Every product that ends up on a retail shelf or is sold online has a freight footprint. The annual impact of freight across U.S. retail and consumer goods supply chains is significant – over 160 million metrics tons of greenhouse emissions. Or, more than ten times Walmart’s 2010 scope 1 & 2 emissions in the United States.
There are ample opportunities for retailers and their suppliers to improve efficiency, reduce costs and emissions from their freight supply chain. These companies can get more products on each truckload, move more cargo by rail, and collaborate with other companies to find shipping efficiencies.
To capture the most savings opportunities, companies need a long-term plan of action with common key performance indicators (KPIs) and goals shared between logistics teams and corporate sustainability officers.
EDF created our Green Freight Journey model to be a framework that companies can use to manage supply chain freight emissions. The Green Freight Journey has five steps:
- Step One: Get Started, where a company assembles the right group of internal stakeholders and defines its objectives and key metrics.
- Step Two: Create Momentum, where a company launches a pilot effort to improve performance in one key area. It leverages the results of the pilot to increase internal visibility about the strong value of green freight initiatives.
- Step Three: Accelerate Performance, where a company expands the scope of its green freight efforts from one or two projects to a system-wide effort to reduce costs and emissions.
- Step Four: Declare a Goal, where a company sets a multi-year goal to drive internal focus and resource allocation.
- Step Five: Raise the Bar, having accomplished its first generation green freight goal, a company assess and sets a new longer term improvement target.
If you are attending RILA Sustainability later this month, visit the EDF booth (NP6) in the exhibit hall to learn more how your company can leverage the Green Freight Journey framework to identify and implement cost and emission reductions project. In addition to the EDF Green Freight Handbook, we will available at our booth have a benchmarking survey for companies to help them assess their next step on the Green Freight Journey.
This post originally appeared on EDF Voices.
The technologies we see today didn’t all start out in the forms we’re used to. The phones we carry in our pockets used to weigh pounds, not ounces. Engineers developed hundreds of designs for wind turbines before landing on the three-blade design commonly seen in the field.
Fast forward and now we're looking at a drunk-driver-and-alcohol sensor that was converted into a methane leak detector. And a sensor purchased off the web for less than $30 that was transformed into a monitor that fights off greenhouse gases.
I was excited to see the diversity of technologies such as these moving forward in the Methane Detectors Challenge.
Environmental Defense Fund’s initiative with seven oil and natural gas companies—including Shell and Anadarko Petroleum Company, the latest two to join—seeks to catalyze a new generation of technology for finding methane leaks in the oil and gas sector – a powerful contributor to climate change.
Each month, EDF+Business rounds up a list of top corporate sustainability conferences around the country. Our list includes conferences at which experts from the EDF Corporate Partnerships Program will be speaking, attending or exhibiting, plus additional events that we think our readers may benefit from marking on their calendars.
Prior to joining EDF, I worked in a variety of finance-related roles, from building the alternative energy franchise at an investment bank to pioneering investment in rural communities in the developing world at Root Capital. As part of my work at EDF, I’m investigating what financing mechanisms can drive investment in projects with big environmental returns, as well as financial ones. This post is the start of a new series looking at the green bond market, and in the future, I’ll be delving into other areas of impact investing.
Eighteen months ago, you might have never heard of a green bond. The market averaged less than $3 billion per year, but that is quickly changing. $14 billion in green bonds were issued in 2013 and Bloomberg New Energy Finance projects as much as $45 billion to be issued this year. One expert even sees the market climbing to $100 billion in 2015.
Flexible financing for sustainability projects
So what are green bonds, and what is driving this market growth? Simply put, they’re a debt instrument that can be linked to an environmental benefit. One compelling aspect of green bonds is their flexibility. While some may be tied to energy efficiency and renewable energy projects, others are used for projects around climate resiliency, water infrastructure and a growing list of other high-priority sustainability areas.
As countries experience the mounting impacts of climate change, there is an increasing global demand for capital in these critical infrastructure categories. At the same time, funds that are integrating environmental, social and governance criteria in their investment decisions are looking for these types of instruments to add to their portfolios.
by Rachel Finan, student at the Johns Hopkins University School of Advanced International Studies
Experts predict that by 2025 Sana’a, Yemen will become the first capital city to run out of water. They predict that by 2030 India will need to double its water-generation capacity or face the same fate, and water supplies in Istanbul, one of the world’s largest cities, is at just 28 percent. Yet before any of those cities run dry (in far off developing countries that most people in the United States associate with water scarcity issues), it could be a U.S. city that runs out of water. And it’s not just the usual suspects in the Southwest who face increasingly serious water concerns. Miami, FL is the second-most vulnerable U.S. city in a drought according to a University of Florida Environmental Hydrology Laboratory study. Cities such as Cleveland, OH; Chicago, IL; and New York, NY follow not far behind.
Just last February, California state officials announced that 17 communities and water districts could run out of water in as little as 100 days. In Texas, that number more than doubles. Earlier this year state officials reported 48 communities were within 90 days of water interruptions; as of August 20th, there are 27 communities on that list. One small town in TX reportedly already has run dry.
This begs an obvious question; what are we doing about it? Additionally, what should we be doing about it – not just as a temporary fix, but as a long-term, strategic response? What would you do if water stopped coming out of your tap? Imagine if your town was one of the California or Texas communities with only 90 days of water left. As an EDF Climate Corps fellow, I’ve spent the last several weeks contemplating these questions and identifying opportunities for Texas-based institutions to not only conserve water, but to save money while doing so. I’ve been inspired by many examples throughout the state.
When looking for ways to increase supply chain efficiencies, few strategies have the cost and emissions savings potential of collaborative distribution or shared shipping—where companies pool freight resources to reduce the amount of truck trips required to move supplies or products. As the Guardian noted in a recent article on Ocean Spray and Tropicana’s shared shipping collaboration, companies stand to annually save billions of dollars and cut over a hundred million tons of climate pollution by adopting this strategy.
A recent Logistics Management report–Getting From “Me” to “We”: Creating a Shared Infrastructure for Product Distribution–dug deeply into this topic too. It shared several examples of how leading companies are implementing this strategy. The example that stood out to me involved CVS, Kimberly-Clark and Colgate.