Integrated Reporting: It’s Not Just for Companies Anymore
The U.S. Army has embraced sustainability reporting
Hydrokinetics: The Biggest Source of Renewable Energy You Never Heard Of
Renewable energy has certainly made tremendous progress in the past decade. Indeed, most people would acknowledge that it has grown from being little more than a mascot, to a full-fledged member of the energy generation team.
And yet, despite the fact that people as reputable as the DOE’s National Renewable Energy Laboratory (NREL) have come out and said that renewables could provide 80 percent of our electricity by 2050, there are still plenty of naysayers who remain convinced that renewables will continue to play little more than a minor role in our energy future.
It is a simple, but inconvenient fact of life that we don’t know what we don’t know. Our ability to predict the future is ultimately limited by our imaginations. Indeed, if we were to go back 37 years and ask who, if anyone, came close to predicting what our world looks like today, it would more likely be the science fiction writers than the scientific authorities, who, encumbered as they were with all the facts, had plenty of reasons why certain things couldn’t possibly be done, in the absence of technological breakthroughs that would come later.
Today’s story is about a potentially very large source of renewable energy that has received very little attention: hydrokinetics, which is the production of energy from the flow of moving water. The term applies to both ocean tidal power systems as well as river flow systems, both without the benefit of dams.
According to the Energy Information Administration (EIA), this source of clean energy could very possibly produce as much as 23 GW by 2025 and 100 GW by the year 2050, and this just barely scratches the surface of its technically achievable potential. This latter figure represents roughly 10 percent of our present generation capacity, a sizeable chunk, especially considering that, unlike solar or wind, this power can be far more predictable and reliable. For comparison purposes, the U.S. had 51.6 GW of installed wind power as of September 2012. According to Christopher Mahoney, Director of Communications for the Electric Power Research Institute (EPRI), “technically recoverable wave energy alone could provide about 25 percent of U.S. energy demand.” (Cited in Mechanical Engineering, "Waves, Currents & Electric Potential", by Mark Crawford, Feb. 2013).
We have already written about various types of tidal systems, including the barrage, the tidal fence and the tidal turbine. Other types include the oscillating water column and the heave surge device. Some companies involved in this space include Ocean Power Technologies, which partnered with Lockheed Martin on a 19 MW project in Australia. Aquamarine Power, a Scottish Company with an offshore pump called an “oyster” which powers an onshore hydro plant, claims they have a 64 GW installed capacity potential.
Less well known are methods for capturing power from flowing rivers without a dam. Verdant Power’s 1.05 MW Tidal Energy Project at Roosevelt Island in NYC’s East River will use turbine generators mounted to the bottom of the river that can sway to follow the direction of the current.
Last summer, Ocean Renewable Power Co. installed the first of several planned turbine generators in Cobscook Bay, Maine, a 180 kW unit. It became the first grid-connected tidal energy project without a dam in America. Two more units are scheduled to be installed this coming fall (see video).
With each passing week, month, year, we can expect to see new innovations in these areas that will not only help us achieve NREL’s prediction, but quite possibly surpass it with years to spare.
The Overlooked Sustainability Leaders in Business
Who are the real sustainability leaders in the business world? The various lists organizations have released in recent years, including here at TriplePundit, are always controversial, and sometimes our perceptions interfere with reality. Those of us old enough to remember the Exxon Valdez oil spill in 1989, cringe at the thought of considering ExxonMobil as “sustainable” in any way, shape or form. Apple, widely lauded as a good corporate citizen when it was the underdog during the 1990s, has attracted much criticism in recent years for good reason--but still enjoys a reputable image.
Technology companies are often seen as leaders, and TriplePundit has repeatedly showcased companies such as SAP, IBM, Dell, Intel and Cisco for their solid work on social and environmental issues. But who are the unsung heroes of the corporate sustainability movement? Last fall’s BrandLogic survey, and an analysis by The Conference Board, discuss some of the “challengers” who are emerging as true corporate sustainability leaders. Some of the companies may surprise you; others will be controversial.
Using data from CRD Analytics and The Institute for Supply Management, BrandLogic’s study divided almost 100 companies into four groups: leaders, laggards, promoters and challengers. The study defined challengers as firms with good sustainability performance but low perception ratings. Among the up-and-coming “challengers” who perform well, but are just not communicating their work at the rate matching their achievements, include:
UBS: Its is difficult for any bank to gain the trust of the public these days, but UBS has a long record of social and environmental responsibility. Energy efficiency, responsible supply chain and a spirit of inclusiveness within the company are among UBS’s successes--and some of these programs date back to the 1970s. Citi, HSBC and Bank of America are additional financial institutions that rank in BrandLogic’s “challenger” category.
AstraZenica: Pharmaceutical companies are emerging as sustainability leaders, including AstraZenica. Like many of its competitors, the company has worked on expanding access to health care to those who need it the most; sensitivity towards research ethics; and supplier diversity are amongst the tools in AstraZenica’s CSR kit. Roche, Merck and Bayer also round out the pharmaceutical “challengers.”
Allianz: The Germany-based insurance giant has been on the Dow Jones Sustainability Index since 2000. A reputation for transparent carbon disclosure, investment in electric fleets and a hefty investment in training its employees boost Allianz’s reputation in the BrandLogic Survey--just not enough to qualify it as a “leader.”
Surprises? Companies we have covered at TriplePundit, and of which I personally think very highly, are amongst the challengers. HP, UPS, Nike and British Telecom are in this group.
And what may cause some consternation, a bevy of energy companies including ExxonMobil, Chevron, BP and Shell--generally because of performance compliance, governance or social issues.
The gut reaction from corporate headquarters may be to push out those sustainability communications even more. But before these companies decide to bombard TriplePundit and other publications with more press releases about how they are doing good, they may want to consider who their audience really should be.
As a follow-on report by The Conference Board points out, there are certain groups where corporate social responsibility is key when it comes to making important decisions--especially on social issues, where stakeholders are becoming both much more aware and vocal. Investment professionals are basing decisions even more on all facets of a company’s performance, not just the financial. Purchasing managers are starting to favor suppliers who strive to become more sustainable. And recent university graduates, who are focused on melding business ambition with social good more than ever before, want to work within a company they believe shares their values. The confluence of more conscious investment, sustainable supply chain management and the need to attract talent indeed shows that corporate social responsibility means smart business.
Leon Kaye, based in Fresno, California, is a sustainability consultant and the editor of GreenGoPost.com. He also contributes to Guardian Sustainable Business; his work has also appeared on Sustainable Brands, Inhabitat and Earth911. You can follow Leon and ask him questions on Twitter or Instagram (greengopost). He will explore children’s health issues in India next month with the International Reporting Project.
[Image credit: Allianz]
Corporate Giving Programs Still Going Strong
Corporate giving programs are still a large component of many company’s social responsibility strategies. The roots go back to corporate philanthropy dating back to the era of the Rockefellers, Morgans and Carnegies. The practice of giving has its share of critics, including here on TriplePundit. And while writing checks does not substitute for actually “doing good” on social, environmental and corporate governance issues, watch the practice to continue. And it should: at least here in the United States, many institutions, from leading cultural centers to public libraries, have their roots in the Gilded Age of the late 19th century.
Now the structure of many companies (i.e., they are publicly owned) complicates the efforts of companies that wish to launch more robust corporate social responsibility (CSR) programs. And more stakeholders demand that companies move beyond a foundation or doling out checks. So these companies are responding in kind, from Unilever boldly committed to doubling sales while slashing its economic impact to Ford tinkering with recyclable and even edible materials in its cars--but both companies still run giving programs. Corporate giving programs are here to stay, and are one tool in a company’s kit to engage their employees and improve the communities in which they conduct business. We cover a few leading examples below.
Microsoft: Microsoft may still be a behemoth, but is a dutiful one and an exemplar on the CSR front. Thirty years ago the once “tiny” company with 200 employees raised $17,000 for nonprofits. Now that yearly mark has topped $1 billion: the contributions of 35,000 employees have reached 31,000 non-profits since the program launched in 1983. Year after year, the company matches its employees’ contributions, and Microsoft raises additional funds from a bevy of activities from a 5K run to online auctions. The giving goes beyond cash; employees at Microsoft have access to an online volunteering matching tool that connects them to nonprofits who can benefit from their skills. Microsoft Citizenship is indeed no oxymoron--its emphasis on giving is part of its new $500 million YouthSpark initiative to solve unemployment problems while building technical skills around the world.
Toyota: Since 1974, Toyota and its eponymous charitable foundation has completed much good work on both sides of the Pacific. In 2010, the Toyota Foundation shifted its focus as a response to the increased threats across the globe, including environmental degradation and food security. From its headquarters in Nagoya, Toyota provided grants totaling almost $6 million (¥533 million) during FY2011; out of its U.S. headquarters in Torrance, CA, Toyota USA has donated over half a billion dollars to American nonprofits since 1991.
IBM: Corporate giving at IBM is an example of how a company can link community building to the company’s overall strategic initiatives. Each year, the Armonk, NY-based firm provides tens of millions of dollars for a variety of grant programs. The Smarter Cities Challenge will involve 100 cities divvying up $50 million in grants that will fund projects ranging from urban farming to leveraging technology for greater civic participation. A community grant program links IBM employees and retirees who wish to volunteer for nonprofit groups. Retirees in North America also can have IBM match their donations to organizations such as schools, environmental groups and even hospices. Of course, technology is a large component of IBM’s corporate giving, with millions given annually to support information technology projects within the nonprofit sector.
So philanthropy and corporate giving programs are not going away; this decades-old movement has merely morphed into a more democratic process that touches more people with a wide array of passions. Other companies have a long tradition of doing well: Target has been an engaged community stakeholder for a half century and Boeing is well regarded for its spirit of generosity. Add the countless small and medium enterprises whose donations of time and money go unheralded, and corporate giving will proliferate across the globe even more in the future--thankfully as there are a multitude of problems that must be solved that governments cannot handle.
Did we skip someone? Please share your examples of best-in-practice corporate giving programs with us.
** The author would like to thank Dr. Marcy Murninghan, Susan McPherson of Fenton and Dave Stangis of Campbell Soup Company for their input.
Leon Kaye, based in Fresno, California, is a sustainability consultant and the editor of GreenGoPost.com. He also contributes to Guardian Sustainable Business; his work has also appeared on Sustainable Brands, Inhabitat and Earth911. You can follow Leon and ask him questions on Twitter or Instagram (greengopost). He will explore children’s health issues in India next month with the International Reporting Project.
[Image credit: Microsoft's Technet Blog]
Ford’s “Go Further” Branding Strategy Anchored with CSR and Sustainability
Business Insider recognized Ford Motor Company as one of the world’s top-ten “hottest brands.” Ford’s peers in this ranking include Google, Kindle and YouTube. Tellingly, no other car company made this list. This branding success has helped Ford to sell 2+ million Ford-branded vehicles in the U.S. for the second year in a row.
Ford's marketing research published for the first time
For the first time, Ford has published the market research upon which they are crafting this brand leadership success. Their view for winning brand leadership is based upon this analysis:
The social contract as we know it has been broken; mistrust of corporations, governments and media is rampant. Weary of misinformation, people are reappraising their relationships with companies and brands, making integrity a new
form of competitive advantage.
Ford: Go Further
Go Further is Ford’s branding response to this changed competitive landscape where consumer trust is won through integrity, not advertising hype. Ford’s Go Further program seeks to build customer loyalty by delivering cars and trucks that are fun to drive, price competitive, are leaders in fuel economy and also support achieving lower tailpipe emissions. Go Further is Ford’s path for delivering on consumers’ search for value and values in the products they buy.
Electrification
Electrification is a key technology for executing Ford’s Go Further strategy. Ford has designed their cars and trucks to be smart digital machines. Digital technology enables their gasoline fueled Eco-boost engine to offer the power of a larger gasoline engine from a smaller four- or six-cylinder engine. This downsized, but powerful, engine delivers performance, fuel economy and lower emissions at a competitive price.
But the real future of Go Further is the introduction of electrification into Ford’s drive train and braking systems. Ford has just launched a series of hybrid, plug-in hybrid and total electric cars based upon their electrification technology made in the USA. The price for these cars built around electrification are currently higher than Eco-boost cars so while they are achieving encouraging sales results, their sales levels are modest compared to all-gasoline fueled Ford cars and trucks sales.
Future electric car sales driven by higher gasoline prices, economies of scale and increasing consumer awareness
Ford Motor Company sees electrification of the automobile as its sales future based upon three major trends. Gasoline prices are the most obvious first trend. Today, the United States is producing more oil than ever before in its history including during the 1940s when Texas alone represented 75 percent of the world’s oil supply. But that doesn’t mean Americans will see the return of $1-2 per gallon gasoline prices because the economic reality in today’s global oil market it that oil demand, not supply, is driving the price at the pump. This trend is opening the cost-competitive door for electrification of cars and trucks as pump prices climb up into the $4 and $5 per gallon price range.
Manufacturing economies of scale is the second trend driving electrification. The per unit cost of electrification will decline over time as manufacturers like Ford figure out how to produce more electric cars for a lower per unit cost. The auto industry is investing in massive research to find new materials that will drive down the cost of batteries. Success measured by electrification technologies gaining price competitiveness will stimulate an electric car sale explosion having the potential for freeing customers from pain at the pump.
The third important trend is the increasing awareness among consumers that there are costs associated with burning fossil fuels beyond the price at the pump. Market research is pointing to a sea-changing growth in awareness among consumers regarding climate change. Over 65 percent of consumers over the age of 18 and younger than the age of 65 view climate change as a very or somewhat serious problem. Seventy percent of the Latino community, that is America’s fastest growing demographic, holds this opinion. This current consumer opinion aligns with the car company’s focus upon introducing electrification technologies and working to drive their costs toward competitiveness against polluting fossil fuel technologies.
John Viera, Ford Global Sustainability Director
This 3-minute video interview of John Viera, Ford’s Global Sustainability Director, outlines Ford’s Go Further “brand promise.” His remarks are insightful for every business seeking to win customers who are actively searching for “in me, on me and around me” solutions. He talks about Ford’s focus on offering superior product designs, best-in-class safety, introduction of smart technologies and being green.
http://www.youtube.com/watch?v=mMRAJJcrqok
This is the second article of a four-part case study on how Ford is going green. Their best practices can be used by every business to grow revenues and win customers. The first article in this article series profiled Chairman Of The Board Bill Ford and CEO Alan Mulally on Ford’s CSR vision and how it is driving sales. The next article will be an interview with Ford’s Global Electric Fleet Director on their electrification technologies and the last article will be a test drive review of the Ford plug-in electric C-MAX Energi profiling how digital technologies will make our driving experience more fun, cost less and mean more.
Bill Roth is an economist and the Founder of Earth 2017 He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017.
Making Sense of the Circular Economy
If the name Ellen MacArthur rings a bell, you're probably thinking of the person who set a record for circumnavigating the world in a high tech sailboat, solo no less, but that's not the only circle for which she is known. Ms. MacArthur, through the charitable organization that bears her name, has formulated an economic concept called the circular economy, which is quickly becoming a buzzword around sustainability circles.
As far as buzzwords go, "circular economy" is a fairly pedestrian combination (as opposed to, say, Sex Pistols) and perhaps that's just as well. Rather than getting distracted by the words, it's far more interesting to pick through the concept itself and see how MacArthur's vision of economic growth meets the challenges of a world of shrinking resources.
The Circular Economy
MacArthur was profiled and interviewed just last week on the Harvard Business Review blog by Eric Hellweg, and for those of you who don't have time to read the whole thing (though you really should, it's fascinating), the circular economy concept basically boils down to managing resource scarcity in the context of consumer demand for environmental responsibility.
As described by the Ellen MacArthur Foundation, it comes out like this:
"The circular economy is a generic term for an industrial economy that is, by design or intention, restorative and in which materials flows are of two types, biological nutrients, designed to reenter the biosphere safely, and technical nutrients, which are designed to circulate at high quality without entering the biosphere."
Why the Circular Economy is more than mere recycling
While the emphasis on reentering and circulating call recycling to mind, MacArthur's concept of a circular economy is on a different plane entirely. The Foundation's website is careful to note the difference by referencing Heather Rogers, journalist and author of Here Today, Garbage Tomorrow:
"One of the biggest confusions around a circular economy framework is that sparked by the word ‘recycling’...'The vast majority of wastes are created during the manufacturing process, and that is where we should focus.'”
Recycling puts the onus on consumers to use goods more carefully and to dispose of the leftovers responsibly. The circular economy asks that manufacturers produce goods that involve less waste in the first place, and that enable consumers to integrate recycling into their daily habits more intensively.
Case studies for the Circular Economy
When you look at the Foundation's case studies, the potentials for economic growth become clear. That's especially true when you consider that "consumers" doesn't just mean individual householders, it also means companies that consume products through their supply chains.
The waste oil sector in England, for example, was historically focused on animal feed until new legislation targeted biofuels. The Yorkshire waste oil processor Brockelsby Ltd. adapted not only by pivoting to the biofuel market, but also by double-purposing its operations as a research and development platform to find new values for low-grade waste products, which normally would be discarded.
Another Foundation case study is Massachusetts-based Digital Lumens, which aims to help industrial customers transition out of the "criminally inefficient" incandescent light bulb into high-efficiency LEDs integrated with an energy management system. The company is transitioning, too, from an equipment sales model to a service-based model that could enable it to reclaim spent or damaged components more efficiently.
One final example is New York's Ecovative, which produces fully compostable bio-based packaging products that stand in for petroleum-based plastics. Ecovative's unique approach is to literally custom-grow its packages using fungi, which has caught the eye of green-transitioning companies like 3M and Dell among others.
Where the rubber hits the circular road
The sustainability foundation of the circular economy is interesting enough in itself, but real proof of the concept's viability is the potential for economic growth.
To buttress the case for the circular economy, the Foundation has begun to issue detailed reports on the economic benefits of transitioning out of "an increasingly resource constrained 'take-make-dispose' model," both in the short term and over the long run.
The first report, in 2011, took a look at the stimulating effect on European Union manufacturing sector from economic activity related to product development, remanufacturing and refurbishment.
The second report just came out in 2013, and it focuses on applying the principles of the circular economy to "fast-moving" consumer goods, namely food, beverages, textiles and packaging, which also happen to account for a good deal of municipal waste while absorbing - and wasting - a significant amount of agricultural output.
[Image: Circle inversion by fdecomite
Green Energy Options Get a Boost Through Electric Choice Programs
By Yogesh Mankani
When green energy options are underfunded, they don't get equal time in the marketplace. Consumers might not even know that green energy alternatives are available. Because of this, consumer will choose only what they know - traditional energy sources like coal, oil, and natural gas.
However, electric choice is changing all of that. Electric choice is a program available in 17 states and the District of Columbia. Now consumers have a choice as to what kind of energy powers their home. Not only will this competition help lower energy prices for the end user, but it lets consumers vote their conscience and support what they think is the best energy source.
What is Energy Choice?
Right now, most consumers pay their utility bill without giving it much thought. They know they receive energy to their homes to power their TVs, their hot water tank, and other electronics. However, they typically don't understand where the energy comes from. Most energy is generated by fossil fuels. Oil, natural gas, and coal represent the major sources of energy in the world.
However, green options, like solar, wind, and hydro-electric have made their way onto the scene. These energy sources represent only a fraction of the total energy produced in the marketplace, but they're being given the opportunity to compete with the "big boys."
Benefits of choice
When you choose your supplier, you're voting with your wallet. If you believe that green energies are more sustainable than oil, natural gas, and coal, then you can send a message to these companies by purchasing your power from green energies like wind and solar.
It's sort of like choosing the right grocery store when you go shopping. Some grocery stores will have what you need. Others won't. Either way, you get to decide which stores get your business. In the energy industry, it's traditionally not that easy. For one thing, there are existing infrastructures that are owned by power companies with close ties to the fossil fuel industry.
You can overcome this through new deregulation in the energy industry since power companies now have to offer you a choice of energy suppliers. Yes, your power company will still deliver the energy, but you can choose to source your power from whomever you think will provide you with the best energy.
The three main sources of green energy include wind, solar, and hydro-electric.
Wind Energy - Windmills draw their power from the sky. Wind turns windmill blades which, in turn, pass through to a generator. The mechanical energy of the windmill blades is transformed into electrical energy. It's not a new concept though. Wind energy is something humans have used in some form since at least 5,000 B.C. - when it was used to power boats on the Nile River. Today, windmills are used to power homes. While wind turbines tend to perform best where there is constant wind, modern windmills are self-adjusting and will always attempt to face the wind to generate energy. With wind power, you can expect monthly savings between $50 and several hundred dollars depending on where you live.
Solar Energy - Harness the power of the sun. NASA has been making use of solar energy for years (on satellites in space). Massive solar panels trap light and heat from the sun and convert it to electrical energy. Again, this kind of thing isn't new. It's thousands of years of years old. Today, however, highly efficient systems are capable of powering entire homes, office buildings, and experiments have been used to test the technology on vehicles. With this as your energy source, depending on where you live, you could save anywhere from $50 to well over $100 per month by switching to solar.
Hydro-Electric - Release the power of a river, and you'll have almost unlimited power at your fingertips. Hydro-electric has been used for many years to generate electricity for homes and offices. This form of energy has been in use, in one way or another, for at least 2,000 years. It was the Greeks that first used it to grind wheat. Today, we use it to power electrical gadgets. If you live in the western part of the U.S., you could see excellent savings on your electricity bill since this is where much of the hydro-power is generated.
Choices, choices
What you choose is largely dependent on where you live. Due to terrain restrictions, and seasonal variations, solar panels just aren't suitable for some areas of the U.S. Likewise, windmills only do well where there is sufficient wind. For hydro to work, you need a water source that can be harnessed. In that sense, your choices are limited. Even so, you have more than just coal, natural gas, and oil to choose from. Choose wisely, and reap the savings.
Yogesh Mankani is an environmental and energy supply researcher. He enjoys sharing his findings and insights on various environmental blogs. Visit www.Saveonenergy.com to learn more.
Businesses Embrace the Wisdom of the Crowd
By Tess Riley
From start-ups to large corporations, businesses are crowdsourcing their future. But is such a strategy wise?
Before the dawn of digital conversation, it made sense for a business to decide on its strategy first, and then go public with it. The thinking went on behind closed doors, perhaps with the help of a select group of stakeholders from the outside world. Today, things are happening backwards: first you ask the public, and then you publish the strategy.
It's partly down to advances in ICT. Digital platforms mean businesses can ignite and sustain conversations with the outside world, letting new expertise inform their activities and decisions. Some businesses are taking this to heart, asking the crowd to help them find the best way forward.
The implications for sustainability are colossal. For businesses looking to nudge the public into new behaviours more in harmony with the resources to hand, engaging them from the outset is crucial. And for consumers and stakeholders wanting to see a bit more leadership on behalf of their favourite brands, there are new ways to speak up. Then there's the potential to come up with completely new ways of running the world – through brainstorms on a scale never seen before.
Forum for the Future is working on ways to nurture this through its project, Wired For Change. It's a series of worldwide "hackathons": day-long events which bring together digital entrepreneurs and those campaigning for systematic change in the food, energy and finance spheres, to search for solutions.
"The key thing is to bring together the 'ideas people,' the coders, the hackers and the designers," James Taplin, an expert on innovation at Forum for the Future, explains. "They then have 24 hours and all the support we can offer to develop a business model that is sustainable in both the ecological and business sense."
Taplin and his colleague Hugh Knowles believe that experimentation is key. If you can launch 1,000 experiments, 100 might have merit, 10 might happen, and out of these, one could create big change, goes the logic. Take HatchTag, for example, one of the projects to emerge from the first Wired for Change event, held in Bristol last September. The app links small-scale egg sellers with customers through a simple text system that then enables buyers to locate the nearest eggs to them through a mobile digital "eggmap." Scale this kind of project up, and you start to challenge the assumption that you need shops to help you find local produce.
Crowdsourcing goes far beyond the inception of new solutions. Startups are drawing on the masses for everything from funding – through investor platforms like Kickstarter – to development. Digital communities are fast-moving, open to experiment, flexible in approach and committed to refinement – all qualities that fit the climate in which social enterprises operate. But, of course, not all these communities see "saving the world" as their raison d'être…
"There's great digital talent out there," says Taplin, "but, in the main, the focus of their work is not sustainability. It still has to register as an opportunity for them, so that these enterprises get fired up about using the crowd to address some of the most significant challenges we face."
The power of live feedback and criticism to drive innovation in business is not just beneficial for entrepreneurs, though. In the last year, one of the UK's largest retailers, Sainsbury's, asked an expert crowd to review its 20 x 20 Sustainability Plan, pioneering an approach to planning for the future which may become a blueprint for the sector.
Not that it was the first: Wikimedia launched a special wiki dedicated to its own strategy back in 2009, generating over 900 proposals over two years. But Sainsbury's is perhaps the first to do it for the sake of sustainability.
"The fundamental thing was to embed sustainability into our wider business strategy – to ask the crowd what was working and what we need to do differently and then to act on that," says Alex Cole, Corporate Affairs Director at Sainsbury's. "We had been quietly getting on with driving forward our sustainability agenda but became increasingly aware that mass stakeholder engagement was critical and would turbocharge momentum into what we were doing. The outcomes have been hugely positive."
Two things stand out from the Sainsbury's review: firstly, the crowd of 220 people included employees from direct competitor chains Tesco and Marks & Spencer. Cole admits that the team at Sainsbury's hesitated over this, but ultimately decided that if any aspect of the business was going to offer positive scope for cooperation, sustainability would be it.
Secondly, Sainsbury's was entirely transparent about what it did in the belief that only a wholly open process, warts and all, would deliver the innovative, strategy-shaping outcomes the company was seeking. As Cole points out, transparency is a trend, not a fad, "so it's important to manage it, and use it as an opportunity to get 360 degree feedback of your performance."
Jim Woods is CEO of the sustainable business network Green Mondays, which played host to Sainsbury's crowd review project: "There are two types of company who are going to benefit from getting naked in front of the crowd," he says. "At one end of the spectrum there are the leaders who are confident of their story and who therefore want to share their innovation, knowing that they'll get a good response. At the other end, and perhaps more surprisingly, are those for whom trust is a big problem, organisations like banks and utilities. If they are able to say 'We're broken, we know we need to change, so help us!', then the crowd will respond and get involved."
This touches on something that not many of those getting down with the crowd are saying overtly, but which much of their evaluation implies. Namely, that crowdsourcing information from external contributors is as tactical from a PR point of view as it is strategic from an operations perspective. In a world where collaborative consumption and peer-to-peer exchanges – from crowdfunding to sharing networks – are becoming the norm, no business wants to be left behind.
Andrew Perchard, an expert in contemporary trends at the University of Strathclyde Business School, believes seeking input from the crowd is, above all, a tactical corporate move: "Sainsbury's have carefully projected an image of themselves of being open. In light of public cynicism of business and politics in the current climate, cultivating that image of a trustworthy company could be a distinct boost and give them a comparative advantage."
Companies need to tune in to the shifting mood of the crowd to keep ahead.
In this, therefore, startups and large corporations share an agenda. Both are looking for a way forward in the context of a new political and economic scene, in which local democracy, collaboration and openness come up trumps. We've already seen iTunes and Spotify knock CDs out of the ring, and Skype has given phone providers a shock. Those companies wanting to keep ahead of the disruptive innovators need to be tuned in to the shifting mood of the crowd.
For Taplin, this is where the real potential for change lies. "There are systems that need to be fundamentally overhauled: we need to find new ways of doing business that work in harmony with wider sustainability goals. The ideas with the potential to overturn the incumbents can come from the crowd, so it's vital that we, as individuals and organisations, have the desire, ability and vision to embrace that change."
Tess Riley is a freelance journalist and environmental campaigner. @tess_riley
Green Futures is the leading magazine on environmental solutions and sustainable futures.
Ford Motor Company’s Sustainability Strategy for Growing Sales
During the North American International Auto Show, I had the opportunity to meet with Ford’s Chairman Bill Ford and CEO Alan Mulally to discuss Ford’s business strategy and the role sustainability plays in it.
Bill Ford
Ford Motor Company’s business strategy reflects Bill Ford’s passion to continue his grandfather’s legacy of “making people’s lives better.” Before climate change was a national topic, Bill Ford was recognized as an environmentalist. A measure of true leadership is the ability to hold to your values in the face of criticism. In 1988, when he joined the Ford board of directors, Ford received harsh ridicule from his business peers because of his view that business success is linked to environmental and corporate responsibility. Bill Ford has declined any opportunity to say “I told you so” and instead continues to lead from the front by guiding Ford Motor Company to design and sell products that win competitive advantage on value and values.
Ford’s sales success
Bill Ford’s vision and courage to hold to his values has been validated. Ford Motor Company is setting sales records selling cars and trucks designed around fuel efficiency that achieve lower tailpipe emissions while being fun to drive and price competitive. 2012 marked the second straight year that Ford Motor Company sold more than two million Ford branded vehicles in the U.S. Ford is the only automotive brand to top two million U.S. sales since 2007. The Ford Focus remains the best-selling global vehicle nameplate.
Ford CEO Alan Mulally
A mark of a great leader is the ability to recruit outstanding people. The measure of a leader’s strength is their ability to allow others to lead. Bill Ford epitomizes the words of Coca-Cola’s legendary CEO Robert Woodruff:
There is no limit to what a man can do or how far he can go if he doesn’t mind who gets the credit.
Bill Ford demonstrated such leadership when he hired Alan Mulally away from Boeing. Mulally brought to Ford Motor Company strong business skills and global leadership in high-tech manufacturing. Like Ford, he is humble, calling Bill Ford his “supervisor.” But it was Mulally who initiated and led the “One Ford” cultural change inside Ford that is driving down costs while also introducing price competitive products loaded with cutting-edge technologies.
Mulally on sustainability
Mulally views sustainability on two levels. Mulally’s big picture for sustainability is defined by how well a company can survive and grow in today’s intense competitive environment. “Continue to serve” is his definition of sustainability on the enterprise level. “Continue to serve” is achieved by offering products that customers want, and will pay for, produced by using fewer resources and that will achieve cost competitiveness through superior productivity.
From his enterprise-scale definition of sustainability, he then defines every resource as “precious.” This “precious resource” perspective drives the enterprise to reduce the use of water, materials and energy in the production, distribution and sale of product. Tellingly, for every company that thirsts to be a Ford Motor Company vendor, Mulally says,
People I like to associate with have that view of sustainability.
Mulally video interview on sustainability
The following two minute video captures Mulally talking with me about the role he sees sustainability playing at Ford Motor Company.
http://www.youtube.com/watch?v=dvgOR0OpzJY
This is the first of a four-part case study on how Ford is going green. Their best practices can be used by every business to grow revenues and win customers. The second article will profile Ford’s Go Further brand messaging built upon sustainability including an exclusive video interview with Ford's Global Director of Sustainability. Upcoming articles will feature Ford's electrification technologies and a test drive of their plug-in electric C-Max Energi car.
Travel and accommodations to NAIAS in Detroit were covered by Ford. Opinions are my own.
Bill Roth is an economist and the founder of Earth 2017 He coaches business owners and leaders on proven best practices in pricing, marketing and operations that make money and create a positive difference. His book, The Secret Green Sauce, profiles business case studies of pioneering best practices that are proven to win customers and grow product revenues. Follow him on Twitter: @earth2017.
V3Solar Claims Solar Cones Generate Electricity Cheaper Than Coal
V3Solar has released a new solar energy technology that the start-up claims could be cheaper than coal. In an exclusive on the Clean Technica blog last Thursday, the southern California-based start up claimed that its conical solar arrays can generate electricity at 8¢ a kilowatt hour: or less than two-thirds of the price of conventional electricity and even a cent cheaper than natural gas. And that figure is the levelized cost of energy, or LCOE, which accounts for the total cost of generating that energy including installation and maintenance.
Naturally, yet another claim about a clean energy disruptive technology will raise eyebrows--such as mine, as I seem to remember a couple years ago when my inbox was constantly flooded with press releases from algae biofuel companies stating they would have a game-changing breakthrough in six months. Those emails stopped coming at least two years ago. Then, of course, there has been the relative silence over the Bloom Box. But there is something about V3Solar that is creating buzz around the web, including at sites such as Grist. So what is in the secret sauce?
As is the case with most new technologies, much of the answer lies in V3Solar’s design. The flat design of conventional photovoltaic (PV) solar panels has an impact on their efficiency: 18 percent on average. If the amount of light hitting a panel increases 20-fold, theoretically, the electricity generated would be 20 times as much, but with one caveat: the heat generated (260ºF) would cause the PV panels to fail.
However, V3Solar’s cones, layered in what the company describes as “spin cells,” avoids that problem. The outer cones’ lensing captures that light at a rate of 20 times more intense, and it is then deflected to the smaller, inner panels within these cones. Furthermore, the conical layering of these cobalt blue cones captures light much more efficiently as the sun changes positions during the day. As the cones rotate via its CoolSpin technology, a “dynamic flash rate” accelerates electrons at a rapid rate that creates even more electricity. Think of these cones as analogous to Russian matryoshka dolls--inside each cone is one smaller, receiving concentrated light from the one hovering over it. To that end, the company claims that one of its spin cells produces as much electricity as five flat PV panels--another key game-changer considering the cost of land.
V3Solar commissioned solar expert Bill Rever to examine the company’s technology and write a review. Overall, Rever was positive about the potential--but as with any new emerging technology, his final conclusion is revealing:
Overall, V3Solar appears to have a concept that can carve out a solid place in the solar and overall electricity market and is pursuing a sound strategy in examining and understanding the details of the technology to provide the best possible initial design.
Whatever the outcome may be, there is no denying that the excitement and innovation surrounding V3Solar is exciting--and that there is even more to look forward to as more startups seek to break the yoke that fossil fuels have long had on our economy.
Leon Kaye, based in Fresno, California, is a sustainability consultant and the editor of GreenGoPost.com. He also contributes to Guardian Sustainable Business; his work has also appeared on Sustainable Brands, Inhabitat and Earth911. You can follow Leon and ask him questions on Twitter or Instagram (greengopost). He will explore children’s health issues in India next month with the International Reporting Project.
[Image credit: V3Solar]