Climate + Energy Project

By Nancy Jackson

Further reflections on the Governors’ Global Climate Summit:

Hearing the Governors – U.S. and international – at the Climate Summit was certainly encouraging. Many have championed and are implementing ambitious policies to reduce greenhouse gas emissions while building green economies.

Equally impressive, however, were the large corporations that have led by example.

Wal-Mart, the retail giant that environmentalists love to hate, tops that list. Wal-Mart sent volunteers and materials to Louisiana for Katrina recovery. Experiencing the devastation of that storm led to strong environmental awareness and ambitious new goals for the corporation, including the reduction of greenhouse gas emissions to stabilize climate systems.

Wal-Mart’s sustainability goals:
· Be supplied 100% by renewable energy;
· Create zero waste;
· Sell products that sustain natural resources and the environment.

And they’re not just setting goals, they are achieving them. In 2006, Wal-Mart invited outside expertise into their stores and their supply chain – today they have 13 Sustainable Value Networks nationwide to advise on and push for meaningful changes from business as usual.

The results include 75% reduction in energy use in many stores through LED lighting retrofits, refrigerated doors, “harvesting daylight,” and demand-response pilots. Wal-Mart is installing solar generation on many of their properties and these pilots have proved successful.

On the shelves – featured prominently as the “default” choice – are CFLs. Wal-Mart carries only concentrated detergents, reducing packaging waste, shipping fuel, and shelf space…not to mention cost to both Wal-Mart and customers. Wal-Mart stores now feature organic products and emphasize local produce wherever possible.

And Wal-Mart is not just looking at its own operations, but is determined to spur changes down its entire supply chain. That is to say: Wal-Mart is demanding similar sustainability shifts from all of its suppliers, including those based in China, India, and Brazil. This effort is monumental – and for now more powerful in changing everyday practice than any international agreement.

Leaping from consumer products to international finance, Deutsche Bank spoke at the Summit as well. One of the world’s leading financial service providers (that has not required a government bailout), Deutsche Bank has “identified climate change as one of the megatrends that will be driving our business.”

As they provide advice to governments, Deutsche Bank will be advocating for a global deal in Copenhagen at the end of 2009. They acknowledge that costs will likely exceed proceeds from carbon markets, but the costs of climate change would far outweigh expenditures in the short term.

“The time to act is now, despite the unfolding economic crisis,” said Dr. Sabine Miltner, Director of Deutsche Bank. “As many governments pursue Keynesian bailouts, they should provide solid incentives for a low-carbon future. Energy efficient buildings, 21st century electric grids, substantial build-out of renewable energy, and efficient public transport should be key priorities. It is time to usher in an era of low-carbon prosperity.”

CEP applauds these and so many other forward-thinking corporate citizens. American business is frequently criticized for a lack of environmental stewardship – it’s great to recognize firms and associations (like the Greater Kansas City Chamber’s Climate Protection Partnership) who are not only doing their part, but are leading the way to a more sustainable future.