Automotive Leaders Discuss Navigating the Shift to Mobility
Automotive always has been a technology-driven industry, but in the next ten years, there is likely to be more change in the industry than there has been in the last hundred. And much of that change will be taking place in Michigan. That shift – which moves automotive toward becoming a more sustainable industry – was the topic of a Sept. 15, 2023, breakfast, “Navigating the Shift to Mobility – With Detroit as a Leader,” hosted by Inforum, a nonprofit focused on accelerating women’s careers. The themes included diversity, new opportunities that come with and from young and emerging talent, the power of partnerships, and the future of mobility. Panelists were: Aruna Anand, President and CEO, Automotive Group Sector; head of architecture and networking, Continental North America Kristen Tabar, group vice president, Advanced Mobility Research & Development, Toyota North America Paul Thomas, president, Mobility in Americas, Bosch (effective Jan. 1, 2024), and Alan Wexler, senior vice president, strategy, and innovation, General Motors Justine Johnson, chief mobility officer for the State of Michigan, moderated the discussion. Our takeaways follow: Thomas: When you look for talent, look for talent that looks different from you. Different countries, beliefs, and perspectives, you have to look for talent that has diverse opinions on solutions. The world isn’t as simple as you think it is sometimes. Taber: When students look for a job, remember that it is not a one-and-done deal. You may think this is your passion and you work in this space, but what we see is that people evolve. That cross-pollination and common way to move throughout your career and experience different aspects of this new mobility solution. It’s a completely different landscape that requires different skill sets and backgrounds. Anand: We need to see ourselves in those positions that we are aspiring to be. If you do not have representation, then you don’t know what it’s like and you don’t have the confidence to do something because it is not done. We need to increase the pipeline. Then you understand the reasons why you can’t do this or what else you can do to fix it. Wexler: We see a world with zero crashes, zero emissions, zero congestion. Taber: It is about the products that we put out, how we operate our businesses, and the ripple effect on our supply chains. We need very clear, measurable methods so we are using similar yardsticks. Thomas: We want to invest in communities, we invest in Detroit and the Midwest very heavily to bring mobility people into our companies. We are also always on the diversity journey. You will never know when you are done because diversity is something that you always must work on. Anand: We tend to want to be perfect before we try new things. We find reasons to not be good at things. What is stopping us? We need that coaching, mentoring, role models, all of that together to build that pipeline better. Wexler: (Talent recruitment) really starts with the “why.” … We need skillsets from other industries. We’re becoming more technology-oriented … we pioneer the innovations that move and connect people to what matters, so it’s who wants to be part of that purpose and do something impactful. Taber: We have to understand that none of us is going to be able to move the technology forward by ourselves. It is going to take partnerships that we probably wouldn’t have thought of ever before. Anand: If we can provide an environment that is flexible, then the talents will be able to grow. Thomas: The ecosystem is so large and the opportunities to do different things are available to each one of you in the room. There is so much information out there on how to get involved in mobility. Wexler: There isn’t another industry that has the same opportunity to heal the planet. Experience the full event here. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
African American-Led Grocery to Open Soon in Detroit
The Detroit People’s Food Co-op – projected to open in February at 8324 Woodward Ave. in Detroit’s North End – is an African-American-led, community-owned grocery cooperative. It seeks to address the issue of food insecurity, educate the community about nutrition and sustainability, support local businesses, and pump investment back into the area. Malik Yakini is the cofounder and executive director of the Detroit Black Community Food Security Network, the nonprofit organization that led the formation of the co-op, and serves on the co-op’s board. SBN Detroit spoke to Yakini about the co-op’s vision and sustainability goals. Q: Tell me about Detroit People’s Food Co-op. A: The Detroit People’s Food Co-op is a grocery store that’s in the development stage and is owned by member-owners. It’s projected to open in February 2024 and will have a full line of groceries, including produce sourced locally and regionally. It will carry value-added products that are produced by local entrepreneurs, and as much as possible we will hire staff from Detroit. The most significant part of a co-op is that it is not a corporation coming into Detroit to profit. It’s people in the community banding together to co-own the store so that the community reaps the benefits and profits. Currently, we have 1,958 member-owners. In this pre-opening stage, the member-owners make a lot of the decisions and shape the direction and culture of the store. The member-owners elect six of the nine members of the co-op’s board of directors, and DBCFSN appoints the other three. In June, the board contracted with an interim general manager who is tasked with getting the final pre-opening tasks done, coordinating the opening, and making sure that the store is positioned for success. The board hopes to hire a permanent general manager in the next few months. The other benefit of being a member-owner is the opportunity to share in the profits of the store. In any year the store is profitable, member-owners get a percentage. Q: What inspired the co-op? A: It grew out of discussions within the Detroit Black Community Food Security Network. When the network was founded in 2006, one of the goals was to support existing co-ops and to create this new food co-op. So, this has been percolating for 17 years. It grew out of the desire of members of the network to push back against extractive economic practices we see in Black communities within the food realm. There is only one Black-owned grocery store in Detroit – Linwood Fresh Market – and that is very recent. For a city that has an African American population of 80%, to have other ethnic groups owning almost all of the retail food outlets in the city and extracting those profits from the city just isn’t right I don’t want to overgeneralize. Some of the stores are doing a good job at community partnerships and some are not. But the desire is to push back against an economy where others come in and set up stores and use the profits for their communities and families. We want to keep the profits and decisions here in our community. A co-op is one of the best ways to contribute toward a circular economy. Q: Why do you think the co-op is critical from a business perspective? A: The co-op model is an important model that has historically been used by Blacks and others marginalized by the mainstream economy. It broadens the ownership base and by doing that, those member-owners provide some of the financing for the business as well as receive some of the profits. So it’s a model that is more accessible to low- and moderate-income community members who don’t have access to the capital. Q: Does this create job opportunities for those in the community? A: Yes. We are expecting the grocery store to create more than 40 new jobs. Above the store, DBCFSN will operate a banquet hall and kitchen facilities that will create more. An important piece of the kitchen facilities is that they will be available for rental, which we hope will inspire food entrepreneurs to step into this arena, and those doing it to scale up their businesses. So yes, the vision is to create specific jobs at the store and to stimulate new and existing food businesses. Q: What is the economic impact on the community? A: I can’t give specific dollar amounts, but generally what happens when a business like this opens, it creates new jobs in the community. And now you have more people in the community with income being spent in the community. We are expecting that in this way the presence of the co-op will stimulate the economy in the area. We are also already seeing an increase in property values, which is a mixed blessing. We want to revitalize this community, which has seen distress, but at the same time, we need to make sure that development happens in an equitable way and doesn’t push out existing residents. This is a dilemma we are faced with. Q: Do you think this acts as an example for others in Southeast Michigan to replicate? A: One of the things we know is that Detroit is in some ways the canary in the coal mine. Detroit is an example of what happens as the economy shifts from industrial to more information-based. We are acutely aware that Detroit is being watched by the world. So as we develop this and other programs, we are certainly creating a model that’s being watched globally, so we move with that awareness. I hope this model is replicated around the world. Q: How will the co-op educate the community about sustainability? A: An important part of the co-op will be community education. We are concerned about nutrition and health and also the health of the planet because they are bound together. So we have a number of activities that will be geared toward educating community members about issues related to the food system, how the
Interconnected Set of Greenways and Blueways to Create New Southeast Michigan Trail
There’s the Appalachian Trail in the East, the Pacific Rim Trail in the West, and the Continental Divide Trail in the Rocky Mountains. Now, Southeast Michigan will have its own regional trail called The Great Lakes Way. Over the past several years, the Community Foundation for Southeast Michigan (CFSEM) has convened a group of organizations, municipalities, and agencies to explore ways to build on the freshwater assets of the Southeast Michigan region. They created the vision for The Great Lakes Way. Once complete, The Great Lakes Way will be an interconnected set of greenways and blueways (water trails) stretching from southern Lake Huron to western Lake Erie, passing through the counties of Monroe, Wayne, Macomb, and St. Clair. The Way incorporates about 160 miles of greenways and 156 miles of blueways along Southeast Michigan’s coastline. SBN Detroit spoke with Greg Yankee, CFSEM director of arts and environment initiatives about the vision, the sustainability aspects, and how Southeast Michigan businesses can get involved. Q: How did The Great Lakes Way get initiated under the Community Foundation for Southeast Michigan? A: We’ve been seeing a great greenway movement happening throughout the region. Communities are making serious investments in fantastic projects but there are gaps between them. It led us to think about how to connect these trails and in general, how to give more people access to trails and greenways and waterways all across the region. So, our mission is to connect people to the outdoors, to each other, and to water in a bigger way. This requires funding and community engagement and the actual work to make it happen, and all of that needs to occur in a certain order. The Community Foundation of Southeast Michigan works across all of these communities and can facilitate the outreach, coordination, and funding so it makes sense for The Great Lakes Way to have this initiative with us. We have a 35-member advisory committee at the heart of The Great Lakes Way project, providing us with information, guidance, and connections to critical resources. Committee members include representatives from the Michigan Department of Natural Resources, the Metroparks, Michigan Trails and Greenways Alliance, the National Park Service, as well as parks and recreation leaders from the communities all along the route. Q: What solutions are you looking to provide with The Great Lakes Way? A: We feel that there is a definite need to provide more opportunities to spend more time outdoors recreating and enjoying our waterways. For me, growing up in Trenton we had Elizabeth Park on the water, but trails were limited and not connected to neighboring communities. There is a huge opportunity to strengthen community connections and make it easy for more people to experience these incredible natural resources all along our waterways. In short, there is no equitable access to water. In a lot of cases, geographical location determines whether you spend time recreating outdoors. But we are working to level the playing field and put these amenities within reach of as many Southeast Michigan communities as possible. Q: What are the goals of The Great Lakes Way from a sustainability perspective? A: Our goal is to help communities develop their public greenspaces while looking through a sustainability lens. Improving public access to water, building trails, and creating green spaces will also help grow our outdoor recreational economy – a win for the environment and the economy. When residents and businesses witness these projects making the environment healthier, getting people outside, connecting people to places, and enhancing economic opportunities, sustainability becomes more a part of our lives. We want to foster a stronger relationship between people and the watersheds they call home. Q: How does the Community Foundation for Southeast Michigan oversee the implementation of these sustainability practices? A: The projects are planned and managed by the individual municipalities, of course, not us. But our team acts as a resource to help communities in the planning stages by connecting them to resources, experts, and service providers so that sustainability is not an afterthought. We seek to help, not interfere. We are mindful of and in communication with each of the municipalities and communities developing these projects. So, if, for example, Clinton Township is putting in a kayak launch and Trenton wants to do the same, we can connect the two communities to learn from each other and share resources. We do a lot of that. We value being an ally and our goal is helping and facilitating, not managing a community’s projects. Q: We hear a lot about greenways but not blueways. What is the vision for blueways? A: Again, although I grew up in Trenton, I did not consider myself to be living on the water. That’s because the area along the water was an industrial corridor and often impossible to access for recreation. We have these remarkable rivers and lakes, but traditionally it’s only been where factories go. We want to help revitalize former industrial spaces where appropriate and open them up for public recreation and enjoyment of the water. Combining greenways and blueways will be a huge victory for everyone. The defining geographic characteristic of Southeast Michigan is our waterways, and to make a shift toward people enjoying them for recreation, nature appreciation, and gathering places is exciting. This is what creating better access to blueways will provide. Q: How can The Great Lakes Way impact the economy in Southeast Michigan? A: We commissioned a study on the economic impact of The Great Lakes Way. The study shows, all told and over time, that the total economic impact of The Great Lakes Way is in the billions of dollars. Q: How will The Great Lakes Way impact businesses in Southeast Michigan? A: The outdoor recreation businesses will be positively impacted, no doubt. Businesses and other points of interest located along the Way will benefit from people who stop for lunch, coffee, shopping, or to check out a historical landmark. We strongly believe that employers now recognize the
Recycling Rates in Michigan Are At an All-Time High
According to a recent press conference from the Michigan Department of Environment, Great Lakes, and Energy (EGLE), recycling in the Great Lakes Region is now at an all-time high. The total amount of residential recycled materials being reported for fiscal year (FY) 2022 was 620,494 tons – that’s over 66,000 tons more than the previous new record set the year prior. Materials Michiganders recycled last year would fill the football stadiums at Ford Field, Michigan State University’s Spartan Stadium, and the Big House at the University of Michigan. Michiganders recycled over 339,000 tons of paper and paper products during FY 2022, more than 154,000 tons of metals, more than 71,000 tons of glass, and over 45,000 tons of plastics and plastic products. SBN Detroit spoke to the executive director of the Michigan Recycling Coalition, Kerrin O’Brien, and executive director of Green Living Science, Natalie Jakub to get their unique perspectives on how the state got here and how businesses in Southeast Michigan are participating. Q: Recycling rates in Michigan are now at an all-time high. How did we get here? O’Brien: There is a history of recycling in Michigan communities. Those communities that made recycling a priority began to develop their own programs. With advocacy through the Michigan Recycling Coalition, we started to see state-level leadership around 2014. Then Governor Rick Snyder saw the value of recycling and productive materials management and funded four additional recycling technical assistance staffers. The state department also began working with stakeholders to identify the level of funding needed to support a robust recycling program in the state. Funding for recycling was passed in 2018 which supports community grants for infrastructure and market development which are needed to grow recycling in Michigan. Q: How do you think education has impacted the increase in recycling? Jakub: Green Living Science works a lot with youth and in schools and one of the things we continue to hear is that families will often begin recycling because their children have learned about it and want to institute it in their homes. So, more education at a young age is a natural part of this behavior. The more conversations we have about the impact that waste has on our lives, people start to understand. The simpler we can make the education and the actual act of recycling we will see more people willing to participate. The city of Detroit has a 40% recycling participation is a huge jump from 11% a decade ago, so people and businesses are learning and largely eager to support. Q: How does Green Living Science work with businesses in Southeast Michigan regarding recycling practices? Jakub: GLS began in 2011 with a focus on education in the schools but over the years we started to see a great need for local businesses to get support setting up programs. Many businesses don’t have a dedicated staff person so it’s typically an administrator now tasked with everything that is involved with recycling – which can be a lot. We developed a program called Bee Green Business to make it easy for businesses that includes setting up infrastructure, bins, signage, and education. Bee Green Business is an education and certification program that aids businesses and their employees in becoming responsible corporate citizens. This program has been successful from small independent brands like 14 East Café and Red Crown restaurant to large institutions like Henry Ford Health, Ally Financial the DIA, and more. A challenge we commonly see in commercial facilities is that they weren’t designed for more than one waste stream, so there are challenges with space issues and infrastructure needed to make the programs run smoothly and efficiently. Many haulers only offer dumpsters for recycling and we’ve learned that there’s a great need for cart programs. Something mobile that can be moved from an office to a loading dock and dumped. Q: How can we and are we bringing more businesses into our recycling efforts? O’Brien: Our perspective is that recycling services need to be on par with waste services. If we are serious about developing a circular economy and getting the most value out of the materials already circulating in our society then we have to divert waste to recycling. We are working to assure businesses have the services they need to do this. Businesses also have to make the budget and program choices to say yes recycling is worth it. Reducing waste can add to the bottom line and savings can be used to expand services to make recycling even more efficient. Real progress will be driven by a combination of factors including public opinion, consumer choice, manufacturer ESG goals, future resource needs, and policy. Together we think these elements are moving businesses to make smart choices with end-of-life materials. Q: What can businesses get even better at recycling? O’Brien: Right now, brands are driving recycling in a new way. Many national, and international brands are looking at where the resources for making future products will come from and many of them are recognizing that recycling provides them with needed feedstock for new products This long-term thinking about product development and impacts provides good reason to recycle for all of us. In addition, many more job and business opportunities will develop locally as we get better at sorting through waste to recover and process resources for manufacturing that would otherwise be thrown away. Q: What does all of this mean for job creation in Southeast Michigan? O’Brien: This is a big topic but basically what we are talking about in the development of a circular economy is creating a new sector based on extracting resources where no one saw resources before. Anything we can do in this new sector – collection, diversion, processing, secondary processing to turn plastic to pellets, for example, means a new business opportunity in this region, the state, and the country. Diverting the resources that are in our waste offers a huge opportunity for new jobs. Q: Governor Whitmer and the
SEMCOG Working to Develop Plan to Reduce Greenhouse Gas Emissions
The Detroit-Warren-Dearborn Metropolitan Statistical Area (MSA) recently was allocated $1 million to develop a plan for reducing greenhouse gas emissions and other harmful air pollution through the US-EPA’s Climate Pollution Reduction Grants (CPRG) program. The plan will cover the MSA’s six counties – Wayne, Oakland, Macomb, St. Clair, Livingston, and Lapeer – as well as Washtenaw and Monroe counties. The Southeast Michigan Council of Governments (SEMCOG), which is the lead agency for Southeast Michigan’s Climate Action Plan, will manage the funds. The plan is in place to help local governments improve and maintain Southeast Michigan’s transportation systems, environmental quality, economic interests, and infrastructure. SBN interviewed SEMCOG Planning Director Kevin Vettraino about what this will involve, how it will roll out, and how it impacts businesses, residents, and communities in Southeast Michigan. Q: Tell us about SEMCOG. A: SEMCOG is the regional planning organization for the seven counties that make up the Southeast Michigan region: Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne counties. Our primary mission is to support our local government members, including counties, cities, villages, townships, and educational institutions. We work to improve the quality of the region’s water, make the transportation system safer and more efficient, revitalize communities, and spur economic development. These things shape the areas we get involved in. I like to say we focus on planning for the issues or opportunities that cross geographic or community boundaries, such as roads, rivers, lakes, air, and the economy. Q: The U.S. Environmental Protection Agency allocated $1 million to develop plans for reducing greenhouse gas emissions, and SEMCOG is acting as the lead agency to develop a climate action plan. What will this entail? A: At a high level, the plan will establish community-developed and evidence-based methods to reduce greenhouse gas emissions that will meet the requirements of the EPA and CPRG. One approach is to enhance natural areas that capture carbon. The plan will also integrate extensive stakeholder outreach and input, along with equity considerations, and consider the impact of policies, strategies, and actions from the regional level down to the household level. This work complements the recently adopted Southeast Michigan GREEN: Strategic Framework for Growing our Resilience, Equity, and Economy with Nature, which is an initiative to address some of the region’s most pressing challenges – managing floods, fostering climate resilience, improving community health, and protecting our natural assets – all while creating vibrant places where people want to live and where businesses will thrive. Q: What is the next step and timeframe for action? A: The next step will be launching a task force with the intent to meet at least eight times over two years. Part of the large overarching task force will be smaller focus groups that will cover more specific parts of the plan. The focus groups have not been formed yet, but they are likely to focus on transit, energy efficiencies, EVs and the impacts of the transition, materials management, and nature-based opportunities and impacts. Beyond the focus groups is community engagement. This is critical for success. It’s important for us to have a two-pronged approach here, that being education and data sharing and also public engagement and input. Q: What does community engagement entail? A: Surveys, local meetings, webinars, and other outreach with a lens toward ensuring that the benefits and policies that come out of this work support all residents, including lower-income residents. These people have traditionally been underrepresented and more impacted, and we need to ensure that any actions we take support them and don’t further negatively impact them. Q: How will this impact Southeast Michigan businesses and communities? A: My hope is that through our work there is an education component. In basic terms, we need to make sure we are speaking the same language. There are a lot of terms around climate action such as equity, green infrastructure, etc., and we need to ensure that whether you are a business, community, government entity, or a resident, we all have a similar understanding regarding what these terms mean and why they are important. I hope that business leaders can see themselves within the strategies, policies, and actions that come out of this work and align with them. We all have a role to play in this. This plan will not be the silver bullet that can solve the climate challenges in the region but all of us together can make an impact. From installing a green roof or rain garden to ensuring all people have safe facilities to walk or bike to destinations, whether it’s a sidewalk or bike path or considering nature-based and green infrastructure solutions when putting in a new parking lot or reconstructing a roadway, there are things we all need to be thinking about and doing. Q: What are your main challenges? A: Again, it’s getting a common set of words and a familiar language. It’s also about education and making everyone understand the importance of the plan, and working toward a healthier region, and putting sustainability practices in place to support our climate long into the future. A lot of our work targets dates far into the future, such as 2050, and sometimes it’s difficult to get buy-in when it’s so long-term. The challenge is we need buy-in and immediate action to get to where we want on the horizon. Q: What are the main opportunities? A: First, we have the $1 million funding to help develop a plan, inventory our greenhouse gas emissions, and develop policies – which is great. Through the development of this plan, the region and our communities and businesses will become competitive for an estimated $4.6 billion in EPA grant funding for implementation. Second, if we are able to get folks both in leadership and residents across the region to both understand the importance of the action plan and to be intentional about environmental justice and the allocation of funds and the action to support those directly impacted, that is a great success. Q:
DTE Energy’s Agenda for Mitigating Climate Change
SHAWN PATTERSON, VP, ENVIRONMENTAL MANAGEMENT AND SAFETY, DTE ENERGY, AND MEMBER OF THE SBND LEADERSHIP COMMITTEE, SHARES HIS PERSPECTIVE ON MITIGATING CLIMATE CHANGE AS A TOP PRIORITY. When you’ve been in business a while, you come to understand that there is no such thing as “just business.” What we do impacts our communities, our customers, and our world. That’s part of why, at DTE Energy, we’ve built sustainability into our plans for the future to help ensure that we’re going above and beyond for what matters most. CLIMATE CHANGE IS AN ERA-DEFINING ISSUE Climate change is one of the defining issues of our era. That’s why last fall, DTE Electric unveiled our 2022 CleanVision Integrated Resource Plan, our proposal to fundamentally transform the way we produce electricity in our state, accelerating coal plant retirements and investing in cleaner Michigan-made energy – including wind and solar parks – to accelerate reductions in carbon emissions. These plans include MIGreenPower which gives both business and residential customers the opportunity to support clean energy infrastructure right here in Michigan without needing to install or maintain it themselves. Michigan businesses have already gotten involved in this program in a big way. Corporate leaders Ford and Stellantis made two of the largest renewable energy purchases ever from a utility in the U.S. in 2022, adding more than 1,000 megawatts of renewable energy to their automotive operations. This, combined with more than 85,000 residential enrollees, the MIGreenPower program is on pace to avoid as many as three million tons of carbon dioxide emissions annually, helping create a cleaner future for all. While natural gas is one of the cleanest burning fossil fuels, we offer ways for customers to offset their natural gas usage, too, with the Natural Gas Balance program. For a small fee, the program uses carbon offsets to protect forests across the Upper Peninsula and support the advancement of non-fossil fuels with renewable natural gas. This program is designed to play a role as we aspire to reach net zero greenhouse gas emissions by 2050. ENERGY EFFICIENCIES We also strive to help the businesses that support our communities with ways to make their operations more energy efficient. With our business energy advisors, business owners can find the right energy-efficient solutions for their operations. From business-specific tips and changes to technologies to help make it easier, we are here to guide our customers toward a more energy-efficient way of doing business. But carbon reduction isn’t the only thing we’re working on. We also strive to build a Michigan-based set of suppliers. DTE has invested nearly $18 billion with Michigan-based suppliers since 2010, creating and sustaining 65,000 Michigan jobs. As a founding member of Pure Michigan Business Connect, we recognize the importance of connecting with local suppliers and we require that most new bids include at least two Michigan companies. Sustaining local businesses as well as our environment are key components to building a better future for all of Michigan. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Improved Green Loan Access for Detroit Small Businesses, Nonprofits, and Residents
In 2009, the State of Michigan created the nation’s first nonprofit “green bank” called Michigan Saves. The organization provides credit enhancements for credit unions and other lenders that reduce their loan default risk. In exchange, the lenders lower interest rates to help homeowners to pay for home improvements that reduce fossil fuel use, such as high-efficiency appliances like furnaces, central air, and water heaters. That means lower greenhouse gas emissions. Fast forward to 2022 at which time Michigan Saves secured a $2.5 million loan from the Kresge Foundation and developed the Detroit Loan Fund, fundamentally changing the loan process to approve more loans for residents, and now nonprofits and small businesses in Detroit. The fund eliminates credit scores as loan criteria, focusing instead on the borrower’s ability to make loan payments. In nine months, Michigan Saves through the fund has reached a $1 million milestone in loans. SBN Detroit talked to Todd Parker, vice president for Michigan Saves, about how the fund benefits residents, nonprofits, small businesses, the economy, and the environment. Q: How does this help nonprofits and small businesses in Detroit qualify for loans? A: Yes, especially in today’s financial environment with rising interest rates because the program provides 7% fixed-interest-rate loans and, therefore, financial certainty. The Detroit Loan Fund provides funding to Detroit nonprofits, community organizations, and small businesses for solar photovoltaic, battery storage, or electrification projects. The loans provide direct financial benefits in the form of utility savings and have longer terms than most commercial loans – seven to ten years. Customers may also be eligible for federal tax credits, which further improves the business case for the loan. In all, the loan provides great terms and affordable funding for those who have not been able to receive it before. Q: Is this model of lending unusual? A: Yes. Regarding the residential component, we are focusing on the ability of the loan recipient to pay, and not simply their credit score. Very few, if any lenders do this. Commercial lending is more competitive. A 7% loan in this environment that does not rely on credit criteria is innovative. We tried to develop these programs to fill a market niche and do something other lenders are not. Q: What was the path to creating these loans? A: These loans were developed because we analyzed the loan application denial rate and saw that Detroit homeowners are denied twice as much as others in Wayne County. This systemic inequity has been baked into the credit process for years. We knew something had to be done. Detroit has been underserved for years and a loan product like this opens many doors for the betterment of the city. The concept could work statewide as well. Q: Is the intention to go statewide with these loans? A: If funding comes through yes, we’d like to expand statewide. Rolling it out in Detroit allowed us to test it, and it’s been very successful. Q: From the residential perspective, how does assisting those who have been denied previously in getting loans for energy efficiency programs help the overall communities? A: The program is designed to target customers who have the highest energy burden. Those who are paying the most for energy relative to their income. Old homes lack insulation and lack quality windows and high-efficiency heating and air. The loans allow people to reduce their utility bills but also improve the health and safety and comfort of their homes. Providing comfort and savings is our goal. Q: It also helps the environment, yes? A: Yes. It certainly helps reduce greenhouse emissions and the carbon footprint. On the commercial side, the nonprofit and small business program targets solar PV (photovoltaic) systems, which allows them to generate energy and put it back on the grid as well as get bill credits, so there are environmental and financial benefits there as well. Q: What are the criteria for accessing these loans? A: The criteria are simple. Small businesses or nonprofits simply need to demonstrate they can pay by showing cash flow. We are less focused on traditional underwriting criteria. And more focused on a holistic view to make sure they have the means to repay. Q: What else do we need to know? A: The loan programs are contractor driven, meaning they are promoted through our network of authorized contractors. Also, we get referrals from utilities like DTE, community action agencies, or other community groups. Ultimately the nonprofit or business will then enter into a direct relationship with the lender. Q: How does the lending process with businesses impact nonprofits? A: These types of measures are being heavily incentivized through the Inflation Reduction Act. It’s an exciting component for nonprofits, who don’t have to pay taxes and therefore cannot take advantage of tax credits. The IRA legislation changed the game by saying nonprofits are eligible for direct pay equivalent of a tax credit when they invest in solar PV or battery storage systems. This changes the financial picture and opportunities dramatically and provides a direct financial incentive for nonprofits. Q: How do you see it impacting the future of Detroit and the economy? A: Our funding will be exhausted this summer. If we get additional funding to continue the program, we will be able to help significantly more homeowners. Currently, we are already approaching 250 projects. On the commercial side, once the federal government releases guidance and more funding, we expect nonprofits and businesses to package this funding with federal grants and tax credits to make the projects more financially attractive. The loans also help customers deploy energy-saving steps, and therefore save on utility bills while potentially generating revenue from tax credits. These savings free them up to apply that money elsewhere and put them in a better financial position. This goes for both residents and businesses. Also, we are working with Detroit-based contractors on installing these solar and energy improvements, so the money stays local. Be sure to subscribe to our newsletter for regular updates on sustainable
The Inflation Reduction Act – How Small and Medium-Sized Businesses Can Benefit
The Inflation Reduction Act of 2022 includes $500 billion in new spending and tax breaks targeted toward climate change, clean energy, training, and workforce development, the development of clean infrastructure, and more. It puts the U.S. on a path to 40% emissions reduction by 2030 with these desired impacts: Lower energy costs Increased energy security Investments in decarbonizing all sectors Focused investments in disadvantaged communities Support for resilient rural communities Additionally, the legislation act offers businesses and entrepreneurs unprecedented opportunities but identifying these opportunities and navigating how to capitalize on them can be daunting. To help small- and medium-sized businesses understand the act, SBN Detroit held a virtual event on May 18 featuring Joel Howrani Heeres, director, Public Sector Consultants; Jerry Davis, professor, Ross School of Business; Dan Radomski, executive director, Centrepolis Accelerator at Lawrence Tech University, and Kimberly Hill Knott, president and CEO, Future Insight Consulting. Each speaker presented according to their areas of expertise, followed by a Q & A. We’ve shared some of the speakers’ points below. You can view the full event here. A significant portion of IRA rebates goes to homeowners, creating an opportunity for contractors to provide energy audits, electrification upgrades, and more. The funds allow for roughly 5,000 houses to take advantage of rebates. – Howrani There are five components involved in creating an enterprise – capital, labor, organization, supply, and distribution. The IRA creates opportunities within each of these components. – Davis When it comes to cleantech funding, it’s important to understand what stage of development you are in and how that applies to different funding opportunities. Generally, funding comes in when technologies are mature and ready for deployment. But there are different opportunities within the different stages. – Radomski As we transition to the Infrastructure Investment and Jobs Act (IIJA) there will be more investments in infrastructure, and the money will flow through state agencies and departments. – Radomski The key to being e successful with IRA funding is collaboration. Addressing climate change is multifaceted. For example, residential electrification dollars are coming. but many houses are not necessarily ready to replace fossil fuel sources with electricity. So, there is an opportunity to partner with community action agencies that manage funds for home repair to get homeowners ready. For example, the community action agency essentially does intake and prep, and a private contractor does the electrification work to use the rebates. – Howrani There are new opportunities up and down the supply chain from technicians to engineers to manufacturing. This is going to take an effort in workforce development by universities, community colleges, and manufacturers themselves. We need education in all of these areas which will lead to jobs and wealth creation. – Radomski My students surveyed local small businesses regarding their priorities around green energy. The overwhelming response was reliability. For these businesses, extended power outages could be catastrophic. This presents an opportunity – how do we solve this? – Davis Understanding that the IRA is not easily interpreted, I had my students translate parts of it into easy-to-understand How to Guides and also sample business models which can be found at Greenbiztransition.com View the full presentation and Q&A here. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Sustainability Progress in Oakland County
Erin Quetell became Oakland County’s first chief environmental sustainability officer in 2021 after working for four years as the City of Ferndale’s environmental sustainability planner. Quetell received a bachelor’s degree in Biology from Grand Valley State University and a master’s degree in Public Administration in Environmental Science and Policy from Columbia University in New York. Before her time in Ferndale and Oakland County, Quetell worked in the private and nonprofit sectors with a focus on environmental issues through service in the Huron Pines AmeriCorps program, at the Greening of Detroit, and through consulting at OHM Advisors. She is a graduate of the 2020 Michigan Women’s Municipal Leadership program and Leadership Oakland Class XXIX. She served as previous co-chair for the Great Lakes Climate Adaptation Network, and is a current board member for the nonprofits Make Food Not Waste and the Clinton River Watershed Council. SBN Detroit spoke with Quetell about her work, sustainability priorities, and how businesses in the county can be involved. Q: In 2021, you stepped into the role of Oakland County’s first sustainability officer. Now, two years later, what impact do you think you’ve been able to make? A: Well, it’s not just me. I do have a small team, and what I’m most proud of is we conducted a competitive bidding process and negotiated a renewable energy purchase so that we now have a third-party purchase agreement. Seventy percent of all electrical needs for Oakland County facilities will be from solar, which helps us toward our climate goals and helps demonstrate the priority of our decarbonization goals. Additionally, we have finalized an environmental sustainability plan for the county campus and facilities which includes a review of all the county’s buildings to best determine energy and water efficiency improvements, accessibility, carbon reduction, and other sustainability-related upgrades. Also notable, I think, is the work we are doing on the tri-county electric vehicle planning project. Residents and businesses are definitely interested in electrification, and we want to be able to offer people in our 62 cities, villages, and townships the resources they need to learn more. To that end, we developed an EV toolkit that’s a great resource for anyone interested in EV deployment. Q: What are your top priorities for the county when it comes to sustainability? A: We’ve been working to have a very clear understanding of what we need to do as an entire county in response to the climate crisis. Being fairly new in this role, I’ve been spending time meeting with groups and organizations to understand all local activity and in turn working to align with the MI Healthy Climate Plan with these greater efforts to maximize impact. As I mentioned, electrification is a priority along with the alternative fuel corridors throughout Oakland County. With funding in the pipeline, we are identifying ways and partners to expand these alternative fuel corridors to include right of ways such as Grand River and Woodward and also facilitate greater community engagement around future vehicle electrification in general. Another priority is continuing the county’s energy efficiency programming – such as weatherization programs – and leveraging opportunities to reduce the energy burden for residents and businesses. We have underrepresented communities in Oakland County that have been left out, and we need to provide help and resources to everyone going forward. Q: I read that Oakland County became part of a class of 16 communities across the country that will be working to get the county LEED-certified by late 2023. What impact will this have on the county, stakeholders, residents, and businesses? A: You can’t manage what you don’t measure and LEED certification for counties is a really good basis for sustainability metrics. LEED for cities sets a framework to collect data. The outcome of these metrics can then be utilized as a resource for businesses in the county in their acquisition and retention of talent – showing that it’s a good place to live and work. Q: How do you work with businesses in the county to become more sustainable or equitable? A: One piece of the puzzle is our procurement practices. We are being very intentional in diversifying contractors and suppliers for county opportunities. Back to the LEED Certification, we can share out stronger metrics and qualifications when we bid out projects. Government contracts can be overwhelming for smaller companies, and this information will make things clearer so we can ultimately work with a broader range of companies in the county. Outwardly facing, we have a large education push, specifically through our Oakland80 program, community navigators, and other workforce development programs. As electrification becomes more prevalent, people need additional and new training to support that transition. We are working to make sure our future workforce is nimble and has the skills in demand. So far, much of my work has been networking and discussion. I have been in many conversations with various businesses related to mobility solutions such as electric vehicle charging infrastructure, batteries, and other sustainability practices. I work closely with our economic development team to start integrating more sustainability opportunities and show how the county is supportive and pushing for greater sustainability. There is still much to be done. Q: What impact do you think Southeast Michigan businesses have on sustainability within the county and as it pertains to your role? A: I think businesses have a lot more potential to move the needle than many people realize. One of the things we are talking about is how can we develop more sustainability networks and resources and how can we work collaboratively toward our climate goals. Businesses are becoming vested, and we are starting to see more collaboration, understanding, and pressure to address greater ESG efforts. There is so much opportunity here – we have not scratched the surface, and I look forward to the potential outcomes. Q: What advice would you give businesses in Oakland County if they are looking to work together toward sustainable practices? A: I think starting with evaluating where you are today is the best way
Small Business Role in Sustainability is Largely Untapped
WAFA DINARO, EXECUTIVE DIRECTOR, OF THE NEW ECONOMY INITIATIVE, AND A LEADERSHIP COMMITTEE MEMBER FOR SUSTAINABLE BUSINESS NETWORK DETROIT During an internship with a recycler in New York in 2020, entrepreneur and environmental scientist Madeline Miller watched as the waste materials from textile companies were being processed in the facility, and something entrepreneurial clicked. In the “waste,” she saw home-building insulation that could be reused back home in Michigan while increasing energy efficiency in Detroit homes. From there, NexTiles was born, a Detroit-based textile recycling company that produces EcoBlow – a nontoxic, eco-friendly building insulation made entirely of recycled pre-consumer fabric from manufacturers, particularly automotive interior suppliers, and fashion designers. While her experience reflects the role small businesses can play directly in terms of creating eco-conscious products, every small business, no matter their product or service, can implement eco-friendly business practices. Unfortunately, many of the same challenges that prevent small businesses from thriving in general – limited access to capital and lending; a lack of technical assistance in finances, marketing, and business planning; and the inability to tap into a business support network for grants and resources – will prevent them from reaching their full potential in sustainability. Yet, nearly all the factors that help small businesses drive economic resilience position them to be a transformative force in sustainability. SMALL BUSINESS DRIVES SUSTAINABLE ECONOMIC RESILIENCE First, there are the sheer numbers. There are 33.2 million small businesses in the U.S. accounting for 99.9% of all businesses. They make up our largest employer group and accounted for almost two-thirds – or 17.3 million – of all jobs created from 1995 to 2021, according to the Small Business Administration. And they continue to grow, in 2022, there were more than 5.1 million new business applications filed. Second, small businesses are nimble and can move quickly to drive innovation. They are fueled by their founders’ ideas and life experiences and are often created to provide solutions to real-world problems impacting friends, families, or communities. Third, small businesses are invested in the social fabric of their communities and exist all around us, giving them nearly universal reach. They have a vested interest in their neighborhoods thriving that stretches well beyond business and adds further incentive for them to succeed. At the New Economy Initiative, we’ve spent the past two decades building a support ecosystem that helps entrepreneurs, startups, and small businesses build a more resilient economy within their own communities and Southeast Michigan. In the case of NexTiles, we provide funding to the Centrepolis Accelerator at Lawrence Tech University, which has played an integral role in NexTiles’ product development and growth. It is why we support similar nonprofit and locally grounded organizations that provide technical assistance, lending, and connections to small businesses throughout Southeast Michigan. Sustainability is the next logical step in expanding our mission. That is why the New Economy Initiative is pursuing a sustainability program to integrate with our traditional business support activities. NEI SUSTAINABILITY PROGRAM GOALS That program can accomplish a few major goals that will help small business play its role in sustainability by mirroring much of what we already do. It would include raising awareness about the bottom-line business benefits of sustainability that can be achieved through energy efficiency. It can help businesses identify how to integrate sustainable practices into their business plans that reduce waste while increasing efficiency and profits. It can help them access resources and grants available to increase sustainability. Chief sustainability officer is one more a hat small business owners are asked to wear – we need to provide a small business ecosystem that empowers them to fulfill it. Until we do, the collective power of our largest employer group to create a world that lasts for future generations is largely going untapped. Source for data: https://www.uschamber.com/small-business/state-of-small-business-now Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
