Walmart’s index: This is big. Really big.

A Walmart with LED lights

A Walmart with LED lights

This is the first of three stories about Walmart’s supplier sustainability index.

Since launching its sustainability program in 2006, Walmart has reduced energy consumption in its stores, installed solar panels on its rooftops, curbed emissions from its trucks and recyled millions of tons of its trash. Now that the world’s biggest retailer has streamlined its own operations, it is turning its attention elsewhere–actually, almost everywhere.

Since last fall, Walmart has rolled out what it calls a supplier sustainability index to thousands of suppliers, asking them pointed questions about their operations and prodding them to better understand and manage their own supply chains.

It’s Walmart’s most ambitious environmental project ever, and if all goes according to plan, it will change the way all kinds of consumer products–clothes, toys, electronics, food and beverages–are made. The typical Walmart stocks 125,000 to 150,000 products (!), and the envirommental and social performance of most of the companies that make them them will soon be rated and ranked in Bentonville.

So Walmart is asking lots of questions of its suppliers. Among them:

How can wheat be grown with less water and fertilizer? How can chemicals of concern be removed from toys? What mining practices were used to extract copper, gold and silver for computers or jewelry? What percentage of your televisions sold last year were Energy Star certified? Do the grapes in a bottle of wine come from a farm with a biodiversity management plan? How much water was needed to produce those polyester pants?

If this sounds like a massive and fiendishly complicated undertaking, well, it is. It has been in the works since 2009, when Walmart unveiled The Sustainability Consortium, a nonprofit coalition led by the University of Arkansas and Arizona State University that was set up to provide scientific research to undergird the effort. Since then, a few other retailers (Tesco, Kroger, Ahold, Best Buy) and dozens of consumer products brands (Coca-Cola, Disney, Kellogg’s, Mars) have signed on to the consortium. [click to continue...]

John Mackey: Hippie, libertarian, CEO

imageThe top executives of big publicly-traded US companies, in my experience, tend to be rather drab fellows (nearly all are men) who choose their words carefully, hew carefully to the middle of the road in their thinking and rarely say (or do) anything outrageous.*

Not John Mackey, the founder and co-CEO of Whole Foods Market. For better and occasionally for worse, Mackey is an original, who doesn’t run his company by any conventional management book.

Instead, he has written his own book, called Conscious Capitalism: Liberating the Heroic Spirit of Business, with co-author Raj Sisodia, an academic affiliated with Bentley University. It’s a good read, especially because of the insights it delivers into the unusual culture and practices of Whole Foods, as well as into Mackey’s own evolution.

Some examples from the book: [click to continue...]

Fruits and veggies are terrible things to waste

20130207-094217.jpgBy now, you’ve surely heard about the environmental impact of food waste. But the scale of the problem is not as well known. In a recent report, the Natural Resources Defense Council came up with these admittedly inexact but eye-popping numbers:

Getting food to our tables eats up 10 percent of the total U.S. energy budget, uses 50 percent of U.S. land, and swallows 80 percent of freshwater consumed in the United States. Yet, 40 percent of food in the United States today goes uneaten. That is more than 20 pounds of food per person every month. Not only does this mean that Americans are throwing out the equivalent of $165 billion each year, but also 25 percent of all freshwater and huge amounts of unnecessary chemicals, energy, and land. Moreover, almost all of that uneaten food ends up rotting in landfills where it accounts for almost 25 percent of U.S. Methane emissions. Nutrition is also lost in the mix—food saved by reducing losses9 by just 15 percent could feed more than 25 million Americans every year at a time when one in six Americans lack a secure supply of food to their tables.

The problem is getting worse, not better. Jonathan Bloom, a journalist who has become perhaps the world’s leading on food waste, notes in American Wasteland: How America Throws Away Nearly Half of Its Food (and What We Can Do About It) that the typical American now throws away his or her body weight in food each year and says:

Ominously, Americans’ per capita food waste has increased by 50 percent since 1974.

I’m a hawk when it comes to food waste. I’ve never considered the appearance of mold on a hunk of cheese reason to throw it away. I make batches of turkey soup from Thanksgiving leftovers. My children used to call me “the human garbage pail” because I scarfed up uneaten food from their plates. I was unembarassed. I almost find it painful to throw food away.

But personal vigilance alone will not solve the food waste problem, so I’m pleased to report that a couple of California entrepreneurs have come up with plan to reduce waste at a key juncture on the road from farm to table. Stuart Rudick, an investor in health and wellness businesses, and Anthony Zolezzi, a consultant, entrepreneur and author, have started a company called Food Star Partners, which uses a mobile phone app to alert supermarket customers when perishable produce is going on sale.

[click to continue...]

2012′s green business heroes

Bill McKibben does the math

Bill McKibben does the math

Some say, and with reason, that 2012 was the best year ever. Never in the history of the world has there been less hunger, less disease and more prosperity. Of course there’s plenty to worry about–the fiscal cliff, gun violence, chaos in Syria and the Congo–as always there will be. But, to paraphrase Martin Luther King, the long arc of history bends towards a more just and sustainable world.

In the little corner of the world that occupies much of my attention–the places where business and sustainability intersect–it has not been a good year. Global greenhouse gas emissions continue to rise. We’re burning more coal, oil and gas than ever. Policy is stuck, in the US and internationally. This will be the hottest year on record in the US, and still people don’t accept the science of climate change. Go figure.

That said, in this final blogpost of 2012,  I’d like to salute some people (again, mostly from the world of business and sustainability) who fought the good fight during the year  just past. Some are business people, others are politicians, activists and even journalists, but they are all doing what they can to bend the arc of history. They’re my green business heroes for 2012. [click to continue...]

The secret life of buildings

I arranged to meet Riggs Kubiak, the founder and CEO of a startup company called Honest Buildings, at Le Pain Quotidien, at 800 17th Street N.W. He’d been there for a while so we walked around the corner and did an interview at Teaism at 800 Connecticut Ave. There, he told me about his plans for Honest Buildings, an online networking platform that is designed to connect the owners of buildings with architects, contractors, suppliers, tenants, just about anyone with an interest in commercial real estate.

Riggs, who is just 31, is smart and passionate guy who has been fascinated by real estate since his college days. He was formerly head of sustainability for Tishman Speyer, a big real estate firm. With Honest Buildings, he’d like to create a hybrid of Facebook-Linked In-Yelp-Trip Advisor for real estate, and help drive transparency, efficiency and sustainability in the building industry. Investors seem to like the idea: Honest Buildings has just completed a seed round of financing led by Rockport Capital Partners and Mohr Davidow Ventures, two leading venture capital firms.

“Our platform can be a way to catalyze demand for efficient, high-performance buildings,” Riggs told me. “Transparency can have a monumental, game-changing effect.” [click to continue...]

Unreal: A better-for-you candy

I’m not a fan of lite beer, low-fat cheese or sugar-free ice cream. If I want to indulge, I’ll go all the way. If not, I’ll abstain.

So I’m not the target audience for Unreal, a new candy company that says it wants to recreate America’s favorite candies–M&M’s, Snickers, Reese’s Peanut Butter Cups and Milky Way–without the junk. In its effort to “unjunk” candy, Unreal Brands says its candy will have no corn syrup, no partially hydrogenated oils, no artificial colors, flavors and preservatives, no GMOs and less sugar and fewer calories than conventional candy bars.

Unreal has an appealing back story — it was started by a 13-year-old boy — and prominent fans, including NFL star Tom Brady and Twitter co-founder Jack Dorsey. The company says its key ingredients “need to be responsibly sourced, supporting farming communities and preventing destruction of the rain forests.” What’s more, Mats Lederhausen, a former McDonald’s executive who helped launch Chipotle, and is now chair of the the board of Business for Social Responsibility, has invested in the firm. Mats, who runs an investment firm called BeCause, told me by email:

Unreal is one of my favorite examples of a company born out of a “purpose bigger than their product” which as you know is the core of my mission. It attacks a huge social problem that cannot be fought by regulation but rather by developing a better product, free from the “nasties” and marketed to consumers with appeal rather than guilt

So I decided to take a look.

Getting an interview took some doing. A company spokeswoman told me that Unreal hadn’t worked out its “positioning” yet, and an interview scheduled with its CEO, John Burns, a private equity investor, was abruptly cancelled. But a few days later I got on the phone with Adam Melonas, an innovative young chef who practices “progressive cuisine” and, it turns out, was brought into Unreal by Nicky Bronner, the boy who started the company. Nicky got the company started, the story goes, because he loves candy and a couple of years ago, his parents wouldn’t let him eat what he collected on Halloween. Why not, they decided, try to create something better?

Chef Melonas,  who was then working in Madrid, got a phone call one day from Nicky, he told me. They were connected by a British physicist and author named Peter Barham, whose  research interests span polymer physics, penguin conservation and molecular gastronomy.

“The thing that struck me as odd in the beginning was that on the other end of the line was a 13-year-old child,” Adam said, when we spoke. “But I soon realized this was no ordinary 13-year-old. We talked mission, mission, mission and mission. By the end of the conversation, we felt like kindred spirits.”

And the mission was? “It was about better food for a better world,” Adam said.

Adam  flew to Boston, where Nicky lives, and agreed to become a co-founder of Unreal. Later, Carlos Canals, the former chief executive of Tribe, the hummus company,  joined Unreal. Other employees came from Google, Mars and P&G.

I’m not making any of this up.

To be sure, Nicky also had help from his father, Michael Bronner, a wealthy entrepreneur and investor who started a digital advertising company Digitas and a financial-rewards company, UPromise, which were sold for $1 billion and $300 million, respectively, according to The Wall Street Journal. Michael Bronner has introduced Nicky, who is now 15 and home-schooled,  to investors, food scientists and his friends including Tom Brady and his wife, supermodel Gisele Bundchen.

So let’s cut to the chase: How does Unreal taste?

To find out, I asked my nieces and nephews — four of them, ages 10 to 14 – to sample Unreal. (They didn’t have to be asked twice.) The candy got very mixed reviews–some were said to taste better than the conventional alternatives, others didn’t quite measure up. They were put off by the odd hues of the M&M-like candies, which is what you get when you take away artificial colors. Having said that, I thought the Unreal offerings were delicious (maybe because they aren’t as overwhelming sweet as traditional candy) and nothing was left over after our collective tasting. Overall grade: B, or maybe B-plus.

Which is impressive because, as Adam explained, the conventional candy industry “has spent the better part of 50 years engineering ingredients. This was about going back to basics, old-fashioned ingredients that your grandmother would recognize.”

Impressive, too, is the way Unreal has found its way into retailers, as a new brand in a competitive category. It’s being rolled out to more than 30,000 stores, including CVS, Rite-Aid, Walgreen’s, Kroger and Ralph’s.

As for the mission, progress there is harder to gauge. On the plus side, Unreal candies have less sugar, less fat, fewer calories and more protein than conventional equivalents, as these side-by-side comparisons show. Other health claims are more questionable. “All ingredients needed to be non-GMO,” the company says, but it doesn’t explain why. Most scientists believe that food with GMO ingredients is perfectly safe to eat. Nor has Unreal take the extra step of buying organic or Fair Trade ingredients. Mars. which, of course, is a much bigger company, has a better-developed sustainability story to tell. [See my blog post, Why Mars is a sustainability leader]

Having said that, if you’re going to buy candy, why not try Unreal?

A question about GMOs for Naked Juice, Silk, Cascadian Farm, Kashi and Honest Tea: Which side are you on, boys?

Naked Juice says it doesn’t use ingredients produced using biotechnology as a matter of principle.

Silk, the company that put soymilk on supermarket shelves, says:

We’re proud to participate in the Non-GMO Project, a no a nonprofit, multi-stakeholder collaboration committed to preserving and building sources of non-GMO products, educating consumers and providing verified non-GMO choices.

Cascadian Farm (“We were organic before organic was a trend”) assures consumers that “you can know when you see the “certified organic” USDA seal on the front of our package that GMO crops have not been used.”

You’ll hear much the same from Kashi (“seven of our foods are now officially Non-GMO Project Verified“) and Honest Tea, which says:

Honest Tea doesn’t use any Genetically Modified Organisms (GMOS) and supports the idea that more transparent labeling will help consumers make clear choices.

The thing is, each of these upstart brands, which tout their commitment to natural or organic product, and to transparency, is owned by a big food conglomerate that opposes GMO labeling.

Think of it this way: Naked Juice (PepsiCo.), Silk (Dean Foods), Cascadian Farm (General Mills) Kashi (Kellogg) and Honest Tea (Coca-Cola) are like kids who don’t agree with their parents.

These, though, are family arguments with big consequences for food shoppers. Big food and agriculture companies funding a campaign which has raised more than $23 million to defeat California’s Proposition 37, a ballot initiative that would mandate clear labeling of genetically engineered (GE) ingredients on food packages. PepsiCo, for example, has donated $1.7 million to defeat Prop. 37, while Coca-Cola has spent more than $1.1 million. Kellogg ($612,000), General Mills ($520,000) and Dean Foods ($253,000) are big donors, too. Biotech companies Monsanto and DuPont have given even more — $4 million apiece — according to data compiled by public TV station KCET. [click to continue...]

Are sugary sodas the new tobacco?

At today’s National Soda Summit on Capitol Hill, there was none of this.

Instead, there was this: grapefruit-flavored and celery-flavored water.

photo.JPG

Ice water, too–and heated rhetoric.

“People are gradually recognizing that Coca Cola and Pepsi Cola are really Toxic Colas and are causing tremendous health harm,” said Michael Jacobson, executive director of the Center for Science in the Public Interest, an advocacy group that organized the event.

“Sugary drinks promote obesity, diabetes, cancer…and other illnesses,” Jacobson  said. “This is a plague.”

About 250 public-health advocates from across the US — an impressive tuurnout — came to Washington to share ideas on how to further curb soda consumption.

Many of them also work on campaigns to reduce smoking–and they argued that soda, like tobacco, causes illness and death. Indeed, the tactics being deployed against soda–taxes, restrictions on marketing, efforts to keep it out of public benefits, campaigns to stop SNAP benefits (today’s food stamps) from being used to buy soda–all come right out of the successful campaigns to curb smoking rates.

Coming, as it does, just after New York Mayor Michael Bloomberg’s proposal to ban large-size servings on sugared drinks in restaurants, delis, theaters and sports arenas, the “soda summit” is a guarantee that more trouble lies ahead for the sellers of sugar-sweetened beverages, or SSBs, as they’re known in the trade. The Cokes and Pepsis of the world can expect fierce and unrelenting attacks. [click to continue...]

Is “clean coal” a worthy goal?

Can wind and solar energy, and other renewables power the world, in our lifetimes? I doubt it. So for at least the next few decades, say, environmentalists have to look to other sources of low-carbon baseload electricity.

Natural gas, while abundant and cheap for now, is not an good option.  Its greenhouse gas emissions are too high to meet climate goals. Nuclear power would be preferable, in my view, although the issues of safety, waste disposal, proliferation and costs are all serious. And then there’s coal.

Yes, coal. In a story published by the excellent website YaleEnvironment360, I write about plans for a Texas coal plant that would capture and store carbon dioxide. Perhaps surprisingly, the so-called Texas Clean Energy Project has the tacit support of some environmental groups – the Environmental Defense Fund, the Natural Resources Defense Council and the Clean Air Task Force. They realize that there’s a lot of coal in the world and it’s likely to get burned one way or another, especially in China. Better that it be burned in a low-carbon way, no? Well, that depends on how you feel acoal minim mining, which is itself an unavoidably dirty business.

The point is, all energy choices involve trade-offs.

Here’s how my story begins:

As mayor of Dallas from 2002 to 2007, Laura Miller helped lead the charge against a utility company called TXU that wanted to build 11 coal-fired power plants in Texas. Miller and her allies, including the Environmental Defense Fund and the Natural Resources Defense Council, stopped the coal plants, and in 2007 TXU was sold to two private-equity firms that promised to steer the company onto a greener path. Their story inspired a documentary film produced and narrated by Robert Redford that showcased Miller, as one magazine writer put it, as a “tough, smart and camera-friendly environmental heroine.”

Today, Miller, 53, who was a newspaper reporter before entering politics, again finds herself in the thick of a big Texas story about coal. This time, she’s trying to get a coal plant built — one that she says would be “the cleanest coal plant in the world.” As director of Texas projects for Summit Power, a Seattle-based energy firm, Miller has spent three years working on behalf of the Texas Clean Energy Project, an unusual $3 billion power facility that would capture carbon dioxide emissions and produce oil as well as coal.

You can read the rest here.

Hypocrisy, obesity and kids

Imagining feeding your child this for breakfast:

This for lunch:

And this for dinner:

You wouldn’t feel great about that, would you?

Surely you wouldn’t consider it a healthy diet.

And most likely you wouldn’t be shocked if your kid got a little chubby.

Foods like these are among the many reasons why childhood obesity has more than tripled in the past 30 years, from 7% in 1980 to nearly 20% in 2008, among kids aged 6-to-11, according to the Centers for Disease Control. One of the truly sad facts about this great nation of ours is that about one-third of all children and adolescents are overweight or obese. It’s also a problem that will cost all of us, as government spending on health care continues to rise.

Of course, we all know that kids eat too much prepared, sugary, fatty foods. They also don’t get out and move around enough. Childhood obesity problem is complex and multifactoral. You can blame television, videogames, fast food, bad parenting and so forth.

Until recently I’ve tended to let corporate America off the hook when it comes to obesity. [See, for example, my 2011 blopost, Mmm...mmm..who's to blame for obesity.] Now I’m starting to think that big food companies are part of the problem, and not part of the solution when it comes to obesity. This is particularly true when it comes to marketing to kids.

They’ve decided that Cocoa Puffs, Peter Pan Peanut Butter and a “carnival corn dog” with fries quality as  “healthier or better-for-you foods,” and therefore they are deemed suitable for advertising to kids.

Yes, these products — along with Campbell’s Spaghetti-O’s with Meatballs, Goldfish Sandwich Bread – White, Pepperidge Farm Flavor Blasted Goldfish – Xplosive Pizza, ConAgra’s Kid Cuisine KC’s Primo Pepperoni Double Stuffed Crust Pizza, Chef Boyardee Overstuffed Beef Ravioli, General Mills’ Lucky Charms, Reese’s Puffs and Trix, Kellogg’s Frosted Flakes and Keebler® Gripz® Chips Deluxe® cookies – are among  “Food and Beverage Products that Meet Participants’ Approved Nutrition Standards that May Be in Child-Directed Advertising.” They appear on a list of “healthier or better-for-you” foods is published by the Children’s Food & Beverage Advertising Initiative, a coalition of 16 food companies operating under the auspices of the Better Business Bureau.

Which makes me wonder: Better for you than what, for goodness sake? Stuffing your face with Doritos and ice cream instead of eating dinner?

I learned about the list earlier today at the Atlantic Food Summit,  an afternoon event in Washington organized by the magazine (one of my favorites) and hosted by the estimable food writer Corby Kummer. Speakers included Martha Stewart (boring), Mario Batali (laugh-out-loud funny and inspirational),  Kathleen Merrigan of USDA and Kirsten Tobey of Revolution Foods, an impressive startup that I’ll return to another day. [click to continue...]