[co-author: Xahria Santiago]
Though environmental justice (EJ) has been a focus of federal and state activity in the environmental sector for several decades, a surge of regulatory and funding activity began in 2020 and spans executive orders, updated screening tools, new state laws and guidance documents, and strategic plans in a whole-of-government approach. As just one example of the wide-ranging opportunities, in late February 2023, the Biden-Harris Administration announced additional funding of $550 million from the Inflation Reduction Act towards a new Environmental Justice Thriving Communities Grantmaking program focusing on community-based projects to reduce pollution.
EPA defines EJ as:
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. This goal will be achieved when everyone enjoys:
- The same degree of protection from environmental and health hazards, and
- Equal access to the decision-making process to have a healthy environment in which to live, learn, and work. (https://www.epa.gov/environmentaljustice).
The intense activity may feel new to many, particularly for those entities in the regulated sector. The current state, however, is the culmination of decades of work by many in the trenches. The 1968 Memphis Sanitation Workers’ strike, led by Reverend Martin Luther King, Jr., is often considered the origin of the modern EJ movement. Among the dozens of other historic milestones in the movement are the 1982 protest against the construction of a PCB landfill in Warren County, North Carolina, where more than 500 nonviolent activists were arrested, and the 1991 First National People of Color Environmental Leadership Summit.
Though EJ is not a new concept, novel and important EJ initiatives have emerged over the last 2 years. Among the most noteworthy are the Climate and Economic Justice Screening Tool, the White House Environmental Justice Advisory Council, the Justice40 Initiative, and associated funding opportunities for hundreds of programs, such as:
These and many other programs focus on what the federal government can do to benefit communities with EJ concerns. When it comes to the regulated sector, EPA and other federal and state agencies largely focus on enforcement and permitting. What can a business do if it wants to voluntarily make a meaningful contribution to EJ? This is the central question addressed in this article.
From the outset, we recognize that many in the regulated sector already are making meaningful differences to communities with EJ concerns. Some of the drivers behind their actions are the core beliefs of key individuals; an organization’s underlying mission, vision, and values; expectations of employees and/or shareholders; concerns for the firm’s reputation; and commitment to environmental, social, and governance metrics. The remainder of this article offers concrete ways in which businesses can make differences for communities with EJ concerns.
- Start with a Corporate EJ Policy
A corporate EJ policy clearly communicates how EJ aligns with a company’s values. In creating a strong EJ policy, businesses might begin by deciding what role they wish to play, if any, in furthering and/or sustaining EJ action in their communities. From there, EJ principles can be used to guide the development of a comprehensive policy that involves measurable objectives and performance plans that go beyond diversity, equity, and inclusion in the workplace and extend to the broader community through hiring practices, community engagement, and investment.
The success of any corporate policy hinges on accountability. The same holds true for corporate EJ policies. Identification of key individuals and roles is fundamental, as is communicating that policy to the stakeholders who hold those corporate leaders accountable. A task force or committee may be defined to identify and prioritize the actions that the company will take to live by its policy, as well as to define and track associated expenditures and to revisit the policy and EJ actions on at least an annual basis.
- Set Up Grants
Grants are a direct way to provide support to individuals and organizations actively working to address EJ concerns in their communities. Patagonia and IKEA, for example, offer grants to organizations that work with local communities to protect the environment and address EJ concerns both within the U.S. and internationally. Patagonia Action Works supports grantees working on issues ranging from reducing pollution of land and water, generating solutions to climate change and EJ, advancing renewable energy and sustainable communities, and increasing biodiversity and species preservation. The IKEA Foundation provides grants to address climate action, renewable energy, and livelihood and resilience of communities.
- Build Relationships with Communities
Fostering relationships between a business and its community is an important component of EJ. Community engagement is fundamental to building a relationship that benefits both the business and the community. Building trust, transparency, and credibility within the community through thoughtful communication will help convey to community members that their opinions are valued and partnership is possible.
Principles of Community Engagement published by the National Institutes of Health suggests that the following activities best precede community engagement efforts. First, define the purpose behind the engagement effort, the goals you wish to achieve, and the populations you intend to engage. Next, take the time to learn about the community—far beyond what is revealed by data. Explore the community’s culture, social networks, political and power structures, history, and values. Last, it is important to understand the community’s perception of the engagement efforts and those who are executing them. Many communities with EJ concerns are understandably reluctant to trust those they perceive to represent the oppression they have experienced. Engaging with the community is not about acting in a business’s self-interest, but rather about collaboration, partnership, and working together to develop a relationship that benefits both parties. Fundamental to all engagement efforts are listening actively and empathetically and acknowledging past mistakes. The International Association for Public Participation offers extensive training, resources and certification on effective community engagement.
- Commit to Local Skill Training and Hiring
Local hiring can increase the economic stability of a community, which in turn can help it address EJ concerns, for example, by reducing the effects of and increasing preparedness for climate-related disasters. Project labor or community workforce agreements can provide a framework for creating partnerships with the community that lead to job creation and an improved local economy (see https://www.georgetownclimate.org/adaptation/toolkits/equitable-adaptation-toolkit/local-hiring-requirements-or-incentives.html). Such agreements can reduce local unemployment in underserved communities and bolster community resilience. Jobs readiness programs such as EPA’s Superfund Job Training Initiative, which provides training to communities affected by hazardous waste sites regulated by the Superfund and Resource Conservation and Recovery Act programs, provide a pool of trained workers that corporations can look to for help achieving local hiring goals. Examples of corporate policies related to this topic are needed to identify successful methods, lessons learned, and expected outcomes in local hiring and/or skills training in the community to help guide others to increase or improve their practices in this regard.
- Implement Supplier Diversity Programs
The concept behind supplier diversity is that businesses buy numerous products and services and, if greater purpose is brought to vendor selection, the impact of financial inclusion can be accelerated with immediate positive impacts on local communities. Though the scope and opportunities vary across procurement programs, example actions include:
- Establishing internal positions with specific goals related to diverse suppliers
- Actively reaching out to identify and attract diverse vendors to expand the supplier database
- Stating diversity goals in requests for proposals
- Enhancing reporting and tracking of diversity goals
- Developing diverse vendor validation processes
- Convening educational forums for suppliers
- Providing counsel on business processes and procedures, marketing and business development, and technical quality and innovations
- Offering transparency in procedures for invoicing
- Committing to paying vendors quickly.
Examples of businesses that have implemented supplier diversity programs include the American Heart Association, AMN HealthCare, State Farm Insurance Co., PwC, and McDonalds.
- Opportunities for Environmentally Regulated Businesses
The above approaches can be applied to businesses across a range of industries. Additional tools are available for businesses that are subject to environmental regulation. Use of supplemental environmental projects (SEPs) was restored by the U.S. Department of Justice (DOJ) in May 2022. SEPs are voluntary projects funded by a company to help reduce or abate adverse consequences to the environment or to public health, often helping to settle civil penalty cases where an environmental law has been violated. The DOJ strategy for allowing this tool is based on the premise that SEPs will directly benefit the communities most impacted by the violations; those communities often have EJ concerns.
Natural resource damage assessments (NRDAs) are another framework within which businesses may be able to address EJ concerns. According to the Code of Federal Regulations, NRDAs are used to “determine the extent of injuries to natural resources from hazardous substance releases or oil discharges, and to determine appropriate ways of restoring and compensating for those injuries.” Under the Comprehensive Environmental Response, Compensation and Liability Act, the Oil Pollution Act, the Clean Water Act, and many state statutes, the measure of damages includes the cost required to restore the natural resources to their baseline condition and to compensate the public for the interim loss of resources due to spills or releases of contaminants. Businesses and natural resource trustees negotiate cash settlements and/or restoration projects to compensate the public for natural resource injuries. Provided those projects have a nexus to the injury, such projects can simultaneously address EJ-related objectives. For example, a project designed to restore coastal wetlands also would likely mitigate flooding and protect flood-prone communities. Rehabilitation of a recreational trail could provide increased access to parks or culturally important areas for communities with limited open space.
Conclusions
Many regulated businesses are actively pursuing EJ-focused goals in their broader communities. Examples of direct actions that businesses can take include fostering relationships with their communities, funding targeted grants, prioritizing use of diverse suppliers, and initiating local jobs training and hiring programs. SEPs and NRDA restoration projects are examples of frameworks within which environmentally regulated businesses can achieve EJ-focused objectives. As EJ initiatives become more prominent in the decision-making of state and federal agencies, businesses with EJ-focused corporate policies in place and strong relationships with their communities will be best positioned to respond in a meaningful way and make a real difference in their communities.
