How COVID-19 can shape the response to climate change
Terry F. Yosie
Wed, 05/13/2020 – 02:31

Part Two of a four-part series. Part One can be found here.

As the consequences of the COVID-19 pandemic continue to unfold, insights are emerging on how to repurpose what’s been learned for the benefit of climate change mitigation. To date, most of the focus on the pandemic-environment nexus has been short-term. A number of environmental activists, for example, have recommended that temporarily reduced air pollution levels be made permanent through regulatory controls. Conversely, the Trump administration has used the pandemic as an argument to issue an open-ended suspension of the enforcement of environmental laws.

These examples reflect the battle lines being drawn for an even larger conflict that is emerging over climate change policy. 

Three key facts

Three key facts highlight the growing stakes in play for climate change decision making.

First, many parallels exist between arguments that deny the existence of climate change and the assertion that COVID-19 is a large-scale hoax designed to reduce personal liberty, confiscate the purchase and use of weapons and alter the traditional American way of life.

Using Facebook and YouTube as principal social media organizing platforms and Fox News as a megaphone to broadcast their views, “denialists” have proven their ideology to be adaptable across multiple issues, including climate change, stratospheric ozone depletion and vaccinations against communicable diseases. Recent Washington Post investigations have reported linkages among groups that organize and financially support denialist demonstrations. Some of these groups also fundraise in behalf of the Trump re-election campaign.

As the consequences of the COVID-19 pandemic continue to unfold, insights are emerging on how to repurpose what’s been learned for the benefit of climate change mitigation.

Second, a principal argument used against greenhouse gas controls — that they rely upon data and protocols developed by scientific experts — has garnered substantial public support when applied to combating the COVID-19 pandemic.

This result occurs because individual citizens understand that their personal well-being is at risk. Thus, they are more receptive to receiving guidance on how to mitigate this risk from medical professionals that they know of and trust. Also, the medical advice provided is both direct and practical — shelter-in-place, wear a mask, maintain social distancing. A similar opportunity exists to provide more specific climate change mitigation advice from independent scientists and professional bodies directly to citizens whose awareness of climate risks continues to grow.

Third, there is overwhelming evidence that both the coronavirus pandemic and climate change damage were knowable and preventable. Numerous scientific reports, intelligence community assessments and public pronouncements from well-known public health or technology authorities such as Bill Gates warned, over a period of years, of the probability of a pandemic. The inability to respond to these warnings represents a system-level failure on the part of those responsible for protecting public health.

A similar failure towards a system-level set of risks is unfolding with accelerating climate change. Over the past three decades, an elaborate evidence-based system has been in place for evaluating scientific data, modeling temperature changes and effects as varied as the melting of polar ice caps, sea level rise, heat waves and droughts and the spread of disease vectors.

Unlike their health scientist counterparts, climate scientists have encountered a longstanding, organized campaign of skepticism and denial — funded by dark money business interests — about their peer-review procedures and their conclusions. This has resulted in direct harassment of both Individual climate scientists and established scientific bodies such as the Intergovernmental Panel on Climate Change, and has directly slowed policymakers’ and civil society’s ability to respond to life-threatening climate risks.

COVID-19 outcomes for climate change planning

At this juncture of managing the COVID-19 crisis, three significant outcomes have emerged that can inform responses to the climate crisis:

  • People have connected their personal well-being to expectations of government action. They expect the institutions of government (and civil society organizations) to act on their behalf by defining essential economic activities, providing needed medical infrastructure (hospital capacity, critical supplies and tests) and maintaining civil order.
  • Governmental officials, medical professionals and citizens have embraced the need to “bend the curve” for COVID-19 incidence and mortality.
  • Citizens believe they have a responsibility to each other by sheltering in place, frequently washing their hands, maintaining appropriate distances, limiting their mobility and wearing masks outside of their homes. This has occurred for reasons of self-interest but also stems from moral and ethical values and notions of good citizenship.

Actions to bend the climate curve

Public support for a goal to “bend the climate curve” can be built but will require national and International efforts to limit/reduce future greenhouse gas concentrations in the atmosphere and contain a worldwide temperature increase to between 1.5 and 2 degrees Celsius over the next few decades (the two pre-eminent metrics for measuring success in bending the curve). 

Three types of actions are required to achieve this goal: policy initiatives that can acquire sufficient political support to be enacted within the next two years; interventions by investors on climate governance; and behavioral change through moral and ethical appeals to individuals and groups.

Policy actions

Policy actions should be guided by the “Bill Gates Principle”: People should not waste idealism and energy on a policy that will not cause any reduction in the use of fossil fuels. Policy actions should encompass regulatory, tax and budgetary actions. They include:

  • Rejoining the Paris Climate Accord, with the objective of renegotiating more ambitious climate targets and timetables with added transparency.
  • Setting a U.S. objective of decarbonizing the economy through a policy of net-zero carbon emissions by 2050 across all major industry sectors. Appropriate interim objectives also should be established. For example, the U.S. government and the utility industry should establish a goal for phasing out coal-fired power plants by 2030. The Obama administration’s Corporate Average Fuel Economy standards should be maintained and periodically updated.
  • Removing all energy subsidies, including those for solar and other renewables. The latter have achieved a level of market competitiveness and will succeed in gaining expanded access to various energy markets. Fossil fuel companies, a growing number of which are heavily indebted or experiencing reductions in their customer markets, should compete in the future only on a market-clearing basis and not as rent-seeking enterprises.
  • Avoiding transfer of public funds to large, carbon-intensive companies. Innovation potential is higher when funds are directed at new technology development rather than larger, more heavily capitalized firms with existing access to credit markets.
Investor actions

Investors have become increasingly active in engaging multinational companies on their environmental, social and governance (ESG) commitments. Their influence is greatly strengthened by the performance of ESG or sustainability fund investment portfolios when compared against traditional benchmarks such as the S&P. Moving forward, investors should be:

  • Intensifying engagement with CEOs and corporate boards on climate governance and commitments. Increasing synergy involving Climate Action 100+ (and allied partners) advocates, ESG-focused investment firms, individual analysts and shareholders have achieved some impressive gains in recent years and should accelerate. Shell Oil Company’s April 16 declaration to become a net-zero emissions energy business by 2050, followed shortly thereafter by a similar announcement by French oil giant Total, are examples of such engagement. Investors should espouse that all Fortune 500 companies achieve net-zero carbon emissions by 2050 with interim, transparent reporting benchmarks established for 2030 and 2040.
  • Advocating the elimination of deferred carried interest. This refers to the preferred tax treatment received by hedge fund and private equity fund managers. Current rules treat carried interest income as a long-term capital gain (taxed at a U.S. rate of 23.8 percent) rather than as ordinary income (subject to a rate of 39.6 percent). This favored tax treatment is completely artificial, and benefits investors primarily interested in accumulating short-term gains rather than longer-term focused portfolios such as investments in sustainable energy. Carried interest deferral also contributes greatly to social inequality.
  • Recommending that the financial transaction tax (FTT) be raised. Presently, each stock transaction is taxed at a rate of 2 cents per $1,000. Raising the FTT to $1 for each $1,000 of transactions will disincentivize high-frequency trading, create fairer markets, encourage longer-term possession of stocks and lessen inequality.
Mobilizing citizens

Persuasive facts directly engaging citizens must accompany policy and investor actions if a growing public awareness of climate change is to mobilize an aggressive movement to support greenhouse gas reductions. A citizen mobilization strategy should include:

  • Expanding philanthropic support for grassroots citizen participation to distill climate change science into usable, actionable knowledge. This can be done by establishing academic fellowships, research centers and grants to develop position papers and other content; training citizens to participate in government decision making; and multiplying citizens’ voices at the grassroots levels and through social media. Leading philanthropists should pool their resources, using nonprofit, tax-deductible organizations, to invest at least $1 billion annually within the next two years and subsequently. Unlike the “dark money” contributions of foundations, whose aim is to weaken health and environmental protections and sow political divisions, the sources of pro-climate change philanthropy should be completely transparent.
  • Convening community climate risk commissions to evaluate risk scenarios, the resilience of current infrastructure (drinking water systems, the electricity grid, subways and bridges). The outcome of this effort — ideally a collaboration of local governments with universities, nongovernmental organizations, progressive businesses and interested citizens — would be the development of a community climate plan to identify key local risks and recommended priorities and budgets for their resolution.
  • Expanding the moral and ethical rationale for climate actions. The moral basis for reducing climate risks includes: self-preservation of humans and ecosystems that sustain all life forms; expanding economic opportunities that broadens the middle class, expands the social safety net and rewards investors; creating a fair and more equitable society; and protecting the earth for future generations. Coupling moral arguments with expanded economic opportunities (job creation, purchase of newer and cleaner products, investing in companies with highly rated environmental, social and governance portfolios) can unleash powerful incentives at market scale to transform enterprise management and consumer behavior to better manage climate risks.

Contemporary society already has entered the era of system-level risk from climate change. By way of context, scientists evaluating the onset of the COVID-19 pandemic have concluded that mitigation measures taken in January-February were far more effective in avoiding disease incidence and mortality than later initiatives to self-isolate and shut down non-essential economic activities.

In a similar fashion, delays in implementing climate mitigation and adaptation measures across the globe will result only in more draconian setbacks to life as we’ve come to know it. Leadership consists of mobilizing governments, businesses and citizens to support initiatives that can begin to bend the climate curve in the next two years.

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As the consequences of the COVID-19 pandemic continue to unfold, insights are emerging on how to repurpose what’s been learned for the benefit of climate change mitigation.

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Here’s what fringe consumers tell us about the post-pandemic marketplace
Deonna Anderson
Wed, 05/13/2020 – 00:06

For years, communications firm Shelton Group has been gathering data about “fringe” consumers through intensive, manual social media analysis about both environmental and social sustainability.

Why? Because while the fringe tends to be ahead of the curve when it comes to the trends, eventually some ideals of fringe consumers become mainstream. As just one example of a once-nascent idea, Shelton Group pointed to the call by buyers for consumer brand companies and others in the consumer products value chain to transition away from plastics that eventually end up in the ocean.

“The important piece of that is this is where you as a business and as a company and as a brand can take a look and understand something, that if it comes at you as a surprise, it’s a threat,” said Susannah Enkema, vice president of research and insights at Shelton Group, during last week’s GreenBiz webcast about what fringe consumers can tell us about the post-pandemic marketplace.

“But if you understand it now, you can turn that threat into an opportunity, And that’s really the power of the fringe,” Enkema continued, before sharing findings from Shelton Group’s most recent report, “Seeing into the Future: Leveraging fringe consumer insights to build a sustainable brand in a post-COVID world.”

Between March and mid-April, Shelton Group observed trends on social media — including Twitter, Reddit and Instagram — to gather insights about what might happen after the COVID-19 pandemic. It first shared the findings during the webcast.

The important piece of that is this is where you as a business and as a company and as a brand can take a look and understand something, that if it comes at you as a surprise, it’s a threat.

In the report, Shelton Group defines the fringe as a “subset of individuals who live on the fringes of society in terms of their beliefs and behaviors,” also noting that they tend to be activist-oriented. Additionally, the firm polls mainstream consumers to further gather data about trends.

“We have over the last few years seen a shift towards sustainability that we haven’t haven’t seen before, and it’s kind of two-fold,” said Suzanne Shelton, president and CEO at Shelton Group, during the webcast.

“There’s a social proof or social pressure kind of aspect to this, in which pre-COVID, 42 percent of us wanted to be seen as buying green products,” Shelton continued. “But beyond that, we’ve also seen pre-COVID that 86 percent of us expect companies to stand for something more than just making money.”

As the world grapples with the coronavirus pandemic and recession, fringe consumers can give businesses a sense of what their expectations might be when this is all over and we go back to a “new normal.” Here are a few key takeaways.

Shelton said businesses have two options — return to “business as usual” or “embrace the responsibility consumers have given them to tackle large scale issues like climate change,” noting that business leaders should choose the second option for a number of reasons.

Further, Shelton said, businesses need to get involved in the right way and start rethinking sustainability so that they’re not doing the bare minimum. Consumers need to know that businesses have some “skin in the game.”

“In this new COVID world, what we’re seeing in the fringe that is quickly becoming mainstream is that those ideas are amplified,” she said. “What we’re seeing clearly in all this listening that we’re doing right now, again fringe and mainstream, is that businesses are sort of acting in one of four ways and therefore, they are getting categorized in one of four ways by consumers.”

Screenshot from Shelton Group report

Shelton noted that there is a hierarchy in the four ways consumers are categorizing businesses. The businesses that are donating small aid that takes advantage of pandemic-induced losses are ranked low while those going beyond minimizing losses — such as those that shifted their manufacturing to produce masks or hand sanitizer — are ranked the highest.

Consumers are paying attention to these actions, and as citizens, they’re paying attention to “the system” — the government, economic system, etc. — which the fringe has said needs to be changed for years. That idea is becoming more mainstream, as the pandemic has exposed the flaws of the current models and to point to a specific system, capitalism.

During the webcast, Shelton said right now is the time for companies to step up their sustainability efforts.

“As you think about your 2030 goals and 2040 goals, I think you need to go way beyond or else you’re going to live in this bucket forever and be seen as, ‘Yeah, they’re doing alright but they could be doing more,’” she said.

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The important piece of that is this is where you as a business and as a company and as a brand can take a look and understand something, that if it comes at you as a surprise, it’s a threat.

COVID-19

Corporate Strategy

Sustainability Strategies

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The robotic, hybrid-electric future of agriculture
Shane Downing
Tue, 05/12/2020 – 00:15

While many around the world, ordered indoors amidst the COVID-19 pandemic, are coming up with innovative ways to plant small victory gardens in, around and on top of their homes, plenty of change is afoot in big ag — much of it driven by new technologies.

A recent IDTechEx webcast, “Electric Vehicles and Robotics in Agriculture: $50 Billion Market Soon,” provided a brief overview of a 215-page report, “Electric Vehicles and Robotics in Agriculture 2020-2030,” that the research firm published in February. According to IDTEchEx Chairman Peter Harrop, agriculture’s forthcoming shift to both electrification and robotics is a result of three overarching trends: looming labor shortages; the need for precision farming; and advancements in automation.

First, Harrop talked about how labor shortages in places such as the United Kingdom and Japan will require robots to be used to keep up with production demands. “The United Kingdom is seriously moving into more labor shortages and more pressure for automation because of leaving the European Union,” he said. “[That makes] it much easier for high-skilled people to move to Britain and almost impossible for low-skilled people to move to Britain.”

Harrop compared that to what’s going on in Japan, where the average age of a farmer is about 70 years old. Young people’s “refusal” to live and farm in rural communities is a “serious problem,” Harrop said, but it’s not unique to Japan. Across the world, farmers are aging. Rather than following in their footsteps to the fields, younger generations are instead choosing to flock to cities.

Giants of the agricultural [industry], such as John Deere, are saying that electric power gives far better controllability and opportunities for automation and precision seeding and other things like that.

To help address the void being created by demographic trends, Harrop highlighted a number of enabling technologies that will help the agriculture industry continue to feed a growing world population, despite a lack of willing or available human workers. Those technology advancements pertain to powertrains, vectored traction, battery systems, supercapacitors, power electronics, solar body work and transportable zero-emission microgrids.

However, one technology looms above the rest: electrification.

“Giants of the agricultural [industry], such as John Deere, are saying that electric power gives far better controllability and opportunities for automation and precision seeding and other things like that,” Harrop said. “[Those technologies are] not going to be possible without the precision of electric vehicles.”

Whereas the IDTechEx report includes and analyzes dozens of cutting-edge technologies, prototypes and farm vehicles, Harrop touched on these companies during the webcast:

Small Robot Company: The England-based technology company is developing three farmbots — Tom, Dick and Harry — that autonomously will plant, feed and weed arable crops. More so, they’ll be controlled and directed by Wilma, the artificial intelligent (AI) “brain” behind the operation that’s capable of recording exact locations of each plant.

Kubota: The Japanese company unveiled its so-called “dream tractor” in January. Although it isn’t for sale yet, the fully autonomous X Tractor prototype has four tread-covered wheels individually equipped with in-wheel motors, giving the tractor both an acute turning radius and the ability to travel over various terrains, including rice paddies.

eWind: Based in Oregon, eWind has developed an airborne wind energy system (AWES) called Tethered Energy Device (TED). According to the company, TED will produce enough energy to power an entire farming operation (or roughly five American homes) on a device small enough to fit in the back of a pickup truck. The technology is still in the testing stages; however, Harrop said that it’s “a company that’s specializing in the needs of farmers.”

Kubota dream tractor

(Image: Kubota’s “dream tractor” prototype)

Harrop says that smaller electric farm vehicles, including pure electric and plug-in hybrid options, will enter mainstream markets before larger vehicles, because smaller pieces of equipment can more easily achieve parity with existing diesel options.

In places such as California that have stricter limitations on diesel emissions, however, electric farm vehicles might replace diesel-burning equipment regardless of price points in order to stay compliant with local environmental and health regulations.

Whereas many enabling technologies and agtech vehicles that Harrop covered in his webcast will be put into practice within the next decade, he stressed that the industry’s all-electric, fully automated robotic future remains decades away. Although he said that agtech’s leap to automation will be easier than the commercial car industry’s leap to automation, for example, he said it will still be “very expensive.”

“But later,” he continued, “it’s going to come down in price. It really is not going to be widely possible to do full automation, full robotics, until about 2030.”

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Giants of the agricultural [industry], such as John Deere, are saying that electric power gives far better controllability and opportunities for automation and precision seeding and other things like that.

Electric Vehicles

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Small Robot Company is developing three farmbots — Tom, Dick and Harry — that will autonomously plant, feed and weed arable crops.

Inside Eastman’s moonshot goal for endlessly circular plastics
Joel Makower
Mon, 05/11/2020 – 00:44

At first glance, the sprawling industrial site, covering roughly 900 acres in Kingsport, Tennessee, appears to be just another chemical manufacturing facility. There are hundreds of buildings and countless miles of pipes, conveyors, distillers, cooling towers, valves, pumps, compressors and controls. It doesn’t exactly look or feel particularly noteworthy.

But something extraordinary is going on at this Eastman chemical plant: two breakthrough processes to turn waste plastics of all kinds back into new plastics, continuously, with no loss of quality.

Last year, the company announced two major initiatives:

  • Carbon renewal technology, or CRT, which breaks down waste plastic feedstocks to the molecular level before using them as building blocks to produce a wide range of materials and packaging. The company claims this enables waste plastics to be recycled an infinite number of times without degradation of quality.
  • Polyester renewal technology, or PRT, which involves taking waste polyesters from landfills and other waste streams and transforming them back into a raw material that the company claims is indistinguishable from polyester produced from fossil-fuel feedstocks.

With both CRT and PRT, hard-to-recycle plastics can be recycled an infinite number of times, says Eastman, creating products that can claim high levels of certified recycled content — a true closed loop.

Both technologies are or will be hitting the market, so it is too soon to call them a success. Still, they represent a story about a legacy industrial company seeking to reinvent itself by simultaneously addressing the climate crisis, the scourge of plastic waste and the need to accelerate resource efficiency to meet the material needs of 10 billion people by mid-century.

If it works, this old-line corporate icon could find itself a leading light in the emerging circular economy.

Chemical reaction

Eastman, celebrating its centennial this year, was founded by George Eastman, the entrepreneur who, in the late 1880s, started the Eastman Kodak Company. (“Kodak” was a made-up word he appended to his last name.) Along the way, he nearly singlehandedly democratized photography (and spawned countless “Kodak moments”) through the company’s production of cameras, film, processing chemicals and related goods and services.

In 1920, in the wake of World War I, Eastman’s company was suffering a scarcity of raw materials, including photographic paper, optical glass and gelatin, and many chemicals — such as methanol, acetic acid and acetone — needed to produce and process film stock and prints. He determined that ensuring his company’s future would require self-reliance. He set out to find a suitable location for a Kodak-owned and operated chemical production facility.

If it works, this old-line corporate icon could find itself a leading light in the emerging circular economy.

Kingsport proved to be the right spot, situated in what is known as the Mountain Empire, which spans a portion of southwest Virginia and the mountainous counties in northeastern Tennessee. It had ready access to two key commodities vital to Kodak: wood fiber to make cellulose, the key material in photographic film; and coal, which powered its boilers to make steam and electricity, and later would be used to produce synthetic gas — syngas — to create the acetyl chemicals needed to make films, plastics and textiles.

From those two feedstocks, Eastman Chemical, a subsidiary of Kodak, grew to become an economic powerhouse in the Mountain Empire, expanding into its own empire of more than 50 manufacturing sites worldwide.

The company adapted to, and prospered from, the changing times. By the late 1920s, for example, the demand for home movie film and the growing need for X-ray film led Eastman Chemical to produce acetic anhydride, the base material for photographic emulsions. In the 1930s, the company turned to producing cellulose acetate to make textile fibers. The automobile boom of the 1940s and 1950s led Eastman to produce chemicals and materials critical to automotive design and production. During World War II, the Kingsport site infamously was used to make RDX, a powerful explosive — a million and a half pounds a day, at its peak. By the end of World War II, Eastman was managing a project to produce enriched uranium for the Manhattan Project. After the war, polyester fibers for textiles and other products became, and remain, a significant line of business.

George Eastman didn’t live to see much of the success he catalyzed. He died in 1932 by suicide, a single bullet to the heart.

In the 1990s, Kodak’s photography business darkened with the advent of digital cameras — the company was slow to adapt and got run over by more nimble competitors — and the company spun off its chemical division in 1994 to help pay down debt. (Eastman, the company, has dropped “chemical” from its branding, although not from its legally incorporated name.)

Eastman’s latest innovations, as well as its pivot to make sustainability core to its strategy, has been energized by its current chairman and CEO, Mark Costa. A former management consultant — Eastman was one of his clients — and brandishing degrees from both Berkeley and Harvard, Costa joined the company in 2006 to lead strategy, marketing and business development before ascending to the corner office in 2014. Under his leadership, the company has accelerated its transformation from chemicals to specialty materials.

“When we came out of the great recession in 2009 and were starting to think about our innovation portfolio, we were already thinking about sustainability in a very serious way,” Costa told me over lunch in his office in early March, with a sweeping view of a nature preserve and park deeded by Eastman to the city of Kingsport. “We knew that the circular economy and being a lot more efficient with carbon was a good idea.”

Eastman CEO Mark Costa

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Mark Costa, Courtesy of Eastman

Eastman CEO Mark Costa (Photo courtesy of Eastman)

“This idea of circularity isn’t new to us,” he added. “In all of our innovation — I had the responsibility for the innovation portfolio since 2009 — we required everything that we did be tied to a sustainability driver. All the way back then.”

Eastman’s two new “renewal” technologies are, to some degree, natural extensions of products and services that have long been part of Eastman’s toolkit. Now, repurposed and modified for an era of sustainability and circularity, they position the company to address one of the holy grails of the circular economy: turning waste plastic back into new plastic with the same performance and quality characteristics.

Plastic to plastic

The rising attention being paid to the global plastic waste problem has illuminated many serious challenges of collecting, sorting and recycling plastic back into new plastic in a continuously closed loop. 

For starters, only a couple kinds of plastics are being regularly collected and recycled, based on available infrastructure and market demand: PET and HDPE — Nos. 1 and 2, respectively, in the SPI resin identification codes developed in the late 1980s by the Society of the Plastics Industry. Most of the others — SPI Nos. 3 through 7 — are technically possible to recycle but lack both infrastructure and markets in most places.

Worst of all is the growing mountain of packaging that is multi-material — layers upon layers of mixed polymers, papers, laminates and foils — in the form of juice boxes, ketchup packets, toothpaste tubes and countless other things. These Franken-materials are a nonstarter for most modern recycling systems. The best one can hope is that they be downcycled into some durable product — say, artificial turf, plastic furniture or an automobile fan blade — which itself will wear out eventually, ending up as nonrecyclable waste in a landfill. But only a tiny fraction of these plastics ever escape landfills as their final resting place.

Eastman’s ability to turn all plastics back into their constituent molecules is a potential game-changer.

Sorting all these plastics is another issue. Even if plastics 3 through 7 were readily recyclable, keeping various polymer types separate from one another is a highly labor-intensive task, assuming the infrastructure was even there to handle it. And given the historically low price of oil, even before the recent market crash, recycled plastic remains uncompetitive to virgin for many applications. Those petrochemicals are just too darn cheap.

So, Eastman’s ability to turn all waste plastics back into their constituent molecules and back into productive use is a potential game-changer.

A primer

There are two basic ways to recycle plastics: mechanical and chemical. The former is most commonly used with soda bottles (PET) and milk jugs (HDPE) — plastics 1 and 2, respectively. It involves grinding, washing, separating, drying, regranulating and compounding waste plastic to create new raw materials.

Mechanical recycling can be cost-effective but has limits and disadvantages: The process is heat-intensive — and, therefore, energy- and carbon-intensive — and produces air pollutants. Contamination by food and other foreign materials is another problem that literally gums up the works. And after plastic has been mechanically recycled once, it’s rarely suitable for another round of recycling. This means that the recycled material eventually will end up in waste streams.

And there are physical limits to how recycled plastics produced through mechanical methods can be used in manufacturing. “You can only get up to maybe 50 percent recycled content in a bottle with mechanical, where you really start getting a pretty ugly product and all kinds of other performance issues,” Costa said. “So, there’s going to be sort of a quality performance limitation.”

An alternative is chemical recycling, a technology that has been around since the 1950s but has become the focus of growing investment and innovation as the circular economy has gained steam. Plastic makers including BP and Dow, and consumer packaged goods companies such as Coca-Cola, Danone and Unilever, are testing or investing tens of millions of dollars in the technology, according to the Wall Street Journal.

In chemical recycling, depolymerization breaks down plastics into their raw materials for conversion back into new polymers. Pyrolysis — heating of an organic material in the absence of oxygen — can turn mixed plastic waste into naphtha, which can be transformed back into petrochemicals and plastics.

With only about 9 percent of the more than 400 million tons of plastic waste produced globally each year currently being recycled, according to U.N. Environment, that leaves the other 90 percent or so as potential feedstock. 

There’s big potential here, according to a 2019 report from the American Chemistry Council. It found that if widely adopted, chemical recycling — which it refers to as “advanced plastic recycling and recovery” — could create nearly 40,000 direct and indirect U.S. jobs, as much as $2.2 billion in annual payroll and $9.9 billion in direct and indirect economic output. 

Calling on the carpet

Eastman’s carbon renewal and polyester renewal technologies are forms of chemical recycling. But they aren’t intended simply to displace mechanical recycling. For PET and HDPE plastics, mechanical recycling already is reasonably efficient, creating recycled materials streams that have proven cost-competitive in many markets.

“We don’t want to compete with that,” Costa said. “Frankly, the value of it is too high. From a sustainability point of view, you shouldn’t touch it.”

Eastman's two new plastic recycling technologies

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Courtesy of Eastman

Besides, there’s a much bigger opportunity. Eastman’s Polyester Renewal Technology is a chemical recycling process specifically for polyester waste, which produces virgin-like materials, even from colored PET, according to the company. The process involves using glycolysis — the breakdown of PET by ethylene glycol — to disassemble waste PET into its fundamental building blocks. Those building blocks then can be reassembled to produce new polyesters with high levels of recycled content.

In its search for waste plastics, Eastman easily can forgo tapping into recycling markets for plastic water and soda bottles. There are plenty of other sources of waste polyester — from carpets, for example.

In one recent initiative, the company partnered with Circular Polymers, a company that reclaims post-consumer products for recycling. Circular Polymers is collecting and densifying the PET it retrieves from waste carpeting. It then converts the PET waste into pellets, which are shipped by railroad from its plant in California to Eastman in Tennessee. Eastman uses its CRT process to turn the pellets into new materials with certified recycled content. Those materials end up in textiles, packaging for cosmetics and personal care products, and eyeglass frames.

Costa says Eastman could divert millions of pounds of carpeting a year through partnerships such as this, although that’s still a mere fraction of the more than 3 billion pounds of carpet sent to landfills in 2018, just in the United States, according to Carpet America Recovery Effort, an industry group.

And it’s not just polyester. Eastman sees potentially unlimited opportunity in all the other types of plastic waste — especially the stuff that’s hard to recycle, from a cost and logistics perspective, including those dreaded Franken-materials. The company’s goal is to extract the value of the carbon molecules contained in these waste materials and put them back into productive use as like-new plastics.

Said Costa: “If there’s a way to bring carbon back in through products that’s better than the fossil-fuel approach of the linear economy, we should do that, right? I mean, this isn’t complicated.”

Fashion forward

Eastman’s goal is to substitute its “carbon renewal” materials for their virgin counterparts wherever they are economically viable. Beyond pure economics, Costa described to me his three criteria for determining when it makes sense, from both a business and ecological perspective, to recycle waste plastic. First, the waste has to go back into products — not be incinerated or burned to make energy. Second, the carbon footprint of the recycled material must be better than its fossil-fuel equivalent, based on life-cycle analysis. And third, “Consumers shouldn’t give up a lot in their quality of life.” That is, few if any tradeoffs in price or performance.

So far, CRT and PRT processes are finding their way into several of Eastman’s many brands of polymers, including Trēva, a cellulose-based thermoplastic made from trees, used in automotive, packaging and electronics applications; CDA, a bio-derived material, used in injection-molded applications, such as ophthalmic frames and tool handles; Cristal, designed and engineered specifically for high-end cosmetics packaging applications; and Tritan, a durable clear plastic used to make Camelbak and Nalgene water bottles, and Rubbermaid food storage containers.

And then there is Naia, a fiber made from certified sustainably managed pine and eucalyptus plantations, widely used in the fashion industry. It is essentially cellulose acetate, the same material used in photographic film, being made by Eastman in Kingsport for about 100 years. In this case, it is spun into a yarn that is used to make fabric.

Naia is made in a closed-loop process, in which chemical inputs — acetic acid and acetone — are continuously recycled.

Naia is made in a closed-loop process, in which chemical inputs — acetic acid and acetone — continuously are recycled. According to company marketing materials, it compares favorably to silk, cotton, viscose filaments and polyester in terms of environmental impacts — water usage, climate emissions, ecosystem disruption — and feel. Its yarn can be knitted or woven and easily blended with other fibers. Garments made with Naia are easy to home-launder compared with many fashion-forward fabrics, which require dry cleaning, says Eastman. The company claims that Naia produces no microfibers when washed.

There’s one big challenge from a sustainability perspective, however: The fossil fuels used as a feedstock to produce the syngas to make one of the principal ingredients for Naia.

Eastman's Naia textile yarn for fashion

Eastman’s Naia textile yarn for fashion. (Photo courtesy of Eastman)

Eastman is developing the technology to eliminate the fossil fuels from Naia production, replacing them with gases derived from breaking down waste plastics, a process called reforming, a carbon renewal technology. The resulting product, Naia Renew, is being launched this fall. The company describes it as “a cellulosic yarn sourced from 100 percent circular content, produced from 60 percent certified wood fibers and 40 percent recycle waste plastics.”

Used textiles are another potential feedstock for Naia, creating a virtuous cycle that turns no-longer-wearable garments back into new ones. Eastman is in discussions with leading fashion brands about the potential of take-back programs in the future, Steve Crawford, the company’s chief technology and sustainability officer, told me during my visit. “They could collect the garments, send them to us, and we could make them back into the same fiber to make new garments.”

Mining landfills?

There’s yet another disruptive opportunity here: mining landfills to cull plastic waste to be “renewed” through Eastman’s processes.

The company says it is working closely with waste management companies to evaluate how to create the availability of such feedstock. “As part of our work, there’s a lot of focus on how we partner, how we collaborate with the parties in this space,” explained Cathy Combs, Eastman’s director of sustainability. “How do we create an infrastructure that will be able to supply chemical recycling?” 

“We’ve demonstrated that the new Eastman recycling technologies are capable of utilizing a broad array of waste plastics, including plastics that aren’t currently utilized in mechanical recycling,” Crawford added. “But we’ll need to partner with key players in both the waste collection and waste management systems, and key end-use value chains. We also need brands to help create demand for these materials to become valuable sources of feedstocks for these new technologies.”

Of course, all of this innovation is taking place amid a pandemic, not to mention what appears to be a global recession. The textiles sector, like most others, has taken a hit from COVID-19, with a dramatic slowdown in global retail sales resulting in global supply-chain disruption, furloughs throughout the value chain and mounting inventories and liquidity challenges. But industry participants and influencers believe the textiles industry will emerge with an increased emphasis on sustainability as the industry rebuilds, said Jon Woods, Eastman’s general manager of textiles and nonwovens.

Mark Costa, for his part, remains bullish on the company’s future, including on the impact the company could have both locally and globally — particularly in the economic development that come from mining plastics from local waste streams.

“I think there’s going to be real economic opportunity, and a lot of small-business job creation — which is great for this country as well as in Europe — who are going to jump into this,” he told me. “I mean, the waste management guys will do it, and they’ll be big and at scale. But there’s also a lot of opportunity for local, small businesses to work with municipalities on how to do that. And just like we saw with carpet and the way they densified it, people are going to get creative. Once there’s policy and economic incentive, that’s what America does great.”

There’s going to be real economic opportunity, and a lot of small-business job creation — which is great for this country as well as in Europe — who are going to jump into this.

Costa believes that technologies such as CRT and PRT can give new life to plastics recycling if they can dramatically improve its economics. “The aluminum guys would have never succeeded if they could only take 10 to 20 percent of the aluminum and had to throw away 80 percent. I doubt you’d have high aluminum recycling rates because you just couldn’t justify the effort.”

And, he added, some of Eastman’s sustainability and circular ingenuity just might rub off on the beleaguered chemical sector.

“Everyone wants to focus on the things that are negative about the chemical industry, and we have lots of room for improvement. So, how do we collaborate to take this seriously, which I think the industry very much does right now, and solve the next set of solutions to make the environment better at the same time as you’re improving quality of life? That’s our ultimate goal. That’s what we get up every day trying to focus on doing.”

I invite you to follow me on Twitter, subscribe to my Monday morning newsletter, GreenBuzz, and listen to GreenBiz 350, my weekly podcast, co-hosted with Heather Clancy.

Pull Quote
If it works, this old-line corporate icon could find itself a leading light in the emerging circular economy.
Eastman’s ability to turn all plastics back into their constituent molecules is a potential game-changer.
Naia is made in a closed-loop process, in which chemical inputs — acetic acid and acetone — are continuously recycled.
There’s going to be real economic opportunity, and a lot of small-business job creation — which is great for this country as well as in Europe — who are going to jump into this.

Plastic Waste

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An aerial view of Eastman's Kingsport, Tennessee headquarters facility. Courtesy, Eastman Chemical

An aerial view of Eastman’s Kingsport, Tennessee headquarters facility.

Courtesy Eastman

How online ordering could cut food waste
Jim Giles
Fri, 05/08/2020 – 02:50

This article was adapted from the GreenBiz Food Weekly newsletter. Sign up here to receive your own free subscription.

“It feels like we’re peeling an onion.”

That’s what sustainability veteran Dave Stangis said when I asked him about the long-term changes being wrought by coronavirus. We peel back a layer to reveal one impact, only to realize there’s another beneath. “Some we may not know for months,” he added.

This is the third and final part of our onion-peeling exercise. We’ve already seen how the pandemic may decentralize the food system and increase emissions from last-mile deliveries. This week, we’ll look at some potentially good news from the intersection of online delivery and food waste.

Any good news on waste is welcome, because the situation is insane. Wasted food is responsible for 6 percent of global greenhouse gas emissions — that’s three times the contribution of aviation and more than any country except China and the United States.

Around a third of that waste comes at home, which is a head-scratcher. Why are people paying for something, only to throw so much of it away? There are a host of reasons: We buy too much, forget stuff at the back of the fridge or trash perfectly edible food because it looks less than perfect. A lot of it comes down to bad habits, which is where the pandemic comes in.

Until now, food shopping seemed immune to the rise of online retail. Now Instacart is in the process of hiring more than half a million additional shoppers and a third of all consumers say they are using online grocery delivery more often.

We tend to make smaller but more frequent orders when buying online. This bumps up emissions from delivery but the total emissions associated with food consumed at home can fall by as much as 41 percent.

This shift is a major opportunity, because ordering online can lead to big reductions in wasted food. One reason is that we tend to make smaller but more frequent orders when buying online. This bumps up emissions from delivery but cuts waste to such an extent that total emissions associated with food consumed at home can fall by as much as 41 percent.

Ordering pre-prepared meal kits also leads to less waste. This can seem counterintuitive, as meal kits are often criticized for excessive packaging. (Do the parmesan shavings really need their own plastic container?) The packaging is indeed an issue, but meal kits lead to less waste and this more than cancels out the greenhouse gases associated with the extra plastic. A new analysis of kits from one brand — HelloFresh — showed emission savings of 21 percent. One earlier study put the figure at 33 percent.

We might save even more if we’re prepared to wait a few days. Last week, we looked at how advanced ordering allows delivery companies to group deliveries and reduce transport emissions. It also cuts waste at the store. Ordering ahead “helps retailers forecast the product they’ll need, leading to reduced excess and wasted food at retail,” Jackie Suggitt of ReFED, a food waste non-profit, told me. “Day-of online ordering, on the other hand, may lead to more waste at retail.”

The potential here is significant. What I’d love to see next is the delivery companies get involved in the debate. They have some data we need to check whether these savings are being made. They also can help consumers do a better job of planning meals, which is a critical waste-reduction strategy. (I reached out to the companies for comment: Walmart said, not unreasonably, that their e-commerce team was too busy to respond; Instacart and Amazon did not reply.)

Pull Quote
We tend to make smaller but more frequent orders when buying online. This bumps up emissions from delivery but the total emissions associated with food consumed at home can fall by as much as 41 percent.

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Episode 219: Water, workplaces and well-being
Heather Clancy
Fri, 05/08/2020 – 02:33

Week in Review

Commentary on this week’s news highlights begins at 4:35.

  1. Why global engagement is essential to sustainable supply chains
  2. Sustainable infrastructure investments can aid the post-COVID recovery
  3. Two ways P&G is working toward its packaging goals

Features

Intel’s water world (16:25)

In 2017, semiconductor and technology manufacturing giant Intel committed to restoring 100 percent of its global water use. This year on Earth Day, the company said it had reached a milestone of 1 billion gallons restored. Todd Brady, director of global public affairs and sustainability, discusses the projects that got it there. 

Workplaces and well-being (31:15)

Last week, three respected real estate companies — Cushman & Wakefield, Hines and Delos — announced an initiative intended to help companies begin the process of reconfiguring their offices to protect employees’ health as they return to work. Here to discuss the project is Paul Scialla, founder and CEO of Delos, which founded both the International Well Building Institute and the Well Building Standard.

On the fringe … consumers (40:45)

A highlight from our “Seeing into the Future” webcast, featuring sustainability marketing guru Suzanne Shelton.

*This episode was sponsored by Villanova University. 

*Music in this episode by Lee Rosevere: “Waiting for the Moment That Never Comes,” “Knowing the Truth,” “Southside,” “Start the Day,” “Thinking It Over,” “Curiosity” and “Introducing the Pre-Roll”

Virtual Conversations

Mark your calendar for these upcoming GreenBiz webcasts. Can’t join live? All of these events also will be available on demand.

Moving to a regenerative food supply. Pioneering companies, NGOs and policymakers will discuss tracking technologies, regenerative agriculture projects and new collaborations that could make food systems more sustainable. Sign up here for the session at 1 p.m. EDT May 12.

In conversation with John Elkington. Don’t miss this one-on-one interview featuring GreenBiz Executive Editor Joel Makower and well-respected sustainability consultant John Elkington, who recently published his 20th book, “Green Swans: The Coming Boom in Regenerative Capitalism.” Register for the live event at 1 p.m. EDT May 14.

Circularity goes digital. You don’t have to wait until August for three great discussions on the circular economy. We’ll debate “Reusable Packaging in the Age of Contagion,” “Can Recycled Plastic Survive Low Oil Prices” and “Repair, Resilience and Customer Engagement.” Register here for our half-day event starting at 1 p.m. EDT May 18.

Scaling municipal fleets. Experts from the Port Authority of New York and New Jersey, ChargePoint, Smart City Columbus and the city of Oakland, California share tips at 1 p.m. EDT May 26.  

This is climate tech. Join respected venture capitalists Nancy Pfund (DBL Partners), Andrew Beebe (Obvious Ventures) and Andrew Chung (1955 Capital) for a discussion at 1 p.m. EDT May 28 about compelling solutions and startups that address the climate crisis — and how big companies can play a role in scaling them.

Resources Galore

The State of Green Business 2020. Our 13th annual analysis of key metrics and trends for the year ahead published here.

Do we have a newsletter for you! We produce six weekly newsletters: GreenBuzz by Executive Editor Joel Makower (Monday); Transport Weekly by Senior Writer and Analyst Katie Fehrenbacher (Tuesday); VERGE Weekly by Executive Director Shana Rappaport and Editorial Director Heather Clancy (Wednesday); Energy Weekly by Senior Energy Analyst Sarah Golden (Thursday); Food Weekly by Carbon and Food Analyst Jim Giles (Thursday); and Circular Weekly by Director and Senior Analyst Lauren Phipps (Friday). You must subscribe to each newsletter in order to receive it. Please visit this page to choose which you want to receive.

The GreenBiz Intelligence Panel is the survey body we poll regularly throughout the year on key trends and developments in sustainability. To become part of the panel, click here. Enrolling is free and should take two minutes.

Stay connected

To make sure you don’t miss the newest episodes of GreenBiz 350, subscribe on iTunes. Have a question or suggestion for a future segment? E-mail us at [email protected].

Contributors

COVID-19

Collective Insight

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Now is a great time to optimize energy in buildings. You’d think.
Sarah Golden
Fri, 05/08/2020 – 00:43

Despite being mostly empty, commercial real estate energy bills are mostly unchanged. 

Commercial buildings in the United Kingdom have reduced energy consumption only by 16 percent on average during the pandemic, according to analysis from Carbon Intelligence. The worst-performing buildings are only achieving a 3 percent reduction, according to the analysis. Anecdotal evidence suggests similar numbers in the United States. 

What a waste of time and money. 

With occupancy so low and energy bills so high, there may never have been a more persuasive argument — or a better opportunity — to optimize buildings. You’d think. 

The (missed) opportunity for capital upgrades 

With buildings empty, service providers hungry for work and capital cheap, it seems a great time to bring buildings into the 21st century. 

But as we’re still grasping the extent of the economic fallout, commercial real estate owners are cautious.

“The financial smoke will have to clear before many people will put project capital at risk there,” explained Steve Gossett Jr., operating partner at Generate Capital, via email. “Most landlords are likely to husband cash rather than invest in their assets right now because they aren’t sure how functional the capital markets will be for real estate in the near future or how stable their tenants are.”

In the short term, landlords are worried struggling companies will renegotiate leases or shift to a work-from-home model, requiring less office space writ large. The result: Commercial office spaces could become stranded assets, subject to write-downs and operating losses. 

Being able to have this time to find these deeper problems and being able to address them will have long-term savings, even when the building becomes occupied again.

 

“In the past, before COVID, we’d say, ‘Oh, if you do these improvements you can increase your rental rates and you can have higher-quality tenants,’” said Marta Schantz, senior vice president of the Urban Land Institute’s Greenprint, an alliance of real estate owners and investors. “But now that case sounds tone-deaf to the market. If folks are worried about people even being able to pay their rent, they’re less focused on increasing rental rates and more on just getting rent.”

To say the least, this is a missed opportunity. About half of all buildings were built before 1980, and many are old, dumb and wasteful. The U.S. building stock accounts for about 40 percent of the emissions. And the technology exists to change that; buildings could be optimized and transformed to be a resource for the electric grid. Buildings could be cheaper to run, provide healthier spaces and become more resilient.

What building owners can do now: tighten operations 

As occupancy drops close to zero, some building operators have been surprised at how little change there has been in their energy consumption. 

“In general, some clients probably have been surprised to find that parasitic loads were higher than expected,” said Kyle Goehring, executive vice president of clean energy solutions at JLL, in an email. 

Simply reviewing systems and buildings presets can save energy and money, according to Schantz. 

For example, facility managers could reduce the run time of HVAC systems (responsible for about 40 percent of energy consumption), turn off lights in unoccupied spaces (lighting is responsible for 20 percent of energy use) or unplug appliances that aren’t needed (which account for about 33 percent of buildings’ energy use). For more specific ideas, check out Schantz’s blog or GreenBiz’s coverage.

Investment in critical infrastructure focused on digitization and efficiency will be absolutely key for economic recovery from the coronavirus pandemic and building resilience for the future.

These ideas, which are of course important, sound like no-brainers. As the world is turned upside down, I’m craving a cataclysmic change, not energy efficiency 101. 

But according to Schantz, the basics are revolutionary when facility managers never had time to examine operations in the before-time. 

“I very much hope that as folks go through their buildings they will also find some red flags that they didn’t know existed,” she said. “Being able to have this time to find these deeper problems and being able to address them will have long-term savings, even when the building becomes occupied again.”

The COVID-19 conundrum and financial solutions

As people make sense of these crazy times, I often hear big ideas about how we could transform the future. As we emerge from this crisis, what type of world do we want to create? Simultaneously, it seems we’re also paralyzed by constantly constricting opportunities. The vanishing jobs, capital and resources are shifting mindsets to survival, not reinvention. 

The good news is that the same financial mechanisms that allow building owners to upgrade without upfront costs are the same measures that would support broader economic development. This is especially true if the private sector partners with federal dollars to stretch capital further. 

“Investment in critical infrastructure focused on digitization and efficiency will be absolutely key for economic recovery from the coronavirus pandemic and building resilience for the future,” wrote Kevin Self, senior vice president of strategy, business development and government relations at Schneider Electric, in an email. 

Schneider Electric is one service organization providing financing structures to move along projects without upfront capital. These include energy-as-a-service and energy savings performance contracting. 

“Not only does digitization support resilience and sustainability, it saves on cost,” wrote Self. 

Schneider Electric is not the only organization offering financial solutions for energy upgrades. Service providers and startups have emerged in this space over the last 10 years, vying for companies’ potential energy savings. Other X-as-a-service organizations include Carbon Lighthouse, Sparkfund, Redaptive, Parity, Measurabl and Metrus

While many of these service providers are likely working hard to navigate these turbulent months, the role they play will be more important than ever as we rebuild our future.

This article is adapted from GreenBiz’s newsletter Energy Weekly, running Thursdays. Subscribe here.

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Being able to have this time to find these deeper problems and being able to address them will have long-term savings, even when the building becomes occupied again.
Investment in critical infrastructure focused on digitization and efficiency will be absolutely key for economic recovery from the coronavirus pandemic and building resilience for the future.

Energy Efficiency

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Two ways P&G is working toward its packaging goals
Deonna Anderson
Tue, 05/05/2020 – 11:33

Procter & Gamble’s Tide laundry detergent brand first introduced in January 2019 its “Eco-Box,” which has been compared to a wine box because of its design made from paperboard with a tap for dispensing, in an effort to reduce the plastic in its packaging. In mid-May, the Eco-Boxes are becoming available for other fabric care product lines, including Tide purclean, Downy, Gain and Dreft.

The initiatives are related to P&G’s current sustainability goals introduced in 2018, Ambition 2030, which include a commitment to make its packaging 100 percent recyclable or reusable by 2030. 

Each business unit within P&G has its own approach, and the Eco-Box was one way P&G’s Fabric Care division set out to meet its packaging goal. 

To be clear, the Eco-Box package still includes plastic — with the bag that holds the liquid detergent itself — but uses 60 percent less of it than the traditional packaging for P&G’s detergent brands.

I think perfection is [figuring] out the technologies to make this so that that bag and tap are also just easy curbside recycling.

“We’ve moved to a huge reduction in plastic, but [the plastic bag] not curbside-recyclable,” said Todd Cline, section head for P&G Fabric Care’s research and development team.

“I think perfection is [figuring] out the technologies to make this so that that bag and tap are also just easy curbside recycling,” he continued. “But there’s just not technologies for that yet today, to create bags to hold liquids that are puncture-resistant and will survive all of the shipping.”

In the meantime, P&G has a stopgap solution for collection and end-of-life processing in place. When the Tide Eco-Box launched, P&G partnered with TerraCycle to offer a recycling option for the inner bag. That program will continue, now including the full Eco-Box portfolio.

Cline said P&G uses life cycle assessment (LCA) to guide its work, “particularly as it comes to sustainability,” noting that from an LCA standpoint, P&G is making a huge reduction in its carbon footprint and amount of plastic that’s going to landfills through the Eco-Box packaging effort. 

“For us, that’s a technical trade-off at the start. But it’s one of those that if we waited for perfection … we would be sitting on this technology that could have a really great benefit from a sustainability standpoint, but holding it until it’s perfect,” Cline said, referring to the need to engage TerraCycle on collection. 

When the new Eco-Box detergents hit the market — the products will be available online only from major U.S. retailers — Cline said they will continue to test and iterate on the packaging to improve it.

All paper, no plastic

In a different part of the company, P&G Beauty, the packaging strategy is likewise taking another turn away from plastic: toward all-paper packaging. Indeed, these are just two recent examples of how P&G is working to meet its 2030 goal.

“This is just one of many innovations that P&G is working on to address the problem of plastic waste. This is an important step forward, and there is much more to come,” wrote Anitra Marsh, associate director of global sustainability and brand communications with P&G Beauty, by email.

Packaging for Secret and Old Sprice Deodorants

Two of those beauty and personal care brands are Old Spice and Secret, which will launch all-paper packaging for their aluminum-free deodorants this month at 500 Walmart stores in the U.S.

“As the largest retailer in the world partnering with the largest deodorant and antiperspirant brands in the U.S., we know this new paperboard package has the potential to have significant positive impact and lay the groundwork for even broader impact,” said Jason Kloster, senior buying manager for body care and grooming at Walmart, in a press release.

Marsh said P&G co-designed the all-paper deodorant packaging for its Secret and Old Spice products with consumers interested in cutting back on plastic waste. The package format contains 90 percent post-consumer recycled content and 10 percent new paper fibers. P&G developed package prototypes then shared the designs with consumers to see which options were “most appealing and easy to use.”

P&G isn’t the only company trying to eliminate plastic packaging for deodorant. Across the pond in London, a company called Wild raised $621,775 in seed funding for its refillable no-plastic deodorant packaging — made from durable aluminum and bamboo pulp — after a successful pilot launch in 2019.

Marsh said it took less than a year to bring P&G’s all-paper, plastic-free deodorant packaging to market. During the development process, the first package design did not pass a key recyclability test because the glue used for the label diminished the quality of the recycled paper pulp.

“We quickly went back to the drawing board to find another label glue that doesn’t impede recycling, and this is what we are using now in our Old Spice and Secret paper tube packages that are launching in May,” she said.

The deodorant hit the shelves May 1, and P&G will continue to evaluate the recyclability and repulpability of the packaging this summer, according to Marsh.

“We are aiming for 100 percent recyclability,” she said.

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I think perfection is [figuring] out the technologies to make this so that that bag and tap are also just easy curbside recycling.

Circular Packaging

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Tide, Dreft and Gain detergents in ecobox packaging

Tide, Dreft and Gain detergents in eco-box packaging

Sustainable infrastructure investments can aid the post-COVID recovery
Katherine Davisson
Tue, 05/05/2020 – 04:23

The economic fallout caused by the COVID-19 pandemic is forcing governments around the world to come up with policies for stimulating the global economy. Many are considering a tried-and-true method to boost economies in the short term and provide wide societal benefits in the long term: infrastructure investment.

Countries around the globe are set to launch the biggest round of infrastructure investment since the post-2008 financial crisis stimulus measures. It’s easy to see why: Demand is enormous.

The world is on-trend to face a $15 trillion gap between the infrastructure investment needed and the amount provided by 2040. On the supply side, when 1 percent of GDP is invested in infrastructure, economic output increases by about 0.4 percent in the same year and by 1.5 percent four years later.

Building in a new world

Before the shovels hit the dirt, it’s worth understanding how the world of 2020 is different from the world of 2008.

The infrastructure sector, long a laggard in embracing innovation, has worked hard to close the technological gap with other industries, and disruptors have transformed the way we design, build and manage infrastructure systems.

Attitudes toward the importance of addressing the climate crisis also have changed. For example, since 2008, the percentage of U.S. adults who say dealing with global climate change should be a top priority for the president and Congress has risen 14 points.

The ongoing coronavirus crisis has amplified the growing calls for resilient and adaptable infrastructure that effectively can operate during moments of crisis. Given this big opportunity, it is imperative that when the nations of the world look to embark on infrastructure investment programs, they strive to provide infrastructure that is sustainable, technologically advanced and resilient. It is the financially, environmentally and socially responsible thing to do for the world.

The economic benefits

Economically, the case for technologically advanced, resilient and sustainable infrastructure is clear. Low and middle-income countries alone could see a net benefit of $4.2 trillion from investing in infrastructure that prioritizes future-focused resiliency. That’s a $4 return for every $1 spent.

Low and middle-income countries alone could see a net benefit of $4.2 trillion from investing in infrastructure that prioritizes future-focused resiliency. That’s a $4 return for every $1 spent.

Integrating new technologies during the design, construction and operational phase of an infrastructure asset can significantly lower the cost while improving the functionality.

Artificial intelligence (AI), advanced data analytics, fintech, cloud computing, 5G, new materials, renewable energy technology and 3D printing are just a few innovations changing the global infrastructure landscape. When used, they can decrease project cost, compress construction time, reduce community disruption, minimize environmental harm and increase safety.

The benefits of using technology to plan, build and operate sustainable infrastructure systems have won over many decisionmakers, including in the United Kingdom, which is planning to implement a national digital twin program to connect all aspects of its infrastructure system onto one secure network.

Digital twins are computer models that combine AI, data analytics and machine learning to produce a digital version of a physical object. They help optimize the planning and operation of infrastructure by providing valuable insights in near-real-time. The U.K. expects the program to produce $8.70 billion in value a year from cost savings and efficiency gains from more sustainable management of the country’s infrastructure.

The environmental benefits

Dividends for the environment are also apparent. In energy infrastructure, long a major source of global carbon emissions, renewable technologies have made enormous strides. Wind and solar power are the most cost-effective modes of power generation across more than two-thirds of the world, including in the United States, China, Brazil and India.

But building infrastructure that encourages environmental stewardship isn’t merely limited to the green energy space. Infrastructure’s burgeoning technological revolution ensures that all aspects of infrastructure have the ability to contribute to ecological preservation.

The fast-growing Port of Brisbane on Australia’s east coast found itself in dire need of a solution for accommodating ever-growing container ships. In past years, the operators likely would have simply dredged the seafloor, an expensive and environmentally damaging exercise. They instead chose to use cloud-computing technology that assesses currents, tidal levels, wind patterns and other data to provide forecasts that allow the port to guide larger ships into the harbor depending on environmental conditions.

In use since 2017, this program has allowed the port to increase capacity without dredging, allowing for even larger ships to access the port, all while improving operational safety, planning ability, sustainability and future-readiness.

The societal benefits

Not to be forgotten are the benefits for our societies of building advanced, sustainable and resilient infrastructure. We must create social infrastructure, such as schools and hospitals, that use the latest innovations and techniques that can withstand the evolving challenges of our times, from natural disasters to pandemics.

For example, Nantucket Cottage Hospital, a small island hospital off the U.S. East Coast, is using the latest in technological and sustainability advances to create a medical facility that is adaptable to a variety of potential challenges in the coming years.

This infrastructure revolution will not happen on its own. Although innovation has flourished, the sector lags behind others in technological sophistication.

By focusing on environmental contingency planning, proper material use, emergency access to utility services and space adaptability, the hospital is protected against natural disasters and more long-term changes in environment and patients surges — crucial on an island whose population swells from 11,000 to 50,000 in the summertime.

Similarly, the developers of the Michael Tippet School in the London borough of Lambeth set sustainable innovation and resilience as guiding principles.

The project managers chose laminated timber-an increasingly popular building component as a primary construction material. Laminated timber is not only environmentally friendly compared to more carbon-intensive options such as concrete and steel, but it also can be assembled quickly and onsite, saving time and money. The result was an airy, adaptable space that easily could adjust to the changing requirements of this special needs school.

The backbone of the economy

This infrastructure revolution will not happen on its own. Although innovation has flourished, the sector lags behind others in technological sophistication. Existing innovations need to be more widely embraced, and new innovations need more nurturing — both areas where better cooperation with governments could yield positive results.

Community engagement also needs to be increased. Working with local stakeholders to deliver updates and providing opportunities to receive community feedback at all stages of an infrastructure project greatly will increase the chances of success. Projects also should focus on adaptability and replicability. Finding and disseminating successful models can eliminate trial and error periods that cost time and money.

It is often said the infrastructure is the backbone of the economy. We must ensure that that backbone is prepared to carry the weight of the future. Committing to using this opportunity to build advanced and resilient and sustainable will do just that.

This article originally was published by the World Economic Forum.

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Low and middle-income countries alone could see a net benefit of $4.2 trillion from investing in infrastructure that prioritizes future-focused resiliency. That’s a $4 return for every $1 spent.
This infrastructure revolution will not happen on its own. Although innovation has flourished, the sector lags behind others in technological sophistication.

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Port of Brisbane, Australia

The fast-growing Port of Brisbane on Australia’s east coast is using cloud-computing technology that assesses currents, tidal levels, wind patterns and other data to help guide larger ships into the harbor depending on environmental conditions.

Reducing global supply chain reliance on China won’t be easy
Manisha Mirchandani
Tue, 05/05/2020 – 00:30

This article originally appeared on Brink News.

The global spread of COVID-19 has sparked a clarion call to diversify supply chains away from China. But its singularity as a manufacturing location will make it hard to find alternatives. 

The outbreak of the coronavirus in Wuhan in January highlighted the pitfalls of China as the dominant global manufacturer of record. A delay in orders from Chinese factories was inevitable, given the scale of dependency on Wuhan alone. According to Dun & Bradstreet, a business intelligence company, 51,000 companies have one or more direct suppliers (PDF) in Wuhan, while 5 million companies have one or more tier-two suppliers in the region. The data suggests that it’s not just Southeast Asia that is dependent on Chinese suppliers — the problem appears to be much more widespread. 

Another survey by the Institute for Supply Management captures the magnitude of the outbreak for global manufacturers: More than half (57 percent) of companies are experiencing longer lead times for tier-1 China-sourced components, while 44 percent are simply unprepared to address continued supply disruptions from China. A case in point — technology giant Apple was one of the first major global companies to inform investors that it would miss Q1 revenue projections, in part due to delays in production by its China-based assembly plants. Of late, Apple had begun to move some production activities to Vietnam and India, but the company remains reliant on Chinese assembly plants to power its inventory.  

Manufacturers will need to navigate the imperative for greater supply chain resilience versus the attractiveness of China as a manufacturing location.

The spread of the coronavirus has made one thing clear — across the technology, automotive, electronics, pharmaceutical, medical equipment and consumer goods sectors, nearly all supply chains lead back to China as the preeminent global provider of intermediate materials and components. Recognizing the risk that a dependency on China poses to national industries, some governments are offering manufacturers incentives to exit China and ease the pain of diversification. Japan is putting $2.2 billion of its COVID-19 economic stimulus package into supporting its manufacturers shift production outside of China. There’s also mounting public pressure in some countries, such as the United States, to move essential production of pharmaceuticals and medical equipment out of China and closer to home.

Indeed, the pandemic might accelerate pre-existing plans to reduce supply chain dependency on China. Alongside rising labor costs, the ratcheting of trade tensions between China and the U.S. already had pushed brands to re-evaluate their “single-source” strategies. More than 80 percent of fashion brands said (PDF) they already planned to reduce sourcing from China, according to a July U.S. Fashion Industry Association report. Ensuring more resilience in supply chains is also likely to be a future expectation of investors, who will be looking at the ability of companies to hedge risk in the event of continued outbreaks or other “Black Swan” events. The chairman of Wistron, an iPhone assembler, told analysts that the company would locate 50 percent of its capacity outside of China by 2021. Simply put, the coronavirus has accelerated trends that have been evident for some time pertaining to China’s manufacturing stature.

But the reality is that a major manufacturing shift away from China is easier said than done. Even those companies that have diversified production are finding it hard to break free of China’s pervasive influence. Anticipating a rise in tariffs from the U.S.-China trade war, video game producer Nintendo had shifted the manufacturing of its blockbuster gaming console to Vietnam in 2019. Still, there is a shortage of Switch consoles in stores today due to a lack of essential components flowing to the company’s Vietnamese factories, as COVID-19 paused production by Chinese suppliers of component parts. 

U.S. businesses are still bullish on Chinese consumers, despite the impact of the virus.

The global technology and consumer electronics sectors are especially reliant on China’s infrastructure and specialized labor pool, neither of which will be easy to replicate. The Chinese government is already mobilizing resources to convince producers of China’s unique merits as a manufacturing location. Zhengzhou, within Henan Province, has appointed officials to support Apple’s partner Foxconn in mitigating the disruptions caused by the coronavirus, while the Ministry of Finance is increasing credit support to the manufacturing sector. Further, the Chinese government is likely to channel stimulus efforts to develop the country’s high-tech manufacturing infrastructure, moving away from its low-value manufacturing base and accelerating its vision for a technology-driven services economy.  

To this end, manufacturers are cognizant of the potential of China as a major consumer market for iPhones today and for advanced technologies such as robotics, autonomous vehicles and smart devices tomorrow. A flash poll by the Beijing-based U.S. Chamber of Commerce conducted in March shows that U.S. businesses are still bullish on Chinese consumers, despite the impact of the virus. The consumer sector had the most businesses reporting that they intend to maintain planned investments (46 percent), followed by the technology industry (43 percent). 

As manufacturers examine their supply chains for a post-COVID 19 world, the imperative for greater supply chain resilience versus the attractiveness of China as a manufacturing location and tech-forward consumer market is the defining tension that they will need to navigate. The outcome is unlikely to be a clean break from China for most.

Lower-value sectors, such as apparel, are most likely to expedite diversification. Indeed, many garment manufacturers already have diversified from China to the likes of Vietnam, Cambodia and Ethiopia on the basis of rising labor costs. It will be the higher-value technology and consumer electronics sectors — where the country’s manufacturing prowess and consumer potential is the most pronounced — that will find it hardest to turn away from China’s distinctive allure.

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Manufacturers will need to navigate the imperative for greater supply chain resilience versus the attractiveness of China as a manufacturing location.
U.S. businesses are still bullish on Chinese consumers, despite the impact of the virus.

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