Deforestation can pose significant operational and reputational risks to companies, and we at EDF are seeing companies start to take action in their supply chains. Deforestation accounts for an estimated 12% of overall GHG emissions worldwide–as much global warming pollution to the atmosphere as all the cars and trucks in the world. In addition, deforestation wipes out biodiversity and ravages the livelihoods of people who live in and depend on the forest for survival.
Tropical deforestation in Mato Grosso do Sul, Pantanal, Brazil (Source: BMJ via Shutterstock)
Unfortunately, it’s a hugely complex issue to address. Agricultural commodities like beef, soy, palm oil, paper and pulp—ingredients used in a wide variety of consumer products—drive over 85% of global deforestation. Companies struggle to understand both their role in deforestation, and how to operationalize changes that will have substantive impacts.
When the drivers of deforestation are buried deep in the supply chain, innovative and collaborative solutions are required. In the past several years, we have seen many in this space make big commitments toward solving the problem, but gaining transparency into tracking against these commitments has been almost as difficult as gaining transparency into the supply chains themselves. For many companies, the hope for making good on their promises may come in the form of powerful partnerships.
Last month, twelve major corporations announced a combined goal of buying 8.4 million megawatt hours of renewable energy each year and called for market changes to make these large-scale purchases possible. Their commitment shows that demand for renewables has reached the big time.
We're proud that eight of the twelve are EDF Climate Corps host organizations: Bloomberg, Facebook, General Motors, Hewlett Packard, Proctor & Gamble, REI, Sprint and Walmart. The coalition, brought together by the World Wildlife Fund and World Resources Institute, is demanding enough renewable energy to power 800,000 homes a year. And while it's great to see these big names in the headlines, they're not alone in calling for clean energy: 60 percent of the largest U.S. businesses have set public goals to increase their use of renewables, cut carbon pollution or both.
Companies want renewable energy because it makes good business sense: it’s clean, diversifies their energy supply, helps them hedge against fuel price volatility and furthers their greenhouse gas reduction goals. Renewables are now the fastest-growing power generation sector, and by 2018, they’re expected to make up almost a quarter of the global power mix. Prices of solar panels have dropped 75 percent since 2008, and in some parts of the country, wind is already cost-competitive with coal and gas.
Credit: Plastic Disclosure Project
Take a moment to think about the things you use and throw away every day that are made from plastic: an empty shampoo bottle, the container from your salad at lunch (and the little container for the dressing), that pen that won’t work. And what about those things you’re holding on to in the depths of your closet, inevitably destined for the dumpster? That overused pair of sneakers, your old broken flip phone, a keyboard that hasn’t been used in a decade?
Plastic has transformed the way we live and enabled innovation in countless sectors, but simultaneously has contributed to one of the largest waste problems facing the planet. The challenge right now is that it’s no one’s responsibility to track plastic. The material just gets passed from production, to building products, to consumers, and ultimately to waste facilities or worse, into ecosystems like the ocean.
The United Nations Environmental Programme (UNEP) has developed one initiative to tackling this enormous problem, called the Plastic Disclosure Project. The project’s goal is to encourage companies to track the amount and types of plastic used in their operations and supply chain in order to optimize and reduce the related environmental impact.
Why should companies take the responsibility of tracking their plastics? To answer this question, UNEP published a report in partnership with Trucost, which quantifies the full cost associated with plastic used in the consumer goods industry. That amount is more than $75 billion per year. Yes that’s billion with a "b," and per year.