Category: Animal Rights & Environment

Statement of Elgie Holstein, Senior Director, EDF – August 15, 2017 “Today’s executive order reveals the extreme lengths to which[…]

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By Jon Goldstein

Be Prepared. It’s not just the Boy Scout motto, it’s also the way most smart businesses try to operate. Better to anticipate future compliance issues today and bake them into your forward planning, than to be caught flatfooted tomorrow.

That is a big part of the reason major multinational oil and gas producers like ExxonMobil and Shell have said they are already following methane pollution rules finalized by the U.S. Environmental Protection Agency last year. Despite EPA Administrator Scott Pruitt’s best efforts to delay implementation of these rules, the courts have repeatedly ruled in favor of their speedy and complete implementation.

Most recently the DC Circuit last week rejected the latest attempt to undermine methane pollution limits for sources in the oil and gas sector and put those standards into full force and effect. It’s a decision that shows the wisdom of ExxonMobil’s and Shell’s strategy to lean in on regulatory compliance (and highlights the danger for other oil and gas producers that seem to be content dragging their feet and exposing their investors to compliance risk).

A second policy shift last week again underlines the benefits of proper prior preparation from the oil and gas industry. Last Wednesday, the Pruitt EPA withdrew its attempt to extend the deadline for compliance with the new, more protective, health based standard for ground-level ozone, commonly known as smog. This decision came one day after a coalition of 16 state Attorneys General joined a lawsuit challenging the delay (EDF and partners also challenged the delay). This means that EPA will now again have to meet an Oct. 1 deadline for determining which areas of the country fail to meet healthy air standards.

This ozone decision is terrific news for residents of areas that struggle with smog pollution tied to under-regulated oil and gas development. With this decision, EPA and states should now have the impetus to continue working on a more expedited timeline to reduce oil and gas pollution and restore healthy air.

It’s also a workable development for the forward thinking oil and gas companies since compliance with EPA’s methane rules will also help reduce the emissions that lead to the formation of unhealthy smog. By thinking ahead on methane, these producers have also put themselves in a better position to address smog problems.

There is a real danger for the oil and gas industry in this era of federal regulatory uncertainty. By pushing the pendulum so far toward deregulation, the worst actors in oil and gas may find themselves creating the very regulatory confusion they and their investors loathe. But you don’t have to take our word for it, as Kevin Book Managing Partner with ClearView Energy Partners recently told Pamela King of E&E News, “If the Trump administration veers more toward a ‘rip it up’ approach to rulemaking, the implication could be that uncertainty limits future investments.”

A stable regulatory environment, investment certainty and cleaner air. Addressing methane is the smart move for the oil and gas industry no matter how you look at it.

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By Matt Watson

Let me first make this important point: I’ve met and worked with a lot of folks in the oil and gas industry who are truly dedicated to making their operations as safe and clean as possible – people who care about the communities they live and work in and who take pride in the reputation of the companies they work for.

That said, I’ve always rolled my eyes a little when I see companies boast in sustainability reports that they comply with all applicable federal and state laws.  Really?  Not breaking the law is the high bar you’re shooting for?

But , as it turns out, one of the nation’s largest oil and gas trade associations is now saying that not only does it oppose common-sense laws requiring companies to reduce their emissions of methane and other harmful air pollution, it’s casting doubt on the extent to which companies should even comply.

The courts have repeatedly struck down efforts by the Trump administration and industry lobbyists to suspend these pollution standards.  And these rules are now in full legal effect.

Yet, in last week’s Inside EPA/Climate, Lee Fuller of the Independent Petroleum Association of America (IPAA) is quoted saying that the court’s rejection of these efforts makes compliance “an EPA enforcement issue, and we have had no guidance from EPA on the enforcement process that they will undertake.”

There should be no confusion here. Compliance is not an enforcement issue. Compliance is a legal obligation. Any company that refuses to meet that obligation is operating outside of the law, regardless of how EPA decides to approach enforcement.

Cries that companies haven’t had enough time to get ready for these standards also fail to pass the straight-face test.  These rules were issued in June 2016 and gave the industry a full year to start taking basic steps to detect and repair leaks – using cost-effective techniques that were pioneered in the states and which have long been in use by leading oil and gas operators.

In fact, operators were required to conduct their first leak surveys at well sites and compressor stations by June 3, 2017, several days before EPA’s unlawful 90-day suspension of the standards was published. Any company that wasn’t implementing these find-and-fix practices was breaking the law then.  And any company that isn’t complying since the court ruled the suspension illegal is violating the law now.

Some in industry have bemoaned the cost and confusion of “regulatory uncertainty” as the Trump EPA attempts to roll back basic public health and environmental protections and the courts time and time again rule those efforts illegal. Even now, EPA Administrator Scott Pruitt – backed by players who represent industry’s lowest common denominator – is attempting another delay of the methane rules, this time for two years.

If the industry is truly worried about regulatory uncertainty, trade groups and the industry lobby should stop litigating against these vital protections, cease sowing doubt about their legal effect and urge Scott Pruitt to abandon his lawless efforts to undermine them. The chaos they bemoan is entirely of their own making.

It’s worth noting that not everyone in industry is playing that game.  Leaders aren’t throwing up smoke screens and dodging the issue, they’re moving forward.  In fact, both Exxon and Shell confirmed their compliance with the operational requirements of the methane rules even before the 90-day stay had been overturned by the court. That’s the kind of responsible action that’s not only good for communities and the environment, it’s good for business – in terms of both bottom-line and reputation.

As I said at the outset, I know a lot of good people in the oil and gas world – people who don’t like the turn things have taken in D.C. and who know that any short-lived upside will pale against the backlash this industry will face at home and abroad if it’s seen as doing nothing but fighting against the shift to a cleaner, lower-carbon future.

It’s time for leaders in industry to step out from behind the shadows.  If the IPAA’s of the world are allowed to speak for everyone, companies that are trying to do the right thing will be tagged as retrograde thinkers right along with them. Instead of proving that they can evolve, adapt and be part of the solutions demanded by and owed to both their host communities and the planet, they’ll be riding a side-car to obsolescence.

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By Boma Brown-West

Walmart made two big moves last week to reinforce its commitment to leadership on safer chemicals. In 2013 Walmart sent a major demand signal for safer chemicals through the supply chain – issuing its Sustainable Chemistry Policy that covered 700 suppliers and over 90,000 cleaning, personal care, and cosmetics products on its shelves. The policy called for greater ingredient transparency and the reduction and elimination of chemicals harmful to human and environmental health, starting with eight prevalent chemicals of concern. Last week, Walmart released its latest results following up on these commitments and became the first retailer to participate in the Chemical Footprint Project annual survey (and the second major retailer to become a CFP signatory).

Walmart’s participation in the Chemical Footprint Project is a new indicator of its continued commitment to safer products

The Chemical Footprint Project is an initiative to benchmark how effectively companies are managing the chemicals in their products and supply chains. As I mentioned in a previous blog, it’s a way for investors and large purchasers to assess which firms are carrying heavy chemical risk and which ones are demonstrating competitive leadership in response to growing demand for safer products. So far, 24 companies, including Walmart, participate in this program – sending a clear signal to their suppliers, investors, and consumers that chemicals management is material to business success. Leaders identified in the CFP survey show that adopting and enforcing policies and measuring progress are key to reducing chemicals of concern.

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Walmart just made two big moves to reinforce its commitment to leadership on safer chemicals
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Progress on its ground-breaking policy

Also last week, Walmart quietly released its second annual Sustainable Chemistry Policy report, showing progress on its policy to eliminate priority chemicals. The chemicals of concern were drawn from 16 reputable regulatory and other authoritative lists – starting with eight High Priority Chemicals.

A chemical inventory is the first step in meeting a commitment to reduce your chemical footprint

Before jumping into the results, let’s review why this public disclosure of results is important. If you can’t measure something, you can’t improve it effectively. Walmart’s public reporting of quantitative data shows that it is serious about measuring its chemical footprint and being transparent about it. Walmart uses aggregate chemical inventory information across and within the departments under the policy to track progress.

Clear, meaningful metrics to track progress are the next step

Walmart tracks progress by looking at both weight volume – pounds of chemicals going out the door – and ubiquity – number of suppliers using these chemicals and the number of products in which they are using them. Both are important indicators of the prevalence of these chemicals in our world. Last year, Walmart achieved a 95% reduction in its High Priority Chemicals (HPCs) at Walmart US stores, equivalent to 23 million lbs. Since then, another 372,230 lbs have been removed – a 30% drop compared to the 2015 weight volume and a 96% drop since the policy began in 2014. Similar reductions continue to happen at Walmart’s Sam’s Club stores:  another 75,629 lbs have been eliminated, a 53% drop compared to the 2015 weight volume and a 68% drop compared to 2014. The second year results also reaffirm that a concerted effort to reduce a select set of priority chemicals, i.e. HPCs, drives results faster. Overall usage of Walmart Priority Chemicals continues to decrease (at Walmart US stores), but not nearly at the rate of that of Walmart HPCs.

Walmart’s public disclosure also shows that the company isn’t afraid to share where performance is lagging

Though overall weight volume of the HPCs continues to drop, their ubiquity continues to be a challenge. Both the number of products (i.e. UPCs) containing the HPCs and the number of suppliers using them continues to drop, at both Walmart US and Sam’s Club stores, but at a rate slower than the weight volume reduction.

The tools for success

In the end, Walmart continues to make progress against its policy as demonstrated through real data. Beyond data, what else contributes to Walmart‘s success?

• Clear targets
• Driving action through the business (where relationships between buyers and suppliers stress the importance of the commitments)
• Public accountability

With new notable commitments popping up from other major retailers like Target and CVS, we hope to see similar tracking and reporting of meaningful results both directly and through the Chemical Footprint Project survey.

FURTHER READING: See EDF’s previous analysis of Walmart’s first year results here and here.

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Boma Brown-West is Senior Manager of Consumer Health at EDF + Business. You can follow her on Twitter for insights and analysis on safer chemicals leadership in the supply chain and subscribe to her Behind the Label newsletter here.

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