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Game On: Why Walmart is ranking suppliers on sustainability

Published on GreenBiz.com, April 15,2013

By Mark Gunther

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

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

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

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

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

A Fiendishly Complicated Undertaking

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

Working with research produced by the consortium and its scientists, Walmart last year sent questions to suppliers in about 200 product categories. Hundreds more will be surveyed this year. The surveys will cover about half of the products sold in Walmart, which had revenues of $468 billion last year.

Walmart is ranking its suppliers, from best to worst in each category. The rankings will be shared with its buyers, who are known as ‘merchants’; theydecide what gets onto store shelves and play a vital role inside Walmart. The merchants, in turn, will be compensated in part based on the sustainability performance of their category.

Jeff Rice, who as senior director of sustainability at Walmart oversees the index, told me that it had four broad goals:

  • To improve the environmental performance of its most popular products.
  • To further integrate sustainabiltiy into Walmart by giving responsibility to the merchants.
  • To drive a productivity loop that reduce costs and ultimately benefits customers.
  • To increase customer trust in Walmart and its brands.

As always with Walmart, the opportunity is to drive change at scale. ‘We’re really trying to accelerate the scale of sustainability innovation, not just identify green niche products,’ Rice said.

Will it have an impact? It’s too early to answer that question with any certainty.

Several Walmart suppliers who were willing to talk – any many were not – told me that the index will help build a stronger business case for their own sustainabiltiy efforts. ‘The index challenges us to continually improve,’ said Kim Marotta, chief sustainability officer at Miller Coors, which is working with the farmers who grow its barley to reduce their use of water and pesticides. It also helps her make the case inside the company that ‘sustainability is very important to our business,’ she told me.

Dave Stangis, vice president of corporate responsibility at Campbell’s Soup, believes the index will make a difference. ‘The index validates people who are doing the good work. It’s a wakeup call to others,’ he said. Campbell’s, he said, is working with The Sustainability Consortiium to develop a mapping tool that will help buyers of agricultural commodities such as soybeans, sweet potatoes, or sugar beets avoid purchasing them from places with water risk, or where biodiversity is threatened. ‘We’re trying to be cognizant of the priorities that Walmart has, as well as those of our other customers,’ he said.”

To read more from companies that don’t think it makes a difference, the rest of the article is available HERE.

Draft 2013 National Climate Assessment Document Open for Review

Here’s your opportunity to read and review for yourself carefully documented analysis that assesses the impact of climate change over periods up to the next century. After the open review period, during which the National Acadamies of Science and the general public will be able to review and provide comments on the contents of this 1,000 page document, the Third National Climate Assessment Report will be final and presented to the President and Congress.

The 13 federal government departments supporting this effort are:  Commerce, Defense, Energy, Interior, State, Transportation, Health & Human Services, NASA, National Science Foundation, Smithsonian, US AID, Agriculture, and EPA. There are 240 authors presenting detailed review and analysis for this assessment.  

The website to visit to review the document is:  http://ncadac.globalchange.gov/

UW-Green Bay is a signatory to the American College & University Presidents’ Climate Commitment (ACUPCC) - one of the few programs mentioned in the “Mitigation” chapter of this assessment as having a positive impact.

Timothy White, Chancellor of The California State University and ACUPCC chair, provided the following synopsis of the Report Findings:

1. Global climate is changing, and this is apparent across the U.S. in a wide range of observations. The climate change of this past 50 years is due primarily to human activities, predominantly the burning of fossil fuels. U.S. average temperature has increased by about 1.5 degrees F since 1895, with more than 80% of this increase occurring since 1980. The most recent decade was the nation’s warmest on record. Because human-induced warming is superimposed on a naturally varying climate, rising temperatures are not evenly distributed across the country or over time (Ch. 2).

2. Some extreme weather and climate events have increased in recent decades, and there is new and stronger evidence that many of these increases are related to human activities. Changes in extreme events are the primary way in which  most people experience climate change. Human-induced climate change has already increased the frequency and intensity of some extremes. Over the last 50 years, much of the U.S. has seen an increase in prolonged stretches of excessively high temperatures, more heavy downpours, and in some regions more severe droughts (Ch. 2, 16, 17, 18, 19, 20, 23).

3. Human-induced climate change is projected to continue and accelerate significantly if emissions of heat-trapping gases continue to increase. Heat-trapping gases already in the atmosphere have committed us to a hotter future with more climate-related impacts over the next few decades. The magnitude of climate change beyond the next few decades depends primarily on the amount of heat-trapping gases emitted globally, now and in the future (Ch. 2, 27).

4. Impacts related to climate change are already evident in many sectors and are expected to become increasingly challenging across the nation throughout this century and beyond. Climate change is already affecting human health, infrastructure, water resources, agriculture, energy, the natural environment, and other factors – locally, nationally, and internationally. Climate change interacts with other environmental and societal factors in a variety of ways that either moderate or exacerbate the ultimate impacts. The types and magnitudes of these effects vary across the nation and through time. Several populations – including children, the elderly, the sick, the poor, tribes and other indigenous people -  are especially vulnerable to one or more aspects of climate change. There is mounting evidence that the costs to the nation are already high and will increase very substantially in the future, unless global emissions of heat-trapping gases are strongly reduced (Ch. 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25).

5. Climate change threatens human health and well-being in many ways, including impacts from increase extreme weather events, wildfire, decreased air quality, diseases transmitted by insects, food and water, and threats to mental health. Climate change is increasing the risks of heat stress, respiratory stress from poor air quality, and the spread of waterborne diseases. Food security is emerging as an issue of concern, both within the U.S. and across the globe, and is affected by climate change. Large-scale changes in the environment due to climate change and extreme weather events are also increasing the risk of the emergence or reemergence of unfamiliar health threats (Ch. 2, 6, 9, 11, 12, 16, 19, 20, 22, 23).

6. Infrastructure across the U.S. is being adversely affected by phenomena associated with climate change, including sea level rise, storm surge, heavy downpours, and extreme heat. Sea level rise and storm surges, in combination with the pattern of heavy development in coastal areas, are already resulting in damage to infrastructure such as roads, buildings, prots, and energy facilities. Infrastructure associated with military installations is also at risk from climate change impacts. Floods along the nation’s rivers, inside cities, and on lakes following heavy downpours, prolonged rains and rapid melting of snowpack are damaging infrastructure in towns and cities, farmlands, and a variety of other places across the nation. Extreme heat is damaging transportation infrastructure such as roads, rail lines, and airport runways. Rapid warming in Alaska has resulted in infrastructure impacts due to thawing of permafrost and the loss of coastal sea ice that once protected shorelines from storms and wave-driven coastal erosion (Ch. 2, 3, 5, 6, 11, 16, 17, 18, 19, 20, 21, 22, 23, 25).

7. Reliability of water supplies is being reduced by climate change in a variety of ways that affect ecosystems and livelihoods in many regions, particularly the Southwest, the Great Plains, the Southeast, and the islands of the Caribbean and the Pacific, including the state of Hawai’i. Surface and groundwater supplies in many regions are already stressed by increasing demand for water as well as declining runoff and groundwater recharge. In many regions, climate change increases the likelihood of water shortages and competitions for water amount agricultural, municipal, and environmental uses. The western U.W. relies heavily on mountain snowpack for water storage, and spring snowpack is declining in most of the West. There is an increasing risk of seasonal water shortages in many parts of the U.S., even where total precipitation is projected to increase. Water quality challenges are also increasing, particularly sediment and contaminant concentrations after heavy downpours (Ch. 2, 3, 12, 16, 17, 18, 19, 20, 21, 23).

8. Adverse impacts to crops and livestock over the next 100 years are expected. Over the next 25 years or so, the agriculture sector is projected to be relatively resilient, even though there will be increasing disruptions from extreme heat, drought, and heavy downpours. U.S. food security and farm incomes will also depend on how agricultural systems adapt to climate changes in other regions of the world. Near-term resilience of U.S. agriculture is enhanced by adaptive actions, including expansion of irrigated acreage in response to drought, regional shifts in crops and cropped acreage, continued technological advancements, and other adjustments. By mid-century, however, when temperature increases and precipitation extremes are further intensified, yields of major U.S. crops are expected to decline, threatening both U.S. and international food security. The U.S. food system also depends on imports, so food security and commodity pricing will be affected by agricultural adaptation to climate changes and other conditions around the world (Ch. 2, 6, 12, 13, 14, 18, 19).

9. Natural ecosystems are being directly affected by climate change, including changes in biodiversity and location of species. As a result, the capacity of ecosystems to moderate the consequences of disturbances such as droughts, floods, and severe storms is being diminished. In addition to climate changes that directly affect habitats, events such as droughts, floods, wildfires, and pest outbreaks associated with climate change are already disrupting ecosystem structures and functions in a variety of direct and indirect ways. These changes limit the capacity of ecosystems such as forests, barrier beaches, and coastal-and freshwater wetlands to adapt and continue to play important roles in reducing the impacts of these extreme events on infrastructure, human communities, and other valued resources (Ch. 2, 3, 6, 7, 8, 10, 11, 14, 15, 19, 25).

10. Life in the oceans is changing as ocean waters become warmer and more acidic. Warming ocean waters and ocean acidification across the globe and within U.S. marine territories are broadly affecting marine life. Warmer and more acidic waters are changing the distribution of fish and other mobile sea life, and stressing those, such as corals, that cannot move. Warmer and more acidic ocean waters combine with other stresses, such as overfishing and coastal and marine pollution, to negatively affect marine-based food production and fishing communities (Ch. 2, 23, 24, 25).

11. Planning for adaptation (to address and prepare for impacts) and mitigation (to reduce emissions) in increasing, but progress with implementation is limited. In recent years, climate adaptation and mitigation activities have begun to emerge in many sectors and at all levels of government; however barriers to implementation of these activities are significant. The level of current efforts is insufficient to avoid increasingly serious impacts of climate change that have large social, environmental, and economic consequences. Well-planned and implemented actions to limit emissions and increase resilience to impacts that are unavoidable can improve public health, economic development opportunities, natural system protection, and overall quality of life (Ch. 6, 7, 8, 9, 10, 13, 15, 26, 27, 28).

The True Cost of Clothing

Published on Greenbiz.com, Dec. 12, 2012; Author: Richard Mattison

“Past True Cost columns have relied on generic product data. This month, we provide a case study based on actual product data following the work PUMA has done to identify the environmental price tag of its products.

PUMA wanted to understand whether its efforts to develop more sustainable clothing products had in fact been making a positive difference after all environmental impacts across the full product lifecycle had been taken into account.

The PUMA Product Enviromental Profit and Loss (EP&L) analysis compares a pair of PUMA’s conventional Suede sneakers versus a pair of PUMA’s soon-to-be-launched biodegradable InCycle Basket sneakers.

The analysis takes account of the environmental impacts caused by greenhouse gas (GHG) emissions, waste and air pollution, as well as the use of natural resources such as water and land along the entire value chain, from the generation of raw materials and production processes to the consumer phase where the product is used, washed, dried, ironed and ultimately discarded.

The results of this analysis confirm that PUMA’s focus in creating a sustainable footwear alternative was not in vain. The enviromental impacts of the conventional PUMA Suede sneaker amounted to €4.29 ($5.61) per pair, while those of the InCycle basket sneaker were only €2.95 ($3.86) – around a third less environmental damage across the product lifecycle.

How was this acheived?

Previous EP&L analysis of PUMA’s operations and supply chain identified that its environmental impacts were mainly concentrated in the raw material production and processing tiers of PUMA’s supply chain. This provided important focus areas for environmental optimization.

Greenhouse gases. Substituting the conventional PUMA Suede leather uppers for a combination organic cotton and linen led to significant GHG savings for the InCycle sneaker, as the GHGs associated with rearing cattle for leather production far exceed those related to cotton farming. Further GHG savings resulted from a switch to organic cotton which avoids the use of GHG-intensive synthetic fertilizers. And finally at the end-of-life, the InCycle Basket has the lowest GHG emissions because it is 100 percent compostable, whereas the traditional PUMA Suede is not currently recyclable and cannot be composted due to chemicals used in the production of the Suede. The PUMA Suede will ultimately end up in a landfill or incinerator.

All tallied, GHG emissions from the production, consumer use and end-of-life of the PUMA InCycle sneaker cause around 35 percent less environmental costs from GHG emissions than the conventional PUMA Suede.

Water. The InCycle sneaker outperformed the PUMA Suede with 21 percent less water consumption. This can be linked directly to leather, which requires more water during the tanning and processing phase than cotton. The PUMA InCycle sneaker does, however, have a higher water cost during the raw material phase since organic cotton farming is more intensive than cattle ranching.

Land Use. Choosing which country products and services are sourced from has a direct impact on land use valuation, since this relates to the types of ecosystems that are affected. The analysis found that the InCycle sneaker has a 20 percent reduced enviromental cost from land use because a far larger area of agricultural land is required for the production of leather, in particular related to cattle farming, than for the production of cotton.

Waste.  When analyzing waste generation throughout the product life-cycle, the InCycle sneaker creates approximately one third of what the PUMA Suede generates. The main savings are at the raw-material production and processing stages, where cotton generates far less waste than leather. Additionally, due to the compostable nature of the PUMA InCycle, there aren’t any environmental costs associated with waste at end-of-life.

Air Pollution. The PUMA InCycle sneaker has a 14 percent higher environmental cost related to air pollution than the PUMA Suede because the energy required to convert cotton into thread and weave it into fabric is higher than the energy necessary to process leather.

However, applying a financial value to these competing environmental costs quickly revealed that the negative air pollution impacts were easily offset by the much more significant savings in other areas.

Focusing on Waste

To clear the waste that 100,000 pairs of conventional sneakers cause during the production process and the consumer life, 31 waste disposal trucks are needed. Now consider this against the billions of sneakers made each year – around 21 billion pairs in 2011 alone – and you will begin to see the tip of the iceberg of what needs to change.”

To read more and understand the impact of true cost accounting, read the rest of the article here.

Warming Lakes: Climate Change and Variability Drive Low Water Levels on the Great Lakes

Note: If you venture up to the 8th floor of the Cofrin Library and take a look out at Green Bay, you will see sand bars that normally are under at least a few inches of water. This article from Newswatch: National Geographic details some the possible explanations of what we’re seeing.

By Lisa Borre, published Nov. 20, 2012

“For people living around the Great Lakes, water levels this past month have appeared much lower than many will remember. The upper Great Lakes reached near-record low water levels in October. This was most evident on Lake Michigan and Huron, where lake levels dropped to less than two inches (4 cm) above record lows and 28 inches (71 cm) below the long-term average. All five lakes, plus Lake St. Clair, remain below their long-term averages.

Rock and sand recently exposed by low water levels made stretches of the northern Lake Michigan shoreline look like a moonscape. Recreational boaters had trouble navigating the shallow water this fall, and shipping companies lightened loads to compensate for low water. Lakes Michigan and Huron hovered just above a record low set nearly 50 years ago, and Lake Superior was within five inches (11 cm) of record lows set in 1975.

A 2002 National Geographic magazine story, Down the Drain: The Incredible Shrinking Great Lakes, documents declining lake levels and the potential economic and ecological consequences for the region. Ten years later, the story continues to unfold, as water levels remain lower than normal.

Experts blames the recent low water on the unusually warm and dry weather over the past year. Rain events in October, including Hurricane Sandy, delayed the inevitable, but forecasters predict Lakes Superior, Michigan, and Huron will likely reach historic low levels in the late fall or winter, a time of year that the lakes are normally already dropping due to high rates of evaporation.

Low water levels are not the only climate-related trend being observed on the Great Lakes. Ice cover is also declining. The Great Lakes have lost 71% of their ice cover since 1973, according to a study by the Great Lakes Environmental Research Laboratory (GLERL). This past winter, the Great Lakes, including Lake Superior, were virtually ice free with just 5% ice coverage, the second lowest on record. Similar to the global assessment conducted in 2000, loss of ice cover is being reported on lakes throughout North America, Europe, and Asia.

Summer lake temperatures are also on the rise. As mentioned in one of my previous posts about warming lakes, the Great Lakes are among many lakes in the northern hemisphere experiencing a rapid warming trend. Lake Superior, the largest freshwater lake in the world by surface area and third largest by volume (after Baikal in Siberia and Tanganyka in Africa), is also one of the most rapidly warming lakes in the world.

Because lower lake levels are considered one of the potential consequences of climate change, I was curious to find out whether there was any connections to what is being observed on the Great Lakes.

I recently had the opportunity to talk with John Lenters, a lake and climate scientist, while we attended a meeting of the Global Lake Ecological Observatory Network (GLEON) in Mulranny, Ireland. When comparing notes about our personal connections to Lake Superior, I learned that this accomplished scientist, with a laid-back Midwestern manner, first fell in love with the Big Lakes as a 14-year-old boy while on a backpacking trip in Isle Royale National Park. “Although the trip was grueling, I was awed by Lake Superior and realized I wanted to study lakes,” Lenters told me.

Now an associate professor at the University of Nebraska – Lincoln (UNL), Lenters studies lake-climate interactions in the Great Lakes region, the Alaskan Arctic, and western Nebraska. Given the global implications of his research, he joined GLEON in 2008 and helped to form the new Global Lake Temperature Collaboration (GLTC), hosting their first meeting at UNL, this past June. With his boyhood dream as inspiration, he and his collaborators are leading the way to learning more about how climate change is affecting lakes around the world, including the Great Lakes.

On Lake Superior, Lenters and his collaborators are studying the interactions among evaporation, ice cover, and water temperature. Their research builds on works by others in the region (and elsewhere) and provides new insight on factors affecting water levels.”

Surface Water Temperatures Increasing on the Great Lakes

Is it or isn’t it? Click here to read the rest of the article.

Will Wisconsin election results tip scales against renewables?

by Dan Haugen, Midwest Energy News, 11/12/12

Will changing political winds in Wisconsin mean another new direction for wind energy policy in the state?

Wisconsin Republicans reclaimed control of the state’s senate last week, five months after recall elections tipped the balance to Democrats. Republicans will now hold power by a wider margin the 2013 than they held in 2011.

Wind energy advocates are worried that might mean another attempt to repeal the state’s wind farm siting rules, which limit restrcitons that local governments can place on proposed wind developments.

And one Republican state senator has already announced plans to seek a repeal of the state’s renewable electricity standard, though a renewable advocacy group doubts the bill will gain enough support to pass.

Hopes for bipartisanship

Overall, RENEW Wisconsin program and policy director Michael Vicerman expects less hostility and more acceptance of the fact that renewable energy plays a growing role in the state’s economy.

“We are hearing that there are Republican senators that want to introduce positive legislation on renewable energy next year, and they want to do so in a bipartisan fashion,” Vickerman said.

RENEW Wisconsin is a member of RE-AMP, which also publishes Midwest Energy News.

While Republicans haven’t announced their energy agenda, RENEW Wisconsin is concerned about a proposal by Republican state Sen. Frank Lasee that would un-do the state’s wind farm siting policy.

“He’s spearheading a one-person jihad against wind energy,” Vickerman said.

Wisconsin adopted statewide wind siting rules in 2011 that put boundaries on the local zoning and permitting regulations, which had delayed or derailed wind projects in some counties.

In March, Lasee introduced a bill that would have rolled back those rules, putting wind developers back at the mercy of a messy patchwork of local rules, some of which were, in Vickerman’s words, “a never-ending obstacle course” meant to discourage any projects.

Lasee’s effort last spring came up one vote short when Republicans had a 17-16 margin in the state senate. Next year, Lasee’s party is expected to hold an 18-15 majority.

“We survived, really, by the skin of our teeth,” Vickerman said. “All other things being equal, we have to find another Republican senator who will stand [for the wind siting rules.]”

RPS challenge?

The American Legislative Exchange Council, a conservative policy group that promotes identical, model legislation across the country, says it plans to make repealing state renewable mandates a high priority in 2013.

State Sen. Glenn Grothman, a Republican from Sheboygan, has already announced plans for a bill that would freeze Wisconsin’s renewable standard at its 2012 levels.

“The 10 percent renewable portfolio standard imposed on Wisconsin utilities in 2006 was a mistake,” Grothman said in a press release. (The senator’s office didn’t return a phone call last week.)

Vickerman said he is “not particularly worried” about Brothman’s bill. That’s because renewable energy has too many allies – from landfill operators to equipment manufacturers – who understand its importance to growing Wisconsin’s economy.

“He is looking at legislation that would not only scale back commitment to wind energy, but also solar, biogas, landfill gas, hydro – all the resources are covered,” Vickerman said.

For the rest of the article click here.

PepsiCo launches new Facebook-inspired carbon calculator

 By Alison Moodie, GreenBiz.com, 10-9-2012

For a company like PepsiCo, which oversees more than 20 brands and hundreds of different products around the world, calculating the carbon footprint of just one of its products can take weeks, and at a signficant cost to the company. To save time and money, PepsiCo teamed up with researchers from Columbia University’s Earth Institute to create a tool that can measure the carbon footprint of thousands of products all at once.

The calculator, which lacks an official name, can calculate the carbon emissions of different materials and activities in a company’s supply chain and operations, and within minutes pinpoint which of these carries the largest carbon footprint.

‘The objective was to give companies several capabilities at once with only a single effort,’ said Christoph Meinrenken, the tool’s lead researcher and associate research scientist at the Earth Institute.

The calculator was developed to follow publicly known carbon footprinting standards such as the GHG Protocol Life Cycle Analysis (LCA) standard and PAS20:2011. The methodology and software helps businesses identify which materials or activities in their supply chain and operations have the biggest effect on the total carbon footprint of one of their products, product lines, brands or regions. The calculator also reveals the accuracy of this information and how this accuracy can be improved so a company can make better business decisions.

“We saw the opportunity to use our carbon/greenhouse gas analysis as a base for building a broader decision-making tool that could help us identify other efficiency opportunities throughout our supply chian, drive innovation and improve our overall operations,” said Rober terKuile, PepsiCo’s senior director of environmental sustainability.

The tool also provides certifiable product footprints to be used in ecolabeling and for environmental measuring groups such as The Sustainability Consortium and GoodGuide. This certification requires an intensive, bottom-up assessment of each product’s entire life cycle in order to provide the required microscopic level of detail and to be auditable outside the company, said Meinrenken.

The tool is not the first of its kind. Earlier this year, Danone announced it had developed a system, in partnership with SAP, that can calculate the carbon emissions of individual products. Meinrenken said the inner workings of the Danone tool hadn’t been made public, so it was hard to adequately compare the two. He said PesiCo’s tool was developed before Danone unveiled its calculator.

The PepsiCo tool takes inspiration from sites like Facebook and Netflix, which mine huge swaths of data to figure out what users like. It analyzes data already stored in a company’s database to infer information, like what materials are in a product and where they come from. This process saves a company time and money, said Meinrenken.

‘This is just a general argument of being smart and efficient with companies’ existing data to mine and ‘milk’  it if you will, to learn additional things from the same data, rather than hiring additional staff and building up new data,’ he said.

To learn more about this approach to carbon footprinting, finish reading the article HERE.

Are product sustainability programs at a tipping point?

By Chris Nelson, GreenBiz, published 8-22-12

“Over the last few months, I’ve had a chance to speak to a large number of senior business, EH&S and sustainability leaders at a variety of Fortune 500 ERM clients about product sustainability and what it means to their organizations. What resonated in these conversations is that designing and implementing product sustainability programs at an enterprise level is now a strategic imperative for many companies. This was a consistent theme across many different market sectors and was being driven by the belief that a product sustainability program could create significant business value for their organizations.

Generally, these programs focus on improving permforance across the enterprise in the following areas (including but not limited to): life-cycle management, product regulatory compliance, supply-chain management, materials, waste, energy, water, packaging and product innovation. Companies are finally being able to see that a product sustainability program can lead to opportunities to increase sales, reduce risk, improve brand recognition and trust as well as develop organizational capabilities related to sustainability and innovation. And, of course, an improvement in their overall environmental and social performance.

This hasn’t always been the case. Companies historically addressed product sustainability issues reactively, intended to deal with a specific customer request related to a product life-cycle or supply-chain initiative, or with a pressing regulatory issues. It was not becasue they saw the ability to create business value by designing and implementing product sustainability programs at the enterprise level.

Companies are not seeing that the status quo of reactive responses is no longer enough. Many of these companies are seeing their market leadership position erode as their competitors are beginning to make serious commitments – as well as substantive progress – towards product sustainability leadership. They are realizing that they need to be more proactive in understanding and meeting regulatory requirements to ensure they have a license to operate in an environment where the global regulatory landscape is increasing and becoming more complex. They have better access to product-level data and information as a result of the implementation of large-scale EHS and sustianbility information systems; these systems not only report what is – or is not – in a given product, but can also indicate resource (e.g. energy) intensity to help manufacturers improve overall business processes. Some companies are losing business by not effectively communicating the environmental impacts of their products and operations in response to a customer supply chain initiative.

Most importantly, there is an increasing emphsis placed on product life-cycle management to ensure their companies are focusing their attention on the most important opportunities and issues across the product value chain.

Most of these companies are struggling to understand how to unlock potential business value from a product sustainability program and to identify and access the resources they need to deliver on their vision for product sustainability. That’s where the challenges and complexity of designing and implementing product sustainability programs expose themselves. The business value is difficult to determine and in most cases the companies do not have – or are unsure as to whether they have – the right resources to make all of this a reality, from a people, tools and infrastructure perspective.”

To read the rest of the article and learn the questions a company should ask when designing and implementing a product sustainability program, CLICK HERE.

UW – Green Bay Listed by Sierra Magazine as a “Cool School”

UW-Green Bay rated a first-ever appearance on Sierra Magazine’s 6th annual “Cool Schools” ranking. Coming in at #65 out of a total of 96 schools that were ranked, UWGB was one of only two University of Wisconsin System schools appearing in the list. The other, UW – Oshkosh (#14), shows that higher education institutions in northeast Wisconsin are working hard to improve the sustainability of our campuses.

The ranking is a nice recognition of the consistent effort made by many people over many years on our campus to keep improving energy efficiency, innovating, participating in and providing education on environmental issues, policy and sustainability.  

Open to all four-year colleges and universities in the United States, campuses could participate in the review process by completing an in-depth survey about their school’s sustainability practices. The survey developed was a result of collaboration between Sierra, Princeton Review, Sustainable Endowments Institute and Association for Advancement of Sustainability in Higher Education (AASHE).  Its questions focus on measurable environmental goals and achievements, with priority given to achievements.

To view the Cool Schools issue and see UWGB’s ranking in the 11 categories included in the survey, CLICK HERE.

 

College endowments lose top grades in sustainable investments

By Robert Kropp, GreenBiz.com, July 23, 2012

“College and university endowments no longer lead the practice of sustainable investment. In fact, as a new report from the IRRC Institute and the Tellus Institute points out, many if not most endowments now lag behind the mainstream institutional investors, whose uptake of environmental, social, and corporate governance (ESG) investment criteria is growing.

Titled “Environmental, Social and Governance Investing by College and University Endowments in the United States: Social Responsibility, Sustainability, and Stakeholder Relations,” the report presents findings that are ‘counterintuitive,’ according to the IRRC Institute executive director Jon Lukomnik.

‘Historically, endowments were groundbreaking institutional investors that addressed social and environmental considerations in their investments far earlier than others,’ Lukomnik said. ‘Our findings indicate that today’s endowment no longer are leaders in the institutional ESG investment arena.’

College and university endowments control about $400 billion in assets. However, the report found that a widely practiced and standardized conceptualization among endowments of sustainable and responsible investments was lacking. An understanding of sustainable and community investments was also missing.

Moreover, when ESG criteria were applied, endowments most commonly restricted them to ‘single-issue negative screening of public-equity portfolios,’ instead of adopting the positive, or best-in-class, screening of corporations that is increasingly the strategy of choice among sustainable investors, the report found.

Endowments also persist in their concentration on proxy-voting recommendations, although, as the report points out, many have shifted their investments from equitities to alternative asset classes where proxy voting is less significant.

There was a time when colleges and universities in the U.S. were among the leading institutions in adopting ESG criteria in their investments. For instance, their endowments took a leading role in the divestment campaign to end apartheid in South Africa. The involvement of students in shareowner advocacy is another example.

Another indication of the failure of endowments to keep up with an increasingly sophisticated industry is the absence of these institutions as signatories to major institutional networks. Not a single endowment is a member of the United Nations’ Principles of Responsible Investment (PRI), and only one is a member of the Council of Institutional Investors (CII).

The report also found that endowments’ transparency among ESG investments remained ‘paricularly poor.’

‘Colleges are regularly self-reporting unverifiable data about their ESG investment policies and practices, which upon investigation prove to be overstated,’ the report concluded.”  

CLICK HERE to read the rest of the article.

News Bit: Facebook shares its carbon footprint

Published on GreenBiz.com, by Joel Makower, 8-1-12

“Facebook today revealed for the first time information about its carbon footprint, citing the ‘power of openness.’ The data, covering the energy use for its data centers and global offices, reflects both the company’s efforts to reduce energy use and increase renewable energy consumption, as well as the challenges it faces to steadily improve those efforts.

‘We’re releasing this data because we believe in the power of openness, and because we hope that adding another data point to our collective understanding of our industry’s environmental impact will help us all keep improving,’ the company said in a statement.

At first glance it’s a happy story. The company said that last year, its data centers and operations used 532 million kilowatt hours of energy, emitting 285,000 metric tons of carbon dioxide equivalent. By contrast, Google revealed last year that its carbon footprint equaled nearly 1.5 million metric tons, more than five times Facebook’s. (Google’s ‘energy czar’ at the time was Bill Weihl, who now serves as Facebook’s ‘sustainability guru.’)

For the typical Facebook user, a year’s worth of liking and posting consumes just 269 grams of carbon equivalent – ‘roughly the same carbon footprint as one medium latte,’ the company pointed out. ‘Or three large bananas. Or a couple of glasses of wine.’ To put that in perspective, a typical U.S. household’s annual carbon footprint is about 48 tons, according to the Cool Climate Network at the University of California, Berkeley. Suffice to say, that’s a helluva lot of lattes.

But Facebook is quick to note that ‘as a fast-growing company our carbon footprint and energy mix may get worse before they get better.’ That’s due primarily to the challenges of sourcing sufficient clean power where the company sites its data centers. Facebook’s goal is to source 25 percent of its power from clean-energy sources by 2015, which is only a tad better than the 23 percent of ‘clean and renewable’ energy the company now uses. Still, according to Facebook, achieving 25 percent ‘is going to be a stretch for us, and we’re still figuring out exactly what it will take to get there.’

To read more about Facebook’s efforts, activist pressures on the company, and what they’re doing 60 miles south of the Arctic Circle in Sweden, CLICK HERE.