Sustainability
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Reviewed by Johanna Goetzel, Lead Researcher for Environmental Debt.
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Environmental Debt: The Hidden Costs of a Changing Global Economy connects the financial and environmental crises – both causes and solutions. Author Amy Larkin shows how the costs of climate change, extreme weather and pollution combine to wreak havoc on the economy, as well as the earth, creating what she calls, “environmental debtâ€. Larkin proposes a new framework for 21st century commerce to empower profitable business that coexists with the environment. As she succinctly states: “No nature, no business.â€
Intended for business leaders as well as those who acknowledge that ’business as usual’ cannot continue, Environmental Debt presents complex and provocative ideas in easy-to-read prose and includes numerous cultural touchstones to help ground the reader. Larkin artistically combines her expertise as an entrepreneur, producer and environmental activist, to deliver an approach for business to succeed without compromising nature.
Larkin introduces the “The Nature Means Business Frameworkâ€, comprised of three tenants: (1) Pollution can no longer be free and can no longer be subsidized; (2) The long view must guide all decision-making and accounting and (3) Government plays a vital role in catalyzing clean technology and growth while preventing environmental destruction.
Pollution can no longer be free and can no longer be subsidized.
In this first section, Larkin focuses on the example of externalities from coal production. A study developed by Greenpeace and researchers at Harvard showed that in just the United States, the full cost of coal extraction and combustion to society on top of the coal companies’ costs is $350 – 500 billion a year. These hundreds of billions of dollars, called externalities in economics, represent actual bills paid by fisheries, businesses, schools, municipal water systems, and unwitting families and their healthcare providers. Despite conventional wisdom, coal is not a cheap energy. Its price is cheap only because it is subsidized by its own victims. Larkin included two similar studies that estimate the externalities of oil in the United States at over $800 billion annually. In total the external costs of coal and oil is well over $1.1 trillion, the annual 2012 United States deficit. The section concludes that environmental debt is a serious contributor to fiscal instability. Larkin and her team at Greenpeace, where she worked as the Solutions Campaign director for six years, decided to take their names off the Harvard report so that it would have more salience in the business community.  As an environmental activist and businesswoman, Larkin and her book navigate this space expertly, drawing on personal anecdotes and peer-reviewed publications.
The long view must guide all decision-making and accounting.
This section recounts the catastrophic 2011 floods in Thailand and the historic land degradation that compounded the impact. These intense storms became catastrophic because of massive deforestation, much of which occurred in the 20th century. Without enough trees, the ground was unable to soak up the floodwater.  Local Thai factories that produced car parts were closed for months. These closures caused shortages for Toyota and Honda, and both companies were forced to suspend manufacturing in Kentucky, Singapore and the Philippines. Toyota alone suspended production of 260,000 vehicles (3.4% of its previous annual output) and tens of thousands of workers lost their jobs. Larkin explains how the logging in 20th century Thailand caused financial havoc around the world in 2011 — a good 20 years after it occurred. The people of Thailand, several governments, numerous companies and shareholders from around the world all paid the logging’s environmental debt. This section stresses the importance of long term planning with regard to business decision-making. Larkin commends Unilever, the first multinational corporation to do away with quarterly earning reports. Taking the long view requires a more holistic view of business success, focusing on the means to justify the ends.
Government plays a vital role in catalyzing clean technology and growth while preventing environmental destruction.
Calling on government to help support changes to the business world, Larkin focuses on how funding infrastructure has benefits for businesses and individuals. She provides the example of the Internet, one of the pieces of government-funded infrastructure we most take for granted today. The Department of Defense began work in the 1960s and 70s, and it was later catapulted to its full potential by the High Performance Computing Act of 1991, and is now used by everyone, thanks to government support. With regard to the role the government can play for energy transformation, Larkin suggests that it will inevitably end up spending billions of dollars to keep the lights on, as “this is government’s job.†The choice is whether to pay now for clean technology or pay later with environmental debt.  Larkin re-frames the current energy debate with this in mind.
Conclusion
Environmental Debt is Not Doom and Gloom
One of the book’s surprising revelations is that large numbers of multinational corporations are pushing for smart regulation in concert with activist non-profits and are implementing environmental changes in their own operations ahead of regulation. Environmental Debt showcases the courageous work of Coca-Cola, McDonald’s, Tiffany’s, Unilever, Walmart and others as well as the frontier of innovation in design, financial reporting, and biomimicry to name a few. The emphasis on leaders within corporations helping to transform the Consumer Goods sector (a consortium of 400 of the world’s leading consumer brands and retailers) is inspiring. Larkin’s personal experience with these senior leaders allows her to draw on numerous examples of ‘revolutionaries in suits’ changing the world of business practice.
The book resonates with readers of all ages and no mater where they are in their professional careers by localizing examples of how transformations are possible. She concludes, “Today, wherever you are, there is a sense that the ground is moving, both financially and environmentally. We need to reboot a crashing system. There is a real hunger to build a foundation so that the twenty-first century doesn’t feel so bloody scary. Look around your office, your home, your school, your government. We are all facing very difficult choices. It is time to work together.â€
Johanna Goetzel worked with Amy Larkin developing the content for the book, providing editorial support and guidance. Previously Goetzel and Larkin worked together on the Greenpeace Solutions campaign, helping transforming the business sector in the US and abroad. Goetzel now works on environmental health policy, focusing on the ROI for population and planetary health. She eared her Masters in Climate and Society at Columbia University and a Bachelors of Arts from Wesleyan University. She can be reached at jgoetzel@gmail.com
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By Johanna Goetzel and Jody Dean
It would come as no surprise to most that what we eat has impacts on the plant and population health, however what we don’t eat also matters. When we discard food we lose valuable energy in the form of calories, waste the energy that went into production and transport and increase food costs through lost value.  In continued support for last week’s World Environment Day, we can link our food and consumer markets to improve health.
In the US we discard approximately 40% of the total food produced. This is equivalent to 20 lbs of food each month, or $2,275 a year of unconsumed food for a family of four.  Additionally, food waste now accounts for more than 25% of total freshwater consumption and about 4% of total US oil consumption.  The climate impacts of food waste were acknowledged by New York City Mayor de Blasio, who signed a resolution to reduce the City’s climate “foodprint.â€
In parallel with the trends in waste, 46.2 million people are currently living in poverty, which is the leading cause of hunger. Â This makes wasted food an even greater problem, as discarded food could have been used to meet food demand. Addressing hunger in the United States can therefore become part of larger program to reduce wasted food, energy consumption and dollars.
This connection between waste and hunger creates opportunities to tackle both issues from an entrepreneurial standpoint. One such Boston based initiative, Spoiler Alert, attempts to leverage this connection through a mobile software platform that provides real-time information on supply and demand for excess, expiring and spoiled food. This venture not only has the ability to reduce waste and address food insecurity, but also to create new revenue streams by bringing together all stakeholders in the food-supply chain.
Multinational corporations such as Walmart have also found creative ways to turn waste into value. In line with their zero waste program, Walmart has expanded their waste reduction initiatives to include not just recycling and food donations, but also a waste diversion program that transforms used cooking oil into biofuel.
These innovative cross-sector collaborations can stimulate markets to favor healthier lifestyles, improve the environment and foster sustainable practices, effectively creating a “win-winâ€approach to health promotion. Â
May 5-11 is this year’s national Screen-Free Week, encouraging everyone to turn off digital entertainment and turn on life. At work, trends of increased sedentary behavior have proven negative health impacts but a screen-free philosophy can encourage regular breaks, improving your concentration and your health.
Since 1970, Americans work an additional 200 hours per year, translating to more hours in chairs and in front of screens. Both of these ‘risk factors’ contribute to the growing weight of the nation.
Dr. Wilmot, a research fellow at the University of Leicester, found that people with the highest sedentary behavior had a 112 per cent increase in their relative risk of developing diabetes; a 147 per cent increase in their risk for cardiovascular disease; and a 49 percent greater risk of dying prematurely — even if they regularly exercised.
According to research by the Health Enhancement Research Organization (HERO) employers incur large costs from their obese employees, between USD $644- 2,500, per person per year. Companies are now reevaluating metrics for financial success and worker productivity, investing in their office environments to promote health.
A fun way to take a break, for physical and mental well-being can be to follow the lead of Dr. Yancey, professor of health services at UCLA who advocates for group exercise breaks and a simple workout that can be done at work. Studies show that these can reduce sick leave and workers’ compensation claims. As an employer, investing in well-being leads to productivity increases, with absenteeism costs falling by about $2.37 for every dollar spent.
Power down to power up and take a moment to move away from screens this week.
Brigadier General Rhonda Cornum is an exceptional woman who advocates for connecting physical and psychological well-being as part of the global ethos for improved health.  The Vitality Institute is honored to count her as one of our Commissioners.
Rhonda’s heroic past, documented in her book, is only a shade more exciting than her work today as a farmer. Rhonda developed a love for farming early in life when she spent her summers on a family farm in Ohio. Today she grows nearly all of her own food in Paris, Kentucky, a practice she considers good for the body and environment. She believes that the closer food is to its natural state, the better it is, “if a product has more than five ingredients, it is not a real food.â€
Agriculture is the single largest employer in the world. Rhonda is one of many female farmers worldwide, but in the minority of female land owners. Women farmers produce more than half of the food grown in the world, yet receive only about 5% of agriculture extension services and own about 2% of land worldwide. Closing the gender gap in agriculture will have economic benefits for world’s economic and food system. S. Ayyappan, Director General of the Indian Council of Agricultural Research, said “By failing to invest in women farmers we are handicapping ourselves in the quest for sustainable and more productive agriculture systems and more food-secure societies.†With this global sentiment and individual demonstration of resilience, we celebrate women farmers worldwide and thank them for their efforts in literally putting produce on our plates.
Rhonda considers herself privileged to have her own farm, and in her own words, she tries to be an example of how people can live. Â On a final note, Rhonda offers the two rules that she lives by:
- The fact that you have made a mistake in the past is not a good reason to keep doing it.
- Don’t let other people’s expectations of you limit your own expectations of yourself.
Honoring resilience and inner strength, The Vitality Institute wishes a very happy (belated) International Women’s Day to all.
HarÂmoÂnizÂing the Rules of BusiÂness with the Laws of Nature
EnviÂronÂmenÂtal Debt: The HidÂden Costs of a ChangÂing Global EconÂomy, writÂten by Amy Larkin and researched by Johanna GoetÂzel, was released by PalÂgrave MacmilÂlan June 25, 2013.
The book conÂnects the finanÂcial and enviÂronÂmenÂtal crises – through both causes and soluÂtions. The book introÂduces the “Nature Means BusiÂness FrameÂwork for the 21st CenÂtury,†which proÂvides a road map for conÂnectÂing the Return On InvestÂment (ROI) of busiÂness with the surÂvival of the natÂural world.
The three pilÂlars of the The Nature Means BusiÂness FrameÂwork aim to empower profÂitable busiÂness that, by nature, coexÂist with the enviÂronÂment. They are as follows:
(1) PolÂluÂtion can no longer be free and can no longer be subsidized
(2) The long view must guide all decision-making and accounting
(3) GovÂernÂment plays a vital role in catÂalyzÂing clean techÂnolÂogy and growth while preÂventÂing enviÂronÂmenÂtal destruction.
Larkin’s “greatÂest hope is that EnviÂronÂmenÂtal Debt proÂmulÂgates new ideas into the culÂture that in turn change our underÂstandÂing of busiÂness.†The book reveals the comÂmon ground between busiÂness, civil sociÂety, sciÂence, reliÂgion, culÂture and  polÂicy reformÂers. The ideas preÂsented in the book take on extended life through an online forum called The TranÂsiÂtion Agenda, hosted by RESOLVE, where indiÂvidÂuÂals from a variÂety of secÂtors can disÂcuss and engage with issues essenÂtial to our surÂvival. No nature, no business.
Reviews of the book have been encourÂagÂing. PubÂlishÂers Weekly writes: “For anyÂone interÂested in enviÂronÂmenÂtal and ecoÂnomic polÂicy, this is a fasÂciÂnatÂing, provocaÂtive book. Brisk, bold, and blunt, Larkin is a devÂasÂtatÂing critic of curÂrent busiÂness pracÂtices, but she wants to inspire, not scold.â€
A New York native, Larkin writes about local and global issues in a clear and direct way.  Her years of work with GreenÂpeace along with her entreÂpreÂneurÂial expeÂriÂence present the short and long term impacts of enviÂronÂmenÂtal debt. The tone is encouraging–action is posÂsiÂble, and the time is now!
Amy Larkin blogs for the HuffÂinÂgÂton Post about these and other issues.
coauthored with Jody Dean–
The Bloomberg adminÂisÂtraÂtion is comÂing to a close and the search for a new mayor is in full swing. In addiÂtion to the usual polÂicy quesÂtions typÂiÂcally raised durÂing a mayÂoral race, the 2013 canÂdiÂdates were offered an unpreceÂdented opporÂtuÂnity to outÂline their platÂforms on food policy.
The need for more resilient and susÂtainÂable food polÂicy and infraÂstrucÂture for New York is well docÂuÂmented, and is the subÂject of a numÂber of food sysÂtems and anti-hunger orgaÂniÂzaÂtions. SpearÂheaded by the BrookÂlyn Food CoaliÂtion, the groundÂbreakÂing “MayÂoral canÂdiÂdate forum on the future of food in New York City†was conÂvened to engage the canÂdiÂdates in a disÂcusÂsion about food polÂicy as an “ecoÂnomic, health, enviÂronÂmenÂtal and labor iniÂtiaÂtive.†Through this forum, the pubÂlic and over 1,000 attenÂdees were able to hear the posiÂtion of each mayÂoral canÂdiÂdate on issues related to food polÂicy, food access, and the future of food in New York. These topÂics, while essenÂtial to the health and staÂbilÂity of the city, are freÂquently left out of mayÂoral debates or tied in with other issues, such as education.
Of the nine declared canÂdiÂdates, six attended the forum, modÂerÂated by MarÂion NesÂtle, ProÂfesÂsor in the DepartÂment of NutriÂtion, Food StudÂies, and PubÂlic Health at New York UniÂverÂsity. The quesÂtions posed to the canÂdiÂdates fall under three banÂners: healthy and susÂtainÂable food for schools, expandÂing access to serÂvices and aid proÂgrams (SNAP and WIC) and labor issues within the indusÂtry. The conÂverÂsaÂtion included a disÂcusÂsion about how best to inteÂgrate a food polÂicy platform.
Hunger is a comÂplex probÂlem and it is essenÂtial that it is addressed on mulÂtiÂple levÂels. Food availÂabilÂity, one imporÂtant piece of comÂbatÂting hunger, is an issue that impacts the entire ecoÂnomic and social sysÂtem. Food access and utiÂlizaÂtions are facÂtors cenÂtral to strengthÂenÂing the links between food, comÂmuÂnity, health and ecoÂnomÂics under the purview of the mayor. CanÂdiÂdates must think about the underÂlyÂing facÂtors includÂing socio-economic staÂtus that limit food accesÂsiÂbilÂity, availÂabilÂity of resources, and alloÂcate more fundÂing for social safety nets.
AccordÂing to FeedÂing AmerÂica, 2011 cenÂsus data shows that the State of New York is 14.7% food inseÂcure. Rate of food inseÂcuÂrity are higher, on averÂage, in the five borÂoughs: in Queens, 14% of  the popÂuÂlaÂtion is food inseÂcure.  In ManÂhatÂtan (Kings county) 20.4% and in Bronx, 23.3%.
All parÂticÂiÂpatÂing canÂdiÂdates spoke about the SNAP proÂgram and noted the overÂall posÂiÂtive impact for parÂticÂiÂpants, though canÂdiÂdate John CasÂtiÂmaÂtidis menÂtioned that he preÂferred the WIC proÂgram, which he believed was less prone to fraud.
SugÂgesÂtions to improve SNAP in the folÂlowÂing ways were discussed:
1. DesÂtigÂmaÂtize assisted food aid programs
2. Extend free meals  through the sumÂmer and maxÂiÂmize parÂticÂiÂpaÂtion (a posiÂtion advoÂcated for by the Food Bank of New York)
3. Offer more opporÂtuÂniÂties for enrollÂment (and locations)
4. Increase the numÂber of venÂdors who can process SNAP (improve techÂnolÂogy in stores and bodegas)
Another area ripe for expanÂsion is increased partÂnerÂships with farmÂers marÂkets and CSAs to proÂmote conÂsumpÂtion of fresh and seaÂsonal fruits and vegÂetaÂbles.  FurÂther, proÂgrams like the DouÂble Up Food Bucks (DUFB) proÂgram that matches money spent by SNAP parÂticÂiÂpants up to $20 per transÂacÂtion for the purÂchase of state-grown proÂduce. The proÂgram, already in place in MichiÂgan, could be impleÂmented in New York stores and farmÂers marÂkets. Many green marÂkets already accept EBT in New York and perÂhaps green carts can also be outÂfitÂted with the techÂnolÂogy to do so.
SevÂeral canÂdiÂdates, includÂing Anthony Weiner and Bill De BlaÂsio, spoke of appointÂing food czars or deputy direcÂtors of food proÂgrams who work cross-sectorally to develop proÂgrams and then partÂner with local groups like JustÂfood to monÂiÂtor and evalÂuÂate progress.
The food serÂvice indusÂtry is an essenÂtial piece of the food econÂomy in New York and as such, the milÂlions of parÂticÂiÂpants must be respected and proÂtected to ensure safety of food and workÂers and fosÂter an incluÂsive comÂmuÂnity where food brings us together instead of magÂniÂfies the socioeÂcoÂnomic divide. AÂ large porÂtion of the food serÂvice popÂuÂlaÂtion canÂnot curÂrently afford sufÂfiÂcient food for themÂselves or families.
Those seekÂing to improve the wages and wellÂbeÂing of food workÂers must also acknowlÂedge that a large proÂporÂtion of food-service workÂers comÂmute long disÂtances to work. The Gothamist illusÂtrates this fact with a map with cenÂsus data to show just how long comÂmutes to jobs in the City are for many workÂers. They reported that in ManÂhatÂtan, twice as many workÂers comÂmute from another county (1.6 milÂlion) as live there (830,000). Time spent in tranÂsit is time lost for wage earnÂings. The ecoÂnomÂiÂcally stratÂiÂfied city means that there are a very few peoÂple who work where they live.
CanÂdiÂdates spoke of real estate changes that could help reduce the proÂporÂtion of sales that go toward rent (John CatÂsiÂmaÂtidis said that in New York it is close to 10 perÂcent while in New JerÂsey it is merely 1.5 perÂcent). ChangÂing this by increasÂing 80–20 housÂing and mixed use real estate could radÂiÂcally change the goods and serÂvices econÂomy. Other interÂvenÂtions includÂing the folÂlowÂing can help in the short term:
1. Increase the minÂiÂmum wage. The GenÂeral IndusÂtry MinÂiÂmum Wage Act has set a $7.25 wage in many states, includÂing New York. AccordÂing to canÂdiÂdate Sal Albanese, that is not livÂable wage.
2. Hire locally when posÂsiÂble, develop neighÂborÂhood economies to supÂport food systems.
3. Increase eduÂcaÂtional opporÂtuÂniÂties for indusÂtry workers.
While a food polÂicy platÂform was ostenÂsiÂbly the focus on the forum, not all of the canÂdiÂdates address this issue directly within their camÂpaigns. Rather than answerÂing the quesÂtions about hunger, school food and the food econÂomy, many instead rolled these issues into other secÂtors of their camÂpaign platÂforms, such as disÂpleaÂsure with Mayor Bloomberg’s polÂicy iniÂtiaÂtives or reducÂing the amount of money spent on healthcare.
This seems to indiÂcate that despite the focus on food sysÂtems proÂvided by the forum, the future of food in New York City may not yet be at the foreÂfront of the city’s politÂiÂcal conÂsciousÂness.  HisÂtorÂiÂcally, the work around these issues has been carÂried by non-profits and comÂmuÂnity groups, and that trend is likely to conÂtinue until city govÂernÂment embraces the idea of develÂopÂing a more susÂtainÂable and resilient food system.
On sevÂeral occaÂsions the canÂdiÂdates spoke of the need for colÂlabÂoÂraÂtion between govÂernÂment, busiÂness and civil sociÂety. Food sysÂtem govÂerÂnance effiÂciency can be increased through havÂing an open colÂlabÂoÂraÂtion. Some canÂdiÂdates spoke from perÂsonal expeÂriÂence, includÂing John CatÂsiÂmaÂtidis, who is the owner of GristÂedes, about the advanÂtages of larger stores and chains. OthÂers advoÂcated for bodeÂgas and fresh carts to receive greater subÂsiÂdies and sup​port​.In all cases, it is imporÂtant to supÂport the equiÂtable operÂaÂtions of  a comÂbiÂnaÂtion of small marÂkets (and incuÂbaÂtor spaces, like  La MarÂqueta  menÂtioned by ChrisÂtine Quinn) and larger chains where supÂply chains are clearly stated (i.e. Whole Foods).
StrateÂgies for buildÂing a more inteÂgrated and resilient food sysÂtems will likely emerge when canÂdiÂdates are pushed and held accountÂable. MarÂion NesÂtle noted her “astonÂishÂment†that food was a takÂing a priÂmary focus in the race, howÂever there is still a lot of work to be done in addressÂing the underÂlyÂing issues of access, healthÂfulÂness and expandÂing SNAP and WIC. The forum was a great occaÂsion for diaÂlogue. More opporÂtuÂniÂties for disÂcusÂsion about food econÂomy, ecolÂogy, and politÂiÂcal sysÂtems are essenÂtial for New York’s susÂtained health.
Links to each candidate’s camÂpaign issues are available: