Freight transportation is the work horse of the global economy, ensuring that the products consumers want get on the shelves where and when they want them. With 70 percent of U.S. goods being moved by truck, freight is a key source of U.S. fuel consumption and corporate greenhouse gas (GHG) emissions. Today, freight also offers companies a key opportunity to drive us toward a lower carbon future.
In a Wall Street Journal op-ed with EDF President Fred Krupp, Pepsico Chairman and CEO Indra Nooyi voiced the company’s strong support of the new fuel efficiency and GHG standards for medium and heavy duty trucks released June 19th by the U.S. Environment Protection Agency and Department of Transportation. Over the life of the program, these robust standards will cut fuel consumption in new trucks by 1.8 billion barrels of oil and reduce carbon emissions by one billion metric tons.
Leading companies like General Mills, Walmart and Anheuser-Busch have made reducing fuel use and emissions from freight a priority in setting their internal supply chain performance goals. But Pepsico’s willingness to step forward with this op-ed is a prime example of how companies can extend their leadership by aligning their public policy stances on with their sustainability goals – what EDF has been referring to as the business-policy nexus.
Freight affects all of us, but business is in the driver's seat
Freight transportation exists to serve companies that make or sell physical goods, from brands and manufacturers using trucks to bring in supplies and ship out final products, to technology companies needing trucks to deliver the hardware that powers their online services. While medium- and heavy-duty trucks only make up 7 percent of all vehicles on the road, they consume 25 percent of the fuel used by all U.S. vehicles.
Inefficient movement of goods wastes fuel, raises costs and increases environmental impacts. For firms like Pepsico, who maintain their own fleets, as well as those that contract out for freight moves, fuel is the single largest cost of owning and operating medium- and heavy-duty trucks. Truck fuel prices have increased 58 percent since 2009, a strong incentive for increasing the efficiency of trucks that move freight. Consumers are counting on businesses to solve this problem, as those costs are passed on to consumers. Through everyday purchases, the average U.S. household spends $1,100 a year to fuel big trucks. Strong standards can cut this expense by $150 on average a year by 2030. Read more
Cheryl Bynum, National Program Manager at US EPA, SmartWay, presents the 2015 Affiliate Challenge Honoree award to Environmental Defense Fund.
EDF has long been a champion of the SmartWay program, EPA’s highly successful public-private partnership between more than 3,000 organizations that are committed to improved fuel efficiency and environmental performance. So we were thrilled when EPA named us a 2015 Affiliate Challenge Honoree for our efforts to promote the program in our Green Freight Handbook.
We were recognized last week at the Transportation Intermediaries Association (TIA) conference, and we will participate in a virtual awards ceremony tomorrow. We have impressive company: the American Trucking Association, Penske, TIA, Wisconsin Clean Cities, and the North Central Texas Council of Governments were all named as honorees as well.
The program has helped facilitate positive results in many areas, perhaps most impressively in the goods movement sector.
Success in Texas and across the nation
SmartWay’s approach is one of partnership. The program brings together partners from the public and private sectors, to demonstrate the way modified operational practices can benefit both the environment and the bottom line.
by Jennifer McPartland, Ph.D., Health Scientist
Today, the EPA Design for the Environment Program (DfE) Safer Choice program (formerly, the safer product labeling program) unveiled its newly redesigned family of three product labels. The voluntary Safer Choice program seeks to recognize and bring consumer awareness to those products whose chemical ingredients represent the safest among those within a particular chemical functional class (e.g., solvents).
Today’s milestone is the result of a public process led by the EPA DfE program to solicit feedback on a new label that better communicates the goals and purpose of the program. After more than a year, and 1,700 comments and six consumer focus groups later, the new labels will be arriving soon to a store shelf near you. Read more
This past year, we’ve seen some bold action by companies in what we’ve dubbed the business-policy nexus, and it’s taking several different forms. Some have been calling for state or federal action on environmental impacts, while others are taking far-reaching voluntary efforts that could help support policy advocacy in the future.
Whether you view engagement on public policy as risk mitigation, providing market certainty, supporting corporate sustainability goals or securing competitive advantage, leading businesses are increasingly stepping up their efforts to support smart policy reform that will benefit the environment and economy.
Keeping toxic chemicals out of supply chains
Walmart and Target are moving to proactively get harmful chemicals out of their supply chains, even though the nation’s main chemical safety law, the Toxic Substances Control Act (TSCA), is outdated and hasn’t been reformed in nearly two decades.
Earlier this year, our long-term partner in this area, Walmart, took a big step forward by announcing a new sustainable chemicals policy focused on cutting 10 chemicals of concern from home and personal care products it sells. Chemicals of concern – for example, formaldehyde, a known carcinogen – have been found in about 40% of the formulated products on Walmart shelves, including things like household cleaners, lotions and cosmetics. Read more
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.