This Election Day, leverage your influence on climate

I remember the exhilaration I felt as my mom and dad drew the curtain to fill out their ballot, and I know I’ll experience a similar sensation tomorrow when I cast a vote for what I believe in: A cleaner, better future.

Findings from last month’s IPCC Special Report show the dramatic effects that climate change is already having and will continue to have on our planet. It’s a world of more extreme storms, rising sea levels and vulnerable global supply chains. It’s a world that looks vastly different from the prosperous, clean energy future so many of us desire.

That’s why tomorrow, I’ll head to the polls with my wife and my 6-month-old daughter, and we’ll vote for candidates who support policies that help stabilize our climate. From there, I’ll head to work where I’ll fight for a low carbon future in another way: By empowering business leaders to make climate action a top priority within and outside of their four walls.

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Here’s what the last 5 years of corporate sustainability in China has looked like. What’s next?

As a kid, one of my favorite things was a Moon Cake, which I'd get to eat during the Mid-Autumn Festival in China (taking place next week). It's a day of celebrating family reunion and harvest, where the entire country throws parties, comes together and gives homage to the full moon. I’ll always jump at the opportunity to eat a Moon Cake, but this time there’s something else worth celebrating this year: the progress being made on corporate sustainability in China.

This year marks the 5th year anniversary of expanding EDF Climate Corps into China. What started as 6 fellows in 5 companies, has grown to nearly 60 fellows into over 20 companies. With that we’ve seen tens of millions of dollars in potential savings from energy efficiency improvements. But before I jump into how corporate sustainability in China has advanced, let me tell you why we made the decision to expand there.

EDF Climate Corps: welcome to China

As the world’s two largest greenhouse gas emitters, China and the U.S. are receiving increased attention on their cooperative efforts to save energy and curtail climate pollution. EDF has set a goal to help China with its rising CO2 emissions. So we thought: what better way to do this than enlisting the help of bright, young, talented graduate students?

Manager, EDF+Business

In the five years since we first brought EDF Climate Corps to China, I’ve watched as the scope and breadth of projects – by both multinational and Chinese-owned companies – has evolved alongside the nation’s sustainability efforts. I’ll show you how.

The evolution of corporate sustainability in China

In our first year, the companies we worked with were for the most part after one thing: energy audit projects in factory settings. It was about plucking the low-hanging energy fruit at one specific site (upgrading lighting or air compressor systems, etc.). And I should note, it was only multinational companies we were working with – headquartered in the U.S., with factories overseas.

Fast forward to today, while factory-based energy efficiency projects are still in our pipeline, they’re no longer the main focus. More companies are making larger sustainability goals, looking to pursue projects beyond energy efficiency.

I’ve identified a few trends in China’s corporate sustainability landscape:

  1. Improving energy efficiency and scaling solutions. Energy efficiency remains and important and effective way to reduce carbon footprints. But instead of one-off projects, it’s about scaling opportunities both across portfolios of factories and sharing with other companies in similar industries. The results bring enormous ROI, and give a competitive advantage to companies. Pacific Market International (PMI) hired an EDF Climate Corps fellow to improve the energy efficiency of one of its glass suppliers. The fellow developed an energy management strategy, which included recommendations to reduce energy use, such as optimizing washing and dying processes, that can be scaled across the entire manufacturing industry.
  2. Setting ambitious targets. More companies are concentrating their efforts around data collection, analysis, verification, and reporting. More data is critical for identifying reduction opportunities, managing suppliers and communicating sustainability efforts. This year, MAHLE hired an EDF Climate Corps fellow to build the framework for its first-ever sustainability report, which included specific energy reduction goals, covering categories such as: product innovation and development, energy saving and green production, employee care, and social responsibility.
  3. Complying with China’s environmental policies. In recent years, China’s political landscape around climate has become much more stringent, giving companies a choice: work with it, or be fined. Working with policies can reduce costs, avoid risk, demonstrate leadership, and attract stakeholders. This year, an EDF Climate Corps fellow recommended an environmental engagement plan for IKEA’s suppliers to mitigate regulatory risk – mainly around areas such as coal burning, GHG emissions, wastewater treatment, and solid waste – across its entire supply chain in China. We also hosted two webinars on environmental law interpretations and corporate compliance that garnered a lot of interest from our hosts (a recording for this year’s webinar can be found here for those that are interested in learning more).
  4. Adopting green supply chain initiatives. Companies are looking to reduce the emissions of their global supply chains, and they’re working with their suppliers to do so. This is true for both small and medium-sized manufactures, as well as multinationals. As part of its Project Gigaton (reducing GHG emissions in its supply chain by one gigaton), Walmart enlisted two EDF Climate Corps fellows in its Global Sourcing division to identify products that have the potential to reduce significant GHGs. Walmart now has a better understanding of what products need to be upgraded, how to reach its reduction goals and how to incentive more suppliers to participate in the effort.

As I enjoy my Moon Cake next week for this year's Mid-Autumn Festival, I'll be celebrating the long way we've come in corporate sustainability over these past five years. But, I'll also be thinking about the long road ahead of us.


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China: the new leading voice on climate change?

This is the first of a three-part blog series covering corporate sustainability in China. Experts from EDF Climate Corps examine how businesses are shifting the ways they approach energy management in response to increasing climate commitments.

This past June, 197 countries reaffirmed their commitments to reduce GHG emissions in an effort to curb global climate change. The U.S. was not one of them. This decision, a major backpedal for America, made room for a new frontrunner to take the reins on global climate leadership. And that’s exactly what has happened.

After President Trump backed away, China, the largest GHG emitter and coal consumer, recommitted to forge ahead with the Paris agreement. The nation recognizes climate change as a major challenge faced by all mankind and a threat to national security, which is why Beijing has deemed the Paris agreement its “highest political commitment”. China’s participation in any international agreement on climate is not only critical, it’s an opportunity to dominate the clean energy sector and inspire others to take action.

Manager, EDF Climate Corps

Here are three ways China is positioning itself to meet its targets (America, take note):

1. Enforce goals at every policy level.

China has set aggressive targets aimed at reducing the nation’s greenhouse gases that are supported and enforced by climate policies at the international, national and local level. This alignment allows for greater consistency and cooperation between the private and public sectors, enabling greater efficiency in working towards these common goals.

At the international level, China reaffirmed its promise to meet the commitments (working closely alongside the EU) outlined in the Paris agreement, including peaking CO2 emissions by 2030. Domestically, China has both short-and long-term plans to help ensure their energy goals are met. The Strategic National Energy Plan was completed this past April and China is on track to achieve its energy goals outlined in the 13th Five-year plan.

At the local level, cities have their own carbon-cutting plans. Shenzhen, one of China’s manufacturing hubs, aims to peak the city’s carbon emissions by 2022—eight years ahead of the national target. Companies, too, are ramping up their efforts.  For the past two years, EDF Climate Corps has placed four fellows in IKEA’s Shenzhen offices to help meet these targets by focusing on increasing the sustainability of the company’s supply chain (Stay tuned for more on this kind of corporate engagement in the next post of this series).

2. Invest in clean energy.

China continues to expand its dominance in renewable energy. Recently, they committed to investing $360 billion in clean energy development. According to China’s National Energy Administration, renewable energy already employs 3.5 million people in China (compared with less than a million in the US) and this new investment is expected to create 13 million more jobs in the renewable energy sector by 2020. That’s enormous growth.  

The private sector is tapping into this market as well. Chinese companies already dominate among the most profitable clean energy companies in the world with 35% of the top 200 publicly traded corporations earning significant revenue from renewable energy being Chinese. Simply put, in China, clean energy is viewed as smart business and smart economics.

3. Use a multi-faceted approach:

Manager, EDF+Business

China is coming at climate change from all angles. In addition to the policy mechanisms and promotion of clean energy mentioned above, China is securing long-term investment and sustained financing to encourage innovation and the adoption of new technologies. For example, this year China launched five pilot zones to promote “Green Finance”, a vehicle aimed at raising funds for pollution clean-up.

Also this year, President Xi Jinping pledged to launch the world’s largest national carbon market; a decision EDF played an important role in by providing the Chinese government with critical technical support and consultation. The market will hasten the transition to a low-carbon economy and send a message to the world that China is serious about finding solutions. Additionally, this presents an enormous opportunity for the private sector to curb emissions. Companies are incentivized to innovate and reduce their emissions, selling excess allowances and opening up new revenue streams.

The road forward for China

The momentum we’re seeing in China is in sharp contrast to Trump’s America. It’s this strong leadership and creativity that is needed to address GHG emissions within China. And it sets an example for others to follow. Delivering on its many commitments and aspirations won’t be easy, but for China to declare them as necessary is a big step in the right direction–one that has the potential to create massive positive change.

In our next blog post, we’ll take a closer look into how companies are already making and delivering on plans to do their part in helping China achieve its climate commitments.


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Target moves up the safer chemicals leadership ladder

Yesterday Target announced a new chemicals policy that applies to all products sold in its stores and to its operations. Does this policy have the capability to transform the marketplace by ushering in safer affordable products? Let’s take a look.

In the new policy, Target announces aspirations and time-bounded goals framed in three major areas: transparency, chemical management, and innovation.

On transparency, Target has surpassed its competitors by committing to gain not only full visibility into the chemicals in final products but also into chemicals used in manufacturing operations. Target also takes a leadership stance by aspiring for this full material disclosure across all product categories. This goal is significant and noteworthy, considering the number and variety of products (and associated manufacturing processes) at the average retail store. Target will first implement this transparency goal in “beauty, baby care, personal care and household cleaning formulated products by 2020”. In one drawback, Target is quiet regarding if and how this enhanced supply chain transparency will translate into greater ingredient transparency to consumers.

In the second area, chemical management, Target vows to implement a hazard-based approach to prioritize chemicals. It announces the use of hazard profiles – which characterize the inherent health and environmental hazards of chemicals – in judging which chemicals get added to Target’s new Restricted Substances Lists (RSLs) and Manufacturing Restricted Substances Lists (MRSLs), for future reduction and/or removal. This approach is critical to fostering safer product design and is in line with the philosophy of the Commons Principles for Alternatives Assessment, guiding principles EDF helped develop.  To kick off this work, Target outlines chemical and product specific goals: removal of PFCs and flame retardants from textiles by 2022 and removal of formaldehyde and formaldehyde donors, phthalates, butyl paraben, propyl paraben, and NPEs from the formulated product categories mentioned above by 2020.

Finally, Target commits to directly support safer chemicals innovation. In doing so, Target has shown its understanding that eliminating hazardous chemicals from the consumer product value chain is half the battle; promoting the development or discovery of safer alternatives and enabling their usability in products is as important. Specifically, Target pledges an investment of up to $5 million in green chemistry innovation by 2022.

Target also pledges to publicly share progress against its new policy on an annual basis. We look forward to this regular engagement of the public and hope it will include quantitative measures of progress.

EDF commends Target for establishing a corporate chemicals policy, making it ambitious, and stipulating time-bound goals in specific product categories. Target continues the emphasis on beauty, home and personal care, and baby products that it initiated in 2013 with its Sustainable Product Index. New to the fold is action on safer textiles. In another welcome development, Target has publicly released a key set of chemicals of concern that it plans to remove from these product categories. Interestingly for formulated products, Target’s starting list of chemicals for removal is very similar to the initial set of high priority chemicals Walmart disclosed in 2016. With the two largest retailers in the U.S. not slowing down on safer chemicals leadership, the future of the marketplace looks healthier.  Will other retailers finally follow suit?