July 2011

Climate change is here, folks, and I’m not saying so because it’s hot outside. This is a big worry, or at least it should be.

But big problems create big business opportunities: A California biotech company called Arcadia Biosciences has set out to help farmers do their part to slow down the process of global warming and adapt to a resource-constrained world–by developing crop varieties that require less water, tolerate salty conditions and use less nitrogen fertilizer.

This photo shows two varieties of rice. On the left is rice engineered for nitrogen use efficiency (NUE) by Arcadia, on the right conventional rice. In laboratory tests, using typical applications of nitrogen fertilizer, the NUE rice, as it’s known, is substantially more productive. When you can grow more food using the same inputs of land, water and fertilizer, everyone–farmers, consumers, hungry people and anyone who cares about CO2 concentrations in the earth’s atmosphere–is better off.

So, at least, says Eric Rey, the founder and CEO of Arcadia. Others will disagree because Arcadia deploys genetic-engineering technology that some (many?) environmentalists oppose. But when we met last week in Washington, Eric told me that he considers himself an environmentalists and, in fact, it was his concern about disappearing species, pollution and climate issues that led him to start the company back in 2002.

The company’s purpose, Eric said, is to “use the the tools of plant biotechnology, and point them at saving the environment.” When developing a new crop variety, he said, “if we can’t put our fingers on an environmental benefit or a human health benefit, we won’t do it.”
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Maybe it’s time to stop talking about climate change.

And to stop pushing for comprehensive “climate policy.”

That’s what New York’s mayor, Michael Bloomberg, did last week when he gave $50 million to the Sierra Club to fight coal plants. Coal plants should be shuttered, he said, because they endanger public health, pollute the air, deposit mercury in lakes and contribute to asthma. “This is not about the future,” he said, “This is about today.” [See my blogpost, Mike Bloomberg takes on coal.]

Now here comes a group of international scholars and analysts, known as the Hartwell Group, with a new report called Climate Pragmatism, [PDF, download]  which argues that the best way to enact policies around climate change is to talk less about climate and more about curbing air pollution and promoting clean energy innovation.

Telling people to study climate science and make sacrifices–in effect, what Al Gore has tried valiantly to do–hasn’t worked and won’t, the report says.

Nor will the argument that we need to “save the planet” for future generations.

The report says:

The old climate framework failed because it would have imposed substantial costs associated with climate mitigation policies on developed nations today in exchange for climate benefits far off in time–benefits who attributes, magnitude, timing and distribution are not knowable with certainty.

By contrast:

The new framework now emerging will succeed to the degree that it prioritizes agreements that promise near-term economic, geopolitical and environmental benefits to economies around the world, while simultaneously reducing climate forcings, developing clean and affordable energy technologies, and improving societal resistance to climate impacts.

I called Michael Shellenberger, president of the Breakthrough Institute, to talk about the report. [click to continue…]

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“Today’s food system is unfair, ineffective and operates beyond ecological limits,” Mark Lee says, via email.

“Unfair in that some 925 million are malnourished…

“Ineffective in that there are enough calories out there to feed everyone, but we fail to do so (and if we fail to do so for 7 billion, how will we cope with 9-10 by mid-century?)…

“Beyond ecological limits in too many ways too count – freshwater use, soil degradation, climate impacts, you name it.”

Mark is not an environmental activist. He’s the executive director of SustainAbility, a think tank and strategy consultancy that has worked with such food industry clients as Chiquita, Coca-Cola Kellogg’s, Mars and McDonald’s, Nestle, Starbucks and Unilever. He approached me because Sustainability recently released a report called Appetite for Change, about the food industry and how to fix it.

I’ve been writing a lot about food lately because it interests me, because food and agriculture matter a great deal if you care about climate or global poverty or health, and because there’s so much debate about what the path forward should be. Organics? Farmers markets? Genetically engineered crops? Vegetarianism? Local? [click to continue…]

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Sierra Club's Mike Brune, Rep. Jim Moran and Michael Bloomberg

In a gutsy move, New York Mayor Michael Bloomberg today announced that his Bloomberg Philanthropies has pledged $50 million to the Sierra Club to fight coal plants.

He didn’t do it quietly, either. Bloomberg chartered a boat to take about 100 Sierra Club activists, friends, TV cameras and reporters out onto the Potomac River for a press conference in front of an Alexandria, Va., coal plant that environmentalist have been try shut, so far without success. Fittingly, he came to D.C. on a day when the heat was sweltering and authorities declared a “Code Orange,” an alert meaning that the air is too dirty for kids to play outside.

“The burning of coal does terrible harm to mothers, children and families across the country,” Bloomberg declared, calling coal a “self-inflicted public health risk.”

Bloomberg and Mike Brune, the Sierra Club’s executive director, set an ambitious goal for the group’s “Beyond Coal” campaign: They want to shut down about one-third of the nation’s coal plants and replace them with clean energy as quickly as possible.

“If we succeed, and I believe we will,” Bloomberg said, “we will save millions of lives and we will help millions of children avoid asthma and its debilitating effects.”

For those who care about climate change, air pollution and public health, this is the best news out of Washington, D.C., in some time. It comes in stark contrast to the goings-on on Capitol Hill, where House Republicans are doing everything they can to tame the EPA. [click to continue…]

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Rotten tomatoes

July 20, 2011

I’m going to try to never again buy a supermarket tomato.

Partly that’s because they have so little taste–a sad fact I’m reminded of every summer when we buy our tomatoes at a local farmer’s market. Any resemblance between a locally-grown tomato and  the industrial tomatoes sold in supermarkets and restaurants, particularly in winter, is strictly coincidental.

Mostly, though, it’s because I now understand what goes into the production of a tomato in Florida–the nation’s No. 1 tomato-growing state, which supplies virtually all of the fresh, field-grown tomatoes sold between October and June. That’s thanks to a terrific new book called, appropriately, Tomatoland: How Modern Industrial Agriculture Destroyed Our Most Alluring Fruit.

This eye-opening expose by veteran food writer Barry Estabrook, who formerly contributed to Gourmet, now writes for The Atlantic and blogs at his own site, Politics of the Plate, is a worthy addition to the growing number of books on my shelf that takes us behind the scenes of today’s alimentary-industrial complex, books like Michael Pollan’s Omnivore’s Dilemma, Eric Schlosser’s Fast Food Nation and Paul Greenberg’s Four Fish. From bookstores to the blogosphere, food writing these days is smarter and more tough-minded than ever. [click to continue…]

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Of all the things that an individual can do to help slow the process of climate change–change lightbulbs, turn down the AC, ride a bike–few if any have as much impact as eating less meat.

So, at least, says the Environmental Working Group in its new Meat Eater’s Guide to Climate Change and Health.

Yes, this is a guide for meat eaters, not an argument for a vegetarian or vegan diet, which may be too much to ask of a nation of carnivores. But just eliminating a meal or two or three of meat can have a big impact, according to EWG:

If everyone in the U.S. ate no meat or cheese just one day a week, over a year, the effect on emissions would be the equivalent of taking 7.6 million cars off the road. [click to continue…]

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My mornings often begin with a run along the Capital Crescent Trail in Bethesda, Md., and a visit to Quartermaine’s, a neighborhood hangout where the coffee’s great, the baristas are friendly and the pastries are tempting. Often, I yield to temptation. If Michael Jacobson of the Center for Science in the Public Interest had his way, they’d serve nothing but oatmeal with skim milk, no salt.

Last week, Jacobson assailed the Campbell Soup Co. after its new CEO, Denise Morrison, told investment analysts that the company “plans to bring back some higher-sodium soups after several years of working to reduce sodium, sometimes at the expense of taste,” according to the AP. Sales of the low-sodium soup were disappointing.

Jacobson wrote:

If Campbell has reason to believe consumers don’t like the taste of their products, why resort to salt? Why not improve their soups with more and better-quality vegetables and chicken, or with herbs and spices? I suppose that’s a question that answers itself, and the answer is money. Campbell enjoys a huge profit margin selling what are often basically overpriced disease-promoting cans of salt and water.

Yikes! This “public interest” advocate doesn’t think much of the public, does he, since, in his view, they are wasting their money on “overpriced disease-promoting cans of salt and water.”

His blast made news, as CSPI often does. More than 300 stories, according to Google News, like this one from ABC News.

So what’s wrong with this picture? A couple of things.

First, it reflects an unfortunate blurring of the lines between “corporate responsibility” and personal responsibility. Is Quartermaine’s responsible for my pastry consumption? Should Campbell limit its offerings to low-sodium soups if consumers don’t want them? What about Ben & Jerry’s? This isn’t to suggest that corporations don’t bear some responsibility for the obesity crisis–they do, as I’ll explain below–but as a society, we’ll never get people to take responsibility for their own health and well-being if we point the finger at others.

Second, it misunderstands the power of business. Assume Campbell decided to sell only low-sodium soups. (No more Chicken Noodle, with its whopping 890mg per serving. The FDA currently recommends no more than 2,300 mg — roughly a teaspoon — of salt per day.) Shoppers would simply turn to other brands–or buy a frozen pizza instead.

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The company that owns more cars than any other in America is buying more electric vehicles.

Andy Taylor, who is chairman and chief executive officer of Enterprise Holdings, which owns the flagship Enterprise Rent-A-Car brand as well as Alamo Rent A Car and National Car Rental, said at a Washington energy forum today that the company is expanding its offerings of electric cars as fast as it can.

Andy Taylor of Enterprise Holdings

“We are finally getting the vehicles in some numbers,” Taylor said, at the National Summit on Energy Security, where he and Fred Smith, chairman, CEO and president of FedEx Corp.

Smith, too, made an impassioned plea to electrify the U.S.’s cars and light trucks. If the goal is to displace imported oil, Smith said, “there has never been a technology that offers this much opportunity,” he said. [click to continue…]

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Mark Vachon

How’s GE’s ecomagination  going?

I put that question today to Mark Vachon, who is vice president for ecomagination at GE. He replied by talking about natural gas.

“The large macro trend of gas is massive,” he said. “Our oil and gas business will be a huge beneficiary.”

An abundance of shale gas in the U.S., and methane gas reserves in Australia present a wealth of opportunities for GE, which plays all along the supply chain for natural gas.

“We’re a massive player in gas exploration,” Mark said. “We have a water business that can deal with issues in the fracking process.” And, of course, GE sells lots of gas-burning turbines, including a new combined cycle power plant, currently available in Europe, that enables gas to be burned more efficiently and in concert with renewable energy. (See my June blogpost, GE’s big bet on natural gas)

But can you put “ecomagination and shale gas in the same sentence? Yes,” Mark said. GE will focus on making shale gas cleaner, “with technologies like zero-leak valves” and water filtration products like a mobile evaporator that is basically a truck (see below) “designed to enable on-site frac water recycling, reducing the volume of wastewater and fresh water that needs to be hauled to and from the project site.” [click to continue…]

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Let’s do away with CSR

July 10, 2011

Maybe it’s time t0 do away with corporate social responsibility (CSR).

Not merely the words and the idea but the infrastructure: CSR departments, CSR reports, CSR conferences and CSR executives.

And, as long as we’re at it, let’s think about ditching the triple bottom line, the pursuit of shared value, corporate citizenship and especially, yuk, the idea that stakeholders deserve a say in how to run a business.

All of these are, at best, distractions and, at worst, ways of thinking about business that create a separation between a company’s core business and its impact on the world. Both ought to be life-enhancing. No more and no less.

I’ve been thinking about CSR and how to talk about it for years.  I wrote my first article on corporate responsibility for FORTUNE in 2003. It ran under an odd headline — Tree Huggers, Soy Lovers and Profits — because my editors knew that  words like corporate social responsibility turn off readers. I grappled with the meaning and terminology of CSR again in my 2004 book, Faith and Fortune, which explored connections between religion, faith, values, spirituality and business. The language of faith and values, I subsequently decided, wasn’t the best one to use when speaking to corporate executives about business and its impact. I’m now inclined to talk about sustainability. For all its vagueness, corporate sustainability is an idea that is both practical–no one wants to kill their company–and radical, because no company  is truly sustainable, at least as defined by the Bruntland Commission as promoting development in a way that “meets the needs of the present without compromising the ability of future generations to meet their needs.”

But the here goes beyond language. I was reminded of that when reading an excellent new book by Carol Sanford called The Responsible Business: Reimagining Sustainability and Success (Jossey-Bass, 2011). No, I don’t love the title or even her terminology. (One chapter is  called, yikes, “Stakeholders as Systemic Collaborators.”) But Carol’s arguments and insights (and the title wasn’t her idea) are spot on. Carol argues that the most successful and profitable businesses, over time, will not be those that “practice CSR” but instead those that rethink their purpose, reorganize themselves to draw upon the creativity and passion of all, and integrate responsible behavior into the way they do everything they do.

As Carol writes:

Responsibility isn’t a set of metrics to be tracked or behaviors to be modified. It is central to both the purpose and prosperity of a business and must be pervasive in its practices.

This may sound obvious but it leads her (and her readers) to new ways of thinking about business. Businesses, she says, should strive not just to minimize the harm they do, but to do good, to become restorative, to “improve and evolve healthy systems.” She explains: [click to continue…]

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