New research from nearly 400 global sustainability experts show the biggest driver of corporate sustainability is the ability to integrate sustainability the core business strategy and provide proof of sustainability action.

To understand what drives stellar sustainability, Trellis data partner GlobeScan, along ERM, asked sustainability experts to name a company they consider a leader and to explain why. The most influential factor, cited by 26 percent of experts, was making sustainability a core business driver. Close behind, 21 percent emphasized demonstrating evidence of impacts and actions.

Other key elements include:

  • Driving sustainability across the supply chain (12 percent)
  • Showing unwavering commitment (11 percent)
  • Setting ambitious targets (11 percent)
  • Aligning purpose and values (9 percent)

What this means

These results show that companies are expected to double down on integration and evidence, not just as best practices, but as levers to activate and demonstrate the business value of sustainability. In today’s era of backlash, greenhushing and regulatory uncertainty, making sustainability a core business driver signals resilience and relevance, while also providing measurable impacts and actions builds trust and counters skepticism.

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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.​

With financial accountability for net-zero targets in the spotlight, the time has come for carbon pricing to reach its full catalytic potential. Done well, carbon pricing has the potential to rewrite incentives and motivate governments, corporations and individuals to be more responsible for their greenhouse gas (GHG) emissions.

The elegance of carbon pricing is that it provides a common denominator for GHG liabilities and investments. Carbon pricing enjoys broad, active promotion from decarbonization advocates across the political spectrum — more than some climate policies such as clean-energy or electric vehicle tax credits — and widespread use in the oil and gas sector. With fairly steady support over the years, carbon pricing has grown steadily since 2005, according to the World Bank’s annual roundup. Almost one-third of all global emissions are covered by a carbon price.

Moreover, the Science Based Targets initiative (SBTi) recently released its next discussion draft for the Corporate Net Zero Standard that included its first carbon pricing mechanism. Optional until 2035 and mandatory thereafter, the carbon price would mobilize more climate finance to address “ongoing” carbon emissions. 

Carbon pricing has had durable appeal, but could create a bigger impact in the years ahead. Here are three ways to unlock that potential and mobilize significant climate transition funding.

Tackle the terminology

Most of the World Bank’s report focuses on government policies for carbon pricing. In contrast, a report from the University of Oxford proposes that companies can use internal carbon pricing as a tool “for managing climate risk, incentivizing low-carbon investment, and preparing for emerging regulatory requirements.”

The difference and overlap between these two spheres are complex. One key to scaling outcomes from carbon pricing will be to resolve persistent confusion in the terminology, to disentangle the policy tools from voluntary measures and distinguish strong initiatives from weaker ones.

In practice, the term “carbon pricing” is used as a catch-all, because all carbon pricing initiatives share the goal of internalizing the external costs of GHG emissions. But a regional emissions trading scheme is vastly different from a corporate carbon price. In the simplest applications, carbon pricing is a symbolic and optional guidepost for budgeting decisions. In the strongest cases, it generates measurable financial flows from GHG emitters into decarbonization projects.

Words do matter and carbon pricing needs labels that distinguish one structure from the others. In the case of corporate carbon pricing, the persistent ambiguity lets companies blur the line between promises and progress. It risks letting businesses sound ambitious — claiming they are climate champions because they use carbon pricing — even if they have yet to invest a single dollar in solutions.

Apply it in value chains

Internal carbon pricing makes companies four times more likely to have climate transition plans in place, according to research from non-profit organization CDP. Big name brands and major buyers can use carbon pricing to underpin transition plans for their direct emissions as well as for their value chain climate initiatives, which are key to cracking the Scope 3 puzzle. 

Carbon pricing can create better understanding and alignment of goals up and down the value chain. Large buyers, for example, can establish a pathway for suppliers to slowly phase in carbon pricing, and offer pooled resources and practical implementation guidance. Retailers can use carbon pricing to create both carrots and sticks to accelerate investment in climate projects well up the value chain.

It’s important to make sure that value chain carbon pricing initiatives don’t simply tax and weaken supplier partners. To do this, buyers can use internal carbon pricing as a means to generate funding that, through procurement decisions and direct investment, flows into value chain partners’ decarbonization projects. Many exciting examples of net zero partnership between buyers and suppliers leave suppliers financially stronger and better positioned to serve all of their customers with low-carbon alternatives. 

Solve the interoperability puzzle

To scale up the adoption and success of both policy and corporate carbon pricing schemes, it will be necessary to get clearer on how they overlap. Frameworks such as the GHG Protocol, SBTi, the EU’s Carbon Border Adjustment Mechanism trade policy, the Corporate Sustainability Reporting Directive disclosure law and others will need a common yardstick to measure and value companies’ commitments to internal carbon pricing.

As University of Oxford professor Robert Eccles argued recently in Forbes, the next evolution of carbon pricing depends on prioritizing consistency and collaboration over competition. This applies equally to both policy carbon pricing and corporate carbon pricing schemes. “[The tool] can only function if built on reliable, comprehensive carbon accounting that assigns accountability appropriately while enabling market mechanisms to operate efficiently.”

Companies and governments have long used carbon pricing to create incentives for credible climate action, albeit inconsistently. Today’s renewed attention to net zero accountability offers an opportunity to make good on the full potential of carbon pricing. 

We should expect financial commitments to take center stage in corporate climate initiatives in coming years. To raise the accountability bar, advocates can coalesce around an expectation that companies disclose not just future net-zero intentions, but present day financial follow through.

That will require clearer alignment around the technical uncertainties of carbon pricing. Initiatives to sort out the terminology around carbon pricing, syndicate it across value chains and improve interoperability across corporate and policy schemes will help mobilize hundreds of billions of dollars in additional climate funding. With the right level of attention, carbon pricing may just be the highly practical—not flashy—tool needed to accelerate climate finance in the crucial years ahead.

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A review of recent sustainability reports suggests that real estate owners have entered a more mature phase of decarbonization. Large REITs and institutional landlords are beginning to move beyond portfolio-wide climate targets toward asset-level decarbonization planning, compliance modeling and capital planning.

“Many REITs and large owners have already set high-level goals,” wrote David Maguire, global head of product for sustainability solutions at the commercial real estate services and investments firm CBRE, in an email. “Now they’re moving into implementation, integrating decarbonization targets with capex planning at the asset level.”

New use cases

Investor expectations, occupier goals, disclosure requirements and green financing frameworks are helping push planning down to individual buildings, as metering technologies and building management software (BMS) grow more sophisticated. And owners are finding new ways to manage and analyze these larger and higher-quality data streams to drive action at the building level.

“The business case for each intervention is tied not just to risk management and protecting asset worth, but also to increasing net operating income and exit value,” Maguire said.

GRESB — the sustainability consultancy with a foundation that sets standards for evaluating and benchmarking real-asset performance and a corporation that administers the assessments — has also observed movement toward granularity. 

“Previously, managers drew their targets at the portfolio level and worked on implementing them asset by asset,” said Victor Fonseca, senior associate for real estate at GRESB. “Now we’re seeing demand from investors for this to be done bottom-up.”

The decarbonization plan for each asset should include an emissions-reduction strategy, time-bound milestones and financial grounding, he added. 

In 2020, with investors calling for more granularity, GRESB began collecting data at the asset level, rather than just the portfolio level. And in 2024 it began scoring asset-level data.

Investor demand, then regulation

Although regulation reinforces the push for asset-level data, the demand for deeper detail often starts elsewhere.

“Regulation is typically one step behind industry leaders,” said Fonseca. “Institutional investors drive regulation, and regulation drives the masses.” 

Those industry leaders include REITs looking to differentiate and attract investment — especially from sophisticated global investors with capital tied to long time horizons, who are attentive to long-term carbon risks and the physical threats of climate change.

Hundreds of individual asset plans

Ventas, an S&P 500 REIT with a diversified healthcare portfolio, has drafted individual asset-level decarbonization plans for the more than 900 properties within its operational control, outlining actions across energy efficiency, renewable energy and electrification and refrigerant management. 

Likewise, logistics real estate giant Prologis is developing asset-level decarbonization plans for each property in its operating portfolio. Its net-zero roadmaps coordinate capital upgrades with regulatory timelines, customer needs and projected utility decarbonization.

Vornado Realty Trust, an owner and manager of office and retail properties, finished designing a building decarbonization tool in 2024 for modeling capital energy efficiency projects.  

The company said it has institutionalized annual asset-level sustainability meetings, and its sustainability team is collaborating with each building’s engineering and facilities teams on energy-use reduction.

Asset-level decarbonization remains out of reach for some owners, said Maguire. While some have robust data management systems, many do not — and gaps are common. A portfolio may have superb mechanical asset condition records but little reliable tenant utility data, undermining asset-level modeling aspirations. 

Still, though not every owner is ready for building-by-building planning, the pull toward more fine-grained decarbonization planning and action is evident — and growing.

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This may have been the year when a somewhat wonky component of sustainability strategy — the environmental attribute certificate (EAC) — went mainstream. The past 12 months have seen certificates for low-emission products minted in multiple sectors, including cement, iron and carbon capture. In parallel, standard setters are close to giving companies greater leeway to use certificates in carbon accounting and target setting. 

“It definitely feels like this year something really clicked across the board — with buyers and suppliers, but also the standard setters seem to be getting it, the environmental NGOs, even governments,” said Kim Carnahan, CEO of the nonprofit Center for Green Market Activation (GMA).

The approach is designed to unlock investment in climate solutions by separating the environmental benefit of a product from the product itself. Take sustainable aviation fuel, an area where EACs are well established. There are companies that are willing to pay a premium to have employees travel on flights that burn fuel derived from used cooking oil and other sustainable sources, but it’s impractical for an airline to respond to that demand by changing the fuel mix on specific flights. 

EACs solve the impasse by allowing airlines to deploy sustainable fuel wherever available and to sell certificates for the associated emissions savings. Companies that purchase the certificates deduct the savings from their greenhouse gas inventories, and retire the certificates so that they cannot be used again. The Sustainable Aviation Buyers Alliance, a project co-managed by GMA, Environmental Defense Fund and RMI that counts Amazon and Visa as members, has used the approach to aggregate $550 million in demand for sustainable aviation fuel certificates since 2021.

Tech giants lead the way 

The approach is now proliferating, with the tech giants — which are trying to balance ambitious emissions goals with data center build out — leading the way. “A major driver behind EACs today is thinking about how we decarbonize data centers,” said Katherine Vaz Gomes, a decarbonization engineer at Carbon Direct, a consultancy. “There was a demand beforehand, but the hyperscalers have really accelerated the need to bring this to market.”

This May, for instance, Microsoft used guidelines Gomes helped write when it purchased EACs covering more than 620,000 tons of emission reductions from Sublime, a startup that has developed low-carbon cement. Microsoft will use Sublime’s product in its construction projects when possible, but most cement is used within a few hundred miles of where it is produced, and Sublime is still building its first commercial facility. Purchasing the certificates allows Microsoft to support the startup — and claim the associated emissions savings — even when it cannot use Sublime’s product.

Other data center projects will also involve EACs. In October, Meta said it would use ones purchased from Electra, a startup that is building a facility to produce low-carbon iron, to cover emissions associated with its infrastructure projects. The same month, Google announced plans to use EACs in a deal to fund technology to capture 90 percent of emissions from a new natural gas plant in Illinois. The electricity from the plant will be added to the grid that serves Google data centers in Illinois and Arkansas.

Renewable energy certificates (RECs), another established form of EAC, have long been used to help pay for clean energy projects. But a new EAC was required in this case: Unlike solar and wind, which produce zero emissions after construction, the certificate needed to account for the fact that not all the emissions will be captured, said Iain Kaplan, a partner at NorthBridge Group, the consultancy that developed the methodology for the certificate.

Broader coalitions

Carnahan and colleagues are working to ensure these individual projects are followed by broader industry-wide efforts. In September, GMA teamed up with fellow nonprofit RMI to launch the Sustainable Concrete Buyers Alliance; founding members include Amazon, Prologis and Meta. The following month, Nevoya, an electric freight company, was announced as the winner of a request for proposals designed to kickstart work on EACs for road transport. The center is also consulting on plans to create a buyers alliance for low-carbon chemicals.

This momentum will likely be accelerated if, as looks likely, two influential standard setters incorporate use of EACs into their guidelines. The Science Based Targets initiative is revising its net-zero framework and the latest draft allows companies to use EACs to hit targets — albeit only for specific types of Scope 3 emissions, a restriction that Carnahan would like to see loosened. Over at the Greenhouse Gas Protocol, a nonprofit that creates carbon accounting guidelines, a working group focused on market instruments is due to publish a white paper later this month that is expected to recommend integrating EACs into future rules.

In addition to the flurry of new activity, 2025 also saw a subtler shift around EACs. The term is broadly used and encompasses two market instruments that are often criticized: RECs, which are faulted for doing little to add new renewables to the grid, and voluntary carbon credits, which, in the worst cases, have been issued to projects with no climate benefit. Other EAC projects have on occasion suffered from guilt by association, but the most recent crop has largely been evaluated on their own merits.

This and other factors point to an increasingly important role for EACs in climate strategies. “We’ll see broader adoption beyond tech and data centers, with chemicals, steel and cement increasingly using EACs to support decarbonization,” said Greg Matlock at EY Americas, who tracks use of EACs in heavy industry. “In many instances, EACs will move from being an add-on to being a core part of how projects are structured.”

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Officially, Patagonia doesn’t have a chief sustainability officer. Reducing the environmental impact of the apparel company’s products is everyone’s job. 

But materials scientist Matt Dwyer became the company’s effective sustainability champion five years ago after realizing that his team’s job — picking the raw materials for Patagonia’s garments and gear — contributed 85 percent of the company’s greenhouse gas emissions. 

“For me as an engineer, as somebody who’s data-oriented, that’s when it became personal,” he told me in the latest episode of Climate Pioneers, our interview series with innovators and leaders shaping the corporate climate movement.

Now, as Patagonia’s vice president of global product footprint, Dwyer uses his engineering and innovation background to source lower-carbon alternatives across the company’s product portfolio. 

“One of the things you realize, whether it’s in this work or innovation, is that which lives everywhere actually kind of lives nowhere, and you need a group of focused, talented and capable folks to really push the hard work forward,” he told me.

That team spearheaded the publication of Patagonia’s first comprehensive environmental report in mid-November, which details the company’s struggle to deliver on its commitment to reach net zero by 2040. 

Patagonia prepared the analysis, in part, to prepare for potential mandatory reporting requirements. It’s also an educational tool for employees: “I was like, man, if I’m in my position reading through this and learning something new, then hopefully other people in our organization will pick it up and learn something about the company they work for, too.”

Meet Dwyer’s boss

Because materials represent Patagonia’s biggest chance to move the needle on emissions reductions, Dwyer’s team reports into the product development function, led by President Jenna Johnson, who got her start there in product line management.

“By sitting adjacent to or embedded within the product team, you have a far greater chance of selling the idea, getting designers to pick it up,” he said. “I think I’ve experienced in the past, just by virtue of other people’s experience, that when a sustainability team is buried in legal or HR or somewhere deep down in the supply chain, they’re often frustrated.”

Patagonia founder Yvon Chouinard, now 87, remains closely engaged, frequently dropping newspaper clippings on Dwyer’s desk to share ideas: “He always comes back to making sure we’re being really critical of ourselves and our own product, always making it better, always looking out into the world and saying, ‘Who’s doing it best today, and what can we learn from them?’ ”

Beyond its obsession with materials, Dwyer’s team — including environmental scientists, human rights experts and materials science chemists — works with every function to advance other strategies, such as Patagonia’s work on new financing models for funding electrification and other decarbonization initiatives within Patagonia’s supply chain. 

“We’re one unit, but we have our feet in four different buckets at any one time, and that could be business, that could be supply chain, that could be impact work or it could be products,” he said.

AI … not yet

Patagonia’s biggest challenge when pulling together its 130-page report was wrangling data from across the company’s information systems, which was a highly manual process. “I’m always a fan of doing it the hard way, just once, but building it to automate every time after that,” Dwyer said.

Patagonia used artificial intelligence to translate the publication into different languages for employees around the globe, but it hasn’t deeply committed to AI for its work. That innovation is more likely to come from service providers and partners in the form of better traceability and forecasting.    

Be an optimist

In a moment when many sustainability professionals are struggling to keep their work front-of-mind with colleagues and customers, Dwyer looks for the bright spots. His advice: Prioritize the work, even if your company is reluctant to brag about it publicly. 

“It’s always fine to be skeptical, it’s never fine to be cynical,” he said.

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The lifespan of a stroller is as fleeting as a childhood. Even if used by more than one family, strollers ultimately land in a dump. Recycling infrastructure doesn’t exist.

Bugaboo is an outlier in the industry for emphasizing durability, sustainable materials and circular business models. Such efforts support its net zero goal for 2035, which requires addressing the 91 percent of emissions that stem from materials.

“I’m still surprised about this, but sustainability is not top of mind for consumers when they’re buying a pram or stroller,” said Melanie Wijnands, head of ESG at Bugaboo, based in Amsterdam. “It’s not a message that we, as an industry, are pushing. I hope by talking about it more as a brand, we’re putting it a little bit more top of mind with consumers.”

Only 30 percent of stroller sales were “eco-friendly” models last year, according to one count.

Slimming the product footprint

The brand has gradually been slimming down the average carbon footprint of its products since 2019. It’s working toward a 47 percent reduction by 2026.
Bugaboo has been lowering the average carbon footprint of its products since 2019, aiming for a 47 percent reduction by 2026. Credit: Bugaboo 2024 impact report

Much work remains for the industry to zap waste and shrink its climate footprint. About 19 million strollers were sold globally from 2020 to 2023, according to 360 Research Reports, in a $10.5 billion market set to reach $16.6 billion in 2034. That’s a lot of virgin plastic, aluminum and polyester for landfills.

A handful of companies have 40 percent of stroller market share, including Good Baby International Holdings, Chicco and Graco. With roughly 1,000 employees, Bugaboo is among the smaller, premium players.

Circular models and durability

Bugaboo has measured early success in circularity. Its revenues from refurbished and leased products doubled from 2019 to 2024, while the average carbon dioxide footprint of its goods fell by 24 percent. Even as the certified B Corporation made 93 percent more products, its emissions rose by a comparatively low 38 percent.

Even as Bugaboo’s circular sales doubled, they only made up 1.4 percent of revenues in 2024.

Still, that’s something in a space that has left repair and recycling to informal networks of families, friends and charities. Parents also turn to independent stores or Facebook Marketplace. eBay lists 3,100 strollers at the moment. Newer secondhand marketplaces such as Rebel and GoodBuy Gear are growing.

Through a third party, Bugaboo refurbishes, cleans and re-lists 98 percent of products returned under warranty by European customers. Partners TinyMe in the Netherlands and StrollMe in Germany and Nordic countries manage stroller leases.

Bugaboo plans for its products to last the equivalent of 3.5 trips around the planet. That’s between four to 13 years of life for its $1,200 Fox 5 stroller.

Durable, modular and glue-free goods remain Bugaboo’s design focus for circularity. A bassinet basin doubles as a car seat. The $1,449 Kangaroo stroller can expand to fit a sibling. Parts such as brakes are available for older, popular models needing repair.

Bugaboo recently found that 25-year-old models were still being resold. “Our head of design, who’s been with us for 25 years, was geeking out,” Wijnands said.

‘Carbon anatomy’ of two strollers

Textiles, aluminum and plastic account for the greatest share of the CO2 footprint of Bugaboo strollers.
Textiles, aluminum and plastic account for the greatest share of the CO2 footprint of Bugaboo strollers. Credit: Bugaboo 2024 impact report

Materials

Adopting alternatives to carbon-intensive textiles, aluminum and plastics is core to Bugaboo’s near-term target, aproved by the Science-Based Targets initiative. The company plans to slash the average CO2 equivalent footprint of its products by 47 percent by 2026. (It has already met its Scope 1 and 2 goals.)

“To be completely honest, we’re not entirely sure how we can get there,” Wijnands said, noting that biobased plastic and recycled industrial aluminum have already helped. After introducing fabrics recycled from polyethylene terephthalate (PET) bottles last year, the company is looking into textile-to-textile recycled polyester.

Among other material concerns, chemicals safety resonates with Bugaboo customers. “Children sometimes lick the side of their stroller or get anything and everything into their mouth,” Wijnands said.

Bugaboo doesn’t use forever chemicals such as per- and polyfluoroalkyl substances (PFAS) or anti-bacterial coatings, a newer target of watchdog groups. Many of its textiles are OEKO-TEX certified.

Supply chain

Bugaboo has a unique level of control in owning its production facility in Xiamen, China, which is 25 percent powered by renewables. “We work really closely with our first-tier suppliers,” 80 percent of which are gradually getting rid of fossil fuels, she added.

Wijnands joined Bugaboo from consultancy Circle Economy, which publishes a semi-annual global circularity score. The only full-time sustainability staffer, she reports to CEO Adriaan Thierry. Wijnands works closely with Bugaboo’s lead engineer on carbon accounting, head of design and the product team.

“We’ve been really focusing on getting the carbon of our products down, but more and more, we’re also realizing that circularity is a promising route,” Wijnands said.

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Approximately 80 percent of companies with climate plans validated by the Science Based Targets initiative (SBTi) use absolute reduction goals as the guide for shrinking their carbon footprint.

A growing number of businesses, however, are adopting emissions intensity metrics to manage emissions from upstream and downstream activities outside their control — the so-called Scope 3 emissions category. 

Emissions intensity is expressed by measures that contextualize greenhouse gases in relation to other core business metrics such as units of production, employee headcount, square footage of factory space, revenue or profit.  

Enterprise software firm Salesforce, for example, adopted Scope 3 emissions intensity goals when it reset its science-based targets in early 2025. Its calculation will compare emissions with gross profit. Consumer products maker Procter & Gamble uses a Scope 3 metric that examines emissions per unit of production, while media company Netflix measures its Scope 3 emissions in relation to each $1 million of value added. 

Absolute reductions + emission intensity

Absolute emissions reductions are what’s needed to mitigate climate change, but sustainability professionals say emissions intensity is gaining credibility — especially among fast-growing companies or businesses in hard-to-abate sectors — as companies revisit their climate strategies amid shifting tax incentives, carbon accounting rules and geopolitical conditions.

“We often say that we need to see absolute targets, but for some companies that is absolutely not the right picture,” said Thomas Day, climate policy analyst with NewClimate Institute. 

For example, energy companies may experience increases in absolute greenhouse gas emissions inventories as they generate more electricity because of infrastructure investments. 

But because more low-carbon power is needed for electrifying manufacturing or heating and cooling, a better measure of progress is a metric that monitors an energy company’s ability to cut emissions related to each kilowatt-hour of electricity it adds to the grid, Day suggested.

Recognized metric

SBTi target-setting methodologies require companies to set absolute emissions reductions goals for operations (Scope 1) and electricity purchases (Scope 2) but it recognizes emissions intensity as one way to handle Scope 3 emissions, typically the biggest part of any company’s carbon footprint.

The latest draft of SBTI’s net-zero standard revision, for example, proposes new emissions-intensity options for purchases of commodities that are energy- or land-use-intensive or for transportation-related activities.

Emissions intensity is more relatable for procurement departments, factory managers, finance teams and other business leaders because it is essentially a measure of efficiency that’s more straightforward to manage, said Marc Munier, CEO of researcher DitchCarbon.

“It’s a much easier thing to hit,” he said. “Carbon is a byproduct of a business activity. If you are more efficient, then that is better for the company anyway. It’s a much easier pitch for a sustainability professional.”

Thermo Fisher Scientific has absolute emission reduction targets but often uses an emissions intensity metric when discussing reduction strategies with customers and suppliers, said Matthew Yamatin, sustainability program director for the life sciences company.

“That and product carbon footprint are what you are starting to see procurement teams move towards,” he said.

The emissions intensity measure is a better gauge than spend-based emissions factors and will help Thermo Fisher identify which companies in its supply chain are more carbon-efficient, Yamatin said. 

Ultimately, Thermo Fisher anticipates adding product carbon footprints to gauge performance, he said, but the processes for gathering that data likely won’t be sufficiently mature for five to 10 years in the life sciences industry. 

Reset internal stakeholder conversations 

Manufacturers Terumo Blood and Cell Technologies, a subsidiary of Japanese equipment maker Terumo, and Stanley Black & Decker opted for emissions intensity targets to guide reductions for Scope 3, in part because these are management metrics that resonate with factory managers, business division leads and finance teams.

Both companies had their commitments validated by SBTi.

Terumo’s current goals call for an absolute reduction of 50.4 percent across its operations (Scope 1) and electricity use (Scope 2). It seeks to cut its supply chain footprint (Scope 3) by 60 percent per unit of revenue by 2030, compared with a 2018 baseline.

The intensity metric recognizes operational improvements by suppliers but doesn’t penalize growth in spending with certain suppliers, said Kyle Santos, director of sustainability at Terumo Blood and Cell.

“If you are a growing business, it is easier to manage an intensity target,” he said. “It takes your growth into consideration.”

Tools manufacturer Stanley Black & Decker’s 2030 targets include a 42 percent absolute reduction for Scopes 1 and 2. It set specific emissions intensity targets for its three most significant, controllable Scope 3 areas:

  • Category 1 (purchased goods and services): a 52-percent reduction in kilograms of carbon dioxide equivalent per kilogram of purchased material
  • Category 4 (upstream transportation): a 52-percent reduction in kg CO2e per ton shipped
  • Category 11 (use of sold products): a 52-percent reduction in kg CO2e per kilowatt of sold product output power

If it achieves these goals and meets its medium-term financial targets, Stanley Black & Decker estimates that it will see a 45-percent reduction in absolute Scope 3 emissions; for transparency, it still reports that number in its disclosures.

“Our intensity metrics are at their most effective when we are also transparent about our overall Scope 3 impact, which means reporting on absolute emissions as well,” said Matthew Boucher, sustainability manager at Stanley Black & Decker.

The company’s emissions intensity levels are less easily influenced by swings in revenue or profits, and they were chosen for that reason, he said.

“When we set the goals, we were extremely deliberate about the metrics we chose,” Boucher said. “We want them to be tied as closely as possible to the core business practice that is responsible for the emissions.”

The change was simpler to communicate and improved decision-making processes throughout the organization, Boucher said. For example, it opened pathways for product managers to more closely consider the impact of materials selections during the design phase.

Nuance required

The most credible emissions intensity metrics are ones closely tied to a meaningful business outcome that employees across the company can actually control, said Lyrica McTiernan, an independent sustainability consultant previously with Facebook and We Company (formerly WeWork).

“Companies should do the most impactful things they can do,” she said. Reporting on emissions intensity will require a more nuanced narrative in ESG reporting and disclosures, she added. 

Emissions-intensity targets are less meaningful when tied to variables such as revenue or gross profits, because these are things over which the sustainability team has very little control, said NewClimate’s Day.

“We advocate for a system of having much more specific targets on the issues that really matter for the business model of the company,” he said.

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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.​

While Western observers fixate on Chinese dumping allegations and subsidy wars, they risk missing a more profound strategic shift in the sustainability realm: China has positioned itself not merely as the world’s green technology factory, but as the architect of a post-carbon global order. 

A recent article from The New York Times highlights China’s flood of green technology to developing nations. But that’s just one dimension of this transformation. The full picture reveals something far more consequential for investors, policymakers and anyone trying to understand the next chapter of global economic competition.

China’s climate strategy isn’t primarily about altruism or even domestic air quality, although both matter. It’s about recognizing three brutal realities that will define the 21st century: 

  • Energy demand will surge as billions enter the middle class 
  • Climate change poses existential risks that no amount of denial can wish away 
  • Whoever controls the infrastructure of decarbonization will wield the influence that oil producers enjoyed in the 20th century

Chinese clean energy exports in 2024 alone are projected to cut global emissions by 1 percent annually once operational — a staggering figure that dwarfs the impact of most international climate agreements. China is responsible for 41 percent of renewable equipment exports, followed by Germany at 23 percent and South Korea at 11.4 percent. But China’s hardware exports (solar panel, ion batteries, turbines, energy storage systems, etc.) are just the visible tip of a much deeper strategy.

From imitator to innovator: The patent revolution

Chinese companies now account for roughly 75 percent of global clean energy patent applications, up from just 5 percent in 2000. Even more striking: this includes 90 percent of solar and wind patents, 85 percent of energy storage patents and over 70 percent of battery and electromobility patents.

What changed? Beijing engineered a form of “economic Darwinism” — flooding strategic sectors with subsidies, then forcing companies into cutthroat domestic competition. The survivors emerge battle-hardened, innovative and globally competitive. It’s industrial policy on steroids and it’s working.

China also sought to overhaul its much-criticized Belt and Road Initiative, quietly shifting its focus. Last year, Chinese energy engagement in Belt and Road countries neared $40 billion, and green-energy investments alone reached a record $11.8 billion, excluding equipment exports. Between 2023 and 2024, China announced $58 billion in overseas clean energy manufacturing projects, plus $24 billion in power generation and storage deals, largely targeting South Asia, the Middle East and North Africa.

This represents a strategic repositioning from traditional infrastructure to the commanding heights of 21st-century energy. Saudi Arabia has now surpassed Pakistan as China’s most important Belt and Road energy partner, receiving about $30 billion in engagement since 2013. When the world’s largest oil exporter becomes your top green energy client, the geopolitical implications are profound.

The developing world leapfrogs

Here’s what the tariff-obsessed miss: approximately 47 percent of China’s solar, wind and electric vehicle exports now flow to emerging and developing countries, and only 4 percent go to the U.S. China has essentially decoupled its green technology dominance from Western markets.

While the West erects trade barriers, China is wiring the rest of the world — home to the majority of humanity and future energy demand — into its technology ecosystem. Chinese clean energy exports, for example, are set to cut emissions in sub-Saharan Africa by roughly 3 percent annually and in the Middle East and North Africa by 4.5 percent. These aren’t marginal impacts; they’re reshaping entire regional energy trajectories.

This isn’t altruistic behavior considering that last year, investment and production in clean energy contributed 13.6 trillion yuan ($1.9 trillion) to China’s economy — roughly one-tenth of GDP, equivalent to Australia’s entire economy. The sector is growing three times faster than China’s overall economy.

As domestic growth slows and manufacturing overcapacity builds, China has created a massive new export market that simultaneously addresses global climate needs, generates economic returns and builds geopolitical influence. It’s the kind of three-dimensional strategy that makes Western policymakers look flat-footed.

What western investors are missing

The dominant narrative frames Chinese green technology as a threat requiring tariffs and trade wars. But several investment angles emerge from a clearer analysis:

The downstream value play: Most economic value in clean energy lies downstream in project development, system integration, installation and services, rather than in manufacturing where China dominates. Companies positioned to deploy and integrate Chinese hardware in developing markets could capture significant value without direct manufacturing exposure.

The critical minerals gateway: China now controls an estimated 75 percent of Indonesia’s nickel operations, critical for EV batteries. Similar strategies are unfolding in South Africa’s platinum-group metals and other resource-rich nations. The investment thesis isn’t just Chinese companies, but firms positioned at the intersection of mineral processing and clean tech manufacturing in these emerging hubs.

The next technological moves: Chinese corporate R&D spending in the electricity sector is now 10 times higher than U.S. counterparts. For investors, this suggests opportunities in next-generation technologies, carbon capture, smart grids, heavy industry electrification — where China is directing innovation capital.

The grid and storage infrastructure play: Battery storage investment in China rose 69 percent from the first half of 2024 to the first half of 2025, while grid investment increased 22 percent. The bottleneck isn’t generation anymore; it’s storage and transmission. Companies solving these challenges, whether in China or emerging markets, face massive addressable markets.

Paradox, peril and investment implications 

China’s strategy isn’t without contradictions. Despite leading in renewable deployment, the Middle Kingdom still accounts for roughly 55 percent  of global coal electricity generation. New coal plants continue receiving permits even as solar and wind capacity soars, showing the “green transition paradox” in stark relief.

But from an investment perspective, this contradiction may accelerate rather than hinder the transition. China’s domestic air quality crisis, coupled with the economic logic of cheap renewables, creates momentum regardless of coal’s persistence in the energy mix. Thus, investors can think about China’s green strategy across three time horizons:

  • Near-term (1-3 years): Identify companies in emerging markets positioned to deploy Chinese green technology. Think Brazilian solar developers, Southeast Asian EV charging networks, African battery manufacturing partnerships. The hardware may be Chinese, but deployment and service economics are local.
  • Medium-term (3-7 years): Watch for Chinese outbound investments in critical minerals processing and component manufacturing outside China. These represent strategic efforts to secure supply chains and could offer compelling returns as they mature.
  • Long-term (7-plus years): Consider exposure to next-generation technologies where Chinese innovation is now focused: hydrogen infrastructure, advanced grid technologies, battery recycling and heavy industrial electrification. China accounts for 31 percent of global clean energy investment, which means its strategic priorities will likely shape which technologies achieve commercial scale.

China hasn’t just become a green technology manufacturer; it’s engineering the infrastructure of the post-carbon economy and positioning itself as the indispensable partner for developing nations that will drive future energy demand. China’s share of global clean energy investment has risen from about 25 percent a decade ago to nearly one-third today.

While Western policy debates remain trapped in zero-sum trade frameworks, China is playing a longer game: creating dependencies, shaping standards, building influence and capturing economic value across the entire clean energy value chain. For investors, the question isn’t whether China will dominate green technology. It’s how to position portfolios for a world being rewired with Chinese hardware, Chinese financing and increasingly, Chinese innovation. Those who see only tariff headlines and trade disputes will miss the forest for the trees.

The post Investors need to understand China’s long game in green tech appeared first on Trellis.

For many years, Intel was an American success story: the most valuable chipmaker in the world and the undisputed leader in the manufacture of microprocessors, the brains inside personal computers and internet servers. 

Its sustainability ambitions led the industry, as well.   

For nearly a decade, Intel bought more clean power than any other U.S. company. It was also an early leader in tackling the powerful greenhouse gasses released in the chipmaking process and known for setting ambitious emissions targets. As a percent of revenue, the company’s emissions peaked in 2006 and remain far below other major manufacturers. 

Then Intel’s business faltered, and so did its climate action. 

Over the past 15 years, the semiconductor behemoth has foundered as rivals captured new markets for chips used in smartphones and artificial intelligence data centers. A strategic misstep left its chips a generation behind the state of the art. Intel’s sales and share price plummeted, forcing it to lay off a quarter of its workforce this year. 

This profile — the latest installment in Chasing Net Zero, our company-by-company series that has probed the climate strategies of Nestlé, Salesforce and others — reveals how business storms have eroded Intel’s once-lauded climate strategy. A critical goal on supply-chain emissions was quietly pushed back 20 years under its new CEO, for instance, and the company no longer ties executive compensation to climate performance. 

Intel declined to make executives available for this article, but said in a statement that it is “committed to achieving a more sustainable future by advancing bold, measurable goals.” Analysts, however, say its progress towards those commitments has slowed as it fights for survival.

“I wouldn’t say that Intel has stopped caring about sustainability, but they have more pressing concerns right now,” said Stephen Russell, a senior technical fellow for sustainability at Techinsights, an Ottawa semiconductor consulting firm. “They’ve fallen behind — and they are desperately trying to catch up.”

When Intel led on climate

Intel’s climate efforts began in the late 1990s when, under pressure from the Environmental Protection Agency, the company joined an industry group to scale back its emissions of fluorinated gases. These “F-gases,” used to carve microscopic circuits onto the surface of silicon wafers, have thousands of times the warming power of carbon dioxide when leaked into the atmosphere.

In the following decade, the company also turned its attention to the electricity consumed by the machinery used to squeeze millions of transistors onto chips the size of postage stamps. Using renewable energy certificates (RECs), which allow companies to claim credit for using green energy by funneling money to renewables projects, Intel became the nation’s largest buyer of clean power between 2008 and 2016, according to the EPA.

These initiatives helped Intel’s operational emissions — Scope 1 (mainly F-gases) and Scope 2 (the electricity it buys) — peak at 4 million metric tons of carbon dioxide equivalent in 2006. By 2019, emissions had declined to 2.8 million tons, even as the company’s revenue doubled. That same year, it stepped up its ambition with goals to use 100 percent renewables and shave 10 percent more off operational emissions by 2030.

As with most companies, however, these sources are dwarfed by emissions from Intel’s value chain. 

Intel’s emissions in its 2019 baseline year

Source: Intel company reports.

In 2019, the electricity used to operate chips sold by Intel (downstream Scope 3) accounted for two-thirds of the company’s footprint.

Chipmakers tackle these emissions by designing less power-hungry chips — Intel’s target is a tenfold efficiency improvement by 2030. But making chips more efficient encourages greater use, which drives up emissions. The trend is compounded by demand for chips to power AI applications. And the ultimate solution to Intel’s downstream Scope 3 emissions is the decarbonization of global grids — not something within the company’s control.   

One area of Scope 3 where the company has more influence is emissions generated by its suppliers, which represent a quarter of Intel’s footprint. In a target announced in 2022, the company said it would reduce supplier emissions by 30 percent by 2030 “from what they would be in the absence of action.” 

The upgraded near-term commitments were capped off with a long-term goal to reduce Scope 1 and 2 emissions to zero in 2040. A few years later, after activist shareholders asked for more, Intel published a detailed climate transition action plan and committed to a net-zero upstream supply chain by 2050.

These are meaningful goals, particularly as the semiconductor industry has become a major contributor to climate change. Each new generation of chips requires more electricity and F-gases to manufacture, and by 2030 chipmaking is expected to account for 0.5 percent of global emissions.

These goals compare favorably to Intel’s two main competitors in processor manufacturing, fast-growing Taiwan Semiconductor Manufacturing Company (TSMC) and the semiconductor division of consumer electronics giant Samsung. Both target net-zero value chains by 2050, a decade later than Intel’s operational emissions goal. Samsung lacks a near-term target, and TSMC only added one this year: a commitment to return its Scope 1 and 2 emissions to 2020 levels by 2030. 

Most other semiconductor companies, such as Nvidia, the high-flying AI chip maker, are “fabless,” meaning they outsource manufacturing and can claim relatively low Scope 1 and 2 emissions as a result.

How Intel stalled on emissions

With operational emissions falling and its commitments gaining in ambition, the Intel of five years ago had one of the most ambitious climate programs in the semiconductor industry. But the company was also grappling with the consequences of a bad bet made the previous decade.

As they considered how to etch ever-smaller circuits onto the next generation of chips, Intel’s engineers had deemed one new technology — using extreme ultraviolet light to draw finer lines on silicon — too difficult to work with. They opted instead to adapt existing methods, an approach that proved even more challenging to implement. Intel’s next-gen chips, due in 2015, were delayed for years. Meanwhile, TSMC successfully brought its next-gen chip to market using ultraviolet technology.

Intel’s delay meant it didn’t build new fabs with the latest approaches to capturing F-gases as rapidly as its rivals. Eventually, Intel bought its own ultraviolet machines, but other problems at its fabs caused a relatively high number of its chips to fail, raising its emissions per chip.  

“If you are throwing away 50 percent of your chips, you still have all the emissions but you are throwing away half of your profits,” said Techinsights’ Russell.

These factors help explain why rivals, which have been building new fabs, have seen their Scope 1 intensity — tons of emissions per dollar of revenue — fall: Samsung’s has dropped by a third since 2019, and TSMC’s by two-thirds. Intel’s intensity, by contrast, is up 56 percent.

Chipmakers’ Scope 1 emissions intensities

Source: Intel company reports. Intel figures have been restated to exclude emissions from a memory-chips division that was spun off in 2021.

An Intel spokesman said that due to the complexities of semiconductor manufacturing technology, emissions intensity by revenue doesn’t accurately represent its performance.

On close examination, Intel’s most recent Scope 1 intensity may be even worse because it does not manufacture all the chips it sells. Two years ago, the company realized it couldn’t manufacture its most advanced designs and outsourced some fabrication to TSMC. Intel reports the emissions associated with making those chips the same way fabless companies do, as purchased goods and services in Scope 3. 

Intel has shared limited details about the deal, but has said it outsources the fabrication of about 30 percent of its chips. If what Intel reported for Scope 1 in 2024 then represents only 70 percent of its sales, the company’s emissions intensity has more than doubled over five years. Intel declined to comment on this figure.

Intel’s renewables strategy hasn’t evolved

Intel’s business struggles haven’t obviously impacted its Scope 2 intensity numbers, which remain far superior to its immediate rivals. Five years into its 10-year commitment, Intel has exceeded its operational emissions target, largely by buying enough RECs to claim that 98 percent of its electricity comes from renewable sources. TSMC and Samsung operate in countries with grids dominated by fossil fuels —Taiwan and South Korea, respectively — and report significantly higher Scope 2 intensities.

Chipmakers’ Scope 2 emissions intensities

Source: Intel company reports. Intel figures have been restated to exclude emissions from a memory-chips division that was spun off in 2021.

Still, Intel’s strategy hasn’t evolved in line with those of more forward-looking tech companies. RECs give buyers credit for clean energy projects that could be thousands of miles away, while the buyers’ own facilities may run on electricity generated by fossil fuels. That’s why Google and some others have developed more direct methods for linking renewable purchases with power use, which they say do more to decarbonize grids.

An Intel spokesman said that the approaches these other companies are using are not feasible in all of its locations. 

Intel did install solar panels at a dozen facilities, but these produce well under 1 percent of its power. Meanwhile, other tech companies are also investing directly in clean energy. TSMC will buy the entire 960 megawatt output from 64 wind turbines Orsted is installing off the coast of Taiwan. And the need to power data centers for AI has prompted U.S. tech giants to contract for nuclear power

Intel also appears to have less money set aside to pay for energy conservation. The company has committed to 4 billion cumulative kilowatt-hours of energy savings over the current decade, and says it has achieved 60 percent of that goal. But a 2022 promise to spend $300 million by 2030 on energy conservation has vanished from its public documents. In the first four years of the decade, it has spent $104 million on electricity-saving projects. 

A Scope 3 target disappears

Intel’s commitment to tackling the roughly one-quarter of its emissions that stem from its supply chain has also waned amid its business troubles. Electricity use is the largest component, and many of the company’s vendors are in countries with limited renewables. Intel was a founding member of an industry group, coordinated by Schneider Electric, that is trying to arrange clean power for suppliers, but the group hasn’t announced its first deal yet. 

Even harder is finding replacements for the greenhouse gases used to refine raw silicon into ultrapure wafers. For now, experts say semiconductor makers are pressuring suppliers to keep prices low rather than innovate on sustainability. 

“I’ve talked to a lot of chemical suppliers,” said Julia Hess, a senior policy researcher at Interface, a German think tank. “They say we could put in more effort finding alternative gases, but we won’t do it until the large manufacturers ask for it because otherwise it’s not economically viable.”

It’s difficult to assess the effectiveness of Intel’s efforts to reduce supply-chain emissions. The company’s upstream Scope 3 total has doubled since 2019, but much of the increase comes from outsourcing production to TSMC.

What is clear is the company has eliminated any mention of its short-term supply-chain target — a 30 percent emissions cut by 2030 relative to business as usual — from its most recent corporate responsibility report. This year’s report, the first under Lip-Bu Tan, hired in March as CEO, omits this, referring obliquely to a “mid-decade refresh” of its targets. 

“We’re sharpening our focus to drive deeper impact in the areas where Intel’s leadership can be most transformational,” wrote Head of Sustainability Madison West in the same report. “This streamlined framework allows us to act with greater clarity, agility, and accountability—while staying true to our core values.”

Giovanna Eichner, a shareholder advocate with Green Century Capital Management, said she was disappointed the supply chain goal went missing: “If they are having difficulty meeting their climate goals, that’s material information they should detail to investors.”

An Intel spokesman said that the company isn’t abandoning its efforts to reduce supply chain emissions, but the effort is now incorporated into its broader net-zero goal for upstream Scope 3, which has a target date of 2050.

The path forward: Business first

Climate change was hardly at the top of Tan’s to-do list when he was hired earlier this year. To staunch the company’s losses, he quickly announced plans to slash its workforce by a fifth. He also had to consider Intel’s relationship with President Donald Trump. The U.S. government now owns 10 percent of Intel, a deal Tan forged this summer after the president demanded he resign because of past ties to China. The man running one of Intel’s largest stockholders, in other words, is the world’s most prominent climate denier.

It’s not surprising then that Tan has said little about sustainability. But in addition to the dropped 2030 supply-chain goal, another clue about his priorities may be that Intel’s 2025 bonus plan, the first he has overseen, is not tied to reductions in Scope 1 and 2 emissions, as it had been in previous years. 

Tan’s primary challenge, of course, is overcoming nearly 10 years of lost momentum in a fast-moving industry. Can Intel design AI chips as powerful as Nvidia’s? Can it operate fabs as precise as TSMC’s? And can it keep its unique position as a company that both designs and manufactures processors?

If Tan succeeds in revving Intel’s business, it will naturally help its climate efforts. New chips will be more energy efficient. New plants will capture more F-gases. The question then will be whether Intel will try to retake its position in the vanguard of companies addressing greenhouse gas emissions. 

Intel’s struggles underline what can seem like a law of business: Combatting climate change is a laudable goal, supported by executives, employees and shareholders alike — but often only until times get tough. 

“Sustainability, unfortunately, is an afterthought in most companies,” Russell said. “If things are going well, everybody is all for it. But profits come first.”

The post How Intel’s sales tailspin sidelined its 2030 sustainability ambitions  appeared first on Trellis.

The sustainability landscape is littered with bold claims, ambitious targets and a widening gap between rhetoric and reality. Against that backdrop, electronics giant Siemens AG presents a case worth examining — not because it declares itself a climate leader, but because it treats the climate transition as an operating constraint rather than a branding opportunity.

Eva Riesenhuber, Siemens’ global head of sustainability, is explicit about the forces shaping the moment. “We are in the middle of two transitions,” she told my co-host, consultant Solitaire Townsend, and me on the latest episode of our Two Steps Forward podcast — the energy transition and the emerging circularity transition — and “the business case for sustainability is very healthy.”

That’s a confident assertion, but it raises a question: Is Siemens ahead of the curve, or simply well positioned to adapt to a world whose regulations and market forces increasingly leave companies little choice?

Beyond circular aspirations

Circularity has long been a sustainability talking point. Siemens approaches it more like an engineering puzzle — though not one it claims to have solved.

Riesenhuber is blunt about the complexity: “Circularity as a topic is not easy. For a hundred years we optimized take, make, waste.”

The opportunity, however, is real. Electronic waste contains “about $90 billion [a year] worth of copper, rare earth, silver [and] gold,” materials Siemens argues can be recovered domestically to manage geopolitical risk.

But the company’s strategy still hinges on ecosystem coordination — a notoriously difficult task. Designing products for circularity is one thing. Getting them back, economically and at scale, is something else.

“We’re so good at selling,” she concedes. “How do you get a product back?”

For now, Siemens’ answer is partnerships, pilots and design decisions that may not show their results for decades. The logic is clear. The timeline is long.

Innovation or inflation?

Riesenhuber regularly returns to innovation as the mechanism for change: bio-based materials, industrial AI and new operating models. It’s not surprising: Prior to her sustainability role, she served as a general partner at Next47, the Siemens-owned venture capital firm.

The promise of innovation as a catalyst for sustainability is compelling, but it risks sounding like many corporate narratives: transformation just over the horizon.

Every part of the Siemens value chain has constraints, she said: “We can’t just replace steel. We need to make sure it still works for the design purpose.”

It’s refreshing realism in a field where slogans often outrun supply chains. Still, realism isn’t results. The company’s bets may pay off, but the hard yards lie ahead.

Biodiversity without the poetry

If circularity is daunting, biodiversity is even less defined. Siemens has begun articulating a position, not because it sits at the center of its business model, but because ignoring it is no longer tenable.

“It sometimes feels a little bit neglected,” Riesenhuber says of the topic, while noting that customers may feel the pressure directly, especially those dealing with water and land. But Siemens isn’t in the business of nature stewardship. Its contribution is selective and situational — which may be the most honest way to describe corporate biodiversity strategies at this stage.

When sustainability stops being a story

If there’s a thesis hiding in Siemens’ posture, it may be this: The company has no interest in treating sustainability as a separate initiative.

“If one talks about sustainability separate from really becoming more productive, more competitive, more resilient, then it’s still at the stage of being an add-on,” Riesenhuber told us. “And as an add-on, it will never be the value lever that it can truly be.”

That’s not triumph. It’s a warning — to Siemens and everyone else.

The company’s framing suggests a world in which sustainability either integrates into business systems or evaporates as soon as budgets tighten. Siemens appears to be choosing the former. But the real test will be whether these strategies hold when capital, pressure and supply constraints collide.

For now, Siemens isn’t selling climate heroism. It’s selling preparedness.

The Two Steps Forward podcast is available on Spotify, Apple Podcasts, YouTube and other platforms — and, of course, via Trellis. Episodes publish every other Tuesday.

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