China emits more greenhouse gasses than any other country, and many of its factories use much more energy than similar facilities in other countries. This gives global companies the opportunity to profoundly reduce their climate impacts by working with their China-based suppliers.

While energy-efficiency investments in China are cost-effective, challenges related to the country's regulatory structure, professional energy-service-provider industry, and lack of information about opportunities and standards for measuring emissions often prevent companies from capitalizing on this opportunity.

BSR has released a new report that addresses this. "Unlocking Energy Efficiency in China: A Guide to Partnering with Suppliers," provides a clear outline for how leading companies can overcome these obstacles and launch supply chain energy-efficiency programs in China. The recommendations build on BSR's experience helping Walmart launch its initiative to improve the energy efficiency of its top 200 China-based suppliers by 20 per cent by 2012. The report also provides insights from BSR's China Training Institute, which has trained more than 1,500 managers on energy management since 2004.

"The benefits to launching supply chain energy-efficiency initiatives are great: companies can save money, reduce their energy-related risks, gather information to communicate to investors who are increasingly savvy about climate issues, and establish themselves as leaders before supplier energy management becomes mainstream," said Ryan Schuchard, BSR's Manager, Research & Innovation. Lead author of the report, Schuchard spent more than six months helping Walmart launch its efforts at the company's global sourcing headquarters in Shenzhen, China.

"We identified energy efficiency as a significant opportunity to quickly enhance the resilience and environmental performance of our suppliers' Chinese factories," said Walmart Vice President of Global Sourcing Ken Lanshe. "But we quickly learned that while the successes of Walmart's Supplier Energy-Efficiency Program (SEEP) in the United States provided us with an effective model, navigating energy efficiency in China required us to leverage local partners that possessed relevant knowledge, experience, and tools. BSR's work helped us surmount these hurdles and ultimately reach more than 300 suppliers since 2009."

BSR's report shows that companies can turn China's unique obstacles into opportunities by offering suppliers:

• Insight: Global companies can orient suppliers with best energy-management practices, and they can also share staff, trainers, and other resources that that can help suppliers address challenges such as garnering support from senior management.
• Information: By offering tools such as data-reporting systems, companies can provide suppliers with instant feedback and analytics to help them make better decisions on their own.
• Incentives: Company initiatives that link supplier purchase orders to progress and stipulate that collaboration with suppliers will depend

on responsible energy use make energy efficiency more attractive.

BSR's report, which features perspectives from companies such as Walmart, Hewlett-Packard, and IKEA, proposes a four-part road map to help business leaders get started by:

1. Building foundations for the engagement, which includes confirming that the company is really ready, choosing suppliers, and defining basic parameters
2. Giving suppliers direction and motivating them to get started, which involves introducing them to the idea, launching the initiative, and setting commitments
3. Helping suppliers effectively execute commitments on their own by establishing effective communications, providing goal-oriented measurement tools, and offering training and advice
4. Taking stock and considering how to refine methods, invest in their own capability, and go further on energy efficiency and other issues

"By working with suppliers, companies can cost-effectively introduce dozens, hundreds, or even thousands of factories to sustainability, and enable them to pursue efficiency on their own," said Schuchard.

Access the full report at www.bsr.org/reports/BSR_Unlocking_Energy_Efficiency_in_China.pdf.

Company managers interested in BSR's Energy Efficiency Partnership Program, which builds on insights in the report, can learn more at www.bsr.org/energy-efficiency.

DENVER, Col. – Environmental lawyer and advocate Robert Kennedy Jr. made the business case for investing in the environment and achieving energy independence at last week’s American Industrial Hygiene Conference and Expo (AIHce) in Denver, Col.
 
Delivering the keynote at AIHce’s opening ceremonies, Kennedy said investing in the environment today will ensure economic vitality in the future.

“Nature is the infrastructure of our communities,” Kennedy, who has been championing environmental causes for 25 years, told thousands of industrial hygiene and health and safety professionals attending the conference.
 
He urged the government to stop subsidizing the “big polluters” and start focusing on investing in clean and sustainable energy sources. He noted that the U.S. gives the oil industry $1.3 trillion in subsidies.
 
These subsidies include such expenditures as the health care costs of diseases and occupational injuries associated with coal production, the environmental impact of pollution caused by coal plants. There are also “hidden subsidies” or other indirect costs associated with coal production in the U.S.
 
For example, Kennedy said the highways in West Virginia are built with 22 inches of asphalt, about four times more the amount of asphalt a regular road would have, in order to support heavy trucks carrying coal across the state. This leaves tax payers footing the bill. 
 
“We are borrowing $1 billion a day to import oil from countries that don’t share our values,” he said.
 
In arguing for the need to invest in cleaner energy sources, Kennedy said certain countries that are either already decarbonized or in the process of decarbonizing their energy production, are getting positive results.
 
He cited Iceland, which has now achieved 100 per cent energy independence. Sweden, Brazil and Costa Rica are also some of the other countries that are doing the same thing.
 
Kennedy said it’s creating business opportunities for entrepreneurs. “Every nation that has decarbonized their society experienced instantaneous prosperity.”
 
Kennedy’s hour-long keynote was well-received by AIHce attendees. The AIHce is being held at the Colorado Convention Centre from May 22 to 27.

A comprehensive new study of Canada's steel sector released Monday presents important new insights into the impact of the industry in Canada, and offers a fresh look at its future prospects in light of many recent changes in the global and Canadian steel industries. Energy will likely play a big part in this. The Canadian Steel Producers Association (CSPA) commissioned the study by Dr. Peter Warrian of the Munk Centre for International Studies, University of Toronto.

CSPA President Ron Watkins says this independent analysis by an acknowledged industry expert is very timely. "It improves public understanding of the new steel industry in Canada," he noted. "And we trust it will assist policymakers in all levels of government to understand the important role of the industry and its critical relationships with its customers and suppliers."

A major emphasis of the study is the steel industry's impact as a foundation for major advanced manufacturing clusters in Canada, such as autos, energy, and construction. The recent global and domestic transformation of the industry is another key theme, and the study examines at some length the implications for current operations and future investment.

The study outlines the development of the industry in Canada, and then turns to its importance as a vital industry for meeting the demands of the future economy. It describes the growth potential that will come from recovery in existing, and from new and innovative uses of steel in areas such as renewable energy sources, more fuel-efficient transportation, and construction applications.

The research describes an industry that is more innovative, highly-skilled, and environmentally efficient. "From an employment, value-added, knowledge intensive and environmental perspective, this is an industry Canadians should want in their future," Dr. Warrian states.

The study examines the impacts of the recent multi-billion dollar investments by global steel companies, bringing access to new sources of capital, technology, and expertise. For the industry to realize its full potential in Canada, the study concludes, it will require continuous investment in future. Supportive and balanced public policies are necessary in many areas that directly affect not only the steel industry, but the entire manufacturing industry in Canada. Watkins added that "CSPA looks forward to discussing the policy implications with governments and other stakeholders."

The report was commissioned by CSPA with funding support from the Canadian Steel Trade and Employment Congress and the United Steelworkers. A summary of key findings is attached. The full study and a summary of it can be accessed at www.canadiansteel.ca

Canadians do not walk the talk when it comes to their commitments to greener living according to findings from the second annual Canadian Green Gap Index released this week by Optimum Public Relations and Summerhill. Facilitated by Leger Marketing, the insight report revealed a continued trend showing Canadians believe they are much 'greener' than the actions they're taking to live a green lifestyle.

The Green Gap Index measures environmental behaviours in six key areas: fuel conservation, home energy conservation, purchase preference for green products, recycling, waste reduction, and food and household goods. The largest gap is still in the area of fuel consumption (over 40%) due to low adoption of alternatives such as public transport, hybrid vehicles and carbon offsets.

"Canadians have the power to transform markets, but they often look to corporations to help them adopt new behaviours or try new products," says Ersilia Serafini, CEO of Summerhill. "Our experience in environmental program delivery shows that the companies who are able to encourage Canadians to take action, experience the long term benefits of customer loyalty and trust, as well as bottom line results."

Another trend that has emerged in 2010 is that Canadians tend to overstate some of their own environmental actions. A demonstration of the newly labeled green pretense, shows 72% of Canadians say they use reusable drinking containers instead of disposable drinking cups, when in fact, the line ups at any coffee shop in Canada would suggest the percentage is much lower.

One reason for this incongruity between Canadians' green assertions and actions could be the perceived lack of leadership from corporate Canada in the area of green living and sustainability

Corporate Canada has a Gap to fill too
While much of corporate Canada has integrated sustainability into overall business through dedicated environmental policies, practices and marketing initiatives, surprisingly, green leadership is not entrenched in the hearts and minds of Canadians. This year's Green Gap Index asked Canadians to identify corporate green leaders in eight different sectors and identify reasons they believed these brands were green. More than three quarters of respondents were unable to identify a green leader or believed one existed.

"Canadians genuinely care about living greener, but they aren't being supported to do more than take small steps," says Nick Cowling, Vice President of Optimum Public Relations. "Many of corporate Canada's environmental platforms do not resonate with them because companies focus more on building corporate reputation versus helping consumers understand how their products and services can help them achieve their green living goals."

The insights generated from the Green Gap Index help Optimum and Summerhill identify communication and engagement strategies that build a bridge between consumers who desire to do more for the planet in their everyday lives but struggle to achieve it and companies who can lead them down a greener path.

The 2010 Canadian Green Gap Index is the second annual index and is a joint initiative between Summerhill and Optimum Public Relations. The two companies have consulted together to build award-winning environmental engagement and communication strategies for Fortune 500 companies, leading NGOs, and public sector organizations.

Eighty-two per cent of Canadian executives believe that a response to climate change is imperative today and plan immediate increases on spending for climate change initiatives, according to the new report Action amid uncertainty: the business response to climate change, based on a survey from Ernst & Young.

"Despite uncertain economic conditions, we're seeing companies in the province place an increased emphasis on climate change initiatives," says Mike Mannella, Leader of Ernst & Young's Climate Change and Sustainability Services practice in British Columbia. "Particularly in B.C., legislative drivers are forcing companies to take a look at the importance of climate change, but beyond that, businesses are really recognizing the value this investment can make to their business."

Mannella notes that more than 90% of executives surveyed globally indicate that climate change governance rests with C-suite executives or board members. This reflects the growing strategic importance of climate change for many organizations, who understand that climate change is not just a risk area but also an opportunity to reduce costs, increase revenue, and gain competitive advantage. Canadian participants in the survey agree, with 71% of Canadian respondents indicating that their company already has an enterprise-wide climate change program targeting key business drivers, and another 11% planning for implementation in the next 12 months.

Canadian respondents also compared impressively with their global counterparts; while globally, 70% of those surveyed expect their companies' spending on climate change initiatives to increase over the next two years, Canadians ranked 12% higher in this regard. And the investment will be significant, with nearly half of Canadian respondents planning to spend between 0.5% to more than 5% of their revenue on climate change initiatives. For a US$1 billion company, this represents an anticipated spend of US$5 million to US$50 million annually.

Canadian companies are taking a comprehensive approach, expanding their climate change efforts beyond the enterprise, through their entire supply chain. Forty-three per cent of respondents said they are working directly with their suppliers to help them reduce their carbon footprint, while another 29% say they have begun such discussions.

"In B.C., we only have to look as far as the carbon neutral government and Olympic Games, the carbon tax, the recently announced Clean Energy Act, or the legislation requiring reporting of GHG emissions to see that we understand the importance of being considered leaders in this space," says Mannella.

Globally, the survey findings are predominantly consistent in all participating countries, with some additional trends emerging across all countries surveyed:

• Energy efficiency is a top global priority, with 82% of respondents planning to invest in energy efficiency initiatives over the next 12 months.
• Customer demand is driving investment. Changing customer demands are driving corporate climate change activities according to 89% of respondents. As a result, 65% percent of executives intend to focus their climate change investments on new products and services to respond to changing customer demands.
• Equity analysts are incorporating climate change initiatives into company valuations. Forty-three percent of the senior executives surveyed believe that equity analysts currently include climate change-related factors in company valuations.
• Climate change is generating new revenue opportunities, such as developing more efficient products, building a portfolio of carbon assets, investing in clean development mechanism projects, clean technologies and innovative IT solutions.
• Government policies strongly influence climate change strategies. Ninety-four per cent of global respondents see national policies as important or very important in shaping their climate change strategies, with 81% recognizing the importance of global or international policies.

The report is based on a survey of 300 global corporate executives across 16 countries. Ernst & Young commissioned the survey to provide a status update on corporate responses to climate change issues in 2010, the half-way point in the first commitment period of the Kyoto Protocol.

ey.com/ca

Earlier this week, 21 member companies of the Forest Products Association of Canada (FPAC), and nine leading environmental organizations, unveiled an unprecedented agreement – the Canadian Boreal Forest Agreement – that applies to 72 million hectares of public forests licensed to FPAC members. The Agreement, when fully implemented, will conserve significant areas of Canada’s Boreal Forest, protect threatened woodland caribou and provide, according to participants, a competitive market edge for participating companies.

Under the Agreement FPAC members, who manage two-thirds of all certified forest land in Canada, commit to the highest environmental standards of forest management within an area twice the size of Germany. Conservation groups commit to global recognition and support for FPAC member efforts.   The Agreement calls for the suspension of new logging on nearly 29 million hectares of Boreal Forest to develop conservation plans for endangered caribou, while maintaining essential fiber supplies for uninterrupted mill operations.  “Do Not Buy” campaigns by Canopy, ForestEthics and Greenpeace will be suspended while the Agreement is being implemented.

“The importance of this Agreement cannot be overstated,” said Avrim Lazar, President and CEO of FPAC. “FPAC member companies and their ENGO counterparts have turned the old paradigm on its head. Together we have identified a more intelligent, productive way to manage economic and environmental challenges in the Boreal that will reassure global buyers of our products’ sustainability.  It’s gratifying to see nearly a decade of industry transformation and hard work greening our operations, is culminating in a process that will set a forestry standard that will be the envy of the world.”

Environmental groups, including the three organizations that have been mobilizing large customers towards green products, say the coming together of two traditional adversaries reflects a new commitment to a common goal.

“This is our best chance to save woodland caribou, permanently protect vast areas of the Boreal Forest and put in place sustainable forestry practices,” said Richard Brooks, spokesperson for participating environmental organizations and Forest Campaign Coordinator of Greenpeace Canada.  “Concerns from the public and the marketplace about wilderness conservation and species loss have been critical drivers in arriving at this agreement. We have a lot of work to do together to make this agreement successful and we are committed to make it happen.”

Also vital to the agreement have been the efforts of the Pew Environment Group and Ivey Foundation, which worked to support the two sides coming together and to facilitate the negotiations.
 
“For years we have helped bring opposing parties together to conserve this global treasure, Canada’s boreal forest,” said Steve Kallick, director of the Pew Environment Group’s International Boreal Conservation Campaign. “We’re thrilled that this effort has led to the largest commercial forest conservation plan in history, which could not have happened without both sides looking beyond their differences. As important as today’s announcement is, our ultimate success will be measured by how we tackle the work ahead to put this plan into practice.”
 
The Agreement identifies explicit commitments for both sides and sets out a plan, which includes:

·       The development and implementation of world-leading forest management and harvesting practices;
·       The completion of joint proposals for networks of protected areas and the recovery of species at risk including woodland caribou;
·       A full life cycle approach to forest carbon management; and
·       Support for the economic future of forest communities and for the recognition of conservation achievements in the global marketplace.
 
Signatory environmental organizations, FPAC, and the Association’s companies have begun meetings with provincial governments, First Nations and local communities across the country to seek their leadership and full participation in advancing the goals of the Agreement.  Participants recognize that governments, including First Nation governments, are decision makers within their jurisdictions. The Agreement recognizes that aboriginal peoples have constitutionally protected aboriginal and treaty rights that must be respected and engaged in order for the Agreement to fulfill its objectives.
 
The progress made to reach the objectives laid out in the Canadian Boreal Forest Agreement will be regularly measured and reported on by a jointly agreed-upon independent auditor.
 
For more information visit www.CanadianBorealForestAgreement.com.

Canada's plant science industry is focusing on developing new technologies in anticipation of the impact climate change will have on farming here in Canada and around the world.

"Earth Day brings to mind for all of us the importance of protecting our environment and of preparing for a future that may be significantly different as a result of climate change impacts," said Lorne Hepworth, president of CropLife Canada. "Canadian farmers are well-aware of the importance of protecting the land in their care and our industry is well aware of our obligation to help farmers do that."

With studies warning that climate change will increase the number of challenges facing farmers, Canada's plant science industry is already hard at work developing solutions for expected problems such as reduced access to water, changes in growing seasons and new considerations about how climate change will impact pests (such as higher over-winter survival rates and increased habitat ranges that could introduce new insects and plant diseases).

One example of how the plant science industry is preparing for a new future is research into developing crops that are tolerant to heat, drought and salinity, all considerations given predictions that one in five countries will face water shortages or salt water intrusion by 2030. Here in Canada, drought-tolerant corn and canola are already at the field-testing stage and are expected to be on the market in the next five years.

In addition, greenhouse gas emissions from farming practices have already been significantly reduced thanks to existing plant biotechnology and pest control products.

For example, pest control products that reduce or eliminate the need for farmers to till their land in order to control weeds reduces the amount of fuel a farmer needs to use by 40 to 70 per cent for low-tillage and no-till practices respectively. No-till and low-till also increases the amount of carbon that remains in the soil, something that has enabled Canadian farmers to begin collecting and trading carbon credits. Meanwhile, plant biotechnology crops with built-in pest resistance also help reduce emissions by cutting down on the amount of time a farmer spends driving equipment to apply herbicides and/or insecticides.

"Care of the environment is everyone's responsibility and Canada's plant science industry is proud of the ways our technologies contribute to that common goal," Hepworth said.

CropLife Canada is the trade association representing the manufacturers, developers and distributors of plant science innovations - pest control products and plant biotechnology - for use in agriculture, urban and public health settings.

For further information visit www.croplife.ca.

MISSISSAUGA, ON — Walmart Canada announced last week its commitment to bring only sustainably-sourced frozen, wild and farmed fish to its customers by 2013. The initiative supports the company's long-term sustainability goal to sell products that sustain people and the environment.

Walmart Canada's new Sustainable Seafood Policy will cover all frozen, wild and farmed fish. The company aims to source wild-caught fresh and frozen fish certified to the Marine Stewardship Council (MSC) standard or the minimum equivalent; to ensure farm-raised fish suppliers adhere to Best Aquaculture Practices, or the minimum equivalent; and to source canned tuna from an International Seafood Sustainability Foundation (ISSF) member.

The company plans to phase out any suppliers procuring frozen, wild and farmed fish from unreported or unregulated sources.

"We're taking a first step to help sustain the future of fish," said Sam Silvestro, divisional merchandise manager at Walmart Canada. "We believe that by offering sustainably-harvested fish at affordable prices we can help improve the industry overall."

During the past 50 years, it is estimated that demand for seafood has increased five-fold and that three-quarters of the world's fisheries are being fished at or beyond sustainable limits. It is estimated that only 10 per cent of large ocean fish like tuna and halibut still exist. In addition, an estimated one billion people rely on fish as their primary source of protein and 200 million people rely on the industry as their main source of income.

Walmart Canada outlined its Sustainable Seafood Policy to suppliers last month at a meeting at the company's home office. Over the coming months, the company will work with suppliers of frozen, wild and farmed fish, as well as MSC, to assess the sustainability of the company's current fish assortment.

Over the longer-term, the company will work with these suppliers on product labeling to ensure they are properly representing the type of fish in their frozen and fresh products, and to help them make their operations and supply chain more sustainable. The policy is expected to evolve over time and suppliers will receive regular communication from the company. The company is also working with non-governmental organizations, such as MSC, to look at ways to change the larger seafood marketplace.

"MSC is pleased Walmart Canada is announcing a new Sustainable Seafood Policy and looking to source wild-caught fresh and frozen fish that is MSC-certified," said Kerry Coughlin, MSC regional director for the Americas. "We applaud Walmart Canada on this move and their efforts to conserve the marine environment and ensure seafood is available for future generations."

Walmart globally is committed to more sustainable seafood. The company's U.S. business is already collaborating with the Marine Stewardship Council (MSC), Sustainable Fisheries Partnership (SFP), World Wildlife Fund (WWF), Environmental Defense Fund (EDF), and the Alaskan salmon industry for wild caught seafood and with Global Aquaculture Alliance (GAA) for all farmed seafood. Together, they are encouraging seafood suppliers to strengthen fishery management practices, rebuild stocks, reduce environmental impacts and support broader marine ecosystem management and protection efforts. Walmart in the U.S. currently has 28 products in its stores that carry the MSC certification and they are continuing to expand the selections. In the future, the company hopes to replicate the progress it has made in North America on a broader, international scale.

About the Marine Stewardship Council (MSC)
The MSC is an international non-profit organization set up to promote solutions to the problem of overfishing. The MSC runs the only certification and eco-labeling program for wild-capture fisheries consistent with the ISEAL Code of Good Practice for Setting Social and Environmental Standards and the United Nations FAO guidelines for fisheries certification. The FAO "Guidelines for the Eco-labeling of Fish and Fishery Products from Marine Capture Fisheries" require that credible fishery certification and eco-labeling programs include: Objective, third-party fishery assessment utilizing scientific evidence; Transparent processes with built-in stakeholder consultation and objection procedures; Standards based on the sustainability of target species, ecosystems and management practices.

For more information, visit www.msc.org.

Tim Hortons Inc. earlier this month announced its sustainability and responsibility framework — Making a True Difference — including supporting commitments and goals. The Company plans to publish its first full sustainability and responsibility report in March 2011 to communicate its progress toward its commitments and goals.

Highlights of the Company's commitments and goals include a variety of energy and waste reduction measures, supply chain auditing and verification, and the publication in 2011 of an inaugural sustainability and responsibility report using the Global Reporting Initiative (GRI) Reporting Guidelines as a basis. Details can be found in the 2009 Annual Report to Shareholders, and at www.timhortons.com.

HALIFAX, N.S. — Nova Scotia Power Inc. (NSPI) and NewPage Port Hawkesbury Corp. (NewPage) recently announced agreements to develop a new 60 MW biomass co-generation facility.

The development entails an NSPI investment of $200 million. This includes $93 million in construction costs for new facilities, $80 million to purchase assets from NewPage, and other related costs. NewPage will be responsible for the construction and operation of the co-generation facility and be completely responsible for fuel supply. This project remains subject to regulatory approval from the Nova Scotia Utility and Review Board and is targeting an in-service date of late 2012.

The proposed co-generation project represents another important step toward meeting Nova Scotia's renewable energy commitments while at the same time creating and sustaining jobs in the province. This local biomass fueled co-generation facility could supply Nova Scotians with approximately 400 GWh annually, representing approximately 3% of the province's total electricity requirement.

The project is expected to create an estimated 150 new jobs in Northern Nova Scotia, primarily in the forestry sector, in addition to maintaining the Port Hawkesbury mill's existing workforce of approximately 550 employees. Approximately 50 person-years of employment will also be created during the construction phase.

"We are working with one of our largest customers to sustainably displace imported fossil fuels, a project that will benefit the environment and economy in Nova Scotia," said Robin McAdam, Executive Vice President, Sustainability for NSPI. "This partnership with NewPage is consistent with our commitment to only pursue projects where we are assured that sustainable harvesting practices will be employed. At the same time a request for proposals (RFP) is being issued to solicit competing renewable projects that provide firm energy. The RFP process will test the competitiveness of this proposed project."

"This co-generation project is one more step in our continuing journey to make the Port Hawkesbury mill the most energy efficient and environmentally sustainable in the industry," said Bill Stewart, Director, Woodlands and Strategic Initiatives, NewPage Port Hawkesbury. "This will help the Port Hawkesbury mill move towards elimination of fossil fuel use at our mill site."

Only 'stem wood' will be used in the project's biomass energy generation. Tree stumps, tops and branches will not be removed from the forest floor as they are necessary in restoring nutrients in the soil so new trees can grow.

NewPage Port Hawkesbury has used biomass sustainably since the early 1980s, and is the only company in the world to achieve all three forest management certifications; Canadian Standards Association, Sustainable Forestry Initiative and Forest Stewardship Council.