by Kate Rack, marketing & communications intern
The Obama Administration is developing new fuel economy standards for trucks, and last week, Ceres and Environmental Defense Fund hosted a webinar outlining how implementing strong federal standards for medium- and heavy-duty trucks would be truly a win-win situation.
Our organizations, along with other leaders, are calling for strong standards that cut fuel consumption by 40%. A recent analysis of such standards shows that they would reduce both greenhouse gas emission levels and expenses to ship goods via freight.
Why make truck efficiency a priority?
Currently in the U.S., the trucking sector is the fastest growing single source of greenhouse gas emissions. U.S. businesses spend $650 billion a year on freight trucking services, which equates to over half a billion tons of GHG emissions. It is essential that as fuel efficiency standards for cars becomes more stringent, trucks follow suit, especially since 70% of tonnage shipped within the U.S is by truck. In particular, retail and consumer products are the largest consumers of trucking in the United States. Chances are, the computer screen that you are using right now to read this blog post was brought to you on a truck!
Too often, environmental performance gets labeled as the responsibility of one team within a company – whether that of a dedicated sustainability staff, external or public affairs, legal or compliance, etc. As a result, a company’s staff can often think of environmental and social governance (ESG) issues as what Douglas Adams once famously termed an SEP – Somebody Else’s Problem.
With the release of its 2013 ESG and Citizenship Report, private equity firm Kravis Kohlberg & Roberts (KKR) shows it’s taking a different approach: KKR has adopted a new global policy that makes identifying and addressing ESG risks in both the pre-investment and investment phases, for its staff, everyone’s problem.
Notably, KKR’s private equity investment professionals are being integrated into the ESG risk assessment process: first, in assessing risks during the diligence phase, and second, working with portfolio companies, consultants and subject matter experts to set performance goals and measure against them during the typical five to seven years a company remains part of its portfolio.
By: Christina Wolfe, Ports and Transportation Analyst
Day-to-day operations at ports are often associated with negative impacts on public health. For example, heavy-duty equipment and on road trucks play a critical role in the movement of cargo around the globe, but they also emit diesel exhaust, a known carcinogen. There is certainly room for improvement, and some ports are making efforts to be good neighbors by increasing transparency with respect to their environmental performance.
I had an opportunity to learn about these leading ports at the Green Marine GreenTech 2014 conference, held in St. John, New Brunswick, Canada. The purpose of Green Marine’s conference is to share both environmental successes and challenges, as well as to recognize participants (ship owners, ports, terminals, and shipyards in the US and Canada) for their leadership in the voluntary Green Marine environmental program. This program provides a framework for participants to identify specific environmental goals, establish baseline environmental metric values, self-report progress that is verified by a third-party, and earn recognition for their efforts. I wanted to share two notable examples of how some ports are opening their lines of communication and sharing their environmental performance.
As July 4th fades away, grills cool down and the remains of fireworks are swept away, it’s time to roll up our sleeves and get back to work. In my case, I’m preparing for a webinar Ceres’ Carol Lee Rawn and I are holding this Wednesday, sharing the findings of our recent report on how strong medium- and heavy-duty truck standards would cut freight costs and emissions.
It’s a topic we’re both passionate about – and think you should be too — and with good reason: U.S. businesses spend $650 billion a year on freight trucking services, which account for over half a billion tons of greenhouse gas (GHG) emissions a year, the fastest growing single source of GHG emissions. Fuel is the single largest cost of owning and operating a heavy-truck, accounting for 39% of total costs.
Our report finds that new, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile, an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.
The Obama Administration is in the process of developing new fuel economy and GHG standards for medium- and heavy-duty trucks, and its determination will affect both your company’s freight costs and GHG emissions. Join us on July 9th for this webinar, where we’ll walk through the savings associated with strong standards and how you can help ensure that stringent standards are adopted.
Register now for the webinar!
At EDF, all our advocacy and education around climate change aims to change behaviors — of individuals, corporations, utilities, governments and communities. But in order to change behavior, we must first change their belief systems.
That point was made eloquently in last month's final episode of Years of Living Dangerously, the Showtime documentary series about the human impact of climate change. The episode featured a conversation with President Barack Obama, a report on the impact of accelerated glacier melt in the Andes and the far-reaching effects of human-induced ecosystem changes in Bangladesh on the economy and society.
For me the takeaways were:
- It's vividly clear that climate change is an issue of national security in poor countries, where extreme weather creates huge groups of impoverished, resource-strapped people who easily end up in slums and ghettos, often refugees in countries far from their homes. For instance, the incursion of ocean water in Bangladesh is disrupting rice farming.
- Abrupt climate events can destroy overnight the societies and self-sustaining lifestyles that agrarian communities have built up over many generations.
- The United States is responsible for a tremendous amount of greenhouse gas emissions, and it's only a matter of time before we become a target of worldwide anger for the damage climate change is wrecking on our planet.
- We must guard against cynicism, especially among the youth. Obama's recently released energy plan paints an optimistic vision of an achievable future with reduced dependence on foreign oil, affordable clean energy technologies and improved energy efficiency.
- Putting a price on carbon is one way to change mindsets, by forcing people to recognize the true cost of a resource differently.
Environmental concerns about methane emissions continue to grow as more people understand the negative climate implications of this incredibly potent greenhouse gas. Now the financial community is taking note of not only the environmental risks but the impact of methane emissions on the oil and gas industry’s bottom line. Methane leaks not only pollute the atmosphere, but every thousand cubic feet lost represents actual dollars being leaked into thin air—bad business any way you look at it.
Source: Ash Waechter
Last week the Sustainability Accounting Standards Board (SASB)—a collaborative effort aimed at improving corporate performance on environmental, social and government issues—released their provisional accounting standards for the non-renewable resources sector, which includes oil and gas production.
These accounting standards guide companies on how to measure and disclose environmental, social, and governance (ESG) risks that impact a company’s financial performance. Their work highlights the growing demand amongst investors and stakeholders for companies to report information beyond mere financial metrics in order to provide a more holistic view of a company’s position.