sustainability

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Newsweek: Green really means business

I had the chance to read an excellent essay in the 9/22/08 issue of Newsweek, by Zachary Karabell of RiverTwice Research, which I strongly recommend.  The main message of the article is that in an era of high energy costs, a company that has sustainable business practices will likely be able to save money and reap positive financial returns as a result.

Karabell writes that “sharply higher prices for oil and raw materials” have made “reductions in energy use economically viable and strategically important in a way that no amount of green activism ever could.”  He continues by discussing Wal-Mart’s efforts to “green” its supply chain: “To maintain its razor-thin margins at a time of record oil prices, which are raising the cost of importing goods from China, Wal-Mart has radically altered how its products are made and how they’re transported. One example: making detergent more concentrated, which leads Wal-Mart suppliers to use smaller plastic containers, which in turn use less petroleum to manufacture those containers, which can then be shipped with more containers in each carton, which leads to less cardboard, which makes it possible to transport more units on each ship or truck, which then reduces the amount of gas used to get those units from the factory to Wal-Mart outlets. The result: Wal-Mart maintains margins and reduces its resource consumption as well as that of its suppliers.”

Karabell also goes on to mention other profit-driven reasons for companies’ sustainability efforts: international regulatory rules as well as studies showing that companies that receive high environmental marks have shown above-average return on investment and stock price performance.

I have frequently written about the importance of green business practices, not only because they are the right thing to do but also because they help the bottom line. Whatever the reason, the fact that companies like Wal-Mart, Du Pont and Google, to name a few, are all investing heavily in making their businesses less resource intensive, and therefore more profitable, is a great step.  Our national government has not done enough to create incentives for companies and individuals to invest now to save resources and money in the long run, so it is incumbent on the business community to take the initiative.

Relative to my business, Grossman Marketing Group, we strongly urge our clients to not only operate their core businesses responsibly, but also to make the effort to bring that message of sustainability to their constituents through their marketing and communications campaigns.  Whether it’s a piece of direct mail or a giveaway at a tradeshow, by leveraging environmentally-friendly materials, and clearly communicating what they have done to make their pieces less resource-intensive and the savings derived by doing so, they will send a values-laden message to their core customers and donors that will help reinforce their brand and build relationships for the long term.

Here’s a link to the full Newsweek article.

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Sustainability becomes differentiator for colleges

I read a very interesting article in the Boston Globe last week, which discussed the rising tide of “green” initiatives at colleges and universities across the country.

The article, titled “Not to be out-greened: Colleges grow more Earth-conscious to lure students,” focused on the increasing importance of universities’ environmental stewardship programs to college students, and how they can have an impact on their application decisions.  According to the article, Julian Dautremont-Smith, the associate director of the Association for the Advancement of Sustainability in Higher Education, said, “The current generation of students wants to go to schools that take their environmental responsibility seriously.”

Campus green initiatives have become so mainstream that even The Princeton Review has started rating schools on their respective commitments to the environment.  For more coverage on the Princeton Review survey and commentary on the explosion of green campus initiatives at colleges, please see an article from the most recent Education Life section in the New York Times.

The Education Life section (published Sunday, July 27) had several other articles on green topics that may be of interest to you.  Here’s a link to the section itself.

A key takeaway I had when reading these articles was that even if a school has a sterling commitment to the environment, if it does not clearly communicate its good work to the community it large, the impact on its applications, donations and goodwill generated will be muted.  Therefore, it is critical that schools get the message out to their constituents (through their websites, social networks, and printed marketing materials, among other channels) that they are firmly committed to sustainability.  Whether the printed versions of these materials are made with wind power or printed on post-consumer recycled paper, it is important that these green initiatives are translated onto the printed page.

For more on green printing recommendations, please see a post I wrote earlier this year.

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Interesting article on importance of good relationships between marketing and sustainability officers

Gary NeillAdvertising Age recently wrote a special report on the importance of strong relationships between marketing and sustainability officers. Although the sustainability officers play a leadership role in helping an organization be a good steward of the environment, the CMO is responsible for crafting the company’s communication strategy with its customers. Therefore, for a company to have a well-articulated green strategy, that is also backed up by substantive organizational action, these two departments/officers must work well together.

Here’s a link to the entire article. I found it to be an interesting read: Article

Illustration by Gary Neill, courtesy of Advertising Age.

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Green Marketing: Reducing the Impact on the Environment while Increasing the Impact on your Audience

Below is an article I recently submitted for publication to the Association of Fundraising Professional’s newsletter about green marketing for not-for-profits. Nevertheless, the lessons discussed are applicable to for-profit businesses as well.

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Nearly every day, when we open a newspaper or magazine or turn on the news, we see and hear something about the importance of being “green.” There are many reasons for this, most notably the acceptance of global warming as fact. Global warming has gone from a term used in the scientific community to a national issue on the minds of tens of millions of Americans. 2007 was the year when most citizens began to take notice and take action, and they are increasingly demanding that the places where they work, companies from which they buy products, and organizations to which they donate make significant and sustained efforts to address environmental issues. These efforts must cut across all facets of an organization, from energy conservation, to recycling initiatives, to waste and water use reduction.

One of the most active conversations that we constantly have with our clients in the not-for-profit world, particularly those in development and communications, is how they can show their donors, prospects, and constituents that they are acting in an environmentally-conscious way. In addition to implementing some of the operational business practices mentioned above, we highlight their collateral as a valuable tool in this effort. Quite often, their mailings and other marketing pieces are the principal vehicle through which they communicate with their key stakeholders and thus provide tremendous opportunities to connect in focused ways.

Each new project is an opportunity to deliver a values-laden message at a time when environmentally-sound practices are one of the hottest topics on the political, social and business landscapes. In fact, according to recent national polling data, the environment was a top-five issue with Americans, behind the economy, Iraq, and healthcare. For that reason, in addition to using marketing and fundraising projects simply as a means to discuss a specific topic (i.e. an event, annual appeal, etc), it is important to think bigger and bolder. Therefore, we make strategic recommendations on how to produce these pieces in environmentally-friendly ways, which strengthen the relationship between the organization and the donor. This is a critical part of the mission of fundraising professionals, and we are working closely with not-for-profit clients all over New England to make that goal a reality.

Research demonstrates the importance of the environment to prospective donors. According to a 2007 Gallup poll, 83% of respondents said that they believed the environmental record of an organization is an important factor when deciding to buy one of its products. According to an environmental survey published by Cone LLC, a cause branding firm headquartered in Boston, 93% of Americans “believe companies have a responsibility to help preserve the environment” while 91% of Americans said they “have a more positive image of a company when it is environmentally responsible.” There is no question that this data applies to not-for-profits as well.

Not only does incorporating sustainable business practices into your organization make good business sense, it is also the right thing to do. Manufacturing of all kinds, including the creation of collateral, requires large amounts of electricity, traditionally produced by fossil fuel-powered generators. The combustion of fossil fuels creates carbon dioxide and other greenhouse gases that contribute to global warming. Therefore, one of most effective ways to address the environment with your marketing communications is to produce your materials with renewable energy, specifically wind power. Any number of third-party reports highlight that wind power resonates very well with end consumers – who make up your respective donor bases.

Therefore, we made the strategic investment in early 2007 to power our envelope production facilities with 100% certified wind power, using Green-e certified renewable energy credits. We offered envelopes made with wind power at no extra cost, and the program took our industry by storm. Some of our initial customers included: American Israel Public Affairs Committee (AIPAC), Boston University, Common Cause, Federation of American Scientists, League of Conservation Voters, National Park Foundation, Partners Healthcare, Project Bread, Tufts University and WBUR. Over the past year, we have worked with approximately 75 clients to produce more than 120 million envelopes with wind power, which has saved more than 33,000 gallons of oil!

In addition to the wind-power envelope initiative, Grossman Marketing Group now offsets 100% of our energy use in all of our facilities, so can help our clients make all of their printed collateral with certified wind power, at no extra cost. In addition to renewable energy, we have come up with some very simple tips to “green” our clients’ collateral projects, always with the bottom line in mind.

We recommend that once clients make the decision to make their collateral more environmentally-friendly, they clearly articulate this to their constituents. We work with our clients to translate the environmental savings into very simple and easy-to-understand terms so your donors can fully grasp the positive contributions you are making to the environment. You should never hesitate to explain the work that you are doing – whether it is on the back of an envelope, or in a section of your annual report or newsletter. Clear communication and transparency are absolutely critical, as they will allow you to use your environmentally-conscious approach as a way to differentiate your organization from your competition and establish a competitive advantage.

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Law Firm Adds Sustainability Initiative

Below is an article from GreenBiz about the law firm, Sheppard Mullin Richter & Hampton LLP’s green initiative. I have heard from some of my company’s legal clients that they are starting to see RFPs for legal work contain a section on the firm’s sustainability measures. Definitely a connection between “green” business practices and the bottom line!

Source GreenBiz.com

LOS ANGELES, March 24, 2008 — Sheppard Mullin Richter & Hampton LLP unveiled last week an initiative to boost energy efficiency, reduce waste and improve its bottom line.

The company wants to be seen as a leader in sustainable business practices within the legal community. The firm plans to enroll in the Law Firm Eco-Challenge program from the American Bar Association and U.S. Environmental Protection Agency and make energy efficiency improvements based on internal survey results.

“More corporations and organizations are paying attention to ‘green’ initiatives and expect that their law firms do also. The firm’s Sustainability Program supports the commitment to practices that our clients are adopting and implementing,” Visser said. “Our initiative has also been well-received internally, as it strengthens and celebrates the firm’s community and social responsibility. Our attorneys and staff are proud to be part of a firm that is concerned with sustainability issues.”

There will be an internal website dedicated to its sustainability initiative and a blog, to be created with its Global Climate Change practice group. The initiative, led by Partners Randolph Visser and Rafael Muilenburg, encourages its personnel to help identify new ways to foster sustainable business practices.

http://www.greenbiz.com/news/news_third.cfm?NewsID=55784

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Sustainability, and why it matters now

What it means

Sustainability means assuring the long-term survival of our planet by conserving and caring for its resources rather than depleting or permanently damaging them. Our growing awareness of the effects of climate change and deforestation makes sustainability and environmental stewardship everyone’s concern today.

Why it matters

For companies, sustainability and profitability go hand-in-hand. A commitment to environmental sustainability makes for good corporate citizenship, which improves a company’s relationship with customers, investors, regulators, neighbors and suppliers. The alternative to environmental sustainability is no longer tolerable. Sustainability is not only good for the earth and its people; it’s increasingly connected to building bottom lines and improving shareholder value.