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Showing posts with label Business Development. Show all posts
Showing posts with label Business Development. Show all posts

Monday, June 6, 2011

Leaders in Sustainable Business Development (SBD)



Photo By Daniel Suchenski


Written by Pankaj Arora

Very often, SBD efforts in a company start small by one person who is passionate to bring a change in the existing way of doing things. As success comes, this change agent hopefully gets recognized by the senior management and those efforts get scaled up to be applied to through out the company, one step at a time. But unless the top leadership of the company is sold to the sustainability idea, very little gets done. Looking at the leaders of Patagonia, Seventh Generation, Stonyfield Farm or even Coca Cola, one common theme emerges – all are passionate for steering their companies to being a sustainable business. For our purposes, let’s pick Garry Hirshberg, the founder CE-Yo of the organic yogurt company Stonyfield Farm.

In 2006, Stonyfield Farm formed 10 teams in each of the areas of environmental burden – sustainable packaging, facility GHG emissions, transportation, zero waste and water to list a few of them. As part of their Mission Action Program (MAP) process, each team completes an annual ‘Action Plan’, which includes setting long-term and near-term goals and outlines the steps to achieve the goals. The plans must be approved annually by the CEO, COO, and VP of Natural Resources. The team members also have a portion of their compensation linked to achieving an annual MAP objective. The Human Resources department is expected to list the key personnel and team leaders in each of the teams to measure the outcomes – both successes and failures in terms of levels down to the employee behavior change such as use of energy saving software for computer users. This Action plan is then further shared across the company for future engagements and coordination.

The farmers outside the company are important leaders in moving towards SBD. Since more than 42% of the emissions come from farming and cows, an accountable and a leadership team is put in place to work to reduce those methane emissions primarily coming from belching of thousands of cows. Climate Counts scorecard, is another effort, which has evolved into a leadership position over time helping other companies reduce their climate footprint score. ‘Preserve’ is Stonyfield Farm’s partners in recycling. ‘Effect Marketing’ is the company’s green marketing partner leader, apart from the NGO’s the company is engaged in.

In my opinion, the three most important achievements of the sustainability leaders associated with SBD in the company would be:
  •  Removal of lids of their yogurt cups by the Packaging team that led to more than a $1.2 million a year savings to the company.
  • The transportation team got a 40% reduction of CO2 from their trucks on the road due to eco-driving, led to $3.3 million gallons of fuel savings.
  • Zero Waste team achieved the zero waste to landfill thus turning their entire sludge and waste to energy generation.


Stonyfield Farm can be used as a leadership model example, because it is one of those few companies that began as an answer to environmentalism of its CE-Yo in the early 80’s. It is time for the leaders to spare the emotional bursts that spur the environmental movement and use science and facts based approach to track the progress to SBD.

References: Book SBD by D.L Rainey, www.stonyfield.com, Interview of Garry Hirshberg from a podcast at www.greenbiz.com and from Stanford University’s website: http://sic.conversationsnetwork.org

Published with permission from Pankaj Arora - Photo taken by Dan Suchenski

Sunday, March 20, 2011

Thailand Business Council for Sustainable Development - Green Label Scheme



Introduction

Labels and advertisements highlighting the preferential eco-benefits of products is nothing new. According to the authors of Walking the Talk: The Business Case for Sustainable Development, “eco-labeling, based on the use of labels or symbols to designate preferred products, is increasingly being used in the marketing of timber, foods, fish, and other products.”[1] The authors go on to say that, “certified products can lead to higher prices and expanded market share as well as to satisfy consumers’ concerns about the safety or environmental impact of such products.”[2] The first eco-label was the German Blue Angel certification. According to the Blue Angel website, the certification was “created in 1978 on the initiative of the Federal Minister of the Interior and approved by the Ministers of the Environment of the federal government and the federal states. It considers itself as a market-conform instrument of environmental policy designed to distinguish the positive environmental features of products and services on a voluntary basis.”[3]

Thailand Business Council for Sustainable Development

The Thailand Business Council for Sustainable Development (TBCSD) was established in 1993. Consisting of “representatives from 32 leading business organizations and operates as a non-profit group to promote sustainable development,”[4] Chaired by Mr. Anand Panyarachun as a TBCSD council project, the Thai Green Label Scheme was one of the first projects that the TBCSD took on.[5] According to the Thailand Environment Institute (TEI) “the Green Label is an environmental certification awarded to specific products that are shown to have minimum detrimental impact on the environment in comparison with other products serving the same function.” Additionally, the symbol “signifies environmental conservation. The flora (the leaves) and fauna (the bird) depicted are the living wonders of the world.”[6]

The Green Label scheme is intended to:
  • Provide reliable information and to guide customers in their choice of products
  • Create an opportunity for customers to make an environmentally conscious decision, thus creating market incentives for manufacturers to develop and supply more environmentally sound products
  • Reduce environmental impacts that may occur during manufacturing, use, consumption, and disposal products[7]

The Criteria for Development are as follows:
  • An environmental assessment of the product using life cycle consideration, taking into account all aspects of environmental protection.
  • Solving specific issues of high political priority, e.g. reduction of waste production, and minimization of energy and water consumption.
  • Capability to meet proposed criteria with reasonable process modification and or improvement
  • Possession of appropriate test methods.[8]

Conclusion

Entitled ‘Sustainable Consumption and Production of Thailand’, Wilasinee Poonuchaphai, from the German Technical Cooperation (GTZ) made a presentation during a ‘Path of Good Governance Seminar’ held in South Korea during April 2010. Sponsored by organizations like: Green Growth, UN Project Office on Governance, UN Economic and Social Commission for Asia and the Pacific, Regional Helpdesk on Sustainable Consumption and Production in Asia and the Pacific, Wilasinee Poonuchaphai asserts that, while participation in Thailand Business Council for Sustainable Development Green Label Scheme, “there are 30 companies have been awarded the Green Label certification.”[9] Since 1993 TBCSD has made notable achievements in their efforts to highlight companies and products in Thailand that are committed to making strides to provide envirinomentally-friendly alternatives for everyday products and services. More work needs to be done of course, but if the accomplishments made thus far are any indication, the future looks hopeful for continued sustainable development in Thailand.




[1] Holliday, Charles O. Jr., Stephen Schmidheiny, Philip Watts. Walking the Talk: The Business Case for Sustainable Development. UK: Greenleaf Publishing Limited, 2002. Print. Page 178. [2] Ibid. [3] http://www.blauer-engel.de/en/blauer_engel/index.php [4] Holliday, Charles O. Jr., Stephen Schmidheiny, Philip Watts. Walking the Talk: The Business Case for Sustainable Development. UK: Greenleaf Publishing Limited, 2002. Print. Page 190. [5] http://www.tei.or.th/greenlabel/about.html [6] Ibid. [7] Holliday, Charles O. Jr., Stephen Schmidheiny, Philip Watts. Walking the Talk: The Business Case for Sustainable Development. UK: Greenleaf Publishing Limited, 2002. Print. Page 190. [8] http://www.greengrowth.org/download/2010/korea/Country.experience.on.SCP.Thailand.pdf [9] http://www.greengrowth.org/download/2010/korea/Country.experience.on.SCP.Thailand.pdf