WHY DO WE NEED ECONOMIC SUSTAINABILITY?

The Case for Economic Development and Environmental Preservation

SUSTAINABIILTY

“meeting the needs of the present without compromising the ability to

meet those of the future”

from World Commission on Environment and Development - 1987

SUSTAINABILITYSUSTAINABILITY

"... Sustainable development is ... a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are made consistent with the future as well as present needs.”

KEY TENETSKEY TENETS

ConserveRecycle and ReuseMaximize use of Renewable

SourcesReplace toxic compounds with

less toxic

Why does business care?Why does business care?

THE “CUSTOMER”THE “CUSTOMER”

Who are our customers?ConsumersBanksAdvocacy GroupsStockholdersGovernmentRegulatory AgenciesUnions

THE “CUSTOMER”THE “CUSTOMER”

Supply-Chain PartnersMany “name” brand companies are

requiring their suppliers to demonstrate their pursuit of sustainable business practices in order to do business with them.

THE “CUSTOMER”THE “CUSTOMER” Why are businesses interested in Supply-Chain

Partners? Protect company image and “Brand” Ensure uninterrupted supply of goods and materials

from suppliers Satisfy stockholders, employees, unions, politicians,

NGOs, etc. Minimize legal exposure To avoid governmental/regulatory action Cost Control It’s the right thing to do according to many of

these company’s core values!

www.interfacesustainability.com

“As a large international company, we know we must play a part to restore the life support systems of the earth.”To be supplied 100% by Renewable EnergyTo create Zero WasteTo sell products that Sustain Our Resources

& Environment www.walmartstores.com

WeyerhaeuserWeyerhaeuser

“The need for sustainable solutions to the Worlds challenges has never been greater.”

“Weyerhaeuser people meet these needs by managing our business in a sustainable way.” Conserving resources Building relationships Using innovation to make the most out of every tree

we harvest

www.weyerhaeuser.com/environment

The Coca-Cola CompanyThe Coca-Cola Company

“The Coca-Cola Company’s environmental commitments are focused on the areas where we have the most significant and visible impacts:”Water StewardshipSustainable PackagingEnergy and Climate Protection

www.thecoca-colacompany.com/citizenship/environment

The Home DepotThe Home Depot

“We’re dedicated to making communities a better place for generations to come. [and]…to making a positive environmental impact every day.”Sustainable ForestryCertified “Green” Products

http://corporate.homedepot.comHow We’re Helping

THD and the Environment

ConAgra FoodsConAgra Foods

“Doing well by doing Good” is the guiding principle in our sustainable development program.Efficient use of resources and materialsProtect the environment and improve our

business practices. http://company.conagrafoods.com

Corporate responsibility Sustainable Development

SUSTAINABLE SYSTEMS: SUSTAINABLE SYSTEMS: PROJECTSPROJECTS

Anaerobic Lagoon Biogas Anaerobic Lagoon Biogas Recovery and UseRecovery and Use Example plant – 1.0 MGD average daily

flow, 4,000 CODI , 500 CODE, 700 BTU/scf BTU content in biogas – Estimated Benefits:56,500 MMBTU/Yr or 81 MMSCFM/Yr Displaces 56.5 MMSCF Natural Gas or

438,000 gallons of No. 2 Fuel Oil per YearFire a 150 HP boiler 24 Hr/Day, 365 day/Yr Renewable Fuel Source

Anaerobic Lagoon Biogas Anaerobic Lagoon Biogas Recovery and FlaringRecovery and Flaring Capturing and flaring biogas reduces greenhouse

gas emissions by at least 23,400 Ton/Yr of Global Warming Potential compounds (GWP or equivalent CO2) – 83% GWP reduction.

Beneficial use and flaring of biogas also destroys other nuisance compounds, toxic compounds (i.e., hydrogen sulfide, ammonia, etc.), more potent greenhouse gases (nitrous oxide), and/or reported ozone depleters (i.e., nitrous oxide, methane).

Low NOx BoilersLow NOx Boilers Low NOx Boilers more energy efficient

than standard boilers Comparison between 500 HP low NOx

and non-low NOx boiler: 2.5% annual reduction in natural gas

usage (or 3.6 MMSCF) 44% reduction in NOx emissions (or 3.8

Ton/Yr, 100 ppm NOx to 60 ppm NOx) 216 Ton/Yr reduction in CO2 emissions *Based on Cleaver Brooks Model CB Boilers operating 6,900 hours per year

Improvements in Trucking Fleet Improvements in Trucking Fleet Fuel EconomyFuel Economy Various actions can be taken to improve

fuel efficiency in trucking fleet, includingDriver monitoringDriver trainingActive tire pressure management program Installation of speed control

systems/programs Installation of auxiliary power units (APUs)

on cabs for long-haul rigs

Improvements in Trucking Fleet Improvements in Trucking Fleet Fuel EconomyFuel Economy

Drive train modificationsRoute efficiency programs Idle time minimization program/systems

Example case – 100 Trucks in Fleet, 2002 Model Year, 70,000 miles/Yr, 0.5 mpg fuel economy improvement (5.0 to 5.5 mpg) – Estimated Benefits: 9.1 % reduction in diesel fuel usage (or

127,300 gallons/yr)

Improvements in Trucking Fleet Improvements in Trucking Fleet Fuel EconomyFuel Economy

9.1 % reduction in VOC, CO, NOx and PM10 air emissions (or 0.9, 5.4, 11.3 and 2.9 Tons/Yr emissions reduction, respectively)

1,328 Ton/Yr reduction in CO2 emissions

Emissions of various organic compounds also reduced (i.e., benzene, formaldehyde, polyaromatic hydrocarbons - PAHs, etc.)

* Pollutant emission estimates based on “Local Road Truck Emission Factors,” 2002 Model Year, Combination Diesel Truck from FHWA Report; CO2 emissions estimate based USEPA AP 42 Emission Factor for Stationary Internal Combustion Engines.

Use of Renewable FuelsUse of Renewable Fuels Various renewable fuels are available

for burning in vehicles, boilers, etc. 1.1 gallons of poultry fat will replace 1

gallon of No.2 fuel oil. 1.1 gallons of biodiesel will replace 1 gallon

of diesel fuel. Renewable fuels are essentially nontoxic

and readily biodegrade upon accidental release into the environment.

Use of Renewable Fuels Emissions of certain pollutants reduced when

burning poultry fat, tallow, and biodiesel As compared to diesel fuel, a B20 biodiesel

fuel burned in a diesel engine results in: 12% less CO emissions 20% less hydrocarbon emissions 12% less particulate emissions 2% more nitrogen oxide emissions 12% to 20% less air toxics emissions

* Information from USDOE Biomass Program

Land Application of DAF Skimmings

Land application of DAF skimmings on farmland replaces “man-made” fertilizers and builds organic content in soils for improved fertility, water holding capacity, etc.

DAF skimmings are a renewable fertilizer resource and a soil amendment resource

Land Application of DAF Skimmings

Land application of DAF skimmings from a typical poultry slaughter plant can replace: 30 tons per year of an unrenwable nitrogen

fertilizer 22.5 tons per year of an unrenewable

phosphate fertilizer (P2O5) 1.5 tons per year of an unrenewable

potash fertilizer (K2O) Same benefits provided through land

application of poultry litter

Paperboard and Paper Recycling

As compared to virgin production, for each ton of corrugated paperboard recycled: 1,400 pounds of solid waste avoided 8.2 MMBTUs of energy conserved, of which

3.5 MMBTUs of fossil-fuel derived energy conserved

12.4 pounds of air pollutant releases avoided (NOx, PM, HAPs, VOCs and total reduced sulfur)

1,858 pounds of greenhouse gas emissions avoided

Paperboard and Paper Recycling

9,148 gallons of wastewater avoided 40.1 pounds of waterborne wastes avoided

(i.e., AOX, BOD, COD, TSS) 2.95 tons of trees conserved

As compared to virgin production, for each ton of office paper recycled: 1,128 pounds of solid waste avoided 17 MMBTUs of energy conserved, more fossil-

derived fuel is used, however

Paperboard and Paper Recycling

16.5 pounds of air pollutant releases avoided (NOx, PM, HAPs, SOx, VOCs and total reduced sulfur)

1,951 pounds of greenhouse gas emissions avoided

10,195 gallons of wastewater avoided 69.3 pounds of waterborne wastes avoided

(i.e., AOX, BOD, COD, TSS) 3.47 tons of trees conserved

* Information from “Paper Task Force Recommendations for Purchasing and Using Environmentally Preferable Paper” Final Report

Additional Opportunities Water reuse and conservation Waste heat recovery (rendering,

refrigeration, etc.) Refrigeration system optimization Purchase of paper and paperboard

products containing post consumer recycled content

Use of land-fill gas, used oils for fuel Recycling of plastics, metals and other

materials

Green BuildingGreen Building

Worldwide, buildings account for17% of fresh water withdrawals25% of wood harvest33% of CO2 emissions40% of material and energy use

45% in China

Green BuildingGreen Building

Design and construction practices that meet specific standards,

resolving much of the negative impact of buildings on their

occupants and on the environment.

Green BuildingGreen Building

Leadership in Energy and Environmental Design (LEED)

Assessments include:Site PlanningWater ManagementEnergy ManagementMaterial Use Indoor Environmental Air Quality Innovation and Design Process

Green BuildingGreen Building

Economic Impact8-9% decrease in operating costs7.5% increase in building values6.6% improvement in ROI3.5% improvement in occupancy3% rent increase

Green BuildingGreen Building

U.S. Green Building Council Increased Productivity

20% better test performance in schools 2 ½ earlier discharge from hospitals Increase in sales per sq. foot in retail space 2-16% increase in productivity in office space

Cost (additional cost of conventional construction) Platinum – 6.6% Gold – 2.2% Silver – 1.9% Certified – 0.6%

Green BuildingGreen Building

Trend not a fad 2005 $10 billion 2010 $60 billion

Power of the People 89% choose brands aligned with social cause 74% listen to brands aligned with social cause 69% shop for brands aligned with social cause 66% recommend brands aligned with social cause

www.melaver.com

www.southface.org

www.earthcrafthouse.comwww.gefa.org

www.p2ad.org

Dow Jones Sustainability IndexDow Jones Sustainability Index

Culmination of economic, social and environmental sustainability’

Global index tracking the financial performance of the leading sustainability driven companies worldwide.

Provide asset managers with reliable and objective benchmarks to manage sustainability portfolios.

$5 billion USD managed based on the DJSI

Dow Jones Sustainability IndexDow Jones Sustainability Index

Companies include:GEMicrosoftProctor and GambleChevron IBMJohnson & JohnsonWeyerhaeuser

Economic SustainabilityEconomic Sustainability

Cultural Revolution Financial Performance Project Alignment Workplace Impact Customer Expectations

There is a simple rule about the environment. If there is waste or pollution, someone alongthe line pays for it.

Lee Scott, CEO, Wal-mart

Katie Kirkpatrick, P.E.

Vice President, Environmental Policy(404) 586-8544