An investment in the environment can also be a good investment in business.
by Chip Sutton and Ryan Anderson
Wildfires once ran unchecked through Northwest Indiana's landscape. Early settlers in Jasper County chronicled “the grand illuminations nightly exhibited in dry weather, from early fall to late spring, by numberless prairie fires. The whole horizon would be lighted up around its entire circuit.” It only took 50 years for settlers in the area to completely change the landscape of Jasper County after enforcing a widespread suppression of wildfire in the 1850s, thereby allowing dense forests to take over, out-competing prairie flowers and grasses.
If not for the partnership between The Nature Conservancy and NIPSCO–Northern Indiana's primary energy provider–the prairies of Jasper County would remain a place only recalled from historical documents.
“I don't think most people in Indiana realize how many different plants and animals can be found in the northwest part of the state,” says Mary McConnell, state director for The Nature Conservancy's Indiana Chapter. “And this diversity is due to the amazing prairies and unbelievable wetlands scattered throughout the region. Despite heavy agriculture, development and industrialization, this part of the state harbors incredible diversity, and we've been very active here, working for decades to protect this rich natural heritage.”
In 1995, NIPSCO and parent company NiSource Inc. donated 650 acres of land in Jasper County to The Nature Conservancy, and since then, the organization has been restoring prairies, savannas and wetlands at the preserve, often using controlled fires. With The Nature Conservancy's help, NiSource has been managing an additional 162 acres adjacent to the preserve.
“Our work in the area has included acquiring biologically rich areas, assisting our many conservation partners to purchase land and advising large industry on how to better manage their land,” McConnell says. “Business and industry are key to helping us achieve our conservation mission in Northwest Indiana.”
NIPSCO's president, Kathleen O'Leary, agrees. “NIPSCO is focused on building a legacy of sustainable economic growth, social responsibility and environmental stewardship,” says O'Leary. “Supporting conservation efforts such as NIPSCO Savanna contributes to the long-standing relationship between our employees, our companies and the local communities that we serve.”
Investing in Nature
Though they may seem to operate singularly, nature, industry and communities do not work independently. Partnerships between these entities, such as seen in the multimillion-dollar project of the NIPSCO Savanna, have translated to cleaner waterways, increased wildlife habitat and greater recreational opportunities. In return for preserving some of Indiana's special places, businesses receive crucial services from natural areas, including cleaner water, reduced water flow during storm events, cleaner air and reduced stress in workplaces, creating a healthier environment for employees.
In his recently released book “Nature's Fortune” covering the interplay of nature and the economy, The Nature Conservancy's president and CEO, Mark Tercek, argues that partnerships between nature, industry and communities will flourish if businesses and industries continue to recognize and value the economic benefits of conservation.
“Conservation and business need a more sophisticated and nuanced calculation, one based on sound financial principles and deeper appreciation for how nature contributes to economic and ecological well-being,” Tercek says. “When conventional economics leaves natural capital out of the equation, both ecosystems and the economies built upon them are imperiled.”
In June, four governors and one Canadian premier met to commit to protecting the Great Lakes and strengthening the region's economy. In his remarks to the Council of Great Lakes Governors, Tercek stated, “The correlation between healthy ecosystems and healthy economies could not be any more evident than it is in the Great Lakes.”
An incredible resource for both Canada and the United States, the Great Lakes account for 20 percent of the world's fresh water and provide drinking water to 35 million people. With 1.5 million people having jobs directly related to the lakes, this accounts for more than $62 billion in wages. Boating and boating-related activities account for nearly $1.6 billion in direct spending, thus supporting well over 100,000 jobs and fueling local economies.
Rejuvenating the Grand Calumet River
Spearheaded by the federal Great Lakes Legacy Act of 2002, U.S. federal and state agencies have invested millions of dollars into the restoration and preservation of Areas of Concerns (AOCs) in the Great Lakes region. Designated as severely degraded ecosystems, AOCs pose multiple health risks and jeopardize local economies.
Stretching 13 miles across the heavily industrialized cities of Gary, East Chicago and Hammond, the Grand Calumet River–an AOC today–once supported diverse communities of fish and wildlife. Since the early 20th century, these communities suffered from the excessive amount of municipal and industrial effluent that discharged into the river, much of this waste discharge occurring prior to Clean Water Act regulations in the 1970s.
The Grand Calumet has been considered the most-polluted of the 43 AOCs in the Great Lakes. Prior to remediation, the river contained polychlorinated biphenyls, polynuclear aromatic hydrocarbons and heavy metals such as mercury, cadmium, chromium and lead in the soils and river bed sediments.
A report from The Delta Institute (a nonprofit devoted to creating a vital center of the green economy in the Great Lakes region) determined that, as a result of multiple sources of degradation, the Grand Calumet River placed a large economic burden on communities by increasing health care costs, suppressing real-estate values and depleting resources for the once successful fisheries of nearby Lake Michigan.
Researchers from the University of Illinois at Chicago found that households near the Grand Calumet River in Gary sold for a discount relative to households further away from the waterway. The Delta Institute report also determined that removing and remediating the majority of the sediment in the river could increase home values by an average of 27 percent, potentially increasing the market value of nearby homes and vacant lots in total by more than $5.9 million.
Due to its economic importance, local, state and federal governments saw the need to restore the Grand Calumet River. Following a $56 million settlement with nine parties responsible for polluting the river, the U.S. Environmental Protection Agency collaborated with the U.S. Fish & Wildlife Service, the Indiana Department of Environmental Management, the Indiana Department of Natural Resources, Save the Dunes, the Shirley Heinze Land Trust and The Nature Conservancy to remediate the river using Legacy Act Funding.
“The Grand Calumet dredging project goes well beyond remediating contaminated sediment discharged into the waterway for over a century,” explains Kris Krouse, executive director for the Shirley Heinze Land Trust. “This project will vastly improve air and water quality and create adequate conditions for birds, fish, plants and people to thrive in an ecosystem that is unique to the United States. It will also have positive implications on the economy and health of our region.”
In the latest stretch being cleaned up between Kennedy and Cline Avenues, EPA will remove contaminated sediment through dredging and landfill disposal before capping the remaining contaminated sediment. Adjacent marshes and dune and swale habitat will also be restored using a combination of Legacy Act and Great Lakes Restoration Initiative funding as well as private funding.
Enhancing “Green” Infrastructure
In addition to remediating the damage already caused by pollution runoff, much is being done to stop or slow runoff through programs that enhance Northwest Indiana's green infrastructure: restoring wetlands, rare dunes, swales and forests that surround waterways.
The city of Valparaiso recently matched a $607,000 grant from the federal Great Lakes Restoration Initiative (GLRI) with $126,000 of its own funds to improve the capabilities of its stormwater detention in the Thorgren basin. In addition to collecting water from more than 500 acres of residential, industrial and commercial properties, the remodeled basin utilizes native wetland and prairie plants to clean the water before entering the ground water that works its way to Lake Michigan.
“It is our hope the Thorgren basin naturalization project will be used as a model for similar projects throughout Northwest Indiana, both in design of new storm water basins and the retrofit of existing ones,” says Jennifer Birchfield, water program director for Save the Dunes. Birchfield helped the city obtain the GLRI grant.
Whether it holds excess storm water or brings comfort to the eye of the beholder, nature benefits Northwest Indiana's businesses and communities in more ways than dollars and numbers. Projects that preserve and restore natural landscapes show how industries, communities and governments can collaborate to benefit society economically, socially and physically.
The Nature Conservancy is working with businesses to protect ecologically important lands and waters, thus benefitting the local economy of northwest Indiana. The organization's Corporate Council for the Environment–a partnership of more than 40 Indiana corporations, including NIPSCO–gives corporations an opportunity to support its important conservation work.
“Businesses know that clean water, wildlife habitat and natural places for inspiration and recreation are essential to recruiting knowledge workers to the region,” says McConnell. “A healthy environment is paramount to a great quality of life. Healing and protecting our lands and waters will help bring the best and brightest people to Northwest Indiana.”
