THE GALLON ENVIRONMENT LETTER
Canadian
Institute for Business and the Environment
Fisherville,
Ontario, Canada
Tel. 416
410-0432, Fax: 416 362-5231
Vol. 16, No. 6, October 6, 2011
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ABOUT THIS
ISSUE
Our editorial in this issue addresses the
question of partnerships in sustainable development activities. GallonLetter
sees this as a key element in moving forward on a more sustainable path and we
will be returning to it in future issues.
Our theme in this issue is the linkage between
supply chain management and corporate social responsibility. A company is
unlikely to have a successful CSR strategy unless its supply chain is complying
with similar CSR requirements. Supply chain is not just the raw materials used
by the company but also all of the inputs to a production process, especially
energy, water, and human labour. As part of our review of supply chain and CSR
we review an excellent new book entitled Green to Gold Playbook and look at some
exemplary case studies as well as a very interesting study published in
association with the Network for Business Sustainability at the University of
Western Ontario. One engineer reports that green buildings are not yet achieving
much in the way of reductions in energy use by the buildings sector. That
corresponds to GallonLetter's impression. We will be reviewing this subject
again in a future issue.
GallonLetter has not reported too much on the
Keystone XL pipeline issue because it is being quite well-covered in the daily
press but we are bringing a report on the opposition that has developed in the
state of Nebraska. We suspect that there will be much more to be told about the
KXL proposal in the weeks ahead as the US Administration gets its teeth into the
issue.
We have two Letters to the Editor, both very
thought-provoking, in this issue. We don't usually feel that it is appropriate
to comment on such Letters but we have made an exception this time. We are all
for debate and argument but buttressing an argument with an opinion of the views
of a now-deceased person on a current situation seems to us to be presenting a
somewhat intractable point of debate. We always encourage Letters to the Editor,
no matter what their perspective, and invite you to send comments on current
articles or ideas for new articles to editor@gallonletter.ca
GallonLetter's editor does not hide and we
have a small notice of two events where he will be speaking later this Fall.
Invitations to speak on appropriate topics at public or corporate events are
always accepted, subject to time and economic considerations.
The CEO of Bullfrog Power spoke recently at
the Toronto Board of Trade. We highlight some of his remarks. The Toronto Board
of Trade appears to be somewhat in favour of toll roads. GallonLetter found this
surprising for a business group and brings you a report on the situation. The US
EPA recently produced a Guideline for siting of schools. The Guideline has
interesting implications for siting of any building in which children
congregate, including homes, and for existing emitting activities that are close
to homes and schools. GallonLetter reports appropriately. The Canadian
Commissioner of Environment and Sustainable Development, from the Office of the
Auditor General of Canada, does not have much good to say about the Government
of Canada's record on oil sands, environmental assessment, or climate change. We
bring you up to date. We end this issue with our usual funny (peculiar) quip,
this issue under the heading Where has Elizabeth May Gone? We encourage you to
follow the link - one of the more inspiring videos we have seen in at least a
short while!
Our next issue will include a climate change
update. The annual United Nations Climate Change Conference is scheduled to be
held in Durban, South Africa beginning on 28 November 2011. We will look at the
progress that has been made, or not made, in the last year. As the Commissioner
of Environment and Sustainable Development has reminded all Canadians, the Kyoto
Protocol expires at the end of 2012, Canada has been one of the non-complying
countries, and there needs to be a replacement. We will provide our forecast on
what will happen in Durban.
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SUSTAINABLE
BUSINESS DEVELOPMENT OFTEN REQUIRES PARTNERSHIPS
Walmart has recently announced plans to
install solar panels on the roofs of up to 60 more stores in California, meaning
that over 75% of its stores in that state will be meeting between 20% and 30% of
their electricity needs from solar power. The Company's goal is to install solar
power on more than 130 store rooftops by 2013.
GallonLetter commends Walmart for its solar
initiative but also notes that 130 stores represents less than 1.5% (one point
five percent) of Walmart stores worldwide. Southern Ontario, for example, is at
the same latitude as northern California and generally offers more annual
sunshine hours than much of the Pacific state. What are the barriers preventing
greater adoption of rooftop solar in Canada?
Many of the barriers are economic, due in part
to the low price of electricity in much of Canada, and in part to the high cost
of photovoltaic panels. However, government programs are helping both consumers
and large facility owners to overcome some of the economic
barriers.
The biggest barriers are often related to the
nature of the facility itself. Retail stores, industrial plants, and
institutional facilities are often quite short-lived buildings. Many are likely
to be demolished or substantially rebuilt in less than 20 years. Roof structures
are often insufficient to take the load of photovoltaic panels. It may add
substantially to the cost of a solar project to have to reinforce the roof to
take the additional load or to extend the planned life of the building to match
the life of the panels. Hopefully Canadians will soon see new buildings
constructed with solar panels installed from the beginning or at least with
roofs strong enough to take the load of panels as soon as the economics improve,
which they are doing very rapidly.
However, the biggest barrier is one that might
best be described as 'corporate culture'. Executives representing owners of
large buildings regard their company as being in the retail, manufacturing, or
service sector and not in the electricity generating sector. Hence they consider
that they are not interested in getting into solar power.
GallonLetter agrees with their perspective of
their business but not necessarily with the conclusion to which it leads them.
That's where the Walmart initiative is noteworthy. It is not actually Walmart
that is installing the solar panels on store roofs but a company named
SolarCity. SolarCity was established in 2006 to provide solar power system
design, financing, installation and monitoring services from a single source.
The Company claims that its solar finance systems enable homeowners and
businesses to switch to clean, solar power for less than they pay for
electricity from the local utility. It currently reports serving more than
15,000 clients residential, commercial, industrial, institutional and
governmental clients across the US and it has offices in a dozen
states.
Similar but much smaller companies do exist in
Canada but their size limits their reach and their perceived reliability. Canada
needs massive investment, which need not be government investment, flowing into
companies like SolarCity so that they can finance solar installations across the
country. Canada also needs a change of culture in the Boardroom. Executives
should recognize that the best sustainability projects, from both an economic
and an environmental perspective, may not be a do-it-yourself operation but may
instead be a partnership between your company and another that has the
expertise, experience, and financing to make the project a win-win-win for
everyone.
Paid subscribers see link to
original documents and references
here.
Colin Isaacs
Editor
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SUPPLY CHAIN
AND CSR
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GREEN TO GOLD
PLAYBOOK: SOURCING
Sourcing and Procurement is one of the
chapters in a 2011 business book called The Green to Gold Business Playbook by
Daniel Esty and P. J. Simmons. Although this chapter focuses specifically on
procurement, in fact most of the other chapters on greening strategies have some
relation to the supply chain including: office activities, buildings and
facilities, information technology, product design, manufacturing and
processing, and logistics and transport.
Acting on responsible supply chain management
often costs more in time and money upfront but has benefits which lead to
profits over time. Examples include:
- improving product quality through better
inputs such as choices of raw materials
- improving production processes and
efficiencies reducing waste and the need to cleanup.
- reducing costs through improvements within
the supply chain including transport and logistics
- improved inventory management. A lot of money
can be lost and waste generated if products fail to meet legal or customer
standards.
- protecting corporate reputation by avoiding
scandals associated with eco-risks. Engaging suppliers to improve
environmental and social performance of the supply chains helps achieve this
goal.
- higher customer value in providing products
with less negative impacts on the environment. This helps to retain customers
and gain new ones.
The basic "plays" in the chapter
include:
- Identify critical suppliers. This should
include both materials and manufacturing inputs such energy, water and
chemicals for products as well as administrative goods such as office
supplies, IT equipment, furniture and vehicles as well as services.
- Identify the issues to address
- Implement a green procurement policy.
Companies can choose to use labels such as Forest Stewardship Council, Marine
Stewardship Council and Green Seal. Some companies create their own resources
e.g. Staples publishes an online "Green Guide" catalogue for customers seeking
eco-office products.
- Draft a Supplier Code of Conduct and ensure
compliance. For example, Home Depot has a whistleblower telephone line where
anybody can report violations and conducts announced and unannounced audits of
supplier facilities.
- Engage suppliers in dialogue. While it might
seem easier for large companies to just dump suppliers when there is a
problem, mutually solving problems and treating suppliers as partners is
recommended as a better way.
- Consider an industry wide collaboration.
Companies may not individually be able to apply enough pressure for effective
environmental change by their suppliers but collectively can effect change.
The goal is to achieve a higher sustainability standard for the whole industry
so that competitors can't escape the cost burden (if any) of the environmental
changes.
- Undertake formal audits.
- Use existing information about suppliers such
as their CSR reports and reporting to other data collectors such as the Carbon
Disclosure Project.
- Request more information. Companies are
encouraged not to create too much of a burden for suppliers and not to ask for
information that they themselves haven't produced. Live meetings rather than
forms are also recommended.
- Set priorities for audits so suppliers with
the most likelihood of disrupting supply, threatening product quality or
impacting operating costs. These critical suppliers may be subcontractors,
hazardous waste disposers or contract manufacturers.
- Go on-site for critical suppliers.
- Develop a supplier mentoring program. IKEA
has four levels of supplier targets; as a supplier reaches the goals of that
level, the supplier is expected to set goals for the next level. IKEA has also
provided loans to support investment in more energy efficient
technology.
- Reach deeper into the supply chain. For
example, Herman Miller seeking to control the chemicals in their products
tracks the chemicals used by their direct suppliers (tier 1), to the direct
suppliers' suppliers (tier 2) and as far down as tier 4 and tier 5.
- Optimize with technology. Software can track
supplier performance and record lifecycle data.
- Form cross-industry collaborations. Nike and
Patagonia collaborated to increase the availability of organic cotton. A group
of companies including General Mills and Unilever formed AIM-PROGRESS to
improve sustainability sourcing.
Daniel Esty is also the co-author of a
previous book called Green to Gold. He is the Hillhouse Professor of
Environmental Law and Policy at Yale University and chairs a consulting company
Esty Environmental Partners. P. J Simmons is Chairman of the Corporate Eco
Forum, a network of corporate executives.
Although GallonLetter's corporate library has
thousands of volumes, this type of high-quality overview of many aspects of
corporate responsibility especially with lots of advice and recent references to
weblinks and other resources in each chapter is not as common as one might think
- definitely worth adding to the library. For those really well informed, some
of the chapters may be a useful refresher but for many others there will be many
nuggets.
and
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AZURE
DYNAMICS: SUPPLIER PARTNERSHIP WITH FORD WINS ECOOGLOBE
AWARD
The EcoGlobe'11 awards presented in Germany
for the fifth time on September 6, 2011 are self-described as the first
internationally recognized environmental award for the mobility industry. They
are awarded by a group including the German University of Duisburg-Essen and the
German auto club.. The Ford Transit Connect Electric won for the award for the
category of production vehicle model with sustainability factor. In its German
subsidiary announcement, Ford mentions the close partnership with Azure
Dynamics. AZD develops and produces proprietary electric and hybrid electric and
electric components and powertrain systems for light and heavy duty commercial
vehicles. Among customers for the Transit Connect are Canada Post and the
Toronto Atmospheric Fund. Recently the Ontario Ministry of Transportation
ordered two of the vans. The Transit Connect Electric vehicle has a range of
80-130 km (50-80 miles) on a single charge of its lithium battery and a load
capacity of 500 kg. The vehicle is intended for commercial users who commonly
travel known short routes with lots of stops and starts in the
city.
Headquartered in Oak Park, Azure Dynamics AZD
has offices in Vancouver and Toronto. ADZ's theme is directly related to supply
chain, "AZD is in the business of making a difference to our clients - by making
a difference to our environment.
Paid subscribers see link to
original documents and references
here.
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A REVIEW OF
INTERNATIONAL SUPPLY CHAIN MANAGEMENT
"Globalization = public concern about social
and environmental issues = increased complexity in managing supply
chains."
A key result of globalization is that goods
are being produced in countries with developing or transitional economies. The
global supply chain leads to a large cheap labour force and low overhead but
there are risks associated with cultural, language, legal, political, procedural
and other factors varying across borders. The topics relating to the supply
chain are similar to those which affect the greening of companies including
environmental issues such as reducing greenhouse gas emissions, reducing waste,
designing products for end-of-life recovery, social and ethical issues such as
working conditions, bribery and corruption.
Despite policies, codes of conduct,
inspections and audits, companies still experience environmental and social
failures in the supply chain. Apple has been in the news because a large portion
of the supplying factories failed to comply with safety requirements and to pay
overtime. Shell and Halliburton have paid multimillion fines to the Nigerian
government for bribery and corruption. BP's Deep Horizon oil spill was a result
of complex interaction of BP, Transocean and other supply chain members.
A review of studies and literature on the
social and environmental aspects of the international supply chain and a
framework of best practices was conducted by Dr. Stephen Brammer at the UK
University of Warwick and coauthors and published in association with the
Network for Business Sustainability at the University of Western Ontario. The
conclusions identified some of the reasons, motivations and payoffs companies
identify about their supply chain management including:
- Why: Consumer pressure is the most prevalent
reason followed by government legislation and regulation in turn followed by
non-governmental groups playing a strong role. Media, then peer/industry
pressure, followed by investors, liability risks and employee concerns play
some role but combined less than NGO pressure.
- Motivation: Customer retention/satisfaction,
followed by risk management, then compliance with regulation and managing
firm's reputation play the most important roles in motivating companies to
improve the social and environmental performance of their supply chain. Most
of these can be described as reactive or defensive. In earlier research,
relatively little of the literature shows "pro-active" motivation but in more
recent literature, more motivation is proactive such as moral obligation
rather than risk avoidance.
- Payoffs: Less than 20% of the studies provide
evidence of the outcomes of sustainable supply chain practices and only two
studies provide indicators for finances and performance but even these
indicators are perceptions not really measurements. Where benefits are
described, these tend to be those experienced by the company rather than for
society. Examples of benefits include better ability to attract and retain
employees, reduced employee turnover, increased attraction to customers and
better likelihood of compliance with government regulation. The benefits may
be somewhat intangible but some companies see them as substantial.
- Making Supply Chain Management Work: Where
companies have strong CSR programs, the organizational purpose and the
management of the sustainable supply chain are easy to see. Other areas which
link to the supply chain are clarity and breadth of communication of policies
within the company and guidance to specific situations.
- Common elements: Codes of conduct are the
most common followed by audits and monitoring. Managed processes for selecting
suppliers follows and is in turn followed by 3rd party certification such as
ISO14001
Top-down
Supply Chain Management Mostly a Mistake
Problems with some of the practices of
managing the supply chain include:
- top-down and unnegotiated approaches. For
example the codes of conduct are often unilaterally declared by the purchasing
company. The codes are often out of context for priorities in local
conditions. The codes are often poorly communicated increasing resentment and
lack of compliance by suppliers. The codes are static and tend not to reflect
changes happening in society. The gaps and lack of understanding can lead to
unforseen problems for the buyers.
- The tendency is to shut-out suppliers who are
newer or smaller scale who lack the capacity. Many suppliers may not have the
ability to implement sustainable practices. Certification may cost too much.
Selecting only from those suppliers already capable means that eventually one
supplier may have a monopoly as the firms in developing economies may not
develop capacity for infrastructure without support and investment from the
buying firm.
- If the buyer is too ready to ditch the
supplier if there are infringements of the code, then the supplier with little
hope of a longer term relationship may not seek to invest in most sustainable
practices because of the high risk of losing the contract. Over time,
elimination of potential suppliers may result in the only suppliers being
those which don't have sustainable practices anyway. Lack of loyalty to the
supplier may lead that supplier to be more opportunistic and less trustworthy.
Examples include keeping different sets of books to prove workers receive a
reasonable wage even though they don't, even different factories one suitable
for inspection and cutting the quality of the materials and the product.
Auditors may also fail by making inaccurate assessments and by accepting
bribes for "good" assessments.
- Inspection and auditing sends a clear message
about lack of trust. Monitoring may lead to hiding poor practices which may in
the end prove to have more serious consequences than if things were out in the
open
- The requirements of the firm may force the
supplier to act unsustainably e.g. too tight time lines, too complicated
production requirements, untimely payments (some large companies now pay only
after 60 to 120 days after delivery) and too low prices for product. Companies
have shifted their sourcing to offshore because the product is cheaper. The
reason the product is cheaper is often because both people and the environment
are being exploited. Basically globalization has led to a race to the
bottom.
Adaptation and
Learning
The review suggests that better than the
tick-box approach is building relationships and working with suppliers, NGOs and
others such as broader industry groups to develop specific approaches that
reflect the interests of the local stakeholders. Support and investment to help
suppliers meet the buyer's needs and less tendency on the part of the buyer to
remove the contract are essential. Instead of a pre-formulated code written in
New York or London which ignores the local priorities, better is learning from
experience to develop practices for the future through communication and
measurement. Some of the codes make useless statements e.g. complying with local
labour laws when few developing countries have any laws at all that protect
worker rights. Environmental management certification requirements such as ISO
14001 aren't a safe investment for many suppliers without a long contract
duration. A supplier may have poor sustainable practices but step by step
improvement can be valuable both to the supplier and the buyer. Except for the
most serious of breaches of the code, withdrawal from the contract should be the
last threat. Examples of approaches include key performance indicators for
suppliers at different levels of capacity for good practices, awareness seminars
and support for developing solutions, and performance measures which are
practical and valid. Probation periods, action plans for non-compliant
suppliers, a risk register to monitor non-compliance, informal intelligence by
local groups, supplier recognition and reward programs are actions which
exemplify partnership rather than top-down approach. Some buyers invest in
suppliers such as providing low interest loan rates for equipment.
Paid subscribers see link to
original documents and references
here.
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CANADIAN
BUILDINGS: SUPPLY CHAIN DRIVEN BY FIRST COST
Although some new buildings in Canada have
achieved as much as 70% energy savings compared to conventional buildings, Lee
Norton, retired engineer and editorial advisor to the business magazine Canadian
Consulting Engineer wrote in a recent issue that engineering efforts aren't
making much of a dent in the amount of fossil fuel that is consumed by the
building sector, which may be responsible for up to 48% of carbon emissions. (US
Energy Information Administration).
Quick returns and first cost are still the
major driver for buildings. The tenants pay the higher energy costs later while
the developers just wants to complete the building to start getting a return on
investment. The same capital cost restraints occur at the end of the service
life of the equipment when there is a tendency to replace with the same type of
inefficient energy-using equipment. Lack of measuring when different equipment
or operation measures are implemented means building operators often don't know
what changes and technology can reduce both costs and energy consumption.
Building codes have too low standards and
could achieve over 50% energy improvement just using known and readily available
technologies such as energy and heat recovery ventilators, condensing boilers
with low temperature loops and heat exchangers for incoming air. Not all the
solutions have to be technical e.g. building orientation to avoid heat buildup
and white roofs can help to reduce energy use. Building codes fail to set a high
enough standard but in some cases pose a barrier. For example, codes which
require light in emergency stairwells to be turned on all the time result in
empty buildings consuming more energy than they should. In Europe,
motion-activated lighting turns lights off when nobody is in the area.
While engineering firms might try to interest
their clients in better energy efficiencies, they might lose their clients to
competing engineers offering lower first cost solutions. Norton writes "While it
would be nice to limit yourself to clients, who think like you do, engineers
usually want, and sometimes need, all their paying clients." Norton thinks
mandatory energy efficiency requirements for buildings and incentives and grants
from governments are needed.
Paid subscribers see link to
original documents and references
here.
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GREENHOUSE GAS
PROTOCOL: VALUE CHAIN AND PRODUCT STANDARDS
The Greenhouse Gas Protocol, which claims to
be the most widely used international accounting tool for government and
business leaders to understand, quantify, and manage greenhouse gas emissions.
has two new standards with an official launch of October 4, 2011. One is a
Corporate Value Chain Standard and the other is a Product Life Cycle Accounting
and Reporting Standard. The standards are meant to take into account both
upstream and downstream greenhouse gas emissions associated with the company's
products and operations.
Setting
Boundaries Between Emissions by Suppliers and the Reporting
Company
The Value Chain standard addresses Scope 3
emissions. Scope 3 emissions are often the largest source of GHG emissions and
are defined as separate from direct and indirect emissions controlled by the
reporting company::
Direct emissions Scope 1: emissions from
operations that are owned and controlled by the reporting company
Indirect emissions Scope 2: emissions from
generation of purchased electricity, steam, heating or cooling
Indirect emissions: Scope 3 All other indirect
emissions in the value chain both upstream and downstream e.g. production of
goods and services, transportation, use of sold products.
Scope 1, 2, and 3 are mutually exclusive and
when added together represent the total corporate GHG emissions. Scope 3 are
emissions owned and controlled by entities other than the reporting company in
the value chain including suppliers of materials, travel, logistics, lessees and
lessors, employees and customers and waste management providers.
"Boundaries" are an important element in the
standard not only for separating Scope 3 from Scope 1 and 2 e.g. how does the
company decide what is owned and controlled by itself but also what is excluded
in emissions and what is included
e.g. upstream transportation and distribution
upstream includes all third party transportation and distribution purchased by
the company in the reporting year including that between Tier 1 (direct
suppliers) and the company, between company's own facilities and any purchased
services. Guidance is also given on various topics and to clarify ambiguities.
For Scope 3 emissions, companies account for the total cradle to gate emissions
of purchased capital goods in the year received without amortizing the emissions
over the life of the product.
The Greenhouse Gas Protocol is a joint
undertaking of the World Resources Institute (WRI) and the World Business
Council for Sustainable Development (WBCSD) and its approach to calculating GHG
emissions serves as the foundation for most major GHG standards.
Paid subscribers see link to
original documents and references
here.
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Honda: Supply
Chain and Chemical Substances
Honda in its 2010 North American CSR report
described efforts to work with suppliers to reduce use of substances of concern.
Honda's supply chain includes 600 original equipment manufacturers and parts
logistics companies in North America. A single Honda vehicle contains between
20,000 to 30,000 parts.
Since 2004, Honda has sought to reduce
hazardous materials and substances of concern SOCs in Honda products. The Honda
Chemical Substance Management Standard lists chemicals which should not be used
anymore, chemicals with planned phaseout and chemicals being monitored by Honda
for possible elimination. A Supplier Substances of Concern Management manul
contains Honda's expectation for producers of parts and materials used in Honda
products in relation to SOCs and recyclability.
For example, Honda is seeking to eliminate
polyvinyl chloride, mostly to significantly reduce chlorine which is found in
shredder residue. It has eliminated PVC in underbody coating in all North
American manufacturing plants and is working to implement. PVC-free components
such as door sealants, floor mats and seat covers. The biggest challenge is the
use of PVC to coat electrical parts and wires. Of the 20 Honda and Acura models
sold in the US in FY2010, 13 models had less than 1% concentration of chlorine
in material that ends up as waste,
As with all companies, Honda is both buyer and
supplier. For products and parts shipped to the European Union, Honda has worked
with its supply chain to comply with the EU REACH regulations which requires
chemical data for substances used in products and materials.
Other
Initiatives in Honda's Supply Chain
Honda also described a number of supply change
issues including:
- the launch of its Supply Chain Sustainability
initiative, requiring suppliers to manage, collect and report on energy
use.
- goals to increase the number of ISO 14001
certified tier-one suppliers in North America. 88% of tier one suppliers
(those supplying directly to Honda) had ISO 14001 in 2010, the same as in
2009.
- strategies to reduce CO2 emissions by
logistics including increasing in FY2010 to 68% EPA SmartWay certified trucks
from 45% in FY2009.
Honda's goals to minimize its environmental
footprint uses a lifecycle approach. One of the elements of the LCA is
Purchasing which includes resource consumption, air emissions, toxic releases
and waste associated with the production and distribution of component parts
manufactured by original equipment suppliers. Another LCA element is End-of-life
which counts waste and toxic emissions from disposal of Hone and Acura products
and parts.
Paid subscribers see link to
original documents and references
here.
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NEBRASKA
FOOTBALL FANS: AN UNEXPECTED KICK TO KEYSTONE XL PIPELINE?
The Governor of Nebraska, a Republican and
former supporter of the TransCanada megapipeline has objected to the routing of
the pipeline through the state's Sand Hills and over the Ogallala Aquifer, the
water supply for Nebraska. Nebraska has no legislation which could be applied to
a demand to change the routing but a special session of the legislators could be
called even if this is said by supporters of the pipeline to be the final
hour.
In September, a video featuring a 1978 Huskers
football squad ended with "Brought to you be the Husker Pipeline" and
sponsorship by TransCanada. Shown on a big screen during a football game at
Memorial Stadium (home of the Cornhuskers team) at the University of Nebraska in
Lincoln, the video caused such an outcry from the fans that the athletic
director, Tom Osborne, a famous football coach, cancelled the sponsorship. Some
speculate that the football incident will leave an indelible impression on state
lawmakers.
GallonLetter thinks that KXL is all about
supply chain issues. The pipeline crosses land owned by others. Canadian labour
organizations want their members to be refining oil and providing services
relating to refineries instead of shipping the bitumen to the US. Some
environmental activists are concerned about spills and the easing of oil
shortages in the US due to the big flow making climate change goals unreachable
but many are protesting because the supply is oil from the oil sands,
contributing more to environmental degradation, greenhouse gas emissions and
pollution. Nebraska probably could require the pipeline to be rerouted which may
make the project financially unfeasible. Whether that happens or not, we think
this story is worthwhile for companies to remember before they get overly
complacent about identifying the key stakeholders in their supply
chain.
Paid subscribers see link to
original documents and references
here.
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LETTERS TO
EDITOR
Subject: Judging Political Records -
GallonLetter V16 No.
4
Hi Colin.
With regard to the David Suzuki and Peter
Tabuns headlines on the forthcoming Ontario provincial election, the elephant in
the room is of course nuclear power, so while we want to maintain the important
Green Energy Act (GEA) with Feed in Tariffs etc. (Liberal Party policies),
however in the actual David Suzuki article, he makes it clear that he is against
nuclear expansion for the many reasons we know about (see the DSF website as one
example). So both Peter Tabuns and David Suzuki are in agreement about
questioning where the billions of dollars should be going - to energy efficiency
and conservation which the Liberals have cut - NEGAWATTS - as Amory Lovins
described this years ago, sheer folly given the waste of electricity in
appliances, buildings, machines, workplaces, etc.. as well as renewables which
are absolutely necessary for the sustainable future that we want and need. It’s
not rocket science and there are many studies describing how it can be done (
see also the DSF website, Pembina Institute, Canadian Environmental Law
Association,, Ontario Clean Air Alliance, Rocky Mountain Institute, etc...). The
choice is not coal or nuclear but another paradigm completely. The health of
people and the planet is in jeopardy with the continuing emissions of toxicity
of both those dirty technologies. What will they say about us in future decades
with the increasing cancers, birth defects and other health
problems?
Since the Fukushima Reactor ongoing disaster
in Japan, many countries have opted out of nuclear expansion whereas Ontario
because of the nuclear industry's pressure and hold on the current government,
is alas missing the boat. So while we want the good things the Liberals are
supporting we certainly don't want the bad. That will make the choice difficult
for many environmentally concerned Ontario voters - but not for
all.
Sincerely
Dorothy Goldin Rosenberg MES, PhD
Environmental Health Lecturer, University of
Toronto
Board Member, Prevent Cancer Now
Toronto Cancer Prevention Coalition
(Occupational and Environmental working group)
Canadian Cancer Society, Stakeholder Advisory
Group (Occupational and Environmental concerns)
Volunteer Education Coodinator, Women's
Healthy Environments Network
Film Producer "Exposure: Environmental Links
to breast Cancer", "Toxic Trespass" on children's health and the
environment
Grandmother of three beautiful girls who
together with all their generation and those to come, deserve a healthy peaceful
planet - the only one we have.
***
Subject: GallonLetter
Vol. 16 No. 5
Here is a perspective (business) on the
environment. Some might say Greenwashing. "The electricity company has the
vision of "Powering B.C. with clean reliable electricity for generations." this
statement would make BC'ers burst out in laughter. Things like sustainable
development are an oxymoron. There are a few nuggets like BC Hydro triple based
accounting, "while these indexes they are popular amongst people in the
financial services sector with interests in the triple bottom line"
.
As someone who worked with Gary Gallon for
three years, I can tell you that he would embrace an idea that would be much
more hard hitting than the baby food dished here. For example, this news letter
should have 4 or 5 enviro critiques of BC Hydro's operation. Wow would that be
an eye opener. If Gary was in charge, he would create a eco newsletter that is
by the people, for the people. Then he would send it out to all businesses so
they could see what the public thinks on them.
It is obvious to British Columbians, that BC
Hydro has been an environmentally destructive, bloated, fascist, out of control,
crown corporation. This Gary Gallon letter states the opposite. Gary would be
rolling over in his grave if he read this below letter.
Rod Marining
GallonLetter Responds: The theme of our last
issue was on elements of reporting on corporate social responsibility with
specific companies used as examples but with no endorsement on our
part.
Gary Gallon, the originator of Gallon
Environment Letter, who died in 2003, was always sympathetic with environmental
groups but also as energy/environment advisor in Ontario to the Ontario Liberals
in opposition headed by David Peterson, and then in the later 1980s working in
the office of Liberal Environment Minister Jim Bradley as government, was more
active on process: developing policies to protect the environment such as
requiring Ontario Hydro to conduct environmental assessment for nuclear
expansion plans. Gallon wrote the Gallon Environment Letter from 1997 to 2003
which he described as "A business and environment electronic newsletter
published twice a month focussing on economic issues related to environmental
developments in Canada, the United States and elsewhere in the world. Provides
up-to-the-minute analysis on government decisions and policies that will affect
your business, organization, or department." Most of any particular Letter was
news and announcements although of course, the selection of the articles was an
editorial decision. He wrote editorial opinion as well but he mentioned BC Hydro
a half a dozen times at least without feeling the need to critique the company
as Marining suggests he should/would have.
Marining was one of the community of
co-founders of Greenpeace which included journalist Robert (Bob) and Bobbi
Hunter, Gary Gallon, Patrick Moore, Paul Watson and others beginning in 1969.
Campaigns were against whaling, seal hunting and nuclear weapons testing.
Greenpeace and Sea Shepherd were often active on the same campaigns. After
Hunter's death in 2005 one of the Sea Shepherd ships was named after him. Hunter
wrote a number of books on the environmental odysseys of Greenpeace and Sea
Shepherd. Bobbi, his wife, was part of the fledgling group Greenpeace
International of which Bob was the first President. Bobbi became the group's
treasurer and as she said in a guest blog on Green Heros was "the first woman to
place my body in front of a harpoon to save a whale." Bobbi signs her guest blog
with Eco-Activist. Their daughter Emily has edited a book of essays by a new
generation of eco-warriors, which Marining mentions in his blog.
Rod, based in British Columbia until radiation
concerns caused him to leave the west coast, continues to campaign on
environmental issues including crewing and campaigning with Sea Shepherd ships,
the other one called the Farley Mowat. He has written in favour of no cosmetic
use of pesticides and against developments such as power projects which threaten
the habitat of endangered species He sees higher value in the natural state
compared to industrial development. GallonLetter sees environmental activists as
key to alerting companies, government and the public to threats to the
environment. Rod has spent a lifetime on that work and has more than earned the
designation Eco-Warrior.
Hunter, Emily. The Next Eco-Warriors 22 young
women and men who are saving the world. Conari Press, 2011. ISBN: 9781573244862
http://www.nextecowarriors.com/
[also available as ebook].
Paperback $19.95.
****************************************************
GALLONLETTER
EDITOR SPEAKING AT TWO UPCOMING EVENTS
GallonLetter's Editor will be speaking at two
upcoming events in Ontario:
On 20 October 2011, he will be speaking on a
post-election panel at an Ontario Environment Industry Association Breakfast
meeting. The meeting runs from 7.30am to 9.00am. At the time of going to press
the location is still uncertain but it will be in downtown Toronto. Follow
www.oneia.ca and click on Events for details and registration (fee
required). Colin Isaacs is a former member of the Ontario Legislature and
Environment Critic for the New Democratic Party.
On Saturday 5 November he will be speaking at
a public information event on the subject of the Dufferin Eco-Energy Park
sponsored by the Mono Mulmur Citizens' Coalition. One of the local issues is
gasification of waste and his remarks will particularly address that subject.
The event is from 9.00am to noon at the Horizons Event Centre behind Mono Plaza
on the east side of Highway 10 north of Orangeville. All are welcome.
****************************************************
BULLFROG POWER CEO SPEAKS TO TORONTO BOARD OF
TRADE
Bullfrog Power is arguably Canada's best known
supplier of renewable electricity. According to its CEO, Tom Heintzman, speaking
recently to a luncheon meeting of the Toronto Board of Trade, launched in
September 2005, Bullfrog is now supplying 1000 businesses and 8000 homes in six
provinces. Bullfrog supplies green natural gas from landfills and digesters as
well as electricity from renewable sources of supply.
Heintzman's topic was the Role of Corporations
in Leading Clean Energy Policy and he spoke primarily on voluntary markets, in
which people and companies are choosing to buy renewable energy without any
regulatory requirement that they do so. In the United States, there are more
than 850 green power utility offerings. In many states, the amount of
voluntarily purchased renewable electricity is exceeding the amount of regulated
power purchased. In most states, utility customers have a check box on their
bill asking if they wish to purchase green power. Bullfrog's one ask of
governments in Canada is to implement a similarly simple opt-in allowing utility
customers to choose green power with a simple check on their utility bill
insert.
He said that the main reasons that many of
Canada's leading companies are voluntarily purchasing green power from Bullfrog,
at a premium price, vary by company but include:
- to reduce the company's environmental
impact
- to help drive the availability of renewable
power
- to gain experience in emissions management
and reporting
- to motivate employees, especially
environmentally engaged employees
- to spark innovation - paying a premium for
electricity encourages innovation to reduce consumption
- sales and marketing, creating a brand or
corporate association with cleanliness and wholesome living (eg. Kraft's Dads
cookies are now entirely produced with green natural gas and green electricity
and information about the energy used is provided on the cookie
package)
- meeting supply chain requirements (eg some
Requests For Proposals now include green requirements)
- in the area of finance, increasing appeal to
ethical investors, obtaining listing on sustainability indexes, carbon
disclosure activities, etc.
- in the area of governance, helping to meet
requirements of corporate social responsibility initiatives, not only reducing
carbon emissions but also improving local air quality
- contributing to local economic development as
Bullfrog seeks to link new generation facilities to meet its customers' needs
with local employment opportunities.
- leaving a legacy. Heintzman says that many
corporate leaders are eager to leave a legacy of their time in office and
nothing can do this better than using renewable power for the industrial
plant.
Bullfrog does not look for government
subsidies for the renewable generation facilities which meet its customers’
needs but instead invests its revenues in new facilities outside of government
initiatives. Heintzman sees local renewable power as a key driver for local
economic development. He is also a real enthusiast for voluntary action by
Canadians to address the challenge of climate change.
Paid subscribers see link to original documents and
references here.
****************************************************
TORONTO BOARD OF TRADE ON TOLL ROADS
Perhaps the day will come when the reality
changes but it is still a surprise when a business periodical, let alone a
business organization magazine, publishes an article with an environmentally
sensible perspective. Thus Gallon Environment Letter's Editor was amazed to read
an article supporting road tolls in ONBOARD, the magazine of the Toronto Board
of Trade. The surprise was slightly muted when I noticed that the article was
written by the VP Sales of Kapsch TrafficCom AG, an international supplier of
electronic toll collection systems.
In its Ontario election 2011 position paper
entitled Reaching Top Speed, the Toronto Board of Trade comments favorably on
congestion charges, such as that implemented in London, England, and toll roads,
such as the Toronto region's Highway 407. The Board even goes so far as to state
"Pursuing congestion management, for example, will enable the Toronto region to
achieve multiple objectives, such as reduced demand for infrastructure,
environmental conservation and equity in the provision of services and
infrastructure".
For the 2010 Toronto municipal election, the
Board of Trade went even further, with expressed interest in discussing such
initiatives as a parking surcharge, a gas tax, road pricing, road tolls, and
congestion charges. This is further than many Ontario environmental groups are
currently willing to go, apparently fearful of donor backlash against proposals
that look like increased taxes.
Kudos to the Toronto Board of Trade for at
least being willing to discuss these controversial but environmentally sensible
policy options.
Paid subscribers see link to
original documents and references
here.
****************************************************
SCHOOL SITING
CRITERIA MAY HAVE BROADER IMPLICATIONS
A few days ago, the US Environmental
Protection Agency published a report entitled School Siting Guidelines. The
intent of the document is to provide advice to communities and school boards on
environmental factors to consider when deciding the location of a new school. It
is not intended to address environmental aspects of existing schools but it
seems to GallonLetter that it will almost certainly be interpreted that way
despite such strong messages as "The School Siting Guidelines are not designed
for retroactive application to existing school locations or previous school
siting decisions, but rather to inform and improve future school siting
decision-making processes." In addition,
while not intended for such use, it seems to GallonLetter that the Guidelines
may be useful when considering sites for residential development (young students
spend more time at home than at school) and for potential location of polluting
activities in proximity to existing schools and homes. GallonLetter has seen far
too many situations where municipalities have allowed new subdivisions to be
constructed in close proximity to pollution sources, only to come under fire
later when homeowners and renters discover how neighbouring undesirable land use
activities can make their new home an unpleasant or unhealthy place to
live.
The over 140 pages of the School Siting
Guidelines are remarkably detailed and not too short in their description of the
impact of pollution on neighbouring land use activity. They include suggested
processes for siting of new schools and a "Quick Guide to Environmental Issues"
that seems quite comprehensive and up to date in its interpretation of issues.
For example, the section on pesticides includes the statement:
"Potential pesticide usage near prospective
school sites in rural, suburban as well as urban locations should be considered
and evaluated for potential to expose children or staff to pesticides. Where
such potential exists, steps to mitigate potential exposures should be
considered and implemented. Potential mitigation approaches
include:
- Oversight and strict enforcement of product
label use directions and drift restrictions;
- Use of drift reducing application
technologies and best management practices; and
- Buffer zones based on case- and site-specific
considerations.
In a chapter headed Environmental Siting
Criteria Considerations, the Guidelines address a very long list for Screening
Potential Environmental, Public Health and Safety Hazards. The list
includes:
- Contaminated sites
- Solid waste landfills and transfer
stations
- Formerly used defense sites (known as
FUDS)
- High-traffic roads and highways
- Distribution centers, bus terminals, bus
garages, and truck-stops
- Large industrial facilities
- Other large sources (metal platers, rendering
plants, sewage treatment plants, composting operations, fertilizer or cement
plants, large manufacturing facilities)
- Gas stations and other fuel dispensing
facilities
- Dry cleaners
- Other area/small sources (auto body shops,
furniture manufacturing and repair, wood product manufacturing or processing,
printing, electronics and chip manufacturing, charbroilers, commercial
sterilization, back-up generators, small neighborhood metal platers)
- Large agricultural growing operations
- Large concentrated animal feeding
operations
- Ports
- Rail yards, intermodal fright terminals and
major rail lines
- Rail lines
- Airports and heliports
- Power lines
- Cellular phone towers
- Hazardous material pipelines
- Reservoirs, water or fuel storage
tanks
- Geologic features
Paid subscribers see link to
original documents and references
here.
****************************************************
CANADA'S
AUDITOR GENERAL ENVIRONMENT COMMISSIONER REPORT: TOO MANY GAPS IN
INFORMATION
The fall report 2011 by Scott Vaughan,
Canada's Commissioner of the Environment and Sustainable Development in the
Auditor General's office contains two chapters one on oil sands monitoring plan
and one on climate change plans as well as a section called the Commissioner's
Perspective. One of the common themes is the information gaps: "Poor information
leaves government unable to properly manage environmental change." Canada used
to be a world leadership in environmental assessment but previous audits have
shown serious deficiencies in assessments. Vaughan is keen on providing
supportive information to the House of Commons Standing Committee on the
Environment and Sustainable Development as it conducts a statutory review of the
Canadian Environmental Assessment Act: "Done right, environmental assessments
warn us of potential problems and specify ways to fix them before they spiral
into economic and environmental costs, both today and for our children in the
future."
Climate
Change
Canada's get-tough-on-crime government is
breaking the law. In the 2009 audit, the CESD found that the 2007 and 2008
federal climate change plans were not in compliance with the Kyoto Protocol
Implementation Act. Despite the recommendations of that audit and Environment
Canada's response accepting 3 out of the 4 recommendations, the 2009 and 2010
climate change plans are still not in compliance with the Act. The plans fail to
include:
- an effective date for all measures,
- explicitly compared expected emission levels
by year with Canada’s greenhouse gas (GHG) emission obligation in the Kyoto
period,
- an adequate explanation of how an equitable
distribution of GHG emission reductions among economic sectors was
calculated
- how measures that have not been implemented
will be redressed (ie the greenhouse gas reductions not achieved will be
compensated by other measures.)
The report provides some details on how the
government's plans relates to these failed requirements. For example, the 2010
plan which is somewhat improved over 2009 still does not provide any information
about how the failure to implement the Regulatory Framework for Industrial
Greenhouse Gas Emissions in 2009 will be redressed. The Framework accounts for
over 85% of the projected emissions reductions for that year. The criticism
about information gaps is quite serious and leaves the auditor unable to
properly do his job which is holding the government to account. For
example, the 2009 and 2010 climate plans make various statements such as there
being no notable inequities among economic sectors in the distribution of GHG
emission reductions but the CESD concludes "However, we found this conclusion
difficult to confirm with the information provided."
The plans don't give a total amount of funding
the government has provided. Financial information for individual measures is
inconsistent and sometimes not reported at all. The CESD’s office calculated
that at least $9.2 billion were allocated to implement climate change With
successively lower greenhouse gas reduction targets, the cost per unit of CO2
emissions reduced rises. Because of the scarcity of information, it is
essentially impossible for parliament to link dollars spent to results achieved.
The substantial spending is not producing the needed results: Canada isn't going
to achieve the necessary reductions in greenhouse gas emissions that are
required to meet Canada's Kyoto Protocol obligations and likely not the lower
targets of Copenhagen either. Industry needs a consistent plan on climate change
to reduce greenhouse gas emissions. Since the audit, the government produced its
2011 Climate Change Plan and 2011 National Inventory.
Oil
Sands
The oil sands have cumulative effects. Both
Environment Canada and Fisheries and Oceans Canada have warned since 1999 that
more environmental information is needed to determine the combined impact of the
megaprojects in the Lower Athabasca region and in the ecosystem beyond. Lack of
data also is a problem in other environmental threats such as airborne toxic
substances and the impact on freshwater and wildlife from the oilsands as well
as long-term impacts on human health: "As a consequence, decisions about oil
sands projects have been based on incomplete, poor, or nonexistent environmental
information that has, in turn, led to poorly informed decisions."
The Phase Two of the Plan to monitor the
oilsands was released by the federal government in July 2011. Vaughan sees this
as an important step forward in terms of acknowledging the data gaps and in
setting up a detailed plan to fix them. Vaughan is looking for, "a plan that has
clear objectives, timelines, roles and responsibilities, and performance
outcomes to help Parliament track the government’s progress." The implementation
should also be guided by partnership with First Nations. The report suggests
that the plan should become a model for other Canada ecological hotspots, "from
Canada's North to the Bay of Fundy and Great Lakes regions." GallonLetter reads
that to mean that the oil sands isn't the only area where poor data leads to
poor decision-making.
****************************************************
READING GALLONDAILY
If you enjoy Gallon Environment Letter or find
it useful for your work or interests, may we recommend the GallonDaily report.
Found at www.gallondaily.com, GallonDaily provides short articles and reports on
topics of particular interest to green businesses. One article appears almost
every day Monday to Friday - we recommend visiting at least once a week. Our
real enthusiasts can also sign up for email notification as new articles are
posted. Recent topics include:
- Cleantech: “China may clean the clock of the
US”
- And the Green Energy winner is . . . the
state of Vermont
- Electric car: 250km range on a single
charge
- Beyond Coal campaigns target US
institutions
- Costs of Climate Change for Canada
- Report on gas explosion sets new standard for
safety criticism
- Data centres and environmental
reporting
- The Food Waste blame game
Industry lawsuit against reusable bag claims
update
****************************************************
WHERE HAS
ELIZABETH MAY GONE?
Readers wondering why Canada has heard so
little from Green Party of Canada Leader and MP are referred to http://watch.ctv.ca/news/#clip542077. Ms May has been in hospital for hip replacement
surgery. The clip, focusing primarily on health care, is quite entertaining.
Thanks to CTV for not overlooking Canada's Green MP.
****************************************************
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