Sustainable WNC

Note from Seve: This report is from “Environmental Leader”, and just came onto my radar screen (although first published in May, 2007). I think it’s especially germane in that the last several months have only accelerated what’s described:

Corporate America Nears Green Tipping Point
May 02 2007

Profitability of America’s corporations will be closely tied to proactive sustainability practices and Green Building principles, according to findings from a new McGraw-Hill Construction Report commissioned by Siemens Building Technologies. The study shows that most U.S. corporate leaders are interested in sustainability, with the majority looking at proactive ways to make it a consistent part of their mission.

According to the study’s findings, 18 percent of responding corporate leaders are in the upper – or market transformational stages – with 15 percent viewing sustainability as a competitive advantage and three percent actually driving their entire businesses through this value-driven lens. Over the next three years, more companies see themselves as entering this top tier, with nearly a third of the sample aiming to be market leaders in sustainability.

The data indicates a tipping point in corporate America, from those mostly uninvolved, to mostly involved in Green, will be reached in early 2009, but perhaps as soon as next year. That translates to 82 percent of corporate America greening at least 16 percent of their building stock.

Rising energy costs were identified as a fundamental driver of green building in corporate America, with an overwhelming 75 percent of participants listing that trend as a major motivator.

The study found that 63 percent of CEOs recognize financial benefits of green building and 67 percent see a specific operating cost benefit from Green. Additionally, 57 percent of respondents think green fosters innovation within their companies. Respondents clearly view both government and internal management as the strongest drivers pushing their organizations toward adoption of green policies and practices. Finally, 60 percent of CFOs see the market differentiation sustainability activities and green building can provide their companies as a definite benefit, with over half of the other executive respondents agreeing as well.

In the last post I mentioned that we’d talk about local efforts next, and I can’t think of a better way to begin that discussion than by talking about ’supply chains’. By that phrase we mean however simple or complex the procurement process may be for goods and services that support the goals and objectives of a business - or any organization for that matter. Maybe it’s only simple office supplies and basic utillities, but it most cases we’re quickly talking about the basic sustainability ‘entry points’: transportation systems, energy systems, food systems, the built environment (infrastructure), and environmental (internal and external) considerations.

Your ‘purchasing’ department may be you and a phone book or your PDA; it may be Joe or Gladys down the the hall, a small organization, all the way up to a major supply-chain procurement operation of hundreds of people. The first 12 or 13 years of my professional life was in the federal government procurement realm, so I have great respect and a fair understanding of how important, effective and impactful these folks can be to an organization’s bottom line (and/or mission). By the way, the federal government is quickly becoming the largest green purchasing organization in the world - a good thing. A little know office in the White House, the “Office of the Federal Environmental Executive (OFEE)” leads this important cultural-shift for government, and has many great resources available on their site - especially useful if you happen to be connected to the federal/state/local government contracting community in any way.

As Joel Makower, Executive Editor of “GreenBuzz” describes in his column of August 13:

“Environmental professionals and procurement professionals haven’t traditionally mixed well. Environmental folks tend to talk in big picture generalities; procurement folks talk in cold, hard facts. Environmental folks look at things beyond money and performance; procurement folks often don’t. It’s not exactly oil and water, but then again it’s not milk and honey.

In the end, it’s the economics, stupid.”

This is Steve again - I won’t change Joel’s words, but I know you’re not stupid, either. Take advantage of the expertise in your purchasing organization, whatever that might be, and start your pathway to sustainability by integrating this important function in a leadership role on that journey.

I hope we have some examples of local organizational green purchasing practices posted in response to this chat, and look forward to learning how we’re taking advantage of the professionals in this field.