Sustainability
Reviewed by Johanna Goetzel, Lead Researcher for Environmental Debt.
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 debt”. 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.”
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 Framework”, 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.”
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
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.”
In parallel with the trends in waste, 46.2 million people are currently living in poverty, which is the leading cause of hunger. 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-win”approach to health promotion.
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.”
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. 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.
Harmonizing the Rules of Business with the Laws of Nature
Environmental Debt: The Hidden Costs of a Changing Global Economy, written by Amy Larkin and researched by Johanna Goetzel, was released by Palgrave Macmillan June 25, 2013.
The book connects the financial and environmental crises – through both causes and solutions. The book introduces the “Nature Means Business Framework for the 21st Century,” which provides a road map for connecting the Return On Investment (ROI) of business with the survival of the natural world.
The three pillars of the The Nature Means Business Framework aim to empower profitable business that, by nature, coexist with the environment. They are as follows:
(1) Pollution can no longer be free and can no longer be subsidized
(2) The long view must guide all decision-making and accounting
(3) Government plays a vital role in catalyzing clean technology and growth while preventing environmental destruction.
Larkin’s “greatest hope is that Environmental Debt promulgates new ideas into the culture that in turn change our understanding of business.” The book reveals the common ground between business, civil society, science, religion, culture and policy reformers. The ideas presented in the book take on extended life through an online forum called The Transition Agenda, hosted by RESOLVE, where individuals from a variety of sectors can discuss and engage with issues essential to our survival. No nature, no business.
Reviews of the book have been encouraging. Publishers Weekly writes: “For anyone interested in environmental and economic policy, this is a fascinating, provocative book. Brisk, bold, and blunt, Larkin is a devastating critic of current business practices, but she wants to inspire, not scold.”
A New York native, Larkin writes about local and global issues in a clear and direct way. Her years of work with Greenpeace along with her entrepreneurial experience present the short and long term impacts of environmental debt. The tone is encouraging–action is possible, and the time is now!
Amy Larkin blogs for the Huffington Post about these and other issues.
coauthored with Jody Dean–
The Bloomberg administration is coming to a close and the search for a new mayor is in full swing. In addition to the usual policy questions typically raised during a mayoral race, the 2013 candidates were offered an unprecedented opportunity to outline their platforms on food policy.
The need for more resilient and sustainable food policy and infrastructure for New York is well documented, and is the subject of a number of food systems and anti-hunger organizations. Spearheaded by the Brooklyn Food Coalition, the groundbreaking “Mayoral candidate forum on the future of food in New York City” was convened to engage the candidates in a discussion about food policy as an “economic, health, environmental and labor initiative.” Through this forum, the public and over 1,000 attendees were able to hear the position of each mayoral candidate on issues related to food policy, food access, and the future of food in New York. These topics, while essential to the health and stability of the city, are frequently left out of mayoral debates or tied in with other issues, such as education.
Of the nine declared candidates, six attended the forum, moderated by Marion Nestle, Professor in the Department of Nutrition, Food Studies, and Public Health at New York University. The questions posed to the candidates fall under three banners: healthy and sustainable food for schools, expanding access to services and aid programs (SNAP and WIC) and labor issues within the industry. The conversation included a discussion about how best to integrate a food policy platform.
Hunger is a complex problem and it is essential that it is addressed on multiple levels. Food availability, one important piece of combatting hunger, is an issue that impacts the entire economic and social system. Food access and utilizations are factors central to strengthening the links between food, community, health and economics under the purview of the mayor. Candidates must think about the underlying factors including socio-economic status that limit food accessibility, availability of resources, and allocate more funding for social safety nets.
According to Feeding America, 2011 census data shows that the State of New York is 14.7% food insecure. Rate of food insecurity are higher, on average, in the five boroughs: in Queens, 14% of the population is food insecure. In Manhattan (Kings county) 20.4% and in Bronx, 23.3%.
All participating candidates spoke about the SNAP program and noted the overall positive impact for participants, though candidate John Castimatidis mentioned that he preferred the WIC program, which he believed was less prone to fraud.
Suggestions to improve SNAP in the following ways were discussed:
1. Destigmatize assisted food aid programs
2. Extend free meals through the summer and maximize participation (a position advocated for by the Food Bank of New York)
3. Offer more opportunities for enrollment (and locations)
4. Increase the number of vendors who can process SNAP (improve technology in stores and bodegas)
Another area ripe for expansion is increased partnerships with farmers markets and CSAs to promote consumption of fresh and seasonal fruits and vegetables. Further, programs like the Double Up Food Bucks (DUFB) program that matches money spent by SNAP participants up to $20 per transaction for the purchase of state-grown produce. The program, already in place in Michigan, could be implemented in New York stores and farmers markets. Many green markets already accept EBT in New York and perhaps green carts can also be outfitted with the technology to do so.
Several candidates, including Anthony Weiner and Bill De Blasio, spoke of appointing food czars or deputy directors of food programs who work cross-sectorally to develop programs and then partner with local groups like Justfood to monitor and evaluate progress.
The food service industry is an essential piece of the food economy in New York and as such, the millions of participants must be respected and protected to ensure safety of food and workers and foster an inclusive community where food brings us together instead of magnifies the socioeconomic divide. A large portion of the food service population cannot currently afford sufficient food for themselves or families.
Those seeking to improve the wages and wellbeing of food workers must also acknowledge that a large proportion of food-service workers commute long distances to work. The Gothamist illustrates this fact with a map with census data to show just how long commutes to jobs in the City are for many workers. They reported that in Manhattan, twice as many workers commute from another county (1.6 million) as live there (830,000). Time spent in transit is time lost for wage earnings. The economically stratified city means that there are a very few people who work where they live.
Candidates spoke of real estate changes that could help reduce the proportion of sales that go toward rent (John Catsimatidis said that in New York it is close to 10 percent while in New Jersey it is merely 1.5 percent). Changing this by increasing 80–20 housing and mixed use real estate could radically change the goods and services economy. Other interventions including the following can help in the short term:
1. Increase the minimum wage. The General Industry Minimum Wage Act has set a $7.25 wage in many states, including New York. According to candidate Sal Albanese, that is not livable wage.
2. Hire locally when possible, develop neighborhood economies to support food systems.
3. Increase educational opportunities for industry workers.
While a food policy platform was ostensibly the focus on the forum, not all of the candidates address this issue directly within their campaigns. Rather than answering the questions about hunger, school food and the food economy, many instead rolled these issues into other sectors of their campaign platforms, such as displeasure with Mayor Bloomberg’s policy initiatives or reducing the amount of money spent on healthcare.
This seems to indicate that despite the focus on food systems provided by the forum, the future of food in New York City may not yet be at the forefront of the city’s political consciousness. Historically, the work around these issues has been carried by non-profits and community groups, and that trend is likely to continue until city government embraces the idea of developing a more sustainable and resilient food system.
On several occasions the candidates spoke of the need for collaboration between government, business and civil society. Food system governance efficiency can be increased through having an open collaboration. Some candidates spoke from personal experience, including John Catsimatidis, who is the owner of Gristedes, about the advantages of larger stores and chains. Others advocated for bodegas and fresh carts to receive greater subsidies and support.In all cases, it is important to support the equitable operations of a combination of small markets (and incubator spaces, like La Marqueta mentioned by Christine Quinn) and larger chains where supply chains are clearly stated (i.e. Whole Foods).
Strategies for building a more integrated and resilient food systems will likely emerge when candidates are pushed and held accountable. Marion Nestle noted her “astonishment” that food was a taking a primary focus in the race, however there is still a lot of work to be done in addressing the underlying issues of access, healthfulness and expanding SNAP and WIC. The forum was a great occasion for dialogue. More opportunities for discussion about food economy, ecology, and political systems are essential for New York’s sustained health.
Links to each candidate’s campaign issues are available:
