Organization: Southern Company

Year: 2010

Description: WHEREAS: The International Energy Agency (IEA) warned in its 2007 World Energy Outlook that "urgent action is needed if greenhouse gas [GHG] concentrations are to be stabilized at a level that would prevent dangerous interference with the climate system." In its 2009 report the IEA notes that “The scale and breadth of the energy challenge is enormous – far greater than many people realise. But it can and must be met. The recession, by curbing the growth in greenhouse-gas emissions, has made the task of transforming the energy sector easier by giving us an unprecedented, yet relatively narrow, window of opportunity to take action to concentrate investment on low-carbon technology.”
 
In October 2006, a report authored by former chief economist of The World Bank, Sir Nicolas Stern, estimated that climate change will cost between 5% and 20% of GDP if emissions are not reduced, and that GHGs can be reduced at a cost of approximately 1% of global economic growth.
 
U.S. power plants are responsible for nearly 40% of the country’s carbon dioxide emissions, and 10% of global carbon dioxide emissions.
 
Coal-burning power plants are responsible for 80% of carbon dioxide emissions from all U.S. power plants and Southern Co. is the second-largest emitter of CO2, the principal GHG linked to climate change, among U.S. power generators.
 
Levels of carbon dioxide, which persists in the atmosphere for over 100 years, are now higher than anytime in the past 400,000 years and they will continue to rise as long as emissions from human activities continue.
 
President Obama and many members of Congress are pressing on plans to limit greenhouse gas emissions; this will surely impact the business of our Company regardless of the mechanisms.
 
AEP, the nation’s largest carbon dioxide emitter, Entergy and Exelon have set total GHG emissions reduction targets.  Duke, Exelon, FPL, NRG, and others, through their participation in the U.S. Climate Action Partnership, have publicly stated that the U.S. should reduce its GHG footprint by 60% to 80% from current levels by 2050. They have endorsed adoption of mandatory federal policy to limit CO2 emissions to provide economic and regulatory certainty needed for major investments in our energy future.
 
Southern opposes mandatory regulation of CO2 and other GHG emissions in favor of voluntary action.  While our company has added cleaner natural gas capacity, is investing in renewable energy, has reduced the intensity of its CO2 emissions, and looks to reduce GHG emissions by 80% by 2050 (Southern Co response to CDP6), we believe Southern still needs to articulate a cohesive business plan for dealing with climate risk and opportunity, and offer robust responses to the financial, regulatory, and technology impacts of the climate crisis.
 
RESOLVED:  Shareholders request that the Board of Directors report to shareholders actions the company would need to take to reduce total CO2 emissions, including quantitative goals for existing and proposed plants based on current and emerging technologies, by September 30, 2010. Such report shall omit proprietary information and be prepared at reasonable cost.