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Posts Tagged ‘Environmental Defense Fund’

Two cheers for Wal-Mart’s CO2 pledge

Thursday, February 25th, 2010

WMT-EDFUntil now, Walmart’s bold sustainability efforts were marred by a glaring omission.

The $405-billion a year retailer has worked hard since 2005 to save energy, reduce waste and sell more sustainable products.

But it resisted pressures to reduce or hold steady its own greenhouse gas emissions. In fact, its carbon emissions have grown, as the middle graphic below shows. (There’s a cleaner version in WMT’s responsibility report, here.) When it comes to global warming, Walmart would appear to be doing more harm now than it was three or five years ago.

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Today, Walmart made its first major commitment to reduce greenhouse gases–although, in typical WMT fashion, rather than set a tough goal that might affect its own growth curve, the company plans to turn up the pressure on its thousands of suppliers to reduce their emissions. (more…)

Is geoengineering inevitable?

Tuesday, February 9th, 2010

Geoengineering, says scientist David Keith, “is like chemotherapy. It’s something nobody should like.”

But if you can’t avoid cancer, chemotherapy may be your best option. And, if it becomes evident that the earth can’t avoid the catastrophic impacts of climate change, it is not merely possible that governments will turn to geoengineering.

Some people believe that it is all but certain.

Geoengineering, as you probably know, is the deliberate large-scale manipulation of the planet to counter global warming. It can take a number of forms, as the graphic below shows, some perhaps still to be discovered. Long a taboo subject, geoengineering is being talked about openly these days by scientists, environmentalists and policy thinkers.

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The National Academy of Sciences held a workshop on geoengineering in June. Influential books including SuperFreakonomics and Whole Earth Discipline, by longtime environmentalist Stewart Brand, argue that it’s time to take geoengineering seriously. A congressional subcommittee held its second hearing on geoengineering just last week.

Among those testifying was Keith, who directs the energy and environmental systems group at the University of Calgary and, interestingly, also leads a team of engineers who are developing a technology to capture CO2 from ambient air. I heard him speak a week ago during a six-hour workshop on geoengineering organized by the Environmental Defense Fund, a nonprofit known for its pragmatism. EDF invited me to attend, on the condition that I seek permission from the scientists before quoting them. (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…)

The Great Wall embraces Wall Street

Wednesday, September 23rd, 2009

Here comes a new carbon finance market, this one with Chinese characteristics.

In the latest sign that China takes the threat of global warming seriously, Chinese business executives with close ties to the government have launched a voluntary market in Beijing to buy and sell carbon credits.

Just don’t call it cap-and-trade, which is the regulatory approach embodied in the climate legislation pending in the U.S. Congress. The “cap” part of cap-and-trade remains anathema in China. As a developing country where billions of people earn less than $3,000 a year, China simply won’t accept mandatory limits on its emissions of greenhouse gases.

David Yarnold, Environmental Defense Fund

David Yarnold, Environmental Defense Fund

But the Chinese have enlisted western partners to build a market that will, as they put it, “limit and incentivize.” The theory is that a voluntary market in carbon credits will limit emissions by providing financial incentives to Chinese companies to develop renewable energy, promote energy efficiency and, above all, find environmentally-friendly ways to burn coal. Some of that money would come from outside China and would would come from within.

This could lay the groundwork for a mandatory market in the not-too-distant future.

That, at least, was my takeaway from a Low Carbon Conference held today in New York that brought together leaders of the world’s big stock exchanges, energy industry executives, environmentalists and experts in carbon finance. [Disclosure: I hosted the event for BlueNext, a French company that recently announced a partnership with the China Beijing Environmental Exchange to develop carbon trading in China.] (more…)

Eaton CEO: Hybrid trucks deliver, big-time

Monday, August 3rd, 2009

Crawling, stop-and-go traffic is an annoyance to most drivers. To Eaton Corp., a $15-billion a year FORTUNE 500 company based in Cleveland, it’s a business opportunity.

That’s because, as anyone who has driven a Toyota Prius knows, the stopping and starting, braking and accelerating required in traffic is ideal for hybrid-electric engines, which capture energy from brakes and turn it into electric power.

President Obama checks out a hybrid truck

President Obama checks out a hybrid truck

So Eaton, which has been developing electrical and hybrid power systems for trucks and buses for more than 20 years, is now building a nice business around selling hybrid power systems for commercial vehicles. On a California trip last spring, President Obama got a sneak peak at a plug-in hybrid electric utility truck with a power system developed by  Eaton.

According to Alexander M. “Sandy” Cutler, Eaton’s chairman and CEO, the hybrid truck industry—while much smaller, and not nearly as visible as the hybrid car business—is finally taking off. (more…)

The World Bank’s coal problem

Friday, July 24th, 2009

So much is going on in the world of business and sustainability that no one can keep up with it all. I’ve decided, as a result, to occasionally feature guest posts  from smart people who follow topics I don’t. Today’s post comes from Mindy Lubber of Ceres, a coalition of institutional investors and environmental groups that works to integrate sustainability into capital markets. Mindy has spoken at FORTUNE’s Brainstorm Green conference, and she’s one of those people who moves easily between the world of advocacy and the realities of corporate America. Her topic today is the folly of financing new coal plants in the developing world.

ceres_logo_color_bigIn Washington, it’s a popular climate conundrum everyone talks about: Even if the U.S. lowers its greenhouse gas emissions, China and India are on track to dwarf the entire Western World’s as they build enormous coal-fired power plants. Politicians regularly say we must get China and India to use less coal, the dirtiest of fossil fuels, to power their emerging economies.

But who do you think is financing all these new coal plants in the developing world?

Try the World Bank, the Asian Development Bank and other international public financial institutions supported by the world’s wealthiest nations.
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Wal-Mart’s BIG problem: climate change

Tuesday, June 23rd, 2009

Much as I’m an admirer of Wal-Mart’s ambitious sustainability goals, and its efforts to achieve them, there’s a glaring problem with the company’s “progress” to date that can be seen in the chart below.

When it comes to climate change–the defining environmental issue of of our era—Wal-Mart is moving in the wrong direction.

As Gwen Ruta of the Environmental Defense Fund, a Wal-Mart partner, writes in her frank assessment of the company’s 2009 sustainability report, the problem is that all the good things that Wal-Mart is doing–increasing its use of renewable energy, driving efficiency in individual stores, improving its fleet operations and pushing up its recycling rate–are offset by the fact that the company is adding more stores and selling more stuff.

So although WMT’s greenhouse gas emissions per unit of sales is decreasing (the bars on the right), its overall carbon footprint is growing (the bars in the middle).
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Why traceability matters

Sunday, May 10th, 2009

What are you wearing? Where did it came from? How much energy went into it? How much pollution was generated by its production and shipping?

You almost surely don’t know, and you may not care, but brands and retailers are digging deep into their supply chains to better understand the environmental and social impact of the things they make and sell. This is an emerging trend in business that goes by the name of  traceability or supply chain transparency. It requires companies to understand the full depths of their supply chains much better than most do. Companies getting serious about traceability include Patagonia, Wal-Mart, Tesco and Gap. More are sure to follow.

“If you don’t know where your stuff is coming from. how can you have a sustainability program?” asks Tim Wilson, the CEO of a British company called Historic Futures that specializes in traceability.

Tim talked about traceability on a panel that I moderated at FORTUNE’s Brainstorm Green conference about business and the environment. He was joined by Mike Kowalski, the CEO of Tiffany & Co., Kathy Abusow of the Sustainable Forestry Initiative, Jill Dumain of Patagonia, Arlin Wasserman of Sodexo and Jeremy Moon, the CEO of Icebreaker. Icebreaker is a fascinating company that makes clothing from New Zealand merino wool and invites customers to trace their garments back to the farmers who raised the sheep that made it—using a (Get it?)  Baacode. Very cool, and here’s the Icebreaker story.

From the composition of that panel, you can see that traceability crosses diverse industries—jewelry, wood and paper, food and clothing. In every case, the goal is to de-commoditize commodities—that is, to distinguish between gold mined under safe conditions in the U.S. and gold mined by children in Africa, or between wood that is harvested sustainably and wood that has been illegally logged. Fortune.com just published a brief story that I did about traceability. Here’s how it begins:

Laguna Niguel, Calif. –  Where was the cotton in your shirt grown? Who mined the gold in your wedding ring? What forest produced the paper in the magazine you are reading?

You almost surely don’t know, but a growing number of brands and retailers want to dig deep into their supply chains to better understand the roots (sometimes literally) of the products they sell. Their goal: to avoid risks and enhance their reputation as “green” business leaders, says Tim Wilson, the 41-year-old CEO of Historic Futures, a little British company that is riding a big idea in sustainability, known as traceability.

Using Internet-based systems and RFID tags, Historic Futures tracks such commodities as cotton and gold through the long and previously opaque supply chains of Wal-Mart, Gap, and Patagonia, among others.

Patagonia has done a terrific job of explaining traceability to the public on a website called The Footprint Chronicles. (That’s a graphic from the site below.) The Environmental Defense Fund spotlighted the work done by Patagonia in its 2009 Innovations Review, which I helped EDF to write. EDF also highlighted Wal-Mart’s Love, Earth line of jewelry—which promises customers that the gold and silver jewelry they buy has been mine and produced responsibly.

Here is a link to the EDF report about traceability, headlined Shining a Spotlight on the Supply Chain. Here’s a link to EDF’s account explaining how Wal-Mart created its Love, Earth line of jewelry, with the help of Historic Futures. Another example of traceability: Wal-Mart and Tesco have vowed not to buy clothing made with cotton farmed in Uzbekhistan, where child labor is rampant, requiring them to ask all their suppliers to know where their cotton is sourced.

Traceability isn’t a new idea, of course. We couldn’t have organic food or Fair Trade coffee or salmon certified by the Marine Stewardship Council without transparent supply chains that track goods from the store shelf back to the farm or fishery. But judging from the crowd at our Brainstorm Green panel on traceability, you’ll be hearing more about it in the years ahead.
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Our “profound waste” of water

Sunday, May 3rd, 2009

Water’s on my mind today. I’m just back from a rainout of the Washington Nationals-St Louis Cardinals baseball game. Second rainout of the season for the Nats—and on both dates, I had tickets!

As best as I understand the issue (which is not very well), there’s little or no danger that the world as a whole will run short of water, which makes water different from other natural resources like oil, gas or precious metals. Using water wisely is important, nevertheless, because more than 800 million people around the world lack access to clean drinking water and 2.5 billion don’t have access to a safe toilet, according to the Global Water Challenge. Water is also a big environmental issue because it takes enormous amounts of energy to move water around. According to US EPA,

An estimated 3% of national energy consumption, equivalent to approximately 56 billion kilowatt hours (kWh), is used for drinking water and wastewater services. Assuming the average mix of energy sources in the country, this equates to adding approximately 45 million tons of greenhouse gas to the atmosphere.

Far more energy—I couldn’t find the numbers—is used to move water around for agriculture and landscaping. So if we can learn to use water more efficiently, we can save a lot of energy.

Given that, here’s a surprising and mildly disturbing fact: There are about 60 million automatic irrigation systems across the U.S., operated by governments, real estate developers, suburban office parks and retailers, and most of them operate on timers. That is, they water the grass or plants every few days for a set number of minutes, regardless of whether it has been raining or not. So here in the Washington, D.C., area, even on this drizzly afternoon, we can assume that some automated sprinklers are sprinkling.

“This current technology makes about as much sense as having a timer instead of a thermostat in your house,” says Chris Spain, the founder of a company called Hydropoint, which offers smart irrigation systems.

I interviewed Chris while helping the Environmental Defense Fund research and writing its 2009 Innovations Review, a report on innovations that are good for business and for the environment. We met last month at FORTUNE’s Brainstorm Green, where Chris spoke about water.

Founded in 2002 and headquartered in Petaluma, CA, Hydropoint helps its customers save water. They include eBay, Lockheed Martin, Cisco, McDonald’s, Wal-Mart, Amazon and Advanced Micro Devices, as well as big real estate developers and municipalities.

Hydropoint downloads weather data from about 40,000 weather stations across the U.S., asks customers to fill out a detailed questionnaire about their soil, plantings, sun and shade conditions, then calculates how much water is needed and when. Once Hydropoint has gathered data, it installs controllers on the customer irrigation systems and transmits instructions wirelessly to the systems.

Spain, an enterpreneur who worked in software, new media and television production before getting into the water-saving business, has become a self-educated expert on H2O. He told me that landscaping consumes about 58% of urban water, and that landscapes are typically overwatered by 30 to 300%.

The Hydropoint website also says:

Four million watt hours of power are expended and 5,360 pounds of CO2 are emitted into the atmosphere with every one million gallons of water consumed.

The city of Newport Beach, Ca., an early Hydropoint customer, says it reduced landscape runoff (and associated pollution) to its popular beaches by 70%. Independent research studies which governments need before buying the Hydropoint system confirm dramatic savings in water usage.

By the way, farmers don’t do much better when it comes to water use. Another company highlighted in EDF’s review is PureSense, which provides smart irrigation systems so that farmers can reduce their water usage.

Two things worth noting about these companies. First, they help repair market failures. farmers and landscape owners are wasting lots of water, and paying for it, because it’s easy to see when the ground needs water (grass turns brown) and harder to know the ground is getting too much water. Second, because Hydropoint and PureSense rely on wireless technology and weather data, they show how information technology will play a vital role in solving environmental problems.

Because most customers end up saving water, Spain says, the payback period for the initial investment in Hydropoint equipment is about 18 to 24 months.

The business is growing fast. “We’ve just scratched the surface in terms of market opportunity,” Spain says. “We address an area of profound waste.”

Now if we could only do something about those rainouts.

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Why farmers need (something like) Facebook

Monday, April 27th, 2009

Some solutions to environmental problems are dizzyingly complex. Others are surprisingly simple.

Last week at FORTUNE’s Brainstorm Green conference, the Environmental Defense Fund released its 2009 Innovations Review—a collection of new ideas, products and services that are good for business and good for the environment. EDF asked me to help write the review, and what struck me is how many of the innovations were relatively easy to put into place.

You can read the report here, and I’ll be blogging about several innovations in the days ahead. I want to begin by telling you about an agricultural innovation called “adaptive nutrient management” which I prefer to describe as social networking for farmers.

You know about social networks like Facebook, Twitter and MySpace. The Iowa Soybean Association has learned that when you get farmers networking—in their case, face to face, usually after the growing season is over—they learn to use fertilizer a lot more efficiently.

This matters because excess nitrogen fertilizer runs off fields into water supplies. And while the impact of nitrogen runoff on distant bodies of water is hard to measure precisely, it’s a serious environmental problem.

According to Tom Morris, associate professor of soil fertility at the University of Connecticut:

Agriculture is estimated to contribute 40% of the nitrogen pollution to the Chesapeake Bay, which is estimated to be 60,000 tons of nitrogen (annually) from agriculture. The amount of nitrogen contributed by agriculture to the Gulf of Mexico is estimated to be about 50% of the total, or about 825,000 tons from agriculture.

So-called dead zones where aquatic life cannot flourish are caused by this excess nitrogen, scientists say.

Of course, no farmer deliberately wastes fertilizer, especially since the costs of have been climbing—the price is now about 60 cents a pound–and corn and soybean farmers apply as much as 140 pounds per acre. The trouble is, farmers don’t know exactly how much fertilizer to use.

What’s more, while using a little extra fertilizer adds to their expenses, not using enough can depress yields and dramatically depress farm incomes.

Tracy Blackmer, director of research for the Iowa Soybean Association, told me: “The penalty, traditionally, has been larger if you were short than if you over-fertilized.”

In theory, the market should solve a problem like this, because no one wants to waste money on fertilizer. But markets don’t operate in theory.

What solves the problem is networking. Groups of farmers, typically neighbors farming similar soils in similar weather conditions, share information from their own on-farm studies. Together, they develop strategies for how and when to apply the least amount of nitrogen for the best economic and environmental results. Then they compare results, and further refine the process.

“The most important component of adaptive nutrient management is the winter meetings the farmers and their advisors attend to discuss their individual data and the data from their group,” says Morris, who is working on a similar effort with Pennsylvania farmers whose land is part of the watershed that flows into the Chesapeake Bay.

Instead of top-down lectures from experts, collaboration is key. “We have often, in agriculture, provided information to farmers,” Morris says. But when farmers themselves organize the conversation, “you get rapid learning and rapid adoption of ideas.”

“It is an iterative process,” agrees Blackmer. “It guides where the next round of testing goes.”

On average, Iowa corn and soy growers who joined in the program have reduced nitrogen use by about 30%, or about 30 pounds of nitrogen per acre, without reducing their profit per acre.

Information is power. Simple.
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