulations to reduce carbon emissions are coming but public scrutiny will come first,” said Plunkett Cooney Senior Attorney. “Companies need to understand that from the standpoint of government regulation and public opinion, the debate about global warming is over. That means it’s time for them to develop sustainability plans and carbon reduction strategies before regulators, environmental advocates, shareholders and other groups force them to act.”
According to Mikalonis, entities that annually generate or emit at least 25,000 metric tons of carbon dioxide equivalents, which includes gases such as methane, nitrous oxide or several fluorinated gases, must measure and report their emissions to the EPA or face fines of up to $37,500 per day for each violation. The reporting threshold is equivalent to the annual GHG emissions from approximately 4,600 passenger vehicles.
Entities covered under the new rules include fossil fuel-fired power plants, landfills, fuel production facilities, chemical plants, steel and aluminum works, cement factories and large livestock operations. Data collection for motor vehicle and engine manufacturers begins in 2011.
“The reporting rules will drive a lot of transparency and allow company-to-company and plant-to-plant comparisons,” Mikalonis pointed out. “They will create public relations issues and potential legal problems for some companies, especially if they have been marketing themselves as ‘green’ when the emissions report says otherwise. But they also may speed up the adoption of energy-saving technologies, which can flow straight to the bottom line.”
In Michigan, carbon dioxide accounts for the vast majority of GHG emissions, which are due in large part to burning fossil fuels for transportation and electricity. Methane is the next largest contributor, mostly from the anaerobic decay of solid waste in landfills. Nitrous oxide, the third largest contributor, comes chiefly from agricultural soil management and mobile source combustion.
In 2002, a study conducted for the Michigan Department of Environmental Quality estimated per capita GHG emissions in Michigan were 6.2 million metric tons of carbon equivalents (MMTCE), which is slightly below the national average.
In terms of mandatory GHG cuts, Mikalonis said new rules are a fait accompli now that the EPA has said that rising levels are a danger to present and future populations. Companies must therefore decide how they want to influence the regulatory process.
“The EPA is obligated to enact rules to drive down greenhouse gas emissions if Congress does not act,” Mikalonis said. “Congress must decide if it is willing to compromise on issues like carbon cap and trade and energy taxes, or accept the risk that EPA may implement ‘command and control’ solutions. Businesses may prefer a mix of voluntary and legislative solutions and that approach should inform their overall sustainability strategy.”
Source: Plunkett Cooney
Ford leads the industry on fuel economy improvement, driven by powertrain advancements
Ford Motor Company has improved in fuel economy more than any other major automaker since 2004, according to a recent report by the U.S. Environmental Protection Agency. The EPA rated Ford’s combined car and truck fuel economy improvement at nearly 20 percent, almost double the next closest competitor.
Ford credits its recent gains in fuel economy in part to its introduction of the Ford Escape and Mercury Mariner hybrids and numerous incremental aerodynamic, mechanical, energy management and weight-saving improvements across its vehicle lineup. Going forward, it expects the 2009 introduction of the Ford Fusion and Mercury Milan hybrids and its fuel-efficient EcoBoost engines to further improve its fleet-wide fuel economy.
Dramatic fuel efficiency improvement is evident throughout Ford’s vehicle lineup – from cars and crossovers to sport utilities and trucks. Depending on powertrain specifications, the 2010 Fusion, Fusion Hybrid, Escape Hybrid, Taurus SHO, Flex, F-Series and Transit Connect offer best-in-class or unsurpassed fuel economy. The same can be said of the 2010 Lincoln MKS and MKT and Navigator, Mercury Milan Hybrid and Mariner Hybrid.
Ford expects to see its overall fuel economy continue to rise in 2010 with the introduction of the 2011 Ford Fiesta and redesigned 2011 Ford Focus – both high-mileage small cars.
“2009 has been a breakthrough year for Ford, leading with the launch of EcoBoost and the introduction of new products that will result in further improvement in 2010,” said Sue Cischke, group vice president, Sustainability, Environment and Safety Engineering. “Our commitment to delivering affordable, fuel-efficient vehicles for millions has never been stronger or better demonstrated.”
Not only is the improved fuel efficiency good for customers’ wallets, it benefits the environment as well. As a result of the boost, Ford lowered its tailpipe CO2 emissions more than any other automaker with a fleet-wide average of 434 grams per mile – 37 grams lower than its 2007 total and 25 grams lower than 2008.
A powerful difference maker
The fuel efficiency of the 2010 Ford Fusion improved 21 percent over the 2009 model, jumping from 28 mpg to 34 mpg in highway driving, and leap-frogging the competition. Powertrain improvements were a big difference maker. Fusion and other new models benefit from the introduction of Ford’s new six-speed transmission, which offers a wider gear span than four-speed transmissions.
The six-speed allowed Ford’s engineers the flexibility to tune the powertrain for greater responsiveness in low gears and better fuel economy in the taller gears. The new double-overdrive gearbox is designed to contribute up to 4 percent fuel economy improvement. Ford has committed that almost 100 percent of its transmissions will be advanced six-speed gearboxes by 2013.
Ford’s EcoBoost breakthrough
This year, Ford introduced its new line of powerful, fuel-efficient EcoBoost engines, available in the Ford Taurus, Ford Flex, Lincoln MKS and Lincoln MKT. Recently honored with a Popular Mechanics’ Breakthrough Award, EcoBoost uses gasoline turbocharged direct-injection technology for up to 20 percent better fuel economy, 15 percent fewer CO2 emissions and superior driving performance versus larger-displacement engines.
On average, nearly one in five buyers of the Taurus, Flex, Lincoln MKS and MKT have opted for EcoBoost since the engine lineup’s introduction in August. By 2013, Ford will offer EcoBoost engines in 90 percent of its product lineup with annual volume of vehicles with EcoBoost at 1.3 million globally.
“We are committed to delivering new products with the best fuel economy in every segment in which we compete – driven in large part by substantial advancements in powertrain technology,” said Barb Samardzich, vice president, Ford Global Powertrain Engineering. “We are focusing on sustainable technology solutions that can be used not for hundreds or thousands of cars, but for millions of cars, because that is how Ford truly will make a difference.”
It’s all about incremental improvements
The fact that the 2010 Ford Taurus and 2009 Ford F-150 are up to 12 and 17 percent respectively better on fuel economy than their 2004 predecessors isn’t due to one “silver bullet” solution but a host of vehicle enhancements, including aerodynamic refinements, weight efficiency and mechanical improvements.
The progress made by Ford during the past few years reflects an engineering philosophy that every joule of energy gained through incremental improvement is precious. Ford engineers work tirelessly using a systems approach to manage vehicle energy and implement a variety of design and engineering solutions that can each improve fuel economy by 1 percent or more. Taken together, the improvements help deliver significant savings for consumers at the pump.
Aerodynamics
The ease with which a vehicle moves through air greatly influences its fuel efficiency. Ford engineers use sophisticated computer modeling and wind tunnel testing to painstakingly tweak vehicle designs millimeter by millimeter to get the best possible aerodynamics without losing sight of the designers’ original vision. The energy saving can be significant. A 10 percent reduction in aerodynamic drag increases fuel economy by approximately 1 percent for cars and approximately 2 percent for trucks with conventional internal combustion engines.
The 2010 Fusion, Mercury Milan and Lincoln MKZ are 5 percent more efficient than outgoing models in terms of drag coefficient, which measures the force that pulls a vehicle back when it is moving. The Fusion S leads the group with a segment-topping 34 mpg highway rating, in part because it is 8 percent more aerodynamically efficient than the outgoing model.
Weight reduction
Reducing vehicle weight also is a critical part of fuel economy improvement. For every 10 percent reduction in weight, fuel consumption is estimated to improve by 3 percent. According to a recent study, replacing heavier materials with lightweight materials is nearly as important as hybrid technology for automakers to meet the expected increase in the One National Program regulations by 2016.
Ford increasingly uses light-gauge, high-strength steel and lightweight materials such as aluminum and magnesium to meet weight reduction goals ranging from 250 to as much as 750 pounds. In turn, weight savings in body and structural materials allow for the use of smaller-displacement engines and lighter-weight suspensions and chassis components.
The Fusion team eliminated 125 pounds for the S-Series fuel economy leader. The size of the radiator, for example, has been reduced in size by one-third with no degradation in performance. Also, 16-inch aluminum wheels and low-rolling resistance tires help aid aerodynamics while still delivering top performance.
Energy management
Ford is eliminating energy waste in every vehicle system, including power steering. Ford’s new Electric Power Assist Steering (EPAS) can improve fuel economy up to 3 percent, while reducing CO2 emissions and enhancing steering performance. EPAS saves fuel primarily because the steering system is powered by an electric motor connected to the vehicle’s battery, as opposed to engine-mounted hydraulic pump steering systems. By 2012 Ford plans to fit nearly 90 percent of the Ford, Lincoln and Mercury lineup with EPAS.
“While we are implementing our near-, mid- and long-term plans, we are continuing to achieve efficiencies throughout the vehicle in areas that can quickly lead to fuel economy improvement today,” said Derrick Kuzak, Ford’s group vice president of Global Product Development. “Whether we’re reducing wind drag, eliminating engine-driven power steering pumps or switching to low-friction engine oil, this attention to every detail and these small improvements collectively deliver significant fuel economy gains for our customers.”
A new frontier of electric vehicles
In 2009, Ford launched an aggressive plan to bring pure battery-electric vehicles, next-generation lithium-ion battery powered hybrids and a plug-in hybrid to market quickly and more affordably during the next four years.
The vehicles include:
– Transit Connect battery-electric commercial van in 2010
– Focus Electric passenger car in 2011
– Next-generation hybrid vehicle in 2012
– Plug-in hybrid in 2012
These new vehicles pave the way for additional applications in the future, using Ford’s high-volume global small car and midsize car platforms. The use of global platforms showcases Ford’s ability to develop products with worldwide market opportunities in mind. Powering the company’s electrification drive is its ONE Ford global product vision.
As part of Ford’s electrification plan, it will bring battery system design, development and manufacturing in house as a core competency in support of the development of its next-generation hybrid vehicle in 2012. This underscores Ford’s commitment and belief in the growth potential for electrified transportation. Ford will continue to work with supplier Johnson Controls-Saft on the design and development of battery cells and packs for Ford’s PHEV that also launches in 2012.
“Next-generation hybrids, plug-in hybrids and pure battery-powered vehicles are the logical next steps in our pursuit of greater fuel economy and sustainability,” said Nancy Gioia, Ford director of Global Electrification. “A growing number of consumers want that kind of choice, and we want to be in a position to deliver it to them across multiple vehicle categories.”
Source: Ford Motor Company