Innovation

Ben & Jerry’s carbon insetting program directly relates to the 13th UN SDG as it helps store the carbon made by the companies where they source their materials. Although the carbon insetting doesn’t count towards their SBTi (Science Based Target Initiative) goal, most likely due to the fact that the insets are based in countries where Ben & Jerry’s sources their material, so they might have trouble measuring the exact impact that it has. Ben & Jerry’s believes that the insetting is helping to reduce carbon emissions immensely. To develop the carbon insetting, they specifically targeted the communities where they source their material and made strategic investments to make it worthwhile for the farmers to practice carbon insetting. Ben & Jerry’s uses their SEAR (Social and Environmental Assessment Report) to show their stakeholders how they are doing. Ben & Jerry’s didn’t link carbon insetting to the UN SDGs and instead, in 2018, created their own SBTi of reducing carbon emissions across their whole supply chain. To support its carbon insetting program, they made investments as a company with reducing their carbon footprint in mind.

Ben & Jerry’s put a tax per metric ton of carbon they used on themselves of $5 per metric ton in North America and €5 per metric tonne of CO2e in Europe, which also directly relates to the 13th UN SDG as it is in their best interest to reduce their carbon emissions and therefore help climate change. When developing the carbon tax, it was initially double what it is currently but was reduced to $5 and €5, respectively, after they underestimated their carbon footprint. They, again, used their SEAR to tell the stakeholders how they are progressing at combating climate change. Again, instead of linking to the UN SDGs, they used their SBTi. To support their carbon tax, they simply put a tax per metric ton of carbon used which made them more aware of how much they were using as no company wants to lose money, especially not if it hurts the environment.

Inspiration

Ben and Jerry's quickly learned the value of internal reflection regarding sustainability and climate change. The stakeholders held them to high standards due to their platform and impact and encouraged transparency in the company’s business practices, and any challenges faced. As stated by Sean Greenwood, “this concept of a self imposed tax builds for a better model and a better impact. Since we are doing it to ourselves, this is clearly not for profit or a marketing ploy, Ben and Jerry’s genuinely wants to help the environment by reducing their own impact, which is an obstacle in itself. Most corporations, especially in this specific industry, want to maximize profits, regardless of manufacturing impacts on the world. By taking a stand, we are adding value to our company, but most importantly society.” The company's social mission was their guiding light, and they believe that recording and reporting their data regarding their carbon footprint will guide the brand to leadership, as well as in innovative ways to make the world a better place. The SEAR report allows them to be held accountable, provides transparency, and ensures they operate in ways consistent with the company values.

Overall impact

The overall impact of Ben & Jerry’s innovation is changing our earth. By assuming it is too late to preserve, Ben & Jerry’s is investing in data and research to measure greenhouse gas (GHG) emissions and estimate their carbon footprint each year. To better show and help them track these short and long-term numbers, they illustrate on their website (Ben & Jerry’s, 2021) this ice cream pint is used as a pie chart to visualize and better work on their carbon footprint numbers.

Their goals are science-based to support and achieve their goals. Ben & Jerry’s chose the Science Based Targets initiative (SBTi), which provides climate action-defined paths for companies working on reducing their emissions aligned with the Paris Agreement goals. Ben & Jerry’s focused on SBTi to precisely measure its targets to reduce emissions by a specific number. However, with science-based evidence targeted in sustainability management, Ben & Jerry’s short-term effect is to measure their carbon emissions annually by collecting data. According to Ben & Jerry’s SBTi’s; in the long term, the carbon emissions projections are that: “company-owned facilities will use 100% renewable energy by 2025. We’ll reduce our emissions intensity by 40% by 2025 (from our 2015 baseline). We’ll reduce our emissions intensity by 80% by 2050” (Ben & Jerry’s, 2021).

Business benefit

The business model innovation of reducing their carbon emissions has given them the trust of their customers in helping them to know that Ben & Jerry’s does care about the environment. “It’s all about awareness and responsibility. We feel this is a part of our corporate DNA” ( Sean Greenwood). This benefits the business because it raises the morale of those purchasing Ben & Jerry’s. People know that what they are buying is not only satisfying to eat but also satisfying to see that they are not damaging the environment as much as other brands. This will bring the customers back by showing them that Ben & Jerry’s is about the people and ensuring we have a healthy place to live. Although it might not be easy to take the high road and help the environment, it seems to be worth it.

Secondly, the business model innovation allows Ben & Jerry’s to drive “down the use of fossil fuels while providing revenue to advance efficiency and cleaner, greener technologies” (Ben & Jerry’s, 2015). Due to having a carbon tax, they have advanced their company further than they would have if they had still been using lots of fossil fuels. The carbon tax pushes them to try new technologies, which will help make them more efficient and healthier. “Although it’s hard to cut costs in any business, it’s really our only option. We know it will pay off-it’s a vital investment in our own company as well” (Sean Greenwood). If they hadn’t imposed a carbon tax and weren’t able to experiment with new technologies, their competitors might have gotten a leg up on them. From a business standpoint, doing what is best for the environment and still advancing the business seems like the best of both worlds, and Ben & Jerry’s is at the forefront of it.

Social and environmental benefit

The self-imposed carbon tax is directly related to the benefits of society and the environment. Ben and Jerry's is trying to limit the amount of CO2 in the atmosphere and cut emissions, which is helpful as a big corporation instituting their own tax for every metric ton of their greenhouse gas emissions, from “cow to cone” (Greenwood). “Scientists agree that we need to curb emissions by at least 80% by mid-century to avoid completely overheating our planet”. A carbon tax puts a price on carbon pollution in all its forms, therefore driving down the use of fossil fuels. As a result, this also provides revenue for progress in the right direction, such as the goal for efficient, cleaner, and greener new technologies.

A prime example of Ben and Jerry's dedication to their mission is the 21st UN Climate Conference that took place in Paris France, established in 2015. After much anticipation, in 2017, world leaders met in Paris to try to come to a binding agreement on how to limit the amount of CO2 being admitted into the atmosphere and pave the way to a 100% clean energy future. “The agreement includes the important 1.5ºC threshold, a redline that many of the world’s most vulnerable countries say can’t be crossed without threatening their very existence. It also calls on the wealthiest countries to assist the least developed, and most vulnerable, countries in adapting to the changes they are already experiencing.” (Ben & Jerry’s, 2015). The negotiations took place between 197 countries to figure the “how” when it comes to achieving this goal. Ben and Jerry’s believe that “achieving the transition from a fossil-fuel economy to one powered by renewable energy actually can be simple— especially if governments follow the lead of pioneering provinces like British Columbia, and get real about the cost of carbon” (Ben & Jerry’s, 2015). Although the Paris Agreement isn't perfect and did not produce the anticipated results (due to former President Donald Trump pulling out), it reflected upon the power behind the people and big companies, just like Ben & Jerry’s, to hold other leaders accountable and commit to building the global movement that will deliver a sustainable world.

The bottom line is climate change is about justice for humans, especially future generations. However, humans are also the major contributor to climate change, and our actions have caused the planet to get hotter, by 1.1 degrees Celsius, since the 19th century. “Humans, including rich countries like the US, are responsible for the pollution that is ruining the climate so rapidly that our planet can’t even keep up” (Sean Greenwood). Floods, wildfires, and heatwaves have killed people globally and destroyed environments, but it is important to act now. “Climate change isn’t coming, it is already here” (Sean Greenwood). Although we are far behind, it is important for everyone with the resources to minimize the impacts of climate change and the risks it poses, and to do so now. Although the stakes are high for everybody who lives here on Earth, it directly threatens those who live in poverty, as they are the ones who can least afford it. If one has money and resources, like many western or rich countries, one can adapt to the issues brought on by climate change, such as extreme temperatures and changing weather patterns. Basically, the people contributing the most to climate change will not be as affected, and more vulnerable ( and less guilty) people will pay the price. Ben & Jerry’s has joined the movement to help benefit the environment, society, and humankind.

Interview

Sean Greenwood, Grand Poobah of Public Relations