Enterprise Sustainability Management Webcast

A webcast titled Enterprise Sustainability Management – Proactive, Global Information Strategy is a New Business Imperative, will take place on Wednesday, October 17, 2012, 8am Pacific/11am Eastern.

Companies around the world are gravitating toward a unified strategy for Enterprise Sustainability Management (ESM) that standardizes and consolidates a broad spectrum of data and workflows across the organization. They are using this holistic approach to address proliferating challenges in environmental, health and safety, operational risk management, product stewardship, energy, carbon, and beyond. Successful companies are integrating sustainability initiatives from all of these areas into core business operations in order to drive operational excellence.

Keeping Up with Market Demand for Sustainable Products and Services

As reviewed in a 2012 Accenture study, executives report having difficulty keeping up with demand for sustainable products and services. There are three powerful initiatives that companies can embrace to help meet this demand. They involve design innovation, investing in understanding and reviewing supply chain capabilities.  These recommendations from Accenture Sustainability Services are intended to ensure that companies are better able to keep up with market demand for sustainable products and services. Here is a more detailed summary of the three recommendations:

Even with Premium Pricing Demand for Sustainable Products Outpaces Supply

A new survey of executives from Accenture reveals that despite concerns that consumers are reluctant to pay more for sustainable products and services, more than half are charging a price premium for these products. Although less than half (47 percent) of executives polled expressed concerns that consumers will not pay more for sustainable products and services, 60 percent admitted to charging premiums. Almost three quarters (68 percent) claimed they can charge between 5 and 20 percent premiums. 17 percent claim they can charge premiums of between twenty and fifty percent. Yet, despite charging higher prices, over one third (37 percent) of surveyed businesses say they cannot keep up with customer demand for sustainable products and services.

Study Finds Sustainability is Vital to Growth

According to new research by Accenture, the vast majority of businesses say that sustainability is vital to their future growth. More than three quarters (78%) of the 250 senior executives polled indicated that sustainability is vital to their future growth and almost half (44%) indicated that sustainability is critical. Nearly two thirds (62%) said that their sustainability initiatives were motivated by customer expectations and almost the same number (62%) said they were motivated by the opportunity to drive growth. Less than half (41%) said they were motivated by regulatory compliance and less than one third (29%) indicated they were motivated by the need to reduce energy and material costs.

Puma Wins the Guardians' Sustainable Business Award

The Guardian announced that German athletic brand Puma was the winner of its Sustainable Business Award. This award is given for corporate initiatives that tackle pressing environmental and social challenges. Puma was recognized for its ground-breaking Environmental Profit and Loss Account. The accounting method puts a direct monetary value on ecosystem services used by the business – such as fresh water, clean air, healthy biodiversity and productive land – and on the negative impacts a company has on the environment.

Corporate Green Ranking: Top Spots and Most Improved

As reviewed in a June 4, 2012 Environmental Leader article, Computer chip maker Intel and home appliance manufacturer Whirlpool have been named as the major US firms with the strongest environmental governance, policies, and infrastructure in a report by sustainability consultants Soyka & Company. Intel maintained their top spot for 2012 in the Benchmarking Analysis of Disclosed U.S. Corporate Environmental Practices. Intel improved their score by five points, or 6.1 percent. Whirlpool moved up from tied for 28th place in last year’s study by virtue of a 25 point, or 41 percent, gain in its score.

The Sustainability Advantage: Short Costs Long Growth

Businesses are showing leadership and driving sustainability. The relationship between businesses and the consumer is changing, people increasingly expect responsible conduct that incorporates sustainability. Sustainability is no longer only a way to reduce risk and prepare for a more stringent regulatory environment. Sustainability is a competitive necessity and sustainable business actions are becoming de rigueur.

Sustainability Planning (Video): Business Practice Part 1/10

This short video addresses the concepts and strategies of sustainability planning for a coherent approach. Sustainability planning is important because it helps and organization to develop a strategy that focuses their resources efficiently. Sustainability planning is also a means of coordinating an approach that involves tracking that forms the basis of reporting. Finally sustainability planning reduces the chances of missing important elements. This video is part one of a ten part series on sustainability. It is a step-by-step guide to sustainability planning and serves as a business guide to sustainability. The speakers include Alan AtKisson and Marsha Willard who tackle the issues faced by organizations attempting to implement sustainable practices, and explore the practical experiences of consulting firms AXIS Performance Advisors and The AtKisson Group in an international context.

Corporate Sustainability Experts Scoff at International Agreements

Corporate sustainability experts have little faith in international agreements to combat climate change. When asked to rank the most effective strategies to reduce greenhouse gas (GHG) emissions, these experts put international agreements like Rio +20 dead last.

Corporate Sustainability Experts Want a Tax on GHGs

Corporate sustainability experts indicate that a tax on greenhouse gases (GHGs) is the best way to combat climate change. These experts want to change the economics of energy, they see government involvement as crucial to create the right incentives and disincentives to reduce emissions. Twice as many of these experts believe that economic instruments work better than education to auger meaningful change.

Sustainability Nears a Tipping Point - Why Companies are Profiting (Whitepaper)

This whitepaper is titled "Sustainability Nears a Tipping Point - Why Companies are Profiting." It is derived from the findings of the 2011 Sustainability and Innovation Global Executive Study and Research Project. The paper reviews how and why  companies are profiting from their sustainability activities.


To download the whitepaper click here.

Spring of Sustainability (Video)

Spring of Sustainability is a three-month event series that allows callers to interact directly with world-class visionaries by phone or webcast, at no charge.  The 100 speakers include a who's who of world leaders in the field of sustainability, amongst them are former member of the Obama Administration Van Jones and 350.org founder Bill McKibben.

Sustainability Live! Birmingham UK (Event)

On May 22-24 the Sustainability Live! event will take place in Birmingham UK. Sustainability live! is the UK’s leading sustainability event for the environmental, water,land, energy and sustainable business sectors.

Market Forces and the UK's Green Deal

In 2012 the UK is launching the green deal, which will unleash the competitive forces in the energy efficiency market. The green deal will be the biggest home energy improvement programme of modern times. Due in part to the green deal the energy efficiency market in the UK could reach £800m by 2020.

Business Will Lead the War Against Climate Change

In the wake of the failure of political solutions, the business community can lead the war on climate change. There are tremendous opportunities for businesses that show leadership in emissions reductions. Business has contributed greatly to environmental degradation and now the same capitalist system that drove the industrial revolution, is beginning to play a vital role by solving the problems it created.

Businesses are taking action on climate change in ever increasing numbers for many reasons including benefits to the corporate image and alignment of the corporation with the environmental interests of owners, employees, suppliers, and customers. Sustainable initiatives can also reduce costs, increase return on investments, and reduce dependency on uncontrollable costs like fossil fuels.

There is a powerful logic driving the growth of sustainable business. Many large corporations are showing leadership with sustainability initiatives that both reduce the size of their footprints and decrease their long term costs. Overall, a cost benefit analysis reveals the merits of sustainable practices. Although it is clear that some are faring better than others, Companies like Xerox, PUMA, HP, Walmart and even smaller companies like Zotos are successfully incorporating sustainability initiatives and reducing their footprints.

Business is well suited to finding innovative approaches as it is always looking for cheaper, faster, cleaner, more efficient and more effective solutions. Business is also more likely to find these opportunities than a government planner.

The combination of high energy prices and increasing consumer pressure are coalescing to drive businesses to adopt more sustainable practices. The general public increasingly expects companies to be sustainable. Social media is making it easier to coordinate mass campaigns and social action is making it harder for companies to ignore their footprint. Positive social actions like Carrot-Mobs and the powerful incentive of consumer loyalty are driving ever increasing levels of sustainability. Private incentives like the one million dollar X-Prize award, are also driving creative sustainable innovation.

As sustainability is still very young, the emissions reductions possibilities for business are massive. The vast majority of businesses have yet to adopt sustainable practices. According to the Sustainability & Innovation Survey by MIT’s Sloan Management Review and Boston Consulting Group, 82 percent of small companies have yet to go green, and 66 percent of large companies have yet to embrace sustainability. That leaves room for major emissions reductions.

Loss of competitive positioning and public ire are two powerful disincentives that are also driving businesses to embrace sustainability. The number of sustainable businesses will continue to grow because it is an unstoppable mega-trend. To assist companies in their efforts to go green, new alliances are developing including new partnerships between corporations and environmental organizations. Although consumers are still woefully ignorant about the environment, there can be no doubt that the green consumer is on the rise. Consumers have shown a steady and growing demand for green goods and services for several years now.

Increases to employee productivity and benefits to the brand are just two reasons why businesses will keep integrating sustainable practices to serve the company's best interest. Public pressure and customer loyalty will also add to the forces pushing companies to go green.

However the single greatest motive that will drive businesses to reduce their footprints is the profit incentive. As the most powerful of all incentives, profit will continue to be attractive to decision makers.

The green market is now estimated to be worth $5.27 trillion (£3.2 trillion) worldwide and in the next couple of decades the clean energy market alone is expected to be worth more than $13 trillion. With trillions at stake and ominous disincentives, businesses cannot afford to ignore the green market.

In today's business environment, sustainable practices are becoming a strategic priority. Although some businesses will need to cajoled to look beyond the short term profit cycle, there is ample incentive to expand their time horizons for a return on their investments.

In the absence of an environmental policy framework, leadership will come from visionary businesses that see the writing on the wall.

© 2011, Richard Matthews. All rights reserved.

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HP's Sustainable Innovation Serves the Planet and Profits

Hewlett-Packard (HP) proves that sustainability efforts can be a win-win proposition that is good for the environment and also good for the bottom line. HP has a long history of ‘doing the right thing’ that dates back to 1957. The company is the largest technology company in the world and it wholly integrates environmental considerations into its business strategy. The company sees sustainability as an integral part of the way business is conducted.

As reported in The Green Economy Post, HP is focused on minimizing environmental impacts and promoting the welfare and safety of employees and customers. For decades HP has worked to manage its environmental impact by adopting environmentally responsible practices in product development, operations and supply chain.

Frances Edmonds, the Director of Environmental Programs for HP Canada outlined how HP’s environmental commitment has led to greater profitability. She said, to be sustainable companies must have "a vision to reduce waste coupled with encouragement for employees to find innovative solutions for the uncertain journey that lies ahead."

Accounting for 2% of the world’s carbon emissions, the ICT sector (information and communication technology) has a very heavy footprint. According to Edmonds the information technology sector can reduce its own footprint and offer solutions to the world’s carbon problem. Edmonds was quick to include the fact that HP is firmly focused on playing a key role in finding and implementing these solutions.

Edmonds reviewed some simple yet innovative sustainable solutions including restricting an employee’s ability to book travel to other offices teleconferencing technology is available. HP has also shown leadership in responsible recycling of old technology and print supplies through its Planet Partners program which is active in over 50 countries.

HP's inkjet recycling program is a good illustration of the company's sustainable initiatives. The program was introduced in 2005, it achieved resource reduction through recycling that saves HP money and builds a stronger relationship with valuable supply chain partners like Staples.

HP's life cycle analysis (LCA) of the recycled inkjet cartridges prove the benefits of the company's recycling efforts. Between 2005 and 2010 recycling reduced the carbon footprint of the inkjet cartridges by 22 percent, cut fossil fuel use in half and reduced water use by 69 percent. Despite these impressive results, HP continues to improve. Carbon reductions are now 33 percent better than in 2005, fossil fuel use has been cut by 62 percent and the water savings have increased to 89 percent.

Edmonds highlighted HP’s management structure which encourages innovation and supports ‘doing the right thing.’ She also mentioned the company's reliance on Integrated principles of Extended Producer Responsibility which imply that HP accepts external responsibility for their products. Finally she stressed the importance of employee engagement programs that both explain issues and support them as they innovate.

HP is committed to sustainability because it knows that this approach results in better products, while increasing profits and decreasing environmental impact. For HP sustainability is a powerful competitive advantage.

To see Helwett Packard's document Sustainability as a Competitive Advantage, click here.

© 2011, Richard Matthews. All rights reserved.

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PUMA's Sustainable Packaging Innovation

In 2010 PUMA launched its innovative packaging solution known as the “clever little bag”, conceived in partnership with Yves Béhar. The company says new packaging initiatives will reduce cardboard use by 65 percent. Less packaging materials, means less use of water and energy to produce. This innovative solution reduces carbon emissions by 10,000 tons per year.

The Clever Little Bag has integrated the features of a traditional cardboard shoebox into a re-usable shoe bag. Reducing raw materials and the resources needed to make them.

PUMA will reduce water, energy and diesel consumption on the manufacturing level by more than 60% per year. This translates to saving approximately 8,500 tons of paper, 20 million Megajoules of electricity, 1 million litres less of fuel oil used and 1 million litres of water saved.

The Clever Little Bag also saves emissions and costs in shipping. Because it is smaller and lighter the Clever Little Bag provides reductions in transportation related emissions while reducing diesel fuel requirements by half a million litres.

The replacement of traditional shopping bags with the Clever Little Bag can save up to 275 tons of plastic. PUMA's apparel will be bagged in sustainable biodegradable materials replacing traditional polyethylene bags. This means that 720 tons of polyethylene bags can be avoided per year, which equals a saving of 29 million plastic bags and saves 192 tons of plastic. Replacing paper bags will save 293 tons of paper annually. All of PUMA's packaging materials used will be fully sustainable by 2015.

© 2011, Richard Matthews. All rights reserved.

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PUMA's Comprehensive Sustainable Strategy Now Includes Environmental Accounting

PUMA's efforts to improve social, labor and environmental standards throughout its operations date back to 1999. Since then the company has continuously incorporated environmental standards and practices to reduce its impact on the planet,

According to Jochen Zeitz, Chairman and CEO of PUMA, the companies mission is, “ to be the most desirable and sustainable Sportlifestyle company in the world.” To help with this mission the athletic apparel manufacturer identified opportunities to further manage the company's footprint using E-KPIs (Environmental Key Performance Indicators).

In 2010 PUMA launched another phase of the puma.safe initiatives and long-term sustainability program. It includes a set of ambitious targets. The company announced that it is reducing carbon, energy, water, and waste by 25 percent. PUMA also said that it will produce half of its international product collections in footwear, apparel and accessories according to best practice sustainability standards by 2015.

The athletic apparel manufacturer is cutting paper use by 75 percent and offsetting the remaining paper usage through tree planting initiatives. Through more efficient product transport solutions by logistic partners, the company will reduce CO2 by 25 percent. PUMA is also greening its supply chain by collaborating with strategic suppliers and logistic service providers to offset their own footprints.

Additionally, 50 percent of PUMA’s international collections will be manufactured according to the PUMA S-Index standard by 2015. This involves using sustainable materials such as organic cotton, Cotton Made in Africa or recycled polyester as well as applying best practice production processes.

To monitor these objectives the sports and lifestyle brand is also establishing an external Advisory Board of experts in sustainability to consult on the company’s mission and audit their sustainability program.

PUMA joined the UN Climate Neutral Network and has the industry’s first carbon neutral head office — the PUMA Vision Headquarters in Herzogenaurach, Germany.

Now Puma is producing the first-ever Environmental Profit and Loss (EP&L) statement. The company's new method of accounting will allow it to produce a new type of integrated reporting. The EP&L statement will attempt to measure the full economic impact of the brand on ecological systems including water and air. Puma commissioned Trucost and PwC to assist in developing the EP&L methodology.

The EP&L project is part of a larger environmental initiative by Puma’s parent company PPR Group, whose other brands include Gucci, Yves Saint Laurent and Stella McCartney. The group is also launching a “creative sustainability lab” in consultation with Cradle-to-Cradle, which PPR says will foster a new approach to product and business development. In this new approach, products and services will move beyond typical measures of quality--cost, performance and aesthetics--to integrate and apply additional objectives addressing environmental and social concerns.

The group said the overarching program, dubbed PPR Home, will go beyond the traditional Corporate Social Responsibility model and set a new standard in sustainability and business practice in the Luxury, Sport & Lifestyle and Retail sectors.

PBR bought carbon credits from Wildlife Works Reduced Emissions from Deforestation and Degradation (REDD) offsetting project in Kenya. The group has offset 98,729 tons of global CO2 emissions in 2010 for its Luxury group. Further, the Puma brand and PPR’s headquarters are both committed to carbon neutrality.

© 2011, Richard Matthews. All rights reserved.

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Innovation and the Development of Sustainable Products or Processes

Although each business faces unique challenges, developing sustainable products and processes offers a powerful competitive advantage. Developing a sustainable product or process is a complex endeavor with many interrelated concerns.

To develop a sustainable product or process businesses must find ways to assess and reduce their environmental impact. This concerns everything including raw materials, transportation, manufacturing processes, energy-consumption, disposal, and replacement.

Sustainable innovation demands ongoing optimization of every aspect of the product or process, including material selection, energy requirements, product safety, marketing, distribution, legal regulations, and end-of-life considerations.

When evaluating a sustainable product it is important to consider the entire life cycle and employ an integrative approach to innovation.

Businesses are increasingly innovating sustainable products and processes. Visionary business leaders who anticipate the winds of change and creatively develop sustainable products and processes will thrive in the rapidly changing economic landscape.
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Consumer Demand for Green

Green is increasingly part of almost every survey measuring consumer interests and/or buying behaviour. A well informed public is asking businesses to make more responsible choices and rewarding those that do with their patronage. In response businesses of all sizes are finding ways to make their operations more sustainable and environmentally responsible.

A recent article written by Dr. David Suzuki and Dr. Faisal Moola indicates that, "protecting our planet is no longer seen as a fringe activity. Most people now consider themselves to be environmentally aware and are taking steps to help. Caring for the environment has become mainstream – it’s the “new normal. Businesses respond to consumer demand, and the right demands can result in real benefits for the environment."

With the help of the David Suszuki Foundation, the Overwaitea Food Group has adopted a program that emphasizes sustainable seafood. Overwaitea president, Steve van der Lees said, "doing the right thing always pays off.”

As Kathleen McLaughlin writes, in an article entitled "Consumers Want Green Furniture Options, "environmentally friendly has transcended from a buzzword to a multi-million dollar revenue generator spanning many industries."

A "2008 Green Marketing Consumer Study," sponsored by the Sustainable Furnishing Council, indicates that appoximately half of respondents are "very interested in global warming and have started doing what they can, with the No. 1 action being to buy green products in a variety of categories."

According to another report, a majority of respondents indicated that businesses should reduce greenhouse gas emissions. The report also indicated that people are more likely to purchase products bearing a seal that proves corporate sustainability commitments.

Earlier this year Joel Makower wrote an article in which he reviewed the marketing data on Green and discovered that the vast majority of consumers say they have adopted, "greener habits in their daily lives, and shop for at least some products with a keen eye on their environmental provenance and energy and climate impacts. In other words: the marketplace is getting greener -- way greener.."

Consumers do not appear to be deterred by the current state of the economy. One study quoted by Makeover indicates that 82 percent of Americans say they're still buying green products despite changes in the economy.

Consumers have expressed real interest in making Greener purchases in everything from seafood to furniture and the business community is responding to this ever increasing consumer demand.

Business owners simply cannot afford to ignore consumers because if they fail to respond to consumer demand for Green, others will seize the opportunity.


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