Clean Tech
Research suggests ship pollution contributes to more than 250,000 premature deaths each year around the world, and at least 1,300 premature deaths each year in Los Angeles and Long Beach. Low-income communities of color who live near the ports are especially affected.
While the city doesn't have any regulatory power over maritime rules, the move places pressure on some of the world's biggest retailers and their supply chains. The resolution asks shippers ferrying everything from televisions and cars to sofas and microwaves to "immediately adopt" existing emissions-reducing technologies, such as wind-assisted propulsion and slow-steaming.
It also calls for a broader effort to create zero-emission shipping corridors along the California coast and across the trans-Pacific trade route.
dot.LA spoke with Christopher Cannon, chief sustainability officer of the Port of Los Angeles, to discuss the resolution, and why he thinks all parties will do what they can to achieve such a drastic industry overhaul.
Port of Los Angeles Chief Sustainability Officer Christopher Cannon
dot.LA: In layman's terms what does this new resolution do?
Christopher Cannon: It really encourages the industry to move toward low carbon and zero carbon fuels as soon as possible and this is important.
We think that the move to low carbon fuels can happen pretty quickly, like in the next few years.
We see, for instance, that some of the shipping lines are talking about using methane feedstock that arrived from renewable sources starting in 2024.
The goal to get to 100% zero emission ships by 2030 is very aggressive.
Technology does not exist today to do that, but it does not mean that it isn't a good goal and an important goal, and we want to push ourselves and the maritime industry to get there.
Rapidly decarbonize the maritime shipping industry to create zero emissions corridors—we like that, and we want to create green shipping corridors. You start doing this stuff now, not waiting until zero emissions is possible. You start doing low carbon and even zero carbon elements in a shipping corridor.
Maybe not everything is fully zero [emissions], but you can have parts of it be zero. A lot of different activities can occur from the movement of cargo from one port to another: the loading and unloading, the sorting.
All the activity associated with moving that ship can be green and we can reduce the carbon footprint, we can decarbonize all of it with best management practices.
Photo courtesy of the Port of Los Angeles.
Does the city have any enforcement power, say if they adopt legislation, in this domain?
No, we don't run the ships and we don't control the ships. We don't regulate the ships. They are regulated by international bodies, but we certainly have the ability to exert influence on the shipping industry and on international regulators like the International Maritime Organization.
We're engaged in discussions with them on these goals. While we can't enforce, we certainly can influence what the industry does, and we will do our best to work with the industry and help to help them transition to these cleaner fuels.
What is the shipping industry saying about the push to zero emissions?
They tell us that their customers want the same thing, that their customers want low carbon and zero carbon and zero emission ships, too.
They are as interested in doing it as we are because that's what the Home Depots and Amazons are pushing for, too, and the reason those customers are pushing for it is because people like you and I, who are ultimately buying products, we're pushing for it. Everyone wants to do it.
It's just a matter of getting the technology to the point where it can be deployed. The industry is testing this equipment now. There are different pieces of the journey. There is the cargo handling equipment, there's the tugboats. There are other parts of the journey where we can improve efficiency and reduce carbon and get to zero carbon emissions, and we want to get every part of that journey.
We want zero emissions ultimately but you want to start out with low carbon right away, then get to zero carbon as quickly as you can, then get to zero emissions as quickly as you can after that.
Photo courtesy of the Port of Los Angeles.
Is there any concern that this could impact shipping in any way?
No, we hope not. I mean the industry, as I said, their customers are pushing for the same thing so their customers certainly don't want the delivery of their cargo to be adversely affected, so the shipping lines don't want to do that either.
It's pretty exciting because it's a case where everyone seems to now realize that we have to reduce our carbon footprint as soon as we possibly can in order to fight climate change.
So we're starting to see consumers are demanding it. Manufacturers of goods are seeking it. Goods and movement, the industry is hearing a strong message from their customers that they want it, so the goods and movement industry, the shipping lines, the trucks, even the trains, everybody is being pushed to do this and so we, too, want to push as hard as we can.
These resolutions, like the one from the City Council, are important because they send a message too that this is something that everybody wants.
Are there enough resources to make the technology a reality?
It's expensive. Private industry has to invest mostly, to be honest with you, but I think there's a role for government to help incentivize this activity through grants and other kinds of inducements; certainly ports can help to incentivize those by offering favorable rates and other things for people who are moving cargo in a manner that is convenient and ultimately with a zero carbon footprint.
The technology is expensive but I think everyone believes that once the technology becomes commercialized and ready for widespread deployment, that you'll have a reduction in cost.
This interview has been edited for length and clarity.
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On Nov. 20, 2020, she decided to embrace the risk and joined the team.
But she never expected she'd be shut out of the planning process for the launch of the R1T – the company's signature product. Yet that's exactly what Schwab says happened in a lawsuit filed against Rivian in the Orange County Superior Court on Nov. 4.
In the scathing 14-page lawsuit Schwab alleges that she started in a lofty role at a luxury auto maker but quickly became ostracized for what she came to see as a misogynistic culture that marginalized women. Her allegations of gender discrimination echoes other discrimination lawsuits that have dogged some of the largest tech startups amid rapid expansion and public offerings.
Schwab claims she was effectively excluded from big-picture decision-making — despite her repeated warnings that delivery dates wouldn't be met and financials that weren't penciling out.
The first court hearing with Judge Stephanie George is set for April 13.
At first, Schwab said in the lawsuit she was involved in discussions with company leaders, including founder and CEO RJ Scaringe. Her first employee evaluation was also favorable, noting that she worked well with others at Rivian "perceived to be difficult or too challenging to work with," according to the lawsuit.
But eventually the conversations with Scaringe stopped and a boy's club of close friends and early employees excluded her from meetings Schwab felt she should be in to do her job.
"This emphasis on culture resonated deeply with me as I believe that the greatest brands and companies will survive and thrive not just by the products they make but the culture they create to find and keep great talent," Schwab wrote in a Medium post published the day she filed her suit.
Through her attorney, David Lowe of Rudy Exelrod Zieff and Lowe in San Francisco, Schwab declined a request to comment further on her allegations. Rivian also declined to comment, noting that it is in a quiet period ahead of its initial public offering this week.
Founded in 2009, Rivian bills itself as a company that "want[s] to make a difference," and one for which a "collaborative culture is critical... to deliver on our mission."
Schwab's lawsuit suggests the fledgling automaker has failed to live up to that goal.
After determining the price of the R1T and related R1S SUV was too low and the company would lose money as it scaled up, Schwab told Rivian's finance director of the problem and worked to determine how much of a loss the company would take, according to the complaint. She claims she was ignored when she raised the red flag to her supervisor, Chief Commercial/Growth Officer Jiten Behl. But when a male colleague alerted Behl, he agreed the vehicle price would eventually go up.
The claim also states that Schwab at one point asked CFO Claire McDonough to attend a meeting about Rivian's sales projections and ensure the targets were reasonable. Schwab said McDonough was excluded from those meetings, too.
Schwab's suit states she told Behl the first vehicles off the production line shouldn't go to customers, but to Rivian employees who could identify any manufacturing issues that could be resolved before they reached the public. Initially brushed off, the company later adopted that plan.
She also warned that Rivian would miss its launch date target, after already being pushed from early 2020 to early 2021. In July, the company said it would deliver a few R1T trucks in September, with general deliveries starting in January, to comply with the S-1 filing stating 1,000 vehicles would reach customers in 2021.
And as Schwab gradually lost more contact with other Rivian leaders and had her tasks reassigned to men and other departments, she learned of other top female employees who weren't invited to meetings they felt they should be part of.
In mid-October, Schwab informed HR about her recent experiences. She was terminated days later by Behl after weeks of emails and communications that the complaint alleged were "perplexing," "hostile" and "inappropriate."
As part of her compensation package upon being hired in 2020, Schwab received a generous stock option plan from Rivian.
The Rivian lawsuit is just one of many instances recently in which women and employees of color at tech firms have pushed back against what they say are discriminatory and hostile workplaces.
Five women filed lawsuits against Amazon—which just this month inked a deal with Rivian—in May alleging discrimination and harassment from white managers at different offices. In August, Tesla was ordered to pay $1 million in a racial discrimination suit by a worker at its Fremont assembly plant who was subjected to slurs and epithets. Then in October, it lost another suit from a Black elevator operator after ignoring complaints of discriminatory behavior. The automaker was ordered to pay $137 million in that case.
"That is why Rivian's retaliation against me is so heartbreaking," Schwab wrote in her Medium post. "In addition to harming my family and me, it has the potential to deter other women from pursuing opportunities or from speaking out about discrimination."
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