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22 February 2012

Use your buying power for good!

I was recently asked to comment on O2's sustainability programme for TheEcologist.com - it hasn't appeared yet, so maybe I didn't say anything newsworthy enough you can read it here. What I did say said was O2 had hit two of the three big sustainability buttons bang on - internal performance and providing low carbon services to their customer base. But on the third, the supply chain, I felt they were saying all the right words, but not making the same big, concrete, ambitious commitments. This is a big opportunity missed - there are a raft of sustainability issues in their supply chain from carbon emissions to conflict minerals (as O2 acknowledges to its credit).

The buying power of the big brands is immense. If they say "jump", their suppliers say "how high?". You can see this in the food and fast-moving consumer goods and food sectors where the much maligned big shed supermarkets are now driving sustainability through their suppliers. Hands up who wants to get de-listed by WalMart or Tesco?

And new Apple boss Tim Cook is currently lancing the boil of working conditions in Chinese manufacturers. Apple was targeted by campaigners as it was the sexiest brand with most to lose, despite being just one of a plethora of brands to use such companies. But with Apple's brand profile comes plenty of buying power - if Cook asks, he will probably get. If the other brands put their head above the parapet and ask for the same thing, the suppliers will have no alternative but to comply.

For smaller companies, with less oomph in their wallet, reforming suppliers is not really an option - but you usually have a choice with which you can add your weight to the big picture move to greener supply chains.

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15 September 2011

Closing the Loop - from Outputs to Inputs

Traditionally we have worried about what comes out of our economy - solid wastes, persistent toxins, greenhouse gases, acid rain, ozone  and so on. But increasingly focus is shifting to the sustainability of inputs - energy, water and raw materials - as these factors have a much bigger and immediate impact on business viability. Let's face it, no water = no business, no energy = no business, no raw materials = no business.

You may not have noticed as there was a wedding on TV that weekend, but back in June, Fatih Birol, Chief Economist of the International Energy Agency - the go to guy for the lowdown on energy for Governments - said that oil production may have peaked back in 2006. If you have filled up your car recently, the resulting bill was probably bad for your health - and energy prices are impacting on food and clothing prices - not good news in the current financial turmoil. Then we have China buying up rare earth metal supplies and various NGOs flagging up water stresses across the world.

So what's the answer? Well, in nature, if a leaf falls off a tree it is recycled by worms, fungi and/or bacteria into nutrients for that tree or another plant, creating a cycle of nutrients. Same with water, carbon, nitrogen and other key materials - they all move in cycles. This is how nature's processes have evolved over billions of years to be sustainable in a world of finite resources.

Carpet tile giants and green business pioneers InterfaceFLOR realised this some time ago. To become sustainable - their goal is zero impact on the environment - they obviously have to source sustainable raw materials. While they are using some natural materials to replace the traditional oil-based fibres, this would not cover all inputs. So they decided to use waste carpet as a raw material. While their 'Evergreen' carpet leasing service has failed to set the market alight (apparently accountants can't handle carpet as a revenue cost rather than a capital cost - photocopiers and vehicles yes, but carpets no...), their 'Re-entry 2.0' carpet recycling facility has been a roaring success.

There are countless other opportunities for this kind of thinking. I am reliably informed that road sweepings have a higher concentration of platinum than that in naturally occuring ores due to all those catalytic converters in our cars releasing lots of tiny amounts. So people are working on the technology to 'mine' those materials from our streets and return them to the economy. Likewise there is great interest in 'mining' obsolete mobile phones for the precious metals within.

This requires a big shift in thinking away from outputs and towards inputs. Recovery and recycling are traditionally seen as waste management options rather than as sources of high quality raw materials - so quality suffers. The current prevalence of virgin raw materials means that such 'secondary' materials also tend to suffer from low volumes, high prices and lack of competition. Forward-thinking companies like Marks & Spencer are actively working to strengthen these new supply chains by increasing volumes, demanding higher quality of materials and encouraging a diversity of suppliers. The recycled polyester brolly pictured is a result of these efforts.

When stuff we rely on starts running out, we'll thank these pioneers for their foresight.

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24 June 2011

What I learnt this week...

I’ve said it before, and I'll say it again: one of the things I love about the sustainability field is that it is so broad and fast moving that you are constantly learning. This week was full of discovery

On Tuesday I had a meeting with Dan O’Connor of Newcastle University to discuss his (private) venture WARPit – a social-media style reuse portal to allow organisations to trade used furniture etc (check it out here). But our chat about his day job were interesting too:

  • The Daily Mail’s paranoia knows no bounds. The University’s interesting student bin cam research project to test how a webcam in a student household bin connected to Facebook can affect recycling rates is, in Daily Mail land, a potentially vicious attack on civil liberties by ‘council snoopers’;
  • Cardboard now has such a scrap value in the UK that gangs are raiding students’ wheelie bins to get their hands on it – theft of metallic items is common when scrap metal prices soar, but I’ve never heard of people stealing cardboard before.

On Thursday I ran three sessions at the Low Carbon Best Practice Exchange at Olympia in London: Staff Engagement, Greening the Supply Chain and Environmental Strategy. We had some great discussions and here are the points that I took home:

  • There was quite a debate about the role of environmental champions. Most participants in the engagement session had appointed champions, but there wasn’t a clear consensus of why or whether they were actually making a difference. One participant had actually abandoned champions as they found the idea counterproductive in practice (I intend to explore this in a later blog post);
  • One participant has an almost real time energy consumption readout along with a traffic light system to show if consumption is low (green), high (amber) or very high (red). This is a nice way of converting data into a form that staff can easily grasp and of course you can tighten the amber and red settings to encourage continual improvement;
  • There was an anecdote about a company that paid actors to dress as cleaners and go through the office bins, tutting over waste that wasn’t being recycled to embarrass staff members. While such stunts only have a transient impact, I like the creative thinking;
  • Another anecdote was about a company that deliberately but surreptitiously changed their travel system so staff who want to use short haul air have to pay for the tickets out of their own money then submit a claim. Train tickets are purchased directly by the company, so staff members don't have to tie up their own cash in the process. Crafty, possibly underhand, but why not?;
  • On green procurement, one participant is using broad sustainability questions at the PQQ stage to determine what best practice in that sector might look like. This is then used to benchmark bidders during the formal tender process;
  • Many junior staff are desperate to get their managers to take a more strategic approach to sustainability, but the latter have their heads in the sand. We discussed many ways of ‘managing up’, but concluded that eventually top level buy-in is required. I am still strongly of the view that delegating the development of a strategy is an oxymoron and a derogation of responsibility.

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2 February 2011

Going green is even more important in a recession

I delivered the second set of three environmental policy/action planning workshops yesterday for Compete North East - the aim being to help small and medium size companies get in shape to respond to the environmental aspects of tenders and requests for proposals. The workshops went really well again, but one of the introductory speakers - from a public sector buying organisation - made a statement I thought was a. misleading and b. dangerous advice for the attendees. He said that environment and sustainability had dropped off the radar somewhat due to the recession, but were coming back.

I didn't get a chance to ask him exactly what he meant, but I couldn't disagree more with the statement as it came out. Here are the facts:

  • Public sector bodies are typically awarding 10-15% of potential assessment scores to environment and sustainability;
  • The public sector is buying much less due to the Government's austerity drive, so competition for contracts is fierce.

The only conclusion you can draw from that is that securing as much of that 10-15% is vital to give a supplier a chance of beating competitors. If you're up against Usain Bolt in the 100m, the last thing you want to do is give him a 10m head start. So don't give greener competitors a similar advantage - make the commitment, take action, stay ahead of the pack.

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22 November 2010

When the going gets tough...

You have to be living on the planet Zog not to notice we are at a time of great economic uncertainty - with whole economies teetering on the brink, banks still in part or full state ownership and the dark shadow of redundancy hovering at the back of people's minds. Green might seem like a luxury at such a time but many of the world's biggest names - Wal-Mart, IKEA, Marks & Spencer, Tesco, P&G and Unilever - are not just sticking to their sustainability strategies but boosting them.

Why?

Crudely speaking you can do two things to increase profits: cut costs and boost turnover.

While cutting jobs is attractive due to the size of wage bills, cutting energy, raw material, waste and water costs is easier and cheaper - you don't have to pay electrons redundancy. I know of one organisation which has a £2 million road fuel bill who are literally telling their drivers that every £25k they shave off that bill will save somebody's job.

Boosting turnover has a similar story. Yes, public sector spending is being cut back, but that makes tendering more competitive not less, and green tender points might just give you the edge. Other big buyers such as retailers and brands looking for contract manufacturing still want to go green - which means either their suppliers go green or they find suppliers who will.

Despite all this, some companies are retracting on green issues - I've been advising a couple of highly talented sustainability experts in the ways of the independent consultant recently as their employers are cutting back. Both will make great consultants which means everyone can benefit from their skills, but it is a great shame nonetheless.

A piece of advice that has resonated with me for years is that the Tour de France is won on the uphills not the downhills. It is tough out there, but don't be fooled into thinking you can't afford to go green in a recession. You can't afford not to.

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17 November 2010

Boost your business by up to 11% (honestly...)

No, this isn't one of those spammy 'newsletters' from online marketing 'experts' you find yourself 'signed up' to (if they're so good at online marketing why do they have to spam you?). Regular readers will have heard me say "go green, save money" is for amateurs and that "go green win more business" is the real driver for most businesses to improve their sustainability ranking.

The going rate for 'green points' in UK public sector procurement exercises appears to be about 10%. Imagine what it would do to your chances to max out on those points every time? My maths says that will give you up to 11% advantage over those who do nothing.

But this is no cheap get rich quick message. You won't do it just by writing a policy, an environmental management system or getting some recycling bins sorted. You'll need some really tangible proof of your commitment - think wind turbines, large solar arrays, electric vehicles, eco-buildings or wholesale eco-design of products. And you won't be able to neglect the other 90% of procurement points either - you'll still need to deliver a quality product or service at a competitive price.

BTW I'm currently putting together a set of  workshops for the end of the month to get businesses fit to compete on green. They'll be held in Newcastle & Teesside - more details here.

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10 November 2010

On the sharp end of green procurement

I'm writing this during a break in the Low Carbon Best Practice Exchange in Harrogate*. I've just facilitated a session on Environmental Strategy and an interesting stat from one of the participants from a local authority is that they now award 10% of their tender scores to sustainability. I reminded the participants that every business is part of someone else's carbon footprint - if they want to reduce that footprint then they either have to get their suppliers to cut theirs or find new suppliers.

Interestingly most of the emphasis in green procurement is from the procurer's point of view. But the real question is how to respond and compete on green - how to get the basics right and, importantly how to shine. A small Scottish company, EAE Ltd, was told that they won the green points in one tender (and hence the contract) hands down because everyone else submitted an environmental policy but they put in a picture of their wind turbine. Of course EAE are also a damn good company - green will help a good company, but it won't save a bad one.

If you are interested in how to respond to green procurement, I'm giving a series of workshops on how to compete on green on 30th Nov and 1st Dec, hosted by Compete North East - check out the details here.

* I'll post a summary of my learning points from Harrogate later this week.

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1 December 2008

Weekly Tip #36: Black & Grey Lists

This is the latest of a series of tips extracted from the Green Business Bible e-book:

Develop ‘grey’ and ‘black’ lists for your business to filter out materials and chemicals which are not ‘safe’. Black list substances should never be purchased and those on the grey list should only be used where no alternative exits. Black and grey lists are highly industry specific, so you will need to research toxic materials in your business and determine which can and can’t be replaced.

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10 June 2007

London 2012 - The Greenest Games Ever?

With all the furore over that logo, attention has been distracted from the business opportunities relating to the delivery of the 2012 Olympic Games. Well, if the Olympic Delivery Authority’s sustainable development commitments are anything to go by then it certainly will be a green games:

  • Aiming to minimise the carbon emissions associated with the venues through a 50% reduction in carbon dioxide by 2013.
  • 90% of demolition material to be reused or recycled and at least 20% of materials used to be recycled.
  • 40% reduction in the demand for potable water in permanent venues and a 20% reduction target for residential development.
  • Aspiring to transport 50% of construction materials, to the Park by water and rail.
  • Protecting and enhancing the biodiversity and ecology of the venue locations.
  • Maximising timber from sustainable sources with all timber used from known, legal sources, with clear supply chain evidence.

This sets a challenge for everyone looking for a slice of the action. And with £4bn of contracts going, these games will be the biggest single public procurement exercise in the world, ever.

In the bidding documentation, "the Environment" is listed as one of the five key criteria against which bids will be assessed, with particular reference to waste minimisation and energy use - and the criteria above will be expected to be read across into contracts as appropriate. Anybody wanting to bid will certainly need to get their environmental credentials in order.

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