More Corporate Boards Have Environmental Committees

Activism works, people! Corporations are listening to what consumers and investors have to say, and the overwhelming message is that we want them to green up. So, more and more of them are putting together environmental committees tasked with addressing environmental issues. Investors have been putting quite a bit of pressure on corporations to be socially and environmentally responsible.

From The Wall Street Journal:

About 25% of Fortune 500 companies now have a board committee overseeing the environment, compared with fewer than 10% five years ago, estimates Mindy Lubber, president of Ceres, a national coalition of activists, investors and others concerned with the environment. Such panels typically try to make sure that executives effectively handle conservation efforts, new environmentally friendly ventures like wind power, compliance with environmental regulations and related business risks.

Shareholders are more active on environmental issues, too. The number of investor proposals related to the environment nearly doubled between 2004 and 2008, RiskMetrics Group Inc. says. Many proposals urge increased board attention to the issue.

That’s definitely encouraging news. If we’re going to keep the earth from becoming one giant hazy, drought-plagued trash heap, we’ve got to have companies on the same page as the rest of us. Of course, just having an ‘environmental board’ doesn’t mean the company is doing any good, so we’ve got to keep on campaigning for environmental responsibility and holding companies accountable for their actions.

Link [Wall Street Journal] via [On Earth]
Photo credit: Business Week

Electronics Industry Greening up as a Whole, Offering Recycling Programs

There’s a big difference between merely greening up your company and greening up your entire industry, and a great example is what’s happening right now with televisions and other electronics. Companies like LG, Sony, Panasonic, Sharp and Toshiba have begun major recycling programs that are free and easy for consumers. These programs embrace the idea of producer responsibility, which is the notion that whoever makes the product should be ultimately responsible for its recycling or safe disposal once its usefulness is complete.

That doesn’t mean that all of these companies willingly stepped up to the plate, of course – it’s the result of a lot of hard work by organizations to have regulations passed in 15 states (so far). The Electronics TakeBack Coalition has put the pressure on states, and a coalition of nonprofits has been pushing individual companies to offer free recycling.

From Green Biz:

The coalition’s next target is Samsung, another Korean firm which is running an Olympic-themed online scavenger hunt called “hunt for the gold.” The coalition respons thatolder TVs include toxic chemicals lead, mercury and cadmium as well as gold, and that many are collected for recycling and then “sent to developing countries like China by unscrupulous recyclers, where they are literally bashed open and melted down with few if any safeguards against toxic releases.”

You can be fairly confident that once industry leaders like Sony and LG offer free recycling, their competitors will have to go along. It’s probably not much of a burden to their business, either–rising commodity prices mean that the value of old electronics, formerly known as garbage, is also increasing.

Imagine what would happen if more industries began running on the ‘producer responsibility’ concept. There’d be virtually no waste. That’s the direction we need to go in – and this is a hopeful sign that through pressure from organizations and consumers, we can get entire industries to green up and stop trashing the planet.

Link [GreenBiz.com]
Photo credit: Flickr user saidunsaid

“Blue Gold”: T. Boone Pickens and the Privatization of Water

Imagine a future where water is more valuable than gold – where corporations have control over the public’s water sources, and everyone has to pay a premium for access. It’s a scary thought for most of us, but for T. Boone Pickens, it’s a dream he’s banking on.

When Pickens, a billionaire oil tycoon, purchased eight miles of bare scrubland in the Texas panhandle recently, some people were confused: there’s no oil in them there flatlands. What he’s interested in, though, isn’t black gold, it’s blue gold: water, contained within the Ogallala Aquifer partially located under the ranch. His plan was to build a pipeline from the aquifer to larger cities, selling the water as a commodity that, at least in his mind, would undoubtedly be in demand during times of drought.

While it seems like there should be some kind of law against doing such a thing, the groundwater laws in Texas and many other states make it easy to get away with. When the laws were put into place, water was so abundant and readily available that no one ever considered the idea that people might try to buy and sell it in this way. So when it was time to vote on allowing the creation of Pickens’ water district, the only people required to vote on it were the people who live on the land: Pickens, his wife and three employees.

From Bloomberg News:

Pickens “has pulled a shenanigan,” said Phillip Smith, a rancher who serves on a local water-conservation board. “He’s obtained the right of eminent domain like he was a big city. It’s supposed to be for the public good, not a private company.”

Pickens and his allies say no shenanigans are involved. Once the district is created, the board will be able to issue tax-exempt bonds to finance construction of Pickens’s planned 328-mile, $2.2 billion pipeline to transport water from the panhandle across the prairie to the suburbs of Dallas and San Antonio.

Pickens was recently in the news for spending big bucks on wind farms. His move toward investing in alternative energy doesn’t mean he’s an environmental activist, though: he’s in it for the money. While there’s nothing wrong with businesses making profits off products, policies and practices that are beneficial to the environment, Pickens’ past and present ventures make it clear he’s no friend to the earth. In fact, he’s admitted that he’s taking advantage of public fears about climate change, and he’s obviously not too concerned about the environmental impact of draining the Ogallala Aquifer.

Amidst current awareness about global warming, he feels confident that he’ll soon be making big money off the business of selling water. Population growth, prolonged droughts and the production of certain biofuels continues to put a tremendous strain on water resources, and Pickens doesn’t see why he shouldn’t pad his bank account as a result.

The Ogallala runs through an area of America that’s already threatened. Annual withdrawal from this aquifer is already outpacing the recharge rate by 300%. The amount of groundwater in the aquifer has been steadily declining in recent years. The government also faces a hurdle that billionaires with access to oil might be able to jump more easily: the rising cost of energy needed to pump water from the aquifer is making it tougher to access it. The USDA laments that “even in areas where the pumping depth is economical, geology limits pumping access as the water table declines”.

Undoubtedly, a public water crisis is brewing. While other countries have been suffering a lack of water for years, America has remained largely insulated from the problem. We’re only beginning to experience the effects of a water shortage, partially due to unscrupulous deals made by bottling companies like Nestle along with America’s dependence on bottled water. The more people buy bottled water, the less money goes into the public water system. Corporations with dollar sign fairies dancing in their minds see it as an opportunity to grab and wield control over the supply. In a country dominated by a ‘winner takes all’ capitalist attitude, that sets us up for trouble.

What exactly would the corporate privatization of water mean to the public? For one thing, water would no longer be considered something that all people have a right to. It would be a commodity, bought and sold by private individuals and companies, based on availability and the public’s willingness to pay. Corporations tend to value profits over service. Obviously, we can’t live without water. We’d be at the mercy of the people in control.

T. Boone Pickens isn’t the only one grabbing up water rights. In fact, most of the companies that are buying land with access to aquifers are foreign. Major players here and abroad include Viviendi, Perrier, Suez, Bechtel and Monsanto. Right now, only 5 percent of the water supply is in corporate hands, but that could change at any time, especially as the World Bank and other organizations push for privatization.

The only obstacle that remains in Pickens’ and other investors’ path is finding buyers. Several water districts have already refused to sign up, mostly due to pressure from political and environmental groups campaigning against the privatization of water. The Sierra Club is one of them, and their efforts to educate the public in Texas might just pay off. Until the day that Texas gets so dry officials are desperate for water and willing to do just about anything to get it, that is. Then a ball may be set in motion that will change public water access as we know it. We can only hope that other solutions are put forth before that becomes a reality.

Link [Bloomberg News] + [USDA] + [Sierra Club]

Photo credit: Time Magazine + Sierra Club

Axis of Corporate Evil: Taco Bell, Wal-Mart, and the NRA Hired Black Ops Private Security Team to Spy on Green Activists

Taco Bell, Wal-Mart, and the NRA hired the private security firm Carlyle Group to get all “black ops” on eco-activists asses. They rumaged through their garbage to find confidential documents (the lesson here- shred your papers) and even social security numbers.

A private security company organized and managed by former Secret Service officers spied on Greenpeace and other environmental organizations from the late 1990s through at least 2000, pilfering documents from trash bins, attempting to plant undercover operatives within groups, casing offices, collecting phone records of activists, and penetrating confidential meetings. According to company documents provided to Mother Jones by a former investor in the firm, this security outfit collected confidential internal records—donor lists, detailed financial statements, the Social Security numbers of staff members, strategy memos—from these organizations and produced intelligence reports for public relations firms and major corporations involved in environmental controversies.

In addition to focusing on environmentalists, the firm, Beckett Brown International (later called S2i), provided a range of services to a host of clients. According to its billing records, BBI engaged in “intelligence collection” for Allied Waste; it conducted background checks and performed due diligence for the Carlyle Group, the Washington-based investment firm; it provided “protective services” for the National Rifle Association; it handled “crisis management” for the Gallo wine company and for Pirelli; it made sure that the Louis Dreyfus Group, the commodities firm, was not being bugged; it engaged in “information collection” for Wal-Mart; it conducted background checks for Patricia Duff, a Democratic Party fundraiser then involved in a divorce with billionaire Ronald Perelman; and for Mary Kay, BBI mounted “surveillance,” and vetted Gayle Gaston, a top executive at the cosmetics company (and mother of actress Robin Wright Penn), retaining an expert to conduct a psychological assessment of her. Also listed as clients in BBI records: Halliburton and Monsanto.

Evil motherbleeping corporations. Souless, hungry, exploitative corporations. Grrr… This stuff makes Mr. Cranky Green mad!

Link [Mother Jones] via [The Raw Story]

Honest Tea Founder Lays Out Some Honesty- Why They Sold (Out) to Coke

Honest Tea is a slightly sweetened tea brand that just turned a decade old. They recently announced that they were selling a 40% stake of their company to Coke, the world’s largest beverage company.

There’s been a flurry of consolidation in the organic and natural food industry with Ben & Jerrys getting bought by Unilever, Stonyfield Farm’s purchase by Groupe Danone, Tom’s of Maine selling to Colgate-Palmolive, and Burt’s Bees going to Clorox. It’s understandable that Honest Tea’s founders would want to cash out while getting access to the resources and distribution Coke has at their disposal but the path is fraught with peril. Big multinational corporations like Coke aren’t exactly known for their ability to integrate social and environmental principles with the bottom line concerns.

I wish the best of luck to Honest Tea founder Seth Goldman in navigating the stormy waters of working with Coke. We’ll be watching.

Here’s a snip from an article Seth wrote for the Inc. blog, swing over and read the whole piece, it’s good.

When Barry and I launched Honest Tea in February 1998 the only assets we had were the name Honest Tea, a Snapple bottle with a label pasted on it, and five thermoses (and the thermoses were on loan!). Our beginnings were modest but our vision was bold — we wanted to create a delicious, healthier drink with a consciousness about the way the ingredients are grown. We always hoped that the Honest brand would stand for a different way of doing business — a product that is what it says it is, a company that strives for authenticity in the way it treats its customers and stakeholders.

Despite our 66 percent annual compound growth rate (70 percent in 2007), we still aren’t reaching all the people we want to reach. Our business has inspired many, (most recently we were delighted to see Kraft join our Terracycle Drink Pouch Brigade), but we also want to see Honest be a change agent through our own actions. When we buy 2.5 million pounds of organic ingredients, as we did in 2007, we help create demand for a more sustainable system of agriculture, one that doesn’t rely on chemical pesticides and fertilizers. But when we buy ten times that amount, we help create a market that multiplies far beyond our own purchases. When we sell 32 million bottles and drink pouches with less than half the calories of mainstream alternatives, as we did in 2007, we help displace 2,400,000,000 empty calories. That’s important, but when we sell ten times that number, we help lead a national shift toward healthier diets.

So what does it take to get to the next level of impact — to see Honest products sold wherever beverages are sold, in schools, colleges, restaurants, and all the other places Coke is found? Certainly, access to capital plays a role in making that happen, and we are fortunate that our 100-plus private investors have never failed to support our ambitions and growth plans. But money on its own doesn’t make distribution happen (I note with caution the story of my friends at Jones Soda, who last year saw their market value grow fivefold without a comparable rise in sales).

Link [Inc.com] via Unique Business Opportunity