Financial Times
Published: February 10 2010 02:00 | Last updated: February 10 2010 16:27

Suppliers of oil sands fuel shunned
By Sheila McNulty in Houston

Two big US companies have decided to avoid suppliers that source fuel from Canada’s oil sands to curb their carbon footprints.

The decisions by Whole Foods Market, an organic grocery chain, and Bed Bath & Beyond, a household goods company, underline how industry is moving to fill the void left by inaction at Copenhagen and the failure of the US Congress to limit carbon emissions.

Both companies are responding to ForestEthics, a non-governmental organisation that last year began campaigning to lead the US corporate sector away from oil sands fuel, which has a higher carbon content than conventional crude oil.

Industry and environmentalists disagree on how carbon-intensive oil sands fuel is, but both agree it is higher than traditional crude. The oil sands represent the largest proven oil reserve outside Saudi Arabia and reduce Washington’s dependence on Middle Eastern fuel.

“There’s going to be constant tension between environmental issues and security of supply,” said Robin West, chairman of PFC Energy, a consultancy.

ForestEthics is negotiating with more than 30 companies to adopt similar policies.

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