SEMCOG Working to Develop Plan to Reduce Greenhouse Gas Emissions

The Detroit-Warren-Dearborn Metropolitan Statistical Area (MSA) recently was allocated $1 million to develop a plan for reducing greenhouse gas emissions and other harmful air pollution through the US-EPA’s Climate Pollution Reduction Grants (CPRG) program. The plan will cover the MSA’s six counties – Wayne, Oakland, Macomb, St. Clair, Livingston, and Lapeer – as well as Washtenaw and Monroe counties. The Southeast Michigan Council of Governments (SEMCOG), which is the lead agency for Southeast Michigan’s Climate Action Plan, will manage the funds. The plan is in place to help local governments improve and maintain Southeast Michigan’s transportation systems, environmental quality, economic interests, and infrastructure. SBN interviewed SEMCOG Planning Director Kevin Vettraino about what this will involve, how it will roll out, and how it impacts businesses, residents, and communities in Southeast Michigan. Q: Tell us about SEMCOG. A: SEMCOG is the regional planning organization for the seven counties that make up the Southeast Michigan region: Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne counties. Our primary mission is to support our local government members, including counties, cities, villages, townships, and educational institutions. We work to improve the quality of the region’s water, make the transportation system safer and more efficient, revitalize communities, and spur economic development. These things shape the areas we get involved in. I like to say we focus on planning for the issues or opportunities that cross geographic or community boundaries, such as roads, rivers, lakes, air, and the economy. Q: The U.S. Environmental Protection Agency allocated $1 million to develop plans for reducing greenhouse gas emissions, and SEMCOG is acting as the lead agency to develop a climate action plan. What will this entail? A: At a high level, the plan will establish community-developed and evidence-based methods to reduce greenhouse gas emissions that will meet the requirements of the EPA and CPRG. One approach is to enhance natural areas that capture carbon. The plan will also integrate extensive stakeholder outreach and input, along with equity considerations, and consider the impact of policies, strategies, and actions from the regional level down to the household level. This work complements the recently adopted Southeast Michigan GREEN: Strategic Framework for Growing our Resilience, Equity, and Economy with Nature, which is an initiative to address some of the region’s most pressing challenges – managing floods, fostering climate resilience, improving community health, and protecting our natural assets – all while creating vibrant places where people want to live and where businesses will thrive. Q: What is the next step and timeframe for action? A: The next step will be launching a task force with the intent to meet at least eight times over two years. Part of the large overarching task force will be smaller focus groups that will cover more specific parts of the plan. The focus groups have not been formed yet, but they are likely to focus on transit, energy efficiencies, EVs and the impacts of the transition, materials management, and nature-based opportunities and impacts. Beyond the focus groups is community engagement. This is critical for success. It’s important for us to have a two-pronged approach here, that being education and data sharing and also public engagement and input. Q: What does community engagement entail? A: Surveys, local meetings, webinars, and other outreach with a lens toward ensuring that the benefits and policies that come out of this work support all residents, including lower-income residents. These people have traditionally been underrepresented and more impacted, and we need to ensure that any actions we take support them and don’t further negatively impact them. Q: How will this impact Southeast Michigan businesses and communities? A: My hope is that through our work there is an education component. In basic terms, we need to make sure we are speaking the same language. There are a lot of terms around climate action such as equity, green infrastructure, etc., and we need to ensure that whether you are a business, community, government entity, or a resident, we all have a similar understanding regarding what these terms mean and why they are important. I hope that business leaders can see themselves within the strategies, policies, and actions that come out of this work and align with them. We all have a role to play in this. This plan will not be the silver bullet that can solve the climate challenges in the region but all of us together can make an impact. From installing a green roof or rain garden to ensuring all people have safe facilities to walk or bike to destinations, whether it’s a sidewalk or bike path or considering nature-based and green infrastructure solutions when putting in a new parking lot or reconstructing a roadway, there are things we all need to be thinking about and doing. Q: What are your main challenges? A: Again, it’s getting a common set of words and a familiar language. It’s also about education and making everyone understand the importance of the plan, and working toward a healthier region, and putting sustainability practices in place to support our climate long into the future. A lot of our work targets dates far into the future, such as 2050, and sometimes it’s difficult to get buy-in when it’s so long-term. The challenge is we need buy-in and immediate action to get to where we want on the horizon.  Q: What are the main opportunities? A: First, we have the $1 million funding to help develop a plan, inventory our greenhouse gas emissions, and develop policies – which is great. Through the development of this plan, the region and our communities and businesses will become competitive for an estimated $4.6 billion in EPA grant funding for implementation. Second, if we are able to get folks both in leadership and residents across the region to both understand the importance of the action plan and to be intentional about environmental justice and the allocation of funds and the action to support those directly impacted, that is a great success. Q:

Banking With a Sustainability Mission

BETH CORREA, DIRECTOR OF CORPORATE RESPONSIBILITY, FLAGSTAR BANK, AND A LEADERSHIP COMMITTEE MEMBER FOR SUSTAINABLE BUSINESS NETWORK DETROIT Flagstar Bank understands that environmental concerns have far-reaching implications for society and businesses alike. By prioritizing sustainability, we demonstrate our commitment to mitigating our environmental impact. In 2022, we hired an ESG/Sustainability Director, Kirby Brendsel, in order to streamline and enhance our sustainability strategy as well as to build out our broader ESG efforts. This dedicated role ensures that environmental considerations are integrated into the bank’s strategies, policies, and operations. Kirby brings many years of experience in the ESG/Sustainability space. As part of his role, he oversees the implementation of sustainable practices such as reducing energy consumption, minimizing waste generation, and promoting eco-friendly initiatives. ADOPTING SUSTAINABILITY PRACTICES Adopting sustainable practices—and developing sustainable products and services that meet customers’ needs—can significantly enhance Flagstar’s corporate reputation. In an era where customers increasingly favor socially responsible companies, sustainability initiatives can differentiate Flagstar from its competitors. By demonstrating our commitment to sustainability, the bank can attract environmentally conscious customers, employees, and shareholders who value ethical and responsible business practices. This positive focus on sustainability can lead to increased customer loyalty, brand recognition, and, ultimately, financial success. Sustainability initiatives at Flagstar also serve as a proactive approach to risk mitigation and long-term financial stability. By identifying and addressing potential environmental risks, such as climate change impacts or regulatory changes, we can safeguard our operations and investments. Moreover, sustainable practices often lead to cost savings through increased energy efficiency, reduced resource consumption, and streamlined processes. By minimizing operational costs and creating a more resilient business model, we can ensure our long-term financial stability. EMPLOYEES ARE KEY STAKEHOLDERS Flagstar recognizes that employees are key stakeholders in sustainability initiatives. In late 2022, we launched an environmental/sustainability-focused Employee Resource Group named the Green Team that helps us tap into the passion and creativity of our workforce. It also serves as a platform for employees to collaborate, share ideas, and contribute to sustainable initiatives. This engagement fosters a sense of purpose and empowers employees to make a meaningful difference. Moreover, the Green Team can act as a catalyst for innovation, encouraging employees to identify new opportunities and implement sustainable solutions throughout the organization. FINANCE INTEGRATING ESG FACTORS The world of finance is increasingly integrating ESG factors into investment decisions. By prioritizing sustainability, Flagstar aligns itself with emerging ESG standards and meets investor expectations. Staying ahead of regulatory changes and industry trends positions us as an attractive investment option for socially responsible investors. This commitment to sustainability enhances transparency, and accountability, and ultimately contributes to long-term shareholder value. In today’s rapidly changing world, the importance of sustainability cannot be overstated. Organizations across various sectors are realizing the need to integrate sustainable practices into their operations. At Flagstar, we recognize the significance of sustainability and are committed to incorporating environmentally responsible practices into the fabric of our organization.  Flagstar’s sustainability initiatives not only benefit the environment but also contribute to our long-term financial stability and success.   Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.

A Focus on Housing and Commercial Corridor Stabilization

COUNCILWOMAN LATISHA JOHNSON

Detroit native and Councilwoman Latisha Johnson has been active in the community for 15 years and represents Detroit City Council  District 4 on the east side of the city bordering Harper Woods and Grosse Pointe, a community she’s lived in most of her life. She attended Detroit Public Schools and graduated from the University of Michigan- Dearborn, where she earned a degree in finance. She began her career in Detroit’s tourism industry, marketing the city to visitors to attract spending within the local economy. Johnson began her public service in 2007 when she became vice president of the East English Village Neighborhood Association. During her tenure, she led efforts to eliminate blight, hold financial institutions accountable, and prevent residential property tax foreclosures. In 2014, she founded MECCA Development Corp. to address concerns of well-being, workforce development, youth engagement, and neighborhood revitalization. She has also has served as treasurer for the 5th Precinct Police/Community Relations Council, vice chair of the City of Detroit’s Board of Zoning Appeals; member of the Wayne Metro Community Action Agency Regional Advisory Council, and was a volunteer with Wayne State University’s AmeriCorps Urban Safety Program. SBN Detroit spoke to Johnson about her sustainability goals and about how residential development and business development go hand in hand. Q: What are your primary goals for sustainability in the city? A: One key thing is the evaluation of our internal processes. I co-chair the Small Business Task Force with two council colleagues, Mary Waters, and Angela Whitfield-Calloway.  Our focus is to ensure that our requirements and practices for small businesses to bid on projects are not insurmountable. One example that came to light just recently: We had a contract come before us, and our procurement team had to make calls to companies to encourage them to bid. In a healthier environment, we should have contractors knocking on our door to bid on projects. This showed us that a lot of companies are overwhelmed by our processes.  Small businesses just don’t have the resources to navigate them, so we are now trying to streamline the system and reduce paperwork and red tape. We want to find ways to help grow small businesses, particularly in the neighborhoods of Detroit. Q: In 2014, you founded MECCA Development Corp. to address concerns of well-being, workforce development, youth engagement, and neighborhood revitalization. How does this work impact and inform your role as a councilwoman? A: It definitely impacts what I do now. MECCA had four areas of focus: workforce development; residential development; seniors; and youth. The area I became passionate about – especially as we saw property values climbing – was and is residential development. Houses have become unattainable for lower-income families in this climate. Too many people cannot afford the down payments and can’t qualify for loans. Now I’m hyperfocused on affordable home ownership. This also comes from who I am as a Detroit native who grew up in a lower-income household. I have firsthand experience with these challenges. Therefore, I’m working on programs and opportunities to assist. We recently started a Down Payment Assistance Program to provide up to $25,000 for lower-income renters who want to purchase a house in the city. I’m also working on getting the city of Detroit to support Community Land Trusts. I recently worked with a group of students from the University of Michigan to understand how split-rate taxes (which tax vacant land at a higher rate than structures and improvements) would impact Detroit homeowners. I also established the Equitable Development Task Force, which focuses on addressing underserved communities through policies and programs that reduce disparities while fostering places that are healthy and vibrant. The task force may include residents, representatives from the community, labor, the business sector, as well as any other individuals interested in participating. So yes, MECCA helped shape and inform the work I do around housing and home ownership. I’m always striving to find ways to provide support to low-income families. Q: How do you think residential development impacts businesses in Detroit? A: When I look at our district, the areas that have benefited from the Strategic Neighborhood Fund – Jefferson, East Warren, and now Gratiot – are the areas in which residential properties have also stabilized. So, we know that revitalizing commercial corridors helps stabilize residential, and vice versa. More businesses will come into these areas – it’s cyclical. I’d also like to see people having the opportunity to build equity in their homes that they can pull out to start their own businesses and build generational wealth. It all connects. Years ago, when I worked at Detroit Convention and Visitors Bureau, and we hosted site inspections, we had to craft the routes to prevent taking clients through blighted commercial corridors.  When commercial corridors look a certain way, it gives the impression that the neighborhoods are even worse. So, we need more of a focus on both housing and commercial corridors to become stabilized, and they depend on one another to do so. Q: What are the biggest challenges you face? A: First, the tax rate in Detroit. It’s a challenge for residents and businesses. Second, is the lack of promotion of our neighborhoods and commercial corridors to encourage businesses to establish there. No entity proactively promotes and connects entrepreneurs to these communities. There is a big opportunity there. Q: What are other opportunities for the city, and how will these affect businesses? A: As I mentioned earlier, there is an opportunity to streamline the city’s internal processes so that smaller businesses can bid on and secure projects. Another opportunity is the promotion of harmonious growth between business communities and residential communities. We have not done that well.  I think businesses and communities can work together better to support one another. When a business does this, it will inherently last longer in the community And when it comes to bringing industry and manufacturing to certain areas, the city has to do a better job of ensuring that we are protecting residents.

Sustainability Business Network Detroit, One Year In

NEIL HAWKINS, PRESIDENT FRED A AND BARBARA M ERB FAMILY FOUNDATION

Sustainable Business Network Detroit was formed a year ago out of a study conducted by Erb Family Foundation and is helmed by Terry Barclay, chair, SBN Detroit, and CEO Inforum; Neil Hawkins, president of Fred A. and Barbara M. Erb Family Foundation; and Cindy Goodaker, VP, signature programs and communications, Inforum, along with a distinguished list of organizing members steeped in the sustainability community of Southeast Michigan. The group’s goal is to create a sustainable business ecosystem by convening a network serving as a hub for idea-sharing, programming, content, mentoring, and more – to accelerate the systemic adoption of sustainable business practices in Southeast Michigan. The primary belief is that business is a positive force for change and can and should be used as a force for good. For the past twelve months, the network has worked toward three core pillars; advancing and amplifying sustainable business practices in a centralized hub; creating urgency to activate; and articulating a sustainable way forward for the region. Here, Neil Hawkins shares his viewpoint and insights on the progress the network has made this year and the vision for the future. What is the impetus behind SBN Detroit? How did the idea arise and how was it developed? I’ve been involved with sustainability as it relates to businesses for some time and worked for Dow as their chief sustainability officer. Subsequently, Fred and Barbara Erb established the Erb Institute for Sustainable Global Enterprise more than 25 years ago at the University of Michigan. No program like this had existed in the world up until then, and it was very forward-thinking and visionary – the idea that business had a positive role to play in environmental sustainability. I came to the Erb Family Foundation as the president four years ago and at that time, we commissioned a study done by Sarah McCall – now working as SBN Detroit administrator – of what needed to be done to accelerate progress in sustainability within the region. That research was the impetus behind starting a network that would accelerate sustainability through business collaboration and progress – SBN Detroit. How do SBN Detroit’s three pillars work together to achieve its mission of mobilizing businesses and organizations to make Southeast Michigan a global leader in sustainability? Fundamentally the pillars are in place to help break down the barriers – silos. There are too many silos that exist in the region, and they prevent progress. These are silos between companies and across different-sized companies, and between companies and non-profits etc. All of those together are a barrier to making faster progress. These three areas of focus – urgency, centralization, and looking forward – are helping to tear down these silos and promote collaboration. The second statement was a fragment as written. I think it’s supposed to say: These three areas of focus – urgency, centralization, and looking forward – are helping to tear down these silos and promote collaboration. (I’m not sure my edits made that clear) A year in, what impact do you think SBN Detroit has made and is making? What is its greatest success so far? I think SBN Detroit has helped to completely change the level of dialogue within the region about sustainable business practices. I see it as a ‘before SBN Detroit and after SBN Detroit.’ We are seeing new collaboration and a lot more discussion about how we can work together to move forward, and we are seeing it on a completely different level. What specifically do you attribute this to? I think our biggest success in the last twelve months is the March 2022 event we had featuring Dr. Katharine Hayhoe on improving the dialogue about climate change. It was a remarkable event, and the timing was such that it was many people’s first foray into a public space since COVID had begun. The narrative of the event coupled with the interaction among people with like minds and like interests sparked renewed energy toward our collective goals. I also attribute our success to our steering team. I thank them for laying out a strategy and faithfully bringing people together. If the steering team works well together – and it has – we have a good shot at having continued success. What is the importance of collaboration when it comes to sustainability in this region? It is only going to be through collaboration that our region and ecosystem reach their full potential. SBN Detroit is focused on accelerating collaboration by creating opportunities for dialogue and action. We’ve accomplished this, and I see the fruits of it already. Excellent groundwork has been laid. What are your thoughts on SBN Detroit as a network? I think SBN Detroit represents many networks and is not a single network. This is still playing out a bit, and it’s a good thing.  As long as we can keep companies and nonprofits and different universities and institutions involved and collaborating and working together that’s a great thing. What do you see as the primary obstacles to network formation, and how can they be overcome? The key obstacle is competition – competition between businesses, between businesses and nonprofits, between nonprofits and universities, between universities and other universities, and so on.  The key thing we all have to focus on is that this is not a zero-sum game. By collaborating we make the pie bigger for everyone. There is growth here to be had and a lot of investment to come. We can all share in that growth if we are working together. This will position metro Detroit well. What do you see as the corporate-level impact of SBN Detroit? Having come from corporate, what I see through SBN Detroit is a renewed sense of group action and focus on the region, the Great Lakes, and the planet. Pre-COVID some silos existed, and then you throw in a pandemic that forces people to not even go into their workplace, and it is significantly exacerbated. We have started to create a sense of urgency and