Green Business Conference

Cautiously Optimistic at Laguna Niguel

Tuesday, April 26, 2011 by Jennifer Schwab of SCGH

LAGUNA BEACH, CA – “FORTUNE Brainstorm Green” is probably the number one environmental business conference in the world. A host of top CEOs, heads of NGOs, and a variety of consultants, private equity investors, venture capitalists and journalists descend upon the spectacular Ritz-Carlton Laguna Niguel each April — this was my third annual event — to examine the state of green biz.

Fortune Brainstorm Green 2011

There was still optimism in the room on April 4-6, but with a strong dash of reality check. As in, many of these guys are not making the returns they expected by now, and a lot of them have tens if not hundreds of millions invested in “Greentech” companies. That said, they still seem confident that their investments will ultimately pan out, even without federal energy legislation.

Many of the firms represented are major, well-established corporations who seem to be making sincere and in many cases effective efforts to operate sustainably. It is impressive that more and more major companies are adding the title “Chief Sustainability Officer” to the C-Suite, as CSOs from dozens of firms were on the attendee roster.

Not surprisingly, a dominant underlying theme was that unless they’re good business, sustainable policies won’t pass muster with management or shareholders. “The key is cheaper. Sustainability is nice but it’s not the driver,” observed Bill Joy, a founder of Sun Microsystems, now a partner and leading greentech investor with the ubiquitous Silicon Valley venture capital firm, Kleiner Perkins. This sentiment was echoed throughout the conference by various speakers in sessions ranging from “The Future of Climate Policy,” with Environmental Defense Fund President Fred Krupp and James Rogers, CEO of Duke Energy; to “Sustainable Seafood, It’s Not A Fish Story” featuring Greenpeace USA Executive Director Phil Radford and Bumble Bee Foods CEO Chris Lischewski, among many more over two and a half days of speeches, round table discussions, networking and even entertainment.

None other than the Allman Brothers and Rolling Stones keyboardist Chuck Leavell performed with his band, although he was not just the musical interlude. Leavell has written no less than four significant books about the environment, his latest being Growing A Better America, which examines how we can balance population and business growth with the need to offer everybody clean air, water, plentiful food and adequate natural, open land.

A session of particular interest to me was “Urban Green,” which aired out the tremendous population explosion expected in major cities by 2050 and what we can do to keep some semblance of green in the face of crowding and gridlock. “We expect 80 percent of the world’s population to be city dwellers by 2050,” said legendary architect, urban planner and sustainability expert William McDonough. “Beijing will double in size within five years from 20 to 40 million. How do we provide sewage plants? How do we give everyone the basics of clean air, fresh water and adequate food?”

Laura Turner Seydel, Trustee of the Turner Foundation and yes, daughter of Ted, said Atlanta has become a model of the sustainable city. “It takes a concerted effort from government, business and non-profits. Atlanta received matching funds from Coca-Cola and the Turner Foundation, got Atlanta airport to recycle, now the whole city recycles.” This was echoed by Cindy Ortega, Senior Vice President of Energy and Environmental Services for MGM Resorts, developer of Las Vegas’ City Center, the country’s largest LEED-certified development. “Green is being embraced by corporate America, because waste of natural resources is not good for the bottom line.” The overall thrust was that with skyrocketing urban population growth, only a true partnership of city government, NGOs and local corporations will be able to maintain a sustainable way of life.

Security was tight at this green conference, and rightly so, as luminaries such as Richard Branson, former Siebel Systems founder/CEO Tom Siebel (who is now doing a green startup, C3), Wal-Mart EVP Leslie Dach and NRDC President Frances Beinecke, among many others, appeared as speakers and panelists. Even Theodore Roosevelt IV (yes he does look like his great great grandfather) was on hand, he is Chairman of Barclays Capital Cleantech Initiative.

The conference closed with motivational words from pro surfer, fitness expert and all-around-athlete Laird Hamilton, who is otherwise known as the “Force of Nature,” also the title of his book, which chronicles the way to a truly healthy lifestyle (no you won’t look like Laird even if you follow the diet and exercise plan). When asked how the average person can follow his program and achieve true fitness, Hamilton reminded us that the old tenet, “no pain, no gain” is really the answer. “My food often tastes like crap, the workouts are hard, they hurt. But you have to push yourself to the next level if you want to improve your results. Potato chips in, potato chips out … you need to eat jet fuel to do these workouts.”

Indeed, our path to a truly sustainable future will also follow his edict: no pain, no gain. It won’t be easy, it won’t be cheap, and it will take sacrifice on everyone’s part. The conference left me with a feeling that we do have the talent, capital, entrepreneurship, science and dedication necessary to make our society — and the developing world — a sustainable environment with adequate natural resources and energy to meet the needs of all citizens.

Here’s hoping I’m right…


Helping Consumers Track Green Business initiatives at Point-of-Sale

Monday, April 11, 2011 by Ted Ning

QRC codeHow do consumers know if a business is really green? This age-old question has been nswered by the Green Business Bureau – one of the nation’s fastest growing green certification organizations for SMBs—through the simple use of technology.

In an industry first, GBB has implemented a new, cutting-edge program utilizing Quick Response Code (QRC) technology for its green certified business members. As many mobile phone users have already discovered, the use of QRCs can be fun and educational. Soon, all businesses that carry a green certification through GBB will offer QRCs at the point-of-sale to show consumers just what steps have been taken towards sustainability.

These second generation barcodes, when scanned by a mobile phone, instantly take consumers to a dedicated mobile page. In this case, when the QRC of a GBB member is scanned by a customer, the customer will be introduced to the entire list of sustainability initiatives undertaken by the business, providing increased transparency as to why that business can claim some level of eco-friendliness.

 “Studies show that 40 percent of shoppers want to see more green information at the store level, and 28 percent want to see it displayed prominently on shelves or directly on the menu,” says Marcos Cordero, CEO and co-founder of the GBB.  “The new FTC Green Guides go right along with that by requiring businesses to back up their green claims at the point-of-sale.”

The FTC Green Guide updates, which will go into effect this year, state that it is no longer enough to have a website which outlines green initiatives, but that businesses must now offer information on their green practices in the store and at the register.

 “QRC technology is a perfect fit for the GBB’s existing online platform,” says Cordero.  “It conveys the transparency of our interactive membership website seal and takes it mobile, allowing customers immediate, on-the-spot insight into our members’ green practices.”

The immediacy and accessibility of the QRC technology complements the GBB platform’s real-time updating of green initiatives undertaken by a business. Applications for QRC at the point of sale are endless. QRC can be applied to nearly every conceivable media, including cars and vans, invoices, business cards, entry doors, signage, stickers, menus, hangtags, brochures, hardhats and more.

“The GBB’s platform is built on transparency,” says Cordero. “QRC technology is the next, logical evolution of that goal.”

For more information about the Green Business Bureau QRC program, please visit www.gbb.org/qrc

EcoBonus and Organic Valley Team Up to Offer Eco-Conscious Rewards

Monday, March 21, 2011 by Tiger Beaudoin
EcoBonus Collect & Earn StampsIn a new green business development, EcoBonus® today announced that Organic Valley, America's largest cooperative of organic farmers and one of the nation's leading organic brands, has joined the EcoBonus Collect & Earn™ customer rewards program as a Founding Sponsor.

"We couldn't ask for a better Sponsor to help introduce the EcoBonus program," said Tiger Beaudoin, Founder of EcoBonus, a new division of BI®, The Business Improvement Company. 

"Organic Valley will become the Category Captain in fluid milk and EcoBonus will feature their preferred charities in the program’s reward options."

"We're excited to help launch this industry initiative to reward consumers for making sustainable choices," said Tripp Hughes, Director of Category Management at Organic Valley. "The EcoBonus Collect & Earn program will raise awareness of eco-conscious, natural and socially responsible products - and will help us thank and recognize our loyal customers with reward points that can be redeemed for coupons, gifts, and green health spa vacations or points donated to charities."

EcoBonus' Collect & Earn rewards program will also allow Organic Valley to award consumers points for activities beyond purchasing products, such as signing up for their newsletter, answering survey questions, participating in contests, and promotions such as "checking in" at retailers via the EcoBonus iPhone application.

EcoBonus: Penny wise. Planet brilliant.™
 

EcoBonus is the first industry-wide initiative to reward mainstream consumers for choosing natural, organic, fair-trade and sustainable products. It provides a searchable database of 75,000 qualifying products, offers coupons and samples tailored to individual preferences, and rewards sustainable purchases with points. Participation is open to individuals, businesses and groups - and pooling of points by schools and faith-based organizations toward bigger rewards such as organic vending machines or solar panels is encouraged.

The EcoBonus program will launch nationally by invitation on Earth Day 2011. Interested manufacturers should call 1-612-276-2725 or contact EcoBonus.

Be among the first to sample the EcoBonus Collect & Earn Rewards program by following us on Twitter @ecobonus or friending us on Facebook.

BI: The Business Improvement Company

EcoBonus is an innovative coalition loyalty program from BI, The Business Improvement Company, and reflects BI's commitment to building solutions that solve today's environmental challenges. BI produces measurable results for its customers by moving the people who drive the business: BI moves sales people to sell more, customers to buy more, and employees to create a competitive advantage.

BI, founded in 1950, is a privately held company with 900 associates located in 28 offices in the US, Canada, UK, Australia, and Asia Pacific. Learn more online at BI Worldwide.

For more information about Organic Valley, please call 1-888-444-MILK or visit Organic Valley online, and the cooperative's farmer website. Organic Valley is also on Twitter @OrganicValley and Facebook.

Credentialing and Alternative Medicine

Wednesday, February 16, 2011 by E. Feigenbaum, Ph.D.

For companies seeking green business solutions, investing in health care that connects the dots between personal and environmental health embodies ecofriendly consciousness.  To overlook one of the major investments companies make in employees by relying on "default" health care options, a major opportunity to promote healthy living is missed. Like processed foods, health care options are usually pre-packaged and offered "as-is" with conventional medicine industries taking the lead in credentialing and other mainstream practices.balance
     

     Credentialing is an administrative process that involves reviewing qualifications, training, and practice requirements, with the significant goals of promoting patient safety and establishing consistent standards within a group of providers.  In conventional medicine, the complexity of the credentialing practice is generally offset by the consistent scope of practice and licensure standards in the dominant health care system. Credentialing relies on those industry practice standards to ensure that users of a specific network are seeking care from appropriately qualified providers.    


To some, credentialing in the CAM sector may seem cumbersome or unrealistic, since many CAM providers maintain medical practices outside of standard medical institutions.  CAM PPO of America, Inc., however, offers a unique solution with a proprietary credentialing process that exclusively focuses on integrative and alternative medicine.  Because state licensure varies so widely for CAM fields, the process sets CAM PPO apart from simple lists and online groups that may use the right catch phrases but lack medical expertise and qualifications. 

     Seeking a CAM provider can be confusing for conscious consumers, and few patients may have the time or resources to investigate practitioner qualifications and backgrounds.  Yet, it's an essential ingredient to seeking appropriate care interventions.  CAM PPO credentialing impacts the caliber of every network practitioner, and communicates our commitment to quality to members, prospective providers, and employers.  Integrative alternative medicine providers often offer comprehensive approaches that encourage healthy lifestyle management and naturally based therapies.

     Few would argue with the claim that choosing healthy and organic living is an important step toward empowered personal health that promotes an ecofriendly awareness.  Similarly, for companies seeking a socially responsible investment in health, choosing a credentialed network of integrative medicine providers offers an effective option for improving employee health. 

CAM PPO

Snowboarder with a Conscience to Speak at the 2011 LOHAS Forum

Thursday, January 13, 2011 by Ted Ning


The 2011 LOHAS Forum is very excited to have the 2010 women’s champion and 4 X-Games halfpipe gold medalist Gretchen Bleiler as a speaker. Why is she a speaker at a business conference like LOHAS? Because she is not only a kick ass boarder but is also a role model for girls and young women wanting to aspire to be successful in athletcis while being conscious of the environment. 

After winning a silver medal in the 2006 Winter Olympics for women’s snowboarding halfpipe, Gretchen decided to use her position as a chance to speak about an issue that is close to her heart - climate change. Reusable ChallengeGretchen has just kicked off of the “21 Day Reusable Challenge,” an eco-minded call to action asking individuals around the globe to give up single serving disposable plastic water bottles, plastic grocery bags and Styrofoam takeaway containers for 21 days. In addition to wanting to get the public involved, Gretchen has also asked other winter X Games athletes to take the challenge with her going into Winter X Games 15
 
With the idea that it takes 21 days to build a habit, the challenge encourages people to consciously “create a habit” to benefit our habitat. As a speaker at a recent college environmental conference, Gretchen wanted to call students to action. Out of this desire, the 21 Day Reusable Challenge was born.
 
Gretchen says, “Every single one of us has a unique opportunity to create awareness and influence change, so the 21 Day Reusable Challenge is a chance for people to stop using harmful disposable products, and inspire their friends and families to do the same by simply posting videos and photos through their social network.” From there, Gretchen’s Facebook followers vote on the most inspirational stories and the top five individuals with the most liked stories will win products from Gretchen’s sponsors Oakley, K2, Mission Skin Care, ALEX Bottle, and Holga Cameras. 
 
She is also working with sponsors Oakley and K2 Snowboarding to create a signature eco friendly clothing line and products. Gretchen has also started her own sustainable stainless steel reusable water bottle company, ALEX Bottle, with husband and former Oakley Marketing Manager, Chris Hotell.

In collaborating with other industry snowboarders and X Games athletes, Gretchen hopes to spread the message and encourage people to participate in the challenge, incorporating reusable living in their everyday lives while also raising awareness to the amount of disposable waste we are still exposed to on a daily basis. “Our winters depend on how we manage our consumer habits, and since most of these athletes already practice sustainability, this is a chance for them to show it and encourage their fans to do the same” says Gretchen.

It is because of her eco-awareness, creative initiatives with outdoor lifestyle brands and her unique position as a role model for women that we feel she will have a lot of insight into connecting with women. Women comprise a majority of the LOHAS market. Gretchen will be speaking on a panel discussing the growing Sheconomy and ways best to communicate to the female consumers of LOHAS products and services. We look forward to hearing her unique perspective.
 

A Reminder that it was 'Yes We Can' not 'Yes He Can'.

Monday, December 13, 2010 by Ted Ning
Obama hopeEarlier this fall I was fortunate enough to hear Van Jones speak at the SVN fall conference. Van Jones was the Green Jobs Czar that Obama appointed only to be ousted by people who felt he was too controversial for the job. Prior to being appointed he founded Green For All that promotes green jobs in inner city communities solving both unemployment and the development of a green industry. He also wrote the Green Collar Economy that outlines his vision on how this could be done. I had not heard anything from him since his resignation from the White House appointed position and was curious if he had any remorse and what he thought of the current political and economic climate. What he said I found quite profound. He started out by talking about how disasters like the BP oil spill demonstrated what can happen from a perceived insignificant cheat from someone in the BP office that created catastrophic results and untold environmental and brand damage.

Here are highlights of the talk:



However, if one looks at the law of the universe this also means that perceived insignificant positive things can also have astronomical effects based off of the perceived insignificance of hope. If it works successfully negatively it can also work in positive ways. He remarked that those in the green movement tend to look at the coal and oil business as the big evil empire. But we cannot categorize them as such.  We also need to honor the 80,000 coal miners as heroes who risk their lives and their health for our benefit. They are the reason why we can turn on our lights and power our homes. Yet we have also created an equal amount of jobs positions (80,000) in the wind industry and 46,000 in the solar industry. There has also been 36,000 renewable energy enterprises created nationally. These are examples that things are working successfully for the green economy. But what happened to the movement that Obama cultivated during his presidential campaign? What happened to that momentum? Van explained that during the presidential election the Obama campaign was a well oiled machine that had 80 on staff.  Once Obama was sworn in as President the congress took over responsibilities on outreach and direction. The staff that kept in touch with supporters online and was successful in mobilizing volunteers and outreach has been reduced to 8 people. The 15 million person email list was given to the National Democratic Party but they and have been undisciplined with the use of it. The movement that Obama had created suddenly had no ability to communicate because of the leadership loss. As president, Obama needs to make tough decisions of mobilizing people and cut deals with republicans. Many see this these deals as a loss in integrity or broken promises. Those 15 million people had hope and now feel pained from the loss of their hope. They thought they had a home and had won with the election. Van reminded the audience that Obama’s message was “Yes We Can” not “Yes He Can”. Where did WE go?  Van feels that we can still fix this and can build on the community of love and support. We have voices but need to build a new platform and community to share common goals.

Van Jones talked about how the tea party built a platform successfully. They united people on values. The Democratic party tends to focus its energies on policies and individuals. These are very difficult to unite a movement. We need to go back to talking about heart based values and our intention to inspire children of all species. The rise tea party noise was not the rise of hatred but more the collapse of hope. They did not get larger they go louder. We didn’t get smaller we got silent.  2011 will be a gut check to see how we respond as a movement. Van stressed we need a platform to create stories that matter and need a partner in government. If we don’t ask how will we get it. No industry movement has made it without a government partner. It is not about right vs. left but about past vs. future and welfare vs. work and the redistribution of wealth vs. methods of new wealth. If done right these will sell themselves both on the congressional floor and in the world of business. I agree. Do you?


LOHAS Translates to Happy Life in Chinese

Monday, December 13, 2010 by Ted Ning
lohas logoI recently attended the 3rd Annual LOHAS China Conference in Shanghai and it was very surprising for me. For those of you who don’t know LOHAS is much more popular internationally than it is in the United States. The concept of LOHAS was introduced to Japan in 2005 and it has taken off since. Today, over 60% of the Japanese adult population is familiar with the term LOHAS and use the term like we do when we identify green. The way that pop culture works in Asia is that usually trends start in Japan and spread to other areas of the region. You can see this in music, fashion, and even TV commercials. Since LOHAS was picked up strongly in Japan it was quickly adopted by China, Korea and other countries in S.E. Asia. In Japan the sustainable aspect of LOHAS is strongly embraced however in many other Asian countries, health is the leading aspect. Health is a huge element of the Asian culture as it is in every culture. But what LOHAS provides is traditional Asian values of respect for nature and society. LOHAS translates in Chinese as “happy life” or “life of harmony” which many Asian marketers have grabbed onto and used as sales initiatives for things not really related to authentic to the LOHAS orientation. I have walked down the streets of many Asian countries and have seen LOHAS sales for clothing, furniture and hotel chains all promoting ways to live a “happy life” which pretty much means everything. Who doesn’t want to live a happy life?

When I was initially invited to speak at the Chinese LOHAS Forum I was skeptical. I had been to my share of Chinese and Japanese business events and have found them typically to be a bit heavy on formalities and not very creative in content. I was pleasantly surprised to find the Chinese LOHAS Forum to be very different than I anticipated. It is run by professor Shen Li who teaches traditional Chinese business at Beijing University using Daoist principles. His outlook on LOHAS was much different than a typical business conference. It embodies the traditional elements of Daoism and the interconnectedness people have with the universe and each other. The speakers that presented were specialist in bio dynamic farming, chi qong, futurists, and activists that are all interested in LOHAS elements that are in line with original LOHAS values. And they brought people from all over China interested in these principles as well. It was very refreshing to see there is a following for LOHAS values in a way that LOHAS is oriented here in the U.S. I met some interesting business contacts such as the LOHAS association of Maccau, organic CSA groups and wellness specialists. I also connected with LOHAS China magazine which is produced by the largest privately held media company in China. I hope they can educate their readership on true LOHAS values that are done the right way and not capitalize on the “happy life” sales campaigns. I spoke at the conference on the origins of LOHAS and ways to determine LOHAS-washing or green washing. I hope people take my advice there.

The enormity of the Chinese market is astounding. Only when you actually go and experience it in a city like Shanghai can you understand the power of its pulse and the momentum of China’s emerging middle class. The huge population has its challenges as it grows and LOHAS values are needed to foster intelligent growth. I certainly am excited about the opportunity LOHAS has in China and hope it can expand.


Soaking Up the Sun

Thursday, October 21, 2010 by Jennifer Schwab of SCGH

LOS ANGELES -- Shades of '99-'00, it feels like the Tech Boom Act II. Otherwise known as the Solar Power International show, held Oct. 12-14 at the L.A. Convention Center.

A feeling of seemingly limitless optimism filled the hallways and auditorium, as 1000s of senior executives from top renewable energy and solar companies participated in SPI. For those who think the solar business is a fringe industry, think again. Many of the world's top venture capitalists have plowed hundreds of millions if not billions into solar power, much less the governments of China and Germany to name a few. If any naysayers don't believe in the power of green jobs and the positive impact the solar industry can have on the U.S. economy, I sincerely wish they could have been in attendance to see and feel the continued momentum of the solar industry.

The lack of a federal energy policy has hurt the U.S. solar business to be sure, but federal, state and local subsidies have been what's needed to overcome this problem in the interim. Did you know that about 80 percent of the world's solar panel production goes to supply Europe, as the Continent is way ahead of us in creating consumer acceptance for home solar and subsidies to match. Germany has the world's best incentives, which has fueled the growth of the European solar market. This was reflected in attendance at the SPI show, as a hefty percentage of the exhibitors were European.

2010-10-20-CPVpanel.jpg

After exploring booth after booth of traditional, clunky solar panels, one thing caught my eye -- the prominence of CPV development. CPV stands for Concentrated Photovoltaics, and it represents a new technology that generates significantly more power and efficiency per square inch of solar panel. The benefits of this are obvious: fewer and smaller panels can make and store even more power than their conventional photovoltaic panel counterparts. According to SolFocus VP of Sales and Marketing Nancy Hartsoch, CPV is a nascent technology that will work best in desert-like conditions, as in very hot, sunny, dry climates like Nevada, Arizona, or inland Southern California. Product has been deployed commercially as we speak. I was particularly impressed with examples being developed by SolFocus of Mountain View, CA. SolFocus has raised over $200 million, and is being hotly pursued by Aminox, another CPV startup with backing from Kleiner Perkins. Another promising CPV cell developer is EPIR of Naperville, IL, outside of Chicago. (I should mention in the spirit of journalistic integrity that I have done some consulting for EPIR.) By 2011 we will hopefully see 150 MW of CPV deployed and by 2012, up to 515 MW. If these figures are correct, CPV could be a huge step forward in finding a tipping point for both the consumer and utility markets. Continued improvements in technology and price cuts are essential for solar to go en masse.

Speaking of which, one of the most interesting characters I met at SPI was Lyndon Rive, the South African-born CEO of consumer solar provider SolarCity. Foster City, CA-based Solar City is essentially a full-service provider of home solar panels and installation, providing the key additional services of leasing packages and assistance filing all the necessary forms to obtain federal, state and local incentives and rebates. SolarCity uses panels made by leading solar companies such as Yingli Green Energy, First Solar, Kyocera and Sharp, among others. Currently operating only in California, Oregon, Colorado, Arizona and Texas, Solar City has aggressive expansion plans and employment is scheduled to grow from around 1,000 to over 2,000 by the end of 2011. Like many green businesses, profitablility is not happening quite yet because of the sizable investment required for a startup of this magnitude. However, Rive says that SolarCity is cash flow positive, they just have to recognize revenue according to GAAP accounting procedures so this occurs over a 20 year period on each lease. As the company expands into other states, profitability should dramatically increase.

2010-10-20-SolarCity_Residence_Phoenix2.jpg

I hope you can feel the excitement that continues to build around home (and commercial) solar electricity that permeated the L.A. Convention Center's Solar Power International. Next time, I'll tell you more about this compelling conference and the companies that participated. Amidst the uncertainty of our economy and rampant unemployment, this is a bright spot -- one that you should be thinking about when you cast your votes for various candidates and state propositions on November 2nd.

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


Is Green Enough?

Sunday, August 29, 2010 by Ted Ning
by Mal Warwick

The words “sustainable” and “sustainability” have come to be equated with the ecological perspective summed up by the label “green.” But is that equation fair? If a company—or, for that matter, a society, or the planet as a whole—is run on the basis of green principles, is it sustainable?

I believe the answer is a resounding No. The planetary burden of nearly six billion poor people is sufficient to prove the point, without even exploring the economic implications of the profound gulf between Earth’s rich and poor. But let’s set aside these larger questions until there is an opportunity for us to discuss them at length. For now, let’s just focus on the business case for running our companies not just as environmentally sound enterprises but as what I term “values-driven businesses” grounded in the assumption that collaboration is the path to sustainability.

Values-driven business is based on five fundamental premises:

  • Employees work more productively and pay more attention to a company’s profitability when they’re working for something they believe in, are treated with respect, well-paid, and receive a share of the profits. They also tend to feel better if the owner or top managers aren’t making out like bandits by comparison.
     
  • Customers are more loyal and willing to forgive errors when a company’s dedication to quality products and services is obvious and when they deal with highly motivated employees—especially when employees are allowed to take the initiative to apologize and make things right.
     
  • Consumers often show a strong preference to do business with companies that demonstrate a commitment to their community—and are sometimes disinclined to patronize those who don’t. Values alignment between a company and its customers builds loyalty. Customers are more forgiving of mistakes and less apt to buy from a competitor when its goods are on sale.
     
  • Your business will be better prepared for the future and more likely to survive its inevitable disruptions if you build stronger relationships today with your employees, your customers, your suppliers, and your community. And the planet we share will be more likely to survive the ravages of the human race if you do everything in your power to lighten your footprint on the environment. In other words, to use the contemporary jargon, your business will be more sustainable.
     
  • You—as the company’s owner or manager—will live a less stressful and more fulfilling life if you look on your employees, customers, suppliers, and the community as partners rather than adversaries.

In a values-driven enterprise, an ecological perspective is central. But the same logic that leads us to understand the interdependence of all living things helps us grasp the inescapable truth that a collaborative approach to our customers, our employees, our community, and our suppliers is equally important.

Running a green business is a great start—but it’s only a start. To gain purchase on that elusive goal of sustainability, take a step backwards and look over The Big Picture. If you haven’t already done so, check out the “living wage” (http://www.acorn.org/), employee ownership (http://nceo.org/), community engagement, appreciative inquiry, and other tools you can put to work today to make your business more rewarding, more profitable, and more sustainable. 

Mal Warwick’s latest book is Values-Driven Business: How to Change the World, Make Money, and Have Fun, co-authored with Ben Cohen, the first volume in the Social Venture Network Series. (See www.svnbooks.com for more information.)

Recommended LOHAS Oriented Conferences To Consider Attending

Sunday, August 29, 2010 by Ted Ning


 

In my time at LOHAS I have been to a lot of green events. A few years ago there were only a handful of events to choose from and it was a bit of a close circle. However now it seems that green and sustainably oriented events are popping up everywhere. How does one know which are solid and which are just flashes in the pan? I am putting together my travel schedule and like you have to be selective as to where to put my energy and travel budget.


Here is a list of events I have either been to or have heard about that make my list and are organized by month:

September

The International Ecotourism Conference (Sept 8-10 Portland, OR)
The event for the ecoutourism industry that brings a global attendee base.  Eventhough the ecotourism industry is a small section of the overall tourism industry, it is an excellent place to learn what is happening in the space and who’s who. I have not been to this event and have always wanted to and this year is my chance. I look forward to it. Yours truly will be speaking on the future of sustainability trends and the ROI of green travel. Should be fun!

Opportunity Green  (Sept 22-24th Los Angeles Center Studios, CA) – This is their 3rd event and is very green business and design oriented. The speakers are primarily big business with some cutting edge entrepreneurs in the mix. Design conversations range from buildings to automobiles to fashion and the blend of people here is good. The event is really the only national oriented event I know of in LA that is green oriented and it has the LA look and feel. I feel you need to come to this event with a bit of a strategic game plan and set up some meetings to make the most of this event. You can also hear some interesting speakers and chat them up at the cocktail receptions and meals which are quite nice.

West Coast Green (Sept 30-Oct 2nd, San Francisco, CA)
The green building conference for the west coast featuring speakers such as Bill McDonough and an exhibit area of 300. I have not been to the event but I hear great things and if you are in the green building and design market you should go to this or Greenbuild (see below). 

October

Green Spa Network (Oct 3-7, Avon CO)
The Green Spa Network has come from those in the spa industry that are seeking to reclaim the world of wellness from the clutches of pampering and luxury. GSN is a membership organization and looking to get those in the spa world to recognize sustainable product creation and spa properties. This will be their second year convening and are still in infancy but are moving fast and furious to make headway into the spa world. Those in the spa world who truly want to engage green practices should definitely attend this event. 

SoCap (Oct 4-6th, San Francisco, CA)
Honestly, I have not been to SoCap yet and am looking forward to my inauguration to the event this year. I have only heard good things about this event. It appears to have a Silicon Valley type vibe from those that attend from its free form programming and type of people who are there. A great event for start ups and investors looking to match values in socially responsible businesses.

Expo East (Oct 13-16th Boston, MA) 
These are great to get a pulse of the natural products industry. Expo East in the fall is on the east coast (hence the name) and is much smaller than the mega sized Expo West held in the spring (and in Anaheim)  I like Expo East because it is smaller and you can walk the floor without the onslaught of people that Expo West has. You can have conversations in depth at Expo East that are a bit more challenging at West.  Typically the executive teams are at the shows the first few days so if you want to meet top brass you need to schedule meetings or come by booths at the beginning of the shows.  There is also no need to buy meals as only a quick stroll through the exhibit spaces can fill a stomach. Be careful about trying everything you see as sometimes food mixing may not agree with you. I found that out the hard way. Urp!

Bioneers (Oct 14-18 San Rafael, CA)
Bioneers is the gathering of what seems like all the activists, free spirits and dark greenies of California who want to learn about ecology, social justice and indigenous wisdom. It is a public/consumer event so expect to encounter some interesting characters. The general speakers are quite remarkable as they come from all over the globe and the audience can get pretty fired up on issues. They do talk about some of the more difficult issues society faces but I really like this event because the speakers challenge us to question things and help understand some of the issues people don't see in conventional media. If you can't get to the main event there are a few locations that have smaller gatherings and live video feeds into the larger event but they do not capture the energy and the other activities that happen there. As you walk through the crowded parking lot try counting how many hybrids you see or the bumper sticker slogans that have some activist slogan. I don't know which is the larger of the two.

Green Biz Innovation Forum (Oct 19-20th San Francisco, CA)
I have not been to this event but anything that Joel Makeower and his Greener World Media team does I back. They always seem to have the ability to get top speakers and relevant content that makes the event special. I have heard great things from those that have attended and really like the format.  Joel always seems to be on the cutting edge of what’s what in the green business world.

Social Venture Network (Oct 21-24th, Long Branch, NJ)
SVN is a membership organization and has an open door conference in the fall and a members only event in the spring. The members are successful social entrepreneurs such as Ben Cohen of Ben & Jerry’s, Jeffrey Hollander of Seventh Generation and Priya Haji of World of Good. I really like this event as it brings a lot of good and experienced minds together. The matra of this event is bonding and there are men’s and women’s circle meetings to promote this. Expect a lot of hugs and soul sharing which is a good thing to do for us all. Because of the intimacy some of the members feel among peers and get heated in conversations they feel important to them that I see more often here than other events. It is refreshing  especially after seeing many other events that stick to the talking heads format.  The event provides plenty of times to have conversations with members and provide opportunities for mentorship for start ups. Some of these conversations have resulted in future board members and even investment for startups. 

Greenfestivals (Oct 23-24th DC / Nov 6-7 San Francisco, CA)
The Green America Green Festivals as some of the most well attended green consumer events I have attended. Each has a very local focus for the vendors but make sure you go to the speaker sessions because they have outstanding speakers from all over to come and grace the audience with their perspectives. Big hitters such as Deepak Chopra, Dr. Weil, Paul Stamets and a few other TED talk types present and you cant beat the ticket price for a front row seat. I have not been to the DC Greenfest and hear that each of the events reflect the vibe and culture of each city. The SF Greenfest rocks and is packed with all kinds of great booths and events. If you go get ready to be emersed in the dark green side of San Fran - free hugs, poetry, dreadlock and all. Green America is not doing their Green Business Conference this year that typically is right before their San Francisco Greenfest. Instead they have developed a green business pavilion within the San Fran Greenfest that will have business oriented talks. If you have not been to a Greenfestival I highly recommend them as they embody a variety of aspects that LOHAS does – organics, alternative therapies, personal development and social justice elements.

Net Impact (Oct 28-30th, Ann Arbor, MI)
Another event I have heard great things about but have never attended. It is primarily focused on CSR and brings together students and large corporations to openly discuss issues. It is also a great recruiting ground for companies seeking new green talent from recent graduates. The event brings together over 2500 people and has workshops and discussion groups to get down and dirty on complex issues. Their keynote speakers are solid with Majora Carter, Jeffery Hollander and Bill McDonough.

SRI In the Rockies (Nov 18-21 San Antonio, TX)
Anyone who is a financial planner or interested in socially responsible investment nitty gritty must put this event on their calendar. This is a blend of financial jargon and social justice and clean tech orientation. About 800 people attend the event from all over the world and is typically in a mountain setting. Being in San Antonio this year is a stretch.  it is a packed schedule for the most part but they do make time for long networking hikes and excursions . I have seen speakers ranging from Jane Goodall and David Bornstein to Calvert and Domini fund managers at the event. It is a great place to understand how to unravel the complexities of financial issues and know what mutual funds are actually doing as they relate to socially responsible investing. They throw a great evening party and many are not afraid to show off their dance moves.
 
Greenbuild (Nov 17-19th Chicago, IL)
The mother of green building products and originated from the USGBC this is the event for anyone interested or involved in the green building sector. The exhibit area is about 1000 booths and attracts about 25-30,000 attendees from all over the world. The green building industry has really picked up and does not look likely to slow down. I like this event a lot because of the creative energy efficiency exhibits and speakers.

Investors’ Circle (Nov 10-12th Washington, DC)
A membership organization of over 150 angel investors who are looking for solid socially responsible companies to invest in as a group. They have funnelled over $134M into 200 companies addressing social and environmental issues. A great place for LOHAS oriented start ups to present who are seeking seed capital. There is an application process with an extensive screening but nothing too overloading.  The event focuses on vetting good seed capital candidates for an investor audience and mixes in some good quality speakers sucha as Acumen and Ashoka. If you are an investor or seeking funding from a good values base source check out Investor’s Circle.

ISPA Conference & Expo  (Nov 15-18, Washington, DC)
The spa association where everyone in the spa world congregates - green and conventional. If you attend you can see there is a strong emphasis from many about sustainability than ever before but there are still those brands that have their share of green washing along those who just don’t care. Regardless, anyone who is interested in the spa world and creating spa products should attend to understand the trends in the industry. LOHAS has a strong foothold in the wellness and beauty industry and it is a good place to learn macro trends and spa operation techniques. This is probably the most well groomed attendee base I have seen which I have no trouble surrounding myself with.

Spring/Summer

LOHAS Regional Events (April TBD, NYC, LA, Atlanta, Minneapolis)
Taking the LOHAS conference on a bit of a roadshow and working to get some momentum build in these areas. Its tough to go to all these events so we have decided to try to make it easier by providing single day events. Stay tuned for more details!

BALLE (June 15-17th Bellingham, WA)
Business Alliance for Local Living Economies celebrates local businesses and local orientation. There are a lot of local loyalists at the event and mostly smaller and mid size companies, non profits and academia. But the conversations are lively and some really interesting networking. A lot of cross over with speakers from the Greenfests and SVN groups. I like the workshops and the networking here. The production of the event is low key as the focus is on the content and type of people who attend which is really nice.

LOHAS (June 22-24th Boulder, CO)
Of course I have to put this one on the calendar as I think EVERYONE should consider this one. Well...maybe not everyone. We have about 5-600 people attend who are business executives, thought leaders, academia and enterpreneurs. As much as many equate LOHAS with the converted dark greens of the world the event is set up to not be an 'Us' and 'Them' atmosphere. Rather we welcome all who are interested in understanding LOHAS and how it applies the them personally and professionally. We set up plenty of networking opportunities and workshops to provide tangible takeaways. To see some of the videos from previous LOHAS sessions visit our LOHAS YouTube page. We work hard to get a solid program together with a great attendee base. If you have any recommendations or tweaks I'd love to hear from you.

These are only a few of the many that are out there and more to come. I truly feel that any conference you attend is what you make of it and how you prepare ahead of time setting up meetings, scheduling and follow up. With that said, good luck with your planning and hope to see you at one of these events. If you have other events you feel should be added I would love to hear about them. Please share!


 

Businesses Coming Together To Help Change The World

Tuesday, June 8, 2010 by Ted Ning
Written eloguently by Ed and Deb Shapiro


In a few weeks time a remarkable event will happen in Boulder, Colorado. Over 500 large and small business leaders will come together to learn how each is contributing to a meaningful and safer world, while still managing to make a profit and even to live a relatively stress-free life.

This gathering is the annual LOHAS Forum, aka Lifestyles of Health and Sustainability, to be held June 23-25.

LOHAS offers a rare opportunity for both business owners and consumers to meet with the decision makers from many large companies, including Coca Cola, Petco, eBay, and the CEO of Ecover, and for those larger businesses, who may not know how to navigate the rapidly changing market, to learn from smaller ones who are making it work. It is also a place to find out about new trends and approaches to engage conscious consumers, who pay close attention to more sustainable and ethical ways of doing things.

With the current economic downturn affecting us all, many business people are asking themselves: “What am I doing and can I do it better, for both my business and for the planet as a whole? Can I, even if only in a small way, make a difference?” Last year we were all holding onto our financial dashboard with white knuckles, hoping we would be able to pull through. But now, LOHAS organizer Ted Ning tells, “People are asking, ‘Why was I in the rat race to begin with? I want to make decisions and spend my money with a greater awareness of the outcome but I don’t know how to do this or where to go.’ LOHAS provides an enormous amount of information to assist those who are making changes so they can understand how to maintain their business and market position.”
 

Ning believes there is a shift toward more meaningful-based initiatives, which shows itself in a combination of good business and inspired values. “People want their products to have more meaning, as seen in the Tide commercials where trucks laden with washing machines roll into Katrina camps to wash clothes, with a percent of what you buy going to this initiative. Conspicuous consumption, such as designer handbags or massive SUV’s, is on the decline, while more conscious and value-oriented purchases are increasing: I don’t want to just buy detergent but I want it to have other purposes too, like helping the needy. People are taking more care of where their money is going.”

At LOHAS, business owners can see other businesses that are innovative in their ways of reaching people and selling products, while also helping the planet. Green products are getting cheaper and more mainstream, and organic products are now in all main supermarkets as awareness grows of how they affect the planet and our own health: to eat better is to live better. As a result, this year the LOHAS focus will be on the health component with doctors, physicians and wellness experts, and how to make better health a part of both our life and business.

LOHAS provides thousands of dollars worth of consumer data that can really help businesses. The conference is not focused on just one thing, but on all aspects that will support a healthier and more sustainable lifestyle. Information will be available online and all the general sessions will be posted on YouTube. An entire track will be dedicated to social media and how to use this to optimize business. It identifies the market that caters to conscious consumers, and also identifies that conscious consumer base, giving people an understanding of how they fit and ways to connect with others.

“This is not a typical conference,” explains Ning. “It gives people permission to be themselves, as opposed to their business persona. Networking is more like heartworking as people tend to connect on a deeper level. It is really very different to a normal business conference as participants are inspired to turn their insights into actions so they can make real changes. This goes beyond the conference and into our daily lives.” All told, it’s simply the best place to discover opportunities and a like-minded community in the Lifestyles of Health and Sustainability marketplace!

 



Fortune Brainstorm Green 2010: A Conference for the Environment

Wednesday, April 28, 2010 by Jennifer Schwab of SCGH

Billions of dollars are at stake. Not to mention reputations of leaders in business, academia and government. Even the public image of our country on the world stage is hanging in the balance. 



Despite differing viewpoints on nuclear energy, coal-fired power plants, wind energy and a variety of important subjects in the world of green, one consistent theme emerged at the Fortune Brainstorm Green conference, held earlier this month at the sumptuous Ritz-Carlton Laguna Niguel Resort in Southern California. And that is: we need an official, approved and legislated policy on carbon reduction and we need it now. Not only careers, but also many thousands of jobs and potentially the future of our planet (not to mention Sierra Club Green Home.com) are all seemingly on "hold" until Washington can cobble together a bill on carbon reduction that will pass in the Senate.

Over 300 luminaries from the environmental world, as well as corporate America, Wall Street and Silicon Valley populated 
the conference. Listening to the panel discussions, I realized just how committed the big time venture capital groups are to the clean energy movement succeeding. It almost felt like we are all loaded into the same boat together, furiously rowing out to sea but without a compass. Environmentalists, corporate sustainability officers and the investment community look back in nostalgia to the 2009 conference when it seemed certain the U.S. would have an energy policy in place by now.

Some companies and investors cannot proceed without knowing exactly what the U.S. government will ultimately call law on carbon reduction. Be it cap and trade, cap and dividend, a straight carbon tax, or some hybrid thereof, it seemed most participants would be happy with any reasonable approach at this point. In my mind, it would be the start of an evolving framework that will take years to perfect. 



Aside from this glaring issue, a wide variety of provocative topics were batted about, including Lee Scott from Wal-Mart on how the company is going green (Wal-Mart's proposed Sustainability Index is truly groundbreaking as it requires their supplier companies to use sustainable practices or lose their accounts with the retaining giant); Fred Krupp of Environmental Defense Fund, Mark Turcek of Nature Conservancy and our own Michael Brune of Sierra Club trying to explain what environmentalists really want; "Electric Cars: Mass Market or Mirage?" featuring BMW Engineering VP Tom Baloga and David Sokol, who is Warren Buffet's point man on energy investing; legendary green guy Stewart Brand along with several power company CEOs on whether nuclear power is part of the answer (I am still very questionable on this); Aspen Skiing Co. CEO Mike Kaplan on whether sustainable business can operate without the usual hypocrisy and morality issues; "Chasing the Dream of Sustainable Consumption" with top execs from Dell, Starbucks and Wal-Mart, among many, many more.

A representative from Dell explained their commitment to going carbon neutral: they are changing their packaging from polyethylene to bamboo; powering down all corporate machines every evening; offering free recycling for all Dell computers among other initiatives. IBM's expertise in nanotechnology is being leveraged to improve the water desalinization process. Starbucks is feverishly working on making all their cups recyclable, as due to the high temperatures of the beverages, standard recyclable paper cups will not work. Bill Ford of Ford Motor Co. reminded us that no true economic recovery has ever occurred in this country without a strong industrial base. Manufacturing, he said, is critical to keeping America employed and productive.
 


Also way cool was a performance by rock keyboardist Chuck Leavell, best known for his work with the Allman Brothers and Rolling Stones. Leavell was on hand not only to entertain, as he is co-founder and primary investor in Mother Nature Network, the green news and information site.

Equally impressive was the true green practices utilized for the entire conference. The Ritz-Carlton offers extensive recycling; efficient watering systems for all landscaping; greywater recycling of washing machine water; and reuse of sheets and towels unless otherwise specified by guests. FORTUNE served organic and sustainable produce from local providers; organic wines, beers and teas; reusable water bottles provided by Dell; onsite shuttle service by electric and hybrid vehicles; and all leftover food was given to local shelters. These are things that ALL conferences and meetings should do, but kudos to FORTUNE for keeping it real -- I've attended too many green events that didn't even have recycling, much less green practices or sustainability management!


I'm already looking forward to next year's conference. At least by then, there should be resolution one way or the other about what legislation governing carbon reduction we will be working with. 



As always, we love to hear your comments, let us know what you think will happen in Congress and how it will affect green business and jobs.

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


To Roth or Not To Roth

Monday, April 26, 2010 by Rob Thomas
Many people are familiar with a Roth IRA. Put money away, after taxes are paid on those earnings, let the money grow tax differed in the IRA, then take tax-free distributions of the earnings

Not a bad deal, lets go through it again.

Earn $40,000.

Pay taxes on all $40,000.

Put $5000 into Roth IRA, after tax.

$5000 grows to $75,000 over your lifetime.

Take original $5000 out – taxes were paid when that money was earned. Take $70,000 tax-free. Nothing due on earnings.

In a regular IRA you put $5000, before taxes, from earnings into same investments in IRA, grows to same $75,000 over time. Then pay taxes on all $75,000 when taking it out of IRA.

Pay taxes now on $5,000 and nothing later,

$70,000 distribution – tax-free.

Or,

Pay no taxes now on $5000 and pay taxes on full $75,000 taxable distribution.

Seems fairly straight forward, especially if you think taxes will be the same or possibly higher when you retire.

Here is where it gets interesting.

A Roth IRA has earnings limitations. If you earn over $120,000 as a

single person, or over $177,000 as a married person, you can not make a Roth contribution. Tough luck.

But wait……..

Making an employee contribution into a Roth ‘bucket’ in your 401(k) has no earnings limitation. You can put full employee contribution into the Roth ‘bucket’ not just $5,000.

If you earn $200,000, are over age 50, you can put $22,000 into the Roth 401(k) at work.

In 25 years that $22,000, earning 6% grows to $94421.16. The $22,000 had taxes paid when earned, but the growth $72,421.16 is never subject to taxes.

I’d call that the best kept secret out there. Whether you run a sustainable green business, green health spa, yoga business or are just interested in corporate sustainability, a Roth option in your 401(k) will probably make sense.

This is an example and anyone interested in further information should contact a registered financial advisor, or ask about a Social(k) 401(k) /  403(b) at work.


Gotta Start Small to Go Big

Monday, April 12, 2010 by Jennifer Schwab of SCGH

Anybody remember President Obama's recent State of the Union speech? We were watching it at the Sierra Club Green Home offices, excited to hear about his successes on the environmental front.

President Obama is one impressive orator but according to that speech, he plans to: fix the economy; implement a new health care policy; complete the war in Afghanistan/Iran; rebuild our standing internationally; help impoverished nations; among other important problems to address - not to mention, foster the green movement and bring renewable energy to America.

Noble goals all, but at some point I began to wonder, is it realistic to accomplish even a portion of this by 2012? Perhaps but knowing how monumental these problems all are, it is unlikely that even one or two of them will be solved in three short years.

The same thought occurred to me while attending a recent green conference, which shall remain nameless. The speakers talked about making recycling mandatory throughout the country; bringing wind and solar power to all municipalities; ending coal mining and replacing it with clean renewable energy; providing adequate supplies of clean water and air to all citizens of the world; retrofitting American homes with proper insulation, energy efficient windows, low flow toilets and showers, composting, and more. We need all of these things, no doubt, but at some point, it just won't work to say we can accomplish all of them simultaneously.

Consider this a plea for community leaders, politicians, non-profit executive directors and others in position to help fix our problems and affect change in America: please, let's try to take a more realistic approach to going green. This means PRIORITIZING our goals, if not nationally then by municipality or geographical area. This way, it might be possible to get one or two or even three of the mission-critical agenda items accomplished. Yes they ALL need to be addressed, but trying to do so simultaneously will most likely result in making a little progress on all fronts but completing none. Better to select one or two major issues and work them intensely to actually succeed -- then and only then move to the next ones.

Here's an example of what I'm talking about: instead of having each major city in America try to work on a full sustainability plan, why not assign a specific area of focus, and then share the solution with other cities in the form of a best practices template? For example, Chicago would work on indoor air quality since they spend so much time indoors; Las Vegas would work on water conservation since it is in the desert; Los Angeles would work on solar power since it has a high percentage of sunny days, and so on. Then at the end of three or five years, each city would have to share their completed template with other cities nationally and even internationally. In this way, we'd have a collection of significant successes instead of all cities recording varying degrees of success in many categories.

I know this is rhetoric but I have an innate fear that thousands of well-meaning volunteers who support these leaders will end up frustrated and unfulfilled. It is up to our leaders to choose a path that can lead to success, one goal at a time.

Thanks for reading; I'd love to hear your thoughts on this....

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


The Conscious Shift in Consumer Behaviors

Sunday, April 11, 2010 by Ted Ning
The global economic downturn has not only affected many people’s wallets it has also caused a dramatic shift in the way people look at the choices they are making in their lives. In the U.S. there is a strong desire to be self reliant and to conserve resources as people prioritize their spending and behaviors towards more purposeful decisions. Choices as small as bringing meals to work rather than eating out, taking public transport instead of spending on gasoline and garden grown foods rather than store bought foods are some examples of trends that are picking up. These are changing the way companies approach green business strategy.

Today not only LOHAS consumers but ALL consumers are demanding a greater value from products and services. This value is derived from a strong desire to make the most of everything that a person has. Considerations including investment, functionality and cost are being assessed and are creating new dimensions of ROI that are increasingly a part of the emotional and social values a brand typically provides.

According to Brandweek.com a new survey by firms Landor Associates, Penn Schoen Berland and Burson-Marsteller, transparency and corporate responsibility have become far more important to consumers in a tough economy. It found that despite the recession, 75% of consumers believe social responsibility is important, and 55% of consumers said they would choose a product that supports a particular cause against similar products that don't. The most surprising findings pointed to the fact that nearly 50% of 18-24 and 25-34 year olds said they are more likely to take a pay cut to work for a socially responsible company—a much higher percentage than any other age group. This may be because this is a year where there seems have been so much social responsibility expressed, especially in light of the earthquake in Haiti. But the report also said only 11% of Americans say they’ve heard corporate CSR communications.


Redefining Luxury

The shift in values in not only from those ages 18-34 but also affluent families who are redefining luxury. A recent study called "The New Face of Affluence," from Dwell Strategy and Research focuses on attributes that drive purchase decisions of newly affluent U.S. households, whose average age is 45 and income of nearly $200,000. These people are called “New Affluents” and claim, "luxury" brands, are no longer important to them, or even relevant; neither is "overall social status." These people have the economy and the environment top-of-mind when making purchase decisions. The study found that most are shunning "conspicuous consumption" in favor of brands that represent quality, aesthetics and authenticity. These attributes, along with uniqueness, integrity, design and performance, represent today's "prestige" for these high-end consumers. There is a shift occurring in society that demonstrates how a brand does not have to be expensive to attract customers. What consumers are now demanding from brands is a new and different kind of relationship. And, as supported by these findings, the days of controlled, top-down brand marketing are over, especially for this sector. These wealthy and would-be elites are actually looking for brand interaction -- a dialogue -- based on integrity, authenticity and performance. And not only are they equipped for interaction, they're demanding it. In fact, Dwell compiled a visual so that brand representative could see, clearly, how the top 50 companies named by the surveyed group compete against one another. The size of the text in the following word cloud connotes its ranking:





So what brands do New Affluents find meaningful, authentic and relevant? Apple, Sony, BMW and Ralph Lauren, unsurprisingly. But Crate & Barrel, Ikea, Whole Foods and Levi's, too. Porsche, Lexus, Chanel and Viking. And Target, North Face, Volkswagen and The Gap. Missing from this segment's 75 favorites list are classic luxury brands like Cadillac, Gucci, Louis Vuitton, Armani and Versace who have yet to demonstrate how they are keeping up with emerging trends.


People Want to Simplify

There are growing desires for purity and simplicity. Companies should respond with a move to simpler inputs, focused messaging, cleaner labeling, streamlined design and easy delivery of goods and services. Society is also demanding the removal of the layers of complexity – a change desired because it becomes easier to determine the true fit of products and services with personal values. This “less is more” trend is resonating with consumers everywhere – purity and simplicity is now the ultimate sophistication! Indeed some companies are doing this. For example the beverage ‘Innocent’ from the UK has an ingredient list of 6 items that are all recognizable fruits with no additives or preservatives. This is very different from typical soda or juice ingredient lists we commonly see in conventional stores. 


Green is Recession Resistant

Green products still appear to maintain their value among shoppers despite the recession. According to a survey on “green” living from market research firm Mintel research firm Mintel 35% of U.S. consumers say they would pay more for environmentally-friendly products. Mintel found the green market outperformed the economy as a whole, growing more than six percent in 2008, followed by flat growth in 2009. The report also finds that the market took a hit from tighter consumer budgets due to the recession and trading down from high-end green brands. Even though the green market grew about 41% from 2004 to 2009 the report finds that the number of consumers purchasing all categories of green household consumer goods declined slightly in 2009, primarily due to the recession with household cleaners and paper products still the most frequently purchased green products.


The Future is Now

We find ourselves facing a complex set of problems that threaten the global population, economy and environment. The recession has sped up the inevitable evolution of our society and economic system that puts businesses and consumers in the driver seat of change. People are paying more attention to what they spend money on and demand a new definition of sophisticated value from companies. Those companies that cannot keep up with the progression of LOHAS consumer demand risk losing market share. Those companies that do respond will not only provide superior LOHAS products but also provide a better company overall for society and the planet. Together we can help transform the problems we have today to the solutions of tomorrow.

 

Ecofriendly Travel

Thursday, April 8, 2010 by Ted Ning

Ecotourism is travel with ethics. It has, in essence, three core tenants: 1) protect and enhance the natural environment, 2) respect local cultures and provide tangible benefits to host communities, and 3) be educational and enjoyable for the traveler. LOHAS and ecotourism are part of the same growing consumer movement focused on sustainable living, social justice, and personal development.



Ecotourism emerged from the environmental movement of the late 1970s. By the early 1990s, it was the fastest growing sector of the tourism industry, expanding globally between 20% and 34% per year. In 2004, ecotourism and nature tourism were growing three times faster than the global tourism industry as a whole (UNWTO). In 2002, LOHAS found that ecotourism was a $77 billion market in the U.S alone.
According to Travel Weekly, sustainable tourism could grow to 25% of the world’s travel market by 2012, taking the value of the sector to approximately $473 billion a year. The following are current trends in the dynamic field of ecotourism:


Travelers Philanthropy

There is a growing source of international development aid, spearheaded by ecotourism companies, to support community projects in host destinations. Increasingly, conscientious companies and travelers are providing “time, talent, and treasure” to further the well being of host communities. Travelers’ Philanthropy projects are helping to empower local communities by providing social services, jobs, skills, ownership, education, and environmental stewardship.

Case-in-point:
After a trek in Nepal, Dr. Antonia Neubauer, founder of Myths and Mountains, a Nevada-based travel company, asked her Sherpa guide what he would do for his village. “Build a library,” he responded. That library project has since evolved into READ (Read Education and Development), which is today a network of 40 community-owned and operated libraries across Nepal.  Myths and Mountains donates $50 from every traveler to support READ. For about $46,000, READ builds a library; stocks it with 3,000-5,000 books; trains locals; and funds sustainable community projects. The program won the 2006 Access to Learning Award from the Gates Foundation. 

 

"Voluntourism"

Closely linked to Travelers Philanthropy is the movement for “Voluntourism,” active, hands-on, volunteer vacations that address global issues of environmental degradation and poverty alleviation, while fostering understanding between visitors and host communities. Its origins trace back to the days of healers, explorers, and sailors who traveled while offering services to those in need. With growing awareness of global citizenship and social responsibility, it is no surprise that “voluntourism” is booming. According to Peter Yesawich, CEO of America's leading hospitality marketing agency, 6% of all U.S. active travelers took a volunteer vacation last year.



Case-in-point
: Coral Cay Conservation (CCC) is a not-for-profit organization that uses volunteer visitors to protects tropical marine environments. CCC’s Fiji Reef Conservation project is just one example of a two week trip that trains volunteers to collect scientific information, which is then used to provide recommendations for the sustainable management and conservation of coral reefs and tropical forests.


Carbon Offsets for Travel:

There are increasing concerns about global warming and the effects of carbon dioxide produced from flights, road trips, and other fossil-fuel based recreation. Air transportation alone is believed to produce between 4%-10% of greenhouse gases worldwide. A range of businesses are taking responsibility for reducing their “carbon footprint” by decreasing emissions and donating to tree planting, forest protection, and solar, wind and other renewable energy projects.

Cases in point:

-          Carbon Offset Companies:  Dozens of companies help travelers calculate the greenhouse gas emissions caused by their travel and then “offset” the impact. Vermont-based company, NativeEnergy, collects “carbon offset” donations to invest in Native American-owned farm projects such as wind turbines, solar arrays, and a manure digester project that powers a 160 kW generator to displace fossil fuel and methane emissions.

 

-          Travel Websites: Expedia and Travelocity have developed programs for travelers to buy carbon offsets when purchasing tickets online. Expedia has partnered with TerraPass to offer “Carbon Balanced Flyer” luggage tags. For about $5.99, travelers can offset approximately 1,000 pounds of carbon dioxide.

 

-          Airlines: NatureAir, based in Costa Rica, is the first airline to pledge to offset all its fights. The airline launched a program to financially support sustainable reforestation in Costa Rica, through a system outlined in the Kyoto Protocol, and is conducting research into alternative energy sources such as ethanol and pig waste.

 

-          Ski Resorts: With snow melting two to three weeks sooner than it used to in the 1950s, it is no surprise that 46 U.S. resorts are investing in renewable energy sources. Nineteen are offsetting 100% of their energy use through wind-power credits. Leading the industry is Aspen Skiing Company, with a purchase of 21,000 megawatt hours (MWh) of renewable energy credits, the largest purchase in U.S. ski history, Aspen will keep nearly 20,000 tons of carbon dioxide out of the atmosphere.


Green Architecture:

Organic gardens, native landscaping, solar and wind power, waste water composting, rain water harvesting, gray water irrigation, and recycled building material are a few of the signs of the burgeoning field of ‘green’ architecture linked to tourism.  Small ecolodge owners and luxury chains are beginning to recognize the ecological and often economic benefits of green architecture. 

Case-in-point
: Fairmont Hotels & Resorts has a global reputation for environmental stewardship through its Green Partnership Guide, a 17-step process to sustainable best practices in the lodging industry. Each property has developed initiatives that support the corporate commitment to reduce the ecological footprints of its properties. For example, by simply changing 40 watt incandescent to 9 watt compact florescent bulbs, Fairmont San Francisco reduced 351,942 kilowatt-hours with an annual cost savings of $41,564.

 

Agroecotourism:

Many family-owned farms are tapping into travelers’ interest in rural heritage and lifestyle.  Through agroecotourism, farmers generate additional income by hosting visitors, educating the public, and promoting farm products. In Vermont alone, income from farm based tourism activities generated $19.5 million in 2002, representing approximately four percent of the total gross farm income.

Case-in-point: Shelburne Farms is a 1, 400-acre working farm, National Historic Landmark and a nonprofit environmental education center that hosts some 66,000 visitors per year.  Originally built in 1886 as a private country estate of William Webb, his descendants have turned the estate into model of agroecotourism. According to Director Alec Webb, Shelburne Farms is an educational center that uses a sustainably managed landscape as a classroom to foster an appreciation for the natural world and demonstrate stewardship in sustainable forestry, dairy-making, and cheese-making. Shelburne Farms received the 2006 National Conservation Achievement Award from The National Wildlife Federation for its environmental stewardship.


These are just a few trends that highlight ecotourism principles of environmental and social stewardship. To further promote responsible travel, The International Ecotourism Society is hosting a Global Ecotourism Conference in Oslo, Norway from May 14-16, 2007 and a North American Ecotourism Conference in Madison, Wisconsin from September 26-28, 2007.  


Ecotourism:
The International Ecotourism Society
www.ecotourism.org

Global Ecotourism Conference 
www.ecotourismglobalconference.org

North American Ecotourism
www.ecotourismconference.org

Philanthropy:
Travelers' Philanthropy
www.travelersphilanthropy.org

READ Global
www.readnepal.org

Voluntourism:
Coral Cay Corporation
www.coralcay.org

Green Architecture:
Fairmont Hotels & Resorts
www.fairmont.com

Agroecotourism:
Shelburne Farms
www.shelburnefarms.org


Preparing for the Pitch

Thursday, April 8, 2010 by Ted Ning

Preparing for the Pitch:
Tips for Mission-Driven Startups Seeking Outside Capital

By Matt Lombardi

Raising capital for a LOHAS mission-driven venture is exceptionally challenging and is a key element of successful green business strategy. One obstacle that social entrepreneurs face is a scarcity of traditional funding sources. Conventional investors tend to avoid double-bottom line companies for fear that such investments would yield lower and slower returns. As traditional investors dominate the venture capital arena, finding investors with two bottom lines is not an easy task. 

While there is no single way to attract mission-aligned investors, there are practical guidelines to help social entrepreneurs locate viable backers, understand their needs, and avoid the most common fundraising mistakes.

Where to Find Mission-Aligned Capital
Angel networks, which are groups of individual investors who provide capital to startups, are a viable option for for-profit socially responsible investment ventures. Individual investors tend to consider a broader range of deals than most venture capitalists. An extensive list of angel groups can be found at the Angel Capital Association’s website (http://www.angelcapitalassociation.org). One of the more established groups listed, Investors’ Circle (www.investorscircle.net), is a national network comprised of individual and institutional investors dedicated to backing for-profit social entrepreneurs.

Several double-bottom line institutional lenders and venture funds have sprung up over the last couple decades. A few examples of these institutional investors include RSF Social Finance, Calvert, and SJF Ventures. A comprehensive list of socially responsible funds can be found on Columbia’s Research Initiative on Social Entrepreneurship (RISE) website located at www.riseproject.org   

The U.S. Small Business Administration (www.sba.gov) is a helpful resource for ventures seeking loan opportunities.

Mission-driven ventures that take a non-profit form should consider the extensive list of grant resources found on SocialEdge.org, a website dedicated to supporting social entrepreneurship. A more traditional list of funders can be found at Foundation Center Online at www.foundationcenter.org 

Matt Lombardi is the Entrepreneur Services Director for Investors’ Circle, a non-profit national network of angel investors, institutional investors and foundation officers who seek to balance financial, social and environmental returns.

What Do Socially Responsible Investors Look For?

The array of investment criteria is overwhelming in breadth, however most double-line investors zero in on a few key factors when it comes to making the right investment decision.

Before shopping your idea to investors outside your immediate circle, you will want to be confident in the following:

1.) Strong and relevant industry experience. Investors are said to invest in entrepreneurs, not ventures. If your team lacks experience in a specific area, be forthcoming about your plans to fill that gap. Developing relationships with reputable advisors will also help build credibility.    

2.) Attractive and realistic financial projections. Enough with the hockey stick projections! Being overly optimistic is a sure way to lose credibility. In the same vein, take care not to be too conservative. While being realistic, make the opportunity compelling from an investment standpoint.

3.) Firm understanding of competition. Refrain from minimizing your competition. Acknowledging your competitors demonstrates that you understand the market and are prepared for the challenges that lie ahead.  

4.) Traction in the marketplace. Demonstrating that there is a demand for your product or service is key to peaking an investor’s interest. Documenting letters of intent from strategic partners and potential distributors will also strengthen your value proposition.

5.) Built-in values. Socially responsible investors favor ventures whose mission is core to the company’s business model, rather than just an afterthought.

Fundraising Tips

Investor meetings can vary from a cup of coffee to a full-scale pitch before an investor group. Regardless of the level of formality, keep these tips in mind to avoid common fundraising mistakes: 

1.) Keep it simple. Avoid getting lost in non-essential details. Start with a concise encapsulation of your business concept to draw in your audience from the start. Then deliberately hit the key areas of interest to investors (i.e. competitive advantage, market size and trends, business model, social or environmental impact, management team, financials, and the potential exit).
Practice presenting until your delivery time is consistent
and appropriate for the occasion.

2.) Come prepared. When meeting with an investor or group of investors, a concise 5-15 minute PowerPoint presentation is standard. Come prepared with an updated business plan and executive summary. If applicable, bring a prototype or product.

3.) Engage the audience. Avoid text-heavy slides. Presentations should guide viewers through your key points, not serve as your script. If you want the audience to remember verbal points, provide a handout sheet at the end of the meeting.

4.) Attitude Matters. Appearing “too confident” or “egotistical” is a common mistake that entrepreneurs make at investor meetings. While it’s critical to come across as both passionate and competent, an approachable demeanor will help open a dialogue between you and your potential investors. Simple tactics such as smiling and making eye-contact are essential to making a good first impression.  

5.) Interview your investors. Due diligence should not be a one-sided process. It’s essential to trust and respect potential investors before signing term sheets. Sharing a common vision of the company’s future (as well as the investors’ exit) will help reduce conflict as the company matures.


LOHAS Venture Fair Not to be Missed
!

For LOHAS oriented companies or values based investors please check out the LOHAS Venture Fair. This event is developed from a partnership between Investor's Circle and LOHAS and is a great opportunity for you to interface with likeminded prospects and peers. It also coincides with the LOHAS Forum June 23-25th.

 

Light at the Edge of the World for LOHAS

Monday, March 15, 2010 by Ted Ning
For anyone who wants to loose themselves for a bit I highly recommend taking the time to listen and watch this video of Wade Davis who spoke at the LOHAS forum in 2009. This presentation is both visually and verbally captivating in a way that is hard to describe. He is a National Geographic explorer and ethnobotanist that is spellbinding. A much better type of talk that speaks to the human side of things rather than the corporate sustainability aspects most see highlighted at green conferences. Enjoy!




To continue viewing the presentation on Youtube click here.

ECO:nomics -- Creating Environmental Capital

Thursday, March 11, 2010 by Jennifer Schwab of SCGH

Santa Barbara, Calif -- Talk about brains, power and money in one room. This was the ECO:nomics Conference, put on by The Wall Street Journal at the lush Bacara Resort. Legendary investor T. Boone Pickens; top venture capitalists John Doerr and Vinod Khosla; CEOs of Royal Dutch Shell, Rio Tinto and American Electric Power; Energy Secretary Steven Chu; the list goes on. This was almost enough business horsepower to warrant autograph seeking.

If there is one clear message coming out of this gathering, it's that we need to assign a price or cost to carbon emissions, and soon. Almost all the speakers agreed that be it through a direct tax on carbon -- which would affect the average consumer at the pump and on their energy bills -- or the cap and trade model, which auctions off "permits to pollute" to all businesses that emit carbon, we need to enact some serious legislation on this immediately.

Other provocative subjects discussed included wind energy, natural gas, nuclear energy, other types of alternative power, synthetic genomics (I will admit I had a hard time following J. Craig Venter's rocket science, but it involves using genomic research to discover new ways to produce energy) and not incidentally, water.

In fact, one of the best speakers was Patricia Mulroy, General Manager of Southern Nevada Water Authority. She explained that even with the winter rainfall we have been enjoying, Lake Mead (which supplies water for most of Southern Nevada) will be at dangerously low levels by 2016 and Hoover Dam may stop producing electric power. Scary stuff indeed. Mulroy added that water conservation efforts have been quite successful so far, including incentivizing citizens and developers to remove grass and replace it with low-water landscaping. Southern Nevada's water requirements have been reduced by almost a third since 2002, quite an amazing statistic. My comment is this: for those who think climate change is a myth, what do you propose we do about a situation like this? Even with strong conservation measures in place, we are running out of water...

I am one of many who were wondering whatever happened to T. Boone Pickens' wind energy initiative? Well, the answer is oil prices that were $125 a barrel ended up around $80 and thus the math no longer works. Pickens had 648 wind turbines on order from GE, he was able to negotiate that down to 324 and those will indeed be arriving on his doorstep. He will deploy them but the problem with wind energy remains transmission. Of course, Pickens has now moved on to natural gas as our savior. This concept had a number of supporters in the room but was far from unanimous.

Tom Albanese, CEO of Australia-based Rio Tinto, one of the world's largest mining companies, believes in clean coal and thinks it can be part of the energy solution. (As Director of Sustainability for Sierra Club Green Home.com, I must add that I strongly disagree.) Gregory Boyce, CEO of Peabody Energy which is one of the largest coal companies in the world, gave statistics showing just how married to coal American, Japanese, India and Chinese industrial companies are. Albanese made a very strong point that businesses and investors have been preparing for a cost on carbon for quite awhile now, and not having legislation in place leaves a giant question mark going forward for everyone. This point was echoed by top V.C. John Doerr, who ought to know since he has deployed hundreds of millions of dollars into Cleantech over the past nine years.

One of Doerr's early investments was Bloom Energy, which makes a fuel cell technology called the Bloom Box. This self-contained power unit runs off natural gas and provides enough energy, off the electric power grid, to run a large industrial facility and eventually, a smaller unit will power homes. Bloom has used up over $400 million of investor capital already and the audience was mixed on whether the Bloom Box will ultimately be commercially viable. Stay tuned on this one.

The final speaker was Energy Secretary Steven Chu. I was hoping he would address the important question raised by Rio Tinto's Albanese: now that the world's leading companies have braced themselves for assigning a cost to carbon emissions, when will that be, what will that entail, and how will it be administered? His answer: I am optimistic that energy legislation addressing this issue will be passed this year. And that America still can win the worldwide race to lead the green economy. "The Clean Energy movement is ours to lose. China is moving quickly; they see this industry as a huge export opportunity," he added. "This is an incredible economic opportunity for the United States. We have to rebuild our energy infrastructure to make us energy independent."

 

Follow Jennifer Schwab on Twitter: www.twitter.com/SCGreen_Home


The story of a LOHAS Pioneer

Wednesday, January 13, 2010 by Ted Ning
If you did not make it to the 2009 LOHAS Forum then you missed a great presentation from one of the green industry business leaders Ray Anderson. If you don't know who Ray Anderson is then you should. Ray Anderson is the founder and chairman of Interface Flooring, the world's largest manufacturer of modular carpet for commercial and residential applications and a leading producer of commercial broadloom and commercial fabrics. He is "known in many eco circles for his advanced and progressive stance on industrial ecology and sustainability." Since 1995, he has reduced Interface's waste by a third, and plans to make the company sustainable by 2020. This is no small feat as the carpet industry and sustainability don't appear to go hand in hand.

He has written several books, spoken at many renoun conferences including TED and has just recently released a new book called the Confessions of a Radical Industrialist which is what he based his speech on at LOHAS. He brings up some good points on innovative green business strategy through the blood sweat and tears he put into Interface and developing it into a thriving successful business that is in touch with roots of capital, community and the environment.

So if you missed LOHAS last year you may want to spend a few moments taking in what Mr. Anderson has to say. It is inspiring indeed.




This presentation is broken up into 5 parts. To continue listening to the speech click here.