NEWS: SSC Interviewed for Deliver Magazine

We're delighted to be featured in the August issue of Deliver Magazine, the "the leading online information resource for marketing professionals".

The article, entitled "Sustainable Economics", focuses on how companies should communicate their social and environmental activities to the investment community. Here's an excerpt:

Green investing isn’t new — for 20 years some analysts have regarded socially responsible investing as a proxy for good management — but it has recently gone mainstream. Along with consumers and suppliers, investors also need to know a company’s green initiatives.

But investors aren’t necessarily looking for a totally rosy picture, says Jennifer Woofter, president of Strategic Sustainability Consulting, a Maryland-based firm that helps organizations manage their social and environmental impacts. If anything, she says, reports about a company’s eco-footprint that are too sunny are bound to raise suspicions. Instead, she says, investors just want consistent evidence that the company is committed to gauging and addressing its key social and environmental impacts.

“That means the company is probably doing some good things but also recognizing and dealing with bad things,” Woofter says. Admitting a company’s weaknesses is more effective in sustainability reports than “greenwashing.”

Read the whole article here.

We also want to congratulate Deliver on producing an all-green edition. As the magazine notes:

When we at Deliver® decided to devote an entire issue to eco-friendly marketing, we knew we should do more than just write about it. We needed the magazine to reflect the environmentally conscious efforts we were espousing. It wouldn’t seem fitting to emphasize the “green” potential of a direct mail piece such as this while using all virgin paper, or in a magazine printed entirely with energy from fossil fuels. That we needed 100-percent recycled paper was a given — as was the need for environmentally friendly inks, which, in this instance, are mostly a blend of soy and a mixed vegetable oil package. We also worked with our printer to use paper manufactured with wind-generated energy.

What did going "green" mean for this issue? Deliver cites the following impacts:

— 101,000 Pounds of paper used
— 100% Percentage of post-consumer recycled content
— 969 Number of trees preserved
— 411,862 Gallons of wastewater flow saved
— 2,799 Pounds of waterborne waste avoided
— 45,571 Pounds of solid waste prevented
— 89,728 Pounds of greenhouse gases prevented, net
— 686,800,000 BTU s of energy saved
— 46,622 Pounds of air emissions prevented
— 20 Barrels of crude oil saved

Be sure to check out the other articles in this edition--it is chock full of green marketing commentary, suggestions, and analysis. Enjoy!

NEWS: Women and the Environment

We're always intrigued by the interplay between social issues and environmental sustainability, and so we were especially interested in recent posts from Grist.org and Trendwatching.com about women, purchasing power, and the environment.

Consider these facts:

¨ Consulting firm A.T. Kearney estimates that women determine 80 percent of consumption, purchase 60 percent of all cars, and own 40 percent of all stocks.

¨ Women are up to 15 percent more likely than men to rate the environment a high priority.

¨ Women comprise up to two-thirds of voters who cast their ballots around environmental issues.

¨ Women are more likely than men to volunteer for and give money to environmental causes, especially related to public health.

¨ Women report both more support for environmental activists and more concern that government isn't doing enough.

¨ Women support increased government spending for the environment, while men favor spending cuts.

According to Grist (which sites all of the following survey data), polls also show that about 68 percent of American consumers have gone green, preferring health-conscious and environmentally responsible products. "Since 90 percent of women identify themselves as the primary shoppers for their households, and women sign 80 percent of all personal checks, it's safe to say that women are leading a quiet revolution in green consumerism."

What does this mean for you? If you employ women or sell to women (and we know you do!), then looking at ways to be more environmentally responsible can pay dividends—not just in reduced energy costs and less waste, but also in terms of improved customer loyalty, a strong reputation, and happier employees.

News: Can sustainability and globalization co-exist?

In a report released by Shell, Ford, Novo Nordisk, Vodafone, The Skoll Foundation and others, globalization and sustainability are assessed within the frame of 21^st century business. The conclusion: “there is no more business as usual.” The report, entitled Raising Our Game: Can We Sustain Globalization, was released by consulting firm SustainAbility. The report illustrates four different scenarios for 2027, titling each scenarios after a card suit. The best scenario, “Hearts,” depicts a neo-renaissance of politics, economics, and sustainability coalescing homogenously.” Diamonds,” the worst scenario, depicts democratic lifestyles sweeping the globe, and destroying ecosystems and disabling decision makers and inhibiting society’s ability to respond.

The report outlines seven recommendations:

• Plan for the unexpected
• Focus efforts in areas of developing needs and booming populations.
• Over time, a blended value bundle will be the norm in future business.
• Work to increase Earth’s “immune system” through market intelligence and creation. Be a source for help.
• Find opportunity in social and environmental issues
• Step outside the comfort zone to find new innovations, technologies, and solutions.
• Get involved in the politics, and find the vision, courage, and innovation to lead your company into the next business sphere.

If your organization needs help thinking through these issues, why not contact SSC for a consultation?

NEWS: Business owners are willing to go green

Wells Fargo/Gallup polled 600 small-business owners and found that two-thirds would pay more for environmentally friendly goods and services. They also found that 43% of business owners polled “believed their customers would be willing to share the added cost of being environmentally-friendly.” However, 49% of owners were worried customers would not be willing to pay more for greener products and services. Still 47% of owners surveyed have already implemented greener practices/products into their business.

ArmorLite Roofing created a roofing material that was, “lightweight, durable, and used the least amount of natural resources.” Their product has been well received by clients, including state and federal governments. ArmorLite creator Frank Lane has been pleasantly surprised at the reception his product has received from consumers: “"I knew what I was doing would be important, but I didn't realize the magnitude of importance it would have in the community and the response that we would receive."

As consumers get more aware of their purchasing power, and the mainstream becomes more and more sustainable, don’t let your business get left behind. SSC can help your business become a sustainable enterprise.

NEWS: College students are concerned about the environment more than jobs.

A survey was conducted of more than 400 college students of the class of 2011 and their parents to determine whether or not there has been any change in overall attitude over a generation. The study found that while parents were more concerned about post-graduation employment, the college students were, in fact, more concerned about the environment. Both groups were equally concerned with making enough money to be self-sustained, good grades, and keeping up with schoolwork. Of the students polled, 18% stated that the environment was their biggest social concern. Also, 91% stated they would pick an employment position they were passionate about over earnings. When the class of 2011 graduates, time will tell if these ideals hold true.

NEWS: The Economist's Report on Business and Climate Change

In Early June The Economist featured a cover story entitled, “Cleaning Up: A 15-page report on how business is tackling climate change.” The report included several articles on how big companies are going green and why. The report discussed that the driving force toward green energy is not just moral pressure, but there is growing economic pressure as well. In spite of the current interest in greenhouse-gas emissions, emissions are continuing to rise:

“If greenhouse-gas emissions are to be stabilized, then the carbon price or the support mechanism for clean energy, or both, will have to rise or be adopted worldwide, or both. And if that happens, the returns on clean-energy investment will increase even further and the companies that have already invested in such businesses will have a head start over those that have not.”

Therefore, customers, businesses and governments are realizing solving the climate change problem will provide new markets, technologies, business, and money to be made.

The Economist report featured:

• “Everybody’s Green Now: How America’s big companies got environmentalism.”

This article explains how a new business is forming out of the carbon market. More and more companies involved in power generation that once believed climate changed was the work of fiction, are coming out of the woodwork to create their own emission control promises and encouraging government regulation. Since states like California have created regulations or are working on creating them, companies are encouraging a federal government policy that is universal within all the 50 states. The companies however are not just interested in a cleaner environment or a universal policy to make paperwork easier, there profit involved:

“There is money in it, (federal regulation) too. If the American government adopts a cap-and-trade system, it will hand out permits to pollute. They are, in effect, cash. According to Paul Bledsoe of the National Commission on Energy Policy, those allowances are likely to be worth in the region of $40 billion. Companies therefore want to be involved in designing those regulations.”

• “Irrational incandescence: People can’t be bothered to make easy energy savings.”

A Swedish power utility company, Vattenfall, is working on quantifying what ways of cutting carbon are cheaper. Insulation improvement, Fuel-efficient vehicles, Lighting system, Water heating, and sugar cane biofules, can both cut emissions and save money for people and business. However, the immediate savings are too small and the effort involved talks to much work, and electricity bills are too “boring” to think about. Also, people responsible for these changes may not have the knowledge or capital to make the initial investment to change.

• “Sunlit uplands: Wind and solar power are flourish, thanks to subsidies.”

Worldwide, 13% of the world’s energy needs are supplied by renewable resources. The three biggest sources are currently geothermal, hydro-electric power, and biomass. However, these sources aren’t perfect. Geothermal energy is limited by geology. Hydro-electric power is limited by building dams, use of large amounts of land, and government participation in large-scale production. Biomass is limited by the expense of long-distance shipping and old technology. Wind and Solar energy become next best expandable renewable resources. Countries that currently engage in large scale use of solar power, include Germany, Denmark, and China. Advanced technology and economies of scale have both dramatically reduced the price of solar cell technology, thus making solar power a more viable option for consumers. As with all things in life, minor setbacks do occur. One such example was a recent shortage of silicon, which inflated the price of solar cells. The silver lining in that cloud is that it forces companies to invest in thin-cell technology, which uses much less silincon, which, overall, is better for the environment. Energy tariffs have also made renewable energy more complex than need be. Nevertheless, big energy players have begun to invest in renewable energies. Such companies include GE and BP. Another factor in the future of renewables is politics. Luckily, wind and solar energy is less politically-risky, and can thus be shielded from partisan strategy.

• “Trading thin air: The carbon market is working, but not brining forth as much innovation as had been hoped.”

The carbon market is a place where traders can buy and sell non-carbon in the form of carbon credits. The purposes of the market are to establish a price for carbon and to allow companies to cheaply buy carbon credits. Carbon credits primarily come from two sources. The first is from corporate allowances. The second is certified clean mechanisms in developing countries. Such an example would include capturing methane gas from pig stool to create electricity. In fact, last year alone, developing countries accounted for 562 metric tons of CO₂ [$5.33 billion] traded. China is an up and coming polluter, and appropriately, last year, purchased over $4billion worth of carbon credits. Europe is still having a tough time in cutting emissions, partly due to the continued use of coal.

• “Boom” As security and climate concerns rise, nuclear power may be coming back.”

Nuclear energy in wealthy nations is responsible for a large chunk of energy: 18% in Britain, 19% in the U.S., and a whopping 80% in France. However, the nuclear society in America has been buzzing with activity of recent, for three reasons. First, the nuclear approval process was reformed in the 1990’s. Second, global warming has increased the need to find energies that emit less carbon dioxide. Third, the Energy Policy of 2005, which provided the nuclear industry with a tax credit, provided for $1.25 billion for innovative technologies, as well as another $2billion in insurance for regulatory issues. The application deadline is the end of next year, and so far 22 companies has applied to build 32 new nuclear plants. There are three problems that still remain. The first is waste removal. There is no long-term waste solution, but nuclear experts agree that waste can be safely stored in dry-storage casks surrounded by inert gases for about 100 years until a solution is found. Second, terrorism is still a worry. While plants are build strong enough to survive most routine attacks, plants can never be completely ready for innovate attacks. Third, costs for nuclear energy are higher than that of coal, by about 2KWH. However, new technologies may help to reduce the costs, and new plants with new technology appear to be the only viable way to gauge real-world cost savings.

• “Dirty king coal: Scrubbing carbon from coal-fired power stations is possible but pricey.”

Statoil, a Norwegian oil company, collects oil, but doesn’t contribute to atmospheric global warming. This is because the company pumps the carbon dioxide back into the ground. This innovation, called Carbon Capturing and Storing, or CCS, is considered a quick fix for global warming. While standard pulverized coal can be burned more cleanly at higher temperatures, energy demands are too burdensome for this technology alone, which is why CCS is getting a closer look. CCS is currently being done in three places: Norway, Canada, and Algeria. According to the International Energy Agency, about 15 new CCS power plants have been approved for production. The abundant use of coal is a good reason to further investigate the use of CCS.

• “The drive for low emissions: Car and fuel companies are investing in clean transport.”

Greenhouse emission cuts and fuel standards are beginning to toughen up. The EU has enacted mandatory fuel efficiency laws, and now more governments are following suit. In January 2007, California announced its goal to reduce carbon emissions from fuels by 10% by 2020. Hybrid cars, while a current quick fix, are not the answer, as their carbon savings will soon be offset by the overall increase in global car ownership. Some real changes have to take place. One change is ethanol, which gives off CO₂ , but, in theory, soaks it up through the plant’s photosynthesizing phase. There are three problems with ethanol. First, the market is currently limited. Most American cars can take E10 fuel [10% ethanol] but only about 6 million cars are currently “flex-fuel” ready, and can support E85 [85% ethanol]. Second, ethanol is expensive. While competitive with gasoline in price at the pump, subsidies cost the American taxpayer billions, and import tariffs keep out cheaper ethanol, such as that from Brazil which is made of sugar cane. Third, ethanol isn’t very green. Some experts believe that ethanol, due to its energy use for growth, releases more emissions than saves. Celluosic ethanol, or ethanol made from anything with cellulose in it, may be a better, greener ethanol. Other ideas that are still alive are electric and hydrogen cars. However, hydrogen is currently very expensive to produce, costs about the same as gas at the pump, and there are only 3 fueling stations in the world: one in Iceland, one in Washington, DC, and one opening in California. Hydrogen fueled cars cost about $1million to produce. Other ideas include cars ran on Lithium-Ion batteries, similar to those in laptop computers, only much bigger.

• “The final cut: Business can do it, with government’s help.”

While green thinking has greatly increased over the past few years, more so in the last year alone, some worry that being green could be a trend that could die off. One risk could be the loss of greenness as fashionable. For example, it may only be a matter of time until Hollywood mega stars move one to the next big thing, and leave their hybrid cars behind. The second risk is oil prices. While they have been high for some time, if the price per barrel were to come crashing down, so would the hopes of expanding alternative energies. Third, politics can interfere. Companies are banking of alternative energy tax breaks and incentives to help. The best way to ensure that the green revolution becomes a permanent fixture and not a trend is to vote in officials who will continue to implement green policy, and to buy from companies who are committed to green ideologies. Carbon prices must be set, and the richest and developed countries must take the plunge to permanency before developing countries can follow suit.

• “Fairfield v the valley: Two competing models for the clean-energy business.”

Venture capitalists of the internet boom of the 90’s are now trying their hands at alternative energies. At the other end of the spectrum are established companies looking for new markets in new energies. An example is GE and its Ecomagination campaign. While the venture capitalists claim that alternative energy is geared to small business, pointing out the number of small wind and solar powered farms, the alternative energy market is still dominated by incumbent companies who have the capital to move mountains and market new ideas.

SSC can help your organization understand what these new developments means for your organization and can assist your business in navigating the carbon market.

NEWS: Green Transportation Trends

There are many exciting green transportation trends currently underway.

One is PHH GreenFleet, a project created out of PHH Avral and Environmental Defense. PHH GreenFleet is a pilot program helping companies reduce greenhouse emissions among fleet vehicles. This is done by measuring and analyzing emission levels, and helping companies to reduce emissions through recommendations and implementation of better practices, quarterly measurement and reporting, and tools to offset remaining emissions. GreenFleet is currently helping Abbott Laboratories to reduce its emissions by 10% by 2010.

Furthermore, dirty diesel just got a cleanup. The diesel industry says it has met regulatory standards, allowing new 2007 diesel truck models to emit 90% less emissions than their 2006 counterparts. After billions of research and development, new diesel trucks employ ultra-low sulfur diesel fuel [ULSD], which also helps to reduce Nitrogen Oxide [NOx] emissions, at a mere 15ppm sulfur content rather than the old 500ppm content. These new trucks must meet their low-emission requirements for at least 435,000 miles. This cleaner fuel opens the doors for a wide array of applications in both commercial and individual uses.

A study by the National Biodiesel Board reported that the American Biodiesel industry will add $24 billion to the US economy between 2005 and 2015, with growth reaching 650 million gallons by 2015. The board also reports that Biodiesel will keep $13.6 billion in America that would otherwise be spent on foreign oil. The study also finds that 498 million of the 650 million gallons will be produced from soybean oil. As of 2006, there are 88 plants in America producing about 200-250 million gallons of Biodiesel, nearly triple the levels of 2005.

Also, General Motors, in a partnership with General Electric Plastics, has planned to create the Chevrolet Volt. The Volt will reach 40mpg on an electric engine, and will be created out of materials that will reduce part weight by 50%. These technologies will reduce fuel consumption, will release less carbon dioxide, and improve overall performance. GreenOrder, an independent environmental strategy firm, verified GM’s claims, and found that if 3.2 million passenger vehicles were made with these standards and technologies, greenhouse emissions would be reduced by 194,000 tons and save more than 20 million gallons of oil each year.

Finally, the word on the street is that Biomethane can be a saving grace. Made from organic wastes, and having the same chemical composition of natural gas, Biomethane can help clean up the environment by reducing the use of fossil fuels. Biomethane can be made out of animal, food, and municipal wastes, production is not affected by oil price/production swings, and can be pumped into existing natural gas pipe lines. Furthermore, Biomethane can also be formed into liquefied natural gas [LNG], or compressed natural gas [CNG] which can be used in vehicles running on natural gas, of which there are currently about 5 million worldwide. Biomethane can also be used as a renewable hydrogen source [chemical CH4].

VIEWS: Ethical Supply Chain Trends for 2007

VIEWS: Ethical Supply Chain Trends for 2007

The following predictions come from an article in the Responsible Sourcing blog, and while it didn't come straight from my own brain I can't agree more with their forecast.

Trend One: Supplier Ownership

More and more companies are looking to engage suppliers in creating sustainable improvements that will positively impact the lives and conditions of workers. To do so, brands and buyers are promoting the adoption of management systems that will help suppliers run more efficiently as well as manage social compliance issues in a planned and organized manner.

Trend Two: Collaboration

Brand and retailer initiatives continue to emerge with the goal of fostering collaborative approaches to responsible sourcing. Following in the footsteps of the Fair Labor Association and the Ethical Trading Initiative, there is also the Business Social Compliance Initiative in Europe, l'Initiative Clause Sociale in France, and CSC9000t in China. Some initiatives focus around sharing assessment results and working together to promote improvements in like-supply chains…[and] more and more stakeholder initiatives are emerging that are sector-specific, including the Electronics Industry Code of Conduct program, the Council for Responsible Jewelry Practices, and the Framework for Responsible Mining.

Trend Three: Convergence

As brands and retailers increasingly sign-up to these initiatives, we can hope for a converging of some of the many standards and programs into a few. The ETI, once thought of as a UK-based initiative, now boasts an increasing number of non-UK members, including the U.S.-based Gap, Inc. Many members of the ETI have chosen to adopt the ETI Base Code as the code of conduct used in their supply chains, in order to use an existing multi-stakeholder code that promotes the use of a common industry code. In fact, the Body Shop forewent their previously developed code to adopt the ETI code and promote the concept of a universal code of conduct. The Gap recently announced their intention to do the same.

The article has more examples (mostly from a UK perspective), and I highly recommend the whole thing. And stay tuned for another entry later this week on SSC's approach to supply chain management, where we'll explore how small and medium-size organizations can implement sustainable supply chains.

VIEWS: The Biggest Trends In Small Business

A colleague recently pointed me to an article in USA Today on the Top 10 Trends Shaping Small Business in 2007. Of particular interest to me were #4 and #1. Read on to find out why…

No. 4. Green revolution

We seem to have reached a critical tipping point, and there's no turning back: green is good. And as nearly every large company now has a sustainability or corporate social responsibility program in place, smaller companies are starting to see the value in environmental excellence too.

Whether it's GM unveiling an all-new electric concept car last week, or Whole Foods markets becoming nearly ubiquitous, or the rise of sustainable development, there is no doubt that there is an increased desire on the part of businesses and consumers alike to go green. For the small business owner, the green revolution presents opportunities: It can mean helping other companies be more environmentally-friendly, or catering to the desires of your customers to be more organic, or offering green products, and so on, but whatever the case, this may be a chance to do good and do well at the same time.

At Strategic Sustainability Consulting, we're delighted to be on the front crest of the green revolution for small business. Not only are we on the receiving end (just check out our own environmental initiatives), but we're also uniquely positioned to help other small companies green their own operations.

No. 1: Global warming may put you out of business

It's no surprise to us that global warming is happening…and it seems like most Americans now "get it". But that doesn't mean we're prepared.

According to a report from the British government written by former World Bank economist Sir Nicholas Stern ("The Stern Review on the Economics of Climate Change"), "Climate change could devastate the global economy on a scale of the two world wars and the depression of the 1930s" (CNN.com, October 30, 2006.)

Yup—it's true. The scary truth is that we are facing a catastrophe that's moving towards us like a monster in slow motion. We can see it coming, and yet are doing very little to stop it. At Strategic Sustainability Consulting, one of the most important services we provide is consultations on climate change management. So if your organization doesn't have a plan for how to deal with the realities of global warming, contact me at jennifer@sustainabilityconsulting.com for a free consultation.