There’s no avoiding it, business must lead on climate

A few weeks ago, I attended the Earth Day Network’s Climate Leadership Gala in Washington, DC.  Each year the event brings together more than 300 leaders from business, government and the NGO community to celebrate achievements in working towards a clean energy future. This year’s top honor, the Climate Visionary Award, was presented to Unilever CEO Paul Polman for his commitment to fighting climate change.

Tom Murray, VP Corporate Partnerships, EDFBold, passionate leadership like Polman’s is essential to tackling climate change while helping to create an economy that benefits us all. He understands that it’s not a choice between business and the environment. In fact, a thriving economy depends on a thriving environment.

Corporate sustainability leadership is now more important than ever. It’s clear that the Trump Administration’s efforts to roll-back environmental protections have thrust U.S. businesses into a critical leadership role on clean energy and climate change. (In fact, I’ll be talking with business leaders later today about how they are “responding to the new norm” at the Sustainable Brands Conference.)

Over the past 25 years at EDF we’ve seen corporate sustainability go from simple operational efficiencies to global supply chain collaborations; now it’s time to go further. Business must continue to raise the bar for sustainability leadership.

How?

  1. Set big goals, then tell the world

 Thinking big and setting big goals, are required to drive big innovation and big results.  Many large companies have demonstrated that if you commit to aggressive, science-based, sustainability goals, you can deliver meaningful business and environmental results. For example, Walmart, a longtime EDF partner with a track record of setting aggressive yet achievable climate goals, has recently set its sights even higher by setting a goal to source half of the company’s energy from renewable sources by 2025 and by launching Project Gigaton, a cumulative one gigaton emissions reduction in its supply chain by 2030.

And Walmart is not the only one. Other companies are stepping up as well – especially around commitments to go 100 percent renewable. Whether its online marketplace eBay committing to 100 percent renewable power in all data centers & offices by 2025, Tesco, one of the world’s largest retailers, announcing science-based targets and committing to 100 percent renewable electricity by 2030 or AB InBev committing to 100 percent renewable power, companies from diverse industries are taking a positive step forward.

While setting goals is a great first step, companies also need to communicate about the goals and progress. Not only does this increase transparency into a business’ sustainability efforts, it lets the world know that sustainability is core to its business. Publicly committing to sustainability goals sends a strong signal to suppliers, shareholders and customers.

  1. Collaborate for scale

In December 2016 I wrote about Smithfield Foods, the world’s number one pork producer, and its plan to cut greenhouse gas emissions 25 percent by 2025. The commitment was important both because Smithfield was the first major protein company to adopt a greenhouse gas reduction goal but also because the reductions would come from across Smithfield's supply chain, on company-owned farms, at processing facilities and throughout its transportation network.

Smithfield understands that some environmental challenges are too big to handle on their own, and they know collaboration is the key to deliver impact at scale.

Other companies are also looking beyond their own supply chain and forming mutually beneficial partnerships. Take the recent partnership between UPS and Sealed Air Corporation, for example. The two companies have announced the opening of a Packaging Innovation Center in Louisville, Kentucky where they will solve the packaging and shipping challenges of e-commerce retailers but also drive new efficiencies while minimizing waste. This is a critical issue that is material to both their businesses, and by joining forces, are finding ways to solve an environmental challenge while improving their bottom lines.

  1. Publicly support smart climate policy

I can’t stress how critical it is right now for business leaders to move beyond their comfort zones and make their voices heard on smart climate and environmental policy. If you want to be a sustainability leader, continuing to hoe your own garden is no longer enough.  You need to align your strategy, operations, AND advocacy.  We know that environmental safeguards drive innovation, create jobs, and support long-term strategic planning.

The good news is leading voices are chiming in, from CEOs signing an open letter to Trump to more than 1,000 companies signing the Low-Carbon USA letter, in favor of environmental policies.

Some companies like Tiffany & Co. are also taking a public stand on their own. The company used its usual ad position in the New York Times to tell President Trump directly that Tiffany is backing policies that will lead us to a clean energy future.

The Way Forward

Taking the leadership mantle is never easy, but now is the time for every corporate leader to get off the sidelines and into the game. There’s plenty of room for more leaders like Polman who are ready to address climate change head-on, creating opportunities for economic growth, new jobs, and a cleaner future.  Will your company be next?

Follow Tom Murray on Twitter: @TPMurray

6 ways restaurants can fight food waste (and how you can help)

By engaging consumers, clarifying date labeling, and promoting composting, grocers, supermarkets and food companies can play an important role in cutting food waste. But did you know that an estimated 85% of food waste occurs at consumer-facing businesses and homes?

In the restaurant and food service industry, food loss occurs due to inefficiencies, pressure to offer extensive menu options, large portions and consumer culture. According to a study, 4-10% of food purchased by restaurants becomes kitchen loss, both edible and inedible, before reaching the consumer. Once the plate leaves the kitchen, diners typically leave 17% of meals uneaten and 55% of these potential leftovers are not taken home.

All this uneaten food comes with a high cost, both for your wallet and the planet:

But, by working together, restaurateurs (and their customers) can increase efficiency, save money and reduce food

waste.  Here are 6 ideas for restaurant owners, some fairly obvious, others as a result of emerging technologies or innovative practices:

  1. Limit menu items to optimize inventory management. Extensive menus require more inventory on hand at all times and could lead to greater waste.
  2. Offer reduced portion size options. Many national chains such as TGIFridays, Au Bon Pain, Maggianos and Cheesecake Factory, have begun offering small plate options to reduce waste.
  3. Use waste audit software such as MintScrape to identify waste sources.
  4. Find alternative uses for surplus food. One app, Too Good to Go, connects users to restaurants offering discounts on surplus food before closing or throwing it away. The app will be available in the U.S. in 2018.
  5. Get creative. Find ways to reuse food in creative and innovative ways. Restaurant owner Sean Telo of Brooklyn 21 is turning food waste into his Sunday tasting menu. Some recent items on the menu have included mozzarella butter, roasted eggplant puree served with biscuits, and pizza with lamb bacon, cheese, and honey.
  6. Look to best practices for ways to improve efficiency and reduce overall costs.

    Theresa Ehrlich, Project Coordinator, Supply Chain

What can customers do?

  • First, vote with your wallet by supporting local businesses and national brands committed to reducing food waste.
  • Next, when you're patronizing those businesses, be more conscientious of your ordering choices.
  • Finally, take leftovers home for a late night snack or cheap, easy lunch.  Brown bagging it can mean a greener planet!

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.

 

Now trending in global business: collective action on deforestation

edf-business-of-food-blog-graphic_shelton-grp_12-7-16With U.S. policy engagement on climate action in limbo, the rest of the world is marching forward. As major CEOs and political leaders gathered at the recent World Economic Forum (WEF) in Davos, Switzerland, clear support was shown for creative investment in clean energy, sustainable development and other climate change mitigation practices.

While many ideas were discussed, however, one topic emerged as both a driver of climate impact and an opportunity area for huge climate benefits: deforestation.

Two major initiatives around deforestation were launched at the WEF:

A fund to catalyze private investment in deforestation-free agriculture was announced by the Norwegian government, the Sustainable Trade Initiative (IDH), UN Environment, the Global Environmental Facility, and many other supporters. Their goal? To help fund sustainable intensification of agriculture in jurisdictions which are effectively working toward reducing deforestation. The fund will be operational by middle of 2017 and aims to protect over 5 million hectares of forest and peatlands through its projects by 2020. 

Norway pledged up to $100 million, with a capitalization goal of $400 million from other donors and private sector partners. The model aims to engage even more private sector financing, for a total investment of $1.6 billion by 2020. The Tropical Forest Alliance 2020 and major food giants like Carrefour, Marks & Spencer, Mars, Nestle and others are expressing support. Unilever is the first corporate leader to commit funding, with a pledge of $25 million over the next 5 years.

A plan to use big data to monitor and trace the raw materials in major corporations’ supply chains. Led by the World Resources Institute, the initiative has major support from food companies such as Bunge, Cargill, Walmart, and others, with a total combined value of $2.9 trillion.

The goal is to build a decision-support system to help companies track progress and real-time challenges associated with their deforestation commitments. The tool will enable corporations to make real-time decisions about geographies to prioritize in their deforestation reduction work, and get alerts when illegal activities are happening in those regions. While the tool is still in very early stages, the future could be bright.

Deforestation-free sourcing? There’s an app for that!

Deforestation_in_Panama

Two initiatives… powerful trends

So: what do these two initiatives—one helping to ensure that farming already-cleared land becomes more productive, and one helping companies shed light on the complex, murky labyrinth of their global supply chains—tell us about emerging trends in global climate leadership?

  1. Forests matter: Stakeholders understand the importance of forests for climate and supply chain stability. The impressive list of participants and lofty goals show that forests have become part of the main stage for how to address climate change globally. Deforestation contributes about 15% of greenhouse gas emissions annually, but can also be a major carbon sink if managed appropriately. Corporations understand that forests are vital for reducing reputational risk in product lines, ensuring stable weather patterns that can produce viable crops into the future, and increasing the resiliency of major geographic regions against drought and flooding. These new commitments indicate that action on forests as part of the climate dialogue are here to stay.
  1. Collective action is the right tool: Companies see the value in working collectively on effective solutions for deforestation reduction. Corporations know that there is significant risk in not engaging effectively on forests, both for the climate and for their supply chains. But the more challenging question to date has been: how? Over 350 companies have made public commitments to reduce deforestation related to major agricultural commodities in their supply chains. However, only one-third of these companies report on how they will reach these goals. These two new initiatives show the value of collective action between companies, non-profits,
    Katie Anderson, Project Manager, EDF+Business

    Katie Anderson, Project Manager, EDF+Business

    and governments to engage effectively in the multi-faceted challenge of deforestation-free sourcing. The days of working in silos, simply along supply chain boundaries, are no longer the most effective strategies. Working together provides new, creative solutions that can have an impact across entire regions rather than solely withinthe boundaries of sourcing relationships.

  1. There is still much to be done. While these initiatives are important signals of major trends within the deforestation space, they are still only in their infancy. Time will tell if the stakeholders engaged will be able to actualize the ambitious goals and creative thinking embedded in these ideas.

But, I’m optimistic. What emerged out of Davos tells me that the collective work of these major corporations can get us to where we need to go: productive, economically viable agricultural supply chains without destroying critical forest habitat upon which we all rely.

Will the U.S. join this trend toward collective action? The jury is still out on that one.

 

 

No “alternative facts” needed: leading on sustainability is smart business strategy

A Businessman is looking out the window in a modern panoramic meeting room in New York. The concept of the meeting of the Board of Director of the huge transnational corporation.

For the people who dedicate their lives to helping keep the planet livable, it’s hard to wrap one’s mind around our new weird, warped, post-election world. Every day seems to bring some new government official denying facts and science (aka reality), or doing unthinkable damage to the suddenly-less-venerable institutions they now lead.

As someone who has a 20-year track record of working side-by-side with the private sector to create positive environmental change, I can just imagine how anxious business executives must be feeling these days. The specter of a three a.m. tweet from the White House demanding that they run their company according to a Presidential whim, rather than the realities of the global marketplace (or the expectations of shareholders), can make for a lot of sleepless nights.

Unlike certain “business-executive-Presidents", however, real CEOs have to be fact-driven.

And the forward-thinking executives—the ones who are thinking hard about the long-term growth, profitability and resiliency of their companies—are well aware of the facts. They know that human-caused climate change is real, and carries with it huge costs. Executives selling food grown in rapidly changing landscapes and/or products dependent on materials from across the globe aren’t playing in a fantasy world where climate change is a “hoax invented by China.”

And they know that how we deal with climate change will determine whether we will be a driver or a destroyer of business value. As a peer-reviewed study in the journal Nature recently found (and the New York Times reported): "even if the world is able to stave off an increase in atmospheric temperatures of 2 degrees Celsius or 3.6 degrees Fahrenheit — a goal agreed to as part of the Paris deal — climate change could wipe out $1.7 trillion worth of global financial assets."

So, I’m hopeful that, at least in terms of sustainability, the rational decisions being made on Wall Street will act as a counter-balance to what appears to be erratic decisions coming out of Washington. Consider just a few of the recent announcements and actions of the private sector:

  • In just the past 3 months, Google, Microsoft, Pepsi, Smithfield Foods, Walmart and many others have continued to lead the way and prove what’s possible through bold, science-based goals, investments in clean energy and expanded efforts to drive down emissions in their operations and supply chains.
  • At the recent World Economic Forum (WEF) in Davos, Unilever CEO Paul Polman said “to make America great again, climate action is very logical. This is a very convincing story for job creation and economic growth.” My colleagues at EDF Climate Corps back this up with data; the sustainability sector is booming with jobs that 1.) can’t be outsourced, and 2.) are readily available in all fifty states.
  • A WEF report on the future of retail talks about “the golden age of the consumer” and the implications and opportunities that are created for sustainability by addressing how goods are delivered—what is called the “last mile of delivery”—and how products are packaged.
  • Commenting on that same report, Walmart CEO Doug McMillon pointed out that sustainability will impact retail in ways far beyond logistics and packaging: in this age of social media sharing, the push for transparency in supply chains will be customer-driven. McMillon knows that “retailers will only survive if their business creates shared value that benefits shareholders and society.”
  • Finally, in a recent op-ed entitled Why Walmart is doubling down on its commitment to climate change, Walmart board member Rob Walton, gave a simple answer: because it’s good for business! “We set [our climate goals] because we wanted to help address climate change and improve lives, while also strengthening our company and reducing expenses,” he said. “We thought it would be a win-win: good for society, and good for Walmart.  Eleven years later, that's exactly what we've seen.”

    Elizabeth Sturcken, Managing Director, EDF+Business

    Elizabeth Sturcken, Managing Director, EDF+Business

That’s a long list—and one that adds to the mounting evidence that corporate America “gets it”:

momentum for business leadership on sustainability is here to stay. Which is in no way surprising, because after my many years of working with business, I’ve seen firsthand the immense value creation that comes with moving forward—not backward—on environmental issues.

So, for all that has changed in these times of “alternative facts,” those who care about having a livable, thriving planet can feel confident that they have a powerful ally in business. Because when it comes to our climate, our health and our planet itself, if we’re not making progress, we’re losing.

Food waste, guilt and the millennial mom: how companies can help

edf-business-of-food-blog-graphic_shelton-grp_12-7-16I spend a lot of time these days thinking about food waste.

Why? First, I’m the mother of a toddler who oscillates between being a bottomless pit, easily cleaning her plate, to being a picky eater who only takes a couple of bites before the bulk of her meal ends up in the trash.

Second, I’m married to a chef who, because he’s a smart businessman, runs his kitchen with the precision of a comptroller: wasted food means lost profit, so every scrap of food is utilized wherever possible.

Finally, I interface almost daily with Walmart, the world’s largest grocer. Walmart recently pledged to root out 1 gigaton of greenhouse gas reductions from its global supply chain, and I’m certain that food waste will play an integral part in reaching that goal.

But before you conclude that I’m an outlier—some sort of obsessive, “food waste weirdo”— a recent study shows that I’m not the only one struggling with this issue:

Now we all know that just because one feels guilty about something doesn’t mean one’s behavior will change.  Cost, however, is a frequent driver of behavior, so consider these numbers:

In other words, 2.5-4% of the 2015 US median household income is being thrown away! That’s bad news for our wallets—and our planet (NRDC estimates that food rotting in landfills accounts for 16% of U.S. methane emissions).

So it’s a no-brainer that wasting food serves no one’s interests.  What’s not so clear is: what can be done about it?

A business opportunity… with a coveted consumer

This is where I see a real opportunity for grocers—like Walmart—and the food companies that fill their shelves. For the most part, these companies are talking non-stop these days about how to win over the most coveted customer of all, the “millennial mom”.

Inviting millennial moms to be partners on eliminating food waste could be the perfect strategy. They jenny_helen_expertare young (meaning they have years of brand loyalty ahead of them), cost-conscious and environmentally engaged; saving them money while alleviating their food waste guilt is a clear win-win.

I’m not saying this will be easy; that same study reveals that real barriers exist:

However, while conceding that it’s difficult (if not downright un-wise) to portray millennial moms as a monolithic group, marketing profiles of these women consistently portray them as, a.) hungry for information about products; and b.) willing to take action on issues… but only if roadblocks or impediments have been removed.

So, grocers and food companies, how can you burnish your brand with millennial moms while making a real dent in food waste?

Step number 1: engage and educate

Run marketing campaigns, both in-store and out, that will inform these coveted customers on:

  • Proper handling and storage of their food to minimize spoilage; and
  • How to fully utilize their food purchases. In other words, teach them to think like my husband, the chef, so they can make use of scraps and leftovers.

Step number 2: make it easy

Design and implement initiatives that make for fun, easy adoption:

  • Clarify date labeling so that perfectly good food isn’t perceived as bad. The USDA just requested that companies switch to “best if used by” language to give consumers more accurate guidance.
  • Suggest meals that enable moms to buy just what they need—and use it up. There’s a real business opportunity here: did you know that, as of 4 pm each day, 80% of mom’s don’t know what’s for dinner that night? Suggesting recipes that will be totally consumed will make her life easier!
  • Inspire composting (and discount composters)… their garden will thrive because of you! Or help make curbside composting possible like in Boulder, Seattle and San Francisco.
  • Be creative… people love to compete! Only 13.5% think that their household wastes more than their average neighbor. Help people understand that they may in fact be wasting way more food and money than their friends, family, and neighbors to motivate them to do something about it.

In the meantime, I will carry on, hopeful that while my daughter learns to clean her plate, an array of giant food companies and grocers will take up the mantle of tackling food waste on a massive scale.

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.

liz

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.

 

Energy Management Then and Now: What You Need to Know About the Latest Trends

Liz Delaney, Program Director, EDF Climate Corps

In 2008, EDF launched Climate Corps, an innovative graduate fellowship program committed to jump-starting investment in corporate energy efficiency.

Now, after almost a decade of embedding over 700 fellows inside large organizations across all sectors—public, private and non-profit—we’ve taken a step back to survey the broader landscape.

What did we find? Energy management today looks very different than when we started out. As large organizations have shifted to take on more sophisticated approaches, significant advancements in management strategies have emerged.

And for those of you toiling away on a daily basis in the complicated world of energy management, we’re pleased to offer you a mile-high view of how your efforts fit into a larger picture of progress.

In our new report, Scaling Success: Recent Trends in Organizational Energy Management, we examine the efforts of more than 350 large organizations over eight years. Through careful analysis of over 3,000 energy project recommendations, we have identified five key trends:

  1. Energy efficiency was just the beginning. Companies have become more strategic and sophisticated about energy management over the years. Equipment upgrades and retrofits have paved the way for higher-level energy analyses and plans, integration of clean energy technologies and more.
  1. Organizations are turning one win into many. By scaling up energy efficiency projects to be multi-site and multi-facility, companies have clearly moved past the “pilot” or “one-off” stage and are now deploying efficiency measures at scale.
  1. Companies face front-loaded costs, but are realizing greater ROIs on energy projects. The days of the low-cost/no-cost energy efficiency improvement may be over. Projects now require substantial upfront capital investments, but these projects deliver more value.
  1. Energy projects now pack more environmental bang for the buck. As technologies have improved and companies have become more strategic about how they direct spending, investments in energy efficiency are providing significantly more greenhouse gas reductions per dollar spent than they did eight years ago.
  1. Strategic energy management is still hard work. Despite progress made over the years, corporations, municipalities and other large institutions still face significant barriers to project implementation.

To distill it down even further: strategic energy management has evolved from a one-off initiative into an organizational imperative. Despite the barriers, companies are scaling up their efficiency efforts, integrating clean energy more regularly and using data to drive their smart energy strategies.

If you’ve been a part of this evolution (or revolution?), congratulations! If you haven’t, now is the time to take advantage of all these lessons learned and get on board.

Either way, we invite you to learn more about our key takeaways, read our full report and keep moving forward on accelerating your clean energy projects.