Sustainability in the US: Does it = Net Global Sustainability?

As we rode one of Washington’s ferries this weekend, my husband turned to me and asked if I knew how old these boats were. Honestly, I am not sure, but they certainly are not new by any means. As we continued our conversation, it turned to a discussion about infrastructure, and how upgrades in efficiency (new equipment) is a way that organizations, businesses and countries tout their sustainability. Upgrading the fleet of carpool vehicles at your office to hybrids…or 100% electric vehicles. “Our emissions are lower! Our operations are carbon neutral!” is what their annual report reads, and the company shows improvement with a pat on the back.

But what really happens?

Back to the ferry discussion from the weekend.

When US ferries are deemed to be too old, too unsafe, too high emissions for our standards, we retire them. “Retire” in this case really meaning selling them to continue their lives elsewhere. My life in WA recently collided with my experience studying in East Africa when I learned of a ferry tragedy connecting two places I was intimately connected to. In June 2012, a ferry boat, purchased from a retired US fleet, had sunk on its crossing fromZanzibar to Dar es Salaam, killing over 150 onboard. I had been on that very same crossing in 2007, on a similarly overcrowded vessel. Where exactly was this ship from? The same route that we were riding this weekend…West Seattle to Vashon Island. The sinking was caused by weather conditions combined with severe overcrowding and mechanical problems. Regardless of the reason, this ship was one that we had taken off our books as a country, but for the world, it was still polluting, running and endangering lives.

This is not the only example of infrastructure that we write off in favor of our local sustainability. Fleets of city busses, and school busses, are routinely sold to developing countries once they are too unsafe, do not meet emissions standards, or are too aged to run here. These aged, less safe and more polluting vehicles are sent overseas where they are run for years beyond their first life in the US.

As we explore measurement of sustainability, and defining metrics around what and how to track it, it is critical that we do not just push the problem elsewhere. A popular acronym used in environmental issues is NIMBY…not in my backyard. Waste water treatment, factories, refineries, landfills, highways…all of these large, infrastructure projects are typically located in less affluent areas, leading to social justice and environmental justice issues. Even as a company evolves towards their internal sustainability goals, how often are they asking about how their actions impact these indirectly related issues.

The world is a complicated network of challenges as we discuss sustainability. My call to you, is to consider all the impacts of your actions, both upstream and downstream. What may look like sustainability gains to you, may just mean compounded negative implications to someone somewhere else. 

Crowdfunding Against Coal

It has been a while since I have shared any thoughts on the coal export/coal train debate that is looming over our PNW communities. As I wrote about last fall, one of these proposed coal export terminals is intended to replace my family’s current summer crabbing beach, and would impact train traffic all along our beautiful Washington coastline.

With our recent finance class discussions about raising capital, it seems the opportune time to have a relevant capital related event in the world of coal. On Thursday, May 9^th, a University of Washington professor’s goal to crowd source $18,000 for an investigation on air-quality related to coal trains, was reached. This is a perfect example of how people have the power to influence business, or causes they believe in, through non-traditional capital raising channels.

Professor Jaffe had previously found difficulty in getting his research proposal funded through typical channels. As we talk more about the importance of social factors in business, specifically stakeholder engagement, this is a prime example of how the “traditional” system leaves them out of the decision making process. If public option and concern had been criteria for funding, would Jaffe have received funding at his first request? Clearly there are other issues at play regarding funds for research, but it is an important angle to consider.

According to the press release in Friday’s Seattle Times, Jaffe plans to set up air monitors along the tracks, possibly north of Seattle, starting in July. The goal is to see if trains affect air quality, to help inform how building a new coal terminal might affect people up and down the tracks.

Example of crowdfunding are popping up all over, for every cause you can imagine. This trend speaks to the power that people have to shape the future of business, both for good and bad. Crowdsourcing, particularly with the ease of internet communication, allows for vast swaths of people to connect around an issue and put their dollars to work. Here is a great example: over 1 Million dollars raised to purchase the historic Tesla research site in New York for a future museum site. Who initiated it? An online cartoonist in Seattle, fondly known as The Oatmeal.

We see examples of crowdsourcing gone array as well. With recent political campaign donation caps removed, power and influence has been transferred to those with dollars to spare.

In addition to the strictly donation based capital fundraising, I have been inspired to see new forms of loans pop up, and two great examples are from BGI Alumni: Slice Finance and Community Sourced Capital. Both are helping to reshape the options business owners have when searching for capital, and bring the community stakeholders back to the table. My younger brother is searching for capital investors through a similar channel: Upstart.com. It is wonderful to see so many options beyond taking a bank loan or pursuing traditional routes to raise money for ideas. 

Does anyone have experience working with any alternative community sourced funding for their business ventures?