General Mills, Walmart, Target and compassion

July 29, 2014

compassion-wordThe other day, I went to a daylong meditation retreat about lovingkindness. One of the themes: how to find ways to bring an attitude of loving kindness not just to friends, but to strangers and even to the most difficult people in our lives. My rabbi, Fred Dobb, with whom I ordinarily spend my Saturdays, touches on a similar theme when he talks about widening our circles of compassion, to go beyond family and friends; the edict to  love thy neighbor extends not just to the folks next door but to the needy around the world. I don’t mean to go all Biblical on you here but it is written in Exodus 23:9: “And a stranger shalt thou not oppress; for ye know the heart of a stranger, seeing ye were strangers in the land of Egypt.”

What does this have to do with corporate responsibility, and sustainability, the topics of this blog? A lot, actually, as I realized when a pair of stories that I wrote for Guardian Sustainable Business were published in quick succession this week. Both stories are about big, publicly-traded companies that seek to enhance shareholder value with considerable vigor. But both, at heart, are also about the idea that good companies increasingly take an expansive, as opposed to a constricted view, of their place in the world, and their obligations to the world.

Yesterday, I wrote a story about General Mills’ new climate policy. Here’s how it begins:

Two months after Oxfam launched a campaign urging food and beverage companies to take stronger action to curb climate change, General Mills has promised to reduce greenhouse gas emissions in its agricultural supply chain and to advocate for government climate policy.

General Mills on Monday detailed its new policy on its website, saying: “The imperative is clear: Business, together with governments, NGOs and individuals, needs to act to reduce the human impact on climate change.”

In a news release, Oxfam praised General Mills as “the first major food and beverage company to promise to implement long-term science-based targets to cut emissions from across all of its operations and supply chains that are responsive to the goal of keeping global temperature rise below 2C.”

“It’s a major leap,” said Heather Coleman, climate change manager for Oxfam America.

What’s noteworthy about the General Mills’ policy is that it dig deep into the company’s agriculture supply chain, where its environmental impact is greatest, and that it commits the company to be more politically active on climate issues. Put another way, this big food company is taking responsibility for trying to reduce the environmental impact of oats that go into Cheerios. You can read more here.

Today, the Guardian published my story about an unusual collaboration between Walmart and Target that aims to insure that beauty and personal care products are produced more sustainably. Here’s how that story begins:

In an unlikely partnership, rivals Walmart and Target have joined together, working with suppliers “to improve sustainability performance in the personal care and beauty industry”.

Their first event, the day-long Beauty and Personal Care Products Sustainability Summit, will be held on 4 September in Chicago. It’s being organized by Forum for the Future, a UK-based NGO with an outpost in New York.

Up until now, Walmart, the largest US retailer, and Target, the fourth-ranked retailer (according to the National Retail Federation), have taken divergent paths on sustainability. Why are the two companies now joining forces around the sustainability of soap, toothpaste, hair care products, shaving cream and cosmetics?

The story goes on to say:

It may be – and this definitely falls in the category of informed speculation – that Walmart and Target have come to realize that they are not as powerful as they want to be when dealing with big consumer brands and their suppliers in the chemical and fragrance industries.

The secrecy around ingredients in beauty and personal care products, along with the complexity of chemical formulations, creates information asymmetries. The brands and their suppliers know a lot more about product formulations than the buyers at Walmart and Target. They often tell critics that there’s no readily available substitute for a “chemical of concern.” And they are unwilling to share information about whether they are researching or developing safer chemicals.

An industry insider told me: “There’s so much that’s hidden in these supply chains that even Target and Walmart don’t know what goes into everything on their shelves.”

The point is, Walmart and Target are digging deeper than ever before into their supply chains, seeking to understand the chemicals that go into cosmetics or hair care products, or the impact of packaging.

You can see these shifts across the field of corporate responsibility. Look at the apparel and electronics industries which, over time, have agreed, at least in theory,accept responsibility for the working conditions and environmental practices deep in their supply chains, in places like China and Bangladesh.

Are companies becoming more compassionate? I don’t think so, at least not in the since that people can seek to become more caring. But are they recognizing that the long-term health of their business depends upon their reputations as corporate citizens, not to mention the health of the planet or the safety of the products they sell? Yes, they are. It’s a very slow and imperfect process, but it’s real.

Filed Under: Business Ethics, Climate Change, Consumption, CSR, Environment, Food, NGOs, Sustainability Tagged With: , , , , , ,

From an organic pioneer, a vegan cookbook

May 27, 2014

© Scott Campbell PhotographyOne of my favorite events each year is Cooking for Solutions, a conference and food festival staged beautifully by the Monterey Bay Aquarium. It’s a gathering of smart people who are passionate about food–how it’s produced, its impact on the environment and on health and, of course, how it tastes. Monterey is a great place to spend a few days and the aquarium is world-class. This year, I met some great chefs who I hope to be able to write about in the weeks and months ahead.

I also re-connected with Myra Goodman, who with her husband Drew co-founded Earthbound Farm, an organic industry powerhouse. Myra and Drew host a breakfast outdoors each year at Earthbound’s Farm Stand in Carmel Valley, which is usually followed by a panel about the organic industry.

imgresThis year, Myra made news herself. She and Drew sold Earthbound to an even bigger organic firm, White Wave Foods, and she and her daughter Marea have written a cookbook called Straight From the Earth: Irresistible Vegan Recipes for Everyone. I haven’t had a chance to try any of the recipes yet, but I did write about Myra and her book last week for Guardian Sustainable Business.

Here’s how my story begins:

Myra and Drew Goodman never planned to become farmers. They were two kids from New York City who graduated from the same high school, went to college and then made their way to northern California to take a year off before grad school. Living in a 600-square-foot home in rural Carmel Valley, they grew organic raspberries and sold them at a roadside stand. “A romantic adventure”, Myra calls it.

That was 30 years ago. Grad school never happened, but their company, Earthbound Farm, became America’s largest grower of organic produce. In January, the Goodmans and their shareholders sold Earthbound to White Wave, a Colorado-based company whose brands include Silk and Horizon Organic, for about $600m.

That’s a lot of lettuce.

I sat down with Myra Goodman last week during Cooking for Solutions, a conference and foodfest presented by the Monterey Bay Aquarium. We talked about the growth of the organic food industry, the problems with meat and why the word “vegan” isn’t in the title of her new cookbook of plant-based recipes, Straight from the Earth.

Over the past three decades, Goodman, who is 50, has helped change the way crops are grown in America; now she’d like to help change the American diet. “We need to eat a lot less meat,” she says, “and a lot more plants”.

It looks like America may be moving in that direction. Last week, the organic food industry reported that it is growing again after a sluggish few years, post-recession. Sales of organic products in the US jumped to $35.1bn in 2013, up 11.5% from $31.5bn in 2012, the fastest growth rate in five years, according to the Organic Trade Association.

The story goes on to explain why eating less meat — particularly conventionally raised beef — is one of the simplest steps anyone can take to reduce carbon emissions. You can read the rest here.

Filed Under: Climate Change, Consumption, Environment, Food Tagged With: , , , ,

The art and science of systems change

April 30, 2014

pdfnewThe corporate sustainability movement, such as it is, has made enormous progress in the last decade. Just not enough. Despite the well-intentioned efforts of forward-thinking companies, greenhouse gas emissions are rising, species are dying, forests are shrinking, etc. Smart companies have come to understand that acting alone, they can’t bring about the change we need.

This is why companies are collaborating to drive what’s being called systems change — that is, efforts to remake complex systems such as supply chains or marine fisheries. Recently, I heard a consultant named Joe Hsueh (it’s pronounced Shway) talk about systems change at an event sponsored by Guardian Sustainable Business and Forum for the Future.

Joe has a PhD from the Sloan school at MIT, so he understands the science of how systems work and knows how to deploy tools like systems maps (like the one above). Perhaps more important, though, he spent a year volunteering with Buddhist nuns in Taiwan, his native land, so he has practiced listening and empathy.

I wrote about Joe this week in the Guardian. Here’s how my story begins:

Until recently, the momentum driving US businesses toward greater sustainability came from big, influential companies: GE with itsecomagination campaign, Walmart with its bold environmental goals, Google with more than $1bn in renewable energy investments and Nike with its pioneering design work, among others.

Lately, though, much of the most exciting work in sustainable business has focused on systems change – sometimes within an industry, sometimes up and down corporate supply chains and sometimes across industries and geographies. Systems-change initiatives like the The Sustainability Consortium, the Sustainable Apparel Coalition and ZHDC, which stands for Zero Discharge of Hazardous Chemicals, differ in their approach and structure, but they are all tackling problems too sprawling and too complicated for even the biggest companies to solve on their own.

The process of changing large-scale systems is a mix of art and science, and its practitioners can be found inside companies, in consulting firms and in academia. The consulting firm BluSkye helped the dairy industry reduce its carbon emissions and was hired by Alcoa to try to give US recycling rates a big boost. Starbucks engaged MIT professor Peter Senge to take a systems-based approach to the challenge of recycling the billions of cups the food service industry uses every year to hold hot liquids. Nonprofit WWF has dived into system-change efforts such as theRoundtable on Sustainable Palm Oil, a standard-setting group that brings together producers, processors, traders, brands, retailers and NGOs.

To grow systems change, a group of individuals and organizations formed the Academy for Systemic Change in 2012. Joe Hsueh, one of its founding members, recently sat down with me to talk about systems change, how it works and why it matters.

You can read the rest here.

Filed Under: Climate Change, CSR, Environment, Leadership, Sustainability Tagged With: , , ,

A lean startup seeks to “green” travel

April 17, 2014

United_Airlines_Boeing_767-322ERI’m writing this blogpost in London’s Heathrow Airport, on my way home after a brief visit to the UK.  I had a great trip, visiting colleagues at The Guardian and relatives in Manchester, today is not a good day for my personal carbon footprint. According to this carbon footprint calculator, my share of the emissions on the flight back to Washington, D.C., will be about 0.52 metric tons. That’s roughly the equivalent of driving 2,100 miles (four months of driving, for me) in my 2008 Honda Civic hybrid. So my efforts to occasionally ride my bike or take Metro instead of driving are trivial, to say the least, when compared to my air travel. I shudder to think of the carbon impact of a family vacation to Europe.

The point is, air travel is a carbon-intensive activity and there’s not much any of us can do about,  other than to travel less. (Taking a ship to London wasn’t an option. And none of the airlines use low-carbon fuels at scale because they’re too expensive.) That’s one reason why I was intrigued to hear about TripZero, a startup that aims to offset the carbon footprint of travel, at no cost to the traveler.

I met TripZero’s founder, Eric Zimmerman, early last year, and we reconnected when he launched the website recently. Here’s my story about TripZero, which ran the other day in Guardian Sustainable Business, begins:

About seven years ago, a publishing executive named Eric Zimmerman heard a speech by Eric Corry Freed, the author of a book called Green Building & Remodeling for Dummies. Freed talked about the responsibility that business has to protect the environment, and the stories we will tell our children about what we did. “Have you ever sat in the audience and felt someone was talking just to you?” Zimmerman asks. “That was one of those moments.”

Zimmerman was moved. He did a deep energy retrofit on his home in Carlisle, Massachusetts. He put solar panels on his roof. He stopped outsourcing his company’s printing to China, and he helped to create an industry brand called Green Edition that sets standards for sustainability in book publishing.

It wasn’t enough. About a year ago, Zimmerman, 48, left his job to start a company called TripZero that offsets the carbon emissions generated when people travel by plane, train, car or bus – at no cost to the traveler.

A lean startup – “The company is me,” Zimmerman says – TripZero is tackling one of the most intractable problems in corporate sustainability: the carbon footprint of travel and tourism.

For now, TripZero is a modest enterprise. Essentially, it functions as a travel agency. If you book hotels on its website, it collects a commission from the hotel owner and uses a portion of the commission to buy verified carbon offsets. It’s a clever idea, and it should appeal not only to eco-minded travelers but to NGOs and small businesses when they book travel. You can read the rest of my story here.

2-TripZero Homepage Boat

Filed Under: Climate Change, Consumption, Energy, Environment, Social Entrepreneurs Tagged With: ,

A murmur, not a message

April 13, 2014

800px-US_Capitol_SouthOne reason why it has been so hard for President Obama and environmentalists to persuade Congress to enact climate-change legislation is strong opposition from much of corporate America. The U.S. Chamber of Commerce, the National Association of Manufacturers and the editorial page of the Wall Street Journal, which is seen as the voice of business, all, when it comes down to it,  oppose a carbon tax or an economy-wide scheme to cap greenhouse gas emissions.

They’ve got some sound reasons for doing so: Climate regulation by the US, if it is not followed by regulation in China and India and the rest of the world, will do little to curb global warming, but it will disadvantage the US economy and cost consumers money by raising energy prices. The thing is, China and India and the rest of the world are unlikely to price carbon unless the US leads the way. And right now it’s “free” for fossil fuel companies and utilities and the rest of us to pollute the air with CO2, and so we do so with impunity.

Thankfully, the chamber, NAM and the Journal don’t speak for all of business. That’s why a business coalition known as BICEP (it stands for Business for Climate and Energy Policy) needs to grow in numbers and in political clout. BICEP favors climate regulation, and its members include such well-known companies as eBay, Gap, Levi Strauss, Mars, Nike and Starbucks. But BICEP, pardon the bad pun, doesn’t carry much weight in your nation’s capital, and it’s fairly easy to understand why.

For the US fossil fuel industry, most of which opposes carbon regulation, the climate issue is a matter of the utmost importance. Environmentalists  who worry about the climate crisis increasingly argue that much of the world’s reserves of coal and oil must be left in the ground, unless and until  engineers come up with practical and cost-effective way to capture CO2 from power plants or from the air.  If that argument that we need to burn dramatically less coal and oil prevails, the stock-market value of the fossil fuel industry would collapse. This is the so-called carbon bubble, and it is an existential threat to the fossil fuel companies.

By contrast, climate change is an important issue Mars, Nike, Starbucks and the other companies in BICEP,  but it’s by no means their biggest issue. They are to be commended for stepping out, but so far they have not thrown the full weight of their Washington operations (or, for that matter, their marketing departments)  behind their position.

That was evident last week when BICEP organized a lobbying day on Capitol Hill. I covered the event for Guardian Sustainable Business. Here is how my story begins:

It is not often that big business comes to Washington to seek regulation. But a group of companies including IKEA, Jones Lang LaSalle, Mars, Sprint, and VF Corp did so this week, asking Congress to take steps to prevent catastrophic climate change.

Executives organized by the business coalition BICEP (Business for Innovative Climate and Energy Policy), testified before a Senate and House task force on climate change, telling lawmakers about their own corporate commitments to reduce carbon pollution. Then they fanned out across the Capitol to lobby on behalf of a clean-energy financing bill.

They did so on the first anniversary of the release of the Climate Declaration, a corporate call-to-action that has been signed by more than 750 companies. It was a reminder to legislators that the US Chamber of Commerce, the coal industry and the Wall Street Journal editorial page do not speak for all of corporate America when they oppose government action to regulate carbon pollution.

“Business is not a monolith,” said Anne Kelley, who coordinates BICEP’s lobbying efforts. “That’s been the message of BICEP since the beginning.”

But if BICEP has shown that hundreds of companies favor political action on climate, its efforts so far have been drowned out in Washington by those of the US Chamber and its allies, a US Senator told the group.

Senator Sheldon Whitehouse, a Rhode Island Democrat and a strong advocate of climate action who convened the hearing, said BICEP’s voice is “a murmur and not a message”, and he urged companies to spend more of their political and reputational capital on the climate issue.

Whitehouse, as the story goes on to explain, urges the BICEP companies to be more forceful. Until more companies understand that the threat of climate change, and the costs of adapting to extreme weather such as heat waves and drought, is a core issue for them, the debate in Washington will be dominated by the likes of the US chamber. And that’s a problem for all of us.

Filed Under: Climate Change, CSR, Economics, Energy, Environment, NGOs, Politics Tagged With: , , ,

Recycling CO2, and the oil sands

April 3, 2014

650px-Coal_power_plant_Datteln_2_Crop1Capturing the CO2 emissions from coal or natural gas plants is a climate solution–but one that has sharply divided environmentalists.

Mike Brune and his colleagues at the Sierra Club want the US and the world to go entirely Beyond Coal, as do other activist groups like Greenpeace and 350.org. Others, including David Hawkins of NRDC (see this press release) and the folks at the Clean Air Task Force, argue that it’s unrealistic to expect countries like China and India to leave their coal reserves in the ground. They say investing in carbon capture from power plants are essential.

By all accounts, carbon capture and storage (CCS)  is costly and complicated. One way to bring down those costs would be to recycle the CO2 captured from coal and natural gas plants, and turn into useful products–fuels, chemicals, animal feed, building materials, whatever. CO2 recycling is an exciting idea–as I explain in this story posted the other day at Guardian Sustainable Business.

I reported the story at Globe 2104, a conference on business and the environment held last week in Vancouver, one of North America’s greenest cities and, not incidentally, perhaps its most beautiful big city. I had the chance to moderate one panel at Globe, and speak on another, and in between I went to a panel on carbon recycling, where I learned that there’s growing support for the idea in Alberta, home to Canada’s fossil fuel industry, including the now notorious oil sands development.

Here’s how my story begins:

We recycle paper, plastic, aluminum and glass. So why not carbon?

Taking carbon dioxide, a greenhouse gas, and making it into something useful could help solve the climate crisis, if it could be done on a large scale. But capturing carbon emissions from power plants and turning them into fuels, feed, chemicals or building materials has so far proven to be an expensive and difficult proposition.

Lately, though, a burst of financial and technical support for recycling carbon emissions has come from an unexpected source: the Canadian oil sands industry.

Reviled by environmentalists, pilloried by Canadian rock legend Neil Young and denounced by crusading climate scientist James Hansen, the oil sands industry seems an unlikely partner in the battle against carbon emissions. But its interest in finding a carbon-dioxide solution actually makes sense.

After all, the coal, oil and natural gas industries produce more CO2 than anybody else. And given current legal trends, it’s clear that they don’t expect to be able to dump it into the atmosphere, willy-nilly, for free and forever. Alberta, the western province that is home to the oil sands and is Canada’s closest thing to Texas, enacted a $15-per-ton carbon tax in 2007. Next door, British Columbia charges a $30-per-ton carbon tax.

The story goes on to talk about plans for a global prize competition around recycling CO2, backed by Prize Capital, a small California company that provides early-stage capital to startups and Tri-State Generation and Transmission Association, a Colorado-based coal-burning power generator that has financed research into carbon recycling.

I’ve since heard about a couple more companies that are working on CO2 recycling, which I’ll report on in the coming weeks.

What’s more, if scientists can figure out to economically capture CO2 from power plants, the next step could be capturing CO2 directly out of the air. That, as regular readers of this blog know, was the subject of my 2012 Kindle Single e-book, Suck It Up: How capturing carbon from the air can help solve the climate crisis, available from Amazon at $1.99, and a bargain at the price, if I do say so myself.

 

Filed Under: Climate Change, Economics, Energy, Environment, Sustainability Tagged With: , , , , ,

Natural capital: Breakthrough or buzzword?

March 7, 2014

forests-why-matter_63516847We depend on nature. Forests, fisheries, water, soil, clean air, the ability of the atmosphere and the oceans to absorb CO2, minerals, biodiversity, pollination, the serenity of the wilderness: They make life possible. Not to mention more pleasant. Fine. That’s not news.

Lately, though, environmentalists and a handful of companies and consultants have tried to assign a dollar value to the products and services provided by nature. This idea is what’s called “natural capital,” at least as I understand it. I took a look at the idea in a story posted yesterday at Guardian Sustainable Business.

The story has already generated reaction, positive and negative. (Sometimes from people in the same organization.) Before you read it, I want to clarify what I meant to say–something a reporter shouldn’t have to do, but it may be helpful in this case. I didn’t mean to diss the entire notion of natural capital. It strikes me as potentially a useful idea, particularly when applied at a modest scale, and with some humility. Specifically, some companies and government agencies have found that by “investing in nature,” they can generate favorable returns when compared to other more conventional investments. For example, Coca Cola bottling companies have paid upstream farmers to take better care of their land, as a way of protecting water that the company needs to make beverages. A small nonprofit in Oregon called The Freshwater Trust has found that working with landowners to plant trees along riverbanks can improve water quality more effectively and at a lower cost than installing conventional pollution controls. (Here’s an example, a project the group administered for the City of Medford.) Most famously, Dow Chemical has worked with the Nature Conservancy to develop “green infrastructure” instead of “gray infrastructure” at a big facility in Texas. Maybe because I can get my head around them, these projects make sense to me.

What’s harder for me to understand are the more ambitious and complicated efforts to account for natural capital on a corporate or even a global scale. The calculations get complicated, in a hurry. (PUMA and its parent company, Kering, have spent years trying to measure their impact.) The numbers become less reliable when we start talking about billions or even trillions of dollars. Most important, the object of the exercise is…..what, exactly? Some people argue that valuing natural capital helps company identify risks or opportunities in its supply chain, but does an apparel company really need to hire accountants and consultants to understand that growing cotton will be harder in a water-constrained world than it is today? What’s more, as I explain in the story, the idea of “finite” natural resources, on which much of the analysis depends, is itself flawed. Yes, we may run out of this or that, but over time, inventive people are about to devise substitutes for scarce resource as the prices of those resources. This is how markets and innovation work. After,  the  stock of natural capital in the 19th century would have included whale oil for lighting and horses for transportation; they were, perhaps, finite, but they became irrelevant.

In any event, here’s how my story begins:

The corporate sustainability movement needs many things – scale, acceleration, a sense of urgency, science-based targets and goals – but one thing it surely does not need is another buzzword. Yet that is what “natural capital” is at risk of becoming.

At the GreenBiz Forum last month in Arizona, which attracted nearly 600 sustainability professionals, talk of natural capital was everywhere. The Nature Conservancy and the Corporate Eco Forum unveiled the Natural Capital Business Hub, which aims to “help companies uncover opportunities to enhance their bottom lines by integrating the value of natural capital into their strategy, operations, accounting and reporting.” Companies identified as Natural Capital Leaders – including Kimberly Clark, Freeport McMoran and Adobe – were praised.

So what, exactly, is natural capital? And why should companies care? Will accounting for natural capital drive meaningful change – or will it merely consume time and energy, occupy panelists at sustainability conferences and generate consulting fees?

Defining natural capital is relatively easy. “It’s the products and services that nature provides to business,” explains Libby Bernick, a senior vice president at Trucost, a consultancy that has popularized the idea. Forests, fisheries, water, soil, clean air, the ability of the atmosphere and the oceans to absorb CO2, minerals, biodiversity, pollination, even scenic landscapes upon which tourism may depend: all these are forms of natural capital.

The problem, as some see it, is that businesses and individuals use natural capital without paying for it. As Pavan Sukdev, a former banker who helped spread the idea, likes to say: “We use nature because it’s valuable, but we lose it because it’s free.” It’s a profound statement. Catchy, too.

But putting a price on nature’s products and services and then using those valuations to actually do something useful – well, that’s when things get fuzzy.

You can read the rest of the story here.

Filed Under: Climate Change, CSR, Economics, Energy, Environment, NGOs, Sustainability, Water Tagged With: , , , ,

Ride on: The bike sharing boom…and its limits

March 5, 2014

Citi Bikes New YorkI haven’t been on a bike from Capital BikeShare in months because of the nasty winter here in  Washington. But before long, your nation’s capital will once again be home to one of the US’s most popular bike-sharing programs. I’ve raved about bike sharing before (See Pedal Power: Why I love bike sharing) and today my story about the phenomenon was posted on Guardian Sustainable Business.

Yes, bike sharing truly is a phenomenon, spreading rapidly across the US, now in well over 40 cities. But not in all the expected places–bike sharing, as the story explains, has been embraced by cold weather cities like Boston and Minneapolis, but it has yet to launch in such Sunbelt cities as Los Angeles, Dallas and Atlanta.

What’s more, even the most successful bike-sharing programs depend on taxpayer support, at least for their initial capital outlays.

Here’s how the story begins:

As the bike-sharing business gains traction in cities across America, two small companies, Alta Bicycle Share of Portland, Oregon, and B-Cycle of Madison, Wisconsin, are making a big difference in the lives of tens of thousands of cyclists.

Alta Bicycle Share operates bike-sharing systems in partnership with local governments in eight cities: New York, Washington DC, Chicago, the San Francisco Bay area, Boston, Columbus and Chattanooga, as well as Melbourne, Australia.

B Cycle, a joint venture of the Trek Bicycle Corp, healthcare provider Humana and marketing agency Crispin Porter + Bogusky, manages systems in about 30 cities, including Denver, Houston, Kansas City, Madison and Boulder, as well as Santiago, Chile.

Together, they have made bike-sharing one of America’s fastest growing “green” businesses. “Bike sharing has experienced the fastest growth of any mode of transport in the history of the planet,” according to findings from the Earth Policy Institute.

Bike-sharing systems reduce carbon emissions, cut local air pollution, make it easier for people to get exercise and, importantly, build political support for safe bicycling infrastructure. Some studies show that protected bike lanes enhance retail sales and real state values.

But the bike-sharing industry has yet to answer a couple of questions that could slow its growth. First, can bike sharing become a sustainable business, or will it forever require taxpayer support? Second, can it grow into a national phenomenon by attracting more ridership in car-centric, Sunbelt cities?

You can read the rest of the story here.

Filed Under: Climate Change, Consumption, Environment, Health, Small Business, Sustainability Tagged With: , , ,

Mike Biddle, libertarian environmentalist

February 27, 2014

biddle-6307Can a libertarian be an environmentalist?

Mike Biddle would say yes. Like many corporate executives, Biddle is politically conservative. He believes in small government, personal freedom and the power of markets to solve problems. “My Bible is Ayn Rand,” he once said.

But Biddle, who is the founder and longtime CEO of a pioneering plastics reprocessing company called MBA Polymers, would like the US government to regulate his industry—plastic waste. He also accepted government grants to finance the basic research that led to the company’s cutting-edge technology.

Does this make him a hypocrite? Not in my view, and here’s why.

MBA Polymers has built three factories to recycle mixed plastics—one in the UK, one in Austria and one in China. It got started with a pilot plant in Richmond, CA, but shut that down because the company could not get access to a steady supply of plastic waste in the US. Yes, that’s right: Americans generate more waste per capita (“We’re No 1!) than other nations, but most of it winds up either in landfills or shipped to poor countries where it is disassembled under unsafe conditions. Biddle’s company, meanwhile, can  turn mixed plastic waste streams, from discarded electronics and junked automobile, into plastic pellets that are as good a new materials extracted from oil.

When Mike and I met last week, he told me that he’d  like the US government to require companies that manufacture electronics to take responsibility for them at the end of their lives. He’d also like the government to regulate exports of waste. Governments in the EU and Japan have done that, and as a result they have created robust systems for collecting and reprocessing waste that save energy, reduce carbon emissions, reduce the demand for oil and help keep plastics out of the oceans. Not incidentally, these laws also protect the health of poor people in Asia and Africa who sort through electronic waste under hazardous conditions.

Mike argues that this kind of government regulation promotes fair competition and a market solution to the plastic-waste problem. Recycling generates positive externalities—that is, it does good even for those who aren’t involved—while trashing valuable plastics harms workers and the environment. To be sure, the government is favoring one industry (recycling) over another (waste dumping, here or abroad). But you also could argue that all it is doing is requiring companies (electronics manufacturers) and consumers to be responsible for properly disposing of the products that they make and we use.

As Mike told me when we talked: “”We need care about how we unmake our stuff as much as we do about it’s made.”

It’s a close call, but it strikes me as a proper role for government.

I wrote about Mike Biddle the other day for Guardian Sustainable Business. Here’s how my story begins:

This month, Mike Biddle, the founder and longtime CEO of a pioneering plastics-recycling company called MBA Polymers, stepped down as an executive at the firm, ending more than two decades of unrelenting effort to reduce plastic waste.

Biddle’s story is one of great success, as well as ongoing frustration. He sat down with me last week at the 2014 GreenBiz Forum in Phoenix to talk about MBA Polymers, the potential of the so-called circular economy, and why, despite all we know, the vast majority of plastics discarded in the US still wind up in incinerators, landfills or, worse, the ocean.

Plastics, he says, remains “the last frontier of recycling.”

Biddle, who is 58 and has a PhD in chemical engineering from Case Western and an MBA from Stanford, left a good job at Dow Chemical in 1992 in the hope of solving the difficult puzzle of plastics recycling. During the next seven years, he attracted about $7m in grants and loans from the state of California, the Environmental Protection Agency and a plastics industry trade group.

You can read the rest here. I should add that Mike’s enviromental cred is solid. He went hiking in Nepal for his honeymoon, spents lots of time outdoors with his kids and is devoting some of his time now to a nonprofit to protect oceans. Mike will also be speaking at the Fortune Brainstorm Green conference (which I co-chair) in May.

Filed Under: Climate Change, Consumption, Energy, Environment, Politics, Sustainability Tagged With: , ,

A modest defense of the hamburger

February 21, 2014

imgresIf you want to reduce your personal carbon footprint, should you eat less beef or buy a hybrid car like a Prius?

The easiest way to reduce your greenhouse gas emissions, I’ve argued, is to eat less meat. Because the emissions generated by the production of  beef, pork and chicken (in that order) exceeds those of plant-based protein, going meatless for a day or two each week makes a difference.

But curbing meat consumption won’t make nearly as much of a difference as driving a more efficient cars, some experts says–although comparing the climate impacts of Big Mac, a lentil stew, a Ford 150 truck and a Prius  is a devilishly complicated business.

Bob Langert, vice president of corporate social responsibility at McDonald’s, recently pointed me to an interesting new publication that explores this issue, and others. Sustainable Diets: Food for Healthy People and a Healthy Planet (available as a PDF here) report on a series of workshops held last year by the well-respected Institute of  Medicine that brought together environmental scientists, nutrition experts, government officials and business people to look at the effects of diet on the planet and on human health.

One of the experts, Frank Mitloehner, a professor in the department of animal science at   the University of California at Davis, who is chair of an FAO group studying the environmental impact of livestock, offered a defense of beef. He tried to  put in perspective the claims of activists who urge consumers to eat less meat for environmental reasons.

The report says:

In Mitloehner’s opinion, although scientists would agree that food choices are an important environmental emission source, they would also agree that food choices pale in comparison to transportation choices or energy production and use choices.

To illustrate his point, Mitloehner cited a U.S. Environmental Protection Agency estimate that 33 percent of all GHG emissions are associated with production and use of energy and 27 percent are associated with use of transportation (EPA, 2013). Compare those figures to GHG emissions in the United States from the entire livestock sector, all species, based on life-cycle assessment9 at 3.4 percent (EPA, 2012). According to Mitloehner’s calculations, of that 3.4 percent, approximately 1.8 percent comes from the beef sector. Thus, GHG emissions from livestock in developed countries are dwarfed by carbon footprint contributions from other, larger sectors (e.g., transportation, energy, industry). The same is true of other developed countries.

Mitloehner questioned the impact of “Meatless Mondays” or “Beefless Mondays.” If 300-plus million people were to go beefless on Mondays, that would cut the 1.4 percent figure by a factor of 7 (number of days in the week), which would amount to a 0.2 percent reduction in the total greenhouse gas footprint. Mitloehner said, “While this is not nothing … it will not even compare to what we see from the transportation sector.”

Mitloehner may be right. He is especially critical of a 2006 FAO report that estimated that livestock contributes 18 percent of all GHG emissions, and those emissions were greater than those from the transportation sector. This number has been quoted widely but, he said, the comparison was inappropriate because livestock emissions were analyzed using a full lifecycle assessment, and then compared to transportation emissions that included only tailpipe emissions.

A very different view was put forth by Emily Cassidy of the Institute on the Environment at the University of Minnesota, who with colleagues including Jon Foley has worked to quantify the environmental impacts of diet. The report says:

Americans consume a lot of meat, more than 110 kilograms per person per year, even though the nutritionally recommended amount is only about 23 kilograms per person per year (FAO, 2013). If meat consumption were to be reduced by 75 percent, to 30 kilograms per person per year, with the lost weight being compensated by fruits and vegetables, cereals, and other foods, what would happen to the environmental footprint of the U.S. diet?

Cassidy’s calculations suggest that such a reduction would significantlychange the environmental impacts associated with the U.S. food system. Specifically, a 75 percent reduction in meat consumption would result in a 27 percent reduction in land use, a 31 percent reduction in water use, and a 46 percent reduction in GHG emissions.

It’s complicated, no? One problem is that using global or even national averages when talking about the carbon impacts runs roughshod over important differences in farming and ranching practices, the electricity mix, shipping and a gazillion other variations. Did the corn that was grown and fed to the cow that was turned into a Big Mac require irrigation? Was the electricity fed to the Prius generated by a coal-fired power plant or by hydropower? Which has a greater carbon impact, salmon from Alaska or chicken from the Delaware shore? Climate change is a global problem, but all emissions are local, as Ory Zik has noted in developing his startup company Energy Points, which uses Big Data to analyze environmental tradeoffs.

So…if you want to reduce your carbon footprint, should you eat less beef or buy a the Prius? The answer is, it depends. It sure looks as if switching to a Prius will have a bigger impact, but of course it’s easier to skip a few meals with meat than to buy a new car. What’s more, the health and environmental impacts of meat production in confined animal feeding operations (CAFOs) go well beyond climate, including the need to dispose of animal waste, potential water pollution, pesticide and fertilizer overuse to produce feed, antibiotic use and resistance, air quality and animal welfare issues.

Happily, it’s not an either or. You can cut meat consumption and drive a more efficient car.

Meantime, companies like McDonald’s, Walmart and Cargill are working together to limit the environmental impact of beef production through the Global Roundtable for Sustainable Beef, which is all to the good.

That said, it would be so much simpler and more sensible to put a tax on carbon emissions and use price signals to speed the transition to a low-carbon economy. Pricing carbon emissions into the costs of goods and services–electricity, gasoline, food and everything else–would unleash the power of markets and drive producers and consumers to smarter and greener choices.

Filed Under: Climate Change, Consumption, Energy, Environment, Food, Sustainability Tagged With: , , , , ,
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