Frances Hesselbein

On Tuesday, the Women’s Network for a Sustainable Future held its 7th annual summit, entitled “Sustainability, We Get it… Now What?”

Ann Goodman, Ph.D., Executive Director of WNSF, said, “By now the term sustainability has entered the vernacular. Now that everybody gets sustainability, how can we use it to drive [business].

Kathy Robb, Head of Environmental Practice at Hunton & Williams and a WNSF board member, explained explained that WNSF was founded around the belief that “women in business want to bolster sustainability efforts in their companies.”

She continued, “Caring about the environment allows companies to attract and retain women employees, customers, stockholders, and stakeholders – and create a better world for everyone.”

Dr. Goodman introduced the program’s keynote speaker, Frances Hesselbein as a personal “she-ro.” Hesselbein, Chair, Leader to Leader Institute; Chair, Study of Leadership, West Point Military Academy; former CEO, Girl Scouts of the USA is someone who has accomplished much, including being awarded the Presidential Medal of Freedom, the US’s highest civilian honor. Yet, in spite of her achievements, Goodman said, Hesselbein continues to be “generous, friendly, down to earth, straight forward, direct, [and] empathetic.”

Hesselbein opened her discussion on creating a sustainable society with a poem:

Be careful of your thoughts, for your thoughts become your words.
Be careful of your words, for your words become your actions.
Be careful of your actions, for your actions become your habits.
Be careful of your habits, for your habits become your character.
Be careful of your character, for your character becomes your destiny.
- Anonymous

“Today is all about destiny,” she began.

Creating a Sustainable Society

Hesselbein spoke at length to the importance of education in creating a sustainable democracy. She said, “There are two institutions that have sustained democracy,” in the United States. The first of which, the US Army, she said, was going strong. But, she continued, the second, public education, is faltering. “The kindest thing you can say is that the house is on fire.”

She continued, “How can we sustain a democracy if we do not educate our children?” According to Hesselbein, only one in two children graduate in New York City. And in Los Angeles, only one in five. “For those of us committed to sustainability, those are not invisible children. Education of all our children is [critical] to democracy.”

But Hesselbein is not cynical or pessimistic about the future. She joked, “Even my blood type is B positive.”

“I get my hope, my positive future, from them. I have a feeling that this generation of young men and women is different from earlier generations. When I say ‘to serve is to live,’ this generation says, ‘of course.’”

Developing Girls into Leaders

Having served as the CEO of the Girl Scouts of the USA from 1996 to 1990, it is natural that Hesselbein would place a lot of faith in the next generation of leaders. Hesselbein, in fact, is charged with transforming the organization. She recalled, “When I came to New York, I never wanted to be CEO of the Girl Scouts I never wanted to leave Pennsylvania – ever!” In 1976, she said, the program hadn’t changed in 12 years. “It had lived through the trauma of the 1960s and early ’70s,” without an update, she said.

“In 67 years, they had never had anyone from the field” lead the organization, she explained. So, when she went in to interview, “I didn’t think they were serious.”

Asked what she would do to change the organization, she said, “I suggested a huge transformation. We would focus on math, science, technology. We would throw out the hierarchy and institute flexible, circular management. I had a great time describing all we would do for them,” she said with a smile.

Two days later, she got a call asking her to come back. She accepted the job, and promised new handbooks within a year.

Hesselbein’s efforts changed the GSUSA dramatically, in both its management structure and its work developing girls. In fact, when she asked how many women in the room had been (or continued to be) girl scouts, at least half of the room’s hands went up. She said, “Only the best is good enough for those who serve girls.”

Getting Girls into Math and Science

When asked how best to engage today’s girls in math and science in order to fill the STEM career pipeline with women, Hesselbein replied, “We’re not telling the story.”

Girls need to see real-life role models in those fields. “It can’t just be a brochure,” she said. “We need to give [women in STEM fields] a platform where young women can hear, ‘I’m the chief engineer of –.’ They need real life examples.”

She continued, “All over the country we have many remarkable role models. We need to bring them together.”

Hesselbein talked about the importance of mentoring, saying she mentors three women herself. She also reiterated the importance of education.

She said, “In terms of volunteerism, this generation is often compared to the generation of the 1930s and 1940s, which we now call the Greatest Generation. One of the things that made that [title] possible was college scholarship. For this generation, that opportunity is shrinking. How do we give them that opportunity for education and internships?”

She continued, “This generation has a passion for making a difference.”

In June, Accenture released “the largest CEO-based study on sustainability of its kind to date,” based on more than 100 in-depth interviews with world business leaders and an online survey of 766 UN Global Compact member CEOs.

The study, entitled “A New Era of Sustainability,” [PDF] reveals the attitudes toward sustainability held by top leadership in a variety of sectors, including “automotive, communications, consumer goods and services, energy, financial services, metals & mining and utilities.”

Said Peter Lacy, UNGC-Accenture CEO Study Project Lead 2010 and Managing Director, Accenture Sustainability Services, Europe, Africa, Middle East and Latin America:

“We hope that this study provides a rich, authentic and evidence-based platform to understand CEO views on the progress, challenges and implications of the journey toward a new era of sustainability.”

Sustainability Embedded Within Corporate Culture and Strategic Planning

One of the most surprising findings revealed by the study was the speed with which sustainability has become viewed as a major business imperative. According to the report, in 2007, the last time the study was performed, “sustainability was just emerging on the periphery of business issues, an increasing concern that was beginning to reshape the rules of competition.”

Today, the report continues, sustainability is “top of mind.”

Sustainability, the CEOs said, will play a major role in shaping in their businesses moving forward. According to the report:

“Eighty-one percent of CEOs—compared to just 50 percent in 2007—stated that sustainability issues are now fully embedded into the strategy and operations of their company. For example, we saw cases of companies beginning to integrate sustainability issues into their executive compensation packages, as well as design and innovation functions, more than in 2007.”

Accountability Key

But the CEOs face challenges in leading their companies toward a more sustainable future – from customers, shareholders, and investors. And the challenges all boil down to accountability.

First of all, coming out of the global economic slump, consumers have continued to be mistrustful of corporations. As Kaspar Villiger, Chairman of UBS AG, said: “We have lost trust, and we need to regain it with a culture of responsible behavior.”

Companies need to figure out how to regain the trust of the customer and clients they serve.

Second, shareholders, say the CEOs, have been slow to get in board. One Goldman Sachs leader said:

“We need to realize that analysts bring with them an education rooted within the green borders of Excel. But we are talking about externalities that very often are not linked directly to line items. CEOs need to be able to link these to cash flow and the balance sheet.”

The CEOs also felt that investors were not interested in less quantifiable social benefits of sustainability – only the bottom line.

Edemir Pinto, CEO of São Paulo stock exchange BM&FBOVESPA, suggested that CEOs must work harder to communicate the value of sustainability initiatives to investors. He said:

“CEOs may complain that investors do not value their sustainability activities properly, but they need to tell investors what they are doing: If they don’t communicate regularly, investors cannot incorporate these issues into their models.”

How can companies effectively embed sustainability into their strategic plans, building trust with consumers while garnering the support of shareholders and investors? The report suggests that accountability reporting can help corporations build a case for themselves regarding sustainability.

Producing metrics-based justifications for sustainability efforts can prove to mistrustful consumers that the company is actually doing the good work it claims to, while the numbers can also help sway the results-focused style of shareholders and investors. In fact, some of the CEOs who took part in the survey presented innovative solutions to the problem of quantifying sustainability efforts.

“There should be a focus on integrated reporting of CSR and financial results, which could bring about an alignment of sustainability with economic performance,” said Fulvio Conti, Enel S.p.A.

The report notes PepsiCo CEO Indra Nooyi’s suggested business model for corporate responsibility:

“Full Business Value = (Profit + loss) – (Positive + negative impact on society).”

Additionally, besides noting sustainability success as part of company-wide performance reports, Accenture’s study suggests that sustainability success be tied to pay packages for individuals within firms.

The report says:

“Embedding sustainability into the performance and remuneration packages of top executives and management was seen by many CEOs as perhaps one of the most effective means of ensuring more active management and monitoring of sustainability impacts. ‘People have a habit of doing what you pay them to do,’ one business leader told us.”

This will provide another layer of accountability to sustainability initiatives moving forward, and hopefully overcome some of the wariness regarding the implementation of these CEOs’ visions of sustainability for their companies.

This article originally appeared on our new corporate citizenship website, Evolved Employer. Evolved Employer provides news and analysis for business leaders on corporate sustainability, corporate social responsibility (CSR), diversity, corporate philanthropy, and employee wellbeing. The site aims to provide best practices and ideas that will help senior executives lead their companies in the 21st century in a way that is profitable, yet sustainable, in all aspects of the word.

Currently women make up about half the U.S. workforce, so more than ever before, retaining women in the workplace is an important issue. Many businesses offer work/life balance, flex time, and other family-friendly incentives to attract, inspire and keep female employees, but a recent survey shows another surprising way to make women happy: do good, and tell the world about it.

A survey conducted by the Simmons School of Management and Hewlett-Packard during the 2009 Simmons School of Leadership Conference reported that female employees who thought their employers were ethical and supported socially responsible initiatives were happier with their jobs, thought less about quitting, and were more likely to champion their company in social settings. However, the findings also showed that since many women were unaware of their company’s corporate social responsibility (CSR) activities, employers were missing out on this unexpected benefit.

The results showed:

• More than 75% of respondents indicated that “making a positive impact on society” and “expressing and acting in line with my values” are important to them
• Respondents also said that “when CSR is an important part of an organization’s business strategy, it contributes to the fulfillment of ‘individualistic’ career needs, such as ‘opportunities to develop one’s professional skills/expertise’”
• 45% reported awareness of their companies’ CSR efforts
• 35% reported that they have participated in their companies’ CSR activities

As more and more businesses are realizing the importance of socially responsible initiatives as a sound business strategy, reaching and influencing women is critical in more ways than just retaining female employees. Social responsibility also makes a big difference to consumers, and women make 85% of consumer purchasing decisions. In March 2010, Penn Schoen Berland, Landor & Associates, and Burson-Marsteller released the results of their second annual Corporate Social Responsibility Perceptions Survey that gauged consumer opinions of companies in 14 industries, from apparel to telecommunications.

Although the respondents were both men and women, knowing that women make the vast majority of purchasing decisions casts these results in a new light.

• Despite the recession, more than 75% of consumers responded that social responsibility is important no matter the industry
• When choosing between similar products, 55% are more likely to choose a product that supports a certain cause
• 38% plan to spend the same or more on products or services from socially responsible companies compared to 2009
• Only 45% of respondents say they know the meaning of the term “corporate social responsibility”
• Only 11% say they have heard communications about CSR from any company in the past year
• 59% plan to spend the same or more (45% and 14% respectively) on products from socially responsible companies in the coming year
• 70% are willing to pay a premium on products from a socially responsible company
• 22% are aware that their companies have CSR practices, 25% say no and 53% say they don’t know if their companies have CSR initiatives
• 34% of respondents would take a pay cut to work at a socially responsible organization (majority being younger workers 18-24)
• Only 13% of respondents have read about a company’s CSR agenda on the corporate website
• Of those who have read about a company’s CSR efforts on their website, 26% are much more likely and 49% are somewhat more likely to purchase a product from that company

These surveys show that (female) employees and both male and female consumers are paying attention to social responsibility. The key? Communication. The authors of both reports advocate better communication of social initiatives both internally and externally. Spreading the word inside your company is a great way to build goodwill, loyalty, and job satisfaction. Additionally, female employees have indicated that they would be proud to spread the word of their company’s social efforts, and this type of communication can be worth ten times any media campaign.

Who best to get your message out? Yep. Women again. In June 2010, the Boston College Center for Corporate Citizenship released a report detailing the profile of today’s corporate citizenship leaders. In its key findings, it shows that (among respondents) women outnumber men 3-to-1, although the percentage of men who hold a senior or executive level position (49.7 percent) is far above the number of women (26.9 percent). Although respondents indicated that creating partnerships inside the company (86.3 percent) and relationships outside the company (84.2 percent) were a part of their responsibilities, evidently even more attention needs to be paid to these activities. Employee involvement can be crucial to the success of a CSR program. In 2010, The National Environmental Education Foundation released a study showing that “environmental and sustainability (E&S) employee education and engagement initiatives help companies achieve a range of business objectives from attracting and retaining employees to boosting the bottom line.”

So shout your CSR efforts to the rooftops – or at least to all the corners of your company. Employees and consumers alike are watching, and women in the role of employee, consumer, CSR representative, and community member can be powerful allies.

Last Monday, the Women’s Network for a Sustainable Future held a discussion panel entitled Human Capital for a Sustainable Economy. WNSF Executive Director Anne Goodman said that a focus on sustainable careers can improve the economy and create jobs. She said, “WNSF envisions a future for sustainable jobs.” She explained that these kinds of careers can create financial, environmental, and social progress.

Moderated by Michelle Kahane, Professor of Professional Practice at Milano the New School for Management and Urban Policy, the panel featured Melinda Wolfe, Head of Human Resources at Bloomberg, Susan Heaney, Global Director of Corporate Responsibility, Avon, Natalie Thompson, Vice President, Global Leadership and Diversity, Goldman Sachs.

“Bloomberg has some very dramatic goals to reduce our carbon footprint by 50% in a couple of years,” said Wolf. She continued, “Our commitment is a defining hallmark for the company.”

Thompson said, “At Goldman Sachs, we’ve had an environmental policy in place since 2005. It is fully integrated at every aspect of the business.” Thompson also cited Goldman’s new LEED certified facilities.

Heaney explained that at Avon, CSR “functions very much like HR. It intersects with every single department in the company, and sets policy and procedural standards” across the organization. “When Goldman Sachs started tracking social investing, [we realized] this must really count!” she joked. “It was really a turning point.”

Creating Staff Buy-In

Heaney emphasized the importance of taking a long-term view with corporate responsibility. She said, “It’s not a quarter by quarter analysis.” Companies have to be in it for the “long haul” and see these initiatives as an investment.

The challenge, she said, was not in creating CSR policies, but in gaining a groundswell of support for them. She said, “You can make someone do something. But you have to make them want to do something.”

Wolf agreed. She said, “I think it’s really important that you are attracting the right people.” She said the company’s values have to resonate with its staff. For example, she said, Bloomberg recently removed wastebaskets from its employees’ desks. “It takes a certain kind of employee to commit to collect their trash and then throw it away themselves,” making sure to also sort out recyclables and compostables. She continued, “If you’re not going to buy into it, you’re not going to like it at Bloomberg.”

Thompson discussed the need for employees to see top-down leadership on sustainability directives, as well. “You yourself become part of the solution rather than just a talking head.” Heaney added, “If the C-Suite isn’t behind this, it doesn’t matter what you do.”

Attracting the Green Workforce

Dr. Kahane asked the panel if sustainability is one of the factors they hire around. Wolfe responded that she believes it works in the other direction. “We’re looking for the best talent. Sustainability is not one of the core characteristics,” but she said, individuals who care about green issues were more likely to seek out Bloomberg. “It works best from the other side. When you go out there and you see our employee value proposition, by nature we’re going to attract certain types of people.”

Thompson agreed, “We’re evolving in sustainability. I’m not sure if there if there is a direct connection” between new hires and their green characteristics.

Heaney took the perspective of hiring individuals specifically to fill CSR or sustainability-focused roles. She said, “It’s about finding a person who can actually do something and not just talk about it.” She explained that working in a sustainability-focused role can seem like a moving target. “We’re looking for someone who understands what sustainability is, but who also knows that nobody really knows what sustainability is.” She continued, “It’s like learning to drive in the Indy 500. You live in constant gray. There is no black and white.”

Thompson brought up the importance of the next generation of the workforce – the millennials. “It depends on the cohort. On the analyst level, there is a different sensibility on the environment and sustainability.” The sustainability factor, she said, is important “to create a pipeline that will have throughput to take you to the next phase of leadership.”

Wolfe added, “you’re recruiting people you hope can lead the company to the next phase.”

By Melissa J. Anderson (New York City)

In 1972, we got our first real glimpse of what the Earth looked like from outer space with the iconic “Blue Marble” photograph taken by astronauts aboard the Apollo 17 spacecraft. But as Kathy Robb, Partner at Hunton and Williams and Chair of the Women’s Network for a Sustainable Future (WNSF) explained, it wasn’t just a pretty picture— it represented much more.

“This perspective, never before possible, dramatically affected our appreciation of the natural environment,” she said. Today’s view of sustainability “may well be another bright line,” she continued.

On Tuesday, October 6th, WNSF held its 6th annual Businesswomen’s Sustainability Leadership Summit. Entitled “New Dynamics of Sustainability Leadership: Changing Roles, Fresh Opportunities,” the summit took place at the Institute for International Education at the U.N. and brought together 200 women to discuss the new dynamics of sustainability in the business world.

Featuring women from the nation’s top companies, speakers and guests at the summit came together to discuss new ways of doing business in light of the ever-growing importance of sustainability.

Business Sustainability: More Than a Passing Fad

As keynote speaker Linda Fisher, Chief Sustainability Officer and VP, Safety, Health & Environment for DuPont and Deputy Administrator of the United States Environmental Protection Agency explained, sustainability is becoming an important issue, rather than the fad predicted by naysayers just a few years ago. She remarked, “I can’t think of a more dynamic time to be involved in working with the environment.”

Fisher was presented with the Busineswomen’s Sustainability Leadership Award for her work in putting DuPont at the forefront of sustainable business strategy. Upon receiving the award, Fisher joked about when she told her older brother she was going to be focusing on environmental law upon receiving her law degree 25 years ago. “He said, ‘The environment – well, that will be a very nice boutique practice.’ No way is it a boutique or narrow practice now.”

Her talk focused on three things: why the emphasis on sustainability is here to stay; the importance of cooperation between industry leaders, non-governmental organizations and activists, and consumers; and the role government regulation should play in the mix.

First, responding to criticism of “greenwashing” in the industry, Fisher said that it exists, but there is also “real meaningful change” going on in many companies. She went on to say that the reason for the meaningful change is that sustainability initiatives aren’t simply an afterthought, they are “part of the conversation about growth.” Fisher explained that as consumers become more conscious of environmental concerns, industry must respond to stay competitive and innovative.

Fisher recalled that in the 1980s, business leaders complained that they wished people in the environmental community understood business. “Well, now they do,” she added. And they exercise this knowledge in two ways: first, by utilizing the market as a venue for change—whether through the boycott of products they deem environmentally unsound or putting their purchasing power to work buying products they feel support their values; and, second, by embracing a new view of technology and innovation as things that will allow the world to become more sustainable.

Industry must “invent solutions” and make technological breakthroughs, Fisher said, rather than dourly abide by regulations. “Successful companies have always known where their customers were going before the customers did,” she explained. “Economic success will really come first to those companies that have integrated sustainability into their business models.”

Finally, Fisher discussed the role of government regulation in sustainability. Regulation is necessary, she said, because the marketplace is imperfect. “We do need the hot breath of the EPA.”

But regulation needs to be fair, she said. It should also be cost effective, drive innovation, protect the public, and level the playing field. And, because we operate in a global economy, the government needs to consider the global impact of its regulations. It needs “to get the rules of the road clear.”

Sustainability Leadership and Market-Based Initiatives

Following Fisher’s speech, the audience broke out until small groups to discuss what their companies are doing to approach sustainability.

Suzette Rhodes, LEED AP Industry IIDA, A&D Sales Representative for HermanMiller explained that her company views sustainability not as a differentiator but as an opportunity for leadership. By focusing on transparency, the company invites others in its industry to learn about sustainability initiatives and practices. “We need to take other companies with us. Sustainability is more than a competitive advantage,” Rhodes explained.

Following the small group session, Marlys Appleton, VP AIG Investments and WNSF Board Member introduced the panel dialogue. The panel featured Hye-Won Choi, Senior VP, Head of Corporate Governance, TIAA-CREF and Co-Chair, SEC Investor Advisory Committee, Beth Keck, Senior Director, International Sustainability & Strategy, Walmart, Dr. Sharon Nunes, VP, Strategic Growth Initiatives, IBM, and Dr. Ponni Subbiah, VP of Global Access Strategy, Pfizer, Inc.

These company leaders also emphasized the importance of market-based sustainability initiatives, and called for companies to incorporate sustainability into their growth strategies.

Finally, Michelle Moore, the Obama Administration’s Federal Environmental Executive gave her remarks. She called for reductions in water and energy use by the federal government, saying that it’s time for the government to “practice what it preaches.”

Above all, the summit’s leaders and participants agreed: cooperation between the industry, environmental community, consumers, and government is key in tackling global environmental challenges. If this level of dialogue continues, we may indeed be seeing a new bright line in our approach sustainability and environmental issues in business.

The days of make money at all costs are quickly disappearing. There is value to be built-in products and services that bring profit to society and the bottom line. As a busy executive woman and manager, you can use these five simple tips to incorporate social responsibility into your management style and, ultimately, your company’s culture:

1. Raise the Question
   Each time you have the opportunity to take part in developing a product, service or new strategy, ask the group what the implications of this ‘new effort’ are to the environment and to society. If there are risks to people or the planet, ask how it can be re-strategized or mitigated. You can cite examples of “socially responsible” efforts of other companies in your industry and make mention to any news articles or press releases on their website. You don’t have to have the answer, but simply raising the question may get others thinking.  
2. Check out your supply chain
   What is the impact of the products your company purchases on society? As a customer, you can comfortably ask your vendors about their CSR efforts. You may get some new ideas and new news to boast about to your customers. When selecting new vendors, look to your local area first. You can get leads from the café where you get your coffee or the restaurant where you have lunch. You will be surprised at who they know or what they overhear.  And they can help you spread the word.
3. Perform CSR check ups
   Make sure customer surveys or focus groups include questions on how they think your company can be more socially responsible and how they think you are doing so far. This will let you improve existing efforts and gain new insight directly from the customer.
4. Track your efforts
   A simple Word Document or Notes on your Blackberry which tracks the ideas/efforts,  the dates initiated, and the resources needed will allow you to quickly implement the next CSR initiative. You can look back and see what worked and what needs improvement. Having the document on hand will enable you to offer examples of successes at meetings as well as let your colleagues know the positive impact made. Make your tracking system simple so you will be consistent in using it.
5. Be an example
   As a leader, make sure you are seen recycling, hiring from local companies, checking your supply chain and tracking your efforts. You don’t always have to say it; sometimes you just have to be seen doing it.

To learn more about CSR, you can visit www.csrwire.com and www.accountability21.net

Contributed by Kevin Wilhelm, CEO of

In these uncertain economic times, companies often gravitate towards budget cuts, scaling back sustainability or “green” programs on the mistaken belief that such programs take away from the bottom-line. In reality, this thinking is the exact opposite of what business leaders need to do. Sustainability may actually be the best defense against market volatility during these difficult times.

Transparency and Trust:
Consumers, lenders, and decision makers have all been thrown for a loop over the past 6 weeks as the nation has undergone a financial crisis that would have been all but unthinkable a year ago. Consumers are not only unsure about where to put their money (banks) but also about how and where they should spend their money. As disposable income decreases, consumers will become increasingly more conservative with their spending, trying more than ever to get the most bang for their buck. Consumers will also want to deposit their money with companies they trust, think will be around for a while, and share their values.

Just as the Enron/Worldcom debacle led to Sarbanes-Oxley and a new framework for financial reporting emerged, many companies are preparing to be asked to show greater transparency, regarding issues such as climate change. This new style of reporting will likely follow many of the corporate social responsibility (CSR) reporting principles that have come out of the Global Reporting Initiative – the de facto standard in CSR reporting.

In fact, it’s no coincidence that four of the largest financial institutions that survived the crisis – Bank of America, Citibank, JP Morgan Chase, and Wells Fargo were all signatories to the Equator Principles – which considers social and environmental Risks in project financing across all sectors.

The Bottom Line:
The bottom-line is that budgets are being squeezed everywhere, including the public, private, and NGO sector. Governments across the country (City, County, and State) are facing major budget shortfalls due to decreased tax collection with the extreme being New York City which traditionally gets about 30% of its taxes from the financial industry. Companies across the board, but especially in the retail sector, are bracing for below average 4th quarter earnings, forcing companies to hoard their cash and lay off workers. Non-profits are also feeling the pinch as philanthropic giving has dried up with the market in the tank.

That being said, when it comes to how companies can save money, sustainability is the answer. In many ways, “being green” or sustainable business is smart business that focuses on efficiencies in energy, waste, and processes. Here are just a few examples of companies are acting more “sustainable” and are saving money at the same time.

Get started going green:

• Paper – By setting printer defaults to double sided and margins to “1” instead of the typical “1.25,” Sustainable Business Consulting cut paper usage, emissions, and costs by over 50% in one year with zero effect on company behavior or performance.
• Energy – The Washington State Convention Center installed more than 6,000 energy efficient lights and saved $120,000 annually with a payback of less than 1 year. Simple low cost ideas, such as ensuring that employees turn off their computers at night, can save $21/computer a year and over 920 pounds of CO2e, according to the Department of Energy.
• Travel – As air travel costs have sky rocketed over the past year, investments in videoconferencing software makes more sense than ever. A typical round trip flight from the Bay Area to NYC for instance can cost upwards of $750 for a coach ticket, and emits over 1,450 pounds of CO2e.
• Waste – Eliminating waste upfront and implementing recycling and composting alternatives helps lower waste costs and emissions. For example, the Hotel Monaco in Seattle composted its food waste and recycled its kitchen oil saving $20,000 annually. Umanoff and Parsons of Brooklyn, NY sold its leftover corrugated cardboard packaging to an outside shipping vendor and saved $2,500 annually in disposal costs.
• Water – SC Johnson’s facility in Racine, WI landscaped with native and drought tolerant plants and saved roughly $2,000 annually in reduced water and maintenance costs.

Conclusion:
Numerous companies, large to small, have experienced costs savings from sustainable practices. Above are just some easy ways to provide cost savings and improve environmental performance.

During this economic downturn, implementing sustainability within your company makes fiscal sense more than ever. It is smart business because not only are consumers increasingly asking for it, but it can improve your bottom line at the same time!

by Sima Matthes (New York City)

Exclusive of industry leadership, what do PepsiCo, Baxter Healthcare, SC Johnson & Sons and the Philadelphia Phillies have in common?

All of these companies have made a commitment to using renewable energy and carbon offsets to reduce at least part of their corporate carbon footprint, and all are partners in the Environmental Protection Agency’s Climate Leaders.

As previously reported by The Glass Hammer there is a growing—and essential—attention to the environmental impact of business activities within the corporate community. An increasing number of corporations are trading and purchasing carbon credits as a way to offset the greenhouse gasses produced by their routine operations.

For the uninitiated, a primer:

• Renewable energy is energy from sources other than fossil fuels: wind, solar, nuclear and hydropower
• Carbon offsets or carbon credits enable individuals and businesses to counterbalance the effect of the carbon dioxide generated by the company’s—or an individual’s—daily activities by paying a fee to companies that, in return, plant trees and/or invest in renewable energy.

There are three ways to use carbon emissions trading to achieve remission reductions. One is an emission cap and permit trading system. This sets the emission level permitted at a fixed amount while the price for the offset credit remains fluid and adjusts with the market.

The second is an emission tax, which fixes the price while the emission level is allowed to vary according to the corporation’s activity. The third choice is a hybrid known as a safety valve, which sets up both an emission cap and a tradable permit with a minimum or maximum capped price for the permit.

Each of these has its benefits as well as its disadvantages. When the emission level is capped, it’s easier to measure the environmental impact; however, the increased cost and unspecified expense may make it less likely that companies will opt to comply. The solution may be in setting the emission level at a very low cap so that companies have a financial incentive to stay within the acceptable range of emissions.

Conversely, the emission tax seems to assure that as long as companies are willing to spend to offset their emissions, they may pollute at will. The key to this system is a high premium on emissions to provide an incentive for companies to keep their emissions low. Finally, the safety valve allows governments to adjust the price and caps on emissions as the market will bear. The elements can be adjusted to have the same affect as either of the two schemes above.

Of course, there is a fine balance that must be struck between costs of reduction and benefits of reduction. According to Wikipedia, “With the creation of a market for mandatory trading of carbon dioxide emissions within the Kyoto Protocol, the London financial marketplace has established itself as the center of the carbon finance market…The voluntary offset market, by comparison, is projected to grow to about $4 billion by 2010.”

Whatever the chosen scheme, it is clear that growing numbers of large corporations are incorporating environmental considerations into their corporate DNA. The EPA’s Climate Leaders are a who’s who of Fortune 1000 companies. In addition to those above, the list also includes Dell, Inc., 3M, Mack Trucks, Miller Brewing and Unilever. All the partners have committed to “reducing their impact on the global environment by completing a corporate-wide inventory of their greenhouse gas (GHG) emissions, setting long-term reduction goals, and annually reporting their progress to EPA.”

PepsiCo, for example, uses solar energy at their Frito-Lay facility in Modesto, California to produce 75% of the energy required to produce Sun Chips at that location. Additionally, according to their sustainability report, they have “reduced per-pound water use by more than 38%, manufacturing fuels by more than 27% and electricity by more than 21% since 1999; and our Quaker, Tropicana and Gatorade businesses have reduced manufacturing fuels by 26%, electricity by 24% and water by 12% in the last three years.”

In addition to being a Climate Leader, PepsiCo was the first consumer products company to join the U.S. Climate Action Partnership. PepsiCo is also a leader in purchasing renewable energy certificates to offset the electricity costs of all of PepsiCo’s United States-based facilities and offices.

Baxter Healthcare identifies climate change as “the most pressing global environmental challenges of this generation” in its sustainability report. Energy conservation is at the center of their plan to reduce the corporation’s environmental impact. They’ve switched from heating oil to natural gas. Their overseas facilities in Turkey and Spain operate cogeneration units. “These units capture heat created during power generation on-site and apply it to other useful purposes. This,” according to their sustainability report, “increases efficiency and improves energy reliability while reducing cost.”

Baxter is pioneering emissions trading as “a founding member of the Chicago Climate Exchange (CCX), the world’s first and North America’s only voluntary, legally binding, rules-based GHG emissions-reduction and emissions-trading system, carbon registry, trading and emissions-verification program.” They are advocates for renewable energy at the state and federal levels, and have initiated several renewable energy projects at their locations in the United States and overseas.

Those who deride the effect of carbon offsets are quick to call it a tax on businesses that are successful. And there is some truth to that—this is, after all an additional actual financial cost to companies operating in a manner incompatible with sustainability—however, the cost of not doing anything at all is much higher.

According to the Carbon Neutral Alliance, a program that assists non-profits in reducing their environmental impact, businesses that wish to become carbon neutral can take the following steps to move toward that goal:

• Calculate greenhouse gas emissions (GHG) by tonnage—how many tons of carbon dioxide is your business emitting?
• Reduce energy use-this is often the most easily achievable step. Companies that make energy efficiency a priority notice a lower cost of doing business as well as helping reduce GHGs. As an additional bonus, companies may notice an increase in productivity when employees travel less—telecommuting, carpooling or using public transit—and when meetings are conducted via phone or computer conferencing rather than in person.
• Purchase renewable energy AND purchase carbon offsets—as suggested elsewhere in this article, this is a part of the path that must be trod thoughtfully. An organization must demonstrate a commitment to reduced energy usage and not just use renewable energy or offsets to justify excessive energy consumption.
• Education and collaboration—Corporations have a responsibility to educate their employees, their clients and the communities they serve about the issues of global warming and about the importance of putting the steps above in place at home and in other business environments.

Corporate leaders need to take the initiative and view the environmental risks as a fiduciary issue, and integrate solutions at every level of the company, from investors to consumers, from directors to staff, in order for the change already in progress to become the global solution that’s needed.

Sustainability is the new buzzword in Corporate America – but what does it actually mean and why is it so important? Corporate sustainability grew out of the concept of sustainable development, which means to “meet the needs of the present without compromising the ability of future generations to meet their own needs.” In terms of corporate goals, sustainability is the balancing of short-term financial gains with the “long-term goal of balance and survival”, as mentioned by Deutsche Bank CEO Seth Waugh during his opening words at this year’s Women on Wall Street conference, as reported on The Glass Hammer.

According to a white paper sponsored by BT and Cisco Systems, “Use of resources, waste management, pollution, climate change and biodiversity are all issues of great importance which, in the traditional business model, have had to give way to the maximization of shareholder return. Today that approach is no longer viable in the long term. Business practices that result in products with huge amounts of waste embedded in them; that involve the consumption of large amounts of energy; that undermine local communities or contaminate the environment can no longer be justified on the basis of shareholder return.” Corporate sustainability “takes into account corporations’ obligations not just to investors, but to the communities they serve and the environment as well.”

While environmental stewardship is traditionally what one thinks of when one thinks of sustainability, the corporate sustainability concept now being embraced includes three elements of sustainability: social, economic, and environmental. And the panelists at the WoWS conference certainly did show us diverse examples of how corporations and individuals are working towards the three-pronged sustainability. From the development and ultimate use of the sustainable computer (a long-lasting computer that is created from all recycled parts and can, once obsolete, be recycled) as discussed by Seth Waugh, to the creation of the green collar job training program, as created by Majora Carter through her work as founder of Sustainable South Bronx, to the empowerment of women through business development and education, which is the focus the Goldman Sachs 10000 Women program, it is clear that there are many options and opportunities to integrate economic, social and environmentally-sustainable practices.

Of course, this movement has sparked a support industry designed to assist companies in the establishment and integration of sustainable practices. The Environmental Performance Group, based in Utah, offers sustainability programs and helps companies and organizations to lessen environmental impacts and carbon footprints, improve performance, and add value. Another such company is Majora Carter Group LLC, dedicated to helping clients connect the value of government, business, industry, and community, to create sustainability.

But why the big movement towards sustainability? Corporations large and small are beginning to recognize the economic value of integrating ethical practices into their corporate culture. According to a white paper referenced above, a 2007 Goldman Sachs study of six industrial sectors – energy, mining, steel, food, beverages and media – “those companies considered leaders in implementing environmental, social and governance policies designed to create sustained competitive advantage had outperformed the overall stock market by 25 per cent since August 2005. Within their own sectors, 72 per cent of these leading companies had outperformed their peers over the same period. Also, a separate study released at the same time by McKinsey & Company showed that more than 90 per cent of chief executives are doing more now than they did five years ago to incorporate environmental, social and governance issues into their companies’ strategy and operations.”

Corporate America is slowly, but surely, realizing that things cannot continue to go on the way they have – and that change is an absolute necessity. “Sustainability and its alter-ego, corporate social responsibility (CSR), have long fallen under the aegis of risk management. This view is changing, with investors and customers increasingly rewarding organizations which wholeheartedly embrace sustainability with superior sales and shareholder value.” Add to that the management and employees within the corporations who are personally committed to social, economic and environmental sustainability and you have a recipe for sustainable success.

by Pamela Weinsaft (New York City)

On October 2nd, 2008, top women in sustainability from Fortune 500 companies, financial institutions, and non-governmental organizations gathered together at JP Morgan Chase for the Women’s Network for a Sustainable Future’s 5th Annual Businesswomen’s Sustainability Leadership Summit. This year’s theme -Leading Change: How to Champion Sustainability in Your Company.

Women’s Network for a Sustainable Future is committed to the mobilization of businesswomen in support of social responsibility and to advancing sustainable development by giving women in the workplace a voice in the sustainability debate. Participants at this year’s conference exchanged ideas, experiences and best practices concerning sustainability while networking and forging relationships with similarly-minded women.

Moderated by Professor Anat Lechner, Clinical Associate Professor of Management and Organizations at NYU Stern, the main panel focused on how to build a culture of sustainability, even in the face of the current economic crisis. The companies represented on the panel-AIG Investments, American Express, JP Morgan Chase, and Intel-embodied the many different paths to a corporate culture of sustainability. For some companies, like Intel, the sustainability culture begins at the very top, with a CEO who makes it a priority for the organization based on his or her personal beliefs. For other companies, like JP Morgan Chase, the effort emanates from the initiative of individual employees within the company, which then pervades the company’s culture. Still others, like American Express, recognize that a commitment to sustainability is a key to attracting and retaining top talent.

A critical component of the discussion concerned strategies for incorporating and ingraining sustainability initiatives in the corporation’s culture. Marlys Appleton, Vice President of Sustainability for AIG Investments, stressed the importance of participation in all the levels of the company. She mentioned allowing each constituent class to determine how it will comply with the sustainability goals put in place so that each has the flexibility to come up with a suitable strategy. Lybra Clemons, Director of Global Diversity and Inclusion at American Express, stated that while people are generally supportive one “must communicate the business case” and help those at all levels understand why sustainability is good business. Shelly Esque, Director of Global Corporate Citizenship of Intel, agreed. “Intel culture is about DATA….We have to clearly show that performance improves, that we save money by recycling, [as a result of a sustainability culture.]”

After the main panel, attendees split into smaller workgroups to answer questions posed and brainstorm as to how to affect change within their respective organizations. Following spirited and insightful discussions in the 3 to 4 person groups, the participants reconvened to share
solutions and strategies.

Finally, keynote speaker Gail Blanke, motivational speaker and author of the book “Between Trapezes” took the stage to talk about “How to be a Champion for Change,” and the importance of having a greater vision. “Build the castle first, because that’s where the magic is. That’s the best of us.” To do that, she mentioned, we must let go of the old vision of the world, of all the “life plaque” that clogs up our life.

Ms. Blanke advised to “adopt an entrepreneurial spirit” in everything we do: to be passionate, risk-taking, agile. “We have to be light on our feet, ready to dance. If we stand in one place too long, we become flatfooted.” She also warned against letting our own interpretation of other people’s words and actions affect us. “As Einstein said, ‘Ultimately there are no facts; it’s all just theory’…you can make up the interpretations that propel you forward.” She wrapped up by telling us to continue to fly high, as “there is no force that can keep you from the thrill of yourselves.”

Empowered and inspired, the participants, speakers and guests gathered again to exchange thoughts and business cards, as well as insights and stories, over some good wine and hors d’oeuvres.

Corporations that initiate and maintain programs of corporate responsibility and environmental stewardship hold the keys to the future. And, with the Women’s Network for a Sustainable Future leading the way, the women who are developing and promoting the sustainability culture within those corporations are the ones who are forging those keys.