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

Upping the ante on corporate climate leadership – by a gigaton

With the Trump Administration pulling back on federal climate action, I am heartened to see that U.S. businesses are starting to assert their leadership role in the fight for a cleaner, safer world. Bold leadership is an essential factor for business today — and no company is delivering on this more than Walmart.

The world's largest retailer recently announced Project Gigaton, arguably one of the most ambitious efforts to reduce climate pollution by any U.S. corporation.

With Project Gigaton, Walmart and its suppliers are committing to a ‘moon shot’ goal – removing a gigaton of greenhouse gas emissions from the company's global supply chain by 2030. That's more than the annual emissions of Germany. It's the equivalent of taking 211 million cars off the road every year. In a word, it’s transformational.

Breaking the mold together, then and now

Fred Krupp, President, Environmental Defense Fund

Eleven years ago, I traveled to the top of Mount Washington with then Walmart CEO Lee Scott, and we talked about the company's vast potential to drive environmental progress. Since then, an amazing ripple effect has spread across the entire retail sector. Working together, EDF, Walmart and others have gathered commitments for optimized fertilizer use on 23 million acres of U.S. farmland; eradicated 36 million metric tons of greenhouse gas emissions across the retail supply chain; and improved the health and safety of hundreds of thousands of everyday products like shampoo and laundry detergent. This work is invisible to most, but massive on an environmental scale, and nothing less than trailblazing for how business leadership and legacy is measured.

For the last quarter century Environmental Defense Fund has proven the power of business-NGO partnerships to create wins for both business and the environment. Walmart’s willingness to challenge itself and its supply chain to do better has meshed perfectly with EDF’s pragmatic approach to forging innovative solutions.

Back in 2005, it was uncommon business news when Walmart announced aspirational goals to be supplied 100 percent by renewable energy, to create zero waste, and to sell products that sustain our resources and environment. Neither Walmart nor EDF knew how we’d achieve those goals, but we set off on the journey together and found success along the way.

Walmart is in it for the long haul

For leading brands like Walmart and their suppliers, long-term economics will always outweigh short-term politics. Staying the course on sustainability is motivated by competitiveness, innovation, job creation and consumer demand. Smart business leaders understand that a thriving economy depends on a thriving environment. This is not an either/or choice. By 2050, we will have 9.5 billion global consumers, all demanding more food, goods and services. The commitment to Project Gigaton signals Walmart’s readiness to plan accordingly.

The Project Gigaton challenge is massive, but by working collaboratively, our confidence for success is high. The modern supply chain is responsible for 60% of all greenhouse gas emissions, 80% of all water use and 66% of all tropical deforestation.  This is not a goal that Walmart can do alone. It takes committed collaboration: of NGOs, partners, and an extensive network of suppliers – many leading brands in their own right – to drive reductions from factories to farms to forests, fleets and beyond.

Creating long-term prosperity for business and the environment requires long-term commitment from both business and NGOs. Together, EDF and Walmart have already climbed one mountain, and now we are ready to ascend even steeper peaks. The planet is counting on us.


Follow Fred on Twitter, @FredKrupp


 

Corporate America’s “moon shot”: Walmart’s Project Gigaton

 

At a time when leadership from the federal government is decidedly lacking, today’s launch of Walmart’s Project Gigaton is a cause for celebration. It is proof that companies can step up to advance solutions that will help business, people and nature thrive.

Just like Walmart itself, this is big.

The world’s largest retailer has launched an initiative to remove 1 gigaton (that’s 1 billion tons — billion with a “b”) of greenhouse gas emissions (GHG) from its supply chain by 2030. To put that in perspective, that is the equivalent of removing the annual emissions of Germany — the world’s fourth-largest economy — from the atmosphere. This audacious goal is impressive; it’s corporate America’s “moon shot,” and it shows real leadership.

Why? Because, according to The Sustainability Consortium, the modern supply chain is responsible for 60 percent of all greenhouse gas emissions, 80 percent of all water use and 66 percent of all tropical deforestation. And with the global population projected to swell to 9.5 billion consumers by 2050, it is clear there is not just a crucial opportunity for businesses to meet growing global demand, there is also a real need to protect the planet. Embracing sustainable practices is no longer an option for business. It is an imperative. The planet needs fast action at a massive scale.

So do forward-looking CEOs. Shareholders are rewarding resiliency when companies climate-proof their global operations. And customers, especially millennials, expect sustainability to be baked into the things they buy. In short, business is looking to drive bottom-line value, including growth, with sustainability.

Elizabeth Sturcken, Managing Director, EDF+Business

Which explains the significant Project Gigaton commitments being made by companies like Unilever (20 million metric tons of GHG reduction) and Land O’ Lakes (20 million acres sustainably farmed) and commitments made in the past six months by Apple, Amazon, Google, PepsiCo, Smithfield Foods and others.

Execution and delivery

But setting goals is just the first step. The execution and delivery must follow to complete this journey.

Which brings me back to this moon shot: Walmart cannot do this alone. Project Gigaton will take a village — in this case, the tens of thousands of companies that make up Walmart’s global supplier network — to make this goal a reality. And that’s a good thing: Eliminating GHG emissions at this scale will reverberate across entire sectors and industries. It will be the change to “business as usual” that’s long overdue.

That’s all fine and well, rhetorically. But what if you’re a CEO or CSR exec who’s facing the hard reality of “Where do I start”?

Some new research by Environmental Defense Fund starts to sketch out a roadmap to success — and illustrates the need for supply-chain partners to get on the bus. While we’re just at the beginning of a deep dive into the sustainability of the U.S. retail supply chain, our initial findings show two things:  the complexity and emission hotspots of box chain retailers and three clear, initial areas of focus:

  1. The supply chain is the largest source of emissions. If there was any doubt left, put it to rest: 80 percent of retail emissions occur in the supply chain; 12 percent are associated with the use and disposal of products and 8 percent come directly from retail operations — mostly buildings and facilities.
  2. Grocery is a huge hotspot and opportunity. Are you a retailer? Food company? Agricultural service provider? Farmer? Nearly half — 48 percent — of supply-chain greenhouse gas emissions come from the grocery category, which encompasses everything from fresh meat, veggies and dairy, to bakery, dry goods, beverages, snacks and frozen products. Together, these and other products emits 1.7 gigatons of GHGs (there’s that billion thing again). In other words, food production — and food waste — is definitely a place to make your numbers — and to make a difference. (Talk about low-hanging fruit!)
  3. Electricity is the biggest activity that contributes to emissions. From factories to farmhouses, whether powering a business or refrigerating an item at home, using electricity is the largest activity that produces emissions for consumer packaged goods production. Think about that: by tackling electricity use, whether from conservation or renewable energy, business leaders can not only run a more efficient operation, they can also engage their customers on which products to buy and how to best use them. That’s good business.

For those who have been paying attention to these issues for decades, these big opportunities won’t come as a surprise. But they help sharpen the focus for supply-chain professionals searching to answer the question of where to put effort and investment to get the most emissions-reduction results. Scale and speed are necessary. Knowing where to focus is critical. The EDF research is in the early stages and we plan to release the full results later this year.

In the meantime, kudos to Walmart. As suppliers make commitments for Project Gigaton that will drive reductions from factories to farms to forests to fleets, it will become imperative to identify hotspots to enable the largest impact. That’s exactly what drives innovation and the environmental impact we need.

The supply chain may be complicated, but the rewards are well worth it: thriving companies, thriving communities and a thriving planet.

Jump on the Project Gigaton moon shot. It’s leaving the launching pad, with or without you.


Follow Elizabeth on Twitter, @esturcken


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Can technology save the climate? These companies are betting $1 billion it can

Photo credit John Davidson.

Last November, on the same day the Paris climate agreement took effect, 10 of the world’s largest oil and gas companies, including BG Group, BP, Eni, Pemex, Reliance Industries, Repsol, Saudi Aramco, Shell, Statoil and Total, announced a billion-dollar investment in climate solutions. Together, the member-companies of the Oil and Gas Climate Initiative (OGCI) produce 20 percent of the world’s oil and gas and operate in 55 countries.

Their commitment was the beginning sign of a growing and public recognition by the oil and gas industry that tomorrow’s low carbon energy transformation has become today’s new energy imperative.

Right now, the biggest, most pressing climate item for the oil and gas industry is methane. Importantly, OGCI’s announcement included a global focus on reducing methane, a powerful greenhouse gas. Far more potent than carbon dioxide over a 20-year timespan, methane is responsible for about a quarter of the warming we feel today.

Many expect OGCI to direct hundreds of millions of its billion-dollar pledge into addressing methane. Beyond the climate benefits, it’s a smart business investment. The International Energy Agency has said, “the potential for natural gas to play a credible role in the transition to a decarbonized energy system fundamentally depends on minimizing these emissions.” Simply put, methane is an existential threat for an industry and its long term investors banking on natural gas to aid the transition to a lower-carbon energy economy.

Potential is high for OGCI’s methane endeavor to catalyze important breakthroughs. With sets of OGCI members holding joint stakes in nearly 250 natural gas projects worldwide, there is opportunity to catalyze and spread methane emission reductions throughout the whole industry. We stand ready to help OGCI develop innovative solutions and offer the following suggestions as it begins its methane work.

Data Drives Success

Data alone won’t solve the methane challenge. But strong and credible data are essential. In the United States, vast scientific initiatives have greatly improved our understanding of methane leaks, releases and total emissions from oil and gas activity. This scientific understanding helps companies identify reduction opportunities and regulators develop sound, data-based regulations.

Globally, however, methane measurement is much less mature. Filling the gaps to better inform how companies and countries can address this problem in other parts of the world is important, while companies continue to pursue mitigation opportunities. As a future founding member of the UN’s Oil and Gas Methane Science Studies partnership, OGCI is positioned to bolster reliable and transparent methane science worldwide.

Innovation Requires Collaboration

Some of the innovation required to solve the methane challenge will come from collaboration within and among the OGCI companies. But not all of it. Around the world, there are entrepreneurs, scientists and investors that are already tackling methane. In our experience with the Methane Detectors Challenge, we learned that innovation requires early and ongoing collaboration across technology and energy sector lines. Without it, entrepreneurs don’t know what the market needs or wants and energy companies don’t know what technologists can deliver.

Today, there are gaps of information, culture, language and understanding between technology entrepreneurs and the energy companies they are trying to serve. Closing these gaps by supporting technology innovation is a prime opportunity for an industry group like OGCI to support, and OGCI is positioned to do this now that it has set up a smaller investment vehicle with the license to be nimble.

Focus on Prevention and Detection

Preventing methane leaks and finding them quickly are the two most important methane opportunities.

Every leak that is prevented is a leak that doesn’t need to be repaired. Innovation in design, technologies and strategies that prevent emissions at specific and known sources of equipment should be top of mind for OGCI. For example, aerial measurement studies have shown that tanks are significant emission sources, some of which are not properly controlled. Routine methane releases from inefficient or malfunctioning valves are also believed to be a significant source.

An undetected methane leak can leak indefinitely. It’s one reason why periodic detection is so important, and efficient airborne sweeps for large leaks should be investigated. But while routine checks are better than none, they can still allow leaks to persist for months at a time. In the United States alone, studies have shown that 10 percent of leaks are responsible for 80 percent of emissions. Fortunately, next-generation detection technologies are being developed to catch large leaks with the speed we’d expect in the digital age.

Statoil, a Norwegian-based international oil and gas company and OGCI member, is pioneering continuous methane emissions monitoring at a well pad in Texas, and a leading natural gas utility is doing the same in California. These are promising developments, bringing real-time methane monitors to market. Now, the next level of industry leadership from groups such as OCGI are vital to help spur competition in this growing segment and drive unit deployment up and costs down.

Avoiding the wasteful flaring of natural gas in favor of recapturing the fuel is another worthy opportunity to tighten the oil and gas system. There are roughly 16,000 flares worldwide, and some flares burn all day and night. OGCI can galvanize investors and operators to provide the capital and incentives to put entrepreneurs to work turning wasted gas into productive use.

Results Matter

OGCI’s success will be measured by the amount of methane reductions it delivers. Now is the time for OGCI to set a clear path for how it will achieve success with its multi-million dollar methane mitigation endeavor.

EDF’s global goal – reducing oil and gas methane emissions 45 percent by 2025 – coincides with OGCI’s 10-year mandate and is a mark we encourage the group to embrace or exceed. Industry leaders and investors need to manage methane risk so that natural gas is a cleaner, more responsible transition fuel. Governments and their citizens need to know that industry is doing all it can to address the global methane challenge. OGCI is in a unique position to spur innovation that can satisfy both needs.

Follow Ben on Twitter @RatnerBen

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


From row crops to rainforests: how agriculture affects us all

Happy Agriculture Day! Whether you have a special interest in agriculture or not, we’re guessing that—as a human being—you probably have an interest in food

But, on this Agriculture Day, we want to recognize and celebrate the farmers and ranchers while acknowledging the fact that we all play a part in the growing of food. In just a few decades, there will be two billion more people to feed on the planet. As a global community our challenge is to feed this growing population sustainably without depleting the soil, polluting our water and worsening global warming.

The statistics are eye opening. Global food production accounts for:

  • 33% of the world’s GHG emissions
  • 70% of the world’s water consumption
  • 80% of deforestation worldwide
  • 50% of global top soil loss

What’s behind these huge numbers? When we look deeper, the problem looks different depending upon which side of the equator you’re on. From row crops to rainforests, here’s a snapshot of what’s happening, both in terms of the problem and the solution:

Domestic Agriculture                         

When we think about how we will feed an additional 2 billion people, improving yields will be critical to meet demand. Fertilizer is an essential nutrient that will help to increase the yields we need. But with less than half of nutrients applied each season being actually absorbed by crops, the unused fertilizer is bad for the planet:

  • US food production accounts for 75% of nitrous oxide emissions and has contributed to the pollution of nearly 40% of US drinking water supply;
  • Excess fertilizer and pollution is washing off of farm fields and into water ways degrading coastal ecosystems and causing algae blooms.

At the same time, this also hurts farmers financially. Fertilizer represents their single biggest input cost, so when nearly $420 million in fertilizer washes off Midwestern farm fields and into the Gulf of Mexico every year, it’s tough to remain profitable.

EDF’s work* with  Walmart, Smithfield Foods, Campbell’s Soup, Land O’ Lakes and other food companies is proving that efficient fertilizer use reduces supply chain emissions and saves money. It just needs to happen more: when food companies, retailers, and other supply chain actors send the demand for scientifically based and economically viable strategies for using fertilizer more efficiently, sustainable practices will expand and far less impact will be placed on the environment.

Agriculture and Deforestation

Agriculture is the largest single cause of deforestation. Everyday forest lands in Brazil and other tropical countries are burned down to grow crops or to create cattle pastures for beef production. The exploitation of the tropical forests for the big four agricultural commodities, palm oil, beef, soy, and pulp and paper, contributes significantly to climate change.

Deforestation accounts for about 15% of global carbon emissions annually. Hundreds of major consumer goods companies have committed to eliminating deforestation from their supply chains.

The challenge is twofold: how to increase agricultural production in these topical regions to support the livelihoods of local communities and growing global consumer needs, while fulfilling companies’ zero-deforestation commitments to reduce carbon emissions?

The solution lies in multi-stakeholder engagement. Brazil’s experience shows that collaboration between companies, government agencies and local communities within a region can successfully reduce deforestation while maintaining robust growth in production. The country successfully reduced Amazon deforestation by about 75% from 2005 to 2013.

Katie Anderson, Project Manager, EDF+Business

When executed properly, these jurisdictional approaches provide win-win-win opportunities. Companies have a new way to meet zero deforestation commitments in supply chains by sourcing from lower risk areas and reduce the risk that deforestation will spread to other suppliers. Governments have additional support to improve policies and productivity in their regions. Farmers have the needed incentives and assistance to increase sustainability and profitability on their lands.

Partnership is the key

So it’s clear: our food has costs beyond our wallets, in the form of greenhouse gases, water quality, water scarcity, biodiversity, and other important impacts that we don’t see each day when we sit down at the table.

But the good news is, there’s a lot of movement—or potential for movement— across the food supply chains, from retailers to growers to consumers, to promote sustainable practices on a multitude of food and agriculture issues.

Theresa Erhlich, Project Coordinator, Supply Chain

To tackle these costs, everyone along the food chain needs to realize that there is no free lunch (pun very much intended):

  • At EDF, we are working in collaboration with farmers, companies, governments, and other NGO’s to address these issues and reduce the impact of our food supply chains.
  • Companies (including: food companies, retailers and other supply chain actors) need to consistently send the demand signal to farmers that they want less deforestation and more efficient fertilizer use.
  • Consumers play an important role by sending our own demand signal for more sustainably produced food by thanking the companies leading the way in sustainability through shopping power.

So today take a moment think about where our food is comes from, and the hard work and energy that went into its approaches to feed people and protect our planet.

* EDF takes no money from our corporate partners—we are funded solely through grants, donations and membership. 

6 ways restaurants can fight food waste (and how you can help)

By engaging consumers, clarifying date labeling, and promoting composting, grocers, supermarkets and food companies can play an important role in cutting food waste. But did you know that an estimated 85% of food waste occurs at consumer-facing businesses and homes?

In the restaurant and food service industry, food loss occurs due to inefficiencies, pressure to offer extensive menu options, large portions and consumer culture. According to a study, 4-10% of food purchased by restaurants becomes kitchen loss, both edible and inedible, before reaching the consumer. Once the plate leaves the kitchen, diners typically leave 17% of meals uneaten and 55% of these potential leftovers are not taken home.

All this uneaten food comes with a high cost, both for your wallet and the planet:

But, by working together, restaurateurs (and their customers) can increase efficiency, save money and reduce food

waste.  Here are 6 ideas for restaurant owners, some fairly obvious, others as a result of emerging technologies or innovative practices:

  1. Limit menu items to optimize inventory management. Extensive menus require more inventory on hand at all times and could lead to greater waste.
  2. Offer reduced portion size options. Many national chains such as TGIFridays, Au Bon Pain, Maggianos and Cheesecake Factory, have begun offering small plate options to reduce waste.
  3. Use waste audit software such as MintScrape to identify waste sources.
  4. Find alternative uses for surplus food. One app, Too Good to Go, connects users to restaurants offering discounts on surplus food before closing or throwing it away. The app will be available in the U.S. in 2018.
  5. Get creative. Find ways to reuse food in creative and innovative ways. Restaurant owner Sean Telo of Brooklyn 21 is turning food waste into his Sunday tasting menu. Some recent items on the menu have included mozzarella butter, roasted eggplant puree served with biscuits, and pizza with lamb bacon, cheese, and honey.
  6. Look to best practices for ways to improve efficiency and reduce overall costs.

    Theresa Ehrlich, Project Coordinator, Supply Chain

What can customers do?

  • First, vote with your wallet by supporting local businesses and national brands committed to reducing food waste.
  • Next, when you're patronizing those businesses, be more conscientious of your ordering choices.
  • Finally, take leftovers home for a late night snack or cheap, easy lunch.  Brown bagging it can mean a greener planet!

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.

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Follow Liz on Twitter, @lizdelaneylobo

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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.

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The state of green business? Hopeful, puzzling… and pushing forward

I always look forward to the latest State of Green Business report from GreenBiz. It invigorates me and reminds me that there are a lot of talented people making sure that both business and the planet can thrive– a notion that I’m holding tight as the political atmosphere gets increasingly crazy.

I found two of the trends in the report of particular interest because they signal that smart business leaders are staying the course on climate.

Trend: Corporate Clean Energy Grows Up

The trend toward corporations transitioning to renewable energy has been gaining momentum for years. Today, twenty-two of the Fortune 100 have committed to procuring 100% of their energy from renewables, and 71 have a public target for sustainability or renewable energy.

“Business is a very important advocate for clean energy, because it speaks the language of hard economics,” points out Jim Walker, co-founder of The Climate Group. “It’s sending a strong signal to policymakers and the general public that this is the inevitable direction we’re going to move towards – a 100% clean energy economy.”

When innovative companies like Apple, Amazon, Unilever, and Google show leadership on renewable energy, their suppliers, customers, competitors, and the market respond. Microsoft, for example, is helping lead the way by purchasing 237 megawatts of capacity from projects in Wyoming and Kansas. And, Walmart, a long-time EDF partner, has also made a commitment to source 100% of its electricity from renewable energy. Currently at 25%, they’ve made significant progress on implementation.

With corporate leadership like this in place, it’s clear that business will continue to have an impact on the renewable energy revolution. The recent report from my EDF Climate Corps colleagues is proof of that: the solar power sector is growing quickly, and is a major source of jobs that are a.) impossible to outsource and, b.) available in all 50 states.

Trend – Companies Put Their Money Where Their Suppliers Are

According to the Business and Sustainable Development Commission, embedding sustainable business practices in the global food and agriculture industry could deliver $2.3 trillion annually.

“All stakeholders can share in the benefits: smallholder farmers improve their livelihoods; suppliers gain increased security of supply with improved quality; and we reduce volatility and uncertainty with a more secure and sustainable supply chain,” wrote Unilever CEO Paul Polman.

Elizabeth Sturcken, Managing Director, EDF+Business

When a corporation commits to reduce emissions in their supply chain, the results can be powerful.  We’re seeing this firsthand with our work with Walmart. EDF spent 10 years with Walmart to help drive sustainability across its global supply chain. The result? By the end of 2015, through leadership, innovation and a diverse range of projects, Walmart had exceeded its goal to reduce supply chain emissions eliminated 36 MMT of greenhouse gas from its supply chain. Now, they’ve committed to removing 1 Gigaton of emissions by 2030 – the equivalent of the total annual emissions of Germany.

Smithfield Foods is another company that EDF collaborated with in setting a goal to reduce absolute greenhouse gas emissions by 25% by 2025 across its upstream U.S. supply chain. EDF will continue to help Smithfield improve fertilizer efficiency and soil health, which will reduce nitrous oxide emissions from grain farms.

But to keep moving forward on these sustainability trends and others requires business to use its voice and influence to not backpedal on policies that are a win-win for our environment and our economy. We are at a crucial period where companies need to make the long-term economic case for policy, including the Clean Power Plan, Toxic Substances Control Act (TSCA) and ensuring the U.S remains part of the Paris Agreement.

Businesses will not go backwards on environmental protection. It’s bad for business and the environment. In fact, over 600 businesses have signed the Low Carbon USA letter calling on U.S. elected leaders to stay the course on environmental protection and climate leadership.  Now is the time for unlikely voices to step up and continue to press the case for action; the recent call for a carbon tax is probably most noteworthy because it was brought forth by Republican party faithfuls.

If there was one sentence in the State of Green Business report that captured the feeling of the moment it was this: “It’s hard to imagine a time more hopeful and horrifying for sustainable business.” At EDF, we’re not only hopeful but we’re committed: the economy and the planet can—and must–thrive together. Any conversation that suggests otherwise is a non-starter.