Green Strategies
Environmentally sensitive business practices are about more than just good corporate citizenship. Customers are increasingly demanding that the companies with which they do business engage in sustainable business practices. In our latest provocative discussion, three experts discuss what’s good about being “green.”
Got a question for our roundtable? E-mail us at special.sections@newsweek.com. |
| From tourism to technology to consumer products, sustainable business practices—that is, operations and supply chains that are environmentally conscious—are an increasing priority among customers, consumers, retailers and investors. Market leaders are working on influencing businesses to be more “green.” These include Goldman Sachs, which now has an environmental policy that includes investing in sustainable business, and Wal-Mart, which recently announced a scorecard to grade suppliers’ environmental progress. We asked three thought leaders about the sustainable business movement and how managers can create positive environmental change in their companies. |
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| Q. Why is it a good idea for companies to adopt more environmentally conscious ways of doing business ? |
Mark Buckley: I think that for far too long, business values and environmental values have seemed like diametrically opposing values. But they’re not. Good environmental practices conserve resources, reduce waste and add to profitability long-term.
Andrew Winston: The biggest companies in the world are not just talking about this, but they’re doing something about it. If your customers are basically business customers, the amount of questioning about the environmental impact of your supply chain is unprecedented. Wal-Mart has asked every supplier to reduce the use of non-renewable energy. When Wal-Mart sends these requests, you almost don’t have a choice.
Jonathan E. Furr: Increasingly, government is requiring it. Also, society as a whole is increasingly more conscious of what businesses do and what impact that has on the planet. Sustainable business operations are an opportunity to show that businesses care about employees and their communities. |
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| Q. How can being more “green” pay off? What are the bottom-line benefits ? |
| Andrew Winston: There are a few sources of value creation in companies thinking green. They can cut costs by being more eco-efficient. They avoid the potential for lawsuits based on environmental contamination. They can drive new revenue by creating products that are more green in a marketplace that is demanding such products. All of these things can add to brand value. |
| Jonathan E. Furr: From a building perspective, several studies have been done, including several by clean energy consultant Greg Kats, who found that LEED-rated [Leadership in Energy and Environmental Design] buildings can be 25 to 30 percent more energy-efficient. A green roof—that is, one covered partially or completely by plants—will require less maintenance than its counterparts. There are even insurance products coming on market with better rates for green buildings. And, of course, there are benefits to having an environment where tenants like to work. |
| Mark Buckley: Certainly waste management and energy efficiency are bottom-line environmental benefits. If you can divert waste or recover more valuable commodities out of the waste stream and sell those, there’s cost benefit and potential revenue stream. If you have excess packaging design built in, ask “Are there opportunities to reduce that and still get your brand message across?” That reduces cost and reduces waste. |
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| Q: What are some actions managers can take to “green” their companies ? |
| Jonathan E. Furr: Work with your bosses to make this more of a focal point. We’re a 1,200-person law firm. Several attorneys took this issue and highlighted it within our own organization, looking at the green-ness of what we’re doing. It doesn’t take too many voices to get the attention of decision-makers. Consider the energy efficiency of the equipment you buy. There are certainly ways to look at procurement, such as whether products you buy need to be shipped to you over long distances. Look at ways to reduce what you’re using and the waste you create. |
| Mark Buckley: I think that first, look for the available resources within your organization, such as existing recycling programs, then seek out other resources available to you. Staples is part of Earth911.org, which is a zip code–based tool. When you punch in a zip code, it puts you in touch with resources in close proximity to the business that can help you be more green. |
| Andrew Winston: There are lots of little things, from setting an automatic sleep mode for computers that decreases energy use at night, to setting up an office recycling program. These little things can add up. There’s actually an automatic sprinkler system that checks the weather first before turning the water on; that’s a use of technology in a smart way. |
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| Join the conversation by e-mailing special.sections@newsweek.com. |
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