Powerful Business: The Lever for Change Across the Supply Chain

Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.
-Archimedes

Sometimes when a problem seems too big, too ugly and too complex to handle, you need a lever to help move things along.  All of the big environmental problems we currently face fall into this category.

When it comes to tackling our planet’s biggest problems, there is a full spectrum of approaches and many different leverage points. For me, the most important lever is business. A thriving planet and a thriving economy don’t have to be at odds. EDF is focusing on helping businesses make their supply chains cleaner, more efficient and more profitable.

Working with powerful business has been a cornerstone of EDF’s approach ever since we launched our 1st partnership with McDonald’s 25 years ago. Since then, we have kick-started market transformations in fast food with McDonalds and Starbucks, shipping with FedEx, retail with Walmart, and private equity with KKR. With each partnership, we’ve worked to create new, sustainable demand signals that extend across the supply chain. When powerful business speaks, suppliers listen. EDF is helping the most impactful companies commit to selling sustainably-produced products, encouraging every supplier and producer contributing to those products to also adopt more sustainable practices. Read more

Denver Housing Authority Sets Bar for Municipalities Nationwide

To many, it may seem that pursuing environmental sustainability would fall relatively low on a municipal housing authority’s goals.  After all, providing moderate and low-income families with clean, stable homes in the face of uncertain federal subsidies and increasing taxpayer scrutiny is challenge enough.

North Lincoln Homes - PV SystemsThe Housing Authority of the City and County of Denver (DHA), therefore, deserves praise for its innovative solar power program that not only provides renewable energy, but creates revenue for the housing authority, creates green jobs in the region, and saves taxpayers’ money – all the while reflecting the spirit of the federal Department of Energy’s Better Buildings Challenge, which looks to reduce energy consumption by 20 percent by the year 2020. DHA serves as a model for municipalities across the country.

Andrea Davis of the DHA’s Real Estate Department and Chris Jedd, portfolio energy manager, showed the creativity and sheer will to make a lofty renewable energy goal affordable, manageable and successful, while providing their communities with empowerment, economic opportunity, and a vibrant living environment. Read more

Collaborative Logistics: Shipping Together to Save Together

Collaborative logistics – where multiple companies cooperate to share freight capacity – holds the key to dramatic reductions in freight emissions and costs. Unfortunately, most consumer packaged goods (CPG) companies continue to manage discrete lines of supply to retail customers, passing up these opportunities.

  • Partially full trucks today run side-by-side on the highway, even though they are travelling to the exact same retail distribution center (DC), and freight could have been combined.
  • Outbound deliveries of full trailers ride alongside empty trailers returning home to the same destination after a delivery, even though the outbound shipper could have leveraged the opportunity presented by the empty trailer for an aggressive backhaul rate.
  • Heavy and light products cause trucks to weigh out before they’re full and cube out below the truck’s weight capacity has been reached, even when the solution could have been as simple as combining shipments of cotton balls and hammers traveling along the same route.

Examples of collaborative logistics at work

ocean spray More and more companies are recognizing the value of collaboration in meeting their sustainability goals. It turns out that when shippers climb out of their silos, good things happen. These are just a few examples of solutions being employed by companies:

  • Ocean Spray and Tropicana.  Tropicana shipped orange juice north from Florida in refrigerated box cars, which often travelled back empty to Florida.  Ocean Spray trucked its juice products from New Jersey to Florida along the same route. By shifting most of this TL volume to utilize Tropicana’s rail backhauls (CSX), Ocean Spray cut freight costs 40% for this lane and reduced greenhouse gas emissions 65%.
  • Whirlpool and Daltile. Both of these large manufacturers have factories in Monterrey, Mexico and ship product into the U.S. via rail. Daltile’s heavy ceramic tile reach a rail box car’s 200,000 pound weight limit with enough room for a 53-foot trailer. Meanwhile, Whirlpool’s appliances were cubing out box cars at just 35,000 pounds.  The solution?  Put four truckloads of tile in each box car (160,000) and fill the rest with refrigerators.  Each company now pays just 50% of the cost for the trip, but gets 80 percent of the maximum cube or weight capacity. Daltile’s complete freight collaboration program, generates $3 million in annual freight savings and reduces diesel fuel usage by more than 600,000 gallons per year.

Here are some tips to help your company get started on collaborative logistics:

  • Leverage your 3PLs. They service many companies and are in a good position to identify collaborative logistics opportunities and partners.
  • Look to competitors. Your freight is likely going to the same customers and DCs.
  • Share cost information. When lo-loading freight, mutual trust is critical to determining an equitable cost-sharing arrangement. Both companies must be transparent about what they are paying now.
  • Dedicated the required resources. The right collaborative logistics projects can have a huge payoff, but they require significant time and resources to pull off. Don’t underestimate the time required to make these inter-company projects work.

Find more tips on collaborative logistics and other green freight initiatives in EDF’s comprehensive Green Freight Handbook – a free guide to helping you achieve your sustainability goals.

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Game Time for Fixing The Natural Gas Industry’s Achilles Heel

As the dog days of summer expire and football season approaches, many sports fans will anxiously scan their favorite team’s rosters for training camp injuries–finding everything from the innocuous, to the dreaded torn Achilles that already sidelined several pro players for the season’s start.

Gametime-300x250When it comes to the energy industry, methane emissions loom as the Achilles heel of natural gas. On the surface, natural gas appears to many as a star American player – abundant and cleaner burning than coal.

But unchecked methane emissions, which are 84 times more potent than CO2, undercut natural gas’ climate change performance.

This risk has grown particularly acute because the recently finalized Clean Power Plan, which targets carbon dioxide emissions from coal-fired power plants, casts natural gas as part of a viable near-term strategy to win the climate game.

The spotlight on natural gas’ performance is only growing as more viewers tune in.

The difference is, while there is no sure-fire way to prevent an Achilles tear on the athletic field, we have the means at our fingertips to dramatically reduce methane emissions and help natural gas become a stronger player that puts more points on the board for the economy and climate.

New EPA methane rules announced Tuesday can be an important step if finalized in strong form, yielding four business benefits: Read more

Securing Safer Chemicals in Food

Behind the Label - the blueprint for safer products in the marketplaceIt seems that almost every week, another major food company announces plans to remove artificial colors and flavors from their products. In the past six months, major food companies such as Nestle, General Mills, Kellogg's, Hershey’s and Campbell’s committed to reformulating many of their iconic brands to be free of artificial colors and  flavors. National restaurant chains such as Pizza Hut, Taco Bell, Subway and Noodles & Company also made similar commitments. Tens of billions of dollars of products are being reformulated.

What’s driving all this change?

It turns out more and more Americans are concerned about what goes into their food, especially when it comes to the thousands of chemical additives—substances used to color, preserve, flavor, or emulsify food or to process or package food, like phthalates.

According to a May 2015 industry survey, 36% of consumers polled said chemicals in food was their most important safety issue for them and their families today — more than pesticides, animal antibiotics, undeclared allergens and pathogens. This is up from 9% in 2011. What’s more, 23% said they changed food purchases as a result of information they learned about chemicals, pesticide residues, and animal antibiotics.

woman reading labelAnother survey by CivicScience published the same month reported similar numbers with health concerns about preservatives and chemicals rating higher  than added sugar, saturated fats, and sodium. These weren’t urban foodies following the latest trends on social media: those most concerned were generally from rural areas, more likely to be influenced by TV news, and less likely to eat out or use social media. With numbers like these, no wonder the food industry is scrambling to respond.

There is good reason to be concerned about potentially unsafe chemicals in the food supply, and importantly, the problem extends well beyond whether an ingredient might be artificial. So, while these recent efforts to remove artificial ingredients respond to mounting consumer concerns, they won’t sate the consumer’s appetite for healthier and safer foods.

EDF is launching a new initiative to move potentially unsafe chemicals from the food supply by harnessing the transformative power of supply chains. EDF’s Behind the Label: A Blueprint for Safer Food Additives provides a roadmap for corporate leadership that moves companies from a reactionary response to artificial ingredients to a proactive approach to ensure safer, simpler food.  We’re excited to have Tom Neltner leading this new effort on safer chemicals in food.  Tom spent years investigating the safety of chemical food additives at the Pew Charitable Trusts and the Natural Resources Defense Council.

In the coming weeks and months, we’ll be outlining the problem of potentially unsafe chemicals in food, the current state of the market response to rising concerns, and our vision for corporate leadership for safer chemicals in food.

The Clean Power Plan is Out – Time for Business to Focus on the Certainties and Weigh In

Tom Murray, VP Corporate Partnerships, EDFCommuting home from work last week and listening to the radio, I heard the EPA’s Clean Power Plan (CPP) described as a big deal for our company, our nation, and our planet. When so much of the initial news coverage about the CPP was focused on uncertainty, it was terrific to listen to Ralph Izzo, CEO of Public Service Enterprise Group (PSEG) focus on the certainties.  According to Izzo, the science is in on climate change, the CPP creates business opportunities for PSEG and others, and the future for PSEG and utilities in general will be increased reliability, more energy efficiency, and increasing energy from carbon-free sources.

For nearly 25 years, EDF has partnered with leading companies to accelerate environmental innovation in their products, operations, strategies, and supply chains.  In fact, it was EDF’s early partnerships with McDonalds and FedEx that first attracted me to the organization.  While we’ve made considerable progress working with business, there’s still a lot of work to be done to reach the low carbon, clean energy future mentioned above.  To get there, we need more aggressive private sector leadership and strong support for solutions like the CPP.

Business weighing in on Clean Power Plan

 

What’s next with the CPP?  It’s time for business to focus on the certainties and weigh in… Read more