Eco-Catalyst: A Capital Idea

As I've been combing thru articles and skimming books that I'd like to spend much more time absorbing, I have recently come to this: the answer to sustainability is in true cost accounting. Well, at least if we approach it from that perspective and with that goal in mind – the ability to understand, acknowledge, and account for all the forms of capital responsible for our success, for our very existence – we will be able to achieve a level of sustainability.

This means we must rethink our current values and business practices, even our living practices. It means we must adjust to our new state of being, just as the industrial revolution and conventional capitalism were a response to the state of being in the late 18th and early 19th centuries. And isn’t it about time? Our new state of being requires that we understand our interdependence with natural capital and its limits (and therefore our own) within a global setting. We must change the fact that our current definition of economic growth does not adequately account for the cost of natural capital and values all expenditures based on $s spent regardless of whether society benefits or loses, whether the cause and effect are positive or negative. Too often the effect of consuming natural capital and the waste that is deposited into the ecosystem as part of that consumption, are not accounted for.

The challenge is large, but begins with some very attainable steps and goals:

Employ Systems Thinking

• assess entire system of your business: inputs & outputs (as well as their source and destination), resources, waste, available technologies
• establish value for resources that can't always be expressed in $s (human and natural capital)

Engage All Stakeholders

• identify all stakeholders and understand their role within your ecosystem
• apply systematic ways to capture and act on stakeholder input, feedback, and ideas
• employ strategies to address stakeholder concerns
• establish new systems of recognition and reward

Enable Innovation

• collaborate internally & externally
• partner with other businesses to expand your joint capabilities
• consider all ideas, however radical or simple
• look for quick wins, but make sustainability a long-term commitment

To survive - and ultimately to thrive - in the coming years and generations, we must address the need to redefine cost and value to include natural capital in our evaluation of 'growth', progress, and prosperity.

Influences for this post include:
Natural Capitalism, Paul Hawken, Amory Lovins, L. Hunter Lovins
Presentation by Jeffrey Hollender, CEO of Seventh Generation, at the University of Denver on 11/09/2009

Off the Cuff: How Education Plays Into It

What better place to focus sustainability efforts than schools. It’s where we learn new ways of thinking, new behaviors, and have the opportunity to explore, research, and innovate. Our experiences permeate how we act in our homes (both backwards to the homes we are leaving and forwards to the homes we have yet to create), what we bring to our jobs, and how we impact our world. Some new reports on how our schools are performing and what they’re up to in the sustainability arena are worth checking out:

• College Sustainability Report Card 2010 http://tiny.cc/K7d6D
• Net Impact's 2009 Business As UNusual guide http://tiny.cc/DDga5

Eco-Catalyst: The Sustainability Index – It’s not the work of just one

Even if (or perhaps especially when) it’s a giant like Walmart. The name Walmart does not usually fall lightly in my presence and generally evokes a strong response. Realizing the potential the largest retailer has to influence the awareness and actions of so many – suppliers and consumers alike – I’m attempting to approach the Sustainability Index spawned by Walmart with a positive outlook.

The Sustainability Index, as Walmart will happily admit, is not meant to be specific to one retailer, one industry, one market segment. It is for all and to be owned by all. So many organizations have already made tremendous strides in this arena and will have much to contribute. And that’s a good thing, because in looking at the extent and content of their sustainability reporting as well as the somewhat lacking ‘15 Questions for Suppliers’, Walmart could use some help. The work is not trivial and will take years to develop. The Sustainability Consortium and organizations like the World Resources Institute will help create a consistent framework for companies to report and consumers to understand the sustainability of their products.

If Walmart is truly serious, this is a huge opportunity. They must be committed, however, and not only at the expense of others. They must be willing to work in partnership with their suppliers rather than just making a lot of demands. They need to understand and communicate the full depth of their slogan - “Save Money, Live Better” - so that it includes not just $s, but environmental and social costs and benefits as well.

They won't be serious unless we're serious. It is up to all of us. If you shop at Walmart and they are profiting from your purchases, you can demand better quality, more choices, and a reduced footprint. As a consumer, you will be able to make more informed choices. If you supply to Walmart and they are profiting from your products, you can demand that they share in the effort to bring sustainable products to market and recognize as well as communicate the benefits. As a supplier you can leverage this collaborative challenge as an opportunity to improve your products and increase your value.

Whether something termed a ‘super-center’ can ever be considered sustainable, is up for serious debate. In the meantime, the Sustainability Index initiative will bring us closer to a clearer understanding of:

• what we are spending (and in turn saving) - as much in terms of less visible resources like water, energy, and fair labor as out-of-pocket $s, and
• how it will better our lives - not only by immediate gratification thru use or perceived status, but also long-term waste reduction, improved health, and a thriving ecosystem.

Regardless of how I might feel about Walmart, that's a good thing.

Eco-Catalyst: Drive to Survive, Strive to Thrive

I'm somewhat of a newcomer to the term thrivability, but I understand it is beginning to replace sustainability in some circles. I heard it at a recent meet-up event focused on social responsibility, so I decided to give it some thought. It appears to be a question of degrees and/or extent of progress.

Sustainability is about survival. It’s about equalizing what is now very clearly an off-balance relationship between availability of resources and their rate of consumption. To reach sustainability, we must reduce consumption and waste while increasing the rate of renewal to the point where they are equal.

Thrivability goes beyond that to create a world where the scale is tilted in the opposite direction and we are renewing more than we are consuming. In a thriving society, there is no such thing as waste. Not only will the act of consumption always produce new resources, but we will also have offset the damage of our previous consumption habits.

As I see it, if we can't at least reach sustainability, then thrivability will also be out of reach. So, taking the approach of setting repeatable and attainable goals of sustainability - Drive to Survive - while still pursuing the aspiration of thrivability - Strive to Thrive - seems to be a good course of action.

These concepts aren’t new, but they are emerging in new ways and on new frontiers. Perhaps if we use the Stockdale Paradox as quoted in Good to Great as our guide, we will achieve sustainability and evolve into a thrivable society.

- Tanya Lehmann, The Eco-Catalyst

Eco-Pragmatist: 5 Steps to Getting Started with Corporate Sustainability Reporting

Companies of many different sizes, in many different industries, are engaging in Corporate Sustainability Reporting.  The level of reporting runs the gamut from a single web page outlining sustainable business practices, to formal G3 Application Level A+ GRI Reports.  For many companies, there is a fundamental question that is tripping them up: "Where do we start?".

If your company is stuck at "Where do we start?", here's your answer: "Start ANYWHERE!"

While certainly valuable, it's not even necessary to have a clearly articulated Sustainability Strategy - you can work on that either along with your initial CSR Reporting effort - or use your CSR Reporting initiative as 'pre-work' for developing your Sustainability Strategy.

Here's a list of five steps to get you started on 'starting anywhere':

1. Ideally, engage the right stakeholders from across the company.   Who are the 'right stakeholders'?  Start with the ENTIRE executive level team - ALL areas of your business are part of this.  If for some reason you're unable to accomplish this - you've clearly got some education and awareness building to work on, but don't let that stop you.  Proceed with the stakeholders you are able to bring to the table.  It's not uncommon for a company's initial reporting to come from just one or two functions - most typically Environment, Health & Safety and/or Facilities.  Again, while it's the 'getting started' that's most important - it's equally important to continue to work on engaging any lagging stakeholders.
   
2. While there are specific reporting guidelines available from more than one source, it doesn't really matter - you can literally spend less than an hour brainstorming the areas of your business and relevant items to include in your initial reporting.  If even that sounds intimidating - here's an accelerator: What are your different sources of energy usage?
3. It's OK that you don't have all the answers - here are some considerations for handling 'not having the answers':
• It's acceptable to state in your reporting that you don't have the answers,
• You can state that the goal for your next report is to work toward finding the answers, 
• Start working to identify the various sources of data you require,
• Compile your data and structure your report in a way that makes sense to your organization (you can utilize frameworks such as the Global Reporting Initiative to help)
4. Publish your initial findings online - they will serve as a launching point for your continuing focus.  Publish a single web page if that's all the content you have.  You don't need to build out an entire 'subsite' devoted to your CSR Reporting (although many larger companies are doing just that).  You can also compile a more formal 'printable' report and provide it as a PDF download on your company website.  Whatever you do, DON'T publish a printed version of your CSR Report (it's very poor CSR etiquette).
5. Go back to Step 1 and repeat.  Now you'll have a baseline to drive the stakeholder discussions.

Now schedule that initial stakeholder meeting and get the ball rolling!

- Randy Hale, The Eco-Pragmatist

It's all about YOU.

If you haven't noticed, sustainability is all about YOU. If you aren't getting engaged, motivated, or inspired, you're not paying attention. The messages are out there. They can be confusing at times, but sometimes they're pretty simple. For example, one company’s latest fair trade coffee advertising is pretty good. A simple message printed on some of their cups promoting the effect that YOU, their consumer, is having on their goal to purchase 100% fair trade coffee. They're giving you credit for making it happen. That type of messaging creates awareness and has the potential to generate an emotional response to drive behavioral change.

It's showing up in business too. YOU as part of the collective that makes a difference in the workplace and is a company's most important asset, can influence sustainability. Beyond individual workplace initiatives (which can be very effective), businesses - as consumers - are demanding more of their suppliers to ensure that they are receiving sustainable goods and services. It's not just about feeling better that we're doing something for the environment or our fellow man, it's also about ensuring that these goods and services will continue to be available and cost effective – i.e. can be sustained/renewed over time.

The choices YOU make on a daily basis are some of the most powerful influences on the road to sustainability. We must strive to relay that message and its benefits to everyone, every day.

Intelligent Business and Carbon Footprint Reduction

For me, it's not about the politics, or even really about climate change. It's about the fundamental economics. Non-renewable energy sources are a scarce resource subject to the basic laws of supply and demand. The more reliant a business is on a scarce resource, the more risk to the business when price fluctuations hit. The price of oil was really putting the hurt on businesses when the recession hit. The recession then caused a drop in demand which dropped the price of oil back to more 'acceptable' levels.  It also caused a drop in supply as production decreased. When the recovery revs up to full strength, we're going to see the price of oil spike again and businesses that didn't take the steps to mitigate that risk are going to have a tough time surviving 'Round Two'.

The Eco-Pragmatist: 5 Steps to Promote and Leverage Grassroot Efforts

In the drive toward developing more sustainable business practices, many companies are leveraging internal, grassroot efforts.  However, many MORE companies are not - and they are missing out on a major opportunity.  The desire and energy is there.  Today.  Inside your company.  So how do you harness it?  Here are five steps to take:

1. Leverage an existing venue, such as an Employee Council Meeting - OR create a new venue, such as a brown bag lunch session.
2. Promote the initiative with open, transparent communication from Senior Leadership on why it's happening - part of the why SHOULD be to help develop more sustainable business practices.  This communication should touch on a definition of sustainable business practices to make sure the general context is set.
3. Build awareness in more depth around sustainable business practices and why they are important from the organizational to the individual level.
4. Brainstorm.  Provide a framework for the brainstorming - or don't.  There are no wrong answers in brainstorming, and for these grassroot sessions there's really not a wrong way of facilitating it.  Ideally, when brainstorming is complete, the group should attempt to map the various options against two scales: 1) How tightly does it align with organizational strategic goals, and 2) How 'individually actionable' is it.  The items ranking high on both dimensions are your 'low hanging fruit'.
5. Incent the right behaviors.  Intrinsic rewards are going to be most effective here - it's all about recognition: company newsletter, email from leadership, and/or a personal 'nice job' from the CEO.

- by Randy Hale, The Eco-Pragmatist

Thinking Out Loud: "Green Initiatives"

Prior to 'going green', companies have focused 'business initiatives' aimed at improving various critical business functions.

Company starts 'going green', now they have 'green initiatives'.

Company matures, gains deeper understanding of sustainability, now they have 'sustainability initiatives'.

Company matures yet again, sustainability now is core to the way they operate, now they have 'business initiatives' - sustainability is 'baked in'.