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.

 

No “alternative facts” needed: leading on sustainability is smart business strategy

A Businessman is looking out the window in a modern panoramic meeting room in New York. The concept of the meeting of the Board of Director of the huge transnational corporation.

For the people who dedicate their lives to helping keep the planet livable, it’s hard to wrap one’s mind around our new weird, warped, post-election world. Every day seems to bring some new government official denying facts and science (aka reality), or doing unthinkable damage to the suddenly-less-venerable institutions they now lead.

As someone who has a 20-year track record of working side-by-side with the private sector to create positive environmental change, I can just imagine how anxious business executives must be feeling these days. The specter of a three a.m. tweet from the White House demanding that they run their company according to a Presidential whim, rather than the realities of the global marketplace (or the expectations of shareholders), can make for a lot of sleepless nights.

Unlike certain “business-executive-Presidents", however, real CEOs have to be fact-driven.

And the forward-thinking executives—the ones who are thinking hard about the long-term growth, profitability and resiliency of their companies—are well aware of the facts. They know that human-caused climate change is real, and carries with it huge costs. Executives selling food grown in rapidly changing landscapes and/or products dependent on materials from across the globe aren’t playing in a fantasy world where climate change is a “hoax invented by China.”

And they know that how we deal with climate change will determine whether we will be a driver or a destroyer of business value. As a peer-reviewed study in the journal Nature recently found (and the New York Times reported): "even if the world is able to stave off an increase in atmospheric temperatures of 2 degrees Celsius or 3.6 degrees Fahrenheit — a goal agreed to as part of the Paris deal — climate change could wipe out $1.7 trillion worth of global financial assets."

So, I’m hopeful that, at least in terms of sustainability, the rational decisions being made on Wall Street will act as a counter-balance to what appears to be erratic decisions coming out of Washington. Consider just a few of the recent announcements and actions of the private sector:

  • In just the past 3 months, Google, Microsoft, Pepsi, Smithfield Foods, Walmart and many others have continued to lead the way and prove what’s possible through bold, science-based goals, investments in clean energy and expanded efforts to drive down emissions in their operations and supply chains.
  • At the recent World Economic Forum (WEF) in Davos, Unilever CEO Paul Polman said “to make America great again, climate action is very logical. This is a very convincing story for job creation and economic growth.” My colleagues at EDF Climate Corps back this up with data; the sustainability sector is booming with jobs that 1.) can’t be outsourced, and 2.) are readily available in all fifty states.
  • A WEF report on the future of retail talks about “the golden age of the consumer” and the implications and opportunities that are created for sustainability by addressing how goods are delivered—what is called the “last mile of delivery”—and how products are packaged.
  • Commenting on that same report, Walmart CEO Doug McMillon pointed out that sustainability will impact retail in ways far beyond logistics and packaging: in this age of social media sharing, the push for transparency in supply chains will be customer-driven. McMillon knows that “retailers will only survive if their business creates shared value that benefits shareholders and society.”
  • Finally, in a recent op-ed entitled Why Walmart is doubling down on its commitment to climate change, Walmart board member Rob Walton, gave a simple answer: because it’s good for business! “We set [our climate goals] because we wanted to help address climate change and improve lives, while also strengthening our company and reducing expenses,” he said. “We thought it would be a win-win: good for society, and good for Walmart.  Eleven years later, that's exactly what we've seen.”

    Elizabeth Sturcken, Managing Director, EDF+Business

    Elizabeth Sturcken, Managing Director, EDF+Business

That’s a long list—and one that adds to the mounting evidence that corporate America “gets it”:

momentum for business leadership on sustainability is here to stay. Which is in no way surprising, because after my many years of working with business, I’ve seen firsthand the immense value creation that comes with moving forward—not backward—on environmental issues.

So, for all that has changed in these times of “alternative facts,” those who care about having a livable, thriving planet can feel confident that they have a powerful ally in business. Because when it comes to our climate, our health and our planet itself, if we’re not making progress, we’re losing.

Things You May Have Missed During the Election #2: Deforestation and Walmart’s Gigaton Goal

edf-business-of-food-blog-graphic_shelton-grp_12-7-16Editor's Note—We're proud to make two, new introductions this month: Katie Anderson joins our Supply Chain team as a Project Manager with a focus on deforestation, and "The Business of Food" is born as a new category dedicated to exploring how the growing, processing, distributing, purchasing, consuming and disposing of food impacts our communities, our economy and our planet.

A month out from the election, we know that the global community faces significant uncertainty about what President-elect Trump and his administration will mean for climate outcomes. But with the 24-hour news cycle making it clear just how “transitional” this presidential transition period is, I think it’s worth shining a light on three recent events that I’m going label has hopeful, tragic and confounding:

  1. Hopeful: as part of its 2025 sustainability goals, Walmart announced a target reduction of 1 gigaton of greenhouse gases from its supply chain;
  2. Tragic: Brazil’s National Institute for Space Research (INPE) announced a 29% increase in deforestation over the past year;
  3. Confounding: thinking he was going to have a climate change chat with Ivanka Trump, Al Gore made a trip to Manhattan—and ended up sitting down with the President-elect as well.

Let’s take the second part first and talk about deforestation.  Tropical deforestation contributes about 15% of the world’s greenhouse gas emissions, making forests an incredibly valuable part of the climate conversation.

Katie Anderson Project Manager, Supply Chain

Katie Anderson
Project Manager, Supply Chain

Alongside the climate benefits, forests also provide habitat for 70% of the world’s species, allow for improved water quality and support livelihoods for indigenous communities. So INPE’s announcement is absolutely tragic—especially when you consider that the amount of tropical forest lost in just one year equals the size of the state of Delaware.

So let’s move on to the hopeful part: Walmart’s goal. Just how much, exactly, is 1 gigaton of greenhouse gas? Most often it’s held up as being equal to the annual emissions of Germany (the world’s 4th largest economy). But just so you can appreciate the scale of both Walmart’s audacious ambitions and the problem we’re facing in our rainforests, Walmart’s goal is equivalent to only ¼ the annual GHG emissions caused by global deforestation!

Which means we’ve got a long way to go.

On to the confounding part: kudos to Ivanka Trump for inviting Al Gore for a talk on climate change. Sadly, it seems her dream position of being the “Climate Czar” will be ceremonial at best, because whatever was discussed at their Manhattan meeting was likely rendered moot by her father’s nomination of Scott Pruitt to be head of the Environmental Protection Agency (EPA). I’m guessing we’ll never really know what was said, but if Donald and Ivanka are even half the business geniuses they claim to be, they should have listened to Gore, particularly if he brought up deforestation. Here’s why:

Sustainable sourcing drives business value

Creating deforestation-free supply chains provides value to corporate bottom lines. Effective work on reducing deforestation in supply chains reduces reputational risk, builds trust and transparency with consumers, and drives investor value. Just two examples include:

In other words, customers and shareholders around the world are waking up, and business leaders are responding accordingly. Given that agriculture drives 70% of global deforestation, corporate actors who source our everyday products now realize they have big role to play in finding a solution.

Walmart is a perfect example: the need to expand the sourcing of commodities produced with zero net deforestation was cited as an essential component of meeting the 1 gigaton goal. And Walmart is by no means alone: to date, 366 companies have made public commitments to reduce deforestation in their supply chains—for the simple reason that they’re becoming aware of the major risks of not engaging in deforestation-free sourcing.

Unfortunately, public information on if/how companies are achieving these goals is only available for one-third of these commitments, but it appears that, while they’re a good start, commitments alone not enough.

Given all that, what’s a forward-thinking CEO to do regarding deforestation?

Landscape-scale approaches are critical to hitting targets

An emerging opportunity is in engaging landscapes, or jurisdictions, in reducing deforestation across the entire area. Rather than going farm-by-farm to achieve certifications—which is likely to lead to islands of “green” in a sea of deforestation—a jurisdictional approach allows whole regions to be categorized as reducing deforestation.

This is valuable for many reasons:

  1. the costs of monitoring compliance are shared among governments, corporate actors, and other stakeholders;
  2. it avoids leakage—a problem where one farm may reduce deforestation but will push deforestation into a different farm;
  3. it works across all commodities that drive deforestation rather than solely through certain supply chains;
  4. it protects the rights of landholders and indigenous communities.

Now, more than ever, business needs to lead

President-elect Trump often cites business as “the solution” to what’s ailing our country. In terms of climate change, this is one area where he and I agree.

In these uncertain (read: hopeful, tragic, confounding) times, it is incredibly important for corporations to publicly lead on how they work within their operations and their supply chains to reach climate balance. This means setting bigger goals, digging more deeply into the weeds to understand the impacts of their supply chains, and reaching beyond their walls to find the solutions that are most likely to bring the change we need.

Things You May Have Missed During the Election #1: Walmart, Trust and Sustainability

There’s been a lot of talk about “trust” in the media lately—and it wasn’t all coming from the Trump and Clinton camps. In case you missed it, Walmart announced its 2025 goals just a few days before the election, as part of what Walmart CEO Doug McMillon characterized as a “new era of trust and transparency for customers and communities”.jenny_helen_expert

I’m going to do us all a favor and not re-visit the politicians’ pleas for trust. But Walmart’s desire to become “the most trusted retailer” makes me simultaneously wary and hopeful.

My wariness comes from the fact that we’ve heard plenty of companies talk about trust—especially as it relates to how much trust their customers have in them. And it’s no surprise why: trust is a key driver in customer loyalty and therefore repeat shopping trips and sales. So my cynical self keeps tip-toeing in and setting off the “empty sales pitch alert”, as in: if you have to say you’re trustworthy, you’re probably not.

But, having spent the last five years working side-by-side with Walmart to help them reach their 2015 sustainability goals, I’m hopeful. We all learned a lot in the process of using science to set goals, track progress and actually deliver measurable results… and I’m confident that Walmart can be even more successful this round.

Which is good: many of the 2025 goals—like making more packaging recyclable, reducing harmful ingredients in food and improving working conditions of their employees—matter, a lot. And achieving these goals should engender trust in Walmart: these issues touch consumers directly, and are quickly becoming part of mainstream thinking shared by other retailers and food companies (see the Wall Street Journal’s recent Global Food Forum).

But there's another dimension to the 2025 goals that gives me even greater hope.

What Walmart—and other companies—are starting to realize is that other, less tangible issues also matter. Real leadership means addressing all the major sustainability issues of our time—then helping their customers to come along with them.

Take climate change, for example: past shopper surveys asking mothers to rank areas of “concern” for their families have probably seen food safety scoring much higher on the list than the climate. But if the question were rephrased to ask “are the direct impacts of climate change (like more frequent severe weather) a concern for you and your family?”, I’m willing to bet the survey results would be a lot closer.

That’s why it’s so exciting to see Walmart’s other 2025 goals, where they will strive to achieve:

  • 50% renewable energy to power their operations
  • 18% absolute emissions reduction in their operations
  • Zero waste to landfill
  • Zero net deforestation in key commodities, such as palm oil and beef
  • 100% recyclable packaging in private brands
  • 1 Gigaton emissions reduction across their supply chain

While all of these goals are both laudable and ambitious, this last one—eliminating 1 Gigaton of greenhouse gas emissions—is an industry game-changer.  That’s the equivalent of removing 211 million cars from our roads… and is greater than the annual amount of GHGs emitted by the country of Germany.

And the even better news: Walmart’s not alone. Recent commitments by other companies like General Mills, Kellogg and Pepsi, shows that setting ambitious, science-based climate targets is now officially a trend. Achieving goals like these won’t be immediately seen, felt or touched by their customers—yet these companies are choosing to tackle them anyway.

That’s true leadership.

That’s saying to all of us, “we’ve got the power, scale and leverage to change the world, and we’re going to do it.”

That’s the way to engender real trust.

Walmart’s 2025 Sustainability Goals: My Three Takeaways

Amidst the noise in the run-up to the election, Walmart CEO Doug McMillon will map out the company’s sustainability goals for the year 2025 later today. As a keynote speaker at this year’s Net Impact Conference, he'll be delivering a fairly lengthy, aspiration list; here are a few highlights of what the world’s largest retailer has planned:ElizabethSturcken-(2)_287x377

  • 50% renewable Energy
  • 18% absolute emissions reduction Scopes 1+2
  • 1 Gigaton emissions reduction Scope 3
  • Zero waste to landfill by 2025
  • Zero net deforestation in key commodities
  • 100% recyclable packaging in private brands

As a director of the NGO that has worked closely* with Walmart on their sustainability journey over the last ten years, here are my initial, big takeaways:

Walmart can’t accomplish such ambitious goals alone. Which is good.

Getting to 50% renewables, reducing absolute emissions from their stores and trucks, and removing a gigaton of GHG emissions from their supply chain are exactly the kinds of leadership goals Walmart should be putting forth to help meet the challenge of climate change.

But, actually delivering on these goals will be no joke. Luckily, our 25 years of working with companies has consistently revealed two, important guideposts:

  • specific, ambitious goals are vital for driving innovation and progress;
  • achieving real, science-based results truly takes a village of collaborators.

To give just one example, three years ago Walmart set a policy to eliminate eight of the most prevalent and concerning chemicals in their home and personal care products. With no clear path forward, Walmart engaged thousands of suppliers, requiring them to submit full product formulations to a 3rd-party database, then replace those eight ingredients with safer substitutes.

The result? A 95% reduction in chemicals of concern, adding up to 23 million pounds.  This affects 90,000 products that are sold everywhere, not just on the shelves at Walmart. At the same time, this work also helped to set the stage for this year’s passage of The Lautenberg Chemical Safety Act, the first piece of environmental legislation in a generation aimed at fixing our broken system of regulating toxic chemicals.

By aiming big and bringing on strategic partners, Walmart was able to go further, faster than they’d ever dreamed. The same holds true now.

Corporate sustainability is officially a trend.

Walmart’s announcement is just the latest in a string of other companies—PepsiCo, Kellogg, General Mills—who have also put forth ambitious sustainability goals. What this tells us is that companies are proving, over and over again, that this is not about “doing the right thing,” it’s about doing what creates business value and environmental progress.

As if to prove this point, last month Doug McMillon talked publicly about how sustainability is a core part of their business strategy during an investor call. In this first-time-event-for-a-Walmart-CEO, he emphasized to Wall Street that one of the four ways that Walmart will win in the 21st century: lead on sustainability by being “the most trusted retailer” and call out progress on making products like shampoo and lotion safer, healthier and better for the planet**, increasing renewables and reducing waste.

Sustainability is finally being seen for what it is: a smart business strategy. In a world of decreasing resources and consumers that want better products, there’s no other path forward in the long term.  And, looking around at what’s happening, the long term is here!

The election is finally (almost) over. Now let’s get back to work.

This election has shown that people want change.  It’s been scary and unsettling but it’s a challenge we can’t shrink from. We have healing to do as a country, which can only begin if we engage with each other. Climate change and its effects are going to get worse before they get better.  Just look at this summer’s fires in California, the hurricane in Haiti, the floods in Louisiana and North Carolina…

I know there’s another path forward.

Having worked with companies over the last 25 years doing what many thought was impossible, I have hope.  These corporate leaders aren’t waiting for regulation to force them to act, but are choosing to consciously, aggressively become more sustainable. And, I’m inspired by companies doing the hard work to think beyond their corporate walls and take ownership for the impact of the products they make and sell in the world.

The scary truth is,  business won’t know exactly how to achieve the aspirational goals we need for our planet and for long-term business viability mean that.  That forces an openness to innovation and requires bringing suppliers and customers in as partners to achieve those goals.

So congratulations, Walmart, on setting aggressive yet achievable goals for 2025—and doing what the science tells us needs to get done for a stable and healthy planet. You have a proven track record of meeting and exceeding big sustainability goals. We expect the same here.

* EDF takes no money from our corporate partners—we are funded solely through grants, donations and membership.  We like to say we get paid in environmental results.

** I’d be remiss if I didn’t point out that while Walmart is committing to healthy products in their 2025 goals, we are disappointed to not see further goals on the path to becoming a “toxic free” store.

 

What was Left Off the Menu at the WSJ Global Food Forum?

Many of us spend a considerable amount of time thinking about food – whether it’s deciding what’s for dinner or how healthy something is for our family. Given that I work on food sustainability and am married to a chef, I spend an even more extreme amount of time thinking about food.

Last week, the Wall Street Journal hosted the first annual Global Food Forum in New York City – more proof that food and agricultural issues are increasingly on the radar screens of many jenny_helen_expertexecutives, including those from Walmart, Campbell’s Soup, Panera, Perdue, Monsanto, and many more.

I was eager to attend the event and hear the discussions among some of the most powerful food companies out there. They covered many topics including food safety, “clean” labels, biotechnology, antibiotic use and the humane treatment of animals.

All important stuff—but given the prestige of the event, I’d like to bring up the elephant in the room (or more accurately the elephant not in the room): sustainability. The environmental impacts of agriculture were barely touched upon, and considering the corporate heavyweights who were in the room, this was a missed opportunity on a massive scale.

Why? Because across the entire food production supply chain, sustainability and profitability go hand-in-hand. Consider just a few of the advantages offered by sustainable growing methods:

Increased efficiency and cost savings: Crops take up on average only 40 percent of the nutrients applied to them each growing season. The rest is susceptible to running off the field, and contributing to water and air pollution.

But optimizing fertilizer use—using just the right amount and avoiding over applying—can mean higher yields and lower input costs for farmers, while simultaneously reducing that pollution-causing runoff.

Improved supply chain resiliency: One of the biggest risks that businesses face in the coming decades is supply chain disruptions caused by climate change. Unpredictable weather events like flooding and drought can mean grain shortages or inventory losses.

A couple of years ago, thousands of jobs were lost when Cargill closed meat processing plants in Wisconsin and Texas because drought had reduced its cattle count. And, according to a UC Davis study, last year saw about 542,000 acres of California farmland being left fallow for lack of water. That's about 7 percent of the state's irrigated farmland—meaning thousands fewer farm laborers had work.

But sustainable growing methods can help mitigate these risks. By helping farmers become more resilient, businesses are also protecting themselves by ensuring a consistent, dependable supply of goods. This improved resiliency is something shareholders are increasingly aware of.

Improved customer trust: The ability to share where and how ingredients are grown helps meet consumer demand for transparency. Consumers are clearly becoming more educated, and to remain competitive businesses need to respond to this demand.

Given all this, what advice do I have for the organizers of next year’s WSJ event?

First off, include deforestation, which is responsible for nearly 15 percent of the world’s greenhouse gases. In many tropical nations, it is more economical to cut down forests for farmland than to protect them.

In addition to taking on a massive carbon footprint, companies sourcing food from deforested land are likely exposing themselves to legal and ethical risks. Solutions exist, such as sourcing from large-scale zones that operate under an umbrella of sustainable practices, but companies need to be educated and informed about their options.

Second, shine a spotlight on corporate sustainability leaders helping make farmers more resilient and profitable, such as:

  • The Midwest Row Crop Collaborative, a diverse coalition of food companies, retailers, and nonprofits working to expand on-the-ground solutions to protect air and water quality, enhance soil health, and maintain high yields throughout the Upper Mississippi River Basin.
  • Land O’Lakes’ SUSTAIN® platform, co-developed by EDF, which trains agricultural retailers in best practices for fertilizer efficiency and soil health. The ag retailers then bring this knowledge to the customers they serve. Kellogg Company, Campbell’s, and Smithfield Foods are all using SUSTAIN as a way to connect directly with growers in their sourcing regions.

Lastly, talk about food waste. Up to 40 percent of food in the U.S. ends up in a landfill – the equivalent of $165 billion each year. The only way to truly address the environmental issues of our food system while feeding a growing global population is to reduce food waste, which translates into improved bottom lines for farmers, food companies, and customers.

So, yes: I spend a lot of time thinking about sustainable food. But sustainability is clearly where the food industry is going.

The WSJ Global Food Forum should be thinking about it too.

A new era of collaboration for sustainable agriculture

Companies have the opportunity to use their voice to draw attention to issues that matter to their business and to their customers.  Today, a handful did just that – by announcing their commitment to sustainable agriculture.Cornfield

Over the past several months, I’ve spent countless hours representing Environmental Defense Fund in a room with Cargill, General Mills, Kellogg Company, Monsanto, PepsiCo, The Nature Conservancy, Walmart, and World Wildlife Fund. This group makes up the Midwest Row Crop Collaborative (MRCC) – a diverse coalition working to reduce the environmental impacts of commodity row crop production (i.e., corn, soy, wheat, etc.) throughout the Upper Mississippi River Basin.

This isn’t just good news for the planet. Implementing on-the-ground solutions that reduce fertilizer pollution and improve soil health can also result in higher yields for farmers, reduced risk of supply chain disruptions for food companies and retailers, reduced air and water pollution, and improved transparency for consumers.

Why companies care about fertilizer and soil health

Farmers and food companies need fertilizer to grow their ingredients, but fertilizer in excess of the amount crops need can lead to water and air pollution and wasted money for farmers, who spend approximately half of their input costs on fertilizer.

Each year, fertilizer runoff contributes to an aquatic dead zone in the Gulf of Mexico – an area the size of Connecticut that so devoid of oxygen, marine life cannot survive. And excess nitrogen fertilizer can lead to nitrates contaminating drinking water and water supplies – posing serious health risks to infants in particular.

Three pilot states

That’s why, along with a council of scientific and agronomic advisors, the MRCC will work with growers to help improve and implement conservation activities across three pilot states that are responsible for 44 percent of the corn, soy, and wheat production in the U.S.: Illinois, Iowa, and Nebraska.

By vastly increasing the number of row crop acres enrolled in sustainability measures in these three states, farmers and companies can help protect food security and drinking water supplies, while improving efficiencies in their business operations.

The power of collaboration

Farmer organizations, environmental groups, food companies, state and local watershed organizations, and many others share these common goals – and much work is already underway.

That’s why the MRCC isn’t reinventing any wheels. It’s shining a spotlight on an important environmental issue that is often overlooked, while helping support and scale the various technical and regional sustainability efforts already in place.

When leading companies collaborate around a common goal, both business and the planet will thrive.

Conclusion

This work is hard and will take time, but I’m more hopeful than ever that one day my daughter won’t grow up to read about toxic algae blooms or dead zones in the news and I’ll know I had a small part to play in that.

 

When NGOs and Business Work Together, They Can Change the World

Tom Murray, VP Corporate Partnerships, EDFFull disclosure:  I’ve been a big fan of Michael Porter and Mark Kramer since my days as a graduate business student.  Lots of hours on group projects working on five forces analysis, you get the idea.  So it was especially rewarding to read their recent Fortune article looking at the actions behind the Change the World list of leading companies who are doing well by doing good.

Porter’s and Kramer’s Creating Shared Value approach is “moving into the mainstream and growing exponentially. Companies that adopt shared-value thinking remain committed (as they should) to philanthropy and corporate social responsibility. But they’re moving beyond often-fuzzy notions like sustainability and corporate citizenship, and instead making measurable social impact central to how they compete.”

Sustainability as a fuzzy notion for business strategy?

I’m going to push back on that.

As the environmental NGO that spearheaded a first of its kind partnership with McDonalds over 25 years ago, Environmental Defense Fund (EDF) has partnered with hundreds of leading companies to address sustainability in specifically non-fuzzy ways. We do it by following the science and making sure that every EDF+Business project drives measurable environmental and business results. Read more

Walking the Walk: Companies Lead the Call for New Clean Truck Standards

A number of America’s most iconic brands helped pave the way for the new Clean Truck standards announced August 16th by the U.S. EPA and DOT. Nearly 400 companies, large and small, publicly urged strong, final fuel efficiency and greenhouse gas standards for heavy trucks.

Through their action, these companies have reaffirmed a basic truth of business today: to be a “leader”, companies must align their sustainability goals and strategies with their external engagement on policy.

Tom Murray, VP, Corporate Partnerships Program

Tom Murray, VP, Corporate Partnerships Program

While there are many differences as to how these 400 companies intersect with heavy trucks—manufacturers make the trucks, fleet owners drive the trucks, brands hire the trucks to move their goods to market—they are all unified by one resounding theme: cleaner trucks are better for their business, better for our health and better for the planet.

Indeed, common-sense efforts to cut climate pollution have gone mainstream in business. Earlier this year Microsoft, Google, Amazon, Apple and others raised the bar on corporate climate leadership by standing up for the clean power plan. Colgate-Palmolive, Hewlett Packard Enterprise, Nike, Starbucks and over 100 other companies built on this trend by urging “the swift implementation of the Clean Power Plan and other related low-carbon policies so that we may meet or exceed our promised national commitment and increase our future ambition.”

But this corporate support of the clean truck standards goes even further: it’s another step in the evolution of corporate climate leadership. This is beyond simply supporting good policy; a number of these companies are actively shaping it to deliver significant sustainability benefits. Among the companies that distinguished themselves in this effort are:

  • PepsiCo: the largest private fleet in the U.S. led the way in demonstrating the alignment between its sustainability objectives and its policy advocacy through an op-ed, and expert testimony.
  • Walmart, the 3rd largest private fleet in the U.S., was highly proactive and constructive in its engagement on the clean truck phase two program, supporting it with public statements, and expert commentary.
  • Cummins, FedEx, Eaton, Wabash National, Conway, and Waste Management joined PepsiCo in the Heavy Duty Leadership group that urged the EPA and DOT to: “Achieve Significant Environmental, Economic and Energy Security Benefits.”
  • Honeywell, Achates Power and a number of other innovators made clear that they were ready to meet the challenge of building more fuel efficient trucks.

There were hundreds more examples like these—each one of them a proactive leadership action that demonstrates the new frontier for corporate leadership.

Securing these protections was a real team effort.  The Pew Charitable Trusts organized a letter of support for strong standards signed by IKEA, Campbell’s Soup, and many others. Ceres brought forward a strong statement from General Mills, Patagonia and more. The Union of Concerned Scientists articulated how strong rules would benefit leading fleets, including UPS, Coca-Cola and Walmart. Together, these efforts marshalled an unprecedented level of corporate support for a critical piece of climate policy.

So, if your company is among the now hundreds of companies actively advocating for strong climate protection measures, thank you. We look forward to your continued leadership and engagement on other critical advances, including implementation of the Clean Power Plan and moving forward with reductions in methane emissions. We want to work with you to shape protective policies that also make business sense.

If, however, your company is still stuck at talking the talk, it’s time to start walking the walk when it comes to supporting common sense measures like the Clean Trucks program.

You’re falling behind the leadership pack in the one of the world’s most important races.

New Clean Trucks program: Business, Consumers and the Planet all Win

Across America, companies have reason today to celebrate an important step to drive cost and emissions out of their supply chain. The U.S. EPA and U.S. Department of Transportation unveiled new fuel efficiency and greenhouse gas standards for heavy trucks. Once fully implemented, the new standards will cut over a billion tons of climate pollution and save hundreds of millions of dollars by 2035.

Jason Mathers, Senior Manager, Supply Chain Logistics

Jason Mathers, Director, Supply Chain

Every business in America stands to benefit.

Why? Because every business in America relies, in some form, on trucking services. Product manufacturers need trucks to get goods to market. Service and knowledge companies depend on trucks to deliver equipment and supplies. Retailers utilize trucks in distribution.

Retailers and consumer brands are among the top winners of strong fuel efficiency standards, as these companies account for a lot of freight movement. Companies that have undertaken detailed carbon footprint analysis often find, as Ben & Jerry’s did, that freight transportation can account for upwards of 17% of their total impact.

The new fuel standard means continued progress in tackling this significant source of emissions. This progress will reveal itself in lower carbon footprints for every product brought to market. It will be apparent through lower freight and fuel surcharge fees – saving large consumer brands millions annually. Read more