By Adam Brock
The last decade has seen the environmental movement shift from pointing fingers at the Man to seducing him instead. After thirty long years of trying to guilt-trip companies into improving their environmental performance, it’s now considered much more effective to meet business on its own terms by showing that cutting down on energy and other resources can be profitable.
But despite all the hubris, the alliance of business and environmentalism remains an uneasy one: for every unexploited opportunity for increasing efficiency through resource savings, there’s another instance where rescuing the planet and quarterly earnings just don’t jive. After all, there’s a pretty serious divergence in their fundamental assumptions; corporations need to grow or die, while environmentalists maintain that unchecked growth is what’s killing us.
Last week’s BusinessWeek took aim at this conflict of interest with a profile of Auden Schendler, the disgruntled sustainability advocate at Aspen Skiing Co. The story relates struggle after struggle between Schendler and his higher-ups to make improvements that, all told, barely made a dent in the company’s environmental impact. When he tried to install CFLs in one of the resort buildings, he was told that the quality of light put out by fluorescents would detract from the hotel’s five-star ambience; after a long hard struggle, he managed to get approval for a $1 million solar array to provide a fraction of a percent of Aspen’s energy needs.
One of Schendler’s most vocal criticisms is of renewable energy credits, a system currently used by hundreds of institutions (including Aspen and NYU) that purports to offset electricity emissions by paying to support development of renewables. After doing some digging, Schendler couldn’t find any renewable energy that had come online as a result of Aspen’s RECs, and was forced to conclude that, much like personal carbon credits, the whole setup was too dubious to support. The BusinessWeek article seems to agree, explaining that the current price of RECs offers little incentive for renewable producers to ramp up:
Even many wind-power developers that stand to profit from RECs concede that producers making $91 a megawatt hour aren’t going to expand production for another $2. “At this price, they’re not very meaningful for the developer,” says John Calaway, chief development officer for U.S. wind power at Babcock and Brown, an investment bank that funds new wind projects. “It doesn’t support building something that wouldn’t otherwise be built.”
The dubious economics of energy credits aside, Schendler faces a more serious challenge: trying to green a company whose very basis is an environmentally destructive luxury activity. No matter how much Aspen reduces its carbon emissions, its clients will release thousands of tons of greenhouse gases just in getting themselves there. No matter how many LEED points Aspen’s new buildings achieve, they’ll still be sitting vacant for much of the year.
If Aspen Skiing Co. is serious about sustainability, it needs to completely redefine its mission, figuring out how to profit from actively regenerating the Rocky Mountain ecosystem. Anything less is a profitable hyporcrisy. If Auden Schendler’s experience thus far is any indication, it doesn’t sound like the “natural capitalism” approach is cutting it – so how can the message get through before it’s too late? Legislation? Consumer rebellion? What are your thoughts?