Programmatic Grantmaking and Social Investing in Detroit
The Kresge Foundation in Detroit works to collaborate with cross-sector partners to promote and expand long-term, equitable opportunities in Kresge’s hometown through grantmaking and social investing. As such, they are one of the largest funders of environmental work in the city and region. This funding has gone to several of the programs and entities SBN Detroit has covered in our shared content. We spoke with Wendy Lewis Jackson, the managing director for Kresge’s Detroit Program, to get her perspective on the foundation’s impact in the Detroit area and specifically businesses in Southeast Michigan. Jackson leads Kresge’s efforts to revitalize Detroit and strengthen its social and economic fabric. Her work supports organizations providing economic opportunity for low-income people and addresses the needs of vulnerable children and families. Before joining Kresge in 2008, Wendy was a program director for Children and Family Initiatives and executive director for education initiatives at the Grand Rapids Community Foundation. She taught at Grand Valley State University and has co-authored and assisted in the publication of several reports and publications that address community needs and problem-solving. Wendy earned a bachelor’s degree in political science and communications from the University of Michigan. She also holds a master’s degree in social work from U-M, with a concentration in community organization and social policy and planning. Q: The Kresge Foundation was founded in 1924 to promote human progress. How does that mission inform the Kresge Foundation’s work today? A: The mission at that time was very broad, and since that time it’s been refined to include expanding opportunities in America’s cities with an emphasis on supporting families with low income. We now work in cities across the country. Detroit is our hometown and our signature place-based community. We have three other cities of focus and those are Memphis, New Orleans, and Fresno. But we are a national foundation deeply focused on place-based work in hundreds of cities. Q: What are the shifts you’ve seen since started in this role in 2008 and how has the focus changed? A: Our focus shifted starting in 2007 when our president Rip Rapson joined the foundation. Our north star changed from a philanthropy primarily focused on capital challenge grant campaigns for building projects across the country to programmatic grantmaking and social investing designed to ensure that people with low incomes have full access to economic and social opportunity in America’s cities. We now invest deeply in Detroit alongside six discipline-based foundation programs – health, community development, environment, arts and culture, human services, and higher education. Q: What type of work are you doing in Detroit toward your environment focus? A: In Detroit, we work citywide and in neighborhoods to advance economic equity, quality of life, and climate resilience for Detroiters so environmental justice and mitigating the impacts of climate change are a huge part of our portfolio. We support community-based groups and organizations to realize their goals when it comes to climate resilience. We also offer support for advocacy efforts within the state focused on ensuring greater environmental sustainability. Q: What are some examples? A: One of the largest examples involves our work in the Jefferson Chalmers community and the east side of the city. We recently announced the launch of a multimillion-dollar network of solar-powered resilience hubs on Detroit’s east side where residents can go for emergency services and support in times of flooding and other emergencies. The city of Detroit, Eastside Community Network, and Brilliant Detroit will have the first three hubs with more to be added later. We are also working with Jefferson East Inc. and also the University of Michigan Sustainability Clinic on supporting their efforts to address flooding challenges and helping residents to mobilize and advocate for change. Q: What do you think the Kresge Foundation’s impact is on the businesses in Southeast Michigan? A: We hope that through our grantmaking and social investing we begin to raise awareness and possibilities for businesses to get engaged in projects that allow communities better access to improved solar, mobility, and more. One example of this is our partnership with the city of Detroit and DTE on the O’Shea Urban Solar Farm. We don’t want Detroiters to be left behind in the movement toward climate resilience. Businesses in Southeast Michigan are poised to be leaders in the movement to address climate change. So, we are actively seeking opportunities to help businesses ensure that Detroiters have greater access to sustainability technologies and opportunities and make sure community-based groups are able to engage with businesses in these efforts. Q: What are your efforts in sustainability as it pertains to jobs and workforce development in Southeast Michigan? A: I’m glad you brought it up because our efforts are quite significant. A big focus is to make sure Detroiters have access to new and existing jobs in environmental sustainability and climate resilience. We are looking to expand those opportunities now. We supported workforce development efforts through a partnership with the Greening of Detroit. We also recently announced $1.7 million in grant funding for six projects that will benefit communities and wildlife habitats in southeast Michigan. Another example relates to the resilience hubs I mentioned. That project includes a business accelerator to engage Black and Brown contractors in the solar, battery storage, and electric vehicle infrastructure work. Q: What do you think is the role of businesses in Southeast Michigan when it comes to sustainability? A: They have a significant role. As I said, Detroit is in a good position to be a leader in climate resilience. Businesses here are in the process of bringing new and advanced technology toward these efforts and they must ensure all Detroiters have access. It’s critical that businesses are engaged in these efforts. I’d like to share an open invitation to businesses in Southeast Michigan as we are open to partnerships that will ensure Detroit is climate-ready and climate-smart. Q: In terms of this, what are the biggest opportunities? A: We have to look deeply into both the Infrastructure and Jobs
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
How the UN Summits on Climate Change and Biodiversity Affect Our World
Global leaders met in Egypt in November 2022 to attend the COP27 Summit on Climate Change and again in December in Montreal for the COP15 Biodiversity Conference, reaching significant agreements to drive important changes around the globe. How are the outcomes of those meetings affecting the world, the business community, and our lives in Michigan? SBN Detroit hosted Andrew Deutz, director of global policy, institutions, and conservation finance for The Nature Conservancy, in a virtual event on May 4 to share his insights. Deutz – an expert in international environmental law, policy, and diplomacy – directs the TNC’s global policy work spanning the areas of biodiversity, sustainable development, and conservation finance and oversees relationships with international organizations, multilateral development banks, and foreign aid agencies. During this event, he addressed why these global meetings are relevant to our everyday world; what impacts we should anticipate in our decision-making as business leaders; and how The Nature Conservancy is participating in these global discussions to assure a sustainable world for both people and nature. Moderator Tammi Dukes, Adient’s vice president of global sustainability, facilitated a Q&A session that followed. Deutz set the stage by explaining that there is a deep Interrelatedness between climate change, biodiversity, and the global economy, and, essentially, we cannot fix one without the others. This global theme is driving the discussions and outcomes of these meetings that will in turn help inform the way businesses make and target goals, secure supply chain partners, develop sustainability practices, allocate budgets, and more. In terms of biodiversity and climate change, there are tipping points in ecological systems as the climate warms. For example, in Southeast Asia, if we increase to two degrees Celsius we will start to lose coral reefs. If the Amazon River warms three to four degrees, the rainforest could shift to grassland. In the Arctic, we could lose permanent sea ice. All of these have repercussions on the integrity of the ecosystem and economy, and they also facilitate additional warming that exacerbates the trends. The Montreal Biodiversity Conference informed us that more than half of the global economy is dependent on nature, and if we continue to degrade nature it will undermine the economic world as a whole. The world currently spends $140 billion on preservation, yet also spends four to five times that amount undermining it through harmful subsidies. To become nature-positive, it is estimated that $700 billion-$900 billion is needed annually. Deutz said to reverse the trends, we need to make changes in the global economy. So, the question becomes, how do we address the climate crisis and nature preservation with the growing debt crisis? How do countries allocate funds toward these goals? Deutz gave examples of countries forgiving debts in exchange for allocating funds toward forest preservation, the government buying back financial debt and replacing it with funds to spend toward climate resilience, and other alternative options that are coming out of the leadership discussions. Deutz also noted that businesses are becoming continually more aligned with the UN’s 2030 Sustainable Development Agenda, so progress is being made. In addition to global environmental goals such as the 2030 Agenda and the 2050 Environmental Goals, there also are tangible frameworks for companies to understand and assess climate risk so that they can measure and reduce impact; practices on how to drive decarbonization; and incentives for companies to invest in greener companies and more. Following is the Q&A that took place after Deutz’s presentation. Dukes: Do you think manufacturers in the U.S. are operating at a rate that will get us to the goal of carbon neutrality by 2030? Deutz: No. But nobody is. We are making progress, but we have to accelerate that progress. There are two drivers, I think. First, investors need to back companies that are aligned with the 2030 Agenda. Second, we need to start seeing this happen through corporate supply chains as well. For example, in the UK and Europe, there are now trade provisions that restrict the import of commodities that drive deforestation. Companies need to be responsible for their supply chains and ensure that all parts of the chain are driving toward net zero goals. Dukes: What is the buy-in of countries so far and what traction has been made? Deutz: It’s a mixed bag, but we’re seeing a lot of progress. Most of the major economic players at the government level have set targets toward 2050 or 2060. Those targets still aren’t good enough, but most of the world is on a pathway. On the nature side, it’s a little more complicated. There is a coalition of 130 countries that came together before Montreal and agreed to the 30×30 initiative, which refers to ensuring good conservation practices around 30% of terrestrial and marine habitats by 2030. There seems to be an easier consensus around that than how we sustainably manage the other 70%. Ultimately, sustainability is about 100% of the landscape being sustainable. We have a lot further to go on figuring out how to manage the 70%. Dukes: What are the key indicators in nature that we need to pay attention to? Deutz: There are two key indicators. The first is vegetation cover. As the world loses vegetation coverage, it impacts water balance, and science is showing less rainfall is falling on land. As I said earlier, there is a risk of the Amazon transitioning from rainforest to grassland. Less vegetation results in less water in the atmosphere and we begin losing agricultural potential, which could turn into a global food crisis. The second is species extinction. We are losing species at a rate of ten to 100 times faster than the rate of natural extinction, and these animals help maintain the ecosystem. Dukes: What role can small businesses play in achieving change? Deutz: The answer is the same as large businesses. Assess your supply chains and put the same practices into place. But yes, large businesses are being called on to meet certain criteria first, because they can,
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.
An Interview with Detroit’s New Director of Sustainability
Jack Akinlosotu, Detroit’s new director of sustainability, sees sustainability opportunities in Detroit’s large geography, mobility industry focus, and other characteristics as he begins to immerse himself in the community. Akinlosuto came to Detroit from Washington, D.C., where held posts at the Department of Energy and Environment (DOEE), the Clean Energy Institute, and in private industry. He also has held positions in New York City, San Francisco, and Seattle. Immediately before coming to Detroit, he served as the senior product manager at Oracle Energy & Water, where he led partnership outreach and software development of the company’s product that helps utilities find, reach, and enroll limited-income customers in financial assistance and energy efficiency programs to lower their utility bills. Previously, he worked as the energy program specialist at DOEE to coordinate multiple renewable energy projects, including community accessibility to solar power, electric vehicles, and green financing. SBN Detroit spoke with Akinlosotu about his vision, how he’ll align strategies with the city’s Sustainability Action Agenda, and his top priorities in his new position. Q: What role does environmental sustainability have for a city the size, scale, economy, and density such as Detroit and how will you approach it? A: When I first came and visited Detroit I was surprised at the geographic scale. There is a lot of space and land. For a city this size to have this much unused land is unusual, and that provides opportunities here in terms of sustainability. There is ample space to scale, deploy and set up solar power and things like that. Also, Detroit is the Motor City and is in a good position to be the frontrunner in the EV revolution. If we deploy EVs in smart ways we will continue Detroit’s history of being the leader in mobility and that’s a great opportunity for economic sustainability as well. Q: What challenges do you foresee ahead of you, for your office, as you move ahead with a sustainable mission for the city? A: The biggest challenge is making sure we are all hitting our climate goals. When it comes to scaling climate change, that’s a challenge every city faces. There is a lot of work to do and coordination and collaboration need to happen. We need to make sure all parties are in alignment for success, and some challenges come with this. We also need to ensure that the people who have historically been left behind are included as part of the process. Q: Conversely, what opportunities do you foresee? You are quoted as saying “There is a great deal of opportunity in Detroit to be more creative in developing lasting sustainability. The sustainability programs we need will be a transformative leap for Detroit.” What does this mean for the businesses and people of Detroit? A: With all the work at hand there are significant opportunities to bring along a new workforce. For example, we need to work on making these older buildings and also residences energy efficient and we need a workforce to do that. We need to deploy and scale the use of solar energy and we need people to do that. There are a lot of opportunities to align climate goals with new jobs. We also need to focus on putting programs in place – such as deploying renewable energy – that help people with limited income. I see this as an opportunity to build a more sustainable economy and more sustainable communities. Q: How do you foresee working with businesses in the city to help them to become more sustainable? Or equitable? A: It’s important that we all work together to help businesses in our region hit their climate goals. In addition to sustainability, there are a lot of financial upsides to making buildings more efficient so there are several “wins” here. Q: What does the Sustainability Action Agenda look like now as you work to create a more sustainable Detroit where all Detroiters thrive and prosper in an equitable, green city and have access to affordable, quality homes? A: There is work being done on many fronts to hit our goals and inform an updated Detroit climate strategy, including the following four key priorities: -Electrification of the city’s vehicle fleet -Transitioning municipal buildings to energy efficiency and -Deploying solar and other measures of clean energy to help with decarbonization -Focus on vulnerable communities and the city’s overall resilience We are working to help vulnerable residents across Detroit by setting up resilience hubs for when there are outages and protecting homes with basement backup retrofits and things like this. The Sustainability Action Agenda is informing the Detroit climate strategy and this work. And the goal is to work as fast as possible. Q: What changes /impact do you expect to have made a year from now? A: On a personal level, I’m new to the city and have been working to intentionally familiarize myself with the community by reaching out to individuals and groups who have been leading the on-the-ground work in their neighborhoods. My goal is to create good relationships so that I understand and hear their needs and what the residents and businesses want out of our plans. I look forward to executing these plans and being further ahead a year from now. In terms of my responsibilities as the director, I plan to deploy as much renewable energy as possible within communities in the city. We will see that progress a year from now. We will see more EV charging stations across the city, and a lot of that work is being done in this area now. The city recently converted its entire municipal parking department fleet of 48 vehicles to all-electric and has deployed four electric buses as part of the bus fleet conversion. We need to keep this momentum going, and we will. Q: What does a successful collaboration between city departments and agencies look like for sustainable growth in the city? A: Keeping all lines of communication open is going to be
A Social Investment Model Designed to Give Power to Residents and Local Businesses
Rishi Moudgil leads the GreenLight Fund of Detroit, a locally driven, cross-sector, community-centered model to collectively identify critical paths to prosperity and invest in equitable social impact programs for children and families facing economic barriers in Detroit. SBN Detroit spoke to Moudgil about the model, sustainability, and impact on Detroit residents, businesses, and stakeholders. Q: Tell us about GreenLight Fund – what is the impetus behind it? A: We are focused on tackling poverty and its effects on residents by investing in solutions that complement the local landscape and boost the existing ecosystem with a proven model that has had a track record in other urban areas. We believe that for a social impact model to succeed and scale it must be aligned directly with who it serves and therefore local folks must drive the process of both determining their needs and selecting the ventures we invest in. It comes back to the challenge of pushing into a community versus being pulled. Our unique model is pull-through. We organize the stakeholders and local advocates to ensure that only programs that align with their needs and have high quality are brought in. Q: What are examples of programs you’ve invested in and the outcomes? A: A workforce program example is the Center for Employment Opportunities. We launched this in Detroit, and it offers immediate and comprehensive employment options for those who have been incarcerated. It’s a multistage model that helps folks to gain immediate employment and put them on a path for long-term work. This dramatically reduces the human cost and financial costs of returning to the justice system. They also partner with existing organizations to shift policy measures that benefit thousands of residents to stabilize their lives and gain employment. Another workforce program is the New Teacher Center, which provides new instructors with embedded support to enhance teaching practice and retention. This builds sustainability within their jobs and student learning gains in the classroom. The program has trained over 150 veteran teachers who mentor new teachers with evidence-based support and it’s reducing the turnover rate in the Detroit Public Schools community district. These programs each came by a community-led process where local residents helped determine the gaps in their communities. We also then hire Detroiters to run the new programs. Q: Relating it to sustainability and businesses in Southeast Michigan – what role does economic sustainability play in your investment strategy in Detroit? A: The key foundation for people to prosper is a combination of economic stability and to have opportunities to advance. Workforce opportunities are critical, and in a place that has been plagued by disinvestment for so long, workforce and economic programs are not enough. We need to wrap around human services transit, housing, education, and more. There are so many topics related to creating an economic foundation for individuals and businesses. Q: What role does environmental sustainability play? A: We can’t have stable places to live, work and play unless the environment is stable. And low-income neighborhoods are some of the most environmentally unsound areas, so this exacerbates a host of problems that continues the cycle of poverty. But where development occurs, home ownership will follow, and thus begins the process of building a more sustainable community. Q: Your website says, ‘Our deep connection with the community and strategic partnerships help organizations ramp up and start producing direct, meaningful change. This ongoing support enables organizations to thrive over time.’ How does this work? A: What we are doing is shifting an approach of social investing to both trusting residents directly and developing stronger outcomes. We rely on residents to choose their destinies. We raise unrestricted capital from partners around the city and hand the funding decisions back to local stakeholders. Deep and ongoing trust is the key ingredient toward achieving the best outcomes. After we launch, we hold a seat on their board, shepherd additional partners and resources, and help create a path of success. Q: How do you account for ROI in your investments? A: We are completely focused on social ROI, as are all of our social investment recipients. We co-develop social impact metrics with both our communities and organizations before we begin operations so there is a clear set of performance outcomes we all agree on. Each organization has a set of outcomes that we all pull together toward achieving, and we know that if these goals are achieved then we are achieving the goals desired by our stakeholders. Q: What’s the largest hurdle you face? A: The biggest challenge is the people and families that have been in some of our neighborhoods the longest have received a disproportionate brunt of the disinvestment. There is no silver bullet. Multiple efforts need to be tackled over the long term. We have to be honest about how we all got here and have difficult conversations about race and gender and inequality. So, one of the largest hurdles is alignment. Are the solutions properly aligned to the true needs of the people and planet and are they sustainable to create lasting change over time. Q: How do you see the city’s Sustainability Action Agenda aligning with the work you are doing? A: We are completely aligned with the agenda and believe we need integrated action. This means centering people and the planet simultaneously. We can no longer isolate variables and expect progress. Sustainability and social impact goals must be front and center as we build toward the future. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
University of Michigan President Santa Ono Expands on Sustainability Agenda at SBND event
University of Michigan President Santa Ono has put sustainability and fighting climate change among his top priorities since he assumed the position in October. In addition to several programs and initiatives that are being expanded or developed, the university is now serving as the lead institution for the University Climate Change Coalition which convenes 23 leading North American universities to work toward climate action on campuses, in communities, and at a global scale. Ono spoke about his sustainability agenda for UofM at an April 5 luncheon attended by more than 250 stakeholders and business and organization leaders. The event was sponsored by the Erb Institute and hosted by the Sustainable Business Network Detroit and Inforum. Tom Lyon, faculty director at the Erb Institute, kicked off the event by saying, “As we build toward expertise on sustainability the challenge is to think globally and act locally together, and the state, the universities, businesses, and all sectors have to be involved.” John M. Erb, Erb Family Foundation chair, echoed that sentiment commenting, “We are all important stakeholders in balancing the needs of the people, planet, and economy and working toward a more sustainable future.” Working together and the need to connect the dots toward saving the planet were primary themes. Each of us is indispensable in responding to and resolving the biggest challenge our society has ever faced and solving this emergency transcends borders, Ono said. We need to come together in the form of a nexus to benefit us and all who follow us on this planet. Ono said the university benefits from strength in numbers with 800+ sustainability faculty members, 100+ student organizations, and 8,000 Planet Blue Ambassadors. He gave a special nod to students, saying, “Their passion has wowed me, and I have found that many times it’s the students who (first) identify and develop solutions.” Some of UofM’s sustainability priorities include moving to 100% renewable purchased power by 2025, building on-campus solar installations with a capacity of 25 megawatts across the Dearborn, Flint, and Ann Arbor campuses – including Michigan Medicine and athletics – and achieving LEED Platinum status for all buildings. Ono talked about the university’s historic ties with the city of Detroit and its responsibility toward it. “The university was established in 1817 at Cadillac Square in Detroit, and Mayor Duggan took me there saying that we have a great responsibility to the city, and he’s right.” On March 6, the university announced new commitments for the $250 million University of Michigan Center for Innovation, previously known as the Detroit Center for Innovation. The project is a collaboration with Stephen Ross, chairman and majority owner of Related Companies, and the Ilitch family. Ono noted that the center will accommodate academic and community programs to include three distinct types of activity—graduate education, talent-based community development, and community engagement—all in the service of economic development and job growth for Detroit. In the spirit of collaboration, Ono also pointed out that there were people attending the event from other Michigan universities and applauded this, saying, “We have our competition on the fields and courts, but getting closer to other Michigan educational institutions is very important to UofM. We need MSU to make advances in agritech, and Wayne State University is a critical component to making advances in the city. We all need to work together and we are starting to do more of that now.” Following his speech, Telva McGruder, Chief Diversity, Equity, and Inclusion Officer for General Motors Co. and member of the advisory board for the UofM School for Environment and Sustainability, moderated a Q&A. Below are some of the key questions and takeaways. McGruder: What is your top priority as president of the University of Michigan? Ono: Addressing climate change. I’ve been very vocal that this is my number one priority. Michigan has to be a leader here. And that is the wish of the collective voices of the university as well. Students are actually pushing me, and I appreciate that so much. I have told them to hold my feet to the fire. McGruder: Regarding the notion of connecting the dots, how do you as a university leader – and how do leaders in other organizations – bring expertise together for progress? Ono: I think the different pieces of the puzzle that exist illustrate opportunity. One part of the secret sauce at UofM is that each director has the autonomy to dream and be bold. Now, we need to collaborate and form connections around these ideas. The faculty and leadership and students have wowed me with their collaborative spirit. McGruder: How can companies and organizations around the state connect with the efforts of the university? Ono: We are working on making a “front door” more clear. We are going to invest and Identify someone to knit it together and act as the gatekeeper to reduce the barrier to communication inside and outside the university. McGruder: Progress sometimes means people changing ways of doing things and letting go so that we can move forward. What are your thoughts as we move forward toward carbon neutrality on some of the things we have to encourage communities to let go of? Ono: It goes both ways. Trust is a critical point. Leaders have to earn trust. We as a university have to go into communities knowing that we have as much to learn from them as they do from us. We as a university have made mistakes along the way, and so have other institutions and companies. Addressing that truthfully is a prerequisite to going into communities and working together. McGruder: When it comes to funding, how do we help decision-makers and leaders within all sectors understand the need to spend on sustainability efforts? Ono: Addressing the climate crisis is not a bottom-line budget issue it’s a social responsibility. And what is the point of a strong financial standpoint if there’s no planet to exist on? A recording of the complete program can be found here: https://vimeo.com/815068547 Be sure
