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!

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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Now trending in global business: collective action on deforestation

edf-business-of-food-blog-graphic_shelton-grp_12-7-16With U.S. policy engagement on climate action in limbo, the rest of the world is marching forward. As major CEOs and political leaders gathered at the recent World Economic Forum (WEF) in Davos, Switzerland, clear support was shown for creative investment in clean energy, sustainable development and other climate change mitigation practices.

While many ideas were discussed, however, one topic emerged as both a driver of climate impact and an opportunity area for huge climate benefits: deforestation.

Two major initiatives around deforestation were launched at the WEF:

A fund to catalyze private investment in deforestation-free agriculture was announced by the Norwegian government, the Sustainable Trade Initiative (IDH), UN Environment, the Global Environmental Facility, and many other supporters. Their goal? To help fund sustainable intensification of agriculture in jurisdictions which are effectively working toward reducing deforestation. The fund will be operational by middle of 2017 and aims to protect over 5 million hectares of forest and peatlands through its projects by 2020. 

Norway pledged up to $100 million, with a capitalization goal of $400 million from other donors and private sector partners. The model aims to engage even more private sector financing, for a total investment of $1.6 billion by 2020. The Tropical Forest Alliance 2020 and major food giants like Carrefour, Marks & Spencer, Mars, Nestle and others are expressing support. Unilever is the first corporate leader to commit funding, with a pledge of $25 million over the next 5 years.

A plan to use big data to monitor and trace the raw materials in major corporations’ supply chains. Led by the World Resources Institute, the initiative has major support from food companies such as Bunge, Cargill, Walmart, and others, with a total combined value of $2.9 trillion.

The goal is to build a decision-support system to help companies track progress and real-time challenges associated with their deforestation commitments. The tool will enable corporations to make real-time decisions about geographies to prioritize in their deforestation reduction work, and get alerts when illegal activities are happening in those regions. While the tool is still in very early stages, the future could be bright.

Deforestation-free sourcing? There’s an app for that!

Deforestation_in_Panama

Two initiatives… powerful trends

So: what do these two initiatives—one helping to ensure that farming already-cleared land becomes more productive, and one helping companies shed light on the complex, murky labyrinth of their global supply chains—tell us about emerging trends in global climate leadership?

  1. Forests matter: Stakeholders understand the importance of forests for climate and supply chain stability. The impressive list of participants and lofty goals show that forests have become part of the main stage for how to address climate change globally. Deforestation contributes about 15% of greenhouse gas emissions annually, but can also be a major carbon sink if managed appropriately. Corporations understand that forests are vital for reducing reputational risk in product lines, ensuring stable weather patterns that can produce viable crops into the future, and increasing the resiliency of major geographic regions against drought and flooding. These new commitments indicate that action on forests as part of the climate dialogue are here to stay.
  1. Collective action is the right tool: Companies see the value in working collectively on effective solutions for deforestation reduction. Corporations know that there is significant risk in not engaging effectively on forests, both for the climate and for their supply chains. But the more challenging question to date has been: how? Over 350 companies have made public commitments to reduce deforestation related to major agricultural commodities in their supply chains. However, only one-third of these companies report on how they will reach these goals. These two new initiatives show the value of collective action between companies, non-profits,
    Katie Anderson, Project Manager, EDF+Business

    Katie Anderson, Project Manager, EDF+Business

    and governments to engage effectively in the multi-faceted challenge of deforestation-free sourcing. The days of working in silos, simply along supply chain boundaries, are no longer the most effective strategies. Working together provides new, creative solutions that can have an impact across entire regions rather than solely withinthe boundaries of sourcing relationships.

  1. There is still much to be done. While these initiatives are important signals of major trends within the deforestation space, they are still only in their infancy. Time will tell if the stakeholders engaged will be able to actualize the ambitious goals and creative thinking embedded in these ideas.

But, I’m optimistic. What emerged out of Davos tells me that the collective work of these major corporations can get us to where we need to go: productive, economically viable agricultural supply chains without destroying critical forest habitat upon which we all rely.

Will the U.S. join this trend toward collective action? The jury is still out on that one.

 

 

Food waste, guilt and the millennial mom: how companies can help

edf-business-of-food-blog-graphic_shelton-grp_12-7-16I spend a lot of time these days thinking about food waste.

Why? First, I’m the mother of a toddler who oscillates between being a bottomless pit, easily cleaning her plate, to being a picky eater who only takes a couple of bites before the bulk of her meal ends up in the trash.

Second, I’m married to a chef who, because he’s a smart businessman, runs his kitchen with the precision of a comptroller: wasted food means lost profit, so every scrap of food is utilized wherever possible.

Finally, I interface almost daily with Walmart, the world’s largest grocer. Walmart recently pledged to root out 1 gigaton of greenhouse gas reductions from its global supply chain, and I’m certain that food waste will play an integral part in reaching that goal.

But before you conclude that I’m an outlier—some sort of obsessive, “food waste weirdo”— a recent study shows that I’m not the only one struggling with this issue:

Now we all know that just because one feels guilty about something doesn’t mean one’s behavior will change.  Cost, however, is a frequent driver of behavior, so consider these numbers:

In other words, 2.5-4% of the 2015 US median household income is being thrown away! That’s bad news for our wallets—and our planet (NRDC estimates that food rotting in landfills accounts for 16% of U.S. methane emissions).

So it’s a no-brainer that wasting food serves no one’s interests.  What’s not so clear is: what can be done about it?

A business opportunity… with a coveted consumer

This is where I see a real opportunity for grocers—like Walmart—and the food companies that fill their shelves. For the most part, these companies are talking non-stop these days about how to win over the most coveted customer of all, the “millennial mom”.

Inviting millennial moms to be partners on eliminating food waste could be the perfect strategy. They jenny_helen_expertare young (meaning they have years of brand loyalty ahead of them), cost-conscious and environmentally engaged; saving them money while alleviating their food waste guilt is a clear win-win.

I’m not saying this will be easy; that same study reveals that real barriers exist:

However, while conceding that it’s difficult (if not downright un-wise) to portray millennial moms as a monolithic group, marketing profiles of these women consistently portray them as, a.) hungry for information about products; and b.) willing to take action on issues… but only if roadblocks or impediments have been removed.

So, grocers and food companies, how can you burnish your brand with millennial moms while making a real dent in food waste?

Step number 1: engage and educate

Run marketing campaigns, both in-store and out, that will inform these coveted customers on:

  • Proper handling and storage of their food to minimize spoilage; and
  • How to fully utilize their food purchases. In other words, teach them to think like my husband, the chef, so they can make use of scraps and leftovers.

Step number 2: make it easy

Design and implement initiatives that make for fun, easy adoption:

  • Clarify date labeling so that perfectly good food isn’t perceived as bad. The USDA just requested that companies switch to “best if used by” language to give consumers more accurate guidance.
  • Suggest meals that enable moms to buy just what they need—and use it up. There’s a real business opportunity here: did you know that, as of 4 pm each day, 80% of mom’s don’t know what’s for dinner that night? Suggesting recipes that will be totally consumed will make her life easier!
  • Inspire composting (and discount composters)… their garden will thrive because of you! Or help make curbside composting possible like in Boulder, Seattle and San Francisco.
  • Be creative… people love to compete! Only 13.5% think that their household wastes more than their average neighbor. Help people understand that they may in fact be wasting way more food and money than their friends, family, and neighbors to motivate them to do something about it.

In the meantime, I will carry on, hopeful that while my daughter learns to clean her plate, an array of giant food companies and grocers will take up the mantle of tackling food waste on a massive scale.

Smithfield Foods Joins the Growing List of Sustainability Leaders. Who's Next?

The largest pork company in the world, Smithfield Foods, just committed to reduce absolute greenhouse gas emissions by 25% by 2025 across its upstream U.S. supply chain, from feed grain to packaged bacon. This goal is the first of its kind in the livestock sector; and is thus big news.

It is also a long time in the making. Over the past 20 years, EDF and Smithfield have not always seen eye to eye.Tom Murray, VP Corporate Partnerships, EDF Although we have opposed Smithfield on some critical issues, we have collaborated  on others. Most recently, EDF and Smithfield worked together to help farmers who grow grain for hog feed use fertilizer efficiently and improve soil health. The business and environmental benefits that Smithfield discovered through that effort led the company to want to do more, resulting in today’s industry-leading commitment.

As part of the commitment, one area where Smithfield will work to reduce its greenhouse gas footprint—and one that EDF applauds—is in manure management.

In the past, EDF has pressed Smithfield to improve its manure management, particularly the use of uncovered hog manure lagoons. Now, within the first five years of its commitment, Smithfield will install manure management practices, including covered lagoons, on at least 30 percent of company-owned farms. These changes will eliminate harmful methane emissions and reduce ammonia nitrogen, which contributes to human respiratory illness and impairs water quality. Furthermore, Smithfield will work with its contract growers to expand the use of those practices over the full term of its commitment.

It’s inspiring to see Smithfield’s overall climate commitment and willingness to change its position on an issue like manure management. It shows how NGO/corporate collaborations can work over the long term.

With its climate commitment, Smithfield has set the bar for other livestock companies. We encourage others to follow Smithfield’s lead and set their own public targets based in strong science to reduce the climate and environmental impacts of animal agriculture and food production.

Sustainability in food supply chains: a challenge worth tackling

The climate crisis can’t be solved without addressing emissions from livestock and agriculture:

Food and agriculture companies, however, face major barriers in setting and achieving supply chain sustainability commitments. As a general rule, the majority of their environmental impacts come from the many disparate farms that grow the grains, produce, and animals that end up in our food. For companies that often do not even know the locations of those farms, it is a major challenge to influence those farmers to become more sustainable.

At the same time, food and agriculture companies see that consumers are demanding increased transparency and responsibility for all of their impacts, particularly those on human health, the environment, and animal welfare. The challenge is to figure out how to make needed improvements without substantial price increases at the grocery checkout.

The business case for sustainability – and collaboration

Companies like Smithfield are watching consumer trends and placing a bet that sustainability will be good for their bottom line. They can’t reap these benefits, though, unless they focus on providing value to the farmers in their supply chains. This value can come in many forms – some companies are offering premiums for sustainably grown grain, while others are helping farmers access programs and technologies that reduce the costs of farming.

As a vertically integrated company that owns grain elevators, feed mills, hog farms, and pork processing plants, Smithfield has a unique view into its own supply chain. But many don’t know that Smithfield purchases half of its hogs on the open market, which means the company only has clear visibility through half of its supply chain for pork. In setting a goal for its entire upstream supply chain, Smithfield is committing to work with others in the agriculture industry to assist a broad range of hog and grain farmers adopt more sustainable practices.

Smithfield’s collaboration with EDF demonstrated that the company could improve sustainability in feed grain production, the most remote link of its supply chain, in a way that benefits its business.

This success created the opening to go further, developing Smithfield’s new greenhouse gas target and putting the company in a leadership position in its industry. While Smithfield is the first livestock company to set a major greenhouse gas reduction goal, a sustainable food supply depends on it not being the last.

Who’s next?

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.

 

Open Road Ahead for Clean Trucks

Our nation is making great progress in reducing the environmental impact of trucking.

This is tremendous news, of course, as trucking – the main method of transporting the goods and services we desire – is critical to the fabric of our society.

Jason Mathers, Senior Manager, Supply Chain Logistics

Jason Mathers, Senior Manager, Supply Chain Logistics

Consider these facts:

We’re making major progress because of a team effort from truck and equipment manufacturers, fleets, policymakers, and clean air and human health advocates. With protective, long-term emission standards in place, manufacturers are investing in developing cleaner solutions and bringing them to market. Truck fleets are embracing new trucks because of lower operating costs and improved performance.

(For a more detailed picture of the widespread support for cleaner trucks, see EDF’s list of quotes supporting recent national Clean Truck standards.)

We must continue this team effort to make further necessary improvements in the years ahead.

Despite our recent progress, diesel trucks continue to be a leading source of NOx emissions, which is why a number of leading air quality agencies across the nation, health and medical organizations, and more than  30 members of Congress are calling for more protective NOx emission standards.

Trucks are also a large and growing source of greenhouse gas emissions. Thankfully, the new fuel efficiency and greenhouse gas standards mentioned above – which were released this past August and just published in the Federal Register today – will cut more than a billion tons of emissions.

Trucking fleets are embracing cleaner trucks. UPS, for example, is expanding its fleet of hybrid delivery trucks. PepsiCo, Walmart, Kane and others have applauded strong fuel standards for trucks.

Manufacturers are developing solutions to further improve the environmental footprint of trucking. In the past few weeks alone:

  • Cummins unveiled a 2017 engine that cuts NOx emissions 90 percent from the current emission standard.
  • Volvo Trucks North American showcased its entry to the DOE SuperTruck program, which is  a concept truck capable of surpassing 2010 efficiency levels by 70 percent and exceeding 12 miles per gallon.
  • Navistar also revealed its SuperTruck, the CatalIST, which hit a remarkable 13 mpg.

The progress we’ve made to date does more than just improve conditions within the U.S. Our strong standards push U.S. manufacturers to develop solutions that will resonate with international markets. For example, the European Union, Brazil, India, Mexico, and South Korea all are exploring new fuel efficiency and greenhouse standards for big trucks. U.S. manufacturers will be well positioned to compete in markets that put a premium on fuel efficiency.

In the coming years, we will need to continue to advance protective emission standards to protect the health of our communities and safeguard our climate. When the time comes, we will be building upon an impressive record of progress and cooperation.

Working smarter, not harder: goals help companies get strategic about climate change

lizIt’s no secret that companies use goals to push their businesses in a positive direction. Whether it’s about creating more value or reducing impacts, goals provide focus, direction and a sense of urgency. Recently, a wave of corporate, climate-related goals, such as renewable energy and emissions-reduction targets, have grabbed the public’s attention. Companies, cities and other large institutions are stepping up and committing to reduce their environmental impact. But behind the scenes, are these goals actually leading to corporate action? And if so, what kind?

As program director of EDF Climate Corps, every summer I get a glimpse inside the operations of 100 large organizations that are working to manage energy and carbon in progressively responsible ways. This past summer, 125 EDF Climate Corps fellows – talented graduate students armed with training and expert support – worked to advance clean energy projects in large organizations across the U.S. and in China. Their project work reveals that organizations are more strategic, focused and results-oriented than ever. More than 70 percent of EDF Climate Corps host organizations have energy or emissions-reductions goals, and to meet these targets, our class of 2016 fellows was strategically deployed to help achieve them. In fact, the majority (two-thirds) of our entire cohort of fellows worked on strategic plans and analyses that will help turn these goals into action. So what did we see this summer?

  1. Ambitious goals are driving big impacts at the building level

A great example of goals driving smart and strategic action in buildings is our recent work in New York City. Over the summer, more than 25 fellows worked within companies, city agencies and even a local utility to design strategic plans to help meet Mayor de Blasio’s ambitious 80 x 50 goal that pledges to reduce city greenhouse gas emissions 80% by 2050.  Rather than approach this one boiler room at a time, our fellows worked on ambitious, portfolio-wide equipment replacement and onsite renewable energy plans, with the potential to impact thousands of buildings at once. It’s great to see a municipal goal drive strategy from both the public and the private sector. The mayor’s goals are clearly spurring action and large-scale strategy is the way to drive rapid improvements that would take much longer through an incremental approach.

  1. Public goals allow leaders to shine, but also inspire others to follow

Many corporations maintain internal sustainability goals but shy away from publicizing them for a multitude of reasons – from fears of greenwashing to competitive advantage. But we’ve recently observed that this trend is changing, with more and more of our host companies realizing that smart, data-driven analysis can help them set public commitments with confidence. For example, EDF Climate Corps host Amalgamated Bank wanted to incorporate climate change mitigation in its mission, but first needed to dig deeper into its data to create smart goals and a strategy to achieve them. With the help of their EDF Climate Corps fellow, who conducted the first greenhouse gas emissions inventory and an assessment of its carbon footprint, Amalgamated Bank got the information it needed to set ambitious goals, culminating in a September announcement to become the second largest net-zero energy bank.

  1. Supply chains are beginning to benefit from corporate goals

While many corporations have articulated impressive goals related to their corporate operations, setting targets in supply chains is an even more ambitious endeavor. Corporate supply chains are the source of significant carbon emissions and are notoriously hard to manage. Longtime EDF Climate Corps host Verizon – a corporation with a history of setting and achieving sustainability goals –knew that by working strategically it could tackle this daunting challenge. This past summer, Verizon asked its EDF Climate Corps fellow to help the company cross the finish line on its 2017 supplier target. By creating a holistic strategy that used a combination of risk-identification and supplier engagement, Verizon is now on track to accomplish its 2017 supplier goal and formally launch its next target to help manage supply chain carbon emissions.

The EDF Climate Corps community is a living laboratory. Through our fellowships and engagement with large energy users, we see companies and cities trying new things, and working smarter, not harder, to achieve ambitious goals. We’ve mirrored this journey as well, moving from a “one boiler room at a time” mentality to broader, more strategic engagement with companies to help drive progress. Through a focus on smart energy strategy, driven by goals, we know that companies can generate a virtuous cycle of positive returns for their organizations.

PepsiCo Joins Growing Ranks of Green Supply Chain Leaders

PepsiCo, one of the world’s largest food and beverage companies, this week announced new sustainability goals. The goal that caught my attention is:

“we intend to reduce absolute greenhouse gas emissions across our value chain by at least 20%

In setting this impressive goal, PepsiCo join Kellogg’s and General Mills in setting big, comprehensive greenhouse gas emission reduction goals for their supply chain.

So, this leadership action is officially a trend.

Jason Mathers, Senior Manager, Supply Chain Logistics

Jason Mathers, Senior Manager, Supply Chain Logisticsgreenhouse gas emission reduction goals for their supply chain. So, this leadership action is officially a trend.

It's also a really big deal.

Companies are increasingly focused on cleaning up supply chains because of Sutton’s Law as applied to corporate sustainability: that is where the impact is. Over 90% of natural capital impacts associated with food and beverage companies occur in supply chains. The statistics are similar for the retail and consumer goods industries too. This is far from an academic point.

Supply chain executives are increasingly attuned to the fact that driving sustainability improvements needs to be a focus in the years ahead. In a recent survey from SCM World, 77% of food and beverage supply chain professionals recognized that “their supply chain plays a substantial role in securing the future of the planet.”

PepsiCo and other leaders are moving from the realization that there is a challenge to taking meaningful action. The new and important aspect of their approach is that they are aiming to improve their entire value chain. In doing so they are stating the obvious: it is no longer sufficient to make improvements in a few areas only. They need to tackle the system.

Now certainly some will look askance at these goals and warn of “boiling the ocean”; nothing could be further from the truth. The fact is that these goals are necessary and achievable.

They are necessary because they establish a long-term corporate commitment to continuous improvement on supply chain sustainability. As the goals are performance based, supply chain managers will be able to objectively track their progress and do what they do best – reduce risks, increase efficiency, and cut costs. They will be freed from chasing big shiny objects in the name of sustainability. Instead, they will be empowered to drive improvements with the best return.

These goals are achievable because they deploy a Science-Strategic-Systems approach – a proven framework for corporate sustainability success:

  • Science: These initiatives are built on a solid foundation of science that puts corporate sustainability goals in context of the overall challenge at hand. As a result of this, these corporate commitments are consistent with the scope and pace of greenhouse gas emissions targets necessary for climate stability. Framing the goals in terms of what our best science dictates ensures that the companies will be using the best metrics to assess progress.
  • Strategy: Supply chain greenhouse gas reduction goals are strategic for food and beverage, consumer brands, retailers and others because it directly targets the largest areas of impact. By placing the focus on these areas, companies are able to put durable solutions in place that expand revenue and drive business growth. They strengthen relationships with key suppliers and develop a fuller understanding of market risk.
  • Systems: The audacity in the scope of these goals is a power in itself. Far from the small-minded outlook that warns of boiling oceans, big goals such as these require companies to drive improvements to entire systems. The manifest challenge of tackling systems forces these companies to recognize they must collaborate with others – beyond the four walls of their company— to achieve their goals. With partners, they can drive deep changes in how products are made, designed, packaged and distributed; and collaborate with policymakers to align market incentives with sustainable business practices.

PepsiCo deserves our praise for setting its new goals. But, more importantly, it needs our help in achieving them.

Not just the help of EDF and other advocates, of course, but the help of its suppliers, retail customers and competitors too. We all have a role in driving down supply chain emissions.For EDF, we’re helping by partnering with PepsiCo and others to develop best practices to drive supply chain improvements, including reducing the environmental impacts of commodity row crop production, strengthening zero deforestation zones, and greening product distribution.

We are also calling on other companies to join PepsiCo, General Mills and Kellogg’s by setting transformational supply chain sustainability goals too. It is what the future of corporate sustainability looks like.

What’s your company going to do?