While TransAlta realized some solid accomplishments in 2010, there are still a number of areas where we need to improve. In some cases, we already have work underway in 2011 to better our performance. In others, the solutions have yet to be invented, but we know what they are. Our vice president of sustainable development Don Wharton offers his commentary on those key challenges:

• Absolute greenhouse gas emissions (GHG) rose by five per cent in 2010 in spite of retiring our oldest coal-fired plant and improving our emissions intensity, due to increased production at our fossil-fired plants. However, we have turned the corner on our GHG emissions. In 2011 the retirement of our Sundance 1 and 2 coal-fired units will lower emissions. The production of power from our fossil based units is near maximum levels and cannot increase emissions significantly more. And in 2015 we will reduce another 1 million tonnes by virtue of starting carbon capture and storage operations at our Keephills 3 plant.
  
• We can take better advantage of our supply chain leverage to help our partners improve their sustainability performance. We had good success in 2010 in driving improved safety performance through our supply chain. In 2011 we intend to focus on similarly improving environmental performance.
  
• Reclamation work needs to accelerate. We are targeting a year-over-year increase in the percentage of disturbed land reclaimed, a figure that has historically remained flat.
  
• We need to increase the productivity of our clean hydro facilities. Upgrade and expansion work is underway in 2011.
  
• We made strides to reduce our business travel impacts in 2010 through implementation of powerful telepresence capabilities, but more can be done to utilize our information technology (IT) capabilities to further reduce the need to move people. This work is underway.
  
• Our level of public engagement and communication on plant siting will need to increase, given the demands for continued growth of new wind projects and the development of our Pioneer CCS project. We are already looking at new forms of engagement, including the use of social media, to connect better with our communities and stakeholders.
  
• We need to find more innovative ways to invest in our communities and to increase the engagement of our employees in that investment. We are considering adapting our community investment programs to provide more opportunity for individual employees to identify and lead great community projects. This work is underway in 2011.