2Sustain

The logistics sector is an increasingly significant contributor to the global economy –and it’s also an increasingly significant consumer of fossil fuels.

To me, that indicates that logistics companies are facing considerable sustainability-related risks. Are there steps these companies can take to mitigate these risks while enhancing their competitiveness in today’s increasingly complex global business environment?

A new report from RBC and Supply Chain & Logistics Association Canada (SCL) takes a detailed look at that question and ultimately, concludes that environmental sustainability should be considered both a key issue and an important opportunity for Canada’s transportation and logistics companies.

According to the report, CEOs in the logistics sector need to grapple with five specific environmental challenges: (more…)

Water is quickly becoming a significant business growth and development risk.

In fact, after polling 150 large corporations, CDP Water Disclosure found that nearly 40 percent of responding companies had already experienced disruptions in operations, increases in expenses and other detrimental impacts related to water. Of course, government entities are also increasingly concerned with water-related disruptions, and they’re seeking viable approaches for mitigating risks, as well.

Fortunately, a new group promises to offer the kind of information needed for public and private sector decision-making regarding water risks.

Launched just last week, the Aqueduct Alliance is a consortium of leading water experts from the private and public sectors, NGOs and academia. It was founded by the World Resources Institute (WRI), Goldman Sachs and General Electric, but already the alliance has added Bloomberg, The Dow Chemical Company, Talisman Energy, and United Technologies. The Coca-Cola Company is also engaged and will be providing an extensive global database of once proprietary water risk information to support Aqueduct’s work.

From the alliance’s website: (more…)

Earlier this summer, Greenpeace challenged major clothing brands, including Nike, Puma and Adidas, to eliminate the release of all hazardous chemicals across their supply chains.

I’m very pleased to report that within the past month or so, both Nike and Puma have announced significant commitments to “detox.”

Nike, the world’s largest sportswear brand, announced last week that it will eliminate the releases of all hazardous chemicals across its entire supply chain and the entire life-cycle of its products by 2020. In addition, the company has agreed to full transparency about the chemicals being released from its suppliers’ factories and to work toward the widespread elimination of hazardous chemicals from the clothing industry. Nike has said that it will publish its implementation plan within eight weeks. From the company’s press release:

NIKE, Inc. is committed to the goal of zero discharge of hazardous chemicals by 2020.

To make this a reality, NIKE, Inc. will continue phasing out hazardous chemicals in our supply chain and we will accelerate the phase out of the highest priority hazardous chemicals. NIKE, Inc. will continue to work with brands, material suppliers, the broader chemical industry, NGOs and other stakeholders to achieve this goal. We will drive towards innovative solutions for transparency in chemical management disclosure.

We recognize the path to reaching this goal must be through innovation, the application of green chemistry, and broad industry and regulatory collaboration and engagement. NIKE, Inc.’s commitment and investment towards this goal and the dedication to system change is unwavering.

We will work tirelessly to affect system change across the industry towards this goal. This commitment includes sustained investment in moving industry, government, science and technology to deliver on systemic change.

We commit to continue to share what we learn, our approaches and tools and work with others8 in finding new solutions and removing existing barriers, and to report progress towards comprehensive chemicals management.

Puma had already made a similar commitment: (more…)

The Marine Environment Protection Committee (MEPC), part of the United Nation’s International Maritime Organization (IMO), recently adopted mandatory measures to reduce emissions of greenhouse gases (GHGs) from international shipping. Approved last month at IMO Headquarters in London, these are the first-ever mandatory global greenhouse emissions plan for any international industry sector.

The new regulations apply to all ships of 400 gross tonnage and above and are expected to enter into force on January 1, 2013.

The standard for new ships, the Energy Efficiency Design Index (EEDI), is a non-prescriptive performance-based mechanism that leaves the choice of energy efficient technologies on newly-built ships up to the shipbuilder. As long as ships achieve the required energy-efficient metrics, ship designers and builders are at liberty to choose the most cost-effective methods needed to comply with these new regulations.

An additional standard, the Ship Energy Efficiency Management Plan (SEEMP), applies to ships currently in operation. The SEEMP provides a mechanism for operators to improve the energy efficiency of ships (using slow steaming, e.g.).

As you might expect, not everyone is satisfied with the IMO’s new standards. Critics note that developing countries have a six-year waiver, and the rules only apply to new ships replacing old ones. (more…)

Climate change threatens American cities with a variety of water-related risks, ranging from drought to sea level rise and increased rainfall, according to a new report from the Natural Resources Defense Council (NRDC).

The report, Thirsty for Answers: Preparing for the Water-related Impacts of Climate Change in American Cities, found that climate change will impact water supplies and waterways in communities across the country, with geography often determining the specific effects.

The first of its kind, this peer-reviewed report compiles the results of more than 75 scientific studies, data generated by government agencies and information gathered by other nonprofit organizations. Specifically, it analyzes how climate change will impact water supplies and waterways in 12 target cities:

• Boston, Massachusetts
• Chicago, Illinois
• Homer, Alaska
• Los Angeles, California
• Miami, Florida, and the Florida Keys
• New Orleans, Louisiana
• New York, New York
• Norfolk, Virginia
• Phoenix, Arizona
• San Francisco, California
• Seattle, Washington
• St. Louis, Missouri

The NRDC says climate change impacts are likely to include: (more…)