With friends like these, who needs enemies?

59a428e7-4ca9-4d6c-a14e-79964bedde8c-1020x612Back in January, I wrote a blog post headlined A modest proposal for big green NGOs that suggested, in what was intended to be a helpful way, that the Environmental Defense Fund, the World Wildlife Fund and The Nature Conservancy urge their corporate allies to speak up in support of the EPA’s proposed rules to regulate coal plants, a cornerstone of the Obama administration climate policy.

They all assured me that they are doing the very best they can to persuade big companies to do so.

Well, it turns out they’re not having much success.

Today, The Guardian published my story about those corporate allies, headlined Why Corporate America is Reluctant to Take a Stand on Climate Action. I surveyed 50 companies that have worked with EDF, WWF or The Nature Conservancy asking them for their position on the EPA Clean Power Plan.

Guess how many of the 50 told me that they are working alongside their environmental partners to support the plan? Three–Google, Mars and Starbucks.

Most are staying out of the fight but as Anne Kelly of Ceres, which is lobbying for the plan, told me, their “silence isn’t neutrality.” Instead, their silence allows the US Chamber of Commerce and other conservative trade associations to speak for the business community on climate and energy issues. And, as you probably know, the chamber is no fan of climate regulation.

Here’s how my story begins:

Many environmental groups consider the Obama administration’s plan to regulate carbon-spewing coal plants, which aims to cut carbon pollution by 30%, as one of our last chances to win the fight against climate change.

But the vast majority of their top corporate partners – companies like Coca-Cola, PepsiCo, FedEx, UPS, Target and Walmart, which have worked with environmental NGOs for years – aren’t backing them up, according to a Guardian survey.

The survey consisted of calls and emails to nearly 50 corporations that work with three environmental groups – Environmental Defense Fund, The Nature Conservancy and the World Wildlife Fund US – that have identified the Environmental Protection Agency’s Clean Power Plan as a top priority. These are Fortune 500 global companies that tout their sustainability efforts and celebrate their environmental partnerships.

Just three of them – Starbucks, Mars and Google – support the Clean Power Plan, which is a cornerstone of the Obama administration’s climate change efforts. Caterpillar and CSX Corp, a coal-carrying railroad, oppose the EPA plan. The vast majority take no position.

The reluctance of companies to take a stand raises questions about the depth of partnerships between companies and NGOs. By remaining quiet, these companies make it harder for the EPA to roll out the plan in the face of vehement opposition from fossil fuel companies and Republicans. “Silence isn’t neutral,” says Anne Kelly of Ceres, who is organizing companies to support the EPA.

The lack of public support could jeopardize the clean power plan, and – if the US isn’t able to make a strong climate commitment as a result – could ultimately undermine the success of the global climate talks in Paris this year.

The companies that won’t get involved say it’s because the regulation of power plant emissions is not core to their business. Environmentalists maintain that climate change is everybody’s business.

I hope you’ll take the time to read the rest of the story, and share it. I also put together a sidebar compiling the corporate responses that I collected to my survey.

I’m sorry to say that all of this points to the shallowness of much  corporate rhetoric about “sustainability.” It also tells me that, more than ever, we need a political movement to demand government action to stop climate pollution. Companies need to know that if they don’t take a stand on behalf of the climate, they’re going to hear about it from activist groups (where are you, Greenpeace, now that we need you?) and they’re going to risk losing the support of their employees and customers.

Put simply, without a whole lot more people pushing them in the right direction, GE, Goldman Sachs, IBM and Walmart aren’t going to get us where we need to go. Not even close.

If I sound frustrated, it’s because I’m feeling that way. I must add that none of this is personal. I like and respect the people I know at EDF, WWF and The Nature Conservancy. They’re smart, dedicated and hard-working. But they’re mostly playing the same insiders game that failed to get climate legislation through Congress back in 2009.

I also admire the sustainability executives at many of the companies that are sitting on the sidelines of the climate fight. They’re great internal advocates for the cause, and they’re not to blame for this widespread corporate indifference. It’s their CEOs who need a wake-up call.

In the end, the issue of global warming is really not all that complicated: It’s time to stop using the atmosphere as a waste dump for carbon pollution. That’s just wrong, and that’s why the EPA rules should be everybody’s business.

Green business, and its limits

2015-3-clean-energy-ss-ph1-WBLast week, Sierra Magazine, the magazine of the Sierra Club, published my story headlined The 100% Club, about the impressive commitments that a growing number of big companies are making around renewable energy. The story highlighted Ikea, Intel and Mars, but I could just as easily have written about Apple or Google or Walmart, all of whom are buying lots of wind and solar power. Here’s how the story begins:

Steve Howard, a 49-year-old Brit, has devoted most of his career to fighting climate change. He spent seven years as CEO of the Climate Group, a global nonprofit whose goal is “a prosperous, low-carbon future for all.” He sounds the part: “There is no peak sun, there is no peak wind,” he declares. “We struck sun and we struck wind before we struck oil.”

These days, Howard pursues his climate activism as chief sustainability officer of the IKEA Group, the world’s largest furniture retailer. IKEA has invested $2 billion in wind and solar power to meet its goal of producing as much renewable energy as it consumes by 2020. “We clearly see them as our future sources of energy,” he says.

IKEA is just one of dozens of big companies that are making significant investments in clean energy. In fact, a majority of Fortune 100 companies have invested in solar or wind power or have pledged to reduce their greenhouse gas emissions, or both, according to Power Forward 2014: Why the World’s Largest Companies Are Investing in Renewable Energy, a report from the sustainability advocacy group Ceres. They are doing so because they believe it makes good business sense: The costs of solar and wind are falling, state and federal governments offer generous subsidies, and fossil fuel prices can be volatile. Some see green energy commitments as a way to burnish their reputations. Still others are responding to carbon regulation–Europe, California, nine northeastern states, and British Columbia all tax or cap greenhouse gas emissions, and some business leaders believe that many other governments will, and should, follow suit. Whatever the reasons, these companies are signaling that they accept the reality of climate change and proving that renewable energy is neither a job killer nor a drag on economic growth.

The list of companies that have promised to purchase all of their energy from renewable power by 2020– the so-called 100% club — includes insurer Swiss Re, British telecommunications group BT, H&M, Mars, Nestle, and Philips. Kohl’s, Whole Foods Market, Staples, TD Bank, Herman Miller, REI, and the Philadelphia Phillies are already there, although some are getting there by buying Renewable Energy Credits, or RECs, which may or may not be effective, depending on who you ask.

But here’s the thing: It’s not nearly enough. The most telling data point in the story is this:

The 1,300 companies and nonprofits that have joined the EPA’s Green Power Partnership, a voluntary program to promote clean energy, collectively use 28 billion kilowatt-hours of green power annually. That sounds like a lot, and it is–but total U.S. electricity consumption is 3.832 trillion kWh.

This underscores the limits of voluntary action. Then there’s this: Self-reported greenhouse gas emissions from the world’s 500 largest businesses – which include many of the companies named above — actually grew by 3.1% between 2010 and 2013, according to a Thomson Reuters report released in December.

So while plenty of “good” companies are stepping up to do their part, their efforts are being more than offset by others. That’s why government action to curb GHG emissions, particularly the EPA’s Clean Power Plan here in the US, is so important. Those companies that are serious about climate change will demonstrate it by spending some of their political capital to back the EPA.

You can read the rest of my story here.

Who lobbies for the outdoors?

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Increasingly, I’m struck by the power of conservative business lobbies in Washington, including the US Chamber of Commerce, the National Association of Manufacturers and the American Petroleum Institute. They speak effectively on behalf of fossil fuel interests, and often claim to speak for all of business when it comes to the issue of climate change — even though broad sectors of the US economy, notably agriculture and tourism (not to mention coastal real estate), are threatened by rising temperatures and extreme weather.

Last week in the Guardian, I looked at what’s called the outdoor economy — a sector that is big and growing.The Outdoor Industry Association estimates that outdoor recreation, which includes hiking, biking, camping, fishing, hunting, skiing and motorcycling, supports 6.1m jobs in the US. That’s more than fossil fuels, some say, although the numbers are disputed.

What’s inarguable is that the oil, gas and coal industries carry a lot more clout in DC than does the outdoor industry. Here’s how my story begins:

Two small California ski resorts, Dodge Ridge and Badger Pass, shut down in January as temperatures climbed to near-record highs and weeks passed without snow. With the Sierras suffering a historic drought, it’s hard to say for certain if they’ll reopen.

The ski-industry closings are a small but representative setback for what a new report calls the outdoor economy — that is, “the stream of economic output that results from the protection and sustainable use of America’s lands and waters when they are preserved in a largely undeveloped state”.

Outdoor recreation is a powerful economic force. It accounts for “more direct jobs than oil, natural gas and mining combined”, according to the report published by the Center for American Progress, a progressive think tank, in January.

But in the political arena, those businesses that depend upon nature are decided underdogs when they battle adversaries, such as the fossil fuel industry, which would like to see more exploration for oil and gas on federal lands.

If you’ve ever visited one of the big national parks out west, you can see why the outdoor industry is outgunned (pardon the expression) in your nation’s capital. Typically, the hotels, motels, restaurants, fishing outfitters and the like on the perimeter of the  parks are small businesses. They can’t hire lobbyists or make meaningful campaign contributions.

One company that has done a fine job of promoting the outdoors is The North Face. They ran a great Internet and TV ad campaign last year, encouraging more people to spend time in beautiful places. As more Americans spend more time outdoors, it seems likely that they will want to see this nation’s most beautiful places protected. Admittedly, that’s a slow and indirect way to build a constituency for climate action.

Take two minutes and enjoy this North Face commercial, set to the music of Woody Guthrie, performed by My Morning Jacket. And is it just me or did Jeep steal this idea for its Super Bowl ad?

You can read the rest of my story here.

A modest proposal for big green NGOs

da9cdecb-7922-49b2-b8a2-3ff0969881e4-1020x612Here’s an idea for big environmental NGOs that work with corporate partners: Kindly recommend to those partners that they raise their voices in Washington in support of the EPA’s proposed coal plant rules.

The coal plant rules are the cornerstone of the Obama administration’s climate change policy. Yet they are being strongly opposed by mainstream Washington business lobbies like the US Chamber of Commerce and the National Association of Manufacturers (NAM).

The big corporate partners of the green groups could make a difference. They could support the rules on their own–few have done so–and, just as important, speak up inside the halls of the chamber and NAM, asking them to halt their opposition to the rules.

No climate issue matters more, Mindy Lubber of Ceres told me, for a story posted the other day at Guardian Sustainable Business, which we’ll get to in a moment.

In a report on corporate engagement [PDF], WWF lists more than a dozen “corporate engagements with an annual budget greater than US$250,000.” Partners include Avon Products, Bank of America, The Coca-Cola Co., Domtar, Ecolab, Google, Johnson & Johnson, Kimberly-Clark, Mars, McDonald’s, Procter & Gamble, Sealed Air, Sodexo and Toyota.

The Nature Conservancy says on its website that “the private sector has an important role to play in advancing our conservation mission” and publishes a long list of partners, including 3M, Alaska Airlines, AT&T, Avon, Bank of America, BHP Billiton, Boeing, BP, Bunge, Cargill, Caterpillar, CH2MHill, Coca-Cola, CSX Transportation, Delta, Disney, Dow Chemical, EcoLab, General Mills, Goldman Sachs, Harley Davidson, IBM, JPMorgan Chase, Kimpton Hotels, Lowe’s, Macy’s, Monsanto, Mosaic, Patagonia, PepsiCo, Rio Tinto, SABMiller, Shell, Target, TDBank, Uber and Xerox.

The Environmental Defense Fund, for its part, works with AT&T, Caterpillar, DuPont,  KKR, McDonald’s, Ocean Spray, Starbucks and Walmart, among others.

I could go on but you get the point. Now contrast those lists with the challenges faced by Mindy Lubber and Ceres, as they try to line up companies to back the EPA rules. That’s why my story is about, and here is how it begins:

As the US political fight over climate change moves from Washington DC to 50 state capitals, companies that are serious about sustainability need to support theEPA’s proposed rules to curb carbon pollution from existing power plants.

So, at least, says Mindy Lubber, the president of Ceres, a nonprofit that brings together companies, investors and public-interest groups to advocate for sustainability.

“Companies have the strength and power – the footprint to make a huge difference,” Lubber told me at a lunch earlier this month. Ceres celebrates its 25th anniversary Tuesday.

It’s hard to overstate the importance of the proposed power plant rules, which are the cornerstone of President Barack Obama’s climate agenda. Power plants account for nearly 40% of all US greenhouse gas emissions.

What Ceres has found, Mindy told me, is that it’s hard to get big companies to support  the EPA and the president, and overcome their habitual, instinctive resistance to government regulation.

Last month, as I wrote in the Guardian, Ceres released a statement supporting the rules that was signed by more than 200 companies but most were small or midsized. Big firms to sign on included Ikea, Kellogg, Levi Strauss, Mars, Nestle, Nike, Novelis, VF and Unilever. They are to be commended.

Ceres’s list would carry a lot more weight if other NGOS like WWF, The Nature Conservancy and Environmental Defense persuaded  most or all their corporate partners to sign on.

Until they do, conservative trade associations like the US Chamber, NAM, the National Mining Association and the American Farm Bureau Federation, which have joined together to oppose the EPA rules, will speak for business in Washington. I’ve never understood why so many companies that profess to care about the environment — and, in my view, actually do care about the environment — have allowed that to happen.

You can read the rest of my story here.

Was Climate Week a good week?

climate_summit_2014A reporter’s job is sometimes fun and glamorous, often not. My trip to New York for “Climate Week” was not. It was, in fact, a bit of a fiasco. I had hoped to cover a Climate Group event on Monday but was told that I had to be there by 10 a.m., without luggage, for security reasons. This was all but impossible since I was coming up from DC that morning. So I watched a live stream of the event, which froze and skipped during an interview with Apple CEO Time Cook.

Meanwhile, I twice tried to pick up my UN credentials and both times found lines winding up 45th Street, with estimated wait times of about two hours. Crazy, no? The UN knows how many credentials, roughly, it will have to give out because they all required advance approval, and still it can’t staff its desks properly. These are the people want to oversee a global regulatory scheme to manage greenhouse gas emissions. Good luck with that.

I say this not to complain–I have a great job, mostly–but to explain that my less-than-sunny mood during the week might have affected my coverage. (I hope not but we’re all human.) I wrote two stories for Guardian Sustainable Business, one pegged to Tim Cook’s interview, which eventually found its way online, and another looking at the yawning gap between the rhetoric at Climate Week events and the reality that the world is losing the battle, such as it is, to curb climate change.

Needless to say, I don’t think it’s time to give up. I’d like to do some more reporting before coming to any conclusions but it seems increasingly possible that the US and China can lead the way to global GHG reductions, outside of the UN process, with support from the EU and Japan. Getting a dozen so-called major emitters to work on the problem might prove more fruitful hat another confab of 190 countries at COP-20-something-but-who’s-counting.

Later, I was heartened to read about an agreement announced this week called the New York declaration on forests under which governments and global companies agreed to bring a halt to deforestation by 2030. Again, I need to do some more reporting on this. but the commitments from such big firms as Cargill and Asia Pulp and Paper are signs that we may actually be winning the battle to slow or stop deforestation. A big deal, if true.

In any event, here’s how my story on Tim Cook and the Climate Group event begins:

Tim Cook is the CEO of Apple, possibly the world’s most innovative company and inarguably its most valuable – just ahead of fossil-fuel giant ExxonMobil. So his appearance at the opening of Climate Week 2014 on Monday lent a little celebrity buzz to a day which otherwise had a been-there-done-that feeling about it.

The climate change issue, Cook told a gathering of business and political leaders in New York, resonates with Apple’s workers and with its customers, which is why the company has moved from environmental laggard to green leader in recent years, winning plaudits even from Greenpeace.

“The long-term consequences of not addressing climate are huge,” he said. “I don’t think anyone can overstate that.”

You can read the rest here.

My broader look at Climate Week begins this way, and later references a new study on how the world is building coal plants faster than it is dismantling them:

Covering UN meetings is not a job for the faint of heart, and this week’s climate summit in New York has been no exception. Two-hour waits for credentials are common. Staffers are plentiful, polite and ineffectual. Barricades, private security forces and squadrons of New York’s finest protect the UN compound on Manhattan’s Upper East Side from unwanted incursions from the world beyond.

The summit itself consists of a series of carefully-scripted speeches from business and political leaders. They mix dire warnings with calls to action. Invariably, we are told, no country, company or NGO can solve the problem on its own; we must all work together. Partnerships are key. Climate is the defining issue of our time. The problem is urgent. The time to act is now. The future depends on us.

It is all depressingly familiar to anyone who has been to Durban, Cancun or Copenhagen for summits past.

“You can make history or be vilified by it,” says the newly appointed UN Messenger of Peace on Climate Change, as the official proceedings began on Tuesday. Why, it’s Leonardo DiCaprio of Titanic fame, who knows a disaster in the making when he sees one.

You can read the rest here.

Patagonia’s CEO, marching for climate action

6a00d8341d07fd53ef01b7c6e24a7d970b-500wiRecently, I had lunch with Mary Wenzel, a senior vice president at Wells Fargo who directs the bank’s environmental projects. The bank’s efforts are laudable–it intends to provide $30 billion of financing by 2020 to business opportunities that protect the environment, it’s making its offices more efficient, it’s a big-time supporter of a nonprofit called Grid Alternatives that delivers solar power to low-income people, etc. But when I asked Mary whether Wells Fargo has declared itself to be in favor of  a carbon tax or a cap on carbon dioxide emissions, she told me that, no, that’s a step the bank has not yet been willing to take.

In that regard, Wells Fargo is typical of most big companies in the US. None of the big Wall Street banks–Bank of America, JPMorgan Chase or Citi–has taken a strong political position on the climate issue, as best as I can tell. And although a dozen or so big companies, including an oil company (Shell), utilities (NRG Energy, Duke Energy) and GE joined together back in 2008 to form the U.S. Climate Action Partnership to call for regulation of greenhouse gases, their efforts are now dormant.

With the exception of the work being done by the BICEP group around its Climate Declaration (weakly-worded as it is), America’s corporate leaders have largely been missing in action when it comes to the climate issue.

I thought about all that when I heard today that Patagonia, the outdoor clothing company, is closing its New York stores this Sunday until 3 p.m. so that its employees can join the People’s Climate March. Rose Marcario, Patagonia’s CEO, will join the march. Patagonia has also taken out a full-page ad in today’s New York Times about the march.

In a blog post, Marcario writes about her great-grandfather, an immigrant laborer who with others worked to build on the city’s streets because “they wanted to create a better future for their children and grandchildren.” That’s what this march is about, she writes:

It is the work of this generation to make clear we reject the status quo—a race toward the destruction of our planet and the wild places we play in and love. We cannot sit idly by while large special interests destroy the planet for profit without regard for our children and grandchildren.

We have to keep the pressure on. That means being loud and visible in the streets, in town halls and our capitals, and most important, in our elections—voting for candidates who understand we are facing a climate crisis.

Meantime, Patagonia has launched a crowd-sourced art campaign called Vote the Environment that is designed to inspire voters – especially young people – to support candidates who will act on behalf of the future and the climate in the upcoming midterm election.

Now–I understand that Patagonia is a private company, and a relatively small one, that markets itself to consumers who love the outdoors. It’s a low-risk proposition for Patagonia and Marcario to join a climate march. Cynics will suspect that Patagonia is inviting marchers to gather in its Central Park West store for coffee and bagels on Sunday morning in the hope that they will come back later to buy its pricey gear.

But, even acknowledging that Patagonia is sui generis, I’m struck by the fact that the distance between Patagonia (and a handful of other forward-thinking companies) and mainstream corporate America is so vast. Imagine the CEOs of the big banks or GE or Walmart marching for climate action. It’s inconceivable.

What is conceivable — and what’s fair — is to ask those CEOs to follow the lead of Rose Marcario and a handful of other business leaders (like the Risky Business trio of Hank Paulsen, Michael Bloomberg and Tom Steyer)  by engaging, in a serious way, in the climate debate. That means putting climate regulation at the top of their companies’ Washington agendas, and refusing to support political candidates who don’t have a plan to deal with the climate crisis. If not now, when?

Tax avoidance, and corporate responsibility

uncle-sam-pay-your-taxes1Would you consider Apple, Coca-Cola, General Electric, Google, Microsoft, Nike and PepsiCo good corporate citizens? Certainly they position themselves that way, and they deserve credit for their leadership around human rights (Apple, Nike), climate change (GE), water (Coca-Cola), renewable energy (Google, Microsoft) and sustainable agriculture (PepsiCo).

But when it comes to paying corporate income taxes, they have some explaining to do.

That, at least, is the conclusion that I came to after reading an excellent report on tax avoidance titled Offshore Shell Games, and published last month by Citizens for Tax Justice and US PIRG.

Corporate taxation is all over the news these days as US firms move their headquarters overseas for tax reasons, in a process known as inversion. But aggressive maneuvering to avoid taxes is nothing new, as I wrote today in a story for Guardian Sustainable Business.

Here’s how the story begins:

America’s a great country. That’s why people from all over the world — including, lately and tragically, thousands of poor children from Central America — clamor to get in. So why are some of America’s wealthiest companies trying to get out?

It’s simple, really — they don’t want to pay US taxes.

You’ve probably heard about Walgreen’s, your neighborhood pharmacy that is contemplating moving its headquarters to Switzerland to reduce its tax bill. Medtronic, the big medical device company based in Minneapolis, Minnesota, has plans to move to Ireland, for tax-avoidance purposes. Then there’s Mylan, a maker of generic drugs based near Pittsburgh, Pennsylavia, which intends to incorporate in the Netherlands, where the tax rate is lower. Mylan’s CEO, as it happens, is Heather Bresch — the daughter of US Senator Joe Manchin, a West Virginia Democrat — and she says she has no choice but to go.

Other companies aren’t going so far as to relocate their headquarters, a process known as inversion that often requires them to acquire a company based elsewhere. Instead, to avoid US taxes, they are parking their earnings offshore, often in tax havens like Bermuda and the Cayman Islands that levy no corporate income taxes. That tactic, which like the inversions is legal, is being employed by companies that position themselves as good corporate citizens — among them Apple, Coca-Cola, General Electric, Google, Microsoft, Nike and PepsiCo.

Exploiting loopholes in the tax laws may or may not be legal–the IRS is hopelessly outgunned by big corporate tax departments–but it’s unethical.

The report from Citizens for Tax Justice and US PIRG, which makes for surprisingly compelling reading, details a number of questionable tax avoidance strategies that allow companies to shift earnings, purely for tax purposes, from high-tax jurisdictions like the US to tax havens. Here are my favorite fun facts from the report:

The report found that subsidiaries of US companies reported earning $94bn in Bermuda, which has a gross domestic product of just $6bn. That doesn’t compute. US firms reported earning another $51bn in the Cayman Islands, where GDP is about $3bn.

This is outrageous, and please don’t tell me that the way to fix the problem is to reduce the admittedly high US corporate income tax rate. The US cannot compete with places where the tax rate is zero.

All of these companies, of course, benefit enormously from government services–public education, police, the rule of law, highways, etc. Those companies that don’t pay their fair share shift the burden to others–small businesses that can’t afford high-priced accountants, companies that don’t have overseas operations and therefore can’t take advantage of the opportunity engage in tax-avoiding shenanigans and, of course, the rest of us.

You can read the rest of my story here.

A murmur, not a message

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.

Mike Biddle, libertarian environmentalist

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.

The long journey to “sustainable travel”

tr-travel-smart-ff-miles-608Global travel is a huge business. A billion tourists traveled the world during 2012, and the industry generated more than $2 trillion in direct global contribution to GDP from business and leisure trips, according to the World Travel & Tourism Council (WTTC).

So it’s unfortunate that the travel industry–which depends, more than others, on a healthy planet–is just beginning to get serious about measuring and reducing its environment impact. That, at least, is my conclusion after surveying leading US-based hotel, airline and rental car companies. What’s more, as I’ve thought about the travel business, it’s hard to envision what a truly sustainable travel industry would look like. To dramatically reduce the environmental impact of travel will require the widespread adoption of low carbon fuels, the decarbonization of the electricity sector and radically “greener” buildings, all of which appear to be many years away.

I wrote about the travel industry and sustainability for the current issue of a trade magazine called Global Business Travel Magazine. The industry is clearly moving in the right direction. The question is, at what pace and scale?  In my story on hotels, I wrote:

Every major hotelier—Starwood Marriott, Hilton, Hyatt, IHC, and the rest—has invested in energy and water efficiency, reported its carbon footprint online, reduced waste, organized “green teams” of engaged employees, and embraced social programs ranging from recycling soap and toiletries to teaching employees to recognize and report human sex trafficking. That’s all well and good, but these efforts are not yet comprehensive or comparable in a way that would allow corporate travel buyers and managers (or, for that matter, leisure travelers) to measure one hotel chain against another. Nor are there reliable, broad-based, third-party standards, ratings, or rankings that reward industry leaders and shame laggards, as there are in other business categories, ranging from seafood and forestry to cell phones and appliances.

Essentially, hotel owners and operators have focused on efficiency–a relatively easy win-win because it saves hotel operators money and earns them green credibility. But efficiency can take the industry only so far (pun intended).

My story identifies Marriott as the industry leader but goes on to say that

Marriott—like all of its rivals—is still struggling to balance the goal of sustainability with the need to grow its business. Despite putting a wide range of efficiency measures into place, the company has added rooms in recent years, and as a result its greenhouse gas emissions have grown from 3.19 million metric tons in 2007 to 3.55 million metric tons in 2012—an increase of 11 percent. Scientists say that businesses and individuals have to reduce their absolute carbon emissions dramatically to limit the risks of catastrophic climate impacts.

Can the hotel industry grow while reducing its environmental footprint in absolute terms? It’s hard to see how, at least in the short run. The environmentally responsible thing to do is to travel less. For business travelers, that means meeting via teleconferences and eliminating some trips; many companies are doing that, of course. As for leisure travel, staycations, reading National Geographic or watching the Travel Channel can’t substitute for the real things. And there’s an obvious downside to traveling less: About 101 million people around the world earn a living from the travel biz, according to the WCCT, and some of those jobs will disappear if the industry shrinks.

Airlines are, if anything, in even more of a pickle that hotels. Yes, newer planes are far more efficient than older ones, but the best way to sharply reduce carbon emissions from air travel is by substituting biofuels for petroleum-based fuels. The trouble is, biofuels today are very costly. A carbon tax would encourage airlines and airplane manufacturers to invest more in low-carbon fuels, but the US airline industry has lobbied hard against the EU’s attempts to impose a carbon tax on international air travel because it would raise the cost of plane tickets. Meantime, comfort and efficiency are often at odds. Planes configured to carry more people are good for the planet but not so good for the traveler in the middle seat of row 42.

All of this is a reminder that big environmental problems like climate change simple can’t be solved by individual companies or industries. They require radical system change. This is why it’s so important for responsible businesses to make themselves heard in the public policy arena. The travel industry ought to be a loud voice for a carbon tax and for government support of research into clean technology. That’s the best strategy to bring about a low-carbon economy, and to protect the beautiful places that people like to visit.

You can read my travel industry story here.