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Archive for the ‘Environment’ Category

Shareholders say: Tell the truth about fracking

Sunday, March 7th, 2010

IMG_0697_hydraulic_ranch

No form of energy–not solar, wind, hydropower, obviously not coal or oil–comes without environmental tradeoffs.

One promising new energy source–a vast supplies of natural gas, trapped in shale deep beneath the earth’s surface–is getting renewed scrutiny these days, and for good reason.

While natural gas is often called a “bridge” to a clean energy future, critics are bombing the bridge with a frack attack, says energy policy analyst Kevin Book of Clearview Energy Partners.

Book was referring to the drumbeat of questions being raised by environmentalists, community activists, reporters and  members of Congress about  hydraulic fracturing, or fracking, a process during which water, chemicals and sand are pumped underground at  high pressure to cause tiny fissures in rock and force natural gas to the surface.

In the weeks ahead, new pressures will come from activist shareholders of a dozen energy companies. They’ve filed shareholder resolutions asking the companies to take a hard look at fracking and its risk, and they will raise the issue at annual shareholder meetings. (more…)

Biotech crops: growing like weeds

Thursday, February 25th, 2010

Corntassel_7095The people who are designing, marketing and selling biotech crops must be doing something right.

Despite fierce opposition to so-called Frankenfoods in Europe, which in turn has discouraged farmers in Africa from planting genetically-modified seeds, biotech acreage under cultivation around the world grew to 134 million hectares last year, up 7% over 2008.

Roughly 14 million farmers planted biotech crops, up from about 13.3 million a year ago, and nearly 90% were small, resource-poor farmers from developing countries, according to a pro-biotech nonprofit group called the International Service for the Acquisition of Agro-Biotech Applications or ISAAA.

Growth is especially robust in poor countries, as the chart below shows.

biotechgrowth,jpeg

What this says is that farmers, when given a choice between biotech and conventional crops, are opting for biotech. And after listening to a presentation the other day from Clive James, the chairman and founder of ISAAA, it’s clear to me that the growth is going to continue.

In a landmark decision last fall, China issued biosafety certificates for biotech insect-resistant rice and phytase corn. Phytase is an additive, widely used in animal feed, that increases phosphorus absorption and helps animals grow faster. Origin Agritech (NASDAQ: SEED), a Beijing-based company that developed the phytase corn, says it will save farmers money and reduce phosphate pollution caused by animal waste and excessive fertiliser use. While commercial use of these biotech crops is several years away, these three facts–rice is the world’s most important food crop, corn is the most important feed crop and China is the biggest market–leave little doubt biotech crop acreage will continue to grow.

Few topics in the world of business and sustainability are more controversial than biotech foods. I’m reluctant to wade into the debate for a couple of reasons. First, I’m not an expert on farming nor on the human health issues raised by biotech’s critics. Second, I’m conducting a series of interviews about sustainable agriculture for Monsanto’s website, Produce More Conserve More, for which I’m being paid. I agreed to do so only after talking about biotech with people I respect–among them, Jason Clay of the World Wildlife Fund, Glenn Prickett of The Nature Conservancy and Stewart Brand–all of whom say that they think biotech foods are essential if we are going to feed the world’s growing population while limiting the environmental footprint of farming. In his book, Whole Earth Discipline, Stewart wrote:

I daresay the environmental movement has done more harm with its opposition to genetic engineering than with any other thing we’ve been wrong about. We’ve starved people, hindered science, hurt the natural environment and denied our own practitioners a crucial tool.

Strong words, no? In response, GM Watch, an anti-biotech website, called Stewart an “ageing hippie technophile” who “has never been short on hubris.” That’s name-calling, not argument. Others whose work I respect, including Andrew Kimbrell and Bill Freese of the Center for Food Safety, argue that genetically-engineered foods should not be commercialized until “they have been thoroughly tested and found safe for human health and the environment.” Of course, it’s not easy to prove that something is safe. The Center for Food Safety also wants foods containing biotech ingredients to be labeled. Still another critic of biotech who has my ear is my  daughter Sarah, who funds grassroots organizations in Africa as a senior program officer for the American Jewish World Service. Maybe I’ll invite her to do a guest post.

This posting isn’t about the controversy. It’s about what’s happening on the ground, literally. Farmers are voting for biotech, and they are doing so with their livelihoods at stake. This suggests that, at the very least, biotech crops deliver meaningful benefits to farmers–they enable them to save money, or work less, or improve their productivity.

The U.S. remains by far the No. 1 producer of biotech crops, followed by Brazil and Argentina, with every other country lagging well behind. (The top 15 countries are listed below. Yes, I know the chart is hard to read but you can also find the list in this press release.) China was one of 16 developing countries that grew biotech crops in 2009, according to ISAAA, and nearly half the biotech acreage is in the developing world.

“This puts to rest the idea that biotech crops can only benefits larger farms in developed countries,” James said during a conference call with reporters.

South Africa and Burkina Faso, where cotton is a major export, led African countries in adoption of biotech. Burkina Fason’s biotech cotton now accounts for 29% of the country’s cotton-growing land. Of course, there’s less controversy surrounding biotech cotton since it is a fiber and not a food crop. Japan, meanwhile, is growing biotech roses and carnations. Who knew?

Now, without knowing the context in which farmers are turning to biotech, it would be a mistake to read too much into this data. Individual farmers are influenced by government policy, the inducements of NGOs (like the pro-biotech Gates Foundation) and the information they have (or don’t have) available.

I’m looking forward to learning more about biotech agriculture.  It’s possible that we may regret this global-scale experiment that we embarked upon less than 15 years ago. But the market seems to be telling us that biotech crops are a good idea. Then again, we’ve all learned lately that markets are not infallible.

Figure 4a in COLOR

Quiznos: Green enough?

Tuesday, February 23rd, 2010

People sometimes say we need to save the planet for our kids. I sometimes think our kids are going to save us.

If you doubt it, ask Rick Schaden. Schaden is CEO of Quiznos, the fast-food chain best known for its toasted subs, and the father of five children, aged three to 19. Today, Quiznos is rolling out new packaging (”Eat Toasty, Be Green”) made from renewable or recycled content that will reduce the chain’s environmental footprint. When we spoke by phone yesterday, I asked what led him to make the changes.

“Believe it or not, I was home watching a movie called Wall-E with my kids,” Schaden said. “You think about LEED-certified buildings and hybrid electric cars and all these really high-tech things, and then you watch Wall-E and the world is buried in trash.” The Disney-Pixar animated movie is the story of a robot named Wall-E, who is designed to clean up a Earth that has been overwhelmed by garbage.

Quiznos green packaging

Quiznos green packaging

His kids had always pushed Schaden to be more green at home. “My kids make sure everything is sorted and separated. If anyone in my house would dare to put a plastic bottle in the trash, my 14-year-old would give him a smack,” he said. “It’s the culture of the new generation. It tells you that’s where consumers are heading.”

So, he figured, why not see what could be done at Quiznos, where he is a large shareholder, and where he returned as CEO, after some time away, just about a year ago. (more…)

Why green business is like teen sex

Thursday, February 4th, 2010

Corporate sustainability is like teen sex.

Everybody talks about it.

Nobody does it very much.

And when they do it, they don’t do it very well.

My friend and colleague Joel Makower likes to tell that joke, and it’s as good a way as any to introduce Greenbiz.com’s third annual State of Green Business report. The wide-ranging report was unveiled today in San Francisco at a conference hosted by 100203-sobg1-wJoel. I won’t try to summarize it;  it’s available free for download here, and well worth a read. Among other things, Joel and his colleagues identify 10 green business trends–they include radical transparency, green fleets, toxics as strategy, and the rethinking of packaging–and they measure progress (or the lack thereof)  around 20 different metrics, including carbon transparency, carbon reporting, clean-tech investments and green power use.

The teen sex joke is fitting because the ratio of of talk to action in the green business arena remains high. Particularly when it comes to climate change–now and most likely forever the No. 1 environmental issue for business, and for everyone else–progress has been halting because of the absence of consistent government policy, at the national or global level. Only 34% of the S&P500 companies have promised to (more…)

The power of small changes

Tuesday, February 2nd, 2010

When Chris McKenna, who manages a fleet of trucks for Poland Spring, learned that the company’s drivers were racking up as much as 1,400 hours a month of idle time, he saw an opportunity to make a difference. Running truck engines in winter kept the cabs warm — the company is based in Maine — but it cost Poland Spring money and polluted the air.

To see which of the company’s 65 drivers were racking up the most idle time, McKenna ranked them, based on data from onboard computers. “All we did was talk to them about it, and put a list up in the break room,” he told me. “Human nature, no one wants to be at the bottom of the list.” To sweeten the deal, the 10 drivers with the lowest idling time got a gift card for fuel they could use for their own cars.

The results were dramatic. Idle time dropped from 1,400 hours in February 2007 to 1000 hours in February 2008 to just 380 hours in February 2009. Depending on fuel costs, cutting idle time has saved the company thousands of dollars a year—roughly $20,000 during 2008, for example.

There are two lessons here. First, as I wrote recently about OPower, changing behavior is a powerful and low-cost way to curb climate change. Second, small changes can add up to big impacts, as the Environmental Defense Fund makes clear in this cool video from its Innovation Exchange website.

As EDF notes, fleet vehicles are driven hard, averaging nearly double the mileage, fuel consumption and emissions of personal vehicles. Currently, EDF says there are more 3 million corporate fleet vehicles in the United States emitting 45 million metric tons of carbon dioxide per year.

I spoke with Chris McKenna last summer while helping EDF write a series of case studies on greening fleets. (The case studies (more…)

GE and Washington: Too cozy?

Sunday, January 31st, 2010

Since 2004, when I wrote a story for FORTUNE called Money and Morals at GE , I have been an admirer of General Electric and its CEO, Jeff Immelt. My admiration deepened when GE unveiled EcoMagination, its effort to solve important environmental problems. Immelt and GE also led the U.S. Climate Action Partnership, an alliance of big business and big NGOs committed to getting the government to regulate greenhouse gas emissions.

Jeffrey Immelt

Jeffrey Immelt

But–and you knew there’d be a but, didn’t you?–I’ve got a couple of questions about GE and Immelt that have been nagging at me. First, has GE become overly focused on Washington? Second, when will Immelt deliver for GE shareholders?

The first question was prompted by an aside in John Harwood’s column in The Times a week ago, about the Obama administration’s all-out effort to get Ben Bernanke confirmed as Fed chief. He wrote:

The investor Warren Buffett and Jeffrey R. Immelt, the chairman of General Electric, helped contact senators, a senior official said.

There’s nothing wrong with this, of course; Immelt has the right to ask senators to support Bernanke. But it reminded me that this registered Republican and his company have closely aligned their interests with the administration. Immelt serves on the president’s Economic Recovery Advisory Board. Newly-released figures show that among big companies or unions, GE was second only to Exxon Mobil in lobbying expenses during 2009, spending $21.4 million. (Other sources put the figure higher.) This isn’t a surprise–GE is a huge company (2009 revenues were $156 billion) and it has a myriad of Washington interests, including taxes, trade, energy policy and financial regulation.

But there’s more. GE’s Washington operation is a case study in Washington’s revolving door. Nancy Dorn, who runs the office, (more…)

Rich Liroff on BPA: Better safe than sorry

Friday, January 29th, 2010

Today’s guest post is from Richard A. Liroff, Ph.D., the founder and director of the Investor Environmental Health Network (IEHN), a group of investors and NGO that advocates for safer corporate chemicals policies to reduce financial and reputational risk to companies, and grow long-term shareholder value. That’s a mouthful, but in essence, Rich and his allies try to persuade companies to use safer chemicals; you can find a list of shareholder resolutions on safer chemicals policies at the IEHN website, www.iehn.org.

Rich Liroff

Rich Liroff

A lifelong environmentalist, Rich has worked on toxic issues of various kinds since the late 1980s, when he looked at indoor air quality. “That work exposed me to the idea that air pollution hazards from toxics might be greater indoors than outdoors,” he told me. He formed IEHN in 2004 and says: “I thought the best way to move the issue forward was by working with the private sector.” Since then, of course, we’ve heard a lot about chemicals in products ranging from household cleaners to toys to cosmetics. This article is about BPA, which has interested me since I wrote a long story for cnnmoney.com called Wal-Mart: the new FDA in 2008. I worried then that the BPA controversy was more about emotion and entrenched interests (on both sides) than it was about science. I’m not sure things have improved much, but you can be the judge of that. Rich’s column originally appeared at Greenbiz.

On January 15, 2010, The U.S. Food and Drug Administration (FDA) shifted its position on the safety of the chemical Bisphenol A (BPA), expressing for the first time some concern about safety, announcing further research, and providing tips for parents to minimize infants’ exposure.

As a result, smart companies will change the way they communicate about BPA and as well as search for alternatives to better align themselves with consumer concerns. Some companies could gain reputational benefits and free media attention from supporting proposed legislation restricting use of BPA. (more…)

Wanted: A cultural revolution

Tuesday, January 12th, 2010

pogoplaque“It’s no longer enough to change our light bulbs. We need to change our culture.”

So says Erik Assadourian, senior researcher at the Worldwatch Institute and project director of a provocative and timely new book called 2010 State of the World: Transforming Cultures from Consumerism to Sustainability. Its argument is simple: The most important driver of the world’s ecological crises, including climate change, is not venal oil or coal companies or indifferent politicians but western consumer culture–that is, us.

Global consumption has grown dramatically since World War II, reaching $30.5 trillion in 2006, up sixfold since 1960. This is, in part, a very good thing–billions of people have emerged from poverty–but today’s prevailing consumption patterns are, quite simply, unsustainable. The rich (meaning you and me) are the worst offenders but ecologists say that even at income levels that we think of as substandard–say, $5,000 or $6,000 per person per year–people are consuming at rates that will deplete the earth’s resources, cause catastrophic climate change, wipe our species and generally trash the only planet we have.  About a third of the world’s people live above this standard, and the others, presumably, aspire to do the same.

This is not a message that either business or mainstream environmental groups want you to hear, which is why you don’t hear it often. Most businesses, though not all of then, are in the business of persuading people to consume more. They shaped the consumer culture. And enviros have found that telling their members and donors to buy less stuff is a downer, and not an effective fund-raising message, especially among the well-to-do.

But, as Assadourian said during a conference call with reporters, consumer culture is not only causing environmental havoc, it’s often failing to deliver the well-being that it promises.

Most people understand–and psychological studies of happiness confirm–that after we have achieved basic economic security (itself a cultural norm), what really makes us happy are close relationships, meaningful work, connections to community and good health.

You can’t buy those things at the mall.

“Two centuries of intentional cultivation of consumerism  has led to us seeing it as perfectly natural to define ourselves primarily by what and how much we  consume,” he said. Consumerism is so embedded in our culture today that, most of the time, it’s as invisible as the air we breathe. (more…)

Why Stewart Brand’s new book is a must-read

Tuesday, January 5th, 2010

Many books shaped my thinking about business, economics and the environment during 2009. Last year was the year that I discovered Nassim Nicholas Taleb and The Black Swan, to my great delight, as well as the year that I began to explore behavioral economics by reading Daniel Ariely’s Predictably Irrational and Nudge by Cass Sunstein and Richard Thaler. I enjoyed my friend Russell Roberts’ libertarian romance (yep) The Invisible Heart, and I learned a lot from The Myth of the Rational Market, a timely and readable history of the economics of markets by my ex-Fortune colleague Justin Fox.  The Good Soldiers by David Finkel is a searing up-close look at the surge in Iraq that should be read by any American citizen who wants to better understand the human costs of the wars being waged by our government.

SBjpg-filteredBut the book that I most want to recommend to readers of this blog is Whole Earth Discipline: An Ecopragmatist Manifesto by Stewart Brand. It’s brilliant, controversial, unconventional and lively. Nothing I read in 2009 changed my thinking more.

I’m not alone in my admiration for Stewart’s book. Paul Hawken calls it “likely one of the most original and important books of the century.…” Edward O. Wilson says it is “ominous and exhilirating.” Larry Brilliant says it is “an absolutely seminal work, extraordinarily well written, a tour de force of so many interconnected worlds and lives and studies.” Nice blurbs, no?

The praise is all the more remarkable because Whole Earth Discipline argues that we need nuclear power to combat global warming, that we need biotechnology to feed the world and that we need to take  geo-engineering seriously — ideas that are anathema to much, though not all, of the environmental movement that Stewart helped create roughly 40 years ago.

For those of you (younger readers) who aren’t familiar with his work, Stewart, who is a vigorous 72-year-old, is best known as the editor of Whole Earth Catalog, an influential compendium of all things countercultural, published in the late 1960s and 1970s, with a photo of the earth seen from space on its cover. After an LSD-induced experience that got him thinking about the curve of the earth, Stewart campaigned to have NASA release the picture. Later, he wrote:

It is no accident of history that the first Earth Day, in April 1970, came so soon after color photographs of the whole earth from space were made by homesick astronauts on the Apollo 8 mission to the moon in December 1968. Those riveting Earth photos reframed everything. For the first time humanity saw itself from outside… Humanity’s habitat looked tiny, fragile and rare. Suddenly humans had a planet to tend to.

Since then, Stewart has been a writer, a speaker, an organizer, a pioneer of online communities as a founder of the WELL (the “Whole Eart ‘Lectronic Link,” where I first discovered the power of the Internet), a consultant to companies and the owner of a tugboat in San Francisco where he lives with his wife, Ryan Phelan. He writes: (more…)

My favorite green technology

Wednesday, December 23rd, 2009

No offense to those working hard to bring wind, solar or geothermal energy to scale, or to people who are jazzed about energy efficiency, but I’m going to end my blogging for 2009 by saying that I am really excited about electric cars. It’s my favorite green technology, and one that’s on the verge of a breakthrough.

Recently, I’ve had a chance to ride (briefly) in the Coda and in the Renault Fluence EV, part of Better Place’s Denmark rollout. I’ve written at length about BYD, the Chinese electric-car company owned in part by Warren Buffett’s Berkshire Hathaway. And next year I am hoping to check out the Chevy Volt and the Nissan Leaf, as well as the Aptera from entrepreneur Bill Gross and the Tesla if the price comes down.

The electric car could bring about the biggest transformation of the auto industry since its invention. If  all goes well, we will be seeing many more of them on the roads in 2010 and especially 2011.

With thanks to Plug In America, a nonprofit group that promotes plug-in vehicles, which put this list together, here are12 myths about electric cars that, just in time for the 12 days of Christmas. Plug In America began as a group of electric vehicle (EV) drivers, so its members are speaking from experience.

I’m now going to do my best to slow down and stay away from my laptop between Christmas and New Year’s Day–so enjoy your holidays, happy new year and I’ll be back in 2010.

Aptera

Aptera

1. MYTH: EVs don’t have enough range. You’ll be stranded when you run out of electricity

FACT: Americans drive an average of 40 miles per day, according to the U.S. Dept. of Transportation. Most new BEVs have a range of at least double that and can be charged at any ordinary electrical outlet (120V) or publicly accessible station with a faster charger. The latter, already in use, will proliferate as the plug-in infrastructure is built out. At present, all it takes is planning for EV owners, who can travel up to 120 miles on a single charge, to use their cars on heavy travel days. Alternatively, a PHEV goes at least 300 miles on a combination of electricity and gasoline.

2. Myth: EVs are good for short city trips only

FACT: Consumers have owned and driven EVs for seven years or more and regularly use them for trips of up to 120 miles. (more…)