Beyond supply chains: tackling deforestation through collaboration

Supply Chains: vital to tackling deforestation…

Leadership within corporate sustainability continues to reach new heights as companies innovate to catalyze more progress.  Early sustainability efforts focused on philanthropy. Next, companies embraced the business value of engaging in operational efficiency, such as efficient use of water or energy.

The current wave? Supply chain engagement: realizing that the bulk of their environmental impact comes from outside their operational walls, leading companies are reaching back across the chain to suppliers and producers to drive improvements.

Companies and non-profit partners still have a lot of work to do to determine how to adequately engage in continuous improvement across a supply chain and measure performance in a transparent way. But even if they solve this puzzle, it isn’t sufficient to tackle our biggest, hairiest environmental problems—like deforestation.

In the deforestation space, direct supply chain engagement is vital to manage corporate risks and catalyze improvements. But any company that attempts long-term supply chain engagement on their own typically creates a situation in which individual farms are reducing forest loss, but the landscape around them is still filled with rapid deforestation. Imagine "islands of green" in a sea of deforestation.

…but what's the next step?

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Business will not walk backward on climate

Our businessman president just flunked one of the most important tests of his presidency: failing to listen to business leaders on the Paris climate agreement.

Despite the hundreds of companies and corporate CEOs calling for continued U.S. leadership on climate – in full-page ads in the Wall Street Journal and New York Times, on the Low Carbon USA website, and in direct outreach to the administration – Trump chose to side with the laggards. This is deeply disappointing and will harm American workers and business by undermining our competitiveness in the global clean energy economy.

Trump’s decision to withdraw from the Paris agreement, however, will not stem the tide of American businesses taking action to stabilize the climate and safeguard our planet. Private sector leaders, unlike our president, have moved beyond the false choice of a healthy economy or a healthy environment; we need both. Which is why leading companies and investors are poised to deliver clean air, clean water and clean energy in ways that increase jobs, incomes and competitiveness.

Tom Murray, VP Corporate Partnerships, EDF

While the Trump administration has ceded global leadership on climate, corporate America is moving ahead with plans to invest in clean energy and cut emissions. Long-term, global competitiveness demands it.

Leadership on climate and energy is driven by long-term economics, not short-term politics.

American business won’t back down from this latest challenge. In fact, it seems the business community is more motivated on climate than ever before. Cargill CEO David MacLennan summed it up best: “Cargill has no intention of backing away from our efforts to address climate change in our supply chains around the world and in fact this would inspire us to work even harder.”

Companies need to forge ahead by pursing aggressive science-based, emissions reduction targets and expanding their efforts to slash emissions throughout their operations and supply chains. Take PepsiCo, which recently announced that its climate goal to reduce absolute GHG emissions across its value chain by at least 20% by 2030 has been approved by the Science Based Targets initiative.

Business leaders can use Hewlett Packard Enterprises as a model. The information technology company created the world’s first comprehensive supply chain management program based on climate science and requires 80% of manufacturing suppliers to set science-based emissions reduction targets by 2025.

And just last week – despite the unsettled future of U.S. participation in the Paris Agreement – Tyson Foods announced it will develop science-based greenhouse gas and outcome-based water conservation targets for their entire supply chain.

These high-impact corporate initiatives need to be applauded, and the tools and resources used to achieve these goals should be replicated across industries.

Business will not allow positive climate momentum to come to a halt

The clean energy momentum generated by business over the last decade will not come to an abrupt halt. Companies like Apple, AB InBev and Walmart will not turn their back on the clean energy commitments they’ve made to customers, employees and the planet. Investors, like we saw with ExxonMobil, will keep pressure on companies to clearly report how climate change is affecting business.  And CEOs like General Electric's Jeffrey Immelt or Tesla's Elon Musk, who have been outspoken about remaining in the Paris agreement, will not back away from their company’s climate efforts because they understand how leaving Paris will make it harder to do business around the world. These voices need to keep encouraging others in the business community to join their efforts.

What is the plan? Inaction is unacceptable.

In this new post-Paris world, companies must now demand that the Trump administration and Congress deliver a plan to address climate change. Leading cities, states and companies will continue to move forward, but won’t be enough to deliver the reductions required from the world’s second largest emitter.  Smart climate and energy policy is required to provide the deep emission reductions the world needs and the certainty that business needs for planning, investment decisions, and job growth.

Unfortunately, the president failed to listen to the business community he was once a proud part of for so many years. With the President lagging behind, real business leaders will continue to step up lead the way to a thriving clean energy economy; EDF will have their back. We will continue to engage with business in this time of uncertainty to help shape a future where both business and nature prosper.

If the president won’t listen to business leaders in the future on climate, I hope he will follow the words of one of his favorite presidents, Abraham Lincoln, who said, “I walk slowly, but I never walk backward.”


Follow Tom on Twitter, @tpmurray


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With Paris in doubt, Tyson Foods is the latest business to lead

What comes to mind when you think of Tyson Foods? Maybe it’s their eponymous brand’s wide array of chicken prepped in every shape and size. Or your morning ritual breakfast sandwiches by Jimmy Dean. Or even Hillshire Farm’s folded lunchmeats beneath the classic red container lids.

Most likely, the word “sustainability” doesn’t pop into your head—but that’s about to change.

Last week, Tyson Foods, one of the world’s largest meat producers, announced the beginning of a collaboration with the World Resources Institute (WRI) to develop science-based greenhouse gas (GHG) and outcome-based water conservation targets for their entire supply chain.

Project Coordinator, Supply Chain

This announcement comes at a time when U.S. participation in the Paris Agreement is unlikely. President Trump’s stance on climate change is disconcerting to say the least, but the ambitious goals made by corporate leaders (like Tyson) give Americans something to be proud of. The future is in sustainability, and business is on its way there.

Tyson aims to work with WRI in order to ensure that every step of their supply chain–from the suppliers for the materials and ingredients to the farmers who provide the chicken, turkey, cattle and pigs–meets their environmental targets. More and more companies are setting supply chain goals that address the sourcing of raw materials, which can be the hardest to influence, but the greatest source of impact.

This announcement follows several recent actions made by the company showing their commitment to improve the sustainability of its supply chain, including the recent hire of their first Chief Sustainability Officer, Justin Whitmore, and the elimination of antibiotics in their own brand of chicken. These initiatives are not only a significant step for Tyson Foods, but also the animal agriculture industry in general.

As one of the largest animal agriculture companies in the world, Tyson has the opportunity to act as a role model for other companies, large and small, within the animal agriculture sector to begin adopting similar sustainable initiatives.

Major companies like Walmart, PepsiCo, Nestle, have all set targets to reduce emissions from their full supply chains. EDF has worked with a number of other food and beverage companies and retailers to set supply chain sustainability goals, including Smithfield Foods, the world's largest pork producer.

Tyson’s commitment reaffirms the notion that addressing the entire supply chain has officially become mainstream. We hope to see other major meat producers, such as Hormel, Perdue and JBS, follow in their footsteps.


Follow Theresa on Twitter, @te_eberhardt


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Dream Conversation: Paul Polman (Unilever) and Doug McMillon (Walmart) at a Paris Café

In the wake of the COP 21 talks in Paris, I’m heartened by what appears to have been a strong business presence there. Does the agreement go far enough? It’s a start. Which then got me day dreaming about the ideal, “what’s next” conversations that I hoped were taking place (along with really good coffee and pastry, of course!).

So, without further ado, here is my dream COP 21 conversation (entirely a figment of my imagination, of course. But hey—a girl can dream, can’t she?):

The scene: a bustling Café in Paris’ 4th arrondissement.

5238558290_fdbe123f99_oThe players: Paul Polman, CEO of Unilever and Doug McMillon, CEO of Walmart. Both men sip espressos.

Doug:  May I join you?

Paul: Doug, great to see you!  Have a seat!  How are you?

Doug (sitting): I’m exhausted. I never realized how much of a circus these global meetings are. Hey, congratulations on the Times article! Man, that’s showing ‘em how business can lead on sustainability.

Paul: Thanks—and look who’s talking! Congrats yourself on reducing all those CO2 emissions. How many million metric tons again? Twenty?

Doug: It was actually twenty-eight, thank you very much! It all just goes to show you: set a BHAG, and big innovation follows.

Paul: “BHAG”?

Doug: A BHAG— a Big, Hairy Audacious Goal. Our 20 million metric tons pledge in 2010 was a BHAG. So was your pledge to halve Unilever’s environmental impact by 2020. I bet when you made that you didn’t know exactly how you were going to get it done, am I right? And yet, you’re on your way—and already seeing results? Read more

Freight Sustainability Forum in Dallas Engages Leaders on Supply Chain Solutions

Developing tomorrow’s innovative sustainable supply chain strategies requires knowledge, collaborative spirit, and creative thinking. EDF is helping to integrate these elements into the transportation network by highlighting successful sustainability practices already employed by industry leaders.

logos

At a recent freight forum co-hosted by EDF, the Las Colinas Chamber of Commerce, and the U.S.-Mexico Chamber of Commerce, we learned about best practices for co-loading heavy and lightweight freight in a single container, funding opportunities available through the Diesel Emissions Reduction Act (DERA), and intermodal strategies in key corridors. The freight transportation stakeholders in attendance ranged from cargo owners with global supply chains to international logistics providers to regional business associations.

The overarching theme of the forum was that securing emissions reductions from freight transportation is achievable through operational changes, partnerships, funding availability, and technology improvements. While many within the freight transportation community know that opportunities exist to increase sustainability and efficiency within the supply chain, not everyone implements these best management practices. Whether you are a logistics provider in Mexico, a shipper based in Texas, a global carrier or another transportation stakeholder, you play an important role in greening our logistics.

EDF also plays an important role, with a long history of working with companies to help them find ways they can improve their supply chain sustainability and efficiency, with new partnerships kicking off in the coming months. This year, we are beginning a supply chain logistics pilot as part of our highly successful Climate Corps program. We are also working on a marine port environmental performance metrics program that will help recognize top performers and share best management practices to reduce emissions. Together, all of our efforts are helping improve efficiency, reduce emissions, save costs, and protect public health.

This forum served as a launchpad for great ideas and new programs and partnerships like Climate Corps logistics and port metrics. Next time, we can share your success story!

Hunting for environmental hotspots in Walmart products

At Environmental Defense Fund (EDF), our work with Walmart focuses on leveraging the company’s buying power to reduce the environmental impacts of consumer goods. One of the clearest points of leverage is Walmart’s own store brands—Great Value, Sam’s Choice, Equate, and others that account for a sizable and growing percentage of the company’s sales. An internal team in Bentonville, where Walmart is headquartered – is responsible for designing private brand products, making sourcing decisions, and overall wielding substantial control over products from manufacture to the retail shelf.

In recent months, EDF has been working with the Walmart team responsible for the food and consumables division of Private Brands—the grocery side of Walmart—to assess seven private label products.

Our goal was to understand the environmental and social impacts across the life cycle of the following products:

  • Sour cream
  • Dish soap
  • Canned tomato sauce
  • Cereal
  • Sliced turkey breast
  • Chocolate syrup
  • Cashews Read more

Use Night-Vision Goggles to Uncover Innovations through Sustainability

This morning, I spoke on a panel called “Driving Innovation Through Sustainability” at the Fortune Brainstorm Green conference.  Given that the panel was held at the eye-popping hour of 8 AM, it’s testament to the topic that the room was overflowing.  Or perhaps the draw was my fellow panelists – Matt Kistler, Senior Vice President of Sustainability for Walmart, Rick Rommel, Senior Vice President for Emerging Business at Best Buy and  Scott Elrod, Vice President of the Hardware Systems Laboratory at the Palo Alto Research Center – and our moderator, Roger Ballentine, President of Green Strategies.

Roger started us off by saying that a sustainability agenda can act like a pair of night-vision goggles, helping corporate managers and executives find innovation where they couldn’t see it before. That certainly resonated with me – I’ve seen that pattern over and over again in the companies with which we work.  In fact, I’m often asked of our partners, “Why did they need you to find an innovation that’s clearly good for their business?”  I think it’s because in many ways Environmental Defense Fund provides those night-vision goggles Roger was talking about, bringing a new green lens to business as usual. Read more