2Sustain

Researchers at the Centre for Low Carbon Futures have concluded that cities could cut their energy bills by billions –if they exploited commercially attractive opportunities in energy and carbon management.

The study, which focused on cities in the UK, found that about 10 percent of city scale GDP leaves the local economy every year through payment of the energy bill . . . and, as you would expect,  that percentage is forecast to grow considerably over the next decade.

However, by investing 1 percent of GDP for 10 years, cities could see savings in their energy bills worth 1.6 percent of GDP every year. In addition, taking advantage of low carbon development would create jobs, mitigate energy risks and reduce environmental impacts. (more…)

Anheuser-Busch InBev and GE have formed a strategic alliance to drive energy efficiency and water savings in existing and greenfield AB InBev facilities across China.

In 2010, AB InBev announced a set of aggressive three-year global environmental goals as part of its Better World commitment. According to a press release, the new partnership with GE will initially focus on designing and implementing several key solutions. For example, the companies will collaborate regarding: (more…)

Last month, the athletic apparel company PUMA announced its first “environmental profit and loss statement.” PUMA’s CEO Jochen Zeitz explained the decision by insisting that, in order to remain profitable, companies must integrate into their business models the true costs of relying on nature.

PUMA’s move is an example of “corporate ecosystem valuation,” the process of businesses making strategic decisions by assigning a financial price to both ecosystem degradation and the services that ecosystems provide. For example, clean water and forests provide services like erosion control, CO2 absorption, and food.

But, why would companies consider adding a value to resources like water or timber? After all, these are not line items an analyst typically finds on a balance sheet. Data from the World Business Council for Sustainable Development (WBCSD) tells part of the story: (more…)

Corporate sustainability programs are now standard fare for most large, publicly-listed corporations, but a new survey from KPMG found that nearly one-third of smaller businesses still don’t have a sustainability strategy in place.

The study, Corporate Sustainability: A Progress Report, polled 378 senior executives from around the world. It found that:

• Overall, 62 percent of companies participating in the survey have a corporate sustainability plan –up from just over half polled in a similar survey in 2008.

• However, larger publicly-listed companies are clearly leading the charge. Nearly eight out of 10 of the large companies polled have a strategy, compared with less than  half of smaller businesses.

• US companies are lagging companies elsewhere around the globe. Of the 86 American firms included in the survey, about half (55 percent) said their organization has a formal sustainability strategy in place. More than four out of 10 of the US respondents reported that it was difficult to overcome organizational focus on other programs that provide more readily measureable short-term financial benefits.

• Fortunately, businesses are beginning to connect the dots between sustainability and profitability.  Almost half the executives surveyed said they believe that implementing sustainability programs will contribute to the bottom line, either through cost reduction or increased profitability. What’s more, among those that do not have a strategy currently in place, seven out of 10 expect to do so within one to five years. One-quarter said they had no specific timeframe.

What are the biggest obstacles companies face when trying to implement a sustainability program? According to the executives polled, the short list of hurdles includes: (more…)

Will sustainability become a major driver of consumer purchasing behavior?

Many leading corporations are betting that it will. But, new research from OgilvyEarth suggests that, at least for now, consumers just aren’t buying it.

The study, Mainstream Green: Moving sustainability from niche to normal, provides new insight on how to close what OgilvyEarth calls “the Green Gap,” a division that persists between what consumers say and what they actually do around sustainable living.

According to the study:

• The vast majority of Americans (82 percent) have good green intention. But, only 16 percent are dedicated to fulfilling these intentions. That leaves 66 percent in the category that OgilvyEarth calls the “Middle Green.”
• The Middle Green is difficult to motivate. Typically, most of the dialogue and marketing has focused on the extremes of consumer behavior – what the study refers to as the Super Greens or the Green Rejecters.
• Economics, guilt and perceptions all play roles in motivating green purchasing behavior. For example, the top barrier Americans claimed was holding them back from more sustainable behaviors was money. Guilt plays a role, too, and so does gender — 82 percent of survey respondents said going green is “more feminine than masculine.”
• Interestingly, when given a choice between purchasing an eco-friendly product from a known brand or a company that specializes in being green, 73 percent of those polled opted for the known, mainstream brand.

OgilvyEarth offers sound guidance for companies looking to normalize sustainable behaviors. In broad terms, the recommendations include: (more…)