WHY DO WE NEED ECONOMIC SUSTAINABILITY

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WHY DO WE NEED ECONOMIC SUSTAINABILITY?

• The Case for Economic Development and
  Environmental Preservation

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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
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SUSTAINABILITY

• "... 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.

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KEY TENETS

• Conserve
• Recycle and Reuse
• Maximize use of Renewable Sources
• Replace toxic compounds with less toxic

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Why does business care?
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THE CUSTOMER

• Who are our customers?
• Consumers
• Banks
• Advocacy Groups
• Stockholders
• Government
• Regulatory Agencies
• Unions

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THE CUSTOMER

• Supply-Chain Partners
• Many name brand companies are requiring their
  suppliers to demonstrate their pursuit of
  sustainable business practices in order to do
  business with them.

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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
• Its the right thing to do according to many of
  these companys core values!

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www.interfacesustainability.com
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• 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 Energy
• To create Zero Waste
• To sell products that Sustain Our Resources
  Environment
• www.walmartstores.com

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Weyerhaeuser

• 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

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The Coca-Cola Company

• The Coca-Cola Companys environmental
  commitments are focused on the areas where we
  have the most significant and visible impacts
• Water Stewardship
• Sustainable Packaging
• Energy and Climate Protection
• www.thecoca-colacompany.com/citizenship/environmen
  t

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The Home Depot

• Were dedicated to making communities a better
  place for generations to come. andto making a
  positive environmental impact every day.
• Sustainable Forestry
• Certified Green Products
• http//corporate.homedepot.com
• How Were Helping
• THD and the Environment

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ConAgra Foods

• Doing well by doing Good is the guiding
  principle in our sustainable development program.
• Efficient use of resources and materials
• Protect the environment and improve our business
  practices.
• http//company.conagrafoods.com
• Corporate responsibility
• Sustainable Development

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SUSTAINABLE SYSTEMS PROJECTS
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Anaerobic Lagoon Biogas Recovery 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 Year
• Fire a 150 HP boiler 24 Hr/Day, 365 day/Yr
• Renewable Fuel Source

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Anaerobic Lagoon Biogas Recovery 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).

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Low 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

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Improvements in Trucking Fleet Fuel Economy

• Various actions can be taken to improve fuel
  efficiency in trucking fleet, including
• Driver monitoring
• Driver training
• Active tire pressure management program
• Installation of speed control systems/programs
• Installation of auxiliary power units (APUs) on
  cabs for long-haul rigs

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Improvements in Trucking Fleet Fuel Economy

• Drive train modifications
• Route 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)

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Improvements in Trucking Fleet Fuel 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.

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Use 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.

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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

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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

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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

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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

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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

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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

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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

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Green Building

• Worldwide, buildings account for
• 17 of fresh water withdrawals
• 25 of wood harvest
• 33 of CO2 emissions
• 40 of material and energy use
• 45 in China

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Green Building
Design and construction practices that meet
specific standards, resolving much of the
negative impact of buildings on their occupants
and on the environment.
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Green Building

• Leadership in Energy and Environmental Design
  (LEED)
• Assessments include
• Site Planning
• Water Management
• Energy Management
• Material Use
• Indoor Environmental Air Quality
• Innovation and Design Process

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Green Building

• Economic Impact
• 8-9 decrease in operating costs
• 7.5 increase in building values
• 6.6 improvement in ROI
• 3.5 improvement in occupancy
• 3 rent increase

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Green 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

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Green 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

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www.southface.org
www.gefa.org
www.earthcrafthouse.com
www.melaver.com
www.p2ad.org
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Dow 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

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Dow Jones Sustainability Index

• Companies include
• GE
• Microsoft
• Proctor and Gamble
• Chevron
• IBM
• Johnson Johnson
• Weyerhaeuser

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Economic Sustainability

• Cultural Revolution
• Financial Performance
• Project Alignment
• Workplace Impact
• Customer Expectations

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There is a simple rule about the environment.
If there is waste or pollution, someone
along the line pays for it. Lee Scott, CEO,
Wal-mart
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Katie Kirkpatrick, P.E. Vice President,
Environmental Policy [phone]