Smart Solutions for Sustainable Business

Patagonia: Providing Continuing Ed for Voters

All that rock climbing must be what makes Patagonia fearless in the business world.

Today they announced that they'll be using their retail reach to encourage individuals to "Vote the Environment" and are using You Tube to get the message across.

http://www.youtube.com/watch?v=oW3V6ThF6dc&feature=user

Casey Sheahan, president and CEO of Patagonia says, "We're using our story-telling and marketing expertise to get this message out during a critical time in our country's history. We know that some customers may be put off by the strong environmental message. Not all our customers are environmentalists. But we are."

That last line is the most telling about Patagonia's brand, they stick to their mission regardless of who may not agree. That's being authentic at at a time when trust in corporations is at an all time low.

Patagonia understands its responsibility to not only make a profit, but to use its advertising and retail distribution connections to provide continuing education to the masses. If repetitive advertising can change a buying behavior, then it also can change a social responsibility behavior.  

It's hard to tell where the .com stops and the .org starts.

Patagonia has already given over $30 million to grassroots environmental activists since 1985. These are mostly micro projects, such as cleaning up a local river or bringing an environmental education class to a small town. Those actions don't make the big press releases, but are the ultimate in consumer engagement. It must be working, they crested $280 million in sales last year.

What I appreciate most is their ability to educate their base on both the micro and the macro issues impacting the planet. To do so they hold their own story up to scrutiny. Their "Footprint Chronicles" provide a retail-lite, Life Cycle Assessment. It falls short on quantified numbers, but does give a nod to the good and the bad of each product. That's a big step towards transparency.

"Vote the Environment" doesn't pick a party, it provides educational links for individuals to use and decide for themself who will do a better job. In the primaries, according to research by the Nathan Cummings Foundation, the environment was #18 on the list of top voter concerns across party lines. With this new initiative, Patagonia is hoping to put environmental issues into the #1 spot.

contributed by Mary Hunt. Contact Mary at Mary@InWomenWeTrust.com

We Welcome Your Comments

The Challenge of Ethical Consumerism

The world is shifting, companies will take note and drive sustainable change or they will become part of (what one of my former supervisors deemed) “the Left Behind Series.” In other words, companies not communicating their environmental and social progress will lose out to their competitors that do. 

Imagine what would happen if all consumers looked at all their disposable income and decided they were going to only purchase products that supported a sustainable, healthy and socially just world? Imagine what your business would look like if you weren't prepared for that day.

 

According to a recent poll conducted by the Global Strategy Group, 87% of consumers are more likely to buy products from a retailer that is committed to environmentally sound practices.

 

With this increased awareness, the question for many companies becomes, how to achieve the maximum economic benefit from environmentally and socially responsible products and practices while at the same time increasing shareholder value and increasing stakeholder trust?

 

Looking Up and Down-Stream

 

·         In 1960 we were generating 2.7 pounds of waste per person PER DAY.

·         In 2006 that number is 4.6 pounds of waste per person PER DAY. 

·         By the time that waste fills 1 garbage can, 70 garbage cans of manufacturing waste were created upstream to make the stuff that is now junk.

                   Source:2006 EPA Facts and Story of Stuff

 

(Read that last bullet point again. From the source of the product through the sale-use, disposal and or reuse it takes 70 times the resources to produce that one can of garbage! That's a bad ROI - Return on Investment or ROJ Return on Junk, any way you look at it.)

 

Jared Diamond in, "What's Your Consumption Factor"? expands that “1 can” to its worldly impact, "The average rates at which people consume resources like oil and metals, and produce wastes like plastics and greenhouse gases, are about 32 times higher in North America, Western Europe, Japan and Australia than they are in the developing world.” 

 

When we talk to consumers about greening up their life, usually it's in terms of what they can do after the fact or "downstream" from their point of contact, i.e. bringing down the size of their 1 personal can of trash. How do you think they'll react when they know that 70 more cans were created prior to reaching them? Will they get angry, or will they just give up? 

 

Today, the majority of products' environmental and social impacts are hidden from our view. Consumers don't ask because they really don't know to do so, or perhaps they don’t want to know what's behind the curtain - either way, with more awareness, Ethical Consumerism is on the rise. It's a movement based on purchasing products that have been ethically produced - products that have been made without harming the environment or exploiting individuals and animals.

 

Defining exactly what is or isn't ethical will be one of the most difficult issues of our economic times.

While many new labels have come to market recently, they have not yet matched the impact of programs such as ENERGY STAR. This is one label that has become a simplified clear choice, but it only represents one aspect of the product's value - low energy.

 

The acceptance of the labels with the highest recognition in today's market follows closely to what impacts the consumer interests the most, i.e. Energy (personal cost), Recycling (cost and handling issues), USDA Organic, (safe to eat), Fair Trade (safe for global workers). They follow the same path as what makes a company tick – profit, lean-manufacturing, safety and happy workers. [SMaRT covers all four areas]

  

Does it Pay for Business to Be Ethical?

 

According to a recent study reported by the Wall Street Journal, moving your company to embrace more environmentally and socially responsible practices-that are third party certified would be a good investment. Green consumers may be willing to purchase unethically produced products, but at a steep discount.

 

The return on investment and profits of companies in the 21st Century are clearly rooted in social responsibility as noted in these results:

 

Reward and Punishment

 

What are consumers were willing to pay for a pound of coffee based on what they were told about the company's production standards?

 

Ethical standards . . . . . . . .  $9.71

Unethical standards . . . . . .  $5.89

Control (no information) . . . $8.31

Source: “WSJ-Does Being Ethical Pay”

 

A recent survey by BBMG indicated that 35% of all Americans have avoided a product because of a company’s practices. “People may not pay more for green products, but they may punish products and companies perceived as not socially or environmentally responsible.” Andrew Winston,

 

With the rise of social media including blogging, if you're lucky, your consumers will punish you by not buying the product. If you're unlucky, they'll punish you by putting up a bad review on the Internet that will follow your company and the product around for decades.

 

What Now?

 

Sustainability is becoming less "optional" and is already becoming a necessary part of every business strategy.

 

So, how will we conduct business in the 21st Century where the consumer-becomes a conservative-ethically minded conscious-consumer and actually practices the art of buying and spending less?

 

The competitive advantage of the 21st Century has arrived, be aware, educate yourself and your teams

formulate eco-strategies to save energy, lean up waste, stop the pollutants and take care of  workers producing your products. Those are the top areas that will resonate with consumers.

 

What else can you do?

1.) Not only understand but, “own” your product's life cycle. This is a mindset shift at the design level. Lifecycle includes understanding and owning the environmental and social impacts along the supply value chain.

2.) Choose products that can be authenticated to the source. Independent Third Party Certification of Accredited Standards e.g. SMaRT, Organic, Fair Trade, etc.

 3.) Educate your purchasing agents, consumers and investors. Focus on energy saved, waste reduced, pollutants eliminated and workers rights issues. Be prepared to link to a source that can prove all of the above statements and tell the whole story across the supply chain. Note both the successes and the places you have to improve. Talking up the good and leaving out the bad is ok when talking about your family, but not your products. Truth and proof is the new marketing mantra.

4.) Keep your eye on the future. Plan now. Should consumers opt to buy less and they will, how will this affect your business model?  Will you be offering more services to offset the lower product sales?

If you have a plan in place you will have the 21^st Century edge.

Write Coral at Coral@eco-textiles.com

We welcome your comments.

 

SMaRT Sustainable Standard Orientation - free on Blip TV

Sustainable Product Standards don't move forward on their own. Our thanks to Mario Vellandi for taping the "Getting SMaRT about Sustainable Products" last month. You can watch Mike Italiano's presentation by going to http://sustainableproducts.blip.tv/#1034725 or hit the play button below.

If you would rather read all about it, John Marshall Roberts the director of communications at Evenson Design Group wrote up a great summary found on Sustainable Life Media, the defacto place for sustainable messaging and marketing trends. John's key takeaways were:

• Universal Sustainability Standards are vital for creating new markets.
• Authentic sustainability certifications are the antidote to greenwashing.
• Credible sustainability standards much be accessible.
• Leadership from visionary brands will be critical for mass adoption.
• Industry (not government) must lead the way

Read the full write up on Sustainable Life Media here.

The City of Santa Monica, DMJM H&N, Forbo, Milliken, Knoll are honored for their work on Sustainable Standards

Before you transform the market you need participants from all sectors working together - designers, manufacturers, buyers, and specifiers. This week inside a LEED Certified Gold building at TreePeople in Beverly Hills, individuals who have been working with MTS came together to be honored for their diligence and leadership in creating the SMaRT Sustainable Standard.

Watch the full video on Blip TV here http://blip.tv/file/1028183.

Mike Italiano, the CEO of MTS presented the awards to:

Dean Kubani, Environmental Programs Manager, City of Santa Monica: "We've been working on things in Santa Monica since the early 90s.... We found SMaRT as a fantastic thing... these standards are incredibly rigorus and the fact that it's a Life Cycle Assessment gives us a full picture, so we're very confident by requiring a SMaRT certification... "

Honorable Kevin McKeown, Council Member, City of Santa Monica: "What people don't see is the important stuff that we do day to day - procurement... our city budget is now up to 1/2 billion dollars a year. The choices we make in procurement make a big, big difference... we've been able to show our local businesses and other governments how much sense it makes to do it right..."

Lou Newett, Environmental Director, Knoll Furniture:  "When we looked at the different standards, and we did look at other ones and none compared to the SMaRT standard... it was very robust and hit all the key areas and goals that Knoll had and part of SMaRT was a heavy emphasis on Climate Change..."

Claire Bonham-Carter, Director of Sustainable Development DMJM H&M "...We as designers have a real responsibility to make sure everything we do and we design has low impact..."

Ginny Dyson, Sustainable / LEED Manager, DMJM H&N "The more you know, the more you know you need to know more... as individuals we can make a difference and as specifiers we can make even more..."

Casey Johnson, National Sale Director, Forbo. "It's [SMaRT] done in the light of day.. Everyone in this room has the ability to be involved. In fact when you look at this cross section, this is the cross-section that you want on the development of a standard... it has to be transparent.. It shows that the decisions are being made out of the boardroom rather than marketing."

Rusty Lance, Sales Manager,  Milliken  "We're a textile research company ... I'm in the floor covering division where we have had a zero waste manufacturing program, where we HAVE zero waste, it is not a goal... we are PVC free..."

We would like to thank all who found their way up to TreePeople and shared the afternoon of learning and leadership. You can see a video of the full day at: http://sustainableproducts.blip.tv/

Stirring it Up: How to Make Money and Save the World, by Gary Hirshberg

If every CEO behaved like Gary Hirshberg, CEO of Stonyfield Yogurt, then we wouldn't need eco-groups or standards to help business take a sustainable direction line. Stonyfield Yogurt is the definition of a Sustainable triple bottom line - it's profitable, respectful of the environment and its suppliers and employees. That all adds up to something that their biggest customer base (women) appreciate, applaud and buy even during these shaky economic times.

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Gary believes in putting capitalism to work. As he notes in his new book "Stirring it Up: How to Make Money and Save the World", "I'm here to tell you that nature and business are born allies—potentially the richest partnership in the history of capitalism."

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Sustainability thrives when you open your mind to doing things most businesspeople would consider plain nutty. Examples:

• We pay some of our organic suppliers as much as twice the going rate for conventionally grown materials. [emphasis mine]

• We do hardly any advertising, and we use our packaging to promote other organizations.

• We actually push for more government oversight and regulation of our industry.

• We give our customers and investors detailed reports on how much pollution and waste we generate—even when those figures are rising.

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Stonyfield is doing everything that I want to see in a corporation:  It values organically produced raw materials (and the local farmers), it does well by promoting others over self, appreciates the need for common rules of fair play, and above all is transparent. 

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It passes the small town test.Stonyfield can stand up to the scrutiny of talk in the local bar, church parking lot or little league stands and that’s why it also gets such high word-of-mouth advertising from its customers. All small businesses pass this test initially or else they don’t stay in business. The amazing part is that Stonyfield managed to keep its integrity in tact as it grew and even after it sold 85% of the company to the French company, Groupe Danone. That’s leadership we can all learn from.

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The bottom line is personal and financial.

Gary switched careers from non-profit to profit to give his ideas a larger stage for social impact and change. He started out in 1970 as the Executive Director of the New Alchemy Institute, but changed into an entrepreneur yogurt maker when he saw how much attention Kraft was getting at a Disney Event. The Institute’s ideas may have been more Sustainable, but Kraft had a bigger world stage all because it had a profitable product line, one which wasn’t sustainable. That hit home for Gary and he went into the for profit business along with Samuel Kaymen. If their ideas were to have a world stage, he had to become a capitalist.

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What were the results of Gary’s decision?

"Some twenty-five years later, Stonyfield is the world's largest organic-yogurt maker, and I am its CE-Yo. Better yet, our U.S. yogurt sales surpassed those of Kraft's Breyers brand nearly a decade ago. Stonyfield has grown by more than 27 percent a year for the past eighteen straight years, compared with 5 to 7 percent for the yogurt industry as a whole. In 2006, our sales topped $260 million; in 2007, we're on track to exceed $300 million. It's largely due to our focus on sustainability—the art of replacing myopic efficiency with sensible methods that boost profits while benefiting nature rather than destroying it."

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You can't argue success. Stonyfield isn't the only one that's seeing success. Check out this report on

Companies That Report Sustainability Data Enjoy Higher Gross Margins

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Gary’s book is hopefully the first in a series of books by CEO’s proving similar case studies. As you read, look beyond operations and the product production and into the consumer engagement side as well. Gary’s ideas didn’t fly without profits and those profits came from engaged consumers. Stonyfield’s website is a reflection of the culture (no pun intended) that is serves - it’s inclusive, fun, interactive and respectful of its female consumers. In a letter to the site’s readers, Gary invites them to participate in co-creating the world of business that they want to see.

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Yet at some point both sides of the buyer/seller equation know that even the best of co-created intentions need rules and guidelines that match up to the rules and guidelines of other companies. Baseball is inclusive, fun, interactive, but without rules, it’s just a street game with sticks and a lot of running around. Standards are the laws of a free market. Life Cycle Assessments (LCA) bring transparent information to the table and third party audits ensure the information is accurate and honest. Stonyfield has the USDA Organic Label and also the QAI label (Quality Assurance International).

 

Gary is at the helm now. Someday another face will lead Stonyfield, but it's brand and integrity will stay intact due to the their Sustainable business model that proves that good guys can finish first.

From Green to Sustainable to Prove it, at the Conferences and in Marketing

Green is busting out all over in June. This week it's the Sustainable Brands Conference in Monterrey, CA. Next week it's Greener by Design in Arlington, VA. In the middle of the nation is NeoCon featuring the best in marketing and manufacturing of furnishings. 

At the heart of all of these efforts is industry's search for "real" Sustainability and it's ability to communicate the changes to the end user. In Monterrey, the end user tends to be more on consumer messaging, while at Greener by Design and NeoCon the focus are more B2B. In all cases, it's not what you say, but what you are actually doing that matters.

Yesterday, Leonard Robinson, the director fo the California EPA's Department of Toxic Substances Control spoke on "The Next Evolution of Environmental Protection." He offered information on the state's Green Chemistry Initiative in which they work with companies to lower toxic chemical use in manufacturing processes. After a product is in the consumer mainstream they have a "California's Take it Back!" program in place. "The program is shifting takeback responsibility from end users onto manufacturers through consumer education efforts such as the “Not in My Trash CanPaign,” fronted by Oscar the Grouch."

Both sides of that conversation come to the same conclusion, as a manufacturer you'll either be paying up front to lessen the load of chemicals going into the process, or paying on the backend where you'll be held accountable when you "take it back."  Underlying both issues is accountability and proof not only for the EPA but for consumers.

Recently, Kimberly Pinkson of Eco Mom Alliancetold me she would like to not only return e-waste to a store, but then SEE a video of what happens to that waste. She didn't trust big business to do the right thing as she and about 300,000 others have seen the You Tube Video "Dumping on the Poor". That's a big trust issue if you're in the marketing department of Dell, HP or Best Buy. How do you overcome it? It will take more than a video showing how it's disposed, it will take a document to show how it was made to begin with.

Jacquelyn Ottmanspoke to that subject. Apparently half the people attending her sessions were green marketing newbies. That statistic alone is why SMaRT has a slide show to bring this crowd up to speed. As soon as they start going down the green marketing rabbit hole, they will need to know how to talk HONESTLY about their products and fast. Jacquelyn estimates the green market to be worth about $209 billion.

Emily Rabin Cowan,SLM Managing Editor gave this report on their blog:

Ottman:"Rising energy prices, concerns over climate change and water shortages, health concerns, and economic factors are all driving consumers to reassess the contents of their pantries, closets, and garages.... In the absence of green certifications [SMaRT is both a certification and a label], eco-labels, and other indications of a product’s environmental performance, the final decision frequently comes down to corporate reputation, The bigger the brand, the bigger the potential gain – and the potential risk if you don’t get it right."

Educating the Consumer: The Eco-Labels Debate

There’s no such thing as a green product, Ottman cautioned – every product requires materials, uses energy, and creates waste. It’s just that one product might have less of these impacts than others (sometimes only under certain circumstances). And it’s your job, as a green marketer, to spell this out for consumers in a way that’s meaningful to them.

[This is where marketers are being held to an unfair measuring stick, if their product isn't certified, they can never back up their claims.]

Ottman encouraged attendees to use trusted, well-known green certification labels such as Energy Star and FSC. [both are included in the SMaRT Certfication]

Her recommendation to avoid creating an in-house green label met with some opposition from one participant, who noted that companies want to be seen as leaders, which is why they might pursue creating a label such as Home Depot’s Eco Options program. What’s so wrong with that?

The reason, according to Ottman, is that few labels actually make an impact in consumer purchasing decisions, and the growing trend toward eco-labeling is only confusing the issue. (She posted a slide featuring recycling’s “chasing arrows” and took a poll: what does this symbol mean – recycled? Recyclable? Could be either; it’s up to the marketer to make the meaning clear through accompanying text.) Fact is, she’s not such a fan of Home Depot’s Eco Options program, which dosn't offer specific information on product attributes the way, say, Timberland’s “nutrition label” or HP’s new Eco Highlights label do.

That provoked an unexpected response from the former Home Depot exec, who conceded that Eco Options may have fallen prey to overuse. “It’s a question I often asked myself,” he said. “How far do you extend it before it loses its value?”

“It’s our responsibility not to confuse consumers even more. The fact that we’re proliferating these labels is doing a disservice to the real cause – selling product, but also making a difference.”

~Workshop participant

Bottom line? There are no cookie-cutter green-marketing strategies, Ottman concluded. “How you develop a distinctive green strategy for your product reflects the specific opportunities and constraints you face."

"Reflecting the specific opportunities and constraints" is the key issue behind a Life Cycle Assessment and the SMaRT Sustainable Standard.The Standard isn't a cookie cutter strategy, it just provides the audited facts so you can create a strategy based on an honest and across the supply chain assessment or where you are in getting rid of toxins or tightening up your energy consumption during manufacturing or transportation. It's all about being able to document your place on the green(er) line and then moving forward in a truthful and honest fashion.

Investors want proof and consumers want truth.

Smart Solutions contributing author, Diane MacEachern is also a speaker at the Sustainable Brands Conference, but unlike everyone who is there speaking from the business side of the table, Diane represents the consumer side. Tomorrow we'll cover her talk and how to achieve consumer trust during these transformational times.

Contact: Mary@SustainableProductsblog.com

About: Mary Hunt

Congratulations to Knoll on Achieving SMaRT Sustainable Gold Rating

Our congratulations go to Knoll Furniture for doing the LCA work that was needed, followed by third party global audits by Redstone Group, to prove that their Life Chair is Sustainable. Knoll now has quantified proof to show buyers and investors. The SMaRT Gold Certification backs up their claims to low emissions, waste stream pollution and good working conditions. This makes a big statement for what is possible for all of industrry. Knoll is a leading designer and manufacturer of furniture and textiles and recognized for innovation and modern design. The Life Chair is an extension of their committment to a sustainable world. The SMaRT(C) Consensus Sustainable Product Standard (Sustainable Materials Rating Technology) is distinguished from other certification programs by being transparent, consensus based, and a quantified standard that measures environmental benefits throughout the global supply chain. It also requires regular third party audits to keep the certification. Lou Newett, who is a member of MTS and Knoll's Environmental, Health and Safety Manager said: "Each year Knoll sets key initiatives in our journey to sustainability and takes a leadership position in establishing universal environmental standards for our industry. SMaRT is consistent with our holistic approach to sustainablity because it considers all three criteria of the sustainability triple bottom line: environmental, social and economic impacts. We believe this standard is the most meaningful certification tool for sustainable products; it's also adopted by the American Institure of Architects, ANSI LEED, Capital Markets Partnership, Big Green Purse, Sustainable Furniture Council, the City of Santa Monica and the Fireman's Fund."

The SMaRT product certification is based on the U.S. Green Building Council's LEED model. Requirements include: GREENGUARD Indoor Air Quality Certification at the stringent California 01350 standard; The completion of a Life Cycle Assessment: a science-based measurement of a product's environmental impacts throughout its life cycle, from raw materials sourcing through manufacturing, shipping, use, and re-use or end-of-life; No polyvinyl chloride (PVC) or other toxic chemicals The Life Chair also features minimal material, recycled and recyclable content, environmental fabric options and easily replaceable parts. The chair's assemble minimizes energy use and emissions. Along with this it is manufactured in the Knoll LEED Gold and ISP 14001 certified Lubin Building in East Greenville, PA, using clean technologies. In 2008, Knoll initiated a program to offset greenhouse gases at this site with electricity generated by wind power. Knoll achieved the Sustainable Gold rating for the Life chair following a review of the certification process by Redstone Global Auditing Group. We welcome your comments ABOUT: Mike Italiano

Smart Solutions for Sustainable Design

MARILYN MILLER FARMER will be joining Smart Solutions as a contributing author. She is the Principal of the sustainable design firm of Habitat Studio Architecture & Planning and has over 20 years of experience in both residential and commercial projects emphasizing ecologically sensitive design. As a registered architect and a LEED Accredited Professional, she has been the recipient of several notable honors and awards, including First Place Award in the AIA/UIA International Sustainable Design Competition in 1992 and an AIA Design Merit Award for the local Claiborne and Churchill Winery, California's first commercial straw bale building. 

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Marilyn is also an active member of CoopAmerica, the American Institute of Architects, National Association of Homebuilders, U.S. Green Building Council, and the Sustainable Building Industries Council, was a member of the 2007 National Institute of Science and Technology Indoor Air Quality Task Force, and is a Founding Board Member and Past President of the California Central Coast Chapter of the U.S. Green Building Council.

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Marilyn's passion and research into sustainable building materials over the past fifteen years has led to the development of the Green Building Pages web resource guide, www.greenbuildingpages.com. It has a mission to create a clear, concise, public format for communicating comprehensive, current, and transparent information to enable building industry professionals and consumers to use their daily decisions and purchasing power. She'll be sharing what she's learned while putting the pages together in her first posts.

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After noting that she personally makes about 75 daily decisions to purchase and use resources, she believes that the barrier to making informed decisions is simply the lack of the information and a clear, consistent means of evaluation.  She'll be writing about that as well.

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Welcome aboard, Marilyn. We're looking forward to hearing what's important to you as an architect, a business person and a consumer.

Sustainable Standards, the Backbone for Greenwash Free Marketing

Are you new to the whole concept of Sustainable Standards? Here's a quickie course in what they are and how SMaRT fits into the mix. You can also download the PDF at: Download smart_sustainable_standards_101_2.15.08.pdf

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Sustainability in the Corporate Culture

Companies need to have Sustainable practices, and with that you will get Sustainable products. The vice versa is not true - just because a company makes a Sustainable product or two does not make it a Sustainable company. I could list several examples where companies that are considered "leaders" in the green movement are directly or indirectly some of the largest polluters in their region or state. One of the key issues is "how" Sustainability is viewed in the corporate culture. I would like to offer a couple of simple questions to ask to really determine whether a company is sustainable or not, but first we must define Sustainability.

What is "Sustainability"?

"Sustainable Development" is a term first used in the UN-Chartered Brundtland Commission Report on Environment and Development. It is the practice of responsible use of limited space, scarce natural resources, and respecting the fragility of eco-systems while minimizing the environmental consequences of human activities.

How is "Sustainability" viewed by a business?

Questions to ask:

• Does it start in the marketing department or the boardroom?
• Is it a "cost of doing business" or "key contributor to the bottom line"?
• What are the scientific principals that drive decision making in product design & manufacture?
• Are the benchmarks and measurements internally set or independent and externally defined?
• Is it culturally ingrained and holistic or segmented and specific in application?
• Does being environmentally responsible mean "meeting all applicable standards and regulations" or does it mean "compliance plus" where the bar is continually raised driving improved performance"
• How is it controlled, monitored, and reported?

Let's look at each one individually and briefly talk about why it's important.

Does it start in the marketing department or the boardroom?

If the drive for "Sustainability" comes from the market's desire for "green" products, then it will never penetrate deeply into an organization's culture to become a long term, consistent practice in the business. I can assure you short term focus on EB IT (Operating Result) and EVA (Economic Value Added) will drown out concerns over IQ (Indoor Air Quality) and LCA (Life Cycle Assessment) performance. You can easily tell when this occurs because the company offers a green product (or product platform) in the middle of a whole bunch of other stuff they sell. You can also easily tell because, when it comes from the marketing department, it usually is a perfect little environmental story rather than an open presentation of environmental impacts. Price, value, product quality, brand - these are reasons to buy products. We have to get to the point where Sustainable is a GIVEN.

Is Sustainability a "cost of doing business" or "key contributor to the bottom line"?

When a company understands the positive impacts of integrating sustainable practices into the entire business model, the direct impacts on the bottom line are substantial. These are investments with solid ROI and create EVA for a company - they are not "costs."

What are the scientific principals that drive decision making in the product design & manufacture?

Without clear, scientific principles to guide decision making, directions can be taken on a more single issue, often emotional, basis. A clear science makes objectives, and the subsequent decisions to reach those objectives, clear-cut and unable to be compromised. There is no "easy way out." LCA (Life Cycle Assessment) is a NON-ARBITRARY methodology used by the leading companies in Sustainability today to drive their decision making.

Are the benchmarks and measurements internally set or independent and externally defined?

Benchmarks and measurements must be set independent and external to the organization. This inherently sets a higher, more challenging, standard and eliminates potential conflicts of interest. Third party review is an absolute necessity.

It should be noted here that clear, scientific principles developed in an ANSI accredited consensus process combined with 3rd party auditing is at the core of the SMaRT standard (Sustainable Materials Rating Technology) as opposed to many of the alternatives that are currently in the market.

Is it culturally ingrained and holistic or segmented and specific in the application?

If only one or two segments of a business has a dedicated effort in sustainable practices, why not the whole business? It's the difficult areas that really need to be attacked first.

Does being environmentally responsible mean "meeting all applicable standards and regulations" or does it mean "compliance plus" where the bar is continually raised driving improved performance"

Meeting all applicable standard and regulations is a good start, but it is the minimum acceptable position. At this level Sustainability is still a "cost of doing business." Compliance Plus, or doing more and better every year, is where the economic and performance benefits truly begin.

How is it controlled, monitored and reported?

Repeatability is critical for the long term success of embedding Sustainability in the Corporate Culture. If a company doesn't measure it and report on it, they aren't going to fix it.

For more information on Denny, go here.

We welcome your comments and solutions for sustainable buisness.