Transcript 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.

The Little Green Lies of
Environmentally “Friendly”
Business
Ben Elgin
Investigative reporter
BusinessWeek
IPCC conclusions of 2007
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“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
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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:
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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”?
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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”?
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Merriam-Webster: “A method of
harvesting or using a resource so that
the resource is not depleted or
permanently damaged.”
Greenwash: “sustainability”?
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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?
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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
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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?
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Impatience to make marketing claims
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Finite availability of capital inside
businesses
Seattle City Light
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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
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“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
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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
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Environmental claims with little data or
transparency
Intensity-based targets
Big claims, little data
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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
Total U.S. GHG
emissions:
1990 – 6,242
2000 – 7,075
2006 – 7,180
(metric tons of CO2 equivalent per
million chained dollars)
(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
Questions?
Ben Elgin
[email protected]
(415) 357-8213