A strong climate deal makes dollars and sense for American business

VictoriaMills_287x377_1The chorus of business voices calling for climate action has grown steadily in size and strength in the months leading up to the Paris climate talks. Now that COP 21 is finally here, companies have pumped up the volume even more, with a full-page ad in the Wall Street Journal and a wave of new commitments to the American Business Act on Climate Pledge.

Championing a Low-Carbon USA

In today’s Wall Street Journal, over a hundred U.S. companies placed a full-page advertisement calling for a shift to a low-carbon economy. The ad’s message is simple: failure to act on climate change puts America’s prosperity at risk, but the right action now will create jobs and boost competitiveness. Companies as diverse as Colgate-Palmolive, eBay, General Mills, Ingersoll-Rand, Microsoft, Owens Corning and Pacific Gas & Electric signed on to the ad, which encourages the U.S. government to:

  1. Seek a strong and fair global climate deal in Paris that provides long-term direction and periodic strengthening to keep global temperature rise below 2°C
  2. Support action to reduce U.S. emissions that achieves or exceeds national commitments and increases ambition in the future
  3. Support investment in a low-carbon economy at home and abroad, giving industry clarity and boosting the confidence of investors

These companies recognize that their efforts alone can’t solve an issue like climate change. Businesses need governments around the world to act as well. By setting ambitious goals and providing regulatory certainty, governments can unleash the power of the marketplace to deliver the necessary reductions in emissions, while also boosting competitiveness and economic growth.

Walking the Talk with the White House

This week, the White House announced that another 73 companies – including Amazon, Cisco Systems, DuPont, National Grid and News Corp. – have signed on to the American Business Act on Climate Pledge. By signing the pledge, businesses not only declare their support for a strong outcome in Paris, but also commit to cut greenhouse gas emissions in their own operations. With this third wave of pledges, 154 companies are saying that a low-carbon economy is good for business. These companies have operations in all 50 states, employ nearly 11 million people, represent more than $4.2 trillion in annual revenue and have a combined market capitalization of over $7 trillion.

Aiming High for Best Results

One final point about goal-setting: ambitious goals drive superior results. Just ask Walmart. The retailer recently surpassed its goal of reducing its global greenhouse gas emissions by 20 million metric tons by 2015, reducing them instead by 28 million metric tons. The company achieved these reductions through a wide range of initiatives, from improving energy efficiency to greening its fleet to working with EDF to cut fertilizer use across 20 million acres of farmland. If you had asked Walmart ten years ago how it was going to deliver the 20 million metric tons, it’s unlikely they could have told you. But having an ambitious goal sealed their commitment and unleashed the creativity needed to get it done – and then some.

Perhaps that’s the strongest message for our negotiators in Paris: set the targets needed to stabilize the climate, and let business innovate to meet them. Whatever the outcome of COP 21, the leadership these companies have demonstrated through their public commitments to address climate change will be even more important after the delegates come home and it’s time to turn talk into action. We look forward to seeing that leadership continue in the months and years ahead.

How helping a multi-billion dollar company (aka Walmart) is like raising a child

When it comes to Walmart meeting its greenhouse gas goal, parenting and sustainability have more in common than you think.

Notes from the Nursery/Eco-Business Nexus

I’m proud to say that Walmart just announced that they’ve not only hit but surpassed a goal that was, at the time, considered nothing short of audacious: to reduce global greenhouse gas emissions (GHG) by 20 million metric tons (MMT) in just six years.

So why am I proud? Two reasons.

First, I’ve worked alongside them every step of the way. Environmental Defense Fund (EDF) has been Walmart’s lead partner throughout this process, and as a Supply Chain specialist for EDF, I know first-hand the massive amount of research, measurement, innovation, collaboration and communication that has gone into bringing this goal across the finish line.

Second, I’m a brand new mother – and as I stare down into my 5-month-old daughter Helen’s eyes, there’s nothing I care more about than ensuring she grows up in a world that is on course to thrive—both economically and environmentally.  Walmart’s achievement gives me hope for both.Helen and Jenny

So, yes, I’m proud. Because while it may seem that my two unique perspectives—one from the nursery, one from inside the halls of the world’s largest retailer—are worlds apart, they actually have a lot in common. Read more

Walmart Vaults Past Fleet Efficiency Goals Ahead of Schedule

It’s one thing to reach a goal, stop and toast your success. But in the case of Walmart’s announcement yesterday, the finish line became a mile marker and now the company is looking at how much farther it can go.

In 2005, we worked with Walmart to set its first long-term freight goals – to increase its fleet efficiency by 25 percent by 2008 and then to double it by 2015. Walmart cleared the first goal with room to spare and announced yesterday that it has not only doubled fleet efficiency but is now on track to go further – and in the process, will avoid almost 650,000 metric tons of CO2 and save nearly $1 billion in this fiscal year alone.Trucks-Walmart

It’s a testament to the holistic approach Walmart’s taken to improve the efficiency of its fleets. The Walmart sustainability team started by choosing a specific metric of cases shipped per gallon burned in 2005 – shipping the most cases of goods the fewest miles using the most efficient equipment – and then attacked the problem from all sides to get it done.

As companies work to increase the efficiency of their freight moves – taking steps on their Green Freight Journey – it’s tempting to choose one area to work on at a time. But by choosing a few key areas to focus on – developing innovative solutions for loading, routing and driving techniques, and collaborating with tractor and trailer manufacturers on new technologies – Walmart was able to bolster freight efficiency along its supply chain at multiple points. Read more

Climbing Toward Corporate Sustainability, Even Walmart Can’t Do It Alone

ElizabethSturcken-(2)_287x377Ten years ago, the CEO of Walmart and the president of Environmental Defense Fund hiked together on Mount Washington in New Hampshire. Along the way, Lee Scott of Walmart (now retired) and Fred Krupp of EDF talked about climate change and the environmental challenges of our time. They also talked about ways that Walmart could drive positive environmental change in its product lines and operations.

The hike turned out to be the start of a ten-year journey of collaboration between Walmart and EDF, one that has helped define a new model of corporate sustainability.

In a speech that year, Lee Scott laid out three aspirational goals:

“Our environmental goals at Walmart are simple and straightforward:
1. To be supplied 100 percent by renewable energy.
2. To create zero waste.
3. To sell products that sustain our resources and environment.

These goals are both ambitious and aspirational, and I’m not sure how to achieve them…..at least not yet. This obviously will take some time…”

Lee Scott, Oct. 23, 2005

Now, on the ten-year anniversary of the 21st Century Leadership speech, EDF is taking a moment to take stock of how far this journey has taken us and the distance left to travel.

First, what have we achieved? Here are three of our proudest accomplishments:

EDF and Walmart - removing 20MMT of GHG from its global supply chain

Click to enlarge

1. Today, Walmart is announcing that it will surpass its aggressive goal of reducing 20 MMT of greenhouse gas emissions from its supply chain. In total, Walmart will reduce 28 MMT of GHG from its supply chain by the end of 2015. To achieve this goal, Walmart tackled a diverse range of projects: from helping end consumers through improving products like LED light bulbs; to creating a Closed Loop Recycling fund, and changing food date labeling to reduce waste; and working with EDF to conserve fertilizer use on over 20 million acres of U.S. farmland.

Overall, the 20 MMT reduction of GHG from Walmart’s supply chain is the equivalent of getting almost six million cars off the road.

Yes, EDF pushed Walmart to set this goal; but we also worked side by side with them to achieve it. It is this type of long-term collaboration that drives results at scale, an achievement foreshadowed by EDF president Fred Krupp when he said, "When you can get big companies to do important things, you can change the world."

2. In 2013, Walmart put a chemicals policy in place that is phasing out chemicals of concern in over 100,000 home and personal care products like laundry soap and shampoo. Private brand products now list all of their ingredients online so consumers have more transparency into what chemicals they are using in their home and on their bodies.

3. EDF and Walmart helped create the Sustainability Index, a tool powered by The Sustainability Consortium (TSC) that has evaluated billions of dollars of products on Walmart shelves. To date, 70% of Walmart suppliers have filled out the Index. Read more

Cameras, Drones and Lasers: How They're Tackling Oil and Gas Pollution


Heath Consultants' methane-measuring drone

Dr. Jason Gu was still a graduate student when he developed the technology behind SenSevere, a start-up that creates laser-based gas sensors for use in heavy industry and power plants. Today, he’s working to apply this technology to methane emissions from the oil and gas industry, making him one of the many entrepreneurs developing solutions to tackle the problem. His fascination with innovation isn’t just making his clients more efficient—it may also be saving the planet.

The hidden cost of methane

Methane, the main component of natural gas, is a powerful pollutant responsible for a quarter of the global warming we feel today. The oil and gas industry releases 7 million tons of it into the atmosphere every year through emissions from oil and gas fields and associated pipelines, resulting in over a billion dollars’ worth of wasted American energy resources. And, toxic chemicals like benzene, a known carcinogen, can accompany methane emissions, posing a potential threat to public health.

“The industry is beginning to become more sensitized to the fact that methane is an aggressive greenhouse gas,” said James Armstrong, president of Apogee Scientific, a Colorado-based methane mitigation company. For more than 15 years, Apogee has manufactured a methane detection system that uses a vacuum and infrared sensors and can be mounted to trucks, ATVs and helicopters to identify leaks in the field. “If you find the leaks and repair them, you’re not only helping the environment…you’re extending the resource.” Read more

5 Energy Trends Driving Climate Progress in 2015

Tech installing solar panels

John Rae

What a difference a year can make. Even before the last weeks tick away, 2015 stands out as a remarkable and dynamic year for climate and energy in the United States.

Read on for five bold trends that are beginning to reshape our economy – and our national discourse on climate change.

1. Investments in renewables soar

I admit it: For years, I thought renewable energy was more hype than reality. I’m happy to report that recent data proves me wrong.

In just five years, solar panel prices have fallen 80 percent, and solar capacity installed worldwide grew more than six-fold. The overall cost of solar per kilowatt-hour, meanwhile, plummeted 50 percent.

For the first time in history, energy from the sun is as cheap as traditional energy in states such as Arizona, California and Texas.

The proof is in the pudding. Apple, for example, recently signed an $848-million power agreement with a solar provider – bypassing the electric grid. A deal of this magnitude shows where solar is today, and where it is headed. Read more

Leadership + Collaboration = Impact: The Equation That Will Lead to Climate Solutions

Hand of a student pointing at green chalk board2015 has been an exciting year for action on climate and energy management. In the EDF Climate Corps network, there is a strong feeling of momentum, as company after company steps up to answer the call on climate action and demonstrates concrete ways that they are greening their energy programs. Looking around at last week’s Energy Solutions Exchange (ESE), which brought together 150 people from top organizations to share stories and insights, I was struck by all of the connections and interactions taking place in the room.

But if I learned anything from this year’s event, it’s that in order to continue this momentum and create lasting impact, we need to form a new equation: leadership + collaboration = impact. Leadership and collaboration are essential as there is a limit to how far we can get by ourselves – to get the big stuff done, we have to work together.

Companies are leading, but they need to talk about it more

I learned from our dynamic speakers that organizations are doing amazing things in energy management: like pioneering microgrid installations, scoping out solar PPA agreements, and scaling LED and VFD retrofits across their operations, yet many more are doing things that we don’t even know about.  To truly lead in this space, we need companies to start talking about their concrete energy solutions. Read more

Less-Risky Business: Turning Deforestation Commitments into Action

By Alisha Staggs, Project Manager, Corporate Partnerships, and Ben Young, Intern, Corporate Partnerships

Deforestation in Brazil

Deforestation in Brazil

Increasingly, major companies are seeing forest protection as a key component of their global strategy. However, many companies have yet to identify the concrete action steps to fulfill these goals.

Why not? Most likely because the agricultural landscape is complicated.

Major food retailers illustrate perfectly the complexities of the modern agricultural supply chain. These international corporations are tasked with managing a complex supply web of beef, coffee, soy, and other products that spans continents. Increasingly, the environmental impacts of these commodities cannot be viewed in isolation.

In Brazil, for instance, research suggests that increased demand for soy has pushed cattle ranching onto less productive land within the Amazon. While the cattle ranchers may be directly responsible for deforestation, the ultimate driver is the soy demand. On top of that, production of palm oil, another priority product for many consumer goods companies, is expected to more than double in the Amazon biome over the next decade.

So— how can a company ensure they are sourcing sustainable commodities without destroying the rainforest in the process? Read more

Less-Risky Business: 5 Reasons Companies Should Fight Deforestation

By Alisha Staggs, Project Manager, Corporate Partnerships, and Ben Young, Intern, Corporate Partnerships

forest-lossOver the last 12 months, we’ve seen a number of companies commit to reducing deforestation in their supply chain. At last count, 273 companies have made some sort of deforestation pledge across a multitude of agricultural commodities.

Yet, we often find ourselves questioning the sincerity of these claims. Are these companies simply trying to save face? Surely any action to avoid deforestation will be costly, and companies aren’t known for taking on added expenses voluntarily. So what’s in it for them?

The answer: a lot. Here are the top 5 factors that catalyze corporate leaders into taking global forest loss seriously: Read more

Forum Shows Government and Business Can Work Together to Tackle Oil & Gas Methane Emissions

powering-the-economyThere is often staunch disagreement between industry and policymakers on how to address pollution. But an event last week convening business leaders, federal and state officials and other stakeholders showed that there’s at least one idea on which they can agree and work together: the feasibility of reducing methane emissions from the oil and gas sector.

Here are four perspectives shared at this event that give me hope we can solve the large, but addressable problem of methane pollution from the oil and gas industry if we take a fact-based, collaborative approach. That would be great news in itself, and powerful precedent for tackling the broader climate opportunities ahead.

Environmental regulations are not a zero sum game. Martha Rudolph, director of Environmental Programs at the Colorado Department of Public Health and Environment, was on the front lines when Colorado proposed the nation’s first direct regulation of methane pollution from the oil and gas industry. At the event, she shared her state’s powerful example of unlikely allies coming together to protect climate and communities in a way that makes business sense.

Instead of tales of industry resistance, she shared a history of business and other stakeholders coming together with state policy makers to formulate and implement cost-effective regulations that will cut 100,000 tons of methane emissions – the climate equivalent of taking over 1.8 million cars off the road. Rudolph reports that the rules have not been challenged in court, and to date, her office had not heard complaints about compliance being difficult or costly . Noble, Anadarko, and Encana supported strong rules at the front end, and even the industry trade associations have rolled up their sleeves and set up trainings to ease rule implementation. Read more