CSR today december 2014 sample issue by Rajesh Tiwari

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publisher’s note

Swachh Bharat Mission Makes Sense

I Rajesh Tiwari Publisher rt@iccsr.org

For the campaign to be successful, it has to be holistic involving all citizens of the country. It would also have to drill down to address the root cause of uncleanliness in India.

n the 80s it was said that any Indian who traveled to the US or Europe was sure to receive a culture shock. I would say Indians still get a shock treatment when they travel to any developed country. The distress today, however, is not so much on account of language, information or technology as it is on account of cleanliness. The intensity of the shock is even greater when they return home, and are struck in the face by the all-pervasive filth. Prime Minister Narendra Modi is perhaps India’s first PM to have decided to tackle this scourge of uncleanliness and filthiness at the national level. On October 2 (Mahatma Gandhi’s birth anniversary), he launched the Swachh Bharat Mission, a mass movement for create a clean India. While launching the campaign, Modi said, “I urge every one of you to devote at least hundred hours every year, that is two hours every week towards cleanliness. We can’t let India remain unclean any longer. On 2nd October I myself will set out with a broom and contribute towards this pious task.” He further added, “Today, I appeal to everyone, particularly political and religious leadership, mayors, sarpanchs and captains of industry to plan and wholeheartedly engage in the task of cleaning your homes, work places, villages, cities and surroundings. I request your active support and participation in our collective quest to make a Swachh Bharat.” Modi wants to pay tribute to Bapu on his 150th birth anniversary in 2019 through

a clean India. It is estimated that Rs 2 lakh crore would be spent on the mission with a major portion (Rs 1.34 lakh) being spent in rural areas and the remaining Rs 62000 crore going to the urban regions. It is beyond doubt that the campaign makes sense. However, its execution will be a daunting task. Despite Indians culturally being clean people, India ranks amongst the most polluted and dirtiest countries in the world. The government has its task cut out. For the campaign to be successful, it has to be holistic involving all citizens of the country. It would also have to drill down to address the root cause of uncleanliness in India. Although achieving the end goal is tough, the results would be worth the effort. There are several take-aways for a clean nation. A clean India will boost tourism (foreigners are very particular about hygiene and cleanliness), improve health (unhygienic conditions breed diseases), enhance individual productivity (a healthy mind resides in a healthy body), proliferate clean technology (focus on cleanliness is directly proportional to in the use of clean technologies) and ramp up Foreign Direct Investment. While the success or failure of most of the other initiatives of the government may not be in our hands, the fate of this campaign certainly hinges on us. Let us all (individuals and corporates) support Modi in his endeavor. Transforming India into Singapore in a short timeframe of five years may be quite a challenge but as they say a job well begun is half done!

December 2014 | CSR Today | 1

Contents

08 cover story

december 2014 | vol. 02 | issue 05 Printer and Publisher: Rajesh Tiwari EDITORIAL Consulting Editor: Y Singh INDIAN CENTRE FOR CSR ADVISORY BOARD Pankaj Pachauri, Ted McFarland, Mag. Martin Neureiter, Chandir Gidwani, Lou Altman, Kingshuk Nag, Toby Webb, Anil Bajpai, Nikos Avlonas, Rajesh Tiwari, Satish Jha, Amit Chatterjee, Jitendra Bhargava, Namita Vikas, Dinesh N. Awasthi, Kapil Dev, Dr. Kamal Kant Dwivedi, Sanjiv Kaura, Suhel Seth PRODUCTION, CIRCULATION AND LOGISTICS Hardik C

“CSR is a commitment to the poor, not a commitment to revenue and profit”

The Hans Foundation is one of India’s largest and experienced funds supporting sustainability initiatives. It is ready to share its learnings and guide corporates in their CSR journey.

CSR LEADERSHIP

06 Sustainability Indices: Benchmarks of Listed Companies’ Future Viability

csr society

14 Jewellery industry takes steps to eliminate “conflict gold” 16 China Needs 1,000 Nuclear Reactors to Fulfill Climate Pledge 18 When Corporate Giving Means Donating Half Your Work 20 How to engage millennials?

CASE STUDY

22 How Hyatt is fostering sustainability from the ground up

sustainability

29 Maintaining a competitive procurement strategy while delivering on sustainability 32 The bonfire of the subsidies 34 Who owns sustainability’s best ideas?

sustainability capital

38 The Business Case for Rethinking Fracking 40 The need for resilience among businesses in Asia 42 Green Climate Fund needs to gain momentum

REGULARS

01 Publisher’s note 03 CSR News 44 Book Review

HEAD OFFICE CSR Today Indian Centre for CSR, 601, 6th Floor, Technocity, Plot No. X4/5 A, TTC Industrial Area Mahape, Navi Mumbai- 400701 (India). Tel: +91 22 2778 8481 / 82 Fax: +91 22 2496 6803 Email: editor@csrtoday.net Website: www.iccsr.org REGIONAL OFFICES NEW DELHI Regional Director: V Chopra Assistant Vice President: Dr. Rupal Tyagi MUMBAI Vice President: Chaitali Chatterjee Circulation: C.R. Tiwari Printed, Published and Edited by Rajesh Tiwari on behalf of Indian Centre For Corporate Social Resposibility, Printed at Jayant Printery, 352/54, J.S.S. Road, Murlidhar Temple Compound, Near Thakurdwar Post Office, Mumbai 400 002 and Published from Indian Centre For Corporate Social Resposibility, 106/A, Nirman Kendra, Plot No.3, Dr. E. Morses Road, Mahalaxmi Estate, Mahalaxmi, Mumbai 400 011. Editor: Rajesh Tiwari

Disclaimer The publisher, authors and contributors reserve their rights in regards to copyright of their work. No part of this work covered by the copyright may be reproduced or copied in any form or by any means without the written consent. The publisher, contributors, editors and related parties are not responsible in any way for the actions or results taken by any person, organisation or any party on basis of reading information, stories or contributions in this publication, website or related product. Reasonable care is taken to ensure that CSR Today articles and other information on the web site are up-to-date and accurate as possible, as of the time of publication, but no responsibility can be taken by CSR Today for any errors or omissions contained herein.

CSR News Airtel Nigeria Named Best Company in Education CSR

n another feather to the cap of the Indian private sector in Africa, Airtel Nigeria has been adjudged the best company for corporate social responsibility (CSR) in education by the Social Enterprise Report Awards (SERA) for 2014 beating other companies including Samsung, Etisalat and Oando at a ceremony in Lagos, a report in Business Standard said. The SERA awards, also known as the Nigeria CSR Awards, are one of the country’s highly acclaimed awards recognised by Industry experts. In a citation by the organisers, Airtel’s Adopt-a-School programme and the Bridge IT project were described as some of the key initiatives of the telecom major which has contributed to the development of education in the country. Receiving the award, Segun Ogunsanya, managing director and chief executive officer of Airtel Nigeria, said the company placed a high priority on its CSR programmes which cut across critical areas of societal needs such as education and youth empowerment among many other initiatives. He commended the commitment and sacrifices of all staff of the company which he said had been pivotal to the successes of the compa’y’s CSR efforts, adding that, the company would not relent in its drive towards an improved society. “At Airtel we place strong emphasis on giving back to the society because we know that government alone cannot continue to shoulder the huge responsibilities,” Ogunsanya said. “For this reason we prioritise our CSR focus on developing education, health, environment and sports as well as empowering youths in Nigera.”

John Abraham to Start CSR Activities to Save Rhinos

ollywood star and ISL or activities he will carry out franchise NorthEast to protect the animals from United FC co-owner poachers or any other threat. John Abraham has said he will “I am an animal activist. I am start a CSR campaign to save involved with save tiger project. the world famous one-horned I am also doing a documentary rhinoceros in Assam from on tigers. So I am very much January next year, a report in interested to do something for The Indian Express said. “I am the rhinos and I will surely take seriously looking at projects to John Abraham it up,” Abraham said. He said as help save rhinos in Assam. It NEUFC is currently busy with is in back of my mind. From January, I will playing ISL matches back-to-back, so it will start a CSR activity and campaign for rhinos,” be difficult to start anything related to the Abraham said at a press conference recently. rhino campaign immediately, but it will be The 41-year-old actor, however, did not begin from January next year once the first share details on what kind of campaigns season of the tournament gets over.

Odishabased Utkal Alumina Bags Best CSR Award

he Aditya Birla Group Company, Utkal Alumina has bagged the “Think Media’s Best Case Study Award – 2014” in Chhattisgarh CSR Congress – 2014, held at Raipur recently on the theme of “CSR and Inclusive Growth – Ahead Together”. The Company has been awarded for its remarkable contribution towards providing quality health care to the people at its periphery. On behalf of Utkal Alumina,.Tirupati Patnaik, Manager – Medical and Dr.Mayadhar Sahoo, Medical Officer participated in the event and received the Award, a report in OdishaDiary said. Under Health Care initiatives, Utkal Alumina has established one full-fledged round the clock Health Centre with laboratory facility at Nuapada, taking three regular doctors and paramedical staffs. Specialist Doctors from Gynecology, Medicine & Pediatrics are also extending weekly service through the Health Centre. Patients from more than 30 villages, mostly from underprivileged class of society, are depending upon this center. This Health Centre has extended treatment service to 53939 patients in first six months of the FY 2014-15, on an average OPD outflow of 250 patients per day. All the services including medicines are given free of cost to the patients. For this noble initiative, the Think Media Inc. has awarded this coveted award to Utkal Alumina for this year. December 2014 | CSR Today | 3

csr leadership

Sustainability Indices:

Benchmarks of Listed Companiesâ&#x20AC;&#x2122; Future Viability

hen companies manage their business sustainably, not only the environment, the society and its employees benefit. Their performance in the capital markets is a winner too, and this observation is not just wishful thinking on the part of eco-activists or social interest groups. It is based on an evaluation of over 200 studies published in September 2014 by London, UK, asset 6 | CSR Today | December 2014

manager Arabesque and the University of Oxford. Eighty percent of the studies evaluated demonstrated that systematic sustainability management exercises a positive influence on share prices. So potential investors would be well advised to take environmental, social and governance (ESG) criteria into consideration when making investment decisions. The British metastudy has good news for companies too. Ninety per cent of the studies prove that sustainably managed companies can raise capital at significantly lower cost. This, then, is a real win-win situation. Against this backdrop it is hardly surprising that the market for sustainable capital investments is growing strongly. Stock market professionals refer to them as socially responsible investments, or SRIs. For 2014 Nasdaq OMX estimates the volume of professionally managed SRI funds at nearly USD 1.9 trillion around the world, corresponding to 10.3 percent of the entire capital market. Depending on your viewpoint that may not be an

Photo Courtesy: transform.ricoh.co.uk

Potential investors would be well advised to take environmental, social and governance (ESG) criteria into consideration when making investment decisions by daniel schmid

cover story

“CSR is a commitment to the poor, not a commitment to revenue and profit” The Hans Foundation is one of India’s largest and most experienced funds supporting sustainability initiatives. It is ready to share its learnings and guide corporates in their CSR journey.

he Hans Foundation (THF) is a charitable trust fund that was created to provide a source of endowment for not-for-profit organizations in India. As one of India’s largest funds, it has funded hundreds of charitable organizations across the country. The Foundation believes it “values partners’ hard work and funds their efforts, which cater specifically to the needs of underprivileged people in their localities.” The Foundation has such an approach to fund allocation that has a direct impact on the beneficiaries. THF primarily finances small grass-roots organizations that operate directly in the communities that they serve. This ensures that the funds directly impact the people in need. Along with the local organizations, it also supports larger organizations that have a greater outreach. With these organiza-

8 | CSR Today | December 2014

tions, THF aims to develop solutions that are replicable across the country. As Manoj Bhargava, Co-founder, The Hans Foundation, says, “Our experience with our partners has taught us a lot about social development throughout the country. We are actively exploring new and unique projects that will make a large impact in the rural parts of India. The Hans Foundations works hard to identify partner organizations who want the best for the people they serve. Together with our partners, we have enhanced countless lives.” In a freewheeling discussion with CSR Today, Bhargava shares his thoughts on the subject of Corporate Social Responsibility, and how is THF enabling social empowerment in India. How would you define corporate social responsibility (CSR),

especially in India’s context as it is a relatively new/emerging field here?

It’s a great beginning but CSR needs to develop a lot. People typically contribute in issues that are the most fashionable rather than the most widespread. For example, we learned that most of the diseases in India are very preventable through a nutritious diet and clean drinking water. So we are really focused on enhancing agriculture to provide farmers adequate diets and providing them clean drinking water equipment. It’s much more effective than training thousands of doctors to treat diseases that were easily preventable. How do you view the government’s mandated spend of 2% by the corporate sector?

It’s a good start. But I’m not concerned with what other people do.

cover | story

Manoj Bhargava Co-founder The Hans Foundation

We’ve pledged over 90% of our income, and that’s our commitment. We’re not too concerned with how much of their incomes other wealthy people commit. What do you believe are the greatest rewards for corporates when working with CSR and sustainability?

If you’re looking for rewards, you’re doing it for the wrong reasons.

What do you feel are the biggest challenges in Indian when it comes to CSR? How can corporates overcome them?

Indian corporates are still finding their feet when it comes to CSR. How best can they approach the subject?

Finding the right people to manage large-scale programs is the biggest challenge. It’s also very difficult to find honest and dedicated people. Strict guidelines on utilization of funds and careful and frequent monitoring are very important. These will be different for different projects.

Learn from other people that have already succeeded in the field. We’ve found that most of the time you don’t have to reinvent anything. There are so many great organizations with a lot experience. Why not adopt their methods? December 2014 | CSR Today | 9

CSR Society

Jewellery Industry Takes Steps to Eliminate “Conflict Gold”

ajor US jewellery companies and retailers have started to take substantive steps to eliminate the presence of “conflict gold” from their supply chains, according to the results of a year-long investigation published recently. Rights advocates, backed by the United Nations, have been warning for years that

14 | CSR Today | December 2014

mining revenues are funding warlords and militia groups operating in the Great Lakes region of Africa, particularly in the eastern part of the Democratic Republic of the Congo (DRC). In 2010, such concerns resulted in landmark legislation here in the United States aimed at halting this trade, and those laws have since spurred similar legislative pro-

posals in the European Union and Canada. Three of the most problematic of these “conflict minerals” – tin, tantalum and tungsten, collectively known as 3T – are used primarily by the electronics industry. In recent years, that sector has made notable progress in certifying and otherwise regulating its use of these materials. Yet forward movement has been slower on the fourth conflict mineral from the Great Lakes region – gold. “Over two-thirds of the eastern Congo’s 3T mines are conflict-free today,” a new report from the Enough Project, a Washingtonbased watchdog group, states. “Gold, however, remains a major financial lifeline for armed actors. Ninety-eight per cent of artisanally mined gold … is smuggled out of the country annually, and much of that gold benefits armed commanders.” Last year, the report estimates, some eight to ten tonnes of gold were smuggled out of eastern DRC. That would have been worth more than 400 million dollars. Much of this smuggling is thought to take place through

Photo Courtesy: www.zastavki.com

A broader initiative of ensuring responsible business practices through the entire jewellery supply chain, for gold and for all other materials, is underway

case study Hyatt

How

Hyatt

is Fostering

Sustainability from the Ground up

Hyatt has successfully cut energy use and greenhouse gas emissions per square meter and water use per guest night by adopting conservation measures and operational best practices by margie flynn and teddy clements

this lofty goal translate into concrete actions at a corporation that has more than 90,000 employees at 550-plus properties in 47 countries? Would the corporate mindset truly change? Corporate responsibility and sustainability consulting firm BrownFlynn sat down with Gebhard Rainer, Hyatt Hotels Corporation’s executive vice president, chief financial officer and chairman of Hyatt’s Global Corporate Responsibility Council, to find the answer.

hen Hyatt Thrive, Hyatt Hotels Corporation’s global corporate responsibility platform, launched in June 2011, some thought the initiative was little more than a marketing gimmick. Thrive aimed to “make communities places where Hyatt associates are proud to work, where guests want to visit, where neighbors want to live and where hotel owners want to invest.” But how would 22 | CSR Today | December 2014

Hyatt started collecting data on water and energy consumption as early as 1994. In 2006 the company formally launched Hyatt EcoTrack, its global database to track utility data across all of its hotels around the world. However, it wasn’t until mid-2009 that Hyatt also started tracking its greenhouse gas emissions to better understand its environmental footprint. At the same time, Hyatt began to quietly implement numerous long-term sustainability initiatives, including setting reduction goals for 2015 and levering its highly engaged base of employees around the world to identify sustainability solutions that would be locally appropriate. “There is rarely a one-size-fits-all approach [to CSR] as there are too many diverse environments,” Rainer said. “The issues at some

Photo Courtesy: www.scame.com

Changing times call for a new perspective

2014-15 CALENDAR OF EVENTS Indian Centre for CSR, being the pioneer in CSR Training programs has developed special global programs for Indian Corporate to address the growing needs of CSR Compliance and complexities in the evolving world of Sustainability. These courses / Training programs help organizations in sustainment of their competitive advantages and addresses the most important need of their growth. The idea solely aims towards not just helping to compliance but eventually allow corporate to see and evaluate global best practices for enhancing their top line and bottom line. We invite nominations from Executives, NGOs , Corporate, Education Institutions, Government PSUs and other Stakeholders for the Training Courses / Programs for the year 2014-15 TOPIC

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FACULTY: (A) Tobby Webb, Corporate Advisory Board Member of ICCSR, Chairman, Ethical Corporation, Faculty - Birkbeck, University of London, CSR Advisor to British Government advising the Prime Minister (B) Wayne Dunn, Exec. Dir, CSR Training Institute, Professor of Practice in CSR at McGill, Wayne is an award-winning recognized global expert in CSR. Consulting for major industries, governments and international organizations he has worked on over 60 CSR projects spanning six continents and 2 decades including projects in over a dozen African countries. (C) Mr. rajesh Tiwari, CEO & Director General, ICCSR, A Doctorate in Social Administration from USA, Founder, Tikona Digital Networks Pvt. Ltd. , Ex-Group President of Reliance Industries. Also, worked as Private Secretary to Minister of Information and Broadcasting (Government of India)

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FACULTY: (A) Dr. Sanjay Deshmukh, Advisor to ICCSR & Head, University Department of Life Sciences, Mumbai University, is Member of (a) BCUD (Board of Colleges and University Development), (b) Board of Studies in Life Sciences, (c) Academic Council, (e) Faculty of Sciences, (e) Standing Committee for M.M. Sharma Endowment Grants as well as University’s Staff Welfare Committee, and (f) Library Committee of the University. He is also Chairman of the Board of Studies (Ad-hoc) in Environmental Sciences of the University of Mumbai. He is recipient of the prestigious Colombo Plan Award (1993), a Technical Co-operation Award of the United Kingdom. He received in February 2005, the most prestigious LEAD (Leadership in Environment and Development) Fellowship (Cohort 11). Sanjay is the first Teacher of Mumbai University to have been selected for the same. Dr. Sanjay happens to be Founder Trustee and currently Chairman of Konkan Nisarg Manch, an NGO

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SECTOr-SPECIFIC CSr & SUSTAINABILITY TrAINING PrOGrAMS BY GLOBAL FACULTIES Training aims in Instilling awareness on key sustainability topics and areas of concerns and integrate a “common thinking” on sustainability across different organizations within the Automobile Sector

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FACULTY: (A) Irene Daskalakis, Corporate Advisory Board Member of ICCSR. Irene has working experience in the World Bank, European Commission Delegation in Tirana, Albania & executed a project in Public Internal Financial Control, in close consultation with the Albanian Ministry of Finance. Irene has implemented advisory projects, workshops and research in Europe, Middle East, Asia and N. America (U.S.A). Project focus areas include the design of the Corporate Sustainability Strategy, the implementation of Sustainability Assessments and the development of Sustainability Reports (based on the G3 Guidelines of the Global Reporting Initiative, UN Global Compact Principles). (B) Dr. Panagiotis Panagiotakopoulos Panagiotis (Panos), Advisor to ICCSR has extensive scientific knowledge in the fields of Sustainability, Environmental Management, Corporate Social Responsibility, EcolabelStrategies and Organizational Development. He is the Faculty at Democritus University of Thrace and National Technical University of Athens. He is Greece’s National Eco-Innovation Expert for OECD, member of the Scientific Committee of the Institute for Interdisciplinary Environmental Studies, Associate of the Chamber of Environment and Sustainability and a member of the Network of Project Managers in Greece. Dr. P. Panagiotakopoulos has served as assessor of the IPMA International Project Excellence Award, while the Global Reporting Initiative (GRI) has assigned him as a Quality Control Consultant for its Certified Training Programs in Greece. (C) Mr. rajesh Tiwari, CEO & Director General, ICCSR, A Doctorate in Social Administration from USA, Founder, Tikona Digital Networks Pvt. Ltd. , Ex-Group President of Reliance Industries. Also, worked as Private Secretary to Minister of Information and Broadcasting (Government of India)

Timings: 9:00 am - 5:30 pm , Registration begins at 8:30 am For Registrations, contact: Ms. Arpita Singh, Email: registrar@iccsr.org, Mobile: 98200 38878 Tel: +91 22 2778 8481 / 82 | Fax: +91 22 2496 6803 | Website: www.iccsr.org 601, 6th Floor, Technocity, Plot No. X4/5 A, TTC Industrial Area Mahape, Navi Mumbai- 400701 (India). Fees includes lunch, tea, course material etc. • • •

Fees for Residential Programs includes Stay along with other Training facilities. Travel to be organized by the delegate. Service Tax of 12.36% is applicable extra Please contact for Group discounts

TRAiNiNg REgiSTRATiON FORm Please complete the registration form and send it along with payments to: Indian Centre for CSR, 601, 6th Floor, Technocity, Plot No. X4/5 A, TTC Industrial Area Mahape, Navi Mumbai - 400701 (India). Email: ea@iccsr.org, Tel no: +91 22 2778 8481 / 82, Fax no: +91 22 22204 2368. Website: www.iccsr.org NoMiNAtioN DetAilS: Program Name: Training Date: City of the Program:

Name: Designation:

Name: Designation: Company: Contact addres:

PAYMeNt iNFoRMAtioN: Training Fees: Plus Service Tax of 12.36% is applicable: total amount: Payment can be made in the following ways: (Please tick applicable box)  CHeQUe/DD/Cash at the venue (made out to Indian Centre for CSR) Cheque number (Send your Cheque at the above address.)

Drawn on Bank

 Bank transfer Bank Name: HDFC Bank Account Name: Indian Centre for CSR Account number: 00012560004973 RTGS/NEFT IFSE: HDFC 0000001 Bank Address: 101-104 Tulsiani Chambers, Free Press Journal Marg, Nariman Point, Mumbai 400021 Maharashtra  online payment: Please go to our website www.iccsr.org for online registration and payment

For further queries, contact: Ms. Arpita Singh, Email: registrar@iccsr.org, Mobile: 98200 38878

sustainability

Maintaining a Competitive Procurement Strategy While Delivering on Sustainability

Photo Courtesy: blogs.kcl.ac.uk

Many Procurement Executives have become far more aware of the potential that Responsible Procurement can deliver for the companyâ&#x20AC;&#x2122;s bottom line by alis hemmingsen

our challenge is to understand the impact your procurement decisions have on local communities, workers, and the en-

vironment, and then take action to ensure you create a positive impact. Simply speaking â&#x20AC;&#x153;Where did you put your foot and what does the footprint

look likeâ&#x20AC;?. That is what Responsible Procurement is all about. If you plan it well, it can promote sustainability, provide you with cost savings, and protect and enhance December 2014 | CSR Today | 29

SUSTAINABILITY CAPITAL

The Business Case for Rethinking Fracking It’s important that people realize that it’s not just environmentalists who are concerned about fracking. There’s a strong business case against it, too. by richard eidlin

38 | CSR Today | December 2014

Photo Courtesy: publichealthwatch.files.wordpress.com

ou’ve probably heard that fracking is supported wholeheartedly by the business community, and that only environmentalists see problems with it. But that’s not the case. In fact, a growing number of businesses and business groups are finding that there is a strong business case to be made against fracking. Of course, there are some economic advantages to fracking, or hydraulic fracturing, as it’s technically known. As a result of this process, which has allowed drillers to reach fossil fuel reserves that were previously viewed as not economically feasible to tap, the U.S. has boosted oil and shale gas output , reduced energy costs and pushed the country closer to energy independence. It’s gotten to the point where President Obama claimed the U.S. is the “Saudi Arabia of natural gas.” Proponents of fracking also like to note that natural gas, with fewer CO2 emissions than coal or oil, can serve as a “bridge fuel” as the country continues to transition to

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