Verizon, NRG, Oliver Wyman share tips on TCFD scenario planning and reporting
Aaron Mok
Tue, 07/21/2020 – 00:30

More than 1,000 global leaders have implemented recommendations from the Task Force on Climate-related Financial Disclosure as part of their climate action plans. But many organizations are still grappling with how, exactly, to do this.

TCFD reporting offers a standardized framework for companies to disclose information on climate-related financial risk to their investors and stakeholders who seek greater corporate transparency. The core elements of the TCFD framework include: governance; strategy; risk management; metrics; and targets. 

During last week’s GreenBiz webcast “How Businesses Can Overcome Barriers to Achieving Climate Goals,” three corporate sustainability leaders offered insights for how businesses can best adopt TCFD recommendations into their carbon reduction strategies. 

In particular, TCFD reporting expands the scope of climate-related financial transparency, considering issues related to both corporate social responsibility and risk management, noted Edwin Anderson, partner with management consulting firm Oliver Wyman.

Businesses are exposed to two types of climate risks: physical and transition. Physical risk refers to climate-related events such as natural disasters, while transition risk encompasses the financial costs associated with institutional changes required to decarbonize, Anderson said. In the TCFD framework, these risks are assessed through a climate-scenario analysis, a methodology companies use to set science-based targets in line with their climate goals and to provide insight into climate change’s potential opportunities and risks.

Most senior executives are sympathetic to the problems that the world faces, and you have to face the roles and metrics they rely on.

Greg Kandankulam, senior manager of sustainability at NRG Energy highlighted the importance of engaging a third-party expert to aid scenario-planning. “Don’t be afraid to get external on your scenario process,” he said during the webcast. “Sometimes, institutional thinking doesn’t provide everything you need.” 

Using the TCFD framework, NRG developed its own scenario, then received recommendations from the International Energy Agency and Intergovernmental Panel on Climate Change, Kandankulam said.

He also emphasized collaboration with individuals on the governance team to increase the likelihood of buy-in. 

“Direction from the board and CEO helps,” Kandankulam said. “As the TCFD conversation evolved between 2017-2018, we approached leadership with a body of work and engaged with institutional investors to discuss how important it is, what decision-making is useful, and what stakeholders will be looking for in credibility and disclosure. A collaborative process engenders a greater level of buy-in on a management and executive level.”

Emily Bosland, director of ESG reporting and engagement at Verizon, stressed the value gained from speaking to investors during the reporting process. 

“We found having very honest, transparent conversations with our investors and governance to be exceptionally helpful,” she said. “Feedback from investors and governance on the report has been entirely positive.”

After conducting a scenario analysis with IEA’s assistance, Verizon drew on the TCFD recommendations to include this disclosure in its recent sustainability reporting: “Even with growth in electricity usage, carbon prices and electricity prices, Verizon is resilient in a carbon policy environment that is aligned to 1.5-2 degrees Celsius.” (The company aims to achieve carbon neutrality by 2035.)

Verizon plans to reach its carbon goal by reducing its carbon footprint across all its operations, using tactics such as adopting newer, energy-efficient technologies and optimizing the temperature control of its data centers, Bosland said.

At the end of the webcast, speakers shared their closing thoughts on best practices for businesses to adopt the TCFD disclosure recommendations. Bosland reiterated Kandankulam’s advice that receiving outside help is useful if feasible. Likewise, Kandankulam expanded on his previous point about prioritizing internal collaboration, advising listeners, “Start canvassing your companies and start finding those champions — risk, strategy, investor relations, get them to understand why this is important and necessary.”

Finally, Anderson underscored the effectiveness of explaining the value of TCFD disclosure to executives through monetary terms.

“Pull it back to dollars and cents. Not because it matters most, but because that’s the lever they require to pull,” he said. “Most senior executives are sympathetic to the problems that the world faces, and you have to face the roles and metrics they rely on.”

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Most senior executives are sympathetic to the problems that the world faces, and you have to face the roles and metrics they rely on.

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8 cities share how racial justice is embedded into their climate plans
Jesse Klein
Mon, 07/20/2020 – 02:00

As COVID-19 rampages through vulnerable minority populations with tragic consequences, and protests for racial justice surge among a similar demographic, city climate planners see a renewed focus on climate justice.

The pandemic, in some ways, has been a trial run for the anticipated coming impacts of climate change — a not-so-distant future in which low-income and minority populations are the most at risk. As mayors make quick strategic changes to address the short-term COVID crisis, they are also in the midst of planning for similar long-term climate issues.

Last week, the C40 Cities Climate Leadership Group, an organization of mayors from around the global, launched a Detailed Agenda for Green and Just Recovery from COVID-19 to ensure that this crisis propels sustainable innovations instead of a return to old ways. 

“Equity is really at the heart of our recovery in the city,” said Mayor LaToya Cantrell of her city, New Orleans, during the C40 press conference. “We’ve had 542 deaths [due to COVID-19] in our city and out of the 542, 404 were Black or Brown. Our response to this pandemic is an opportunity to create a much more healthier, more sustainable and equitable city, no doubt about it.”

Another organization, Climate Mayors, a network of 438 United States mayors, hopes to provide peer-to-peer sharing between American cities to help adapt to and in some ways reverse our changing climate. It has helped fill the U.S- shaped hole in leadership left by the Trump administration. 

“We want to make sure we’re reflecting back to the international community that there is a lot of effort going on to reduce emissions and energy technology,” said James Ritchotte, director of Climate Mayors.

GreenBiz recently spoke with eight chief sustainability officers and mayors that are part of the Climate Mayors network to understand what actions they are taking to ensure climate justice is embedded into their climate resiliency plans. Below are excerpts from the interviews, edited for length and clarity.

City of Boston

Boston

Boston is aiming to be carbon neutral by 2050 by focusing on their 86,000 buildings. The city is also investing in seawalls to prevent erosion due to sea level rise. 

Christopher Cook, chief of environment, energy and open space

On COVID-19 pandemic learnings that can apply to climate change initiatives: 

What COVID has put in the forefront is how interwoven racial equity is with our climate crisis. Those social equity gaps in our society show how intentional we have to be in the climate work to make sure that we’re not exacerbating the situation. We have to be very intentional about job creation, or else our most socially vulnerable won’t be able to fully participate. We started very intentional conversations with our Office of Workforce Development to make sure that we are connecting directly with communities of color, and are starting a job training program for city retrofitting.

On how COVID-19 gives us a chance to help vulnerable populations: 

We can take [the pandemic as an] opportunity to be intentional about creating a cleaner respiratory environment for our citizens, especially those living in affordable housing. People need to have air filters and high-quality HVAC systems. Can we also use this as an opportunity to electrify those systems and retrofit those systems? So as we make buildings more efficient and cleaner from a carbon perspective, can we also make them healthier buildings?

Carmel, Indiana

Carmel, Indiana

Carmel is focusing on making its city greener through transportation initiatives, including more bike access and roundabouts. 

Mayor James Brainard

On how making the city more bike accessible is an environmental justice issue:

Everybody talks about affordable housing, it’s really more about affordable living. A lot of city design requires huge amounts of a poor person’s expenditures be spent on gas, automobiles and insurance. We unveiled 225 miles of bike trails so you can get anywhere within the city of Carmel by bicycle, which is also important for environmental justice. To somebody who can’t afford a car, that makes a huge difference. So many times we’ve designed our cities so that not having a car isn’t even an option. We are also working to make our city beautiful, too. Wealthy people can travel to some of the most beautiful places on earth. But for people who can’t, they have a right to have their city be beautiful as well. So we focused on that through public art and beautiful parks and trails.

On environmentalism as a Republican issue: 

[Environmentalism] is a Republican issue. It was Teddy Roosevelt that started the national parks. It was Eisenhower who set aside the arctic reserve. It was Nixon and Ford who signed the EPA into existence. The Migratory Bird act was Nixon. The Endangered Species Act was for Nixon. The Republicans were very much environmentalists, starting with Teddy Roosevelt. Ford was always environmentalist, and got a lot done. And it disappoints me that this is something the Republican party has not focused on recently.

On how two ideologies can come to the same decision that benefits climate:

I had a guy who was very conservative giving me a hard time about spending $750,000 on switching to LED streetlights. So I said to him, “Well, what about the cost savings?” Because of less electricity, the savings will be about a 22 percent a year annualized rate of return on that money we invest. I showed him the bills. And he said “Oh, I guess this is a pretty good idea.” So he didn’t care about the environment. But he did care a lot about the return on investment. By the time we ended the conversation he got to the same place. But not for the environmental reason, but for a fiscal reason. People can get in the same place for different reasons.

City of Houston

Houston

Houston has committed to 100 percent renewable energy for all municipal buildings on its way to reaching carbon neutrality by 2050.  

Marissa Aho, chief of resilience officer

On Houston’s strategy for imbedding climate justice into climate resilience:

In January we released a report with recommendations particularly related to flood resilience. We focused on three historically underinvested communities in Houston: Independence Heights; Greenspoint; and Kashmere Gardens, which is part of Mayor [Sylvester] Turner’s Complete Communities Plan initiative, which is looking at 10 of our most historically under invested African American and Hispanic, Latinx neighborhoods, and creating action plans to improve quality of life. A majority of the key actions are really understanding that our most vulnerable people, places and systems are disproportionately affected when there is any disruption. So, we have a number of targets but one is to address the huge disparities in life expectancy depending on what neighborhood you grew up in or live in. And that pre-COVID was a 24-year disparity. 

City of Los Angeles

Los Angeles

Los Angeles is on track for a 45 percent decrease in emissions by 2025 with the goal of carbon neutrality by 2050. The city’s climate initiatives was written in conjunction with creating new green jobs as part of Los Angeles’ Green New Deal.  

Lauren Faber O’Connor, chief sustainability officer

On how Los Angeles plans to address heat issues to benefit lower-income communities: 

A big concern of climate change are impacts of heat and extreme heat in Los Angeles. Some of our citywide goals just facilitate a cooler, more resilient city, and I mean cooler as in temperature. This needs to happen citywide but we’re targeting the rollout in communities that are in greatest need and have the lowest tree canopy and the most vulnerability, like an elderly population, low-income population who may not be able to run an AC if they even have an AC. We want to make sure that we’re cooling those neighborhoods, and doing it in a way that meets their needs by focusing on the walk to a bus stop and at the area around the bus stop. The laying of cool pavement to reduce the urban heat island effect by literally paving a lighter shade over our streets. And then combining those with local tree planting to create more canopy cover and doing those things in neighborhoods that need it the most.

On focusing money towards overlooked communities:

The Transformative Climate Communities Program was created by the state through the climate investments, cap and trade dollars. We worked with local community leaders to prepare projects that would apply for state funding. The first year the Watts neighborhood was awarded a $30 million grant… They’ve suffered a lot of injustices and need more significant and more direct investment. We prioritize that with incredible innovation by electrifying the local buses, electrifying the service in Watts. But also providing an EV Car Share service, bike share and bike lanes, multiple pedestrian improvements to allow for more walking, rooftop solar for home. What’s incredible is that when we hear from our community leaders, they would say to us that Watts is always last. In this project, LA has put Watts in the front of the line.

City of Oakland, California

Oakland, California

Oakland’s climate action plan to get to carbon neutrality includes funding for a downtown shuttle, constructing electric vehicle charging stations and launching a green retrofitting program for residential houses, among 29 other initiatives.  

Daniel Hamilton, sustainability program manager

On climate programs that address inequities: 

When we talked about the need to create denser urban environments to accommodate more people, the community said, “Well, it’s not just about the densities and the land use. Its about housing discrimination.” The climate solutions to these couldn’t be ignorant of or silent on those types of topics. The action items are designed specifically to address the broader social issues as well as climate issues. It’s not just a greenhouse gas reduction policy. It’s a policy that targets the systems that create the greenhouse gases in ways that address historic inequities and provide some solutions. An example of this would be the action items focused on anti-displacement, so keeping people rooted in Oakland. When we talked about this densification of land uses, housing came up as a big issue. But the final action item doesn’t say “provide greater densities.” The final action item is actually support for the community land trust model to build wealth within the communities to allow people who are in Oakland to stay in the community and not have to move out to second- and third-tier suburbs and drive a lot further to get to the same jobs they exist in today.

City of Orlando, Florida

Orlando, Florida

Orlando hopes to power the city entirely off renewable energy by 2050. But the city’s 2018 Community Action Plan is on an even quicker timeline, establishing goals for 2040 that include getting the government’s 232 buildings up to LEED code, planting 20,000 trees and increasing the electrical vehicle infrastructure. 

Chris Castro, director of the office of sustainability and resilience

On creating programs that help low-income communities meet overall climate goals: 

Low- and moderate-income communities often are spending two and three times as much per square foot on utilities than more affluent communities. The landlords of these homes or apartments are reluctant to make ongoing maintenance improvements to them. So they have very outdated air conditioning systems, outdated insulation and lighting. As a result, they have less resources, but they’re spending more on their utility bills. In one of our notorious communities of color, Paramore, people are burdened by upwards of 18 percent of their household income being spent on utilities. The average across in Orlando is 4.5 percent. That has helped us to develop new programs. We’ve partnered with a nonprofit called SELF, Solar Energy Loan Fund. We helped them establish their regional headquarters in Orlando. They provide funding, specifically to low and moderate income communities for home energy improvements, reducing energy and water use, lighting and HVAC, onsite solar, and even sewer and water improvements. It’s a loan product that is really looking at an unsecured very low interest loan for homeowners. So a person with a low credit score of 500 can get a loan for 5 percent to 6 percent interest from SELF versus getting laughed out of the bank when they’re asking for a loan to get a new AC system. This is an opportunity for people on the low and moderate income spectrum to have the financial tools to make these home improvements that improve quality of life, save energy, save water and reduce carbon right at the end of the day. I think we’ve invested about $150,000 over the last few years to help them out.

Richmond, Virginia

Richmond, Virginia

To reach the city’s goal of an 80 percent reduction in greenhouse gas emission by 2050, the sustainability office is focusing on increasing alternative energy options with solar panel installations. 

Alicia Zatcoff, sustainability manager

On climate mapping helped with the COVID response:

We have a pretty sophisticated mapping, the equity index. We have gone through and assessed and about 20 social vulnerability factors including geographic-based and demographic factors, resulting over 140 layers and pieces of data on the map. We rank those pieces of land using our climate equity index to identify where new parks or open spaces could be. We mapped our heat index looking for our heat islands. Using the equity index we can prioritize those areas, which is a different approach than we would have taken a year or two ago. So we’ve done that for climate. And then when COVID hit, we went back to see what the risk factors are for getting COVID and then the factors for getting severe disease or dying. And what we found is they are so closely aligned with the climate risk and vulnerability factors. The community that was on the frontline of climate change, we’re also on the front line of COVID.

Saint Paul, Minnesota

Saint Paul, Minnesota

Saint Paul’s top priorities are to become a carbon-neutral community and to reduce greenhouse gas emissions 50 percent by 2050. The government buildings are hoping to decarbonize by 2030. 

Russell Stark, chief resilience officer 

On how car sharing will benefit low-income communities 

We are making sure that at the same time that we’re reducing emissions, we’re actually creating a mobility access benefit for our lowest-income communities. For example, car sharing has operated on a round trip model. Most of the parking locations are where the market is, usually around colleges or high density neighborhoods or in some cases better-off neighborhoods. When we thought about expanding our car share was to expand the service into some of our lowest income communities and communities of color. We are partnering with community-based organizations to expand that service into 10 locations that really haven’t had the service before.

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Sustainability and the never-ending battle against burnout
Chris Gaither
Mon, 07/20/2020 – 01:04

I felt sure I’d put burnout in the past. I’d quit my high-stress job at Apple, started my own executive-coaching business and found balance in my life.

Then, with shame burning my face, I had to cancel a GreenBiz workshop I was leading about how to take care of yourself. Why? Because I hadn’t taken care of myself.

That’s the thing about burnout: It creeps back in as soon as you stop paying attention.

I began discussing burnout with GreenBiz leaders in early 2019. Yes, my own, which came at the end of four years helping Apple become a model of environmental sustainability. But also the debilitating exhaustion of so many sustainability professionals who wear themselves down in service of this crucial work.

“Sustainability is a challenging field,” an attendee of the GreenBiz 19 forum wrote in a post-event survey. “Many think we’re crazy, the news about the environment is typically negative, and all major ecosystems are still in decline. It can be depressing and sticking with the fight can be hard. How can we keep ourselves energized?”

I eagerly agreed to lead a session called ‘Human Sustainability: Maintain Your Energy to Pursue What Matters.’ I’d failed to do that plenty of times in my life.

I eagerly agreed to lead a session about this at GreenBiz 20 in Phoenix. We called it, “Human Sustainability: Maintain Your Energy to Pursue What Matters.”

I’d failed to do that plenty of times in my life.

As I recounted in the first article in this series, my 20-year career had left me with a desperate case of burnout. My tank was empty. Depression, fatigue and physical pain overtook me.

So, I took a mid-career break to recuperate. I slept. Underwent chronic-pain counseling. Got in shape. Drove my son’s soccer carpools. Volunteered at my local food bank and in underserved schools. Read more than 120 books. Took creative writing classes. Walked in the woods. Reflected.

Slowly, I began to diagnose what had gone wrong. My life was badly misaligned.

Don’t get me wrong. Of course I was proud of being a director on Apple’s Environment, Policy and Social Initiatives team (and very grateful for the Apple shares that accompanied the title). I loved learning from my incredible boss, Lisa Jackson, leading huge projects with talented colleagues and championing our environmental stewardship. I’d gotten what I thought I wanted.

But I realized that, in my early 40s, my values were coming into much sharper focus. Family, community, health, creativity — those are the things that light me up, give me meaning.

When I examined where I actually focused my time, attention and physical energy, though, there was a huge disconnect.

I was working nonstop, missing important family moments. I commuted three to four hours a day between my Oakland home and One Infinite Loop in Cupertino, Apple’s headquarters. I made little time for exercise or personal creative projects. And as I moved up the corporate ladder, I delegated much of the hands-on work that had brought me joy.

In the huge gap between my values and my activities, pain and misery grew like a weed. My body and spirit were trying so hard to tell me that I was off the rails.

I vowed to find alignment. I trained as a coach and started my own leadership practice. I’ve landed clients at big companies including Google, Apple, Facebook, Levi Strauss, Airbnb and Mars, as well as startups and nonprofits. I help them lead with purpose while not sacrificing their own human sustainability.

The work lights me up with meaning, joy and energy, and constantly reminds me to rejuvenate myself.

I was excited to help GreenBiz 20 attendees explore how they, too, could maintain their own sustainability. I’d booked my flight. I’d thought hard about the impact I wanted to have: to help these sustainability professionals avoid, or recognize and repair, the kind of burnout I’d faced. I’d spent weeks designing the workshop.

Then I got overwhelmed. And sick. I overlooked the signs that I was out of alignment again.

It began with a mild cold, just before Christmas. It stuck around and flared up hard after I made a 24-hour work trip, between San Francisco and Orlando, to please a new corporate partner. I felt awful. Hard coughing. Nasal congestion. Achy sinuses, ears and muscles.

This was before COVID-19 swept the globe, so I tried to ignore my symptoms. I kept moving ahead: negotiating the legal aspects of my divorce, co-parenting our adolescent son, running leadership development workshops, coaching almost 20 clients.

My symptoms, especially my cough, got worse. In late January, just a few days before GreenBiz 20, I found myself in radiology. The chest X-ray came back clean for pneumonia, but my doctor diagnosed me with a respiratory infection.

What will help me make the long-term difference I want to bring to the world? It became crystal clear: I would honor my health.

I told him I needed to travel to Phoenix to run a workshop. Environmentalists struggling with burnout were counting on me.

He gave me antibiotics. They didn’t help.

The Phoenix trip was drawing closer and closer.

I couldn’t imagine suffering through a flight and energizing a roomful of people while feeling so crummy.

I also couldn’t imagine canceling. I’d have to admit — to the organizers, to myself — that I’d failed to live up to the rejuvenation message I planned to deliver. I’d taken on too much, plowed past the warning signs my body was trying to send me and put the needs of other people above my own wellbeing.

I panicked. I fretted. I asked friends for advice, hoping someone would decide for me.

Then, I slowed down and coached myself. I asked, What’s most important right now? How do I want to be? What will help me make the long-term difference I want to bring to the world?

And it became crystal clear: I would honor my health. To authentically deliver this message of human sustainability, I needed to live it. I had to take care of myself so I could take care of others.

I canceled my session, stayed home and replenished the energy I need to do the work I love. GreenBiz 20 went just fine without me.

The relapse was a painful and important reminder that finding balance isn’t something you do once. You do it each day, by aligning your values with your activities.

And when you get it wrong, like I did, your body and spirit will tell you, unequivocally.

Pull Quote
I eagerly agreed to lead a session called ‘Human Sustainability: Maintain Your Energy to Pursue What Matters.’ I’d failed to do that plenty of times in my life.
What will help me make the long-term difference I want to bring to the world? It became crystal clear: I would honor my health.

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Danone’s Eric Soubeiran: ‘The food system is broken’
Cecilia Keating
Mon, 07/20/2020 – 00:30

Earlier this year, Danone became the first listed company to become an “enterprise à mission,” a new type of corporation created by a 2019 French law. The pioneering governance structure will see the food giant officially entrench environmental, social and societal objectives into its bylaws, alongside more typical profit goals.

Danone, founded more than a century ago and famously declared an asset of national importance by the French government in 2005, has long prided itself on being a purpose-led business. Its new status is the latest in a string of moves the company has made to boost its environmental, social and governance (ESG) credentials as it works towards meeting a highly publicized aim of becoming one of the first B Corps certified multinational.

Eric Soubeiran, the company’s vice president of nature and water cycle, explained that weaning the company off intensive farming is at the core of its new sustainability mission. Danone, which owns a range of household brands including Volvic, Evian, Actimel, Alpro and Activia, is first and foremost a dairy company, after all.

“If you really want to do sustainability well in a company, you need to know your business well,” Soubeiran said. For a food company, that means knowing how and where you source your ingredients, what your customers want, and understanding the provenance of your direct and indirect carbon emissions. “Concretely, when you look at Danone, 60 percent of our carbon footprint is from agriculture,” Soubeiran acknowledged. “Eighty-nine percent of our water footprint is from agriculture. [Sustainability] starts from knowing your Scope 3 [value chain emissions]. It is looking at the elephant in the room, and going after it piece by piece. That is why it’s very important for us to have an opinion about the agriculture model we want.”

[Sustainability] starts from knowing your Scope 3 [value chain emissions]. It is looking at the elephant in the room, and going after it piece by piece.

As such, the company is working with farmers worldwide to adopt a regenerative approach to farming that encourages healthier soil and ecosystems, better water stewardship and a broader diversity of cultivated seeds and crops. Danone is providing training to farmers in France to make the switch to new techniques to meet a goal to rely on 100 percent regenerative farming in the country by 2025. And in order to encourage the approach beyond its supply chain, Danone recently founded the One Planet Business for Biodiversity (OP2B) initiative, a cross-sector effort to improve the private sector’s approach to biodiversity.

The strained food production system is begging for reform, argued Soubeiran. “It is very clear in Danone’s vision that the food system is broken,” he reflected. The practices ensconced in the “green revolution” of the 1970s, he said, have “intensified agriculture practices to a point where we have created a situation where food has become a commodity. And by definition, a commodity has no value or very limited value. That’s why [as an industry] we are focused on volume, not quality, and how we have reached a point where we accept the fact that 30 percent of all food produced globally is wasted.”

The transition away from intensive farming, he stressed, not only can prevent the loss of wild species, create better working conditions for farmers and livestock, end monocropping and protect local ecosystems, but is also a lever that Danone must pull if it is to reduce its carbon emissions to net zero by mid-century in line with global climate goals.

Soubeiran has experience disrupting what he dubs “linearalized” food chains and moulding them to be more sustainable. In a previous role at Danone, he was charged with managing the company’s milk supply during the period when France liberalized its previously tightly controlled milk market. The company decided to eschew a price mechanism focused on volume and set its milk price based on the cost of production, giving Danone leeway to firm up production conditions with farmers. “We wanted to stabilize our relationship with farmers so that we could discuss the way they were farming, talk about sustainability and animal welfare,” Soubeiran explains. “It’s hard to do that when you have huge [price] volatility.”

Indeed, Soubeiran is under no illusions that the wholesale transition to regenerative farming comes at a cost premium, despite growing interest in sustainable products from customers across Danone’s markets. “There is a market for sustainable food — people look for it — but we need to develop parallel stream of financing,” he said. “That’s why Danone has signed the green recovery appeal at the European level, because we believe the transformation and the renegotiation of the agriculture policy is instrumental to that.”

There is a market for sustainable food — people look for it — but we need to develop parallel stream of financing.

An additional stream of financing is targeted at helping farmers improve the quality of what they are producing while keeping prices down for the customer, Soubeiran explained.

As such, in May the company urged the EU to use its upcoming Farm to Fork and Biodiversity 2030 strategies to establish an EU Common Food Policy that provides incentives to farmers to switch to regenerative practices. These, the company suggested, could range from crop and livestock insurance that minimizes the risk of lower yields through the transition process; “innovative multi-stakeholder financing mechanisms” or carbon bonds for agricultural products with pricing adjusted to reflect soil carbon sequestration performance; and guarantees of “first loss” inspired by the renewable energy sector that would allow farmers to fund the transition to more resilient agricultural systems.

Soubeiran contends that the coronavirus has, in some respects, made his mission easier, given that the animal-originating coronavirus has underscored how ecological systems support human life. “If we protect biodiversity, we are basically protecting the diversity of DNA,” Soubeiran mused. “There’s also a sanitary aspect to it, given that we’re protecting corridors of biodiversity. While that was not that obvious six months ago, that’s obvious now for everyone.” He points out more than 65 percent of all emerging infectious diseases in humans are zoonotic — transmitted to people from animals.

But, while the zoonotic coronavirus has turbocharged public understanding of biodiversity and served as a “call to action” for Danone’s corporate sustainability initiatives, Soubeiran concedes that on a practical level the pandemic has hampered the firm’s ongoing efforts to transition farmers to regenerative practices. For example, when social distancing regulations were at their most demanding, trips to train farmers on new practices and discuss investment and financing plans became logistically impossible.

On the bright side, however, the crisis has underlined the resilience of Danone’s direct sourcing model, he says, which minimized supply chain disruptions caused by the pandemic. The firm sources 75 percent of products directly from suppliers, Soubeiran explained, adding that the model is a major boon in a world where collaborations and knowledge-sharing between multinationals and their suppliers are critical to meeting carbon targets and other joint sustainability objectives.

Soubeiran contends that there is a healthy appetite from company shareholders for Danone’s growing file of sustainability initiatives, in particular its decision at the close of last year to publish carbon-adjusted earnings per share (carbon EPS) in its quarterly reports. The metric sends a very strong message to shareholders that the company “has done its homework” on counting its Scope 1, Scope 2 and Scope 3 emissions, according to Soubeiran, as well as exposing them to the invisible cost of carbon. Danone, banking on the assumption it reached peak emissions in 2019, is confident that its carbon-adjusted EPS will rise over the years to come. And investors are engaging with the approach — in 2018, Soubeiran estimates he had 70 interactions with shareholders; last year, it had more than doubled to 190.

Moreover, in late June, 99 percent of shareholders backed Danone’s motion to become an “enterprise à mission,” a turnout dubbed “mind-blowing” by Danone chief executive Emmanuel Faber. “Huge kudos to our shareholders after today’s unanimous support of the change of Danone’s by-laws to incorporate health, planet, people and inclusiveness objectives as part of our mission,” Faber enthused. “You showed evidence that finance can change the world. It is on us, boards and CEOs, CFOs to engage finance on what matters. It responds. Big time.”

Very often, sustainability is seen as a constraint — about less carbon, less pesticide, less fertilizer.

Over the coming months, Soubeiran will focus on steering a cross-sector effort to improve the private sector’s approach to biodiversity, dubbed the One Planet Business for Biodiversity (OP2B) initiative.

The coalition, launched by Danone at last year’s UN COP climate conference, counts consumer goods heavyweights L’Oréal, Google, McCain, Walmart, Kellogg, Nestlé and Unilever. The companies have promised to work together to scale up regenerative agriculture practices, to increase the number of ingredients sourced in order to reduce the world’s reliance on a handful of crops, and to better protect local ecosystems through nature restoration and eliminating deforestation. The group is developing a framework for action that will be unveiled at the IUCN World Conservation Congress, postponed six months to January in the wake of the pandemic.

The initiative has been inspired by “systems thinking,” Soubeiran explained, and will focus on specific actions that can be monitored instead of overarching science-based targets or percentage-based goals. “With OP2B the focus is on action, action that can trigger a transformation,” he said, adding that that the single-issue, action-orientated initiative is “quite a new way of collaborating” for Danone.

Overall, Soubeiran is buoyed by the boundless opportunities’ biodiversity boosting initiatives present to food companies looking to enrich their portfolios — a fact underlined by this week’s World Economic Forum study highlighting how a nature-focused recovery could deliver over $10 trillion of economic gains. “Very often, sustainability is seen as a constraint — about less carbon, less pesticide, less fertilizer,” Soubeiran reflected. “But biodiversity is about more: More choice, more taste, more experience. It’s a very interesting topic and creates a positive spin on sustainability.”

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[Sustainability] starts from knowing your Scope 3 [value chain emissions]. It is looking at the elephant in the room, and going after it piece by piece.
There is a market for sustainable food — people look for it — but we need to develop parallel stream of financing.
Very often, sustainability is seen as a constraint — about less carbon, less pesticide, less fertilizer.

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Workers fills up milk storage tank at a Danone dairy plant in Normandy, France, April 2008.

Workers fills up milk storage tank at a Danone dairy plant in Normandy, France, April 2008. Source: Photoagriculture

Photoagriculture

AMD’s energy-slashing feat
Heather Clancy
Fri, 07/17/2020 – 01:00

It isn’t often I have the mindspace to proactively follow up on every commitment proclaimed by the companies I cover. But I recently paused to catch up about one that has particular relevance as more companies act to address their Scope 3 emissions reductions, those generated by supply chains and customers: AMD’s bold pledge back in 2014 to improve the energy efficiency of its mobile processors — the components used in notebook computers and specialized embedded systems, such as medical imaging equipment or industrial applications — by 25 times by 2020.

Not-so-spoiler alert: The fact that I’m bringing it up should be a big hint that the company has delivered. In fact, AMD overachieved the goal, delivering a 31.7 times improvement with its new Ryzen 7 4800H processor.

In layperson’s terms, that means that the chip consumes 84 percent less energy, while taking 80 percent less compute time for certain tasks. For you and me, that means batteries last longer. For companies buying entire portfolios of devices based on these processors, they will see their electricity consumption reduced. (The specific reduction you’d see by upgrading 50,000 laptops would be 1.4 million kilowatt-hours.)

Consider this perspective from tech research analyst Bob O’Donnell, president of TECHnalysis Research: “Lower energy consumption has never been more important for the planet, and the company’s ability to meet its target while also achieving strong processor performance is a great reflection of what a market-leading, engineering-focus company they’ve become.”

Indeed, when I chatted with Susan Moore, AMD’s corporate vice president for corporate responsibility and government affairs, she told me it took “a full company focus and a lot of innovation” by the AMD engineering team to make the goal happen. Note to others attempting the same sort of thing.

Although the company had pretty good visibility into what it would be able to pull off early on during the six-year period, there were plenty of questions marks, and it took unwavering support (and faith) from AMD CEO Lisa Su to keep true, Moore said. 

The Ryzen chip

Actually getting there took some very specific design changes, outlined in a blog by AMD Chief Technology Officer Mark Papermaster. Here are some of them:

  • Investments in new semiconductor manufacturing processors (specifically 7 nanometer technology)
  • Changes to the real-time power management algorithms
  • The integration of the central processor and graphics architecture into a common “system on a chip” (among other architecture changes)
  • Changes to the interconnections between the components (its proprietary approach for this is called the Infinity Fabric)

Moore said close collaboration with customers (such as the original equipment manufacturers using AMD chips for their computers) was also critical. “A large part is the ability to sit down with likeminded organizations,” she noted. 

Plus, disclosure.

AMD decided to declare its progress year to year. (Here’s the report card from 2018, for an idea of how it shared the information.) “That was definitely a risk, but we thought it was very important that is was something that we talk about along the way, so we did measurements every year,” Moore said. 

I wish every company were that transparent.

Energy Efficiency

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The future of the fashion industry requires innovative circular systems
Nicole Pamani
Fri, 07/17/2020 – 00:15

Agricultural waste from food crops either is traditionally left to rot or is burned, contributing to greenhouse gas emissions and air pollution. About 270 million tons of banana waste are left to rot annually, and in India, 32 million acres of rice straw are burned.

Circular Systems’ Agraloop, in contrast, sees food crop waste as a valuable resource, a feed stock for natural fiber products. Winner of the 2018 Global Change Award, the company aims to unlock value for the textile and fashion industry, for farmers and for the planet.

Bard MBA alum Nicole Pamani recently spoke with Isaac Nichelson, CEO and co-founder at Circular Systems, about how the company’s circular production processes are helping to redefine the meaning of sustainable materials in the fashion industry. They discussed how Agraloop functions like a mechanical sheep, and how the COVID-19 pandemic is causing us to rethink the way we produce products. 

Isaac Nichelson headshot

Nicole Pamani: Tell us the Agraloop story.

Isaac Nichelson:Agraloop is the world’s first regenerative industrial system for textile production. It originated from the mind of Yitzac Goldstein, whose natural systems thinking drives him at the core. It’s recently been described by our friend Nick Tipon from Fibershed, one of the world’s experts in regenerative farming practices and fiber systems, as essentially a giant mechanical sheep.  

A sheep consumes a lot of biomass left over from food production, basically agricultural stubble. That biomass goes into its belly, where the sheep breaks it down and turns it into nutrition. Finally, the sheep fertilizes the field, trampling it in ever so perfectly, which improves the fertility cycle.

This is exactly what Agraloop does at an industrial scale. It takes the leftover biomass from food crop production and upgrades that fiber, using some of the waste to create energy. When we’re done, what’s left over are only beneficial effluent and super high value products, rather than the caustic salts that come from traditional fiber processing or dye processing. 

The effluent is actually perfect organic fertilizer, and we take it back to the farms to build soil fertility and further sequester carbon — just like the sheep does. We’re able to provide farmers with more income for waste that was actually climate liability because it’s usually burned. 

This is more than just a better way to produce fiber from food crop waste. It’s literally showing the world that we can create industrial systems that are beneficial to humanity and to our habitat.

Pamani: How do the textiles produced by Agraloop stack up against recycled fabrics?

Nichelson: With this process, we’re changing people’s whole conception of what a recycled fabric is. Traditionally, recycled cotton textiles have been downplayed as inferior because in most cases they are.

By tearing apart the fabric, mechanical recycling creates shorter staple fibers, and that creates a less strong yarn product. The lack of strength causes issues like pilling. Because it’s generally blended with recycled polyester, it also has problems of inconsistency. These issues have prevented the massive growth of traditional mechanically recycled textiles. 

But that can all be fixed. Yitzac has innovated again around the creation of a yarn system that allows us to produce stronger-than-traditional virgin yarns that are also higher performing than traditional synthetics. Their moisture management will meet or exceed the performance of the Adidas Climate Cool or Nike Dri Fit with no chemical finishing and all recycled and organic inputs.

The COVID-19 global pandemic is forcing us to rethink our patterns of consumption and the way we produce things.

Pamani: What’s the next big sustainability challenge in the circular fashion industry?

Nichelson: We’re having it delivered to us inadvertently right now with the COVID-19 global pandemic. Within this moment so much loss is happening, but it’s also forcing us to rethink our patterns of consumption and the way we produce things. It’s bringing home the idea of how fragile our habitat is and how sacred our health is. 

As we sit in our houses, either laid off or working from home with a lot more time on our hands, we’re looking inward at this incredible crisis. The whole world — but especially the tech, style and fashion industry — is collapsing in on itself right now because it’s unbalanced and totally unprepared for what’s to come.

What’s necessary is not a revolution, but a resolution to change that resolves to do things differently as a species, not just an industry. 

Pamani: Do you see opportunities for collaboration across different levels of production? 

Nichelson: We’ve been doing presentations at textile exchanges and with some of the biggest companies in our space about a new way of looking at sustainability and collaboration. We are raising the bar. What we need to be striving for is fixing things — that’s regeneration, that’s true circular.

We’re in this incredible moment, this inflection point for humanity, and constructive interference is what’s going to save us. We need it right now on a global basis. Are we going to come out of this into the real hunger games, or are we going to come out of this into a world ready to transform and willing to collaborate?

I can tell you that we at Circular Systems are working night and day to do our part to make that collaboration a reality, and we invite everybody else to join us. 

The above Q&A is an edited excerpt from the Bard MBA’s June 5 The Impact Report podcast. The Impact Report brings together students and faculty in Bard’s MBA in Sustainability program with leaders in business, sustainability and social entrepreneurship.

Pull Quote
The COVID-19 global pandemic is forcing us to rethink our patterns of consumption and the way we produce things.

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The electronic waste collection conundrum
Heather Clancy
Thu, 07/16/2020 – 01:15

The primary reason I started covering the business of sustainability during the 2008 financial crisis wasn’t just because I was laid off from my position as editor of a technology trade publication. Quite simply, I had become obsessed with the tech industry’s then-blasé attitude about the seemingly intractable problem of electronic waste. 

A dozen years later, it’s still a massive problem — although data released this week by Morgan Stanley suggest that shifting consumer mindsets about electronics recycling, refurbishment, repair and trade-in programs could be a catalyst for change.

First, some stats. According to a December report by the United Nations Environment Program, roughly 50 million tonnes of electronic and electrical waste is produced globally on an annual basis. By weight, that’s more than all of the commercial airliners ever manufactured, and only 20 percent of the stuff is formally recycled. (The operative word being formally, because a lot of it gets handled in informal ways that can inflict serious human and environmental damage. But that’s a subject for another essay.)

The numbers will never scale until collection is scaled.

When I started mining some of my stories from a year ago, those figures were eerily familiar. The amount of e-stuff collected and processed for some useful end — either mined for metals and rare earths or refurbished for a second life — definitely has been growing, thanks to companies such as Apple, Dell, HP Inc. and Samsung. But not nearly enough when you think of all the gadgets that have made it into the world’s hands over the past 10 years. 

Interest in seeing that change is growing among consumers — at least before the pandemic really set in — according to research fielded in February by Morgan Stanley. More than half the individuals the financial services company surveyed — 10,000 people from the United States, United Kingdom, Germany, China and India — said they recycle old electronics devices. That’s up from 24 percent just two years ago. Close to half of them, 45 percent, said electronics recycling should be handled by the manufacturer.

Furthermore, close to 80 percent of the respondents reported that they repaired a device — or planned to repair — at least one gadget; 70 percent had bought or planned on buying a refurbished one. “As advanced robotics technology becomes more accessible, repairs and chip-set upgrades could become a more compelling method in making devices more ‘sustainable,’” Morgan Stanley noted in its report.

Great idea, but how does all this stuff get to a location where it can be repaired, refurbished or recycling? “The numbers will never scale until collection is scaled,” long-time electronics recycling executive Kabira Stokes told me when I chatted with her earlier this week.

Stokes founded her first electronics recycling organization in 2011 as a social purpose corporation and later sold Homeboy Industries. Homeboy Recycling, where she’s a board member, handles recycling for companies, notably HP — it has raised oodles of press for its workforce development program, which creates jobs for formerly incarcerated individuals.

Electronic waste, circuit boards

She’s hoping to bring the same ethos as CEO of one-year-old Retrievr, which is (you guessed it) focusing on solving the collection problem. The company’s first market is Philadelphia, where it has contracted with the city and more than 80 nearby municipalities to pick up unwanted clothing and electronics that otherwise might wind up in places where we really don’t want it. Retrievr’s lead investor is Closed Loop Partners and it is advised by execs from Accenture and Google.

“This is a way to reach into people’s houses. In my mind, it’s the only way to move the needle,” Stokes said.

While Retrievr isn’t ready to talk about its partners in fashion and technology, it’s shopping the software behind its collection system as a way to help product makers get stuff back more easily, Stokes told me.

Historically speaking, many makers of stuff haven’t taken responsibility for its end of life. That’s changing as more explore circular production methods. Morgan Stanley’s analysis notes that consumers are particularly interested in trade-in options, with more than three-quarters of those surveyed hoping to participate in such a program by 2022. This isn’t just a matter of sustainability, it’s a matter of competitive advantage. The firm figures of the value of Apple iPhones that could be traded toward new devices is somewhere around $147 billion, an amount that could fund roughly 30 percent of new iPhone purchases over the next three years.

“We believe that now is the opportune time for manufacturers to invest more aggressively in infrastructure to support these types of programs,” the Morgan Stanley analysis notes.

Of course, it’s possible that if this same survey were fielded today, fewer consumers would be interested in repairs or refurbished devices or in trading the old for new. During a pandemic, things previously owned by others don’t have quite the same cachet.

One big wildcard is how the COVID-19 economic crisis — and potentially permanent new habits in remote working and education — might affect demand for personal computers and tablets. Think of how many households with multiple children have had to invest in additional devices in order to keep everyone online. Just last week, research firm IDC reported that second quarter PC shipments grew by double digits compared with a year ago. It could be exactly the right time to change the model.

This article first appeared in GreenBiz’s weekly newsletter, VERGE Weekly, running Wednesdays. Subscribe here. Follow me on Twitter: @greentechlady.

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The numbers will never scale until collection is scaled.

E-Waste

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Could trash-to-energy technology feed hydrogen demand?
Arlene Karidis
Wed, 07/15/2020 – 01:00

One novel spin on emerging hydrogen fuel options is “clean hydrogen” made from trash. 

Early pioneers of these hydrogen-from-waste technologies such as Ways2H, SGH2 Energy (SGH2) and Standard Hydrogen say not only are they making carbon-free, energy-rich fuel, their approaches also will divert mountains of trash from landfills and waterways, cutting greenhouse gas emissions.  

Green hydrogen — made by splitting water’s hydrogen and oxygen using electricity produced by renewable sources — is a small fish in the “energies pond.” Today, more than 95 percent of hydrogen is fossil-based and does not rely on renewables. Other technologies are in the mix, such as battery electric vehicles.

Hydrogen from waste is an even smaller fish than hydrogen from renewable energy. There are only a few waste-to-hydrogen projects, most which are in early stages and relatively small scale.

Still, there is potential for clean — low- or zero-carbon — hydrogen to take off, energy experts believe. It is energy-efficient, abundant and an environmentally friendly alternative to natural gas. Clean hydrogen could cut greenhouse gas emissions from fossil fuel by up to 34 percent, reported Bloomberg New Energy Finance. 

Deployed at scale, hydrogen from all sources could account for almost 20 percent of energy consumed by 2050, projects the Hydrogen Council. The annual demand could reach 19,120,458,891 tons by then, representing a tenfold increase from 2015 to 2050. 

When we began marketing our services, we expected most of the interest to center around our hydrogen production capabilities, but most inquiries have centered around waste consumption.

 

Looking specifically at hydrogen from renewable energy, Bloomberg calculates that if the cost for the technology to produce it continues its current downward curve, renewable hydrogen could be competitive with natural gas in several countries before 2050. And it could be cheaper than producing hydrogen from natural gas. Combined with a push for decarbonization, these economics could drive demand, project energy experts. 

A few tech companies are working to grow clean hydrogen in Europe and Asia and, lately, California. As the state weighs hydrogen as a possible path to its goal of carbon neutrality by midcentury, California’s policy makers are following emerging research, including a recent report from Lawrence Livermore National Laboratory looking specifically at converting hydrogen from waste. It concluded this approach could be a cost-effective way to actually achieve negative emissions.

One company hoping to capitalize is Ways2H, which has a thermal process to convert municipal solid waste, medical waste, plastics and sewage sludge into renewable hydrogen. With four pilots under its belt, the company soon plans to launch a commercial project in Tokyo. It will start by making transportation fuel from wastewater sludge, then add plastics, according to the company. 

Later this year, the developer intends to build a plant in California to make hydrogen from waste for transportation fuel or for the power grid; it is negotiating with a healthcare provider to supply the trash. The plan is to build more plants in California and other U.S. locations in 2021.

Ways 2 H gasification plant

Above photo courtesy of Ways2H

Ways2H CEO Jean-Louis Kindler believes he’s found a promising niche. “As we see more hydrogen fuel-cell vehicles, beginning with public transportation applications … that are happening worldwide, and as more utilities adopt hydrogen as a power generation fuel, producing renewable hydrogen from waste will be an important source of supply to meet growing clean hydrogen demand,” he said. 

Is this the best second life for trash? Energy Transitions Commission, a global coalition of leaders across the energy landscape, is exploring low-carbon energy systems — including different ways to make hydrogen. The commission’s stance is that leveraging biomass to make hydrogen fuel is not putting waste as feedstock to its best use.

“We try to understand bioresource demand and to prioritize its use, using it as a resource where there are no other low-carbon options. There are other ways to make hydrogen. Meanwhile, there are applications with few low-carbon options that need the biomass more, such as biofuels for aviation,” said Meera Atreya, Energy Transitions Commission Bioeconomy lead.

That hasn’t dissuaded Ways2H and others from forging ahead. 

SGH2, for example, is producing hydrogen from mixed paper, which is fed into a gasifier that operates at very high heat generated by oxygen and plasma torches. The heat breaks down waste’s hydrocarbons into a synthetic gas; hydrogen is then separated and purified to 99.9999 percent.  

Its first plant will be able to generate 3,800 tons of green hydrogen a year from waste supplied by the city of Lancaster in California, which will co-own the facility according to a memorandum of understanding, according to the SGH2 web site.

SGH2 Energy conceptual

The image above describes SGH2’s process.

SGH2 is negotiating with fueling stations interested in the Lancaster plant’s output. SGH2 CEO Robert Do, whose background is in physics, medicine and business, can’t name companies yet but said, “We have also had enormous interest from other buyers in California and globally. We are in talks with utilities, cement companies, and hydrogen bus manufacturers, among others.” 

A preliminary lifecycle analysis indicates that for every ton of hydrogen produced, SGH2’s process displaces 13 to 19 tons more CO2 than processes using electrolysis to split water’s hydrogen and oxygen. Do said his production costs are lower, averaging $2 per kg. 

“We can do it cheaper because our fuel is free, in exchange for offering disposal services at no cost to generators. And we can run the plant year-round while electrolysis depends on availability of solar and wind,” he said.

A 2020 Hydrogen Council report states that renewable hydrogen produced via electrolysis is about $6/kg hydrogen; although costs have been declining, and it projects they will continue to drop. 

Another pioneer in the waste-to-hydrogen movement is Standard Hydrogen Company, which is converting waste to hydrogen sulfide, then splitting it into hydrogen and sulfur to make fuel from the hydrogen. Like SGH2, the company says its process is cheaper than electrolysis because it is less energy-intensive and involves no water.

Standard Hydrogen CEO Alan Mintzer hopes to close on his first joint venture this summer with a consortium of North American utilities and multinational corporations that will provide feedstock and purchase the hydrogen. He is targeting pricing of $4/kg wholesale and $5/kg retail.  

“When we began marketing our services, we expected most of the interest to center around our hydrogen production capabilities, but most inquiries have centered around waste consumption. Not only will we clean the landfills and plastic and tire dumps, but our process provides an incentive to go to the floating garbage islands out in the oceans, and convert them into hydrogen,” Mintzer said. 

The California Energy Commission (CEC) and other agencies in that state have funded research on hydrogen transportation fuel, including potentially sourced from waste. 

“As the state moves to deep decarbonization, we’re exploring all options — including hydrogen as a clean energy carrier — in order to identify the most cost-effective pathways to reduce carbon emissions and protect public health,” says Laurie ten Hope, deputy director for Energy Research and Development at the California Energy Commission. 

Technology & Investment Solutions is among those doing research for California. Its project is in collaboration with the University of Southern California (USC) and entails converting organic waste to biogas through anaerobic digestion and uses USC’s catalytic reformer to convert the methane to hydrogen for potential use as vehicle fuel. 

Still, the process of making hydrogen fuel from any source has a way to go before it has firm footing, even in a state committed to decarbonization. 

While California is mandated to bring 100 hydrogen refueling stations on line by 2025, and is looking to add more, it currently has just over 6,000 hydrogen vehicles on the road, compared to nearly 700,000 electric vehicles, noted a CEC spokeswoman. She added, “So while the state has invested in hydrogen technologies, today there is far less adoption of hydrogen fuel-cell vehicles than electric ones.”

Through their growing pains, developers working on hydrogen from waste are onto something, speculated Keith D. Patch, an energy and technology consultant. Not only are other clean technologies such as electrolysis expensive, they require enormous energy and don’t address the waste problem that waste conversion technologies could, he points out. But what are the hurdles? 

“The biggest barrier has been overly optimistic predictions by waste conversion companies, primarily around technical maturity and commercial economics. But once commercial readiness is validated by robust subscale testing, the industry should be primed for takeoff,” Patch said.

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When we began marketing our services, we expected most of the interest to center around our hydrogen production capabilities, but most inquiries have centered around waste consumption.
The biggest barrier has been overly optimistic predictions by waste conversion companies, primarily around technical maturity and commercial economics.

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Workplace EV charging: Lessons from sustainability trailblazers
Marsha Willard
Tue, 07/14/2020 – 01:30

Businesses are reaping the environmental and social benefits of providing electric vehicle charging for employees. That’s according to research published last week by Presidio Graduate School (PGS) and ChargePoint, providers of the world’s largest EV charging network.

Last fall, a research team from PGS conducted a study on workplace electric vehicle charging practices. In addition to a review of the current literature, the team interviewed sustainability leaders in 24 organizations across the United States. The findings reveal that while still most common in Europe and in U.S. coastal states, the speed of EV adoption makes creating the charging infrastructure an imperative for both the public and private sector. Leading organizations have made a solid business case for providing workplace charging and other EV related employee incentives or benefits. Below are some key findings of the study:

  • Employers recognize that demand for charging will only grow; in many cities such as Portland and San Francisco EV charging in workplace parking lots is already both an expectation of employees and a city mandate.
  • Business plays an important role in facilitating EV adoption; providing EV charging to employees is increasingly easy to justify to corporate executives. 
  • Providing charging at the workplace increases employee satisfaction and makes it easier to attract and retain workers.
  • Supporting EV commuting and investing in EV fleets help organizations meet their greenhouse gas reduction targets. 
  • Employers are worried less about upfront costs and are thinking long-term about strategies to optimize their investment. 

Key strategies to maximize benefit

To get the most out of the investment in workplace charging stations, the corporation and other organizations participating in this research study focused on these four key implementation strategies:

1. Assure availability

What the study participants learned is that while you may not see a lot of EVs in your parking lots now, they are coming and they catch on faster once workplace chargers become available. Bank of America, for example, saw a 50 percent increase in the number of EV commuters in just one year after installing chargers, reinforcing the theory that EV adoption is mostly hindered by a concern about being able to charge away from home.

In trying to determine how many chargers to provide, the participating organizations often underestimated the demand and recommended thinking ahead when planning.

Once available, chargers become an important amenity to employees. Study participants reported not only increased satisfaction with the workplace, but ncreasingly, an expectation that chargers be available making them part of nearly all our participating organizations’ recruiting and retention packages. In trying to determine how many chargers to provide, the participating organizations often underestimated the demand and recommended thinking ahead when planning. Some progressive cities such as Salt Lake City and Duluth, Minnesota are beginning to mandate chargers in all new construction. The required number varies from 1 to 5 percent of spaces depending on the jurisdiction. Forward-thinking businesses, such as those in our study, believe these requirements are conservative and plan to expand the number of available chargers. LinkedIn, for example, which covers about 10 percent of parking spaces with EV chargers, is building toward a target of 20 percent.

2. Allow dynamic pricing

Most study participants saw value in providing free charging for employees. What they have learned is that it not only builds employee satisfaction, but also encourages EV adoption. While there is a strong commitment to providing free charging, an increasing number of organizations are opting to charge fees for lingering at the stations. In an effort to optimize the use of the charging stations, it is common to assess a fee after a car has been parked at a charger for more than four hours. This is made possible by using “smart” chargers — chargers connected to a network that allows managers to not only tailor fee structures but to send alerts to users as well as monitor usage and capture greenhouse gas-related data. 

3. Optimize energy management

Study participants understood that the expected increase in demand for workplace charging will require more attention to power management. In addition to meeting the extra demand without over-tapping their capacity, they also want to assure the most efficient use of the charging infrastructure. Power management features available on some chargers enable site managers to maximize the number of charging ports before having to upgrade existing wiring or panels. These systems also enable management to assure that charging EVs never exceed the maximum aggregate electrical load, thus avoiding potential peak load charges. These systems also enable managers to control when and how much energy is being tapped to maximize consumption during those times of the day when renewable power is most plentiful.

Organizations serious about using an EV program to lower their carbon footprints may find an increasing need to invest in renewable power.

4. Source from renewable power

Most study participants power their chargers with lines from their existing building panels, so the electricity comes from the same generation source as their buildings. This is the most cost-effective method for powering the chargers, but it links the carbon impact to the generation source provided by the region’s utility. If the local utility is powered mostly by coal generation plants, the carbon savings may be negligible. 

Organizations serious about using an EV program to lower their carbon footprints may find an increasing need to invest in renewable power. Amazon, for example, plans to increase its renewable energy usage from 40 percent to 100 percent by 2030. Bank of America already sources 91percent of its energy from renewable sources and will be rolling out on-site solar generation at more than 60 of its locations in the next two years. A number of the research participants already have invested in their own on-site generation, and 55 percent report that they are looking to add or expand this capability in the future. When self-generation is not feasible, organizations have increasing opportunities to source renewable energy through their utilities. 

Electrification of vehicle fleets will markedly reduce greenhouse gasses. Employers have much to gain and much to offer in this transition. Offering on-site, electric vehicle charging not only will contribute to the infrastructure needed to speed this transition, but also benefit companies that offer this amenity. 

To hear a fuller story from one of our study participants, visit the recording with Erik Hansen of Workday.

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Organizations serious about using an EV program to lower their carbon footprints may find an increasing need to invest in renewable power.
In trying to determine how many chargers to provide, the participating organizations often underestimated the demand and recommended thinking ahead when planning.

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Chemical footprinting comes of age
Meg Wilcox
Mon, 07/13/2020 – 02:00

When the Chemical Footprint Project launched in December 2014, it aspired to become the next carbon footprint or the next widely used tool for measuring company performance on a critical sustainability concern — toxic chemical use in the manufacturing of products. 

It’s made steady progress since then, with 31 companies, including Levi Strauss, Walmart and HP Inc., using the Chemical Footprint Project’s annual survey to inventory and report on their hazardous chemical use, as well as their progress towards safer alternatives. 

Last month, however, the initiative scored a big win that just might bring it closer to reaching its lofty goal. Nearly 45 percent of TJX Companies’ shareholders voted in favor of a resolution calling on the discount retailer to report on its plans to reduce its chemical footprint (the “chemicals of concern” used to manufacture the products it sells in its stores).  

“To get that kind of vote on this ask, that sends a message,” said Cherie Peele, program manager at the Chemical Footprint Project. 

Investors, it seems, want more transparency from companies about how they are moving toward safer chemicals, to manage their risks and respond to consumer preferences. Socially responsible investors are further concerned about the environmental justice implications of the science linking hazardous chemical exposure to chronic diseases such as diabetes because communities of color bear the brunt of chemical production. This investor interest just may spur more companies to take up chemical footprinting, and particularly as they see their high-performing peers reap the rewards of consumer trust in their brands.

The chemical footprint provides a way to not just say that we care about safer chemicals and green chemistry, but demonstrate it by measuring the process towards safer chemicals.

The TJX vote was “a good demonstration that the E in ESG is not just about climate or water, it includes chemicals. It’s something that I hope companies take to heart,” said Boma Brown-West, senior manager of consumer health at EDF+Business. 

The strong vote surprised the investors who filed the proposal, Trillium Asset Management LLC and First Affirmative Financial Network, because it was the first time such a resolution had been brought to a vote. Ordinarily, such first-time shareholder resolutions receive single-digit votes.

That fact that it got over 40 percent is “an indication that some major institutional money managers voted in favor,” said Holly Testa, director of shareholder engagement at First Affirmative Financial Network. “It’s an indication that there’s widespread investor interest in this issue. It’s a mainstream concern.”

“I think it’s going to set a precedent for future work on [chemical footprinting],” said Susan Baker, vice president of Trillium Asset Management. “I have to give credit to the leaders out there that have policies and are really listening to the changes in the marketplace. They’re gaining competitive advantage.”

Roger McFadden, president of McFadden and Associates and former senior scientist at Staples for 10 years, said he sees corporate interest in chemical footprinting rising. Whereas in the past, “they were afraid their footprint wouldn’t be all that good,” or they feared they might not stack up well against their direct competitors, now, he says, “I think that’s the exact reason chemical footprinting is catching on. Enough companies are doing it that their competitors are beginning to pay attention to it.” 

Brand value and competitive advantage

A core advantage for companies participating in the chemical footprint survey “boils down to building trust, protecting your brand,” said McFadden, pointing to recent examples where companies have taken big economic and reputational hits when the health impacts of toxic ingredients in their products came to light — namely, the weed killer Roundup and baby powder.  

“The chemical footprint provides a way to not just say that we care about safer chemicals and green chemistry, but demonstrate it by measuring the process towards safer chemicals,” he said. 

Trillium filed the shareholder resolution with TJX in part because it saw the discount retailer lagging behind its peers. “There wasn’t evidence that they were taking a proactive approach in keeping abreast of regulatory changes and consumer preferences,” Baker told GreenBiz.

“They really need to think about responsible sourcing, and how it impacts customer trust,” she added, pointing to retailers measuring their chemical footprints and moving toward safer alternatives. “Look at Target. They have all these private label brands that are attracting people into their stores. Their customers trust their brands.”

TJX did not respond to GreenBiz’s request for comment; however, in its 2020 Proxy Statement it noted, “The company is already taking steps to better understand and appropriately address how the company manages its chemical footprint. … Developing and implementing a comprehensive chemical policy is especially complex in light of the company’s off-price business model,” which involves buying from a vast universe of vendors. 

In response, Baker and Testa point to Dollar Tree, which has a similar off-price business model yet nevertheless participated in the 2019 Chemical Footprint Survey and has committed to eliminating 17 hazardous chemicals from products in its stores.

COVID-19 spurs environmental justice concerns

As evidence mounts that chemical exposure has effects on chronic disease, such as diabetes, obesity and heart disease — and that individuals with those health conditions are more vulnerable to the coronavirus — socially responsible investors are wanting more disclosure and action from companies on chemical risks, Testa told GreenBiz.

“The connections are becoming clearer…” she said, and “that has staggering economic and societal consequences.” 

Research documents that the chemical plants that produce the chemicals used in everyday products are often sited in communities of color, in areas some call sacrifice zones.

“If the brands and retailers can start a program of reducing these chemicals, it’s going to go upstream and reduce the impacts of air and water pollution to the most vulnerable in this country,” Baker said.

The Sisters of St. Francis of Philadelphia has been linking environmental justice and chemical risk concerns in its work with retailers such as Dollar Tree and oil and gas companies with stores or facilities in communities of color. “We are tying the pandemic, climate change, environmental justice and human rights. They’re very much linked to one another,” said Sister Nora Nash.

Even just beginning the process is a leadership role. We’d like to think that anybody who’s participating, we see them in a leadership role.

For companies such as Dollar Tree and TJX, it “hits both sides,” Testa added. Much of the companies’ products are made in countries with low standards for protecting workers from chemical exposure, and their consumer bases also have a high representation of lower income and minority communities purchasing their products. Such products may contain chemicals of high concern if the company is not assessing its chemical footprint. 

The next carbon footprint?

With just 31 companies reporting their chemical footprints, the initiative has a way to go before it becomes as widespread as the carbon footprint. Peele says that “we’re still in the process of socializing” the survey. The Chemical Footprint Project survey is also evolving every year as it works with companies on the challenges of collecting and reporting information that comes from many places within a company. 

McFadden agrees that it takes time for a reporting scheme to become mainstream, noting that the carbon footprint had slow uptake initially because companies were unsure about it. And he notes that carbon is just one chemical, whereas chemical footprinting is thousands of chemicals. 

Still he sees potential for the chemical footprint to become just as mainstream as the carbon footprint, particularly once companies get over the fear factor of “What am I measuring?” and “What if my grade makes us look bad?”

To that Peele responds, “Even just beginning the process is a leadership role. We’d like to think that anybody who’s participating, we see them in a leadership role.”

Ultimately, if investors don’t spur more companies to report their chemical footprint, consumers just might do the job. 

“The next generation, my kids and grandkids, they’re not going to accept the things … that my generation accepted,” McFadden said. “They’re going to expect much more transparency and disclosure. Companies are going to have to recognize that. If they push back against that, they’re going to push back against their customers.” 

Pull Quote
The chemical footprint provides a way to not just say that we care about safer chemicals and green chemistry, but demonstrate it by measuring the process towards safer chemicals.
Even just beginning the process is a leadership role. We’d like to think that anybody who’s participating, we see them in a leadership role.

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