Terrible droughts. Vast wildfires. Superstorm Sandy. Extreme weather is one of the most obvious negative results of climate change, and when it reaches “natural disaster” proportions, it can affect everything from our food supply to our homes and businesses, to our overall economic well-being.
People who are concerned by climate change say all signs point to more extreme weather events like those noted above. Let’s not forget that Superstorm Sandy was first dubbed “Frankenstorm” — it shocked even weather experts with its unprecedented formation.
In fact, last year was the warmest year on record, and the second most extreme weather year in U.S. history, according to sustainability advocacy group Ceres.
After last year’s frightening developments, which only foreshadow greater climate-related problems and dangers, Earth Day 2013 seems more important than ever. And lately all eyes are on big business and how companies can do more to stop harming Mother Earth.
Scary Math
This Earth Day, a documentary called “Do the Math” made its debut on a tour across the country. The man behind the documentary is Bill McKibben of the 350.org group, who in a recent interview with the Portland Tribune described the fossil fuel business as “a rogue industry,” releasing five times more carbon than even conservative estimates consider safe.
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McKibben has launched a fossil fuels divestment campaign urging companies to reduce the amount of CO2 released into the atmosphere. According to 350.org, scientists and climate experts say that the CO2 level needs to be reduced from 392 parts per million — the amount that is in our atmosphere right now — to less than 350 parts per million.
He explained the premise of the documentary to the Tribune: “‘Do The Math’ refers to the simple and terrifying new reality of the climate crisis: The fossil fuel industry currently has 2,795 gigatons of carbon in their reserves, five times more than the maximum 565 gigatons the world can emit and keep warming below 2 degrees Celsius, a goal agreed to by nearly every nation on Earth, including the United States.”
Many companies are making bigger stands to acknowledge and address climate change, but there are still many more that are not yet on board.
Companies Slow to Warm Up to Climate Change
When it comes to climate-related catastrophes, few industries have as much at stake as those involved in insurance.
According to a recent report from Ceres, only 23 insurers out of 184 examined have formed any comprehensive strategies to cope with climate change.
And while insurers will share the experience of being among the first to feel the pain, those responses they have made to global warming have been anything but uniform. For example, ACE (ACE) and Swiss Re are both putting money into climate change research, while Allstate (ALL) and Travelers (TRV) express “ambivalence” about the science involved, according to Ceres, and most companies are primarily relying on their Enterprise Risk Management strategies to build in any risk to the model.
There are, however, many other large companies stepping up to the plate in aggressive ways.
Thirty-three companies, including Starbucks (SBUX), eBay (EBAY), Ikea, Seventh Generation, Patagonia, and Annie’s (BNNY), have all joined forces with Ceres’ advocacy coalition, Business for Innovative Climate & Energy Policy. The coalition is pushing policymakers to pass energy and climate legislation.
The companies that have joined have signed a Climate Declaration, which asks the U.S. government to implement a national policy to combat climate change. Both corporations and individuals can sign the declaration.
The organization claims: “Tackling climate change is one of America’s greatest economic opportunities of the 21st century (and it’s simply the right thing to do).”
Changing for Good and Profit
It’s not only the right thing to do, but also the financially smart thing to do. Plenty of companies are coming to the realization that working to save the planet can also save them money — and even make them profits.
Consumer giants like Procter & Gamble (PG) acknowledge that changing business practices with an eye on sound environmental policies lowers costs and waste. They’ve also been reporting on their progress at cutting greenhouse gas emissions and water waste, using renewable energy and recycled materials, and letting no consumer or manufacturing waste end up in landfills.
Some smaller companies are trying to move us into the future with greener alternatives. Take biofuels company Solazyme (SZYM), which uses plant-based sugars and microalgae to make alternative fuels, or SolarCity (SCTY), a solar company that’s been making major headway into business and consumer markets.
And consider Tesla (TSLA), whose founder, Elon Musk, has made pointed statements about reducing America’s oil addiction. Tesla’s gorgeous electric cars are aimed to help consumers do just that. Talk about good for Mother Earth, the wallet, and Tesla’s bottom line.
Climate change’s ill effects have made themselves known, but the beginnings of progress can be seen on the horizon.
Fortunately, corporate America, investors, and regular people all seem to be coming around to the idea that we can work on greening up the planet — and maybe even saving the world.
The name Waste Management (WM) probably makes most people think of dirty dumpsters, but its business is not just about trash hauling. It’s also one of the country’s biggest recyclers, and has been able to pull off single-stream recycling, which means far fewer difficulties for customers when it comes to sorting different recyclables. In addition, Waste Management has invested in — and has begun using — technologies that turn waste into energy.
Waste Management
There’s a much more to Google (GOOG) than a search engine, Android and Google Glass. Embedded in its corporate DNA (as seen on its "Big Picture" page) is a commitment to reducing its environmental impact, which it does through everything from green energy initiatives to purchasing carbon offsets to take its footprint down to zero. Google has put serious financial weight behind its green philosophy: In late 2012, it invested $200 million in a Texas wind farm, and in 2011, it invested $280 million in a fund that helped now-public Solar City (SCTY) finance more solar installations in America, focusing on the residential and business markets
Google
Unilever (UL) is a massive multinational corporation that owns diverse brands like Ben & Jerry’s, Dove, Suave, Hellmann’s, and tons of other household names. Behind the scenes, Unilever has taken a major lead promoting the view that environmental responsibility is a win-win for businesses — reducing waste and increasing profits. The company’s most notable achievements have been its specific performance goals — for everything from water, waste and greenhouse gasses to nutrition, health and hygiene and sustainable sourcing — and more than 50 targets related to its Sustainable Living plan. Also notable: Unilever has been altering its business model with a focus on sustainability, not simply envisioning this as a nice add-on that’s not central to the business.
Unilever
Sprint (S) may seem like just another wireless service provider, but it boasts some serious green cred. Just for starters, Sprint customers have probably noticed the double-duty envelopes the company uses for its bills — they are designed to be reused for the payment’s return trip. Last year, Sprint embarked on a Buyback program for its electronics products, reducing e-waste, which is the fastest growing type of waste in America. Its buyback program is in fact revolutionary: Sprint will accept any mobile device regardless of its condition or origination, and will give customers up to $300 in account credit for the traded-in devices.
Sprint-Nextel
Some of Walmart’s (WMT) policies on labor, aggressive price controls and other aspects of its business may make for terrible PR, but the discount retail giant has long had strong environmental policies. In keeping with past initiatives, on April 15, the retailer committed to dramatically increase its use of renewables and boost its energy efficiency. By 2020, it plans to produce or procure 600 percent more renewable energy than 2010 levels, and reduce the energy intensity required for its buildings by 20 percent. In the recent announcement, CEO Mike Duke said, "The math adds up pretty quickly — when we use less energy that’s less energy we have to buy, and that means less waste and more savings. These new commitments will make us a stronger business, and they’re great for our communities and the environment."
Walmart
The massive scale of companies like these actually results in more meaningful reductions in pollution and waste. Every small step counts, and every attempt each of us makes to reduce our impact on the environment is important, whether it’s recycling, using public transportation, biking, or driving a hybrid vehicle. However, corporate giants like these do have the biggest footprints and the greatest potential to reduce waste — and in effect, they can push their rivals and suppliers to do the same.
That’s good for the bottom line and for Mother Earth.
One Step at a Time Toward a Cleaner, Greener World
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