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The Little Green Lies of Environmentally “Friendly” Business. Ben Elgin Investigative reporter BusinessWeek. IPCC conclusions of 2007. “Warming of the climate system is unequivocal.” Increase in temperatures “very likely” due to man-made emissions. - PowerPoint PPT Presentation
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The Little Green Lies of Environmentally “Friendly”
Business
Ben Elgin
Investigative reporter
BusinessWeek
IPCC conclusions of 2007
“Warming of the climate system is unequivocal.”
Increase in temperatures “very likely” due to man-made emissions.
CO2 levels in 2005 exceeds natural range of last 650,000 years.
Business to the rescue?
Climate Savers: Twelve companies are on pace to eliminate 10 million tons of CO2 emissions by 2010.
“We can reduce the climate change footprint of our companies and grow as businesses at the same time.”
-- Climate Savers statement
Lafarge claims
• A “commitment to sustainable development dates back many years.”
• A “proactive and radical policy to reduce greenhouse gas emissions.”
Lafarge reality
Emissions:1990 = 79.6 million tonnes
2006 = 96.4 million tonnes
2007 = 98.9 million tonnes
State of Green Business 2009
“Despite a growing chorus of corporate commitments and actions, we’re less optimistic that these activities…are addressing planetary problems at sufficient scale and speed.”
-- Greener World Media
Key Questions:
What is greenwash? What is the harm in it? Why do businesses typically fall short in
their green efforts? Where might skeptical media look next?
Greenwash: “sustainability?”
Duke Energy:
“A way of business that is good for people, the planet and profits.”
“Sustainability is a journey, not a destination.”
Greenwash: “sustainability”?
Sustainability is “a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.” – Dow Jones Sustainability Index
Greenwash: “sustainability”?
Merriam-Webster: “A method of harvesting or using a resource so that the resource is not depleted or permanently damaged.”
Greenwash: “sustainability”?
Brundtland Commission: “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
What is greenwash?
What is greenwash?
What is greenwash?
What is greenwash?
Environmental claims that present a misleading picture for consumers and citizens.
What’s the harm in greenwash?
Over 28 ski resorts claim to be wind powered: Vail Resorts: “100% powered by wind” Sugar Bowl: “Powered 100% by Green
Electricity!” Park City Mountain Resort: “Offsetting 100%
of power used”
Value of RECs?
Supposed to provide economic incentive for new wind development
Cheap, often as little as $2 per MWh Many developers say RECs don’t
influence their decisions to build more renewables
Jiminy Peak
386-foot turbine Generates 1/3 of
resort’s power Cost $4 million to
build Saves $200,000 on
power costs
What impedes green progress?
Impatience to make marketing claims
Finite availability of capital inside businesses
Seattle City Light
200,000 tons of greenhouse gas emissions/year
2000 Earth Day resolution: “Net zero” greenhouse gas emissions by 2005
Seattle City Light
Biodiesel conversion of city trucks: 700-1,400 tons of offsets per year Cost as much as $220 per ton of
reduced CO2
Seattle City Light
DuPont’s Louisville plant: 300,000 tons of offsets per year Cost $1.95 per ton of reduced CO2
Seattle City Light
“Our approach initially was very strict. The project would only happen if the check came in the mail from us.” But, “we wanted offsets quickly, not offsets coming 10 or 20 years in the future.”
-- Corinne Grande, strategic advisor to Seattle City Light
FedEx
• Operates over 51,500 ground transport vehicles
• Operates over 675 planes• Greenhouse gas emissions total more
than 15 million tons per year• 2008 profit: $1.1 billion
FedEx
Proclaims to be a green leader:• “We have integrated responsible
environmental practices into our daily operations.”
• Launched a new ad campaign to show FedEx is “doing our part to reduce carbon emissions…”
FedEx
Slow adoption of hybrid vehicles:• In 2004: “This program has the potential
to replace the company’s 30,000 medium-duty trucks over the next 10 years.”
• In 2009: 172 hybrids deployed, or 0.5% of its fleet
FedEx
With 42% savings on fuel that is expected to pay for higher up-front costs, why won’t FedEx invest more heavily in hybrids?
“We do have a fiduciary responsibility to our shareholders,” – Mitch Jackson, environmental director at FedEx.
Future skepticism
Environmental claims with little data or transparency
Intensity-based targets
Big claims, little data
FedEx: “doing our part to reduce carbon emissions”
Google: “carbon neutral” Hasbro: 43% reduction in emissions
since 2000
Problem with intensity data
U.S. GHG per real dollar of GDP:
1990 – 864
2000 – 711
2006 – 625(metric tons of CO2 equivalent per
million chained dollars)
Total U.S. GHG emissions:
1990 – 6,242
2000 – 7,075
2006 – 7,180(millions of metric tons)
A dose of reality
“At Aspen/Snowmass we’re trying our best to be green, but we’re not delusional. Our business has huge environmental impacts.”
-- from Aspen/Snowmass environmental commitment
