Cut to the Core

Green Behavior is Growing Among Consumers and CEOs

Despite the long economic downturn that has left many workers underemployed or unemployed, The Green Revolution, the 2009 survey by Grail Research, found that 85% of U.S consumers buy green products. The increasing consumer demand for greener products now influences the plans of businesses worldwide. In fact, the UN Global Compact-Accenture CEO Study 2010, a survey of 766 leading CEOs around the globe, confirms that sustainability is considered a key driver for future growth.

The demand for green is both broad and deep, and it spans numerous consumer segments. For example, it influences supply chains, business-to-business transactions, government spending decisions and employment practices. Indeed, many niche markets, which are often exempt from certain trends, have also found a rise in consumer demand for greener options.  “Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication,”  the latest report of the United Nations Environmental Programme (UNEP), details the growing financial response of private investors to the consumer demand for green agriculture and tourism.  Just two examples show why investors are interested:  1) In 2008, global sales of Fairtrade products exceeded $3.5 billion in U.S. dollars, and 2) surveys indicate that more than a third of all travelers would pay more to participate in sustainable ecotourism, when the relevant expenses reduce waste and enhance biodiversity and ecosystems.

The private sector has long been leading the transition from an industrial-based economy to a cleaner, greener economy. The Green Transition Scoreboard® (GTS) serves as a time-based, global research organization that tracks non-government investments and commitments for all facets of the green market. The latest update from GTS reports a total of $2,005,048,785,088 in such investments between 2007 and the end of 2010. 

 

Key Point – The importance of moving toward a green economy has been substantiated. The recent Deloitte Study, which surveyed 48 large corporations headquartered in the U.S., verifies that corporate American now considers sustainability more than just a public relations campaign.

Have you included sustainability as one of your business strategies?

Have you aligned your business policies and priorities with your sustainability goals? 

*Learn more about environmental concerns in Maria Pinochet’s CSRwire article, “Consumer Demand: The Driver of the Green Transition.”

Barter Your Way to a Better Bottom Line

One of the results of the current credit crunch is that bartering, the direct exchange of goods and services among and between providers and producers, is on the rise. To get in on the transactions, you can join the company of many others in “Big Business” and barter via online communities, through corporate barter companies and through one-on-one negotiations. This can be especially beneficial when you have product that does not move or becomes out-dated. Instead of scrapping the inventory, using distribution channels to sell it at deep discounts or writing it down to sell to liquidators, you can barter your inventory for trade credits or product exchanges—at either wholesale prices or book value.

If you have a company that offers services, you can also take advantage of the barter boom. To do so, just join a trade exchange to begin participation in multi-lateral or one-on-one exchanges.

Barter exchanges and clubs got started in the 1970’s and have grown in number to over 500 professional associations. That means you should have an exchange near your place of business. One of the key benefits of such exchanges is that their accounting methods are very simple. When you perform a service, you earn trade dollars that are equivalent to cash dollars. You can then simply redeem your dollars among any of the participating exchange members.

Bartering is a time-proven method to acquire what you need without the exchange of currency. Additionally, the barter system allows you to develop strong business relationships and to enhance the value of your community.

Greenwashing - Summary of a Lively Online Debate

  A lively online debate, conducted by Ethical Corporation and sponsored by InterfaceFLOR on October 8^th, 2010 explored the practice of “greenwashing,” a means by which a company, especially through its advertising or public relations department, will proclaim a green image without truly dedicating its efforts to green practices. The debate was led by Ramon Arratia, director of sustainability for Europe at InterfaceFLOR, and Kristian Steele, a senior engineer at Arup.

The global participants discussed how setting standards that consumers could easily understand and that companies could correctly apply might be the best way to alleviate the problem of greenwashing. Such standards would help consumers to distinguish labeling that reflects true and appropriately earned claims about environmentally safe products from the claims that come from greenwashing efforts. 

The discussion continued on to consider the type of standards needed:  e.g., the GHC protocol and WRI/WBCSD PAS 2050 and 2060, along with 100% organic and other well-known labeling practices. Some voiced a concern that, even with good labeling, consumers would not understand what to choose. Do you buy a 100% organic shirt or a 100% carbon neutral shirt? 

The participants also discussed how a requirement of Life Cycle Analysis (LCA) for every component part of each product would impact businesses, especially if those businesses had to carry the full financial burden of the LCA. In addition, they addressed the question of which agencies would bear the burden of verification.

Read a summary of the debate - click here.

As I listened to the many partisans from the various countries and from different industries, I realized just how complex the labeling issue can become, even with the best of intentions by the noblest of business people.

As a marketing professional, with many decades of practice, my deepest concern is that green communications are being spearheaded by the public relations (PR) departments of companies. “Green” should not be simply a point of view that the PR department can use to communicate the ongoing organizational activities; rather, green must be a corporate value that is in alignment with the corporate mission.

When green is a core value that transforms the corporate culture, green becomes a heuristic for decision making and a valid reporting benchmark. When this is the case, communications about green initiatives will be viewed by stakeholders, not as a public relations effort to brand a company green, but rather as an honest communication about a truly green-functioning enterprise.

Extreme Green Home Makeover

Tropical Storm Fay hit Florida a record four times in 2008 and left behind a great deal of flooding and devastation.

Out of the rubble that was their home, Michaela Miller and Steve Sadler of Jacksonville, Florida, built their new home, Villa Paraiso. The award winning Platinum LEED and FGBC home sits on the confluence of the St. Johns and Arlington rivers in Jacksonville.

I recently had the pleasure of touring the home with co-owner, Steve Sadler. He showed me all the structural elements and systems that make this a green-at-its-most-extreme home. We are not just talking about solar panels – every component in the house is recycled or is as environmentally friendly as available – even when it added cost and time to the job!

If you are in Jacksonville, make sure to join Steve (who has a wonderful British accent) on one of the many tours he gives to both individuals and groups (e.g., school groups, construction organizations, environmental groups and social groups such as Green Drinks). If you are out of town, you can catch the tour on the video available for sale on their Web site, www.builttotallygreen.com.

This extreme-green home is not to be missed. It is one of the most sustainable homes in the United States, and its owners can very appropriately brag about its impressive specifications, some of which are listed below:

Platinum LEED certification

Platinum FGBC certification

Gold Water Star

Energy Star with a HERS rating of 18

Indoor air quality that exceeds the minimum requirements of a hospital operating room

Highest ratio of Construction Waste Diverted from Landfill in Florida - 303.4 tons (92.4%)

Sustainable Florida 2009 Best Practice Award for Landscape Design and Water Conservation

Jacksonville EPB 2010 Award for "Outstanding Efforts in Quality of Life by Environmental Achievement"

Michaela and Steve regularly share their lessons learned as green builders. They speak locally and nationally at many green events. To find out how YOU can save between $700 and $1,100 per year, visit www.builttotallygreen.com to learn about some of their simple, energy-saving tips.  

Community Gardening: Organic, Green and Sustainable

Because so many individuals lack the time, space and know-how to plant their own gardens, community gardens are gaining members. Such an effort to green the local food chain, and make Jacksonville that much more sustainable, is underway by Ethical Markets friend, Thomas Dumas. (Pictured here with Maria Pinochet, he and Maria frame the EARTHVISION poster by Ethical Market’s President, Hazel Henderson.)

The Argyle Area Community Garden is a first step toward the vision Mr. Dumas has for West Jacksonville to become a fully sustainable community. The garden is cared for by the garden members. Most of them garden in the "community" section (for $2.00 per month) where they all contribute seeds and fertilizer and make decisions jointly (e.g., what and where to plant). Currently, they are growing cauliflower, broccoli, kohlrabi, collards, Brussels sprouts, squash, kale, lettuce, radishes, beets, carrots, turnips, tomatoes, pole beans, arugula, garlic, sweet potatoes, peppers, bok choy, cabbage, strawberries, blackberries and cooking herbs. The community garden also offers members the option to have "private" plots that measure 4'x8' for $5.00 per month.

The gardeners strongly value the idea of sharing – with each other and with the community at large. Extra produce is regularly donated to the Wesconnett United Methodist Church food distribution program and to SafeHouse Ministries. An added treat: In addition to gardeners, the community garden welcomes artists who wish to showcase their outdoor art.

If you have questions or wish to arrange a garden tour, e-mail Sandi Newman at argylecommunitygarden@gmail.com.

If you want to learn to garden, want to share your love of gardening in the community plot, or want to arrange for your private plot, please plan to join us! Find out about the garden workdays at http://www.meetup.com/Argyle-Area-Community-Garden/.