Companies know reducing their carbon footprints makes good business sense—and that’s why they support the Clean Power Plan

Companies across the country are tackling climate change in their individual portfolios—reducing their carbon footprints by harnessing cost-effective investments in energy efficiency and clean energy. These companies are taking actions all across our nation, driving major investment in low-carbon energy resources at the local level through individual projects and investments.

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Liz Delaney, Program Director, EDF Climate Corps

These leading companies want well designed national-scale policy that complements their own efforts to mitigate climate change. The Clean Power Plan, America’s first-ever limits on carbon pollution from power plants, is a crucial opportunity to align national policy with this increasing demand for low-carbon energy. The rule provides investment certainty, while incorporating a flexible framework that ensures that its pollution reduction targets can be met in the most cost-effective manner available.

 That’s why major innovators like Google, Microsoft, and Apple—companies that employ tens of thousands of Americans across the country—are reducing their contributions to carbon pollution and supporting the Clean Power Plan. As a Google official put it, with the Clean Power Plan it’s possible to drive “innovation and growth while tackling climate change.”

 There is robust demand for clean energy solutions

Each year, EDF Climate Corps works with approximately 100 large organizations to lower energy costs and reduce carbon footprints through strategic energy management. Since 2008, we have deployed over 700 Climate Corps fellows to leading organizations to build the business case for investment in energy efficiency and clean energy, identifying cost effective ways for companies to save money while mitigating climate change.

A recent analysis of our work demonstrates several interesting trends in emissions management, many of which can be advanced by implementation of the Clean Power Plan. We are seeing companies embrace energy efficiency and deploy it at scale. Companies are taking responsibility for their environmental impact and are investing in broad solutions. For example, the report describes how Comcast identified ways to cost effectively eliminate more than 6,000 metric tons of annual carbon pollution by scaling its investments in energy efficiency over three years.

More and more corporations are also demonstrating a significant interest in zero-carbon energy. Over 80 companies, including General Motors, P&G and Walmart, have made bold and public commitments to use 100% renewable energy in their operations.

Mainstream companies are embracing the economic opportunity and societal imperative to clean up their emissions profiles, and are willing to invest in zero-carbon energy resources. In fact, in 2015, one in three Climate Corps host organizations worked with a fellow to build the business case for investment in clean energy.

Leading companies are taking individual action and supporting national scale policy solutions

By greening the nation’s power supply, we can mitigate climate change by harnessing a transition and an evolution that has already begun.

But companies are increasingly recognizing that they need to do even more than just mitigate their own pollution and procure clean energy to supply their needs. They need to advocate for smart policies too.

This is why over 100 companies, including DuPont, General Mills and Starbucks have urged “swift implementation of the Clean Power Plan” and why Google, Apple, Amazon, Adobe and others are standing up to defend the Clean Power Plan in court.

The Clean Power Plan establishes common sense national targets for reducing carbon pollution

The Clean Power Plan is an important component of a cost-effective, strategic approach to tackling climate change. It will complement and harness individual efforts to address climate change by companies across the country.

But don’t take my word for it—major businesses that are supporting the Clean Power Plan said so themselves.

Take Google, Apple, Amazon, and Microsoft. In their amicus brief filed in support of the Clean Power Plan, they noted:

By limiting emissions of carbon dioxide from existing fossil fuel-fired power plants, the Plan will help address climate change by reinforcing current trends that are making renewable energy supplies more robust, more reliable, and more affordable. Tech Amici welcome these developments. (Tech Amici brief at 2-3.)

Or IKEA, Mars, Adobe, and Blue Cross Blue Shield of Massachusetts. In their submission in support of the Clean Power Plan, they noted:

The Amici Companies have a salient interest in the development of sound policy and economically responsible environmental regulations because, as electricity consumers and purchasers, planning strategically and financially for their energy resources needs is critical to business success. (Consumer Brands Amici brief at 3.)

The way forward

Through public commitments to clean energy and through their collaborations with EDF, we know that major companies want access to clean, affordable, low-carbon energy.

It’s time we tackle climate change with federal climate policy that reflects and harnesses these powerful trends.

 

EDF’s private equity work highlighted in Environmental Finance

Last week, Environmental Defense Fund (EDF) was featured in Environmental Finance. The piece centers on results from our work with the private equity sector on environmental initiatives like EDF Climate Corps and our ESG Management Tool. Below are a couple interesting excerpts from the article:

Creating a competitive advantage

When it comes to managing environmental, social and governance issues, the private equity industry is moving from ‘why?’ to ‘how?’, say Tom Murray and Lee Coker

Can you hear it? The private equity (PE) drumbeat for responsible investment is growing louder. 

In five years of leading this effort, Environmental Defense Fund (EDF) has seen the conversation shift fundamentally from why PE firms should care about environmental, social and governance (ESG) factors, to how they can leverage ESG management to improve financial performance – while also driving better environmental and social outcomes.

Today, a whopping 92% of fund managers plan to increase their focus on ESG management in the next three to five years, according to research by Malk Sustainability Partners.

And our ongoing conversations with leading firms support the thesis that ESG issues are increasingly becoming top-of-mind, and not just from a theoretical perspective.

Simply put, PE firms are recognizing the importance of ESG assessment and integration throughout the investment process to decrease risk, improve returns and responsibly manage their institutional investors’ money…

Keys to getting started

Another terrific resource for getting started is EDF’s Climate Corps programme, which places specially trained MBA students in companies to develop practical, actionable energy efficiency plans. It is a powerful way to obtain measurable results for investors, companies and the environment. Since 2008, we have placed 20 Climate Corps fellows at 12 different PE-backed portfolio companies. On average, EDF Climate Corps fellows have found $1 million in savings for their hosts with a total of $1.2 billion in identified savings since the programme began four years ago.

PE sponsors have included Apollo, Carlyle, CD&R, General Atlantic, KKR, Oak Hill Capital Partners and TPG. PE firms have also hosted fellows at the firm level, including CD&R, Carlyle Group’s Real Estate Fund and KKR’s Capstone.

 

To read the full article, visit Environmental Finance

Make every day Earth Day

Today is Earth Day, but the idea of living an environmentally-conscious lifestyle doesn’t have to begin and end with what you do today.  Even though the media loves Earth Day, today shouldn’t be the only day we think about the environmental impacts of what we do both professionally and personally.

Colin Beavan, aka “No Impact Man,” sets a good example – and provides good resources – for all of us.  For those of you familiar with Beavan’s documentary No Impact Man, you know about his attempts cut down his family’s environmental footprint to as close to zero as possible (and if you’re not familiar with the film, you can easily get up to speed: watch the trailer or watch it on Netflix instant streaming).  In the film, you see Beavan run through a broad spectrum of environmental experiments from composting to installing solar panels on his roof and everything in between.

The idea of living an environmentally-conscious lifestyle doesn’t have to begin and end with Earth Day. Beavan has lots of ideas for doing this year-round on his frequently-updated No Impact Project site, where you can find a list of iPhone apps that can help you form ‘no impact’ habits (including recycling, carpooling and organic shopping). You can also sign up to receive a “how-to manual” that will send you ideas on how to get through the week by being green, along with other great tips. Read more

Why Walmart’s Carbon Commitment Can Make Such a Difference

Archimedes said “Give me a place to stand, and I shall move the earth,” when explaining the principle of levers.

Leverage is the big news about Walmart’s announcement today. The company has committed to reducing 20 million metric tons of carbon pollution from its products’ lifecycle and supply chain over the next five years. That’s equivalent to the annual greenhouse gas emissions from 3.8 million cars.

So is Walmart moving the earth? No, not yet. But this is precisely the kind of innovative approach to reducing carbon pollution that we need right now. Environmental Defense Fund worked closely with Walmart to craft this goal and project that makes the most of what Walmart can uniquely do to cut carbon pollution across the globe.

This commitment is bold because: Read more

How an inside look at EDF changed my perspective on corporate environmental management

If you happened to miss my previous post, I recently finished an externship in Environmental Defense Fund’s Corporate Partnerships Program, working on the Green Returns team.  After graduating from Wharton last spring, I got the opportunity to work at EDF before beginning my full-time consulting job at Bain & Company.  When I started at EDF, I hoped that the experience would teach me about corporate environmental management and expose me to a new perspective.  After five months, I would say – mission accomplished. Read more