Business Better

Is Monsanto Unstoppable?

2009-10-23T18:18:00.003-07:00

Is Monsanto Unstoppable?

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Is Monsanto Unstoppable?

2009-10-23T18:18:00.001-07:00

Is Monsanto Unstoppable?

Posted using ShareThis

Are Companies Really Becoming Greener?

2009-08-09T17:00:00.000-07:00

Two-thirds of respondents to the Acceleration of ECO-Operation survey said their companies do not have scorecards to measure supplier sustainability, and do not have goals of supplier carbon neutrality. However, the respondents know there is “tremendous value” in using a scoring system. Seventy-one percent plan to achieve carbon neutrality in four years or less, despite not having it as a goal.

The Business Performance Management (BPM) Forum created the Acceleration of ECO-Operation program with E2open and the Global Renewable Energy and Environmental Network (GREEN). The program’s website defines Acceleration of ECO-Operation as a “new management mantra aimed at bringing business gain to the value chain through enhanced trading partner visibility, flexibility and new levels of verifiable sustainability across the entire demand and supply ecosystem of global corporations.”

“The Acceleration of ECO-Operation initiatives provide comprehensive confirmation supporting our observation that companies with hundreds or thousands of global suppliers need to do a much better job at seeing and measuring the levels of environmental compliance and efficiencies down to the second and third-tier level of supplier,” said Rich Becks, senior vice president at E2open. “Supply chain executives understand the benefits of better managing collaboration and sustainability in the value chain – now they just have to make it happen.”

The majority of respondents (90 percent) to the survey claimed their company’s management follows the principles of ECO-Operation which are enhanced trading partner visibility, flexibility, and new levels of verifiable sustainability across the entire demand and supply ecosystem.

Almost two-thirds of the respondents said their company does not have adequate visibility across their supply and value chain, and 20 percent use a single hosted platform to improve their visibility. Only 38 percent link eco initiatives with operational efficiency to a high degree, and about half to some extent. Forty-two percent do not think their company’s carbon and energy footprint includes their entire extended supply chain, and 55 percent think their customers would agree.

Although 76 percent said their customers have not asked them to measure or reveal their carbon footprint, two-thirds expect them to demand it in the coming year. The majority (85 percent) are involved in new programs that will increase operational efficiency, CSR, and cost-savings throughout their supply and demand chains.

The top initiatives to achieve better ECO-Operation practices, according to the survey, are environmental responsibility, better sustainability compliance, more efficient product manufacturing, and better customer responsiveness.

The biggest drivers for change in supply and demand chain operations this year are:

Pressure to be more environmentally responsible and sustainable
Troubled economy creating need to “tighten the belt”
More competitive, price-sensitive market for goods

The most frequent challenges in synchronizing supply chain operations are:

No single, universally accessible solution for visibility across the value chain
Partners unwilling or unable to provide necessary information
Don’t have access and visibility into second or third tier trading partners

The top three areas of the value chain process most valuable to measure in terms of environmental sustainability and responsibility are:

Transportation and fuel consumption
Product and waste recycling
Packaging materials and processes

“Today’s economic, social and regulatory dynamics are putting real pressures on global companies to be both lean and green in their product sourcing, logistics, distribution and operational practices,” said Donovan Neale-May, executive director of the BPM Forum. “Unifying and controlling complex, globally-distributed value networks in turbulent, unpredictable times requires real-time operational insights down to the product level, accurate sourcing and sell-through intelligence, and relentless dedication to eliminating waste in all areas of the go-to-market process.”

Consumers Think Green Products Cost More

2009-08-08T14:41:00.000-07:00

The 2009 Green Brands Survey involved consumers in seven countries: the U.S. U.K., China, Brazil, India, Germany, and France). The survey, released in July, revealed that consumers from all seven countries think green products are costlier than non-green ones, but they plan to spend more on green products in the next year. The research, conducted by Penn, Schoen & Berland Associates (PSB) with Landor Associates and Cohn & Wolfe, plus Esty Environmental Partners, showed that consumers in the U.K., France, and Brazil think their country is “on the wrong track” concerning the environment. However, consumers in the U.S., Germany, China, and India think their country is “going in the right direction.”

The survey highlighted the differences between consumers in developed and developing countries, as the following two examples show:

Consumers in the U.S. U.K., Germany, and France share similar environmental beliefs and behaviors, while consumers in Brazil, India, and China have different views from the consumers in Western countries.
The majority of consumers in India and Brazil are more concerned about the environment than the economy, but the majority of consumers in the U.S. are more concerned about the economy.

“With the global climate change discussion focused on what the major new economic powerhouses like China, India, and Brazil are willing to do to control their emissions, those three countries stood out in our polling as more interested in buying from environmentally friendly companies and more willing to spend more on green products,” said Scott Siff, executive vice president of PSB. “From a political perspective, this turns the assumptions about those countries on their heads, and from a business perspective it says the market for green branding and green products may be even bigger than generally thought.”

Over two-thirds of consumers in all countries (77 percent) think it is important that companies be "green." India and China have the highest percentage of consumers who value a companies "green-ness" with 87 percent in India and 98 percent in China. Consumers from all countries think reducing the amount of toxic or dangerous substances in its products and business processes is the most important step a company can take to demonstrate it is green.

“While reducing toxics heads the list of consumer priorities the data also show that the public holds companies accountable for good environmental behavior across the board,” said Dan Esty, chairman of Esty Environmental Partners. “Consumers expect companies to recycle, use energy efficiently, reduce packaging, and pursue green innovation. So to gain loyalty, a company’s environmental strategy must be comprehensive.”

The television and internet are the main sources of information about environmental issues in all countries. Past experiences with products influence consumers the most in France, Germany, and India. Recommendations from friends are most influential for consumers in the U.S. and China. Consumers in the U.K. and Brazil are influenced the most by editorial. Consumers in all countries think intellectuals or activists are the most credible spokespeople for environmental change.

The survey asked participants to rate a number of brands, and the results produced the top ten greenest companies list for each country. The top ten greenest companies list for the U.S. is as follows:

Clorox Clean Works
Burt’s Bees
Tom’s of Maine
S.C. Johnson & Son
Toyota
P&G
Wal-Mart
Ikea
Disney
Dove

Business Execs Nudging World Leaders

2009-07-11T22:04:00.000-07:00

Last Monday, 19 multinational companies, including Nike and Nokia, launched a campaign urging world leaders to agree on a climate change treaty by December when world leaders will meet in Copenhagen. The campaign is part of the Climate Savers program, led by the World Wildlife Fund.

Climate Savers program began in 1999. By 2010 Climate Savers companies will have reduced their carbon dioxide emissions by 50 million tons. According to a press release, the companies have cut their carbon emissions “while creating competitive advantage, increasing shareholder value, and in many cases, increasing their profitability.”

"By cutting carbon emissions by 15 percent we're experiencing positive development on net profits," Niels Petter Wright, CEO of Climate Saver member Elopak, said.

Dennis Jönsson, CEO Tetra Pak, said, “Call it clean. Call it green. Or simply call it jobs.”

“Reducing your carbon footprint is not only achievable, it’s inspiring,” said Thomas Storey, President of Fairmont.

“Climate responsibility is simple - it’s just good business sense”, said Simon Beresford-Wylie, CEO of Nokia Siemens Networks.

Food and Beverage Companies Use Recycled Plastic

2009-07-10T21:53:00.000-07:00

In 2007, there was almost 6 billion lbs. of PET packaging waste, and only 23 percent was recycled, leaving 4.5 billion lbs. in landfills, according to the Environmental Protection Agency. Dr. Richard Thompson, author of a study on the effects of plastics on the environment and human health, said that the “current usage and disposal of plastics is not sustainable, is harmful to wildlife and potentially harmful to humans.”

Thompson added that the use of plastic production is “growing at around 9 per cent per annum.” The use of plastic in the first decade of this century is “likely to approach the quantity produced in the entire century that preceded.” Earthbound Farm and Naked Juice announced recently that it is packaging some of its products in 100 post-consumer recycled (PCR) content. Both companies use PET plastic, the most recycled plastic. The companies are the first food and beverage companies to use 100 percent PCR content.

Naked Juice is converting its 32 ounce bottles to reNEWabottle this month, and will switch all plastic packaging to PCR in 2010. When it uses only PCR content, 8.1 million lbs. of virgin plastic will be recycled.

Earthbound Farm converted plastic containers for its salads to 100 percent PCR plastic. The company estimates that its switch to PCR content will converse 424,000 million BTUs of energy and 68,307 gallons of watter, plus will reduce carbon emissions by 16,191 tons.

“We started farming organically because we were concerned about the personal and environmental health effects of farming with chemicals”, said Myra Goodman, co-founder and executive vice president of Earthbound Farm. “Organic farming has really positive effects, but we know we have to do more. More ecological packaging is an important next step; one we hope others will soon follow. “

“Our decision to switch to post-consumer recycled packaging is one of many steps we have taken on our long journey of challenging the industrial status quo,” said Chad Smith, manager of Earthbound Farm’s Sustainability Initiatives. “There are many opportunities to create a larger U.S. market for PCR materials, which is essential to reducing what we’re putting in landfills. We hope that other companies will see the value in adopting packaging solutions with PCR content and that consumers will make the decision to seek out PCR packaging when shopping. Working in tandem these steps will create the manufacturing demand needed for post consumer recycled materials,” he said.

“The transition to 100 percent post-consumer recycled bottles is a major milestone that we have worked hard to achieve. It’s important for the earth, and that’s important to our consumers,” said Mikel Durham, general manager of Naked Juice. “If you were plastic, wouldn’t you like to come back as a Naked Juice bottle? With the new Naked reNEWabottle, consumers can reduce, reuse, recycle…reincarnate!”

“Closing the loop on packaging is fundamental to a vision for more sustainable packaging,” said Anne Johnson, director of the Sustainable Packaging Coalition at GreenBlue. “Utilizing 100 percent recycled material in a juice bottle that can be collected and recycled yet again is a step in making this vision a reality. This innovation sends a signal to the market that there are end markets for materials if we recycle more.”

Senators to Introduce Legislation Banning Electronics Sales to Iran

2009-06-29T20:00:00.000-07:00

Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) announced last Friday they will introduce legislation that would prohibit government contracts with any company selling technology to the Iranian regime which helps it monitor its citizens.

Schumer and Graham will introduce the legislation sometime this week.

The Wall Street Journal reported last week that the Iranian government bought technology from Nokia Siemens Network, a joint venture of Nokia and Siemens, which enables them to monitor phone calls and internet activity.

“It is utterly outrageous that Western companies sell equipment that allows the Iranian government to spy on their citizens, prevent communications between citizens and thwart any type of uprising against the regime,” Schumer said in a press release. “This legislation is going to crack down on these companies so that we can do our part in preventing this regime from controlling the Iranian people.”

“Our proposal and legislation would weaken the Iranian regime’s ability to control the Internet,” Graham said. “The Internet has proven to be one of the strongest weapons in the hands of the Iranian people seeking freedom and trying to chart a new destiny for their country. Companies that provide technology to the Iranian regime to control the Internet must be forced to pay a heavy price. Our legislation is a constructive proposal that empowers the people of Iran and weakens the regime.”

Senators Schumer and Graham sent a letter to Secretary of State Hilary Clinton calling on her to “urge the European Union to restrict the sale of equipment and services to Iran that could be used to monitor, control, and suppress the private communications and free expression of the Iranian people.”

Related articles:
Why Companies Must Consider Human Rights

Nestle Cookie Dough Scare Shows Need for More Regulation

2009-06-27T23:02:00.000-07:00

The latest E. coli contamination is open us. Last year it was food with peanuts, and a few years ago it was spinach. Now it is cookie dough.

The Food and Drug Administration (FDA) posted a warning on its website on June 19 about Nestle's Toll House cookie dough possibly being contaminated with E. coli O157:H7. As a result, Nestle recalled 47 varieties if Toll House cookie dough 24 hours later. The Center for Disease Control (CDC) and the FDA are conducting a joint ongoing investigation.

The CDC reported that since June 25, 69 people have been infected with the E. coli strain in 29 states. Thirty-four people have been hospitalized, and nine developed the serious complication Hemolytic Uremic Syndrome (HUS).

William Keene, Oregon's chief epidemiologist, is certain the cookie dough is the source of the E. coli contamination. "Virtually everyone (who got ill) ate the same brand of cookie dough," he said. "I have absolute confidence in the conclusion."

Nestle posted a press release on its website, VeryBestBaking that stated the company will "continue to cooperate fully with the FDA and CDC in this investigation." According to a Wall Street Journal (WSJ) article, Nestle officials refused to give the FDA access to "pest control records, environmental testing programs and other information."

The article sites a September 2006 visit by the FDA to Nestle's Danville, VA plant that refused to allow the inspector "to review consumer complaints or inspect its program designed to prevent food contamination." During the visit the inspector found dirty equipment and "three live ant-like insects" on a ledge. A year later, another FDA inspector wrote after a visit that plant officials would not allow the "firm's consumer complaint file" to be reviewed, would not allow photos to be taken, and refused "to sign affidavits or receipts," and refused "to provide specific information on interstate commerce." Legally companies do not have to allow access to such records.

In May, the House Energy and Commerce Committee approved the Food Safety Enhancement Act (HR 2749), which would give the FDA greater regulatory powers over the country's food supply and food providers. It would grant the FDA the authority to "regulate how crops are raised and harvested, to quarantine a geographic area, to make warrentless searches of business records, and establish a national food tracing system," according to the website, Open Congress. The bill would also impose a $500 annual registration fee on all food plants.

Why Companies Must Consider Human Rights

2009-06-24T01:22:00.000-07:00

The recent uprisings by the Iranian people, and the subsequent brutal treatment by their government, is highlighting the necessity of business taking human rights into consideration before doing business with a government.

The Iranian government bought technology that is enabling them to monitor phone calls and internet traffic from Nokia Siemens Network, a joint venture of German based Siemens, and Finnish based Nokia Corp. Until now, the Iranian government has not fully used its capability to monitor its citizens until the recent uprising, according to an article in the Wall Street Journal yesterday.

"We didn't know they could do this much," said a network engineer in Tehran. "Now we know they have powerful things that allow them to do very complex tracking on the network."

Ben Roome, spokesperson for the joint venture, said, “If you sell networks, you also, intrinsically, sell the capability to intercept any communication that runs over them.”

When asked about selling equipment that helps the Iranian government spy on its people, Roome said Nokia Siemens “does have a choice about whether to do business in any country.” However, he said the company believes in “believe providing people, wherever they are, with the ability to communicate.”

According to the WSJ, the monitoring equipment sold to Iran is described in a company brochure as allowing “the monitoring and interception of all types of voice and data communication on all networks.” Nokia Siemens sold the company to Perusa Partners Fund 1 LP, a German-based company.

Solar Powered Bus Shelters

2009-06-17T20:42:00.000-07:00

Lighting bus shelters at night provides more safety for people. Powering the lights with solar energy saves money and carbon dioxide emissions. This week a Canadian college, McMaster University, unveiled a solar powered bus shelter. The bus shelter generates 4.5 watts which power the lighting. Green Biz characterized the solar panels on the shelter’s roof as “flexible strips” that can be installed “cheaply and easily.”

“Our goal is to provide a clean, affordable power source for bus shelters that will let transit companies run Internet-based scheduling updates,” said Adrian Kitai, a McMaster professor who guided the bus shelter project. “The solar technology can also be used to light up bus shelter signage and provide lighting for general safety.”

In 1996, Cornell University installed solar powered lights in two of its bus shelters. Passengers push a button to turn on the lights. The solar powered shelters save an estimated 25 to 30 kilowatt hours a year of energy.

Last week, San Francisco unveiled its first solar powered bus shelter. The city plans to build 1,099 more by 2013. The roof’s solar panels power the shelter’s lighting and wireless router. The shelter doubles as a WiFi center. The roof is made of 40 percent post-industrial polycarbonate material, and the steel structures from 75 percent recycled material.

Mayor Gavin Newsom said, “Transit shelters that use photovoltaics, LEDS, and WiFi are going to be standard in the future and I’m proud that San Francisco is once again acting like the pace car for other cities by trying and implementing these technologies.”

2009-06-16T01:38:00.000-07:00

Last week the CEO of Green For All, Phaedra Ellis-Lamkins, spoke at the America's Future Now conference.

America Needs to Turn Green

2009-06-16T01:30:00.000-07:00

Watch last week's MSNBC interview with the CEO of Green For All, the non-profit organization founded by Van Jones:

Visit msnbc.com for Breaking News, World News, and News about the Economy

Renewable Energy is the Future

2009-06-16T01:23:00.000-07:00

Watch the following video about wind energy:

Visit msnbc.com for Breaking News, World News, and News about the Economy

New Technology Could Lower Solar Energy Cost

2009-06-15T19:35:00.000-07:00

The Pacific Northwest National Laboratory (PNNL) developed flexible solar panels that can be installed on roofs. PNNL incorporated the same technology used to protect flat panel TVs from dampness. The flexible solar panels are known as building-integrated photovoltaics or BIPVs, and are made to last 25 years.

Research is currently being conducted to perfect the BIPVs. The Department of Energy’s Energy Efficiency and Renewable Energy Technology Commercialization Fund is providing funds for the project, which is estimated to cost $350,000. A commercial match is also needed. If the project is successful, solar panel manufacturing costs will be less than $1 per watt of power, a utility would charge customers 10 cents per kilowatt hour.

Mark Gross, a PNNL senior scientist, said, “There’s a lot of wasted space on rooftops that could actually be used to generate power. Flexible solar panels could easily become integrated into the architecture of commercial buildings and homes. Solar panels have had limited success because they’ve been difficult and expensive to install.”

Sustainable Packaging Market is Growing

2009-06-15T19:16:00.000-07:00

Sustainable packaging is a growing market despite the down economy. Sustainable packaging will be 32 percent of total global packaging market by 2014, up from its current 21 percent, a study released last month by Pike Research said. Plastic based packaging will be fastest growing sector of the sustainable packaging market. It is currently 35 percent. Metal based will be more than 63 percent by 2014. Paper-based packaging is the largest sector with over 40 percent of market.

Food consumers want three things from food manufacturers: fresher ingredients, increased health benefits, and more environmentally friendly packaging, according to a new study by Ipsos Marketing. The study was based on an online survey of 23,000 consumers from 18 countries.

“We are seeing a global consumer movement toward heightened consciousness of health, wellness and environmental factors in their food purchasing decisions,” said David Pring, executive vice president of the global consumer goods division of Ipsos Marketing.

Pring continued, “These are key developments in the food market, and not just in North America and Europe. We are also seeing that taste, convenience and product difference – aspects that were probably more characteristic of food product drivers towards the end of the last millennium – are taking a back seat in a world now more focused on making a positive impact on freshness and health as well as the sustainability of the planet.”

“The move toward sustainable packaging represents a broad-based effort by manufacturers, retailers, industry groups, and governments to promote the design of minimal packaging that can be easily reclaimed,” said managing director Clint Wheelock. “A tremendous amount of innovation is going into reducing energy requirements to manufacture packaging and using more recyclable and compostable materials, but there is still a long way to go.”

What is a Conscious Consumer?

2009-06-14T19:16:00.000-07:00

A conscious consumer "makes informed buying decisions that reduce their environmental impact," according to the non-profit organization, New Dream. In order to find out more about conscious consumers, New Dream conducted a survey of 2,271 of their affiliates. The survey asked questions about buying habits, lifestyle choices, and activism.

Eighty-seven percent of the respondents said they were making efforts to lead a more sustainable life. Of the 87 percent, 81 percent buy green household products, and 88 percent discontinued purchasing plastic water bottles. Seventy-eight percent have considered or have become a vegetarian, 90 percent drive less, 93 percent reduce utility use, and 87 percent conserve water.

Sixty-four percent of all respondents rated “living in accordance with their values” as a “very important” motivation for consumer decisions. Seventy percent said they had contacted politicians or agencies at least once in the last two years, only three percent said sustainability, health and justice never affected how they vote.

Researchers in Britain found the following results when conducting similar surveys:

Conscious consumers tend to understand their practices as expressive of political orientations and as political actions in themselves
Many conscious consumers see the expansion of alternative and ethical options in the marketplace as a successful result of the efforts of conscious consumers like themselves
Conscious consumers tend to see themselves as part of a broader network of citizens and not as atomized consumers in the marketplace

National Geographic and the international polling firm GlobeScan conducted a survey about sustainable consumption of 17,000 consumers in 17 countries. The survey found an increase in "environmentally friendly consumer behavior" in 13 countries from last year. Developed countries ranked ninth to thirteenth, with developing countries occupying the top spots.

Consumers in 11 of the countries surveyed are more likely to keep the heating and cooling settings lower to save energy. Consumers are also more likely to wash laundry in cold water to save energy.

Better Climate Risk Disclosure Needed

2009-06-12T19:02:00.000-07:00

Two recent reports by the Environmental Defense Fund (EDF) indicated that the SEC needs to require better climate risk disclosure from companies. One of the reports, Reclaiming Transperancy characterizes itself as the “most exhaustive empirical analysis of climate disclosure conducted to date." The report consisted of a systematic analysis of almost 6,400 10K filings by S&P 500 companies from 1995 to the present. According to the report, "there is an alarming pattern of non-disclosure by corporations regarding climate risks."

Some of the key findings of the report are as follows:

76.3% of annual reports filed by S&P 500 companies in 2008 failed to include any mention of climate change
Only 5.5% of annual reports filed by the S&P 500 in 2008 identified at least one risk posed by climate
Less than 10% of S&P 500 companies in the financial sector discussed climate change 10K reports filed in 2008
Only 3.2% of utilities sector companies failed to mention climate change in 10‐K reports filed in 2008

The second report, Climate Risk Disclosure evaluated climate risk disclosure by 100 global companies in five sectors: electric utilities, coal, oil and gas, transportation, and insurance. The report found that there is "very little disclosure." In fact, 59 of the companies surveyed did not mention their greenhouse gas emissions or their position on climate change, and 52 did not mention their actions to address climate change.

Although all six coal companies surveyed included some disclosure of climate risk, only one achieved a fair score in any of the three analyzed categories. Oil and gas companies did not do much better. While most of the 23 companies surveyed did provide some disclosure on climate risk, none of them achieved a fair ranking.

Transportation companies fared better. Five out of 19 transportation companies disclosed their GHG emissions, and none of them were ranked fair. Sixty-eight percent provided some disclosure in each of the analyzed categories.

The insurance companies surveyed provided the least amount of disclosure in all categories. Eighteen out of 27 companies did not mention climate change in their SEC filings. Twenty-three of the companies did not disclose their emissions or a statement on climate change, and 24 of them did not disclose their actions to address climate change.

"These findings are a clarion call for quick SEC action to require better climate risk disclosure from publicly-traded companies,” said Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk. "Climate change is a bottom line issue and investors have a right to know which companies are best positioned for the emerging clean energy global economy."

FTC Cracking Down on Greenwashing

2009-06-11T18:02:00.001-07:00

The Federal Trade Commission (FTC) is finally cracking down on greenwashing. The FTC charged three companies (Kmart, Tender Corp., Dyna-E International) with making false claims about paper products labeled "biodegradable" during testimony before the U.S. House Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce.

Kmart labeled its American Fare brand paper plates "biodegradable," but agreed to remove the label. Tender Corp. labeled its Fresh Bath brand wipes "biodegradable," and Dyna-E International labeled its paper towels "biodegrabable." Tender also agreed to remove the label "biodegradable" from its products. The case against Dyna-E International will enter into administrative litigation.

Appearing before the House Subcommittee, James A. Kohm, Associate Director of the Enforcement Division in the Bureau of Consumer Protection at the FTC, said the FTC "alleged that the companies could not substantiate that their products would decompose into elements found in nature within a reasonably short period of time after customary disposal." Kohm said the "substantial majority" of the products, after being used, end up "disposed in landfills, incinterators, and recycling facilities."

The FTC said in its complaints, "American Fare paper plates will not completely break down and return to nature, i.e., decompose into elements found in nature, within a reasonably short period of time because a substantial majority of total municipal solid waste is disposed of by methods that do not present conditions that would allow for American Fare paper plates to completely break down."

During Kohm's testimony he mentioned the FTC filed charges against other companies, including home insulation companies for "overstating theinsulating properties of their products." He also mentioned that the FTC took action against companies marketing a devices which they claim "dramatically increase gas mileage in ordinary cars."

Since 1992, the FTC has published "Green Guides" about green marketing. Last year it held three workshops about how to better protect consumers from deceptive marketing, including greenwashing.

Better Packaging Needed

2009-06-07T22:38:00.000-07:00

Less packaging equals lower costs and fewer greenhouse gas emissions. During the Greener by Design 2009 conference, designer Wendy Jedlicka talked to Hewlett Packard's Uri Kogan and Frito-Lay's Knoerzer about how companies are rethinking packaging.

Greener By Design 2009

2009-06-06T10:00:00.000-07:00

Watch the coverage of the Greener By Design conference:

What is Hara’s Environmental and Energy Management Software?

2009-06-05T18:38:00.000-07:00

Image from Flickr, by Jeremy Higgs

On Monday, the 18-month old company, Hara debuted their Environmental and Energy Management (EEM) software online. The EEM software identifies how efficient and eco-friendly a business, organization or government’s operations are with energy, water and waste.

Based in Menlo Park, California, Hara was founded by Amit Chatterjee and Ajit Nazre with $6 million in venture financing from Kleiner Perkins Caufield & Byers. Coca-Cola Company and Palo Alto (a Northern California city ) have used Hara’s EEM software. According to Hara, Palo Alto saved $2 million by using the EEM software.

According to the website, Crunchbase, EEM is made up of the following modules:

Discover – Aggregate environmental record information from relevant data sources in order to provide a comprehensive view of resource consumption, greenhouse gas emissions, and environmental impact.
Plan – Define strategies, optimize planning decisions, forecast reductions, identify objectives and metrics, and calculate timing and benefits for each initiative.
Act – Manage the execution of environmental and energy programs, track results per initiative, and create an audit trail for any current or future regulatory requirements.
Innovate – Implement the Hara methodology and leverage best practices for continuous improvements and business transformation.

Hara means “fresh green” in Sanskrit. Chatterjee said Hara’s vision is to “enable a post-carbon economy in which organizations can grow and profit without depleting the earth’s resources.” insight, good analysis, and good data,” said Jacob.

“We have the opportunity to write the encyclopedia of environmental efficiency, creating an unprecedented body of knowledge that will influence environmental impact reduction initiatives for years to come,” said Chatterjee. “We indicate how healthy a business is at consuming natural resources.”

“I'm not easily impressed," said Bryan Jacob, director of energy management and climate protection for Coca-Cola. However, after a presentation by Hara, he said to his boss, “I think we need to put this package into a test.”

Hara’s EEM software provides “effective environmental management requires good insight, good analysis, and good data,” said Jacob. “Hara goes beyond what so many other tools do. It helps calculate the inventory, establish the strategic targets, and has initiative-tracking features.”

“We're not finding a lot of resistance to the pricing,” said Nazre. “What is resonating with the customers the most is: how quickly will it pay for itself?”

Patagonia: A Sustainable Sportswear Company

2009-06-03T19:11:00.000-07:00

"Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis," reads the mission statement of sportswear clothing company, Patagonia. The Ventura, California based company makes sportswear from "environmentally sensitive materials" such as organic cotton and hemp. To date, Patagonia has given $34 million to environmental organizations.

Patagonia completed construction earlier this year on a 171,000 square foot LEED Gold-certified addition to its Reno, NV distribution center. The addition contains a modular conveyor system which uses 30 percent less energy and increases operational efficiency by 20 percent. The addition is heated with a radiant heating system, which uses copper tubes filled with hot water.

In constructing the addition, Patagonia went beyond the LEED Gold-certification requirements:

Used 100 percent light-colored concrete instead of asphalt in parking lot and driveways. LEED requires 30 percent to be certified.
Uses 40 percent less water by installing water efficient toilets, waterless urinals, and bathroom faucets that automatically turn off. (LEED requires 30 percent.
Fifty percent of the materials used to construct addition were manufactured within a 500 mile radius. LEED requires 20 percent.
All the wood used was Forest Stewardship Council (FCS) certified. LEED requires 50 percent.

“Whether we're designing a new product, sourcing contract manufacturing sites, or building a new distribution center, everything we do goes back to the mission statement,” said Dave Abeloe, director of the Reno facility. “We ask ourselves: 'What are we trying to accomplish with this project, and how can we do that while adhering to our values?'”

Watch the video about Patagonia's addition to its distribution center:

What is Open-Sourced Green Building?

2009-06-03T17:31:00.000-07:00

Open-sourced green building sounds like an oxymoron. However, FreeGreen.com provides open-sourced green building designs. Started in April 2008, the year-old company opened up its website for architects to upload their designs and set the price for them.

A New York Times blog post characterized FreeGreen as a “service that offers what most developers won’t: green home plans to home-buyers.” The blog post also called it a "bottom up approach to innovation."

Every design on FreeGreen is created to reduce energy usage 30 to 50 percent of local building codes. “We made a ubiquitous decision in the way we handle the company,” said David Wax, co-founder and CEO. “We were not going to be the arbiters of green design. We don’t want a FreeGreen standard. That's not what we are. We are an information provider.”

The website is blunt about FreeGreen revenue source, “FreeGreen would not exist without paid placement from product manufacturers, and all product or service provider placements should be considered advertising.” Most of company’s revenues come from paid product placements in the free building designs.

The company is selective about the products they choose. The open sourced building designs that architects upload are also a revenue source. FreeGreen receives 20 percent of the sales revenue. Information is provided about every product listed in a plan, including its point ratings in the LEED-H, and NABH Green Building standards.

The Importance of Energy Efficiency

2009-05-22T21:07:00.000-07:00

Energy use accounted for 82 percent of U.S. greenhouse gas (GHG) emissions in 2006, according to the Department of Energy (DOE). Energy efficiency is the best and quickest way to reduce GHG emissions. A report released last week by the American Council for an Energy Efficient Economy detailed how deploying semiconductors technologies generated “sizeable energy productivity benefits.”

The U.S. economy has grown by over 60 percent in 20 years, but energy demand only increased by 20 percent. The energy needed to produce $1 of the U.S. GDP continually decreased because of technological innovations. The ACEEE report predicts future innovations will continue the trend.

The report calculated that the “cumulative electricity bill savings enabled by semiconductors” may be greater than $1.3 trillion through 2030, and reduce carbon emissions by 700 million metric tons. In 2006, the “entire family of semiconductor-enabled technologies” created net savings of about 775 billion kilowatt hours (KWh). If 1976 technologies were used now another 184 power plants would need to be built.

Overcoming barriers to energy efficiency

There are barriers to overcome in regards to increasing energy efficiency. One of the main barriers is the lack of knowledge about efficiency opportunities, according to Midwest Energy. Midwest conducts free energy audits for their customers in order to demonstrate the importance of energy efficiency.

Another barrier is large upfront capital expenditures. Midwest pays the upfront cost of their customers’ efficiency upgrades, and customers repay the utility company via a monthly charge on their energy bill. However, the repayments are less than monthly energy savings, so the customers will still see a reduction in their bill.

The stimulus funds for power companies

The American Recovery and Reinvestment (ARRA) provides billions of dollars in federal funding and tax incentives for power companies to increase energy efficiency. Power companies can improve their infrastructure and facilities, or deliver efficiency programs and energy savings to customers with ARRA funds.

In 2008, the State Energy Program (SEP) received $44 million. ARRA waived a 20 percent cost share for states, and waived the provision that had limited capital investments to 50 percent of SEP funds. The funds from SEP are given to state energy offices. Energy efficient projects are funded through SEP.

The Energy Independence and Security Act of 2007 authorized the Energy Efficiency and Conservation Block Grant (EECBG), whose main purpose is to improve energy efficiency. Previously unfunded, ARRA provided $3.2 billion for EECBG.

The Weatherization Assistance Program has been around since the 1970s. ARRA provided $5 billion for the program in order to meet President Obama’s campaign promise to weatherize a million homes a year.

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Make the Building Sector More Energy Efficient

2009-05-21T18:24:00.000-07:00

Buildings account for 40 percent of global energy use, according to a recent report for the Energy Efficiency in Buildings (EEB) project by the World Business Council for Sustainable Development. The EEB project, which began in 2006, focuses on six world regions: Brazil, China, Europe, India, Japan, and the U.S. The six world regions represent nearly two-thirds of the world's energy use. The estimated growth in all six EEB is 76 percent.

The International Energy Agency calls for buildings globally to contribute 17 percent of emissions reductions below business-as-usual (BAU) by 2050. The U.S. will need to be at least 80 percent below BAU by 2050 to meet the goal. The report suggests six ways the building sector can take action to reduce its energy use:

Strengthen codes and labeling for increased transparency
Incentivize energy-efficient investments
Encourage integrated design approaches and innovations
Develop and use advanced technology to enable energy-saving
behaviors
Develop workforce capacity for energy saving

Cutting energy in the retail sector will help the U.S. meet the IEA's goal. The report lists recommendations, including the following:

Audit the energy performance of retail buildings
Enforce building codes
Introduce subsidies for achieving high performance in buildings
Regulate to phase out low performing buildings
Get retailers to participate in energy awareness campaigns
Use R&D to lower first cost and increase energy savings
Introduce process incentives for developers so they will adopt integrated design approaches which achieve high energy efficiency
Promote onsite renewable generation for all new retail developments

The sheer number of shopping malls in the U.S. means energy use needs to be cut in that sector. The report recommends the following:

Smart metering will make stores in the mall aware of their energy use and motivate them to take action
Install solar photovoltaic (PV) panels to replace some electricity from the grid
Make changes to lighting inside and outside the mall
Improve the cooling and ventilation systems
Shade external glass

Sustainability is Important to America's Biggest Cities

2009-05-17T22:34:00.000-07:00

The majority of Americans live in cities. According to the 2000 Census, 79 percent live in urban areas. Cities are where construction takes place, and where traffic congestion takes place. It is in cities where most greenhouse gas (GHG) emissions occur.

Over 75 of the 40 biggest cities in the U.S. say they either have plans to reduce their greenhouse gas GHG emissions or are developing them, according to a new report by Living Cities. Eighty percent of the cities surveyed listed sustainability as one of their top five priorities. Only one in six cities said sustainability is not a top priority.

Four in ten cities believe their efforts to encourage and mandate green building is among the most advanced. Two-thirds of cities mandate LEED silver standards for new city-owned or city- funded construction. One in four cities has green building mandates that go beyond city buildings and apply to private construction.

One-fourth of cities reported success in recycling, water conservation, and greening their vehicle fleets. Three out of ten reported advancements in energy conservation.

One in three cities surveyed have begun to develop green jobs training programs with local colleges. One in six already has such a program in place. Nearly all cities surveyed would like to attract green-collar jobs and industries.

Between one-fourth and one-half of cities surveyed said they are investing in building new light rail, adding streetcar or subway lines, expanding local bus systems, encouraging walking and cycling, and subsidizing public transportation for city employees.

There’s still room for improvement

In each of the survey’s three main areas (green building, green jobs, and green transportation), the report lists recommendations. One of the main ways cities can support green building, including retrofitting, is to “gain access to systems with sufficient capacity to fund” projects.

There’s still room for improvement

In each of the survey’s three main areas (green building, green jobs, and transportation), the report lists recommendations. One of the main ways cities can support green building, including retrofitting, is to “gain access to systems with sufficient capacity to fund” projects.

Green job training programs need to provide “not only job placement services but also continued career advancement.”

Cities need to encourage density to reduce commuting and encourage residents to use public transportation. Denser development leads people to drive 20 to 40 percent less, according to recent research.

Portland Oregon: the most sustainable city

Last year, SustainLane ranked the top 25 sustainable U.S. cities. The number one spot went to Portland, Oregon. The city has strict land-use policies, and an urban growth boundary. The goal of Portland is to be a “20 Minute City,” where residents spend 20 minutes or less commuting from home to work.

Last September, Portland Mayor Tom Potter said, “Portland's support of local farmers and farmers' markets; its explosion of green buildings and commitment to renewable energy, and its emphasis on mass transportation, including light rail and bicycles, shows that a city can not only be kind to the earth, but also flourish economically and grow by being green.”

Study Shows Bioelectricty Better Than Ethanol

2009-05-17T20:03:00.000-07:00

A new study concluded that vehicles powered by bioelectricity provided 80 percent more miles of transporation per crop acre than vehicles running on ethanol made from corn or switchgrass. Conducted by researchers from Stanford University and the University of California, Merced, the study looked at the lifecycle of bioelectricity and ethanol technologies.

In miles per acre, bioelectricity powered vehicles performed better. The output of bioelectricity powered vehicles is on average 112 percent greater than ethanol, and can prevent or offset the release of up to 10 tons of carbon dioxide per acre.

In one example, a small truck powered by bioelectricity could travel almost 15,000 miles while the internal combustion equivalent only traveled 8,000 miles. In another example, a small SUV with an internal combustion engine traveled about 9,000 highway miles, while the bioelectricity powered one traveled 14,000 highway miles.

"The internal combustion engine just isn't very efficient, especially when compared to electric vehicles," said co-author Eliott Campbell of U.C. Merced "Even the best ethanol-producing technologies with hybrid vehicles aren't enough to overcome this."

"We found that converting biomass to electricity rather than ethanol makes the most sense for two policy-relevant issues: transportation and climate," said co-author David Lobell of Stanford. "

Obama estabishes the Biofuels Interagency Working Group

Earlier this month, the Obama administration establish the Biofuels Interagency Working Group to advance biofuels research. President signed a Presidential Directive to established it, and announced that it would receive $786.5 million from the American Recovery and Reinvestment Act (ARRA).

"We must invest in a clean energy economy that will lead to new jobs, new businesses and reduce our dependence on foreign oil," said President Obama. "The steps I am announcing today help bring us closer to that goal. If we are to be a leader in the 21st century global economy, then we must lead the world in clean energy technology. Through American ingenuity and determination, we can and will succeed."

According to a White House press release, the group will deveop a comprehensive biofuel market development program, coordinate infrastructure policies impacting the biofuel supply, and identify new policy options to promote the environmental sustainability of biofuels.

Energy Efficiency Investments Declined Last Year

2009-05-14T20:55:00.000-07:00

Last week the results of the third annual Energy Efficiency Indicator survey were released. The survey is conducted by Johnson Controls Inc. and International Facility Management Association.

For the second year in a row, the survey showed businesses are spending less on energy efficiency. However, 71 percent of survey respondents said they are paying more attention to energy efficiency than they were a year ago. Last year, 72 percent said they paid more attention to energy efficiency.

Although 58 percent said energy management is very or extremely important, only 46 percent expect to make energy efficiency improvements financed with capital expenditures, down from 56 percent in 2008. Sixty percent expect to spend less than ten percent of their facilities related budgets on energy efficiency.

Respondents cited limited capital availability (42 percent) and unattractive paybacks (21 percent) as the two biggest obstacles to enacting energy efficiency projects. Almost 50 percent require payback periods that are less than three years.

Sixty percent think that natural gas and electricity prices will increase over the next year, down from 80 percent in 2008. Thirty-one percent do not expect prices to increase.

The majority of respondents (85 percent) think that legislation mandating energy efficiency and carbon reduction is likely within the next two years. Forty-four percent said government incentives are extremely influential in making energy efficiency decisions.

"I think we'll see substantial change next year," said C. David Myers, president of Building Efficiency for Johnson Controls. "And I think that change will be action where activity was laggard this year. I also think there will be a better economic environment next year compared with what you see today."

Businesses Affected By Healthcare Costs

2009-05-11T18:31:00.000-07:00

Healthcare costs continue to increase. Over the past decade, insurance premiums charged to employers increased 119 percent, four times faster than wage increases. During 2002 to 2007, health insurance premiums for employers increased almost five times faster than inflation.

For every $100 spent in the U.S. on healthcare, five countries (Canada, Japan, Germany, U.K., and France) spend only 63 cents, according to a recent study by the Business Roundtable. Most Americans, 170 million, receive health insurance through their employer. Based on a survey of 428 companies, 46 percent of employers plan to shift healthcare costs to their employees in 2010.

"While today's economic challenges span the globe, companies in other countries may be better able to weather the storm in part because the value that their healthcare systems deliver," said Business Roundtable Chairman Harold McGraw.

Another recent survey by the Robert Wood Johnson Foundation revealed that 36 percent (one in three) of small business owners said rising healthcare costs will likely cause them to cut some of the benefits for their employees. Almost half (42 percent) said "making health care more affordable" should be priority for federal government.

The number of small businesses that provide health insurance is decreasing every year. In 2007 it decreased by 59 percent in 2007, in 2000 it decreased by 68 percent, according to the Kaiser Family Foundation.

“Many small business owners have already reduced their health benefits and asked employees to pay a larger share of the premium, and still they struggle with the ever-increasing costs,” said Risa Lavizzo-Mourey, M.D., president and CEO of the Robert Wood Johnson Foundation. “They want health care reform that reduces the burden on their business and where all Americans have affordable health insurance.”

Small businesses are more affected by rising healthcare costs. Small businesses pay 18 percent more for health insurance than large companies, according to a January 2009 study by the Commonwealth Fund. In 2006, 35 percent of businesses with fewer than 10 workers offered health insurance, but 98 percent of companies with 1,000 or more employees did.

What do CEOs really think of employer-based health coverage?

"There are employers that don't want the responsibility, and we are in that category," said Carl T. Camden, CEO of Kelly Services (KELYA). "My health-care costs total more than my profits.

"CEOs overwhelmingly want out of this business," said Benjamin Sasse, an Assistant Secretary of Health & Human Services under President George W. Bush . "They just do not want to be seen as more willing to dump [benefits] than their competitors are."

"CEOs are focused on the bottom line," said Len Nichols, director of health policy at the New America Foundation. "They know high health-care costs put U.S. companies at a competitive disadvantage."

James Hagedorn, CEO of Scotts Miracle-Gro (SMG), said, "If someone said to me, 'you can pay the same amount [for health care] and we will redeploy to a national system,' I'm fine. Why would I argue with that?"

Steps to Greening Your Office

2009-04-19T22:16:00.000-07:00

Sustainable Industries recently published its Green Office Guide. The Guide could not come at a more oppurtune time. Paper usage is increasing about 20 percent a year. A typical office uses about 1.5 pounds of paper a year per person. Commuting to work makes up 20 percent of of all personal vehicle use, and 93 percent of Americans commute to work using their personal vehicles. About 30 percent of the energy used by U.S. buildings is done inefficiently.

If you want to make your office space environmentally friendly, the Green Office Guide published by Sustainable Industries, suggests seven steps you can take.

1. Start by creating a green team. Your green team should include personnel from company's management team and financial department. The purpose of the green team is to set goals and monitor progress.
2. After you have created a green team, the Guide suggests consulting with a professional. It can be hard to find a professional. Ask your city government if they offer free services to businesses who want to green their operations.
3. Choose which measure to tackle first.
4. Consider what measure will give you the greatest improvements in environmental impact and operations costs.
5. Set timely goals. The Guide recommends a plan that will reduce your company's energy consumption by six percent a year over the next three years.
6. Get everyone in your company on board.
7. Communicate your successes.

Paper use

Here are a few ways to reduce paper use:

1. Set your office printers to print on both sides of paper.

2. Print more on a piece of paper by setting the margins 1.25 inches to 1 inch. This will reduce paper use by up to eight percent.

3. Proofread before you print.

Commuting

Encourage your employees to carpool by starting a rideshare match program. A rideshare match program helps potential carpoolers find each other.Consider pairing the rideshare match program with a cash benefit program.

Meetings

One way to make your company meetings more environmentally friendly is to do web-meetings whenever possible. If that is not possible then select a hotel from environmentallyfriendlyhotels.com. Make sure the hotel your choose is near public transportation.

Facilities

There are some easy things you can do to make your office more energy efficient. Make sure lights are turned off in a room when no one is in there. Turn off all computers and computer equipment every night before leaving. Replace light bulbs with compact flourescent lights (CFLs).

Water efficiency is also important. Installing low-flow toilets and motion sensors for faucets will save water.

Green Office Buildings Save Money, Make Money

2009-04-09T16:25:00.000-07:00

A recently published report titled, Doing Well, Doing Good: An Analysis of the Financial Performance of Green Office Buildings in the USA by the Royal Institution of Chartered Surveyors (RICS) concluded that green buildings with Energy Star ratings generate premium rents. However, the report did not find that LEED-rated buildings generated premium rents. The report suggest that tenants and investors will pay for for an energy-efficient building, but not for one that is "advertised as sustainable in a broader sense."

The building sector accounts for about 40 percent of raw materials and energy consumption, and for at least 30 percent of world greenhouse gas emissions. Constructed buildings use energy, and energy is 30 percent of office building expenses, "the single largest and most manageable operating expense in the provision of office space."

Green buildings result in an aggregate premium of three percent per square foot compared to identical (average) buildings. Effective rents, rents adjusted for building occupancy levels, result in rent premiums of over six percent. This implies, according to the report, that greening an existing building increases its value by "some $5.5 million."

Increasing energy efficiency by 10 percent is associated with a 0.2% increase in effective rent. This is in addition to the six percent rent premium. A $1 savings in energy costs from increased thermal efficiency results in about $18 worth of "increased valuation."

The report cites four economic benefits from investing in green buildings:

1. Saves money spent on energy, water and waste disposal, insures against future energy price increases

2. Improving indoor environmental quality may result in higher employee productivity

3. A green corporate building might create a positive corporate image

4. Green buildings may have longer economic lives due to less depreciation and lower volatility in market value

Small Businesses Don't Have the Green to Go Green

2009-04-07T18:23:00.000-07:00

Small businesses are taking small steps to become more environmentally friendly, according to the Small Business Index survey by Wells Fargo and Gallup. The majority said they are doing at least "everything that can be justified by cost.” However, 67 percent think their customers will not pay more for environmentally friendly goods and services. In April 2007, 49 percent thought customers would pay more.

Only 37 percent of respondents actively show their green credentials to customers, down from 47 percent in April 2007. The number one reason for showing their green credentials was "as part of a personal commitment or responsibility." The second reason was for public relations purposes, and the third reason was attracting customers.

One-third of the respondents said the current economic situation affected their plans to become more environmentally friendly. Seventeen percent said their companies are doing "very little or nothing at all"to become environmentally friendly.

There is good news. Over the last year, almost 90 percent participated in recycling, and over three-quarters (77 percent) switched to more environmentally friendly products. Thirty-two percent said they used some form of alternative transportation (other than a car).

Forty-five percent said they assessed how much energy their company uses. Sixty-eight percent switched to energy-saving appliances, light bulbs or vehicles. Forty-five percent percent believe specific actions can be taken by their company to improve environment.

The survey has been conducted for the last 23 quarters. The current survey was conducted on January 22-February 2. It was based on 604 small business owners across the U.S.

“Going green’ has been good for the environment, and even better for our bottom line,” said Marion Hook, owner of the Adobe Rose Inn, a bed and breakfast in Tucson, Arizona. “We know that the money we’ll save long-term by making even small changes, such as using cisterns, florescent light bulbs and solar tubes, will far outweigh the short-term costs. We also find that our guests appreciate our efforts, and happy guests lead to repeat customers. ‘Going green’ is a part of a long-term strategy, and it will help keep our business financially sound, now and in the future.”

“At Wells Fargo we recognize the importance of integrating environmental responsibility into business practices and procedures,” said Marc Bernstein, head of Wells Fargo’s Business Direct lending and Small Business Segment. “We know that the contributions of small business owners are a vital part of the overall success of the economy, and in much the same way, we know their contributions can make a real difference in the state of the environment.”

Recent surveys indicate customers will pay for green products

Recent surveys indicate that customers are willing to pay more for environmentally friendly products and services. A Forester survey said 18 percent of customers would pay more for environmentally products, and recent Carbon Trust research said customers think its important to buy from environmentally responsible companies. In a Yahoo survey, 77 percent described themselves as green, and 57 percent said they made a green purchase in the past six months.

Four out of five respondents in an Opinion Research Survey said they are still buying green products and services despite the recession. In a 2009 Cone Consumer Environmental Survey, 34 percent said they are more likely to buy environmentally responsible products. Forty-four percent said their environmental shopping habits not changed much, and only eight percent said they are less likely to buy environmentally friendly products.

In a Consumer Electronics Association survey, 33 percent said they expect to make some type of green electronics purchage within next two years. Fifty-three percent said they would be willing to buy a television with green attributes, and 89 percent said energy efficiency would be a factor in choosing their next television.

The Current State of Green IT

2009-04-04T20:42:00.000-07:00

Almost three in five executives interviewed by CFO Research Services said that their company devotes at least five percent of its IT budget for green projects. Over one-third said their company allocated 15 percent or more to green IT projects. However, one in five did not know how much of their company’s budget is spent on green projects. The survey was published as a report titled, The Next Wave of Green IT.

The majority of executives said their companies took early steps to “lessen their environmental impacts. ” Over nine out of ten companies made “incremental” or “aggressive” steps to lessen the environmental impacts. Two-thirds said their company has a formal program in place to monitor and measure its environmental performance. Over 90 percent said their company has taken “aggressive” or “moderate” steps to improve its environmental performance.

According to the respondents, in order for companies to have a more “structured approach” to Green IT policies, they will need to overcome:

A lack of information and trusted practices (44 percent)
The inability to build a solid business case for green IT investments (42 percent)
Shortage of capital and well qualified talent (41 percent)

The respondents expressed concerns for future risks. Fifty-six said that “decreasing the impact of energy market volatility on company operations and performance” is very important. The majority said “reducing exposure to environmental liabilities” and “improving compliance with environmental regulations” are very important. Fifty-nine percent identified “cultivating public perception of their company as ‘green’ and environmentally sound” as very important.

When asked where companies discussed their environmental performance with the “outside world,” respondents said:

Their annual report (62 percent)
Their annual meeting (54 percent)
A corporate social responsibility report (50 percent)

The report put respondents into two categories in order to “confirm the utility of a formal program” that measures environmental performance: 67 percent whose company had a program, and 33 percent whose company does not. Companies who have a formal program are “far more likely” to discuss Green IT projects in their annual report and at their annual meeting.

When asked if their company had quality information on IT’s environmental impact, 52 percent said their company has “complete, accurate, timely information,” and 40 percent said their company does not.

The next steps for companies who want to be part of the next wave of green IT are:

Establish a baseline measurement of current sustainability performance that is satisfactory for both IT and finance
Calculate the cost of carbon and what is at stake from the perspectives of fi nance, operations, and risk management
Align the enterprise’s tax strategy with its sustainability strategy and green investments
Determine what type of sustainability information is likely to be needed to measure progress at both the macro and business-unit levels
Assess whether or not that information currently exists
Evaluate the capabilities of current IT systems to measure, monitor, and report on sustainability criteria

U.S. Ranked 8 in Innovation

2009-03-28T18:21:00.000-07:00

"Nothing is more important than innovation. The minute we stop innovating, we die," said an executive interviewed for a recently released report by the Boston Consulting Group and National Association of Manufacturers, titled The Innovative Imperative in Manufacturing: How the United States Can Restore Its Image. The report ranked the U.S. eight among innovative-friendly countries. Singapore made the top spot.

The report cited ways the U.S. is disadvantaged when it comes to innovation, including work force quality, and economic, immigration and infrastructure policies. The U.S. government can help foster innovation by "boosting" the payback on innovation, supporting innovation activities, and improving the innovation environment.

Research and development (R&D) tax credits are important. The American Recovery and Reinvestment Act (ARRA), signed into law by President Obama in February, provides tax credits for R&D. Government grants are just as important, and the ARRA provides them for "green" projects such as renewable energy and energy efficiency.

Four ways companies can succeed in innovation

American companies know they are behind in innovation. Less than half of the executives interviewed for the report said they were satisfied with their companies innovation performance. The report suggests four ways companies can succeed in innovation: idea generation, structured processes, leadership, and skilled workers.

Idea generation. The report states simply, "Ideas matter." They do indeed matter and companies are smart to invest in innovation. Understanding customers is key, as is establishing a "company culture that supports innovation." Another key to succeeding in innovation is working with suppliers. Suppliers can be a valuable source in developing innovative products.

Structured processes. According to the report, the most innovative companies in their index are ones that excel at "generating and benefiting from new ideas." Companies need to create processes for generating ideas.

Leadership. The differentiating factor for companies that succeed at innovation is "strong, focused leadership."

Skilled workers. The most critical element to succeeding in innovation is acquiring a skilled workforce.

Partnership between government and companies needed

Action in all the areas mentioned in the report, and highlighted in this article, are in the "mutual interest of companies and government." In a depressed economy, fostering innovation becomes very important. In the words of the report, all government levels need to make innovation a "top priority and prove their commitment with concrete action."

California Legislation Would Create Product Stewardship

2009-03-11T21:50:00.000-07:00

California creates 40 million tons of waste a year. The California Product Stewardship Act or AB 283, introduced by CA Assembly member Wesley Chesbro (D-Arcata), addresses the state's waste problem. The Act would aim to reduce waste and greenhouse gas emissions. It would create the Extended Producer Responsibility Framework Program (EPRFP) which would provide incentives to producers to create products and packages that are more environmentally friendly.

According to the proposed bill, the EPRFP would encourage producers to "research alternatives during the product design and packaging phases to foster cradle-to-cradle producer responsibility and reduce the end-of-life environmental impacts."

"AB 283 moves California toward a more sustainable environment and economy," said Chesbro. "Product stewardship will reduce government spending and greenhouse gases, while creating jobs that are desperately needed in our state. This bill will help move California out of its budget crisis and into a ‘cradle to cradle' state that takes
care of its own."

"CPSC and NWPSC have developed Framework Principles that address many products at once, rather than the product-by-product legislation that is slow and costly," said Kevin Hendrick, director of the Del Norte Solid Waste Management Authority. "Framework legislation will streamline the process to include other products over time."

"EPR policies are working in Canada, Europe, Japan, and other countries," said Heidi Sanborn, executive director of CPSC. "The primary responsibility should rest with producers because only they make design and packaging decisions. It is far less expensive to design a product and packaging to reduce waste than it is to create expensive end-of-life disposal and recycling systems."

How to Bridge Corporate Sustainability Gap

2009-03-11T00:16:00.000-07:00

A new study by Deloitte polled 220 board directors at U.S. companies with revenues of $1 billion or more. Most considered themselves to be well-informed about corporate sustainability. However, only half think their companies practice sustainability, and less than half think their board is committed of addressing sustainability issues.

Deloitte also published a whitepaper titled, The Responsible and Sustainable Board with recommendations for getting the board involved in sustainability, which include:

Get consensus: Schedule a forum for the board to talk about sustainability issues.
Ask the right questions of management.
Examine your environmental and social impact

The whitepaper listed the following traits which companies with strong sustainability programs share:

Set the tone at the top
Establish sustainability commitments and goals
Create a sustainability committee that will coordinate efforts
Include sutainability metrics in CEO compensation
Monitor sustainability performance with progress reports
Include sustainability in new director orientation.

What are Obama's Plans to Help Businesses?

2009-03-08T19:19:00.000-07:00

During February 651,000 jobs were lost. The unemployment rate is over eight percent. As Obama put it in his weekly address, it is the highest unemployment rate in a "quarter century." During the address, he mentioned the Consumer and Business Lending Initiative, a $1 trillion program to revitalize lending.

The initiative expands the $200 billion program started in November that lends money to investors so they can purchase securities that are backed by debt. It was called the Team Asset-Backed Securities Loan Facility. The initiative will also include securities backed by commercial real estate mortgages.

Stimulus package and businesses

The American Recovery and Reinvestment Act contains help for small businesses, including $730 million to the Small Business Administration, which is an independent government agency that helps small businesses. The $730 breaks down as follows:

$375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans
$255 million for a new loan program to help small businesses meet existing debt payments
$30 million for expanding SBA’s Microloan program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to microlenders
$20 million for technology systems to streamline SBA’s lending and oversight processes
$15 million for expanding SBA’s Surety Bond Guarantee program
$25 million for staffing up to meet demands for new programs
$10 million for the Office of Inspector General

“The tax incentives and credit stimulus elements of the Recovery Act will truly help small business owners affected by the credit crunch, and will provide financing opportunities to help them create new jobs in their communities,” said Acting SBA Administrator Darryl K. Hairston.

Fixing the Healthcare system will save businesses money

Last Thursday, Obama held a healthcare summit. He linked addressing the problems with the healthcare system to "putting America on a sustainable fiscal course." The U.S. healthcare system is in sorry shape. The Commonwealth Fund Commission gave the

U.S.

healthcare system a score of 65 (out of 100) when compared to other industrialized countries. The overall performance of the healthcare system did not improve from 2006 to 2008, and access to healthcare decreased. The efficiency of the healthcare system continued to be low.

The

U.S.

spends twice the amount per capita on healthcare that other industrialized countries do, but ranks last among 19 industrialized countries. It ranked 15^th last year. The rate of uninsured adults increased from 35 percent in 2003 to 42 percent in 2007. According to the Commonwealth Fund Commission, “We are headed toward $1 of every $5 of national income going toward health care.”

Health insurance premiums for employers increased almost five times faster than inflation over the last five years, according to a 2008 study by the National Coalition on Healthcare (NCHC). Health insurance premiums also increased four times faster than wage growth. Premiums are rising at double digit rates. "It is becoming clear to many companies that at current rates, their health insurance expenses will outpace their profits,” the NCHC study stated.

The rising costs of premiums affects businesses by reducing their capacity to grow, which in turn affects the economy because the job growth rate slows and wages do not increase.

Productivity decreases for businesses unable to provide their employees with coverage. The HR Policy Association puts the annual cost of decreased productivity between $87 billion and $126 billion.

A survey last year by the Kaiser Family Foundation asked employers what changes they will make to health plans for the next year. Forty percent said they are or are very likely to increase workers contributions. Forty-one percent said they will increase deductible amounts, 45 percent will increase office visit cost sharing, and 41 percent will increase

the amount employees will pay for prescription drugs.

Last September a study by the Urban Institute titled Making Healthcare Reform Work for Small Businesses showed that small businesses are more affected by rising health insurance premiums than large businesses. In 2006, only 35 percent of businesses with less than 10 workers offered health insurance to employees, but 98 percent with 1,000 or more workers did.

A study titled The Future of Employment-Based Health Benefits by the Employee Benefit Research Institute concluded that employers “have clearly passed the tipping point on retiree health benefits, which are in a sharp decline.” The percentage of businesses with less than 200 employees that offered retiree health benefits decreased from 68 percent in 200 to 59 percent in 2007.

The National Federation of Independent Business (NFIB) believes that the “current system of health insurance and health care is financially unsustainable and threatens the health and financial security of the American people.” Small business owners and their employees are “especially vulnerable to the weaknesses of our current system.”

Obama's healthcare plan

Obama does not support a government-run healthcare plan or letting health insurance companies operate without regulation. Instead he favors a plan that requires health insurance companies to cover pre-existing conditions, creates a Small Business Health Tax Credit to help small businesses afford offering their employees coverage, and prevents insurers from overcharging doctors for their malpractice insurance.

Obama's plan would also create a National Health Insurance Exchange which would include private insurance options and a public plan based on benefits available to congressional members.

What is eBay's Greenteam?

2009-03-07T16:55:00.000-08:00

To put it simply, eBay's Green Team is an internal group that works to make the company more environmentally friendly. The team became public on March 4. The business model of eBay, according to the Green Team, is to encourage people to resell items instead of throwing them out, and buy used merchandise instead of purchasing new products.

The Green Team began in 2007 with 40 eBay employees and now has over 1,000 employees involved. The Green Team's website contains a forum called Green Team Talks where people can exchange tips about "sustainable shopping."

eBay worked with the environmental consultant ICF International to green their facilities. Their newest building in San Jose, California is LEED Gold certified. It features an utomatic dimming system which adjusts electric lights to make use of natural light, results in estimated 39 percent energy savings. It is made of 95 percent recycled structural steel, contains 38 percent recycled carpet tiles and 100 percent recycled fabric. The campus contains a smart irrigation system which is a more efficient way to irrigate.

eBay's San Jose North facility has a 650 kilowatt solar energy system (3,248 panels on the roof) provide 18 percent of its energy needs).

A bit of greenwashing?

Michael Brune, executive director of Rainforest Action Group questions eBay's environmental creds. He pointed out that many of the items eBay sells are new.

“It’s fair to say that buying used goods on eBay is better for the environment, but let’s not get carried away and say this is the greenest thing since recycled paper," Brune said.

What is Sustainable Consumption?

2009-03-06T18:17:00.000-08:00

Just glancing at the title of the recently released report, Sustainable Consumption Facts and Trends, by the World Business Council for Sustainable Development (WBCSD) it might seem that sustainable and consuming are two topics that just do not go together. However, the report points out that the present level of consumption by Western nations is putting stress on the Earth's ecosystems.

What can businesses do to "mainstream" sustainable consumption? The report lists three different business approaches to sustainable consumption:

Innovation--Creating business processes for developing sustainable product and services.

Choice influencing--Using marketing and awareness-raising campaigns to encourage consumers to purchase sustainable products.

Choice editing--Removing unsustainable products and services from the marketplace.

There are several ways to create markets for sustainable products, according to the report:

1. Certification

2. Direct payments which create incentives for resource managers

3. Tradable permits

Policies that encourage sustainable consumption are needed. In 2007 the WBCSD developed policy recommendations that include: encouraging energy efficiency, a greater range of transportation fuels, and making consumers more aware of sustainable products and lifestyles.

Consumers are concerned about the environment, yet their concern does not always translate to their purchases. The report cites the following barriers: availability, affordability, convenience, product performance, conflicting priorities, skepticism and force of habit. If a product is cost-efficient and convenient, consumers are more likely to purchase it.

The report also lists ways to encourage sustainable consumption:

1. Make it easy and affordable for consumers to purchase sustainable products.

2. Make sustainable products available and comparable.

3. Increase the availability of more sustainable products and services.

4. Create a market for sustainable products by working with consumers.

5. Use marketing communications to influence consumer choice and behavior.

Paper Based Water Bottles Equal Greenwashing

2009-02-13T18:43:00.000-08:00

Brandimage announced recently it created a paper-based water bottle that will question "the very existence of the plastic water bottle." The 360 Paper Water Bottle is made from pressed renewable plant fibers. There is one problem with the new bottled water brand: it is not needed. What is needed is for people to start drinking tap water in reusable water bottles.

Sportswear and Equipment Companies Green Buildings

2009-02-11T18:56:00.001-08:00

Patagonia, the sportswear clothing company, built a 171,000 square foot LEED Gold-certified addition to its Reno, NV distribution center. The addition contains a modular conveyor system which uses 30 percent less energy and increases operational efficiency by 20 percent.

The addition is heated with a radiant heating system, which uses copper tubes filled with hot water.

In constructing the addition, Patagonia went beyond the LEED Gold-certification requirements:

Used 100 percent light-colored concrete instead of asphalt in parking lot and driveways. LEED requires 30 percent to be certified.
Uses 40 percent less water by installing water efficient toilets, waterless urinals, and bathroom faucets that automatically turn off. (LEED requires 30 percent.
Fifty percent of the materials used to construct addition were manufactured within a 500 mile radius. LEED requires 20 percent.
All the wood used was Forest Stewardship Council (FCS) certified. LEED requires 50 percent.

REI's LEED Silver-certified distribution center

Recreational Equipment, Inc. (REI) built 525,000 square foot LEED Silver-certified distribution center. The 43 acre property in Bedford, PA, according to a Reuter's article, is one of the largest "green buildings and properties" in the U.S.

During the building of the distribution center, heavy construction equipment was powered by bio-diesel (B20). A concrete and mixing plant was also on the construction site.

The distribution center contains 360 windows and skylights which reduces energy use by 33 percent. Twenty bike stalls were installed in the parking lot, along with 30 preferred parking spaces for those who carpool or drive fuel-efficient vehicles.

REI bought 12 acres surrounding the property to reate a natural wetland, which will help local wildlife and help the company manage its rain water runoff.

In addition to achieving LEED Gold-certification, REI donated a house already on the property Habitat for Humanity.

"We are very proud of what we have accomplished, in addition to enabling us to significantly reduce the transit times to our customers and existing stores in the Eastern United States," said Brian Unmacht, REI's senior vice president of sales, store development and logistics.

Watch a video about Patagonia's distribution center:

Obama To Cap Executive Pay

2009-02-10T21:39:00.001-08:00

Last week, President Obama announced a $500,000 pay cap on certain senior executives whose firms received TARP funds

Obama reminded executives that they need to "take responsiblity." He characterized firms that received TARP funds and paid "customary lavish bonuses" as the "height of irresponsiblity" and "shameful." He also reminded executives that Americans "don't disparage wealth" or "begrudge anybody their success." However, he pointed out that the American people become upset when failure is rewarded, and the "rewards are subsidized by U.S. taxpayers."

In addition to the pay caps, executives who receive "perks and luxuries" are going to have to publicly explain "why these expenses are justified," Obama said.

The Rich Got Richer

For the first time, everyone on the 2006 Forbes 400 list was a billionaire. The 2005 Forbes 400 list contained 374 billionaires, with a combined net worth of $1.13 trillion. No new editions were added to the 2005 list. Steve Forbes, Forbes magazine publisher, did not make the list because his net worth is only $400 million.

The collective net worth of the Forbes 400 billionaires is $1.25 trillion. In fact $1.13 trillion is more than “the combined gross domestic product of Switzerland, Poland, Norway, and Greece,” as New York Times columnist Nina Munk observed.

The minimum net worth needed to make the list went from $500 million to $625 million in 1998. In 1999 the Forbes 400 list had as much wealth as bottom half of U.S. population, over a trillion dollars. The average Forbes 400 member increased their wealth by 177 percent in the last decade, and more than 55 percent in the last two years.

A 2004 study by UC Berkeley professor Emmanuel Saez reported that the income of the median household in 2004 only increased by 1.6 percent. During the 1998 to 2001 period it increased by 9.5 percent. The New York Times conducted a study on the 2003 tax cuts. They found that someone earning $26 million paid the same amount of taxes as a $200,000 to $500,000 wage earner. The median income taxpayer receives a tax cut of $600, while a $10 million dollar wage earner receives a $500,000 tax cut.

Given the above facts, it is clear why Obama declared, "we're taking the air out of the golden parachute."

What's Up With U.S. Banks?

2009-02-04T20:55:00.000-08:00

Last fall the Congress passed the $700 billion Troubled Asset Relief Program which helped troubled financial institutions. Frederick Cannon, a banking analyst, recently said, "Money is moving throughout the system, but there is increasing recognition that these institutions don't have enough capital to withstand the losses from all the crazy loans they have."

Something is wrong with the the bank bailout, or at least the terms of it. Banks that received TARP funds are helping the pharmeceutical company Pfizer buy Wyeth. As a writer for Online Journal pointed out, the buyout will not help the American people.

Another good example is Citigroup paying $400 billion to have its name put on the New York Mets new ballpark. Bank of America is paying $140 billion to have its name on the NFL's Carolina Panther's stadium. Both Citigroup and BofA received $45 million in TARP funds. JPMorgan Chase & Co. spent $66 million to have its name on the Arizona's cardinal's ballpark. JPMorgan received $25 billion in TARP funds.

Rep. Dennis Kucinich (D-OH) called the banks' spending "frivolous," on a few days ago said he plans on holding hearings.

Meanwhile, banks are still in trouble. Last Sunday, Obama said to NBC News, "some banks won't make it," but assured the American people there deposits would be safe. "The banks, because of mismanagement, because of huge risk-taking, are now in a very vulnerable position." Obama issued a warning to banks and financial institutions that "they've got to abide by certain conditions" if they received TARP funds.

Reportedly, Timothy Geitner, new Treasury Secretary for the Obama administration, is considering buying up troubled assets from banks. A BusinessWeek article reported the following:

Daniel Clifton, Washington policy analyst for Strategas Research Partners, says Treasury is considering starting the bank with $100 billion from TARP, then adding leverage from the Fed and the Federal Deposit Insurance Corp. so $1 trillion in funding is available to buy bad assets. Ultimately, he adds, Administration officials believe they could need up to $2 trillion.

Senator Charles Schumer (D-NY) criticized creating a "bad bank" to buy banks' troubled assets. He told CNBC the idea has two problems. "One is the cost – its usually expensive – and, second, if you have the bad bank where the government has to buy the assets at the price right now, you don’t know how to value them.”

Another idea reportedly being considered by the Obama administration is offering banks guarantees which would limit their losses on troubled assets. BusinessWeek characterized that option as a "thinly veiled nationalization of the worst banks."

Speaker of the House Nancy Pelosi, said, "If we are strengthening them, then the American people should get some of the upside of that strengthening. Some people call that nationalization." She furthered said she didn't favor "total ownership."

Economist Lena Komileva said the important part of a solution is to "get market structures working again and restart private capital flows."

Will Green Investing Do Well In This Economy?

2009-02-03T16:24:00.000-08:00

Investing in 'green' or environmentally-friendly projects or companies is not expected to go down, despite the weakest economy since the 1930s, according to recent reports and surveys.

The World Economic Forum's recent report, Green Investing: Towards a Clean Energy Infrastructure identified eight important clean energy sectors: onshore wind, offshore wind, solar photovoltaic, solar thermal electricity generation, municipal solar waste-to-energy, sugar-based ethanol, cellulosic and next generation biofuels, and geothermal power.

The reported warned that at least $515 billion a year needs to be invested in clean energy until 2030 to stop carbon emissions from reaching a level scientists consider to be unsustainable.

During last week's World Economic Forum meeting, UN Secretary-General Ban Ki-moon said, "By tackling climate change head-on we can solve many of our current troubles, including the threat of global recession. We stand at a crossroads. It is important that we realize we have a choice. We can choose short-sighted unilateralism and business as usual. Or we can grasp global cooperation and partnership on a scale never before seen."

A recent survey by the Allianz Global Investors revealed that almost eight in ten U.S. investors surveyed (78 percent) think green tech can potentially be the "next great American industry."

Over nine in ten (91 percent) think that finding solutions to environmental problems will be important for years. Seven in 10 (69 percent) think investing in companies that are addressing environmental problems important, and 64 percent classified the environment as the most "desirable" factor in investment. There was a 30 percent increase from 2007 to 2008 in amount of investors who already invested in companies addressing environmental problems.

"The need for pollution control, clean water and energy efficiency is not going away. Investors perceive there is real opportunity here and they want to capitalize on it," says Brian Gaffney, CEO of Allianz Global Investors Distributors.

"Investors' bright outlook on the environmental technology sector is telling. This is perceived as a long-term opportunity," says Gaffney. "Investors understand that robust demand for innovation and solutions will fuel growth, and consequently profits, for years to come."

A report by the Hartman Group titled Sustainability: The Rise of Consumer Responsibility stated that three out of four consumers consider both environmental and social aspects when they purchase products. One in three are willing to pay more. Eighty-eight percent define themselves as participators in sustainable behaviors, and 37 percent think purchasing decisions are as important as voting. However, less than 25 percent can even name a single sustainable product.

In a December survey by the SunTrust Bank Private Wealth Management, 69 percent of business owners said, "Even if there is an economic downturn that moderately affects my business, I plan to maintain my current level of giving to environmental causes in the coming year.” Over 200 business owners with at least $10 in annual revenue were surveyed about green giving and investing. The majority believe it is either a "good" or "average" time to invest in green funds, and 40 percent believe it is a "good" time for businesses to have high environmental standards.

The Panel Intelligence's Quarterly Sustainability Tracking Study released in December cited a survey of 65 corporate sustainability executives of Fortune 500 companies in North America. Eighty percent of the executives surveyed plan to either maintain or increase levels of sustainability spending this year, and 82 percent rated energy efficiency number one area of investment.

The percentage of corporate revenues spent on sustainability and clean technology is expected to increase through 2010 by 73 percent. Corporate spending on sustainable waste management initiatives is expected to grow by 20 percent this year.

“In a downturn, some would back away from their current commitments,” said Dan Esty, a professor of environmental law and policy at Yale University, in 2007. “There could be stress in the next year or two, but I’m confident that investment in the environment will be higher.”

In 2007, Michael Chesser, chairman and CEO of Great Plains Energy, said, “The investment can be rheostated. In other words you can speed up or slow down, depending on how you see your demand going over the next couple of years.”

Gina-Marie Cheeseman

Obama Gives Bad & Good News

2009-02-02T17:36:00.000-08:00

"The bad news is well known to Americans across this country," President Obama said during his weekly address. The good news is that the "House passed the American Recovery and Reinvestment Act, which will save or create three million jobs over the next few years."

What will the American Recovery and Reinvestment Act do for businesses? Obama spoke about how the Act will help businesses:

Soon my Treasury Secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families. We'll help lower mortgage costs and extend loans to small businesses so they can create jobs. We'll ensure that CEOs are not draining funds that should be advancing our recovery. And we will insist on unprecedented transparency, rigorous oversight, and clear accountability -- so taxpayers know how their money is being spent and whether it is achieving results.

Investment in Innovation Needed

2009-01-31T21:40:00.000-08:00

There is no denying the U.S. is in an economic crisis. It seems every day brings more news of major companies laying off employees. The Chinese word for crisis is made up of the characters for danger and opportunity. Maybe just maybe innovation is the opportunity that will not only lead the U.S. out of this crisis, but lay the foundation for a stronger economy.

The website, InnovationEconomics.org defines innovation as "the development and adoption of new products and services, more efficient production processes, and new business models," and calls for innovation to be put "at the center of our nation's economic policies."

A report titled An Innovation Economics Agenda for the Next Administration states that the Congress and President need to "take concrete steps to ensure that the economy is on a robust growth path over the next decade." The report lists eight steps that should be taken:

Significantly Expand the Federal Research and Development Tax Credit
Create a National Innovation Foundation
Allow Foreign Students Receiving a graduate Degree to Receive a Green card
Reform the Patent System to Drive Innovation
Let companies expense new investments in information technology in the first year
Establish a federal chief information officer
Implement a national nroadband strategy
Implement an Innovation-based national trade policy

A recent BusinessWeek article proclaims that there is a "daring new direction in economic strategy sweeping U.S. states." States have been investing in innovative projects, blurring the line between public and private. The areas states have invested in include renewable energy, which is needed to stop climate change.

A report by the National Governors Association and the Pew Center on the States lists steps the states can take:

1. Develop a statewide research and innovation
strategy that not only puts in place all the
components for innovation, but aligns them
in ways that provide advantages to in-state
companies;
2. Make investments to gain talent, build topnotch
research enterprises and compete for
federal dollars in those focused areas where
the state can be world-class;
3. Encourage, even mandate, collaboration
among universities, the private sector and
other institutions;
4. Put world-class professionals, not political
pals, in key positions;
5. Create an organization and consistent
funding source that facilitates a continuity
in R&D partnering and spending; and
6. Hold the recipients of public investments
accountable for delivering on promised
benefits.

The current economic crisis has hit the states hard and most of them have huge budget deficits. Clearly, federal investment is needed. The stimulus bill passed by the House this week includes funds for research and development.

A Productivity Based Economy is Needed

2009-01-31T14:44:00.000-08:00

"We are a nation in search of an economy," the writer of Talking Points Memo blog post proclaimed. Over the last ten years U.S. economic growth has averaged 2.7 percent. BusinessWeek calculated that U.S. consumers ran up about "$3 trillion in excess borrowing and spending over the same period." In other words, the U.S. economy was based on consumption instead of productivity. The $10 trillion national debt is a good example.

BusinessWeek suggests that there are several things that can increase economic growth. The first thing that needs to happen is U.S. industries focusing on "generating more productivity gains at home." The U.S. needs less outsourcing and more manufacturing at home.

The second thing that needs to happen is investment from the federal government in "infrastructure, education and innovation rather than consumer spending."

Does the economic stimulus package passed by the House this week, contain funds for infrastructure, education and innovation? Let's start with infrastructure. The House bill provides $30 billion for highway construction. It provides $20 billion for renovating schools, and $5 billion for renovating and constructing public housing.

Now let's look at education. Over $140 billion in the House's bill goes toward education. Title I schools would receive $13 billion in two years, as would special education. The Head Start program would receive $2 billion, and the states would receive $79 billion so they can avoid lay-offs in education.

What about innovation? Research and development (R&D) would receive $16 billion: $9.9 billion for basic research, $3.4 billion for R&D facilities and equipment, $2.5 billion for science and technology related projects. Funding would have to distributed within 120 days.

Buy American plays role in stimulus plackage

The Senate stimulus bill contains a clause that would require using American made steel in all projects receiving funds. Although the clause has received much criticism, including from the European Union, Senator Sherrod Brown (D-OH) defended it saying, "It's pretty clear that American taxpayers want their tax dollars spent on projects where materials are made by Americans. I've seen across-the-board support -- with the exception of a few economists and a few newspaper publishers -- for 'made in America.' "

He added: "It is not a trade war for us to insist that products we use in this country are made in this country."

It certainly would be good news for the "Rust Belt" of America if the bill that is signed into law contains the "Buy American" clause.

For further reading:

Note to U.S. Multinationals: Be American, Produce in America

UN Secretary General Calls for Business Action on Climate Change

2009-01-29T20:27:00.000-08:00

Today the UN Secretary General, Ban Ki-moon called for businesses to "re-orient your organizations for the economy of the future" while speaking at the UN Global Compact's World Economic Forum in Davos/Switzerland. Ban Ki-moon described a green economy as low-carbon, energy efficient, investing in sustainable technologies, and creating jobs.

Ban Ki-moon acknowledged the momentum for a "global green new deal." He urged business leaders to "develop good policies and practices in the areas of human rights, the treatment of workers, the environment and anti-corruption." He also urged business leaders to use the Global Compact's "accountability framework and disclose your progress annually." He reassured them that by "doing so" they would help "restore trust, confidence and credibility into the markets."

The Global Compact is a "leadership platform...offering a unique strategic platform for participants to advance their commitments to sustainability and corporate citizenship," according to its website. It has over 4,700 participants from 130 countries.

Ban Ki-moon called it the " world's largest corporate sustainability initiative," and urged business leaders to join in the Global Compact's "new phase."

Studies confirm green economy will create millions of jobs

A study released by the United State Conference of Mayors last fall details the advantages of a green economy. The advantages include "investments in new technologies, greater productivity, improvements in the US balance of trade, increased real disposable income across the nation…lower costs of doing business, and reduced household energy expenditures.”

The study called for investments in renewable energy, alternative fuels, and clean technology, which it describes as "critical to our competitiveness in the global economy, to our living standards, indeed, to our future."

A joint study by the Center on Wisconsin Strategy, The Workforce Alliance, and The Apollo Alliance states that a "greener American economy can and will create jobs," but the amount of jobs created "depends on the scale and terms of future investment."

For further reading:

Investing in Our Future: Support for a Clean Energy Economy

One Way to Kick-Start the Economy