Business Is Taking the Lead in Worldwide Sustainability Movement

June 26th, 2007

It’s just as Bruce Piasecki predicted in his book World, Inc: large corporations are taking a leadership role in creating sustainable environments. How far this has gone was demonstrated to me today in an Environmental Leader story about Tokyo Electric Power Company (TEPCO), which is buying emissions reductions from a Biomass Clean Development Mechanism Project in Chile being sold by Arauco, the largest forestry company in Latin America. CantorCO2e, a subsidiary of Cantor Fitzgerald, is facilitating the transaction and most of the information about it is on CantorCO2e’s website. Cantor, which many remember as the company that lost many of its partners and staff in the 9/11 tragedy, has developed a special subsidiary to deal in environmental solutions.

Apparently, Arauco will create energy through the burning of Sustainable Biomass (wood waste) which will then be dispatched to the Chilean electricity grid, thereby reducing CO2 and methane emissions equivalent to 500,000 tons of carbon dioxide, using the latest and cleanest technology available. Much of the biomass will come from Arauco’s own pine plantations and none of it is taken from native forest. These emission reductions will be sold to Tokyo Electric Power Company, one of the largest power suppliers in Japan.

Why this is noteworthy? First, because it shows a partnership that is global in nature and dedicated to a sustainable solution. Second, because the facilitator is a subsidiary of a company that has long been known to broker and trade in corporate debt, providing liquidity to major global corporations. Market mechanisms are being used to further environmental objectives. So this is not a feel-good initiative, but one with sound economic underpinnings.

Entry Filed under: Sustainability, Greenhouse Gas Emissions, Corporate Governance