The Nature Conservancy of Michigan – Working at the Intersection of Economic Development, Nature, and Sustainability

CONVERSATION WORK BY THE NATURE CONSERVANCY

The Nature Conservancy in Michigan recently released its 2022 Michigan Conservation Results Report that outlines the work it is doing to tackle conservation issues that range from climate change to biodiversity loss. With 32,000 members, a staff of 55+, 25 trustees, and many contributors, partnerships, and donators, 32,541 acres of land became protected last year, totaling 437,000 acres to date. We spoke to Associate State Director Patrick Doran about some of the key initiatives outlined in the report. Q: A recent acquisition of land in the Keweenaw Peninsula nearly doubled the peninsula’s protected lands, which provide habitat for many iconic species. How does this impact the state and Southeast Michigan? A: It’s a great question – how the work we are doing in Northern Michigan impacts the entire state and beyond – and I want to give some context around that. TNC is the world’s largest conservation organization with almost 6,000 employees around the world. When we have a project in place, we think not only about executing that project with boots on the ground but also think about how it impacts the entire system. We lift our heads and assess the impact on the region, the Great Lakes, the state, and the world. We think about how it will affect the economy, the air, the climate, people’s quality of life, and more. Securing the 30,000-plus acres in Keweenaw is amazing for us. I also want to note that there are several partners and entities involved in these efforts. TNC could never have done this alone. The opportunity to move land into conservation at this scope just does not exist in too many places in the US. The land has been under traditional timber ownership and management. We see TNC as a temporary holder – maybe three to five years – and eventually, we’d like to see the land secured by the state and local townships and municipalities and counties. We believe local ownership achieves the best conservation outcomes. So, we will ensure it’s protected, and that the forest is under a sustainability management plan, so that the conservation status improves from what it was, all the while making sure that it remains available for public use and recreation. This project truly sits at the intersection of economic development, nature, and sustainability, and there are several ways that it connects to other parts of the system. Relating this to the Southeast Michigan area, ecologically, in the spring Keweenaw is one of the most important migration areas in the Midwest. Millions of hawks, songbirds, and more move from South America, hit the Great Lakes to the Detroit corridor up to the U.P., and the majority fly up the Keweenaw Peninsula before making the daunting trip across Lake Superior. Southeast Michigan is an important stop in their migration process. So, there is this interesting species connection between the Lower Peninsula and the U.P. The connection also ties into the economy and also climate change. Those forests are places where we can store carbon through the growth and management of trees and also keep the industry intact. It’s a careful balance. Sequestering carbon will help meet climate change goals and this impacts the whole state. We have robust timber and water industries throughout the state and in Southeast Michigan, and that’s very important to our economy. Another connection this project represents is with businesses across the state. TNC is exploring the most effective ways to work with companies across the state in their quest to meet their sustainability goals. The forests can support these companies in this quest, and the companies are in turn investing in the forests. TNC also has a partnership with the Michigan Manufacturers Association. The goal is to help educate and assist small and medium-sized businesses with sustainability planning. We offer a suite of workshops for these manufacturers and companies. Two good examples are Steelcase and Consumers Energy – we began working with both companies last year. Q: According to the report, all 47,000 acres of TNC’s forest reserves in Michigan are now FSC®-C008922 certified. What does this mean? A: What FSC certification does is up the level of sustainability management and make sure all are adhering to best practices in terms of how many trees are cut, frequency of cutting, how streams and lakes are impacted, etc. This makes the whole system healthier. Again, timber is a huge part of the state’s economy, and it’s important to manage this industry in a way that is thoughtful and promotes the ability to sequester carbon. The focus is to achieve our ecological goals and at the same time keep land in the timber industry. We are also involved in working with the manufacturing industry in Southeast Michigan and across the state to ensure they are actively using more sustainably produced timber. When the supply chain demands this, it becomes a more virtuous cycle. Relating this to the construction industry, there is also a movement in place to use cross-laminated timber or mass timber, which offers more long-term carbon storage in comparison to using cement or other building materials. The DNR and Michigan State University are working on reinvesting this back into the building and construction process. Q; Regarding our parks and waterways, the report references Public Act 53 of 2022, saying that ultimately $2.3 billion of the historic state funding included in the act was designated for the improvement of Michigan’s water infrastructure, with an additional $450 million for state and local parks. What is TNC’s role in these improvements? A: TNC operates at a policy and system level to impact our parks and water across the state. Michigan sits in the middle of one of the world’s largest freshwater systems, so we have to protect that. We work to promote healthy infrastructure and programs that support investing in that. Regarding the importance of maintaining our parks and nature within urban areas, I was at a conference last year in Detroit and began asking businesses why they think investing

Gulay Serhatkulu, Setting the Right Priorities for a Climate Neutral and Circular Future

STEELCASE FLEX PERCH STOOL WITH BASF

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