We’re thankful for…companies setting climate goals!

Target has joined other retailers on the right path to developing a robust science-based policy for tackling greenhouse gas emissions in its operations and supply chain, creating more momentum toward action on climate by leading companies.

At COP23 in Bonn, Germany, we heard leaders at some of the world’s largest companies share their commitments to step forward on climate issues. This year we’ve also seen American companies like Mars Inc., Walmart, Hewlett Packard Enterprise and Amazon set ambitious goals during a time when our government is stepping back. At EDF+Business, we see time and time again why our world needs healthy environments and healthy businesses in order to truly prosper.

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Three Ways to Step Up Corporate Sustainability Leadership

Tom Murray, VP Corporate Partnerships, EDFAt COP21, the governments of almost 200 nations spoke with one voice to fight climate change. Global corporations played a critical role in making this breakthrough moment possible. Now it’s more important than ever that US business leaders continue to lead, sending a powerful message to the world about our commitment to a thriving, clean energy future.

So what can forward-thinking companies do to show leadership on climate and position their firms to succeed in the low-carbon future? Here are three ways that corporate leaders can step up their sustainability efforts in 2016:

1. Set public, science-based emission reduction goals that extend beyond your operations and into your supply chains

business leverageCompanies around the world are increasing their climate leadership and ambition. Announcing big numbers is no longer enough. Greenhouse gas (GHG) targets must be based on what science tells us is required to limit warming and stabilize the climate.

One major corporation that has actively engaged its supply chain is Walmart. Working closely with Environmental Defense Fund (EDF), the world’s largest retailer exceeded its 5-year goal and reduced 28 million metric tons of GHG from its global supply chain and product life cycles. EDF was on the ground, providing the science and uncovering the GHG hotspots in Walmart’s supply chain. By sending the right demand signals, Walmart was able to engage its vast network of suppliers to unlock innovation and drive emission reductions, proving that big goals drive big innovation.

In addition, Kellogg has announced it plans to cut GHG emissions by 65% across its own operations, and for the first time, work with suppliers to cut supply chain emissions by 50% by 2050.

Leading companies recognise that today’s environmental challenges are too big to tackle on their own. Taking a systems-approach means looking beyond the four walls of your company, collaborating with key supply chain partners, and sending a clear demand signal for sustainable products and practices across your supply chain. Read more

Corporate America Steps Up During Climate Week

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The combination of the Pope’s visit, Climate Week NYC and news of China planning a national cap and trade program has made last week huge in terms of support for climate action. But it’s also been a week of great sustainability news coming out of corporate America, and I’m excited to see the momentum building.

  • Companies publicly stating aggressive, science-based sustainability goals? Check.
  • Big brands supporting the Clean Power Plan? Check.
  • Business committing to set an internal price on carbon? Check.
  • Increasing commitment to sourcing 100% of energy from renewables? Check.

Like I said, it’s been a really good week. After 18 years as a sustainability advocate, I’m encouraged to see companies continuing to step up their leadership on climate— making public, science-based commitments and increasingly creating an environment where denial and delay by private and public sector leaders is no longer acceptable. Many of the companies who have made commitments, (this week, before this week, and hopefully leading into COP21), are demonstrating that tending one’s own sustainability garden is necessary but no longer sufficient—corporate leaders of today and tomorrow need to collaborate with each other for greater impact and assert public policy leadership as well. Read more

Inside the Climate Bonds Initiative with Sean Kidney

This post is part of an EDF+Business ongoing series on sustainable finance, highlighting market mechanisms and strategies that drive environmental performance by engaging private capital. EDF is actively engaging leaders with the capital and expertise needed to catalyze sector-wide changes—from accelerating investment in energy efficiency and clean energy, to protecting tropical forests, restoring depleted fisheries and saving habitats of endangered species.

2014 has seen exciting growth in the maturing green bonds market, with clear investor demand and issuance tripling compared to 2013. However, for the market to grow to scale, this sector needs the kinds of systems and accepted standards in place that sustain the $80 trillion global debt capital markets.

Climate Bonds InitiativeI recently caught up with a key figure in the green bond movement – Sean Kidney, chief executive and co-founder of the Climate Bonds Initiative (CBI) – to discuss the current state of green debt and what it will take to scale up investments. Kidney launched CBI as a project of the Network for Sustainable Financial Markets, after a career in social marketing and strategy consulting, including working at some of the largest Australian pension funds. Here are some highlights from our conversation:

I understand that policy will play a key role in scaling the green bond marketplace. What role is CBI playing in the policy arena?

A price on carbon is critical to creating a scale, but that has proved challenging to secure in the near-term. Instead, we are largely focusing on what we call financial system policy.

First and foremost, we are advancing international standards, working to establish clear, green and robust definitions. We have a huge number of organizations involved in this, representing $34 trillion of investors, and sizeable grants from Bloomberg and the Swiss government. The type of certification system we are working to establish is critical to building and maintaining reasonable confidence in green bond “credentials”.

Our second focus is what we call policy formulation, helping governments see that ‘There’s a pot of gold over there,’ and showing them how to harvest it. Examples of this effort include a couple of papers we published in the spring. One is about what China can do to grow its green bond market and the macroeconomic reasons to do it. We also published a report for the European Commission on Financing the Future, where we articulated the role of green bonds in designing stable financial markets.

Our third effort is what we call market education; here our focus is to increase issuance. We’ve established there is investor demand, and now we need to feed it with bonds, so we travel the world working with the issuer community. We brief banks and cities on this new market, hoping to motivate them to enter it and thereby build supply.

There’s a lot of issuance coming through the system. I think we’ll see double the market this year than we saw last year without too much difficulty, but I want it to triple again because triple gets us to a magical $100 billion issuance, which has political resonance. Read more

Want Climate Action? Time to Pick Up Your Megaphones

victoriaExperts are saying 2015 may turn out to be the hottest year on record. But thankfully, as my colleague Tom Murray predicted earlier this year, 2015 is also shaping up to be a year for action – by businesses and governments alike – to bend the curve on the emissions that cause climate change.

This year, the Obama administration introduced important new regulations to cut GHG emissions from the electric power, oil and gas and transportation sectors. And businesses are standing behind them. Investors representing $1.5 trillion in managed assets supported federal limits on methane emissions. PepsiCo, Ben & Jerry’s and other companies called for stronger fuel economy and emissions standards for heavy-duty trucks. And 365 companies and investors wrote to state governors urging timely implementation of the Clean Power Plan, our nation’s first-ever limits on carbon pollution from existing power plants.

four-people-speaking-megaphonesA watershed moment for climate action is approaching in December, when the United States and other nations gather in Paris for the COP21 climate negotiations. A strong agreement in Paris could put the world on a path towards greenhouse gas reductions that science tells us are necessary for a stable climate. Business leadership will be critical, both to embolden the negotiators to reach a strong deal, and to ensure that the U.S. delivers on the commitments made in Paris.

Amplifying business support for climate action

Right now, there is a wealth of opportunities for businesses to voice their support for a strong outcome in Paris, and showcase their own efforts to cut climate pollution. The World Wildlife Fund (WWF) and the Carbon Disclosure Project (CDP) recently organized a webinar to present those opportunities and clarify how companies can get involved. Read more