Image from conservationvalue.blogspot.com

A look at the sustainability initiatives leading companies have taken, their road to success, and what were the benefits.

Last Thursday, Sustainable Silicon Valley (see more information below) and EMC hosted an event on sustainability best practices of 25 leading corporations, among them 15 are from the San Francisco Bay Area.

Although customers, including business-to-business (B2B) companies, are showing a greater interest in green products, business sustainability means more than green buildings or making green products.

Charlie Goldenberg, managing Director at Page Mill Consultants, and Vijay Kanal, Managing Principal from Kanal Consulting presented their comprehensive study of the most effective and successful sustainability practices across leading companies of various sizes and of different sustainability maturity levels. Mr. Goldenberg and Mr. Kanal’s research resulted in a knowledgebase of ‘best practices’ which companies can apply to maximize the success of their initiatives on the road to sustainability.

Silicon Valley and the Bay Area are a cradle of green and sustainability innovations. The speakers talked about the major value drivers for sustainability initiatives and how to structure projects for success.
The researchers looked at several factors: value creation models, governance, the stakeholders, transparency - communications internally and externally, performance metrics, operations, the supply chain, and branding.

Findings indicated that in order to succeed, companies must integrate sustainability into their business strategy – in fact, by integrating sustainability goals into the company’s vision, mission statement, values and strategies - management, employees, the board of directors, and all other stakeholders will be aligned along the corporation’s ‘green’ direction.

The speakers noted, time and again, that transparency was key, i.e., communicating internally and engaging everyone, as well as reaching out to the outside world: customers, investors, and the public.
Governance has additional benefits such as better management of resources, improving communications, reducing costs, gaining marketing/branding leverage, and opportunities to increase profitability.

One of the challenges companies face is employee and management involvement. In many organizations there are already internal grassroots initiatives and a degree of awareness. The study provides the structure to enhance and leverage environmental stewardship, leading to ownership at all levels. The CEO is a key sustainability spokesperson for the organization.

Once policies are in place at the strategic level, driving the direction of sustainability initiatives, setting metrics and measuring results are as important.

Most companies start their greening efforts in operations, where they can improve relatively quickly, reduce costs, and also achieve environmental benefits.

In operations, best practices encompassed: Buildings, facilities; Waste management (recycling, materials and product re-use); Energy efficiency; Resource management - employees’ travel, real estate and office space, virtual workforce (telecommuting), materials (the ones with the least environmental impact) and packaging (reducing size and choosing alternatives).

For example, LEED certification provided many benefits: energy-saving technologies improved efficiency, optimization of waste and maximizing recycling lowered costs, revamping and consolidating data centers saved money. Telecommuting earned 15-20% reduction in facility costs, as companies saved on office space and decreased the need for additional real estate facilities.

Supply management/procurement, aligned with industry specifics, also held an important role. Best practices suggest that when corporations view suppliers as partners, work on improved logistics, clearly communicate expectations, provide training, and keep an open dialog - were key in driving suppliers to meet sustainability criteria.

Although building green brands drives revenues up, the speakers noted that green branding doesn’t have to be just about the products; sustainable operations and a green supply-chain are effective, as long as a company can back up its sustainability claims to avoid green washing risks. Furthermore, findings indicated, that the successful companies addressed sustainability ROI (Return On Investment) as any other business investment.

Read more about Successful sustainability initiatives in corporate America.

At the end of their presentation, Mr. Goldenberg and Mr. Kanal emphasized that there are many ways to get value out of greening and becoming a sustainable business. The transition becomes easier when companies start looking into greening their products and driving their culture into a sustainability mind set.
The bottom line: start with the easier steps, such as greening packaging; make sure to be transparent internally and externally at all stages and keep on communicating!

Read more about Page Mill Consultants - Sustainable Business Strategies-  in Palo Alto, CA and Kanal Consulting - Helping Clients Grow Sustain ably - in San Francisco.

Sustainable Silicon Valley (SSV) is a multi-stakeholder collaborative initiative to produce significant environmental improvement and resource conservation in Silicon Valley through the development and implementation of a regional environmental management system (EMS).

Founded in 2001, Sustainable Silicon Valley began collaborating between business leaders - the Silicon Valley Leadership Group (SVLG), government - led by California Environmental Protection Agency and political leaders, and NOGs (Non-governmental organizations) - led by the Silicon Valley Environmental Partnership (SVEP). Representatives from these organizations formed a team to develop a project plan and introduce it to a wider group of participants. Participants were invited from the entire Silicon Valley region, including Santa Clara and San Mateo, Northern Santa Cruz, and Southern Alameda counties.

Sustainable Silicon Valley (SSV) vision is to collaborate and work toward a thriving Silicon Valley with a healthy environment, a vibrant economy and a socially equitable community.

SSV holds several events a year (see CAREER POINTERS below), educational forums and summits. SSV also provides resources and  supports several Green teams in corporations around the Bay Area. For more information, check the SSV website and search on "Green Teams".

Crossroad image from green.sympatico.msn.ca    

 UP-COMING SSV EVENTS

1. Smart Microgrids: Developing Sustainable Power Grids
February 23, 2010, 5:00-8:30 pm
Santa Clara University, Santa Clara
Click to Register.

Microgrids encompass self-contained generation, transmission, distribution, energy storage, and energy management for business and academic campus environments. Their benefits include the ability to maintain operations even during utility grid disruptions, contribute excess electricity generated from renewable sources back to utility grids, and perform as distributed generation assets that can help stabilize overall grid operations.

This conference, hosted by Santa Clara University, explores the requirements, technologies, standards, and R&D ongoing in this particular Smart Grid sector through the lens of an actual microgrid project underway at Santa Clara University.
Panelists will discuss the opportunities and challenges of designing, deploying, and managing microgrids, and exhibitors will showcase solutions that support microgrids.

2. Webinar - The Road to Regional Sustainability Leadership

Hosted by: Sustainable Silicon Valley, Hara, PricewaterhouseCoopers
Wednesday, February 24, 2010, 12:00-1:00 pm

Cost: FREE
Click to Register.

Effectively addressing sustainability management has become a critical business and operational challenge. This webinar will demonstrate how organizations can effectively demonstrate sustainability leadership by measuring carbon and water footprints, setting targets for reduction of the use of energy and water, increasing conservation efforts, and reporting on the progress of sustainability efforts.

*See how leading businesses, governments and non-governmental organizations are measuring and reporting on sustainability efforts and resource consumption through a regional environmental management system
*Become familiar with strategies for going beyond carbon accounting to plan and implement energy, water and waste reduction while reducing carbon emissions
*Learn about reporting programs from the regional level to California and beyond (AB 32, TCR, CDP, EPA)
*Understand how to help make sustainability a competitive – and profitable – advantage
*Learn how to benefit from best practices and a sustainability-focused network of partners

Send me feedback, Green career tips, training suggestions or job openings and I will share them.

Tags: How to green businesses, sustainable management, behavior models, going green, sustainability at work, energy efficiency,  green operations, green technology,