I spend my days thinking about how companies can use their market power to improve our environment and health. Companies are motivated to lead on sustainability for a number of reasons including cost savings, risk management and improved reputation. Additionally, the stakeholders companies most want to impress are their customers and shareholders, which studies show care deeply when it comes to sustainability. In fact, in a 2017 Morgan Stanley survey, 75 percent of investors said they are interested in sustainable investing and 71 percent believe companies with leading sustainability practices may be better long-term investments. Given this, companies are increasingly talking about their sustainability efforts.
An example of such a company is Walmart, who recently hosted its annual shareholder meetings in the form of a formal business meeting and an event for associates and shareholders. As a sustainability professional, I was pleased to see both meetings highlight sustainability as a key strategy for Walmart moving forward.
In a rare move by two fierce competitors, Walmart and Target brought together stakeholders from across the U.S. beauty and personal care (BPC) industry in 2014 to drive safer, more sustainable products. This was bold considering that there was no consensus on the basic definition of product sustainability in an industry estimated at over $80 billion. After three years, a core group of eighteen organizations across the BPC value chain, including the Environmental Defense Fund (EDF), released the first science-based scorecard of 32 key performance indicators (KPIs), marking the most sweeping market demand signal for safer and more sustainable beauty and personal care products yet.
Why does this matter?
Beauty and personal care consumers increasingly care about the health and environmental impacts of the products they buy. A vast majority of 87 percent of consumers globally prefer products with “no harsh chemicals or toxins.” Millennial women are also driving demand for more sustainable products. To address this gap, Forum for the Future worked together with The Sustainability Consortium to facilitate the three year mission to “shift the beauty and personal care product sector into a more sustainable, thriving and resilient industry that serves the needs of people and planet both now and in the future.”
Last week The Home Depot published an update to their Chemical Strategy that expands their commitments to now cover household cleaning chemical products. They are asking suppliers to remove and exclude nine chemicals from these products by 2022. This commitment builds on their strategy first published in October 2017, which targeted chemicals of concern in flooring, carpet, insulation, and paints. Adding cleaning products to that portfolio builds on The Home Depot’s commitment to tackle products that impact the quality of indoor air. This commitment is important considering we spend 80% of our time indoors and many of the chemicals we are exposed to inside are linked to the development of asthma, among other health issues.
The Home Depot’s updated strategy is a move in the right direction for cleaning products. While they previously highlighted environmentally preferred products through the Eco Options® certification program, this commitment will impact all cleaning products sold in stores and online. This means more consumers will be able to bring safer products into their homes.
Retailers are increasingly aligning to eliminate or reduce these 9 harmful chemicals
Credit: Flickr user Mike Mozart
What can happen when the CEO of the world’s largest retailer says publicly that making the world better is more important than sales? The answer: a gigaton.
I was able to attend Walmart’s annual Sustainability Milestone Summit for the first time last month in Arkansas, and as EDF+Business’ new lead on climate change and energy issues in the supply chain, I have to say it was an incredible experience. At work was a tangible display of EDF+Business’ supply chain theory of change – that some companies have the power to move markets, and if they choose to, can use that power to accelerate progress on climate change.
Last week hundreds of representatives from global companies and leading NGOs met in Bentonville, AR for Walmart’s annual Sustainability Milestone Summit. The theme of the meeting was Project Gigaton, the most ambitious and collaborative effort ever to reduce a billion tons of emissions from the global supply chain over the next 15 years. At the meeting Walmart announced 20 million metric tons of greenhouse gas emissions reductions from suppliers, and noted that 400 suppliers with operations in more than 30 countries have now joined Project Gigaton by setting ambitious climate targets.
One powerful theme that emerged from the meeting was the importance of technology. Project Gigaton is inspiring targets that raise our ambition, but increasingly technology is how we will deliver on these commitments and measure progress.
A new EDF survey of more than 500 executives confirms that game changing technology innovations are empowering private sector leaders to improve business and environmental performance – and to accelerate sustainability efforts across global supply chains.
Photo: Walmart China
I am just back from a week in Beijing, where Environmental Defense Fund was part of Walmart’s announcement of a new goal to reduce greenhouse gas emissions in its China supply chain. Had I not been there in person, I’m not sure I could have accurately comprehended how essential that this goal – a 50 million metric ton (MMT) reduction by 2030 – must be followed by swift implementation.
That’s because every day in Beijing felt like the worst day in San Francisco, my home, when last year’s horrific wildfires made our eyes and lungs burn. “Normal” in Beijing means not being able to see down to the end of the block, and sharing the crowded streets with commuters, parents and children all covered by facemasks.
As the Trump administration rolls back environmental protections that could harm human health for decades, it’s increasingly up to businesses to lead the way, charting the course to a future that includes both a thriving economy and a thriving planet.
Leading the way requires first setting ambitious, public targets like the over 340 companies taking science-based climate action and 90 that have approved science-based targets; collaborating with partners across the value chain for maximum scale and impact – Walmart’s Project Gigaton, a collaborative effort to reduce 1 billion tons for emissions, is a powerful example; and, supporting smart climate and energy policy
BSR’s new sustainability framework closely echoes these leadership approaches and recommends that companies create resilient business strategies that align with sustainability goals. GreenBiz’s 2018 State of Green Business report further supports these and other requirements for sustainability leadership, adding that businesses need to improve reporting on climate risk, impact, and progress towards goals. The We Mean Business coalition adds further calls to action for companies: join the low carbon technology partnerships initiative, grow the market for sustainable fuels and electric vehicles, and take proactive steps to end deforestation by 2020.
Yet currently missing from all of this corporate sustainability leadership guidance is a call for companies to accelerate environmental innovation and deployment of next generation technology – sensors, AI, data analytics and visualization, and digital collaboration – to solve our most pressing environmental challenges.
At Environmental Defense Fund, we believe that environmental progress and economic growth can and must go hand in hand. EDF+Business works with leading companies and investors to raise the bar for corporate sustainability leadership by setting aggressive, science-based goals; collaborating for scale across industries and global supply chains; publicly supporting smart environmental safeguards; and, accelerating environmental innovation.
This is the fourth in a series of interviews exploring trends in sustainability leadership as part of our effort to pave the way to a thriving economy and a healthy environment.
Dave Stangis has dedicated over three decades of his career to steering sustainability and corporate social responsibility (CSR) efforts at two iconic American companies, Intel and Campbell Soup Company. As Vice President of Corporate Responsibility and Chief Sustainability Officer at Campbell, Dave has built the company’s reputation for setting a high bar on sustainability and corporate responsibility in the food industry. Case in point: Campbell was recognized as a top corporate citizen by Corporate Responsibility Magazine for the eighth consecutive year.
Campbell set an ambitious goal to cut the environmental footprint of its product portfolio in half by 2020, which entails reducing energy use by 35 percent, recycling 95 percent of its global waste stream, and sourcing 40 percent of the company’s electricity from renewable or alternative energy sources.
I recently spoke with Dave to learn about his approach to setting big sustainability goals, the role of technology and innovation in building a more sustainable food system, and which kind of beer goes best with a bowl of soup. Below is an edited transcript of our discussion.
Target has joined other retailers on the right path to developing a robust science-based policy for tackling greenhouse gas emissions in its operations and supply chain, creating more momentum toward action on climate by leading companies.
At COP23 in Bonn, Germany, we heard leaders at some of the world’s largest companies share their commitments to step forward on climate issues. This year we’ve also seen American companies like Mars Inc., Walmart, Hewlett Packard Enterprise and Amazon set ambitious goals during a time when our government is stepping back. At EDF+Business, we see time and time again why our world needs healthy environments and healthy businesses in order to truly prosper.
At Environmental Defense Fund, we believe that environmental progress and economic growth can and must go hand in hand. EDF+Business works with leading companies and investors to raise the bar for corporate sustainability leadership by setting aggressive, science-based goals; collaborating for scale across industries and global supply chains; and publicly supporting smart environmental safeguards.
This is the second in a series of interviews exploring trends in sustainability leadership as part of our effort to pave the way to a thriving economy and a healthy environment.
As head of the Smithfield Foods’ sustainability program, Stewart Leeth focuses on animal welfare, employee relations, environmental stewardship, food safety and quality, and community development.
EDF has been collaborating with Smithfield for several years now to help farmers optimize fertilizer applications to grow grain for animal feed – and I’m inspired to see the progress that has been made in this arena. But I think this past year was likely the busiest ever for Stewart and his team at Smithfield after they made an industry-leading commitment to reduce greenhouse gas emissions.