C M Y K Composite … Protection Agency. In that span, acid rain has been markedly reduced as well....
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B6 Friday, April 22, 2011 THE WALL STREET JOURNAL. A food manufacturer that used to toss out five million pounds of seed husks, which were left over from its mustard-making process- es each year, now turns the refuse into animal feed. A consumer goods com- pany reformulated its laundry products so they consume less water during the rinse cycle. A computer manufacturer built a machine that automatically ex- tracts magnets from discarded technol- ogy to keep them out of landfills. These recent developments would have seemed like wistful, even sci- fi thinking on April 22, 1970 when 20 million people participated in the first Earth Day, a “teach in” to raise awareness of the envi- ronment. At the time, air pol- lution was so bad, and en- vironmental conditions so dire, some people predicted that more than 75 percent of all animal spe- cies would be extinct within two decades. That first Earth Day is cred- ited with launch- ing the modern environmental move- ment, quickly leading to the passage of the Clean Air Act, the Clean Water Act and other vital legislation. On its 20th anniversary in 1990, Earth Day went international. Some 200 million people took part in events in 141 countries, boosting recycling ef- forts around the globe and ushering in what many consider the second wave of the sustainability movement. Flash forward another two decades. On Earth Day 2011, when more than a billion people are expected to take action, the sustained focus on im- proving the environment has had a profound effect. Since 1990, the amount of lead, car- bon monoxide and four other common air pollutants has declined significant- ly, according to a report by the Environ- mental Protection Agency. In that span, acid rain has been markedly reduced as well. The EPA reports that haze no lon- ger obscures the subalpine wildflower meadows and spectacular waterfalls in Mount Rainier National Park, or other scenic locales, as it used to. Welcome as this news is, more environmental work remains. As new challenges like global water shortages emerge, sustainability efforts are ramp- ing up even more in the corporate land- scape than in previous years. “Neither of the first two waves of sustainabil- ity, in the 1970s and 1990s, resulted in lasting change in corporate settings,” says Eric Lowitt, a sustainability strat- egy consultant whose book, The Future of Value, will be published in Septem- ber. “The difference is now companies are connecting sustainability with their core business activities and values.” One reason is that sustainability — and issues like energy and global wa- ter shortages — are becoming deeply intertwined with how global business needs to be conducted. Finding ways to address these environmental issues doesn’t just keep pollutants out of the air and waste out of landfills. Green efforts can improve the supply chain, increase market share and boost cus- tomer satisfaction. “Sustainability initiatives are a win-win for our customers, for our employees and for all our other stake- holders, because you can do the moral thing and the right business thing at the same time,” says Bharat B. Mas- rani, president and CEO of TD Bank, which became the first North Ameri- can bank to go carbon neutral in 2010. Water: “The New Carbon” Joel Makower, chairman and executive editor of the GreenBiz Group, an Oakland, Calif.-based organization that tracks corporate sustainability issues, labels water “the new car- bon” due to parallels with efforts to reduce the greenhouse gas footprint. Companies want to understand their water usage, measure it, reduce it and even offset it to the point of being “water neutral.” The focus on water, like many elements in the third wave of sustain- ability, is being driven by a combined environmental and economic impera- tive. Erik Fyrwald, chairman and CEO of Nalco Company, a leading sustain- ability services company focused on industrial water, energy and air ap- plications, cites studies that indicate if no efficiency gains were achieved, global water requirements would grow from 4,500 billion cubic meters today to 6,900 billion cubic meters in 2030 — a full 40 percent above cur- rent accessible, reliable supply. “In China, India and coun- tries in the Middle East and Africa, growth is incredibly fast, and they realize they don’t have enough water to sustain that growth un- less they make a shift in how they use water in agriculture and indus- try,” Fyrwald says. “The macro num- bers are undeni- able — the wa- ter tables are shrinking.” Consequently, emerging countries are not only look- ing for ways to use less water; they are pioneering new technologies like zero liquid discharge operations, a technique to recover wastewater for industrial applications at a faster rate than that of the devel- oped world. “In many cases they’re leapfrog- ging the developed world in using this technology,” Fyrwald says. “These countries realize that fresh water is becoming increasingly scarce and if they’re not more efficient, they might invest in an expensive facility that won’t be able to run at full capacity.” In addition, companies are put- ting more effort into the difficult task of water footprint analysis, the process of understanding how much, and what kind of water, is used to make products and run businesses. Makower gives an example of a soft drink company that, at one time, was using 70 liters of water to make one li- ter of beverage. Demonstrating just how complicated water analysis can be, the 70 liters was a combination of “green” water (the stored rainwater farms use to produce raw materials); “blue” wa- ter (river, lake and aquifer water used by factories and manufacturers to make products); and “gray” water (fresh wa- ter that absorbs pollutants from manu- facturing and agriculture). That dizzying blend attests to the complexity of many emerging sustain- ability challenges. It also shows why companies are taking a more far-rang- ing view of sustainability, since envi- ronmental issues ripple through an or- ganization in so many ways, affecting so many parts of its operation. “Historically, our customers were the plant and utility people, who wanted help in operating their cooling and heating systems in the most cost- efficient ways possible,” Fyrwald says. “Today, we’re talking to more people at senior levels — plant managers, sus- tainability officers and corporate ex- ecutives — who want to achieve goals across the breadth of their operations.” One of the upsides of this is a suc- cessful approach at one plant no longer stays at that one plant. “It becomes a best practice that can quickly spread to the company’s other facilities around the globe,” he says, “In that way, it’s exponentially increasing the economic and environmental benefits.” Buildings: Taking the LEED Buildings use more energy than any other human activity. The eco- nomic downturn, and rough real Special Advertising Section Illustrations by Michael Austin Earth Day 2011 Eco-responsibility gets a boost from innovative companies By Joe Mullich SuStainability’S third Wave Water Sustains Life Essential Expertise for Water, Energy and Air Where there is water, there are frogs and boys expending a great deal of energy catching them. Water and energy are linked in industry as well. Optimizing these resources requires a unique partnership. Working together Nalco and Gallatin Steel reduced freshwater consumption and conserved energy at Gallatin’s Ghent, Kentucky facility, saving: • 179 million gallons of water, equal to the water needs of 6,900 people • 2.3 million kWhr of energy, enough to power 83 U.S. households • 2,387 tons of CO 2 , equivalent to planting 99,478 trees Conserving every precious resource sustains life. www.nalco.com/gallatin ©2011 Nalco Company Nalco, the logo and tagline are trademarks of Nalco Company All other trademarks are property of their respective owners a Joint Venture of ArcelorMittal and Gerdau Ameristeel Water Sustains Life
Transcript of C M Y K Composite … Protection Agency. In that span, acid rain has been markedly reduced as well....
YELLOW
B6 Friday, April 22, 2011 THE WALL STREET JOURNAL.
Special Advertising Section
Afood manufacturer thatused to toss out fivemillion pounds of seedhusks, which were left
over from its mustard-making process-es each year, now turns the refuse intoanimal feed. A consumer goods com-pany reformulated its laundry productsso they consume less water during therinse cycle. A computer manufacturerbuilt a machine that automatically ex-tracts magnets from discarded technol-ogy to keep them out of landfills.
These recent developments wouldhave seemed like wistful, even sci-fi thinking on April 22, 1970 when20 million people participated inthe first Earth Day, a “teach in”to raise awareness of the envi-ronment. At the time, air pol-lution was so bad, and en-vironmental conditionsso dire, some peoplepredicted that morethan 75 percent ofall animal spe-cies would beextinct withintwo decades.
That firstEarth Day is cred-ited with launch-ing the modern environmental move-ment, quickly leading to the passageof the Clean Air Act, the Clean WaterAct and other vital legislation. Onits 20th anniversary in 1990, EarthDay went international. Some 200million people took part in events in
141 countries, boosting recycling ef-forts around the globe and usheringin what many consider the secondwave of the sustainability movement.Flash forward another two decades.On Earth Day 2011, when more thana billion people are expected to take
action, the sustained focus on im-proving the environment has had aprofound effect.
Since 1990, the amount of lead, car-bon monoxide and four other commonair pollutants has declined significant-ly, according to a report by the Environ-mental Protection Agency. In that span,acid rain has been markedly reduced aswell. The EPA reports that haze no lon-ger obscures the subalpine wildflowermeadows and spectacular waterfalls inMount Rainier National Park, or otherscenic locales, as it used to.
Welcome as this news is, moreenvironmental work remains. As newchallenges like global water shortagesemerge, sustainability efforts are ramp-ing up even more in the corporate land-scape than in previous years. “Neitherof the first two waves of sustainabil-ity, in the 1970s and 1990s, resulted inlasting change in corporate settings,”says Eric Lowitt, a sustainability strat-egy consultant whose book, The Futureof Value, will be published in Septem-ber. “The difference is now companiesare connecting sustainability with theircore business activities and values.”
One reason is that sustainability —and issues like energy and global wa-ter shortages — are becoming deeplyintertwined with how global businessneeds to be conducted. Finding waysto address these environmental issuesdoesn’t just keep pollutants out of theair and waste out of landfills. Greenefforts can improve the supply chain,increase market share and boost cus-tomer satisfaction.
“Sustainability initiatives are awin-win for our customers, for ouremployees and for all our other stake-holders, because you can do the moralthing and the right business thing atthe same time,” says Bharat B. Mas-rani, president and CEO of TD Bank,which became the first North Ameri-can bank to go carbon neutral in 2010.
Water: “The New Carbon”Joel Makower, chairman and
executive editor of the GreenBiz Group,an Oakland, Calif.-based organizationthat tracks corporate sustainabilityissues, labels water “the new car-bon” due to parallels with efforts toreduce the greenhouse gas footprint.Companies want to understand theirwater usage, measure it, reduce it andeven offset it to the point of being“water neutral.”
The focus on water, like manyelements in the third wave of sustain-
ability, is being driven by a combinedenvironmental and economic impera-tive. Erik Fyrwald, chairman and CEOof Nalco Company, a leading sustain-ability services company focused onindustrial water, energy and air ap-plications, cites studies that indicateif no efficiency gains were achieved,global water requirements wouldgrow from 4,500 billion cubic meterstoday to 6,900 billion cubic meters in
2030 — a full 40 percent above cur-rent accessible, reliable supply.
“In China, India and coun-tries in the Middle East and
Africa, growth is incrediblyfast, and they realize theydon’t have enough waterto sustain that growth un-less they make a shift inhow they use water inagriculture and indus-
try,” Fyrwald says.“The macro num-bers are undeni-
able — the wa-ter tables areshrinking.”
Consequently,emerging countries
are not only look-ing for ways to use
less water; they are pioneering newtechnologies like zero liquid dischargeoperations, a technique to recoverwastewater for industrial applicationsat a faster rate than that of the devel-oped world.
“In many cases they’re leapfrog-ging the developed world in using thistechnology,” Fyrwald says. “Thesecountries realize that fresh water isbecoming increasingly scarce and ifthey’re not more efficient, they mightinvest in an expensive facility thatwon’t be able to run at full capacity.”
In addition, companies are put-ting more effort into the difficult taskof water footprint analysis, the processof understanding how much, and whatkind of water, is used to make productsand run businesses.
Makower gives an example of a softdrink company that, at one time, wasusing 70 liters of water to make one li-ter of beverage. Demonstrating just howcomplicated water analysis can be, the70 liters was a combination of “green”water (the stored rainwater farms useto produce raw materials); “blue” wa-ter (river, lake and aquifer water usedby factories and manufacturers to makeproducts); and “gray” water (fresh wa-ter that absorbs pollutants from manu-facturing and agriculture).
That dizzying blend attests to thecomplexity of many emerging sustain-ability challenges. It also shows whycompanies are taking a more far-rang-ing view of sustainability, since envi-ronmental issues ripple through an or-ganization in so many ways, affectingso many parts of its operation.
“Historically, our customers werethe plant and utility people, whowanted help in operating their coolingand heating systems in the most cost-efficient ways possible,” Fyrwald says.“Today, we’re talking to more peopleat senior levels — plant managers, sus-tainability officers and corporate ex-ecutives — who want to achieve goalsacross the breadth of their operations.”
One of the upsides of this is a suc-cessful approach at one plant no longerstays at that one plant. “It becomes abest practice that can quickly spread tothe company’s other facilities aroundthe globe,” he says, “In that way, it’sexponentially increasing the economicand environmental benefits.”
Buildings: Taking the LEEDBuildings use more energy than
any other human activity. The eco-nomic downturn, and rough real
Special Advertising Section
I l l u s t r a t i o n s b y Mi c h a e l Au s t i n
Earth Day 2011
Eco-responsibility gets a boost from innovative companiesBy Joe Mullich
SuStainability’S third Wave
Essential Expertisefor Water, Energy and Air
Where there is water, there are frogs and boys expending a great deal ofenergy catching them. Water and energy are linked in industry as well.Optimizing these resources requires a unique partnership.
Working together Nalco and Gallatin Steel reduced freshwaterconsumption and conserved energy at Gallatin’s Ghent, Kentucky facility,saving:
• 179 million gallons of water, equal to the water needs of 6,900 people• 2.3 million kWhr of energy, enough to power 83 U.S. households• 2,387 tons of CO2, equivalent to planting 99,478 trees
Conserving every precious resource sustains life.
www.nalco.com/gallatin©2011 Nalco Company Nalco, the logo and tagline are trademarks of Nalco Company
All other trademarks are property of their respective owners
a Joint Venture of ArcelorMittal and Gerdau Ameristeel
Water Sustains Life
Essential Expertisefor Water, Energy and Air
Where there is water, there are frogs and boys expending a great deal ofenergy catching them. Water and energy are linked in industry as well.Optimizing these resources requires a unique partnership.
Working together Nalco and Gallatin Steel reduced freshwaterconsumption and conserved energy at Gallatin’s Ghent, Kentucky facility,saving:
• 179 million gallons of water, equal to the water needs of 6,900 people• 2.3 million kWhr of energy, enough to power 83 U.S. households• 2,387 tons of CO2, equivalent to planting 99,478 trees
Conserving every precious resource sustains life.
www.nalco.com/gallatin©2011 Nalco Company Nalco, the logo and tagline are trademarks of Nalco Company
All other trademarks are property of their respective owners
a Joint Venture of ArcelorMittal and Gerdau Ameristeel
Water Sustains Life
CM Y K Composite
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THE WALL STREET JOURNAL. Friday, April 22, 2011 B6A
Special Advertising SectionSpecial Advertising Section
estate market, has notdiminished the enthusi-asm for environmentallyresponsible buildings.In 2010, the amount ofsquare footage of floorspace that gained LEEDcertification equaled thetotal amount of LEED-certified floor space putin place over the entireprevious decade.
According to theGreenBiz Group, LEEDbuildings reduced green-house gas emissions byeight million tons lastyear and boosted watersavings significantly. Be-cause of location-efficientdevelopment, employeecommuting reduced by1.4 billion vehicle milesto date. One billion ofthose miles decreased inthe last two years alone.
TD Bank has madeeco-friendly buildings alinchpin of its sustain-ability program. The fi-nancial firm will openthe first net-zero energybank location in the U.S.in Fort Lauderdale, Fla.this spring (and only theeighth such building inthe country). The “netzero” designation means the new facility will produceat least as much renewable power as the total energyit uses.
For TD Bank, green building is not an after-thought, but a crucial element of its strategic busi-ness goals. “In the U.S., one of our core strategies isto grow organically by opening new stores,” Masranisays. “Sustainability is a key aspect of how we de-sign our buildings, and select the locations for them.”That’s important, says Jacquelynn Henke, TD Bank’sU.S. real estate green strategy officer, because for “en-vironmental efforts to make an impact, they have tobe embedded in a company’s business strategy.”
The Florida site is based on TD Bank’s new green-store design standards, which use techniques likedrought-tolerant plants and shrubs that do not needto be watered regularly, and exterior walls and glaz-ing that keep the store cool in the summer and warmin the winter.
“We don’t want to change the customer experi-ence, and overly emphasize that we have smart build-ing features or that the furniture and flooring hasbeen repurposed,” Henke says. However, while cus-tomers are waiting in the drive-through, they will seeplacards which explain the use of solar panels, sincecustomers are likely to be curious about the translu-cent canopy that supplies 20 percent of the bank’senergy needs.
Customers: Joining InCustomers are increasingly taking notice of the
sustainable nature of the companies they do businesswith. Consequently, companies are searching for thebest ways to involve customers in those efforts.
Some companies are finding that eco-efficientpolicies can be part of a savvy business model to openup new markets, while at the same time benefit theenvironment. Lowitt points to an electronics retailchain that launched an initiative allowing customersto buy televisions and return them years later whenthey were ready to upgrade. The components couldbe reused rather than put in a landfill, and the buyergot a portion of their original purchase price back.
“Companies are realizing that the concept of ‘leas-ing’ can be extended to a wider range of products. Itprovides a sustainability benefit that customers like,but also provides a financial payback that both thecompany and the customer enjoy,” he says.
A few companies are even engaging customersdirectly in developing their sustainability initiatives.Lowitt points to an online seller that surveyed cus-tomers for sustainability suggestions, and received anunexpected idea that the company should use sturdi-er boxes, which could be reused, rather than tossed.As with many sustainability initiatives, the marketerquickly saw additional benefits: Unlike the flimsyboxes that were used before, the new ones were firmenough to be affixed with RFID tags, which allowedshipments to be tracked and informed customersabout their delivery status.
“Ideas like this are challenging the conventionalthinking about what sustainability means,” Lowittsays. “Ultimately, sustainability is about growth andopportunity, and in five to seven years companieswon’t be talking about it as a separate thing becausesustainability will be integrated into everything theyalready do on a daily basis.”
Businesses: The “Wide Angle Lens”Some companies are already taking a “wide angle
lens” approach to sustainability. According to a newstudy by the Boston Consulting Group in conjunctionwith the MIT Sloan Management Review, the sustain-ability leaders, dubbed “embracers,” are establish-ing cultures where sustainability thinking is beingapplied to all their business processes.
These companies realize that the complexity of
becoming carbon-neutral or water-neutral requiresthem to think deeply and act broadly. And so they’rerevamping their supply chains to avoid conflict min-erals — those minerals mined in areas that have hu-man rights abuses or armed conflicts. They are find-ing ways to recycle waste into new products, such asturning discarded plastic bottles into dog beds. Theyare racing ahead to adopt new environmental ap-proaches even before legislators mandate them.
“Sustainability initiatives are manifesting them-selves in many ways,” says Balu Balagopal, a seniorpartner at the Boston Consulting Group. “Sometimesthey are grassroots efforts by employees, but for the‘embracers,’ sustainability has evolved into a broadand clear mandate that involves everyone from thetop down to the bottom up.”
Which, when you think about it, describesthe evolution of Earth Day and the environmental
movement itself. In the third wave of sustainabil-ity, companies require an ever-growing coalition ofmanagement, employees, customers and partners insearch of new ideas. Similarly, Earth Day has spurredgreat environmental improvements by encouragingpeople from all walks of life to work together, andthen spread their efforts to other countries and cul-tures to make a worldwide impact.
“Global warming was the launch pad for the sus-tainability improvement, which then shifted to cli-mate change,” Fyrwald says. “But now the issues arebecoming even broader. For the long term, companieshave to operate sustainably. It’s the right thing to do,but it’s also the necessary thing to do.”
Joe Mullich has received more than two dozen awards forwriting about business, technology and other topics.
0 20% 40% 60% 80%
PERCENTAGE OF RESPONDENTS
100%
IS PURSUING SUSTAINABILITY-RELATED STRATEGIESNECESSARY TO BE COMPETITIVE?
Automobiles
Commodities
Conglomerate/Multi-industry
Energy and Utilities
Chemicals
Industry Goods and Machinery Retail
Other
Consumer Products
Construction
Financial Services
Industrial Services
Technology and Telecommunications
Healthcare
Media and Entertainment
YesNo, but will bein the future
80% 17%
75% 20%
71% 24%
62% 26%
60% 30%
56% 25%
55% 34%
54% 38%
54% 39%
51% 28%
51% 44%
50% 32%
48% 36%
29% 51%
source: BosToN coNsuLTING GrouP/MIT sLoaN MaNaGeMeNT revIew
TD Bank, N.A. | ‘USGBC®’ and related logo is a trademark owned by the U.S. Green Building Council® and is used with permission.
Green is inour Nature.
TD Bank is committed to environmental responsibility.
TD Bank is the largest US-based bank to go carbon neutral and the first company to have aNorth American, closed-loop recycling system which diverts 1,500 metric tons of paper fromlandfills to the production of recycled paper. In addition, we purchase renewable energycredits for 100 percent of the electricity used by our operations from Maine to Florida.
TD Bank is committed to building environmentally-friendly buildings, and this year, we arebuilding the first “net-zero energy” bank location in the US in Ft. Lauderdale, Florida. Tolearn more about these and our other green initiatives, visit www.tdbank.com/green.
CM Y K Composite
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