Why the world's largest pork producer is breaking new sustainability barriers

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.

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Cyber Monday you’ve met your match. What China’s consumerism means for our planet.

Happy Cyber Monday everyone.

For those of us who didn’t break the bank on Black Friday, we’re filling up our online shopping carts with Cyber Monday sales – seeing if we can break new records of consumerism. I know I am.

Last year’s Cyber Monday was the biggest day in the history of U.S. e-commerce, totaling $3.45 billion in online purchases. That’s an enormous amount of money. But it’s just a drop in the bucket compared to the $25 billion spent on China’s Singles Day – a recording-breaking day for sales.

What started as an anti-Valentine’s day holiday for single Chinese people, Singles Day makes our Black Friday and Cyber Monday look like any ordinary day of shopping. Singles Day has become the world’s largest online shopping holiday. When you look at China’s population, it’s no surprise they out-shopped us. The economy will be made up of 500 million middle class consumers in the next five years – an exploding population – all of which are embracing the convenience and material abundance of consumerism.

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Scope 3… the serious path towards sustainability

More and more companies are making public commitments to cut greenhouse gas emissions outside of their own operations. Why? Because compared to scope 1 and 2 emissions (from direct activities), avoiding scope 3 emissions can have the greatest impact on a corporate footprint.

The numbers are clear: the majority of GHG emissions come from indirect activities, both upstream and downstream, in the supply chain. In fact, for most of consumer goods products manufacturing, scope 3 emissions account for over 70% of overall GHG emissions. Included is everything from purchasing raw materials to end of life treatment.

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Why businesses and state governments aren’t waiting for federal action on chemicals transparency

As a Trump Administration appointee tries to dismantle EPA’s credibility as a guardian of public health and the environment, other actors have been stepping up. We recently examined retailers leading the way on removing chemicals of concern from the marketplace – but there has also been significant activity from state governments and companies to increase transparency about the chemicals we are exposed to every day and to empower consumers to make informed decisions about their product purchases.

Regulatory steps in the right direction

Government activity has recently focused on cleaning products, for good reason as the contents of these products are typically the biggest mystery for consumers.

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Big brands drive change in China’s manufacturing hub

In just a few days I, along with EDF+Business’ Xixi Chen, will be traveling across China to talk with companies and students about corporate energy management. The trip comes one week after China’s “Golden Week”—the country’s eight-day-long national celebration. Each year, the holiday marks the largest week for tourism, bringing in over 700 million tourists at home and abroad to the nation’s streets and roughly $87 billion in revenue.

But while the streets are bustling, China’s industrial and manufacturing powerhouse comes to a standstill. This is a mandatory national holiday for all citizens, which means, for the entire week, almost everyone is off of work, businesses and factories are shut down, shipping lines are put on pause, and companies with suppliers in China are busy preparing for a week of silence.

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ROE (Return on Environment) is the new ROI: how sustainability drives business success

Comparing the themes of Climate Week 2016 versus 2017 provides a telling picture of the state of climate affairs. “America Means Business: US Leadership in a post-Paris World” was last year’s focus, while this year is all about three words: “Innovation. Jobs. Prosperity.”

It has been a remarkable year for climate action – in the absence of federal oversight and leadership, we’ve seen a major shift towards city, state and business leaders becoming the standard-bearers for the environment and the economy. With the release of Fortune’s Change the World list, it is obvious that the bar for corporate leadership has been raised even further. Companies that previously stayed mute on environmental and social issues now speak out; not as an anomaly but as a defining factor of their business.

The expectations of today’s stakeholders – investors, employees, consumers, communities – demand a higher, more visionary level of sustainability leadership. Corporate leaders who put their money, and actions, where their mouth is on environmental and social issues are driving innovation, creating jobs, and gaining a new competitive edge for their businesses. Read more

Four ways businesses and cities will get us to a low-carbon future

A little over a week ago, 20 of the world’s power houses came together for the Group of 20 summit. It was disappointing to see Trump hold firm to his decision to exit the Paris Agreement while 19 world leaders publicly reaffirmed their commitment. But something good has come out of Trump’s climate defiance, and I bet it’s not the reaction he was looking for: climate action.

The inability for the federal government to agree on climate doesn’t stop momentum– it fuels it. An enormous swell of energy and activism has swept across America. Businesses, states, cities and citizens are stepping up, creating plans to pursue lower emissions on their own.

There are now over 1,400 cities, states and businesses that have vowed to meet Paris commitments, sending a message that “we’re still in” and making enormous strides on devising climate solutions that keep the agenda alive. EDF Climate Corps' ten years of experience gives us an inside look into how companies, cities and non-profits are taking action.

Here are four ways that the private and public sector are preparing for a low-carbon future:

1. Scale energy efficiency. The low-hanging fruit of energy efficiency has for the most part been picked. It’s time to take things to the next level by focusing on larger-scale, portfolio-level energy efficiency projects. Last year, Shuvya Arakali worked with American Eagle Outfitters to recommend HVAC retrofits, and other energy efficiency measures that could be deployed across the store portfolio and save thousands of metric tons of CO2e each year.

Manager, EDF Climate Corps

2. Invest in clean, renewable energy. Evaluate opportunities for both onsite and offsite renewable energy projects, like PPAs and VPPAs. Other procurement options includes mechanisms like green tariffs. The City of Fresno enlisted EDF Climate Corps fellow Katie Altobello-Czescik to help promote clean, smart energy initiatives including renewable generation, battery storage and demand response. Together, they worked on advancing a community-scale energy project aimed at helping local businesses and creating a net zero neighborhood.

3. Make a commitment—then execute. Be willing to set big goals and develop ambitious GHG-reduction targets that are founded upon science. Once they are set, create strategies to meet them. In 2015, Mayor Bill de Blasio set a goal to reduce New York City’s greenhouse gas emissions by 80 percent by 2050. The New York City's Mayor's Office of Sustainability has deployed multiple EDF Climate Corps fellows to help develop and advance strategies to meet these ambitious goals.

4. Go beyond your own company. Tackling climate change requires looking at the big picture, more than what’s happening within internal operations. Consider your supply chains by engaging suppliers and together identifying ways to reduce scope 3—both upstream and downstream—GHG emissions. This past spring, Walmart set a goal to remove 1 gigaton (1 billion tons) of GHG emissions from its supply chain by 2030. Companies throughout Walmart’s supply chain now have the directive to go beyond “business as usual” to focus on emissions reductions in their operations.

It’s difficult not to feel discouraged when our national climate policy is moving backwards instead of forwards. But that doesn’t mean the rest of the country is. United States’ leadership will continue, albeit in this new form, and businesses and cities will keep continue to advance climate solutions through smart policy, forward-thinking business and cutting-edge innovation.


Follow Ellen on Twitter, @ellenshenette


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U.S. out of Paris? Time for companies to find the next LED lightbulb

As I’m writing this blog, the news is breaking that President Trump may pull out of the Paris agreement. Which makes my story about Walmart and product innovation all the more relevant.

My relationship with Walmart started over six years ago, working towards their 20 MMT greenhouse gas (GHG) reduction goal. After some trial and error, and an exhaustive scan of greenhouse gas hotspots, it became clear that we would need to attack every point of the product lifecycle (including things like fertilizer optimization for crops and factory energy efficiency). Little did we know at the time that promoting energy-efficient products to Walmart shoppers–particularly LED lightbulbs–would prove to be so important to reach the goal in 2015.

As Walmart sets out on its next ambitious goal to remove 1 gigaton (aka 1 billion tons) of greenhouse gasses (GHGs) from the supply chain, I can’t help but wonder what the next game-changing product will be?

I don’t think the solution will be as easy as another LED lightbulb, but rather a series of disruptive innovations around how products are designed, sold and treated at the end of use.

Design: how to reduce impacts from the start 

Last month’s event focused on climate impacts, which largely come from the materials and processes used to manufacture and transport products.  Design changes can play a big role in reducing those impacts. It can also transform products into circular products, with their materials being recaptured by the economy or the planet to live another life as a component of a new product.

Point of Sale: how products are sold

The face of retail is shifting – not just from brick-and-mortar stores to online retail, but from an economy dominated by retail-to-customer relationships to one with more peer-to-peer transactions – just look at Airbnb and Lyft. This “sharing economy” has the potential to displace the number of new items needed as people increasingly use what has already been manufactured, sold and used. This can have big environmental benefits – sort of like eliminating food waste, but for general merchandise.

It hasn’t really taken off yet for retail, but companies like POSHMARK and ThredUp – where you can buy and sell fashion – and Spinlister – where you can rent someone’s bike – are working to change that. This will become more prevalent over time, especially as millennials have shown a preference for owning less things.

End of life: how to extend the life of a product

The sharing economy has the potential to delay a product from coming to its end of life as quickly, but once it does, innovative companies like Stuffstr can help consumers better manage what they do with their products by making resale, donations, recycling just as easy as throwing things away.

And, Stuffstr isn’t just an innovation that benefits end-consumers, but one that can help retailers understand how consumers use, and part with, the products they buy – creating opportunities to stay relevant as the sharing economy continues to grow.

What Now?

It’s clear that Walmart’s goal will catalyze innovation in how we think about products and their use. The GHGs that go into creating, selling and disposing of products is too great to ignore. I look forward to seeing which Walmart suppliers step up to the challenge.

 


Follow Jenny on Twitter, @JennyKAhlen


Additional Resources: Supply Chain Solutions Center


 

From energy efficiency to clean energy: 10 years of EDF Climate Corps

 

Ten years ago, EDF found itself head-on with a challenge: how to effectively jump-start corporate energy efficiency initiatives. We started EDF Climate Corps, a summer fellowship program, with the theory that a small, intense injection of effort could catalyze investment in energy efficiency, giving companies the opportunity to capitalize on the associated cost and energy savings. That was ten years ago.

Since then, more than 800 fellows have been placed in over 430 organizations to advance corporate energy management.

Liz Delaney, Program Director, EDF Climate Corps

We have seen companies use their help to go beyond single-site projects and scale energy efficiency across their entire portfolios of facilities. This growth is representative of a vibrant and growing industry. Deploying energy efficiency has become a mainstream practice, and an entire ecosystem of service providers has cropped up to support these efforts. Employment in this market has skyrocketed and energy efficiency now represents the largest source of clean energy jobs in the country.

But the corporate energy challenge doesn’t stop there.

While energy efficiency continues to be an important way for companies to reduce carbon emissions from electricity, it can only get them so far. Alongside scaled-up efficiency efforts, holistic, strategic energy management plans that include clean energy generation (onsite and offsite) must be developed–and many companies are stepping up to the plate to do so.

Today we observe companies asking fellows to explore clean energy procurement options, dig through various state and federal incentive structures and effectively build the business case for investing in new, clean generation sources.

Today, clean energy is where energy efficiency was for companies a decade ago.

Building on the success of 10 years of fellowships, we are excited to announce that this summer over 100 new EDF Climate Corps fellows from top universities in the U.S. and China will help companies such as McDonald’s, Boston Scientific, JPMorgan Chase and Walmart meet their carbon and energy reduction goals. Fellows will scale energy efficiency, deploy clean energy technologies (1/3 of our class of over 100 fellows will work on clean energy solutions!), help companies set strategies to achieve science-based GHG goals, and even dig into carbon reductions in supply chains. They’ll also set themselves up for lasting careers in clean energy, energy efficiency and sustainability, alongside four million other Americans. We know that our network of over 1500 sustainability-focused professionals will help them along the way.

Corporate commitments for reducing carbon emissions are only getting stronger. Despite federal rollbacks in environmental protections, companies are continuing to navigate clean energy innovation, and we’re excited to see how the next 1o years of EDF Climate Corps will help drive this momentum.


Follow Liz on Twitter, @lizdelaneylobo


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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