We live in truly extraordinary times, and climate change is at the top of the list of reasons why.
Stop and think about it for a moment – we've altered the chemistry of our
planet so that we are actually witnessing in
real time the accelerated transformation of our climate. We’re moving from a period of thousands of
years of relative stability (a period that allowed us to build our civilization) to something
radically new in the human experience. Turn off all the noise – the politics,
the petty arguments, the reams of scientific evidence – and you come back to
the fundamental truth that we are conducting a great experiment, the results of
which will determine our continued ability to support a historically massive (and growing)
human population.
If we're actually going to do something about this in enough
time, we will all be required to rethink our most basic assumptions, leave our biases aside and work together towards a solution. I'm
realizing more and more that, even though I consider myself to be open-minded
and "freethinking", this is going to be extremely difficult for me as
well.
For many years I’ve lived what most of mainstream America
would describe as a leftist and even hippie-ish existence. This lifestyle was
most pronounced in my 20s (now a long time ago), which included a couple of
years working on a composting farm in Vermont and about six months cow-and-goat-herding/cheesemaking on a remote farm in France. While in Vermont I lived
mostly in Montpelier, which did and I assume does pride itself on being the
only state capital lacking a McDonald's. This is not an accident – the citizens
of this amazing little town actively fight to keep it small and independent. A
key component of this fight is the effort to keep large corporate chains out
and small local businesses in.
I was proud to be a part of this spirited community when I
lived there, and I have to admit I even bragged about the no McDonald's thing
once or twice. And to be completely honest, I've long held a bias against large
corporations. (This has lessened somewhat over the years, certainly in the last
couple as I've worked with many global corporations on their sustainability
initiatives. But the vestiges remain.) This bias is obviously completely
consistent with mainstream liberalism in America and mainstream everything in
most other countries. But these extraordinary times lead to an
extraordinary question: are corporate chains actually better for the
environment?
How could this possibly be true? Well, it may just come down
to efficiency. Here's an example: this week I was reading an article
by the amazing Atul Gawande examining whether or not the medical care industry
can follow in the footsteps of corporate restaurants like the Cheesecake Factory,
a giant chain that has managed to deliver high quality food at
reasonable prices. (Or so they say – I've never actually been to one.) The
question Gawande is trying to answer is whether or not hospitals, for example,
can also deliver higher quality and better care to patients by rigorously
documenting best practices and standardizing their delivery to patients. (That this is not the norm should leave us all more than a little bit afraid…)
I was particularly struck by a piece of evidence cited in
the article: by rigorously tracking past consumption patterns and creating
computer models that predict likely future sales and orders, Cheesecake Factory
restaurants have managed to cut their food waste losses to about 2.5%. In other
words, they are 97.5% efficient in ordering the right amounts of food to serve
their thousands of daily customers. As a former composter who continues to
obsess about food waste in our society, this was bound to draw my attention. And
when you consider the fact that the average US restaurant wastes anywhere from
4 to 10% of pre-consumer food, it stands out even more.
Most people now know the story of Walmart and how they've
managed to drive consumer prices down, at least partly due to the fact that they're
able to realize tremendous efficiencies of scale. Perhaps less known but
certainly no less important is their push for sustainability, which started
with efforts to green their own stores by increasing energy efficiency,
installing solar panels, decreasing waste etc. But they quickly learned that if
they were really going to make a dent in the problem they had to influence
their suppliers (i.e. the companies whose products they sell) to green their
own businesses as well. This all points to the possibility that a company like
Walmart, with its vast size and reach and mind-boggling operational
efficiencies, can in fact be "greener" than a mom-and-pop store in
downtown Mainstreet USA.
I want to be clear that I'm not arguing against the
existence of mom-and-pop stores in favor of corporate behemoths. I'm simply
trying to put forth the idea that we need to re-examine our basic philosophies
and prejudices if we're going to solve what might be the greatest challenge in
our history.
So, are you ready to rethink everything you've always taken for granted? Humankind may very well depend on it.
Hi Scott, Ranjith here. I was one of your Industrial Ecology students at Columbia. Could you add a link to the blog which allows readers to follow blog/subscribe via email to the blog. Look at my blog's example swmindia.blogspot.com.
ReplyDeleteAnother tip I learnt was linking a blog to a google plus profile shows it up higher on search results!
Good article and blog.
Best
If we observe cities around the world which do not have large market chains like Walmart, we can see that there are many small players ("mom-and-pop stores") and there are also large informal markets. These large informal markets are congregations of many small players. So, all we see are small shops, some times working independently, and some times coming together to form one market. In such markets, the small players pay a certain price daily/weekly to book their space. Walmart is similar to these city markets, but only, it has a stake in every product that is sold, and we do not get to see/come in contact with its back-end suppliers like we might in any city market.
ReplyDeleteWalmart's suppliers are similar to the small suppliers in an informal market. But they operate under lesser risk due to their long term supply contracts with Walmart and might be less profitable per unit of their product sold (debatable, I did not look into any numbers which supports this!).
But, by all these small players coming together under one umbrella like a Walmart, which controls the overall operations, they give a better chance for success and sustenance over the long term and a consistent supply of revenue and livelihood. It is like many cells coming together to form an organism where they get a better chance at the future (urban metabolism).
Like you mentioned, these large chains can achieve considerable scales which help them achieve staggering efficiencies. This should not be the reason why anyone should be less biased about these chains, but as I explained in the first three paragraphs, by looking at these chains from a different perspective, we can lessen our biases towards them!
against them*
ReplyDeleteDefinitely an interesting perspective. It goes against what I want to believe, in terms of supporting local businesses, creating local tax income and supporting smaller footprints rather than large ones (in terms of physical space). However, it is true that these large corporations have significant purchasing power, which will trickle down to smaller producers. Just think of what could happen if the federal government adopted some of the same standards!Talk about a large provider.
ReplyDelete