211: What is "Green" for the Nonenvironmental

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1 ACC s 2013 Annual Meeting Monday, October 28 11:00 AM - 12:30 PM 211: What is "Green" for the Nonenvironmental Lawyer? Scott Fulton Principal Beveridge & Diamond Rich Kassel Senior Vice President, East Coast Operations Gladstein, Neandross & Associates Terry Thiele Director, Sustainable Product Strategies The Lubrizol Corporation This material is protected by copyright. Copyright 2013 various authors and the Association of Corporate Counsel (ACC). Materials may not be reproduced without the consent of ACC or the copyright holder. Reprint permission requests should be directed to ACC s Legal Resources Department at legalresources@acc.com 1 of 38

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5 Lílian Lefol Nani Guarieiro and Aline Lefol Nani Guarieiro (2013). Vehicle Emissions: What Will Change with Use of Biofuel?, Biofuels - Economy, Environment and Sustainability, Prof. Zhen Fang (Ed.), ISBN: , InTech, DOI: / of 38

6 TONS PER YEAR 97% REDUCTION PROGRAM INCLUDED: EARLY RETIREMENT OF 2-STROKE ENGINES, ULSD, PM FILTERS, >1000 CNG OR HYBRID BUSES 10 6 of 38

7 BETTER COMBUSTION TAILPIPE EMISSION CONTROLS CLEANER FUEL 11 NOx [g/hp-hr] PM [g/hp-hr] 7 of 38

8 BENEFITS VS. COSTS OF DIESEL CLEAN-UP IN THE U.S. BENEFITS COSTS Source: EPA, 2001, 2004, 2008, 2010 diesel and marine engine rules Costs and benefits are annualized for $ figures shown in billions of 38

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10 98% Supply is from North America >85% Supply is from the U.S.A. 10 of 38

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12 October 27-30, Los Angeles, CA 12 of 38

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19 Advantages Easily identifiable Customer recognition Third party credibility Criteria set (no surprises) For-profit certifier more responsive Disadvantages Only uses a symbol Limited geographic value No detailed information Criteria may not be very rigorous No linking to company s unique effort May not qualify/match criteria Timeline controlled by 3rd party For-profit certifier of lesser credibility Potential recurring license cost Potential recurring revalidation 19 of 38

20 Advantages Single issue easier to understand Targeting claim to market need In charge of timeline May be lowest cost (w/o LCA data) Broader geographic value Disadvantages Self claim is least credible Assume full risk for claim Single issue has limited enviro message May require outside LCA support Advantages Detailed data Outside LCA more credible Outside LCA assumes risk Data could support Type I(s) Broader geographic value Disadvantages Higher cost In-house LCA less credible In-house LCA assumes risk More complicated to do More complex message Longer timeline May lead to unanticipated choices 20 of 38

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22 Greenwash the Seven Sins Greenwash the Seven Sins 22 of 38

23 Greenwash the Seven Sins Greenwash the Seven Sins 23 of 38

24 Greenwash the Seven Sins Greenwash the Seven Sins 24 of 38

25 Greenwash the Seven Sins 25 of 38

26 1960s ~ 1990s Problems local, immediate (burning rivers ) Focus on factories (smokestacks, drain pipes) Focus on individual chemicals (chlorine) Adversarial / quasi-religious (good v. evil) Command + Control (nothing but cost make it go away ) No value to customers Assigned to Ops or HSE 1990s ~ NOW Problems more global, distant (drowning polar bears ) Focus shifting to products (hybrids, biofuels, ODI) Focus shifting to environmental impacts (human toxicity) More pragmatic, cooperative (potential NGO allies) Quantification + monetization of environmental performance Consumers interested Customers now engaged Businesses now engaged 26 of 38

27 1960s ~ 1990s 1960s ~ 1990s 1990s ~ NOW 27 of 38

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32 LCAs look at a broad array of environmental impacts: Acidification Water depletion Eutrophication Nonrenewable energy Aquatic ecotoxicity Fossil depletion Human toxicity Terrestrial ecotoxicity Renewable energy Mineral depletion Climate change Photochemical smog formation Ozone depletion LCAs puts environmental impacts in context with one another 32 of 38

33 Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification 33 of 38

34 Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification 34 of 38

35 Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification 35 of 38

36 Increasing one impact while decreasing another impact (vertical burden shift in table) Shifting impact from one life-cycle stage to another (horizontal burden shift in table) Shifting impacts from one geographic location to another (upstream to supplier or offshore to another country) Impact Manufacturing Product Use End of Life Resource Depletion Global Warming Human Toxicity Acidification 36 of 38

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