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Accenture end-consumer survey on Climate Change 2007Executive summary report - October 2007

A new consumer mindset –creating new businessopportunities and challenges

Foreword 3

Introduction 4

Objectives 4

Methodology 5

Key Finding #1 6Individuals are taking the lead on Climate Change

Key Finding #2 12Individuals need guidanceregarding how to change their behaviors

Key Finding #3 16People in emerging countries are the most concerned and ready to act

ContentsKey Finding #4 20In their decision to choose a provider (if an option), individuals value actions taken by energy providers to address Climate Change

Conclusions 26Implications for gas and electricity providers

Implications for oil and gascompanies

Implications for majorenergy users

2

Over the past year, the issue ofClimate Change has forced its way tothe top of the political and mediaagenda — sparking an ongoing publicdebate over the role that individualscan play in helping society to addressthe problem in a meaningful way.

Increasingly, consumers are taking upthe Climate Change agenda, anddemanding actions from governmentsas well as products and services frombusiness to help respond to thechallenge.

Significant efforts are underway totrack the rise of the ‘green consumer’through research and pilot projectsaimed at understanding the extent towhich consumers really care aboutgreen issues. Throughout theseinitiatives, there is intense interest inhow to translate this emergingconsumer need into profits, byoffering new products and servicesand defining new business models.

What is beyond doubt is that —irrespective of the precise reading onthe ‘green barometer’ — the ClimateChange debate has moved into themainstream in most countries.Consumers’ behaviour is notoriouslyhard to predict. But if there is onething that history does teach us, it isthat trends can spread like wildfireonce a few influential early adoptershave embraced them, and quicklybecome the norm across society.Witness the take-off of the MP3player, networking internet sites andthe mobile phone.

3

Foreword

1 IPPC report ‘Climate Change 2007: the physicalscience basis’, February 5th 2007, accessed onhttp://www.ipcc.ch/SPM2feb07.pdf

2007 has seen a step-change in the level ofconcern over the potentialthreat from man-madeClimate Change. InFebruary, the UnitedNations’ IntergovernmentalPanel on Climate Change(IPCC) published the firstpart of its latest report onClimate Change, confirmingwarming of the climatesystem is ‘unequivocal’ andthat there is a ‘very highconfidence’ that the netaffect of human activitieshas been one of warming1.

4

IntroductionUp to now it has been difficult forcompanies across the resourcesindustries to gauge the precise impactof Climate Change’s rising importancefrom the end consumer’s viewpoint ontheir business, as they strive for highperformance.

This situation has left several keyquestions unanswered.

Are individuals ready to act andtake concrete action to addressClimate Change? Will consumers tryto use their buying power to reducethe level of emissions? And will theybe prepared to pay more forproducts and services that helpachieve this objective?

Through its ongoingresearch and experience,Accenture is committed touncovering the keyattributes needed to helpour clients in everyindustry develop into high-performance businesses. Toreview the findings fromour wealth of research intohigh-performance, and toread about our experienceswith more than 500 high-performers, please visitwww.accenture.com.

The Accenture survey of more than7,500 consumers worldwide showsthat consumers across the globe arenot merely aware of Climate Changeas an issue, but are going further byadopting a new mindset that willchange the basis on which they makebuying decisions. This executivesummary report provides insights intothis fast-emerging new consumermindset, drawing on the findings fromthe 2007 Accenture end-consumersurvey on Climate Change.

ObjectivesThe aims of the Accenture end-consumer survey on Climate Changewere to reveal the personal opinionsof consumers worldwide on theimpact of Climate Change, and toanalyse their expectations of energy-related companies in the light of thisimpact.

The term ’Climate Change‘ refers tovariations in the Earth's globalclimate or in regional climates overtime.

The survey addressed the followingissues:

Individuals’ level of concern overClimate Change: How concerned arethey? What will the impacts ofClimate Change be? How quickly isaction needed if we are to address theissue efficiently and effectively?

The role of individuals in tacklingClimate Change: Are people ready tochange their behaviour and lifestyle?What actions are they taking already?

Individuals’ expectations towardsenergy-related companies: Doconsumers expect energy providers toact to address Climate Change? Arethey prepared to pay more forproducts and services that helpreduce the carbon emission? Whatwill be the business impact for energyproviders if they do not take anyconcrete actions?

5

Methodology

The study consists of quantitativeresearch based on a 20-minute surveyconducted online in native languageswith 7,526 consumers in 17 countriesworldwide. The consumer sample wasrepresentative of the generalpopulation in all territories except forBrazil, China and India, where thesample was representative of theurban population. Data collection wascompleted for Accenture by Gfk NOP.

US 1001Canada 510France 500Germany 500 Italy 500 Netherlands 507 Nordic (4 countries) 504 Spain 500UK 501Australia 501Japan 500Brazil 502China 500India 500

Interviews by Country

6

Individuals are taking the lead onClimate Change

One of the clearest findings from theAccenture research is that individualsare taking the lead on ClimateChange, in response to deep concernover its effect on their everyday lives.Eighty-five per cent of respondentsworldwide are either ‘extremely’ or‘somewhat’ concerned by ClimateChange, and 81% think it will directlyimpact their lives.

Key Finding #1

Somewhat concerned Extremely concerned

Base: all respondents

Not very concerned Not at all concerned

Are you concerned by Climate Change?

45%

40%

3%12%

85%

Figure 1

Source: Accenture end-consumer survey on Climate Change 2007

7

Probably Certainly


Probably not Certainly not

Do you think that Climate Change will directly impact your life?

42%

39%

3%16%

81%

Figure 2


8

While consumers expect ClimateChange’s most important impacts tobe on weather and the ecosystem,three out of four believe it will alsohave a significant impact on people’shealth.

42%

40%

36%

35%

30%

23%

45%

44%

48%

48%

50%

51%

11%

13%

14%

14%

16%

22%

2%

3%

2%

3%

4%

4%

87%

84%

84%

83%

80%

74%

Devastating

Important

Limited

No impact

Extreme weather

Total devastating + important

Water

Land

Bio Diversity

Food

Health

According to you what will be the impact of Climate Change on the following aspects?


Ecos

yste

m

Figure 3


9

Most respondents believe theircountries need to take action toreduce carbon emissions, both interms of extensive (or significant)reductions in emissions and throughrapid action. A significant majority ofrespondents (65%) believe that actionshould be instigated by 2010,reflecting the level of urgency thatClimate Change has in many people’sminds. While wholesale emissionsreductions are not feasible by 2010from technical grounds, it doesindicate that consumers are startingto give a mandate to business andGovernments to address the issue.

35%

47%

12%

6%

Extensive

82%

Significant

Limited

Don’t Know

According to you, how large a reduction in carbon emissions will be required for your country?


Figure 4


65%

19%

3% 1% 1% 2%

9%

Don’t Know

Later21002080205020302010

How quickly must most of the countries act in reducing their carbon emissions?


Figure 5


10

What is more, most respondents arealready taking such action, sayingthey ‘frequently’ recycle paper orplastic, shut down electric devicesinstead of leaving them on standby,turn down the heating at home, anduse high-efficiency light bulbs. Overone out of three respondents alsostate that they regularly buy productscontaining recycled material (seeFigure 7).

Given this level of concern, consumersare not just prepared to act — but arealready doing so. As Figure 6 shows,71% of respondents believe thatClimate Change is a serious issuedemanding action by individuals aswell as businesses and politicians.

You feel concerned and think that most efforts to address Climate Change efficiently shall come from politicans, companies (energy providers and major energy users) BUT also actions taken at the individual level

You think that Climate Change is over-hyped and you do not feel concerned

You feel concerned and think that most efforts to address Climate Change efficiently shall come from politicans and companies (energy providers and major energy users)


Which statement best describes what you think?

71%

10%

19%

Figure 6


71% 19%

50%6% 4%

62% 26% 9% 3%

61% 28% 7% 4%

59% 25% 10% 6%

41% 43% 12% 4%

38% 20% 12%

32% 16% 16%

32% 20% 17%

31% 19% 20%

31% 19% 25%

13% 18% 45%

Frequently

Sometimes

Rarely

Never

Actions taken regularly by the majority of the respondents

Actions taken regularly by at least one respondent out of 3

Avoid eating food imported by plane and buy food produced locally

Recycle paper or plastic goods

Shut down electric devices instead of leaving them on stand-by

Reduce heating temperature at home

Use high efficiency lightbulbs, (CFLs)

Buy products that contain post consumer waste (recycled material)

Avoid taking car and rather use bike, public transport, carpool in order to save energy/carbonConsider buying a more energy efficient car

Improve the level of your home insulation

Prefer train to plane when possible

Use alternative energy like solar energy

How often do you currently do the following actions?


30%

36%

31%

30%

25%

24%

Figure 7


The findings reveal some interestingcontrasts between different segmentsof the population. In general, womenare more concerned and more likely totake action than men, whileindividuals of both sexes with thehighest income — the top 25% ineach country — are the mostconcerned and most active. In termsof geographies, the most concernedand active countries are emergingcountries (Brazil, China, India) alongwith France, Canada and Japan.

11

Individuals need guidanceregarding how to change theirbehaviors

Most people are already acting ontheir concerns about Climate Change— but our research confirms thatmany more would do so if they wereconvinced that their actions wouldmake a positive and efficient impact.Given credible evidence, half of therespondents not currently takingaction would ‘certainly’ start usinghigh-efficiency light bulbs, recyclingpaper or plastic, and using alternativeenergy sources. More than a thirdwould consider buying a more energy-efficient car.

12

Key Finding #2

Would you be ready to take the following actions more often to address Climate Change if you were convinced of their efficiency to address Climate Change?

41% 50%

39% 51%

46% 44%

38% 50%

43% 45%

44%

47%

47%

46%

41%

42% 27%

Probably Certainly


Use high efficiency lightbulbs, (CFLs)

Recycle paper or plastic goods

Buy products that contain post consumer waste (recycled material)

Use alternative energy like solar energy

Improve the level of your home insulation

Shut down electric devices instead of leaving them on stand-by

Consider buying a more energy efficient car

Avoid eating food imported by plane and buy food produced locally

Prefer train to plane when possible

Avoid taking car and rather use bike, public transport, carpool in order to save energy/carbon

Base: excludes those who already take these actions frequently

44%

36%

36%

29%

31%

Figure 8


As these findings suggest, consumersare hungry for advice and guidance onhow to address Climate Change. Inseeking this guidance, their two mosttrusted sources of information areacademics/scientific associations, andconsumer associations/NGOs, bothcited by over 90% of respondents.Energy providers have room toincrease their credibility, with 87% ofthe respondents saying they“sometimes” or “never” trust them toprovide some information on personalactions to address Climate Changeefficiently.

13

43%

40%

37%

14%

30%

13%

52%

44%

56%

57%

50%

59%

5%

13%

7%

29%

28%

Always Sometimes Never

Academics / Schools / Scientific associations

Consumer associations / Non Governmental Organizations

Government / Governmental Organizations

Energy providers (electricity, gas, oil providers)

What sources of information do you trust the most to inform you on concrete actions that you can take at a personal level to address efficiently Climate Change?


Figure 9


The vast majority of respondents areinterested in receiving information onhow to address Climate Change fromenergy providers (see Figure 10) — butmost also think energy providers’communications on this issue arecurrently insufficient and need toimprove (see Figure 11).

42%9%3%

12%4%

21%7%

46%

37%

46%

38%

35%

Not interested at all

Not very interested

Somewhat interested

Very interested

Consumer information to develop your level of knowledge on how to reduce carbon emissions at your personal level

Regular status on your individual energy use and carbon emissions

Free phone line to get advice on reducing your energy use and carbon emissions

Would you be interested in the following concrete actions / services that might be proposed by energy providers to help you address Climate Change at a personal level?


Figure 10


14

As Figure 12 shows, energy providerscould increase their credibility onClimate Change by improving theclarity and transparency of theircommunications on the actions theytake to address the issue.

7%

32%

61%

At level, no improvement required

93%

About right – slight improvement required

Insufficient – significant improvement required

What do you think of the communications made by energy providers (i.e. electricity, gas, oil providers) on their actions taken to address Climate Change?


Figure 11


68%65%

44%

FrequencyTrasparencyClarity

What improvement do you expect on the communications made by energy providers on their actions to address Climate Change?

Base: All who feel communications made by energy providers on their actions to address Climate Change require improvement

Figure 12


15

The level of trust towards energyproviders’ communication andinformation services proposed by themvaries from country to country. Thehighest levels of interest in suchcommunications are found in Brazil,India, China, Italy, Spain, Canada,France and Australia

Taken together, these findings showthat energy providers have a majoropportunity to establish themselves asa trusted source of information on theactions that individuals can take toaddress Climate Change. The vastmajority of consumers in our samplehave either changed their lifestylesalready, or will do so if someoneconvinces them that they can make adifference. The door is open forcompanies to act as catalysts to makethis happen.

Energy providers have amajor opportunity toestablish themselves as atrusted source ofinformation.

16

People in emerging countries arethe most concerned and ready toact

While our respondents across theworld are concerned about ClimateChange and its impact, this concernappears to be at its greatest in theemerging countries in our survey —Brazil, India and China. Ninety-sevenper cent of consumers in thesecountries are concerned about ClimateChange, compared to a global averageof 85%, and 98% think it will directlyimpact their lives, compared to 73%in Europe.

Key Finding #3

80%

20% 19%10%

3%

81%90%

97%

Emerging countries

Europe Japan / Australia

North America

Are you concerned by Climate Change?

Yes

No


Figure 13


17

77%

23% 27%12%

2%

73%88%

98%

Emerging countries


North America

Do you think that Climate Change will directly impact your life?

Yes

No


Figure 14


Respondents in emerging countries(China, Brazil, India) are also the mostaware of the level of effort required tostabilise carbon emissions.

34%

44% 48% 46%50%

32% 38%42%

Emerging countries


North America

According to you, how large a reduction in carbon emissions will be required for your country?

Extensive

Significant


Figure 15


Given this level of concern, it is hardlysurprising that consumers in theemerging markets are more active intaking individual action to tackleClimate Change. Over 80% of ouremerging markets respondents — a farhigher proportion than in otherterritories — say they frequently orsometimes avoid taking the car orbuying food imported by plane, andabout twice as many use alternativeenergy.

18

How often do you currently do the following actions?% active (takes actions frequently / sometimes)

North America

Europe

Japan / Australia Significantly higher proportion than in the other regions

Emerging Countries

Recycle paper/plastic goods

86%

93%

92%

86%

88%

89%

80%91%

91%

89%

87%85%

85%

83%

83%84%

71%

65%

61%77%

57%

58%

64%82%

61%

62%

52%63%

32%

59%

59%72%

23%

24%

30%56%

53%

70%

66%82%

Shut down electric devices


Buy recycled materiels

Avoid taking car

Consider buying a more energy efficient car

Avoid eating food imported by plane

Improve the level of home insulation

Prefer train to plane

Use alternative energy

Figure 16


19

Significantly, our respondents inemerging markets also say that socialpressures play a much more importantrole in motivating them to takeconcrete action.

How important would the following elements be to motivate you to take concrete actions (e.g. avoid taking cars, reduce heating temperature at home, recycle paper or plastic goods, …) to reduce your level of carbon emissions?

North America

Europe

Japan / Australia Significantly higher proportion than in the other regions

Emerging Countries

95%

94%

94%

96%

90%

89%90%

91%

82%80%

83%

85%

57%

56%

58%

83%

Savings on your bills

Incentives

Taxes

Social pressure

Figure 17

Source: Accenture end-consumersurvey on Climate Change 2007

The implication of these findings is that resourcescompanies developing strategies for emerging marketsshould keep the Climate Change agenda firmly in view asa key element of the local consumer mindset.

To an extent, it seems that the urban consumers wesurveyed in developing countries are setting a lead thatthe rest of the world may ultimately follow.

20

In their decision to choose aprovider (if an option), individualsvalue actions taken by energyproviders to address ClimateChange

If individuals worldwide really areconcerned about Climate Change andgenuinely want to address it, then thisconcern will inevitably have an impacton their behaviour and choices asconsumers. The respondents in ourresearch say unequivocally this isgoing to happen. In short, they claimthey are going to put their moneywhere their mouth is — both byswitching to providers offering to helpreduce carbon emissions, and also bybeing prepared to pay more for theselower-carbon products and services.As figure 18 and 19 show, the findingsspeak for themselves. Nine out of tenrespondents say that if they hear thatan electricity, gas or oil provider is nottaking concrete action to addressClimate Change, then their perceptionof that company will become morenegative.

Key Finding #4

It will negatively impact your image of this company but not significantly enough to choose another provider

It will have no impact and will not change your relationship with this company

It will negatively impact your image of this company and you will choose another provider


If you hear that a electricity / gas provider does not take any concrete action to address the Climate Change issue, will that have an impact on the image of this company?

36%

10%

54%

Figure 18


21

Half add that they would be willing toswitch to a competitor as a result, ifthis option is open to them in theirlocal market (see Figure 18 and 19).

Equally importantly, this same mindsetprovides positive opportunities forcompanies to differentiate themselves.

As Figure 20 shows, 89% ofrespondents say they are ready toswitch to energy providers who offerproducts and services that help toreduce the level of carbon emissions.

It will negatively impact your image of this company but not significantly enough to choose another provider

It will have no impact and will not change your relationship with this company

It will negatively impact your image of this company and you will choose another provider


If you hear that an oil provider does not take any concrete action to address the Climate Change issue, will that have an impact on the image of this company?

30%

9%

61%

Figure 19


Yes, probably Yes, certainly


No, probably not No, certainly not

If an energy provider was proposing products / services that help reduce the level of carbon emission would you be willing to switch to this provider?

48%

2%9%

41%

89%

Figure 20


22

Consumers are even prepared toreward the providers of such productsand services by paying more. As Figure21 shows, 64% of our respondentswould be ready to pay a higher priceto benefit from products and servicesthat help reduce the level of carbonemissions. 15%

49%

28%

8%

Yes, certainly

64%Yes, probably

No, probably not

No, certainly not

Would you be ready to pay more to benefit from products / services that help reduce the level of carbon emission?


36%

Figure 21


26%

51%

6%2% 1% 1%

13%

Don’t Know

> 50%41-50%31-40%21-30%11-20%0-10%

What premium would you be ready to pay to benefit from products / services that help reduce the level of carbon emission?

Base: All who might pay for more to benefit from products and services that help reduce the level of carbon emission

Figure 22


23

Consumers are actively interested inmost of the Climate Change-relatedactions / services that might beoffered by energy providers. Financialsupport, savings and renewableelectricity products are the three mostpreferred options, with one respondentout of two ‘very interested’ in these.

A small LCD screen at home to allow you to monitor your own energy use

Savings on your electricity / gas / fuel bill for any reduction of your individual carbon emission

Renewable electricity products

Financial support for investment in efficient energy solutions for the home

Consumer information to develop your level of knowledge on how to reduce carbon emissions at your personal level

Biofuels for cars, i.e. fuels produced from organic sources

Regular status on your individual energy use and carbon emission

The option to generate your own electricity with a small windmill or solar panel

Fuel cell technology

Free phone line to get advice on reducing your energy use and carbon emissions

The option to purchase 'offsets' for your carbon emissions

Would you be interested in the following concrete actions / services that might be proposed by energy providers to help you address Climate Change at a personal level?


5% 31% 62%2%

7% 39% 51%3%

9% 39% 49%3%

9% 42% 46%3%

10% 38% 48%4%

4% 46% 38%

5% 37% 45%

6% 39% 40%

7% 42% 31%

7% 37% 35%

10% 29% 19%

12%

13%

15%

20%

21%

42%

Not interested at all

Not very interested

Somewhat interested

Very interested

Figure 23


24

With a growing mandate for actionfrom consumers and scientists,policy makers are increasinglylooking to the demand-side forsolutions.

Accenture expects the policysolutions for the demand-side to beboth strengthened and extended tohelp deliver reductions in emissionsas well as contributing to securityof supply. In this context, threetypes of policy initiative will comeunder consideration.

Standards and specifications.This commonly-applied policy toolis likely to be extended andtightened, with more and morecountries moving towards anaspiration of zero-carbon (or atleast low-carbon) buildings.Similarly, appliance efficiencyprogrammes, such as Energy Star inthe US and Japan’s ‘Top Runner’,are likely to be expanded.

Support for demand-side focusedbusiness models. Several governments are expectedto mandate or incentivisebusinesses to offer solutionssupporting demand-side activities.Examples include smart meteringimplementations, demand-sidemanagement programme incentivesand support for energy servicessolutions.

Integrating the demand-side intocarbon markets.An additional policy area that willsupport the demand-side is thecreation of a framework that allowsenergy efficiency improvements(sometimes called negawatts) to bevalued in the carbon markets.Considerable challenges remain, buta solution to these would provide amajor impetus to the demand-sidemarket.

Policy makers are putting growingpressure on energy suppliers tochallenge their traditional businessmodel — high consumption driveshigh revenues — and innovate.Regulators in a number of USstates are rewarding energysuppliers for energy efficiency by’decoupling‘ revenues from unitsales. To achieve this, tariffstructures are altered to guaranteeenergy efficient utilities’ earnings(despite lower unit sales) while alsooffering financial incentives forefficiency. At the same time, the EUis compelling utilities to provideconsumers with up-to-dateinformation about energy prices,usage and efficiency measures, inorder to enable them to makebetter-informed energy-efficientdecisions.

25

In terms of territories , people in Italy,Spain, Canada, Japan and in theemerging countries in the survey —Brazil, China and India — are morelikely to switch to a new energyprovider if this provider was proposingproducts / services that help reducethe level of carbon emissions. Exceptfor Japan, consumers in these marketsare also consistently more ready topay a premium for products / servicesthat help reduce the level of carbonemission.

Overall, the Accenture research studysuggests consumer mindset across theworld is undergoing a profound andrapid change, as addressing ClimateChange becomes an increasinglyimportant consideration in their choiceof products and services. While the initial impact in businessterms may be most evident on energyproviders, it seems likely that this impactwill increasingly spread to otherresources companies either directly, or asthe impacts trickle through the supplychain from consumer-facing businesses.From oil and gas companies to retailersto financial services to governments —no provider of products or services willbe immune from consumers’ scrutinyand action. As a result, the impact ofClimate Change is an increasignlyimportant consideration for businesses ofall types as they strive for highperformance.

This seismic and rapid shift in the globalconsumer landscape presents major newopportunities for companies to take alead in addressing Climate Change, andsimultaneously gain competitivedifferentiation in the eyes of consumers.Individuals around the world want totake action at a personal level to helpaddress what they believe is one of thegreatest challenges currently facingmankind. Companies that find or developthe new business models that helpconsumers put this commitment intoeffect throughout all their activities —from product development todistribution, and from facilitiesmanagement to packaging — will reapthe rewards. Another key implication isthe potential impact that ClimateChange attitudes could have on demandside actions —conservation andefficiency improvements. The potentialfor cost reduction from the demand-side

has been known for many years, butattempts to realise this potential havebeen hampered by a lack of interest fromthe consumer. Accenture’s researchindicates that Climate Change concernmay be the stimulus for consumers tostart managing their energy use moreactively and more aggressively, whetherit is electricity, natural gas, gasoline ordiesel. This could also easily translateinto more active management of thecarbon footprint for other products andservices. Finally, it must be rememberedthat a company’s employees areconsumers too. The desire to work forfirms that are taking meaningful steps toaddress Climate Change andenvironmental issues more generally is atrend that is becoming apparent in manycountries. Positioning on Climate Changeis likely to play an increasing role in thewar for new graduates as well as inretaining existing talent.

Implications for gas and electricity providers

Accenture’s research indicates a significant and rapid change in mindsetfor a gas and electricity provider’s customers. Indeed it will require them toreinvent their core customer proposition. Currently, the simple volume-based revenue model appears to be counter to the aspirations of policymakers who would like to drive reductions in energy use. Consumerdemand for consumption information, lower carbon products, demand sidemanagement and support for efficiency and conservation actions in homeand business requires a new model. Revenues will need to be decoupledfrom commodity volumes to prevent profit erosion. The good news is thatour survey suggests there may be a new category of products and servicesthat are of interest to consumers. The key will be to transform the businessmodel to enable delivery of more complex, information-intensive productsand services, in an efficient and profitable way.

The potential impact of consumer attitudes on Climate Change will alsofeed through into the generation sector. Currently consumers generallyhave, at most, a simple choice between ‘renewable’ or standard electricity.Growth in consumer awareness could see a much more sophisticated setof buyers emerge who value lower-carbon intensity, even if it is notrenewable. One UK energy retailer has already started to market itself asthe lowest CO2 supplier. If such positioning proves to be successful it maybecome a consideration in both power station investment and in wholesaleelectricity purchasing.

26

Conclusions

Implications for oil and gas companies

The Accenture survey has clear implications for oil and gas companies.First, the consumer interest and knowledge of Climate Change needs tobe understood and considered in both decision making and brandpositioning. The survey indicates that consumers trust companies lessthan governments, academics or NGOs. For oil and gas companies thisraises the problem of how they can regain trust with a consumer basewith which they have limited ongoing communication.

Consumers indicated their propensity to switch away from companieswho they believe to be behaving in ways that are not conducive withClimate Change mitigation. Historically we have seen that concertedconsumer action over environmental concerns can impact revenues. Sucha scenario could be driven by a diverse set of circumstances, and oilcompanies will need to be aware of how their actions could trigger such aresponse from consumers. Moves toward the increasing use ofunconventional oil sources will generally increase the carbon intensity ofproducts. It remains to be seen whether these considerations will becomeimportant to consumers.

Finally, the survey indicates an increasing interest from consumers inefficiency opportunities. While it is unlikely that we will see significantimpact in the shorter term this could presage an increasing move to moreefficient diesel and other technologies in many countries, impacting boththe refining and overall fuel mix compared to current forecasts.

27

Implications for major energy users

Major energy users rarely have end consumers as part of their directcustomer base. However, consumer attitudes on Climate Change anddesires for a lower carbon impact will clearly trickle through to theindustrial sector. For example, a desire for detailing the ‘embedded’ carbonin products is becoming increasingly common in some countries.

Retail giant Wal-Mart recently announced it will encourage its suppliersto measure and manage their greenhouse gas emissions incurred in themaking of certain products.

With the importance that Climate Change appears to hold in the minds ofconsumers it is a small step to expect carbon labelling of other productssuch as household appliances, cars and building materials. If this becomesan important buyer value we may start to see premiums attached tometals, chemicals and paper products that have a lower footprint. As partof this trend it is likely that a form of component branding will developthat can indicate if the manufacturer has used lower-greenhouse gasproducts.

Copyright © 2007 AccentureAll rights reserved.

Accenture, its logo, and High Performance Deliveredare trademarks of Accenture.

About Accenture

Accenture is a global managementconsulting, technology services andoutsourcing company. Committed todelivering innovation, Accenturecollaborates with its clients to helpthem become high-performancebusinesses and governments. Withdeep industry and business processexpertise, broad global resources anda proven track record, Accenture canmobilize the right people, skills andtechnologies to help clients improvetheir performance. With approximately 170,000 peoplein 49 countries, the companygenerated net revenues of US$19.70billion for the fiscal year endedAugust 31, 2007. Its home page is www.accenture.com.

Contacts

David J. AboodGlobal Director, Accenture ClimateChange and Energy [email protected]

Jonathan BurtonAccenture Climate Change and EnergyManagement Practice – SubjectMatter [email protected]

Curt VolkmannAccenture Climate Change and EnergyManagement Practice – UtilitiesIndustry [email protected]

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