New Persuasion

Plastic Bags are a Waste

Inhabitat had a great post this morning about declining plastic bag usage in Ireland...

Ireland plastic bag usage drops dramatically after plastic bag taxes are instated!

With all the recent bans on plastic bags around the world, it’s natural to wonder just how effective all the bag banning will be. Instead of simply enacting laws to phase out plastic bags - which seems like a wishy-washy attempt at most, Ireland has implemented a tax-based incentive to cut plastic bag useage — and it seems to be working wonders. Between the government tax on bags, an effective advertising campaign, and public support, plastic bag usage has dropped 94% in a matter of weeks.

I am so glad to see some of the new things being done to decrease the use of plastic bags around the world!  I know what a huge problem they have caused and continue to cause to our environment, and can't wait to see the types of things we will do in the U.S. to make a difference for ourselves.

We Are Not the Only Ones...

I discovered a very surprising article released by BBC News recently regarding the obesity epidemic around the world (below):

Overweight 'top world's hungry'

There are now more overweight people across the world than hungry ones, according to experts.

US professor Barry Popkin said all countries - both rich and poor - had failed to address the obesity boom.

He told the International Association of Agricultural Economists the number of overweight people had topped 1bn, compared with 800m undernourished.

Speaking at an Australian conference, he said changing diets and people doing less physical exercise was the cause.

Professor Popkin, from the University of North Carolina, said that the change had happened quickly as obesity was rapidly spreading, while hunger was slowly declining among the world's 6.5bn population.

The biggest increases are being seen in parts of Asia with certain populations more susceptible than others Professor Tony Barnett, of Birmingham University

He told the conference at the Gold Coast convention centre near Brisbane: "Obesity is the norm globally and under nutrition, while still important in a few countries and in targeted populations in many others, is no longer the dominant disease."

He said the "burden of obesity", with its related illnesses, was also shifting from the rich to the poor, not only in urban but in rural areas around the world.

China typified the changes, with a major shift in diet from cereals to animal products and vegetable oils accompanied by a decline in physical work, more motorised transport and more television viewing, he added.

And he urged governments to begin to develop better strategies to combat the problem.

He said food prices could be used to manipulate people's diets and tilt them towards healthier options.

"For instance, if we charge money for every calorie of soft drink and fruit drink that was consumed, people would consume less of it. "If we subsidise fruit and vegetable production, people would consume more of it and we would have a healthier diet."

And University of Minnesota's Professor Benjamin Senauer, who has compared lifestyles in the US, which has high obesity rates with Japan, which has low rates, agreed.

"The average Japanese household spends almost a quarter of its income on food compared to under 14% in the US."

'Cheap food'

While a direct tax on food in the US to reduce obesity would not be politically acceptable, agricultural subsidies which resulted in cheap food could be reduced, he added.

But he said other factors, such as exercise, also played an important role.

"Japanese cities are based on efficient public transport and walking. The average American commutes to work, drives to the supermarket and does as little walking as possible."

Professor Tony Barnett, head of the diabetes and obesity group at Birmingham University, said: "It is becoming increasingly clear that the number of overweight outnumbers the malnourished.

"What is also clear is that this is not just happening in developed countries, the developing world also has serious problems.

"The biggest increases are being seen in parts of Asia with certain populations more susceptible than others. If we do not get to grips with this, problems associated with obesity, such as diabetes and cardiovascular disease, are going to increase rapidly."

It is very shocking to know that although we see so much in the news about America when it comes to obesity and overweight citizens, other countries are having big problems too.  This is a serious problem with serious consequences to come...

Filter for Good

While doing some research this morning I came across a website representing a campaign called "Filter for Good."  According to the website,

Brita and Nalgene have partnered to present FilterForGood. Take the pledge to make a small change in your life that could be part of a big change nationwide.

If you're ready, take the pledge. Still not convinced? Learn the facts about why reducing bottled water waste is so important.

And, if you purchase a FilterForGood refillable bottle, you'll also be supporting the Blue Planet Run Foundation, a nonprofit organization working to provide safe drinking water to 200 million people for the rest of their lives by 2027. For every FilterForGood refillable bottle purchased between August 10th and December 31st, 2007, a donation of $4, up to a maximum of $25,000, will be made to the Blue Planet Run Foundation.

This site offers some really great statistics about why bottled water waste is a concern and what we can do as individuals to help the big picture.  This shows that our society is aware of the environmental issues gaining media attention as well as ways in which we can make a difference.  I think that emphasis on the environment is only going to become more and more important over the upcoming decades-- especially because of the continuous coverage of the impact humans have on global warming.  It is good to know that companies are teaming up to give us options as consumers without taking away the convenience element that we love.

Firsts

Here at McGinn MS&L we find it important to keep track of the first time important things occur in our society.  These changes tell us a lot about things that may be surprising or even overdue, and are a great indication of where we stand.

Some recent firsts that are significantly important are:

Ø      On July 25, 1978, Louise Joy Brown, the world's first successful "test-tube" baby was born in Great Britain.

Ø      For the first time at least since World War II, there were more failed marriages than lasting ones at the 25-year mark: Slightly more than half of the men and women who got married in the late 1970s were separated or divorced -- or widowed -- before they reached their 25th anniversary.

Ø      The 2008 edition of “America’s Best Black Colleges” marks the first time U.S. News & World Report has released a stand-alone ranking of historically black colleges and universities.

Ø      John Edwards appeared in the first MySpace/ MTV candidate forum. The Democratic presidential hopeful was the first in a string of candidate dialogs planned by those two stalwarts of modern culture.

Ø      The number of violent crimes increased by a larger amount than expected last year, extending the first significant rise in murders and robberies in a dozen years.  Robberies surged by 7.2% and murders rose 1.8%.

Ø      The number of people living past 100 in England and Wales reached almost 9,000 last year for the first time ever.  The number of Centenarians had increased ninety-fold since 1911 when there were only 100 total in the country.

What does this all mean?  Well, advances in technology have made things like the "test-tube baby" and the record number of Centenarians possible.  It also is the main factor behind the MySpace/ MTV political influence which signals a huge shift in society and the things that we emphasize as a nation.  Technology is changing everything about our world and we are taking notice.  It's great to see that we are taking advantage of our ability to communicate to mass audiences and political leaders are taking the time to speak to these audiences-- young and old.

The rise in the number of murders and robberies could be because of a larger issue, such as Hurricane Katrina or the terrorist attacks on September 11th.  We are starting to realize that we should stop and enjoy life, and how important is really is to remember that everyone is an individual with their appreciation for the world around them.  This could be the reason for the record number of failed marriages as people begin to explore what they find most important in life.  We are encouraging individuality and uniqueness, as well as embracing positive changes such as the first edition of U.S. News and World Report releasing a ranking specifically for the nations Black Colleges and Universities.

As new firsts emerge and these changes continue to become an integral part of the way we live, it's important to just stop and take in these shifts before years go by and we never even realize they occurred.

The Green Umbrella Part 2 - Opportunities for Entrepreneurs

Dr. Karel J. Samsom, a specialist in environmental and sustainable entrepreneurship and author of Spirit of Entrepreneurship told Entrepreneur magazine that green business is “… a highly underrated opportunity for small business.”   

What are the opportunities for small businesses that want to “go green”?  Every industry, every hobby, every action can have a shade a green.  Broadly, green means either improving the planet or improving its people or both.  Any process, product or service that saves natural resources or re-uses these resources is considered green.  Any effort to help people live healthier lives is green.  The green umbrella also includes the growing field of social entrepreneurship – a business which sets out to solve a social problem while at the same time making money. 

Are people really buying green?  The answer is yes – although many green businesses find it helps to sell quality and price first, and green bona fides second.   Some 63 million American consumers are classified as LOHAS (those with “lifestyles of health and sustainability.”)  According to the Natural Marketing Institute, this means that they
“have a profound sense of environmental and social responsibility... these consumers are also the most likely of the segments to buy environmentally and socially responsible products.”  These are the customers who, according to Fast Company magazine, “…have proven themselves willing to spend up to an astounding 20% premium on clean, green products…”  Add to that another 38% of consumers who “are less resolute in their LOHAS attitudes, though still show moderate levels of related concern and select LOHAS behaviors (such as recycling, among others), and you have an incredible consumer base which at the very least open to green ideas and products.

So where are the best opportunities for entrepreneurs?  Here are five areas:

1.  Organic Products- We’ve all read about the exploding organics industry – There are organic cosmetics, toiletries, vodka, pasta, tea, waffles, peanut butter - but there is still tons of room for growth here particularly since, as Andrew Zolli wrote in Fast Company, “With two huge generations dominating American society--the baby boomers, who created the first draft of contemporary environmentalism, and the millennials, the most globally connected cohort in history--principles of conscious consumption will come to dominate the brandscape.”

• About 75% of shoppers buy organic products at least occasionally, up from 55% in 2000; 23% buy them at least once a week.  (Supermarket News, 8/27/07, subscription required)
• Organics are here to stay - Goldman Sacks snalyst Steven T. Kron said, "We believe that the recent surge that organic foods have experienced is not transient, but rather a sustainable shift in food consumption with ramifacations up and down the food chain."  (Associated Press, 7/13/07)
• Organic beer still represents less than 1% of U.S. beer sales, but those sales doubled to $19 million between 2003 and 2005 (last year figures available).  In 2005, organic beer ranked with coffee as the fastest-growing organic beverage.  (Reno Gazette Journal, 6/27/07, purchase required)
• U.S. organic food and beverage sales totaled nearly $17 billion in 2006, representing 3 percent of all retail sales of food, up from 2.5 percent in 2005 and 1.9 percent in 2003.  So though organic retail sales have grown between 20% and 24% each year since 1990, that’s still only 3% of the category.
• Organic-cotton production in the U.S. increased by 8%—and was up 7% in China, 25% in India, and 40% in Turkey—between 2004 and 2005, according to an April, 2006, Organic Exchange report that lists the top four producers. But demand for organic-cotton fibers by clothing makers increased 93% in the same period.  (Business Week, 9/27/06)
• U.S. sales of organic sheets and towels rose 38% to $20 million in 2005, while sales of organic mattresses and pillows increased 32% to $2 million. (Financial Times, 9/3/06)
• MediaPost reported that the $20 million organic chocolate category grew 57% last year, compared to a decline of 0.1% for conventional chocolates.

One example of an organic company is Eco Lips, which makes organic lip balm.  From Entrepreneur magazine: 

Placed “anyplace that has a cash register,” the product, which is made using solar  energy, is an easy sell to consumers who not only want to buy green, but also  want a quality product. “It's so inexpensive, and it's a gateway organic product-- people will try Eco Lips and maybe have such a good experience that they'll want  to try organic orange juice or organic cotton sheets,” says [Eco Lips co-founder  Steve] Shriver…

For more information, the Organic Trade Association runs HowToGoOrganic.com – a site “for anyone exploring how to transition to organic.”

2.   Trash – Thar’s gold in them there rubbish hills. According to the EPA, Americans generated some 245.7 million tons of garbage in 2005 (latest figures available.)  That’s 4.54 pounds of trash per person per day.  Here are some of the things we throw away:

• Americans currently dispose of 128 million cell phones a year, only 1% of which are diverted from landfills.  This does not include the 2 million tons of used electronics we also discard annually.
• A typical baby goes through around 5000 disposables during its diaper days; across the US, this adds up to an astonishing 20 billion each year, enough to cover a football field with a three-mile high pile.
• Each year, 3.5 billion wire hangers end up in U.S. landfills. (Reader's Digest, June, 2007)
• Americans throw away 2.5 million plastic bottles every hour. (Illiinois Times, March 8, 2007)

If you can figure out new uses for a specific garbage item, you’ve got yourself a business.  Terracycle makes plant food from worm poop and packages it in recycled soda bottles.  One company, EVCO Research in Atlanta, uses scrap plastic beverage and water bottles to make water repellent coatings for cardboard boxes used for shipping fruit and meats. Chicago Cargo Bike and Trailer Co. makes bike trailers out of reclaimed materials.  ReCellular, Inc. collects, recycles and resells cell phones.  They process around 300,000 phones a month – which still leaves over 120 million phones in the trash. 

3.  Government– including Federal, State, County, and City levels.  How are governments an opportunity for small business?  Two ways:

a) Find out what your local government is doing re “green” – and craft a service to meet their needs. A good place to start is The SustainLane Government Knowledge Base – where, according to Shirl Kennedy at Resource Shelf, “You can read full documents submitted by urban planners and sustainability managers from across the country. Find out what cities, counties, and states are doing to improve their carbon footprints, quality of life and resource efficiency. Find the latest programs in urban ecology.”

b)  Create a service or a product that helps other local businesses comply with  environmental regulation/laws/ordinances that apply to them.  For instance,  San Francisco recently banned plastic bags – can you supply a biodegradable or  recycled or reusable alternative to retailers?

c) Take advantage of government grants and loans encouraging green practices. From the Wall Street Journal: “The government is also giving small businesses a spur to go green. Just as large companies receive government breaks for environmental-friendliness, the Department of Agriculture offers a Small Business Innovation Research Program that offers awards of $80,000 to $250,000 for using certain environmentally friendly practices in selling or processing wares. The Environmental Protection Agency gives grants to small businesses involved in environmental industries and initiatives. On a state level, New York awards  funds to small businesses that are involved in projects such as pollution prevention and recycling.”

RubberForm Recycled Products LLC, in Lockport, N.Y., recycles old rubber, such as tires, and turns it into new products.  The owners used federal, state and local funds (and private investments) to launch their business last year.

4.  The Green Lifestyle – As I said earlier, just about anything we do in our regular lives can be transformed or altered into a green state.  So if you examine your own life, you might come up with something you do everyday that could use a green element.  Do you use a lot of paper – how about making recycled paper?  It’s only left to your imagination.  Here are some of the small businesses created around the green lifestyle that may spur your thinking:

• Green Singles – find your perfect match in the environmental, vegetarian, or animal rights community…
• Vivavi – eco-friendly furniture and home design.
• Stay at a green hotel
• Save your money at a green bank – ShoreBank Pacific is the first commercial bank in the United States with a commitment to environmentally sustainable community development.
• Working Assets Funding Service issues a “socially responsible credit card.”
• Build and live in a green home.
• Memorial Ecosystems - Bury your loved one in a green cemetery.  From their website:  “Our main focus is to develop multi-functional memorial nature preserves that we create with the cooperation and assistance of non-profit organizations. Through becoming members of the preserve during life, and choosing burial in the preserve after, our clients leave a permanent legacy for their families, their communities and the natural world. We are committed to being the leaders in environmentally and socially responsible death care.”

5.  The Local Angle – Kemi Osukoya recently wrote in the Wall Street Journal, “Many green consumers tend to see a small, local business as naturally more environmentally sound than a sprawling multinational. And small businesses can provide a personal touch that big ones can't -- which can be important when selling complicated eco-friendly wares.”

This type of local green businesses commits to the locale and the customers, and they promote the green life beyond what they sell.  These green local merchants are authentically green – they consciously use less energy, try to find local suppliers so their carbon footprint is smaller, and often live a green personal life.  As small businesses they owe nothing to shareholders or investors – which in the eyes of consumers, makes them more trustworthy.  Their payback? Loyal customers, a decent business, and the notion that they are doing good. 

Green Opportunities for Existing Small Businesses

For existing small businesses, going green can be anything from a wellness program for your employees to reducing your energy consumption to making a green (or greener) product to committing to a sustainable business model – a cradle to grave effort. 

If you’re looking into going “green” figure out what that means for you and what makes sense for your business.  You need to find what the Harvard Business Review called the– “shared value” – does your green effort create a “meaningful benefit for society that is also valuable to the business.”    If you sell office supplies, it probably doesn’t make sense for you to sponsor a program at a nursing home – maybe you could open a section or your store with sustainable supplies or solicit supply donations to a school in your area – or if you’re in a relatively affluent area – then a sister school.

The other thing small business owners should keep in mind is that they need to tell people about their green efforts –customers and suppliers and anyone else.  Local papers and local television news always like a good story.  Small Businesses can position themselves as part of a larger story about how local businesses in the area are trying to improve the planet in lots of different ways.  And don’t underestimate the value of blogs – write an article, offer an interview to a green blog – there are loads of them – here’s a good list to start and you can always look at their blog rolls for more:

Treehugger
WorldChanging
Clean Edge-The Clean Tech Marketing Authority
Ask Pablo – Sustainability Engineer
ecogeek
Green Trust Sustainability and Renewable Energy
Joel Makower
Lazy Environmentalist
Lime – Healthy Living with a Twist
Marketing Green
Organic Researcher
Envirolink Network – environmental resources
The Watt - energy news and discussion

I would also recommend these two books for an overview of green issues:

Shopping with a Conscience by Duncan Clark & Richie Unterberger
WorldChanging: A User’s Guide to the 21st Century, edited by Alex Steffen

The Green Umbrella Part 1 - Trends in Green

Green.  Sustainability.  Philanthropic.  Environmental.  Clean.  Natural.  Healthy.   Organic.  Conscious Capitalism.  Ethical Consumerism.  All these words define the movement of both consumers and companies to become socially responsible for their actions and their products or services.  The very heart of a business is changing – making a profit and striving for a healthier planet with healthier people are now bundled together.

Inc. magazine reported:

“…something seems different about our current green awakening. This time, the action is being driven as much by markets as morality. High oil prices, global warming, the sense that chemicals cause real harm and the earth's resources are indeed finite--these are not so much charitable causes to embrace as they are problems that entrepreneurs can solve.”

So how can I say with certainty that we’re on the brink of what Fast Company called Business 3.0?  Here are some trends to help small business owners decide how to incorporate “greenness” into their work.

1.  Customers are increasingly aware of environmental issues.

• The 2007 Cone Consumer Environmental Survey found “one-third of Americans (32%) report heightened interest in the environment compared to a year ago. In addition, they are overwhelmingly looking to companies to act: 93% of Americans believe companies have a responsibility to help preserve the environment. … Most Americans report they are also making efforts in their personal lives to intentionally reduce their impact on the environment, including:  Conserving energy- 93%, Recycling- 89%, Conserving water- 86%, Telling family/friends about environmental issues- 70%.”
• The 2007 ImagePower® Green Brands Survey indicated a “shift in the U.S.'s collective consciousness -- green is no longer an issue marginalized to fanatical environmentalists; nearly all Americans display green attitudes and behaviors versus a year ago…When asked what their perceptions were of green brands, respondents said they are often seen as better quality, though at a higher cost. This perception of green equating premium is one that makes good business sense for anyone considering entering the space. The good news for Whole Foods, Toyota and Sub-Zero (ranked among the greenest of the green) is that even non-users are more likely to use green brands and consider them the next time they make a purchase.”
• A national survey by GfK Custom Research North America showed that “…individual Americans view U.S. citizens and corporations as behind the rest of the world when it comes to taking action to protect the environment…” Kathy Sheehan, Senior vice-President for Gfk Roper Consulting said, "This reflects the overall 'consumer awakening' trend we are seeing today, in which action is historically preceded by acknowledgement of an issue resulting in a need for change" 
• About half of employed adults (52%) think their company should do more to be environmentally friendly. (Adecco Survey, 4/10/07)

2.  Customers are increasingly drawn to businesses/products/services that are green, organic, natural, clean, sustainable – you get the idea.

“The fact is that in today's society all business functions must understand social and environmental impacts and work towards reducing or improving them.
Diana Verde Nieto, “Marketing and CSR”, psfk, 11/27/06

• According to a recent Priceline.com survey, “…an overwhelming majority (72%) of travelers want rental car companies to offer economical, environmentally friendly hybrid vehicles powered by both gasoline and electricity. A similar majority (71%) of the 764 priceline.com customers who answered the survey said they would rent a hybrid and almost half (48%) said they would be willing to pay a premium for their "green" rental.
• “If a thrifty 99-cent four-pack of store-brand bars represents one end of the spectrum, the Zum Bar represents the other: it sells itself on far more than a banal promise of getting you clean. The Lemongrass variety, for example, aims to please the eye (yellow with swirls of green), nose (''bright, fresh, tangy and herby'') and skin (especially oily skin, in this case). And like all the Zum varieties, it pledges ingredient correctness: no synthetics, just natural stuff like goat's milk, glycerin and vegetable oils. There are apparently plenty of buyers who demand all this from a soap and will pay more than $5 a bar to get it: Indigo Wild, which makes Zum, now distributes its soaps and other aromatherapy products in 2,000 stores, including Whole Foods. Ten years ago, the founder, Emily Voth, was selling at a Kansas City farmer's market; now she has a 25,000-square-foot facility and dozens of employees.”  (The New York Times Sunday Magazine, 12/3/06)
• The Organic Trade Association says that organic retail sales in the United States have grown between 20% and 24% each year since 1990.  U.S. organic food sales totaled nearly $17 billion in 2006, representing approximately 3 percent of all retail sales of food and beverages…Organic foods’ share of total food sales is up from 1.9 percent in 2003 and approximately 2.5 percent in 2005. According to survey results, sales of organic foods grew by 22.1 percent in 2006 to reach $16.9 billion. Sales in 2005 were $13.831 billion.
• Green building is forecast to grow from a $7.4 billion market last year to $38 billion in 2010, according to the National Association of Home Builders. (Business Week Small Biz, Summer 2006)
• According to research from ACNielsen's LabelTrends™, [In 2006] products with antioxidants, fiber, no preservatives and organic claims all grew by 10% or more versus last year. Other characteristics with solid growth in the 5% and 10% range include lactose-free, gluten-free, whole grain, natural, and omega content.
• MediaPost reported that the $20 million organic chocolate category grew 57% last year, compared to a decline of 0.1% for convention chocolates.
• Water [considered a healthy drink], together with other nonfizzy drinks, accounted for 90 percent of the growth of the entire beverage industry between 2002 and 2005. By the end of the decade, they are expected to outsell soda.  (The New York Times, 5/27/07)
• General Electric Co. Chairman and Chief Executive Jeffrey Immelt said his "green" ecomagination unit is on track to "blow away" its 2010 sales target of $20 billion as demand for environmental products and services surges. After two years in operation, ecomagination has a backlog of orders worth $50 billion for products like wind turbines, aircraft engines and energy conservation technology. Last year, it had sales of $12 billion. (Reuters, 5/25/07)
• Organic-cotton production in the U.S. increased by 8%—and was up 7% in China, 25% in India, and 40% in Turkey—between 2004 and 2005, according to an April, 2006, Organic Exchange report that lists the top four producers. But demand for organic-cotton fibers by clothing makers increased 93% in the same period.  (Business Week, 9/27/06)
• Hybrid car sales soared to more than 200,000 in 2005, up from roughly 9,000 in 2002.  (hybridcars.com)
  • U.S. sales of organic sheets and towels rose 38% to $20 million in 2005, while sales of organic mattresses and pillows increased 32% to $2 million. (Financial Times, 9/3/06)
• Membership in the environmentally-base Sierra Club us up by roughly 33% in four years to almost 800,000 according to Newsweek.
• In the 1980’s some 50,000 manual lawnmowers were sold in the U.S.  In 2002, that number had increased to 250,000, and last year that number was up to 350,000.  (Estimates from American Lawn Mower Co., Associated Press, 5/28/07)

3.  Local Governments are forcing green issues all over the country:

• Plastic Bags - For the first time, non-biodegradable plastic bags are banned in large grocery stores by a local ordinance in San Francisco.  (San Francisco Chronicle, 3/28/07)
• Trans Fat - In 2007, New York became the first municipality to officially ban trans fats.  (MediaPost’s Marketing Daily, 1/3/07)  Philadelphia and Montgomery County, Maryland have also banned trans fat.  The only state to enact legislation is New Jersey, whose bill requires school cafeterias to reduce the purchase and consumption of foods containing trans fats.  (Washington Post, 5/16/07)
• The Incandescent Light Bulb – from Ban the Bulb blog : “South Carolina is attempting to follow the lead of Australia and the European Union by enforcing the use of compact fluorescent light bulbs…Other U.S. states are also considering similar legislation. In New Jersey, there's a bill to replace all the bulbs in government buildings, and similar proposals have been introduced in California, Connecticut, North Carolina and Rhode Island.”
• The Bottle in Bottled Water – This year, Americans will drink more than 30 billion single-serving bottles of water (The New York Times Sunday Magazine, 5/27/07).  According to The Container Recycling Institute -  California, Connecticut, Delaware, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon,  and Vermont all have existing bottle deposit laws.  But some of these states (Connecticut, Massachusetts, New York) did not anticipate the phenomenal growth of bottled water and are now attempting to update their legislation.  And many additional states (Arkansas, Illinois, Maryland, North Carolina, South Carolina, Tennessee, West Virginia)  are considering similar laws.

4.  Personal and Professional Investors are Going Green

One sure way to know that clean or sustainable or environmental or just plain green businesses are here to stay is to see where both professional and personal investors are putting their money.

Venture Capital

One venture capitalist told Entrepreneur magazine:

“We look at all kinds of energy and environmental technologies…But it's different than the '70s and '80s boom in environmental cleanup technologies: Today, these are proactive technologies, not reactive.”
Venture Capitalist David Kirkpatrick, Managing Director, SJF Ventures, Durham, NC

• Venture capitalists invested $1.2 billion in green businesses in 2006. That’s twice as much as they invested in 2005… (Venture Capitalist John Doerr, Speech, Stanford Graduate School of Business, 4/5/07)
• Venture capital firms invested $958 million in renewable energy companies in the first half of 2006 alone. (Inc., 11/06)
• Sharp growth in the number of VC firms specializing in seeding green businesses or adding a green component to their funds:  Global Environment Fund, SJF Ventures, Rockport Capital Partners, SAIL Venture Partners, Cleantech Venture Network, Nth Power, Kleiner Perkins Caufield & Byers, 3i, Draper Fisher Jurvetson

Socially Responsible Investments

“There is a dramatic increase in the number of investment managers looking at their investments in a different way than they have previously,”
Mark Tulay, Director, Institutional Shareholder Services, Rockville, MD

• Socially responsible investing options have exploded the last few years:  Nearly $2.3 trillion was held in socially responsible accounts used by individuals and institutions at the end of 2005, up from $639 billion in 1995 and outpacing growth in total assets invested.  (The Washington Post, 5/13/07)
• Socially Responsible Investment Firms have multiplied too –  Al Gore’s Generation Investment Management (with some 110 green mutual funds and more),  Social Investment Forum, Social Funds, Calvert, Domini Social Investments, Pax World Funds, Citizens Funds, CalPERS, Ceres, Interfaith Center on Corporate Responsibility, Sierra Club Mutual Funds
• Even some mainstream financial institutions have factored in environmental, social and governance (ESG) issues into their investment processes – UBS, Goldman Sachs, Citigroup, Smith Barney, JP Morgan Chase (Value., "Mainstreaming Socially Responsible Investment,"Feb/Mar 2006)

5.  The Green Business Infrastructure is Growing
Education, Entrepreneurial Communities and Conferences have all been affected by our environmental awakening. 

“MBA courses on topics such as social entrepreneurship have exploded in the past few years”
Rich Leimsider, Senior Associate, Aspen Institute Business and Society Program 

Green MBAs:

• Student interest in sustainability issues is skyrocketing… five years ago, [The Aspen Institute Business and Society Program] site received a few hundred visits a month from prospective MBA students researching social-emphasis courses at various schools. Now there are 15,000 to 20,000 visits a month.  (Seattle Post-Intelligencer, 3/5/07)
• New College of California – offers a Socially Responsible and Ecologically Sustainable MBA Program
• Dominican University of California – has a Green MBA program
• The Bainbridge Graduate Institute, Washington State – from website:  BGI's pioneering MBA and Certificate programs prepare diverse leaders to build enterprises that are economically successful, socially responsible and environmentally sustainable.
• Presidio School of Management, Presidio World College, San Francisco -  has an MBA program in Sustainable Management
• Green Mountain College, Vermont -  “…charged into the world of online education with two innovative master's programs, both catering to the needs of working professionals. One is an MBA in sustainable business. The other is a Master of Science in Environmental Studies…” (Seattle Post-Intelligencer, 3/5/07)
• Case Western Reserve, Northwestern, Stanford, the University of Michigan and George Washington University all have concentrations in sustainable enterprise. Yale School of Management has offered a joint degree -- an M.B.A. and Master of Environmental Management -- in conjunction with the Yale School of Forestry and Environmental Studies for more than 25 years.”  (The New York Times, 1/8/06)
• "The Stanford Graduate School of Business, ranked No. 1 in the 2005 Aspen report, introduced a joint degree program for MBA students in environment and resources in April. Another initiative teams the business and engineering school for a course in which students use concepts from both disciplines to solve problems. This year, one project involved developing a safe, cheap and easy-to-power LED light for people who don't have electricity, an alternative to dangerous and relatively expensive kerosene lamps."  (Associated Press, 9/23/07)

Entrepreneur Communities that focus on Green Issues and Social Responsibility:

• Center for Sustainable Innovation 
• Center for Small Business and the Environment 
• E2: Environmental Entrepreneurs 
• Entrepreneurs for Sustainability 
• Business for Social Responsibility
• Small Business Majority
• Ashoka
• New Voice of Business
• Global Environment and Technology Foundation

Green Conferences:

• Co-op America’s Green Business Conference – from website:  “Roll up your sleeves and get ready to bite into the green business revolution at this hands-on conference.  Learn from your peers in this value-packed three-day event as you discuss the many ways to build your business and a prosperous sustainable economy ...”
• National Association of Home Builders, National Green Building Conference - 'Greening the American Dream' 
• Green Power Conferences – from website:  “Green Power Conferences was established in 2003 by a team of professional, environmentally aware event experts. We have since welcomed over 4000 delegates from 76 countries, built a global database of 110,000+ contacts and gained an unparalleled reputation in the industry.”
• The Green Power Network’s (Dept. of Energy) National Renewable Energy Marketing Conference – “The purpose of the National Renewable Energy Marketing Conference is to review the status of green power marketing in electricity markets and to explore strategies to increase the development of renewable energy resources through customer choice. Conference organizers include the U.S. Department of Energy, U.S. Environmental Protection Agency, and Center for Resource Solutions.”
• EPA’s one stop shop for planning a green conference – This is a bit different from a conference about green business - this site can help you plan any kind of meeting while minimizing negative impacts on the environment.

Resources/Further Reading

Joel Makower on “Ten Reasons why the Greening of Business will be an issue for years to come”

Greenbiz.com - From energy-saving basics to in-depth analysis on green business in exporting and manufacturing, this Web site aims to bring environmentally-friendly practices to main-stream small businesses.

National Association of Home Builders -  Green Building

U.S. EPA site - Energy Star/Small Business – free support for small facility energy saving

National Small Business Association – Going Green tips

A shorter version of this post first appeared in August on Anita Campbell's Small Business Trends Blog

Next week:  Part 2 - Green Business Opportunities

No Car Day

Yesterday I found myself sitting in traffic wondering what the road would look like without cars on it.  This morning I found this article which made me think that maybe I am a tiny bit psychic after all.

On September 22nd, the first annual "No Car Day" will debut in over 100 cities in China as traffic is reduced and the number of private vehicles on the road shrinks.  Residents will have to find new ways to get around-- especially in Shanghai where one-third of the city's cars will be off the roads. 

The fact that the cost of driving in China continues to go up but people are still finding ways to afford vehicles tells us a lot about society.  The above article mentioned that the practice of auctioning license plates was initiated to limit the number of vehicles in Shanghai, but that the number of cars on the road keeps increasing.  I could never imagine paying $6,200 for a license plate.  People are becoming so accustomed to driving long distances for small things that it becomes a complete inconvenience to go without a car for even a few days in today's world.  I live in an area that has so much to offer locally but still find myself behind the wheel each day.

China has been in the news so much lately and is at the top of the charts for poor air quality and pollution problems.  The emphasis on our environment and on global warming has created awareness and makes events like the No Car Day possible.  I think this is great but I'm wondering how much of a difference one day will make.  It's definitely better than nothing and I'm a fan of baby steps.

Pollution Scares Me!

I was shocked by an article Science Daily released today regarding a huge number of human deaths around the world.  The article claims that "about 40 percent of deaths worldwide are caused by water, air and soil pollution." 

Other points specifically mentioned include:

• "Nearly half the world's people are crowded into urban areas, often without adequate sanitation, and are exposed to epidemics of such diseases as measles and flu.
• With 1.2 billion people lacking clean water, waterborne infections account for 80 percent of all infectious diseases. Increased water pollution creates breeding grounds for malaria-carrying mosquitoes, killing 1.2 million to 2.7 million people a year, and air pollution kills about 3 million people a year. Unsanitary living conditions account for more than 5 million deaths each year, of which more than half are children.
• Air pollution from smoke and various chemicals kills 3 million people a year. In the United States alone about 3 million tons of toxic chemicals are released into the environment -- contributing to cancer, birth defects, immune system defects and many other serious health problems.
• Soil is contaminated by many chemicals and pathogens, which are passed on to humans through direct contact or via food and water. Increased soil erosion worldwide not only results in more soil being blown but spreading of disease microbes and various toxins."

This is scary information.  I think that news like this is shocking but makes a lot of sense when you look at the raw facts.  The importance of clean water and air is huge.  We are beginning to realize the types of things we do to contribute to different kinds of pollution (buying bottled water, wasting gas by driving short distances, etc...) and are hopefully trying to slowly turn things around with baby steps.

Does This Diet Make my Footprint Look Smaller??

As an overachiever, I'm always looking for ways to make myself better.  I am constantly trying to plan for the future, figure out how to do the best I can in the moment, save money, take care of myself, be a good person, take care of others, and stay happy.  Sometimes this is a tough thing to accomplish without becoming stressed-- which can make me act like a different person.  It's like a vicious circle.

I think a lot of other people feel the same way I do.  We are all so busy and we feel that we have capabilities to fill roles that we couldn't fill in the past and are trying to take full advantage.  Technology has changed our lives and has made a lot of things easier-- but this doesn't mean we want to do less.  We always want more.  We want to accomplish more during our days but we also want more sleep.  We want to save money but we still want to spend it on luxury items we may not necessarily be able to afford.  We want to be successful at work but we still want family time.  We want huge homes but we don't get to spend time in them because we have to work so hard to be able to pay our mortgages.  Basically, we want everything. 

Because the environment has been a topic that has gotten lots of attention lately, and global warming is on a lot of our minds, the concept of carbon offsets has become big news to a lot of people.  When I think of carbon offsets I immediately think of travel by plane and the option of paying for carbon offsets from our flights-- that sort of thing.  Apparently, I need to think outside the box.  The Washington Times published a short piece on a unique diet coined by Laura Stec, a chef from San Francisco, who has created "The Global Warming Diet."

She realizes that food choice has a big effect on climate change and wrote a 250-page  book packed with vegetarian items, scientific claims from the United Nations and the Union of Concerned Scientists, as well as guides for "discussion" parties.  She says, "One of the most positive effects you can have on the environment begins on your dinner plate."

Here are some shocking statistics from the article:

• It takes 10 times more fossil fuel to produce a calorie of meat than a calorie of plant protein.
• Flatulent cows and methane-producing manure piles contribute to 18% of all greenhouse gases-- the equivalent of 33 million cars on the nation's roadways.
• 11 pounds of grain and 2,500 gallons of water go into making a hamburger.
• The average meal travels 1,500 miles to get to your dinner plate.
• Americans consume more than 1 billion pounds-- and 1 trillion calories of food each day.

The fact that our idea of a "diet" may not just revolve around losing weight, but also focus on the good of the environment is a good sign.  Cutting out meat altogether seems like an extreme move to me, but I would be willing to buy locally and make vegetarian meals every now and then.  We will probably see more of this type of thing in the future as more attention is paid to our world and the impact we have on our environment.  Making a few small changes is definitely doable, but I can't see myself hosting a "discussion party" anytime soon.

Straight from the Tap

We are bombarded with advertisements every single day.  We see ads when we walk around outside, when we read the newspaper, and when we watch TV.  It's a challenge now for advertisers to create ad campaigns we really notice that stand out in the crowd of thousands we are exposed to on a daily basis.

One ad campaign I found out about in Brandweek really surprised me: the new "Get your fill" campaign-- gloriously paid for by the taxpayers of New York City-- promotes tap water to residents and tourists.  Apparently, New York is one of only five U.S. cities that has a federal filtering waiver, yet, many children and adults have the preconceived notion that the city's water is not drinkable.  This may be partially due to the overexposure of people walking around with bottled water (which is still proving to be a very profitable business).  No matter what the cause, Mayor Bloomberg has taken notice and is doing all he can to change viewpoints.

The campaign will spend $700,000 and will post ads throughout the subway system, check-cashing stations and bus kiosks in hopes that use of city water will increase along with awareness. 

I know I have blogged a lot about water (especially bottled water or negative effects on the environment) and I most likely will continue to post articles or information in the future because water is so important.  Water is something that we as a nation often waste and take for granted, and I think the ad campaigns are a little obvious, yet, interesting.  I'm not sure that all taxpayers would agree that this is a good use of $700,000-- but the long-term effects could be worth it.  I think the fact Mayor Bloomberg even feels it's important to advertise tap water shows the way our societal viewpoint is shifting.  We are taking notice of the types of things we should focus more on as unit and are trying to come up with ways to get the word out.  We have realized that togetherness can pay off and that our environment is something that should be on the top of our priority list.

Water Skin?

I found a really great post on Springwise.com about a new type of bottled that could serve as an alternative to traditional plastic bottles used today.

Pitched as a water skin, a new bottle created by French packaging manufacturer Sidel provides a lighter alternative to traditional PET bottles. A regular plastic half-litre water bottle weighs 13 – 16 grams. Sidel's "NoBottle" weighs just 9.9 grams. According to Sidel, "Water is the largest beverage market by volume with 160 billion litres consumed in 2006. It also represents the highest growth sector and is expected to expand by 5.7 percent annually between now and 2010." On that scale, waste reduction of 20-30% adds up.

The innovation was made possible by using a highly flexible type of plastic with shape-memory, which lets the bottle bounce back into shape after being gripped or otherwise compressed. While calling a plastic water bottle eco-friendly smacks of greenwashing, Sidel's NoBottle is definitely is eco-friendlier. The potential waste reduction is significant and offering a lighter bottle — and its story — could boost sales for beverage makers marketing to green-aware consumers. NoBottle will be officially introduced at K 2007, an international trade fair in October.

I know that awareness is increasing across the globe and that we are starting to understand our environmental impact.  While this is a good idea for sure, we need to keep in mind that we should avoid one-time-use bottles when we have other alternatives.  The fact that companies are developing other means to continue making products that we demand on a daily basis shows that we hate to make changes that we feel could be inconvenient.  Hopefully we will find a way to keep everyone happy and healthy.

Manual Mowers are so Hot Right Now...

The Washington Times ran a story this past Tuesday on the increase in sales of manual lawn mowers.  I thought this was an interesting trend which I personally attribute to the rise of gas prices and the awareness that we are all getting from the media (including Celebrities-- Mr. DiCaprio) about environmental problems and the difference we can make.  I also think that we learn to appreciate old classics all over again sometimes.  Plus, it helps that the manual mowers are about $200-- much less than gas-powered options.

According to the article:

Powerful, loud mowers have been showing lawns who's boss for decades. But now contraptions that couldn't cut butter without a good shove are quietly -- really quietly -- making a comeback.

Manual lawn mowers, long the 98-pound weaklings of the tool shed, are pushing their way, or, more accurately, being pushed around more yards all over the country.

"It's phenomenal," said Teri McClain, inside sales administrator at the 112-year-old American Lawn Mower Co. in Shelbyville, Ind., which she said is the only manufacturer of reel mowers in the United States. "Sales continue to rise every year."

An estimated 50,000 were sold per year in the 1980's, compared to about 350,000 per year now.  This is a pretty big difference.  I think we are starting to feel the need to help in any way we can.  It will be interesting to see if this is just a fad that passes or if we are going to continue to demand products that are better for the environment and for our wallets. 

I DO... Plan to Recycle

In honor of my recent engagement and my official wedding contract signing for our venue today, it is a good time to write about one of the newest matrimonial trends these days: green weddings.

An average of 2.1 million people tie the knot each year, and the wedding industry expects this figure to rise within the next 20 years.  Some of these new couples are trying to find a way to offset their ecological dent by doing a few things differently for their weddings.

According to a February New York Times article,

Millie Martini Bratten, the editor in chief of Brides magazine, said that over the last five years the interest in green weddings has blossomed from a desire to incorporate a few green elements, like a vegan menu, to making sure the entire celebration won’t contribute to the depletion of natural resources. This may include finding halls that recycle, hiring caterers who use locally grown ingredients, decorating with potted plants that can be transplanted and using soy-based candles, rather than those of petroleum-based wax.

“If anything, it makes the wedding even more meaningful,” said Ms. Martini Bratten, whose magazine’s February-March issue features a planning guide for a green wedding.

Some of these changes seem easy enough to make and could be a good idea for the environmentally-conscious.  Don't ask me questions about whether or not my wedding will be eco-friendly-- we have just gotten started on the planning front.

More for Less

Sometimes we pay a lot more for things than we expect to.

A USA Today article, "Carpool Sticker Adds Value to Used Priuses in California," brings up the fact that people in California are willing to pay more money for "used gasoline-electric hybrid vehicles that have state-issued carpool stickers than for hybrids that don't."

The stickers allow low-polluting hybrids to use less-crowded, faster-moving carpool lanes, even if the driver is alone in the car.  The state quit issuing stickers to hybrids last month after hitting a self-imposed cap of 85,000.  Those already issued are valid through 2011 and stay with the car when it's sold, benefiting subsequent owners.

The sticker premium shows that the program to encourage hybrid ownership is working, says David Ford, spokesman for California State Assemblyman Ted Lieu. He sponsored the bill that added 10,000 more hybrid stickers late last year.

We are willing to pay a lot more for convenience.  If we will save time in our busy lives by shelling out more money, some of us consider it worth the extra cost.