Letter from America

April 02, 2008

Letter from America

Turning on the TV in New York you cannot help but notice how the tight competition between the two high-grade Democrat candidates has mesmerised America. The contest between Barack Obama and Hillary Clinton has long moved away from issues and into an acrimonious struggle between a message of idealism and change against realism and experience.

One of the striking factors in the campaign is what is not being debated. Health care, the credit crunch, the housing market and foreign affairs are all regular subjects for speechifying. However, candidates on both the Democrat and Republican sides of the political divide are strangely silent on questions relating to climate change.

So why is this? Is it because the US electorate are just not interested in the environment? Do the potential Presidential candidates fear an environmental message would be ignored by the media as Al Gore has claimed in the past? What about the risk of a backlash from corporate America? Actually, it appears to be none of these things. In fact, a remarkable bout of consensus has broken out over all things environmental on the US scene.

The candidates all accept the arguments on Climate Change. It is likely that whoever wins the Presidential race is likely to follow the example of Kevin Rudd of Australia and sign up to the Kyoto Protocol. There is even support for adopting a cap and trade system to reduce emissions of greenhouse gases along the model of the EU Emissions Trading Scheme. What is certain is that the environment will be a legislative theme for any new administration even if it is not visible in campaigning.

So how is this political consensus being reflected in the business community? Corporate America is not only embracing the political reality but in some areas is leading the world in innovating to look for real solutions to environmental problems. It is consumer facing businesses which are taking the lead and in particular the retailers.

It is only a short time since the conversion of Wal-Mart to the sustainability cause set the corporate responsibility world alight. Wal-Mart made commitments relating to packaging, waste reduction and emissions measurement and reduction. Wal-Mart now has a renewable energy strategy and is investing in headline grabbing initiatives such as a “green roof” in Chicago composed of living plants which is being tested to see how effective it is at helping control storm water runoff, erosion and water quality, and energy conservation.

What really excites about the Wal-Mart commitment is its global influence. With more than 68,000 supplier partnerships and more than 100 million customers a week, Wal-Mart is uniquely placed to help environmentally preferable products become mainstream part of everyday shopping around the world. Wal-Mart has recognised this opportunity and is investing in driving its commitment down its supply chain.

Wal-Mart is not alone. Safeway Inc. is similarly pioneering. Safeway has reduced its carbon footprint by over 20,000 metric tonnes of carbon dioxide by adopting a blend of 20 percent biodiesel and 80 percent petroleum diesel for its distribution fleet. A further 73,000 tons has been saved by a comprehensive fleet management programme combining route-optimization software and driver training.

As a company whose heritage is deeply rooted in the outdoors, Timberland has taken a leading position on climate change investing in the generation of renewable energy from solar and wind, purchasing renewable energy and offsets and planting trees to store carbon.

For its products, Timberland uses life cycle analysis to help make more sustainable design choices: such as the use of 100% post-consumer recycled boxes to package its footwear.

Even low-environmental impact corporations such as media companies and law-firms are getting into the environment. News Corporation has made a global carbon neutral commitment matching similar commitments made by European companies such as Pearson in the UK. The American Bar Association working with the U.S. Environmental Protection Agency has set up a Climate Challenge designed to encourage law offices to take specific steps to conserve energy and resources, as well as reduce emissions of greenhouse gases.

These are not isolated examples. Global businesses serious about environmental leadership would be well advised to keep an eye on developments in the United States.

Peter is a Director at Corporate Citizenship. He works between the London and New York offices.

Peter has broad experience across sustainability reporting, assurance, stakeholder engagement, supply chains, community investment and environmental management. His clients are global companies and professional firms including Pearson, BDO Stoy Hayward, Centrica, Richemont and Standard Chartered.

From March 2008, Peter has responsibility for leading the ground-breaking North American work from the offices in New York.

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