Last month, twelve major corporations announced a combined goal of buying 8.4 million megawatt hours of renewable energy each year and called for market changes to make these large-scale purchases possible. Their commitment shows that demand for renewables has reached the big time.
We're proud that eight of the twelve are EDF Climate Corps host organizations: Bloomberg, Facebook, General Motors, Hewlett Packard, Proctor & Gamble, REI, Sprint and Walmart. The coalition, brought together by the World Wildlife Fund and World Resources Institute, is demanding enough renewable energy to power 800,000 homes a year. And while it's great to see these big names in the headlines, they're not alone in calling for clean energy: 60 percent of the largest U.S. businesses have set public goals to increase their use of renewables, cut carbon pollution or both.
Companies want renewable energy because it makes good business sense: it’s clean, diversifies their energy supply, helps them hedge against fuel price volatility and furthers their greenhouse gas reduction goals. Renewables are now the fastest-growing power generation sector, and by 2018, they’re expected to make up almost a quarter of the global power mix. Prices of solar panels have dropped 75 percent since 2008, and in some parts of the country, wind is already cost-competitive with coal and gas.
CC 2012 fellow Sarah Stern presents her work to CD&R's Daniel Jacobs, left, and Thomas Franco, right
Summer at EDF is always an exciting time as EDF Climate Corps fellows fan out and begin their placements at organizations across the country. This year we're thrilled to see a dozen fellows working with private equity firms and their portfolio companies, the highest number of such placements in a single summer. In total, EDF has now placed 44 EDF Climate Corps fellows in the private equity sector to date.
Managing investment dollars equivalent to roughly 8 percent of U.S. GDP, the private equity sector is critical to sharing, replicating and advancing corporate environmental best practices, so it's gratifying to see the level of activity continue to build. New hosts this year include portfolio companies Associated Materials, Avaya, Floor & Décor, Philadelphia Energy Solutions and Taylor Morrison. Private equity firms KKR and Warburg Pincus are also hosting fellows this year, as they have previously.
Too often, environmental performance gets labeled as the responsibility of one team within a company – whether that of a dedicated sustainability staff, external or public affairs, legal or compliance, etc. As a result, a company’s staff can often think of environmental and social governance (ESG) issues as what Douglas Adams once famously termed an SEP – Somebody Else’s Problem.
With the release of its 2013 ESG and Citizenship Report, private equity firm Kravis Kohlberg & Roberts (KKR) shows it’s taking a different approach: KKR has adopted a new global policy that makes identifying and addressing ESG risks in both the pre-investment and investment phases, for its staff, everyone’s problem.
Notably, KKR’s private equity investment professionals are being integrated into the ESG risk assessment process: first, in assessing risks during the diligence phase, and second, working with portfolio companies, consultants and subject matter experts to set performance goals and measure against them during the typical five to seven years a company remains part of its portfolio.
Environmental concerns about methane emissions continue to grow as more people understand the negative climate implications of this incredibly potent greenhouse gas. Now the financial community is taking note of not only the environmental risks but the impact of methane emissions on the oil and gas industry’s bottom line. Methane leaks not only pollute the atmosphere, but every thousand cubic feet lost represents actual dollars being leaked into thin air—bad business any way you look at it.
Source: Ash Waechter
Last week the Sustainability Accounting Standards Board (SASB)—a collaborative effort aimed at improving corporate performance on environmental, social and government issues—released their provisional accounting standards for the non-renewable resources sector, which includes oil and gas production.
These accounting standards guide companies on how to measure and disclose environmental, social, and governance (ESG) risks that impact a company’s financial performance. Their work highlights the growing demand amongst investors and stakeholders for companies to report information beyond mere financial metrics in order to provide a more holistic view of a company’s position.
Environmental Defense Fund (EDF) is honored to be ranked by GreenBiz as one of the three trusted leaders among environmental nonprofits, along with World Wildlife Fund (WWF) and The Nature Conservancy (TNC) – truly excellent company.
In its inaugural NGO Report, GreenBiz asked hundreds of sustainability executives from large corporations to rate and rank 30 leading NGOs in terms of influence, credibility and effectiveness. GreenBiz charted the responses and grouped the NGOs in four categories:
- Trusted Partners – Corporate-friendly, highly credible, long-term partners with easy-to-find public success stories
- Useful Resources – Highly credible organizations known for creating helpful frameworks and services for corporate partners
- Brand Challenged – Credible, but not influential, organizations
- The Uninvited – Less broadly known groups, or those viewed more as critics than partners Read more
Environmental Defense Fund unveiled today the first group of participating organizations to sign on for EDF Climate Corps 2014, along with a revamped list of smart energy management offerings the program will provide for them. New host organizations including Starwood Hotels & Resorts Worldwide, Dow Chemical Company and Jackson Family Wines join veteran participants like AT&T, Shorenstein Properties, PepsiCo, Caesars Entertainment and McDonald’s in choosing EDF Climate Corps as a cost-effective resource to advance organizational energy management. Read more
O.K. not a bar, but into the Manhattan Center’s Hammerstein Ballroom for the TechCrunch Disrupt Hackathon. Never heard of a Hackathon? Well, until recently, I hadn’t either. It’s an event where teams of coders compete over a very short period of time to develop an app. As I learned, the “Hacking Dream Team” is to have a Hacker to do the guts of the app, the Hipster to focus on the look and feel of the app, and the Hustler to hold the project and team together. According to the event organizers, this was the best attended Hackathon TechCrunch has sponsored yet. Over 160 teams of coders competed to develop apps in less than 24 hours.
Attending the Hackathon was like getting a glimpse into the future and included demonstrations of 3-D printing and drones. Hundreds of coders hunched over their keyboards to crank out apps that ranged from the whimsical—such as the music app Game of Tones to the practical—like an app to help you with your job search called Career Hound—to those that combined the whimsical/practical such as RoboKeg.
Jennifer Dudgeon, Principal, Sustainability, CA Technologies
How much water does your organization consume? This is a question that CA Technologies has been asked more and more frequently. Customers want to know, investors want to know. Let’s not forget the CDP is scoring water disclosure next year, raising the importance of being able to articulate how we use and dispose of this very precious resource.
As a software company with no manufacturing operations and the bulk of our offices located in multi-tenant buildings, it’s challenging to answer this question. An added complication is the fact that the cost of water is significantly undervalued. This makes it difficult to craft a business case to install the necessary water meters, which would allow us to be smarter in this area. But these roadblocks didn’t stop us – innovation is at the core of our business and that extends to the sustainability realm. In the summer of 2013 we took on an EDF Climate Corps Fellow, Jonathan Hempton, to investigate how we can transparently and inclusively account for our water use practices.
As it turns out it was good timing, since around that time EDF and AT&T were finishing a project that’s aimed to help companies like ours figure this stuff out. The Water Efficiency Toolkit provides businesses with guidance on what questions to ask their facilities teams and ways to evaluate a building’s water efficiency and possible areas for improvement. Jonathan took this material and modified it to suit our needs, developing both a water audit tool and a water scorecard, which we will be rolling out this fall.
Good news for your company or organization: AT&T and EDF are hosting a free webinar on October 2nd than can help you dive into using the tools too. To find out more and register, click here.
In May 2013 we were scratching our heads trying to figure out how we can understand our water use, and in September we have a strong foundation that will allow us to develop a corporate water management plan. Not bad for a summer’s work!
Increasing droughts and water shortages are causing companies to pay more attention to their water use. Leaders like AT&T understand that proactively engaging in water conservation—including working with suppliers—can help mitigate its risks to water stress.
In 2012, EDF and AT&T launched an effort to identify opportunities to reduce water and energy use in buildings, with a focus on cooling towers. It turns out that many buildings are sitting on big opportunities to reduce water use in their cooling towers — up to 40% — in ways that can also save money. Based on these findings, AT&T is aiming for 150 million gallons in annualized water reductions by the end of 2015.
By: Tom Murray
Can you picture the amount of water you use to shower every day? Now imagine everyone in New York City – well over 8 million people – taking a shower a day of over the course of a year. That's almost the same amount of water that AT&T and Environmental Defense Fund (EDF) realized could be saved if cost-effective improvements in large scale building commercial cooling systems were adopted nationwide—28 billion gallons of water a year. That’s $170 million in annual water and sewer charges—savings that will only increase as water utility rates rise in the U.S.
In 2012, EDF and AT&T launched a pilot to identify opportunities to reduce water and energy use in buildings, with a focus on cooling towers. Many buildings are sitting on big opportunities to reduce water use in their cooling towers — up to 40% — in ways that can also save money. Based on the results from the pilot, AT&T is rolling out a plan to achieve 150 million gallons of annualized water savings by the end of 2015. The plan includes:
1. Investing in technology to improve water use efficiency for cooling towers.
2. Investing in “free-air cooling” projects, which take advantage of the outside air to provide some, or all, of the building’s cooling needs.
3. Growing the capacity to optimize cooling tower operations by sharing training materials developed during the pilot with property managers, facility managers, and other key staff across AT&T’s highest water-using sites.
Scaling up the findings beyond AT&T to other big buildings, including office space, city halls, hospitals, schools, shopping malls, and more can start saving the U.S. billions of gallons of water a year. That’s why EDF and AT&T have created a free toolkit with resources to help organizational leaders and facility managers reduce the water used for cooling buildings. The reduction solutions in the toolkit not only benefit the environment and communities, they also save organizations money. For example AT&T found that:
- One cooling tower filtration system upgrade costs less than $100,000 to install but promises more than $60,000 in annual water and sewer savings—paying for itself in less than two years.
- A minor $4,000 equipment upgrade to expand free air cooling promises nearly $40,000 in annual savings.
These kinds of smart solutions will become increasingly important as climate change reduces water supplies and development ratchets up demand. Hopefully this collaboration and toolkit will help spark the adoption of water efficiency measures in building across the country and help to make sure we continue to have enough water for people and the natural systems that sustain us.