WHY DO WE NEED ECONOMIC SUSTAINABILITY?

1. WHY DO WE NEED ECONOMIC SUSTAINABILITY? The Case for Economic Development and Environmental Preservation

2. 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

3. 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.”

4. KEY TENETS • Conserve • Recycle and Reuse • Maximize use of Renewable Sources • Replace toxic compounds with less toxic

5. Why does business care?

6. THE “CUSTOMER” • Who are our customers? • Consumers • Banks • Advocacy Groups • Stockholders • Government • Regulatory Agencies • Unions

7. 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.

8. 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 • It’s the right thing to do according to many of these company’s core values!

9. www.interfacesustainability.com

10. “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

11. 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

12. The Coca-Cola Company • “The Coca-Cola Company’s 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/environment

13. The Home Depot • “We’re dedicated to making communities a better place for generations to come. [and]…to making a positive environmental impact every day.” • Sustainable Forestry • Certified “Green” Products • http://corporate.homedepot.com • How We’re Helping • THD and the Environment

14. 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

15. SUSTAINABLE SYSTEMS: PROJECTS

16. 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

17. 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).

18. 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

19. 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

20. 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)

21. 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.

22. 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.

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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.

32. 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

33. 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

34. 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%

35. 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

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

37. 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

38. Dow Jones Sustainability Index • Companies include: • GE • Microsoft • Proctor and Gamble • Chevron • IBM • Johnson & Johnson • Weyerhaeuser

39. Economic Sustainability • Cultural Revolution • Financial Performance • Project Alignment • Workplace Impact • Customer Expectations

40. 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

41. Katie Kirkpatrick, P.E. Vice President, Environmental Policy (404) 586-8544