1. Sustainability and Climate Change : A Personal Challenge For Law FirmsBy
Bill Blackburn, co-chair
ABA Climate Change, Sustainable Development and Ecosystems Committee
April 22, 2009
Climate Change, Business and the Law:
What Business Lawyers Need to Know Now
Ad Hoc Committee on Climate Change and Sustainability
of the Business Law Section and the Environmental Law Section,
State Bar of Michigan
The Inn at St. John’s, Plymouth, MI
William Blackburn Consulting, Ltd.
Web:
Phone:

2. What is sustainability??

3. General Definition of Sustainable Development UN Brundtland Commission (1987)
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

4. General Definition of Sustainability Triple Bottom Line (Elkington 1997)
Meeting the bottom line of not just economic (financial) performance, but social and environmental performance as well.

5. General Definition of Sustainability 2R’s (Blackburn 2007)
Respect: respect for people and other living things
Resources: the wise use of economic and natural resources
---for the purpose of promoting the long-term well-being of the organization and society.
Write this down:

6. Why are companies (even small ones) going Green??

7. Top Reasons For Increased Focus on Sustainability by Companies (Source: 2007 Conference Board study of 18 major corporations. )
Reputation, brand
Stakeholder pressure (esp. customers)
Reduce waste (and costs), increase productivity
Employee morale, motivation and recruitment
Peer pressure (competitors, high-visibility companies)
WHY?

8. Sustainability Issues in Tough Economic Times
Financial viability of the organization, its suppliers and key customers
Waste/energy reduction (cost)
Cost-efficient products
Employee relations
Safety
Ethics
Support for the unfortunate

9. Two Benefits for Organizations in Proactively Seeking Sustainability
Long-term financial viability
Loyalty of key stakeholders
DuPont, Dow and 3M saved $1 billion from P2
GE $50 million from safety, Intel $30 mil from contractor safety programs.
Baxter $800 million cumulative over 12 years
Raytheon saved $10 mil in electricity costs in 2007 from energy reduction efforts

10. Business Needs the Loyalty of Key Stakeholders to Be Successful
Other
Companies
Investors
Our
Company
Government
Communities
Carbon Disclosure Project
Customers
Rating
Groups
Activists
General
Public

11. Building Stakeholder Loyalty
Transparency
Credibility
Stakeholder
Loyalty
Stakeholder
Engagement
Strategic communications (reporting; engagement); no “greenwash”
Working in the “discomfort zone” on the toughest issues
“See ourselves as others see us”
Econ, Env, Soc
Performance

12. Some Observations About Sustainability
Sustainability is not about one thing.
The business case for sustainability is really the business case for a process that looks at sustainability trends and issues and prioritizes among the opportunities and threats to an organization to select those for action that contribute the most value.

13. Common Business Threats & Opportunities
-Legal
-Financial
-Reputational
-Competitive
-Operational
-Productivity, cost
-Employee relations
-Reputation
-License to operate, community appeal
-Sales, new markets, customer appeal
-Innovation, new products and services

14. 40% of the World Will Live in Water-Scarce Regions by 2025
Next 40 years ave supply of fresh water will be cut by 1/3
Threatens survival and food supply, hydro power
Source: WRI, UNEP, WBCSD, Tomorrow’s Markets—
Global Trends and Their Implications for Business, 2002;
Jeff Seabright, Coca Cola Presentation, TCB, May 31, 2007.
<0.5
4.0-10
>10
Extreme
Scarcity
Scarcity
Stress
Adequate
Abundant
Surplus
Ocean/
Inland Water
No Data
1000 m³/person/year

15. World’s Population
(Billions of people)

16. Nearing Peak in World Oil Production

17. Climate Change Visible
Polar ice is melting and sea levels are beginning to rise slightly due to global warming. Also by 2030, no glaciers in Glacier Nat’l Park
Climate scientists say an unprecedented build-up of CO2 and other GHGs in atmosphere has caused an increase in ave global tempt of 1 degree over last 100 years, 5-7 degree in Alaska)
Also expected to change weather patterns in various parts of the globe, increase sea level and shift habitat of plants and animals
Tick-borne encephalitis

18. Sustainability Trends: Conditions and Responses
Opposition to Globalization
Extended Producer Responsibility
Green Products
Green Marketing/Labeling
Green Product Certification
Rise in Socially Responsible Investing
Investor Concerns about Corporate Governance
Increased Demands for Transparency/ Public Reporting
Growing Power of NGOs/CSOs
Increasing Global Terrorism
Over-consumption of Resources
Obesity; Poor Food Nutrition
Fossil Fuel Depletion
Climate Change
Deforestation
Threats to Biodiversity
Fresh Water Depletion/Water Contamination
Wetlands Destruction
Fish Depletion
Coral Reef Destruction
Spread of Hazardous Pollutants
Declining Soil Quality
Ozone Depletion
Declining Corporate Credibility
Growth in Global Business Competition
Speed of Communications/ Digital Divide
Widening Prosperity Gap (Health, Income, Services)
Population Growth
Serious Disease
Mental Health Problems
Increased Immigration; Lower Fertility in Industrialized Nations
Hunger and Malnutrition
Child and Forced Labor
Education Needs for the Disenfranchised
Urbanization
No of TNCs jumped 10x in 30 years
51 of world’s largest companies aren’t countries but companies
10% have access to internet; 50% haven’t used a phone
Extended Producer Resp: proactively control risk; hazards info, responsible for harm; take back
Light brings heat brings change; surge in reporting; stockholder resolutions
150% increase in International NGOs in 20 years

19. Sustainability Trends Drive Response of Organizations
Climate Change
Fossil Fuel Depletion
Energy Conservation
Carbon Footprinting
Recycling
Recycled Content
Dematerialization
Over Consumption
of Resources
Changing Population
Profile
Diversity Programs

20. Sustainability Trends Drive Response of Organizations
Ethical Sourcing
Supplier Assessments
Child and Forced Labor
Growing Concern about Toxics Contamination & Env. Problems
Spread of Toxic
Pollutants
Toxics Elimination
From Inks, Electronics, etc.
Sustainability Reporting
Green Labeling Rules
Product Certifications
Growing Mistrust of
Business

21. What can law firms do?

22. ABA-EPA Office Climate Challenge (140+ endorsers)
Adopt one of the following:
Adopt two paper management practices (double-sided printing; buying recycled paper; recycling paper)
Join EPA WasteWise program (reduce paper waste and quantify results)
Join EPA Green Power Partnership (buy power from renewable sources)
Join EPA Energy Star™ Program, with energy mgmt plan and goal (Energy Star equipment; good energy mgmt systems and practices; energy audit, etc.)

23. Policy Tool Development Process (12 Drafts)
Conference Board corporate model policy
CCSDE Working Team (approx 20 lawyers)
12 pilot firms; 2008 workshop
ABA, state bar, and city implementation tools
Other feedback from ABA & state bar groups, sustainability experts, et al.

24. Model Sustainability Policy for Law Organizations
Vision: It is in the best interests of our law organization and society as a whole that our organization move along the path to sustainability. To that end, we will strive to achieve the following vision of performance, publicly communicate this commitment, and periodically report our progress and challenges in fulfilling it:
Economic success: the wise use of financial resources
Organization’s Economic Prosperity. Our organization is positioned to survive and prosper economically.
b. Community’s Economic Prosperity. We help our community survive and prosper economically through the taxes, salaries, and suppliers we pay, and through our civic and philanthropic efforts.

25. 2. Social responsibility: respect for people
a. Respect for Employees. We treat our employees in a respectful, fair, non-exploitative way, especially with regard to compensation and benefits; promotion; training; open, constructive dialogue with management; involvement in decision-making; working conditions that are safe, healthy and non-coercive; right of privacy; employment-termination practices; and work-life balance.
b. Diversity, Fair Hiring Practices. We promote diversity and use hiring practices that are fair, responsible, non-discriminatory, and non-exploitative for our employees, management board, and suppliers.
c. Responsible Governance; Professional Courtesy. We manage our risks properly, use our economic power responsibly, and operate our organization in a way that is ethical and legal. We treat with due respect others who are involved with us in the discussion of legal issues and resolution of legal claims.
d. Dealing With Clients. We acknowledge that our primary legal and ethical duty is to serve our clients honestly and effectively. We compete fairly for their business, respect their privacy and confidentiality, and provide them efficient and effective services under the conditions we promise.
e. Awareness and Advice;. We help raise the awareness of our employees about sustainability issues in the primary fields of our legal practice, and include consideration of such issues in the advice we provide our clients.
f. Well-being of Stakeholders. We work collaboratively with our communities and other stakeholders to enhance the well-being of others through pro bono services, philanthropy, and/or other ways.

26. 3. Environmental responsibility: respect for life; the wise management and use of natural resources
a. Resource and Energy Conservation. We conserve our use of natural resources and energy to the extent practicable.
b. Waste and Pollution Prevention and Management. We reduce to the extent practicable the quantity and degree of hazard of the wastes we generate from our operations, and handle them in a safe, legal, and responsible way to minimize their environmental effects. We also reduce to the extent practicable the direct and indirect emissions of greenhouse gases and other harmful air pollutants from our operations and travel.
c. Reduction of Supply Chain Impacts. We work with others in our supply chain to help assure adverse environmental impacts and risks associated with our operations are reduced and properly controlled, and environmental benefits optimized.

27. 2Rs/Triple Bottom Line in Practice
Conference Board study
Corporate sustainability reports (2700 companies) and Global Reporting Initiative
UN Global Compact (5500 corporate endorsers)
Draft ISO SR standard (2010) (all organizations)
STAR Community Index (2010) of ICLEI- Local Governments for Sustainability (1000+ cities)
STARS standard of Association for Advancement of Sustainability in Higher Education (600+ institutions)
Sustainability Tracking, Assessment, and Rating System (STARS)
US Green Building Council

28. Why Firms Want a Model Policy?
Personal values of partners, employees
Progressive management planning structure (e.g., Levenfeld Pearlstein, LLC)
Save money; improve productivity
Elevate “brand” with clients, recruits, public, using an approach from a respected third party (ABA)
Align with clients
Client public reporting and standards (corporate, city, university)
Product standards (sustainable agriculture, fisheries, forestry, etc.)
Socially responsible investing
WHY?

29. Contents of Model Policy Tool See http://www. abanet
FAQs, background, rationale
Model policy (TBL: economic, social, environmental)
Implementation guidelines (suggested processes)
Practices ideas
Shared Ideas List (includes Climate Challenge)
References (includes state bar and city-developed lists of practices and other tools)

30. Action by State and Local Bars
California bar: Lawyers Eco-Pledge and Green Guidelines (practices)
Massachusetts bar: Lawyers Eco-Challenge and Green Guidelines (practices)
Oregon Lawyers for a Sustainable Future: Misc. law office environmental tools
Michigan, Texas and NY City bars: looking at sustainability
ABA: Multi-state Law Sustainability Practices Forum

31. Policy Pilot Firms/Endorsers
Ballard Spahr Andrews & Ingersoll, LLP
Berg Hill Greenleaf & Ruscitti LLP
Giarmarco, Mullins & Horton
Holland + Knight
Levenfeld Pearlstein, LLC
Manko, Gold, Katcher & Fox, LLP
McMahon DeGulis, LLP
Robinson & Cole LLP
Porter Wright Morris & Arthur LLP
Schwabe Williamson & Wyatt
Sonnenschein Nath & Rosenthal, LLP
Nixon Peabody LLP

32. Supporting ABA Groups
Climate Change, Sustainable Development & Ecosystems Committee of SEER (leader)
Key supporters:
SEER Council
Standing Committee on Environmental Law
Law Practices Management Section
Preliminary supporters:
Pro bono legal services
Diversity
Women in the profession
Professional responsibility/ethics
Labor
Business
Young lawyers
Law Students

33. How to become an ABA-listed endorser?
Supporter: Declare support for policy in principle
Leader:
Adopt comparable TBL policy
Evaluate current status (see References tools and Shared Ideas List )
Develop action plan
Periodically report progress
Publicize on ABA SEER website

34. What can you do? Endorse the Climate Challenge
Endorse the Model Policy tool (supporter or leader)
MI Bar provide rep to Multi-state Forum
MI Bar co-sponsor ABA resolution on Model Policy tool
Continue to promote sustainability practices
Develop own tools as needed

35. William Blackburn Consulting, Ltd.
Web:
Phone:
The Sustainability Handbook—
The Complete Management Guide
to Achieving Social, Economic and
Environmental Responsibility
(See Web site)

36. Climate Change: US International Negotiations
No real scientific debate on need to act
Obama now committed to cap-and-trade
Domestic legislation moving fast; will affect international negotiations
Major Economies Forum on Energy and Climate (April in DC, July in Italy)
16 countries (includes China & India) and EU
US: Cut 14% from 2005 levels by 2020; cut 80% by 2050
For UN discussions in Copenhagen Dec 09 (for 2012 post Kyoto)
Auction prices could be $20-$100 per ton;
14% = flat to 1990 levels; EU is at 20% reduction from those levels
UN Framework on Climate Change –Poznan, Poland Dec 08
EU Parliament 20/20/20: by 2020, 20% reduction from 1990 levels; 20 % renewables; 20$ increase in efficiency

37. Climate Change: Congress
Draft Waxman-Markey cap-and-trade bill (ACES) to floor by end of May.
12% GHG reduction ; 20% by 2020; 83% by 2050; exempts operations emitting less than 25,000 tons per year
No position on auction vs allocation or use of auction funds
Tighter standards for cars (2010 +), fuels (2014 +)
Standards for coal-fired power plants (including carbon capture & storage)
Electricity sector standards on efficiency, renewables (6% by 2012, 25% by 2025), smart grids
Rep Waxman (Chair, House Energy & Commerce. Comm) and Markey (Chair, Energy & Env. Subcomm.)
American Clean Energy and Security Act of 2009

38. Climate Change: Congress
16 senators in Moderate Dems Working Group; will need 60 votes for legislation
$60 B in Stimulus Bill for renewable energy and building energy efficiency, transit and rail; +$150 bil. In budget for ($3.1 bil. to state energy programs; $3.2 bil. to cities & counties)
Rep Waxman (Chair, House Energy & Commerce. Comm) and Markey (Chair, Energy & Env. Subcomm.)
American Clean Energy and Security Act of 2009

39. Climate Change: EPA Endangerment Decision CA Auto Stds
Decided GHGs endanger public health & welfare and auto emissions contribute to that (under the CAA per Mass vs. EPA)
Precursor for emission stds if Congress doesn’t act
CA Auto Stds
EPA re-considering waiver of preemption for CA GHG auto stds
Would open door for 17 other states
Mandatory GHG Reporting
Would cover 13,000 reporters
EPA holding hearings
Advanced Notice of proposed rulemaking by EPA on Endangerment decision 7/11/08
CA 2002 law: reduce auto GHG emissions 30% by 2016

40. Climate Change: States
State are active: 31 states have climate plans; will have mandatory GHG regs by 2015
Cap and trade/ tax; emissions standards
Energy efficiency (products, buildings, utilities)
Renewables
Financial incentives; technical assistance
Regional programs
The Climate Registry (39 states, D.C., all Canadian provinces & 6 Mexican states)
Western Climate Initiative (WCI- 7 states, 4 Canadian provinces)
Regional GHG Initiative (RGGI- 10 Eastern states),
Midwestern GHG Reduction Accord (6 states, 1 province)
RGGI-2 auctions; $3-4 per ton
Registry—reporting
WCI –cap and rrade at 15% reduction ; not adopted yet, although CARB’s CA AB32 (effective 2012) has set a cap at 1990 levels by 2020
Midwest GHG RI similar to WCI