KREFT G202 CORRECT STUDY QUESTIONS AND
ANSWERS SURE A+
✔✔By 2020, Facebook was predicted to consume more energy than - ✔✔France,
Germany, Canada, and Brazil combined
✔✔How much energy for the new data center was Facebook fueling from coal - ✔✔60%
✔✔What is the national average? - ✔✔50%
✔✔What does Greenpeace want? - ✔✔for Facebook to set the tone for the industry's
movement toward renewable energy
✔✔Factors of Facebook's data center location: - ✔✔-available cheap land
-low cost building materials
-talented but unemployed workforce
-robust city infrastructure for efficient daily operations and commuting
✔✔But Greenpeace wanted them to factor... - ✔✔availability of renewable energy into
their decision
✔✔Facebook chose Prineville Oregon for its - ✔✔Natural environmental cooling
-constitutes a large portion of the energy bill
✔✔What was Facebooks defense of the Prineville location? - ✔✔-most efficient climate
-Power Usage Effectiveness (PUE) ratio for data center was significantly lower than
national average
-Facebook doesn't control the energy grid or choice of power sources, the power
companies and government regulators do
, -Greenpeace's Virginia office is 46% coal powered, only beating the national average by
a few percentage points
✔✔what else? - ✔✔-advocating for one social issue may compromise the
independence of the platform
-activists may pressure FB to advocate for other social issues
-Facebook users were not overly concerned w the environment (Greenpeace's Unfriend
Coal campaign only gather 500,000 followers, only .01% of FB's 500 million
✔✔What were Greenpeace's demands to Facebook? - ✔✔-Increase clean energy to FB
coal free
-Develop a plan by 2021
-Educate Users on Facebooks power sources
-Advocate locally, nationally, and internationally for clean energy (issue-creep risk)
✔✔Greenpeace's demands were - ✔✔open-ended
-to not back Facebook into a corner where they have no control on how to comply
✔✔Firms are more willing to agree to change when - ✔✔they can control some of the
agenda and minimize their compliance costs
✔✔Facebook's response - ✔✔-From 2020, FB will maintain net zero GHGs and be
100% supported by renewable energy
-Supported by PPAs with energy providers that build new wind and solar farms, and
emission credits
-FB buys emission offsets to achieve the rest of their net zero goal
-FB launched the Climate Science Information Center to connect community with factual
resources from leading climate experts (passive education)
✔✔What are PPAs? - ✔✔Purchase Power Agreements
✔✔Starbucks Case - ✔✔
✔✔Are CSR and profits incompatible? - ✔✔Increased standards come at higher costs,
but it can help
• Differentiate Starbucks coffee: sell more, at a higher price to loyal customers.
• Increase employee satisfaction (more productive, less turnover: 60% vs 220%).
• Expand investor base and gain capital inflows (lower cost of borrowing is key in real
estate expansion).
ANSWERS SURE A+
✔✔By 2020, Facebook was predicted to consume more energy than - ✔✔France,
Germany, Canada, and Brazil combined
✔✔How much energy for the new data center was Facebook fueling from coal - ✔✔60%
✔✔What is the national average? - ✔✔50%
✔✔What does Greenpeace want? - ✔✔for Facebook to set the tone for the industry's
movement toward renewable energy
✔✔Factors of Facebook's data center location: - ✔✔-available cheap land
-low cost building materials
-talented but unemployed workforce
-robust city infrastructure for efficient daily operations and commuting
✔✔But Greenpeace wanted them to factor... - ✔✔availability of renewable energy into
their decision
✔✔Facebook chose Prineville Oregon for its - ✔✔Natural environmental cooling
-constitutes a large portion of the energy bill
✔✔What was Facebooks defense of the Prineville location? - ✔✔-most efficient climate
-Power Usage Effectiveness (PUE) ratio for data center was significantly lower than
national average
-Facebook doesn't control the energy grid or choice of power sources, the power
companies and government regulators do
, -Greenpeace's Virginia office is 46% coal powered, only beating the national average by
a few percentage points
✔✔what else? - ✔✔-advocating for one social issue may compromise the
independence of the platform
-activists may pressure FB to advocate for other social issues
-Facebook users were not overly concerned w the environment (Greenpeace's Unfriend
Coal campaign only gather 500,000 followers, only .01% of FB's 500 million
✔✔What were Greenpeace's demands to Facebook? - ✔✔-Increase clean energy to FB
coal free
-Develop a plan by 2021
-Educate Users on Facebooks power sources
-Advocate locally, nationally, and internationally for clean energy (issue-creep risk)
✔✔Greenpeace's demands were - ✔✔open-ended
-to not back Facebook into a corner where they have no control on how to comply
✔✔Firms are more willing to agree to change when - ✔✔they can control some of the
agenda and minimize their compliance costs
✔✔Facebook's response - ✔✔-From 2020, FB will maintain net zero GHGs and be
100% supported by renewable energy
-Supported by PPAs with energy providers that build new wind and solar farms, and
emission credits
-FB buys emission offsets to achieve the rest of their net zero goal
-FB launched the Climate Science Information Center to connect community with factual
resources from leading climate experts (passive education)
✔✔What are PPAs? - ✔✔Purchase Power Agreements
✔✔Starbucks Case - ✔✔
✔✔Are CSR and profits incompatible? - ✔✔Increased standards come at higher costs,
but it can help
• Differentiate Starbucks coffee: sell more, at a higher price to loyal customers.
• Increase employee satisfaction (more productive, less turnover: 60% vs 220%).
• Expand investor base and gain capital inflows (lower cost of borrowing is key in real
estate expansion).
