What's Driving Sustainable Business?

by Marcella Thompson, LEED® AP, Green Business Council

Omaha businesses of all shapes and sizes have taken interest in going green and are looking at their operations through a sustainability lens. From grassroots efforts to formal corporate initiatives, sustainable business programs are raising the bar for performance, setting employee and customer expectations to new standards. Here's a look at some of the driving forces behind this movement.

• Sustainability Drives Efficiency. Sustainability programs enable an organization to take a fresh look at the status quo and often streamline operations through efficiency and simplicity. From an environmental perspective, waste of any kind - excess energy and water use, solid waste generation - represents inefficiency in operations. Sustainability for business often translates to doing more with less. This principle applies to the full life cycle of your product or service as well. For example, Proctor & Gamble (P&G) improved the efficiency and reduced the environmental footprint of laundry detergent by introducing Tide Coldwater. In a February 2008 interview with Fortune Magazine, Len Sauers, P&G's new vice president of global sustainability, noted that if every U.S. household used cold water for laundry, the energy savings would be 70 to 90 billion kilowatt hours per year, which is three percent of the nation's total household energy consumption.
• Defining the Triple Bottom Line. Without question, businesses today are judged by more than economic profitability. The concept of corporate citizenship increased the responsibility of businesses by incorporating a "triple bottom line" approach to measuring the success of business, accounting for economic, environmental and social performance. Also referred to as "people, planet and profit," robust corporate social responsibility initiatives address the needs of human capital, natural capital (i.e. the environment) and the traditional economic bottom line shared by all businesses.
• Greening the Supply Chain. For businesses that operate primarily within the supply chain of larger organizations, corporate customers are increasingly asking more of suppliers in terms of sustainability. A host of voluntary supply chain-focused sustainability programs - such as the U.S. Environmental Protection Agency Green Supplier Network and Carbon Disclosure Projects Supply Chain Leadership Collaboration - are providing structured framework and recognition for suppliers that take steps in greening their operations. Suppliers actively communicating their sustainability performance to customers may establish a competitive advantage.
• Rising Consumer Expectations. As the nation's attention has turned to issues such as climate change and environmentally responsible purchasing, consumers have come to expect a higher level of transparency with businesses. Consumer advocacy groups and other environmental and socially focused non-governmental organizations are making information regarding the sustainability performance of businesses readily accessible to the public. For example, Climate Counts annually rates corporations on their efforts toward mitigating climate change, encouraging consumers to "speak with their wallet" and be mindful in their purchases.
• Employee Engagement. Whether it began as a volunteer, grassroots effort or was pushed down from top management, sustainability programs often bring together a cross-functional team from across an organization. Engaging employees at all levels can increase the impact and influence of business sustainability programs. As an example, Wal-Mart drives sustainability throughout its organizational culture through an effort on "Personal Sustainability Projects" (PSPs). Initiated in 2006, Wal-Mart's voluntary PSP program helps employees incorporate the principles of sustainability into their daily lives by developing individual goals to improve their health and wellness and the health of the environment. In addition to improving the business image in the community, sustainability programs can enhance the culture of an organization and instill a sense of pride among employees.

Sustainability is an admirable goal, laden with opportunity and challenges. No matter what is motivating your business to "go green," working with other companies that are on the same path can facilitate and enhance the process. The Green Business Council is dedicated to establishing a network of local businesses working to promote sustainable business practices through business-to-business relationship building, education, and recognition programs. Local businesses have a tremendous opportunity to influence the culture of the greater Omaha area. Together, we can green commerce and our communities. For more information, contact greenomahacoalition@gmail.com.