Greenpeace IT Climate Leadership Challenge

Detailed Criteria and Response from Sun Microsystems

1. Public CEO statement to support a strong global mandatory Kyoto regulation that requires domestic cuts by industrialized countries of at least 30% as a group by 2020.

Sun Microsystems is a founding member of Business for Innovative Climate and Energy Policy (BICEP). A key principle among the eight put forth by BICEP is that the United States must achieve a reduction in greenhouse gas emissions of 80 percent below 1990 levels by 2050 and at least 25 percent reduction below 1990 levels by 2020. Based on your clarifying email, this is completely in line with Greenpeace's expectations for the Copenhagen meeting. Our Chief Sustainability Officer, Dave Douglas publicly endorsed this at the BICEP launch on March 10, 2009. Sun's CEO Jonathan Schwartz will be featured on a plenary panel at the upcoming (April 2009) Ceres conference. We expect that Sun's support of BICEP and its principles will be featured in his remarks.

2. Advocate the above target with the US Government to support strong global mandatory Kyoto regulation.

Sun agrees that the United States must provide strong leadership in the international climate negotiation process, and that it is crucial to create a legally-binding global agreement around climate change reduction in time for the 2009 Copenhagen meeting. Sun is working directly, through BICEP and with key allies in the business community, to engage with the US government on crafting and passing meaningful energy and climate change legislation that is consistent with our core principles.

3. Commitment to reduce your company's absolute GHG emissions by at least 20% by 2012.

Under the EPA Climate Leaders program, Sun reduced its US Scope 1 & 2 emissions 23% between 2002 and 2007 (5 years before the target year of 2012). Sun's current public commitment is a reduction in global Scope 1 & 2 emissions by 20% over 2007 levels by 2015. Our stretch goal of meeting this target by 2012 is in line with Greenpeace's expectations.

4. A renewable energy percentage in total electricity use of your company's own operations above 25% by 2012.

Sun continually assesses the availability of economically sensible renewable energy for its facilities around the world, both for purchase from utility providers and for adding on-site renewable generating capacity. Our priority is investing to directly obtain renewable power. In markets where the utility company sells only renewable energy credits, rather than having actual renewable generating capacity, our priority is to invest in energy efficiency at our facilities. Based on this strategy and our estimate of financial incentives and ROI for renewable investments in the coming years, we believe that we are unlikely to meet Greenpeace's challenge of 25% renewable energy in our overall electricity use by 2012. In addition, Sun advocates the adoption of a renewable portfolio policy in the United States requiring that nationally 20 percent of electricity be generated from renewable energy sources by 2020, and 30 percent by 2030. This principle is a key component of the BICEP coalition's mission.