What does it mean to be an environmentally sustainable company?
Consumers probably equate environmental sustainability with the sale of green products. The Body Shop, Patagonia, Tom's of Maine, and Seventh Generation spring to mind. Of course, greenness depends on much more than what a product is made of and whether or not it can be recycled. Much of a product's environmental impact comes from the manufacturing process and distribution.
Indeed, many firms that aren't thought of as green -- Coca Cola and Anheuser-Busch, for example -- have reduced waste and energy use by focusing on production processes and packaging choices. Why doesn't Anheuser-Busch actively promote that it developed an aluminum can that is 33% lighter than previous cans? Many companies recognize that they are only moving toward sustainability and don't want to set themselves up for criticism of their less than sustainable practices. This is even true of relatively green firms like IKEA, which are careful not to oversell their greenness. In extreme cases, companies may worry that customers might be turned off by a 'green' image -- perhaps that's the case with Anhesuer's Bud drinkers.
The concept of sustainability broadened in the 1990's with the corporate social responsibility (CSR) movement. In addition to green products and green processes, firms learned to consider social responsibility as well. Just think of how Nike and Gap were forced to address the labor practices of their suppliers.
While the dimensions of sustainability just mentioned will continue to be important -- green products, green processes, social responsibility -- I predict that the pendulum has swung: the single most important dimension of sustainability will be energy use or green house gas emissions. Whether talking about scientific consensus or mainstream customer awareness, we're past the tipping point -- climate change will dominate 21st century commerce.
One can already see the marketing bandwagon forming around carbon emissions, especially in the service sector. 'Carbon neutral' is the latest adjective for everything from the Super Bowl to concerts and business conferences. DHL provides its European customers the option to 'GoGreen' -- for a small fee, DHL will offset CO2 emissions created by shipping the client's package with carbon dioxide reduction projects including alternative vehicle technologies and renewable fuels. Professional service firms also tout carbon-neutrality. U.K. law firms such as Simmons & Simmons and SJ Berwin have gone carbon-neutral. The St Luke's ad agency has developed a system to assess the carbon footprint of ad production so carbon-neutral ads can be produced for U.K. clients. The carbon-neutrality trend is clearly further ahead in Europe, but American service providers are beginning to following suit.
Note: if you are interested in using social marketing to reduce the energy used by your customers or employees (or to change any type of behavior, for that matter), you are welcome to attend my free presentation as part of the LLBean/Lee Surace Colloquium sponsored by the USM School of Business and supported by the Maine Marketing Association (April 17, 2007, 4:45 p.m., 7th floor USM Portland campus library). Please register at www.usm.maine.edu/~gramlich/colloquium/spring07/artz/
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While I see that your article highlights how many ways a company can be considered GREEN, I have to take issue with IKEA. No company that pushes consumption to that degree could possibly be considered GREEN. Even if every store, every factory and every warehouse of Ikea's had grey water treatment, a green roof, solar power, on site daycare, if every product were biodegradable, you name it; they market to the glutton in us and they succeed.
Seventh Generation produces neccessities and does so responsibly. Ikea produces frivolities and helps us justify them.
Posted by
helenMarch 20, 2007 09:56 PM
Brunswick is starting to have a discussion of what 'sustainabiity' means to local government entitities.
As is usual, there is a vagueness which is hiding several agendas...I get nervous when I go to a meeting to discuss the definition and some organier whips out a shopping list of agenda items prepared by the SIERRA CLUB or NRCM with a lobbying pitch from a local proxy..... and all before any definition was put into writing let alone discussed and voted on!
The bottom line on 'sustainability' for any any corporation is whether they will lose their customer base or not.
For example, were USM to restrict the number and types of vehicles students use to travel between clases or the amount of power going into dorm rooms; they'd lose customers.
As a successful baker, I quickly went from a whole grains ethos to a business philosophy which accomodated sugar and chocolate addictions by the same people who want low-cal fudge cheesecake.
As Jon Reisman wisely points out, carbon indulgences wash away the sins of consumption.
I wonder what the going rate is for the cardinal sin of profiting from ZINC MINING?
Posted by
Frank HellerMarch 21, 2007 09:51 AM