Browsing by Author "Vermeer, Daniel"

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Open Access
A Report on the Energy Transition in the EU
(2024-04-23) Dobrinov, Alexander
Open Access
Beef Production in Brazil: A Value Chain Approach to Reducing Deforestation
(2013-04-24) Gonnella, Carrie; Holt, Jana; Hill, Louise; Braunz, Amy
Deforestation in the Brazilian Amazon is a persistent environmental problem due to its contributions to global climate change and biodiversity loss. The beef industry is a major contributor to this problem with an estimated 60-75% of deforestation caused by conversion of rainforest to pasture land. The World Wildlife Fund (WWF) and the Global Roundtable on Sustainable Beef (GRSB) are seeking advice on initiatives to pursue that will make significant contributions to the reduction of deforestation. This masters project analyzes the drivers of deforestation related to the production of Brazilian beef and identifies initiatives that could help reduce deforestation. For each initiative considered, benefits, risks, and barriers are explored. In addition, an analysis of the Brazilian beef value chain is undertaken to determine which segments of the chain hold the most appealing leverage points for implementing initiatives to combat deforestation. Based on the results of this analysis, this paper recommends that WWF and the GRSB pursue efforts to improve land use planning, diversification of farm income, and implement financial mechanisms, such as REDD+. This paper also lays out a timeline for undertaking these initiatives, specific roles that the GRSB can play in each of these initiatives, and key stakeholders that the GRSB must engage with to be successful at positively impacting the problem of deforestation in the Amazon.
Open Access
Challenges and Opportunities in Supply Chain Environmental Sustainability Disclosure: Navigating the Request-Response Process between Stakeholders and Suppliers
(2013-04-26) Jiang, Lin; Lab, Jessica; Lai, Phillip; Qian, Yifei; Rau, Peter
Environmental sustainability is growing in importance to organizations in many different sectors. The need to account for suppliers’ environmental performance through sustainability surveys is taking up a greater portion of the daily job responsibilities of sustainability professionals. This report incorporates insights from interviews with 15 organizations across multiple industries that address the current challenges and opportunities confronting those in the sustainability supply chain disclosure process. In addition, we analyze 31 collected sustainability surveys based on four survey-level characteristics (survey level, type, purpose and industry) and on four question-level characteristics (question format, nature, topic and subtopic). The resulting data show that, while it would be difficult to establish a single common survey or set of questions, opportunities exist for the standardization of question wording and format, which would constitute a step towards reducing the amount of time that organizations spend on responding to surveys. This report provides a roadmap for taking this project forward based on these results, centering on the creation of a web-based platform containing a repository of standard-worded and formatted questions covering a broad range of environmental topics. Using this platform, organizations could select questions to send to their suppliers based on their own preferences, while suppliers could reduce the amount of time spent on responding to survey requests. This establishes a path forward in supply chain sustainability disclosure, with the potential to reduce systemic inefficiencies and redundancies in this process.
Open Access
CIRCULAR ECONOMY IN THE OUTDOOR INDUSTRY: ASSESSING PROGRESS, CHALLENGES, AND OPPORTUNITIES IN DEVELOPING CIRCULAR PRODUCT MODELS FOR OUTDOOR HARD GOODS PRODUCTS
(2018-04-27) Gausewitz, Gregory H.
The term "circular economy" is often used to describe an idealized consumer product model where products at the end of their useful life are recycled as inputs to material manufacturing or returned harmlessly to the biosphere. The transition to a circular economy, however, requires significant action by many parties across the global value chain and is still nascent. While there is an emerging body of research on this topic, hard goods in the outdoor industry is a product category that has not been the subject of much research to date. This report features case studies that assess various such products that represent components of circular product models. The case studies explore the progress made and challenges encountered in deploying circular product models. Finally, the report identifies opportunities to further deploy circular product models across this category and beyond.
Open Access
Community-Based Tourism as a Sustainable Development Strategy - With a Focus on the Caribbean Region
(2020-04-24) Maggio, Caitlin
The travel and tourism industry continues to steadily grow and is one of the largest industries globally based on GDP contributions. Tourism is a significant part of the Caribbean region’s economy and has many socio-economic and environmental benefits. However, without proper management, risks associated with climate change and inequity persist and may increase. Balancing the necessity of attracting tourists to sustain and improve livelihoods while protecting biodiversity and managing environmental assets is challenging. This study focuses on how Community-Based Tourism (CBT) can be a viable development and conservation strategy within the tourism value chain by mitigating some of the associated risks. The methods utilized during this study include interviews with travel industry experts, a market survey, and a supplemental literature review. The results of this project include a market strategy focused on five categories to attract more visitors to the region and an evaluation of existing barriers associated with sustainable environmental measurement systems used by tourism operators or destinations. The results reveal the challenges and mitigation strategies associated with data collection, incentives for community participation, and the need for prioritization of indicators based on the volume of tourists and environmental impacts. For Community-Based Tourism locations to be successful, there needs to be both a strong marketing strategy to attract tourists and a prioritization of environmental indicators that evolve. Balancing the promotion and protection of assets is essential to obtaining long-term sustainable development.
Open Access
Corporate Water Stewardship: Assessing the Performance of Non-Governmental Organization-Corporate Coalitions in the Food and Beverage Sector
(2022-04-18) Calvat, Charles
Of all sectors, the food and beverage industry is particularly reliant on water. As it consumes 70% of the world’s water resources and has a considerable impact on water, securing clean and abundant freshwater is a clear business imperative. Competition for water and increasing water scarcity in relation to climate change force food and beverage companies to address pressuring physical, regulatory, reputational, and financial water risks. By partnering with NGOs, businesses develop corporate water stewardship strategies to mitigate their water risks and turn them into opportunities. This case study aims to assess the performance of NGO-corporate coalitions in developing corporate water stewardship initiatives in the watershed where they operate. The Analysis finds that water issues are extremely complex and difficult to comprehend and address. In this regard, if water risks are commonly well assessed at the site level, companies find it more difficult to comprehensively capture and respond to water risks outside their operating facilities, along their supply chain, or at the catchment level. A comprehensive approach to water challenges, including agricultural suppliers and all key stakeholders in the watershed, is key to ensuring the viability of corporate water stewardship at the basin level.
Open Access
Developing Strategies to Generate Carbon Offsets Using Regenerative Agriculture
(2023-04-27) Jacobs, Andrew
Regenerative agriculture ('RA' or 'regenerative ag') is gradually gaining traction as a more environmentally sustainable alternative to traditional, modern agricultural practices. Regenerative agriculture represents a systems-based farming approach that prioritizes ecological health by improving soil conditions and biodiversity and conservatively managing inputs. By enhancing ecological health, the hope is that RA will also enhance a farm's productivity and profitability. Despite regenerative ag's potential economic and environmental benefits, adoption rates in the United States remain low. However, carbon offset markets are one mechanism that could possibly drive greater adoption. RA improves soil health by increasing the soil's carbon content, making it an eligible activity for carbon offset credits in emerging agricultural carbon markets. My Master's Project seeks to uncover if carbon offsets can influence the widespread adoption of regenerative agriculture in the United States. This Master's Project is an extension of a Fuqua Client Consulting Practicum project. The project's objective was to devise strategies for our Client to create a program to generate and sell carbon offsets by supporting farmers in transitioning to regenerative agricultural practices. Due to a non-disclosure agreement, the Client's name will remain confidential. Many practices constitute regenerative agriculture, but our Client suggested that our team focus on two practices, cover crops and no-till farming. Although adoption rates for these practices are still low, they are better understood, easier to implement, and more conducive to carbon markets than other regenerative practices. The Client provided three main project objectives for our team, 1) recommend an ideal target market for initiating a carbon program, 2) determine the economic implications of adopting RA from a farmer's perspective, and 3) identify the main drivers and barriers that influence farmers' decisions to pursue RA and engage in carbon markets. The Client advised our team to segment US farms by farm size, geography, and crop type to identify the highest potential farming archetypes. Medium and large farms represented the top size targets because they have the financial flexibility to try new practices, offer economies of scale, and comprise enough combined acreage for the carbon program to proliferate. For the ideal geography, the CaRPE tool, developed by the American Farmland Trust, projected that many Midwestern states provided high emissions reduction potential through cover crop and no-till conversion. These states also contain significant cropland acreage, making the Midwest the ideal geography. Lastly, corn was chosen as the recommended crop type based on its prevalence in the Midwest and potential to realize an uplift in carbon removal from no-till and cover crop adoption. After identifying the ideal farm segment, our team created a net present value model to analyze the economic dynamics from switching to cover crops and no-till farming. The Client strove to determine whether the economics supported the transition to RA. Our analysis informed how the Client would compensate farmers to entice them to pursue carbon markets. The model revealed that RA could improve profitability, but many assumptions contain uncertainty. All farms are different, making it difficult to create a universal model. The key takeaways from the economic model are that benefits take time to materialize, positive financial outcomes are not guaranteed, and carbon programs must be structured to mitigate the risks of adverse impacts on operations. The goal of the qualitative analysis was to confirm the findings from our economic research and uncover other factors influencing farmers' decisions about regenerative agriculture. This analysis involved interviewing twelve experts in various fields within the agricultural industry; from these interviews, three main barriers emerged, 1) economic, 2) psychological, and 3) logistical. Many farmers feel current carbon prices are inadequate to offset the risks of changing practices. Also, many farmers rely on traditions passed down through farming communities and are unsure of new carbon markets, methods, and partners. Lastly, technical assistance is lacking. Our Client's program must include strategies to overcome both economic uncertainty and non-financial barriers. Competition in incipient agricultural carbon markets is ramping up quickly, but these markets are also experiencing growing pains. Our Client can differentiate itself by offering flexible programs that are easy to understand and address economic uncertainty, farmer mistrust, and technical knowledge gaps. It will take time before carbon programs surmount obstacles and inspire a paradigm shift in farming practices. Therefore, developers of carbon offset programs must create conditions to ease the learning curve to accelerate acceptance. Although immediate transformation is unlikely, increased evidence of regenerative agriculture's benefits, improved carbon verification processes, more accessible technical knowledge, and higher carbon prices could make carbon markets a major driver of farming transformation long-term. If this shift occurs, farmers could benefit from more productive farms and additional revenue streams, and society would benefit from more resilient, climate-friendly food systems. However, iterations of prudent carbon program designs are needed to achieve transformative adoption.
Open Access
Evaluating opportunities for enhancing Mondelēz’ sourcing strategies to ensure sustainability of its cocoa supply
(2014-04-25) NG, Janet; Healy, Carol
Chocolate is a multibillion dollar industry with nearly 50 million people along cocoa’s global value chain dependent on the crop for their livelihood. Low productivity, urbanization, climate change, rise of the middle class leading to growing global chocolate demand, and consumer demand for increased transparency have put pressures on the cocoa value chain. By 2020, annual global cocoa demand is projected to exceed supply by nearly 1 million tonnes. Cocoa producers are faced with low incomes, low productivity and poor agricultural practices, leading to a vicious poverty cycle. In many origins, farmers are looking elsewhere for alternative livelihoods. Such factors pose risks to the stability of the cocoa value chain. In light of these pressures, chocolate manufacturers are exploring alternative sourcing strategies. The emergence of industry mechanisms such as third-party certifications, direct trade and dedicated supply chains have ushered in a new wave of business models that hold promise for more sustainable sourcing. As one of the largest chocolate manufacturers in the world, Mondelēz International, Inc. (Mondelēz) has committed USD $400 million over 10 years in a cocoa sustainability program called Cocoa Life. In the past, sustainability programming at origin and sourcing decisions were kept separate; with Cocoa Life, the intent is to create a direct link between the two to achieve supply chain stewardship. Our Master’s Project seeks to leverage insights from global value chain analyses of five key cocoa origins, peer benchmarking, and interviews with industry experts and internal Mondelēz stakeholders to identify intervention points, best practices, and recommendations for Mondelēz’ cocoa sourcing strategies. Given our understanding of Mondelēz’ sourcing approaches and priorities, we recommend the company continue integrating landscape approach elements to Cocoa Life, by building relationships and trust throughout the value chain especially with producer communities and government entities, prioritizing professionalization of the farmer, and engaging in the pre-competitive challenge of eliminating cocoa smallholder and community poverty. Other opportunities include applying financing mechanisms through payment for ecosystem services models. This paper also provides a basic framework that highlights key conditions required for specific sourcing strategies’ viability in order to advise Mondelēz on strategic sourcing decisions.
Open Access
Filling the Ocean Funding Gap: A Study of Blended Finance and the Promise of Blue Bonds for Ocean Conservation
(2024) Audino, Mackenzie
The ocean covers 70% of the Earth’s surface, comprises 97% of all water on earth, and contains 99% of all living space on the planet. It plays a vital role in absorbing carbon dioxide and producing the oxygen we breathe, it is a significant component of the global economy, and a key element in fighting climate change. However, governments and organizations around the world continue to abuse the ocean rather than protect it. The past few years have seen numerous commitments to restoring and protecting the long-term health our oceans. Despite these commitments, the ocean remains chronically underfunded. This project analyzes the role that Blue Bonds can play in closing this funding gap and shows how Green Bonds can be used as a framework to scale the Blue Bond market. Additionally, I created an example bond, The Manta Bond, to illustrate the process by which blue bonds can support conservation goals.
Open Access
Financed Emissions – Methodologies and Implication for Global Financial Institutions
(2022-04-21) Nelson, Chidera
Financed Emissions is the process of analyzing the environmental impact of lending and investment decisions in the portfolio of financial institutions. Financed Emissions analysis is essential to Scope 3 emission disclosures since the core business of most financial institutions relates to disbursing loans and other market-making activities. As financial institutions worldwide grapple with aligning their portfolios with the Paris Accord and increasing scrutiny by investors to improve ESG disclosure, the topic of Financed Emissions is gaining prominence. The thesis involved researching GHG calculation methodologies for different sectors and asset classes, compiling a concise outline of relevant case studies and recommendations for assessing financed emissions. The thesis is a highly qualitative state-of-the-art study on financed emissions that approaches the topic mainly from an academic standpoint tailored specifically to help practitioners understand the universe of existing methodologies and crucial strategic and operational considerations bordering financed emissions.
Open Access
Identifying Strategies for Reducing Food Waste in NC Fresh Produce Supply Chains
(2015-04-24) Chappell, Eric
In recent years, food waste has received an increasing amount of attention from academia, the media and private industry. Realizing that this waste is also destroying value, producers, grocers and other large generators of food waste are searching for alternate disposal strategies which can save them money while also reducing their environmental footprint. In this light, the US Environmental Protection Agency developed the Food Recovery Hierarchy, a tool which helps provide context and suggestions for waste diversion. This project specifically looks at shipments of fresh produce that have been rejected by the market. These rejections arise when there is an over supply of produce or a buyer rejects a shipment because of quality concerns. By scoping the issue within the framework of North Carolina, the issues, solutions and recommendations for additional diversion opportunities are more specific and can exist within a real world application. Through a series of qualitative interviews linked together within a framework that borrows from the grounded theory tradition, a number of success stories emerge. Through a mixture of vertical integration, economies of scale and economies, businesses within North Carolina are finding ways to increase the amount of waste they divert while still keeping their sight on their own bottom lines. More importantly, these interviews identify barriers to increasing diversion beyond current levels. Small- and medium-sized companies lack the time and capabilities to craft complex waste diversion strategies. Increasing transportation costs mean that producers of food waste are less incentivized to ship waste through diversion streams that are more poorly distributed. This leads many of those who do divert waste to use composting as a default diversion tactic, as it requires less time and expense to use a single diversion stream. State and local governments act as important players in increasing diversion activities. In North Carolina, the NC Department of Environment and Natural Resources works to promote diversion activities in the state. Through programs such as NC Waste Trader, the state can provide visibility for diversion activities and help reduce some of the information barriers that come from a lack of scale.
Open Access
Increasing Engagement in the HDPE Recycling Value Chain in the United States
(2015-04-24) Jones, Kara
Global production of plastics has increased dramatically in the past 70 years, from 1.9 million tons in 1950 up to 330 million tons in 2013. The United States, the world’s second largest producer of waste, generated 32 million tons of post-consumer plastic waste in 2012, and only 8.8 percent of it was recovered. The rest was discarded in landfills and in smaller portions along roads, beaches, and in waterways. The value of just one type of plastic packaging—high density polyethylene (HDPE)—wasted in the United States is estimated to be $2.85 billion (2010). Despite generally high demand for recycled HDPE content (e.g., from consumer packaged goods manufacturers), there are disconnects between many recyclers, product manufacturers, and other actors that result in suboptimal design for recyclability and insufficient supply of quality material for recycling. Guided by this dynamic, the research has two objectives: (1) identify opportunities to increase engagement in the value chain for recycling rigid HDPE and (2) serve as a reference guide on the value chain covering key market dynamics, challenges, and influential organizations in each segment.
Open Access
Innovation in the Blue Economy: Opportunities in Shipping, Aquaculture, and Offshore Wind for Climate Change Mitigation
(2021-04-30) Riddick, Sage; Swanson, Megan; Snodgrass, Lisa
As the world’s population continues to grow, increasing pressure will be placed on the ocean’s valuable resources. By 2030, nearly two-thirds of the fish on our plates will be farmed at sea; by 2040, global offshore wind capacity is projected to increase fifteen-fold; and by 2050, seaborne trade will have nearly quadrupled. An aspiration to balance sustainable economic growth, improved living standards, and ecosystem conservation has given rise to the term “blue economy” and an increased interest in the emerging bluetech area. We conducted semi-structured interviews with leaders in bluetech and experts in the shipping, aquaculture, and offshore wind industries. We identified the main risks that climate change poses to these industries and analyzed current and future opportunities in technology and innovation to decarbonize these industries. From this analysis, we developed the following takeaways: 1) Cross-sector partnerships allow companies to capitalize on advancements made in each individual industry, and should be pursued; 2) Digitization is a key element of improving efficiencies within all three sectors, and companies should look to bluetech hubs for promising digital innovations; 3) Utilizing economies of scale can drive down costs and reduce emissions; 4) All three sectors recognize that they have a role in increasing social equity and inclusion but so far have been slow to act toward that goal.
Open Access
Integrating Circular Economy for PET Plastic at Duke University’s Fuqua School of Business
(2019-04-24) Bales, Caroline; Hull, Emilia
Plastic has become an integral part of our economy as a core material. However, current waste systems are proving insufficient to address the increasing rise of plastic waste, which paired with consumer challenges, has led to a worldwide crisis regarding plastic waste. Premirr Plastics, a North Carolina-based start-up company, has invented a new process to recycle waste PET plastic back to virgin quality monomers, which allows for the continuous reuse of the material – a drastic change from current technology. Premirr is various exploring business models and is interested in creating a small-scale, closed-loop system for individual institutions, such as universities. This paper evaluates part of their proposed plan by testing its feasibility at Duke University's Fuqua School of Business to explore (1) consumer interest, and (2) institutional interest. This study concludes that, while there is strong consumer interest and institutional support at Fuqua, certain barriers make this a challenging business plan. However, due to the plan’s marketing appeal, we recommend launching a pilot as a marketing plan while relying on another business plan as the primary revenue generator.
Open Access
Kelponomics: A Comprehensive Analysis of the Global Seaweed Industry with Sustainable Strategies for Growth in the Icelandic Market
(2024-04-26) Purcell, Emily; Quintero, Juan Pablo
Kelp, a versatile and sustainable marine resource, has gained increasing attention globally due to its various applications in food, agriculture, pharmaceuticals, and biofuels. Kelp plays a crucial role in marine ecosystems by providing vital habitat, promoting biodiversity, and regulating nutrient absorption and carbon storage, yet its loss due to factors such as climate change, predation, pollution, and habitat degradation poses significant risks to kelp forests globally. In the context of Iceland's unique marine ecosystem and leadership in sustainable industries, this report evaluates the current state of the global kelp industry, its economic viability, environmental impacts, and potential opportunities and benefits for Iceland. Our team conducted a comprehensive literature review to analyze global kelp markets and coupled this with extensive primary and secondary research to apply our findings to the Icelandic context. We also investigated current wild harvest and potential aquaculture sites through a geospatial mapping exercise. Based on these analyses, this report presents a set of recommendations for the Icelandic market to capitalize on the opportunities offered by the kelp industry while simultaneously promoting and protecting this environmentally valuable resource. These recommendations encompass viable end-use markets, circular economy principles, policy considerations, and areas for future research. This report will provide a roadmap for the integration of kelp cultivation and processing into Iceland's economic and ecological landscape, fostering sustainable growth and environmental stewardship.
Open Access
Large Scale Land Acquisitions around the World: Landscape Analysis and Policy Intervention Possibilities
(2012-04-25) Nemeth, Gergely "Nemo"
The 2007-2008 food price crisis highlighted the fragility of the global food system and raised concerns about food security in many import-dependent countries. One of the emerging strategies for capital rich, but land-poor countries is to pursue large-scale land acquisitions that provide proprietary access to scarce resources. This paper introduces case studies in Europe, South-America and Africa to illustrate efforts around land policies that aim to take advantage of foreign direct investment in agricultural land. We have developed an agricultural investment scorecard to serve as a connecting point between investors and potential host countries. Investors may use this scorecard as a tool to assess the opportunities in a target country. Host countries can benefit from the scorecard as a self-evaluation mechanism that highlights strengths and areas for improvement in order to attract private capital for land investments. After using our scorecard to evaluate our case study countries we have identified some common patterns and general recommendations for policymakers in potential host countries. These include: (1) define a specific goal for land policy, (2) prioritize capacity building, (3) incentivize through well-defined land rights and (4) value environmental assets.
Open Access
Measuring the Impact: A Survey of Impact Metrics in Environmental Real Asset Investing
(2016-04-28) Copp, Belton VI; Kent, Xander; Spence, Liz
Private investment in environmental real assets has increased over the past decade due to their low correlation with financial markets, inflationary hedge benefits, and connection to impact investing. As investment funds begin to manage these assets, concerns arise over environmental accounting practices. To better understand which impact metrics funds currently use and what motivates measurement, we interviewed 19 fund managers from environmental real assets funds. Results revealed that current impact metrics schemes are disparate within and between asset types. Funds are motivated to collect environmental data by internal and external drivers, including voluntary certifications, regulations, and investor requirements. If environmental accounting is to mature, fund managers, investors, wealth advisors and environmental professionals must align expectations of metrics and reporting.
Open Access
THE FUTURE OF BIG OIL IN THE HYDROGEN ECONOMY
(2021-04-30) Koutsogeorgas, Panayiotis; Ripecky, Zoë
Globally, oil and gas companies have approached hydrogen fuel with varying levels of interest and investment. In Europe, where policymakers have earmarked large sums of investment in the future of hydrogen, oil majors have been generally more proactive about incorporating hydrogen into their corporate strategies. US policymakers and oil majors have overall been less focused on hydrogen, but the US has some unique conditions that may be favorable to an expanded hydrogen industry. This project outlines the current positions of oil majors when it comes to hydrogen. It explores the unique challenges and opportunities that exist for traditional oil and gas companies, and how oil majors might adapt their infrastructure and workforce to embrace a hydrogen future.
Open Access
Understanding Barriers and Evaluating Pathways to the Long-Term Viability of Federally Funded Energy Efficiency Programs
(2012-04-27) Fraser, Kathleen
In 2009, the U.S. Department of Energy allocated $508 million to the Better Buildings Neighborhood Program (BBP), a competitive grant program to spur a private energy efficiency retrofit market in the residential and commercial buildings sectors of the U.S. economy. The BBP was funded through the Obama administration’s American Recovery and Reinvestment Act, with the goal of creating jobs and impacting the economy through clean energy investments. This report investigates one of the BBP grant recipient partners, the Southeast Energy Efficiency Alliance (SEEA), and the unique challenges of energy efficiency deployment in the Southeast. The analysis provides SEEA’s program managers with a framework to evaluate options for the long-term viability of their energy efficiency retrofit programs post-federal funding in 2013. These options were designed as a deliverable to SEEA in the form of a guidebook, which was completed in March 2012. Selected sections of the guidebook can be found in the Appendix and will be referenced throughout the report. Additionally, this report will consider the current barriers that SEEA’s programs are facing and how they are impeding the organization’s likelihood of meeting goal criteria within the mandated time frame. The final recommendations will include programmatic changes that SEEA can adopt over the next year and a half to overcome both the short-term and long-term challenges of energy efficiency retrofit programs in the Southeast.