green business best practices - resilient virginia · why green business best practices don’t go...

Green Business Best PracticesGreen Business Best Practices

Amy K. Townsend, Ph.D.Amy K. Townsend, Ph.D.

President, Sustainable Development International Corp.President, Sustainable Development International Corp.www.smartoffice.comwww.smartoffice.com

TopicsTopics

1.1. Why businesses are greening*Why businesses are greening*2.2. What businesses are greeningWhat businesses are greening3.3. How businesses are greeningHow businesses are greening4.4. Why green business best practices donWhy green business best practices don’’t go far t go far

enoughenough5.5. The need for business ecologyThe need for business ecology6.6. Guiding principles of business ecologyGuiding principles of business ecology

* I use * I use ““greengreen”” and and ““ecological sustainabilityecological sustainability”” interchangeably. interchangeably. Green processes/activities are those that support or enhance Green processes/activities are those that support or enhance ecosystem health and resilience.ecosystem health and resilience.

Why Firms Are GreeningWhy Firms Are Greening

Why Firms Are GreeningWhy Firms Are Greening

One or more reasons:One or more reasons:Environmental Environmental concern/valuesconcern/valuesGovernment regulationsGovernment regulationsEconomic incentives/ Economic incentives/ disincentivesdisincentivesEnvironmental crisesEnvironmental crisesStakeholder pressureStakeholder pressure

Stakeholder Pressure

Stakeholder Pressure

Environmental Crises

Environmental Crises

Economic Incentives/

Disincentives

Economic Incentives/

Disincentives

Government Regulation

Government Regulation

Environmental Values & Concerns

Environmental Values & Concerns

Business Greening

Business Greening

Greening Due to Environmental Values & ImpactsGreening Due to Environmental Values & Impacts

Patagonia: Patagonia: Outdoor clothing producerOutdoor clothing producer

Switched to organic cotton in Switched to organic cotton in its cotton clothingits cotton clothingCreated synthetic fleece from Created synthetic fleece from recycled milk jugsrecycled milk jugsPays employees to intern for Pays employees to intern for environmental organizationsenvironmental organizations

"I'm not in business to make money. "I'm not in business to make money. All I need in life is a surfboard and a All I need in life is a surfboard and a flyfly--rod. I'm in business to change the rod. I'm in business to change the business model." business model."

–– Patagonia founder and president Yvon ChouinardPatagonia founder and president Yvon Chouinard

Greening for Government Regulation

Suncor Energy (Canada)

Early 1990sSuncor often failed to comply with environmental laws

Government threatened to close key operations

New management Focused on complianceImproved stakeholder relationsCommitted to invest $100 million in renewable energy by 2005

Produces about 15% of Canada’s wind energy

Greening for Economic ReasonsGreening for Economic Reasons

Estee LauderEstee Lauder1997 1997 -- purchased Avedapurchased Aveda

““It's a perfect fit for us. It's part of an overall strategy to It's a perfect fit for us. It's part of an overall strategy to plug in to where the plug in to where the market is growing and where the market opportunities aremarket is growing and where the market opportunities are””

-- Leonard Lauder, Estee LauderLeonard Lauder, Estee Lauder’’s chairman and CEOs chairman and CEO

Greening after an Environmental CrisisGreening after an Environmental Crisis

Royal Dutch/Shell Royal Dutch/Shell –– 19951995

Nigeria: Nigeria: Nonviolent demonstrations Nonviolent demonstrations against Shellagainst Shell’’s oil productions oil production

Shell closed its operationsShell closed its operationsNigerian government lost Nigerian government lost revenuerevenue

Executed demonstratorsExecuted demonstrators

Anger at Shell for not making Anger at Shell for not making more of an effort to save themmore of an effort to save them

North Sea:North Sea:Shell planned to sink a 14,000 Shell planned to sink a 14,000 ton oil platform (the Brent Spar)ton oil platform (the Brent Spar)

Greenpeace began protests & Greenpeace began protests & boycotts in Germanyboycotts in Germany

Shell lost 5 million pounds/week Shell lost 5 million pounds/week in salesin sales

Began to approach Began to approach human rights and human rights and environmental issues environmental issues differentlydifferently

Sought stakeholder Sought stakeholder feedback & feedback & involvementinvolvement

Greening for Stakeholder PressureGreening for Stakeholder Pressure

Mitsubishi Corp.Mitsubishi Corp.

–– 1990s: Rainforest Action 1990s: Rainforest Action Network boycottNetwork boycott

Harmful logging/mining Harmful logging/mining practicespracticesBoycotted entire corporationBoycotted entire corporation

–– RAN got two companies to RAN got two companies to commit to greener behaviorscommit to greener behaviors

Mitsubishi Motor Sales of Mitsubishi Motor Sales of America America Mitsubishi Electric of AmericaMitsubishi Electric of America

What Firms Are GreeningWhat Firms Are Greening

What Firms Are Greening

One or more of 5 elements

How Firms Are GreeningHow Firms Are Greening

How Firms Are Greening

• Businesses use broad range of tools for greening = “green business best practices”– Principles – guide organization’s thinking, behavior– Certification programs – certify that a company (ISO 14000, EMAS),

product (ecolabels), or facility (LEED, Energy Star) has greener features– Corporate environmental reporting – provides a venue for touting

environmental improvements and goals– Methods

• Assessment methods – assess company’s environmental performance– Ecological footprint– Environmental audits– Environmental benchmarking– Environmental performance evaluations– Life cycle analysis/assessment– Life cycle cost accounting

• Improvement methods – better a company’s environmental performance– Design for environment– Eco-efficiency– Total quality environmental management

How Firms Are Greening How Firms Are Greening ––Assessment MethodsAssessment Methods

Ecological FootprintEcological FootprintAmount of ecologically Amount of ecologically productive land and sea productive land and sea required to support a required to support a personperson’’s/groups/group’’s material s material consumption and absorb consumption and absorb their wastes their wastes


Environmental auditEnvironmental auditA period, systematic, thirdA period, systematic, third--party party assessment of companyassessment of company’’s s environmental performance environmental performance Focuses on equipment and Focuses on equipment and systemssystems


Environmental benchmarkingEnvironmental benchmarkingSets internal standard against which a company can measure Sets internal standard against which a company can measure environmental performanceenvironmental performanceCan be used to measure substance emissions, energy use, recyclinCan be used to measure substance emissions, energy use, recycling g volume, or any other activity company wants to improvevolume, or any other activity company wants to improveAfter establishing benchmark, company can set goals for After establishing benchmark, company can set goals for improvement (e.g., reduce COimprovement (e.g., reduce CO2 2 emissions by 40% by 2008)emissions by 40% by 2008)


Environmental performance evaluations

Internal management process used to assess environmental performanceUses indicators to assess a company’s past and current environmental performance with its overall environmental performance goalsInternational Organization for Standardization (ISO) established set of guidelines to help businesses conduct EPEs


Life cycle assessmentLife cycle assessmentOffers way to identify potential Offers way to identify potential environmental impacts of a product environmental impacts of a product or service throughout its entire life or service throughout its entire life Technical, timeTechnical, time--intensive process that intensive process that accounts for all phases of a productaccounts for all phases of a product’’s s (or service(or service’’s) life s) life –– from resource from resource extraction and manufacturing to use extraction and manufacturing to use and disposal or reuse and disposal or reuse


Life cycle cost accountingDeveloped in order to make the environmental and social costs of a product visible Differs from normal environmental cost accounting – environmental costs of a product/project must be accounted for throughout its entire life cycleIdentifies as many environmental and social costs as possible throughout a product/project’s lifetime

How Firms Are Greening –Improvement Methods

• Design for Environment– Incorporates all known environmental

factors into the design process• Companies use DfE in industrial ecology

How Firms Are Greening –Improvement Methods

• Eco-efficiency– Efficient use of economic & ecological

resources• To create value for environment and customer

– Broader in scope than DfE

How Firms Are Greening How Firms Are Greening ––Improvement MethodsImprovement Methods

Total quality environmental managementTotal quality environmental managementBased on management strategy of continuous Based on management strategy of continuous improvementimprovementSeeks to constantly better a productSeeks to constantly better a product’’s or s or processesprocesses’’ environmental performanceenvironmental performance

•• Goal is sustainability through Goal is sustainability through ““total qualitytotal quality””

Why Green Business Best Why Green Business Best Practices DonPractices Don’’t Go Far Enought Go Far Enough

Best Practices

• Short-term measures– Important steps in transition

from current non-sustainable business paradigm to sustainable one

– But many “best practices”simply don’t go far enough

Best PracticesBest Practices……

Focus on integrating environmental issues into Focus on integrating environmental issues into business activities (e.g., production)business activities (e.g., production)

Establishes business Establishes business –– rather than environment rather than environment –– as as baseline baseline

Need to integrate firm into environmentNeed to integrate firm into environment

Best Practices…• Do not put the environment first

– Rarely ask “should this company/industry/product exist?”

Best Practices…

• Often green only part of company– e.g., focus on

energy-efficiency while ignoring mission


Focus on reducing environmental harmFocus on reducing environmental harmGreat but doesnGreat but doesn’’t go far enought go far enoughNeed to renew degraded ecosystems, rebuild natural resourcesNeed to renew degraded ecosystems, rebuild natural resources

Best Practices…

• Focus on reduction and replacement strategies – Reduce resource use/waste – Replace toxic materials with non-toxic/less

toxic ones– Important but needs to go farther

Focus almost exclusively on quantitative Focus almost exclusively on quantitative measures of sustainabilitymeasures of sustainability

““What gets measured gets managedWhat gets measured gets managed””Misses richness of qualitative issuesMisses richness of qualitative issues

HumanHuman--ecological relationshipsecological relationshipsSocial equitySocial equityQuality of lifeQuality of life



Use generic approaches Use generic approaches to climate change, other to climate change, other environmental issuesenvironmental issues–– Not informed by unique Not informed by unique

details of individual sitesdetails of individual sitesEcological qualities, Ecological qualities, constraints, constraints, opportunitiesopportunities

As a result, current best practices provide little to no:As a result, current best practices provide little to no:–– Local/regional ecological knowledgeLocal/regional ecological knowledge–– Knowledge about firmKnowledge about firm’’s specific environmental impactss specific environmental impacts–– Mechanisms for perceiving/responding to ecological Mechanisms for perceiving/responding to ecological

feedbackfeedback–– Means for adapting companies to the ecosystems that Means for adapting companies to the ecosystems that

support themsupport them

Best PracticesBest Practices

►► Most best practices for greening/climate Most best practices for greening/climate change do not go far enoughchange do not go far enough

NeedNeed……►►LongLong--term solutions that address root causes of term solutions that address root causes of

climate change, environmental problemsclimate change, environmental problems►►To move beyond goal of To move beyond goal of ““doing less damagedoing less damage””►►New vision and direction for greening business New vision and direction for greening business

andand for for business itselfbusiness itselfAsk: What should purpose of company be?Ask: What should purpose of company be?What products are worthy of being created?What products are worthy of being created?

The Need for a The Need for a Business EcologyBusiness Ecology

Business EcologyBusiness Ecology

Relatively new field, many definitionsMost definitions not ecologically based

Ecology: branch of biology that studies relationships among living organisms (including humans) and their environments

Business ecology: the study of the relationship between a company (a human social organization) and the natural environment

Purpose of Business EcologyPurpose of Business Ecology

The full ecological synchronization and integration of a business with the places that it inhabits through its facilities, uses for its resources, and affects through its products and processes.

Goal of Business EcologyGoal of Business Ecology

Business ecology has an agendaTo inform organizations of their environmental opportunities, constraints, and impacts so that they might more effectively work toward ecological sustainability

Business Ecology

• Develop ecologically beneficial relationships with company’s primary, secondary, and tertiary sites– Primary sites – place that company inhabits through

its facilities – Secondary sites – places that a company uses for its

resources– Tertiary sites – places affected by business activities

• Sometimes more difficult to identify• Can include global climate, ozone layer, and frog’s DNA

The 12 Guiding Principles of The 12 Guiding Principles of Business EcologyBusiness Ecology

The 12 Guiding Principles The 12 Guiding Principles of Business Ecologyof Business Ecology

Broken into 50 subBroken into 50 sub--principles/stepsprinciples/stepsRelevant to climate Relevant to climate change and other change and other environmental issuesenvironmental issues

1: Commit to Sustainability1: Commit to Sustainability

•• Company commits to the ongoing adoption, Company commits to the ongoing adoption, use, and improvement of sustainability use, and improvement of sustainability principles and practices at all levels of the principles and practices at all levels of the company. company.

2: Align with Sustainability2: Align with Sustainability

Align all aspects of the firm, including Align all aspects of the firm, including values and organizational structure, to values and organizational structure, to sustainabilitysustainability..

3: Identify the Scope of Effort3: Identify the Scope of Effort

Company identifies its primary, secondary, Company identifies its primary, secondary, and tertiary sitesand tertiary sites–– To develop ecologically beneficial businessTo develop ecologically beneficial business--

toto--nature (B2N) relationshipsnature (B2N) relationships

4: Develop Ecological Knowledge4: Develop Ecological Knowledge

Company learns all it can about primary, secondary, Company learns all it can about primary, secondary, and tertiary sites on multiple spatial and temporal and tertiary sites on multiple spatial and temporal scalesscales–– Ecological literacyEcological literacy

5: Identify an Ecological 5: Identify an Ecological Niche(sNiche(s))

Company identifies an ecological niche, or role, Company identifies an ecological niche, or role, in its sites. in its sites. –– Find opportunities in everything.Find opportunities in everything.–– Engage in ongoing research to identify areas for Engage in ongoing research to identify areas for

businessbusiness--ecological improvements and innovations.ecological improvements and innovations.

6: Design for Sustainability

Company ensures that all designs are…Not only context-sensitive but context-drivenKeep company activities local and within the means of the site and local ecosystemsRebuild energy stores in order to rebuild natural capitalSynchronize company’s temporal (pace) and spatial (size) patterns with those of the sites.

7: Inhabit the Business7: Inhabit the Business--Ecological Ecological Niche(sNiche(s))

Company carries out its sustainable design byCompany carries out its sustainable design by……Developing and using management practices that Developing and using management practices that have emerged from local ecological contextshave emerged from local ecological contextsSynchronizing with natural direction and momentum Synchronizing with natural direction and momentum Working with the system to build enough ecological Working with the system to build enough ecological capital to establish enduring selfcapital to establish enduring self--reliancereliance

8: 8: Pay Attention to Negative and Pay Attention to Negative and Positive FeedbackPositive Feedback

Company identifies Company identifies positive & negative positive & negative ecological feedbackecological feedback–– Continuous Continuous

improvementimprovement

9: Adapt for Improved Business9: Adapt for Improved Business--Ecological RelationsEcological Relations

CompanyCompany……–– Develops mechanisms for adaptive Develops mechanisms for adaptive

managementmanagement–– Adapts to and with its sites through time as Adapts to and with its sites through time as

they respond to change on different scalesthey respond to change on different scales

10: Network with Others to 10: Network with Others to Make Sustainability PossibleMake Sustainability Possible

Company networks up and down supply chain Company networks up and down supply chain and and outward with local landholdersoutward with local landholders. .

Regenerate ecosystem health to develop everRegenerate ecosystem health to develop ever--larger green larger green spacesspaces

11: Exercise Accountability to All Stakeholders

Company acknowledges and practices complete responsibility to all stakeholders.

12: Be Transparent in All Words 12: Be Transparent in All Words and Actionsand Actions

Company is open and honest Company is open and honest regarding its activities and the regarding its activities and the potential and real impacts on potential and real impacts on stakeholders.stakeholders.

Business EcologyBusiness Ecology

12 guiding principles occur in context of the five business elements

Business Ecology

• 50 sub-principles developed using:– Principles for greener business

• Business Charter for Sustainable Dev’t.• The CERES Principles• McDonough & Braungart – Eco-effectiveness Principles

– Principles for sustainability• Robert – The Natural Step• Van Der Ryn & Cowan – Ecological Design Principles• Lyle – Regenerative Design Principles• Holmgren – Permaculture Principles• Folke, Berkes, and Colding – Sustainable Ecosystem

Management Principles

Business Ecology’s Further Development

• Sustainability inherently trans-disciplinary

• Will require input from several fields:– Green business– Industrial ecology– Green architecture– Green landscape design– Environmental science– Ecology– Systems science– Ecosystem management– Adaptive management– Permaculture– Environmental anthropology– Ecological economics

Amy K. TownsendAmy K. TownsendPresident, SDICPresident, SDICwww.smartoffice.comwww.smartoffice.com

For more information:For more information:Explains why Explains why businesses are businesses are greeninggreeningDiscusses five elements Discusses five elements of companyof companyIntroduces concept of Introduces concept of business ecologybusiness ecology

Business Ecology Principles12 Guiding Principles Business Ecology Sub-Principles

I. Commit to sustainability

1 Commit to sustainability at all organizational levels, particularly at the top.

II. Align with sustainability

2 Build organizational values for sustainability.

3 Align the organizational structure and processes for sustainability.

4 Integrate sustainability into all decisions and activities.

5 Educate and empower employees for sustainability.

6 Create mechanisms to facilitate perception, learning, and business-ecological co-evolution.

III. Identify scope of efforts

7 Identify sites and, if necessary, prioritize for renewal.

IV. Develop ecological knowledge

8 Develop detailed general and site-specific ecological knowledge on multiple spatial and temporal scales.

V. Identify an ecological niche

9 Find opportunities in everything.

10 Engage in ongoing research to identify areas for business-ecological improvements and innovations.

Business Ecology Principles (2)

VI. Design for sustainability 11 Acknowledge nature’s role as mentor, model, and partner.

12 Create forms that guide the movement of energy to benefit business-ecological systems.

13 Develop ecologically beneficial products and services.

14 Assess and design out likely harmful ecological impacts on all temporal and spatial scales.

15 Use ecological knowledge to avoid “overdesign,” scaling (pace/size) company activities accordingly.

16 Learn about and work with nature for mutual benefit, keeping company activities local and within the means of the site and local ecosystems.

17 Recognize and work from patterns at multiple scales, synchronizing company temporal and spatial patterns with those of the sites.

18 Ensure that all designs are not only context-sensitive but context-driven.

19 Design flexibility into human systems to allow for adaptation and innovation.

20 Maximize benefit for the greatest number of systems on the greatest number of scales.

21 Facilitate and protect ecological (including human) diversity.

22 Design to rebuild energy stores in order to rebuild natural capital.

23 Address system problems rather than symptoms.

24 Make ecological forms, flows, and processes obvious in all designs.


VII. Inhabit the business-ecological niche

25 Develop and use management practices that have emerged from local ecological contexts.

26 Synchronize with natural direction and momentum (flows and activities).

27 Facilitate and support ecospheric health forever.

28 Build inclusive rather than exclusive relationships.

29 Ensure that all business elements are used and maintained sustainably.

30 Choose renewable resources over non-renewable ones, using them conservatively.

31 Use minimal technology appropriate to the need.

32 Work with the system to build enough ecological capital to establish enduring self-reliance.

VIII. Pay attention to negative and positive feedback

33 Create mechanisms for identifying and assessing feedback.

34 Identify both positive and negative ecological feedback for learning and improvement.

35 Gather and use knowledge regarding life cycle impacts of the thing or activity.

IX. Adapt for improved business-ecological relations

36 Develop mechanisms for adaptive management.

37 Use adaptive management for continuous business-ecological improvements.


X. Network with others to make sustainability possible

38 Green others up and down the value chain (e.g., suppliers, distributors, wholesalers, consultants, customers).

39 Share knowledge of green products and processes with other sectors.

40 Engage in broader discourse and activities regarding sustainability.

XI. Exercise accountability to all stakeholders

41 Redress harm and renew ecosystem health.

42 Use resources sustainably and ensure resource equity for all species.

43 Encourage and facilitate everyone’s voice and involvement.

44 Eliminate waste.

45 Prevent environmental harm.

46 Minimize or eliminate risk of harm to all stakeholders.

47 Inform stakeholders on handling product safely through life cycle.

48 Prepare for (but preempt) emergencies.

XII. Be transparent in all words and actions

49 Exercise absolute honesty and transparency with all stakeholders.

50 Assess and report on the company’s environmental performance regularly.

Business Ecology Conceptual Framework

Business Ecology Conceptual Framework (2)

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