Guide to
Sustainable Business Growth
●●● For Western Pennsylvania Small Businesses ●●●
© 2014 by the Center for Green Industries and Sustainable Business Growth of Duquesne University, Pittsburgh, PA.
All Rights Reserved. No part of this publication may be reproduced in any form or by any means without written permission from the publisher. All opinions, conclusions, or recommendations expressed are those of the author and do not necessarily reflect the views of Duquesne University.
The Center for Green Industries and Sustainable Business Growth has made reasonable efforts to ensure the accuracy of this information. If may, however, include inaccuracies or typographical errors and may be changed or updated without notice. It is intended for discussion and educational purposes only and is not intended to and does not constitute legal financial or other professional advice. Some materials may provide links to other Internet sites only for the convenience of users. The Center for Green Industries and Sustainable Business Growth is not responsible for the availability or content of these sites. Duquesne University and the Center for Green Industries do not endorse or recommend any commercial products, processes, services, producer, or provider referenced in this material or information described or offered at other Internet sites.
The Center for Green Industries and Sustainable Business Growth is partially supported by the U.S. Economic Development Administration.
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Table of Contents
Ten Steps to Sustainable Growth ...... 5
Step 1: Comply with Environmental Regulations ...... 8
Step 2: Develop an Environmental Management Plan ...... 12
Step 3: Build Green ...... 18
Step 4: Design, Buy, & Sell Green Products ...... 27
Step 5: Adopt Energy Efficient Practices...... 42
Step 6: Reduce, Reuse, Recycle Wastes ...... 53
Step 7: Conserve Water ...... 60
Step 8: Prevent Pollution ...... 62
Step 9: Create a Green Marketing Strategy ...... 67
Step 10: Join Industry Partnership and Stewardship Programs ...... 71
Additional Web Resources ...... 74
Bibliography ...... 75
Index ...... 81
Written by Zach Stern, MBA ‘12, Duquesne University
Editors: Mr. Thomas Bartnik, Executive Director, Pittsburgh Green Innovators Dr. Mary McKinney, Director, Duquesne University Small Business Development Center Dr. James Phillips, Senior Director of Sponsored Research, Duquesne University Dr. Robert Sroufe, Associate Professor of Business Administration, Duquesne University Donahue Graduate School of Business
Guide to Sustainable Business Growth - 3 -
“The only sustainable competitive advantage is an organization's ability to learn faster than the competition.” -Dr. Peter Senge, Massachusetts Institute of Technology
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Ten Steps to Sustainable Growth
Many businesses struggle to adapt to the changing priorities of the world. As the people begin to understand the challenges and obstacles that they face, businesses must adjust accordingly. Global climate change, water and food scarcity, and the “green movement” have caused businesses to alter many of their strategies to include sustainable initiatives. The most common definition of sustainable development was developed by the Bruntland Commission in 1987 and states that it is “development which meets the needs of current generations without compromising the ability of future generations to meet their own needs.1"
If you are a new business owner, you have the opportunity to start from scratch while many existing business owners must adapt to the world’s demands. In other words, while others are “going green,” you have the opportunity to simply “start green and stay green.” The following guide will provide vital information for how to successfully conduct responsible “green business” so that future generations may do the same.
What do we mean by sustainable? The Center for Green Industries defines a sustainable business as one that meets the short and long-term needs of its stakeholders, minimizes costs, and maximizes profits, while preserving the resources needed for a viable future. A business is green either because it makes a product which has a positive impact on the environment or the processes it uses to make its products are clean, green, and sustainable.
A common misconception about sustainability is that the environment is sometimes the only entity that benefits from sustainability practices. It is important to note that sustainability must be cost-effective and therefore profitable.
The Triple Bottom Line Throughout the guide you will hear about the Triple Bottom Line. Many companies use this framework to develop green initiatives. This phrase, first coined by British sustainability consultant John Elkington, argues that companies should be focusing on impacting three bottom lines – economic, environmental, and social. The economic bottom line should focus on maximizing profits and minimizing losses. The environmental bottom line should focus on minimizing impact to the planet through environmental responsibility. Finally, the social bottom line focuses on measuring how socially responsible an organization has been to the people of the world.2 Princeton University developed a Venn diagram accurately illustrates the interconnection in the Triple Bottom Line.3
1 “Sustainable development – concept and action.” UNECE. 2005. http://www.unece.org/oes/nutshell/2004-2005/focus_sustainable_development.html 2 “Triple bottom line.” The Economist. 17 Nov 2009. http://www.economist.com/node/14301663 3 “Princeton University Outdoor Action Sustainability Guide.” Princeton University. 2012. http://www.princeton.edu/~oa/sustainability/OutdoorActionSustainabilityGuide-Web.pdf Guide to Sustainable Business Growth - 5 -
The Ten Steps to Sustainable Growth The U.S. Small Business Administration lists the ten steps to operating a green business.4 These steps will be explored further throughout the guide.
Step 1: Comply with Environmental Regulations As a green business, you should practice what you preach. This means complying with all environmental regulations relevant to your business. Compliance not only protects the environment, it protects your business from fines and legal action that could be imposed by the government.
Step 2: Develop an Environmental Management Plan Running a green business means creating an environmentally-friendly, energy efficient workplace. A sound environmental plan will help minimize your company's eco-footprint and encourage green business practices throughout your organization.
Step 3: Build Green If you are opening a business in a new or remodeled building, make sure you build green by not only installing energy efficient heating and air conditioning systems, appliances, equipment and lighting, but taking an integrated design approach to green construction.
Step 4: Design, Buy, & Sell Green Products Consider buying and selling environmentally-friendly products that are made from post-consumer, recycled materials, bio-based, non-toxic, rated energy efficient, renewable and recyclable, and produced locally.
Step 5: Adopt Energy Efficient Practices The prudent and conservative use of energy is one of the easiest and most cost-effective steps you can take to cut costs, increase profitability and create shareholder value. Given the potentially high returns and minimal risk, implementing energy efficiency practices is at the core of most business environmental management strategies. Many of these practices also have reasonable pay-back periods and long-term returns on investment.
Step 6: Reduce, Reuse, Recycle Wastes In addition to lower removal costs, waste reduction measures help cut costs on raw materials, office supplies and equipment, and further promote a work culture of efficiency.
Step 7: Conserve Water By implementing a water efficiency program, not only can you help conserve this precious resource, but also cut the costs associated with buying, heating, treating and disposing of water.
Step 8: Prevent Pollution Every business generates waste. For some, it may be only waste paper or dirty water. Other businesses may generate hazardous or toxic wastes that require special handling and disposal. Where possible, businesses should explore alternative products or processes that reduce or eliminate toxic products or by-products.
Step 9: Create a Green Marketing Strategy
4 “Green Guide for New Businesses.” SBA. 2012. http://www.sba.gov/content/green-guide-new-businesses Guide to Sustainable Business Growth - 6 -
If you are converting to green initiatives, it would be beneficial to green your marketing strategy. Adding "green" credentials and eco-labels to your marketing strategy will enhance your brand image and secure your market share among the growing number of environmentally concerned consumers.
Step 10: Join Industry Partnership and Stewardship Programs The EPA sponsors a wide variety of industry partnership and stewardship programs that aim to reduce the impact of industrial activities on the environment. These partnerships will help you build relationships with other green business owners in your industry and a brand that's credible with your customers.
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Step 1: Comply with Environmental Regulations
Federal and state governments enact laws regarding environmental impact, and the Environmental Protection Agency (EPA) regulates and enforces them. It is vital that you understand and comply with all environmental policies. Not doing so is a violation of law and can result in large penalties and fines. The EPA and SBA are great resources for researching and better understanding environmental laws.
Important Laws and Regulations This section highlights some of the most pertinent and important environmental laws put forth by United States Congress. It is not a comprehensive list and there are additional laws that may apply to your specific operations or industry. A full list of laws and regulations is available at www.epa.gov.
Clean Air Act (CAA) - the comprehensive federal law that regulates air emissions from stationary and mobile sources. Among other things, this law authorizes EPA to establish National Ambient Air Quality Standards (NAAQS) to protect public health and public welfare and to regulate emissions of hazardous air pollutants. Clean Water Act (CWA) - establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, or Superfund) - provides a Federal "Superfund" to clean up uncontrolled or abandoned hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants into the environment. Endangered Species Act (ESA) - provides a program for the conservation of threatened and endangered plants and animals and the habitats in which they are found. Energy Independence and Security Act (EISA) - reinforces the energy reduction goals for federal agencies put forth in Executive Order 13423 (Strengthening Federal Environmental, Energy, and Transportation Management), as well as introduces more aggressive requirements. The three key provisions enacted are the Corporate Average Fuel Economy Standards, the Renewable Fuel Standard, and the appliance/lighting efficiency standards. Energy Policy Act - addresses energy production in the United States, including: (1) energy efficiency; (2) renewable energy; (3) oil and gas; (4) coal; (5) Tribal energy; (6) nuclear matters and security; (7) vehicles and motor fuels, including ethanol; (8) hydrogen; (9) electricity; (10) energy tax incentives; (11) hydropower and geothermal energy; and (12) climate change technology. For example, the Act provides loan guarantees for entities that develop or use innovative technologies that avoid the by- production of greenhouse gases.
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Federal Food, Drug, and Cosmetic Act (FFDCA) - authorizes EPA to set tolerances, or maximum residue limits, for pesticide residues on foods. Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) - provides for federal regulation of pesticide distribution, sale, and use. All pesticides distributed or sold in the United States must be registered (licensed) by EPA. Before EPA may register a pesticide under FIFRA, the applicant must show, among other things, that using the pesticide according to specifications "will not generally cause unreasonable adverse effects on the environment.'' FIFRA defines the term ''unreasonable adverse effects on the environment'' as: (1) any unreasonable risk to man or the environment, taking into account the economic, social, and environmental costs and benefits of the use of any pesticide, or (2) a human dietary risk from residues that result from a use of a pesticide in or on any food inconsistent with the standard under section 408 of the Federal Food, Drug, and Cosmetic Act.' National Environmental Policy Act (NEPA) – one of the first laws ever written that establishes the broad national framework for protecting our environment. NEPA's basic policy is to assure that all branches of government give proper consideration to the environment prior to undertaking any major federal action that significantly affects the environment. Pollution Prevention Act (PPA) - focuses industry, government, and public attention on reducing the amount of pollution through cost-effective changes in production, operation, and raw materials use. Opportunities for source reduction are often not realized because of existing regulations, and the industrial resources required for compliance, focus on treatment and disposal. Pollution prevention includes practices that increase efficiency in the use of energy, water, or other natural resources, and protect our resource base through conservation. Resource Conservation and Recovery Act (RCRA) - gives EPA the authority to control hazardous waste from the "cradle-to-grave." This includes the generation, transportation, treatment, storage, and disposal of hazardous waste. Safe Drinking Water Act (SDWA) - authorizes EPA to establish minimum standards to protect tap water and requires all owners or operators of public water systems to comply with these primary (health-related) standards. Shore Protection Act (SPA) - prohibits the transportation of municipal or commercial waste within coastal waters by a vessel without a permit and number or other marking. Permits are not to run beyond renewable five-year terms and will terminate when the vessel is sold. Toxic Substances Control Act (TSCA) - provides EPA with authority to require reporting, record- keeping and testing requirements, and restrictions relating to chemical substances and/or mixtures. Certain substances are generally excluded from TSCA, including, among others, food, drugs, cosmetics and pesticides.
Permits Several laws require permits that you must obtain before engaging in an activity that can be detrimental to the environment. The SBA highlights some of these permits. However, remember that by being a sustainable business, you can avoid having to go through the permitting process by implementing practices or choosing alternatives which avoid negative environmental consequences.5
5 “Environmental Permits.” SBA. 2012. http://www.sba.gov/content/environmental-permits Guide to Sustainable Business Growth - 9 -
Clean Air Act Permits Title V of The Clean Air Act Amendments of 1990 requires that most large sources and some smaller sources of air pollution are required to obtain permits. According to Title V, “any person required to have a permit shall, not later than 12 months after the date on which the source becomes subject to a permit program approved or promulgated under this subchapter, or such earlier date as the permitting authority may establish, submit to the permitting authority a compliance plan and an application for a permit signed by a responsible official, who shall certify the accuracy of the information submitted.6” Additionally, the Title states that, “Each permit issued shall include enforceable emission limitations and standards, a schedule of compliance, a requirement that the permittee submit to the permitting authority, no less often than every 6 months, the results of any required monitoring, and such other conditions as are necessary to assure compliance with applicable requirements of this chapter, including the requirements of the applicable implementation plan.7” Most Title V permits are issued by state and local permitting authorities and are often called Part 70 permits. While a permit is still required, you may be eligible for state help with compliance under the Small Business Stationary Source clause. Eligibility means that your company: is owned or operated by a person that employs 100 or fewer individuals, is a small business concern as defined in the Small Business Act is not a major stationary source; does not emit 50 tons or more per year of any regulated pollutant; and emits less than 75 tons per year of all regulated pollutants.8
Endangered Species According to the SBA, the Endangered Species Act, with some exceptions, prohibits activities affecting threatened or endangered species unless authorized by a permit from the U.S. Fish and Wildlife Service or the National Oceanic and Atmospheric Administration’s National Marine Fisheries Service. You can contact your state’s wildlife agency for additional information.9
Wetlands If you work in or near wetlands, you may be required by federal, state, or local agencies to obtain a permit. At the federal level, the Army Corps of Engineers regulates the discharge of dredged or filled materials into U.S. waters under Section 404 of the Clean Water Act. The EPA can issue permits for the discharge of pollutants, including waste water and storm water. State environmental agencies regulate wetlands laws such as those pertaining to water pollution, shoreline management, and forest practices. Local governments regulate wetlands primarily through zoning and similar ordinances.
Resource Conservation and Recovery Act (RCRA) Permits RCRA permits are designed to help ensure the safe treatment, storage, and disposal of hazardous wastes. Many states are authorized to issue these permits, but if you live in a state that is not, you may contact your regional EPA office.
6 US Code. “42 USC 7661B – Permit Applications.” Cornell University Law School. 2012. http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00007661---b000-.html 7 US Code. “42 USC 7661C – Permit Requirements and Conditions.” Cornell University Law School. 2012. http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00007661---c000-.html 8 US Code. “42 USC 7661F – Small Business Stationary Source Technical and Environmental Compliance Assistance Program.” Cornell University Law School. 2012. http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00007661---f000-.html 9 “Environmental Regulations.” SBA. 2012. http://www.sba.gov/content/environmental-regulations Guide to Sustainable Business Growth - 10 -
Opportunity for Small Businesses According to the EPA, “The Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA) - which is commonly referred to simply as the RFA - provides small entities with an expanded opportunity to participate in the development of certain regulations. The RFA defines "small entity" as a small business, small organization, or small governmental jurisdiction.10” Use the resources on the EPA website to learn more about how the EPA involves small entities in rulemakings that are likely to impact them.
Triple Bottom Line Impacts of Step 1 Economic Adhering to federal, state, and local environmental regulations has a positive impact on risk- management. It not only helps you avoid hefty fines and fees associated with breaking the law and having to acquire permits, but also reduces the legal liability from potential civil suits. Environmental Compliance with the law protects the health and safety of your workers and your surrounding community. Social Environmental compliance and environmentally responsible alternatives present the opportunity for positive publicity and marketing strategies. It can help to attract not only stakeholder support, but also maintain a high level of both employee morale and retention.
10 EPA. “Small Entities and Rulemaking,” Environmental Protection Agency. 2012. http://www.epa.gov/rfa/index.html Guide to Sustainable Business Growth - 11 -
Step 2: Develop an Environmental Management Plan
Developing an environmental management system from both an operating, product development, and manufacturing standpoint can create a key competitive advantage for your company. As more and more companies assess environmental risks and develop sustainability plans accordingly, it is increasingly important to implement an environmental management system.
Environmental Management Systems and ISO Standards The generally accepted standards for environmental management were developed by ISO (International Organization for Standardization) in 1947 and are updated annually. ISO 14001 is the environmental management system (EMS) framework that was adopted by the International Organization for Standardization (ISO) in 1996. Today, ISO has published over 18,500 international environmental standards. A company can pay a fee to be ISO certified or may voluntarily adopt the standards sans certification. The ISO standards require a systematic approach to identifying and prioritizing environmental issues, developing procedures, conducting training and routine environmental audits, setting objectives and targets, and tracking performance.11 If a company elects to become ISO certified, a third-party auditor will tour their facilities annually to verify that the company is adhering to the standards.
As stated by the ISO 14000 standards for environmental management, an environmental management system (EMS) is a tool that allows an organization to: Identify and control the environmental impact of its activities, products or services Continually improve its environmental performance Implement a systematic approach to setting environmental objectives and targets, to achieving these and demonstrate that they have been achieved12
Benefits of Implementing ISO 14000 Standards: Reduced cost of waste management Savings in consumption of energy and materials Lower distribution costs Improved corporate image among regulators, customers and the public Framework for continual improvement of environmental performance.
In 2011, the ISO released a new family of standards for energy management, called ISO 50001. ISO 50001 aims to “provide public and private sector organizations with management strategies to increase energy efficiency, reduce costs, and improve energy performance.13” The standards can be implemented individually or in conjunction with other standards, such as ISO 14001. According to the standard, “Alternatives to independent (third party) certification are to invite the organization’s customers to verify its
11 Michael W. Toffel and Katharine Lee. “Sustainability at Millipore.” 10 Dec 2009. Harvard Business Publishing. p. 4-5. 12 “ISO 14000 essentials.” International Organization for Standardization. 2012. http://www.iso.org/iso/iso_14000_essentials 13 “ISO 50001: Energy Management.” International Organization for Standardization. 2012. http://www.iso.org/iso/iso_50001_energy.pdf Guide to Sustainable Business Growth - 12 -
implementation of ISO 50001 in conformity with the standard (second party verification), or to self-declare its conformity.” The standards are based on a “Plan-Do-Check-Act” model: Plan: conduct an energy review and establish a baseline, energy performance indicators (EnPIs), targets, and action plans needed to deliver results in accordance with opportunities to improve energy performance and the organization’s energy policy. Do: implement the energy management action plans. Check: monitor and measure processes and the key characteristics of its operations that determine energy performance against the energy policy and objectives and report the results. Act: take actions to continually improve energy performance and the Energy Management System (EnMS).
The Department of Energy is currently sponsoring a program called Superior Energy Performance (SEP) that allows manufacturers to learn how to implement ISO 50001. The Department of Energy pays for the companies to attend workshops and for materials pertaining to the program. Participating companies must meet the performance requirements by the end of the demonstration project. Facilities must present a minimum of 48 months of their energy consumption data at the required 5% improvement in energy performance.14
Green Team You do not have to reorganize your entire organizational structure to be successful with green initiatives, but you do need a “green team,” headed by a green champion. A relatively new position, the Chief Sustainability Officer or Vice President of Sustainability helps transform a company by implementing and enforcing sustainability policies.15 The green champion must also assemble and lead a green team. The green team must be composed of people who understand the company’s daily practices and should ideally have members from different departments. The green team is responsible for maintaining sustainability initiatives and educating employees about the initiatives. It may also be beneficial for some key members of the green team to obtain accreditations, such as LEED, which is discussed later in this guide.
One example of a “quick win” initiative implemented by a green team comes from the Internet auction site eBay. In 2007 the eBay green team started a grassroots effort to green the workplace. They went from
14 US Department of Energy. “Superior Energy Performance Demonstrations.” Advanced Manufacturing Office. 2012. http://www1.eere.energy.gov/manufacturing/tech_deployment/sep_demonstrations.html 15 Winters, Michelle. “The Green Champion: Why your company might need a CSO.” MHN, 2011. http://www.multihousingnews.com/features/the-green- champion-why-your-company-might-need-a-cso/1004040281.html Guide to Sustainable Business Growth - 13 -
eliminating Styrofoam cups to prompting eBay to build a large solar array. The e-Bay team is harnessing the power of their online community to make the world smarter and greener.16
Tracking & Reporting Reporting on sustainability initiatives within your company is an important way for your employees, shareholders, and community to understand your sustainable development progress. Additionally, it is a means for your company’s executives to set goals and identify areas that can be most positively impacted in the years to come. However, it is important to first consider the benefits and consequences of publishing a sustainability report. While the report can enrich your company’s reputation, it also makes your company more transparent. You must first consider how much you want your stakeholders to know. As a small and possibly young company, it may be wiser to have a sustainability report for internal use only or to set a goal to publish a sustainability report in the future.
The Global Reporting Initiative (GRI) is the most widely accepted Sustainability Reporting Framework in the world. The GRI’s mission is to mainstream the disclosure of environmental, social, and economic performance (also known as the Triple Bottom Line) for companies. The goal of GRI is to develop a standard practice for sustainability reporting which allows stakeholders to compare sustainability- related data. The original set of GRI reporting guidelines was released in 2000. Today GRI operates under a third edition of guidelines known as G3.1 GRI’s reporting guidelines are used by over 1500 companies in 60 different countries.17 The picture below illustrates what is required to achieve different levels of GRI reporting.18 Generally the first part of the report is set aside for a general disclosure, which includes general performance indicators, an executive mission statement, and a strategy for executing sustainable initiatives as they relate to the Triple Bottom Line. The next part of the report is tailored to the company’s specific industry and the sustainability challenges they face.
Submitting a G3.1 sustainability report can be extremely beneficial for a company. The reports are excellent tools for management decisions, reducing costs, brand reputation, and market differentiation. The GRI is also a good tool for benchmarking and corporate governance. In a recent survey of GRI report readers, 90% of those polled said that reading the sustainability reports resulted in their viewing the companies in a more positive light.19
Employee Engagement Without a doubt, the most important part of your sustainability or environmental management plan is employee engagement. According to 2010 study by the National Environmental Education Foundation (NEEF), sustainability initiatives within large companies can increase profits by 38%.20 Unfortunately, sustainability initiatives can only be successful when all employees are on-board, and a recent Gallup poll states that 71% of employed Americans are disinterested and not engaged with sustainability. The four best ways to build
16 Mohin, Tim. “How Sustainability Is Driving Employee Engagement and the Bottom Line.” AMD. 2011. http://blogs.amd.com/corporate/2011/09/30/how- sustainability-is-driving-employee-engagement-and-the-bottom-line/ 17 "Global Reporting Initiative." Global Reporting Initiative. 22 Sept. 2011. http://globalreporting.org 18 “GRI Application Levels.” Global Reporting Initiative. 2011. https://www.globalreporting.org/resourcelibrary/G3.1-Application-Levels.pdf 19 Brown, Halina Szejnwald, Martin De Jong, and Teodorina Lessidrenska. "The Rise of the Global Reporting Initiative (GRI) as a Case of Institutional Entrepreneurship." Harvard University. May 2007: 1-48. http://www.hks.harvard.edu/mrcbg/CSRI/publications/workingpaper_36_brown.pdf 20 Modney, Mary. “Sustainability: What’s in It for Me?” The Green Economy Post. 2010. http://greeneconomypost.com/sustainability-creating-employee- engagement-incentives-11178.htm Guide to Sustainable Business Growth - 14 -
employee engagement at your company are through education, incentives, a success measurement system, and individual commitments.
Education & Training In “The Step-By-Step Guide to Sustainability Planning,” authors Darcy Hitchcock and Marsha Willard offer some tips on how best to train employees on new sustainability initiatives.21 Explain up front why your employees need to learn what you are covering and why it is important to your business and to them personally. The best way to get your employees’ buy-in is to make them understand their importance in the process. Don’t give them more than they can absorb at one time, and use easily understood demonstrations, analogies and examples to help people understand any scientific principles. Do just-in-time training so that they get the skills they need when they need them. During any training session, change what you’re doing at least every 20 minutes to maintain attention. Keep sessions interactive through engaging discussions and activities that apply the concepts you are covering. Help your employees link what you are teaching to things they already know. Involve them in the training by asking many questions so that they can share what they know and remain engaged with the presentation. By getting their input and ideas, you may further improve the roadmap of the new sustainability program. Provide learning exercises that give you feedback about how much they are learning but are less threatening than tests. Give them a job aid - such as a roadmap, list of goals, or illustrations - that will help them remember and use the information. Other tools you can create for employees are posters, guidebooks, and step- by-step charts. You may want to call your sessions something other than training because people often associate training with artificial environments from which they return to the real world. Instead, consider embedding training within a task force meeting, briefing, working session, team meeting, etc. Find language that communicates that what you are covering relates directly to the work they should be doing. Base your training and communication plan on stakeholders’ needs. Make sure that the information you give them is appropriate to their situation, familiarity with the issues and points of view.
Incentives Some companies find it easiest to get employee buy-in through incentives. According to the Daily Energy Report, “When employees understand the environmental and cost impacts of their behavior, they will often reduce their environmental impact. Providing employees with an incentive to conserve can increase this responsible behavior. Rewards can be financial (for every kilowatt or gallon of water you save, I will pay you a percentage), or they can be simply recognition-based (an award for the division, floor, or person who reduces their environmental impact the most). Many companies have found that non-monetary recognition works just as well as giving the employees cash back for conservation.22”
How to Measure Success
21 Hitchcock, Darcy and Marsha Willard. “The Step-By-Step Guide to Sustainability Planning.” 2008. Earthscan: London, p. 135-139. 22 Grayson, William. “How to Incentivize Employees to Go Green at the Office.” The Daily Energy Report. 2010. http://www.dailyenergyreport.com/2011/02/how-to-incentivize-employees-to-go-green-at-the-office/ Guide to Sustainable Business Growth - 15 -
While there is no generally accepted method for measuring sustainability, some of the most successful corporations use a sustainability scorecard to measure success, reward leaders, and hold others accountable. This scorecard can be updated weekly, monthly, or annually. An example of a good sustainability scorecard comes from Counter Culture Coffee in Durham, NC. This coffee company took a Triple Bottom Line approach when measuring success, breaking items down by environmental, social, and economic impact.23 An excerpt of the scorecard is pictured below.
23 “Sustainability Scorecard.” Counter Culture Coffee. 2011. https://counterculturecoffee.com/sustainability/sustainability-scorecard Guide to Sustainable Business Growth - 16 -
Individual Contribution Once employers feel that their employees are fully engaged with sustainability, the next step is to keep them engaged through personal commitments such as volunteering and personal sustainability plans. The number one reason people do not volunteer for a cause while at work is they do not have enough time. Some companies set aside a week per year for employees to volunteer within their communities. Another great way to get employees interested in volunteer work is to match them to their skills. The concept behind skills-based volunteering is to pair the employee’s skill set and/or development needs to a volunteer opportunity.
Success Story: Wal-Mart
Wal-Mart, the world’s largest company, which traditionally has not been synonymous with
sustainable business practices, has encouraged employees to write their own individual sustainability
plans. Wal-Mart’s global program, My Sustainability Plan (MSP), allows every associate to choose
their own sustainability goals and track their progress.
Triple Bottom Line Impacts of Step 2 Economic Developing an environmental management plan is the first step toward instituting more cost- effective practices not only from the top of the corporate structure, but in helping to create a business-wide culture of economic efficiency. Environmental Having a structured environmental management plan, including a method of tracking and reporting, maintains accountability, providing benchmarks to assess progress toward reaching environmental goals. Social Employee engagement in sustainability efforts is crucial to providing a sense of empowerment and individual impact. Employees generally prefer to work for an environmentally friendly company, so establishing an environmental management plan is likely to boost employee morale and retention, and increase job satisfaction.
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Step 3: Build Green
Pittsburgh is often considered one of the leaders of green building in the United States. The city is home to the first LEED-certified college residence hall and convention center, and until June 2005, Pittsburgh had more square feet of certified green building space than any other city in the United States. According to Global Insight, Pittsburgh is a "Top 10 Metro" for green jobs, and Pennsylvania has more than 5,000 green building product manufacturers employing 200,000 people.24
Green building is a fast-growing trend that has generated government support and become a competitive advantage for businesses. Studies have shown over a 20 year life period, green buildings have yielded $53 to $71 per square foot return on investment.25 Clearly, whether you are a business looking to enter the green building market or simply want to build green, it is a potentially lucrative venture. The U.S. EPA defines green building as “the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle from site selection to design, construction, operation, maintenance, renovation and deconstruction. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort.” Compared to standard buildings, green buildings have been shown by the U.S. General Services Administration to26: Lower maintenance costs by over 10% Reduce energy use more than 25% Lower greenhouse gas emissions by 33% Significantly increase occupant satisfaction
A Smart Green Building Business Plan Whether you are starting a new business or revising your business plan, green building can be a lucrative decision and can create a competitive advantage with your competition. However, there are important steps toward becoming either a green builder or a green building products supplier.27
Do Your Research Ensure that you understand the policies guiding green building. Buildings and materials must be in line with the standards for green building, especially if a certification is the ultimate goal. Additionally, you must know your market. Some geographic markets are better for new building, others for renovation.
Pick a Specialty First you must say this phrase to yourself: “I cannot do everything.” Once you realize this, you should select a specialty. There are generally seven categories of green building, as dictated by the EPA. Your goal should be to become an expert in one. Energy Efficiency and Renewable Energy
24 “Pittsburgh Environmental Renaissance.” Pittsburgh G20 Summit. 2009. http://www.g20pittsburghsummit.org/environmental-renaissance/ 25 Langdon, Davis. “The Cost of Green Revisited.” Research Publication. 2007. 26 “Green Buildings.” Green Building Alliance. 2012. http://www.gbapgh.org/content.aspx?ContentID=27 27 “How to Build Your Green Building Business.” GreenBuilding.com. 2010. http://www.greenbuilding.com/professionals/greening-your-company/how- build-your-green-building-business Guide to Sustainable Business Growth - 18 -
Water Efficiency Environmentally Preferable Building Materials and Specifications Waste Reduction Toxics Reduction Indoor Air Quality Smart Growth and Sustainable Development
If you strive to become even more specific of a specialist, you can select a type of building to specialize in such as homes, schools, laboratories, offices, factories, or healthcare facilities. If you sell green building products commercially or residentially, you may list your products on the Pennsylvania Green Building Alliance Directory at www.gbapgh.org.
Get Certified While some states have their own certification programs, and other green building certifications exist (such as Green Advantage and ASHRAE), LEED is the generally accepted certification in the industry. In addition to certifying your building LEED, you can become LEED accredited. Keep in mind that the more credentials you have, the easier it will be to gain credibility in the industry and thus bring in more business.
*Information regarding eligibility, fees, and maintenance requirements is available at www.gbci.org.28
In addition to becoming LEED accredited through the U.S. Green Building Council, your local support for green building can be demonstrated by becoming a corporate member of the Green Building Alliance. Membership is relatively inexpensive and gives you access to training seminars, discounted advertising in green building publications, and networking opportunities.29
28 “LEED Professional Credentials.” GBCI. 2012. http://www.gbci.org/main-nav/professional-credentials/credentials.aspx# 29 “Green Building Alliance Membership.” Green Building Alliance. 2012. http://www.gbapgh.org/content.aspx?ContentID=96 Guide to Sustainable Business Growth - 19 -
Market Yourself Develop a unique marketing plan that generates public interest in your company. Use all forms of media to get the word out about your business.
Keep Up with Change Ensure you are up-to-date with this constantly changing industry. Gain access to web resources, guides, seminars, and the news to keep up with new products in green building.
Planning for a Green Building Project
Decisions made early in the design process will impact the performance of your facility for its entire useful life. Performance of a building means energy and water efficiency, toxic hazards, and overall level of comfort. Planning is the most crucial stage of the green building process.
Site Selection Site selection is crucial, as the orientation of the facility can alter energy efficiency, toxicity levels, and runoff. In Green from the Ground Up, authors David Johnston and Scott Gibson explore energy and cost saving techniques for green building, including a list of helpful hints for site selection.30 Orient the building so that the south wall faces to within 30 degree of true (not magnetic) south. In rooms on the south side of the building, windows should equal between 8% and 12% of the adjacent floor area. Proportions can be adjusted according to the relative mass of walls and floors that are directly and indirectly illuminated. Shade windows on the south wall of the building from the summer sun, with either roof overhangs or awnings designed for the specific latitude where the house is being built. Find out the direction of the prevailing winds (they may change seasonally), and specify casement windows on walls facing those directions. They do a better job of scooping up air for natural ventilation than do awning or double-hung windows. Control storm water runoff on site with perimeter drains, gutters, and subsurface drainage systems that accommodate anticipated groundwater levels and average rainfall (and snowfall).
Planning for Waste The EPA lists several important steps to planning for waste reduction31: Contact your local builders association, your county solid waste department, or your state environmental agency. They will provide information on recyclers and waste haulers in your area. Consider whether deconstruction techniques can be used to prepare your site for renovation or construction. In some communities, deconstruction auctions are being effectively used to move building materials into the reuse market. Check with local salvagers before purchasing new products. You might be surprised to find that many of them offer cabinets, doors, windows, and flooring that are in good condition for greatly reduced prices.
30 Johnston, David and Scott Gibson. “Green from the Ground Up.” Taunton Publishing: New York, 2008. 31 EPA. “Wastes: What You Can Do.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/rrr/imr/cdm/whatyoucan.htm Guide to Sustainable Business Growth - 20 -
Building for Energy and Water Efficiency According to Energy Star, 30% of the energy in buildings in the United States use energy inefficiently.32 Additionally, 45% of U.S. greenhouse gas emissions are generated by commercial buildings and industrial facilities.33 If all of those facilities improved their energy efficiency by 10%, the savings would be over $20 billion.34 The first step to green building – and the step that will likely help you attain the highest cost savings - is reducing energy and water usage.
Energy Star As mentioned previously, using Energy Star equipment is the industry standard for energy efficiency. In addition to purchasing Energy Star equipment, a builder can have his or her green building Energy Star certified. An Energy Star certified facility meets strict energy performance standards set by EPA and uses less energy, is less expensive to operate, and causes fewer greenhouse gas emissions than its peers.35 To qualify for the Energy Star, a building or manufacturing plant must earn a 75 or higher on EPA's 1-100 energy performance scale, indicating that the facility performs better than at least 75% of similar buildings nationwide. Remember, the keys to energy efficiency are HVAC, lighting, and energy efficient equipment. Additionally, using as much natural light as possible can be vital to a building’s energy performance. Energy Star provides a step-by-step guide to energy efficiency (with the diagram on the right as a basis) and a free application for certification online at www.energystar.gov.
Green Power Partner A key aspect of energy efficiency is the type of energy you use. The Green Power Partnership program is a great tool for those interested in investing in clean and renewable energy. The savings from using this “green” energy are tremendous, and dangerous emissions to the environment are reduced to zero.
Water Efficiency When strategizing for a green building project, developing a water efficiency plan is crucial not only to the green design of the facility but to the LEED certification standards. Here is a list of some steps you can take to reduce the negative environmental impact of water usage on the property: 1. Recover non-sewage and grey water for on-site use. One of the best ways to do this is by building a green roof, which is a great way to utilize rain water and divert it from running off-site. Additionally, you can install cisterns above or below ground that will collect and store runoff from rooftops and other impervious surfaces; as well as from laundry machines, dishwashers, bathtubs and sinks. These collection tanks can then serve as an on-site supply for watering your lawn and garden. It’s also possible to reuse grey water indoors in toilets and for washing, but there are regulations regarding indoor grey water reuse, so be sure to do your research before using it indoors.36 2. Install water quality ponds as storm water runoff filtration systems.37 3. Establish site-based water treatment and reuse programs. 4. Use the Best Management Practices (BMPs) established by the Federal Energy Management Program (FEMP).38
32 EPA. “Useful Facts and Figures.” Energy Star. 1 June 2007
WaterSense WaterSense, an EPA partner, helps customers and businesses procure third-party tested and certified water- efficient goods. According to the EPA, products with the WaterSense label39: Are 20% more water efficient than average products in that category. Achieve water efficiency through several technology options. Are effectively differentiated by the WaterSense label. Obtain independent, third-party certification.
The WaterSense label is most frequently found on bathroom sink faucets, showerheads, toilets, urinals, and weather-based irrigation controllers. When building for water efficiency, it is recommended that you purchase water-using products with the WaterSense label. This increases the value of your project and is environmentally friendly. For a new home using only WaterSense-labeled products, WaterSense will save about 44,000 gallons in the first 10 years and 4,000 kilowatt hours (kWh) of electricity. This equates to a $270 water bill savings and $400 energy bill savings.
Green Building Materials The state of California provides a comprehensive guide to decision-making criteria for purchasing green building products.40 When purchasing products for a green building project (or hopefully any construction project), consider these five criteria: resource efficiency, indoor air quality, energy efficiency, water conservation, and affordability.
Resource Efficiency Recycled Content: Products with identifiable recycled content, including postindustrial content with a preference for postconsumer content. Natural, plentiful or renewable: Materials harvested from sustainably managed sources and preferably have an independent certification (e.g., certified wood) and are certified by an independent third party. Resource efficient manufacturing process: Products manufactured with resource-efficient processes including reducing energy consumption, minimizing waste (recycled, recyclable and or source reduced product packaging), and reducing greenhouse gases. Locally available: Building materials, components, and systems found locally or regionally saving energy and resources in transportation to the project site. Salvaged, refurbished, or remanufactured: Includes saving a material from disposal and renovating, repairing, restoring, or generally improving the appearance, performance, quality, functionality, or value of a product. Reusable or recyclable: Select materials that can be easily dismantled and reused or recycled at the end of their useful life. Recycled or recyclable product packaging: Products enclosed in recycled content or recyclable packaging.
38 US Department of Energy. “Federal Water Efficiency Best Management Practices.” Federal Energy Management Program. 2007. http://www1.eere.energy.gov/femp/program/waterefficiency_bmp.html 39 EPA. “The WaterSense Label.” Environmental Protection Agency. 2012. http://www.epa.gov/watersense/about_us/watersense_label.html 40 CalRecycle.“Green Building Materials.” The State of California. 16 Feb 2012. http://www.calrecycle.ca.gov/greenbuilding/materials/ Guide to Sustainable Business Growth - 22 -
Durable: Materials that are longer lasting or are comparable to conventional products with long life expectancies.
Indoor Air Quality Low or non-toxic: Materials that emit few or no carcinogens, reproductive toxicants, or irritants as demonstrated by the manufacturer through appropriate testing. Minimal chemical emissions: Products that have minimal emissions of Volatile Organic Compounds (VOCs). Products that also maximize resource and energy efficiency while reducing chemical emissions. Low-VOC assembly: Materials installed with minimal VOC-producing compounds, or no-VOC mechanical attachment methods and minimal hazards. Moisture resistant: Products and systems that resist moisture or inhibit the growth of biological contaminants in buildings. Healthfully maintained: Materials, components, and systems that require only simple, non-toxic, or low-VOC methods of cleaning. Systems or equipment: Products that promote healthy IAQ by identifying indoor air pollutants or enhancing the air quality.
Energy Efficiency Materials, components, and systems that help reduce energy consumption in buildings and facilities.
Water Conservation Products and systems that help reduce water consumption in buildings and conserve water in landscaped areas.
Affordability Life-cycle costs are comparable to conventional materials Product costs are within a defined percentage of the overall budget
Procurement of Goods Purchasing efficient products reduces energy costs without compromising quality for corporations, institutions, and governments. Take these four steps, provided by Energy Star, to ensure a smooth and environmentally friendly purchasing and procurement process41: 1. Procurement Language Write a mandatory clause in your purchasing agreement that all products are Energy Star certified and/or meet the Energy Star specifications for energy efficiency. Partner only with suppliers who agree to this clause. 2. Educate Your Vendors and Team Ensure that the team, including buyers, upper management, and key stakeholders, are educated about Energy Star purchasing requirements, savings benefits, and mechanisms for purchasing these products (for example, a list of available suppliers). 3. Purchase Energy Star Products
41 “Purchasing & Procurement.” Energy Star. 2012. http://www.energystar.gov/index.cfm?c=bulk_purchasing.bus_purchasing Guide to Sustainable Business Growth - 23 -
This list includes building products, commercial appliances, commercial food service equipment, computers & electronics, heating & cooling, lighting, and plumbing. For a list of Energy Star products, visit www.energystar.gov. 4. Estimate Your Savings and Report Them (if desired or necessary) Microsoft Excel-based savings calculators are available on the Energy Star website.
In addition to Energy Star, the EPA also offers a comprehensive procurement guide (CPG) that lists specifications for products made from recycled waste. These products are listed on the EPA’s website and fall into eight categories: construction, landscaping, non-paper office, paper, parks and recreation, transportation, vehicular, and miscellaneous. In addition to the list of products, a supplier directory is also available.42
Waste Reduction Building, renovating, and remodeling all produce an inordinate amount of construction and demolition (C&D) waste. C&D is defined by the EPA as “the debris generated during the construction, renovation, and demolition of buildings, roads, and bridges.43” C&D includes bricks, concrete, masonry, soil, rocks, lumber, paving materials, shingles, glass, plastics, aluminum, steel, drywall, insulation, asphalt roofing materials, electrical materials, plumbing fixtures, vinyl siding, corrugated cardboard, and tree stumps.44 The approach that should be taken in reducing C&D waste is the age-old reduce, reuse, recycle, & rebuy process. Reducing waste saves costs and reduces negative impacts on the environment.
Benefits of the 4 Rs The EPA cites these benefits to reducing waste at construction sites45: Less waste can lead to fewer disposal facilities, potentially reducing associated environmental issues including methane gas emissions which contribute to global climate change. Reducing, reusing, and recycling C&D materials offsets the need to extract and consume virgin resources, which also reduces greenhouse gas emissions. Deconstruction and selective demolition methods divert large amounts of materials from disposal and provide business opportunities within the local community. Recovered materials can be donated to qualified 501(c)(3) charities, resulting in a tax benefit. Allows you to avoid disposal and purchasing costs Generates revenue from the sale of materials Creates opportunities for tax breaks through material donations.
Reducing, Reusing, Recycling, & Rebuying C&D The EPA lists several mean of implementing the 4 Rs during the building process46: Incorporate environmental specifications into your building contracts and guidelines. Develop standard operating procedures for C&D reuse and recycling at your construction site. Rehabilitate an existing structure in place of planned demolition.
42 EPA. “Wastes: Comprehensive Procurement Guidelines.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/tools/cpg/index.htm 43 EPA. “Wastes: Reduce, Reuse, Recycle – Construction & Demolition Materials.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/rrr/imr/cdm/index.htm 44 EPA. “Building Savings.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/nonhaz/municipal/pubs/combined.pdf, p.1 45 EPA. “Wastes: Reducing C&D Materials.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/rrr/imr/cdm/reducing.htm 46 EPA. “Wastes – WasteWise Program.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/partnerships/wastewise/challenge/building.htm Guide to Sustainable Business Growth - 24 -
Use deconstruction techniques rather than demolition if a building must be torn down. Employ efficient framing to reduce the amount of lumber used without sacrificing structural integrity. Invest in durable products to ensure that materials last as long as possible. Return unused construction material to vendors. Consider the end-of-life management, or recyclability, of building products at the start of a project. Salvage C&D waste for sale and reuse. Purchase recycled-content building materials including insulation, carpet, cement, paint, floor tiles, shower and restroom dividers, laminated paperboard, and structural fiberboard.
Additionally, one of the best ways to reduce building waste is to take part in a green building waste reduction challenge. A contest creates an incentive for the entire team and usually allows the project manager to get the entire team’s buy-in. The EPA created WasteWise Building Challenge to challenge green builders to reduce waste. This program has generated extremely positive publicity for its participants. Another program to consider is the Lifecycle Building Challenge. Lifecycle building is the designing of buildings to facilitate disassembly and material reuse; to minimize waste; and reduce energy consumption and associated greenhouse gas emissions.47 Essentially this is a challenge to build a facility with little to no waste.
As for recycling, asphalt, concrete, and rubble are often recycled into new asphalt and concrete products. Wood can be recycled into engineered-wood products like furniture and plastic-composite decks, as well as mulch, compost, and other products. Metals, such as steel, copper, and brass, are also valuable commodities to recycle. Although cardboard packaging from home-building sites is not classified as a C&D material, many markets exist for recycling this material.48
Finally, the reduce, reuse, recycle, and rebuy method is not complete until you have considered your procurement. Many recycled-content building products are on the market. Numerous types of insulation contain recycled materials, ranging from shredded newspaper (cellulose insulation) to blast furnace slag (mineral wool insulation). Some carpet and carpet padding contains recycled plastic. Many brands of drywall contain recycled paper, while a smaller number use gypsum by-products from the coal-burning process.49 Using these products is environmentally friendly, cost-effective, and creates great publicity for your business.
47 “Lifecycle Building Challenge Entry Guidelines.” Lifecycle Building Challenge. 2012. http://www.lifecyclebuilding.org/entry-info.php 48 EPA. “Wastes – Recycle.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/rrr/imr/cdm/recycle.htm 49 EPA. “Wastes – Rebuy.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/rrr/imr/cdm/rebuy.htm Guide to Sustainable Business Growth - 25 -
Success Story : City of Salem, Oregon In 1997, Marion County and Salem Area Transit of Salem, Oregon developed a plan to demolish all of the buildings on a 50city block to make space for a courthouse square. By implementing the EPA’s recommendations for green building waste reduction, the county saved 82% on demolition materials and around $165,000 in costs (reference Project Summary). Rather than use dynamite to blow up the city block, the crews used a wrecking ball, which allowed them to go into the buildings and salvage the recyclable and reusable items. The county managed to recycle scrap metals, structural lumber, trees, tree stumps, asphalt, and concrete. They reused bricks, wood, cinder blocks, marble fireplaces, windows, safety equipment, light fixtures, electrical outlets, toilets, and doors. The county avoided disposal of some materials by reselling them, earning $36,000 in revenue. The county ultimately saved 5% in demolition costs and stockpiled building material for future projects.50
Triple Bottom Line Impacts of Step 3 Economic Green building produces an average building cost savings of $62 per square foot over a 20 year period. Environmental Green building reduces your business’s carbon footprint by implementing practices that are energy efficient and reduce waste, water consumption, water pollutants, and air pollutants. Social Stakeholders and building occupants favor LEED and Energy Star certification for new buildings. Additionally, green buildings reduce the number of annual sick days taken by its occupants, which is not only good for individuals, but positively impacts one of the largest components on a company’s bottom line: its payroll.
50 EPA. “Municipal Nonhazardous Waste Guide.” Environmental Protection Agency. 2012, p. 13-14.
Guide to Sustainable Business Growth - 26 -
Step 4: Design, Buy, & Sell Green Products Going green is not just an internal process. Companies must also green their products and services. Some companies choose to alter some of their existing products to “green” them, while some choose to start from scratch. This section highlights what some industry leaders have done to green their products and services. The green product design and procurement process is a four step process51: 1. Review Guidelines – Understand the comprehensive procurement guidelines (CPG) and Environmentally Preferable Purchasing (EPP) put forth by the EPA. Also know what is required for labels and certifications. 2. Identify Greener Materials – Conduct a materials inventory and get ideas for green products. 3. Identify Other Product Design Improvements – Research ways to improve packaging and delivery. If you are a developer, design products that are reliable, repairable, upgradable, and recyclable. 4. Market Your Green Product – Get your products certified or labeled and advertise your product.
The following offers insight as to how green practices are beginning to influence specific business sectors. However, these sectors – automotive, food and agriculture, healthcare, hospitality and tourism, financing, information technology and retail – also have broader relevance since all of these products and services are used across all businesses and/or their employees.
Automotive The industry that is perhaps beginning to make the most dramatic environmental changes is the automotive industry. As research continues to transform automotive manufacturing, the industry is starting a shift to electric, fuel-efficient, and alternative fuel vehicles. With dozens of alternatives, fuel-efficient and fuel-alternative cars may become the standard purchase in the industry. Keep in mind that the government often offers tax incentives such as credits toward the purchase of fuel-efficient vehicles, which boosts interest and awareness among consumers. This can be useful for companies looking to either purchase new fleet vehicles or manufacture vehicles or components.
Electric Electric motor vehicles are powered by rechargeable battery packs, . Electric motors are energy efficient, do not rely on fossil fuels, emit no tailpipe pollutants, and perform quieter and smoother than internal combustion engines. Currently researchers are working to advance the technology and eliminate some of the challenges electric cars face. These challenges include a limited driving range before recharge, the amount of time for a recharge, and the cost, weight and service life of the battery pack.52
51 Tellus Institute. “Greening Your Products: Good for the environment, good for your bottom line.” Environmental Protection Agency. 2002. http://www.epa.gov/epp/pubs/jwod_product.pdf 52 US Department of Energy. “Electric Vehicles.” Fuel Economy. 2012. http://www.fueleconomy.gov/feg/evtech.shtml Guide to Sustainable Business Growth - 27 -
Hybrid Hybrid-electric vehicles (HEVs) combine the benefits of gasoline engines and electric motors and can improve fuel economy, enhance power and increase driving ranges. Hybrids typically use advanced technologies such as regenerative braking and automatic start & shutoff.53
Fuel Cell Using hydrogen fuel and oxygen from the air to produce electricity, multiple fuel cell are used in vehicles and assembled into a fuel cell stack.54 The 2012 Mercedes Benz Fuel Cell car is extremely fuel efficient, at 52 miles per gallon. The main benefits of fuel cells are the elimination of carbon dioxide (CO2) emissions and reduced oil dependence. Two key challenges in using fuel-cells are storage of hydrogen inside the vehicle and the cost of production.
Flex-Fuel These cars are designed to run on gasoline or a blend of up to 85% ethanol. Operating on 85% ethanol has been proven to cause no difference in performance. The one downfall of a flex-fuel vehicle is that they typically get 25-30% fewer miles per gallon because ethanol contains less energy than gasoline.55
Biodiesel Formed from vegetable oils, animal fats, and recycled restaurant greases, biodiesel is safe, biodegradable, and produces fewer pollutants than petroleum-based diesel. Currently, biodiesel is slightly more expensive than petroleum and tends to reduce the power of the vehicle. Additionally, the use of pure vegetable oil is controversial and not yet widely accepted as it is prone to polymerizing as well as coking under the extreme conditions found within a diesel engine. However, researchers are working hard to eliminate these disadvantages.
Natural Gas Natural gas can be used in the form of compressed natural gas (CNG) or liquefied natural gas (LNG) to fuel cars and trucks. Vehicles can be designed to run completely on natural gas or to run on a combination gasoline and natural gas. Natural gas is one of the cleanest burning alternative fuels. Additionally, it is less expensive than gasoline, and natural gas- powered vehicles reduce greenhouse gas emissions by 30-40%. However, since it is stored in high-pressure fuel tanks, vehicles running on both gasoline and natural gas must have two separate fueling systems.56 Giving the vast supply of natural gas in the state of Pennsylvania, this type of vehicle could bring some substantial business to the state over the next 20 to 30 years.
In addition to the automobiles you choose for your company, you should consider the impacts in your supply chain. One of the best ways to reduce supply chain impacts is to become a SmartWay partner. Members of this EPA partnership program calculate fuel consumption and carbon footprint within the transportation process of their supply chain. Using these calculations, members choose more efficient carriers, assess optimal mode choices, and reduce their overall transport carbon footprint.57
53 US Department of Energy. “Hybrid Vehicles.” Fuel Economy. 2012. http://www.fueleconomy.gov/feg/hybridtech.shtml 54 US Department of Energy. “How Fuel Cells Work.” Fuel Economy. 2012. http://www.fueleconomy.gov/feg/fcv_PEM.shtml 55 US Department of Energy. “Flex-Fuel Vehicles.” Fuel Economy. 2012. http://www.fueleconomy.gov/feg/flextech.shtml 56 US Department of Energy. “Natural Gas.” Fuel Economy. 2012. http://www.fueleconomy.gov/feg/bifueltech.shtml 57 E EPA. “SmartWay Transport Partnership Program.” Environmental Protection Agency. 2012. http://www.epa.gov/smartway/partnership/index.htm Guide to Sustainable Business Growth - 28 -
Food & Agriculture
From buying local, organic, or eco-labeled food to redesigning your packaging, opportunities for sustainability are endless in the food industry.
The Organic Revolution One word defines the greening of the food industry: organic. Organic food refers to “food produced without using the conventional inputs of modern, industrial agriculture: pesticides, synthetic fertilizers, sewage sludge, genetically modified organisms (GMOs), irradiation, or food additives.” Organic food is generally viewed as a “natural alternative” that is purer and cleaner than inorganic food.58 Producers of organic food generally emphasize conservation of soil, water, and renewable resources to protect and enhance overall environmental quality.
Organic food makes up only about 2% of the U.S. food market but is the only sector in the food industry that is growing. Entering the organic industry is challenging due to regulations and standards that deal with processing, handling, and manufacturing. The U.S. Department of Agriculture (USDA) and National Organic Standards Board (NOSB) developed the organic food standards, and they became law in 2002. The NOSB maintains the National List of Allowed and Prohibited Substances, which identifies materials permissible for inclusion in an organic product. If a product is 95% organic, it has 95% permissible materials and receives the green-and-white USDA organic seal. If the product is 70%-95% organic, it can be labeled “made with organic ingredients.” In addition to food items being certified organic, food production and distribution facilities may be certified, pending a government-approved inspection of the farm or production facility. Land and facilities used for the
58 Allen, Gary J. & Albala, Ken, ed. “The business of food: encyclopedia of the food and drink industries.” 2007. ABC-CLIO. p. 288. Guide to Sustainable Business Growth - 29 -
production of organic food may not have any of the prohibited substances applied to its products for the last three years before its products were labeled “organic.59”
Meat & Seafood Labels To ensure you are purchasing sustainable meat, the Marine Stewardship Council (seafood) and Humane Society (meat) provide a guide of eco-labels.60 Note that for many of the meat labels, producers must submit affidavits to the U.S. Department of Agriculture (USDA) supporting production claims in order to receive approval for a label.
MSC-Certified (Marine Stewardship Council) According to the Marine Stewardship Council, their mission is “to use our eco-label and fishery certification program to contribute to the health of the world’s oceans by recognizing and rewarding sustainable fishing practices, influencing the choices people make when buying seafood, and working with our partners to transform the seafood market to a sustainable basis.61” Restaurants, fisheries, supply chain distributors, and fish and chip shops can become MSC certified. An example of an MSC leader is M&S. M&S's commitment to sustainable fishing has been recognized by Marine Conservation Society, Greenpeace and Seafood Choices Alliance. All M&S fish is MSC-certified or sourced from fisheries recognized as well-managed but not yet certified - for example, all cod is Icelandic - and avoids 'at risk' fish: skates/rays and rockfish were de-listed in 2005.
Certified Organic (National Organic Program) The animals must be allowed outdoor access, with ruminants—cows, sheep and goats—given access to pasture, but the amount, duration and quality of outdoor access is undefined. Animals must be provided with bedding materials. Though the use of hormones and antibiotics is prohibited, painful surgical procedures without any pain relief are permitted.
Free-Range Chickens and Turkeys The birds should have outdoor access. However, no information on stocking density, the frequency or duration of how much outdoor access must be provided, nor the quality of the land accessible to the animals is defined.
Grass-Fed Ruminant animals are fed a diet solely comprised of grass and forage, with the exception of milk consumed before they are weaned. These animals have access to the outdoors and are able to engage in some natural behaviors, such as grazing. They must have continuous access to pasture during the growing season.
Grain-Fed This claim has little relevance to animal welfare, but feeding ruminants—cows, sheep and goats—high levels of grain can cause liver abscesses and problems with lameness. As such, beef products labeled
59 http://www.ams.usda.gov/AMSv1.0/nop 60 “Meat and Dairy Labels.” The Humane Society of the United States. 28 Dec 2011. http://www.humanesociety.org/issues/confinement_farm/facts/meat_dairy_labels.html 61 “Vision and Mission.” Marine Stewardship Council. 2012. http://www.msc.org/about-us/vision-mission Guide to Sustainable Business Growth - 30 -
"grain-fed" most likely come from animals who suffered lower welfare than beef products labeled "grass-fed," therefore making them less eco-friendly and socially responsible products.
5-Step Animal Welfare Rating Program (Global Animal Partnership) Animals are raised according to different levels of welfare standards, from Step 1 to Step 5+. In essence, Step 1 prohibits cages and crates. Step 2 requires environmental enrichment for indoor production systems; Step 3, outdoor access; Step 4, pasture-based production; Step 5, an animal-centered approach with all physical alterations prohibited; and, finally, Step 5+, the entire life of the animal spent on the same integrated farm, with all transport disallowed. Hormone and sub-therapeutic antibiotic use is prohibited. The 5-Step program is audited and certified by independent third-parties.
Animal Welfare Approved (Animal Welfare Institute) The animals have access to the outdoors and are able to engage in natural behavior. No cages or crates may be used to confine the animals, and growth hormones and sub-therapeutic antibiotics are not allowed.
Certified Humane (Humane Farm Animal Care) The animals must be kept in conditions that allow for exercise and freedom of movement. As such, crates, cages and tethers are prohibited. Outdoor access is not required for poultry or pigs, but is required for other species. Stocking densities are specified to prevent the overcrowding of animals. All animals must be provided with bedding materials. Hormone and non-therapeutic antibiotic use is prohibited, while painful surgical procedures without any pain relief are permitted.
Hormone-Free, rBGH-Free, rBST-Free and No Hormones Added These labels on dairy products mean the cows were not dosed with rBGH or rBST, genetically engineered hormones that increase milk production. Hormones are commonly used to speed growth in beef production, and their use by both the beef and dairy industries are associated with animal welfare problems. Chicken and pig producers are not legally allowed to use hormones. These claims do not have significant relevance to the animals' living conditions.
Cage-Free Unlike birds raised for eggs, those raised for meat are rarely caged prior to transport. As such, this label on poultry products has virtually no relevance to animal welfare. However, the label is helpful when found on egg cartons, as most egg-laying hens are kept in severely restrictive cages prohibiting most natural behavior, including spreading their wings.
Buy Local The other trend in the food industry is the “buy local” movement. Buying local not only supports local small businesses and the local economy in general, it also minimizes the massive environmental impacts associated with supply chains.62 For example, a typical carrot has to travel 1,838 miles to reach your table. Local food is generally defined as food that is harvested within a 100 mile radius.63 If you are a restaurant owner, for instance, it may benefit you to implement this strategy. Local food is often cheaper because retailers can afford to price it
62 “The Social Benefits of Sustainable Design.” United States Department of Energy. 2012. http://www1.eere.energy.gov/femp/pdfs/buscase_section3.pdf 63 “What is Local?” Sustainable Table. 2009. http://www.sustainabletable.org/issues/eatlocal/#what Guide to Sustainable Business Growth - 31 -
lower, since they rarely have to pay suppliers. Buying local also creates a positive brand image that you can use to generate business.
Agriculture is Pennsylvania’s largest industry, contributing $5.1 billion to the economy each year. One survey shows that 93% of Pennsylvanian’s wish to buy locally-sourced products. The “PA Preferred” label ensures that consumers get the highest quality products from Pennsylvania – particularly agricultural products. Buying PA Preferred produce ensures higher quality and nutrition, as the item arrives on the shelf within 24-48 hours after being harvested. Also, in addition to helping cut down on fuel emissions from transportation, you are supporting the state’s economy, helping to secure jobs within Pennsylvania.64 You can register your food, retail, or manufacturing product at www.papreferred.com.
Restaurants In addition to applying some of the aforementioned greening techniques, restaurants have the unique opportunity to become certified. The Green Restaurant Association (GRA) provides certification to restaurants who meet it standards for water efficiency, waste reduction & recycling, sustainable furnishings & building materials, sustainable food, energy, disposables, and chemical & pollution reduction. Restaurants must also be free of polystyrene foam (Styrofoam) and take part in an annual education program.65 Getting certified provides six key benefits: Generates positive publicity Cuts costs Improves staff productivity and morale Builds customer base and increases customer loyalty Stays ahead of legislation Creates a healthier working environment
The GRA also works with restaurant owners to help them green their product line and renovate or retrofit their facilities.
Success66 Story: Taranta An example of positive operational outcomes at a restaurant is Boston’s Taranta. Owner and Chef Jose Duarte’s restaurant saved $1,300 a year by switching over to a hand dryer, and each $19 light bulb saved $25 per year in energy costs. Duarte also noted “by composting and recycling, we cut our garbage collection bill to almost 50%.66”
Packaging It is also important to consider the type of packaging you use. Some of the most common types of material used for packaging are paper, glass, plastic, foam, steel, and aluminum.67 Companies must be innovative when creating or redesigning packing to reduce environmental impact. Many of the forms of packaging, specifically plastic, end up landfills and take centuries to biodegrade or do not biodegrade at all. As no packaging is truly
64 “PA Preferred About Us.” PA Preferred. 2012. http://www.papreferred.com/about_us 65 “Certification Standards.” Green Restaurant Association. 2012. http://dinegreen.com/restaurants/standards.asp 66 “Taranta Case Study.” Green Restaurant Association. 2012. http://dinegreen.com/restaurants/cases.asp 67 “Food Packaging Wastes and Environmental Impacts.” Greendustries. 2012, p. 24.1-24.5. http://www.greendustries.com/unido.pdf Guide to Sustainable Business Growth - 32 -
“good” for the environment, minimizing this environmental risk should be your goal. A good example of packaging improvement occurred in 2011 when food and beverage industry giants Heinz and Coca-Cola introduced the PlantBottle. This plastic bottle is made partially from plants (30%) and therefore has a lower reliance on non-renewable resources. The plant material is produced by turning natural sugars from plants into a key component in polyethylene terephthalate (PET) plastic.68 The PlantBottle generated positive publicity for both companies and is a step toward weaning themselves off the reliance of plastic.
Financial The financial industry can realize increased profits from innovative green products and services. From green car loans to energy efficiency mortgages, the opportunities for the financial industry to develop and sell green products are endless. In the financial industry, there are six categories of green products69:
Mortgages Energy efficiency mortgages provide customers with lower interest rates than market rates for clients who purchase new energy efficient homes, invest in retrofits, or invest in green power and appliances.
Home Equity Loans Reduced-rate home equity loans (sometimes referred to as “second mortgages) can help motivate customers to install residential renewable energy technologies. The financial institution responsible for issuing the loan can build in a “greening” stipulation that incentivizes the customer to choose more eco-responsible products for their home.
Commercial Building Loans Attractive loan designs have emerged for green commercial buildings, characterized by lower energy consumption of 15-25% and reduced waste and pollution. Appraisers now recognize reduced operating expenses, improved performance, and longer useful lives associated with these green features. Lower project costs improve net operating income, a key factor when evaluating property using the income approach.
Car Loans Green car loans encourage the purchase of cars that demonstrate high fuel efficiency. Most green car loans are offered by credit unions or smaller financial institutions, as this is a niche business.
Credit Cards Some credit and debit cards have benefits linked to environmental activities. For example, some green credit cards offer to make non-governmental organization (NGO) donations of around 0.5% of each purchase. In Europe, a new trend has emerged that involves companies offering credit cards tied to a greenhouse gas (GHG) offset program.
68 “Coca-Cola and Heinz Announce Landmark Partnership to Expand Use of Innovative PlantBottle Packaging.” Heinz. 23 Feb 2011. http://www.heinz.com/our-company/press-room/press-releases/press-release.aspx?ndmConfigId=1012072&newsId=20110223006138 69 Sullivan, Katie. “Green Financial Products and Services.” TSYS. 2012. http://www.tsys.com/thoughtLeadership/ngenuityInAction/fall2008/fall08_green_financial_products.cfm Guide to Sustainable Business Growth - 33 -
Microfinance Microfinance is the supply of loans, savings, and other basic financial services to the poor. Small loans are generally issued to small business owners in impoverished or developing countries. Loan repayment rates are high, ranging from 95-98%.70 Microfinance helps improve assets and income in countries by helping small business owners get established.
Success Story: Shorebank A success71 story of a green financial product comes from the US company Shorebank. In 1995 the company launche d a product called “EcoDeposits.” This product is a fully insured deposit earmarked for lending to local energy-efficient companies aiming to reduce waste and pollution or conserve natural resources. The product attracted $57 million in deposits in 2002, and by 2004, the amount had grown to $82 million, representing over 2,000 investors with an average investment of $40,000.71
Healthcare The positive impact of the greening of the crucial healthcare industry can have a profound indirect impact on all stakeholders. Dangers in hospitals and medical clinics are abundant and include exposure to dioxins, phthalates, mercury, volatile organic chemicals (VOCs), and infections.72 In the healthcare industry, three improvements can be made: an adherence to green building standards, such as energy efficiency; a reduction in water consumption; and better energy efficiency in medical equipment. This section will focus on breakthroughs in safer and more environmentally friendly medical technology, but it is important to understand that hospitals are some of the most energy-intensive facilities in the world - open 24 hours a day - , and there are numerous opportunities to improve the energy efficiency in these buildings.73 As an aside, there is currently no standard certification for measuring energy efficiency of medical equipment and machinery used in healthcare facilities.
Success Story: Lawrence Memorial Hospital An example of energy efficiency in a health care facility comes from Lawrence Memorial Hospital in Lawrence, Kansas, where director of facilities management Skanda Skandaveri helped save the hospital $40,000 in energy costs in just one year. According to Mary Catherine O’Connor of GreenBiz, “Skandaveri asked 74 for $20,000 to fund the purchase and installation of smart meters that would improve the operation of chillers, boilers and air handlers. Because he had already shown the energy saving measures could lead to real savings, management granted him the funds, and the facility saved $40,000 in energy costs during the first year that the meters were used. For upper management, a net savings of $20,000 plus a return on the investment within six months shed a new bright light on energy 74 efficiency. ”
70 “Green Financial Products and Services.” UNEP Finance Initiative. ICF Consulting Canada, Inc.: 2007, p. 76. http://www.greenbiz.com/sites/default/files/document/CustomO16C45F94514.pdf 71 “Evidence That Microfinance Works.” Kiva. 2012. http://www.kiva.org/about/microfinance/#evidenceDemonstratesMicrofinanceWorks 72 Olson, Karen. “The Greening of Health Care.” Almanac of Policy Issues. November/December 2002. http://www.policyalmanac.org/publications/utne/greening_of_health_care.shtml 73Qualk, James D. “Greening the Healthcare Industry.” Environmental Design + Construction. 1 Aug 2008. http://www.edcmag.com/articles/greening-the- healthcare-industry 74 O’Connor, Mary Catherine. “The Rx for Greening a Healthcare Facility.” GreenBiz.com. 1 Apr 2009. http://www.greenbiz.com/news/2009/04/01/rx- greening-healthcare-facility Guide to Sustainable Business Growth - 34 -
Recycling Medical Equipment When it comes to the greening of medical equipment, the end is the beginning. As your equipment ages, it becomes less useful. However, the parts and materials within the equipment can be beneficial to some buyers.75 Instead of disposing of your medical equipment, you should first consider selling or donating it. The company, DotMed (www.dotmed.com) buys and sells old medical equipment and parts. This is the most environmentally friendly and financially beneficial method for end-of-life treatment of medical equipment.
Reusing Operating and Examination Room Supplies It is important to take extra caution when reusing any type of medical supply. Ensure that you have proper sterilization or resterilization processes. Johns Hopkins researchers say that some single-use devices and items - for example, surgical gowns, towels, laparoscopic ports, and ultrasonic cutting tools - can be used multiple times with proper sterilization. Ensure that you are procuring items that are designed for sterilization and are safe for multiple uses. Banner Health in Phoenix saved nearly $1.5 million in 12 months from reprocessing operating room supplies such as compression sleeves, open but unused devices, pulse oximeters and more.76
Hospitality/Tourism Tourism is one of the largest and fastest-growing industries in the world. Billions of people travel each year, and when they do, many of them stay in hotels. Hotels account for much of the tourism industry, and the hotel industry has begun to make major strides in reducing its impact on the environment. By going green, hotels can gain competitive advantage, customer loyalty, awards and recognition, and increased brand value. Going green for hotels is a form of risk management and is sometimes required to comply with regulations.77 Most importantly, sustainability initiatives for a hotel company will boost each of its three bottom lines: economic, environmental, and social. According to the Green Hotels & Responsible Tourism Initiative, the most prominent changes in the hotel industry include use of compact fluorescent lights, reuse of linens, low-flow shower systems, and implementation of recycling programs.
Hotels Going Green The State of Pennsylvania offers a comprehensive list of the many sustainable initiatives in the hospitality industry.78
Restaurants - Recycle cans, glass, and plastic containers. - Have grease and oil picked up by a recycling service. - Serve cream from a pitcher, sugar/salt/pepper from holders, and condiments from reusable dispensers.
75 Webster, Wayne. “Focus on Performance: The Greening of Medical Equipment.” Dotmed. 12 May 2010. http://www.dotmed.com/news/story/12013?p_begin=0 76 “Going Green in the Hospital: Recycling Medical Equipment Saves Money, Reduces Waste and Is Safe.” Science Daily. 24 Feb 2010. http://www.sciencedaily.com/releases/2010/02/100224183113.htm 77 “How to Increase Your Bottom Line by Going Green.” Green Hotels & Responsible Tourism Initiative. 2010. http://green.hotelscombined.com/GreenYourHotelWhitePaper.php#why-go-green?-the-business-case-for-sustainability 78 Commonwealth of Pennsylvania. “The Tourism and Hospitality Industry Goes Green.” Department of Environmental Protection. 2000. http://infohouse.p2ric.org/ref/03/02592.pdf Guide to Sustainable Business Growth - 35 -
- Serve meals on one large plate rather than several plates. - Save food scraps to donate to farmers. - Reduce or eliminate the use of paper napkins by using cloth napkins.
Public Areas - Install cloth roll towels and hand dryers in public restrooms. - De-lamp vending machines (saves 55% in electricity usage). - Buy reusable cups, dishes, and silverware for employees. - Donate used furniture, linens, and equipment to local charities or organizations.
Housekeeping - Install reusable air conditioner and furnace filters. - Use worn towels and linens as cleaning rags. - Install recycling bins in guest rooms. - Choose suppliers who are knowledgeable and supportive of source reduction and have reviewed their own practices to reduce wastes or provide recyclable packaging. - Improve purchasing and inventory management to prevent overstocking supplies that have limited shelf life. - Encourage employees to get involved in waste reduction programs; use incentives to involve employees; encourage suggestions to improve sustainability programs. - Substitute hazardous cleaning agents with friendlier biodegradable products.
Guest Rooms - Use recycled paper products. - Install energy efficient lights and compact fluorescent (CFL) bulbs. - Educate guests about the option of not having their sheets and towels changed daily. - Install soap and shampoo dispensers which reduce the waste from hundreds of small plastic bottles. - Choose low maintenance landscaping plants to reduce chemical and water use.
Travelers Going Green The Green Key Eco-Rating Program offers some ideas to travelers to help the hotel industry with its sustainability efforts.79 If you are in the hospitality business, it might be useful for you to create a small pamphlet or brochure with some of these pointers.
Lighting: If you’re in the room during the day, open to the curtains to take advantage of natural light instead of turning on multiple light sources. Additionally, turn off all lights when you leave the room. Towel & Linen Reuse Programs: Many hotels provide guests with the option to reuse their towels and linens during their stay rather than having them changed daily. By taking advantage of these programs you help reduce the number of loads of laundry a hotel generates daily which contributes to both water and energy savings.
79 “Traveling Green.” Green Key. 2012. http://www.greenkeyglobal.com/traveling_green.asp Guide to Sustainable Business Growth - 36 -
Recycling: More and more hotels are placing recycling bins in their guest rooms and meeting rooms. Make full use of it by placing items such as newspapers, paper, plastics, cans and glass in it rather than in the garbage bin. Water Conservation: When brushing your teeth or washing/shaving your face shut the tap off or fill the sink to avoid leaving the water running. Keeping your showers short not only saves water but also saves energy (used to heat the water). A 10-minute shower can use up to 20 gallons/75 liters of water (low flow showerheads will use less).
Green Key Probably the most renowned recognition system in the hotel industry is the Green Key Eco-Rating Program. The program awards a 1-5 Green Key rating and provides guidance on how to “unlock” opportunities to reduce environmental impacts and operating costs through reduced utility consumption, employee training, and supply chain management. Thousands of hotels are enrolled in the program, which costs $600 per year.
Information Technology The State of California, a leader in information technology production, reports that office equipment accounts for 26% of electricity used in office buildings, yet it is often the most ignored product when discussing energy efficiency savings.80 While there is no industry- wide standardized green label for information technology products, the Electronic Product Environmental Assessment Tool (EPEAT), offered by the Green Electronics Council, is a certification that can cover desktops, laptops, monitors, and some other workstations. It does not cover printers, projectors, and interactive whiteboards. EPEAT products meet Energy Star specifications and contain reduced levels of cadmium, lead, mercury, and other toxic substances harmful to human health and the environment. EPEAT certification also requires that manufacturers offer an end-of-life take-back program.81 The EPEAT certification has multiple benefits82:
Reduces use of primary materials by 15.7 million metric tons, equivalent to the weight of 48 Empire State Buildings Reduces use of toxic materials, including mercury, by 1,156 metric tons, equivalent to the weight of 192 elephants. Eliminates use of enough mercury to fill 437,048 household mercury fever thermometers. Avoids the disposal of 59,525 metric tons of hazardous waste, equivalent to the weight of 4 Eiffel Towers. Eliminates the equivalent of more than 16,052 US households’ annual solid waste—31,991 metric tons Savings of over 9 billion kWh of electricity—enough to power 757,416 US homes for a year. Avoidance of 36 million metric tons of air emissions (including greenhouse gas emissions) and over 77 thousand metric tons of water pollutant emissions. Reduction of over 1.6 million metric tons of greenhouse gas emissions— equivalent to taking nearly 1.1 million US passenger cars off the road for a year
80 “Green IT Resources.” Green IT. 2012. http://www.greenit.net/resources.html#1 81 Schibsted, Evantheia. “Green Products Guide: Information Technology and Related Equipment.” Edutopia. 28 Oct 2009. http://www.edutopia.org/green- schools-environment-products-technology 82 “EPEAT Environmental Benefits.” EPEAT. 2012. http://www.epeat.net/learn-more/environmental-benefits/ Guide to Sustainable Business Growth - 37 -
Another third-party certification group, EcoLogo has unveiled strict standards for office equipment such as copiers, printers, and multifunctional units (MFUs). To achieve this label, the product must meet Energy star criteria; Restriction of Hazardous Substances (RoHS) requirements; and must not exceed limits on ozone, dust, and VOC emissions. Like EPEAT, the EcoLogo label requires manufacturers to have a take-back program for recycling equipment at the end of its useful life. EcoLogo has almost one hundred certified products from companies such as Hewlett-Packard (HP), Konika Minolta, Lexmark, Samsung, and Xerox.83
Retail The retail industry faces many challenges in greening itself, from the supply chain to packaging material to the finished product on the shelf. Canadian consultants Bernie McIntyre and Wendy Evans offer several ideas and success stories for retailers looking to go green84:
Apply Standards for Own-Brand Green Products Many major retailers have developed their own line of green products according to their own standards. The following are just a few examples of retailers who have developed their own environmental labels: Sainsbury's Supermarkets has developed supply chain sustainability guidelines called 'Raising the Standard' and issued them to all own-brand suppliers, after piloting them with a number of suppliers. Wal-Mart Stores Inc. launched its own “Great Value” private label of compact fluorescent light bulbs (CFLS) and is now selling the energy efficient bulbs in thousands of stores. Grand & Toy offers recycled, recyclable and responsibly-manufactured national brands, and also has their own custom brand of environmentally friendly products under the “Green Office” label. Loblaw Cos. Ltd. has developed their PC® Green™ Environmentally Friendly Products™ based on the latest technology and the most scientific information. Unveiled in January 2007 at the Outdoor Retailer trade show in Utah, the Green Index rating helped Timberland win the Backpacker Editor's Choice Green Award for innovation in green product development. Industry-wide interest seems to be developing for creating a common "eco label" for products. Otto's "Eco-Tex Project,” which provides ecological textiles for the mass market, is a project that proved the possibility of inexpensive yet environmentally friendly textiles.
Use Third-Party Certification Third-party certification gives products extra credibility. Numerous retailers are opting for merchandise with labels developed outside of their organization. Crate and Barrel has released a green sofa called the Lockaport, and a matching chair. "For upholstery, this is our first venture into sustainability,” says Heather Turner, product manager assistant with Crate and Barrel in Northbrook, Illinois, noting that the retailer "hopes to develop more." The frames for the sofa and chair are made from hardwood that's certified by the Sustainable Forestry Initiative and the Forest Stewardship Council (FSC). Grand & Toy, Canada's leading provider of business solutions is adding Boise Cascade FSC-certified office paper grades to its already certified collection
83 “EcoLogo Green Products.” EcoLogo. 2012. http://www.ecologo.org/en/ 84 “Greener Products Best Practice Database.” Greening Retail. 2012. http://greeningretail.ca/best/best_green_products.dot Guide to Sustainable Business Growth - 38 -
One of B&Q's initial steps was to use only FSC-certified wood in B&Q kitchens - B&Q is also the UK's largest seller of kitchens, and it has now announced that 100 per cent of the wood it uses in this element of the business is already FSC-certified.
Eliminate Some of the Most Undesirable Products California’s most notable green move occurred in San Francisco, where in 2012, the city required retailers to charge shoppers 10 cents for every plastic bag they used.85 Stores that violate the law would face fines of $100 for the first infraction, $200 for the second and $500 each time after that.
Success Story: IKEA
IKEA has been viewed as a leader in sustainable retail. According to their 2009 Sustainability Report, IKEA 86 has policies and practices in place to ensure the materials they purchase are from suppliers that have fair
labor practices and forestry operations that do not participate in illegal logging. They have also placed
emphasis on the procurement of organic products for their food operations. IKEA essentially pioneered the
“flat pack” box which not only helps consumers haul their purchases home, but also allows the company
transport their products to their stores more efficiently, saving carbon emissions in the process. IKEA also
deliberately engineers their products to require as little packaging as possible. The company has been ahead
of the game in reducing the amount of urea formaldehyde in their composite wood products. Similarly, they
use chlorine-free paper for their catalogs, avoid optical brighteners in bedding and other textiles, and have
completely banned the use of PVC except in electrical cords.86
Some retailers are screening products that have been identified as having significant harmful effects on the environment. For example, coral has long been used in fine jewelry. For six years Tiffany has refused to use coral in their collections until they are convinced that coral harvesting is sustainable and does not threaten marine ecosystems. Furthermore, Tiffany's Foundation supports research and community-led work focused on halting the destruction of coral reefs that results from overfishing, shore development and the effects of global warming. One of B&Q’s initial steps is to phase out Patio Heaters. B&Q is the largest seller of patio heaters in the United Kingdom. However, given the fact that the smallest 4.5kW table top patio heater emits as much CO2 in two hours as the average individual electricity consumption for a whole day, the company has committed to forego restocking them. Finally, Sears said it's working to phase out polyvinyl chloride, or PVC, in its packaging and merchandise.
One of the most undesirable “products” is an overabundance of packaging. The EPA lists six steps to achieving more eco-friendly packaging87: 1. Evaluating the need for the package 2. Using less material (aka. source reduction). Designing a package so that a minimum amount of material fulfills the functional requirements offers cascading environmental benefits. By reducing the quantity of raw materials used in the packaging, you can minimize its environmental and economic footprint. 3. Increasing the recycled content of the packaging materials. 4. Eliminating toxic constituents. Ensure that all the additives, adhesives, coatings, and inks that get added to the package are safe for human health and the environment.
85 ABC News. “San Francisco Expands Plastic-Bag Ban.” Associated Press. 8 Feb 2012. http://abcnews.go.com/US/wireStory/san-francisco-expands-plastic- bag-ban-15535932 86 “IKEA 2009 Sustainability Report.” IKEA. 2009, p. 19-41.http://www.ikea.com/ms/en_US/about_ikea/pdf/sustainability_Report_2009.pdf 87 EPA. “Packaging of Products.” Environmental Protection Agency. 2012. http://www.epa.gov/retailindustry/products/sustainability.html#packaging Guide to Sustainable Business Growth - 39 -
5. Use packaging materials that can be recycled or composted once it has served its original purpose. Design your package so all components can be easily taken apart and recovered. 6. Support materials recovery and recycling. Educate your consumers on what they can do with your package once they no longer need it.
Offer a Range of Eco-Products Retailers often develop a wide range of products with special environmentally-friendly features. Greening only one of your products or product lines is often frowned upon by the public and by shareholders, who have higher expectations. Timberland's The Mountain sneaker is part of their Greenscapes Collection, a technical, casual footwear and apparel collection which utilizes earth-conscious materials and construction methods without sacrificing the style and function demanded by the outdoor consumer. Waldeck's 3,500-square-foot retail store is filled with recycled, biodegradable, reusable, energy- efficient, non-toxic products. Office Depot saw a 136% growth in average post-consumer recycled content in cut-sheet paper sold and used in U.S. and Canada between 2003 and 2005. The Gap is exploring the use of organic cotton for some product offerings. For example, in February 2007, select Gap stores introduced men's t-shirts and tanks made with 100% organic cotton.
Specialize in Eco-Friendly Products An increasing number of stores are catering to the customer who intentionally seeks out greener merchandise by specializing in green merchandise. For example, the Greater Goods store is part of a growing niche of eco-friendly consumer goods stores. They are making a slow, quiet entry into the industry, staring down some heady competition in national big-box players that are greening up their own aisles in hopes of hooking the same carbon-conscious shoppers. For retailers like The Isku Furniture Company, green is integrated into the majority of their products. They strive to achieve maximum eco-efficiency by using home-grown birch as their principal raw material. Owner of the store, 'ecoexistence', Kym Klopp, checked out the competition before opening her store. Klopp says of other retailers, "They focus on stationery and pens, things you don't really need. We sell things you actually need. We have a gift element, but I really wanted it to be stuff you could use every day, the essentials." The store is divided to focus on different rooms of the house - bedroom, kitchen, bathroom, nursery and pets - to help customers gradually incorporate green living into their home and lifestyle.
Form Partnerships It's difficult for a retailer to go-it-alone in greening their products. Boots, for instance, has close relationships with a number of NGOs working in fields relevant to their business - for example, the environmental impact of chemicals used in manufacturing. Wal-Mart is creating networks of innovation composed of suppliers, associates, and non-governmental organizations. They are working on sustainable packaging, cotton, wood, fish, produce, electronics, and the elimination of substances of concern in all merchandise. IKEA has comprehensive plans and partnerships to address social responsibility from annual drives providing disadvantaged children with soft toys and solar lamps to tree planting campaigns and work with UNICEF and the World Wildlife Fund.
Placement Be sure that - in addition to adhering to the items on this list – you place your new green products in high profile spots of your store and website. According to GreenMarketingTV, putting products in a central position,
Guide to Sustainable Business Growth - 40 -
preferably with colorful signs and a clear sales pitch including viable discounts will ensure that your effort to green your business is not wasted.88
Triple Bottom Line Impacts of Step 4 Economic Greening your product line can save on items such as fuel costs, shipping costs, laundry costs, and excess packaging. Business procurement of green products and services will help to build the market. Environmental Green products reduce environmental impact by lowering carbon emissions, reducing waste, using less water and energy, and improving the prospects for long-term sustainable use of our resources. Social Customers have increasingly preferred purchasing products from environmentally responsible companies. Also, buying local products bolsters the local economy by creating both new business opportunities and jobs in the community.
88 “How to Have a Green Retail Store.” Green Marketing TV. 10 Jun 2010. http://www.greenmarketing.tv/2010/06/23/how-to-have-a-green-retail-store/ Guide to Sustainable Business Growth - 41 -
Step 5: Adopt Energy Efficient Practices
Many senior executives have bought into energy efficiency as the solution to saving money and building brand reputation. While it is not the only solution, energy efficiency is generally the easiest segment to start in the process of greening a company.
ASHRAE Standards The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) develops standards (ASHRAE 90.1) for those concerned with the design and maintenance of indoor environments.89 The standards can be applied on their own or in conjunction with ISO 50001 and LEED certification standards. Many organizations use ASHRAE standards as a guide for energy efficiency, especially with heating, ventilation, air-conditioning, and refrigeration (HVAC&R). ASHRAE also offers classes, seminars, and expos throughout the United States that help companies understand new energy technologies and various energy- saving opportunities.
Energy Efficiency in Daily Practices Energy Audits Except in the rare case of having in-house expertise, most companies hire a qualified third-party consultant to conduct energy audits. ASHRAE identifies three general levels of energy audits90:
Walk-through Assessment: energy bills are analyzed and, possibly, a brief visual survey of the facility is conducted. The subsequent report identifies no-cost and low-cost opportunities. This is the least costly of the three levels. Energy Survey and Analysis: a more detailed analysis is conducted, including a breakdown of how energy is used within the building. Recommendations consider an owner's operations and maintenance, constraints, and economic criteria. Potential capital-intensive opportunities are identified in the final report for further research and analysis. This is the typical level of audit. Detailed Analysis of Capital-Intensive Modifications (Investment-grade Audit): this analysis focuses on capital-intensive opportunities and provides a higher degree of monitoring, data collection, and engineering analysis. The report includes detailed cost and savings information with a high-level of confidence sufficient for major capital investment decisions, and may include a reasonable timeline for implementation of each recommendation.
As a side note, it is imperative that the person conducting the audit has the proper credentials. An energy auditor certified as a Building Performance Institute (BPI) Building Analyst has passed a two-hour, 100-question, written exam with a score of at least 70%, in addition to passing a field exam. A BPI analyst needs to be re- certified every three years. A Certified Energy Auditor (CEA) is an accreditation awarded by the Association of Energy Engineers (AEE). CEAs have completed an auditing seminar and passed a four-hour written exam with a score of 70% or better, in addition to satisfying stringent education and/or experience prerequisites. CEA's
89 “ASHRAE Standards and Guidelines.” American Society of Heating, Refrigerating, and Air-Conditioning Engineers. 2012. http://ashrae.org/standards- research--technology/standards--guidelines 90 “Energy Audit.” Flex Your Power. 2012. http://www.fypower.org/bpg/module.html?b=offices&m=Planning_an_Energy_Program&s=Energy_Audit Guide to Sustainable Business Growth - 42 -
must be re-certified every three years.91 Once you have completed an energy audit, you will be ready to make significant changes to your daily energy usage that can save your company a significant amount of money.
Lighting Lighting uses 44% of the electricity in office buildings. The Energy Independence and Security Act of 2007 (EISA 2007) states that beginning in 2012, common light bulbs sold in the U.S. must use, on average, 50% less energy. The lighting standards do not ban incandescent or any specific bulb type. However, they say that bulbs must use about 25% less energy.92 Energy- saving light bulbs, namely compact fluorescent lights (CFLs) and light-emitting diodes (LEDs), can save you about $5 per year per bulb when you make the switch, and energy-saving bulbs last 8 to 15 times longer than inefficient incandescent bulbs. Making the switch is easy. Most local retailers that sell household goods, hardware, or building supplies generally carry a wide assortment of energy-efficient light bulbs.
There are three types of energy efficient bulbs: T5, T8, and T12 (the t stands for “tubular”). Bulbs are labeled by their lengths and diameters. T5s are shorter in length than T8 and T12 bulbs. T5s have a diameter of 5/8 inch; T8s have a diameter of 1 inch; and T12s have a diameter of 1.5 inches. The luminous efficacy - how much light a lamp generates from the energy it consumes - of T5 lamps is about 100 lm/W, while those of T8 and T12 lamps are only about 80 lm/W and 70 lm/W respectively.93 Therefore, T5 bulbs are generally the most energy efficient.
In addition to purchasing energy-efficient light bulbs, two other simple tips can save you a significant amount of money on your monthly utilities bill. When you are not in the room, turn off the light. This hard-to-remember step can be remedied by installing motion sensors that turn the lights on when they detect movement in the room. A second tip is to use as much natural light as you can. Implement this simple policy to realize significant utilities savings: if the sun is out, the lights should be off.
Energy Star Equipment In 1992 the United States Environmental Protection Agency (EPA) introduced Energy Star as a voluntary labeling program designed to identify and promote energy-efficient products to reduce greenhouse gas emissions. Today, Energy Star is a joint program of the EPA and the U.S. Department of Energy which helps businesses save money and protect the environment through the use of energy efficient products and practices.
91 Energy Circle Staff. “Guide to Energy Audit Certification.” Energy Circle. 18 Aug 2009. http://www.energycircle.com/learn/home-energy- audits/certification 92 US Department of Energy.“New Lighting Standards Begin in 2012.” Energy Savers. 2011. http://www.energysavers.gov/your_home/lighting_daylighting/index.cfm/mytopic=11977 93 “Energy Efficiency.” LuxAdd. 2012. http://www.luxadd.com/index.php/energy-efficient-use-of-lighting.html Guide to Sustainable Business Growth - 43 -
Americans, with the help of Energy Star equipment, saved enough energy in 2010 alone to avoid greenhouse gas emissions equivalent to those from 33 million cars, all while saving nearly $18 billion on their utility bills.94
Because a strategic approach to energy management can produce twice the savings - for the bottom line and the environment - as typical approaches, EPA’s Energy Star partnership offers a proven energy management strategy that helps in measuring current energy performance, setting goals, tracking savings, and rewarding improvements.95 When purchasing new office equipment or replacing old equipment, look for the Energy Star seal to ensure you are buying a product that is energy efficient. You can read more about how your building can earn an Energy Star label at www.energystar.gov.
Heating, Ventilating, and Air Conditioning (HVAC) Almost half of the energy used in your office goes toward heating and cooling the building. Here are four easy steps from Energy Star that you can take to achieve a more sustainable HVAC system.96 Note that except for smaller office spaces, HVAC systems for businesses vary on the type of use and system. Change your air filters regularly. Check your filter every month, especially during heavy use months (winter and summer). At a minimum, change the filter every 3 months. A dirty filter will slow down air flow and make the system work harder to keep you warm or cool - wasting energy. Install a programmable thermostat. You can save around 10% a year on your heating and cooling bills by simply turning your thermostat back 10°-15° for eight hours.97 Ensure that when no one is at the office, the thermostat is programmed at a temperature conducive to energy saving. In the winter, the ideal temperature to set your heat to during business hours is 68°. In the summer, the ideal temperature to set your air conditioning to during business hours is 78°. Place thermostats away from direct sunlight, drafts, doorways, skylights, and windows to ensure better performance and efficiency. Seal your heating and cooling ducts. Sealing and insulating ducts can improve the efficiency of your heating and cooling system by as much as 20 percent - and sometimes much more. Use duct sealant (mastic) or metal-backed (foil) tape to seal the seams and connections of ducts. After sealing the ducts, wrap them in insulation to keep them from getting hot in the summer or cold in the winter. Consider installing Energy Star qualified heating and cooling equipment.
94 “Energy Star and Other Climate Protection Partnerships 2010 Annual Report.” Energy Star. 2010. http://www.energystar.gov/ia/partners/publications/pubdocs/2010%20CPPD%20Annual%20Report.pdf?10b4-661c 95 “About Energy Star.” Energy Star. 2012. http://www.energystar.gov/index.cfm?c=about.ab_index 96 “Heat & Cool Efficiently.” Energy Star. 2012. http://www.energystar.gov/index.cfm?c=heat_cool.pr_hvac 97 US Department of Energy. “Thermostats and Control Systems.” Energy Savers. 2012. http://www.energysavers.gov/your_home/space_heating_cooling/index.cfm/mytopic=12720
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If your HVAC equipment is more than 10 years old or not keeping your house comfortable, have it evaluated by a professional HVAC contractor. If it is not performing efficiently or needs upgrading, consider replacing it with a unit that has earned the Energy Star. Depending on where you live, replacing your old heating and cooling equipment with Energy Star qualified equipment can cut your annual energy bill by around 20%.
Renewable Energy Opportunities Switching to clean “green” energy at your office, facility, or factory can be an expensive investment. However, it is a low risk venture and in the long term, the change produces substantial energy savings. Additionally, it helps rid your business’s reliance on “dirty” energy like coal, in favor of clean and renewable energy such as solar and wind power. Procuring clean energy also brings positive publicity to your business and greatly improves your company’s reputation.
The generally accepted method for acquiring clean energy is through the EPA’s Green Power Partnership program. As stated on the EPA’s website, “The Green Power Partnership is a voluntary program that supports the organizational procurement of green power by offering expert advice, technical support, tools and resources. Partnering with EPA can help your organization lower the transaction costs of buying green power, reduce its carbon footprint, and communicate its leadership to key stakeholders. Green power is electricity produced from a subset of renewable resources, such as solar, wind, geothermal, biomass, and low-impact hydro. Buying green power is one of the easiest and most effective ways to improve your organization’s environmental performance.98”
98 EPA. “Green Power Partnership.” Environmental Protection Agency. 2012. http://www.epa.gov/greenpower/index.htm Guide to Sustainable Business Growth - 45 -
Steps to becoming a Green Power Partner: 1. Estimate annual electricity use. 2. Review purchase requirements. 3. Find and buy green power products. 4. Complete partnership agreement (available on the EPA’s website). 5. Communicate your purchase via press releases, annual reports, and advertising.
Operating a Renewable Energy Company As the world begins to embrace a sustainable future, a shift toward cleaner and renewable energy has begun. The renewable energy market is relatively untapped. In fact, the United States Department of Energy reports that only 6.3% of all energy used in the United States is from renewables.99 However, the United States aims to get that number to 10-20% in the next decade. Pennsylvania hopes to have 10% of its energy be renewable by 2025. This goal would create 59,000 jobs. As stated in a study by Black and Veatch, “Using renewable energy to provide electricity for Pennsylvania creates a significantly larger impact on the economy than does relying on fossil fuels. The additional income earned by Pennsylvanians working in the renewable energy industry more than makes up for the increase in cost required to invest in renewable energy. Additionally, renewable resources could potentially save consumers millions of dollars per year.100” There are five primary sources of renewable energy: biomass, hydroelectric, geothermal, solar, and wind. As you will see, some of the sources have more economic advantages and reduced environmental impact than others.
Because the renewable energy market is not yet saturated, it can be a fairly lucrative investment, but you must know a few things: how to penetrate the market successfully, what the rules and regulations are, and how to select a successful niche. This section provides some tips for researching renewable energy market penetration as well as an introduction to each of the five sources of renewable energy.
Entering the Renewable Energy Market Financial incentives for buying renewable energy, both as a business and a consumer, are plentiful. DSIRE (www.dsireusa.org), the Database of State Incentives for Renewables & Efficiency, lists the many different incentives and regulations for acquiring renewables. Incentives are available at the federal, state, and local levels. The incentives include grants, rebates, loans, and tax deductions. Many have strict stipulations, so be sure to read all the print before agreeing to the incentive. In addition to incentives, the site lists federal rules, regulations, and goals for renewable energy, as well as rules, regulations, and goals by state. Currently, Pennsylvania is one of a handful of states to offer a state renewable incentive program, as well as utility, local, and private renewable energy programs and incentives.101
In addition to DSIRE incentives, the IRS offers a tax deduction for energy efficiency. According to the IRS, “To qualify, energy-efficient improvements must reduce total annual energy and power costs with respect to the
99 “US Energy Trends.” Michigan State University Bioenergy. 2012. http://bioenergy.msu.edu/bioenergy/trends 100 US Department of Energy. “Economic Impact of Renewable Energy in Pennsylvania.” Wind Powering America. 2012. http://www.windpoweringamerica.gov/econ_project_detail.asp?id=15 101 “DSIRE About Us.” DSIRE USA. 2012. http://www.dsireusa.org/about/ Guide to Sustainable Business Growth - 46 -
interior lighting, heating, cooling, ventilation and hot water systems by 50%. Partial deductions are allowed. Energy simulation is required to justify the deduction; and inspection and testing must be completed by a qualified engineer or contractor registered in the jurisdiction.102” Those who are granted this deduction (form 179D) receive a maximum refund of $1.80 per square foot.
Something else to consider is having your project funded by an energy services company (ESCO) or a venture capital firm (angel investor). ESCOs identify and evaluate energy-saving opportunities and then recommend a package of improvements to be paid for through savings. In other words, you pay the ESCO with your savings. The ESCO will guarantee that savings meet or exceed annual payments to cover all project costs, usually over a contract term of 7-10 years. If savings are not realized, the ESCO pays the difference, not you.103 Most ESCO projects estimate savings between 15-35%, in addition to maintenance cost savings.
In addition to financial incentives, it is important to understand the importance of Renewable Energy Certificates (RECs). The EPA defines a REC as something that “represents the property rights to the environmental, social, and other non-power qualities of renewable electricity generation.” At every renewable energy grid, two things are produced: physical electricity and REC. One REC is produced for every one megawatt hour (1,000 kilowatt hours). The RECs are sold or traded and represent the attribute of the renewable energy (not the actual electricity). Often RECs are bundled with the physical electricity before they are sold to the buyer. RECs allow the buyer to procure green power virtually anywhere and apply the electricity to a facility of their choice.104
One of the chief certifications to consider for renewable energy is Green-e. Green-e certifies environmental commodities and products that mitigate climate change and help build a sustainable energy future. According to their website, “Green-e Energy has been certifying renewable energy that meets environmental and consumer protection standards that it developed in conjunction with leading environmental, energy and policy organizations. Green-e Energy also requires that sellers of certified renewable energy disclose clear and useful information to potential customers, allowing consumers to make informed choices.” Three types of renewable energy options can be certified: RECs, utility green pricing programs, and competitive electricity products.105
Solar Of the five renewables, solar is the cleanest and most abundant source of renewable energy. There are four types of solar energy: photovoltaic (PV), heating and cooling systems, concentrated solar power, and lighting. Solar energy installation is versatile as panels can be installed on rooftops or on the ground near the site where the energy is being used. Today the U.S. government is being challenged by environmental stewards to scale up incentives and encourage production of solar energy in order to drive the price down.106 The good news, though, is that the number of solar energy jobs in the United States doubled from 50,000 to 100,000 in only a two year period (2009-2011).107 With relatively easy access to the market,
102 “Understanding the Section 179D Federal Energy Tax Deduction.” Cherry, Bekaert,& Holland, CPAs and Consultants. 2012. http://blogs.cbh.com/midmarket/?p=1287 103 “What is energy performance contracting?” Energy Services Coalition. 2011. http://www.energyservicescoalition.org/resources/whatis.htm 104 EPA. “Renewable Energy Certificates.” Environmental Protection Agency. 2012. http://www.epa.gov/greenpower/gpmarket/rec.htm 105 “Green-e Energy.” Green-e. 2012. http://www.green-e.org/getcert_re.shtml Guide to Sustainable Business Growth - 47 -
respectable incentives, low risk, and virtually zero effect on the environment, solar has become the renewable energy of choice for many small business owners. However, entering the solar market can be an expensive investment and a complicated process.
Costs and Benefits Remember that while the initial investment is high, solar energy makes a building 50% more efficient and increases its property value by about $20 per $1 saved on its annual utilities bill.108 Each solar panel costs about $1,000 (includes installation). The state of Pennsylvania offers up to a 35% off rebate for the entire system cost, and federal tax credits will general save the buyer around 30%.109 Given these numbers, a customer can expect to pay approximately $455 per panel (it takes about 6 panels to supply energy for an entire home). Remember, after the initial investment, upkeep is inexpensive and many businesses offer free inspection. If a six panel property’s average electric bill is $100 a month, it would begin to make money back in about 1.75 years. After ten years, the total savings would be $9,900 (remember, six panels only costs around $2,730).110 In addition to the $9,900 in energy savings, the customer should be reminded of the emissions-free energy their home or business is producing.
Wind The 2010 World Wind Energy Report showed that the United States is the number two producer of wind energy in the world. Only China produces more wind energy.111 Among northeastern states, Pennsylvania is the leader, producing more than 740 megawatts of wind energy in 2009.112 Wind is the fastest-growing renewable energy sector, and with government subsidies and tax credits being offered, the wind industry has become even more popular to enter.113
Starting a Wind Business According to popular wind promoter, Windustry, there are three models of wind power ownership114: 1. Lease - Lease your land to a commercial-scale wind energy developer. 2. Community - you or a group, organization, or entity you are part of develops and owns a commercial-scale project in the community. 3. Small Business - You, your business, or farm own and operate a small-scale turbine.
A fourth model, offshore wind, has been growing in popularity throughout the world but has not yet reached the United States. This process is extremely involved and requires wind turbines to be built and operated in open water. It is a more appropriate venture for big businesses with years of wind experience and sufficient government support.
106 “About Solar Energy.” Solar Energy Industries Association. 2012. http://www.seia.org/cs/about_solar_energy 107 “Facts on America’s Solar Industry.” Solar Energy Industries Association. 2012. http://www.seia.org/galleries/pdf/factsheet_solar_industry_facts.pdf 108 “Why Go Solar.” Solar Energy Pittsburgh. 2012. http://solarenergypittsburgh.com/why.html 109 “Pennsylvania Solar Rebates, Incentives, and Tax Credits.” Residential Solar 101. 2010. http://www.residentialsolar101.org/pennsylvania-solar-rebates- incentives-and-tax-credits 110 “Solar Energy Pricing.” Solar Energy Pittsburgh. 2012. http://solarenergypittsburgh.com/pricing.html 111 “World Wind Energy Report 2010.” WWEA. 2010. http://www.wwindea.org/home/images/stories/pdfs/worldwindenergyreport2010_s.pdf 112 “Wind.” Energy.gov. 2012. http://energy.gov/science-innovation/energy-sources/renewable-energy/wind 113 Patel, Mukund R. “Wind and Solar Power Systems: Design Analysis and Operation.” Taylor and Francis Group. Boca Raton , FL: 2006. 114 “Wind Basics: Know Your Options.” Windustry. 2009. http://www.windustry.org/sites/windustry.org/files/8.8%20Wind%20Basics%20PDF.pdf Guide to Sustainable Business Growth - 48 -
The following information about starting a wind business is borrowed from windustry.org:
. Leasing Your Land When you lease your land to a wind energy developer, you receive compensation from a project developer who puts up a commercial-scale project on your land. The amount and details of this compensation vary in both amount and duration from project to project. The key to this type of participation is that you don’t put up, own, or operate the turbines—the developer does all of those things. Typically, this is the lowest risk way to participate in commercial-scale wind. However, the lease or easement agreement you will enter into is a complex and binding legal document, so you should always seek out experienced legal help in negotiating and evaluating any agreement with a developer.
. Community Ownership Community wind projects are locally owned, commercial-scale developments that optimize local benefits. Locally owned means one or more members of the local community has a significant direct financial stake in the wind project other than through land lease payments, tax revenue, or other payments in lieu of taxes. The term “community wind” refers to method and intention of development rather than the size of the project. Community wind project owners can include an individual, a group of farmers, a cooperative, a municipal utility, a Native American tribe, a school, or a town or city. While the risks are much greater than in leasing land to a developer, the economic rewards can also be proportionately greater.
. Small Business Ownership Small turbines are typically owned by an individual, family, farm or other small business. Owning a small turbine is a lot like buying a hybrid car - you don’t do it to make money, but rather to make a conscious choice about your energy use and possibly save money spent on energy. Many small projects are connected to the larger electricity.
Operating Cost
At a 50 watt level, a small wind turbine costs about $8.00/watt, whereas a solar panel or photovoltaic module costs about $6.00/watt. While solar power is a better investment in small loads, wind is the way to go for bigger projects. At a 300 watt level, a wind turbine costs $2.50/watt, while the solar or PV costs stay at $6.00/watt.115 As a general rule, as the amount of wattage grows, the cost of wind turbine operation decreases. As an important note, the cost of regulations and controls is nearly identical to solar and PV.
Economic Benefit The National Renewable Energy Laboratory has created a Wind Energy Finance calculator. This tool can be accessed for free at http://analysis.nrel.gov/windfinance/login.asp. It calculates your cash flows from your wind investment for a defined period of time. Wind energy almost always brings in positive cash flows after the initial investment. Remember that the government has incentives that can help you started. Additionally the
115 “A Primer on Small Wind Systems.” Bergey WindPower. 2012. http://www.bergey.com/pages/a_primer_on_small_wind_systems Guide to Sustainable Business Growth - 49 -
state of Pennsylvania offers a net metering program, which gives you retail credit for every watt of electricity you produce.116
Risk The risk of operating a wind power system is fairly low. Wind can be a little less predictable than solar power, as you never know how fast the air will move. It takes about 15 miles per hour of wind to kick start the turbines.117 Also, some people in your community may oppose wind power due to the wind or visual obstructions of the turbines. Additionally, when you operate a wind power system, you assume the risk of bird strikes. While there is no penalty for this, not everyone is a fan of cleaning up bird carcasses, and some are simply opposed to the idea of operating a manmade machine responsible for the death of any wildlife species. However, small turbines pose no risk to birds.
Biomass According to Clean and Green Power, biomass accounts for 53% of all renewable energy usage in the United States.118 When the phrase “clean energy” is used, many people think immediately of solar or wind power, disregarding biomass. However, biomass is clean, cheap, and readily available.
Any plant material or animal waste can be considered biomass. However, only specific materials can be used to produce both clean and renewable energy. This biomass, known as “beneficial biomass,” is generally split into five categories119:
Virgin wood, from forestry, arboricultural activities or from wood processing Energy crops: high yield crops grown specifically for energy applications Agricultural residues: residues from agriculture harvesting or processing Food waste, from food and drink manufacture, preparation and processing, and post-consumer waste Industrial waste and co-products from manufacturing and industrial processes.
Beneficial biomasses are used for biopower, biofuels, bioproducts, and heat. The conversion of biomass into energy requires the biomass to first be liquefied or “gasified.” Simply burning the biomass to convert it to heat can have negative effects on the environment. Additionally, by burning it, much of the energy is wasted in the process.120
As the world begins to shift from its reliance on foreign fuels, biomass could play an important role. Biomass is needed to make ethanol and biodiesel, the two most common biofuels. Ethanol and biodiesel are both clean and
116 “The U.S. Small Wind Turbine Industry Roadmap.” AWEA. June 2002. http://www.awea.org/learnabout/smallwind/upload/US_Turbine_RoadMap.pdf 117 “Frequently Asked Questions Related to Wind Energy.” EverPower. 2012. http://www.everpower.com/faqs.html 118 “Renewable Energy Filth Fighters.” Clean and Green Planet. 2012. http://cleanandgreenplanet.com/ 119 “What Is Biomass?” Biomass Energy Centre. 2011. http://www.biomassenergycentre.org.uk/portal/page?_pageid=76,15049&_dad=portal&_schema=PORTAL 120 “How Biomass Energy Works.” Union of Concerned Scientists. 29 Oct 2010. http://www.ucsusa.org/clean_energy/technology_and_impacts/energy_technologies/how-biomass-energy-works.html Guide to Sustainable Business Growth - 50 -
renewable fuels that can be produced virtually anywhere with limited resources and equipment. This makes biofuel an economical alternative to fossil fuels and can aid in strengthening local communities both socially and economically.121 While ethanol and biodiesel are more expensive than petroleum, the cost to produce and import petroleum outweighs the cost of producing biofuel (it is assumed that biofuel would not need to be imported).
Low Impact Hydroelectric Hydroelectric energy uses the free gravitational flow of water to create clean and renewable energy. Of the five renewables, low impact hydroelectric (less than 5 megawatt hours) is the most used in the world. However, hydroelectric is also the “least clean” of the five. Hydro energy involves building dams, reservoirs, and sometimes power plants to capture the water. The water is captured and put through turbines to produce energy. This process can be damaging to natural habitats and can use a significant portion of a community’s water supply. However, when it is not being abused or overused, hydro is a good source of clean power with many benefits122:
Fuel is not burned so there is minimal pollution Water to run the power plant is provided free by nature Hydro plays a major role in reducing greenhouse gas emissions Relatively low operations and maintenance costs The technology is reliable and proven over time It's renewable - rainfall renews the water in the reservoir, so the fuel is almost always there
Hydroelectric power has become a dying breed of renewable energy in the over-dammed United States. While new technology is being researched to save hydro, other forms of renewable energy have become more popular, due to the lower investment, greater availability, and limited impact on the environment.
Geothermal Geothermal energy involves extracting heat below the Earth’s surface. It is a five step process that involves locating a site, drilling, creating a geothermal reservoir, operating the system, and continuing the loop.123 This thermal energy is most abundant in geologically and seismically active areas of the world. Therefore, in the United States, geothermal energy is most predominant in Hawaii, Alaska, and other western states.124
121 “Biofuel: A Short Review.” Biofuel Guide. 2008 17 Feb. http://biofuelguide.net/ 122 “Hydroelectric power water use.” USGS. 2007. http://ga.water.usgs.gov/edu/wuhy.html 123 “How Geothermal Energy Works.” Union of Concerned Scientists. 2012. http://www.ucsusa.org/clean_energy/technology_and_impacts/energy_technologies/how-geothermal-energy-works.html 124 “Geothermal Energy.” Renewable Energy World. 2012. http://www.renewableenergyworld.com/rea/tech/geothermal-energy Guide to Sustainable Business Growth - 51 -
However, with new technologies and techniques, geothermal energy is becoming a possibility in areas that are less geologically active. Geothermal energy is a science and requires a geologist or scientist to locate the best position for geothermal drilling and an engineer to oversee the process. Additionally, the water used in the process could potentially be bio-hazardous and must be disposed of properly in order for the process to be defined as “clean.”
While installation of geothermal pumps and construction of geothermal plants is costly, the return on investment can be very profitable. Large plants cost between $3 and $5 million to build, whereas local pumps can cost under $1 million (generally $1000-$3000 per kilowatt).125 The return on investment is usually between 5 and 10 cents per kilowatt hour.126
Triple Bottom Line Impacts of Step 5 Economic Energy-saving light bulbs save you $5 per year (per bulb) in utilities bills, and Energy Star equipment reduces your utilities bill by 20%. Furthermore, federal and state financial incentives are available for many renewable energy and energy efficiency projects. Environmental Renewable energy is clean because it comes from natural sources (like sunlight, wind, and water) and emits no carbon emissions. Social Reducing your carbon emission through energy efficiency improves the health and overall quality of life for your employees and stakeholders.
125 Bertani, Ruggero. "World Geothermal Generation in 2007." Geo-Heat Centre Quarterly Bulletin. Oregon Institute of Technology, February 2007, v. 28 (3): p.8–19 126 Sanyal, Subir K.; Morrow, James W.; Butler, Steven J.; Robertson-Tait, Ann. "Cost of Electricity from Enhanced Geothermal Systems." Thirty-Second Workshop on Geothermal Reservoir Engineering, Stanford, California. 22-24 Jan 2007. Guide to Sustainable Business Growth - 52 -
Step 6: Reduce, Reuse, Recycle Wastes
When people think of sustainable waste management, the first thing that often comes to mind is recycling. However, there are three other important techniques of proper waste management: reducing waste, reusing waste, and proper disposal of waste. Each method helps in its own way to minimize the impact of waste on the environment.
Reduce Waste is inevitable. Every manmade item on the planet must eventually be disposed of, as nothing lasts forever. The first step to waste management is to reduce the amount of “inevitable” waste you create. National Geographic provides some easy steps for waste reduction at the office127: 1. Use both sides of the paper, both for writing and printing. Reuse paper for drafts, notes, and other internal documents. 2. Use dry-erase boards and overhead projectors when presenting. Refrain from handing out copies of multiple-page documents. 3. Make training manuals and other company information available electronically (on the company website, if the information is not confidential). 4. Communicate through email and social media whenever it is possible. Develop a policy for when it is okay to print documents. 5. Make digital information portable by putting it on external hard drives or flash drives. 6. Turn off lights and computers and unplug all electronics when they are not being used. Using power strips is convenient, as you can turn off all devices at once with the flip of a switch.
In addition to waste reduction in daily operations, consider ways in which you can reduce waste in the manufacturing of your products. The key is to get employee buy-in for the waste reduction movement. Employees can be the best source of innovation. For example, many sustainability-related changes in packaging have come from the assembly line. Your ultimate goal should be to make the same quality product by creating the least amount of waste possible. Some companies, such as Frito Lay, have even created “net zero” waste facilities in which all unusable materials are used either elsewhere in the facility or in a different location.128 Here are some ideas from WasteCare Corporation on how to reduce waste from manufacturing129: 1. Build systems around waste that is dense and packaged for easier handling and hauling. For example acquiring trash and cardboard compactors will allow you to easily handle waste and better keep track of the amount of waste you are creating. 2. Whenever possible use non-hazardous materials instead of hazardous and toxic substances.
127 Salter, Ann. “Waste Reduction in the Workplace.” National Geographic. 2012. http://greenliving.nationalgeographic.com/waste-reduction-workplace- 2213.html 128 “Frito-Lay Unveils ‘Near Net Zero’ Manufacturing Facility.” Frito-Lay. 5 Oct 2011. http://www.fritolay.com/about-us/press-release-20111005.html 129 “Waste Reduction & Recycling Tips for Manufacturing Facilities.” WasteCare Corporation. 2012. http://www.wastecare.com/Articles/Waste_Reduction_Recycling_Tips_Manufacturing.htm Guide to Sustainable Business Growth - 53 -
3. Monitor waste processing details on a regular basis. Often, the information gathered from your waste habits can be an indication of good management or mismanagement that is taking place in other areas of your business. 4. Establish a Waste and Recycling mission statement that provides a basis for your company's vision. Provide incentives for those who are generating the best ideas and contributing the most to the mission statement. 5. Engage the help of not only local recycling coordinators but also nearby colleges and universities who may be interested in Waste and Recycling related school projects. For example, recently in Ann Arbor, Michigan owners of small and mid-size manufacturing facilities were offered pro-bono work by University of Michigan student engineers. These engineers gave free consulting on how to improve efficiency, create less waste and gain higher profits. You never know when graduate students near you are interested in using your site for a master thesis.
Success Story: Eco Innovation partners Eco Innovation Partners, a Midwest-based environmental consulting firm, led a project focused on improving the profitability and environmental sustainability of a metal fabricated part manufacturing line and an engine assembly line. A multi-functional team of stakeholders from several OEM functions and subcontractor companies evaluated the manufacturing and assembly flows for process and energy waste. The assembly investigation revealed design opportunities to consolidate and/or eliminate parts in the assembly with no loss of functionality while lowering costs and improving assembly first time yield. The manufacturing cost and carbon footprint reduction of this elimination was a direct bottom line profitability improvement. The fabrication part manufacturing line investigation revealed opportunities for a 60% reduction in piece-part transportation movement, a 27% reduction in shop manufacturing labor input, and a 15% reduction in total energy input. Over the course of a year-long engagement with multiple team events130 to execute the process improvements, the total manufacturing and assembly costs were reduced 130 29%. This represented an $8.1M cost savings.
Your company can also become active in local, state, federal, and even global waste reduction initiatives. For example, companies like Coca-Cola, Kraft Foods, and Procter & Gamble are now committed to the Courtauld Commitment, a voluntary government-run structure that calls for businesses to commit to meeting waste reduction targets. Implemented in March 2010, it aims to achieve a more sustainable use of resources over a lifecycle period. Targets in the commitment include reducing traditional grocery packaging by five per cent, reducing household food and drink waste by four per cent and reducing the carbon impact of packaging by 10 per cent by 2012. The agreement is signed between retail companies and the government-backed Waste and Resource Action Programme (WRAP).131
Reuse Maximizing items for their useful life is a great way to manage your company’s waste. Ensure that every item gets the fullest use. Be creative when it comes to reuse. For example, you could take old coffee beans from the office kitchen, grind them up, and place them in bathrooms as potpourri. National Geographic has some other ideas for office supply reuse:
130 “How We Can Help.” Eco Innovation Partners. 2012. http://www.ecoinnovationpartners.com/how-we-can-help 131 England, Rachel. “Big names commit to waste initiatives.” Earth Times. 31 Jan 2011. http://www.earthtimes.org/business/big-names-commit-waste- initiatives/248/ Guide to Sustainable Business Growth - 54 -
1. Use refillable toner cartridges for printers. 2. Choose reusable intra- and interoffice envelopes for sending documents between offices and departments (also consider using rechargeable batteries). 3. Reuse corrugated boxes for shipping supplies between offices. Work with suppliers, shippers, and customers to do the same. 4. Buy refillable pens and mechanical pencils. Consider purchasing pens, pencils, and paper made from recycled content. 5. Use fine-point pens to save on ink. Thicker pens apply more ink to the paper than thin ones.
Additionally, when you have the opportunity to do so, use non-disposable bags (such as cloth bags) and containers instead of paper and plastic ones.
Remember, the bathroom can be the biggest source of waste. Use refillable soap dispensers and hand dryers instead of paper towels. While there may be employee resistance to these changes, remind them that this is for the good of the environment and saves unnecessary costs for the company. That savings translates into profits, which in turn translates into compensation increases!
Recycle In general, one of three things happens to municipal solid waste (MSW): it goes to a landfill; it gets recycled; or it gets composted/becomes energy. About 54% of waste goes to landfills, 34% gets recycled, and 12% gets composted or is turned into energy.132 In rare cases, trash is incinerated or combusted. Incineration can be quite harmful to the environment and should be avoided when possible. Recycling, on the other hand, is eco-friendly and on the rise. In the last 50 years, recycling in the United States has increased by nearly 28%.133 An EPA study illustrates that car batteries are the most recycled item in the United States, while plastic bottles and jars are the least recycled. Recycling is easy and often comes with financial incentives. Check with your local and state government on the rules for their recycling programs and possible incentives. Note that many cities require businesses to have a recycling program. For example, the City of Pittsburgh says, “Recycling is mandatory for commercial and institutional establishments in the City of Pittsburgh (Code 619). The operator of every business establishment located within the City of Pittsburgh must establish a program to recycle high grade
132 “Garbage: To Burn or To Bury” The Why Files. 10 Mar 2011. http://whyfiles.org/2011/trash-does-burning-beat-burying/ 133 EPA. “Wastes - Municipal Solid Waste.” Environmental Protection Agency. 2012. http://www.epa.gov/osw/nonhaz/municipal/ Guide to Sustainable Business Growth - 55 -
office paper, plastic bottles, corrugated cardboard, aluminum cans and leaf waste, where applicable. Establishments are also encouraged to recycle old newspaper and mixed paper. Establishments must provide a collection system within their business or operation and can haul the recyclables directly to a processor or may contract a private hauler to collect the recyclables.134”
Properly Dispose Some waste, such as hazardous waste and electronic waste should be disposed of properly, as it can have detrimental impacts on the environment. Additionally, not properly disposing of this type of waste could result in a fine.
Hazardous Waste Hazardous waste must be disposed properly, whether via recycling or other means. According to the EPA, properly disposing of household hazardous wastes ensures that contamination through leaks and spills does not occur. If toxic wastes are disposed of with regular garbage, they could destroy landfill liners and compromise other disposal areas. A solid waste is hazardous waste if it has no commercial use or value and135: It is not specifically excluded from regulation It exhibits any of the characteristics of hazardous waste It is a listed hazardous waste It is a mixture of solid waste and hazardous waste It is used oil with more than 1000 ppm total halogens
In 2007, about 4.4% of all hazardous waste was recycled (recycled can mean reused).136 Some hazardous waste can be used for combustion for energy recovery, constituting disposal, and reclamation.137 Commercial hazardous waste that cannot be recycled must be taken to a commercial hazardous waste landfill. There are 18 commercial hazardous waste landfills in the United States, including one in Pittsburgh. This landfill accepts hazardous waste acids, liquids, sludge, dust, and items with corrosives, arsenic, barium, cadmium, chromium, lead, selenium, silver, and spent pickle liquor.138 The landfill provides a transportation service that will haul your hazardous waste to the landfill.
eWaste Electronic waste (or eWaste) is unwanted computers, monitors, televisions, audio equipment, printers, laptops, fax machines, telephones, and other electronic equipment.139 Usually these items become unwanted because they have reached their end of useful life and must be disposed or recycled rather than donated. Electronic waste often contains hazardous materials such as lead, mercury, and cadmium. You can request a pickup of eWaste in most cities. Some companies will even buy back electronics that are no longer functioning, as they can use the metals and scraps for resale or remanufacturing. Additionally, many major retailers like AT&T, Best Buy, Dell, LG, and Verizon have programs that allow you to recycle your eWaste.140
134 “Commercial Recycling.” Pittsburgh Public Works. 2011. http://www.city.pittsburgh.pa.us/pw/html/commercial_recycling.html 135 “Hazardous Waste Recycling Guidance Document.” State of Colorado. August 2010. http://www.cdphe.state.co.us/hm/hwrcycl.pdf 136 EPA. “Wastes – Hazardous Waste.” Environmental Protection Agency. 2012. http://www.epa.gov/osw/hazard/recycling/index.htm 137 EPA. “Safe Hazardous Waste Recycling.” Environmental Protection Agency. 2012. http://www.epa.gov/osw/wycd/manag-hw/e00-001d.pdf 138 “Commercial Hazardous Waste Landfills.” US Army Corps of Engineers. 2012. http://www.environmental.usace.army.mil/TSDF/rp0s02_3.htm 139 “Environmental Health and Safety: Waste Disposal.” University of Pittsburgh. 2012. http://www.ehs.pitt.edu/workplace/waste.html 140 EPA. “Wastes – eCycling.” Environmental Protection Agency. 2012. http://www.epa.gov/osw/conserve/materials/ecycling/donate.htm Guide to Sustainable Business Growth - 56 -
Compost According to Composting 101, “composting involves mixing yard and household organic waste in a pile or bin and providing conditions that encourage decomposition. The decomposition process is fueled by millions of microscopic organisms, such as bacteria and fungi, which take up residence inside your compost pile, continuously devouring and recycling it to produce a rich organic fertilizer and valuable soil amendment.141” You can set up a composting bin virtually anywhere. The decomposed product can be used in your company garden, your garden at home, or can be sold to companies that buy the material. Composting is one of the most environmentally beneficial activities of modern society as it conserves water, encourages reduction in meat consumption, and allows you to put produce scraps back into the environment.142 Composting reduces household waste by 30%.
Your compost bin should have a mixture of high carbon (brown waste) and high nitrogen (green waste) products. Examples of browns are wood, cardboard, fruit waste, leaves, shredded newspaper, peanut shells, and vegetable stalks. Examples of greens are coffee grounds, food waste, garden waste, grass clippings, manures, vegetable scraps, and weeds. Be strategic about filling your composting bin. A well-balanced "diet" will ensure that composting doesn't take too long and that you don't end up with a slimy, smelly pile. Also shredding and dicing make scraps smaller, which will help the resident bacteria do a better job converting the garbage into compost.
The city of Richmond, British Columbia provides a simple guide to successful composting: 1. Start with a good layer of coarse organic material, such as straw, leaves or pruning at the bottom to allow air to circulate. 2. Add a good layer of nitrogen-rich green material followed by one layer of carbon-rich brown material, until the bin is full. 3. Compost requires air. Turn and stir your compost weekly so the organisms get necessary oxygen. 4. Compost requires moisture. Water your compost bin frequently, to ensure it stays a moist as a wrung-out sponge. 5. Give it time - In 12-18 months, material at the bottom and middle of the bin should be composted. Use this throughout your garden. Use the non-composted material to start a new batch. Chipping or chopping the material can increase the speed of the process. Regular aeration is key to successful composting.143
Donate As mentioned earlier, before you dispose of something, decide whether it can be reused. Remember, though, that just because you cannot reuse it does not mean that someone else may not be able to. In addition to reduce and reuse ideas, National Geographic has provides ways you can donate goods to the community. Keep in mind that this type of philanthropic activity is a social boost on your Triple Bottom Line. 1. Donate unwanted office supplies to nonprofit organizations, charities, schools or used-materials exchanges.
141 “How to Compost.” Composting 101. 2006. http://www.composting101.com/how-it-works.html 142 “Tips on Composting.” World Awaits Global Learning & Environment. 2012. http://www.wagle.com/composters/composting-tips 143 “Composting at Home.” City of Richmond, British Columbia, Canada. 2012. http://www.richmond.ca/services/recycling/Composting.htm Guide to Sustainable Business Growth - 57 -
2. Give excess building materials and supplies from office renovations to local low-income housing developers. 3. Donate cafeteria leftovers for use as animal feed or compost instead of throwing them in the garbage.
One organization called Waste to Charity, accepts donations from businesses throughout the country. According to them, there are five specific reasons why donating is the right thing to do144: Increases your recovery on excess inventory Protects your market integrity from surplus dealers Increases your market exposure Increases available warehouse space Keeps waste out of landfills
WasteWise The EPA offers a free program called WasteWise that helps companies with waste reduction and recycling. WasteWise is a free, voluntary EPA program through which organizations eliminate costly municipal solid waste and select industrial wastes, benefiting their bottom line and the environment.145 WasteWise has special initiatives in paper, organic materials, packaging, electronics, and buildings. The EPA shares many success stories on its website, one of which comes from retailer Limited Brands, Inc.:
Success Story: Limited Brands Limited Brands, Inc., a WasteWise partner since 2004, is a large specialty retailer that sells women’s intimate apparel, beauty and personal care products, and accessories. In 2007, Limited Brands diverted from landfills more than 83 percent of all waste materials processed through its Columbus, OH, distribution centers, recycling 65 percent and reusing almost 19 percent. The company’s distribution centers have partnerships with nonprofits to donate their materials, with 10 tons donated in 2007. The company increased146 its use of recycled-content paper and Forest Stewardship Council-certified paper in its catalogs, marketing materials, and annual reports. In addition, Limited Brands reduced the number of printed copies of its annual reports by delivering the majority electronically. In 2007, the company’s recycling and reuse efforts prevented more than 15,200 tons from going to the landfills. This avoided more than $1.7 million in landfill disposal costs and increased overall revenue by $12.3 million from increased recycling efforts.146
144 “Waste to Charity Mission Statement.” Waste to Charity. 2006. http://www.wastetocharity.org/programs.htm 145 EPA. “Wastes – WasteWise Program.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/partnerships/wastewise/index.htm 146 EPA. “Wastes – Success Stories Retailers.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/partnerships/wastewise/success/retail.htm Guide to Sustainable Business Growth - 58 -
Triple Bottom Line Impacts of Step 6 Economic Reducing waste in product production and packaging, as well as in business operations, decreases costs by eliminating costs that are unnecessary in making a product or running a business. Donations or reuse of unwanted items also offer cost savings to new users and assist those with particularly tight budgets. Environmental Reducing, reusing, and recycling products keeps waste out of landfills; a land use that is not sustainable. Properly disposing of hazardous waste and eWaste prevents it from contaminating air and water supplies and harming humans and natural ecosystems that sustain life. Social Engaging employees in waste reduction and recycling programs not only improves the financial bottom line, but is a way of empowering employees and boosting morale. Promoting waste reduction practices may help your business gain a competitive advantage in the marketplace, but it also provides a way of educating the general public about how their choices can make an impact.
Guide to Sustainable Business Growth - 59 -
Step 7: Conserve Water
Author Fred Pearce, a renowned water scarcity researcher, has coined the world’s water scarcity crisis “the defining crisis of the twenty-first century.147” Managing water resources can produce immense cost savings and be key to a company’s long-term success. It requires an immense amount of energy and resources to move water (pumps, pipes, maintenance, etc.). Better managing this process can save a company time and money. The key to effective water management is the installation of high efficiency water fixtures. One study showed that when 100% of water fixtures are converted to high efficiency units, water usage decreased by 35%.148 Imagine what you could do with a 35% savings on your monthly water bill! The following section provides helpful pointers to successful water management at your business.
Excluding the manufacturing of products, a majority of daily water usage at a business comes from one room at the office: the bathroom. In fact, as the chart to the side indicates, nearly 75% of water use at home comes from the bathroom.149
Your business should consider three simple solutions to water conservation at the office: low-flow toilets, high efficiency faucets, and tracking water use. A fourth consideration, becoming LEED certified in water efficiency, is discussed in the Accreditations & Certifications section.
The Low-Flow Toilet The most widely used low-flow toilet company in the country is Toto. Low-flow toilets use technology that allows for a 20% decrease in water usage per flush. Water savings for a 1.6 gallon-per-flush toilet average over 1,800 gallons per year.150 The average price for a Toto low-flow toilet is $600. Toto also offers a line of 0.5 gallon-per-flush low-flow urinals. In Hersey, Pennsylvania, an average commercial facility uses about 29,000 gallons of water per month, which results in a $171 water bill (about $1 per 161 gallons).151 Installing five low-flow toilets would save this property 9,000 gallons or $55.90 per month. Therefore, this investment would take only a few years for a payback to kick in.
147 Pearce, Fred. “When the Rivers Run Dry: The Defining Crisis of the Twenty-First Century.” Beacon Press, 2006. 148 American Water Works Association. “Water Use Statistics.” DrinkTap.org. 2012. http://www.drinktap.org/consumerdnn/Home/WaterInformation/Conservation/WaterUseStatistics/tabid/85/Default.aspx 149 “Conserving Water: Shoreland Best Management Practices.” University of Minnesota Extension. 2008. http://www.extension.umn.edu/distribution/naturalresources/components/DD6946r.html 150 “Efficiency without Sacrificing Performance.” Toto. 2011. http://www.totousa.com/Green/Products/HighEfficiencyToilets.aspx 151 “Pennsylvania American Water Proposes $6 Increase in Average Monthly Water Bill.” PR Newswire. 27 Apr 2007. http://www.prnewswire.com/news- releases/pennsylvania-american-water-proposes-6-increase-in-average-monthly-water-bill-58836112.html Guide to Sustainable Business Growth - 60 -
The Sensor Faucet When it comes to faucets, the key is hands-free. While various high-efficiency, low-flow faucets exist, the best in the industry is the Sensor-powered faucet. Sensor-powered faucets save water in two ways: they control usage based on hand motion and they are less apt to leak. According to a Michigan State study, a leak of one drip per second can cost $1 per month.152 Additionally, a sensor faucet significantly reduces the spread of germs in the bathroom, which can save you countless employee sick days. One of the leaders in the sensor faucet industry is Sloan, which has been offering water-efficient products since 1906.153 On Sloan’s website, you can calculate your business’s potential savings.
The Water Footprint Calculator Tracking and understanding your business’s water usage is crucial to successful water conservation. WaterFootprint.org lists several reasons why reducing water usage can be beneficial for your company154:
Physical risk: companies may increasingly face freshwater shortage in their supply chain or own operations. Reputational risk: the corporate image of a company will be damaged when questions arise among the public about whether the company properly addresses issues of sustainable and equitable water use. Regulatory risk: governmental interference and regulation in the area of water use will undoubtedly increase. Financial risk: above risks may translate into increased costs and/or reduced revenues.
The Water Footprint is one of the most widely accepted means of tracking water usage. While a monthly water bill may provide some helpful information about water usage, the Water Footprint delves deep into your water usage, from manufacturing to daily office use. The Water Footprint Assessment Manual is available for free at www.waterfootprint.org. In addition to measuring your Water Footprint, you can have your local water agency conduct a water audit at your facility to identify conservation opportunities.
Triple Bottom Line Impacts of Step 7 Economic Installing high efficiency water fixtures decreases monthly water bills by an average of 35%. Environmental Conserving water helps to stabilize the hydrologic cycle. It also reduces the energy required to process and deliver the water, which aides in reducing pollution and conserving fuel resources. Social Addressing water management and conservation issues helps companies avoid controversy and negative publicity and creates a more suitable work environment.
152 “Energy Tips – Controlling Costs for Home Hot Water Production and Use.” Michigan State University Extension. 24 Jun 2003. http://www.msue.msu.edu/objects/content_revision/download.cfm/revision_id.510906/workspace_id.-4/hotwatercost_control.html/ 153 “Water Efficiency.” Sloan. 2012. http://www.sloanvalve.com/Water_Efficiency.aspx 154 “Corporate Water Footprints.” WaterFootpring.org. 2012. http://www.waterfootprint.org/?page=files/CorporateWaterFootprints Guide to Sustainable Business Growth - 61 -
Step 8: Prevent Pollution
Any contaminant that enters the environment is known as pollution. As a small business owner, you are responsible for taking the necessary steps to not only comply with pollution regulations but prevent pollution altogether. Remember, reducing pollution is the law. In 1990, Congress passed the Pollution Prevention Act, stating that: “ Pollution should be prevented or reduced at the source whenever feasible; pollution that cannot be prevented should be recycled in an environmentally safe manner, whenever feasible; pollution that cannot be prevented or recycled should be treated in an environmentally safe manner whenever feasible; and disposal or other release into the environment should be employed only as a last resort and should be conducted in an environmentally safe manner.155” Pollution is split into three different categories: land, air, and water.
Types of Pollution Land pollution sources: chemical and nuclear plants, industrial factories, oil refineries, human sewage, mining, littering, landfill waste, and construction debris. How to prevent land pollution156: Recycle! Reuse any items that you can Buy biodegradable products Store all liquid chemicals and waste in spill-proof containers Eat organic foods that are grown without pesticides Don’t use pesticides Use a drip tray to collect engine oil Buy products that have little packaging Don’t dump motor oil on the ground
Air pollution sources: vehicle emissions, tobacco smoke, coal combustion, power plants, manufacturing facilities, and aerosol sprays. How to prevent air pollution: Carpool or join a ride share with friends and coworkers Walk or bike more and drive less Don’t smoke Keep your car maintenance up-to-date Don’t buy products that come in aerosol spray cans Avoid using lighter fluid when barbecuing outside Always replace your car’s air filter when necessary Don’t use harsh chemical cleaners that can emit fumes Inspect your gas appliances and heaters regularly
Water pollution sources: factories, refineries, waste treatment facilities, mining, pesticides, fertilizers, sewage, oil spills, and household chemicals. How to prevent water pollution: Dispose of chemicals properly
155 EPA. “Pollution Prevention Act of 1990.” Environmental Protection Agency. 2012. http://www.epa.gov/p2/pubs/p2policy/act1990.htm 156 “Pollution.” GreenStudentU. 2012. http://www.greenstudentu.com/encyclopedia/pollution Guide to Sustainable Business Growth - 62 -
Don’t throw trash, chemicals or solvents into sewer drains Inspect your septic system every 3-5 years Avoid using pesticides and fertilizers that can run off into water systems Use non-toxic cleaning materials Clean up oil and other liquid spills with kitty litter and sweep them up Don’t wash paint brushes in the sink
The most dangerous pollutants in the world are greenhouse gases. Greenhouse gases trap heat in the atmosphere, which consequently warms the planet. The four principal greenhouse gases are carbon dioxide, methane, nitrous oxide, and fluorinated gases. Of the four, carbon is most prominent in air pollution. Carbon emissions are the byproduct of burning fossil fuels. According to The Carbon Account, “Every time we burn fossil fuels such as gas, coal or oil, carbon dioxide is released into the atmosphere. In a natural carbon cycle, carbon dioxide is re-absorbed by plants and trees. However, we are burning fuels where the carbon dioxide has been trapped under the earth's surface for millions of years, and we're doing it so quickly that plants and trees that are alive now have no chance of soaking it up (and it doesn't help that we're cutting down rainforests as well). The effect of all this extra carbon dioxide in the atmosphere is that the overall temperature of the planet is increasing (global warming). Whilst the average global temperature is increasing, on a day-to-day level the climate is changing in unpredictable ways (from floods and hurricanes to heat waves and droughts). To try and reduce the risk of even more extreme weather, we need to reduce how much fossil fuel we are burning.157”
In order to reduce greenhouse gas emissions, we must first understand how much we create and where the source is. There are two great tools available that allow you to do just that: the ecological footprint and the life cycle assessment.
Ecological Footprint There are dozens of footprint calculators available for determining your company’s impact or your individual impact on the environment. These calculators look at consumption, purchasing habits, and travel, among other things, to determine where you or your business is most in need of lifestyle changes. Some of the most credible ecological footprints are the World Wildlife Fund (www.wwf.org) and the Global Footprint Network (www.footprintnetwork.org). You can conduct your own footprint calculation online are have a professional conduct a more accurate calculation on-site.
Life-Cycle Assessment According to the EPA, the Life-Cycle Assessment (LCA) - sometimes known as a Life-Cycle Analysis - is a technique used to assess the environmental aspects and potential impacts associated with a product, process, or service, by158: compiling an inventory of relevant energy and material inputs and environmental releases; evaluating the potential environmental impacts associated with identified inputs and releases interpreting the results to help you make a more informed decision
An LCA is generally conducted by a professional as it takes an in-depth and unbiased look at your company’s operations. However, with proper training and the right software, you can conduct your own LCA. The three
157 “What Are Carbon Emissions?” The Carbon Account. 2012. http://thecarbonaccount.com/carbonexplained/ 158 EPA. “Life-Cycle Assessment (LCA).” Environmental Protection Agency. 2012. http://www.epa.gov/nrmrl/lcaccess/ Guide to Sustainable Business Growth - 63 -
principal tools for conducting an LCA are GaBi, SimaPro, and umberto. LCA software allows you to easily go through the four steps of the LCA159: 1. Definition of goal, scope, and bounds What are you setting out to accomplish? Do you want to measure procurement, transportation, manufacturing, sale, and end-of-life or just a few of the stages of the useful life? What is your time scale for measurement? 2. Inventory analysis Make a process tree or flow-chart illustrating the events in your product’s life-cycle. Determine all inputs and outputs of each event in the life of your product. Establish material and energy balances for each stage. 3. Impact assessment Assess the severity of environmental impact in each stage of the life-cycle of your product. 4. Improvement assessment Identify areas for improvement within the life-cycle. Make sure to refer back to your goal definition. What did you set out to accomplish? Determine which resources and risks are involved with change that is needed to make a significant positive impact.
Success Story: Toyota In 2002, Toyota carried out an LCA on new models and models that underwent complete redesign. In the case of the ist, fuel efficiency was improved by adopting VVT-i and a high-efficiency transmission,160 reducing air resistance, and designing a more energy-efficient air conditioner. Cleaner exhaust emissions were achieved by effectively controlling a catalytic converter that has superior warm-up characteristics and durability, an air-fuel ratio compensation system, and a fuel evaporation gas suppression system, etc. As a result, the vehicle produces 8% lower CO2 emissions, 63% lower NOx emissions, and 64% lower NMHC emissions than other conventional 160 vehicles in the same class.
159 EPA. “Life Cycle Assessment: Principles and Practice.” Scientific Applications International Corporation (SAIC). May 2006. http://www.epa.gov/nrmrl/lcaccess/pdfs/chapter1_frontmatter_lca101.pdf 160 “Development and Design.” Toyota Environmental & Social Report. 2003. http://www.toyota.co.jp/en/environmental_rep/03/kaihatu08.html Guide to Sustainable Business Growth - 64 -
Pollution Control Grants and Loans Pollution prevention is supported by the federal, state, and some local governments via grants and loans. Government grants are available to small businesses aiming to commit to significant reductions in pollution.
Federal Both the Environmental Protection Agency (EPA) and Small Business Administration (SBA) offer grants and loans to companies looking to prevent pollution. The EPA offers three grants: the Pollution Prevention (P2) grant, the Pollution Prevention Information Network (PPIN) grant, and the Source Reduction Assistance (SRA) grant. The SBA offers a Pollution Control loan.
In 2011, the EPA awarded approximately $4.2 million in P2 grants. According to the EPA, “The majority of P2 Grants fund State-based projects for technical assistance, training, outreach, education, regulatory integration, data collection, research, demonstration projects, and recognition programs.161” P2 grants must provide at least a 50% match of the total allowable project cost by the time of the award to be considered eligible to receive funding. P2 project proposals must be geared toward greenhouse gas reduction, toxic and hazardous materials reduction, resource conservation, promoting business efficiency, or promoting P2 integration.162
The PPIN grant was initiated in 1997 to provide P2 information that is easily accessible and to create a national network of regional centers to promote P2 practices. According to the EPA, “The grant program funds regional centers that serve both unique regional pollution prevention information needs and national audience needs for quality information on source reduction and related P2 practices.” Proposals for this grant should describe activities and projects that cater to regional or national P2 needs, strategic P2 priorities, and promote national network communication.
The SRA grant program is awarded in support of environmental projects that reduce or eliminate pollution at the source. In 2011 the EPA distributed over $1 million for the grant.
The SBA offers a special purpose loan called a Pollution Control loan. These loans offered t are specifically designated to “aid businesses that are reducing their environmental impact. The program provides financing to eligible small businesses for the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution.163” The loan may be used on fixed assets only.
State The Department of Environmental Protection for the state of Pennsylvania has established the Small Business Assistance Program, offering grants and loans to small businesses desiring to reduce or eliminate pollution.
To be eligible for the Small Business Pollution Prevention Program loan in the state of Pennsylvania, you must be a “small business enterprise that is a for-profit corporation, limited liability company, partnership, proprietor ship or other legal business entity located within the Common wealth of Pennsylvania and having 100 or fewer full-time employees worldwide at the time of submission of the application.” In general, companies wishing to apply for financial assistance must plan to use the money for machinery and equipment that will significantly
161 EPA. “Pollution Prevention Grants Program.” Environmental Protection Agency. 2012. http://www.epa.gov/p2/pubs/grants/index.htm#p2grant 162 EPA. “Pollution Prevention Grants Announcement.” Environmental Protection Agency. 2011. http://www.epa.gov/p2/pubs/grants/ppis/2011rfpp2grant.pdf 163 “Pollution Control.” SBA. 2012. http://www.sba.gov/content/pollution-control Guide to Sustainable Business Growth - 65 -
reduce or completely eliminate pollution. The state will fund 75% of a total eligible project whose cost does not exceed $100,000. The loan has a 10-year term with a 2% interest rate.164
You may also apply for the Small Business Advantage Grant Program, which provides 50% matching grants, up to a maximum of $7,500, to help enable a Pennsylvania small business “to adopt or acquire energy efficient or pollution prevent equipment or processes.165”
Triple Bottom Line Impacts of Step 8 Economic Federal and state grants are available to small businesses aiming to reduce pollution; and proper disposal of harmful waste reduces future liabilities for businesses and taxpayers in general. Environmental Keeping air, land, and water pollution to a minimum helps maintain healthy biodiversity that sustains all life. Social Decreasing pollution reduces negative health effects - such as asthma and cancer - that are associated with pollutants which disproportionately impact children and the elderly.
164 “Pennsylvania Pollution Prevention Assistance Program (PPAA). Commonwealth of Pennsylvania. 2012.http://www.newpa.com/find-and-apply-for- funding/funding-and-program-finder/pennsylvania-pollution-prevention-assistance-program-ppaa 165 “Small Business Assistance Program.” Pennsylvania Department of Environmental Protection. 2012. http://www.dep.state.pa.us/dep/deputate/airwaste/aq/small_business/small_business.htm Guide to Sustainable Business Growth - 66 -
Step 9: Create a Green Marketing Strategy
At the turn of the 21st century, a poll conducted by researcher Le Phillips found that 87% of consumers are concerned about the condition of the natural environment.166 This means these customers want to hear about opportunities to buy green and prefer to buy from socially and environmentally responsible businesses. What is green marketing? Dr. Michael Polonsky, a professor at the University of Newcastle, defines it as “all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs with minimal detrimental impact on the natural environment.167” Organizations generally market their green products for four reasons: To make people aware of the product To generate publicity for the company To demonstrate that they are being socially responsible To create a competitive advantage
The Federal Trade Commission (FTC) states several rules for green marketing.168 Green marketing claims must: Clearly state environmental benefits Explain environmental characteristics Explain how benefits are achieved Ensure comparative differences are justified Ensure negative factors are taken into consideration Only use meaningful terms and pictures.
Strategy Marketing experts Jill Meredith Ginsberg and Paul N. Bloom of the University of North Carolina at Chapel Hill devised four distinct green marketing strategies. Each uniquely defines how a company should market its “greenness” to its customers.169
Lean Green Lean greens are those companies who try to be good corporate citizens but do not focus on publicizing or marketing their green initiatives. They are focused instead on reducing costs and improving efficiencies, which often in turn has a positive impact on the environment. Coca-Cola is often used as an example of a lean green. While the company cares about the environment, Coke rarely markets themselves as a “green” company, as many of their initiatives are based around cost-cutting and reduction.
Defensive Green Defensive greens are generally reactive companies who use green marketing in response to a crisis or a competitor’s actions. Their emphasis is on enhancing their brand image and mitigating damage.
166 Phillips LE. “Green attitudes.” American Demographics, 1999. v. 21: p. 46–47. 167 Polonsky, Michael Jay. "A Stakeholder Theory Approach to Designing Environmental Marketing Strategy." Unpublished Working Paper. 1994. 168 Polonsky, Michael Jay. "An Introduction to Green Marketing." Electronic Green Journal. 1994. 169 Ginsberg, Jill Meredith and Paul N. Bloom. “Choosing the Right Green Marketing Strategy.” Harvard Business Publishing, 2004. v. 46, No. 1, p. 81-83. Guide to Sustainable Business Growth - 67 -
Shaded Green Shaded Greens see green as an opportunity to develop innovative needs-satisfying products and technologies that result in a competitive advantage. These types of companies promote direct, tangible benefits and see environmental benefits as a secondary factor. An example of this is the Toyota Prius, which when first released, was promoted as a fuel-efficient vehicle. To Toyota, the air pollution reduction factor was a nice bonus.
Extreme Green To these companies, environmental issues are fully integrated into the business and product life-cycle process. In general, greenness has been a major driving force behind these companies since day one. Some practices of an extreme green are life-cycle pricing approaches and total-quality environmental management/manufacturing. Examples of these companies are The Body Shop and Patagonia.
Advertising It is important to know whether or not claims you place on your products, packaging, and services are legitimate and can be backed up with sources. The Federal Trade Commission (FTC) and EPA have developed guidelines for advertisers to ensure that their environmental marketing claims do not mislead consumers170: 1. When labeling a product or package as “recycled,” you must indicate what percentage of the material is recycled. It is also good to indicate the source of the recycled material. “Post-consumer” material comes from previously used business or consumer products, such as newspapers, shipping cartons, plastic bottles, glass containers, and aluminum cans. “Pre-consumer” material is basically manufacturing waste. 2. Some products and packages state that they use less material than former or competing products or packaging. To be meaningful, such claims should say exactly what’s been reduced, by how much, and compared to what. For instance, a claim like "25% less waste than our previous package" gives you more information than "25% less waste." 3. Certain products may claim to be “non-toxic,” “essentially non-toxic,” or “practically non-toxic.” In order to make these claims, the manufacturer must have reason to believe that the products will not pose any significant risk to people or the environment. 4. Be careful about making vague or general claims. Claiming that a product or service is “environmentally friendly,” “environmentally safe,” “environmentally preferable,” or “eco-sage” is unhelpful to the consumer. It is also unhelpful to place environmental seals that are not certified on your product. For one thing, all products, packaging, and services have some environmental impact. Also, these phrases do not provide the specific information the consumer needs to compare products, packaging, and services on their environmental merits. 5. Recyclable claims (not to be confused with recycled) on labels and advertisements mean that the manufacturer or seller of the products has proof that the products can be collected and used again or made into useful products. Do not place a recyclable claim on your products or advertisements until you are certain that the product or packaging is indeed recyclable.
170 “Sorting Out ‘Green’ Advertising Claims.” Federal Trade Commission. April 1999. http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen02.shtm Guide to Sustainable Business Growth - 68 -
6. Some of your products may be “degradable.” “Biodegradable” materials, like food and plants, break down and decompose into elements found in nature when they are exposed to air, moisture, and bacteria. “Photodegradable” materials, such as plastics, disintegrate into smaller pieces when exposed to enough sunlight. Either way, as the EPA says, degradation of any material occurs very slowly in landfills, where most garbage is taken. This is because the law requires that modern landfills be designed to keep sunlight, air and moisture out of the landfill. This helps prevent pollutants from the garbage from entering the air and drinking water, but also slows decomposition. Even materials like paper and food may take decades to decompose in a landfill. 7. Be cautious about making claims that your products are “CFC-free” or “ozone-friendly.” Not all ozone is alike. The ozone layer in the upper atmosphere is necessary to prevent the sun’s harmful radiation from reaching the Earth. However, when ozone develops at ground level, it forms smog, which can cause people to have breathing problems like asthma. If you claim that your products are “ozone friendly” or “ozone safe,” your products must do zero harm on the entire atmosphere - both the upper ozone layer and the air at the ground level. Chlorofluorocarbons (CFCS) were banned in 1978 for use as propellants in nearly all consumer aerosol products. They are currently being gradually phased out of all products and manufacturing processes. If a product does not contain CFCs, it does not necessarily mean it is safe for the entire atmosphere. Volatile organic compounds (VOCs) also contribute to the formation of ground- level ozone (smog). Alcohols, butane, propane, and isobutene are the most common VOCs. Most cars and factories emit VOCs, as do many household cleaning products, floor polishes, charcoal lighter fluid, windshield wiper fluid, and hair products. 8. Manufacturers use the SPI symbol, a code developed by the Society of the Plastics Industry, to indicate the type of plastic from which a particular product is made. SPI code numbers range from 1 to 7. Bottles or jugs labeled with numbers 1 and 2, such as soda bottles, detergent, shampoo, and milk jugs, are the most likely to be accepted for recycling. It should be noted that not all communities collect and recycle containers with the same codes, so it’s a good idea to check with your recycling and solid waste officials for information on the codes that are accepted for recycling in your area.
Social Media The newest medium for marketing your green initiatives is social media. Sites like Facebook, Twitter, Youtube, and Linkedin offer the perfect opportunity to deliver your message to the masses. Green Marketing TV offers some tips for using social media for green marketing171: Make it easy for your audience to join the conversation. Do not intimidate your audience. Believe it or not, many people surf the Internet to learn. You can be the educator for your field. Avoid using jargon that your audience may not understand. Be approachable and accessible. Encourage your employees to join in on the conversation but be sure to establish a set of guidelines for Internet usage among employees. Write shareable content. Share information about your company and industry and be sure that each post you make is adding value to the wealth of resources pertaining to your industry. These types of posts get passed around the Internet and can help generate business for you.
171 Grady, Erin. “Social Media Marketing for Green Businesses.” GreenMarketingTV. 23 Nov 2010. http://www.greenmarketing.tv/2010/11/23/social-media- marketing-for-green-businesses/ Guide to Sustainable Business Growth - 69 -
Write consistently. Do not make an account that you do not plan to update frequently. Customers and business acquaintances alike will be eager to hear what your company is up to, so be sure to keep them updated as much as possible. Participate in other blogs and conversations. It is called “social networking” for a reason. By posting on other company’s sites, you can become connected to that company and their network. Demonstrate your expertise in your field. This will help your company develop credibility in your industry. Keep your brand consistent. Ensure that the same company logo is used on all websites. Monitor misuse of your brand image.
Community Events One way to positively impact the social and environmental values on your Triple Bottom Line is to either host events geared toward the environment or to sponsor existing environmental events. This is a great way to get your name out and help the community green itself. Examples of these events include green festivals, river cleanups, community cleanups, and tree plantings. A popular day to get active in the community is Earth Day. This holiday occurs every April 22nd and intends to inspire awareness amongst citizens and create appreciation of the natural environment.
Triple Bottom Line Impacts of Step 9 Economic Producing green products and following green business practices has the potential to generate additional business opportunities and profits by providing a competitive advantage in the marketplace Environmental As green marketing increases the demand for greener products and services – as it becomes the norm rather than the exception – environmental impacts and carbon footprints may be reduced and environmental conditions improved. Social Studies show that customers want to purchase environmentally friendly products. Using social media websites such as Facebook, LinkedIn, and Twitter has become a popular way for customers to spread the word about their products and educate consumers. Being active with environmental events in the community not only is another way to market your product or services, but helps to create community awareness and build a broader base of greener consumers.
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Step 10: Join Industry Partnership and Stewardship Programs
It is important to note that, in some cases, both individuals and businesses can be certified or accredited. Whether an individual or business is known as “certified” or “accredited” differs by certification entity.
Suggested Certifications for Small Businesses and Their Products
The United States Small Business Administration lists several certifications that can help you create a competitive advantage by labeling your product as environmentally sound172:
Domestic Certification Green Seal sets product standards and awards its label to a wide variety of products Agriculture, Manufacturing, and Electricity: Certified by Scientific Certification Systems Chlorine-Free Products: Certified by the Chlorine Free Products Association Energy Efficient Products: Certified by the U.S. Government's ENERGY STAR Program Organic Produce: Certified by the USDA National Organic Program Renewable Energy: Certified by the Green-e Certification Program Wood Products: Criteria set by Forest Stewardship Council; Certified by Scientific Certification Systems and Smartwood
International Certification The European Union Eco-Label Program is a voluntary scheme designed to encourage businesses to market products and services that are kinder to the environment and for European consumers Canada's EcoLogo Label program certifies products from the United States and Canada in over 120 categories Germany's Blue Angel program provides ecolabeling for a wide variety products Scandinavia's Nordic Swan allows companies to apply for an ecolabel in over 66 product categories Japan's EcoMark Program provides product certification and ecolabeling for several product types Taiwan's Green Mark and Energy Label programs provide certification and ecolabeling for green and energy efficient products
LEED Certification of Buildings As previously mentioned, one of the most common certifications in the United States is LEED. LEED, or Leadership in Energy and Environmental Design “provides independent, third-party verification that a building, home or community was designed and built using strategies aimed at achieving high performance in key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality173.” LEED was developed in 2000 by the United States Green Building Council (USGBC) and is monitored and maintained today by LEED steering committees. In addition to LEED certification for buildings, an individual may take an exam to become an accredited “USGBC LEED Green Associate.”
172 “Green Certification and Ecolabeling.” SBA. 2012. http://www.sba.gov/content/green-certification-and-ecolabeling 173 “What LEED Is.” US Green Building Council. 2011. http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988 Guide to Sustainable Business Growth - 71 -
Benefits of LEED Certification
Lower operating costs and increase asset value Reduce waste sent to landfills Conserve energy and water Be healthier and safer for occupants Reduce harmful greenhouse gas emissions Qualify for tax rebates, zoning allowances and other incentives in hundreds of cities
The LEED rating system is based on a 100 point scale. LEED certified is the minimum award for recognized green buildings. LEED silver requires a minimum of 60 points; LEED gold requires 75 points; and LEED platinum - the highest award offered - requires a minimum of 90 points.174 As an added bonus, LEED Platinum-rated buildings have all certification fees refunded. You can register a LEED project and access a fee schedule on the Green Building Certification Institute website at www.gbci.org.175
Partnership Programs In addition to acquiring certifications, you can join numerous partnership programs that can help you deliver measurable environmental and financial results.176 There are more than 13,000 companies and other organizations participating in EPA Partnership Programs. A partial list of partnership programs is available on the following page. A full list of descriptions of the following EPA-sponsored partnership programs is available at www.epa.gov/partners.
Triple Bottom Line Impacts of Step 10 Economic Independent certifications and labels help to level the playing field in the market by adding economic value to products and buildings. Environmental Partnerships allow your company to support outside resources that not only enhance your environmentally friendly practices, but that are working to advance sustainability practices that positively impact the environmental as a whole. Social Customers and investors believe in certifications and use them to make informed buying and investing decisions.
174 “LEED Platinum, Gold or Certified.” GreenHome Improvement. 2011. http://www.greenhomeimprovement.com/certifications/leed 175 “About GBCI.” GBCI. 2012. http://www.gbci.org/org-nav/about-gbci/about-gbci.aspx 176 EPA. “Partnerships.” Environmental Protection Agency. 2012. http://www.epa.gov/p2/pubs/partnerships.htm
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Partial List of EPA Partnership Programs Agriculture Pollution Prevention AgStar Program 2010/15 PFOA Stewardship Program Pesticide Environmental Stewardship Program Design for the Environment Air Quality Federal Electronics Challenge Clean Diesel Campaign Partnership for Environmental Priorities Combined Heat and Power Partnership Technology Community-Based Childhood Asthma Programs Environmental Technology Verification Green Racing Initiative Transportation High GWP Partnership Programs Clean Diesel Campaign Indoor Air Quality Tools for Schools The Green Suppliers Network Radon Risk Reduction SmartWay Transport Partnership Energy Efficiency and Global Climate Change Waste Management Coalbed Methane Outreach Program Plug-In to eCycling Coal Combustion Products Partnership Responsible Appliance Disposal Partnership Combined Heat and Power Partnership Schools Chemical Cleanout Program Energy Star WasteWise Burn Wise Water GreenChill Decentralized Wastewater Treatment Systems Green Power Partnership WaterSense Green Racing Initiative Greenscapes High GWP Partnership Programs
Labs 21 Landfill Methane Outreach Program Mobile Air Conditioning Climate Protection Natural Gas STAR Program SunWise School Program Voluntary Aluminum Industrial Partnership
Western Pennsylvania Partnership Opportunities Allegheny Conference: http://www.alleghenyconference.org/ Class G: http://www.class-g.org Conservation Consultants, Inc.: http://www.ccicenter.org/ Duquesne University MBA Sustainability: http://mba.sustainability.duq.edu/ Evolve: http://www.evolveea.com/ Green Building Alliance: http://www.gbapgh.org/ PGH Green Innovators: http://www.pghgreeninnovators.org/ Phipps Conservatory: http://phipps.conservatory.org/ Pittsburgh Center for Creative Reuse: http://pccr.org/ Sustainable Pittsburgh: http://www.sustainablepittsburgh.org/ Zero Waste Pittsburgh: http://www.zerowastepgh.org/comm-index.html
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Additional Web Resources Small Businesses SBA Express Loan Program: http://www.sba.gov/content/express-programs SBA Loan Application Checklist: http://www.sba.gov/content/sba-loan-application-checklist Small Business Advantage Grant Program: http://www.depweb.state.pa.us/portal/server.pt/community/dep_home/5968 Small Wind Economic Model: http://www.windpoweringamerica.gov/economics.asp U.S. Small Wind Turbine Industry Roadmap: http://www.awea.org/learnabout/smallwind/upload/US_Turbine_RoadMap.pdf
Pennsylvania Resources PA Preferred Product Registration: http://www.papreferred.com/members/preregister Pennsylvania Fresh Food Financing Initiative: http://www.trfund.com/resource/downloads/Fresh_Food_Financing_Initiative_Comprehensive.pdf Pennsylvania Wind Farm Permitting and Regulation: http://www.dcnr.state.pa.us/info/wind/resource1.aspx eWaste Sites in Pennsylvania: http://www.useitagainpa.org/How/pennsylvania.html Commercial Hazardous Waste Landfill of Pittsburgh: http://www.maxenvironmental.com/ Pennsylvania Bureau of Waste Management: http://www.depweb.state.pa.us/portal/server.pt/community/waste_management/14069
Other Resources Database of State Incentives for Renewables and Efficiency: http://www.dsireusa.org/ EPA Laws and Regulations: http://www.epa.gov/lawsregs/ Federal Green Construction Guide: http://www.wbdg.org/ccb/browse_cat.php?c=250 EPA Greener Products Portal: http://www.epa.gov/greenerproducts/ LEED: http://www.usgbc.org/DisplayPage.aspx?CategoryID=19 EPA Environmentally Preferable Purchasing Database: http://www.epa.gov/epp/ Organic Certification: http://www.ams.usda.gov/AMSv1.0/nop The Energy Story: http://energyquest.ca.gov/index.html Energy Star: http://www.energystar.gov/ Energy Star purchasing guide and savings calculator: http://www.energystar.gov/index.cfm?c=bulk_purchasing.bus_purchasing Energy Design Guide: http://www.energystar.gov/index.cfm?c=cbd_guidebook.cbd_guidebook_energy_design_1 U.S. Department of Energy: http://energy.gov/ Renewable Energy Certificates (RECs): http://www.epa.gov/greenpower/documents/gpp_basics-recs.pdf Wind Energy Standards: http://www.awea.org/learnabout/smallwind/upload/AWEA_Small_Turbine_Standard_Adopted_Dec09.pdf Water Footprint: http://www.waterfootprint.org/?page=files/home WaterSense list of products: http://www.epa.gov/watersense/products/index.html Pollution Prevention Assistance Application: http://www.newpa.com/sites/default/files/uploads/Pollution-Prevention-Assistance-Account-09.pdf World Wildlife Fund Ecological Footprint: http://footprint.wwf.org.uk/ Global Footprint Network: http://www.footprintnetwork.org/en/index.php/GFN/ FTC Guide for Environmental Marketing Claims: http://www.ftc.gov/bcp/grnrule/guides980427.htm The Marketing Book: http://htbiblio.yolasite.com/resources/Marketing%20Book.pdf#page=765 EPA Partnership Programs: http://www.epa.gov/partners/
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EPA. “Wastes: What You Can Do.” Environmental Protection Agency. 2012. http://www.epa.gov/epawaste/conserve/rrr/imr/cdm/whatyoucan.htm Ginsberg, Jill Meredith and Paul N. Bloom. “Choosing the Right Green Marketing Strategy.” Harvard Business Publishing, 2004. v. 46, No. 1, p. 81-83. Grady, Erin. “Social Media Marketing for Green Businesses.” GreenMarketingTV. 23 Nov 2010. http://www.greenmarketing.tv/2010/11/23/social-media- marketing-for-green-businesses/ Grayson, William. “How to Incentivize Employees to Go Green at the Office.” The Daily Energy Report. 2010. http://www.dailyenergyreport.com/2011/02/how-to-incentivize-employees-to-go-green-at-the-office/ Hitchcock, Darcy and Marsha Willard. “The Step-By-Step Guide to Sustainability Planning.” 2008. Earthscan: London, p. 135-139. http://www.ams.usda.gov/AMSv1.0/nop Johnston, David and Scott Gibson. “Green from the Ground Up.” Taunton Publishing: New York, 2008. Langdon, Davis. “The Cost of Green Revisited.” Research Publication. 2007. Michael W. Toffel and Katharine Lee. “Sustainability at Millipore.” 10 Dec 2009. Harvard Business Publishing. p. 4-5. Modney, Mary. “Sustainability: What’s in It for Me?” The Green Economy Post. 2010. http://greeneconomypost.com/sustainability-creating-employee- engagement-incentives-11178.htm Mohin, Tim. “How Sustainability Is Driving Employee Engagement and the Bottom Line.” AMD. 2011. http://blogs.amd.com/corporate/2011/09/30/how- sustainability-is-driving-employee-engagement-and-the-bottom-line/ O’Connor, Mary Catherine. “The Rx for Greening a Healthcare Facility.” GreenBiz.com. 1 Apr 2009. http://www.greenbiz.com/news/2009/04/01/rx- greening-healthcare-facility Olson, Karen. “The Greening of Health Care.” Almanac of Policy Issues. November/December 2002. http://www.policyalmanac.org/publications/utne/greening_of_health_care.shtml Patel, Mukund R. “Wind and Solar Power Systems: Design Analysis and Operation.” Taylor and Francis Group. Boca Raton , FL: 2006. Pearce, Fred. “When the Rivers Run Dry: The Defining Crisis of the Twenty-First Century.” Beacon Press, 2006. Phillips LE. “Green attitudes.” American Demographics, 1999. v. 21: p. 46–47. Polonsky, Michael Jay. "A Stakeholder Theory Approach to Designing Environmental Marketing Polonsky, Michael Jay. "An Introduction to Green Marketing." Electronic Green Journal. 1994. Qualk, James D. “Greening the Healthcare Industry.” Environmental Design + Construction. 1 Aug 2008. http://www.edcmag.com/articles/greening-the- healthcare-industry Rich, Sarah. “Green Building 101: Water Efficiency.” Inhabitat. 12 Jul 2006.http://inhabitat.com/green-building-101-water-efficiency/ Salter, Ann. “Waste Reduction in the Workplace.” National Geographic. 2012. http://greenliving.nationalgeographic.com/waste-reduction-workplace- 2213.html Sanyal, Subir K.; Morrow, James W.; Butler, Steven J.; Robertson-Tait, Ann. "Cost of Electricity from Enhanced Geothermal Systems." Thirty-Second Workshop on Geothermal Reservoir Engineering, Stanford, California. 22-24 Jan 2007 Schibsted, Evantheia. “Green Products Guide: Information Technology and Related Equipment.” Edutopia. 28 Oct 2009. http://www.edutopia.org/green- schools-environment-products-technology Strategy." Unpublished Working Paper. 1994. Sullivan, Katie. “Green Financial Products and Services.” TSYS. 2012. http://www.tsys.com/thoughtLeadership/ngenuityInAction/fall2008/fall08_green_financial_products.cfm Tellus Institute. “Greening Your Products: Good for the environment, good for your bottom line.” Environmental Protection Agency. 2002. http://www.epa.gov/epp/pubs/jwod_product.pdf US Code. “42 USC 7661B – Permit Applications.” Cornell University Law School. 2012. http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00007661---b000-.html US Code. “42 USC 7661C – Permit Requirements and Conditions.” Cornell University Law School. 2012. http://www.law.cornell.edu/uscode/html/uscode42/usc_sec_42_00007661---c000-.html
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Index advertising, 19, 46 life-cycle, 63, 78 biomass, 50, 76, 77 lighting, 36, 43, 80 carbon, 28, 39, 40, 45, 54, 57, 63 organic, 29, 39, 40, 57, 58, 62, 69 certification, 12, 18, 19, 21, 22, 30, 32, 34, 37, 38, packaging, 32, 33, 39, 75, 78 43, 71, 72, 76, 78 Pennsylvania, 19, 28, 32, 35, 46, 48, 50, 60, 65, 66, energy efficiency, 6, 8, 20, 21, 22, 23, 33, 34, 37, 42, 74, 76, 77, 78, 80 71 permit, 10, 79 Energy Star, 21, 23, 24, 37, 43, 44, 45, 73, 74, 75, 76, 77, 78 recycle, 6, 24, 25, 35, 53, 55, 62, 78 environmental management, 6, 12 recycling, 5, 24, 35, 37, 53, 54, 55, 56, 75, 76, 77, 78 food, 5, 9, 24, 29, 31, 32, 33, 36, 39, 50, 54, 57, 69, 77 regulation, 9, 56, 61, 74 footprint, 61, 63, 74 renewable energy, 8, 21, 33, 45, 46, 47, 48, 50, 51 geothermal, 8, 45, 46, 51, 52, 75, 76 risk, 6, 9, 30, 33, 35, 45, 48, 49, 50, 61, 63, 68 green building, 18, 19, 20, 21, 22, 71, 72, 75, 76, 77, social media, 5, 53, 69 78, 79 solar, 14, 40, 45, 46, 47, 48, 49, 50, 75, 76, 77 greenhouse gas, 18, 21, 24, 25, 28, 33, 37, 43, 51, sustainability, 5, 12, 13, 14, 15, 16, 17, 29, 35, 36, 63, 65, 72 38, 39, 53, 54, 76, 77, 78, 79
GRI, 14, 76, 78 triple bottom line, 5, 77 health, 34, 35, 56, 75, 79 WasteWise, 24, 25, 58, 73, 78 incentive, 15, 25, 46 water efficiency, 6, 20, 21, 22, 32, 60
ISO, 12, 76 WaterSense, 22, 73, 74, 78
LEED, 13, 19, 21, 60, 71, 72, 76, 77 wind, 45, 46, 48, 49, 50, 74, 75, 77
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