Upping the ante on corporate climate leadership – by a gigaton

With the Trump Administration pulling back on federal climate action, I am heartened to see that U.S. businesses are starting to assert their leadership role in the fight for a cleaner, safer world. Bold leadership is an essential factor for business today — and no company is delivering on this more than Walmart.

The world's largest retailer recently announced Project Gigaton, arguably one of the most ambitious efforts to reduce climate pollution by any U.S. corporation.

With Project Gigaton, Walmart and its suppliers are committing to a ‘moon shot’ goal – removing a gigaton of greenhouse gas emissions from the company's global supply chain by 2030. That's more than the annual emissions of Germany. It's the equivalent of taking 211 million cars off the road every year. In a word, it’s transformational.

Breaking the mold together, then and now

Fred Krupp, President, Environmental Defense Fund

Eleven years ago, I traveled to the top of Mount Washington with then Walmart CEO Lee Scott, and we talked about the company's vast potential to drive environmental progress. Since then, an amazing ripple effect has spread across the entire retail sector. Working together, EDF, Walmart and others have gathered commitments for optimized fertilizer use on 23 million acres of U.S. farmland; eradicated 36 million metric tons of greenhouse gas emissions across the retail supply chain; and improved the health and safety of hundreds of thousands of everyday products like shampoo and laundry detergent. This work is invisible to most, but massive on an environmental scale, and nothing less than trailblazing for how business leadership and legacy is measured.

For the last quarter century Environmental Defense Fund has proven the power of business-NGO partnerships to create wins for both business and the environment. Walmart’s willingness to challenge itself and its supply chain to do better has meshed perfectly with EDF’s pragmatic approach to forging innovative solutions.

Back in 2005, it was uncommon business news when Walmart announced aspirational goals to be supplied 100 percent by renewable energy, to create zero waste, and to sell products that sustain our resources and environment. Neither Walmart nor EDF knew how we’d achieve those goals, but we set off on the journey together and found success along the way.

Walmart is in it for the long haul

For leading brands like Walmart and their suppliers, long-term economics will always outweigh short-term politics. Staying the course on sustainability is motivated by competitiveness, innovation, job creation and consumer demand. Smart business leaders understand that a thriving economy depends on a thriving environment. This is not an either/or choice. By 2050, we will have 9.5 billion global consumers, all demanding more food, goods and services. The commitment to Project Gigaton signals Walmart’s readiness to plan accordingly.

The Project Gigaton challenge is massive, but by working collaboratively, our confidence for success is high. The modern supply chain is responsible for 60% of all greenhouse gas emissions, 80% of all water use and 66% of all tropical deforestation.  This is not a goal that Walmart can do alone. It takes committed collaboration: of NGOs, partners, and an extensive network of suppliers – many leading brands in their own right – to drive reductions from factories to farms to forests, fleets and beyond.

Creating long-term prosperity for business and the environment requires long-term commitment from both business and NGOs. Together, EDF and Walmart have already climbed one mountain, and now we are ready to ascend even steeper peaks. The planet is counting on us.


Follow Fred on Twitter, @FredKrupp


 

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.

 

Sustainable Supply Chains: No More Excuses

ElizabethSturcken-(2)_287x377A question for forward-thinking business executives: if you could do something that would directly reduce more than 60 percent of all greenhouse gas emissions, 80 percent of water usage, and two-thirds of tropical forest loss globally… wouldn’t you do it?

The answer: yes, of course you would!  That’s why you’re forward-thinking!

That’s also why Environmental Defense Fund (EDF) has been working in supply chains (for years) to improve the impacts of the global production and use of consumer goods.

Those impacts are huge. Really getting at them, unfortunately, has not been so easy. The excuse that we’ve heard over and over again boils down to “you can’t manage what you can’t see.”  Basically, while most companies’ impacts are in their supply chain, most businesses have very little knowledge of how those supply chains actually function.  And, the further up in the chains you go, the less visibility there is.

EDF has a lot of first-hand experience with this: after years of on-the-ground work with farmers, our Ecosystems team knows precisely how difficult it is to capture impacts at the farm level.  Despite the on-farm benefits of optimizing fertilizer use in cost savings, reduced greenhouse gases and increased water quality, fewer than 20 % of companies collect this data.

TSC2011lgHow do I know that statistic? Because The Sustainability Consortium (TSC) has just released Greening Global Supply Chains: From Blind Spots to Hot Spots to Action, their first-ever impact report.  It’s full of stunning data about the huge weight that consumer goods place on people and the planet. Since it covers more than 80% of consumer goods product categories, it is the comprehensive way to understand environmental hot spots in global supply chains.

Which means the “no visibility” excuse is now officially over. Read more

Mothers and CEOs: Why Corporate Sustainability Reports Matter

Walmart has just released its report on Corporate Sustainability—the “Global Responsibility Report”.

Nicknamed the GRR, the joke around my office is that “GRR” sounds like a growl—GRRRR. But while its seventy-three dense pages might seem daunting, the GRR is anything but scary. In fact, from my perspective as both a mother and someone with unique access to the day-to-day workings of Walmart, I have to say that it’s a must-read.

Why? Because like all corporate sustainability reports, the GRR tells the story of how big business is—or is not—adjusting their operations to help the planet and its inhabitants.

And by inhabitants I mean you. And me. All of us.

Meet Super-Eco-Business-Mom When new mom JENNY AHLEN feeds her daughter, she may also be pondering this question: how do we feed a global population expected to reach nine billion people by 2050? That’s because Jenny is also EDF’s team lead for their partnership with Walmart, which gives her both a unique perspective and a unique power. She knows the stakes are high for the world her daughter will grow up in. But Jenny is in a position to do something about it. Thus, she spends her days working with the world’s largest retailer trying to figure out the best approach to “fertilizer optimization”: the science behind increasing yields while reducing the environmental impacts of crop production. How did Jenny arrive at this nexus of the nursery and contemporary eco-business?

To all the mothers of the world: like you, I want the best for my child. While there are many things we can’t control about our kids’ world, we do have power over things like what goes in and on their bodies, which toys can help them learn, and how to create a safe and loving environment for them to grow. Knowing what’s in these sustainability reports means knowing whether the stores and brands we choose every day are working with us, or making our job harder.

To all the C-suite executives: See above. Mothers everywhere are starting to demand both transparency and action around creating a healthier world for our kids. We are your customers, and we’re sending you a demand signal to make us happy.  Coincidentally, it can make your business more efficient, more profitable and more resilient—all things that your shareholders will love to hear. Believe me, you want to be able to issue a sustainability report that’s both real and robust.

So if the GRR is Walmart’s report card on global responsibility, how did they do? 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

How 10 Years in the Trenches with Walmart Built an On-Ramp for the Future

ElizabethSturcken-(2)_287x377I'm really proud of the tireless and innovative work that EDF's Corporate Partnership team has done with Walmart. It's been a successful 10-year journey  and I've done a lot of cheer leading over the last decade.

But now I'd like to look forward. Because we still have huge environmental challenges to tackle, and we're still looking to powerful businesses, like Walmart, to model the way toward a sustainable future.

Through our work with Walmart, McDonald's, FedEx and others over the past 25-years, we've seen a framework for corporate sustainability leadership emerge that other companies can use, across industries and around the world.

For EDF, this framework is critical to spreading environmental and business benefits throughout the corporate sector. By sharing best practices, EDF can have impact that extends far beyond the individual companies that are our partners. Read more

How Campbells is Helping to Make Sustainable Growing the New Normal

There’s a lot of momentum in the sustainable agriculture world. We helped Walmart discover that fertilizer runoff is a significant source of greenhouse gas emissions in its supply chain, and they’re now working with suppliers to improve the way grain is grown across the U.S. That’s because half of all fertilizer applied to crops runs off the field, leading to water pollution, aquatic dead zones that kill marine life, and contributing to climate change – since the nitrogen in fertilizer runoff converts to nitrous oxide, which is 300 times more powerful than carbon dioxide.

Major food companies are also recognizing that increased weather variability from climate change can cause supply chain disruptions, that their customers are demanding transparency for how their food was grown, and that it’s in their best interest to meet retailers’ demands for sustainably grown grain.

Campbells

That’s why Campbell’s Soup has focused on growing its vegetables as sustainably as possible, and why its Pepperidge Farm subsidiary is now investing in wheat sustainability in their Ohio and Nebraska sourcing areas.

My colleague Suzy Friedman, director of agricultural sustainability at EDF, recently interviewed Dan Sonke, manager of agricultural sustainability at Campbell’s, to get his take on this unprecedented momentum. Below are the highlights of their conversation on why his company is working with farmers to reduce environmental impacts, what they’re hearing from customers, and about why sustainable grain is becoming the new normal. Read more

Linking Supply Chains and REDD+ to Reduce Deforestation

Two tropical forest conservation efforts have gained momentum in recent years: zero deforestation commitments from the private sector and the policy framework Reducing Emissions from Deforestation and forest Degradation (REDD+). Both efforts are necessary, but not sufficient in themselves to eliminate global deforestation.

Zero Deforestation Zones

Private sector conservation initiatives on individual farms (represented by green trees in the left image) can result in pockets of forest surrounded by deforestation, but Zero Deforestation Zones can conserve forests throughout entire jurisdictions (represented by the green state-wide program in the right image). Credit: Rick Velleu, EDF

In a recently published paper in the Journal of Sustainable Forestry, we find that linking REDD+ and zero deforestation commitments offers a more efficient and effective solution to stop deforestation, which we call Zero Deforestation Zones (ZDZ).

The current state of private initiatives and REDD+

Deforestation, which is responsible for 15% of global greenhouse gases, is primarily caused by conversion for the production of four commodities in Brazil and Indonesia: beef, soy, palm, and timber products. To address this urgent problem, companies that control more than 90% of soy purchases in the Amazon, around half of cattle slaughter in the Brazilian Amazon, and 96% of palm oil trade globally have committed to stop deforestation. Read more

Powerful Business: The Lever for Change Across the Supply Chain

Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.
-Archimedes

Sometimes when a problem seems too big, too ugly and too complex to handle, you need a lever to help move things along.  All of the big environmental problems we currently face fall into this category.

When it comes to tackling our planet’s biggest problems, there is a full spectrum of approaches and many different leverage points. For me, the most important lever is business. A thriving planet and a thriving economy don’t have to be at odds. EDF is focusing on helping businesses make their supply chains cleaner, more efficient and more profitable.

Working with powerful business has been a cornerstone of EDF’s approach ever since we launched our 1st partnership with McDonald’s 25 years ago. Since then, we have kick-started market transformations in fast food with McDonalds and Starbucks, shipping with FedEx, retail with Walmart, and private equity with KKR. With each partnership, we’ve worked to create new, sustainable demand signals that extend across the supply chain. When powerful business speaks, suppliers listen. EDF is helping the most impactful companies commit to selling sustainably-produced products, encouraging every supplier and producer contributing to those products to also adopt more sustainable practices. Read more

5 Things Companies Can Do to Ensure Safer Products in the Marketplace

Tens of thousands of chemicals are used to make consumer products, with more entering the marketplace each year. Many chemicals are now detected routinely in indoor air, food, drinking water, house dust – and our bodies. Research has linked certain chemicals to negative health impacts ranging from cancer to abnormal development of our reproductive systems, while most chemicals lack adequate health and safety data entirely. Too often harmful substances like lead, asbestos and toxic flame retardants persist in the market – and environment – for years before action is taken. We need a new marketplace paradigm. We need companies, from chemical makers to consumer product manufacturers to retailers, to be leaders in fostering the healthy, sustainable world we all deserve.

Why companies should lead

Resiliency is the ability to successfully adapt to anything that can disrupt your system or way of life. It’s a concept that applies in the physical world and in the business world. Leading on safer chemicals improves a company’s ability to bear chemical regulations, product liability occurrences, product recalls, and other costly externalities typically not factored into the chemical selection process during product development. Resiliency helps a company mitigate costs and stay competitive.

To maintain market longevity, companies need to keep a pulse on consumer needs and regularly innovate to meet those needs. Today’s consumers want to know what’s in their products, and they want safer ingredients. Increased innovation and uptake of safer ingredients in new products can help companies meet consumer demand, stay relevant, and achieve competitive advantage. Read more