Investor Ranks Top $1.5 Trillion in Support of National Methane Standards

California public school teachers. Religious charities. New York police officers and firefighters.

investorsWhat do all of these groups have in common? Investors representing them — who manage $1.5 trillion in retirees, current employees’, and others assets – are standing together and calling for strong rules limiting harmful methane emissions from the oil and gas sector. This level of outpouring – from diversified investors with holdings in the oil and gas industry – represents five times the support investors expressed for methane rules last year. A trend is emerging.

The investors, including the largest retirement funds in California and New York, issued a powerful statement in support of the president’s methane proposal aimed at cutting emissions nearly in half in a decade. A centerpiece is regulation of methane, the primary ingredient in natural gas, which has over 80 times the warming power of carbon dioxide in the first 20 years after it’s released and is responsible for 25 percent of the warming we are feeling today.

From their vantage point as long-term stakeholders, the “serious threat” methane poses to climate stability compels them, as fiduciaries, to support action to cut emissions and avoid near term threats to “infrastructure and economic harm that will weaken not only the companies we invest in, but the nation as a whole.” Market pressure like that is difficult to ignore. Read more

Improve Freight Capacity Utilization to Reduce Truck Emissions

Whether it’s a trailer, a container or a boxcar, better capacity utilization reduces the number of required freight runs and reduces truck emissions.

Despite the fact that most logistic professionals understand the value of building fuller truck-loads, recent research showed that 15–25 percent of U.S. trucks on the road are empty and, for non-empty miles, trailers are 36 percent underutilized.

Source: Homayoun Taherian, Cnergistics, LLC

Source: Homayoun Taherian, Cnergistics, LLC

Capturing just half of this under-utilized capacity would cut freight truck emissions by 100 million

tons per year – about 20 percent of all U.S. freight emissions – and reduce expenditures on diesel fuel by more than $30 billion a year (CELDi Physical Internet Project).

Nearly every company can improve trailer capacity utilization. Here are some real-life examples:

Kraft Foods: Because of the variety of products either cubing-out trailers (reaching the volume limit) or weighing-out trailers (reaching the truck weight limit), Kraft’s refrigerated outbound shipments were averaging only 82 percent of weight capacity. Kraft used specialized software to convert demand into optimized orders to maximize truck usage without damaging products. As a result, Kraft cut 6.2 million truck miles and reduced truck-load costs by 4 percent.

Trailer Orientation

Walmart: The world’s largest retailer was able to increase the number of pallets shipped in a truck from 26 to 30 simply by side loading pallets.

Stonyfield Farms: This dairy product manufacturer worked with its clients to help them decrease the use of dunnage (inexpensive or waste material used to protect cargo during transportation), allowing the company to maximize the available space per trailer.

What’s your load factor on outbound trailers?

To improve trailer capacity utilization as well as source other ideas to create a more sustainable freight operation, download EDF’s free Green Freight Handbook.

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The Role of Buildings in a Low-Carbon Future

Zpryme talked with Ellen Bell, Senior Specialist, Environmental Defense Fund, for her thoughts on the role of buildings in a low-carbon future, the rise of microgrids, and how graduate students in EDF’s Climate Corps program get her excited about energy.

ZP: What do you look forward to the most in your business day?

ellen_bell287x377Bell: We’re tackling something big—creating a new, low-carbon energy system—but we’re doing the practical, “in-the-weeds” work of doing it in individual buildings. Because of that, I look forward to two things: 1) working with great people—like building management and their engineering staffs, and 2) implementing our approach of finding the business case for operational efficiencies in energy management.

ZP: How does EDF fit into the Midwest energy ecosystem?

Bell: The Midwest has a large and thriving energy ecosystem of technology entrepreneurs, dedicated academics, innovative non-profits, utility partners, etc. While this network can be complex to navigate, all of these stakeholders are dedicated to working together to make the right decisions that will shape energy use in our changing world. EDF is proud to be a part of this alliance and dedicated to bringing our expertise through the Clean Energy program and our boots-on-the-ground talent in the form of EDF Climate Corps. We’re all about driving market adoption of the most effective solutions.

ZP: What is the role of commercial real estate in smart energy?

Bell: Buildings account for approximately 70% of all emissions in the City of Chicago, so focusing on decreasing those emissions makes environmental sense. But the infrastructure changes that lead to reductions also lead to fiscal savings that can impact how a building is marketed, how it interacts with its tenants and what those tenants may share with other offices across the country. So the commercial real estate industry has a unique opportunity to bring together the right stakeholders with the newest technology and best practices in energy management and tenant engagement—all of which can influence audiences with unparalleled reach.

ZP: Where do you see microgrids going in the next five years?

Bell: Because of concerns about reliability and the desire for more clean distributed generation, microgrids are poised for rapid expansion. Within the next five years, developers will experiment with a variety of business models that enhance the grid’s flexibility and efficiency.

ZP: What individuals (i.e. thought leaders) get you excited about energy?

Bell: Personally I am inspired every year by the brilliant graduate students who sign up to be part of our Climate Corps program. Individually they are all incredibly different, they come from diverse backgrounds that include degrees in everything from mechanical engineering to finance to urban planning, but they share a dedication to the desire to change the world through understanding how energy efficiency and making the business case for advanced energy management will transform not only the organizations where they spend the summer but the world at large. They apply a unique perspective to the questions at hand and I think of each of them as thought leaders because their fresh approaches to the issues and opportunities that face the energy industry drive the innovations that change the world.

Ellen Bell will be speaking at Zpryme’s ETS@chicago event, July 22-23 in Chicago. To learn more about the ETS@chicago and all of its speakers, please visit ets-chicago.com or contact info@zpryme.com.

This post originally appeared on Zpryme's Energy Thought Summit blog.

Bringing The Pope’s Climate Encyclical to Life, a Church at a Time

Last week’s papal encyclical on climate change galvanized those of us who already see responsible stewardship for the earth as both a moral mandate and business imperative. In the 184-page document, Pope Francis calls for a sweeping overhaul of political, economic and individual practices to halt the degradation of the environment and protect our planet for the long term.

The pope's sweeping vision is sure to prompt churches, people of faith and a whole range of organizations to rethink their actions with regard to use of energy, water and other natural resources. But already, religious organizations have been working quietly and steadily to effectively manage their environmental impact, in keeping with the established theological tradition of moral economic development and use of resources.

(Credit: Sacred Heart)

(Credit: Sacred Heart)

Take Gene Murphy of Prescott, Ariz., as a prime example of someone sitting at the intersection of religion, sustainability and business. As the business manager for the Sacred Heart Parish in the Diocese of Phoenix, Gene has developed scalable solutions for his church and school that could and should be replicated across all churches, schools and relevant organizations.

The church performed a clean energy retrofit covering lighting, windows, waste and solar power that dramatically reduced their utility spending from $94,500 a year to $37,000, or $157 in daily savings and transformed the 32,000 square foot school into a near net-zero building. The solar project alone reduces more than 230,000 lbs of CO₂ per year, and the building is now lit with 97 percent LED lights. Gene is already drafting a template for similar organizations to use in analyzing their opportunities in light of new technologies, regulations and methodologies.

At EDF, we see Gene and the Sacred Heart Parish as a real-life example of the kind of pragmatic stewardship the pope is calling for, and we got on the phone with him to get some deeper insights into the parish's transformation. Read more

Accelerating the Shift to More Efficient Trucks

Freight transportation is the work horse of the global economy, ensuring that the products consumers want get on the shelves where and when they want them. With 70 percent of U.S. goods being moved by truck, freight is a key source of U.S. fuel consumption and corporate greenhouse gas (GHG) emissions. Today, freight also offers companies a key opportunity to drive us toward a lower carbon future.

pepsico-logoIn a Wall Street Journal op-ed with EDF President Fred Krupp, Pepsico Chairman and CEO Indra Nooyi voiced the company’s strong support of the new fuel efficiency and GHG standards for medium and heavy duty trucks released June 19th by the U.S. Environment Protection Agency and Department of Transportation. Over the life of the program, these robust standards will cut fuel consumption in new trucks by 1.8 billion barrels of oil and reduce carbon emissions by one billion metric tons.

Leading companies like General Mills, Walmart and Anheuser-Busch have made reducing fuel use and emissions from freight a priority in setting their internal supply chain performance goals. But Pepsico’s willingness to step forward with this op-ed is a prime example of how companies can extend their leadership by aligning their public policy stances on with their sustainability goals – what EDF has been referring to as the business-policy nexus.

Freight affects all of us, but business is in the driver's seat

EDF - Building better trucksFreight transportation exists to serve companies that make or sell physical goods, from brands and manufacturers using trucks to bring in supplies and ship out final products, to technology companies needing trucks to deliver the hardware that powers their online services. While medium- and heavy-duty trucks only make up 7 percent of all vehicles on the road, they consume 25 percent of the fuel used by all U.S. vehicles.

Inefficient movement of goods wastes fuel, raises costs and increases environmental impacts. For firms like Pepsico, who maintain their own fleets, as well as those that contract out for freight moves, fuel is the single largest cost of owning and operating medium- and heavy-duty trucks. Truck fuel prices have increased 58 percent since 2009, a strong incentive for increasing the efficiency of trucks that move freight. Consumers are counting on businesses to solve this problem, as those costs are passed on to consumers. Through everyday purchases, the average U.S. household spends $1,100 a year to fuel big trucks. Strong standards can cut this expense by $150 on average a year by 2030. Read more

Consumers Deserve To Know What's In Their Products

This installment of our Pillars of Leadership series explores Informed Consumers.

Sharing ingredient information with consumers is key to business leadership on chemicals. It can build consumer confidence, trust, loyalty – and market advantage. Numerous surveys (see here and here) and advocacy campaigns (see here) reveal that people want more ingredient information than is typically available today. The key to success in cultivating an Informed Consumer is providing product ingredient information that is comprehensive, accessible, and importantly, meaningful.

Woman label blog image

Consumers want to:

  • Have easy access to consistent, reliable information
  • Feel empowered when making purchasing decisions for themselves and their families
  • Understand what they’re bringing into their homes
  • Avoid adverse health and environmental impacts
  • Trust that brands and retailers respect their interest in knowing product composition

How does a company cultivate an Informed Consumer? For starters, by sharing ingredient information on product packaging and online for products it makes or sells, with content that extends well beyond regulatory requirements. While packaging physically limits the amount of information that can be shared with consumers, online ingredient disclosure allows greater flexibility in terms of the extent and type of ingredient information, as well as how that information is accessed and presented. Read more

The Good, The Bad and The Ugly: When Oil Giants Shift to Natural Gas

Pump jacks lined up in Oklahoma. (Credit: Kool Kats)

Pump jacks lined up in Oklahoma. (Credit: Kool Kats)

Six large European oil and gas companies recently announced a commitment to engage on climate policy, calling for a price on carbon. The now-emerging picture of their coordinated corporate talking points, however, leaves no doubt that promotion of natural gas is a core part of the group’s position.

Is this development a beneficial push to help the planet transition to a low carbon economy – or just another marketing campaign? The truth, so far, lies somewhere in between.

Here are the good, the bad and the ugly highlights of what we’ve learned over the past week and what it all means.

The good: Establishing a carbon price and cutting carbon dioxide emissions

Make no mistake about it: The world’s leading economies need to establish a price and limits on greenhouse gas emissions, and leadership from the private sector is instrumental in achieving that policy objective.

For large companies such as Shell, BP and Statoil to join forces and unequivocally state, as they now have, that a price on carbon should be a “key element” of climate policy frameworks is a refreshing boost to pre-Paris United Nations climate talks.

It is a potentially powerful validation that even some of the world’s largest corporate emitters see an upside to carbon pricing and will weigh in to make it a reality.

As to promoting natural  gas a solution, it is well documented that in many cases natural gas will replace coal for power generation – a shift already underway in the United States and partly responsible for driving down carbon dioxide (CO2) emissions. Read more

More Efficient Trucks Will Improve the Bottom Line

Here in the United States, the Environmental Protection Agency and the Department of Transportation will unveil new fuel efficiency and greenhouse gas standards for big trucks soon, according to the New York Times. At first glance, many companies might conclude that these new polices do not impact them. They’d be mistaken. In fact, they would be overlooking an enormous opportunity to cut costs while delivering real-world progress on sustainability.

Impact-of-fuel-efficiency-updated-5-15-low-rezThe fact is that nearly every company in the United States is reliant on heavy trucks, which move 70% of U.S. freight. Brands and manufacturers use trucks to bring in supplies and ship out final products. Retailers and grocers count on trucks to keep the shelves stocked. Technology companies need trucks to deliver the hardware that powers their online services. Even Major League Baseball has turned its dependence on trucking into a quasi-holiday.

More efficient trucks matter to all business because they will cut supply chain costs. Last year, American businesses spent $657 billion dollars on trucking services. A lot of that money went to pay for fuel – the top cost for trucking, accounting for nearly 40% of all costs. Read more

Campbell’s Soup Expands Fertilizer Optimization Programs

There’s a new reason to celebrate your favorite sugar cookie. The Campbell's Soup Company has committed to fertilizer optimization in its sourcing areas in Ohio and Nebraska – which provide wheat for Campbell’s subsidiary, Pepperidge Farm – and the company will enroll an additional 70,000 acres into its fertilizer optimization programs by 2020.

220px-Campbell_Soup_Company_logo.svg_Campbell's will work with EDF to create additional fertilizer optimization and soil conservation programs for farmers, and will deploy United Suppliers’ SUSTAIN platform in these sourcing areas to help ensure for farmers that changing their practices will not only reduce nitrogen runoff, but also protect yields and farm income.

With this announcement, the momentum for sustainable agriculture is higher than ever. Campbell’s is the latest company to participate in EDF’s Sustainable Sourcing Initiative, joining Walmart, Smithfield Foods, General Mills, and United Suppliers to make fertilizer efficiency and soil health the norm in U.S. grain production. Read more

Big Question about the Oil and Gas Industry’s Newest Climate Effort

methaneleaks2_378x235Europe’s largest oil companies are reportedly working together on a policy strategy leading up to this year’s international climate talks in Paris. It’s nice to hear that some of the biggest players in the global oil and gas industry want to engage in solutions, but it remains to be seen if they will take the action needed to effectively tackle some of our most immediate climate threats – or to seize a major untapped opportunity.

That opportunity is methane. The highly potent greenhouse gas that’s been largely ignored until recently represents a solution for making real and immediate progress to slow warming. So will the group of oil companies sign on to tackle methane as a big part of its strategy, or are they going to ignore it?

Methane, the primary ingredient in natural gas, has over 80 times the warming power of CO2 and is responsible for 25 percent of the warming we are feeling today. That means tackling methane is an essential piece of the puzzle in making a real impact on greenhouse emissions. Read more