Natural Capitalism Solutions

L E A D , F O L L O W O R G E T O U T O F T H E W A Y

© NCS 2013

We are called to be architects of the future, not its victims.

- Buckminster Fuller

Elon University Sustainability

Received AASHE Silver ranking

Ranked #29 cool sustainability school by Sierra Club

University Coordinators

65% of campuses have an office to oversee sustainability 836+ campuses are members of AASHE

Biobus runs on B20 biodiesel. Compost food waste.

Elon University Sustainability

Geothermal helps heat and cool Colonnades. Carsharing and ridesharing programs.

“Unless world leaders take immediate and coordinated action, modern industry will lock the world into a calamitous temperature rise of up to six degrees C. In such a world, demand for energy, food, and water will overwhelm the planet”

Nov 2011 study from IEA April 2012 study from OECD

Feb 2012 the UN released Resilient People, Resilient Planet: A future worth choosing The 22-member panel said a new blueprint for growth and low-carbon prosperity must be "mainstreamed" into economic policy as quickly as possible By 2030 the planet will need at least 50% more food, 45% more energy and 30% more water.

The globe is warming far, far faster than it ever, up to 11,300 years ago. Over the past 5000 years, the Earth

actually cooled by about 1.3°F…until the last 100 years, when our temperature spiked upwards by about the same amount.

Presenter

Presentation Notes

In just 14 months, two hurricanes have forced us to evacuate neighborhoods -- something our city government had never done before. If this is a trend, it is simply not sustainable. our comprehensive sustainability plan --PlaNYC -- has helped allow us to cut our carbon footprint by 16 percent in just five years, which is the equivalent of eliminating the carbon footprint of a city twice the size of Seattle. I want our president to place scientific evidence and risk management above electoral politics.

Clear-cutting in Washington State

Hurricane Fran, 1996 Category 3 storm, damaged 8.3 million acres of state forest land at total estimated cost of $1.7 billion. For every increase in storm category level, forest damages have been found to rise by approximately $500 million. Furniture and related manufacturing industries that rely on the forestry sector are an integral part of North Carolina’s economy, contributing $3.1 billion in 2005.

Climate Change Impacts U.S. corn production is down 13%.

USDA predicts 3-10 % increase in all food prices.

Cost $600 more for the same food purchased this year, for a family of four.

Presenter

Presentation Notes

Tyson foods in 2013 spend $700 mil more on feed  - profits $500 - $800 mill/ year – the run-up in prices ate their whole profit http://www.google.com/imgres?q=food+prices+2012&um=1&hl=en&client=safari&sa=N&rls=en&biw=1385&bih=695&tbm=isch&tbnid=_1SHBOqNoCQz-M:&imgrefurl=http://www.wired.com/wiredscience/2012/07/drought-food-prices-2013/&docid=kTcSaZhV4nv4cM&imgurl=http://www.wired.com/images_blogs/wiredscience/2012/07/grocery-price-climate-desk.jpg&w=660&h=524&ei=vRlnUN2TNOHniwK4z4GYBg&zoom=1&iact=hc&vpx=886&vpy=325&dur=1949&hovh=200&hovw=252&tx=159&ty=73&sig=108395779669525178518&page=1&tbnh=158&tbnw=199&start=0&ndsp=15&ved=1t:429,r:8,s:0,i:98

Bio-Fuels

Our need for oil became a hunger problem

Food Riots

Competing for scarce land

70% of water use is for agriculture 40% of the world's food supply is grown in places where crops cannot survive solely on rainfall, requiring irrigation

Nexus of Water, Food and Energy

Flood-irrigated rice field in California

Water Flows Uphill To Money

In Midwest farmers pay about $30 for an acre foot of water. Oil and gas companies are paying as much as $1,000-$2,000 for an acre foot.

Flowback Water To Polluted to Use

Water used for fracking is too polluted to be reused and must be disposed of. There are no return flows back into the system.

Use of Water Fracking a typical vertical well requires up to 1 M gallons of water. Horizontal well can use up to 5 million gallons.

Presenter

Presentation Notes

http://www.empowernetwork.com/mataman/blog/fracking-is-destroying-once-beautiful-lands-our-land/ http://www.thenation.com/article/171504/fracking-our-food-supply

Global Biodiversity Outlook Three - GBO-3

"We continue to lose biodiversity at a rate never before seen in history - extinction

rates may be up to 1,000 times higher than the historical background rate.”

Earth’s ecosystems may soon reach

"tipping points" where they rapidly become less useful to humanity.

China has replaced the United States as the world's leading consumer of most basic commodities, like oil, grain, coal, and steel.

• If China’s economy grows at its prior rate • If it uses resources as inefficiently as the U.S. • By 2030 China will need 99 million barrels of oil a day. The world currently produces 79 million barrels per day and may never produce more.

The science is uncertain

The science does not matter

Let’s assume that the climate sceptics are right

Don’t go to the casino on those odds

If all that you care about is maximizing profit, you will do exactly what you would do if you were scared to death about climate

Three indexes identified the most resilient, most innovative and best positioned companies to gain competitive advantage in the new low-carbon economy Ranking the top 350 US companies, with a combined market cap of $350 trillion, on their climate innovation and carbon management programmes, shows a positive correlation between the financial performance of companies and their ability to successfully implement disruptive market innovations related to climate change.

Companies that lead in climate-related innovation give higher financial performance (five-year return on equity)

Carbon Innovators Lead

“Results suggest that the market attaches an implicit cost to carbon emissions, even though there is currently no explicit cost,” -Studies Authors

Study from Notre Dame and Georgetown found a companies’ (S&P 500) value declines by $202,000 for every additional 1000 mt of carbon they emit.

Carbon Emitters Are Valued Lower

CDP Global 500 Report 2011

Companies in the Carbon Disclosure and Performance

Leadership indices had nearly twice the average total return vs the Global 500 from 2005 - 2011

Elon University Sustainability

Since 2003, Elon has increased its square footage over 50%. Yet overall the campus’ energy use (Btu per square foot) has decreased 30%.

10% for free

A growing body of research suggests that the short-term energy savings from behavioral changes is likely to equal or exceed 10%.

Ohio State University

Turning off computers at night, saved the University over $250,000 a year. This money is used for academic programs across the campus

6,300 computers and monitors in sleep or standby mode when not in use (24/7). Leave machines on one evening a week for updates and turn them off at the end of the work day: $700,000. US companies waste $2.8 billion a year on 108 million unused PCs. In 2009, these unused PCs will emit 20 million tons of carbon dioxide emissions – the impact of 4 million cars. PC power costs are the largest single factor of IT energy costs and can account for a quarter of the costs in a modern office building.

“Ford Saves One Million Dollars... By Shutting Off Computers” Fast Company, 23 March 2010

Turning off one computer every night for a year saves $34 If 20 computers are left on in the evening and over the weekend, the savings grow to $526 a year

Elon University Sustainability

Campus building dashboard allows any buildings energy use to be compared with others on campus. Competitions between residence halls.

Over 5,600 kWh saved through last campaign.

Results: •25% reduction in energy use •50% reduction in water use •50% reduction in natural gas consumption

Greensboro Coliseum One of the largest coliseums in the East, conducted energy and water retrofits

EPA Research Triangle Park, North Carolina • Cuts annual operating

expenses by $1 Million

• Uses 40% less energy than similar buildings

• Lighting 70% more efficient • 200% increase in building life

span: 100 years vs. typical 30-50 years

Economic Realities: Saving energy strengthens the entire economy

Butte College – “Grid Positive”

First college in the U.S. to generate more electricity than it uses. $50-$75 million for academic programs.

Solar added 1.7 GW in 2011, up 2x from 2010 3.3 GW in 2012 – 76% growth, prices fell 27%, 70% in last 3 years 4.3 GW projected for 2013 Nuclear added 0 and coal decreased.

Renewables Win

Apple solar farm Maiden, NC

Wind is the 2nd fastest growing energy supply technology in the world: 37 GW in 2009, 32 GW 2010 Now 237 GW, 40 GW new 2011 Costs less than coal in good sites

35 percent of new U.S. electric generating capacity came from wind from 2007-2011, less than 15 percent of new capacity coming from coal,

Researchers at Stanford have shown that the US and indeed the world can meet its needs with 100% renewable energy.

Renewables and efficiency get results quicker than through pipelines and offshore drilling.

Electricity Grid Traditionally, electricity has flowed one way; from a power station to a customer.

Renewable energy enters the network from multiple locations, through distributed generation.

Harvard study estimated that the life cycle impacts of coal and the waste stream generated are costing the U.S. public over half a trillion dollars annually.

Cost of Coal

States of Kentucky and West Virginia both found on-budget costs of coal to be greater than benefits for the state.

Presenter

Presentation Notes

CA green economy grew at 8.3% even at the height of the recession, added more than a half-million jobs from 2003 to 2010. This far outpaced the rest of the California economy, which lost jobs during that time. In 2010, when California had a 7 percent job loss, it’s green manufacturing showed an increase of 1 percent. While they represent only 2 percent of overall jobs in California, over half of the 318,000 green jobs had an annual wage of over $46,000 – CA, which has 11% unemployment should be focusing on this California’s Renewable Portfolio Standard of 33 percent by 2020 as a vehicle that could generate over 50,000 new green collar jobs, and investments in public transportation will create 64,000 green jobs. Money saved by consumers and business owners through energy efficiency measures have not only redirected $56 billion from paying for energy to purchasing other goods and services. These savings have also created some 1.5 million jobs with a payroll of $45 billion. Among the fastest growing sectors in clean tech in California are the smart grid, renewable energy, fuel cells, solar thermal and wind industries. A shining example of job creation resulting from sustainable programs are the more than 115,000 green jobs created by the collecting and processing of recyclable materials. If the nation achieved a 75 percent recycling rate, there would be 1.5 million jobs created by 2030. 

Since 2006 jobs in renewables and environment have grown 56.8% vs Internet: 29.8% California's “green economy" grew 3X as fast as traditional economy between 2008 and 2009 – 174,000 employed in green economy – 26% are manufacturing jobs vs 9% in total economy. In US green jobs grew 9.1% 1998 – 2007, 2 ½ X faster than all job growth.

Jobs Growth

Global Green Jobs A greener economy could create between 15 million to 60 million jobs worldwide over the next two decades At least half of the global workforce will be affected in some way by 2030 2012 ILO study.

Sonoma County Energy Independence Program

8.4% increase in construction-related jobs in Sonoma County between January, 2009 and September, 2009

3.0% job decline in Napa County

July-August 2009: $5.6 million in SCEIP projects 500 new construction jobs reported

Solar deployment – policy matters California receives 70% more sunlight for producing solar energy than Germany. But Germany installs 28 times more solar electric capacity every year Will be 100% renewable by 2050

Deutsche Bank Study: FiTs gave Germany the lead in renewable energy production.

In first 4 years FiTs created 480,000 new jobs FITs cut the unit cost of solar panels 30 percent in

2009 enough that they could pay for themselves within five to seven years, and reach grid parity (costing the same as grid electricity) by 2013.

The Economics of Feed-in Tariffs

FiTs drove German economic regeneration, enabling Germany to pay its own citizens to produce, install and maintain their own renewable energy systems, instead of buying imported fossil fuels. The program cost of €2 - 3 per month ($50 to customers’ electricity bills each year) to electricity bills in Germany (a total of €8.6 billion.)

Deutsche Bank: The savings created by FiTs exceeded

total cost of payments made by households. Had customers bought electricity from conventional

generation and paid the costs of fossil fuel generation Germans would have paid over €9.4 billion.

Dardesheim, Germany - 100% renewable

Wildpoldsried produces 321% more energy than it uses; makes $5.7 million each year

World now nearing 100 GW solar

Rothes whisky distilleries using dregs and pot ale from distilling process to generate 7.2MW of electricity, the equivalent of powering 9,000 homes, Glenkinches making butanol

Fuel from whisky

Harvard Business Review

“Building the Green Way” “In fact the owners of standard building face massive obsolescence. They must act now to protect their investments “Building owners are starting to do reviews of their portfolios to see how green their buildings are and what they need to do to meet growing market demand.”

Benefits of Green Development

On average, green buildings use 30% less energy than conventional buildings.

In a 100,000-square-foot office building a 30% reduction in energy = $44,000.

Green Building Growth Value of green construction starts: 2008 = $42 Billion 2010= $71 Billion 2015 = $173 Billion .

2010, green building 25% of new buildings, by 2015 projected to be 60%

Elon University Sustainability

6 LEED certified structures on campus. Platinum certified Loy Center.

“I really enjoy living in the Loy Center because of the emphasis on sustainability,” sophomore Maggie Achey

N.C. is one of 6 states participating in an energy efficiency retrofit program Will decrease building energy use, limit emissions, and create jobs in N.C. Projected to be $10 billion to $15 billion market

North Carolina By 2014, “green” building will account for 20-30% of the retrofit and renovation market

Replaced inefficient halide fixtures in parking garage with LED fixtures

Raleigh Convention Center Total 15 year life cycle

savings of $635,548

Annual savings from retrofit: 514,668 kWh $30,880

BedZED, Beddington Zero Energy District, UK

R. James Woolsey’s solar powered plug-in-hybrid has a bumper sticker reading:

“Osama bin Ladin hates my car.”

Not a left or a right issue

Enhanced security

Great Green Fleet Navy Secretary Ray Mabus: "We simply have to figure out a way to get American-made, home-grown fuel that is stably priced, that is competitive with oil,"

MH-60 chopper flying on 50-50 algae/ grease biofuel and petroleum fuel

Deploy a biofuel-burning carrier group by 2016 and require the Department of the Navy to get half of its energy from alternative sources by 2020.

USS Ford frigate used 25,000 gallons to sail 12,000 miles from Everett Wash to San Diego – no difference in performance

Solyazyme and Dynamic Fuels

F-18 Green Hornet flying on Sustainable Fuels’ oil seed fuel/ jet fuel mix – 60 – 75 million barrels of jet fuel/ year

Fort Carson – Net Zero

One of two bases globally shooting for net zero • Energy • Water • Waste

Want to do it all by 2020, looking to community for additional support.

Solazyme - Jonathan Wolfson Fuel from Algae

Fuel from Algae

BUT WE SURE HAVE SILVER BUCKSHOT

THERE IS NO SILVER BULLET

Sustainability is happening

Presenter

Presentation Notes

www.natcapsolutions.org/businesscasereports.pdf

Sustainability pays

Companies in the Dow Jones sustainability Index outperform the general market

Goldman Sachs report July 2007: Companies that are leaders in environmental, social and governance (ESG) policies outperform competitors in stock performance—by an average of 25%.

72% of the companies on the DJSI outperformed industry peers

“Sustainability isn’t the burden on bottom lines that many executives believe it to be. It can lower your costs and increase your revenues. That’s why sustainability should be a touchstone for all innovation. In the future, only companies that make sustainability a goal will achieve competitive advantage. That means rethinking business models as well as products, technologies and processes.” Why Sustainability is Now the Key Driver of Innovation

Harvard Business Review

“The Integrated Bottom Line” The Business Case for Sustainability

Enhancing Shareholder Value: • Financial performance Reduced cost, enhanced profitability

• Reduction of risk Franchise to operate, legal liabilities • Attraction and retention of best talent

• Ability to drive innovation

• Labor productivity - increased worker health • Market share - enhanced brand equity Product differentiation • Supply chain and stakeholder management

• “First to the future” = the billionaires of the future • Reducing cost of distrust

Young Professionals 96% of workers aged 18-35 want to work for a responsible and green-minded company.

-Johnson Controls Global Workplace Innovation

Princeton Review

In 2012, a survey by Princeton Review found that:

say that a school's commitment to environmental issues would affect their decision to apply to or attend a school

68%

58%

Applicants Parents & of of

Curriculum is Changing Sustainability curriculum has increased over 900% in the last 6 years. Over 30% of undergraduate business schools offer degrees in environmental issues.

Ray Anderson

What is the business case for ending life on earth?

Interface "Mission Zero"Metrics -Net GHG emissions down 82% in absolute tonage-

Fossil fuel usage is down 60%- Water usage is down 75%-

Renewables and recycled materials up 25%-Renewable energy is up 27%-

Diverted 74,000 tons of used carpet from landfills- Goal: 0 impact, 0 footprint - ½ way to goal today.

Anticipate will make goal in 2020. Best thing for business: Costs down $4.5M

Sales increased by 2/3 Profits up 2X-

Paid for all costs for transformation of Interface.

Paul Polman

Refusal to report quarterly The ultimate cost of short-termism was the financial crisis of 2008-9. 'Too many investors have become short-term gamblers: the more fluctuations in share price they can engineer, the better it is for them. It is not good for the companies or for society, but it is influencing the way firms are being run, all the same.... To drag the world back to sanity, we need to know why we are here. The answer is: for consumers, not shareholders. If we are in synch with consumer needs and the environment in which we operate, and take responsibility for society as well as for our employees, then the shareholder will also be rewarded'

Cut environmental impacts in half by 2020, Source 100% of agricultural materials sustainably, and Help more than 1 billion people improve their health and well-being.

Unilever’s Sustainable Living Plan:

Challenge: Time frame

Normal penetration rates are way too slow

It’s simple math: we can burn 565 more gigatons of carbon dioxide and stay below 2°C of warming — anything more than that risks catastrophe for life on earth. The only problem? Fossil fuel corporations now have 2,795 gigatons in their reserves, five times the safe amount. And they’re planning to burn it all — unless we rise up to stop them

Who’s responsible?

How does nature

do business?

Nature uses: • Sunlight

• Low energy flows • No persistent toxics

• Near Body manufacturing • Ambient temperature manufacturing

• Closed loops, in which everything is recycled • Nature shops locally

In nature carbon is not the world’s greatest

poison

In nature carbon is not the world’s greatest

poison

Calera Calera is piloting making cement in the same way that coral reefs make limestone: CO2 and seawater.

Carbon negative process.

Vinod Khosla is a lead investor

Each person must see himself as though the entire world were held in balance and any deed he may do could tip the scales Maimonides

What’s your

DOT?

Do One Thing

Email: solutions@natcapsolutions.org

Visit: www.natcapsolutions.org

Natural Capitalism Solutions L O N G M O N T, C O L O R A D O

The rule of no realm is mine but all worthy things that are in peril as the world now stands, those are my care. And for my part I shall not wholly fail if anything passes through this night

that can still grow fair and bear fruit and flower again in the days to come. For I too am a steward, did you not know?

In the end, it was two rather ordinary, playful, unassuming hobbits who undertook to save the world. Despite their fears, they took the future of the world on

their shoulders, and all the wizards and kings and warriors could only play a supportive role.

Real leadership is extraordinary courage by ordinary people

12,000 entrepreneurs trained more than 500 N C high school, post-secondary, and community organization educators

North Carolina’s Real Enterprise: ncreal.org/ Rural Entrepreneurship through Action Learning

“New Limits to Growth Revive Malthusian Fears”

“Record highs in the prices for oil, wheat, copper…are signs of a

lasting shift in demand unmatched by supply”

Wall Street Journal March 24, 2008

Creating a global movement for Gross National Happiness