Business leaders need to be clear that there should be dual motivation for going Green : profit and sustainability.  There is no need for pretense to sainthood or being the planet's saviour; in fact, that position is ill advised, as it can have unintended consequences.  Profit and sustainability are necessary and worthy goals when pursued together.  Ultimately, companies should be thinking about competitive advantages enabled by taking a leading position on sustainability in their sector, such as the opportunity to drive or influence government regulatory agendas. 

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Whether you see it as a rough week in the markets or a great opportunity to buy stocks, the best guess is that Wall Street has to date lost an estimated $1-$1.5 trillion.

 

If it's hard to wrap your brain around those kinds of numbers, then it may be difficult to appreciate this next estimate: an EU-commissioned study places the cost of deforestation between $2-$5 trillion...annually.

 

These costs are tied to the ecosystem services that forests provide for free: erosion and flood control, carbon storage, air filtration. When we clear forests that provide these essential services, we either need to invest heavily in human-built facsimiles, such as retaining walls, dams or underground carbon storage facilities, or we have to manage without the services altogether.

 

The staggering financial market losses have incited governments to pump billions of dollars into their economies as a rescue measure. Ecological restoration of degraded natural systems is also extremely costly. On average, the cost of conservation to ecological restoration is estimated to be about 1:2000. In other words, ecological restoration is a (prohibitively) expensive business.

 

And still, these are systems tipping points we don't know how to tip back, or can't tip back, for all our investment. We are starting to witness how unexpected positive feedback loops intensify and accelerate human-induced ecological change. Example: global warming melts sea ice, which exposes more ocean, which absorbs more heat and melts more sea ice. For some things, there is no bailout package.

 

In the case of the market and the planet, there are disastrous consequences to unsustainable borrowing. Given that natural capital underlies all financial capital, we definitely don't want to find out what happens when Nature falls 900 points.

 

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Here is a new presentation by Al Gore at the annual TED Conference. He makes the case that the climate crisis is worse than our most conservative estimates and then calls for dramatic action not seen since the race to the moon.

A large part of the laziness can be attributed to cheap oil, free water and abundant natural resources. People and their economies change only when the price point forces them to. Oil at 100$ has led many Americans to look at their SUVs in a new light. However, it is going to take much more than fuel efficient SUVs to turn the situation around.

 

Green technology may be a large part of the solution to America's current economic woes. An interesting article in Harper's outlined the possibility of America pumping tons of cash into green tech to boost the economy to compensate for the recent collapse of the housing bubble. Massive investment in clean technology would allow America to create knowledge intensive jobs and reduce their dependance on foreign oil.

 

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The famous biologist E.O. Wilson recently made the case that overprotective soccer-moms are killing our childrens' interaction with the natural environment. Today, more than ever, parents are protecting their children from danger, dirt, risk and consequently - discovery. Over-scripted activity planners prevent kids from playing in the dirt and discovering the mysteries of nature. A trip to the local zoo or botanical garden is no replacement.

Children who eat dirt have better immune systems and children who play with dirt tend to have more interest in dirt and the millions of organisms that live in, on, and above it. Kids need to discover things on their own, and the best way to appreciate nature - and sustainability - is to let them play with it first hand. Set your kids' curiosity free. 

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The CEOs of GE and Wal-Mart strongly re-iterated their commitment to sustainability at a recent Wall Street Journal Conference. They also expressed their wish for strong Federal regulations on climate change and environmental issues. As both companies have taken pre-emptive action on sustainability; strong federal regulation would give them a competitive advantage over other titans of American industry.

How will your company be positioned when the government comes knocking?

 Full Story Here

 

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Of all the sustainability issues our there, I feel housing is at the top of the list. Not just because housing consumes large amounts of energy and materials, but also because it has a compounding effect on our lifestyles.

There is a strong tendancy for people who live in healthy homes to lead healthier lives and demand healthier policies from government. In the near future, I hope our government will incorporate sustainability factors into the building code. William McDonough and Amory Lovins, two great sustainability leaders, have spoken out about the possibilities in the housing sector.

McDonough gives a great (short) talk about his vision of housing

And Amory Lovins of the Rocky Mountain Institute talks (1.5 hours) here:

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La Presse's François Cardinal is reporting today that the Charest government is keen on submitting a bill that will require electronics manufacturers to develop and operate an electronics recovery program to divert used phones, televisions and computers from landfills. According to recent figures, 59% of electronic products in Quebec end up in landfills, while only 6% are recycled.  The government aims to recovery 35% of all such products within two years of the program's launch.  It is expected that manufacturers will increase the cost of their products as a result of the initiative. Interestingly, the article quotes a Recyc Quebec document claiming that manufacturers have an incentive to supply lower quality products for medium term use when recycling costs are not factored in to the cost of production.

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The Tar Sands are the largest industrial project in Canadian history. We are seeing increasing demands by Canadians (read: stakeholders) to slow down the expansion and impose more stringant environmental regulations. Most of these demands are coming from Albertans (read: local stakeholders).

Compounding this rising tide; a new federal report by Environmental Defence labels the tar sands as "The Most Destructive Projecty on Earth" was just released. The report outlines how our nation's rivers and skies are being polluted at an ever increasing rate.

For the long-term future of Alberta and Canada, it is imperitive that we place strong environmental restrictions, not just for greenhouse gases, but also for water contaminants, acid rain and local community impacts. 

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Artist and photographer Chris Jordan has graciously allowed EEM to use some of his amazing photos to move sustainability forward. His recent work features industrial and consumer waste, the numbers are simply staggering. Below are some examples, but much more can be found at www.chrisjordan.com

Here, he depicts 106,000 aluminumcans, the number used in the US every thirty seconds.

 

 

 

 

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Plans were unveiled for the first carbon-neutral,  zero-waste, zero-emissions city.  The effort to build Marsdan City, next to the Emirati capital Abu Dhabi, is being undertaken by the world's fifth largest oil exporter and second highest emitter of greenhouses gases per capita in the world. The jury's still out as to whether it will succeed as a truly sustainable city in the middle of the desert .

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I just came across an interesting website that claims to offer two sides to the global warming debate. That's right, there is still a debate going on. Website found at http://climatedebatedaily.com/

As an engineer, I think it is very important to constantly question and revisit science to ensure it stands the test of time. Global Warming science is among the most complex (and controversial) scientific studies around and it is still relativly new, so a logical, scientific debate is definitly good. 

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Here is a great summary of a recent UN Environment Report which outlines the current state of the world's ecosystems.

http://news.bbc.co.uk/2/hi/in_depth/629/629/7056601.stm

 

 

 

 

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Here is a great video made for the engineering consulting firm Arup. They have been involved in some very interesting projects, notably the Dongtan district near Shanghai, China. The district is being designed to be one of the greenest cities in the world.

 

 

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This week Ethical Corporation lauded “15 individuals from business, politics and civil society who have done most to push forward the case for responsible business in 2007” www.ethicalcorp.com/content.asp?ContentID=5561&newsletter=24 .

At what position on this list would we find the CEO of RioTinto Alcan, after his comment in late October on the consequences of governments who may favour absolute standards for greenhouse gas emission reductions over intensity-based standards:

"If you look at absolute reductions as a solution, the likely consequence is you will drive growth of aluminum production offshore and potentially to other jurisdictions that do not have the same environmental standards, do not have the same commitment to greenhouse gas reductions.'' http://news.therecord.com/Business/article/261435

Likely not very high....this type of comment is reminiscent of the “jobs vs the environment” veiled threats made by industry 30 years ago, in reaction to initial government regulation of the environment - and somewhat surprising for a sustainability leader like Alcan.

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I just heard a great talk and discussion from the Stanford Center for Social Innovation with Lawrence Jackson, former President and CEO of Global Procurement, Wal-Mart.

The main points were:

The move towards sustainability was started by one very influential person inside the organisation, Rob Walton.

 

The first store retro-fits were very expensive and did not work that well. But, Wal-Mart was willing to take the initial losses because they saw the big picture and potential windfall. When setting out on a new business path, the first steps are always the hardest (and most expensive). That is why Vision Setting is so important.

 

Wal-Mart included NGOs and other organisations which were not traditionally friendly to Wal-Mart in the sustainability discussions. This was an example of Community Engagement on the largest possible scale. Wal-Mart realized that their efforts needed support from the Environmental Community to ensure success and credibility.

 

The CEO, Lee Scott set aside one our per week to deal with sustainability. This shows how seriously they took the issue. How often do you see a recurring one hour meeting on a CEO's weekly schedule?

 

They started their organic cotton line with Baby Wear. This was logical as the people who are most prone to buying wholesome products are mothers. To convince the board that organic cotton was a good idea, Lawrence Jackson simply brought in a tub of pesticides and set it down on the boardroom table. The tub contained the exact amount of pesticides that was used to make the shirts the board members were wearing. This was a great use of a concrete example to enact change.

 

If Wal-Mart can make these changes, so can other organisations.

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As more and more mainstream companies see the untapped wealth in the world's lower classes, we ask ourselves, what other opportunities lie at the bottom of the pyramid?

 

Barclay's has recently announced plans for a bank to target the poor in India (taxi drivers, small merchants...). This seems to be one step above Muhammed Yunus' Grameen Bank, which targets the extremely poor. Can it work, I think so. The hardworking lower classes (which will become middle class) need a place to safely place their hard earned money, gaining their trust today will pay huge dividends in 10-20 years.

 

While banking seems like the obvious service offering for the emerging working class, other opportunities exist. The Grameen phone , started by a friend of Yunnus, places a cell phone in the hands of one person per village. That person then sells airtime to (usually) her fellow villagers for a premium. Not only has this system connected families, increased business and improved communication; it has also essentially created low-cost ATM machines .

 

Another example of great bottom-up marketing and implementation is Danone's program in India. Partnering with the Grameen Bank in Bangladesh, Danone aims to provide safe food, jobs and sustainable growth through yogurt!

 

Companies are using sustainability and empowerment to flip the pyramid and find new sources of publicity, revenue and profit. Can you?

 

 

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A new study to analyze the economic value of biodiversity has been commissioned by the EU. More info here. This is an important step, and has largely been inspired by the Success of the Stern Commission, which analyzed the economic impacts of climate change.

 

While greenhouse gases and climate change have been at the forefront of the sustainability mouvement, it is important to recognize that it is not the only issue. Diversity of plant and animal life on the planet has been in rapid decline since the begining of industrialization (and even before then). We are losing species which may have many tangible benifits such as cures for diseases and many intangible benefits such as the support of local communities, farming and other natural activities upon which we all rely. A recent example is the (largely) inexplicable collapse of bee hives this past year .

 

Hopefully this important study will inspire citizens and corporations to take action against the loss of biodiversity.

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A great talk was given at the recent TED Conference with regards to the future of geo-engineering. David Keith: A surprising idea for "solving" climate change . The talk raises important questions of not wether or not we should do geoengineering, but rather makes the argument that we should at least study it.

A particularly convincing argument is the rise of China and the likelyhood that they (or another country) may unilaterally do geoengineering. With such a risk, we must eveluate the benifits and risks that geo-engineering poses.

We must also create a international treaty to bind countries to a series of protocols, not unlike the nuclear non-proliferation treaty. Such a treaty will help countries work together and reduce the risk of unilateral action.

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