American Express
From WikiClimate
Company Details
- Company name: American Express Company
- Country: United Kingdom
- Sub Sector: Diversified Financials
- Industry Group: Diversified Financials
- Parent Sector: Financials
American Express is a leading global payments, network and travel company founded in 1850. It currently operates in 130 countries around the globe.
Carbon Disclosure
The following data is © Carbon Disclosure Project and was provided by American Express in response to the Carbon Disclosure Project Greenhouse Gas Emissions questionnaires.
Regulatory risks
At this time, the company has not seen a substantial impact as a result of the current regulation of greenhouse gas emissions. We will continue to assess the impact of future regulations, although as a service business, our overall carbon footprint is far lower than many other companies in other industries, and we are less likely to have significant direct impact from emissions caps that may be enacted in the future. [There may be secondary or tertiary impacts to suppliers, customers, etc. As the regulatory environment evolves, we will stay abreast of developments that could impact our business.] The company continues to be actively involved in reducing energy use through energy conservation projects, procuring energy efficient technology, partnering with local utilities to receive green power solutions and in continual improvement of facilities and processes. Our building design practices and standards typically exceed local regulations and we are always looking to provide environmentally- favorable solutions to promote energy conservation and savings.
In addition, while our industry category is often described as financial services, our business activity centers around payments (credit cards, travellers cheques, gift cards) rather than financing provided to development projects, companies, etc.
We do recognize that regulation of GHG emissions is a possibility in some geographies and a probability in others. With that regulation we could see some impact to the costs of energy we purchase to run our facilities, or impacts to clients or suppliers with whom we do business.
Physical risks
Some of our operations can be affected by extreme weather events which may cause power outages and have adverse impact on the company’s global communications network. In addition, portions of our operation require significant human interaction and anytime weather events disturb the ability for staff to get to facilities or impact the facility itself, that operation is impacted. We have considerable experience managing our business through difficult circumstances. American Express was one of the first companies to put response plans in place for any crisis, including specific events.
This can range from severe weather (snow storms) to more severe natural events such as hurricanes. Actions that are continually taken include, but are not limited to: assessing each site for optimal operational use, having Business Continuity and Disaster Recovery plans in place and tested on a regular basis, designing facility contingency plans on all major sites whereby operations can be transferred to other facilities in other states or in some areas countries, and continually improving the infrastructure to mitigate potential impact of such events. During future site selection process, we do consider sites that have the lowest risk of natural events but that are still able to meet the operational needs of the company.
We have made crisis control and management a core priority to provide help and assistance across the world to all our customers. If a crisis of any kind does hit, regionally or globally, we are prepared to assist.
General risks
Travel is an important component of American Express business, and that of many of our business partners. To the extent that climate change hampers the general ability or opportunity to travel, there could be an impact to our business. We have not seen such impact at this time. In addition, a growing market segment served by our travel business is eco-tourism. To the extent that climate change negatively affects consumer interest in eco-tourism, our travel business in this market segment could be adversely affected. In addition, climate change and damage to the environment in popular tourist destinations, especially in hurricane and storm areas, reduces our travel sales to those areas.
General and regulatory risks management
American Express is committed to reducing our carbon footprint by 10% by 2012 and is putting in effect a variety of actions to make this reduction target a reality. We have an active risk management program covering all areas of our business, including the business continuation efforts mentioned above that help us navigate through situations involving our physical locations, operations, network, etc. We are also staying abreast of potential regulations that may arise in this area.
Examples include –
- Diversifying the energy sources used at our facilities – at our South Florida and Arizona campuses, we are now sourcing some of our power from renewable sources. We are also exploring similar opportunities for other facilities.
- Engaging our travel suppliers and the travel industry regarding sustainable tourism needs/opportunities, promoting educational programs for students, providing grants to sites for sustainable tourism plans.
- Business continuity plans are in place that would enable us to shift call volume or servicing activity from one location to another in a time of need.
Current and/or future financial effects of risks
We have an active risk management program covering all areas of our business, including the business continuation efforts mentioned above that help us navigate through situations involving our physical locations, operations, network, etc. We are also staying abreast of potential regulations that may arise in this area. We also consider the potential financial implications that may arise from these risks.
Opportunities presented by current or anticipated regulatory requirements on climate change
We have implemented a robust environmental stewardship plan and are pursuing a variety of plans to help reduce the carbon emissions associated with our operations. We are also pursuing opportunities to assist our clients/customers with services, tools, advice to help address their eco-interests. These plans are underway whether or not there are regulatory changes.
General opportunities presented by climate change
Many of our customers are interested in ways they and the companies they do business with can help preserve the environment. We have a number of programs in place, and are exploring others, where consumers can pursue their “green” interests with us:
- We are piloting programs with our Business Travel clients to help them track their carbon emissions, offset emissions, and providing advice about ways to consider the environmental impact of employee business travel policies.
- We enable Cardmembers in our Membership Rewards program to donate their reward points to numerous environment-focused charities.
- We promote the use of online statements and reports, allowing “paper off” for customers and significantly reduced paper usage.
- We are reducing the weight of paper used in many of our marketing mailings.
- We offer services such as travel insurance that protects customers from trip cancellations or disruptions including those caused by extreme weather events.
- We offer a number of options for travel customers who may be interested in eco-tourism programs or travel packages to eco-friendly resorts.
Sustainable, responsible tourism is in the interest of our Cardmembers and customers, our communities and consequently to our business. As a result, we are seeking to make contributions in a variety of ways.
- American Express and the World Monuments Fund, longtime partners in protecting endangered sites around the world, are now focusing our joint efforts in historic preservation to emphasize conservation and sustainable tourism at sites in need. (4 initial grants made in the UK, India, Mexico and U.S.)
- We are involved in a number of industry organizations addressing sustainable tourism, among other topics. With the Travel Industry Association (TIA) we are working on a resource that will be available to the travel industry later in 2008 that will help identify issues and opportunities related to sustainable travel. The Global Travel and Tourism Partnership (GTTP), started in 1986 by the American Express Foundation, is a global coalition of travel and tourism education programs currently serving more than 420,000 secondary school students and young adults around the world working to raise awareness of the industry’s economic and cultural impact on their communities. We are also founding members of the World Travel and Tourism Council (WTTC) which aims to raise awareness of the economic and social impact and potential of the travel industry and the International Tourism Partnership (ITP,) a forum to share knowledge, develop policy and implement programs that have a positive impact on social, economic and environmental issues.
Planned investment in products and services designed to minimise/adapt to effects of climate change
Yes. We are piloting tools and services that will assist clients in measuring and tracking their carbon footprints, and to offset if desired.
Greenhouse Gas Emissions
- Greenhouse Gas emissions methodology used: GHG Protocol
Calculation methodologies for each source are consistent with the principles underlying the GHG protocol calculation tools. These calculations were performed in an inventory database based on the following sources for emission factors: - The GHG protocol for fossil fuel emission factors in stationary installations and in vehicles, international electricity grid emission factors, and business travel emission factors - The US EPA for the United States electricity grid emission factors - The Australian Greenhouse Office for Australia electricity grid emission factors - The Canadian Standard Association for Canada electricity grid emission factors - The IPCC, ASHRAE and UNEP for GWP of HFC gases When actual activity data was not available in facilities (electricity, natural gas and heating oil), American Express estimated energy usage based on typical energy intensity factors per square foot / number of employees (estimation methods have been established by ICF International based on data from the IEA and the US EPA in particular)
- Accounting year: 01/01/2006 to 31/12/2006
- Total global Scope 1 activity in Metric Tonnes CO2-e emitted: 9
- Total global Scope 2 activity in metric tonnes CO2-e emitted: 211,526
