Category Archives: Risk Management

Celebrating Earth Day 2018

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April 22nd, 2018

Elena Rohner, Wharton IGEL Communications Coordinator

On Wednesday, April 18th, a fabulous group of interdisciplinary stakeholders came together on the 8th floor of Jon M. Huntsman hall for a day of knowledge sharing and thought leadership about how business and democracy will be impacted by climate change.  Our panelists ranged from a global manufacturer of consumer products, to a leading global advisory, broking and solutions company, to one of the world’s largest utility providers, to experts in atmospheric and oceanic sciences, to Navy veterans and business continuity consultants.  Margaret Leinen, Director of Scripps Institution of Oceanography, concluded the day on an upbeat note – weaving together all of the key lessons from panelists and leaving the audience with the knowledge that, despite the enormous task in front of us, we have experts at all points of a complex system working to adapt, mitigate and build resilience for a future that often seems daunting.

Nothing changes overnight, nor does it happen in a vacuum.  Continued interdisciplinary collaboration and a systems-oriented approach are critical to making an impact.

Thus, today – the 48th celebration of Earth Day – we would like to thank all of our sponsors and stakeholders at IGEL for their commitment to making this world a better place for everyone and everything.

For more information on our 2018 Conference, visit this page of conference proceedings: https://igel.wharton.upenn.edu/2018-conference/

HAPPY EARTH DAY

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Driving the New Climate Economy: How Companies and Communities Can Thrive in a Changing World

By Lisa Manley, Director, Sustainability Engagement, Mars

April 7th, 2018

There are clear signals that the climate has changed over the past century. Around the world, people are beginning to feel the effects, from increased average and extreme temperatures, to changes in rainfall patterns, to more severe and less predictable storms. At Mars, we source key agricultural materials from countries and communities that are vulnerable to the impacts of climate change. We believe it’s time to take a new approach to addressing this challenge, using our influence and reach to take action that proactively addresses the impacts of climate change within our supply chain and operations. Here are three things our business and others are doing to take action.

Setting Science-Based Targets

 More than 97 percent of actively publishing climate scientists agreehuman activity is extremely likely to be causing the climate-warming trends over the last century. To avoid the worst consequences of climate change, science tells us we should limit global warming to less than the two degree Celsius threshold outlined in the Paris Agreement on climate change. As the saying goes, you can’t manage what you don’t measure. With that in mind, the first thing business should do is trust the science; then align measurable goals and actions around that science.

We looked to the best-available science to guide us in setting our climate goals at Mars. That science says we must reduce the total greenhouse gas (GHG) emissions across our value chain by 27 percent by 2025 and by 67 percent by 2050(from 2015 levels). That means not only changing how we operate, but also working with partners and suppliers to transform entire value chains so that the ingredients we need to make our best-loved products, like M&Ms and Uncle Bens, are produced with lower environmental impacts. This isn’t an easy goal to meet. But we know it’s what’s necessary to unlock the systemic changes that are needed to benefit people and the planet.

Committing to Renewable Energy

The second thing business should do is look for the places where we can get the most immediate momentum and leverage that momentum for scale. At Mars, energy use is the major driver of our GHG emissions from direct operations. That’s whywe’re big fans of renewable electricity with a goal to eliminate 100 percent of the GHG emissions from our direct operations by 2040. This goal covers the energy use from about 420 sites in more than 80 countries around the world.

We’re already using or purchasing renewable electricity to cover 100 percent of our operations in Belgium, Lithuania, the United Kingdom and the United States. And in 2018, we plan to add Austria, the Czech Republic, France, Mexico, Poland and Spain to this list.In addition to renewable electricity, renewable thermal energy is an important part of our energy use in our factories. For that reason, we helped launch the Renewable Thermal Collaborative – a coalition for organizations that are committed to scaling up renewable heating and cooling at their facilities and dramatically cutting carbon emissions.

Fostering Executive Engagement and Advocacy

The third imperative for business action is to ensure we are aligning what we say with what we do. We need more vocal business advocates for climate action. We are walking this talk through coalitions such as We Are Still In, a declaration made by 2,700 cross-sector leaders in the U.S. to commit to tackling climate change, ensuring a clean energy future and upholding the Paris Agreement. It also can happen through executive advocacy. For example, our Mars chairman, Stephen Badger, recently authored an op/ed piecein The Washington Post,which makes a strong call to action to global businesses on climate change.

We also need to extend our advocacy to include the seats of power and influence within government. That’s why we engage with groups like the Ceres BICEP(Business for Innovative Climate and Energy Policy) Network, to bring business leaders’ voices to Capitol Hill and local legislatures on climate action and clean energy.

For global businesses, it is our time to step up and lead on climate action. This is not just the “right thing to do,” but also makes good business sense; investing in sustainable practices today will help us become stronger, more resilient businesses in the future.

 

SEM HeadshotLisa Manley, Senior Director of Partnerships & Engagement, Mars, Incorporated

Lisa is Senior Director of Partnerships and Engagement within the sustainability team at Mars, Incorporated. In this role, she works to build momentum for the company’s Sustainable in a Generation Plan through compelling communications and engagements as well as uncommon collaboration.  She works with the global sustainability team to create and oversee integrated sustainability strategy; set high-level goals and commitments; assess and drive scaled investments; and manage global sustainability partnerships and programs. Priority platforms for engagement include climate action, water stewardship and land use within Mars’ approach to healthy planet; increasing income, respecting human rights and unlocking opportunities for women within Mars’ approach to thriving people; and food safety & security, product & ingredient renovation and responsible marketing within Mars’ approach to nourishing wellbeing.

Lisa has nearly twenty years of experience working to advance sustainable business growth with consumer goods companies such as Mars and The Coca-Cola Company.

Lisa holds a bachelor’s degree in international relations and a master’s degree in higher education administration from the University of Virginia.  Outside of work, she collects photography and enjoys golf, tennis and biking.

Energy Policy Now: Rising Seas and the Future of Coastal Cities

April 4, 2018

Jeff Goodell is a contributing editor with Rolling Stone magazine, where his writing focuses on environmental and climate issues. Last year he published his sixth book, The Water Will Come: Rising Seas, Sinking Cities, and the Remaking of the Civilized World, which earned a Critics’ Top Book award from the New York Times.  

Billy Fleming is research director for the Ian L. McHarg Center at the University of Pennsylvania’s School of Design. His research focuses on climate adaptation planning along the U.S. coast.

As sea levels rise, nuisance flooding is the first wave of assault on coastal cities. Can we protect our coasts from inundation, or is retreat inevitable?

Jeff Goodell, author of the New York Times award-winning book, The Water Will Come: Rising Seas, Sinking Cities, and the Remaking of the Civilized World, talks about the impact of rising seas on America’s coastal centers in the decades to come. Will innovative engineering allow cities and towns to be protected, and at what cost? Or, will the seas prevail, leaving some areas abandoned? Billy Fleming, research director for the Ian L. McHarg Center at the Penn School of Design and an expert on climate adaptation planning, weighs in as well.

The U.S. government estimates that sea levels will rise by two feet by the middle of this century due to a warming climate. Already the impact of higher water is being felt in points around the country. In many coastal communities, nuisance flooding has become the predictable norm.  Miami Beach is spending half a billion dollars to elevate roads and install pumps in an effort to stay dry. And Houston, New York, and New Orleans, all cities that are just feet above sea level, have recently seen unprecedented and devastating flooding. Goodell and Fleming look at the political and human costs of taking action.

The Energy Policy Now podcast, now in its second season, offers insights from Penn experts, industry and policy leaders on the energy industry and its relationship to environment and society.

 

Hurricane Harvey – More exposures in the mix than just water and wind!

The full damage and devastation caused by Hurricane Harvey is not yet known and will likely be felt for months to come. While the most pressing issues facing Insureds at this time are the devastating impacts of water and/or wind damage, we all learned some unfortunate lessons from Hurricane Sandy and Katrina specifically caused during storm surges and/or flooding (and after the water recedes) which lead to unexpected clean-up costs and/or pollution legal liability issues (including but not limited to):

  • Historic/Pre-Existing Contamination – Properties having historical or pre-existing contamination could be disturbed and, subsequently, carry pollutants to multiple locations resulting in the cross-contamination of various parts of the property and/or neighboring properties.
  • Landfill Containment Breaches – Heavy water infiltration can cause landslides carrying with it pollutants and/or contaminated waste water into nearby waterways or sensitive third-party receptor areas.
  • Floating Drums of Chemicals and Storage Tanks – Drums containing hazardous waste and storage tanks containing oils and other chemicals could be raised afloat and damaged during transport from their original locations, thereby distributing pollutants downstream.
  • Sewerage Authorities System Back-ups – Sewerage authorities have limited storage and processing capacity, therefore, large unanticipated volumes of water could result in the overflow and/or release of raw untreated sewage.
  • Mold Damage – Mold can grow at alarming rates given proper moisture, temperature range and food source (cellulose-based substrate) following a saturation event.

While property policies may include some pollution-related coverage, it’s imperative that insureds, if they have environmental insurance policies, place their carriers on notice, carefully follow the environmental claim reporting instructions and fully understand any “emergency response” coverage provisions and policy nuances.

It’s prudent for insureds to report their environmental claim to their carriers immediately. If cost estimates for remedial activities are available, they should be sent to the carrier for approval. When submitting proposals, request that the carrier approve the costs as “reasonable and necessary” pending a coverage determination.

 

This piece was originally posted as an op-ed for the Willis Towers Watson Wire. That article can be found here.

 

35611dba53fbc67f528efedc5630ec43Anthony Wagar

Anthony is a Executive Vice President and the National Sales Leader for Willis Towers Watson’s Environmental practice based in New York. He has close to 20 years of experience from a regulatory, underwriting and brokerage perspective. He blogs on matters relating to environmental risk, exposures and insurance.

The Mushroom Farming Industry: Transforming Environmental Risks into Positive Environmental and Economic Outcomes

By Max Laufer
September 5th, 2017

A little known fact about Pennsylvania is that it is the single largest source of edible mushrooms in the United States.1 The vast majority of mushroom production in Pennsylvania is concentrated in the 759 square mile 1 Chester County in the southeast of the state. Chester County alone has over 60 mushroom farms 2 harvesting over 400 million pounds of mushrooms per year, nearly 50% of the entire U.S. supply.3 Mushroom production is Pennsylvania’s second largest industry in its agricultural sector 3 and shows no signs of slowing down as demand for mushrooms in the U.S. continues to increase.4

Mushroom production has substantially less negative environmental impact than other agricultural industries and, as such, receives little to no criticism from the concerned public. In Chester County, PA, however, mushroom farming happens on a larger scale than anywhere else in the country and thus its aggregate negative environmental impact is greater than one might expect. Therefore, it is important to analyze the impact that exists and devise approaches toward decreasing it. This report will first look at the practice of mushroom farming and the ways it can affect the environment. Secondly, the report will propose specific solutions for mitigating the environmental impacts, while also considering the economic demands of the agricultural industry.

Mitigating Environmental Risks: At what Economic Cost?

Typical discourse about mitigating the environmental impacts of farming centers on minimizing both economic and environmental risk. Much discussion, for instance, has taken place about the imposing of certain economic sanctions on corporations that engage in practices that result in a substantial amount of carbon emissions. These discussions occur on the basis of environmentalists’ hopes for decreasing the frequency of use of said practices. Traditional discourse about the balancing of economic and environmental success, however, is not necessarily applicable to the mushroom industry. In fact, one’s environmental concerns need not be compromised in ensuring a balance of positive environmental and economic outcomes,. What is fascinating about the mushroom farming industry is that its harmful environmental impact actually holds the potential to be transformed into both positive environmental and economic outcomes.

Environmental Risks of Mushroom Farming

Environmental concerns over mushroom farming are almost entirely centered around the refining and disposing of its by-products. This potential environmental harm manifests itself in a couple of ways. The process of growing mushrooms entails the fungal bodies converting compost into nutrients. Carbon from said compost undergoes a conversion process initiated by the mushrooms into useable carbohydrates.5 Such a process results in a by-product known as “spent compost.”5 Spent compost is not intrinsically harmful to the environment (and, in fact, can be highly useful: a concept that will be expounded upon later). There are two aspects of spent compost that have the potential to affect environmental harm, each multifaceted in and of themselves. The first concern is that mushrooms are often commercially grown in recycled organic matter containing pesticides. The problem with this is not related to the pesticides themselves, per se, but rather with the methods of disposal of spent compost containing said pesticides. Or, perhaps, the fact that it is disposed of at all. When spent compost containing pesticides is disposed of instead of being reused for other purposes (a concept that will also be explained later in greater detail), it can pose a significant environmental threat. This threat primarily manifests itself in the form of runoff.5 Runoff from disposed spent mushroom compost can contaminate local water supplies and natural, water-based ecosystems.5

Aside from the issue of pesticide pollution, spent compost also potentially harbors harmful viruses and diseases. These diseases pose risks parallel to those caused by pesticides. They have the potential to contaminate water supplies and disrupt ecosystems. The risk of spent mushroom compost containing diseases can be easily decreased through a pasteurization process.6 Pasteurizing mushroom compost also maximizes its potential for reutilization,6 which one might predict would decrease the tendency of mushroom farmers to dispose of it in the first place.

The disposal of spent mushroom compost can pose numerous environmental risks. It does not, however, have to be disposed of. In fact, it can also be reused in several ways. Spent compost has water-retaining properties as well as the potential to retain nitrate levels of its water due to the presence of high amounts of carbon.5 As such, spent compost has the potential to be highly useful as an addition to soil for commercial farming. Further, there is also promising research that shows the efficacy of spent mushroom compost for increasing the quality of turfgrass. According to a study conducted by the Department of Plant Science at Penn State, spent mushroom compost “can improve the structure of clay soils, reduce surface crusting and compaction, promote drainage, increase microbial activity, and provide nutrients to turfgrasses.”7 Spent compost also has the potential to be reused for further mushroom harvesting. According to research also done at Penn State, “phosphorous availability may be a limiting factor” in terms of the reusability of supposedly spent compost.5 Their research has shown, however, that phosphorous availability can be increased in the substrate “by controlling the ionic activity of calcium and potassium.”5 Through this process, there lies a potential for spent mushroom compost to not actually be as “spent” as previously thought in regards to its ability to be reused for its original purpose.

If spent mushroom compost is not truly spent, however, then why is it so often disposed of? The answer appears to be simpler than one might assume. There is not widespread knowledge of the potential reusability of spent compost. According to the same research implicated earlier, mushroom farmers “must try to educate not only the community but also all possible users about the value of post mushroom substrate.”5 Ultimately, the problem appears not to be that the spent compost itself lacks uses, rather that its uses are not at all adequately considered. More widespread reuse of spent compost would not only be positive for the environment by reducing rates of environmentally harmful disposal, but it could also benefit the mushroom industry in a very positive way. In addition to producing and selling mushrooms, the mushroom industry now also has a farming substrate with remarkable potential for use in various industries. Ignoring the fact that reusing the spent compost would substantially mitigate the environmental risks associated with it, spent compost also poses a fascinating economic opportunity for the mushroom industry. The mushroom industry has the potential to repurpose its by-products for commercial sale while simultaneously mitigating the environmental risks associated with said by-product’s disposal. Investing in consumer education could prove to hold substantial economic benefits for the mushroom industry and environmental benefits for Chester County and other areas where the industry flourishes.

It is apparent that spent mushroom compost can be reused for a variety of purposes. Further, however, it is also important to note that disposal is not necessarily a terrible option if creating demand for spent mushroom compost fails. In order to minimize the environmental harm of the disposal process, though, two steps would have to be taken. The first and most obvious step would be to eliminate the use of growing substrate containing pesticides. Doing this would result in a rather innocuous by-product rather than one that poses risk of runoff. In fact, spent mushroom compost itself appears to pose no environmental risk if it does not contain pesticides (and if it has undergone a process about to be elaborated on). According to research at Penn State, the spent compost simply “decomposes to an unobjectionable soil.”5

The second step that would have to be taken to reduce environmental harm resulting from spent mushroom compost disposal would be to put in place a pasteurization process. This process involves heating the substrate to a temperature high enough to eliminate harmful bacteria and diseases.6 The primary reason why the pasteurization process is not widespread despite its apparent efficacy in minimizing environmental risks is, simply put, the cost associated with it.6 The process is not legally required and thus little incentive exists for commercial mushroom farmers to implement it.

Two potential solutions to this quandary exist: the first is for environmental regulatory agencies to legally require a pasteurization process. This, however, would likely have a negative economic impact. It would increase the costs associated with mushroom farming, potentially making the endeavor less profitable and/or driving up the price of mushrooms. Given that mushroom farming plays an integral role in the economy of Chester County, such policies might appear untenable to those fiscally-minded. Another solution, and one with less potential economic impact, would be establishing tax incentives for implementing a pasteurization process. Such a tax incentive would inevitably shift some amount of a tax burden onto taxpayers or on other industries to compensate, though it would have benefits that would not exist if a legal requirement for pasteurization was put into place. It would give mushroom farmers more ownership over their process, while still increasing pasteurization rates in the industry. Increasing pasteurization rates, of course, is highly important in regards to controlling the spread of disease resulting from disposal of spent compost. While it is unclear exactly what the economic impacts of the aforementioned policy recommendations would be, they are certainly steps worth taking if environmental risk is wished to be minimized. Economic risks from the aforementioned policies, however, would not have to be assumed if demand for spent compost meets the supply. This would, of course, be the optimal solution to the problem. What is clear, however, is that there are ways to mitigate environmental risk even if the demand never meets the supply. As such, the aforementioned policies are important considerations.

It is remarkable how much potential exists for the process of mushroom farming to be refined and realigned with common environmental goals while also providing new possible economic opportunities. By using organic material containing less pesticides, implementing a pasteurization process for spent compost, and encouraging more widespread reuse of spent compost, environmental risks can be nearly completely mitigated. Economic benefits may lie in the potential for repurposing spent compost for commercial sale. The primary barrier to overcome to realize this potential is the lack of industry knowledge about the reusability of spent compost. If such a barrier cannot be crossed, however, policy changes exist that hold the potential to still substantially mitigate environmental harm. Disposing of spent compost has little environmental risk if the mushroom industry operates under regulations either requiring or incentivizing pasteurization and lower pesticide use.

 

About the Author:

Max Laufer is a rising sophomore at Haverford College. Max was one of the co-founders of the Ideas for Action 14-18 program at Wharton. Max is passionate about problem solving and how young people can affect positive environmental change.

 

Bibliography:

  1. The One Tiny Region That Produces Nearly Half of U.S. Mushrooms – Modern Farmer. (2014). Modern Farmer. Retrieved 13 April 2017, from http://modernfarmer.com/2014/05/welcome-mushroom-country-population-nearly-half-u-s-mushrooms/
  2. Facts About Chester County | Chester County, PA – Official Website. (2017). org. Retrieved 13 April 2017, from http://chesco.org/892/Facts-About-Chester-County
  3. NSTATE, w. (2017). Economy of Pennsylvania including Pennsylvania Agriculture and Manufacturing from NETSTATE.COM. com. Retrieved 13 April 2017, from http://www.netstate.com/economy/pa_economy.htm
  4. Mitchell, D. (2015). Mushroom demand grows across board | The Packer. Thepacker.com. Retrieved 13 April 2017, from http://www.thepacker.com/fruit-vegetable-news/marketing-profiles/Mushroom-demand-grows-across-board-288830551.html
  5. Impact of the Mushroom Industry on the Environment (Mushrooms). (2017). Mushrooms (Penn State Extension). Retrieved 19 August 2017, from http://extension.psu.edu/plants/vegetable-fruit/mushrooms/mushroom-substrate/impact-of-the-mushroom-industry-on-the-environment
  6. (2017). Pasteurization of Mushroom Substrate and other Solids. Retrieved 19 August 2017, from http://www.academicjournals.org/article/article1380281604_Kurtzman.pdf
  7. Using Spent Mushroom Substrate (mushroom soil) as a Soil Amendment to Improve Turf (Center for Turfgrass Science). (2017). Center for Turfgrass Science (Penn State University). Retrieved 19 August 2017, from http://plantscience.psu.edu/research/centers/turf/extension/factsheets/mushroom-soil

Where Technology and Service Meet, Innovation Will Follow

By Sergio Corbo, SVP Marketing & Communications and Chief Marketing Officer, Veolia North America

Technology is not inherently innovative, but in combination with service it has the ability to generate truly innovative solutions. At Veolia, our services shape a more sustainable world. However, by combining those services with technology, our partners are able to solve their environmental challenges more swiftly and efficiently.

Consider the case of a municipal water utility. Cities, counties and municipalities across North America rely on hundreds of miles of underground pipes to deliver reliable wastewater services to their customers. Those same pipes also play a role in preventing wastewater from seeping into the environment and being released into public waterways. Advanced flow-monitoring technology can help these system operators identify when a leak is about to happen, and if it happens, where it is located. This simplifies the process of mobilizing employees, saving the city money and mitigating damage to precious natural resources.

It is this type of application, at the intersection of technology and service, that helps our organization prepare customers for the sustainability challenges of the future.

This relationship works in reverse as well: SourceOne Energy, a subsidiary of Veolia North America, offers its customers a web-based energy management system called EMsys that collects, manages and reports energy information from sub-meters, building management systems and utility invoices. By combining this data with our team of energy analysts, account managers and IT professionals — as well as our global Energy O&M and Energy Advisory Services — we can help our clients develop comprehensive programs that optimize their energy usage while accelerating cost recovery and base forecasting.

Cities and commercial customers are not the only ones that can benefit from the integration of technology and service. Our environmental specialists and field experts also use specially designed software to log and safely handle the various hazardous materials they collect from their customers. This ensures a smoother experience for our partners upon collection, and easy government reporting through our Customer Information Management Solutions secure web portal.

All of this data is great, but it’s only as good as the people using it to deploy the necessary sustainable solutions. As consumer pressures force businesses to become more socially responsible, technology that aids in more effective and cost-efficient service delivery will prove to be more of an asset than ever.

A Sustainable Development Expert’s Take on the 10th Anniversary IGEL Conference

By Noam Lior, PhD, Professor of Mechanical Engineering and Applied Mechanics, University of Pennsylvania

The vital urgent challenge: with projected population increase of 30%, to 9 billion within the next 33 years, exponential increase in the demand for resources, the associated large scale of projects, the proven serious impact on the environment, all development must be done sustainably to prevent major deterioration of present and future life quality or even global disaster. For the utter skeptics: at the very least, prepare for damage to the business, and stricter government regulations, monitoring, and enforcement.

Education, for business or otherwise, requires, as much as possible, definitions, methods that are quantitative/scientific, correct data, and wide acceptability, standardization and uniformity. This is especially important for the complex highly multidisciplinary field of sustainable development which is of vital importance to humanity’s survival (or at least well-being), and thus also has a meta-ethical foundation. Education in business sustainability must increasingly and more rigorously address the role of sustainability as a business paradigm, including multi-generational and international/global considerations. Business education should consider and support the evaluation and substantiation of national and international sustainable planning policies, now for example the US new administration’s directions, and the UN Sustainable Development Goals (SDG). It should include a description of the dangers of Greenwashing and other sustainability fraud.

Sustainable development requires a scientific approach, close and honest cooperation between all humans, across any borders they drew, vision of the future, and much respect for the environment that we so temporarily occupy.

IGEL at the COP22

By Eleanor Mitch, CEO and Founder of EM Strategy Consulting, Wharton alumna

The swift approval and ratification of the Paris Agreement[1] (104 countries of the 197, or 58%, have ratified the agreement!) was nothing short of “miraculous” in CIDCE[2] president Michel Prieur[3]’s words. Never before had an international agreement been so rapidly approved and adopted by so many nations in such a short span of time (approximately 1 year). Indeed, Prieur, one of the “fathers” of the principle of non-regression in environmental law, was instrumental in ensuring the addition of “this momentum is irreversible” in para.4 of the Marrakech Action Proclamation[4]. He has participated in the drafting of many international conventions since the 1970s and sees great hope in the rapid action even though we and future generations will still have to face the grave effects of climate change.

As part of this historic movement of awakening to the realities of the changes climate change must bring about, Wharton IGEL was represented with a presentation in absentia[5] by Eric Orts[6] on the implications for business of the Paris Agreement. Indeed, one of the key sectors that will be facing changes is the business sector. While markets have already chosen more sustainable energy sources in some areas (investments in wind and solar power, and Morocco boasts the world’s largest solar power plant, which just went live in 2016[7]), much more needs to be done, all throughout the supply chain, especially in Operations.

For the first time ever at a United Nations Framework Convention on Climate Change Conference of the Parties (UNFCCC-COP), an event uniting the ITC[8], IFAD[9], WTO[10], UNCTAD[11], UNFCCC[12] and UNFCCC Subsidiary Body for Implementation[13] was held to discuss how to move forward with business and trade on the Paris Agreement. During the event, Wharton IGEL Alumni Eleanor Mitch raised the point of the role of business schools, and especially IGEL’s, in leading the way to new business opportunities and innovation in sustainability. Given that Wharton graduates and those of other business schools will become business leaders, it is important to strengthen ties with the international law-making, enforcing bodies and business schools to prepare graduates to provide services and products for the challenges the world faces: environmentally displaced persons, sea-level rising, sustainable energy and consumption among others. Innovation and creativity-driven prosperity can come hand-in-hand with sustainable development.

 

[1] https://unfccc.int/resource/docs/2015/cop21/eng/l09.pdf

[2] http://cidce.org/

[3] http://cidce.org/structures-institutional/

[4] http://unfccc.int/files/meetings/marrakech_nov_2016/application/pdf/marrakech_action_proclamation.pdf

[5] Eleanor Mitch, presented for Eric Orts

[6] http://cidce.org/presentations-cop-22-cop-22-presentations/

[7] http://www.greenprophet.com/2016/02/worlds-largest-solar-power-plant-goes-live-in-morocco/

[8] http://www.intracen.org/

[9] https://www.ifad.org/

[10] https://www.wto.org/

[11] http://unctad.org/en/Pages/Home.aspx

[12] unfccc.int

[13] http://unfccc.int/bodies/body/6406/php/view/reports.php#c

Following the Green Brick Road with MES and IGEL to Real-World Sustainability

By: Nathan Sell*

January to July 2014 were the quickest and perhaps busiest months of my life to date. As a Masters student in the Environmental Studies program at Penn I was finishing up my degree, joining the Initiative for Global Environmental Leadership (IGEL) team, and job hunting. My time at IGEL was an invaluable experience in many ways. I joined in the thick of event planning just as the annual conference and a host of other events were all being planned.  This “trial by fire” had me leveraging my new knowledge as an MES student, as well as my educational background, and building a new set of communications and outreach skills.

I was in awe at the audience that IGEL has and the power that its events have to bring together leaders in sustainability and push the discussion on what companies can do for business and the environment. A lot of the skills I refined while at IGEL both caught the attention of my current employers and have served me well in my new role.

As a participant in the ORISE (Oak Ridge Institute for Science and Education) program, I’m working with the EPA Office of Water at the headquarters in Washington, DC. As part of the Climate Change Team, I work on issues closely tied to sustainability.  Balanced between communications and research, a portion of my work is dedicated to facing EPA’s message to the public through social media and outreach. My research at the moment focuses on “Blue Carbon,” carbon sequestered within coastal marine ecosystems such as mangroves, sea grass beds, and salt marshes. Blue Carbon is getting a lot of attention, and for good reason. These ecosystems are shown to store carbon up to 100X faster than terrestrial ecosystems such as forests, and store this carbon for incredibly long periods of time. They’re part of the puzzle to building climate change resilience. Seeing how policy can be leveraged for additional protection and expansion of these threatened environments, and seeing where business can build blue carbon into international carbon markets are some of the drivers that will be increasingly important in the future.  It’s an exciting intersection of science, policy and business that I’m thrilled to be working on, and an amazing way to begin putting my MES degree and IGEL experience to use.

*Nathan is the former IGEL Coordinator and currently works with the EPA Office of Water on their Water Policy Staff.  @mister_sells

Adapting to Climate Change: Environmental Liability

By: Anthony Wagar

Over the past several years, more and more companies are becoming increasingly aware of climate change issues and the necessity for sustainability/resiliency planning.  This awareness comes in many forms but primarily centers on how their business might be affected financially (through legal liability, fines/penalties, government regulations, and financial disclosure requirements) or just simply public relations surrounding responsible corporate citizenship. 

As the climate change threat becomes more real, based upon its estimated path into the future, industries are preparing for the potential impact, the importance of sustainability planning and facing that possibility that they may need to be prepared to pay a price on their carbon output.

This is not isolated to only major oil companies or large manufacturing companies who utilize vast amounts of coal to generate energy (some companies that have already taken the initiative to consider sustainability planning include firms such as Microsoft, General Electric, Walt Disney, ConAgra Foods, Wells Fargo, DuPont, Duke Energy, Google and Delta Airlines just to name a few).

Storm Surge and/or Flooding

Adverse weather events such as flooding, storm surges, droughts and heat-wave could lead to unexpected clean-up costs and/or pollution legal liabilities issues.  A few “real life” examples illustrated below.

Historic/Pre-Existing Contamination

Properties having historical or pre-existing contamination could be disturbed and, subsequently, carry pollutants to multiple locations resulting in the cross-contamination of various parts of the property and/or neighbouring properties.

Landfills

Heavy water infiltration can cause landslides carrying with it pollutants and/or contaminated waste water into nearby waterways or sensitive third party receptor areas.

Drums and Storage Tanks

Drums containing hazardous waste and storage tanks containing oils and other chemicals could be raised afloat and damaged during transport from their original locations, thereby distributing pollutants downstream.

Sewerage Authorities

Sewerage authorities have limited storage and processing capacity, therefore, large unanticipated volumes of water could result in the overflow and/or release of raw untreated sewage.

Mold Damage

Mold can grow at alarming rates given proper moisture, temperature range and food source (cellulose based substrate) following a saturation event.

“Green” Materials

Many environmental insurers are now providing coverage which give Insured’s an option to replace property with “green” materials following damage from pollutants, hence, further reducing their “carbon footprint” and addressing sustainability issues.

Many businesses experienced these scenarios during Hurricane Sandy, which resulted in costly remediation, bodily injury/property damage and staggering legal defense costs.

Droughts and Heat-Waves

While most of these loss scenarios discussed above would be addressed under a pollution legal liability policy, there are other “non-pollution” related environmental damages that would not be covered. For example:

Loss of Operating License

A major soft drink company lost their lucrative operating license in India because of an exhaustion of water resources used as raw material.

Supply Chain Disruption

A major footwear and clothing manufacturer was disrupted because an extreme weather event negatively affected cotton growth (which as one of their primary raw materials).

From a risk-management perspective, all of these exposures affect a company’s business risk and, ultimately, how insurers may view them in terms of underwriting appetite, coverage, premium, and limit for certain classes of risk.

While public policy and government intervention can help raise the importance and address the climate change issue, it’s actual corporations that can make the most impact through their own individual greenhouse gas reduction and sustainability efforts to ensure their own business success and longevity.

Climate change will continue to be one of the top concerns facing businesses across the board. Therefore, adapting proper risk management strategies and loss control planning measures early on is key.

– See more at: http://blog.willis.com/2014/04/adapting-to-climate-change-environmental-liability/#sthash.7eCgYB7w.dpuf