The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Tuesday, March 25, 2025

Strategic CSR - Mining

The article in the url below makes the case for reviving mining in the U.S. for the key raw materials required to transition to a more sustainable energy industry:

"Although America has abundant deposits of many of the critical minerals that go into our vehicles, electronics and buildings, these materials are mostly mined abroad in poorer nations where labor is cheap (or worse, workers are enslaved) and environmental laws are more permissive, rarely enforced or easily sidestepped with bribes."

The argument is that, by outsourcing much of this extraction, we currently focus on poorer societies where the materials can be mined more cheaply, primarily because the standards to do so are so low:

"The decline of domestic mining means that Americans are outsourcing the environmental and social costs of our inexpensive consumer goods to lower-income nations. More than 70 percent of the world's cobalt, sometimes called the blood diamond of electric vehicle batteries, comes from the Democratic Republic of Congo, where child labor and sexual violence are rampant in mines. About half of the world's nickel, another key ingredient in electric vehicle batteries, comes from mines in Indonesia, some of which have wiped out almost 200,000 acres of rainforest amid allegations of operating illegally on Indigenous land."

So, mining domestically would introduce higher standards, by definition; it is also required so that increased supply can match growing demand:

"A United Nations study found that meeting international climate goals by 2030 could require building as many as 80 copper mines, 70 lithium mines and 70 nickel mines to supply the materials for electric vehicles, solar panels and a host of other low-carbon technologies."

And, the article advocates for a consumer-led component to the economic equation, with individual customers willing to pay the (relatively) small premium that domestic production would generate:

"Many of us are already paying more for responsibly sourced goods, such as chocolate and coffee. We should demand the same for our smartphones and batteries. … Although mining will never be zero-impact, it has the potential to be fair and responsible."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


This Dirty Industry Is Better Off Operating in America
By Stephen Lezak
July 28, 2024
The New York Times
Late Edition – Final
SR8
 

Thursday, March 20, 2025

Strategic CSR - Time

This short video presents a dramatic, humbling, and emotional analysis of human perceptions of time (see also Strategic CSR – The Long Now). It places our lives in the context of the history of the universe (as we know it) in a way that provides insight and perspective:


The takeaway is grounding in that it challenges us to make the most of the brief moment we have been given, together with the implicit demand that we leave things better than we found them.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Wednesday, March 19, 2025

Strategic CSR - Mining

The article in the url below provides an interesting perspective on the extraction industries – especially comparing the raw materials of the past with those of the present and future:

"The mining industry is currently one of the most significant contributors to planet-warming emissions – but it's on track to become one of the most important sectors for a net-zero future."

A feature of the mining of the future is that overall demand will increase (e.g., "Annual demand for energy-transition metals will grow fivefold by mid-century from 2023 levels"), but the amount of materials extracted from the ground is predicted to decrease:

"Specifically, we'll need almost no coal – which still contributes significant revenues to mining companies. In fact, all the refined metals needed to reach net zero by 2050 will add up to less than the amount of coal mined in 2023 alone, according to think tank Energy Transitions Commission."

This graphic accompanying the article presents this contrast in stark comparison:
 

Part of the reason for this phenomenon is that the recyclable rates of the non-coal raw materials is much higher. There are other qualifiers:

"It's worth noting these figures do not include the full weight of extracted ore, which often contains a small concentration of metal. The figures also don't show the weight of extracted oil and gas. This is important because, all combined, fossil fuel taken out of the ground today still outweighs mined ores."

I have not often seen the extraction industry discussed in terms of a positive contribution to a sustainable future.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Net Zero Needs More Metals, But Less Extraction From The Earth
By Akshat Rathi
September 10, 2024
Bloomberg
 

Thursday, March 13, 2025

Strategic CSR - Whales

The video in the url below is a short documentary about "whale falls." This term describes the phenomenon of whale carcasses that sink to the bottom of the ocean, after the whale dies, and provide nutrition that supports ecosystems of animals that have evolved to survive in otherwise nutrient-poor parts of the deep ocean:


The video reminded me that humans are the only animal on the planet that produces any 'waste.' Every other animal only produces things that are of value to some other organism – we are the interruption of an otherwise perfectly sustainable ecosystem.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Tuesday, March 11, 2025

Strategic CSR - ESG

At a time when ESG is being attacked on all sides (the acronym, rightly so; the underlying sentiment, incorrectly), Barron's annual ranking of the "Top 100 Sustainable Companies" appeared in the article in the url below. You might be surprised at the No.1 company on the list (for the second year running):

"Clorox holds the crown for the No. 1 spot on the list for the third consecutive year. The consumer staples company, which owns household brands such as Burt's Bees, Glad, and Hidden Valley Ranch, scores high based on environmental factors, product safety and quality, and governance. While last year the company stood out for achieving gender pay equity, this year it gets kudos for linking executive compensation to how well they meet their sustainability goals."

In fact, I was quite surprised at how many manufacturing companies made the Top 10 in the table accompanying the article: 


Overall, the story was surprisingly positive:

"… while ESG critics have been cranking up the volume, the better barometer of the sustainability movement's strength comes down to a simple question: How committed are large companies to their sustainability goals? For now, most aren't backing off them, and many are making significant advancements."

As with such lists, the methodology was biased and opaque, but at least the ultimate DV seems appropriate – "operations and risk":

"The 100 companies on our list this year span market capitalizations ranging from American States Water's $2.8 billion to Nvidia's $3.4 trillion—companies that were ranked No. 73 and No. 74, respectively, on their sustainability. To evaluate all the companies, Calvert considered practices under five themes—the planet, workplace, customers, community, and shareholders—and assigned each company weightings for the categories based on what is most relevant to their business operations and risks."

It was good to see a positive narrative around a topic that has been nothing but doom-and-gloom for several months:

"The symbiosis between sustainability and efficiency at the top 100 companies often translates well for investors. In the first six years of Barron's ranking, the group outpaced the S&P 500. The 100 badly trailed the index's 25% and 26% returns including dividends in 2024 and 2023, respectively. But in those years, seven technology stocks fueled most of the S&P 500's return because the index is weighted by market capitalization."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Top 100 Sustainable Companies: Coping with Anti-ESG Sentiment
By Karen Hube
February 24, 2025
Barron's
Late Edition – Final
18, 20, 22
 

Thursday, March 6, 2025

Strategic CSR - Greenhushing

In contrast to the last newsletter that focused on greenwashing, the article in the url below notes that the phenomenon of greenhushing continues to spread:

"Greenhushing is the inverse of greenwashing: Companies are devoted to combating climate change yet reluctant to publicize their climate efforts. This phenomenon is emerging on both sides of the Atlantic Ocean, driven by different factors."

Looking on the bright side, this does not necessarily mean corporations are pulling back from their resource and risk-related commitments, but just that they are not advertising what they are doing:

"In response to the changing political landscape, many executives in corporate America are dropping the mention of 'climate change' in meetings. Instead, they start to highlight non-climate benefits of their work, such as job creation and economic growth."

The contrast in patterns of behavior with Europe is interesting. There, corporations are also minimizing their public statements on sustainability related issues, but for a very different reason:

"In Europe, where climate change hasn't completely fallen off governments' agendas, companies are also keeping their climate actions away from public sight due to the risk of being seen as greenwashing. Overstating green claims cause reputational damage that is hard to repair."

As a result:

"In 2024, 63 out of the 100 largest publicly listed firms in the UK under-promoted their work on environmental protection, according to an analysis by market research firm Connected Impact. … When it came to US companies, the desire for staying unnoticed was even greater — as many as 67 major public and private firms resorted to greenhushing."

I have long understood that low-cost strategy companies like Walmart do not advertise to customers their progressive work on sustainability in their supply chain, but that is due to the danger of misperception around the price being charged (people believe that 'green' products are more expensive; see Strategic CSR – Greenhushing). In this case, it is a different stakeholder (the government) that seems to be driving greenhushing, with uncertain implications:

"Some worry the silence risks damaging consumers' trust and weakening peer pressure needed for motivating more companies to go green. While others say it is a wise business decision in difficult times."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


The sound of greenhushing
By Coco Liu
March 4, 2025
Bloomberg
 

Monday, March 3, 2025

Strategic CSR - Greenwash

The articles in the two urls below offer contrasting approaches by different countries to the issue of preventing greenwash in finance. In the first article, the Swiss government (rather optimistically) is happy to trust the firms in its finance industry to self-regulate:

"Switzerland's finance sector can regulate its own members when it comes to combating the miss-selling of sustainability-themed investment products, the government said. The Federal Council had given banks, insurers and other finance firms until August to come up with an effective self-regulation framework on greenwashing."

In contrast, and employing a modicum of commonsense, the Australian government is proposing to introduce a new labeling system that will add substance to the ambiguous meaning of sustainable:

"The Australian government … will establish labels and disclosures for investment products marketed as 'sustainable,' including funds run by the superannuation industry, after a public consultation in early 2025, according to a sustainable finance framework released on Wednesday. The plan also calls for large businesses and financial firms to incorporate climate disclosures based on the Australian Accounting Standards Board's guidelines, which are due to be finalized in August."

The key to the difference is in the article headlines – while the Swiss will allow finance firms to "police themselves," the Australian government is planning to "crack down with new regulations." I wonder which approach will be the most effective in reducing the amount of misleading information and behavior that pervades all things sustainable?

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Swiss Say Finance Firms Can Police Greenwashing Themselves
By Bastian Benrath
June 19, 2024
Bloomberg

Australia Cracks Down on ESG Claims with New Regulations
By Ishika Mookerjee
June 19, 2024
Bloomberg
 

Thursday, February 27, 2025

Strategic CSR - L.G.B.T.Q.

The article in the url below, buried deep into last week's Sunday NYT, is heartening:

"Nearly one in 10 adults in the United States identifies as L.G.B.T.Q., according to a large analysis from Gallup released Thursday — almost triple the share since Gallup began counting in 2012, and up by two-thirds since 2020."

The graph accompanying the article demonstrates the dramatic shift in reporting patterns, over a relatively short period of time:
 

It seems that the increase is accounted for mostly by "bisexual women" and younger generations:

"Nearly one-quarter of adults in Generation Z, defined by Gallup as those 18 to 27, identify as L.G.B.T.Q., according to the analysis, which included 14,000 adults across all of Gallup's telephone surveys last year. More than half of these L.G.B.T.Q. young adults identify as bisexual. Among all respondents, 1.3 percent identified as transgender, up from 0.6 percent in 2020. That is higher than other large surveys have found in recent years."

Some additional detail:
 

Presuming the percentage of the population who are L.G.B.T.Q. remains constant, the higher reporting percentage must be due to a sense of security and confidence in people feeling they can be open about who they are, which is a welcome sign of progress in our society.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Survey Finds Rapid Increase in U.S. Adults Identifying as L.G.B.T.Q.
By Claire Cain Miller and Francesca Paris
February 23, 2025
The New York Times
Late Edition – Final
15
 

Monday, February 24, 2025

Strategic CSR - Coal

A quick update, in the article in the url below, on where the world is in terms of its coal consumption – spoiler alert, we are not in good shape:

"We're burning more coal than ever. … Coal is both the dirtiest fossil fuel and the biggest source of electricity, accounting for 35% of the world's generation [in 2023]."

Unfortunately (or fortunately, depending on how you look at it), this sorry state represents progress:

"From 2006 through 2014, [worldwide coal consumption] was 40%-plus."

And, it does not look like we can keep the positive trajectory going:

"But even as scientists sound the alarm on dangerous climate tipping points, coal consumption is still growing. It's expected to hit a record in 2024, and is on track to be higher in 2050 than it was in 2000."

As an indication of how far from where we need to be we currently are:

"To reach net zero by 2050, global coal use would need to fall by more than 90%, and what's left would need to be handled by plants capable of capturing and storing emissions."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Why We're Burning More Climate-Warning Coal Than Ever
By Will Wade
August 12, 2024
Bloomberg Law
 

Thursday, February 20, 2025

Strategic CSR - Larry Fink

This graphic produced by Bloomberg from the article in the url below is both interesting and frustrating:


It is interesting and frustrating for the same reason – because it reveals a superficial commitment to something that needs to be sustained and genuine. Fink had built a reputation for himself as someone who is committed to the sustainability cause. The chart reveals a superficiality to that commitment. I am all in favor of revealing the lack of thought that is invested in the latest term or acronym that gets the mainstream CSR conversation excited, but this very much suggests Fink is a victim of that superficiality, rather than having thought through what he was saying, and/or his and his company's ability to implement:

"[Larry Finnk's] 2020 letter mentions terms like climate, ESG and sustainability 46 times. But executives changed their tune after Texas and other US states launched attacks and legal action on the investment management company. 'Larry Fink used to talk quite a bit (in fairly short letters) about climate, sustainability, and ESG. … Now he does not.'"

Either way, it is another step backwards, when we need to be moving forward.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Wild Cards for the Green Transition
By Aaron Clark
February 3, 2025
Bloomberg
 

Tuesday, February 18, 2025

Strategic CSR - Personhood

Following its groundbreaking law that granted legal rights to a river (see Strategic CSR – Personhood), New Zealand has taken another step forward in its recognition of the importance of the natural environment to its culture and heritage:

"A settlement under which a New Zealand mountain has been granted the same legal right as a person has become law after years of negotiations."

Specifically:

"It means Taranaki Maunga [Mt Taranaki] will effectively own itself, with representatives of the local tribes, iwi, and government working together to manage it. The agreement aims to compensate Māori from the Taranaki region for injustices done to them during colonisation – including widespread land confiscation."

While I appreciate the symbolic value of this decision, in terms of respecting the Maori culture, tradition, and perspective on the natural environment ("natural features, including mountains, are ancestors and living beings"), it is challenging to see the practical implications. What does it mean for a mountain to "own itself"? The value of treating corporations as legal persons is that they can own assets and be sued in a court of law. This underpins the law of contracts and property rights, which are fundamental to our economic system. Firms also form the apex of the stakeholder structure, so create value for others, rather than needing value to be created for them:

"[Government Minister] Paul Goldsmith acknowledged that … it had been agreed that access to the mountain would not change and that 'all New Zealanders will be able to continue to visit and enjoy this most magnificent place for generations to come.'"

In this case, the name of the mountain will be changed, which his meaning, but it is difficult to know how this fits into the strategic CSR perspective, given that the mountain cannot communicate discernable interests that can be met. Rather, anyone seeking to interact with the mountain will need to deal with the appointed human 'representatives' of the mountain (who no doubt have their own values and interests):

"It means Taranaki Maunga [Mt Taranaki] will effectively own itself, with representatives of the local tribes, iwi, and government working together to manage it."

Given that the mountain cannot communicate its interests to those representatives (as far as we know), we will have to rely on the genuine intent with which they interpret what is best for the mountain:

"The mountain is not the first of New Zealand's natural feature's to be granted legal personhood. In 2014, the Urewera native forest became the first to gain such status, followed by the Whanganui River in 2017."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


New Zealand mountain gets same legal rights as a person
By Kathryn Armstrong
January 30, 2025
BBC News
 

Thursday, February 13, 2025

Strategic CSR - Cotton + water

I knew that the production of cotton took vast amounts of water, but only a vague sense of how much. The article in the url below quantifies this amount in a very relatable way:

"For all the water you'll ever use to wash your cotton T-shirt over its entire lifetime, it will have taken 50 times as much water to grow the cotton that went into it."

In addition to the water used to grow cotton, large amounts of insecticides and pesticides are used; there are also challenges related to the harvesting and processing of this crop:

"Cotton uses about 2.3% of global arable land and accounts for 16% for all insecticide sales. And the fashion industry has been forced to reckon with allegations of forced labor and poor working conditions in certain cotton-harvesting regions."

The article proceeds to detail a "Boston-based startup Galy" that is developing a more sustainable alternative, which (if it can be commercialized and scaled – always huge barriers) addresses many of these challenging issues, for which the fashion/apparel industry is only now beginning to be held accountable (see Strategic CSR – Fast fashion), or perhaps not (see Strategic CSR – Shein + Boohoo):

"Galy takes cells from a cotton plant, adds them to a large vat and feeds them sugar. After they have sufficiently multiplied, Galy technicians use their genetic understanding of the plant — which has been developed over decades of research — to activate certain genes and deactivate others. The result is the cell transforms and elongates into a cotton fiber. So far, Galy has only been able to make a few kilograms of vat-grown cotton. If it can make more at scale, the company has big dreams to also make lab-grown cocoa and coffee powders."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Fast Fashion Bets on Greener Lab-Grown Cotton
By Akshat Rathi
September 3, 2024
Bloomberg
 

Tuesday, February 11, 2025

Strategic CSR - Coal

Here is a tale of two trajectories for coal that are heading in opposite directions (at least, in the short term). First, the article in the first url below reports that Duke Energy has announced its intention to change its plans for its largest coal-fired power plant. The company had originally planned to close all its power plants that use "the dirty fuel" by 2035, but that has now changed:

"The utility said it plans to operate its massive Gibson Station in Indiana through 2038, according to a presentation about its resource plan for that state posted on its website Thursday. The company previously said it would shutter the plant by 2035, in line with its broader plan to be entirely coal-free by that year."

What is interesting is that the article (pre-DeepSeek) blames A.I. for unpredicted electricity consumption, which is causing utilities to alter their plans of how they will be able to meet that growing demand:

"Some US utilities are struggling to meet ambitious climate goals set before electricity forecasts began spiking amid tech giants' move to build new data centers for artificial intelligence."

Similarly:

"FirstEnergy Corp. announced earlier this year it was abandoning its 2030 target for slashing greenhouse gas emissions because it couldn't replace some coal plants in time."

In contrast, the article in the second url below reports that the UK closed its last coal-fired power plant, in early October last year, in what is being framed as a risky experiment to meet its previously announced GHG emissions goal:

"By closing the 2,000 megawatt (MW) coal plant in Nottinghamshire, Britain has become the first G7 country to end coal-fired power production and make significant progress against energy transition and pollution reduction targets."

The key is that the UK is not self-sufficient in terms of LNG, which means it will need to rely on imports, paying the market rate that is heavily influenced by geopolitics:

"UK gas consumption has exceeded domestic gas production for the past 20 years, according to the 2024 Energy Institute Statistical Review of World Energy. … Between 2018 and 2023, UK LNG imports jumped by 171% from 7.2 billion cubic meters (BCM) to 19.4 BCM, according to the Energy Institute."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


How is the energy transition going?
By Brian Kahn
October 4, 2024
Bloomberg Green

UK's last coal plant shutdown bodes well for US LNG export
By Gavin Maguire
October 1, 2024
Reuters
 

Thursday, February 6, 2025

Strategic CSR - Mirrors

Here is a heartening quote from the EU that was in the Green Daily newsletter by Bloomberg, last summer:

"32.5%: How much pollution has dropped in the EU from 1990 to 2022, even as the economy grew by 67%."

It counters the unhelpful narrative in the article in the url below, that economic growth and climate damage are positively correlated. In reality, what is important is the collective set of values and priorities in our societies. That is what will determine the behavior of corporations – if we want sustainability, then companies will deliver it for us; if we don't, then we cannot blame companies for more damage. We love to anthropomorphize organizations, but it is only humans who are capable of making complex decisions, weighing up multiple variables (including future consequences) – companies are mirrors that reflect those decisions. We get the companies we deserve; just like we get the politicians we deserve – they are functions of the decisions that we make.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Shrink the Economy, Save the World?
By Jennifer Szalai
June 11, 2024
The New York Times
Late Edition – Final
C1, C4
 

Tuesday, February 4, 2025

Strategic CSR - Aviation

I have been looking into the aviation industry, recently (see here). Thinking about how sustainability works in this space has been part of that inquiry. Along these lines, I found the article in the url below, which suggests we are nowhere near developing a sustainable aviation fuel (SAF), and that any headline you might have seen suggesting the opposite is misleading, at best:

"IPS report says replacement fuels well off track to replace kerosene within timeframe needed to avert climate disaster."

Even worse:

"Hopes that replacement fuels for airplanes will slash carbon pollution are misguided and support for these alternatives could even worsen the climate crisis, a new report has warned."

Specifically:

"There is currently 'no realistic or scalable alternative' to standard kerosene-based jet fuels, and touted 'sustainable aviation fuels' are well off track to replace them in a timeframe needed to avert dangerous climate change, despite public subsidies, the report by the Institute for Policy Studies, a progressive thinktank, found."

As with many good ideas in the sustainability space, the idea in theory is possible; in practice, scalability is the challenge:

"Chuck Collins, co-author of the report, said: 'To bring these fuels to the scale needed would require massive subsidies, the trade-offs would be unacceptable and would take resources aware from more urgent decarbonization priorities.'"

What are some of those potential tradeoffs?

"Burning sustainable aviation fuels still emits some carbon dioxide, while the land use changes needed to produce the fuels can also lead to increased pollution. Ethanol biofuel, made from corn, is used in these fuels, and meeting the Biden administration's production goal, the report found, would require 114m acres of corn in the US, about a 20% increase in current land area given over to the crop. In the UK, meanwhile, 50% of all agricultural land will have to be given up to sustain current flight passenger levels if jet fuel was entirely replaced."

The conclusion, due to the unique challenges of getting heavy airplanes off the ground:

"Phil Ansell, director of the Center for Sustainable Aviation at the University of Illinois, said the aviation industry had been faced with a much steeper challenge than other sectors to decarbonize. 'There's an under appreciation of how big the energy problem is for aviation. We are still many years away from zero pollution flights,' he said. … 'We are now trying to find solutions, but we are working at this problem and realizing it's a lot harder than we thought. We are late to the game. We are in the dark ages in terms of sustainability, compared to other sectors.'"

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


'Magical thinking': hopes for sustainable jet fuel not realistic, report finds
By Oliver Milman
May 14, 2024
The Guardian
 

Thursday, January 30, 2025

Strategic CSR - Oil vs. plastic

The article in the url below is one of the best arguments I have heard as to how we will, realistically, transition away from fossil fuels. Since no one appears willing to impose a meaningful carbon tax that would encourage such a move, we will need to rely on market-based arguments to understand whether and how quickly such a shift will take place. The article in the url below hints at what that argument might look like.

First, it makes the case as to why demand for oil will inevitably drop:

"As people switch to electric cars, or at least buy more fuel-efficient versions of traditional vehicles, energy companies will have too much oil on their hands. Transport currently accounts for over half of global oil demand. Ciarán Healy, an oil market analyst at the International Energy Agency, points out that even without a further uptick in EV sales, efficiency improvements in internal combustion engine cars mean the same amount of driving will be done with less gas in the future. The IEA thinks the world is on track to have eight million barrels a day of excess oil capacity by 2030."

Second, it outlines the oil industry's best response to prop-up oil consumption – and it centers on plastics:

"London-listed BP thinks growth in petrochemicals will offset fuel declines for another decade. Crude oil and natural gas are turned into petrochemical feedstocks such as naphtha or natural gas liquids in a gas-processing plant or at an oil refinery. They are then 'cracked' into the building blocks of common plastics. … Today, 15.4% of global oil demand is driven by petrochemicals, according to data from Wood Mackenzie. The share is expected to rise to 19.1% by 2035 as emerging markets become wealthier and swelling middle classes spend more on synthetic clothing and do their grocery shopping at big supermarket chains, where food is more likely to be wrapped in plastic to prolong its shelf life. Advanced economies like the U.S. use up to 20 times more plastic than developing nations on a per capita basis, according to the IEA. Big Oil's bet is that shoppers in emerging markets will close at least part of that gap."

Third, it questions whether this will be the solution the oil companies are hoping for:

"Energy companies are pouring billions of dollars into petrochemical facilities, notably in China where ethylene capacity has almost doubled since 2019. Capacity is also rising in the U.S. and Middle East. Saudi Arabia wants to invest $600 billion into petrochemicals by the end of the decade to secure nonfuel uses of its crude oil. But the global petrochemical industry is already saturated and capacity is expected to outstrip demand until at least 2030. This points to weak profit margins and less-than-ideal utilization rates at petrochemical facilities."

Equally, it suggests why it is not a good response, strategically (from the oil companies' perspective):

"Pumping money into petrochemicals as governments are trying to solve the problem of plastic waste feels risky. [In December], countries that rely on oil exports for a large share of government revenue, including Saudi Arabia and Russia, torpedoed a global treaty that proposed curbs on plastic production. But tighter regulations are in the works anyway. More than 100 countries have introduced restrictions on plastic, including a ban on single-use plastic in the European Union."

The conclusion:

"The oil industry is resigned to slowly losing its grip on road transport. Turning to an oversupplied and wasteful petrochemicals sector for shelter is a risky strategy."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Big Oil Frets Over Demand for Plastics
By Carol Ryan
December 26, 2024
The Wall Street Journal
Late Edition – Final
B12