We are committed to continuing to support the development of global emissions markets and products to drive market-based solutions to environmental challenges or mandates. In addition, as an efficient business operator and corporate citizen, we are committed to ensuring our impact on the environment is minimized. We have many initiatives underway to ensure our success on each of those fronts.
Sustainable Carbon Emission Markets and Renewable Energy
As the leading listing and trading venue for global energy companies and commodities markets, our global range of products continues to grow to meet greater customer demand. Today, we offer more than 1,000 energy contracts across oil, natural gas and power and list 98% of publicly-traded energy companies, by market cap. As a complement to the broad range of energy products traded on our markets, we offer a slate of environmental contracts that support programs established to reduce carbon emissions and encourage the use of renewable energy.
ICE lists futures and options contracts in the U.S. and Europe that are based on government programs that seek to reduce greenhouse gas emissions and increase the use of renewable forms of energy, such as wind and solar. ICE Futures Europe is the world’s leading market for carbon dioxide (CO2) emission allowances. And ICE Futures U.S. is the leading operator of markets for U.S. regional carbon reduction programs, state-based renewable energy certificate trading programs and allowances issued in the EPA’s Clean Air Act.
We started investing in environmental markets in 2003 through a partnership with the Climate Exchange, which we fully acquired in 2010. Now, with well more than a decade of investment in our products, ICE is recognized as a global leader in emissions and renewable energy markets. These investments help support the adoption of carbon emission markets and are an important contribution to efforts to reduce greenhouse gases and promote the use of renewable energy around the world.
Our services include critical risk management tools and help businesses meet government-mandated emissions reduction targets and other regulations in a cost-effective manner. The establishment of a transparent, marketbased pricing system helps companies make decisions on how to allocate resources and invest in new technologies and innovative solutions. ICE’s products provide open markets, price discovery and transparency, as well as an effective means to comply with the requirements of various government programs.
And we continue to work with carbon market participants to design contracts that meet the demand for new products and areas of compliance as these markets expand globally.
On our London-based exchange, ICE Futures Europe, we offer futures and options contracts on four types of carbon units:
Products and Programs
In North America, through ICE Futures U.S., we offer products that support programs in a number of states and provinces including in California, Connecticut, Maryland, Massachusetts, New Jersey, Pennsylvania, Texas, Quebec and Ontario. A complete list of products is available here.
Our products in Europe and North America facilitate risk management in the following regulatory programs:
European Emissions Trading System
The EU Emissions Trading System (EU ETS) is acornerstone of the European Union's policy to combatclimate change and is a key tool for reducingindustrial greenhouse gas emissions cost-effectively.Being the first — and largest — international systemfor trading greenhouse gas emission allowances, theEU ETS covers more than 11,000 power stations andindustrial plants in 31 countries, as well as airlines.
ICE Futures Europe lists futures and options contracts for EU allowances, EU aviation allowances, and Certified Emissions Reductions. Since launching in 2005, contracts accounting for more than 50 billion tons of carbon emissions have traded on the ICE platform.
California Cap and Trade Program
The State of California passed a law in 2006 to reduce greenhouse gas emissions to 1990 levels by 2020. The program, which covers large industrial emitters as well as electricity generators and importers, kicked off in 2013 and expanded to include transportation fuels in 2015. In 2014, the Canadian province of Quebec linked its carbon cap and trade program to California’s.
ICE Futures U.S. lists futures and options contracts based on the California Carbon Allowances that form the basis of California’s cap and trade program. Since launching in August of 2011 and through the end of 2016, ICE has traded contracts accounting for 1.17 billion tons of emissions related to California’s program.
Regional Greenhouse Gas Initiative
Regional Greenhouse Gas Initiative (RGGI) was the first market-based greenhouse gas reduction program in the U.S. It launched in 2009 with participation from several states in the Northeast. Following a program review in 2012, RGGI set a new 2014 cap of 91 million short tons that will decline by 2.5% a year through 2020. RGGI states sell nearly all emission allowances through auctions and invest proceeds in energy efficiency, renewable energy, and other consumer benefit programs. These programs are spurring innovation in the clean energy economy and creating green jobs in the RGGI states.
ICE Futures US lists futures and options contracts based on RGGI allowances and has traded contracts accounting for more than 1.9 billion tons since trading began in 2008.
EPA Criteria Pollutant Markets (SO2 and NOx)
The U.S. Environmental Protection Agency (EPA) finalized rules in 2011 that reduce air pollution and attain clean air standards. These rules, known as the Cross-State Air Pollution Rule (CSAPR), require states to significantly improve air quality by reducing power plant emissions that contribute to ozone and/or fine particle pollution in other states.
ICE Futures US lists futures and options contracts based on the various programs for SO2 and NOx reduction.
Renewable Energy Certificates
Renewable Energy Certificates (RECs) are used to track and account for the use of renewable energy including for the purposes of state-administered programs that require electric utilities to use a prescribed amount of renewable energy.
ICE Futures US lists futures and options contracts based on renewable energy programs run by the States of Connecticut, Massachusetts, New Jersey and Texas. Since launching trading of RECs in 2009, ICE has traded contracts accounting for more than 35 million certificates.
COMMITTED TO SUSTAINABILITY PRINCIPLES IN OUR WORK ENVIRONMENTS
Reducing our environmental impact is not only the right thing to do as good corporate citizens, but also a good business practice. As a company with more than 5,600 employees around the world, we are committed to preserving our planet’s natural resources and ensuring the health and safety of our employees, families and communities. We are a service business, providing technology, financial and data services for our customers. We do not manufacture or transport products that impact natural resources or contribute to pollution.
Our main environmental impact continues to relate to the footprint of our office facilities and data centers, as well as our employee travel. We have integrated a number of acquired companies during the past two years, consolidating offices, moving to open shared workspaces, and improving the efficiency of our facilities and their surroundings.
We operate our global businesses around the clock each business day on multiple continents. We strive to build offices that serve our employees as well support our commitment to sustainability. We consider environmental impact in designing and renovating buildings, including new office space that was completed in Atlanta and New York during 2016.
Our data centers in the U.S. and U.K. enable a global trading ecosystem that fuels capital markets. Our centers have implemented industry leading techniques to improve energy efficiency, reduce waste and offset operating emissions. The building structures provide a high level of insulation and minimize outside air infiltration, reducing solar heat gains, lowering thermal losses and delivering a more efficient cooling profile and lower energy demand. The design and operation of the cooling plants, using variable speed controllers and intelligent plant control algorithms, provide the best match of cooling supply to the cooling demand, minimizing capacity over-provisioning and reducing peak power consumption.
Corporate Sustainability Assessment (CSA)
In 2016, we participated in the RobecoSAM’s Corporate Sustainability Assessment (CSA), which feeds the Dow Jones Sustainability Index (DJSI). We scored above the industry average in a number of categories, including anti-crime policy and measures, codes of business conduct, corporate governance, information security and cybersecurity, business risks and opportunities and talent attraction and retention.