Corporate leaders know a clean energy future is “True North”

EDF and Business driving a clean energy economy

With all economic and environmental indicators pointing towards a clean energy future … the Trump administration continues to move the U.S. backwards by repealing the Clean Power Plan.

While disheartening at a personal level, at a professional level I see no signs of the private sector retreating from the clean energy economy. Leading companies are zeroing in on the strategic moves that strengthen long-term business resilience.

Right now there is a broad and diverse coalition supporting the Clean Power Plan, including 18 states, 60 municipalities in red and blue states, some of the nation’s leading power companies, consumer and ratepayer advocates, faith organizations, public health associations, small business associations, iconic corporate leaders like Apple, Google, and Mars, and many others.

We’re too far down the road to a clean energy economy to turn back now. Read more

Methane leadership is a competitive advantage, says global investor

Environmental Defense Fund Q&A with Tim Goodman, Director of Engagement at Hermes Investment Management

Tim Goodman, Director of Engagement at Hermes Investment Management

Early oil and gas industry adopters of methane management strategies and technologies are starting to see these reductions as an opportunity to gain a competitive edge.

Just last week, ExxonMobil announced  a new methane reduction program for its XTO Energy subsidiary, underscoring that the industry is paying close attention to the issue.

Methane, the main ingredient in natural gas, is leaked and vented across the oil and gas supply chain every day as the world energy mix shifts towards greater natural gas usage, according to the International Energy Agency. The oil and gas industry wastes billions of dollars a year of methane that simultaneously acts as a climate change accelerator, harming the brand of natural gas as a cheap and clean fuel source. Methane is 84 times more powerful as a heat-trapper than carbon in its first 20 years in the atmosphere. Read more

One-on-One with EDF+Business: Former DuPont CSO Linda Fisher on sustainability leadership

At Environmental Defense Fund, we believe that environmental progress and economic growth can and must go hand in hand. EDF+Business works with leading companies and investors to raise the bar for corporate sustainability leadership by setting aggressive, science-based goals; collaborating for scale across industries and global supply chains; and publicly supporting smart environmental safeguards.

This is the first in a series of interviews exploring trends in sustainability leadership as part of our effort to pave the way to a thriving economy and a healthy environment.

Linda Fisher is one of corporate sustainability’s trailblazers. In fact, she was named the first chief sustainability officer of a publicly traded company (DuPont) in 2004.

Over the next decade, Linda led DuPont’s efforts to establish the company’s first set of market-facing sustainability goals, which included a strong emphasis on innovation. Read more

ROE (Return on Environment) is the new ROI: how sustainability drives business success

Comparing the themes of Climate Week 2016 versus 2017 provides a telling picture of the state of climate affairs. “America Means Business: US Leadership in a post-Paris World” was last year’s focus, while this year is all about three words: “Innovation. Jobs. Prosperity.”

It has been a remarkable year for climate action – in the absence of federal oversight and leadership, we’ve seen a major shift towards city, state and business leaders becoming the standard-bearers for the environment and the economy. With the release of Fortune’s Change the World list, it is obvious that the bar for corporate leadership has been raised even further. Companies that previously stayed mute on environmental and social issues now speak out; not as an anomaly but as a defining factor of their business.

The expectations of today’s stakeholders – investors, employees, consumers, communities – demand a higher, more visionary level of sustainability leadership. Corporate leaders who put their money, and actions, where their mouth is on environmental and social issues are driving innovation, creating jobs, and gaining a new competitive edge for their businesses. Read more

Natural gas, meet Silicon Valley. The challenge for mobile methane monitoring is now underway

Oil and gas methane monitoring

Three years ago, Environmental Defense Fund (EDF) united with oil and gas industry leaders including Shell and Statoil to launch the Methane Detectors Challenge – a collaborative effort to catalyze the development and deployment of stationary, continuous methane monitors. With industry pilot projects now cropping up from Texas to Alberta, continuous methane monitoring on natural gas sites is on a pathway to become one of the core tools in the monitoring toolkit.

And that’s a good thing – 24/7 monitoring is the gold standard for emissions control, opening a new frontier in site-level insight. It will enable real time identification and repair of natural gas waste that pollutes the atmosphere, and the industry’s own reputation.

Now, another exciting area of innovation is emerging, as entrepreneurs, technologists, and academics pursue mobile approaches to monitor leaks. Whether by plane, helicopter, drone or truck, mobile monitoring offers the promise of surveying highly dispersed industrial facilities – including smaller and older ones – quickly and effectively. With an estimated one million well pads in the United States alone, the speed and coverage of monitoring matter.

Environmental Defense Fund takes oil and gas operators and local media for a demonstration of mobile monitoring technology from Apogee Scientific

Mobile methane monitoring for some sites could be a perfect complement to continuous monitoring for others, offering a 1-2 punch solution to comprehensively monitor and address emissions across a highly variable industry, with fit-for-purpose tools.

A new collaborative challenge to reduce methane

That’s why we are so pleased to support Stanford University’s Natural Gas Initiative by announcing the Stanford/EDF Mobile Monitoring Challenge (MMC). The MMC is the latest collaborative innovation project from EDF, partnering with Dr. Adam Brandt of Stanford’s School of Earth, Energy & Environmental Sciences, the principal investigator for MMC and one of the world’s leading scientists studying oil and gas methane emissions.

Stanford/EDF Mobile Monitoring Challenge – Now accepting applications

The aim of the Mobile Monitoring Challenge is to rigorously test and compare the most promising new mobile technologies and approaches to quickly detect and quantify methane emissions – with extra interest in commercially scalable options.

Calling all methane monitoring entrepreneurs

Today begins a 45-day application period for technologists around the world who wish to participate in 15 days of field trials. Stanford and EDF, aided by industry and other expert advisors, will pick the most promising submissions this fall, and Professor Brandt’s team will oversee field testing with controlled releases of methane this winter and spring, culminating in a Stanford paper documenting results for the peer-review process.

Candidates for the Mobile Monitoring Challenge should have methane monitoring technology that:

  • Is field ready
  • Can be deployed on a mobile platform (e.g. drone, plane, car, truck, etc.)
  • Is cost-effective and can quickly detect leaks at multiple sites
  • Provides both detection and quantification

See the Stanford/EDF application process for full details.

With subsequent real world testing and demonstration, the leading mobile monitoring approaches coming out of this initiative may even support regulatory compliance, propelling greater emission reductions at even less cost – the classic win/win.

Three years ago, EDF was encouraged to receive dozens of technology applications from around the world for the Methane Detectors Challenge. With the ongoing sensor revolution coupled with the surge in methane emissions interest across North America and the world, we are even more optimistic today about what the future holds.

That’s because at EDF, we know that bringing the right stakeholders together to harness diverse thinking and innovative technologies is the next wave of environmental progress.

Let the challenge begin!


Follow Ben on Twitter, @RatnerBen


Stay on top of the latest facts, information and resources aimed at the intersection of business and the environment. Sign up for the EDF+Business blog.

Your Name

Your Email

Both fields are required.


 

Your business legacy must now include the planet

In the absence of federal leadership and oversight, who will be the standard-bearer for the environment?

You will.

The opportunity and need for bolder private sector leadership has never been greater. Business must continue to step up and lead the way to a more sustainable world where companies, communities, and the environment thrive. Your legacy must now be a legacy of leadership and stewardship. One cannot exist without the other.

Long-term economic growth and business competitiveness depends on a thriving environment. By 2050 there will be 9.5 billion consumers on our planet, all demanding more energy, food, products and services than ever before. This presents a huge challenge, and a huge opportunity for business leadership, collaboration and advocacy.

Tom Murray, VP EDF+Business, Environmental Defense Fund

Tom Murray, VP EDF+Business

It is up to you to inspire, influence and innovate for a future where both the economy and the environment can prosper. We know this is achievable because we’ve proven it. Environmental Defense Fund (EDF) has been at the forefront of this change for 25 years, bringing cutting edge science, policy, and economic expertise to high-impact companies – including McDonalds, Walmart, and KKR – to transform business as usual in their products, operations, and advocacy. But now it’s time for all of us to raise the bar.

Set big goals

When companies like Walmart, PepsiCo and Microsoft set aggressive sustainability targets, three very important things happen:

  1. Loud and clear signals are sent to employees, customers, investors, competitors and other stakeholders that they are planning for long-term competitiveness; not short-term politics. By publicly committing to bold environmental goals that reflect their impact and influence, business leaders are building a legacy of responsible prosperity for their organizations.
  2. Big public goals inspire competition and results. There’s never been a more important time for business to create a race to the top, not because regulations demand it, but because employees, customers, the economy, and the planet deserve it. And, business operates on a global scale. Environmental leadership and oversight –or lack thereof — in the U.S. is no reason to fall behind in the global race to dominate the clean energy sector.
  3. Big challenges breed big innovations. Rarely do business leaders know exactly how they will achieve their aggressive sustainability goals; but instead use goals as an impetus to innovate. Sustainability is a business challenge like any other – solutions and efficiencies are found through strategic, innovative thinking and an openness to bring the right people to the table to find the most transformative solutions.

This effort is well underway.  To date, over 275 companies are taking action on science-based targets. Here’s a step-by-step guide to learn more about setting your own science-based target.

Collaborate for scale

Private sector leaders must work together and use their purchasing power to inspire a future where both business and the environment can prosper. There is too much rhetoric coming out of Washington, DC today about a false choice between a healthy environment and a growing economy. To borrow a well-used phrase from former Secretary of Labor Robert Reich …that’s rubbish. The good news is that we can have both.  There are currently over four million jobs in the clean energy and sustainability sectors across all U.S. states. The solar industry is growing at a rate of 12 times faster than the U.S. economy. Business is innovating to create cleaner air and water, safer products and abundant, low-cost energy supplies while figuring out how to accommodate a growing population without decimating natural resources.

Business leaders must look beyond the four walls of their own operations and drive broader change across their industries and global supply chains.

Get started with EDF’s supply chain solutions center.

Shape future safeguards

The good news is that the momentum for a sustainable future is not going to come to a screeching halt now that Trump has said the U.S. will pull out of the Paris Agreement. Business leaders have voiced their intent to stay the course, loud and clear. But business has always relied on regulatory guardrails for long-term planning when it comes to the environment. What happens now?

First, if your company is already on the front-lines of climate policy, keep your foot on the gas and your brand at the forefront. If you need help stepping up your sustainability, EDF and other NGOs are here to help to drive business- and planet-worthy victories.

Second, if you’ve been sitting on the sidelines waiting to see what happens, now is the time to join the conversation. Step up and voice your business-first reasoning for a clean energy, sustainable future. Collaborate with others in your industry to amplify the message. Join other like-minded business leaders to uphold strong, global commitments.

How you can get involved:

  • Add your brand to the 1,219 mayors, governors, college and university leaders, businesses and investors who have voiced their continued support for the Paris Agreement – We Are Still In.
  • Join the world’s most influential companies in committing to 100% renewables
  • Ask your Representatives to join the Climate Solutions Caucus

In the absence of federal safeguards for our environment, it is time for business to lead from the front.


Follow Tom on Twitter, @tpmurray


Stay on top of the latest facts, information and resources aimed at the intersection of business and the environment. Sign up for the EDF+Business blog.

Your Name

Your Email

Both fields are required.

There’s no avoiding it, business must lead on climate

A few weeks ago, I attended the Earth Day Network’s Climate Leadership Gala in Washington, DC.  Each year the event brings together more than 300 leaders from business, government and the NGO community to celebrate achievements in working towards a clean energy future. This year’s top honor, the Climate Visionary Award, was presented to Unilever CEO Paul Polman for his commitment to fighting climate change.

Tom Murray, VP Corporate Partnerships, EDFBold, passionate leadership like Polman’s is essential to tackling climate change while helping to create an economy that benefits us all. He understands that it’s not a choice between business and the environment. In fact, a thriving economy depends on a thriving environment.

Corporate sustainability leadership is now more important than ever. It’s clear that the Trump Administration’s efforts to roll-back environmental protections have thrust U.S. businesses into a critical leadership role on clean energy and climate change. (In fact, I’ll be talking with business leaders later today about how they are “responding to the new norm” at the Sustainable Brands Conference.)

Over the past 25 years at EDF we’ve seen corporate sustainability go from simple operational efficiencies to global supply chain collaborations; now it’s time to go further. Business must continue to raise the bar for sustainability leadership.

How?

  1. Set big goals, then tell the world

Thinking big and setting big goals, are required to drive big innovation and big results.  Many large companies have demonstrated that if you commit to aggressive, science-based, sustainability goals, you can deliver meaningful business and environmental results. For example, Walmart, a longtime EDF partner with a track record of setting aggressive yet achievable climate goals, has recently set its sights even higher by setting a goal to source half of the company’s energy from renewable sources by 2025 and by launching Project Gigaton, a cumulative one gigaton emissions reduction in its supply chain by 2030.

And Walmart is not the only one. Other companies are stepping up as well – especially around commitments to go 100 percent renewable. Whether its online marketplace eBay committing to 100 percent renewable power in all data centers & offices by 2025, Tesco, one of the world’s largest retailers, announcing science-based targets and committing to 100 percent renewable electricity by 2030 or AB InBev committing to 100 percent renewable power, companies from diverse industries are taking a positive step forward.

While setting goals is a great first step, companies also need to communicate about the goals and progress. Not only does this increase transparency into a business’ sustainability efforts, it lets the world know that sustainability is core to its business. Publicly committing to sustainability goals sends a strong signal to suppliers, shareholders and customers.

  1. Collaborate for scale

In December 2016 I wrote about Smithfield Foods, the world’s number one pork producer, and its plan to cut greenhouse gas emissions 25 percent by 2025. The commitment was important both because Smithfield was the first major protein company to adopt a greenhouse gas reduction goal but also because the reductions would come from across Smithfield's supply chain, on company-owned farms, at processing facilities and throughout its transportation network.

Smithfield understands that some environmental challenges are too big to handle on their own, and they know collaboration is the key to deliver impact at scale.

Other companies are also looking beyond their own supply chain and forming mutually beneficial partnerships. Take the recent partnership between UPS and Sealed Air Corporation, for example. The two companies have announced the opening of a Packaging Innovation Center in Louisville, Kentucky where they will solve the packaging and shipping challenges of e-commerce retailers but also drive new efficiencies while minimizing waste. This is a critical issue that is material to both their businesses, and by joining forces, are finding ways to solve an environmental challenge while improving their bottom lines.

  1. Publicly support smart climate policy

I can’t stress how critical it is right now for business leaders to move beyond their comfort zones and make their voices heard on smart climate and environmental policy. If you want to be a sustainability leader, continuing to hoe your own garden is no longer enough.  You need to align your strategy, operations, AND advocacy.  We know that environmental safeguards drive innovation, create jobs, and support long-term strategic planning.

The good news is leading voices are chiming in, from CEOs signing an open letter to Trump to more than 1,000 companies signing the Low-Carbon USA letter, in favor of environmental policies.

Some companies like Tiffany & Co. are also taking a public stand on their own. The company used its usual ad position in the New York Times to tell President Trump directly that Tiffany is backing policies that will lead us to a clean energy future.

The Way Forward

Taking the leadership mantle is never easy, but now is the time for every corporate leader to get off the sidelines and into the game. There’s plenty of room for more leaders like Polman who are ready to address climate change head-on, creating opportunities for economic growth, new jobs, and a cleaner future.  Will your company be next?

Follow Tom Murray on Twitter: @TPMurray

A path to prosperity that we can all embrace

Prosperity. We all want to attain it, yet the ways we each define it are as different as we are.

As President Trump charges through his first 100 days, there is a risky theme being pushed that a prosperous America comes with a choice between environmental protection and economic growth.

This concept is not only false, but dangerous and short sighted.

Just look at China. When I was there last year, I saw a country that, during its own industrial revolution, made decisions that had unfortunately sacrificed the environment for a short-term surge in economic prosperity. Those tradeoffs were made during a time when coal and oil provided over 90% of energy consumption, and as a result, air quality reached unhealthy standards. Now China, the world’s fastest-growing economy (IMF), is sprinting to play catch-up. In 2015, in fact, China invested $102.9 billion in renewables, making it the world’s largest investor in clean energy (the US, by contrast, invested $44.1 billion that same year). (IEEFA.org, 2017)  Earlier this year, as the Trump Administration ceded U.S. leadership, China continued to step up with a new commitment to invest over $350 billion in renewable power generation.

So I reject the idea that people have to choose between a thriving economy and clean air and water. Or that we need to choose prosperity in the short-term, but an unstable and unhealthy climate in the long-term. We should not be forced into believing false choices. Instead, we demand and deserve a healthy future where both the economy and the environment can prosper.

Protecting the environment is being positioned by President Trump as something that stifles U.S. businesses with over-regulation. And while not all regulation is perfect, sometimes policy is necessary to round out the sharp edges of capitalism. We must ensure that we’re not just eradicating environmental regulation, but instead making informed improvements with both business and the environment in mind. Just look at California as a case in point. The state’s clean energy standards for cars, buildings and electric utilities are some of the strictest in the U.S., yet California’s jobs and overall economy continue to grow steadily.

And on a national scale, a new report from Environmental Defense Fund shows that our best line to job creation lies in the sustainability and clean energy market. Addressing climate change isn’t hampering growth, it’s driving it. Sustainability now collectively represents an estimated 4-4.5 million jobs in the U.S.  The solar industry alone is currently growing at a rate 12 times faster than the rest of the U.S. economy. Clean energy and sustainability is feeding a burgeoning pipeline of well-paying jobs across all 50 states. Jobs that cannot be outsourced I might add.

The Republican’s choice for Secretary of Energy, oil industry ally Rick Perry, said during his confirmation hearing, “the question is how we address (climate change) in a thoughtful way that doesn’t compromise economic growth.”  It’s a good question, and one that must be very thoughtfully considered by Mr. Perry. When it comes to the environment and public health, we cannot repeal safeguards without devising safer, smarter replacements that diminish economic burdens while maintaining, or even increasing, protection. We need to envision prosperity through a lens where both the environment and the economy can thrive.

Our path to prosperity must be driven by long-term economics, not short-term politics.

Rolling back environmental safeguards, pausing innovation on fuel efficiency and clean energy, and reigniting a U.S. reliance on coal and oil is short-term thinking that puts us on a dangerous path.

Business prosperity in the long-term relies on resource availability. By 2050 the world will be home to 9.5 billion consumers, all looking toward business to provide the products and services they need. This consumption drives our economy—but puts a massive burden on our planet’s resources.

This is why Google, Microsoft, Nike, Nestlé, Walmart and many others are committed to sourcing 100% of their electricity from renewable energy. This is why PepsiCo is focused on improving water use efficiency, reducing food waste and eliminating emissions from its supply chain as part of its 2025 goals. And despite the threat of environmental rollbacks and noise about pulling out of the Paris Climate Agreement, 1000 companies and investors have signed on to the Business Backs Low-Carbon USA statement, which reiterated support and intent to implement the historic Agreement to address climate change. Not because regulation demands this, but because long term prosperity requires it.

If America is to continue our longstanding tradition and commitment of leaving a better future for the next generation, we must continue making decisions that align economic prosperity with environmental protection and human health. This, to me, is the most important test of business leadership.  It’s time for committed sustainability leaders to live those values, speak truth to power, and move the dialog beyond transactional, and short term campaign promises to long-term health for the economy and the planet.


Follow Tom on Twitter, @tpmurray


When the EPA is under threat, so is business: 2 key examples

American businesses benefit tremendously from the robust voluntary and regulatory programs of the U.S. Environmental Protection Agency. These programs are now under threat of massive budget cuts and regulatory rollbacks.  In the coming weeks and months, the experts at EDF+Business will examine what a weakened EPA means for business. 

While some politicians may question the reality of climate change, most CEOs do not. So it’s no surprise that while Congress has been stuck, business has been busy addressing the problem. Luckily, they’ve had a helpful partner by their side: the U.S. Environmental Protection Agency (EPA).

Contrary to now head of the EPA Scott Pruitt’s claim that business has been subjected to "regulatory uncertainty"—stated during this year’s Conservative Political Action Conference—the Agency has administered a number of voluntary and regulatory programs that help corporations respond to the challenge of climate change. For companies, future planning is simply good business. This is why many in  Corporate America—having long accepted that climate change is real— are continuing to transition towards low-carbon energy options and work with the EPA to move forward in a sensible, cost-effective manner.

But with the recent announcement on Pruitt’s plans to cut the EPA’s budget by a reported 24 percent—to roughly $6 billion, its lowest since the mid-1980's–it may be up to the business community to defend the instrumental role of the Agency in helping business thrive while protecting the environment.

Here’s a look at just two of the many EPA programs that have helped business transition to a clean energy future.

Forging a smart economic future with the Clean Power Plan

Many in the business community strongly supported the EPA’s Clean Power Plan (CPP)—the first-ever national limits on carbon pollution from power plants. The argument? Dirty sources of energy generation are becoming a growing concern for corporate America. These energy sources are increasingly uneconomic. Fortune 500 companies routinely set renewable energy and emissions reduction goals, but find roadblocks in many energy markets around the country.

Liz Delaney, Program Director, EDF Climate Corps

Fortunately, the CPP can open new opportunities for businesses interested in operating in a clean energy economy. The rule’s flexible framework puts states in the driver’s seat to set plans that call for the most appropriate and cost-effective solutions for meeting pollution reduction targets while spurring innovation. If you ask me, this satisfies Pruitt’s call to "restore federalism" by giving states more of a say in regulations. The plans provide clarity on the energy options available to businesses in different regions, helping to inform their long-term carbon reduction strategies and eventually increase access to cost-effective low-carbon energy.

This explains why last year major innovators including Mars, IKEA, Apple, Google, and Microsoft filed legal briefs in federal court supporting the EPA’s Plan. And more recently, leading executives from over 760 companies and investors—many of them Fortune 500 firms—called upon the new Administration to move ahead with policies to address climate change, like the Clean Power Plan.

The CPP is positioned to:

  • Generate $155 billion in consumer savings between 2020-2030
  • Create 3x as many jobs per $1 invested in clean energy as compared to $1 invested in fossil fuels
  • Lead to climate and health benefits worth an estimated $54 billion, including avoiding 3,600 premature deaths in 2030

The Green Power Partnership

The Green Power Partnership is a voluntary program launched by the EPA to increase the use of renewable electricity in the U.S. Under the program, businesses are armed with resources and provided technical support to identify the types of green power products that best meet their goals. Since its inception, the Partnership has made notable progress in addressing market barriers to green power procurement.

Through the Partnership, companies can reduce their carbon footprints, increase cost savings, and demonstrate civic leadership, which further drives customer, investor and stakeholder loyalty. Take Colgate-Palmolive for example: as one of the Green Power Partnership’s national top 100, the consumer products giant has generated close to 2 billion kWh of annual green power through wind power alone. This represents 80% of the company’s total electricity use.

Today, hundreds of Partner organizations rely on billions of kWh of green power annually. At the end of 2015, over 1,300 Partners were collectively using more than 30 billion kilowatt-hours (kWh) of green power annually, equivalent to the electricity use of more than three million average American homes.

Pruitt has ratified the belief that we can “grow jobs, grow the economy while being good stewards of the environment”–and he’s right. The renewable energy industry is now outpacing the rest of the U.S. in job creation; which is good news for business and the economy at large. American wind power now supports more than 100,000 jobs—an increase of 32% in just one year—and solar employs more people in U.S. electricity generation than oil, coal and gas combined.

Long-term economics versus short-term politics

We don’t know what will happen in Washington over the next few years. But many businesses are moving forward. Rather than shift course, corporations are increasing investments in clean, reliable power, a move that is consistent with sound business practices.

But business can’t do it alone. The EPA supports responsible companies who have committed to reducing their carbon footprints while safeguarding our planet. It’s time for business to not just leverage their scale and buying power to help accelerate the transition to a clean energy future, but to speak up in favor of maintaining a well-funded agency that continues to make decisions based on sound science and the law.

In his first address to the EPA, Scott Pruitt said, “you can’t lead unless you listen.” Let’s make sure he hears from the businesses that are focused on a future where both the economy and the environment can thrive.

Stay on top of the latest facts and information affecting the intersection of business and the environment. Sign up for the EDF+Business blog.

Your Name

Your Email

Both fields are required.

———————————————————————-

Follow Liz on Twitter, @lizdelaneylobo

———————————————————————

 

EPA SmartWay and Clean Truck Standards save U.S. businesses millions


American businesses benefit tremendously from the robust voluntary and regulatory programs of the U.S. Environmental Protection Agency. These programs are now under threat of massive budget cuts and regulatory rollbacks.  In the coming weeks and months, the experts at EDF+Business will examine what a weakened EPA means for business.

It’s safe to say that the EPA isn’t having the best week. Whether it was new administrator Scott Pruitt vowing to slash climate and water protections at CPAC or this week’s reveal that President Trump wants to slash a reported 24 percent of its budget, the EPA has taken a beating recently. However, what may not be as obvious is that slashing EPA’s budget and reducing funding to key programs actually hurts businesses that have greatly benefitted from EPA programs.

A key example of how the EPA bolsters business is freight. In the freight world, the EPA has done a lot for companies’ bottom lines while protecting human health and that of the planet. Companies seeking to

reduce freight costs and achieve sustainability goals across supply chains receive immense value from the EPA.  Two key programs that provide this value are the U.S. EPA SmartWay program and the Heavy-Duty Truck Greenhouse Gas Program.

A compelling value proposition for business

SmartWay was created in 2004 as a key part of the Bush Administration’s approach to addressing clean energy and climate change. The program has grown from fifteen companies at its start to nearly 4,000 companies today. The program attracts strong private sector participation because it offers a clear and compelling value proposition: freight shippers gain access to information that enables them todifferentiate between freight carriers on emissions performance.

Jason Mathers, Director, Supply Chain

This saves shippers money and cuts carbon emissions. Freight carriers participate in the program to gain access to large shippers, such as Apple, Colgate-Palmolive and Target.

The EPA SmartWay program is not only a popular program that is delivering billions of dollars of annual savings to the U.S. economy, it is also a core strategy for companies to reduce their freight emissions. The agency has calculated that since 2004, SmartWay partners have saved:

  • 72.8 million metric tons of carbon emissions
  • Over 7 billion gallons of fuel
  • $24.9 billion in fuel costs

To put it in perspective, the reduction of 72.8 million tons of emissions is roughly the equivalent to taking 15 million cars off the road annually. The $25 billion in aggregate savings from this one program is more than three times the annual budget of the entire EPA.

Given the strong value proposition of the program, it is no surprise that many companies with existing science-based targets on climate emission reductions participate in EPA SmartWay, including: Coca-Cola Enterprises, Dell, Diageo, General Mills, Hewlett Packard Enterprise, Ingersoll-Rand, Kellogg Company, Nestlé, PepsiCo, Procter & Gamble Company and Walmart.

Clean fuel driving a healthy U.S. economy

Another key program that is saving companies billions is the Heavy-Duty Truck Greenhouse Gas Program. This program supports long-term cost savings and emission reductions through clear, protective emission standards with significant lead time.

The first generation of this program, running from 2014 to 2017, was finalized in August 2011 and will cut oil consumption by more than 20 billion gallons, save a truck’s owner up to $73,000, deliver more than $50 billion in net benefits for the U.S. economy, and cut carbon dioxide pollution by 270 million metric tons.

The program was created with the broad support of the trucking industry and many other key stakeholders. Among the diverse groups that supported the standards were the American Trucking Association, Engine Manufacturers Association, Truck Manufacturers Association, and the United Auto Workers. The industry has embraced the new and improved trucks too.

The success of the first generation effort spurred the agency to launch a second phase that was finalized in August 2016. This effort stands to be a major success as well. The program is estimated to save:

  • 1.1 billion metric tons of carbon pollution
  • 550,000 tons of nitrous oxides and 32,000 tons of particulate matter (aka: harmful air pollutants)
  • 2 billion barrels of oil
  • $170 billion in fuel costs

This latest phase is also big hit with leading companies. More than 300 companies called for strong final standards during the rulemaking process, including PepsiCo and Walmart (two of the largest trucking fleets in the U.S.), mid-size trucking companies RFX Global and Dillon Transport, and large customers of trucking services General Mills, Campbell’s Soup, and IKEA. Innovative manufacturers, equipment manufacturers, and freight shippers have also called for strong standards.

The corporate support for these standards was so impressive that the New York Times issued an editorial illustrating a rare agreement on climate rules.

Every company that sells goods in the market benefits immensely from these two programs and many others from the U.S. EPA. Programs like EPA SmartWay and the Heavy Truck Greenhouse Gas Standards are saving companies and consumers billions of dollars annually, and are integral to corporate efforts to cut carbon emissions.

Looking ahead

In his remarks to EPA employees on his first day on the job, Pruitt acknowledged that “we as an agency and we as a nation can be both pro-energy and jobs and pro-environment…we don’t have to choose”. My hope is that this is a signal of open mindedness to a path forward would allow further improvements to the environment and the economy rather than roll-backs on vital programs and protections.

Perpetuating the belief that the EPA and business are at odds will not only hurt the environment, but would endanger American prosperity.

Stay on top of the latest facts and information affecting the intersection of business and the environment. Sign up for the EDF+Business blog.

Your Name

Your Email

Both fields are required.

———————————————————————-

Follow Jason on Twitter, @jasonmathers

———————————————————————