There has been a tremendous shift in the way companies and people do business unfamiliar to many of us. We are in the midst of one of the largest global economic downturns of our time. Six U.S. states have unemployment rates since jobless records began in 1976. The mortgage crisis is still unresolved and the stock market has yet to instill confidence in investors. Clearly all of us in some way have been affected by the downturn. It is times like these that business needs to either evolve or be dissolved. One of the best teachers of survival is nature. Evolution is crucial for any species to adapt and survive the changing environmental circumstances of its surroundings. They either do this or become extinct. This is also true in business as we have seen formidable companies such as GM declare bankruptcy because of its inability to adapt to the changing consumer and global competitors.

So how do we make a shift in a consumer driven economy that is propelled by people buying stuff even if we are trying to promote better stuff? LOHAS products are still just products but with a more mindfulness. They still have a price tag and in many cases it is a premium price tag. Remember how the green craze took hold? People were touting their green built mansions and biodiesel hummers. There was big opportunity for companies to jump on the green bandwagon with green-products, eco-tours and green bling. All of this was just green lipstick on the pig of our larger consumer driven society. Our overspending that has put us in a trillion dollar credit card debt. The average U.S. household debt at the end of 2008 was $8,329.

Now bling is out. Flaunting wealth now is to be out of touch with current circumstances and seen as arrogant. Runway fashion is touting more mute colors and darker tones instead of shimmering silver and gold. There has been a shift in attitudes across the board from companies to individuals on spending. There is more of a focus on quality rather than quantity. Currently, people are focusing more on their spending habits and not overspending but are saving. The personal savings rate is at a 10 year high of over 4.5%. It does not sound like much but it is a huge step for many. The National Gardening Association states that home gardening is anticipated to increase 19%. They claim it is not necessarily because produce is expensive but rather that people like to hunker down and want some old fashioned comfort.

People are beginning to evaluate their relationship with money and their definitions of happiness. The New Economics Foundation conducted a global ranking of the ecological efficiency with which the world's nations deliver long and happy lives for the people who live there. This index is called the Happy Planet Index and concluded that although USA, China and India were all 'greener and happier' twenty years ago than today, Latin America tops the Index with Costa Rica the 'greenest and happiest' country.  Nine of the ten highest-scoring nations are Latin American. Costa Ricans report the highest life satisfaction in the world, have the second-highest average life expectancy of the New World (second only to Canada) and have an ecological footprint that means that the country only narrowly fails to achieve the goal of 'one-planet living': consuming its fair share of the Earth's natural resources. The UK comes 74th, USA 114th out of 143 nations surveyed. Money can’t buy you love.

We are set up on a system that programs us to think we need to buy things to make us happy. Like a drug addict we lose the happiness high and need to go out and buy more to maintain the happiness. How can we break the vicious cycle? And more importantly, how can we do this and come out of the recession?  Simplicity does not mean we go back to crude and regressive tactics of living in caves and huts. We are too smart for that. Simplicity however means that we reduce much of the distracting noise that can surround us and focus on elements that really matter to our hearts. If one reads classic economic texts they tell you the only way to grow is to consume. I think that we need to reconsider what we consume. There are many ways that our society can grow. We need to grow infrastructure, clean technology, education and healthcare. But do we need to grow the volume of our stuff?  We have so much stuff we have created an industry just to store it. According to an interview recently on Marketplace Radio the square footage of the self storage industry in the U.S. would now cover all of San Francisco and Manhattan combined.
We are in a critical time that this shift is possible and people are receptive to listening to new ideas on how to rework old paradigms. Not only can the economy recover it can be reinvented. We can have new policy implemented that can curb consumption and improve welfare. For example, Sweden currently bans advertising directed at children. This is good for overall society. Thoughtful trade agreements that consider job growth and green job opportunities. Decisions that include ecological thinking on the environment will allow an economy to grow intelligently and wisely. The U.S. is affluent enough to consider new ways of distributing that wealth and sharing that knowledge with others. This sharing of knowledge is what fosters relationships, community and overall happiness. The happiness you receive when you are with family and friends is unparalleled can never be bought.  This change needs to come from individual ad community mindfulness of what they can do to foster growth of a new economy and a new society.

I was cleaning out my computer docs and came across notes I forgot post. I think they are still relevant eventhought the attention by most has turned from energy to economy. Read on if you want clean energy options.

I attended a conference last spring in Colorado. One discussion was led by Ray Lane, Managing Partner of Kleiner Perkins Caufield & Byers. He talked about the clean tech market and the areas of opportunity. Now I have been to many clean tech presentations and usually when I come out of them I understand about half of what is being said. It takes me back to my 8th grade German classes when it seemed everyone else knew what was going on but me. (Ich bin un dummkopf.) But Ray’s presentation did not evoke those teenage images of discomfort. Here are some of the points I came away with that I think all should know:

Facts of global warming
80% of our energy is dependent on fossil fuels.
50% of our fossil fuel consumption is wasted through heat, processing or other areas of inefficiencies.
7 gigatons  (7 billion tons) of carbon are annually emitted by the U.S.  The atmosphere holds about 750 gigatons of carbon in the form of carbon dioxide. Humanity currently emits about 22 gigatons of carbon dioxide, about seven gigatons of which is carbon (excluding traditional biomass burning of one gigaton). That 22-gigaton annual output of carbon dioxide comes from burning about seven gigatons of the current mix of hydrocarbon.  
To stop global warming we will need to eliminate 350 gigatons from the atmosphere. Lane stressed the concept of technological "wedges" which, when fully deployed in 2050, will result in one gigaton per year of carbon emissions reductions.

Those are some big numbers. So what are our options?

Solar – Solar energy is energy directly from the sun. This energy drives the climate and weather and supports virtually all life on Earth. Heat and light from the sun, along with solar-based resources such as wind and wave power, hydroelectricity and biomass, account for most of the available flow of renewable energy. The sun emits 100,000 terrawatts (if you don’t know what that is – it is A LOT) constantly. Lane stated that it is estimated that in 2050 the world will use 15 terrawatts per year.

Challenges - storage and capacity issues as well as costs. If we are able to develop better ways to store large amounts of solar produced energy we can then get it closer to the cost of energy provided by coal.

Opportunities - We are a few product generations away from producing solar in an efficient and cheap way that can be affordable for power companies and consumers to utilize solar on a mass scale. A grid 92 x 92 miles could power the U.S. needs. More information on solar options can be found here. http://www.ases.org/

Wind – In 2005, wind machines in the United States generated a total of 17.8 billion kWh per year of electricity, enough to serve more than 1.6 million households. This is enough electricity to power a city the size of Chicago, but it is only a small fraction of the nation's total electricity production, about 0.4 percent. The amount of electricity generated from wind has been growing fast in recent years, tripling since 1998.

Challenges – transmission lines from wind farms to communities is expensive. Reliant on wind blowing and may be intermittent.

Opportunities – This is one of the fastest growing sector of alternative energy. The U.S. leads the world in wind installations. More information on wind energy can be found here.

Bio-fuels – Biofuels are produced from living organisms or from metabolic by-products (organic or food waste products). In order to be considered a biofuel the fuel must contain over 80 percent renewable materials. 

Challenges – competition of crops for fuel vs. food.

Opportunities –  1.4 trillion gallons currently produced. The U.S. consumes 6 trillion.
Cellulostic crops produce fuels competitive to those of last years high fuel prices. For more info on bio Fuels here is a good resource.

Geo Thermal – is energy generated by heat stored beneath the Earth's surface or the collection of absorbed heat in the atmosphere and oceans. It offers a number of advantages over traditional fossil fuel based sources. From an environmental standpoint, the energy harnessed is clean and safe for the surrounding environment.

Challenges – not everyone lives in Iceland and has hot pools outside their doorways. Environmental concerns with drilling and drilling expenses.

Opportunities – It was estimated that geo thermal power can provide 100 gigawatts of thermal power. Once accessed it can provide clean efficient energy and a competitive cost point.  For more info on geo thermal click here

Product Energy Efficiency – The next generation of vehicles need to be more fuel efficient. If car fuel efficiency increased to 60 mpg would reduce emissions by 25%.

Challenges – people are incentive based.

Opportunities – build in technologies to manage efficiencies. Sleep modes, etc. Learn what cars are the most and least fuel efficient here.

Other – The consumption habits of modern consumer lifestyles are causing a huge worldwide waste problem. 15 billion megawatts of energy is lost to waste. Some alternative energy companies are developing new ways to recycle waste by generating electricity from landfill waste and pollution.

Pricing Carbon – Experts believe this will occur between $20-$50 per metric ton. Others disagree.

All of these are very interesting options and demonstrate that there is no silver bullet to the Inconvenient Truth.

Look at today’s headlines and one would believe the sky is indeed falling. At no other time in modern history have things gone so awry in such a short time. Who would have expected to be faced with the challenges we are today especially after recent years of such progress in green initiatives. We were on record growth paths in 2008 in the green market. We saw expansion of clean tech initiatives develop due to the skyrocketing prices of fossil fuels. The organic and natural products market continued its annual double digit growth as did green building due to advancements in health awareness and design. Both had seen years of expansion with no limits. Yet now everyone, ranging from consumers to corporations, are tightening their belts and growth has slowed dramatically. After attending the latest Natural Food and Products Expo and talking to vendors, many companies are now anticipating a single digit growth and I am hearing many say that zero is the new anticipated growth rate for the current time. This certainly looks like the end of the eco movement as we know it but it does not mean it is the end of green itself.

Changes in Attitudes
Consumer studies show that eco-consciousness has not left the consumer mindset. According to a January 2009 consumer research report by the Natural Marketing Institute, 22% of US adults report buying fewer environmentally-friendly products as a result of the economy.  This is presumably because of price, not because they have stopped being interested in the product. The 2009 Conscious Consumer study by BBMG found that price and performance are still paramount. US consumers claim price (66%) and quality (64%) top their list of most important product attributes. But, health and environmental benefits have increased in importance since last year – including energy efficiency (47% in 2008, up 6%), locally grown or made nearby (32%, up 6%), all natural (31%, up 7%), made from recycled materials (29%, up 7%) and USDA organic (22%, up 5%). Despite the recessions, consumers are still very engaged in environmental protection. And, consumers recognize that many green activities such as energy and water conservation can protect their wallets and the planet. For example Nielsen’s Homescan service has recorded a sharp increase in consumer expenditures for canning supplies; up 15% year-on-year. This is highest, and driven by, LOHAS consumers, who increased purchase of canning supplies by 45%. Consumers may be growing their own vegetables and saving them for later, expressing local, organic, and practical desires. This reinforces the importance of knowing your consumer and targeting your marketing efforts to the highest value consumer. “The economic crisis has created a moment of reflection where consumers are redefining what truly matters and evaluating purchases based on both value and values,” said Raphael Bemporad, co-founder of BBMG. “This is a moment for leadership. By delivering on the multiple dimensions of value – price, performance and purpose – brands will be able to close the green trust gap, weather the economic storm and thrive long term.” Consumer attitudes have changed from eco-elitism to that of conservation and frugality and are looking at products and services and that will provide more bang for their buck.

Green to Save Green
Those in the spa world tend to be more affected by these downturns as disposable income becomes scarce and hard press eco initiatives to become more bottom-line oriented and based around cost savings. However, there are ways to adapt to the circumstances that will enhance your spa while maintaining your eco integrity. Here are some considerations that will help you save money and the planet simultaneously:

Energy Audit
This can be done yourself online or more extensively through a professional and will narrow down areas that you are most energy inefficient. Once you identify these areas you will be able to address them accordingly. These can be as simple as turning off your lights and computer at night or managing water temperatures in pools or laundry more accurately to save you money.

Bulk Purchases
Bulk purchases provide more quantity at a more affordable price. This also reduces packaging thus reducing waste and cut delivery costs for you. Using refillable bottles in treatment rooms can reduce clutter and maintain similar products throughout the spa.

Use Durable Cups and Plates
Rather than plastic or paper cups and napkins use washable cups and cloth napkins and other reusable items. You may have to roll up your sleeves for cleaning but it will save on purchases and save additional money. Or you may want to do away with unnecessary items that were once considered mandatory. For example a University in Philadelphia recently stopped using cafeteria trays and it has saved 3,000 gallons of water a month and thousands of dollars in annual water bills.

Creative Protocols
Design spa treatment protocols with conservation fixtures and client messaging that prevents water waste.  Subtracting only 1 minute per hot shower can save $75 on utility bills and 2,700 gallons of water per year for a family of three.

Creative Outreach
Develop outreach that goes beyond the spa itself and penetrate larger community initiatives. Strong House Spa started the Cosmetic Recycling Program that allows clients to bring in old products that contain chemicals and get a $5 credit toward organic products.  They recycle not only the containers but the products inside as all cleansing products go to their local recycling company to wash their trucks. This is a great example of promoting green efforts that support parallel businesses.

Times are certainly changing. For companies to maintain their market position while keeping to green beliefs they must make adjustments that are relevant to spa goers and current circumstances.