NEWS OF THE WEEK
BREEN BECOMES DUPONT’S NEW CEO MANAGEMENT: Interim leader gets permanent job at a pivotal time for the company UPONT HAS NAMED Edward D. Breen as its
DUPONT
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Breen
new chairman and CEO, removing the “interim” designation he held since shortly after Ellen Kullman’s sudden departure from the role a month ago. Breen’s appointment comes at a critical time for the Wilmington, Del.-based firm. Under attack by activist investors, including Nelson Peltz and his Trian Fund, DuPont has been under pressure to make itself a simpler and more consistently profitable firm. More recently, low crop prices, weak demand, and a strong dollar have hurt the agricultural chemicals business of DuPont and its competitors, leading to consolidation talk among the major players. By naming Breen to the CEO spot, DuPont’s board strengthens Breen’s hand in talks he and others, such as Dow Chemical CEO Andrew N. Liveris, have acknowledged are under way over the possible divestiture or joint venturing of crop protection businesses. Press
CO2 LEVELS CLIMB EVER HIGHER CLIMATE CHANGE: Pledges for new UP The annual average carbon dioxide concentration worldwide is approaching 400 parts per million.
treaty aren’t enough to restrain temperature rise to 2 °C
ONCENTRATIONS of greenhouse gases in the at-
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mosphere continue to break records, with global average carbon dioxide concentrations reaching 397.7 parts per million in 2014, the World Meteorological CO2 parts per million Organization (WMO) says. 400 “We will soon be living with globally averaged CO2 390 levels above 400 ppm as a 380 permanent reality,” says WMO Secretary-General 370 Michel Jarraud. Two other key green360 house gases also set records in 2014. Methane levels were 350 1,833 parts per billion and 340 concentrations of nitrous 1984 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 oxide reached 327 ppb, SOURCE: World says WMO, the United Nations agency considered the Meteorological world’s scientific authority on Earth’s atmosphere. Organization CEN.ACS.ORG
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reports indicate that preliminary discussions are under way through which DuPont could buy Dow’s agricultural division or DuPont and Syngenta could work out a deal. DuPont’s newest CEO brings a history as a decisive executive to the job. According to Alexander M. Cutler, DuPont’s lead director, Breen is “the right leader for the company.” From 2002 to 2012 as CEO of the conglomerate Tyco International, Breen oversaw what DuPont describes as “a highly successful restructuring, including two breakups of the company resulting in the spin-offs of Covidien, Tyco Connectivity, and ADT Corp. and the merger of Tyco Flow Control with Pentair.” Breen continues as chairman of Tyco. Breen has held other senior management positions, including president and chief operating officer of Motorola and president and CEO of General Instrument Corp. Breen joined DuPont’s board in February as one of two new members intended to counter Trian’s efforts to place its own nominees on the board. The other board member DuPont named at that time was retired LyondellBasell Industries CEO James Gallogly. UBS chemical stock analyst John Roberts agrees with other analysts that Breen’s permanent appointment augurs well for deals that simplify DuPont’s complex structure. But given the time it takes to do large deals, “you would think his first focus will be on reducing costs,” he says.—MARC REISCH
Radiative forcing—a warming effect—from greenhouse gases increased 36% between 1990 and 2014, WMO says. The organization points out that warming caused by climbing CO2 concentrations has led to an increase in the level of water vapor, which is also a greenhouse gas. Warmer air holds more moisture, WMO explains. “We have to act now to slash greenhouse gas emissions if we are to have a chance to keep the increase in temperatures to manageable levels,” Jarraud warns. Global diplomatic talks to cut those emissions are under way and are expected to produce a new climate change treaty in Paris next month. Thus far, 160 countries have individually pledged to carry out specific actions to control emissions. But a scientific assessment of those pledges, conducted by the United Nations Environment Programme (UNEP), says they fall short of what’s needed to hold the global temperature rise to 2 °C by 2100 when compared with preindustrial levels. Annual global greenhouse gas emissions need to be equivalent to 42 billion metric tons of CO2 in 2030 for at least a 66% chance of meeting that policy goal, UNEP says. Full implementation of all pledges made thus far would lead to emissions equivalent to 52 to 57 billion metric tons of CO2 in 2030, the agency estimates. This level would put the world on track for a temperature rise of about 3 °C by the end of the century, UNEP adds.—CHERYL HOGUE
NOVEMBER 16, 2015
