Saving Earth, Saving Money
Washington seems to be nearing a boiling point on global warming. In the past several weeks, Congress has held six hearings dealing with climate change, and rumors are percolating that the Bush White House is contemplating an emissions-reduction master plan of its own.
Scientists have been sounding alarms for years, so why the sudden push? One reason is the growing support of big business, which sees a chance for civic duty as well as big profits. Chief among them is chemical company DuPont, which has gone from environmental boogeyman to darling of the green movement by voluntarily slashing energy usage as well as greenhouse gas emissions-now 72 percent below 1990 levels.
In the process, DuPont has saved $3 billion and has increased business more than 30 percent. Guiding DuPont's green agenda is former Deputy Administrator of the Environmental Protection Agency Linda Fisher. As DuPont's chief sustainability officer, Fisher represented the company in its second consecutive appearance at the Clinton Global Initiative in September in New York, where she promoted the future of biofuels and energy conservation.
DuPont committed to reducing its energy consumption long before it was fashionable. Why?
It wasn't just energy. We focused on climate change back in the early '90s. DuPont was a primary manufacturer of CFCs [chlorofluorocarbons], so when it became clear they were having an impact on the ozone layer, DuPont got thrown in the middle of the discussion of phasing them out. The company learned two things: One was an awful lot about atmospheric science-we even hired an atmospheric scientist, which gave us a leading edge on understanding greenhouse gases-and secondly, we realized the impacts that these issues can have on your bottom line. Understanding this led us to take action on climate change earlier than a lot of other companies. We started the process of inventorying our emissions around 1990.
How did you reduce?
There wasn't one big, sexy thing. It was a plant-by-plant, process-by-process assessment of becoming more efficient. We use cogeneration when we can, where you produce energy from one source, like waste steam, and use it to power another. Another goal is to get 10 percent of our energy from renewable resources-like methane gas from landfills-to process our plants.
Your plants are located on landfills?
To make it cost effective you've got to be close. But it doesn't create any odor problems that I'm familiar with. If anything, we have found a lot of enthusiasm around our company for our greenhouse gas goals.
There's a lot of debate about whether you can really grow the economy and protect the Earth at the same time.
We've saved about $3 billion over the past 15 years from our conservation steps. That's important, serious money. We see growth opportunities because new products, new fuels, new materials are going to be needed for our society to make it more energy efficient. DuPont sees that opportunity as an exciting one for the company.
Your company is introducing a new fuel called biobutanol. Does this mean DuPont is getting into the energy business?
Yes, we absolutely see the biofuels market as an important one to play in. We've been doing a lot of R&D, and we've partnered with [oil company] BP. We think the growth of alternative fuels-biofuels particularly-is going to be big. [Biobutanol] can be transported through a pipeline, it can be mixed with ethanol, and it can be mixed with diesel. We also see growth opportunities in photovoltaics, materials for solar panels.
Big players like DuPont, Goldman Sachs, and BP are all calling for action on climate change. What role will business play in prodding Washington on this issue?
I think the challenges of developing a workable policy in a way that will lead to economic growth and deal with environmental issues will require the best minds in government and industry. It is unlike any other environmental challenge that we have tackled because it is so multifaceted.
By pouring money into solar panels, biofuels, and energy efficiency products, is DuPont betting on a change in the world's main energy resources?
Absolutely. We need to change our fuel mix, but we also need to become more fuel efficient, more energy efficient. Our new biofuels business is a good example. And next year we will begin to operate a plant where we will make a polymer from corn as opposed to petroleum. It can be used in carpets and fabrics.
Is the world ready to start wearing corn-based clothing?
Well, there used to be natural fabric people, and there used to be synthetic fiber people. Now we're going to have something for everyone. We've taken it full circle.
This story appears in the October 9, 2006 print edition of U.S. News & World Report.