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    Blog Index
    « If you like the movie "Avatar" then "Biophilia" | Main | The Synergy of Sustainability and Mitigation »
    Friday
    08Jan2010

    Mandated Sustainability - here it comes!

     

    Corporate Sustainability is about to Change Forever…Are you Ready?
    by Tad Radzinski

     

    Over the past six months, two significant developments have put in motion a chain of events that will likely change the face of corporate sustainability forever.   Executive Order 13514, signed into effect by President Obama in November, mandates that government agencies must monitor and report their GHG output and comply with other environmental requirements including the reduction of waste and the use of “environmentally preferable materials, products, and services.”  Additionally, the order calls for 95% of all applicable federal contracts to also meet sustainability requirements.  

    In the private corporate sector, in October, Wal-Mart, the world’s largest retailer, instituted the Wal-Mart Sustainability Index, a set of questions to assess the sustainability of suppliers with the goal of conducting a lifecycle analysis and ranking products according to environmental impact.  Wal-Mart rolled out the first phase of this project in October, and suppliers are already scrambling to participate in the Index and improve their sustainability score.

    Between these two initiatives, the federal government with its more than a half trillion dollar procurement budget, and the Wal-mart index which all but guarantees preference to vendors who are implementing sustainable practices across an organization,  businesses and organizations of all sizes, across virtually all industries, will soon be feeling the pressure to kick-up sustainability efforts.

    What does ALL this Mean for YOUR Business?

    Most sustainability watchers agree:  these two developments are just a precursor to what is sure to be mandated sustainability targets in the private and public sector.  Given that, forward-thinking companies, whether they are federal or Wal-Mart vendors or not, are already incorporating more greening into the corporate culture.  From a corporate perspective, as sustainability moves from being an option to a mandate, sustainability will soon provide a key competitive advantage in the marketplace.  

    So how can the average company get ready for what’s coming?  Here’s a short checklist of processes and actions to get you started:

    • Hire or appoint a corporate sustainability officer.  Like any other critical business function, your sustainable program needs a leader.  The federal government agencies are now mandated to fulfill this job function and savvy private companies are doing the same.  One caveat:  if you appoint a sustainability officer with little or no expertise in the field, make sure he or she receives training or consulting services from an experienced and credible agency (e.g., see the courses and designations by the leading credentialing orgainzation for sustainability professionals, the Institute of Green Professionals).
    • Establish a benchmark of your organization’s environmental, economic and social performance.  This is a critical step in establishing goals and developing a comprehensive sustainability program. Remember - if you can’t measure it, you can’t manage it.
    • Establish cross-functional teams to develop sustainability programs for your organization. Pulling data from the aforementioned benchmarking exercise will help your team establish realistic and achievable goals.
    • Set initial sustainability goals that will provide quick success.  Look for low/no cost initiatives to reduce environmental impact, such as waste reduction and recycling. This will help build momentum for the program and funding for the more arduous and long- term tasks.
    • Provide sustainability training to all people in your organization as it relates to their specific job functions. The ultimate goal is to make sustainability a part of the culture.
    • Once developed, communicate information on the sustainability program to your entire organization, from employees to customers and other stakeholders.
    • If your company manufactures or supplies products it is important to understand and evaluate the products’ life cycle impacts. This can be done by completing or outsourcing a life cycle assessment (LCA). The LCA will be a valuable tool to help you make changes to the product or service and reduce environmental impacts and overall costs. 

    ---------------------------
    Tad Radzinski is the cofounder and president of Sustainable Solutions Corporation, , a leading provider of corporate sustainability programs. Tad has over 24 years of diversified experience in engineering and sustainable design.  Prior to starting his company, Tad served as the Waste Minimization Program National Expert for the Environmental Protection Agency.

    Tad has a B.S. in Mechanical Engineering from Drexel University (1991) and an M.S. in Water Resources and Environmental Engineering from Villanova University (1995). He serves as an Adjunct Professor at Villanova University teaching graduate classes in Principles of Sustainable Development and Industrial Pollution Prevention. Tad is a registered professional engineer in the state of Pennsylvania (1995), a LEED Accredited Professional (2001), and is trained as an ISO-14001 lead auditor.   Tad can be reached via email at tad@sustainablesolutionscorporation.com or by phone at 610-569-1047.

    Reader Comments (71)

    Why do you pose this so negatively?

    It might cost more upfront to build green, but in the long run it saves on energy and maintenance costs. It may require more than 2-3 years for ROI though. What's wrong with saving energy and money?
    http://www.alternet.org/environment/49411

    Green buildings are also more desirable.
    "The business case for green buildings rests on five legs: economics, risk management, marketing, government relations and employee relations. Most people look only at the economic benefit of savings on energy costs, neglecting the mounting evidence that green buildings return higher rents, offer faster letting, secure greater occupancy and generate higher resale value. In an economic environment where quality is foremost, green buildings offer higher quality at modest additional cost. Green buildings also reduce a variety of risk factors, including marketing, financing and securing political authorization to develop. They also offer greater public relations and marketing benefits, assistance with stakeholder relations and, perhaps most importantly, provide a positive story to tell to employees of development firms, thereby aiding in recruiting and retaining key employees. While the economic slowdown and global financial crisis is likely to affect overall commercial construction significantly in 2009 and 2010, the green building movement is likely to continue to gain market share over the next five years."
    http://www.greenbuildconsult.com/pdfs/PPA-Yudelson.pdf
    Posted by David Gross

    January 14, 2010 | Unregistered CommenterDavid Gross

    David . . . I am a vocal advocate of green building, CSR, etc. In fact, I recently developed a course entitled The Economics of Green Building for Boston Architectural College. The entire course is about the economic, physical, human factor and social benefits of buildings with sustainability characteristics. However, personally, I am against government intervention.

    January 14, 2010 | Registered CommenterGrant W. Austin

    I think that Mr Bryant's point is that if green buildings are, in fact, economically viable from an operating and marketing standpoint as you indicate, there should be no need for a government mandate. That is where the auto industry got into trouble with fuel economy regulations that were forced on them when gas was only $1.50/gallon and no one wanted fuel efficiency but were wholy inadequete when gas went to $4.00/gallon. The industry got into a false sense of security (just follow the rules) rather that doing rigorous long term strategic planning.
    Posted by Bob Emick

    January 14, 2010 | Unregistered CommenterBob Emick

    I think that this is part of a trend of which governments are followers. The fact that governments are coming on board is an indication that wider social expectations are now established.

    The current economic turmoil is an indicator - proactive businesses are working hard to build stronger relationships with their customers. A big part of this is a demonstration of their efforts to move toward sustainability. In my work I have seen a significant upturn in activity despite the downturn in the economy. My prediction is that we will see those companies that did the hard work during the downturn coming back the fastest and strongest as the economy recovers.

    If you do this just because the government mandates it, it will be a burden. If you do it because it will make your business stronger you will win.
    Posted by James Sullivan

    January 14, 2010 | Unregistered CommenterJames Sullivan

    150 years ago, farmers built their homes and barns out of materials found on the properties they owned. They faced the buildings to maximize southern exposure. They built berms and planted windbreaks on the north side of the structures. The planted shade trees on the southern side. They pitched the roofs to maximize cross ventilation. They got their food from the land and water from a well. All this work was done by hand before gas powered equipment.

    The industrial revolution made us lazy and fat. Its time to start that "diet" once and for all.
    Posted by David Plechner

    January 14, 2010 | Unregistered CommenterDavid Plechner

    I think this could be a very positive step toward creating a much more conscientious American society. By using products that at the outset may cost a little more, down stream they will cost less in energy, waste and city services supporting commerce. We need to examine the life cycle not just the inital purchase. If it takes government to push a green agenda business has already embraced, I think that is what we want in a progressive foward thinking society.
    Posted by Kathleen Lambert

    January 14, 2010 | Unregistered CommenterKathleen Lambert

    There are 2 articles that came out today:
    http://in.reuters.com/article/businessNews/idINIndia-45403420100114
    http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201001141429dowjonesdjonline000594&title=major-investor-groups-urge-tougher-action-on-climate-change

    Companies that go green are performing better than their peers.
    Same goes for builidngs.
    Posted by David Gross

    January 14, 2010 | Unregistered CommenterDavid Gross

    This conversation brings to mind my work in the new construction industry during the housing boom. Thousands of homes built without regard to sustainability and the ramifications will effect both the land and the owner for generations. It is beyond me why none of the major national homebuilders emphasized better building practices (solar roof tiles for ALL new homes California)? Now addressing this retroactively will be a monumental task and one which creates bad will for the all the people who are burdened by the "mandates". Uneducated and ignorant consumers were concerened only with the color of the carpet and cabinets. Meanwhile the builders are the only ones who walk away fat and happy making a 350% margin per square foot.
    Posted by Brandt Dye

    January 14, 2010 | Unregistered CommenterBrandt Dye

    'm perplexed... Radzinski's article doesn't characterize new sustainabilty-oriented regulation as a hit... "From a corporate perspective, as sustainability moves from being an option to a mandate, sustainability will soon provide a key competitive advantage in the marketplace." Where, exactly, is the "hit"? Seems like a no brainer....
    Posted by Erik de Kok

    January 14, 2010 | Unregistered CommenterErik de Kok

    As much as I am also disturbed by Washington, sustainability is one area that must be mandated.
    Posted by Peter Cholakis

    January 14, 2010 | Unregistered CommenterPeter Cholakis

    A more useful way to look at it is IMHO: is action less expensive than Business As Usual? The consensus of economists is 'yes'. Provided the policies are right, of course.
    Posted by Dan Staley

    January 14, 2010 | Unregistered CommenterDan Staley

    I've just read this blog. Unfortunately this is our fine government at work yet again. I believe in doing things green because we can leave the world a better place for the future. To really change things, they really need to stay the same, by that I mean the things in our life that we are going green with should be no different than the things we have now. But taking away our right to choose for ourselves little by little is not the way. The products that I sell in my business are great, they allow you to go green and change where they end up while not changing how you use them, or how well they work. But if someone does not want to use them it’s their choice, there view point. As a sales person and business man I can take “no” but what I can’t take is big brother telling me what to do.
    Posted by Michael Rogers

    January 14, 2010 | Unregistered CommenterMichael Rogers

    Great....more big government "solutions" to non-existent problems.
    Posted by Scott Ackert

    January 14, 2010 | Unregistered CommenterScott Ackert

    Well, to begin with, it is a good, thoughtful set of blog posts. I struggle with definitions of sustainability that do not take into account changes in political administrations, and volatile fossil fuel prices, both of which fail to fit the definition of 'Black Swan' events. You know they will happen - they need to be part of any useable model. Keep in mind that many of the same arguments that are posited here regarding GHG and AGW are echoed in the first regulations in the 1880's regarding railroad safety devices, then mine worker safety in the 1930s, then OSHA standards in the 1960s. The poor argument is always that most people decide which side they are on first, THEN select metrics that support their POV. Shouldn't we look at the metrics, and then pick a course of action?
    Posted by Donald Missey, PMP

    January 14, 2010 | Unregistered CommenterDonald Missey, PMP

    thanks
    Posted by Jill Schantz

    January 14, 2010 | Unregistered CommenterJill Schantz

    Very interesting articles.
    I guess there will be more job opportunities for SD professionals? For sure the cost would be shared and individuals will suffer more, especially small business operator.
    Posted by Sophie Hagan

    January 14, 2010 | Unregistered CommenterSophie Hagan

    Actually Grant it's not just about the money that is being wasted, global warming fanatics and their lies will kill people - they already are!

    http://www.telegraph.co.uk/comment/columnists/christopherbooker/6958093/Climate-change-the-true-price-of-the-warmists-folly-is-becoming-clear.html

    "At last, in all directions, we are beginning to see the terrifying cost of that obsession with “global warming” and “green energy” which for nearly 20 years has had all our main political parties in its grip. For years governments, including the EU, have been shovelling millions of pounds into the coffers of “green” lobby groups, such as Friends of the Earth and the WWF, allowing them in return virtually to dictate our energy policy."

    Anthropogenic Global Warming is the greatest SCAM in world history. Spread the word and stop these people before it is too late.
    Posted by Leigh Haugen

    January 15, 2010 | Unregistered CommenterLeigh Haugen

    Very intersting article by Ted Radzinski.

    As for the idea that "you will NOT DO IT BY CHOICE" - well that applies to so many limitations on business activity, such as having a safe working environment, no child labor, anti-monopoly laws, and the list could go on and on.

    At core however is the fact that we simply do not account for the real costs of doing business. Externalities are not included in any balance sheet and as such, reduction of externalities appears to be an additional cost. The best thing about the Executive Order, and the WalMart questions, is that they create a baseline that equally impacts all participants, and by doing does not negatively impact any individual business over another (or it shouldn't).

    If anything, calls for mandated standards have increased simply because business wants to know the boundaries, and to feel that such boundaries are being equally and equitably imposed.
    Posted by Daniel Roberts

    January 15, 2010 | Unregistered CommenterDaniel Roberts

    Oh goodie! More psudo science from Christopher Booker: a man with zero scientific education. You might want to know that your source of information is from a man who previously campaigns include: asbestos is no more dangerous than baby powder; and evolution is a hoax perpetrated by atheists who refuse to accept the book of Genesis as a science textbook. If Christopher Booker is your star witness, you have already lost the debate.
    Posted by Thomas Pape

    January 15, 2010 | Unregistered CommenterThomas Pape

    I dislike being forced into doing much of anything, but how do you bring about a sweeping change that does not really want to be done by any others than those that care about sustainability/ green building/ eco-consciousness or what ever you may want to call it? I cringe when the government gets into things like healthcare or this because I wonder about the track record and performance to may this happen in a cost effective, less bureaucratic manner. And yes, watch out for your paycheck if the government is involved. Somehow their reality when it comes to money issues is to vote a pay increase or print more. Most of us don't share that viewpoint.
    Posted by Glenn Keyes

    January 15, 2010 | Unregistered CommenterGlenn Keyes

    http://www.kusi.com/home/78477082.html?video=pop&t=a
    Posted by Ralph LePino

    January 15, 2010 | Unregistered CommenterRalph LePino

    Scott...agreed. As you can see I work with NEPA and now the CEQ is going to expect us to include "climate change" in it's already too lengthy lists of "impacts". I want to save the world as much as anyone else does but...enough is enough.
    Posted by Keith Hall

    January 15, 2010 | Unregistered CommenterKeith Hall

    I completely agree Keith....my sentiments exactly...I have long thought that attempting to assess impacts to the global climate from a small, local project is not only ridiculous on its face, but exceeds the governments authority and leaves these NEPA documents open to serious litigation potential. How can one assess cumulative impacts with any degree of certainty when the science behind "global climate" is speculative at best. With the recent revelations about phony, "ginned-up" climate data coming out of England this is exactly the sort of problem I foresaw. So we have EIS conclusions based on data, which has now been proven to be erroneous and fraudulent...wonderful....
    Posted by Scott Ackert

    January 15, 2010 | Unregistered CommenterScott Ackert

    Green building and living doesn't require certified training. It's common sense that the bureaucrats can't put a global blueprint on. The system of building inspectors & permits is falling apart.
    Posted by Delia Montgomery d/b/a Chic Eco

    So this is to be implemented by our "sustainable government". The same one that has absolutely no idea how to live within the already given "sustainable (balanced) budget". This is to be devised by, implemented, monitored by the same government that designed the healthcare overhaul where they just decided that Cadillac healthcare plans would be taxed 40% over a certain amount but said "oh wait a minute this does not include any federal, state, or local employees". Just a couple of million people left out of their planned tax....This is the wrong way to go about creating a sustainable model. Anytime our concerned, government gets involved we always have to look at the true motivation.
    Posted by Charles Howe

    January 16, 2010 | Unregistered CommenterCharles Howe

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