DALLAS BUSINESS JOURNAL

May 21, 2007
By: Anna Clark

"Companies Can Turn Green Theory into Practice"
 

The greening of America is not just the latest trend; it's a cultural revolution.
 
Green has gone mainstream, as evidenced by a growing number of consumer magazines issuing their first-ever green issues, such as Glamour, Fortune and Sports Illustrated. What is the significance of this phenomenon for the business sector?
 
Large companies with a reputation for being green, such as Starbucks and Whole Foods Market, experience a remarkable degree of customer loyalty and earn a fortune in media attention. But for small and medium-sized enterprises, or SMEs, it may appear that big businesses are the only ones getting the buzz for going green.
 
What, if any, real advantages around sustainability exist for SMEs and what does the practical application of sustainability principles look like?
 
First, let's define sustainability. An aerial view of sustainability shows us a principle that, when applied with commitment and consistency, can preserve our world intact for our grandchildren tomorrow even as we consume resources today.
 
When this principle is applied to the business sector, we get the concept of "corporate sustainability," which strives to balance the financial, social and environmental aspects of an organization.
 
The application of corporate sustainability to a company will depend on variables such as the industry and size of the organization. Specific applications of sustainability can range from retrofitting facilities with energy-efficient features to integrating recycled and/or biodegradable materials into product design and packaging. These are just a few applications, though numerous others exist and many more are still at the conceptual stage.
 
While few industry business leaders would argue the value of sustainability as a goal (on the record, at least), quite a lot still remains to be done in practice.
 
Given this reality, how does the small business owner or even the executive management team of a mid-sized corporation begin to apply such a lofty ideal to daily operations?
 
There are many methods but only one formula: personal leadership, an inquiring mind and a little bit of creativity. The good news is that for the pioneering few that eagerly embrace sustainability, the payoffs of going green are significant and the risks are nearly nonexistent.

Green pizza
 
Perhaps the best way to demonstrate the applications and benefits of sustainability to small business is by example.
 
Hot Lips Pizza in Portland, Ore., makes its pizzas with locally-grown organic ingredients and is delivered in small, fuel-efficient vehicles.
 
But you need not operate on the West Coast to cash in on going green. Even in Dallas, a town known for its culture of conspicuous consumption, we can find successful strategies for sustainability at work. Up-and-coming fashion designer Laura Chapuis uses organic fabrics for her line, Habitude, which has been written about in Shape and Town and Country magazines
 
Alan Hoffmann, a Dallas-based homebuilder searching for a better way to build, discovered insulated concrete forms, arguably the most energy-efficient type of home construction available. The Alan Hoffmann Co. is now selling custom homes before the designs are even drawn and has earned media coverage in numerous regional and industry publications.
 
The question small and medium-sized companies should be asking is no longer why should they bother with sustainability, but rather, how can they leverage sustainability to their advantage to increase their market share and brand loyalty? Even companies that are soft on sustainability are finding ways to capture some of the market simply by adding a green product or service to the mix. Retailers, for example, can begin by introducing an organic line or simply changing the bags they offer customers. When crafting a sustainability strategy, the best place to start is to study what, if anything, the competition is already doing. Poll your clientele. Get creative. This is the fun part.
 
The wise will at least consider the cost savings available by upgrading their facilities to the highest standards of energy efficiency. The Energy Star Web site is rife with case studies of SMEs that have retrofitted their facilities with Energy Star features, recovering their initial investment within three years, and saving thousands of dollars per year on operating costs.
 
Adding a bit of wind power to your energy mix can also earn you points with your customers, and in many cases reduce your energy bills. Companies taking measures in energy efficiency can earn recognition via several EPA programs, such as Climate Leaders, to mention just one of many public relations possibilities.
          
The simple truth is that personal leadership is the key to successful implementation of sustainability initiatives, no matter the size of the company. For SMEs, going green is largely a voluntary action dependent upon the vision and conviction of one or a few individuals within the organization.
 
The advantage of this is that SMEs are free to experiment with sustainability without the pressures of meeting compliance regulations or pacifying activist groups.
 
Enterprising companies with a flair for promotion are apt to earn immediate recognition from stakeholders and the media for their efforts.
 
CLARK is president of EarthPeople, a Dallas-based consulting firm that helps companies of all sizes save money and bolster their brand through the principle of sustainability.