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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Corporate America’s “moon shot”: Walmart’s Project Gigaton

 

At a time when leadership from the federal government is decidedly lacking, the launch of Walmart’s Project Gigaton is a cause for celebration. It is proof that companies can step up to advance solutions that will help business, people and nature thrive.

Just like Walmart itself, this is big.

The world’s largest retailer has launched an initiative to remove 1 gigaton (that’s 1 billion tons — billion with a “b”) of greenhouse gas emissions (GHG) from its supply chain by 2030. To put that in perspective, that is the equivalent of removing the annual emissions of Germany — the world’s fourth-largest economy — from the atmosphere. This audacious goal is impressive; it’s corporate America’s “moon shot,” and it shows real leadership.

Why? Because, according to The Sustainability Consortium, the modern supply chain is responsible for 60 percent of all greenhouse gas emissions, 80 percent of all water use and 66 percent of all tropical deforestation. And with the global population projected to swell to 9.5 billion consumers by 2050, it is clear there is not just a crucial opportunity for businesses to meet growing global demand, there is also a real need to protect the planet. Embracing sustainable practices is no longer an option for business. It is an imperative. The planet needs fast action at a massive scale.

So do forward-looking CEOs. Shareholders are rewarding resiliency when companies climate-proof their global operations. And customers, especially millennials, expect sustainability to be baked into the things they buy. In short, business is looking to drive bottom-line value, including growth, with sustainability.

Elizabeth Sturcken, Managing Director, EDF+Business

Which explains the significant Project Gigaton commitments being made by companies like Unilever (20 million metric tons of GHG reduction) and Land O’ Lakes (20 million acres sustainably farmed) and commitments made in the past six months by Apple, Amazon, Google, PepsiCo, Smithfield Foods and others.

Execution and delivery

But setting goals is just the first step. The execution and delivery must follow to complete this journey.

Which brings me back to this moon shot: Walmart cannot do this alone. Project Gigaton will take a village — in this case, the tens of thousands of companies that make up Walmart’s global supplier network — to make this goal a reality. And that’s a good thing: Eliminating GHG emissions at this scale will reverberate across entire sectors and industries. It will be the change to “business as usual” that’s long overdue.

That’s all fine and well, rhetorically. But what if you’re a CEO or CSR exec who’s facing the hard reality of “Where do I start”?

Some new research by Environmental Defense Fund starts to sketch out a roadmap to success — and illustrates the need for supply-chain partners to get on the bus. While we’re just at the beginning of a deep dive into the sustainability of the U.S. retail supply chain, our initial findings show two things:  the complexity and emission hotspots of box chain retailers and three clear, initial areas of focus:

  1. The supply chain is the largest source of emissions. If there was any doubt left, put it to rest: 80 percent of retail emissions occur in the supply chain; 12 percent are associated with the use and disposal of products and 8 percent come directly from retail operations — mostly buildings and facilities.
  2. Grocery is a huge hotspot and opportunity. Are you a retailer? Food company? Agricultural service provider? Farmer? Nearly half — 48 percent — of supply-chain greenhouse gas emissions come from the grocery category, which encompasses everything from fresh meat, veggies and dairy, to bakery, dry goods, beverages, snacks and frozen products. Together, these and other products emits 1.7 gigatons of GHGs (there’s that billion thing again). In other words, food production — and food waste — is definitely a place to make your numbers — and to make a difference. (Talk about low-hanging fruit!)
  3. Electricity is the biggest activity that contributes to emissions. From factories to farmhouses, whether powering a business or refrigerating an item at home, using electricity is the largest activity that produces emissions for consumer packaged goods production. Think about that: by tackling electricity use, whether from conservation or renewable energy, business leaders can not only run a more efficient operation, they can also engage their customers on which products to buy and how to best use them. That’s good business.

For those who have been paying attention to these issues for decades, these big opportunities won’t come as a surprise. But they help sharpen the focus for supply-chain professionals searching to answer the question of where to put effort and investment to get the most emissions-reduction results. Scale and speed are necessary. Knowing where to focus is critical. The EDF research is in the early stages and we plan to release the full results later this year.

In the meantime, kudos to Walmart. As suppliers make commitments for Project Gigaton that will drive reductions from factories to farms to forests to fleets, it will become imperative to identify hotspots to enable the largest impact. That’s exactly what drives innovation and the environmental impact we need.

The supply chain may be complicated, but the rewards are well worth it: thriving companies, thriving communities and a thriving planet.

Jump on the Project Gigaton moon shot. It’s leaving the launching pad, with or without you.


Follow Elizabeth on Twitter, @esturcken


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From row crops to rainforests: how agriculture affects us all

Happy Agriculture Day! Whether you have a special interest in agriculture or not, we’re guessing that—as a human being—you probably have an interest in food

But, on this Agriculture Day, we want to recognize and celebrate the farmers and ranchers while acknowledging the fact that we all play a part in the growing of food. In just a few decades, there will be two billion more people to feed on the planet. As a global community our challenge is to feed this growing population sustainably without depleting the soil, polluting our water and worsening global warming.

The statistics are eye opening. Global food production accounts for:

  • 33% of the world’s GHG emissions
  • 70% of the world’s water consumption
  • 80% of deforestation worldwide
  • 50% of global top soil loss

What’s behind these huge numbers? When we look deeper, the problem looks different depending upon which side of the equator you’re on. From row crops to rainforests, here’s a snapshot of what’s happening, both in terms of the problem and the solution:

Domestic Agriculture                         

When we think about how we will feed an additional 2 billion people, improving yields will be critical to meet demand. Fertilizer is an essential nutrient that will help to increase the yields we need. But with less than half of nutrients applied each season being actually absorbed by crops, the unused fertilizer is bad for the planet:

  • US food production accounts for 75% of nitrous oxide emissions and has contributed to the pollution of nearly 40% of US drinking water supply;
  • Excess fertilizer and pollution is washing off of farm fields and into water ways degrading coastal ecosystems and causing algae blooms.

At the same time, this also hurts farmers financially. Fertilizer represents their single biggest input cost, so when nearly $420 million in fertilizer washes off Midwestern farm fields and into the Gulf of Mexico every year, it’s tough to remain profitable.

EDF’s work* with  Walmart, Smithfield Foods, Campbell’s Soup, Land O’ Lakes and other food companies is proving that efficient fertilizer use reduces supply chain emissions and saves money. It just needs to happen more: when food companies, retailers, and other supply chain actors send the demand for scientifically based and economically viable strategies for using fertilizer more efficiently, sustainable practices will expand and far less impact will be placed on the environment.

Agriculture and Deforestation

Agriculture is the largest single cause of deforestation. Everyday forest lands in Brazil and other tropical countries are burned down to grow crops or to create cattle pastures for beef production. The exploitation of the tropical forests for the big four agricultural commodities, palm oil, beef, soy, and pulp and paper, contributes significantly to climate change.

Deforestation accounts for about 15% of global carbon emissions annually. Hundreds of major consumer goods companies have committed to eliminating deforestation from their supply chains.

The challenge is twofold: how to increase agricultural production in these topical regions to support the livelihoods of local communities and growing global consumer needs, while fulfilling companies’ zero-deforestation commitments to reduce carbon emissions?

The solution lies in multi-stakeholder engagement. Brazil’s experience shows that collaboration between companies, government agencies and local communities within a region can successfully reduce deforestation while maintaining robust growth in production. The country successfully reduced Amazon deforestation by about 75% from 2005 to 2013.

Katie Anderson, Project Manager, EDF+Business

When executed properly, these jurisdictional approaches provide win-win-win opportunities. Companies have a new way to meet zero deforestation commitments in supply chains by sourcing from lower risk areas and reduce the risk that deforestation will spread to other suppliers. Governments have additional support to improve policies and productivity in their regions. Farmers have the needed incentives and assistance to increase sustainability and profitability on their lands.

Partnership is the key

So it’s clear: our food has costs beyond our wallets, in the form of greenhouse gases, water quality, water scarcity, biodiversity, and other important impacts that we don’t see each day when we sit down at the table.

But the good news is, there’s a lot of movement—or potential for movement— across the food supply chains, from retailers to growers to consumers, to promote sustainable practices on a multitude of food and agriculture issues.

Theresa Erhlich, Project Coordinator, Supply Chain

To tackle these costs, everyone along the food chain needs to realize that there is no free lunch (pun very much intended):

  • At EDF, we are working in collaboration with farmers, companies, governments, and other NGO’s to address these issues and reduce the impact of our food supply chains.
  • Companies (including: food companies, retailers and other supply chain actors) need to consistently send the demand signal to farmers that they want less deforestation and more efficient fertilizer use.
  • Consumers play an important role by sending our own demand signal for more sustainably produced food by thanking the companies leading the way in sustainability through shopping power.

So today take a moment think about where our food is comes from, and the hard work and energy that went into its approaches to feed people and protect our planet.

* EDF takes no money from our corporate partners—we are funded solely through grants, donations and membership. 

The state of green business? Hopeful, puzzling… and pushing forward

I always look forward to the latest State of Green Business report from GreenBiz. It invigorates me and reminds me that there are a lot of talented people making sure that both business and the planet can thrive– a notion that I’m holding tight as the political atmosphere gets increasingly crazy.

I found two of the trends in the report of particular interest because they signal that smart business leaders are staying the course on climate.

Trend: Corporate Clean Energy Grows Up

The trend toward corporations transitioning to renewable energy has been gaining momentum for years. Today, twenty-two of the Fortune 100 have committed to procuring 100% of their energy from renewables, and 71 have a public target for sustainability or renewable energy.

“Business is a very important advocate for clean energy, because it speaks the language of hard economics,” points out Jim Walker, co-founder of The Climate Group. “It’s sending a strong signal to policymakers and the general public that this is the inevitable direction we’re going to move towards – a 100% clean energy economy.”

When innovative companies like Apple, Amazon, Unilever, and Google show leadership on renewable energy, their suppliers, customers, competitors, and the market respond. Microsoft, for example, is helping lead the way by purchasing 237 megawatts of capacity from projects in Wyoming and Kansas. And, Walmart, a long-time EDF partner, has also made a commitment to source 100% of its electricity from renewable energy. Currently at 25%, they’ve made significant progress on implementation.

With corporate leadership like this in place, it’s clear that business will continue to have an impact on the renewable energy revolution. The recent report from my EDF Climate Corps colleagues is proof of that: the solar power sector is growing quickly, and is a major source of jobs that are a.) impossible to outsource and, b.) available in all 50 states.

Trend – Companies Put Their Money Where Their Suppliers Are

According to the Business and Sustainable Development Commission, embedding sustainable business practices in the global food and agriculture industry could deliver $2.3 trillion annually.

“All stakeholders can share in the benefits: smallholder farmers improve their livelihoods; suppliers gain increased security of supply with improved quality; and we reduce volatility and uncertainty with a more secure and sustainable supply chain,” wrote Unilever CEO Paul Polman.

Elizabeth Sturcken, Managing Director, EDF+Business

When a corporation commits to reduce emissions in their supply chain, the results can be powerful.  We’re seeing this firsthand with our work with Walmart. EDF spent 10 years with Walmart to help drive sustainability across its global supply chain. The result? By the end of 2015, through leadership, innovation and a diverse range of projects, Walmart had exceeded its goal to reduce supply chain emissions eliminated 36 MMT of greenhouse gas from its supply chain. Now, they’ve committed to removing 1 Gigaton of emissions by 2030 – the equivalent of the total annual emissions of Germany.

Smithfield Foods is another company that EDF collaborated with in setting a goal to reduce absolute greenhouse gas emissions by 25% by 2025 across its upstream U.S. supply chain. EDF will continue to help Smithfield improve fertilizer efficiency and soil health, which will reduce nitrous oxide emissions from grain farms.

But to keep moving forward on these sustainability trends and others requires business to use its voice and influence to not backpedal on policies that are a win-win for our environment and our economy. We are at a crucial period where companies need to make the long-term economic case for policy, including the Clean Power Plan, Toxic Substances Control Act (TSCA) and ensuring the U.S remains part of the Paris Agreement.

Businesses will not go backwards on environmental protection. It’s bad for business and the environment. In fact, over 600 businesses have signed the Low Carbon USA letter calling on U.S. elected leaders to stay the course on environmental protection and climate leadership.  Now is the time for unlikely voices to step up and continue to press the case for action; the recent call for a carbon tax is probably most noteworthy because it was brought forth by Republican party faithfuls.

If there was one sentence in the State of Green Business report that captured the feeling of the moment it was this: “It’s hard to imagine a time more hopeful and horrifying for sustainable business.” At EDF, we’re not only hopeful but we’re committed: the economy and the planet can—and must–thrive together. Any conversation that suggests otherwise is a non-starter.

 

Working smarter, not harder: goals help companies get strategic about climate change

lizIt’s no secret that companies use goals to push their businesses in a positive direction. Whether it’s about creating more value or reducing impacts, goals provide focus, direction and a sense of urgency. Recently, a wave of corporate, climate-related goals, such as renewable energy and emissions-reduction targets, have grabbed the public’s attention. Companies, cities and other large institutions are stepping up and committing to reduce their environmental impact. But behind the scenes, are these goals actually leading to corporate action? And if so, what kind?

As program director of EDF Climate Corps, every summer I get a glimpse inside the operations of 100 large organizations that are working to manage energy and carbon in progressively responsible ways. This past summer, 125 EDF Climate Corps fellows – talented graduate students armed with training and expert support – worked to advance clean energy projects in large organizations across the U.S. and in China. Their project work reveals that organizations are more strategic, focused and results-oriented than ever. More than 70 percent of EDF Climate Corps host organizations have energy or emissions-reductions goals, and to meet these targets, our class of 2016 fellows was strategically deployed to help achieve them. In fact, the majority (two-thirds) of our entire cohort of fellows worked on strategic plans and analyses that will help turn these goals into action. So what did we see this summer?

  1. Ambitious goals are driving big impacts at the building level

A great example of goals driving smart and strategic action in buildings is our recent work in New York City. Over the summer, more than 25 fellows worked within companies, city agencies and even a local utility to design strategic plans to help meet Mayor de Blasio’s ambitious 80 x 50 goal that pledges to reduce city greenhouse gas emissions 80% by 2050.  Rather than approach this one boiler room at a time, our fellows worked on ambitious, portfolio-wide equipment replacement and onsite renewable energy plans, with the potential to impact thousands of buildings at once. It’s great to see a municipal goal drive strategy from both the public and the private sector. The mayor’s goals are clearly spurring action and large-scale strategy is the way to drive rapid improvements that would take much longer through an incremental approach.

  1. Public goals allow leaders to shine, but also inspire others to follow

Many corporations maintain internal sustainability goals but shy away from publicizing them for a multitude of reasons – from fears of greenwashing to competitive advantage. But we’ve recently observed that this trend is changing, with more and more of our host companies realizing that smart, data-driven analysis can help them set public commitments with confidence. For example, EDF Climate Corps host Amalgamated Bank wanted to incorporate climate change mitigation in its mission, but first needed to dig deeper into its data to create smart goals and a strategy to achieve them. With the help of their EDF Climate Corps fellow, who conducted the first greenhouse gas emissions inventory and an assessment of its carbon footprint, Amalgamated Bank got the information it needed to set ambitious goals, culminating in a September announcement to become the second largest net-zero energy bank.

  1. Supply chains are beginning to benefit from corporate goals

While many corporations have articulated impressive goals related to their corporate operations, setting targets in supply chains is an even more ambitious endeavor. Corporate supply chains are the source of significant carbon emissions and are notoriously hard to manage. Longtime EDF Climate Corps host Verizon – a corporation with a history of setting and achieving sustainability goals –knew that by working strategically it could tackle this daunting challenge. This past summer, Verizon asked its EDF Climate Corps fellow to help the company cross the finish line on its 2017 supplier target. By creating a holistic strategy that used a combination of risk-identification and supplier engagement, Verizon is now on track to accomplish its 2017 supplier goal and formally launch its next target to help manage supply chain carbon emissions.

The EDF Climate Corps community is a living laboratory. Through our fellowships and engagement with large energy users, we see companies and cities trying new things, and working smarter, not harder, to achieve ambitious goals. We’ve mirrored this journey as well, moving from a “one boiler room at a time” mentality to broader, more strategic engagement with companies to help drive progress. Through a focus on smart energy strategy, driven by goals, we know that companies can generate a virtuous cycle of positive returns for their organizations.

Is Walmart a Leader on Safer Chemicals?

Consumers want to know that the products they buy contain ingredients that are safe for them and their loved ones. EDF has identified five pillars of leadership to help companies meet that demand and in doing so build consumer trust in the products they make and sell. One company that has recently taken major steps to drive safer chemicals and products into the market is Walmart.

In 2013, Walmart published its Sustainable Chemistry Policy, which focuses on ingredient transparency and advancing safer product formulations in household and personal care products. EDF worked with Walmart as it developed its policy and has advised the company during implementation and data analysis. This past April, Walmart announced that the company achieved a 95% reduction in the use of high priority chemicals of concern. Now, Walmart has shared considerable additional information detailing the progress made, including the identities of the high priority chemicals.

In our previous blog, we broke down the wealth of information that Walmart has shared. However, to fully evaluate the significance of the numbers, we now look at how well Walmart has done against EDF’s five pillars: institutional commitment, supply chain transparency, informed consumers, product design, and public commitment.

Read more

Product Ingredients at Walmart Changed for the Better. Really.

It’s whack-a-mole time.

In April, Walmart released their 2016 Global Responsibility Report. In it, they noted a 95% reduction by weight in the approximately ten high priority chemicals in home and personal care products covered by their 2013 Sustainable Chemistry policy. Ninety-five percent is a big number, but the substance – the chemical names, the volumes – was missing.

No longer.

Today, Walmart released the names of those high priority chemicals, with details as to how the reductions were achieved. The chemicals – butylparaben, propylparaben, dibutyl phthalate, diethyl phthalate, formaldehyde, nonylphenol ethoxylates, triclosan, and toluene – will not come as a surprise to most who work on these issues; these chemicals have been called out for action by many for quite some time.

Scale_Blog-Graphic

If this announcement is met like most environmental stories told by corporations, the mole-whacking will commence shortly. WHACK! Why these chemicals and not those? WHACK! What took so long? WHACK! What about everything else? While companies that do nothing will stay in the shadows, those like Walmart trying to drive needed change usually get whacked for what they haven’t done already.

And of course a lot still remains to be done.

But this story is a good one, and Walmart deserves credit for what they have accomplished. Walmart is the one company in the world that could drive drive over 11,500 tons – 23 million pounds – of chemicals out of so much product in less than 24 months.

Read more

Walmart: The Awakening of an Environmental Giant

Just over a decade ago, EDF and Walmart launched a groundbreaking partnership—one that's delivering powerful results and helping to scale sustainability across the retail supply chain. 

Fred Krupp 6/15/04

About 20 years ago, I got on a plane to Bentonville, Arkansas, home of Walmart. Buoyed by the success of EDF's pioneering partnership with McDonald's, which did away with the company’s polystyrene packaging and reduced waste by 300 million pounds in the first decade, and by our continued success with other leading brands, I hoped that the world's largest retailer might become our next big corporate partner.

Big companies can leverage big changes. Read more

Behind the Label: the Blueprint for Safer Chemicals in the Marketplace

Behind the Label - the blueprint for safer chemicals in the marketplaceIf you’re in the business of using chemicals to make consumer products – things like shampoo or baby lotions, spray cleaners or laundry soap – the last few years have likely been anything but dull. State legislatures have been passing laws restricting certain chemicals from products; consumers are demanding more transparency about product ingredients; and some of the nation’s biggest retailers, including Walmart and Target, have issued chemical policies of their own.

Having worked for years to reduce the public’s exposures to hazardous chemicals and drive incentives for safer innovations in chemistry, Environmental Defense Fund is encouraged to see the growing demand for ingredient transparency and chemical safety. But for companies impacted by these new policies, adjusting to new demands may be challenging. As a business strategy, waiting to respond to the next chemical of concern or the next regulatory action, as opposed to taking proactive steps to improve transparency and chemical safety, is an unsustainable means for addressing risk.

What if your company didn’t have to worry about the next retailer’s list of priority chemicals, the next set of state or federal policy changes or regulations, or the next chemical of concern du jour to light up social media outlets?

Consumers Get Their Say in Supporting Sustainable Products

Like teenagers, all ground-breaking products or ideas go through an awkward adolescent phase.  And, like teenagers, the only way products or ideas can move past the clumsy stage and blossom into a sought after, form-meets-function icon is through experience.  Meaning, real consumers have to put them through their paces: does this work? How could it work better? Revise, improve, re-test, repeat… that’s how you make something truly effective; truly great.

Sustainability-Shop bug_115x115

All this is by way of acknowledging a group of sustainable-minded collaborators on the coming-out party this week for Walmart’s “Sustainability Leaders Shop”, an online shopping portal that “will allow customers to easily identify brands that are leading sustainability within a special category”.  It is, literally, the very first time a quantifiable, science-based index of various products’ sustainable provenance is being placed in the hands of consumers at the scale that only Walmart can provide. Read more