Procter & Gamble, CVS, Colgate and Others Demonstrate “We” > “Me”

Mathers_Jason (1)When looking for ways to increase supply chain efficiencies, few strategies have the cost and emissions savings potential of collaborative distribution or shared shipping—where companies pool freight resources to reduce the amount of truck trips required to move supplies or products. As the Guardian noted in a recent article on Ocean Spray and Tropicana’s shared shipping collaboration, companies stand to annually save billions of dollars and cut over a hundred million tons of climate pollution by adopting this strategy.

A recent Logistics Management report–Getting From “Me” to “We”: Creating a Shared Infrastructure for Product Distribution–dug deeply into this topic too. It shared several examples of how leading companies are implementing this strategy. The example that stood out to me involved CVS, Kimberly-Clark and Colgate.

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Moving Beyond Commitments: Collaborating to End Deforestation

Deforestation can pose significant operational and reputational risks to companies, and we at EDF are seeing companies start to take action in their supply chains. Deforestation accounts for an estimated 12% of overall GHG emissions worldwide–as much global warming pollution to the atmosphere as all the cars and trucks in the world. In addition, deforestation wipes out biodiversity and ravages the livelihoods of people who live in and depend on the forest for survival.

Tropical deforestation in Mato Grosso do Sul, Pantanal, Brazil (Source: BMJ via Shutterstock)

Tropical deforestation in Mato Grosso do Sul, Pantanal, Brazil (Source: BMJ via Shutterstock)

Unfortunately, it’s a hugely complex issue to address. Agricultural commodities like beef, soy, palm oil, paper and pulp—ingredients used in a wide variety of consumer products—drive over 85% of global deforestation. Companies struggle to understand both their role in deforestation, and how to operationalize changes that will have substantive impacts.

When the drivers of deforestation are buried deep in the supply chain, innovative and collaborative solutions are required. In the past several years, we have seen many in this space make big commitments toward solving the problem, but gaining transparency into tracking against these commitments has been almost as difficult as gaining transparency into the supply chains themselves.  For many companies, the hope for making good on their promises may come in the form of powerful partnerships.

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An Antidote to Plastic Addiction

Credit: Plastic Disclosure Project

Credit: Plastic Disclosure Project

Take a moment to think about the things you use and throw away every day that are made from plastic: an empty shampoo bottle, the container from your salad at lunch (and the little container for the dressing), that pen that won’t work. And what about those things you’re holding on to in the depths of your closet, inevitably destined for the dumpster? That overused pair of sneakers, your old broken flip phone, a keyboard that hasn’t been used in a decade?

Plastic has transformed the way we live and enabled innovation in countless sectors, but simultaneously has contributed to one of the largest waste problems facing the planet. The challenge right now is that it’s no one’s responsibility to track plastic. The material just gets passed from production, to building products, to consumers, and ultimately to waste facilities or worse, into ecosystems like the ocean.

The United Nations Environmental Programme (UNEP) has developed one initiative to tackling this enormous problem, called the Plastic Disclosure Project. The project’s goal is to encourage companies to track the amount and types of plastic used in their operations and supply chain in order to optimize and reduce the related environmental impact.

Why should companies take the responsibility of tracking their plastics? To answer this question, UNEP published a report in partnership with Trucost, which quantifies the full cost associated with plastic used in the consumer goods industry. That amount is more than $75 billion per year. Yes that’s billion with a "b," and per year.

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The Benefits of Stringent Trucking Standards

by Kate Rack, marketing & communications intern

The Obama Administration is developing new fuel economy standards for trucks, and last week, Ceres and Environmental Defense Fund hosted a webinar outlining how implementing strong federal standards for medium- and heavy-duty trucks would be truly a win-win situation.

Our organizations, along with other leaders, are calling for strong standards that cut fuel consumption by 40%. A recent analysis of such standards shows that they would reduce both greenhouse gas emission levels and expenses to ship goods via freight.

EDF helps freight logistics professionals on the journey to greener freight

Why make truck efficiency a priority?

Currently in the U.S., the trucking sector is the fastest growing single source of greenhouse gas emissions. U.S. businesses spend $650 billion a year on freight trucking services, which equates to over half a billion tons of GHG emissions. It is essential that as fuel efficiency standards for cars becomes more stringent, trucks follow suit, especially since 70% of tonnage shipped within the U.S is by truck. In particular, retail and consumer products are the largest consumers of trucking in the United States. Chances are, the computer screen that you are using right now to read this blog post was brought to you on a truck!

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Join EDF and Ceres Experts for “Truck Talk”

As July 4th fades away, grills cool down and the remains of fireworks are swept away, it’s time to roll up our sleeves and get back to work. In my case, I’m preparing for a webinar Ceres’ Carol Lee Rawn and I are holding this Wednesday, sharing the findings of our recent report on how strong medium- and heavy-duty truck standards would cut freight costs and emissions.

It’s a topic we’re both passionate about – and think you should be too —  and with good reason: U.S. businesses spend $650 billion a year on freight trucking services, which account for over half a billion tons of greenhouse gas (GHG) emissions a year, the fastest growing single source of GHG emissions. Fuel is the single largest cost of owning and operating a heavy-truck, accounting for 39% of total costs.

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Our report finds that new, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile, an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.

The Obama Administration is in the process of developing new fuel economy and GHG standards for medium- and heavy-duty trucks, and its determination will affect both your company’s freight costs and GHG emissions.  Join us on July 9th for this webinar, where we’ll walk through the savings associated with strong standards and how you can help ensure that stringent standards are adopted.

Register now for the webinar!

Feeding the Planet—Without Ruining It

Nestle. Unilever. Walmart. Kellogg’s. Colgate-Palmolive. What do these companies have in common? They’re just a few of the global companies that have committed publicly over the last few years to work towards ridding their supply chains of raw agricultural commodities that directly cause deforestation.

Deforestation in Brazil

Global deforestation is responsible for roughly 12 percent of world-wide greenhouse gas (GHG) emissions (IPCC)—more than double those generated by the entire U.S. electricity sector (EIA). In addition, deforestation is the greatest driver of biodiversity loss in the world, displaces indigenous populations and can drive major regional changes in weather patterns. Agricultural production drives 85 percent of global deforestation (Union of Concerned Scientists).

You may be thinking, “Why should that concern my company? We aren’t in a sector tied to agriculture or buy, sell or use commodities from countries engaged in deforestation.” That may be true if you only consider your company’s direct operations. If your company, however, produces or sells personal care or food products, or uses paper packaging, chances are high that deforestation causing commodities like soy, palm oil, timber, cattle, or derivative products of them are part of your supply chain.

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Save Your Company Costs: Support Stronger Truck Efficiency Standards!

New, bold fuel-efficiency and greenhouse gas standards for heavy-duty trucks could end up reducing the cost of moving freight by 7% and owners of tractor-trailer units could save $0.21/mile. These are among the key findings of a new report from EDF and Ceres.

The report, which is based on analysis by MJ Bradley and Associates, examines one potential technology pathway to achieve the stringency target of 40% over 2010 set forth by our groups and other advocates.

PrintFuel is the single largest cost of owning and operating a heavy-truck, accounts for 39% of total costs. Strong fuel efficiency standards will target these costs largely by requiring the use of cost-effective, fuel saving technologies. As the new analysis demonstrates, fuel savings will be significantly greater than increases in equipment costs.

A $0.21 per mile savings, for example, has an annual savings potential in excess of $25 billion given that class 8 trucks in the US logged 120 billion miles in 2013.

Our finding of significant financial benefits of strong fuel efficiency and GHG standards is consistent in magnitude with previous analysis. A recent report by the Consumer Federation of America looked at similar Phase 2 standards and found net savings of $250 to consumers, rising to $400 per household in 2035 as fuel prices and transportation services increase.

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6 MPG? We Can Do Much Better

Here’s something to think about next time you are stuck in traffic next to an 18-wheeler.

The average tractor-trailer can travel only six miles per gallon of diesel.

These heavy trucks travel a lot too; averaging more than 120,000 miles a year or 20 round trip drives between Boston and San Francisco.

Freight trucks are on the road for one primary purpose: to get goods to all of us. In fact 70% of U.S. freight tonnage is moved by tractor-trailer trucks. Over the coming years, demand for freight services is expected to grow even more. And this is driving up fuel consumption and greenhouse gas emissions.

Strong, new fuel efficiency and greenhouse gas standards for our nation’s heavy trucks are achievable, cost-effective and critical to cutting greenhouse emissions and fuel consumption – all while we continue to depend on trucks to deliver the goods we need and want.

It is possible and affordable for tractor trailer trucks to get nearly 11mpg by 2025.

EDF is calling on the Obama Administration to set new fuel efficiency and greenhouse gas standards for heavy trucks that cut fuel consumption by 40% compared to 2010 levels.

These standards would also apply for heavy-duty work trucks, such as box delivery trucks, bucket trucks, beverage delivery trucks and refuse trucks.

The infographic below highlights some of the technology available to meet bold standards as well as the significant cost, oil and emissions savings from such standards.

One fact that just jumps out at me is this: These standards will cut our oil consumption by 1.4 million barrels a day.

That sounds like a big number and it is. It’s a bit higher than the amount of oil we import daily from Saudi Arabia.

Bold fuel efficiency standards are good for our economy, environment and energy security.

They will also be good for trucking fleets too. These trucks will cost $30,000 less to fuel a year.

Strong fuel efficiency and greenhouse gas standards for heavy trucks are an important part of the President’s Climate Action Plan. EDF will continue to work towards strong standards through our unique combination of industry engagement, regulatory design expertise and technical know-how.

Fertilizer and Feeding the Planet’s Growing Population

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Last week, Walmart hosted its first Sustainable Product Expo, an event that brought together CEOs and sustainability leaders from some of the retail chain’s biggest supplier companies. Leaders from General Mills, Cargill, Dairy Farmers of America and PepsiCo, among others, joined Walmart on stage to celebrate the progress they’ve made in increasing the sustainability of their operations, and to make new commitments to cut greenhouse gas emissions and other environmental impacts.

Walmart set the stage for this in 2010 by announcing their goal to reduce 20 million metric tons (MMT) of greenhouse gas (GHG) emissions from their supply chain by 2015. As of 2013, Walmart and their supply chain have eliminated 7.5 MMT of GHG emissions and have projects underway to reach 18 MMT by 2015. The key to meeting and exceeding this goal is swift and thorough follow-through on ambitious initiatives.

That’s why EDF is working closely with Walmart to help their suppliers optimize fertilizer use in their supply chain. Emissions that result from nitrogen fertilizer loss – a greenhouse gas called nitrous oxide – is 300 times more potent in damaging our climate than CO2. Walmart’s Director of Dry Grocery Tim Robinson mentioned at the Expo that 20 to 40 percent of the nitrogen fertilizer isn’t absorbed by crops, either running off into waterways or off-gassing into the atmosphere. Consequently, as the top grocer in the country, this makes fertilizer optimization one of Walmart’s major opportunities for GHG reductions in their supply chain.

Just as importantly, the UN estimates that to feed the world’s growing population, food supplies will need to increase 70% by 2050. The entire value chain needs to produce more food with fewer inputs, while still allowing farmers to earn a living with what they grow. Walmart’s suppliers’ commitments are a first step towards this future:

Cargill

“By 2020 we will double our NextField acres bringing us to over 1 million acres of total land being optimized for maximum productivity with minimum environmental impact.”

DFA

“…we will have more than 90 percent of our 9,000 member farms participating in our Gold Standard Dairy program, which focuses on resource efficiency and optimization” and are “[a]igned with industry goals to reduce environmental footprint 25% by 2020."

Kellogg Company

“In every country in which Kellogg sources rice globally, we commit to promoting and supporting initiatives with producers that will, by 2020, lead to a 25% increase in the adoption of Climate Smart Agriculture (CSA) practices.  This will improve smallholder livelihoods, enhance producer resilience and reduce greenhouse gas emissions."

Pepsi

“…we will work to engage growers of corn, oats, potato, and oranges to increase sustainable farming practices, particularly in the areas of environmental, social and economic sustainability.  As part of this worldwide program, PepsiCo's Sustainable Farming Initiative (or equivalent scheme) will be expanded to 500,000 acres of farmland in North America by the end of 2016."

Campbell Soup Company

“We commit to reducing GHG emissions and water use by 20% per tonne of food for Campbell's 5 key agricultural ingredients (Tomatoes, Carrots, Celery, Potatoes, Jalapenos)."

General Mills

“We will: 1) Expand 2.5x the acreage enrolled in The Field to Market sustainable agriculture initiative to 2.5 million acres by 2015; 2) Leverage General Mills' strength in connected innovation to match grower nitrogen management needs with the best global solutions; and 3) Co-sponsor an innovation challenge for the innovators and farmers who demonstrate the most promise to reduce GHG emission in nitrogen management.”

With their commitments, Walmart’s suppliers are setting new targets to strive for, and we at EDF are seeking to provide farmers with the tools they’ll need to meet them. With effective fertilizer management, we can help scale up crops to meet food needs around the world while minimizing their impacts on our climate and water resources.

EDF Honored to Receive EPA SmartWay Affiliate Challenge Award

EDF has been a long-time supporter of the U.S. Environmental Protection Agency’s (EPA’s) SmartWay Program and we are proud to announce that tomorrow EPA will honor EDF with an Affiliate Challenge Award. This award not only recognizes our commitment to the program, but also our significant efforts to promote, advance, and strengthen SmartWay. The voluntary program is a public-private initiative that promotes freight sustainability through efficiency and fuel reductions. The program first began with a focus on reducing fuel consumption from long-haul trucks, and in 2011 was expanded to increase sustainability from the trucking sector operating around marine ports.

Over the course of its 10-year history, SmartWay Partners have saved 120.7 million barrels of oil. This is equivalent to taking over 10 million cars off the road for an entire year and has helped to protect the health and well-being of locals residing close to transportation hubs. Additionally, the SmartWay Program has reduced 51.6 million metric tons of carbon dioxide so far, which contributes to our nation’s economic and energy security. EDF is excited about these achievements and proud to support these clean air efforts.