Helping Detroiters Create New Businesses for a More Equitable World
Jerry Davis, Gilbert & Ruth Whitaker Professor of Management and faculty director of Business+Impact at the Michigan Ross School of Business, believes that with more available government funding than in the past, more entrepreneurs and businesses in Detroit are in a position to build equitable community wealth. Davis, who received his Ph.D. from the Stanford University Graduate School of Business and taught at Northwestern and Columbia before moving to the University of Michigan, has published six books and dozens of articles in academic and business publications. His latest book is Taming Corporate Power in the 21st Century (Cambridge University Press, 2022). His focus is reshaping and developing businesses to be drivers of social and environmental change. SBN Detroit spoke to Davis about his perspectives, the new graduate-level class, and what it ultimately means to Detroit businesses. Q: Tell us about your concept of reshaping businesses into drivers of change. A: I think there are two ways we can orient businesses toward a more equitable sustainable future. First, we can take an existing business and reform it from the inside. This is often done by intrapreneurs. Second, we can create new enterprises that are built right from the start. My overall concept is that businesses can address bigger challenges than just shareholder value through reform or fresh starts. There are so many new building blocks available to businesses today that we can leverage to not only make money but also to begin to address the racial wealth gap, generational inequality, and the green energy transition. Q: What do you mean by building blocks? A: Technology has fundamentally changed the building blocks for creating an enterprise in the last fifteen years. There are dozens of new ways to raise capital that didn’t exist ten to fifteen years ago. There are new ways to find distribution channels, new ways to work with suppliers and labor, new legal formats, and the list goes on. Q: How do the United Nations Sustainability Development Goals inform your work? A: Since the inception of the Sustainability Development Goals in 2015, I’ve used them as a GPS of sorts for orienting what businesses can do to contribute to social benefit. I’ve integrated this into my teaching and writing and research. Drilling down …If you had to pick one threat we are facing on a global basis that businesses can work better to address – and that creates business opportunities – it’s the green energy transition. This is the thing in our generation that we need to accomplish starting today. And it’s impossible to address it with government action only. There is a central role for businesses to play in bringing about this transition. And with the Inflation Reduction Act and Justice40 in place, there is no better opportunity to build green enterprises than right now. Q: What are some of the opportunities provided by the Inflation Reduction Act? A: As I said, the need for the green energy transition has never been greater. It is imperative for our species. At the same time, we have the Biden-Harris administration launching the IRA, which creates huge incentives to electrify and transition to green energy. There is an astounding amount of money being allocated to homeowners and renters and drivers to help make this transition. You can simply go online and see the offerings – switching from a gas furnace to a heat pump offers free cash. There are huge tax benefits to electric vehicle owners. And low-income brackets receive even more benefits. I highly recommend the “Rewiring America” website. From a business perspective, this is an opportunity like never before. Businesses that provide services around transitioning to green energy stand to prosper greatly through this funding. These opportunities represent a chance to build generational wealth. Q: Can you explain more about how the act supports generational-wealth building? A: Detroit has been hit hard in several ways … the mortgage crisis, residential flight, municipal bankruptcy, and the list goes on. These have robbed people of opportunities to create prosperity for themselves and their families. So, this funding represents an especially well-placed opportunity for cities like Detroit. According to the White House, the Justice40 initiative means that “40 percent of the overall benefits of certain federal investments flow to disadvantaged communities that are marginalized, underserved, and overburdened by pollution.” That includes “climate change, clean energy, and energy efficiency, clean transit, affordable and sustainable housing, training and workforce development, remediation and reduction of legacy pollution, and the development of critical clean water and wastewater infrastructure.” When you combine the IRA and Justice40, it opens the spigot for cash allocated toward environmental initiatives. So again, the opportunity to start a new business and build community wealth has never been greater than it is right now. This is the impetus behind a new graduate class starting this week called “Impact Studio: Designing the Equitable Enterprise” that I am teaching with my co-instructor Cat Johnson. Q: Tell us more about the class and how you see it impacting both the students and local businesses. A: The class focuses on how to use the new building blocks of business to create enterprises in Detroit that will facilitate the green energy transition. Students will interview dozens of Detroit businesses and members of the community to better understand the needs and pain points around energy. They will then map out the opportunities. For example, let’s say a building contractor is looking to use heat pumps but can’t find someone with the skill to install them, or can’t find a vendor for them. This represents an opportunity. Maybe a college can create training programs for installation. Or find incentives to make heat pumps more widely available. They will then go on to create what I call template business models – plausible, economically sustainable models that are replicable – and a set of how-to guides. The how-to guides will translate into plain English the ways in which entrepreneurs and communities can build on the IRA and the new building blocks of
With 110,000 Jobs and $5 Billion in Wages, Michigan’s Outdoor Rec Industry Continues to Grow
With 36,000 miles of rivers and streams, 20.3 million acres of forests, 1,300 miles of designated mountain bike and bicycle trails, 6,500 miles of snowmobile trails, and more than 600 campgrounds, Michigan has a lot to offer in the way of outdoor recreation. These resources provide connections with nature and opportunities for a healthier lifestyle, and they support Michigan’s economic growth with more than 7,000 outdoor recreation industry companies that include manufacturers and retail and service-sector businesses. And the goal is to continue growing. “When you put Michigan’s outdoor rec growth stats next to the fact that Southeast Michigan is one of the best places for entrepreneurship and venture capital, it becomes about how do we exemplify this and amplify it and bring and support talent here toward even more growth,” said Brad Garmon, director of the Michigan Office of Outdoor Recreation Industry of the Michigan Economic Development Corp. Gov. Gretchen Whitmer created the office in 2019 to focus on the outdoor economy, and the same year, the state joined the Confluence of States (COS), a bipartisan coalition of states dedicated to cultivating strong outdoor recreational economies while preserving land and other natural resources. Garmon, the coalition’s incoming chair for 2023, said the coalition’s four areas of focus align with Michigan’s goals of developing a sustainable future: Economic development, workforce and education, public health and wellness, and conservation and stewardship. “There is inherent connectivity between the outdoor recreation industry and building a sustainable future – a sustainable Michigan,” Garmon said. “We are leaning into the four COS areas of focus to create jobs, strengthen the economy, and promote physical activity while also being stewards of our wetlands, waters, forests, trails, parks, and natural resources.” The added infrastructure points to the growth in the outdoor recreation economy. According to the Michigan Economic Development Corp. and the U.S. Bureau of Economic Analysis: Michigan’s outdoor recreation economy grew 15.4% from 2020 to 2021 and is up 30 percent since 2012. The outdoor recreation industry employs nearly 110,000 people in a wide range of occupations and skills, including design and manufacturing, retail sales, and hospitality, accounting for $5 billion in wages and salaries. More than 7,200 of Michigan’s outdoor recreation jobs are in manufacturing, such as boating, RV, and gear manufacturing. The outdoor recreation economy also impacts local retailers across the state to the tune of $3.5 billion, accounting for 32% of the total value-add impact. Retail jobs supporting outdoor recreation totaled over 41,000 in 2021. The value-add is the difference between sales receipts plus other operating income and inventory change and production costs. And more growth is the plan. “We are working on identifying how we can add jobs, and also bring companies in from out of state,” Garmon said. He points to the bike industry as an example, saying, “I attended a bike industry summit recently and a large area of discussion focused on the fact that manufacturing is mostly overseas, and that the legacy of bicycle production in the U.S. has been lost. By pointing them to the manufacturing and engineering expertise in Michigan this creates a pathway for opportunity and a win/win for all.” Another area of interest for Michigan is the electrification of motor sports vehicles. “This industry is looking at and thinking about an electric future now, and our innovation in this area could bring big opportunities and more business,” Garmon said. Given that Michigan is also being recognized as a destination for startups and venture capital investment, the implication of opportunity gets even stronger. In fact, Detroit is the No. 1 emerging startup ecosystem globally, according to newly released rankings from Startup Genome’s 2022 Global Startup Ecosystem Report (GSER). When you consider that Detroit has also been recognized as one of the best travel destinations in the world, one of Time’s ‘Worlds’ Greatest Places’, and the Riverwalk is consistently voted best in the America, Detroit becomes even more interesting. Garmon shares, There is this antiquated idea that recreation only happens in wild or natural places, but Detroit is demonstrating that recreation happens everywhere. The Dequindre Cut, Belle Isle, the Riverwalk, and our parks all support quality of life and activity and recreation in Detroit. He added: “You don’t have to be on a trail or working in the wilderness to apply work skills and/or enjoy life. We are getting better at telling Detroit’s story and talking about Michigan’s assets and not living in the shadows of places like Colorado – we are now standing right next to them.” Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
A New Boulevard for Social Justice, Connectivity, and Economic Impact
The development of I-375, the extension of I-75 that runs into downtown Detroit, leveled the Black Bottom residential neighborhood and the Paradise Valley entertainment district when it was constructed in the late 1950s and early 1960s with economic impact displacing 130,000 people, hundreds of small businesses, churches, and more. The city has been divided by the highway for over 70 years. Now, the Michigan Department of Transportation (MDOT) is funneling $104,657,051 from the President’s Bipartisan Infrastructure Law that passed last year to replace the one-mile-long freeway and develop a lower-speed urban boulevard with the impetus to recognize the wrongdoing of the past and get it right for the future. The project proposes three elements of study, design, and research. The first is understanding the urban design profile … how this area is developed to reconnect Downtown Detroit and the riverfront to the surrounding neighborhoods. Second is the final boulevard design, which is intended to enhance the urban experience based on City of Detroit design standards and offer new economic opportunities via business development. Finally, the framework will determine how diversity, equity, and inclusion can be used to create opportunities for Detroiters, taking the history of the land into consideration. This is the first of a two-part article that will cover the project’s social justice, connectivity, and economic impacts. In this article, MDOT Director Paul C. Ajegba talked to SBN Detroit about this ‘very unique and challenging project.’ With more than 31 years of experience at MDOT, Ajegba established the position of chief culture, equity, and inclusion officer at the deputy director level within his leadership team. This followed his work to establish MDOT’s Historically Black Colleges and Universities (HBCU) Transportation Diversity Recruitment Program (TDRP). The program is a partnership between MDOT, the Federal Highway Administration (FHWA), the American Council of Engineering Companies of Michigan (ACEC), and Michigan colleges and universities, offering on-the-job training to minority undergraduate students pursuing degrees in engineering. Ajegba is a member of the Conference of Minority Transportation Officials (COMTO) and serves on the following boards: the American Association of State Highway and Transportation Officials (AASHTO) (vice president), chair of the AASHTO Council on Public Transportation, ITS America, Mcity, the University of Michigan Civil and Environmental Engineering Friends Association (board president), the Engineering Society of Detroit, and the . Q: What is the impetus behind the I-375 project? A: It is a way for us to recognize that things were not done right in the past, and it is our opportunity to get them right. In the early ‘50s, Black Bottom was a large community with many thriving African American residents and businesses. In those days we did not have the community engagement that we do now. City planners decided that the best use of the area was to build a freeway and they did it, causing the displacement of thousands of residents and many successful businesses. So, the impetus behind this project is to take a step back and rethink the way we plan and design, build our infrastructure and then build it with the users, stakeholders, businesses, and residents in mind. It is the opportunity to conduct a 360-degree review of all areas of impact and make decisions that are right for everyone. The equity and inclusion piece of this is huge. We are being meticulous and methodical in how we plan to make sure the community is engaged every step of the way. Q: What is the narrative around the topic of equity? A: We need to bring equity into our transportation infrastructure. We cannot erase the mistakes of the past, but what we can do is make sure we look through and operate through a lens of equity going forward. Several different uses of this area have been on the table. We engaged with the community and together decided that creating a boulevard that will attract new development and connect neighborhoods is the best use of the corridor. Q: How will this project honor the history of Black Bottom and Paradise Valley? A: We are currently in the design process and considering all different ways to do this and we are hiring a historian to help with this aspect. Recognizing and honoring what took place here will be built into the aesthetics of the whole corridor. You will see this reflected in the project overall. Q: Is this project part of a larger shift toward building state infrastructure with equity in mind? A: I think there is a big shift taking place not only in Michigan but across the country to rethink inclusivity when it comes to building infrastructure. There is a substantial focus on developing walkable communities, making sidewalks wider, incorporating bike lanes, and connecting neighborhoods with greenways. The walkable aspect gives local businesses in the area more foot traffic and access opportunity. I believe this is an equity issue, an economic issue and also a health issue. Making areas accessible for walks and bike rides and connectivity and movement is important. Q: How did this project originate? A: Discussions began eight years ago. The bridges and roadways have required repair and are at the end of their useful service life. So instead of simply repairing them, we began to look at rethinking the freeway and asking ourselves – Is this the right thing for the city? Extensive research was conducted with a Planning and Environmental Linkage (PEL) study to identify and evaluate alternatives for the corridor that would meet the transportation needs of all users and improve connectivity. This led to the determination that the transformation from a freeway to a boulevard was feasible. This then led to an Environmental Assessment (EA) study to document the human and natural impacts associated with any proposed improvements. What we landed on is a street-level boulevard that will begin south of the I-75 interchange and continue to the Detroit River (Atwater Street), effectively using the city grid to disperse and collect traffic, opening additional connections to the riverfront, Eastern Market, and Brush Park, and creating
Through Staffing, Cleaning, and Advocating for the Community, Business Owner is Working to Motivate Detroiters Toward Sustainable Growth
From social justice to getting Detroiters back to work, and even an emerging green dumpster business, Mario Kelly is following his passion for connecting those in the community to sustainable opportunities and inspiring others to follow their business dreams. To that end, Kelly started B3L1EV3 – a motivational-apparel company – several years ago to inspire Detroiters to go after what they believe in. Keeping that sentiment, he then launched Believe 313 Staffing, Believe 313 Cleaning, and soon-to-be Believe 313 Dumpsters. Born and raised in Detroit housing projects, he has been a community activist and liaison for years. Kelly started Believe 313 Staffing in 2017, following that with the launch of Believe 313 Cleaning in 2020, and now holds contracts to do post-event cleaning for Ford Field, Little Caesars Arena, Comerica Park, the Fox Theatre, and Pine Knob Music Theatre. His extended vision for Believe 313 Dumpsters is about diverting commercial and residential waste from landfills in the city of Detroit and beyond. Here he talks to SBND about his businesses, his inspiration, and his continued efforts across areas of sustainability in Detroit. Q: How did Believe 313 Staffing start? A: I grew up in a HUD neighborhood at I-75 and Canfield and nearby was the meat packing company Wolverine Packing. They had received a tax abatement from the city of Detroit to build a storage unit and a park in the neighborhood. Part of that tax abatement required them to hire 50 people from the surrounding area. Owners Jim and Jay Bonahoom came to the community to get insights on what people wanted and to start to talk about hiring. People in the neighborhood referred them to me because I was heavily involved in the community and knew a lot of people. They told me they need 50 people and I brought them 100 applicants. Jay and Jim then began urging me to start a staffing company to help connect people in the neighborhood to opportunities. I thought – what does a kid from the projects without a degree know about starting a business? But they kept advocating for me and supporting me, so I did it, and today it’s a seven-figure business. Q: You’ve been very involved in social justice and community. You started a program called Canfield 75, an effort that aimed to bridge the divide between housing projects in your community. You created a neighborhood Meet Up and Eat Up – a free summer lunch program for students – and you’ve coached and led youth groups in several capacities. Where does your passion come from? A: I’ve always felt that my purpose is helping people. And growing up where I did … you form strong bonds. We had to help each other in whatever we had going on. There is a real sense of community in underprivileged areas. I want to and can get people in the community to work. They are ready and willing to work, and I enjoy connecting people to local businesses and creating opportunities for people to get ahead. My purpose here is to help assist people on their journey to financial stability. It’s a win/win. Q: You grew your staffing company and added a cleaning company – Is that right? A: Yes. I had the concept and business cards – the start of the cleaning company. I was involved with the Detroit Youth Choir and they were invited to take a tour of Shinola that I attended. That was serendipitous because the individuals at Shinola happened to mention that they needed a new cleaning company. I wrote up a proposal and have been cleaning for them since. Eventually, I was referred to Comerica Park, and that opened the door to all of the arenas. I just held a two-day job fair to hire people to clean Ford Field on Thanksgiving. The pay is $22 per hour which is solid. I had 120 people come out for this opportunity. This helped folks earn money to buy Christmas gifts and fulfill other basic needs. Q: What sustainability practices do you follow regarding your work at the arenas? A: We use all eco-friendly cleaning products. All of the arenas have robust recycling practices, and we sort all plastics, cardboard, cans, and bottles for the arena’s recycling companies to then handle. I’m working to convert everything we do as a company to environmentally friendly – such as cleaning products – and a focus on waste diversion. That is the impetus behind the new dumpster company – Believe 313 Dumpsters. Q: Tell us about Believe 313 Dumpsters. A: Living and working in the city, and through the cleaning business, I’ve realized that between residents and businesses we have a lot of dumpster usage in the city. And most of the contents of those dumpsters is ending up in landfills. The goal behind Believe 313 Dumpsters is to recycle and divert as much of the contents of the dumpsters as possible. Q: What does the future look like for the Believe 313 companies? A: Motivating Detroiters in a way that moves people and the city forward in a sustainable way. Whether that’s from a financial and economic standpoint, a social justice standpoint, or an environmental standpoint, for me it’s about creating opportunities for people to thrive. Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Tracy Reese Returns to Detroit to Train Local Craftsmen and Produce For a Global Sustainable Footprint
SBN Detroit spoke with Tracy Reese, an American fashion designer who has been featured in fashion publications that include Vogue, Elle, Glamour, InStyle, and O, The Oprah Magazine; and whose creations have been worn by Michelle Obama, Sarah Jessica Parker, and Taylor Swift. In 2018, after 30 years in the industry, Reese moved back to her hometown of Detroit and in 2019 launched Hope for Flowers by Tracy Reese. The collection is designed and produced following three guiding principles of sustainability: the health of people, the planet, and equity in profit. Reese serves on the board of directors of the Council of Fashion Designers of America (CFDA), where she has been a member since 1990. Reese also serves on the board of trustees of Nest Artisan Guild and the advisory council of the College for Creative Studies Fashion Accessories Design Program. She is also part of Turnaround Arts, a Kennedy Center program that transforms schools through the strategic use of arts. She recently served as board president of ISAIC, the Industrial Sewing and Innovation Center. She is working to build an artisan studio in Detroit creating economic opportunities for women in underserved communities. Q: Please share how Hope for Flowers and the sustainability aspect came about.A: In 2017, I had three labels and had been working in the industry for more than 30 years with my own brand, functioning as a typical manufacturing wholesaler. All of my production was overseas, and I sourced fabrics from all over the world. I started learning more about sustainability, and around that time, the CFDA + Lexus Fashion* Initiative that focuses on sustainability launched. I missed the deadline to apply in 2017 and was determined to apply the following year, so I did, and I was selected. It was an eye-opener. It was nine months of learning about everything from textiles to carbon footprint to human rights issues within the supply chain to waste in pattern making and more. At the end of the program, we were required to present a blueprint to be judged, and then to follow through with the blueprint. During this time, I started feeling a pull back toward Detroit and bought a house. I was trying to determine how I could be back in the city more. As I created this blueprint, I realized that Detroit was the perfect place to launch a brand. I started changing my perspective on how I was working. Running parallel to this was an impending departure of ways with my partners. There were things we didn’t see eye to eye on that were nonnegotiables for me. They wanted to go for volume, and I wanted to do something smaller and more meaningful and work on giving back to the community. So, I took the blueprint and headed to Detroit. Part of my blueprint included localized production, so training Detroiters to be part of this industry in a meaningful way was a natural next step. I set up a business model with a social and sustainability-focused mission. I worked with Shayla Johnson from Scarlet Crane Creations and interns from Cass Tech, my alma mater. We manufactured in Flint. This set the groundwork for Hope for Flowers. Q: Do you have a set of short-term and longer-term goals you are working toward as you grow Hope for Flowers? A: My short-term goal was and is to address the low-hanging fruit – textiles. Every product we work with falls into the mild zone. We are using bast fibers like linen – a crop that doesn’t require lots of water and doesn’t deplete the earth of nutrients. We also use organic cotton and responsibly forested wood byproduct fibers like Tencel and are experimenting with recycled wool and other fabrics. The idea is to create garments that stand the test of time yet biodegrade over the long haul. We look at biodegradable materials for buttons like natural shells or wood and try to use natural things found on the planet versus man-made We also try to design clothes that are flexible, meaning two different sizes can wear the same garment. This reduces overproduction My long-term goal is to produce in Detroit. To that end, we are training and working with local craftspeople and sewers to develop them to a stage of mastery that’s competitive with what we can import. We are launching an apprenticeship program, and our goal is to start running small-batch production in-house. Q: What impact do you think Hope for Flowers and the vendors and partners you work with are having? A: Each one of us is proving it’s possible, and I think that makes an impression on anyone considering taking steps toward sustainability. When those in doubt see a successful business model that’s working and financially viable, that’s impactful. The more people who choose to work this way, the easier and less expensive it becomes, and we can speak collectively. We need everybody to get on board, so it’s about setting aside the competitive mindset and working as a unified industry. Q: What drives your passion when it comes to the brand and its deep commitment to sustainability? A: I don’t see that it’s a choice really – it’s a necessity. We need to work in a way that’s less harmful to the planet and people. It’s also about holding ourselves to a higher standard, accepting the challenge and being energized by it. The idea of trying to solve this is exciting and I want to be up for the challenge, continue to learn, and continue to grow. Q: From your perspective – what is the role of businesses in Detroit in terms of sustainability? A: Each business has its own role to play. Getting started doesn’t have to be complicated. There are simple internal things that – when built into the company philosophy – begin to embed new habits and practices in the employees. We started composting a few months ago, and we are all working on developing new habits. Understanding
Wildlife Habitat Council Hosts its First Conference in Detroit 2022
On June 14 and 15, 2022 business leaders from all over the world convened at the Westin Book Cadillac to celebrate each other’s successes in conservation and biodiversity. Hosted by the Wildlife Habitat Council, this 33rd annual conference took place in Detroit for the first time. Says WHC President Margaret O’Gorman, “We chose Detroit because we work with many businesses in and around the city that are not only innovative from a business sense, but from a corporate social responsibility standpoint. These companies engage in a meaningful way with conservation and are forward-thinking when it comes to biodiversity. We celebrate that.” What is the Wildlife Habitat Council? The WHC’s mission is to promote and certify habitat conservation and management on corporate lands through partnerships and education through customized comprehensive services that help companies align conservation efforts with their business needs. It works with private-sector businesses of all sizes and landscapes of all types… from buildings like the Renaissance Center to the Marathon Refinery to a quarry or copper mine. Its goal is to integrate nature into business operations to benefit community engagement and biodiversity. When we are asked how businesses can get started, our answer is simply ‘do something.’ Our philosophy is that every act of conservation matters,” O’Gorman said. “We don’t need large tracts of land to make a positive impact. What we need is for companies to simply act for nature. That’s where the difference starts. Says Neil Hawkins, president of the Erb Family Foundation, former chief sustainability officer of Dow, and friend of the WHC, “This organization does a fantastic job of coaching companies both big and small and also assisting in doing the work.” About the WHC Conservation Conference This ‘comeback’ event – having been on a pandemic hiatus the last two years – was designed to bring companies together to celebrate accomplishments in conservation, share ideas, and shape strategies that can make a positive difference for biodiversity and business around the world. Says O’Gorman, “There were two main goals of this event. The first was to simply highlight that there is a biodiversity crisis and that the private sector has a role to play in addressing it. The second was to provide recognition for corporate employees who are implementing high-quality projects on their land.” As such, General Motors received the 2022 WHC Corporation Conservation Leadership Award, which recognizes one company’s overall excellence in conservation and signifies its exemplary commitment to biodiversity, conservation education, and alignment with global conservation objectives. This year’s Employee Engagement Award was also given to General Motors. This award recognizes the exceptional contributions of a company’s employees to their habitat and conservation education activities. Several other prestigious awards were presented. You can see the full list here. A unique addition to this year’s conference was the Makers’ Pavilion, sponsored by the Erb Family Foundation and Sustainable Business Network Detroit, in which ten Detroit-area socially and environmentally focused artisans displayed and sold their work. “This points to WHC’s focus on not only conservation projects, but social sustainability, inclusion, and equity,” said Hawkins. What it Represents for Detroit Many Detroit businesses are active with and involved in conservancy projects with the WHC. Detroit and its neighboring regions are home to 32% of WHC members. The event – typically on the East Coast – being held in Detroit this year was significant. I see this as such a great opportunity for Detroit. Hosting the WHC and companies across the globe in acknowledgment of the smart and hard conservation work being done toward biodiversity opens doors and eyes for other businesses in our area to follow suit, Hawkins shared. “Detroit city land has a long history of being taken over for industrial development and residential housing and conversely, decimating nature. Whatever we can bring back through corporate intervention is important.” WHC Work in Detroit Detroit, like most major U.S. cities, faces modern problems such as poor air and water quality, unemployment, and degraded environmental conditions resulting from rapid urbanization. Detroit companies, dedicated community groups, and the WHC are working together to combat these issues and find solutions. The local work highlighted at the conference richly illustrates this. Lionel Bradford, president of Greening Detroit, highlighted its Meyers Nursery Stormwater Retention Pond, installed at Rouge Park and designed to catch 11 acres of runoff from the site, plus hold back water equivalent to two back-to-back 100-year storms. Another substantial project featured was the Stellantis Community Environmental Engagement Program. With its $1.6 billion construction of the Mack Assembly Plant just east of the city, Stellantis committed to a multi-layer environmental program with assistance and certification from the WHC to improve air quality, reduce stormwater, support wildlife, provide educational opportunities and collaborate with community organizations. As part of this program, over 1,000 trees were planted as a green buffer; 100 rain barrels were provided to residents to save water and reduce water runoff; curriculum and programming through the WHC were delivered to local schools, and significant environmental installations were developed at nearby Chandler Park. A collaborative program between Friends of the River Rouge and The Sierra Club called the Rain Gardens to the Rescue Program was presented, whereby 80 rain gardens were installed in homes to reduce stormwater runoff. This organically led to residents becoming much more involved – to the extent of some purchasing nearby lots to create additional rain gardens and community gathering spots. Said O’Gorman, “The number of corporations intersecting with biodiversity shows that the spirit of conservation is alive and well in 2022. We celebrate the work being done because when nature is healthy and our ecosystem is restored, everything flows from there.” Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
Gulay Serhatkulu, Setting the Right Priorities for a Climate Neutral and Circular Future
SBN Detroit interviews Dr. Gulay Serhatkulu, BASF Senior Vice President of Performance Materials North America. This business encompasses the entire materials know-how of BASF regarding innovative, customized plastics under one roof and is globally active in four major industry sectors – transportation, construction, industrial applications, and consumer goods. Serhatkulu joined BASF in 2006 as a technical service representative. She has held a variety of roles with increasing responsibility within BASF including product management, marketing, sales, strategy, and most recently procurement. Before BASF, she earned two postdoctoral appointments at the University of Nottingham, UK, and Wayne State University, respectively. Serhatkulu shares with us some insights on the projects, goals, and challenges she leads every day. Q: What is involved in your role in leading the sustainability team at BASF in the North American region? A: Plastics do have proven benefits during their use phase – for example, preservation of food loss, lightweight construction of vehicles, and building insulation. Plastic waste, however, and in particular plastic waste in the context of marine littering, is perceived as a major global challenge. There is also increasing regulatory pressure regarding recycling quota and recyclability on the one hand and strong commitments of our customers towards increasing the share of recycled material in their offerings on the other hand. Solving these challenges requires innovation and joint efforts globally across the value chain. A team across BASF has taken up this challenge and developed the ChemCycling™ project which focuses specifically on transforming plastic waste into a raw material using pyrolysis, a thermochemical process. The raw material can be fed into the existing assets to create new chemical products with excellent product performance based on recycled plastic waste. Besides ChemCycling, BASF offers other mass-balanced chemical or advanced recycling solutions based on different post-consumer and post-industrial feedstocks. In this case, the recycled feedstock is not a pyrolysis oil and is introduced as an intermediate during the manufacturing process and not at the very beginning as is the case of pyrolysis oil. Chemical recycling represents an exciting business opportunity for us and our customers, as the resulting products are of equal quality to the products derived from fossil feedstock. Nevertheless, many technical, economic, and regulatory questions have to be answered but we are eager to work on it and optimistic that we can cope with all challenges. Q: What are you currently working on in terms of sustainability for BASF? A: One great example is the BASF and Steelcase collaboration on the brand’s new Flex Perch Stool, which has sustainability and circularity at the forefront of its design. This is the first furniture product for Steelcase that uses plastics derived from a chemical or advanced recycling process. The stool is made with BASF’s Ultramid® B3EG6 Ccycled™, an injection moldable polyamide (nylon) 6 that utilizes material from a waste stream generated during electronics production and is a one-for-one replacement for the 100% fossil-derived plastics. I cannot stress enough the importance of value chain partnership to achieve these types of major breakthroughs. From a lightweight perspective, I can also point to a collaboration with Toyota on their Sienna. We also work with footwear companies to provide plastic and foam materials that have sustainability benefits such as being bio-based and recyclable. The new Sienna generation first-of-its-kind third-row free-standing seat backs. We also have efforts for Climate protection. Climate change and global warming are among the most pressing challenges of our time. On our journey toward climate neutrality, we have set ourselves ambitious goals and are striving worldwide to achieve net-zero CO2 emissions by 2050. At the heart of the long-term transition toward net-zero CO2 emissions by 2050 is the use of new technologies, which will replace fossil fuels such as natural gas with electricity from renewable sources. Additionally, we engage our suppliers in our ambition to serve our customers with the lowest carbon footprint materials possible. In our Supplier CO2 Management Program, we first aim to achieve transparency on the product-related CO2 emissions of our purchased raw materials. In this phase, we offer our support and share our knowledge on Product Carbon Footprint valuation methodologies and tools with our suppliers. Q: What are your longer-term goals there? A: We want to live up to our purpose: We create chemistry for a sustainable future. We are only successful if our products, solutions, and technologies add value to society. Therefore, we want to make a positive impact on society and safeguard our planet. To drive the sustainability transformation, we focus on three key topics: Climate change, Circular Economy, and a safe and sustainable portfolio. We are striving worldwide to achieve net-zero CO2 emissions by 2050. Q: What are the challenges you face? A: I see two main challenges. First, new technologies like electrically heated crackers, electric steam generation, carbon capture, and storage technologies need to be developed to achieve our targets. Some of these will take time to develop and they will first need to be piloted before being scaled up. Second, we need a supportive and enabling regulatory framework if the transformation is to succeed. Q: From your perspective, what role does BASF as a business play in terms of sustainability for the surrounding community? A: We measure the overall impact of economic, environmental, and social aspects of our business activities with our Value to Society methodology. We take sustainable use of water and preserving biodiversity seriously. Our global target is to implement sustainable water management at all production sites in water stress areas and our connected sites by 2030. We periodically investigate our production sites around the world to revise which are located near internationally protected areas. We connect with external stakeholders and networks to discuss our sustainability strategy. One local example is Fighting Island. Owned by BASF, Fighting Island is a 1,500-acre island on the Canadian side of the Detroit River in LaSalle, Ontario. The island was historically used for storage of lime tailings, a byproduct of soda ash production, in settling beds. Since closing the settling beds in 1982, BASF’s efforts have led to native revegetation and reforestation to help prevent erosion, reduce dust, increase wildlife habitat, control runoff, and enhance
The Wright – Committed to Preserving African American Culture – and the Environment
At their best, museums champion the exchange of ideas and the enrichment of intellect. As such, the Charles H. Wright Museum of African American History approaches sustainability within the context not only of preservation but also of education. The museum is at the forefront worldwide in its effort to make the work of sustainability visible in museums so that everyone can see that they have a stake in—and can contribute to—environmental preservation. The Wrights’ sustainability efforts formally took hold in 2015 upon hiring Leslie Tom, as its Chief Sustainability Officer who relocated from San Francisco by way of Arizona. Tom’s background in Architecture andInformation Management with a focus in the future of libraries, archives and museum domains were a perfect match for being the Third Cohort for a mid-career Detroit Revitalization Fellowship through Wayne State University. Of her role at The Wright, Tom says “To have the opportunity to combine my experience in environmental history and culture with the methodologies of service design and architecture and apply them at one of the oldest African American museums in the world is a dream job.” She goes on to say, The fact that the museum has a Sustainability Officer on staff illustrates its dedication and commitment to sustainability at all levels. Few museums even have this role. Under Tom’s leadership, The Wright has become a frontrunner in sustainability within the museum field. In 2019, The Wright was one of five museums to earn The Sustainability Excellence Award from the American Alliance of Museums Environment and Climate Network. Tom values the regional sustainability network and so helped to co-chair the inaugural Detroit 2030 District’s first Venue and Museums Committee. Detroit 2030 District is a part of a national movement to create high-performance building districts by reducing the environmental impacts of building. Tom points to three main areas of focus regarding the museums’ current sustainability efforts. “First is working to expand the triple bottom line [people, planet, prosperity and programs] and do what museums do well – engage learners,” she says. She gives d.Tree Studio as an example. When dying Zelkova trees were discovered on The Wright’s campus, instead of sending them to a landfill, the museum partnered with the College for Creative Studies to create d.Tree Studio – an ongoing wood shop class to explore connections between design, African American material culture/history, and sustainability. Students use the dying trees to make everything from a decolonized chess set to a fully-functioning record player. Second, is the Climate Action Framework, which The Wright museum supports through a green think tank team of museum staff, landscape architects, urban planners, designers, and community engagement plans all addressing the social and technical aspects of lowering the carbon footprint. Third, is the museum’s green work around the African World Festival. “We’ve been doing exciting green work since 2015 that’s finally being operationalized and next year will be line items in the budget,” she says. “This will include things like bike valets, recycling and compost space, sharing information at the festival and more.” She goes on to say, It’s been so satisfying to see co-creation and adoption by my colleagues and their inclinations increase toward a green institution. No one person can do it alone, and having mother nature break down silos, we’ve got support and work to do from the top down and bottom up. Some measurable initiatives The Wright has been involved with over the past several years include: The Wright’s proactive response to the August floods of 2014and increasing rain events created a collaboration with the Michigan Science Center where the result was a November 2019 convening calledRipple of Impact. Over 200 people visited our Green Stormwater Infrastructures to taste, touch, see, smell, feel the water. The Wright effectively manages nearly 19,000 gallons of stormwater each year removing 50,000 gallons of stormwater permanently from the sewer system overall. See the Stormwater Hub for more info. The Wright is continuing this work by hosting the Green Museum Town Hall with our Learning and Engagement and Sustainability Departments. Please check our website for our Green Museum Town Hall in mid-November 2022. In 2015, the museum installed Variable Fan Drives (VFDs) so museum pumps and motors do not run 24 hours per day, 7 days per week. From this effort, The Wright reduced its utility bill by $30,000. Due to green efforts around the African World Festival, The Wright has seen a 5% waste diversion rate increase, repurposed 536 pounds of recyclable material, and diverted 387 pounds of organics from landfills. A strong commitment to sustainability among The Wright’s staff has led to a 400% uptick in recycling rates on the museum campus. Of doing this work in Detroit, Tom says, “As an outsider coming into Detroit, I can say that I haven’t found another city where so much consideration and multi-generational collaboration is happening. Between the local organizations, nonprofits, and businesses the best practices coming out of Detroit are very impressive. To be working within this environment has true potential for addressing our climate crisis collectively.” When asked what project she’s most proud of, Tom says the investment made in 2019 to laser scan the entire museum building. “We now essentially have a digital twin of the building stored in the cloud, so that when we collaborate with landscape architects and engineers to invest in energy-efficient systems and more, we can upload the specs and leverage the data on how best to take care of this institution.” What’s next for The Wright? Tom says their continued work on creating a green museum of the future. “We are convening conversations and setting new standards. It’s an exciting place to be.” In closing, The Wright’s President and CEO, Neil Barclay says, “Inaction affects us all. So join The Wright as we transform spaces, hearts, and minds to make room for a more equitable future here in Detroit.” Be sure to subscribe to our newsletter for regular updates on sustainable business practices in and around Detroit.
