Valeo – Aiming for Carbon Neutrality by 2050
In 2021, global automotive supplier Valeo committed to reaching carbon neutrality by 2050. With $21 billion in sales and 109,900 employees in 29 countries, Valeo has a presence in Troy, Auburn Hills, and Highland Park. SBN Detroit interviewed Valeo Group CAP50 Director Zobeida Gutierrez about the company’s sustainability efforts globally and its impact on Southeast Michigan. Q: Tell us about the CAP50 project. A: Championed by CEO and President Christophe Périllat, Valeo’s global decarbonization plan primarily focuses on 156 production plants. However, our actions extend to our design centers and Valeo Service activities around the world. I have worked for Valeo for thirty years in a variety of positions, including roles in quality in operations, supplier quality, project management, and special projects. I am now the global lead for Valeo’s CAP50 decarbonization plan, and I support other sustainability and circular economy initiatives within North America. Q: What are the specifics of the plan? A: This is our action plan to contribute to carbon neutrality by 2050 across the entire Valeo value chain. Valeo has set 2030 near-term CO2 reduction targets validated by SBTi (Science Based Target initiative) Scope 1 and 2 CO2 emission absolute value reduction of 75% and Scope 3 upstream and downstream reduction of 15% from our 2019 baseline. This goal translates to removing 8.1 million metric tons of greenhouse gas emissions by 2030. Since 2019, we have removed 4.4 million metric tons as of the end of 2022, confirming the effectiveness of our CAP 50 plan. The second reduction target integrates benefits realized from electrification within our product portfolio, accounting for a 45% CO2 emission reduction due to avoided emissions at third parties as compared to the 2019 CO2 emissions footprint baseline. Q: What actions are you taking to achieve this? A: Our framework includes all three scopes as well as greenhouse gas emissions. Scope 1 targets direct emissions coming from our operations. We are currently investing to get our top 100 CO2 emitting sites Energy Management ISO 50001 certified to ensure they are focusing on energy efficiency to drive a 30% reduction in energy consumption by 2030. We are also switching to LED lights, eliminating fuel, oil, and natural gas use, installing solar panels at our sites, and introducing energy-efficient equipment. Scope 2 focuses on indirect greenhouse gas emissions incurred by our energy suppliers. Our low-carbon electricity procurement supports the increase of renewable energy capacity projects. Our internal target is to secure 50% of energy coming from renewable sources by 2025 and 80% by 2030. Valeo has committed to investing $436 million to support Scope 1 and Scope 2 actions. Scope 3 involves indirect greenhouse gas emissions within our supply chain, upstream and downstream. Upstream efforts target indirect emissions incurred by our suppliers, and downstream efforts target indirect emissions incurred by the use and end-of-life of our products. For Scope 3 upstream, we launched a sustainability assessment questionnaire to evaluate our supply chain sustainability maturity level. We also align our suppliers’ greenhouse gas emissions targets with ours – a reduction of 75% for Scope 1 and Scope 2 and 15% for Scope 3 Upstream emissions vs. their baseline year. Our suppliers are also required to cascade these targets throughout their entire supply chain. Our transportation levers within Scope 3 include greener fuels, optimization of filling rates for trucks, multimodal scenarios such as replacing airfreight with train or truck, and the use of returnable and greener packaging. For Scope 3 downstream, Valeo is accelerating its technological roadmap and cementing its global leadership in the electrification market. Currently, 60% of our portfolio supports EVs. We are researching and validating greener materials and designing more energy-efficient, lighter, and greener products. No reduction in greenhouse gas emissions is too small. Every Ton of CO2 reduced counts. Even if it’s simply balancing HVAC systems in our buildings to save energy, simple things can add up to several tons of CO2 emissions reductions. Q: How is your team structured to support the goals and initiatives? A: It starts at the top. Our board of directors has set targets and reviewed achievements related to sustainability and climate change since 2016. In addition, since 2020, a director has been responsible for monitoring corporate social responsibility issues. The Chief Sustainability Officer position within Valeo aligns with the Corporate Vice President of Sustainable Development and External Affairs, who works in partnership with the Chief Technology Officer and Vice President of Strategy. Sustainability topics are therefore under the direct oversight and management of the CEO. Our human resources, health, safety, and environmental, ethics and compliance, research and development, and operations departments (purchasing, quality, projects, industrial) all contribute to Valeo’s sustainable development policy, and each business group assigns CAP 50 champions. Q: What are your biggest challenges? A: Our biggest concern – which is not unique to Valeo – is the lack of renewable energy capacity. The world needs to triple global renewable capacity from 2022 levels by 2030, which must reach 11,000 gigawatts in line with the International Energy Agency’s net zero emissions by 2050 scenario. Also, there is a need for stronger domestic policies and international support, most notably in clean energy investment in emerging and developing economies. Q: What are the biggest opportunities? A: Electrification acceleration. The introduction of electric vehicles is an opportunity, not only for cars but also for micromobility. Another opportunity is preserving our resources by creating a circular economy. Valeo has created the 4R Circle, which is our plan for Robust Design, Remanufacturing, Repair, and Recycling aimed at reducing the use of raw materials and preserving the planet’s resources by giving our products extended life and recyclability options. Q: How is the work you are doing impacting Southeast Michigan? A: In June 2022, we signed a contract with energy supplier DTE Energy to contribute 100% of renewable energy usage at our Michigan locations (Troy, Auburn Hills, and Highland Park) starting in April 2024. This contract is for 20 years, and it demonstrates Valeo’s commitment to supporting renewable energy projects
EcoWorks: Addressing Climate Change by Enabling Sustainable Communities
EcoWorks is a nonprofit that works at the intersection of community development and sustainability. Based in Detroit, EcoWorks serves residents, households, community organizations, businesses, and municipalities, working to create just, equitable, and inclusive solutions to climate change. SBN Detroit spoke with Briana DuBose, EcoWorks executive director, to find out more. Q: Tell us about EcoWorks A: EcoWorks is a Detroit-based nonprofit that addresses climate change by enabling Michigan communities to be more environmentally and economically sustainable. We provide transformative climate and sustainable solutions for communities that are underserved and often unseen and unheard. We do this through community development, green consulting, home energy assistance, climate advocacy, education, and workforce development. Our Eco-D program is an equitable approach to securing affordable, healthy resilient homes and neighborhoods. We design and advocate solutions that promote utility affordability, housing security, climate resilience, and resident-led neighborhood development. We also work to engage community members to be part of learning about sustainability and provide direct service programs, upgrades and repairs, and more for underserved communities. Currently, we are working with four areas in Detroit – Hope Village, Southwest, Berg-Lahser, and Yorkshire Village to build out EcoDistricts. We offer comprehensive resources to help these areas transition to decarbonization and electrification. The program also provides residents and community organizations with resources to achieve healthy, affordable, resilient, and energy-secure homes and neighborhoods. Q: How do you work with Detroit neighborhoods and communities specifically? A: We look at ways to ensure the health and safety of all households. We focus on disadvantaged communities working with people who are vulnerable to the impacts of climate change – for example air quality. We partner with coalitions to improve policy and design innovative financial models for healthy, green, housing and neighborhoods. An example of this is River Rouge, which is surrounded by multiple plants and therefore has poor air quality. We go in and have workshops to discuss sustainability and energy-saving measures in their area. People are often surprised that asthma can be caused by poor air quality. We will go in and perform needs assessments on homes and work toward proper sealing and weather stripping and filters so the residents can have clean air in their homes. We also work with the communities in a bigger way to do things like build rain gardens, create green spaces, and more toward the things the specific areas need. Q: How does the Strategic Community Initiatives Program work? A: We develop custom-fit climate and energy solutions for municipalities, school districts, health systems, small businesses, and nonprofits. SCI has secured over $5 million in clean energy investments and over $30 million in lifetime savings for over thirty Michigan municipalities. EcoWorks serves as the lead technical provider as part of the Sacred Spaces Clean Energy Grants, eliminating disproportionate energy burdens for low-income congregations, inclusive of Black, Indigenous, and People of Color (BIPOC) communities statewide. Eleven houses of worship in low-income Michigan neighborhoods from Detroit to the Upper Peninsula will become more energy efficient with support from this $1.24 million grant of federal funds through the Michigan Department of Environment, Great Lakes, and Energy (EGLE) to make improvements that reduce their consumption of fossil fuels for electricity, heating, and cooling. From this, we expect the congregations to achieve a 15% energy savings that will go back into the communities. Q: How can a business in Southeast Michigan take advantage of EcoWorks? A: We bring a unique blend of people and change-management skills coupled with technical assessment and project management capabilities to businesses. Contact us and we’ll set up a meeting to talk. We can develop and manage holistic energy and climate action plans collaboratively for organizations. Q: How do you think EcoWorks impacts Southeast Michigan businesses? A: EcoWorks can help organizations stay nimble and resilient as energy costs and climate impacts rise. We can develop energy plans and implement energy projects by engaging people and bringing them together. We are often conveners. We are on the front line in communities, and we go into businesses to discuss how they may be contributing to the environment and sustainability in their communities. Often, businesses don’t know where to begin or may think sustainability initiatives are going to be expensive. We help educate them and show the ROI. Most businesses want to leave a better footprint on their community; they just need the resources to do so. Q: What are the biggest opportunities EcoWorks represents for Detroit? A: While our roots are firmly planted in energy conservation, we have grown to emphasize all aspects of sustainable development as it relates to building affordable, energy-efficient residential housing and commercial buildings. We are committed to promoting environmental equity and we take pride in helping communities get there. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Daimler Truck’s Detroit Manufacturing Plant – From Diesel to EVs
Daimler Truck’s Detroit® Manufacturing Plant produces 400 engines, 250 transmissions, and 1,300 axles daily. The 85-year-old factory is known for making diesel engines but is now working to be a leader in the transition to sustainable transportation. SBN Detroit interviewed Apoorva Mathur, remanufacturing – “reman” – electric product strategy analyst for Daimler Truck North America about the remanufacturing, reuse, and recycling side of the business. Q: How do you approach electrification? A: Our goal is to provide the ePowertrain solution that leads the transition to sustainable transportation. Everything we do pushes toward promoting sustainable transportation. Q: In your role, you focus on the sustainability of Battery Electric Vehicle (BEV) Powertrain components through remanufacturing, reuse, and recycling. How does this work? A: Clearly, part of leading the transition to sustainable transportation is providing an option that has zero emissions, but from an aftermarket perspective, it’s important to be conscious about what we do with components once they come out of the truck. We work to reuse as many components as possible through the remanufacturing process so that we are recycling what we already have. A battery has a lifecycle that extends way beyond what is usable in a vehicle, so to use that battery responsibly it has to have secondary applications. Many times, batteries that come out of a vehicle are used for peak shaving. Peak shaving is utilizing a battery storage system during peak energy usage hours to offset the amount of energy being pulled from the main grid. This reduces the load on the grid. Used batteries can also be used in a microgrid solution whereby some kind of solar or wind-powered system is connected to a battery storage system and energy from solar is used to power the batteries. This is a self-contained situation that does not rely on the grid system at all. Companies can also build used batteries into chargers to provide backup power. So, there are different ways batteries and components can be remanufactured and reused. The recycling component is pretty straightforward. We have a recycling program and a company that disposes of batteries and materials responsibly and also recycles material back into the supply chain. Q: In your role, you also support special projects that advance battery electric vehicle (BEV) adoption, such as creating a charging hub at your Redford location. Can you tell us more about that? A: Yes. The state of Michigan secured $13 million in funding in partnership with Daimler Truck North America and DTE Energy to develop the mobility charging hub earlier this year. We will build a multimodal charging hub there, helping companies to transition their fleets. The charging hub will support heavy trucks and also passenger vehicles and more with the intent to help the entire community transition to EVs. Q: What is driving your change to electrification? A: The largest driver is a combination of emissions standards becoming stricter and also a greater focus on sustainability as a whole on the global stage. Daimler Truck is committed to the Paris Agreement globally, and we are doing our part to provide our customers with zero-emission options. Daimler Truck as a whole is looking for what best suits our customers’ needs, and we are electrifying products across the board and will continue to go down that path. We are also looking at other options such as hydrogen. We need to explore everything to ensure we are giving the best options to our customers. Q: What drives your passion for what you do? A: This is so new for all of us. I’m constantly learning. We are faced with something new every day when comes to requirements from a regulatory perspective and we are constantly getting customer feedback. It’s unchartered territory for all of us and we are all taking this learning journey together in this industry. That’s fun for me. It’s not the business as usual that Detroit Diesel has been doing for 85 years. It’s new and different and exciting. Q: What are the biggest challenges? A: Again, it’s unscripted. It involves so much effort as an industry to make this switch. We can build the product, but we also need the infrastructure. There are gas stations on every corner but supporting EVs is brand new. Also, we need support from utilities. Grid support requires more resiliency as we switch, and there is a lot of work to be done here. When we say we are transforming the transportation industry we mean it. We are taking every component and turning it into something different and it requires so much from everyone. Q: What are the opportunities? A: We’ve seen a whole new level of energy and innovation coming from all sides. New suppliers and players coming into the space every day. It’s exciting to see these companies coming into the industry to push and innovate. On the infrastructure side, it’s the same. New data companies are looking at how to use power in areas to help the grid. There are new charging management systems, new charging suppliers, etc. It’s given the industry a chance to innovate and go outside the norm of what we provide. Q: How do you think the work you are doing impacts Southeast Michigan in terms of innovation? A: Detroit is the place to be when it comes to sustainable transportation. And Detroit is the hub for all things mobility. The Battery Show North America is in Detroit each year, and there is so much knowledge at that show. It’s all being done here. Detroit is the center of competency. It’s a great place to learn and innovate and partner and work within. Q: What does the future look like? A: We will see change on the roads around us. Electric cars are growing in production and adoption in this area. We will see different types of technology being used for different applications as we learn what’s effective. We will see a mixed mobility strategy across the board and that’s exciting. I also
Wayne State University Moves Ahead As a United Nations Regional Center of Expertise
In April 2022, Wayne State University and the University of Windsor were designated as the United Nations Regional Centre of Expertise (RCE) on Education for Sustainable Development in the Detroit-Windsor region. RCEs are networks of educational institutions, communities, governments, businesses, and other organizations that work together to advance and implement sustainability education within a region. SBN Detroit talked with Donna Kashian, Wayne State University professor and director of Environmental Sciences, who is leading the efforts at the university. Q: Tell us about regional centers of expertise. A: The RCE is a global program. Our designation is somewhat unique in that we are binational. In our case, the US and Canada focus on the shared legacy of the region. The waterway is deeply linked to industry and economics in our area, and the two nations face similar challenges. We’ll work toward enhancing the economy to meet the sustainable era. This involves a large set of goals with a foundation in education. Part of our work is to bring together community partners and address activities related to sustainable development challenges. So, we are connecting entities such as the Windsor-Detroit Bridge Authority, key individuals within schools and universities, the government, municipalities, and nonprofits to work on collaborative projects toward our goals. Ultimately, we will utilize these partnerships and networks to support research, training, and participation to move sustainable education forward. Q: How is this set up? A: Wayne State University has been very supportive of this effort and has contributed several resources, including support for two graduate students who will serve as sustainability ambassadors to help move things forward. Through the UN RCE, we are in the process of forming a sustainability council. We are appointing an individual from every unit within the university to report back to this council. Additionally, we will also have an external advisory board to help identify sustainability challenges in the Southeast Michigan region and the Essex region. The fellows will start tackling research and projects that are identified. Q: I understand that the goal of the UN RCE is to identify actions that address climate change, economic and health disparities, and social inequity to create a more sustainable future. How will you approach this? A: This is incredibly broad-sweeping and each university will tackle projects differently. WSU just launched a new five-year sustainability plan, and environmental justice and social inequity are addressed throughout. Many universities don’t include these front and center in their plans, so in this way, I think we can work as an example to advance university sustainability planning as a whole. Regarding climate change, we recently submitted a $3 million project to tackle climate resilience and flooding – that involves infrastructure and design – in addition to many projects in the community and education around that, which include talking to local middle and high school children. Two of my students and I have an upcoming visit to 6th-grade classes to educate young people on climate change. So our work involves projects, traditional research plus community education. Q: What are the benefits to students? A: Approximately six years ago WSU applied for and received a training grant in urban sustainability which initiated our T-Rust (Transformative Research Urban Sustainability Training) program. This program is wrapping up and has transitioned into the UN RCE. This program supported 33 graduate students and, to date, ten have graduated with seven master’s degrees and three doctorate degrees. Two of these students have been chosen to work on research and science policy on Capitol Hill. We are training future leaders, and they are walking into really great positions. The UN RCE designation will help us step into undergraduate opportunities as well, so we can reach more students and start training at an earlier stage. When the students hear the United Nations designation their ears perk up and are anxious to get involved. Watching the grad students go on to succeed and being able to extend more opportunities to undergrads is huge. Q: How will this work potentially impact Southeast Michigan businesses? A: This is one of our big agenda items. Typically, the environmental side of the university, where most of my connections are, has not been as connected as it could be to the business side. We’ve been working in silos. So we are working to form partnerships and do a better job at this. Q: What other things are you involved in around sustainability? A: I serve as a US representative for the International Joint Commission’s science advisory board, and next year will serve as president of the International Association of Great Lakes Research (IAGLR). I also am on the Conservation and Environmental Issues Committee – Society of Fresh Water Science, and the Inclusion, Diversity, Equity, and Accessibility+ Committee (IDEA+) committee for IAGLR. Q: How do these things help drive and shape your work overall? A: I think it all ties together. People say I’ve taken so much on, but it’s all interconnected and I think it’s about centralizing the work, not creating more. It’s all focused on the health of the Great Lakes and environmental justice. I hope to use and bring my shared resources to the UN RCE. Q: Where does your passion come from? A: Growing up, I lived in a Portuguese community in Massachusetts that has a long history of pollution from the textile industry. My family has an extraordinarily high cancer rate. I’ve always loved being outside, and I’ve always been passionate about improving health. I think my drive started there. And then five years ago, I was diagnosed with cancer myself. That has pushed me. The drive was there, but I now have an even stronger desire to push forward. Q: What is the end game? A: To live in a society that is just from a sustainable perspective, and to live within a healthy climate and environment. We clearly cannot accomplish this through the UN RCE alone, but we can move the dial. Training our youth to continue the quest and vote
Delta: Working Toward Net Zero Through Sustainability, Climate Impact
Delta Air Lines employs 95,000 people and operates 4,000 flights a day, flying to more than 280 destinations on six continents, and expects to serve nearly 200 million customers this year. 13.7 million passengers flew in or out of Detroit Metro Airport in 2022, making it Delta’s third-largest hub. We interviewed Gail Grimmett, Delta’s senior vice president of sustainability performance and strategic partnerships, to learn more about the airline’s sustainability strategy. Q: How does Delta approach sustainability? A: We are on a journey to reach net zero by 2050, so we have milestones and smaller goals we are working toward for 2025, 2030, and 2035 to help us get to net zero. Our goals fall into two main pillars. The first is to embed sustainability in everything we do. This allows us to concentrate on things we can control today and allows sustainability to penetrate the entire business. The second is to eliminate our climate impact from flying. This is where our fuel and fleet come into play. So, we focus on these two main pillars and have set key targets and goals for each. Q: What does your sustainability team look like and how is it organized within the company? A: It’s set up to support the pillars. We have councils set up across the organization that work toward our goals. For example, we have a Carbon Council that is led by our chief of operations. This group is focused on innovation and fuel usage, looking for fuel efficiencies and savings Last year we saved 10 million gallons in fuel by weight reduction and by flying in a more efficient manner such as altitude and speed. We have sustainability embedded across the organization working on finding efficiencies and opportunities in areas we can control today. Q: Is sustainability addressed any differently here? A: All airports are different, but because we have great partners with the Airport Authority, we’re able to make changes outside of just our operation, like with LED lighting, low-flow water within the terminal, and within our catering kitchens. Since Detroit is a hub, it is a key airport for us that we look at regularly. We’ve been working on electrifying our ground service equipment (GSE) to convert to 100% electric by 2025 in five of our hubs and 100% in all of our hubs by 2035. Q: What are your short-term sustainability goals? A: In the short term, we are focusing on what we can control within our operation. For example, leveraging our councils to reduce fuel usage by another 10 million gallons this year. By 2035 we expect the Carbon Council to have saved 1.1 billion gallons of fuel, which is important from both a cost and emissions perspective. We are eliminating single-use plastics from planes. We eliminated 4.9 million pounds of plastic from planes as of last year, and on Dec. 5, we announced a new paper cup that we are testing in-flight that once fully rolled out will eliminate another 7 million pounds of single-use plastic. Changes like a new paper cup are no easy task. These cups must handle both hot and cold materials and meet international regulations that can vary from country to country. We’re a global airline, and, operationally, we can’t just stock every aircraft differently based on the countries they travel through. We have to satisfy the sustainability regulations of all countries on all planes. Q: What about longer-term goals? A: We need to be net zero by 2050. That is the goal everyone in the industry is racing toward. To accomplish this, we need to focus on large-scale changes – things like switching to sustainable aviation fuel and hydrogen to power aircraft and building the supporting infrastructure. All this is still being researched and tested. When we think about our fleet – what we fly and how we fly – we are looking at what we can do in the medium term and the long term. For example, each new aircraft we add to our fleet generates around 25% fuel savings, so we are also updating our fleets to be more efficient. Q: What else are you working on to get to net zero by 2050? A: The number one lever we can pull to decarbonize our industry is sustainable aviation fuel (SAF). Currently, there is not enough of it, so we need to ramp up production of it. Today, there is only enough SAF to barely cover one day’s worth of flying for the entire industry. The government and policymakers are important as the production of SAF scales because we need the right policies and incentives to increase production and build the infrastructure to support SAF. While that may seem daunting, a positive is that SAF is an immediate solution – it can be added directly into planes right now. So, while there isn’t enough of it, it can be blended with current fuel, so we can start with 50% SAF and move to 80% and then 100% as the production ramps up. Also, this first-generation SAF won’t be the last. It will continue to evolve. This is one of the most exciting times to be in this field as there is so much need here, and so much innovation happening. Q: I read that you focus on building your fleet to have the longest, most sustainable life possible. Can you tell us more about that? A: Circularity is important to us. We look at refreshing planes, regenerating materials, and recycling. We hold onto our fleet for a long time but continually look at how to be more efficient with the fleet. Adjustments are being made to certain planes to reduce drag, which helps them become more fuel-efficient. This goes back to controlling what we can control while continuing to refresh the fleet as we can. Q: What are the biggest challenges overall? A: There are two. The first is the pace of technology advancement. It needs to speed up and I think it will. And,
This Month’s Message from Terry Barclay, SBN Detroit chair and CEO of Inforum
On Oct. 31, SBND hosted a panel focusing on business and sustainability in the Great Lakes region. The event was a collaboration with the Council of the Great Lakes Region and featured Shanelle Jackson, senior manager, LyondellBasell; Edna Lorenz, energy director, Corewell Health; Mark Schrupp, executive director, Detroit/Wayne County Port Authority; and Lillian Woolley, senior chemical engineer, Fishbeck. It was a fascinating discussion, and I encourage you to read the story here. Before the panel discussion, Colin Bird, counsel general of Canada in Detroit, spoke about how Canada and the U.S. work together on issues that include the environment, maritime trade, and stewardship of the Great Lakes. In Michigan, we are more aware of this than most in the U.S., but some of the specifics were new to me. Some examples: In 2022, Canada was the U.S.’s largest trading partner in goods and services. About 80% of Canadian goods exports to the U.S. ‘feed’ American supply chains for final goods. According to U.S. trade data, in 2022, bilateral trade in goods and services was US$914.3 billion, representing over US$2.5 billion worth of goods and services crossing the border every day. The joint stewardship of the environment is a cornerstone of Canada-U.S. relations, from air and water quality to wildlife management. This includes at least 50 federal bilateral arrangements, more than 100 arrangements at the state and provincial level, and the Boundary Waters Treaty of 1909. The Canada-U.S. Joint Action Plan on Critical Minerals Collaboration and the Memorandum of Understanding (MOU) expand energy cooperation between the two countries are some examples of collaborative initiatives. Canada’s 2023 federal budget allocates $650 million over ten years to support monitoring, assessment, and restoration work in key freshwater ecosystems, many of which are shared by Canada and the US. Of this total, $420 million will go towards restoring and protecting the Great Lakes, complementing significant U.S. efforts in this regard. On September 18, the University of Michigan announced an award of $5 million from the National Science Foundation to establish the Global Center for Understanding Climate Change Impacts on Transboundary Waters, comprised of U.S. and Canadian universities and Indigenous representatives. McMaster University will lead the Canadian side, with $3.75 million in funding provided by the National Science Foundation. More trade statistics specific to Michigan can be found here. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
The Role of Businesses in Sustainability
A sustainable Great Lakes region cannot be achieved without the leadership, involvement, and commitment of businesses. From decarbonization and the circular economy to water stewardship and workforce development, businesses across all industries and sizes have a unique opportunity to make decisions and investments that impact the region On October 31, the Sustainable Business Network of Detroit (SBND) and the Council of the Great Lakes Region (CGLR) held a jointly organized event to hear from business leaders who share a commitment to sustainable development and learn about the actions they are taking to embed sustainability in their operations and corporate strategies. Discussion focused on the role of businesses in sustainability, measuring the data, automation, and workforce development. The panelists were: Edna Lorenz, energy director for Corewell Health. Mark Schrupp, executive director, the Detroit/Wayne County Port Authority. Lillian Woolley, senior chemical engineer, Fishbeck. Shanelle Jackson, senior manager for State Government Relations for LyondellBasell. Colin Bird, Consul General of Canada in Detroit, also participated as a special guest. Takeaways follow: Bird: This region really is the epicenter of North America, and we have the ability to become the green economy that powers the world and addresses climate change issues around the globe. Wolley: Regarding the role businesses have in sustainability, I think every business and industry is different. Businesses certainly need to support the efforts the state has committed to, and there are programs and utility rate breaks available to help. Shrupp: Businesses will do what is in their interest financially. Five years ago, businesses were largely not engaged in sustainability, but they are at the table now because government entities – and their customers – have made it a priority. Jackson: I think employees today want to be proud of the company they work for and are demanding more and more from companies regarding their sustainability commitments. Shrupp: The Port of Detroit is the linchpin of manufacturing in the city. Heavy industry comes in here and that’s been a huge cost to the environment and air quality. We are developing a decarbonization plan now and we hope to create the greenest port in the Great Lakes and act as an example for others. Jackson: When it comes to sustainability, we are engaging employees at every level from the factories to the C-suite, and having the conversations. Woolley: When it comes to metrics there are companies that are good at it and companies that don’t know what they should be looking at. There are lots of tools available to help though. Lorenz: One of our 2024 initiatives is water. Not just the water we drink but the water we wash our hands and bedding and dishes in. Hospitals utilize water for heating and cooling and there is chemical treatment of that water. This is a big initiative for us in 2024. Shrupp: Working in a port region is a dirty job. The air quality is bad. We are working to raise the level of standard and pushing that agenda throughout the industry. Jackson: I’ve been hearing women and people of color are saying we’ve seen a decline when it comes to DE&I. There was a push for it in 2020 (and before) but was it a thing of the moment? Lorenz: I think healthcare is embracing automation. We have robots delivering food to patients and robots making food. The industry is utilizing software and AI solutions to supplement human staff so that human staff is better able to focus their attention on the data analysis piece. Jackson: Our top goal is to help end plastic waste so we need the latest technology to do that. LyondellBasell is consistently investing in opportunities to increase innovation in ways that will ultimately save us money. Shrupp: There is a lot of work to be done. We need more young people to choose to live in this region and help our businesses transition. Millennials are raising the importance and demand for sustainability. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
‘We’re Building More Than Just a Building Here’
Novi-based Cunningham-Limp is developing what it is planning to be the most sustainable construction project in Michigan. The six-building corporate campus at 35917 West 12 Mile Road in Farmington Hills will serve as the new Detroit Engineering Center for electrical connection maker Japanese Solderless Terminals (JST). All materials for the buildings are naturally sourced, and the construction will feature no drywall, paint, structured steel, catch basins, storm pipes, carpet, or other synthetic products. SBN Detroit interviewed Jake Gardner, Cunningham-Limp project manager for the development, to find out more. Q: How does Cunningham-Limp approach sustainability as a company overall? A: Our mission at Cunningham-Limp is to make a positive impact on people, communities, and companies, and prioritizing environmental sustainability is one of the ways we fulfill that mission, so we work with our clients to implement creative, sustainable solutions wherever we can. Q: How did the JST project come to fruition? A: It first came to us through our president, Samuel J. Ashley Jr., who was immediately intrigued by the opportunity to be a part of something special in a commercial corridor using a completely sustainable methodology that will have a positive impact on the community. His first reaction was disbelief. He couldn’t imagine that something like this would ever be undertaken in our region. However, after introductory meetings and building relationships with the collective organizations participating in the project, we went into the early planning stages. Six years later here we are. Q: What is the impetus behind this project? A: The development is an homage to the forest and Japanese culture and design. The primary concept behind the project is to showcase the idea of harmony between people and the ecosystem, Japanese and American cultures, and the preservation of nature in a built environment. The philosophy is to promote corporate development in a way that is both humane and beneficial for the land it is being built on. The artistic portrayal of the forest in this project is more profound than any existing standards or certifications could reflect. Q: How do you approach a project like this? A: There was more than a decade of strategic planning before construction began. All aspects of the forest were thoroughly researched, and the findings of those studies have guided design and construction. Q: Is it more expensive to construct this way? A: It ultimately depends on what you consider to be an expense – and it’s important to look beyond just the financial aspect. We need to consider the impact our actions have on the environment. Yes, certain things may come with a financial cost, but the true cost of not taking care of our planet is far greater. We’re doing the right thing to make a positive impact on the planet. It’s not always about the money. Q: What are the biggest challenges? A: The unconventional approach to this project brings on many challenges. Some include stormwater management, utility connectivity between adjacent sites, and finding subcontractors who can perform the required construction techniques (building a thatched roof, for example). Also, because of the uniqueness of this project, a lot of the truly sustainable elements go beyond current ordinances and engineering standards, so getting the concepts approved took more effort than a traditional project would. Finally, finding subcontractors with the right mindset that are of commercial scale and size but whose quality of work is that of a high-end residential craftsman style approach is a challenge. Q: How will the building be cooled and heated? A: Geothermal energy is utilized to naturally heat and cool the site, while other supporting elements assist in regulating the temperature of the building. For instance, in the test lab, passive heating and cooling are implemented around the perimeter. This involves an unoccupied air chamber around the primarily underground test lab that helps in keeping the air cool, and skylights throughout the perimeter that aid in warming the air up. These elements reduce the workload on the geothermal energy system. Q: How was the site chosen? A: Our client and project owner, JST, wanted a heavily forested site located in Farmington Hills close to their local partners. They conducted extensive studies of the land, including the prior inhabitants of the site dating back to the Native American Potawatomi Tribe, as well as the identification of every plant and animal species represented on the parcel. Following the research, it was strategically picked because the property is one of the last forested sites in JST’s target demographic, with natural water features and proximity to JST’s current office. Q: Do you think this project will act as a “lead by example” with others looking to pursue more environmentally friendly structures? A: The dream and hope of the entire project team is for this approach to become a trend and be replicated by others moving forward. In fact, we are optimistic that the neighboring 30-acre site will also be used in an environmentally conscious manner. We hope whoever acquires the property will continue honoring the forest and its story. Q: What are some examples of other Cunningham-Limp projects that are focused on sustainability? A: JST is one of the sustainable builds that C-L is most known for, but we have extensive experience in implementing sustainable practices in our projects and working in sustainable markets. In 2005, the State of Michigan made a requirement that any new building had to be LEED-certified, so we built the first LEED-constructed project owned by the State of Michigan, which is occupied by the Department of Environment, Great Lakes, and Energy (EGLE). Additionally, we include adaptive reuse, Energy Star, and required environmental practices as part of our standard project delivery. We are currently working on two electric vehicle battery testing laboratories in Auburn Hills. Another project that’s been recognized for its sustainable construction is the Commongrounds cooperative project in Traverse City. Additionally, we recently received a 2023 Project Achievement award from CAM Magazine for our Orion Township Municipal Complex, which had many environmentally sustainable
The Inflation Reduction Act and More
The Inflation Reduction Act of 2022 marks the single largest investment in climate and energy in American history and provides potentially transformational opportunities for businesses and organizations of all sizes. On October 17, SBN Detroit hosted an informative discussion regarding these opportunities as well as those under the Infrastructure Investment and Jobs Act of 2021. The discussion focused on clean energy programs, available resources, workplace infrastructure, integrating different forms of funding, and partnerships. A list of resources is at the end of this article. The panelists were: Jerry Davis, professor, Ross School of Business, University of Michigan, oversees +Impact Studio and is faculty director of Business + Impact. Stacey Grant, principal and founder of Path Consulting, which offers equity-centered consulting support for communities, organizations, and nonprofits. Elizabeth Wallace, associate director, Michigan Community Programs, Elevate Energy Zachary Kolodin, chief infrastructure officer, State of Michigan The event was moderated by Nina Misuraca Ignaczak, founder, publisher, and editor of Planet Detroit, a digital media startup with a mission to produce quality climate, equity, health, and environmental journalism in the public interest. Takeaways follow: Kolodin: Michigan is a model for the country. Our main goals are to make sure the state gets internal justice for our projects and to bring in quality jobs. It is a great time to be in state government. Grant: The funding and resources are meant to benefit your communities. We need to advocate and make this happen, and we can do this in a data-driven way. Davis: The IRA is like gelato. There are thousands of programs and a lot of acronyms. There are also some great resources to look at that are specific to Michigan. It’s really important to familiarize yourself with the basics of what is out there. Grant: We are talking about funding that isn’t a cycle. It is rolling out through 2032. This is a moment, but we are also talking about longevity. If you are not in the game, you can still get in the game, and win the game. Kolodin: When we talk about workforce infrastructure in this space, we often miss the capital needed. When we look at skills, when we look at humans, we fail to look at access to capital and replicating the needed qualities for the replication of these skills in the workforce. Kolodin: The IRA creates obvious funding opportunities to create a low-interest capital fund to support entrepreneurs in this space. We need to look into how to create a fund like this and get access to capital. We need to get creative to get money where it needs to be. Wallace: Through the IRA, there is the greenhouse gas production fund. This is funding that is going to capitalize on these clean energy products. There is pro-bono technical assistance and legal support for communities and residents to try to alleviate the complexity if you are a business owner looking to do energy projects. Wallace: There are a lot of incentives for cities to partner with other cities, community organizations, and local businesses. Davis: It’s important to focus on mid-management. Commitment from senior leaders matters, but midlevel leaders and managers make the difference day-to-day. Michigan Saves is a great resource. I felt they were really helpful specifically for contractors because there are so many details in the IRA – and they simplified things greatly. Wallace: If you are looking to receive capital, there are a lot of different ways to get into the programs and the funding that is coming from the IRA. Keep an eye on what is going on locally and regionally and see where some of these things align with your organization and if you want to expand into it. Wallace: It’s a time to really collaborate with other organizations with similar goals and local, state, and regional governments to see what programs are coming down the line that may be beneficial for your organization. Grant: We are dealing with crises daily. A shift in power is required. I invite people who are in positions of power and who have access to information and resources to make themselves available. If you do not have that invitation, then you need to create that relationship. Click here for a list of resources. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Greektown Monroe Corridor Redevelopment Priorities Include Sustainability
In June, the Greektown Neighborhood Partnership was awarded a $20 million infrastructure grant by the Michigan state legislature to redesign the Monroe Street corridor. The goals of the redesign are to prioritize pedestrians, drive economic development, calm vehicular traffic, green the area, create space to accommodate outside seating for the restaurants and cafes and connect Greektown to surrounding communities as well as the core of downtown. The project also incorporates several sustainability practices layered throughout. Melanie Markowicz, executive director of the Greektown Neighborhood Partnership, spoke to SBN Detroit about what this means to the residents, businesses, visitors, and patrons in the area. Q: How will Greektown use this $20 million grant? A: The Monroe corridor redevelopment is going to be transformative for Greektown, Detroit, and the whole state. Greektown is one of the oldest neighborhoods in the city. Its roots go back to the 1830s with German immigrants and Greek immigrants settling here throughout history. Today much of Greektown is owned by multigenerational Greek families. There is this intimate feel with the buildings being so close together and this gorgeous architecture. It’s a special place. Monroe Street has the highest pedestrian usage in downtown Detroit with prepandemic numbers reaching up to 19,000 pedestrians per day. Pedestrians outnumber the cars. There is a wealth of restaurants and bars and entertainment. So, with this grant, we have set out to define the future of Monroe Street and pedestrianize it in a formal way. We will reorient vehicular traffic to one lane in the center of the street and create very wide sidewalks lined with trees and amenities. Currently, there is only one block that can facilitate outdoor cafés and seating, and we want the whole corridor to be able to do so. The street will ideally become pedestrian-only on weekends and possibly more often than that. We will create and activate a corridor that truly functions as a beautiful, inviting, connected, and unique public space that incorporates and celebrates its cultural heritage within the design. Q: How do you think this redevelopment will impact the businesses around it? A: I think the impact will be significant. Once done, every business that has wanted an outdoor café will have the ability to have one. Before we began planning, we met with every business owner to understand how their business functions so that we can design it to best suit their needs. When the street is closed to traffic, the center lane will become a pedestrian lane. It will also allow for programming of different kinds. We are building hooks into the ground for tents and designing the space for these activations and festivals. Pedestrianizing the Monroe Corridor has been a long time coming for this neighborhood and we are thrilled to have the support of the state. Q: What are some ways you are incorporating sustainability within this development? A: Sustainability can take a lot of forms from the environment and greening to energy to the materials being used to connectivity within a community. I think there is a sustainability element to how we approached the project, inviting everyone to the table for the conversation from property owners to businesses to residents to city departments. It’s been fully collaborative to ensure that what we develop here has a long lifecycle. There are certainly sustainability elements to seeing shifts in climate change. We are working carefully to add mature trees to provide the area with a tree canopy and control the temperature. We are intentionally using pavers for the entire corridor versus concrete, so they can be removed for utility work and reinstalled versus concrete or other materials going to a landfill. We are exploring infrastructure technologies such as ice melting and EV charging stations. Q: What do you think are the biggest opportunities? A: We are creating this intimate yet connected space in Detroit that has this authentic flair and feel. There is the greening element and the pedestrian element. Greektown is a tourist destination, so these changes will enhance that experience and allow for even more foot traffic. Greektown is a core area of downtown yet it has been largely separated. With this project, we aim to connect the urban fabric including the downtown area, Paradise Valley, and more. Another significant element is that there are all of these other projects in the pipeline around us – and that is intentional. We’ve all been working together. From the Monroe Street corridor to the Randolph Plaza Streetscape project to the restoration of Bedrock properties to the Cadillac Square redevelopment to new public spaces in Paradise Valley – the whole area will change dramatically in the next five years. Q: What are the economic opportunities? A: I think there are huge economic opportunities, especially tied in with these other projects. We have this boom of development in the area and underutilized properties. We anticipate vacant spaces being filled and activated. The businesses will be impacted with more patronage and activation of more outside space. Q: What about the community and cultural impacts? A: We will incorporate the cultural and architectural heritage in everything we do. Many of the property owners are multigenerational Greek families who have been in the community for decades and created this unique niche and it’s critically important to preserve and highlight that. We will continue to utilize and preserve Victorian architecture. We are also being intentional about incorporating public art including murals and more. Q: Is there a job creation aspect involved in this project? A: Yes. Within the construction and project itself, and also, once we can program the whole space in a new way, that will create jobs along the corridor and within the businesses. Q: What is your vision overall for the future of Greektown? A: The beauty of this is that the vision comes from the community itself. That’s what gets me excited. Incorporating and sustaining Greektown’s heritage and improving on that so that the area just continues to get better and become more connected.
